Sunday, March 11, 2012

Why the decline of the West is best for India – and them

When family is a “burden” and children an “encumbrance,” society goes for a toss

By R Vaidyanathan
Ten years ago, America had Steve Jobs, Bob Hope and Johnny Cash. Now it has no Jobs, no Hope and no Cash. Or so the joke goes.
Only, it’s no joke. The line is pretty close to reality in the US. The less said about Europe the better.Both the US and Europe are in decline. I was asked by a business channel in 2008 about recovery in the US. I mentioned 40 quarters and after that I was never invited for another discussion.
Recently, another media person asked me the same question and I answered 80 quarters. He was shocked since he was told some “sprouts” of recovery had been seen in the American economy.
It is important to recognise that the dominance of the West has been there only for last 200-and-odd years. According to Angus Maddison’s pioneering OECD study, India and China had nearly 50 percent of global GDP as late as the 1820s.   Hence India and China are not emerging or rising powers. They are retrieving their original position.
In 1990, the share of the G-7 in world GDP (on a purchasing power parity basis) was 51 percent and that of emerging markets 36 percent. But in 2011, it is the reverse. So the dominant west is a myth.

The Iranian battle of ideology over pragmatism

Iran vote lets Khamenei pull strings
By Mahan Abedin

The elections to the ninth Islamic Consultative Assembly (Iran's national parliament) generated enormous interest in the global media for two reasons. First, the poll was seen as a quest for legitimacy by Iran's rulers following the disputed presidential elections of June 2009. And for the first time in three decades, Iranian elections appeared to be a reductive contest between conservative groups.


The old guard is kind of hanging on

THE WORLD'S LARGEST ECONOMIES: 1990 Vs. 2011
By Joe Weisenthal
This is from a recent GE investor presentation.
In some ways we're struck by how similar now is compared to 1990. China has obviously had an amazing two decades, and Russia and India are new entrants. But the old guard is kind of hanging on.

Everything That's Wrong With Everything

Bernanke and his cohorts across the planet are determined to keep printing money even if it ruins us all


by M.N. Gordon
Is the economy improving or stagnating?  Are businesses hiring or firing?  Is the stock market a buy or a sell?  Will monetary inflation prevail over debt deflation?
Quite honestly, we don’t know the answers to these questions.  Nonetheless, we have some ideas on what we think the answers should be.  More important than what we think, however, is what’s going on…and how it’s making thoughtful ruminations on markets and political economies such a muddled mess…
“We have Monetary Anarchy running riot, where the elastic band between the real economy and the current liquidity-fuelled markets is stretched further and further beyond credulity,” noted Bob Janjuah, head of tactical asset allocation at Nomura, earlier this week.

Hell hath no fury like an abused bondholder

Legal skull-duggery in Greece may doom Portugal
"It does not matter how often the EU authorities repeat that Greece is a 'one-off' case, nobody in the markets believes them." 
"The rule of law has been treated with contempt," said Marc Ostwald from Monument Securities. "This will lead to litigation for the next ten years. It has become a massive impediment for long-term investors, and people will now be very wary about Portugal."
At the start of the crisis EU leaders declared it unthinkable that any eurozone state should require debt relief, let alone default. Each pledge was breached, and the haircut imposed on banks, insurers, and pension funds ratcheted up to 75pc.

Saturday, March 10, 2012

Τhe lessons of Fukushima

The crisis of politics that is holding society back
On the first anniversary of the Japanese tsunami, Rob Lyons asks why some fairly minor damage to one nuclear plant became the story.
by Rob Lyons
Sunday marks the first anniversary of the earthquake and tsunami that devastated the east coast of Japan on 11 March 2011. The quake, measuring 9.0 on the Richter scale, was the biggest ever to hit Japan and one of the biggest anywhere in the world in the past century. The resulting tsunami caused roughly 20,000 deaths. Yet, shockingly, the biggest issue about the disaster remains the resulting inundation of a nuclear-power plant at Fukushima, which so far appears to have caused precisely zero deaths from leaking radioactivity.
There are many valuable lessons to be learned from this tragedy. One is the importance of development. The earthquake and tsunami that affected the Indian Ocean on Boxing Day 2004 were only marginally larger, yet killed well over 200,000 people. Direct damage from the Japan earthquake was relatively small thanks to high building standards. Warnings allowed many people to escape the unprecedented seawater surge that followed, though video of the wall of water hitting coastal towns is still shocking. Even so, the world’s third largest economy will take a long time to recover fully from what happened. Thankfully, Japan has the resources to do that.

