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In 1935, the American novelist Sinclair Lewis published a political novel entitled It Couldn’t Happen Here. The book was really a warning of what could go wrong depicting the rise of a fascist dictator and society in the US.

Fortunately, it turned out to be unnecessary. America was the leading force establishing the post-war democratic world order and, imperfectly, creating a “great society” and establishing civil rights.

That was then. Now, in defiance of multiple criminal indictments, Donald Trump is the favourite to be re-elected president of the US next year.

He openly espouses many of the “America First” attitudes that are satirised in Lewis’s story.

Meanwhile, It Could Happen Here is the title of a popular critical podcast that, according to promotional blurb, takes “a jaunty walk through the burning ruins of the old world”.

Those who say “only in America” are kidding themselves.

Politicians who can be described as populist nationalists have already entered government through the ballot box in Turkey, Hungary, Poland, Russia and Italy.

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In Spain, France and Germany, far-right parties are gaining strength and are already power brokers, driving the policies of mainstream parties in their direction.

In Ireland, a rabble of some 200 blockaded the Dail for an afternoon last week, January 6-style they brought along a mock gallows, decorated with images of members of the traditional parties and the police commissioner.

In Argentina, Javier Milei, an anarcho-capitalist who has called the Pope “a piece of s***”, is current favourite to be the next president.

Meanwhile, rising global powers such as the Peoples’ Republic of China and the Kingdom of Saudi Arabia are autocratic dictatorships.

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‘It’s Trump or death’

It could happen here

Those who see themselves as centrists – whether centre-right or centre-left – in this country still comfort themselves that the UK is not as polarised as the US and that the British have always been moderate. We would never saddle ourselves with an autocratic government.

And yet, in our society, as elsewhere, there is widespread dissatisfaction with the way things are and an urge to seek out others to blame. Opinion polls find that younger adults are increasingly losing faith in representative democracy.

Read more:
A general election isn’t far away – and Labour need to make Sir Keir look like a PM
Sunak will not go quietly – and will do what it takes to shift the dial ahead of election

Small “l” liberalism means entertaining and even encouraging the expression of points of view on all sides of an argument.

This is not the position taken either by populists on the right, who want to coerce and overrule those with whom they disagree or by those on the left embracing “cancel culture”.

The common enemy of the extremes is the centre.

Centrism accepts rules-based order and the operation of checks and balances between what people ask for, the politicians who try to satisfy them and the legal structures that constrain them. As society evolves, we assume democratic systems have the capacity to adjust to them.

Populism rejects this approach. It is intolerant. It denounces the status quo and exaggerates how bad things are, without taking any political responsibility.

Trump talked about “American carnage” and is now belittling fellow Republicans competing for his party’s nomination.

Suella Braverman flies out to a right-wing American thinktank to attack the past 25 years’ immigration policy “too much, too quick, with too little thought” when her Conservative Party has been in government for the past 13 of those years.

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Braverman uses ‘unprecedented’ language

Populists talk tough about law and order for others but have little respect for it when they fall foul of it. The “good chap” theory of politics, described by Lord (Peter) Hennessy, would have barred a return by Braverman as home secretary, after she resigned for breaching the ministerial code.

But Rishi Sunak needed to hug her close to shore up his shaky unelected hold on the Conservative Party leadership, so they both looked the other way. Sympathetic Tory politicians and news outlets lauded the vandalism on ULEZ enforcement devices.

Trump views any legal curb on his behaviour as unjustified and politically motivated. Trump and the Republican Senate have successfully politicised the Supreme Court in their image.

In Israel, Trump’s friend Benjamin Netanyahu is attempting much the same, apparently to save himself from prosecutions for corruption.

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Targeting checks and balances

Would-be autocrats try to undermine any independent authorities they cannot dominate. Boris Johnson’s challenge to the monarchy, the courts and parliament was an overt attempt to break them as regulating forces.

A similar approach is evident where this country is a participant, voluntarily and with a voice, in international organisations concerned with multi-lateral issues.

The Take Back Control slogan from Leave EU was a pure expression of this destructive and deluded impulse.

Now the government is floating leaving the European Convention of Human Rights (ECHR) as “a warning shot” to the Strasbourg court.

Any government should argue its case vigorously, attempts to coerce justice with threats are a different matter. The ECHR was established after 1945 to prevent authoritarians persecuting minorities again.

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Evidently, such angry political posturing attracts support, especially when times are as hard and as globally competitive as they are now.

