Why the Fed wants to crush workers
The US Federal Reserve has two imperatives: keeping employment high and inflation low. But when these come into conflict — when unemployment falls to near-zero — the Fed forgets all about full employment and cranks up interest rates to “cool the economy” (that is, “to destroy jobs and increase unemployment”).
An economy “cools down” when workers have less money, which means that the prices offered for goods and services go down, as fewer workers have less money to spend. As with every macroeconomic policy, raising interest rates has “distributional effects,” which is economist-speak for “winners and losers.”
Predicting who wins and who loses when interest rates go up requires that we understand the economic relations between different kinds of rich people, as well as relations between rich people and working people. Writing today for The American Prospect’s superb Great Inflation Myths series, Gerald Epstein and Aaron Medlin break it down:
https://prospect.org/economy/2023-01-19-inflation-federal-reserve-protects-one-percent/
Recall that the Fed has two priorities: full employment and low interest rates. But when it weighs these priorities, it does so through “finance colored” glasses: as an institution, the Fed requires help from banks to carry out its policies, while Fed employees rely on those banks for cushy, high-paid jobs when they rotate out of public service.
Inflation is bad for banks, whose fortunes rise and fall based on the value of the interest payments they collect from debtors. When the value of the dollar declines, lenders lose and borrowers win. Think of it this way: say you borrow $10,000 to buy a car, at a moment when $10k is two months’ wages for the average US worker. Then inflation hits: prices go up, workers demand higher pay to keep pace, and a couple years later, $10k is one month’s wages.
If your wages kept pace with inflation, you’re now getting twice as many dollars as you were when you took out the loan. Don’t get too excited: these dollars buy the same quantity of goods as your pre-inflation salary. However, the share of your income that’s eaten by that monthly car-loan payment has been cut in half. You just got a real-terms 50% discount on your car loan!
Inflation is great news for borrowers, bad news for lenders, and any given financial institution is more likely to be a lender than a borrower. The finance sector is the creditor sector, and the Fed is institutionally and personally loyal to the finance sector. When creditors and debtors have opposing interests, the Fed helps creditors win.
The US is a debtor nation. Not the national debt — federal debt and deficits are just scorekeeping. The US government spends money into existence and taxes it out of existence, every single day. If the USG has a deficit, that means it spent more than than it taxed, which is another way of saying that it left more dollars in the economy this year than it took out of it. If the US runs a “balanced budget,” then every dollar that was created this year was matched by another dollar that was annihilated. If the US runs a “surplus,” then there are fewer dollars left for us to use than there were at the start of the year.
The US debt that matters isn’t the federal debt, it’s the private sector’s debt. Your debt and mine. We are a debtor nation. Half of Americans have less than $400 in the bank.
https://www.fool.com/the-ascent/personal-finance/articles/49-of-americans-couldnt-cover-a-400-emergency-expense-today-up-from-32-in-november/
Most Americans have little to no retirement savings. Decades of wage stagnation has left Americans with less buying power, and the economy has been running on consumer debt for a generation. Meanwhile, working Americans have been burdened with forms of inflation the Fed doesn’t give a shit about, like skyrocketing costs for housing and higher education.
When politicians jawbone about “inflation,” they’re talking about the inflation that matters to creditors. Debtors — the bottom 90% — have been burdened with three decades’ worth of steadily mounting inflation that no one talks about. Yesterday, the Prospect ran Nancy Folbre’s outstanding piece on “care inflation” — the skyrocketing costs of day-care, nursing homes, eldercare, etc:
https://prospect.org/economy/2023-01-18-inflation-unfair-costs-of-care/
As Folbre wrote, these costs are doubly burdensome, because they fall on family members (almost entirely women), who have to sacrifice their own earning potential to care for children, or aging people, or disabled family members. The cost of care has increased every year since 1997:
https://pluralistic.net/2023/01/18/wages-for-housework/#low-wage-workers-vs-poor-consumers
So while politicians and economists talk about rescuing “savers” from having their nest-eggs whittled away by inflation, these savers represent a minuscule and dwindling proportion of the public. The real beneficiaries of interest rate hikes isn’t savers, it’s lenders.
Full employment is bad for the wealthy. When everyone has a job, wages go up, because bosses can’t threaten workers with “exile to the reserve army of the unemployed.” If workers are afraid of ending up jobless and homeless, then executives seeking to increase their own firms’ profits can shift money from workers to shareholders without their workers quitting (and if the workers do quit, there are plenty more desperate for their jobs).
What’s more, those same executives own huge portfolios of “financialized” assets — that is, they own claims on the interest payments that borrowers in the economy pay to creditors.
The purpose of raising interest rates is to “cool the economy,” a euphemism for increasing unemployment and reducing wages. Fighting inflation helps creditors and hurts debtors. The same people who benefit from increased unemployment also benefit from low inflation.