Miss Fluke goes to Washington

When even casual sex requires a state welfare program, you're pretty much done for
By MARK STEYN 
I'm writing this from Australia, so, if I'm not quite up to speed on recent events in the United States, bear with me – the telegraph updates are a bit slow here in the bush. As I understand it, Sandra Fluke is a young coed who attends Georgetown Law and recently testified before Congress.
Oh, wait, no. Update: It wasn't a congressional hearing; the Democrats just got it up to look like one, like summer stock, with Nancy Pelosi and Harry Reid doing the show right here in the barn and providing a cardboard set for the world premiere of "Miss Fluke Goes To Washington," with full supporting cast led by Chuck Schumer strolling in through the French windows in tennis whites and drawling, "Anyone for bull****?"

Libya’ Does Not Exist

We defy it at our peril (Repost)
By Justin Raimondo On March 13, 2011
The idea that there is a nation called “Libya” is the central problem with our understanding of what is going on in that fake “country,” the flaw in our projections of what will or ought to happen.

Argentina's never-ending tragedy

What's gone wrong?
By Jeremy Warner
I'm not going to get into the rights and wrongs of Argentina's claim on the Falklands, but if I were a Falkland islander, I'd continue to avoid the embrace, well meaning or otherwise, of these Latinos of the South Atlantic like the plague – for, largely unreported by the Western press, Argentina is once more an economic basket case.
But how can that be? Since abandoning the folly of its fixed exchange rate regime with the dollar, Argentina has surely come on in leaps and bounds, right?
Wrong, though that has certainly been the narrative regularly trotted out by opponents of the euro, who frequently point to Argentina to demonstrate the merits of free floating over fixed exchange rate regimes. I've even used it myself. Unfortunately, Argentina far from proves the case, as I've been discovering in the past few days in researching the Argentine economy. With Greece and possibly others set to exit the eurozone over the next year or two, it's worth exploring the lessons.

Our "Let's Pretend" Economy

Let's Pretend Financialization Hasn't Killed the Economy
Like the bubonic plague, financialization has a lifecycle that cannot be reversed by Federal Reserve or European Central Bank intervention.
By Charles Smith
Let's pretend the Federal Reserve can force the financialization lifecycle back into expansion. Why do we need to pretend this can happen? Because the entire U.S. economy and its expansionist Central State now depends on ever-expanding financialization for its survival.


The Official Handbook on how to Kill American Citizens

FBI Director: I Have to Check to See If Obama Has the Right to Assassinate Americans On U.S. Soil
by George Washington
Fox News reports:
FBI Director Robert Mueller on Wednesday said he would have to go back and check with the Department of Justice whether Attorney General Eric Holder’s “[criteria] for the targeted killing of Americans also applied to Americans inside the U.S.
***
“I have to go back. Uh, I’m not certain whether that was addressed or not,” Mueller said when asked by Rep. Tom Graves, R-Ga., about a distinction between domestic and foreign targeting

The Ruling Class

Face of the True 1%
Xavier-De-La-Torre
Xavier De La Torre of the 1%
by Dave Blount
There’s no need to worry about the economy, despite indications that California and soon after the entire country will go bankrupt. There must be much more money in the coffers than we thought. Otherwise, our rulers wouldn’t be shoveling it around like this:
Xavier De La Torre, 48, was confirmed Wednesday afternoon as [Santa Clara County, California's] top educator. He will be paid $299,500 annually, plus receive a $12,000 annual auto allowance and, with at least a satisfactory performance in the first year, $20,000 more toward purchase of pension credits. His salary will rise automatically every July by the percentage increase in the Consumer Price Index forthe Bay Area. …

Friday, March 9, 2012

The Church of Big Government

The Cube and the Cathedral
By Mark Steyn
Discussing the constitutionality of Obamacare's "preventive health" measures on MSNBC, Melinda Henneberger of the Washington Post told Chris Matthews that she reasons thus with her liberal friends: "Maybe the Founders were wrong to guarantee free exercise of religion in the First Amendment, but they did."
Maybe. A lot of other constitutional types in the Western world have grown increasingly comfortable with circumscribing religious liberty. In 2002, the Swedish constitution was amended to criminalize criticism of homosexuality. "Disrespect" of the differently orientated became punishable by up to two years in jail, and "especially offensive" disrespect by up to four years. Shortly thereafter, Pastor Ake Green preached a sermon referencing the more robust verses of scripture, and was convicted of "hate crimes" for doing so.

In the meantime, the debasement of paper money continues

ECB money injection not a reason for optimism


by DETLEV SCHLICHTER
Are you feeling optimistic yet? Are you confident that policy-makers have things under control? – If so, you must believe that we can solve any economic problem by throwing freshly printed money at it. Even problems that are evidently the result of previous periods of ‘easy money’– such as overstretched and weak banks.
The ECB this week allotted another €529.5 billion of new money to Europe’s banks. The banks get these funds for three years at 1 percent interest. That this is a gigantic subsidy for one specific industry does not require much explanation.