But even when, as at present, the majority do not go along blaming others – whether migrants or mainstream media and politicians – mobilising core voters can yield big dividends.

In the United States, skewed constitutional arrangements have resulted in the Republicans winning control in the White House and Congress, when significantly defeated in the popular vote.

Johnson and Truss owed their prime ministership to Conservative Party activists, not the electorate. Sunak was installed by the passive aggression of Tory MPs.

In continental Europe, populists have broken through by founding new parties, such as Vox and Alternative für Deutschland. In the US and UK, they have risen on the inside of existing parties, which command automatic, unthinking, legacy loyalty from some voters.

Trump was elected because he was able to take over the Republicans, the Grand Old Party, even though he had no track record within it.

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Can the Tories win voters back?

What if the Tories win?

In this country, some voters, and much of the media, will accommodate the Conservative Party and give it their backing, irrespective of where its leaders are taking it.

The Tories could win the next election, more likely obeying the pendulum theory of politics beloved of centrists, at a subsequent contest. What will they stand for when they get into power again?

In anticipation of possible defeat at the approaching election, the Conservative Party is already in a state of civil war about where it goes next.

Following the purges conducted by Johnson, and the despairing retirements precipitated by Truss, the centre-right of the party is in a weakened state.

Braverman and Kemi Badenoch are favourites to contest the party leadership, assuming that Sunak does not pre-empt them by continuing to stampede in their rightward, negativist, policy direction.

There are a lot of ifs, which would have to be made real. It would then, of course, be what people voted for. It would kill off the centrist consensus, which has prevailed in this country for centuries.

But, more possible than ever, it could happen here.

Watch Sunday Morning With Trevor Phillips at 8.30am on Sky News – live from the Conservative Party conference. He will be joined by Levelling Up Secretary Michael Gove, former home secretary Dame Priti Patel, and Labour’s shadow Scotland secretary Ian Murray.

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Hong Kong police busts $15M laundering ring that used crypto, 500 bank accounts

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Hong Kong police busts M laundering ring that used crypto, 500 bank accounts

Hong Kong police busts M laundering ring that used crypto, 500 bank accounts

Hong Kong police arrested 12 people involved in a cross-border money laundering scheme that relied on crypto and over 500 stooge bank accounts to launder HK$118 million ($15 million), local news outlets reported.

The syndicate was dismantled on May 15, resulting in the arrest of nine men and three women in mainland China and Hong Kong.

The suspects allegedly recruited others to open bank accounts to receive proceeds from fraud cases, which were then converted into crypto at crypto exchange shops to launder the illicit funds, Hong Kong Commercial Daily reported on May 17.

The criminal organization rented a residential unit in the Hong Kong neighborhood of Mong Kok to plan and carry out its money laundering activities. Of the $15 million laundered, more than $1.2 million was linked to 58 reported fraud cases.

Caught in action

The bust followed police surveillance on May 15, when two recruits left the syndicate’s Mong Kok base — one visiting a bank, the other an ATM — before both went to convert the cash into crypto at a crypto exchange shop in the neighborhood of Tsim Sha Tsui.

Police arrested both individuals on the spot, seizing around HK$770,000 ($98,540) in cash before the funds could be laundered. The other 10 individuals, aged between 20 and 41, were arrested soon after.

Police seized approximately HK$1.05 million ($134,370) in cash, over 560 ATM cards, multiple mobile phones, bank documents and records related to crypto transactions.

Senior Inspector Tse Ka-lun of Hong Kong’s Commercial Crime Bureau claimed that the individuals often used bank accounts from their friends and family to launder the stolen funds. 

Hong Kong reported a 12% year-on-year increase in fraud reports in 2024, with authorities making more than 10,000 fraud-related arrests. Of those arrests, around 73% involved individuals who held stooge bank accounts.

Related: DOJ charges 12 more gamer-turned $263M Bitcoin robbers

The crackdown comes as Hong Kong continues to roll out its crypto regulatory framework to support local innovation, protect consumers and establish itself as a crypto hub.

Hong Kong’s Securities and Futures Commission introduced new rules for crypto exchanges offering staking services in April. Two months earlier, the securities regulator rolled out a roadmap to improve market access, optimize compliance, expand product offerings, strengthen crypto infrastructure and foster relationships with industry players. 

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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Keir Starmer says closer EU ties will be good for UK jobs, bills and borders ahead of key talks

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Keir Starmer says closer EU ties will be good for UK jobs, bills and borders ahead of key talks

Sir Keir Starmer has said closer ties with the EU will be good for the UK’s jobs, bills and borders ahead of a summit where he could announce a deal with the bloc.