Thus: “the current Fed policy of rapidly raising interest rates to fight inflation by throwing people out of work serves as a wealth protection device for the top one percent.”
Now, it’s also true that high interest rates tend to tank the stock market, and rich people also own a lot of stock. This is where it’s important to draw distinctions within the capital class: the merely rich do things for a living (and thus care about companies’ productive capacity), while the super-rich own things for a living, and care about debt service.
Epstein and Medlin are economists at UMass Amherst, and they built a model that looks at the distributional outcomes (that is, the winners and losers) from interest rate hikes, using data from 40 years’ worth of Fed rate hikes:
https://peri.umass.edu/images/Medlin_Epstein_PERI_inflation_conf_WP.pdf
They concluded that “The net impact of the Fed’s restrictive monetary policy on the wealth of the top one percent depends on the timing and balance of [lower inflation and higher interest]. It turns out that in recent decades the outcome has, on balance, worked out quite well for the wealthy.”
How well? “Without intervention by the Fed, a 6 percent acceleration of inflation would erode their wealth by around 30 percent in real terms after three years…when the Fed intervenes with an aggressive tightening, the 1%’s wealth only declines about 16 percent after three years. That is a 14 percent net gain in real terms.”
This is why you see a split between the one-percenters and the ten-percenters in whether the Fed should continue to jack interest rates up. For the 1%, inflation hikes produce massive, long term gains. For the 10%, those gains are smaller and take longer to materialize.
Meanwhile, when there is mass unemployment, both groups benefit from lower wages and are happy to keep interest rates at zero, a rate that (in the absence of a wealth tax) creates massive asset bubbles that drive up the value of houses, stocks and other things that rich people own lots more of than everyone else.
This explains a lot about the current enthusiasm for high interest rates, despite high interest rates’ ability to cause inflation, as Joseph Stiglitz and Ira Regmi wrote in their recent Roosevelt Institute paper:
https://rooseveltinstitute.org/wp-content/uploads/2022/12/RI_CausesofandResponsestoTodaysInflation_Report_202212.pdf
The two esteemed economists compared interest rate hikes to medieval bloodletting, where “doctors” did “more of the same when their therapy failed until the patient either had a miraculous recovery (for which the bloodletters took credit) or died (which was more likely).”
As they document, workers today aren’t recreating the dread “wage-price spiral” of the 1970s: despite low levels of unemployment, workers wages still aren’t keeping up with inflation. Inflation itself is falling, for the fairly obvious reason that covid supply-chain shocks are dwindling and substitutes for Russian gas are coming online.
Economic activity is “largely below trend,” and with healthy levels of sales in “non-traded goods” (imports), meaning that the stuff that American workers are consuming isn’t coming out of America’s pool of resources or manufactured goods, and that spending is leaving the US economy, rather than contributing to an American firm’s buying power.
Despite this, the Fed has a substantial cheering section for continued interest rates, composed of the ultra-rich and their lickspittle Renfields. While the specifics are quite modern, the underlying dynamic is as old as civilization itself.
Historian Michael Hudson specializes in the role that debt and credit played in different societies. As he’s written, ancient civilizations long ago discovered that without periodic debt cancellation, an ever larger share of a societies’ productive capacity gets diverted to the whims of a small elite of lenders, until civilization itself collapses:
https://www.nakedcapitalism.com/2022/07/michael-hudson-from-junk-economics-to-a-false-view-of-history-where-western-civilization-took-a-wrong-turn.html
Here’s how that dynamic goes: to produce things, you need inputs. Farmers need seed, fertilizer, and farm-hands to produce crops. Crucially, you need to acquire these inputs before the crops come in — which means you need to be able to buy inputs before you sell the crops. You have to borrow.
In good years, this works out fine. You borrow money, buy your inputs, produce and sell your goods, and repay the debt. But even the best-prepared producer can get a bad beat: floods, droughts, blights, pandemics…Play the game long enough and eventually you’ll find yourself unable to repay the debt.
In the next round, you go into things owing more money than you can cover, even if you have a bumper crop. You sell your crop, pay as much of the debt as you can, and go into the next season having to borrow more on top of the overhang from the last crisis. This continues over time, until you get another crisis, which you have no reserves to cover because they’ve all been eaten up paying off the last crisis. You go further into debt.
Over the long run, this dynamic produces a society of creditors whose wealth increases every year, who can make coercive claims on the productive labor of everyone else, who not only owes them money, but will owe even more as a result of doing the work that is demanded of them.
Successful ancient civilizations fought this with Jubilee: periodic festivals of debt-forgiveness, which were announced when new monarchs assumed their thrones, or after successful wars, or just whenever the creditor class was getting too powerful and threatened the crown.