Going to the roof

Teens choosing death in Russia



By Will Englund

Russia is hard on its children, and Yelizaveta Petsylya and Anastasia Korolyova finally decided, at the age of 14, to do what thousands of other Russian teenagers have done. There was one way to assert control over their lives, and that was to end them.


The Cultural Contradictions of Democracy

The main threats to democracy lie within liberal societies themselves.
By Vladislav Inozemtsev
In the late 1980s, at Cold War’s end, many believed that democracy, as obvious political best practice and key driver of strategic success, would without doubt spread and ultimately become universal. A prominent advocate of this prediction, Francis Fukuyama, stated his view in more careful and conditional terms than the many who did not read his fine print, but nuance aside, the coming global triumph of democracy was in those days a widespread expectation that many prominent observers, not least Samuel Huntington with his earlier “third wave” analysis, played a part in bringing about. It is no longer so widespread a view. The ostensible reasons are many, but let us note the three most common themes.

Life, With Dementia

Protecting the Vulnerable
The California Men’s Colony is using convicted killers to care for inmates
 who can no longer care for themselves.
By PAM BELLUCK
Secel Montgomery Sr. stabbed a woman in the stomach, chest and throat so fiercely that he lost count of the wounds he inflicted. In the nearly 25 years he has been serving a life sentence, he has gotten into fights, threatened a prison official and been caught with marijuana.


What if the tractor had never been invented?

Productivity in the economy is almost the only thing that matters

By James Pethokoukis

Recall President Obama’s strange ATM problem from last year:
There are some structural issues with our economy where a lot of businesses have learned to become much more efficient with a lot fewer workers. You see it when you go to a bank and you use an ATM, you don’t go to a bank teller, or you go to the airport and you’re using a kiosk instead of checking in at the gate.
Now, economists think productivity is a good thing. And automation improves productivity. As economist Paul Krugman famously put it, 
“Productivity in the economy is almost the only thing that matters.”

Thursday, March 8, 2012

The Platinum Rule

The presumption of growth
By Anthony de Jasay
Platinum is worth more than gold. Though the best should not act as the enemy of the good, it is a bad mistake to lose sight of the platinum once, if by great efforts, the gold has been gained.
After watching for two years the tragic-comic Greek drama, the vicious downward spiral sucking a country into a black hole despite one futile effort after another to "rescue" it, many European governments are telling themselves (though staunchly denying it to the world): "There, but for the grace of God, go I". Softened up by this awful example, 25 of the 27 member states of the European Union [EU] have agreed to conclude treaties with one another to observe the golden rule of a balanced budget allowing only a minute deficit, and to adopt the domestic legislation, including a constitutional amendment if necessary, to implement it. True to form, Great Britain and the Czech Republic begged to be excused (which prevented the radical move of putting the Golden Rule directly into the EU treaties). The passage of the Golden Rule through 25 legislatures is hardly assured, but even the intention of making it the established European fiscal standard merits a look at its logical foundations.
Modes of Self-Denial
There is a set of fairly universal rules of conduct that comes about spontaneously as a matter of by and large everybody behaving in his or her best interest by treating others the way they wish others to treat them. A rational person will refrain from stealing the property of others in the expectation of others not stealing his, rather than he and the others all stealing from each other. Technically, these rules are conventions which are adhered to out of self-interest and by and large enforced by the threat of retaliation.

The Day It Became the Longest War

Cheers and Tears

by Charles Cooper
"The President will see you at two o'clock."
It was a beautiful fall day in November of 1965; early in the Vietnam War-too beautiful a day to be what many of us, anticipating it, had been calling "the day of reckoning." We didn't know how accurate that label would be.

The Pentagon is a busy place. Its workday starts early-especially if, as the expression goes, "there's a war on." By seven o'clock, the staff of Admiral David L. McDonald, the Navy's senior admiral and Chief of Naval Operations, had started to work. Shortly after seven, Admiral McDonald arrived and began making final preparations for a meeting with President Lyndon Baines Johnson.


The elites are making a virtue of intolerance

France's criminalisation of Armenian genocide denial is only the latest outburst of twenty-first-century state intolerance
by Frank Furedi 
Last month, the French Constitutional Council struck a blow for the ideal of a tolerant and open society. It declared that the French government’s new law punishing the denial of the Armenian genocide was unconstitutional and infringed upon the freedom of expression.

Have they gone insane ?