The government is set to host EU leaders in London on Monday as part of its efforts to “reset” relations post-Brexit.

A deal granting the UK access to a major EU defence fund could be on the table, according to reports – but disagreements over a youth mobility scheme and fishing rights could prove to be a stumbling block.

The prime minister has appeared to signal a youth mobility deal could be possible, telling The Times that while freedom of movement is a “red line”, youth mobility does not come under this.

His comment comes after Kaja Kallas, the EU’s high representative for foreign affairs, said on Friday work on a defence deal was progressing but “we’re not there yet”.

Sir Keir met European Commission president Ursula von der Leyen later that day while at a summit in Albania.

Prime Minister Sir Keir Starmer with President of the European Commission Ursula von der Leyen ahead of their bilateral meeting as he attends the European Political Community Summit (EPC) in Tirana, Albania. Picture date: Friday May 16, 2025. Leon Neal/PA Wire
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Ursula von der Leyen and Sir Keir had a brief meeting earlier this week. Pic: PA

If agreed, the deal will be the third in two weeks, following trade agreements with India and the US.

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Sir Keir said: “First India, then the United States – in the last two weeks alone that’s jobs saved, faster growth and wages rising.

“More money in the pockets of British working people, achieved through striking deals not striking poses.

“Tomorrow, we take another step forward, with yet more benefits for the United Kingdom as the result of a strengthened partnership with the European Union.”

Read more:
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Conservative leader Kemi Badenoch has said she is “worried” about what the PM might have negotiated.

Ms Badenoch – who has promised to rip up the deal with the EU if it breaches her red lines on Brexit – said: “Labour should have used this review of our EU trade deal to secure new wins for Britain, such as an EU-wide agreement on Brits using e-gates on the continent.

“Instead, it sounds like we’re giving away our fishing quotas, becoming a rule-taker from Brussels once again and getting free movement by the back door. This isn’t a reset, it’s a surrender.”

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Moody’s downgrades US credit rating due to rising debt

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<div>Moody's downgrades US credit rating due to rising debt</div>

<div>Moody's downgrades US credit rating due to rising debt</div>

Moody’s credit rating agency downgraded the credit rating of the United States government from Aaa to Aa1, citing the rising national debt as the primary driver behind the reduction in creditworthiness.

According to the May 16 announcement from the rating agency, US lawmakers have failed to stem annual deficits or reduce spending over the years, leading to a growing national debt. The rating agency wrote:

“We do not believe that material multi-year reductions in mandatory spending and deficits will result from the current fiscal proposals under consideration. Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat.”

The credit downgrade is only one degree out of the 21-notch rating scale used by the company to assess the credit health of an entity.

Economy, US Government, United States, National Debt
An overview of the US national debt. Source: US National Debt Clock

Despite the negative short to medium-term credit outlook, Moody’s maintained a positive outlook on the long-term health of the United States, citing its robust economy and the status of the US dollar as the global reserve currency as strengths, reflecting “balanced” lending risks.

Related: Asia’s wealthy shifting from US dollar to crypto, gold, China: UBS

Investors react to Moody’s US credit revision

Moody’s announcement drew mixed reactions from investors and market participants, leaving many unconvinced by the agency’s revised outlook.

Gabor Gurbacs, CEO and founder of crypto loyalty rewards company Pointsville, cited the rating agency’s previous credit assessments during times of financial stress as unreliable, signaling that the outlook was too optimistic.

“This is the same Moody’s that gave Aaa ratings to sub-prime mortgage-backed securities that led to the 2007-2008 financial crisis,” the executive wrote in a May 17 X post.

However, macroeconomic investor Jim Bianco argued that the recent Moody’s credit outlook does not reflect a real downgrade in the perception of US government creditworthiness and characterized the announcement as a “nothing burger.”

Economy, US Government, United States, National Debt
Interest rates on the 30-year US Treasury Bond spiked to nearly 5% in May 2025, signaling reduced long-term investor confidence in US debt. Source: TradingView

US government debt surpassed $36 trillion in January 2025 and shows no signs of slowing, despite recent efforts by Elon Musk and others to reduce federal spending and curtail the national debt.

As the debt climbs and investors lose faith in US government securities, bond yields will spike, causing the debt service payments to go up, further inflating the national debt.

This creates a vicious cycle as the government will have to entice investors with ever-greater yields to incentivize them to purchase government debt.

Magazine: Elon Musk’s plan to run government on blockchain faces uphill battle

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