Of course, creditors hated this and fought it bitterly, just as our modern one-percenters do. When rulers managed to hold them at bay, their nations prospered. But when creditors captured the state and abolished Jubilee, as happened in ancient Rome, the state collapsed:
https://pluralistic.net/2022/07/08/jubilant/#construire-des-passerelles
Are we speedrunning the collapse of Rome? It’s not for me to say, but I strongly recommend reading Margaret Coker’s in-depth Propublica investigation on how title lenders (loansharks that hit desperate, low-income borrowers with triple-digit interest loans) fired any employee who explained to a borrower that they needed to make more than the minimum payment, or they’d never pay off their debts:
https://www.propublica.org/article/inside-sales-practices-of-biggest-title-lender-in-us
[Image ID: A vintage postcard illustration of the Federal Reserve building in Washington, DC. The building is spattered with blood. In the foreground is a medieval woodcut of a physician bleeding a woman into a bowl while another woman holds a bowl to catch the blood. The physician's head has been replaced with that of Federal Reserve Chairman Jerome Powell.]
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All the Kavetham/Haikaveh ideas I don't have capacity to currently write, a very detailed list:
(Which I am humbly placing here before you. Be warned: this post is an incredibly long one!)
1. Fatui!Kaveh AU, where the night before the meeting happens between Kaveh and Alhaitham at the tavern, Kaveh gets a deal from Fatui representatives to work on a huge project in Snezhnaya. Kaveh is sceptical about it, but decides to accept the offer during the dialogue with Alhaitham (seeing himself as a burden, Kaveh decides that he will cause more trouble to Alhaitham than the Fatui, thus he decides to accept their offer even if it seems too good to be true). He tells Alhaitham about his decision to leave for Snezhnaya, and so the two relatively amicably/peacefully part their ways (not without Alhaitham testing Kaveh's reasoning a bit, but Kaveh's resolve remains strong).
And so, Kaveh leaves for Snezhnaya, where he gets to work on several huge projects for the next several years under Sandrone. Most of them are related to construction, engineering and reverse-engineering of Khaenri'ahn and Khaenri'ah-inspired technology, and he gets barely any time to work on his personal projects (he's overworked and exhausted and doesn't get much time and opportunity to be creative; however, the payments are good and he's on his way to getting out of debt, which is practically the sole reason driving him forward. The projects get progressively more complicated and, in a way, unhinged - engineering military equipment is alright, but working with the remains of Khaenri'ahn technology, dead gods and such proves to be... mentally taxing. Everything happens very gradually though, so Kaveh does not immediately notice the true scale of where the Fatui are ready to go to achieve certain goals). Kaveh doesn't really like the work environment of the Fatui, but he does his best (the Harbingers creep him out whenever he gets to see them on a rare official occasion (he might specifically dislike Pantalone because the Harbinger keeps picking at him for his debt, given a chance), but Sandrone's a decent boss who is somewhat encouraging and invested in his work and personal projects. She might be especially interested in Mehrak's existence and operation). Overall, everything goes quite smoothly for Kaveh, even if he doesn't feel quite at home in Snezhnaya and is aware of how dangerous the Fatui can be. He does not consider himself to be paranoid, but the other shoe has to drop at some point - and that happens when the new Acting Grand Sage of Sumeru gets to visit Snezhnaya on a diplomatic mission (aka: Kaveh reconnects with Alhaitham & Co for the first time in what feels like forever). The situation gets complicated when Kaveh realizes that Sandrone encourages the reestablishment of his connection with Alhaitham specifically - and she never encourages an action if she doesn't directly contribute from it.
Feelings, emotions and shenanigans ensue.
TLDR: Kaveh's doing his best despite being restricted in his ways of work, prevented from realizing most of his creative projects and slowly but surely building emotional walls around himself because Fatui and Snezhnaya; Sandrone being a kind of decent boss with sorta good work ethic but horrendous morals who is not exactly a good influence on Kaveh's idealistic tendencies and guilt complex; Fatui being contextually horrifying but kinda normal coworkers if you don't look at them too close; Alhaitham trying his best as a political figure (Nahida help him) while also trying to get Kaveh to return home with him (because he misses him); the main conflict revolving around Kaveh and his life choices with Sandrone and Alhaitham being kind of foils to each other (with Sandrone gradually destroying Kaveh's idealistic morals and playing on his guilt to get the most out of his potential as an innovator, and with Alhaitham actively trying to resolve Kaveh's guilt and show him that, despite their arguments, Kaveh's idealism still has place in the world and can co-exist with other philosophies). There might or might not be some macguffin-esque Deshret relic that both Akademia and Fatui hunt for that eventually brings the whole crew back to Sumeru. Kaveh might or might not get a chance to meet a fragment of Deshret's spirit within the mentioned relic. But there definitely will be a happy end for everyone here (Deshret will make sure of it).
2. Calamity!AU. The new Cataclysm comes, enveloping all Seven Nations, and so Sumeru does its best to survive. The cities are ruined, and the people gather together in random places to survive. Alhaitham gets to live within one of the settlements, established by the Akademiya. While trying to survive the first wave of the new Calamity, he is also looking for Kaveh; after an argument between the two the architect left for an expedition to the Desert, right before the new Calamity began. Unfortunately, the news comes that his group should have been around Tunigi Hollow - one of the spots in Sumeru where the first wave of the new Calamity hit the hardest. There is no concrete information on whether Kaveh's group survived or not. Alhaitham, not loosing hope, does his best to find any information on Kaveh's whereabouts, but due to Sumeru becoming extremely dangerous to traverse and disjointed as a result of the new Calamity, the search stretches out for almost a decade.
One day Alhaitham helps a caravan, traversing the forests to get to one of the settlements, to fight off the monsters. Unexpectedly, Kaveh turns out to be one of the members of the caravan. Their reunion is almost cut short by the caravan's need to keep going, but Alhaitham convinces Kaveh to join him instead. The two return to the new Sumeru city settlement, where Alhaitham lives and works under the watch of Akademiya and Lord Kusanali. It appears that during his years of travels around the destroyed Sumeru Kaveh learned new ways of architectural construction that would be more efficient against the monsters, born by the Calamity. He also seems to behave quite differently, hardened by the experiences of the past years. Alhaitham proposes for Kaveh to stay with him in the city, and Kaveh accepts. The feelings, new routines, dealings with the changed versions of each other and attempts to find new pace of life in the new world ensue.
TLDR: The world might be ending and impossible to live in, but even so each new day is brighter when the person one loves is by their side.
3. Another Cataclysm!AU, where Kaveh and Alhaitham get assigned separate missions in the grander scheme of things created to prevent the coming of a new Calamity. The plan succeeds and the world remains safe, but not without heavy losses: amongst many others, Kaveh does not survive while carrying out his mission.
Decades pass as Alhaitham goes through his grieving process. Eventually, one evening on the anniversary of the Calamity's prevention, Alhaitham wanders to a place he and Kaveh used to visit together. A Ley Line disruption occurs, and he gets to see a glimpse of Kaveh through it. They have a conversation; the Ley Line apparition (a memory of Kaveh) is convinced that Alhaitham is from the future, and so they talk a lot about the Calamity, whether it was prevented, and about each other's futures. Alhaitham can't bring himself to tell Kaveh that he does not survive the Calamity, but he does tell Kaveh that his architectural legacy lives on. Kaveh commends Alhaitham on his achievements (though not an acting grand sage for a very long time, Alhaitham kept playing an important role throughout Sumeru's history, helping to keep it safe).
Eventually, their time runs out. Ley Line disorder starts gradually disappearing. Alhaitham urges Kaveh to be careful and stay safe, knowing that the Calamity (on Kaveh's side) is yet to come. Kaveh laughs and tells him that on his side, Alhaitham just told him the same words after they finished the debriefing session, related to the Calamity. He says that he was feeling very nervous, but that seeing future-Alhaitham made him convinced that they are on the right path.
And so, the Ley Line disorder disappears. Alhaitham spends some more time at the spot before returning home. Despite painful memories having been brought up, his heart feels a bit lighter.
TLDR: closure comes unexpectedly, takes many forms and does not erase the pain in an instant, but, nevertheless, it heals.
4. AU! where Kaveh and Alhaitham are both magical birds that can transform into humans (and half-humans).
They live together in the depths of Sumeru forest - a domain of a long lost God of Wisdom. Kaveh's feathers are rumoured to bring blessings, while Alhaitham's feathers, on the contrary, are said to bring bad luck or even curses. Humans, living at the edge of magical forest, kinda worship them, but also prefer not to interact with them, primarily because Alhaitham is not happy when others trespass on his lands, and because searching for Kaveh is extremely hard (he's often off working on his projects deep within the forest), and the magical forest is very dangerous on its own. So, the humans build their cities outside of the Sumeru forest, and Alhaitham and Kaveh peacefully live together in the depths of it.
Despite Kaveh and Alhaitham living together for a long time, their opinions on humanity are diametrically opposed: Alhaitham barely tolerates humans, finding them to be reckless, meddling, cowardly and deceitful; Kaveh, on the contrary, finds humans to be creative, inspiring, free and beautiful in their own way. Throughout the years, Kaveh manages to build somewhat of an amicable relationship with the humans, living at the edge of the forest: he learns more about their traditions and arts, while the humans receive his guidance and blessings in various matters of living, craftsmanship and arts. Eventually, Kaveh's knowledge and magical powers catch the eye of Lord Sangemah Bay, who resides in and governs one of the bigger settlements at the forest's border. She makes a deal with Kaveh that, despite providing him with valuable (in his eyes) experience of working with humans on some of his grandest architectural projects, costs him a lot - meaning he has to give away lots of his blessed feathers, which makes his remaining magic much weaker (and generally undermines his health for a bit). Alhaitham is not a huge fan of such approach (in his eyes, Kaveh is wasting his powers and time for nothing, endangering himself), and so a conflict between him and Kaveh breaks. As a result, Kaveh flees their home, secluding himself while he's focusing on other projects he finds curious. Kaveh keeps working with humans, and though Alhaitham certainly keeps an eye on Kaveh's wellbeing, he does not make it easy for humans to reach him. So what if there are new random magical seals, obstacles, almost-traps and riddles appearing here and there when people try to get to Kaveh? It's a magical forest, things happen! (Kaveh knows that Alhaitham does this on purpose, and Alhaitham knows that Kaveh knows, and it leads to them indirectly, and then directly bickering and arguing. The magical forest quite possibly grows very tired of them. Their friends Tighnari and Cyno certainly do, but alas.)
The new equilibrium, found by Alhaitham and Kaveh, is challenged once more when Kaveh leaves to the Lord Sangemah Bay's city to direct yet another one of his grand projects. They do not see each other for a long while. Despite all the challenges, Kaveh's relationship with Dori gradually grows stronger - the two value their partnership - and Kaveh ends up making friends amongst humans. However, not everyone is happy about Lord Sangema Bay's growing friendship with the "deity of blessings" personified. As some people come to despise her for her wealth, influence and ever growing power, so do they come to despise the bird of paradise.
When the project is complete, the time for celebration comes. Kaveh gets to attend a feast by Dori's side as a guest of honour, and is invited to stay the night in her palace before returning to the forest. Kaveh agrees: he's been spending all his days and nights at the building site, and resting a night before returning home would be nice. As the night goes on, however, Kaveh begins to feel weary and unwell - the new type of wine he was served did him no good. He excuses himself early for the night and, as soon as he gets to his bed, he's out cold.
After an undetermined amount of time (in what appears to be the middle of the night), Kaveh wakes up because of immense pain in his back.
As he gradually comes to his senses, he has a horrible realization: one of his wings was cut off when he was asleep. Alerting the guards and Dori yields no results: the intruder escaped, presumably with Kaveh's wing, and there are no traces of them left. While Kaveh gets immediately attended to, he goes in shock and, eventually, loses consciousness.
When the messengers form the city arrive to the forest, Alhaitham receives them reluctantly at first, but as soon as he hears of what happened, he rushes to the city. He ends up taking Kaveh back to the forest, hoping that its healing magic will help restore his wing. However, nothing seems to work: neither spells, nor the powers of nature, not even Tighnari's medicine. Though the wound is slowly healing, Kaveh remains unconscious for days. To get more information on what happened, Alhaitham returns to the city to question Dori together with Cyno (who's also to continue the investigation within the city once Alhaitham returns home), while Tighnari stays with Kaveh.
Though the questioning concludes that Dori knows nothing and is willing to assist in the search of the perpetrator, Cyno concludes that she was not thorough enough in ensuring Kaveh's safety and overall security of the celebration in general, revealing that Dori recklessly cut corners here and there. Furious, Alhaitham leaves Dori his cursed feather, giving her an ultimatum: she has to find the perpetrator and give them to Alhaitham to deal the final punishment. Until then, her city is doomed to slowly crumble into decay and oblivion. Dori accepts the deal.
Alhaitham returns to the forest to look after Kaveh, while Cyno remains in the city to continue the search. When Alhaitham comes back, Kaveh is finally awake. However, he remains extremely closed-off, practically a shadow of himself. The recovery process is slow and challenging, but Alhaitham does his best to support Kaveh in all ways that matter. Kaveh struggles with healing: the loss of a wing affected not only his body, but also his mental state and magic. He cannot transform, he can barely use any of his magical skills, and he cannot fly anymore, which hurts him most of all. It takes a while for Kaveh to get on his feet (quite literally), even longer to finally leave his room. He also feels guilty for being in Alhaitham's care, because he remembers all of the Alhaitham warnings about the humans he didn't listen to, and so lots of internal conflict ensues.
Meanwhile Alhaitham does all he can to try and navigate the situation. He looks after Kaveh's healing process; brings back his blueprints and equipment from Kaveh's place so that he has enough to work with if he wishes; he also (to the best of his ability) remodels their home to make it more accessible to Kaveh. Given that their natural method of moving around their house was flying (whether in form of birds of half-humans), Alhaitham now implements more adjustments for walking or climbing. (When Kaveh feels good enough to leave his room, he's amazed by what Alhaitham managed to achieve. He also helps fix some of the constructions, given he's the one with the experience in architecture.) Alhaitham and Kaveh grow closer, slowly unpacking and mending their relationship, turning it into something new and beautiful.
At the same time, Alhaitham continues to watch the forest borders - to make sure that no intruders interrupt Kaveh's recovery and their peaceful life together. One day he notices an interesting sight: a small, but beautiful shrine appeared right by the forest. He decides to investigate; upon approaching the shrine, he meets Nilou (whom he saw in the palace when he visited Dori). She explains to him that, after he and Kaveh left the city, a group of people decided to organize a shrine, dedicated to Kaveh, to pray for his recovery. Nilou explains that in their eyes it's the least they can offer for all the help that their city received in the past and as amends for the pain they have caused. Alhaitham warns her not to get any closer to the forest, but the action of people leaves a lasting impression on him.
Meanwhile, Cyno's investigation progresses. Cyno writes to Alhaitham that together with Dori they managed to find and capture the perpetrator. Questioning reveals no useful information, but Cyno suspects that there might be more to the attack on Kaveh than they anticipated. To uphold his end of the deal Alhaitham goes to the city to deliver the punishment to the attacker and to undo the curse he put on Dori's city. Before he leaves, Kaveh, scared of what might happen to Alhaitham, sews into his cloak a blessed feather for protection (because Alhaitham wouldn't accept it outright). While Alhaitham is away, Kaveh begins working on a new project: a mechanical wing.
When Alhaitham gets to the city, he is led to the cell where the attacker is being held. Cyno and Dori are by his side for the final questioning. The man - a mere mortal (with strange red-ish eyes), one of Dori's citizens - keeps talking in circles, making less and less sense with each new word. Alhaitham lets Cyno and Dori go before rendering the punishment. When the curse (one of Alhaitham's darkest yet) is finally prepared, suddenly, the tables are turned. The perpetrator attacks Alhaitham, but his movements seem unnatural, almost like those of a puppet. Alhaitham realizes, that the man is being controlled by someone with prowess for strong, incredibly dark magic that seems similar to that of the Desert. The strange puppet manages to overpower Alhaitham in a fight, but cannot harm him (due to the protection from Kaveh's feather). The perpetrator manages to escape, taking with him Alhaitham's cursed feather (they seemed to be pleased to receive it. Alhaitham fears to think what they will use it for).
Dori and Cyno pick up the investigation, with Cyno going straight to the Desert. Dori begins reinforcing the city (her people discover that Alhaithams curse (now lifted) awakened Miasma deep under the ground. The Miasma begins to slowly spread, seemingly in the direction of the Sumeru Forest). Cyno sends back a message, confirming that strong and dark magic seems to be gathering within the Desert, possibly for the purpose of destroying the magical forest.
Alhaitham manages to get back to Kaveh and tell him of what happened in the city. In order to be able to protect the forest together with Alhaitham, Kaveh doubles down on his efforts to create a mechanical working wing. Everything works, besides the golden feathers - they need to be blessed in order to allow the mechanism to work as intended, but Kaveh does not have enough power for it. Alhaitham takes a risk and brings the feathers to the shrine, created by Nilou and other humans, so that they could bless them for Kaveh. (They are short of one feather eventually, and Alhaitham gives Kaveh one of his own, his first blessed feather, to complete the wing.)
TLDR: Kaveh works on restoring his wing and faith in himself and humanity; Alhaitham learns that humanity is not always evil. Dori and Cyno discover that the escaped perpetrator (caugh controlled by Dottore caugh) used Kaveh to get to Alhaitham to gain his cursed feather for completing some sort of ancient ritual to unseal the forbidden knowledge magic deep within the Desert in roder to unleash it on the magical forest, slumbering God of Wisdom and human cities. Kaveh learns to curse his feathers (while opposing Dottore in a final fight), and Alhaitham learns to bless his. Humans and Sumeru Forest continue to coexist peacefully. Alhaitham and Kaveh live together happily ever after.
5. Pacific Rim!AU, where Kaveh and Alhaitham used to be pilots of a Jaeger, but during one of their battles they suffered too much damage. In order to save Alhaitham and what remains of their Jaeger, Kaveh takes most of the damage by severing already unstable connection between Alhaitham and Jaeger's system. Both barely survive the encounter, but meanwhile Alhaitham manages to recover fast, the damage Kaveh has taken leaves him in a critical condition, eventually resulting in him being unable to ever pilot a Jaeger ever again (and putting many new restraints on his usual daily life).
As soon as Kaveh comes to his senses, the two have a huge fight about Kaveh's rash decision, and eventually break off their friendship. They don't see each other for a long, long time.
As the time goes on, Kaveh learns how to live with the changes that his body sustained with the help of his service dog Mehrak. Eventually he takes on a job at one of the Jaeger construction facilities (together with his friend Tighnari), studying Kaiju and creating new Jaeger modifications - though no Kaiju has been seen in the past several years, the world is still afraid of their return.
When the suspicion of the new Kaiju appearance arises, new pilot recruits and ex-pilots are summoned to the facility. There, Kaveh meets Alhaitham for the first time in years. After their fallout, Alahitham resigned from piloting Jaegers, yet now he had no choice but to return to train new recruits (and possibly resume his role of a Jaeger pilot). Now once again the two have to work together as a part of a team in face of approaching danger, trying to resolve their past conflicts and overcome their fears and insecurities along the way (when deep down they simply want to keep each other safe).
TLDR: Kaveh & service animal Mehrak is a neat concept I'd love to see more of, just as a concept in general. I think this one could be an interesting story idea centered mostly around Kaveh's day to day life. Additionally, Alhaitham who used to be only drift compatible with Kaveh but now suddenly discovers he's drift compatible with Cyno. I need more Cyno & Alhaitham camaraderie I think it would do them lots of good (at least in this specific AU setting lol).
6. Oxenfree!AU where Kaveh and Alhaitham are two ex-best friends turned reluctant coworkers (photo-journalist and journalist respectively) working on writing a piece about the disappearances of a group of teenagers that happened at the Edwards Island several years prior (timeline somewhere between the first and the second games). The radio shenanigans ensue, making the two face their past, possible futures and, most importantly, their present. (In Oxenfree tuning into certain radio sequences can temporarily mess up time-space shenanigans, just fyi).
TLDR: I just think that this setting could facilitate some character exploration that would be very fun.
7. Modern MermanKaveh!AU, post-fallout, where it's a little bit more about haunting Alhaitham (and the narrative), than being a merman. Due to an unfortunate set of circumstances, Kaveh drowns one day, trying to save someone from the water. Due to an unfortunate set of circumstances, he doesn't really die, being stuck in between (existence and death, normal life and the necessity to live in water). Kaveh manages, for quite a while even!
But of course Alhaitham has to come back and turn his world upside down once again.
TLDR: can you tell Alhaitham's quote about drowning stuck with me huh (and I made it literal lol). On a serious note... Idk, vibes??? I want to see the "stuck in the middle" Kaveh, whatever that entails. Some existential explorations. And the development of his relationship with Alhaitham, of course. // Kaveh is a merman unable to fully live the life he used to have, and Alhaitham doesn't know that he survived (for a while), alternatively "let me help to save you from metaphorical and literal drowning" Alhaitham and "I learned to live like this, this is what my norm now looks like" Kaveh.
8. Another Modern MermanKaveh!AU/DrownedGhostKaveh!AU, because I apparently have no self-control (I feel like I should also clarify that whenever I mention a mermaid, I think of them more as of ghosts of drowned people and less as mermaids-mermaids, the half-human half-marine creature ones). This idea was initially prepared for chili/zhongchi but it's been sooooooooooooooooooo long and I still haven't done anything substantial for it so I'm borrowing it from myself for myself and tweaking it for kavetham because I figured it could fit them. So here it goes,
Alhaitham is a scientist/marine biologist that moves from the city to a much smaller port town, getting himself a place in a local partially repurposed lighthouse. Kaveh is a merman, who has been dead for a long while and who's been living within local waters ever since he drowned. Alhaitham leads a very isolated life, going through a rather rough patch emotionally (maybe a badly ended past relationship and relocation from an established group of friends to a remote place brought up past negative emotions related to loss that were bottled up for a while. who knows, not me). Anyways, Alhaitham's not doing too well, but seaside walks help him unwind, even if for a short periods of time. During one of such walks, he finds an old pendant washed ashore. He picks up his find, hoping to do some research on it outside of his work time (because research is his fun-time).
He expects this to be a brief excursion into local history. He does not expect to become haunted by the ghost of a man to whom this pendant belonged to way back when.
Kaveh, in turn, is extremely excited to finally, finally be able to get out of the sea to the surface. He intends to stay ashore as long as possible and, well, if he just so gets to amuse himself by haunting a grumpy marine biologist that refuses to believe in merpeople, ghosts of drowned and other supernatural occurences - who's he to say no?
TLDR: this AU can go two ways (in my eyes): the happy ending way and probably more gothic-horror-story-esque ending. So, Alahitham is cursed to be haunted by Kaveh: for a while he's the only one who can see him, with Kaveh being something akin to a ghost. However, the longer Kaveh haunts Alhaitham, the more human he becomes (others can see him, he cannot phase through walls anymore, etc.). The curse in itself goes something like this: the cursed thing, after being picked up/taken in, cannot be thrown away and will always come back. The ghost, tied to the haunted thing, shall haunt whoever picks the cursed thing (the thing should be tied to the ghost, but may not necessarily belong to them) and drain their life energy. The ghost can become free and human again if the haunting goes long enough and they kill the human who picked the cursed object in the end during a very specific time that doesn't occur too often (proverbial blue moon, idk). If they don't kill the human and decide to let them go, then the ghost will seize to exist and the human will regain their strength. (An alternative option to the ghost dying for a less angsty au: the ghost voluntarily takes back the cursed object and returns to the place where they died, but then they will never be able to haunt anyone ever again. The effect of the curse on the haunted remain, but much weaker).
In this case, let's say Kaveh and Alhaitham stay by each other's side from half a year to a year, idk. They grow closer, eventually becoming friends and maybe more (the usual kavetham shenanigans Kaveh falls first but Alhaitham falls harder). Alhaitham's mental state gradually improves, yet overall he becomes weaker because of the curse (to the point that it becomes a serious concern), which Kaveh blames himself for. The appointed time approaches (both Kaveh and Alhaitham are in on the details of the curse), and Kaveh, seeing it as an opportunity to set Alhaitham free, manages to separate himself from Alhaitham. Kaveh is ready to return to the sea/merge with it (ah yes the classic Little Mermaid influence does anybody feel it lol). However, Alhaitham sees through his plan and arrives just in time to stop him. They have a confrontation. Eventually, they manage to lift the curse (as you can see I have not figured out exactly how this can happen but! it definitely can!) with Kaveh becoming human again and Alhaitham regaining his health. The two continue to live together happily ever after.
The other scenario is practically the same, but it's more ghothic? and abstract (and probably more suitable for the og pairing it was made for, but i'll throw it in anyways). I have not engaged with gothic literature much and thus don't have much experience in how it works/how to write it, but the idea is that Kaveh is more of a projection of Alhaitham's grief than a ghost fo a drowned person (in other words, he's definitely a ghost, but his presence is also much more symbolical). The story follows quite similar beats, except the setting of the curse is a bit different: it's more of a "kill first or be killed" thingy with a deadline. Kaveh earnestly tries to drown Alhaitham at first through various means, but the more time they spend together, the more Kaveh sees of Alhaitham's life and pain and feels sympathetic for him. Despite the curse, Kaveh tires to help Alhaitham in various ways; and it works! Alhaitham gradually begins to feel better; the two grow closer to each other (more in a platonic way).
So now the precedent is that though Alhaitham's overall doing better, the curse still preys on him, hindering his life in various ways that become more and more serious/dangerous (the curse's deadline approaches, and it tries to survive the best way it can through Kaveh's influence on Alhaitham). Eventually, Kaveh lets Alhaitham go, merging with the sea (once again, yes, it was partially inspired by the Little Mermaid). Alhaitham realizes what happened and tries to look for Kaveh, but it is in vain.
Eventually, life goes on.
Bonus Elden Ring AU (because guess who suddenly went on a lore video watching spree): Kaveh is a craftsman and one of the inhabitants of Castle Morne who managed to escape before it was overrun by Misbegotten. He's a follower of St. Trina and Miquella (he doesn't follow Miquella at first, but slowly he comes to suspect that the two are one and the same). After escaping from Castle Morne, he finds his way to Jarburg, where he is welcomed to stay and be the new Potentate.
Alhaitham is from a distant branch of Carian royal family and a scholar at the Academy of Raya Lucaria. Quite possibly explored an area of studies similar to Sellen's. Eventually he separates himself from both Academy and his family, becoming a wandering scholar.
The two meet somewhere nearby Jarburg when Kaveh gets ambushed by the same people who were trying to get to Alhaitham. The two fight them off. Kaveh, trying to help injured Alhaitham, leads him to Jarburg. The two continue living together there ever since (not without hiccups, but they're doing their best).
TLDR: this one is short and very simple because I just started diving into the Elden Ring's lore, but I just. Really wanted to make some AU for them. I also desperately wanted it to be peaceful and happy one despite it being a seeming impossibility for anything dark souls/elden ring related, but one can dream. If I were to make this one darker I'd probably expand on the duality of their two characters here, and how Alhaitham probably used to conjure spells on humans (with gaining knowledge being his sole life purpose for a long time) and has challenges with comprehending the world outside of a framework of pure logic, and how Kaveh gets an increasing tendency of escaping to the dream world/wherever Miquella is in order to alleviate his mental turmoil (maybe he witnessed too much during his escape from the Castle), and how the two have opposing perspectives on the idea of worshipping gods, and- like, there's a lot that can be done. But I also just really really really want them to simply be happy together in a jar village, leading a peaceful life.
That's it for now! Thank you for reading all of this, I can't commend your patience enough if you got to the end of this list!!!✨🎉✨
Maybe in the future I will unpack some of these aus. who knows.
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