ECB Balance Sheet Hits Record $3.9 Trillion on History-Making Bank Loans
By Jana Randow 
The European Central Bank’s balance sheet surged to a record 3.02 trillion euros ($3.96 trillion) last week, 31 percent bigger than the German economy, after a second tranche of three-year loans.
Lending to euro-area banks jumped 310.7 billion euros to 1.13 trillion euros in the week ended March 2, the Frankfurt- based ECB said in a statement today. The balance sheet gained 330.6 billion euros in the week. It is now more than a third bigger than the U.S. Federal Reserve’s$2.9 trillion and eclipses the 2.3 trillion-euro gross domestic product of Germany (EUANDE), the world’s fourth largest economy.
The ECB last week awarded banks 529.5 billion euros for three years in the biggest single refinancing operation in its history, adding to the 489 billion euros it lent in December. The flood of money, which aims to combat Europe’s sovereign debt crisis by unlocking credit for companies and households, has increased the risk exposure of the 17 euro-area central banks that together with the ECB comprise the Eurosystem.
“With the dramatic expansion of its balance sheet since last summer, the ECB has become the most active central bank in the world,” said Klaus Baader, chief euro-area economist at Societe Generale in London. “The ECB’s measures are absolutely justified, but it has to be aware of the risks on its balance sheet and think of an exit strategy.”

Why Greece Cannot Be Allowed to Live

And Why Merkel Is In Such a Hurry to Get FiskalPakt
By John Ward

Why Berlin, Washington, the German Constitution, the Fiscal Union and the Greek bailout are unstoppable forces hitting immovable objects.

Quite a few of you will already be aware of the facts I’m about to discuss. What you might not have done is put them together in order to make more sense of German Chancellor Angela Merkel’s currently somewhat delicate situation.

Nine days ago on February 28th, The German Constitutional Court in Karlsruhe ruled that both the existing EFSF and its planned successor the ESM are unconstitutional in the Bundesrepublik. Even as things stand now, any use of EFSF funds approved by Merkel will be illegal. This is part of the reason why she and Wolfie Strangelove don’t want to talk about boosting it just yet, on the grounds that a bazooka will be just as illegal as a pea-shooter, only much more noticeable.


The Mindset of the Modern Tyrants
SantaMonicaBeach_Prohibitions.jpg

Wednesday, March 7, 2012

Government By 'Expert'

Can Limited Government and the Administrative State Co-Exist?”
by Richard A. Epstein
The “co-exist” gives away the game. Historically, the term entered the political lexicon with Nikita Khrushchev’s famous 1956 speech to the 20th Congress of the Communist Party of the Soviet Union to signal his break with Stalin’s murderous policies that sought constant confrontation with the West. Coexistence meant the West could go its way so long as the Soviet bloc could go its own way too—a live-and-let-live relationship where occasional interactions would iron out any difficulties that arose. Nine months later, he announced to the West, “We will bury you.” Less than five years after that, the United States and the Soviets came to the brink during the Cuban Missile Crisis, where the Soviets sought to alter the global balance of power by using Fidel Castro’s Cuba as a base for its operations.
Peaceful coexistence, therefore, does not offer an ideal paradigm of how the rule of law does, or should, interact with the modern administrative state. To see why the two are ultimately incompatible, we must consider the nature of both the “rule of law” and the “administrative state,” about which I have written more extensively in my recent book Design for Liberty.

Kill John Deere

Outlaw Productivity Gains And Technological Advances



By WALTER WILLIAMS
The U.S. Census Bureau reports that 2011 manufacturing output grew by 11%, to nearly $5 trillion. Were our manufacturing sector considered a nation with its own gross domestic product, it would be the world's fourth-richest economy. Manufacturing productivity has doubled since 1987, and manufacturing output has risen by one-half.

Letters from Cuba

They don’t know everything, my love, they don’t know…
sombras
By Yoani Sánchez
Will there be microphones here? You ask me while poking your head into every corner of the room. Don’t worry, I say, my life goes on with my guts on display, letting it all hang out. There is no place dark, closed, private… because I live as if walking through a gigantic X-ray machine. Here is the clavicle I broke as a child, the fight we had yesterday over a domestic trifle, the yellowing letter I keep in the back of a drawer. Nothing saves us from scrutiny, my love, nothing saves us. But today — at least for a few hours — don’t think about the police on the other end of the phone, nor the rounded eye of the camera that captures us. Tonight we are going to believe that only we are curious about each other. Turn off the light and for a moment send them to the devil, disarm their eavesdropping strategies.

With so many resources spent on watching us, we have conjured away from them the primordial facet of our lives. They don’t know, for example, even a single word of that language made for twenty years together, that we can use without parting our lips. They would score a zero on any test to decipher the complex code with which we say the trivial or urgent, the everyday or the extraordinary. Surely none of the psychological profiles they’ve done on us tell how you comb my eyebrows and jokingly warn that I’m going to end up looking like Brezhnev. Our watchers, poor guys, have never read the first song you sang me, much less that poem where you said one day we would go to Sydney or Baghdad. Nor will they forgive us every time we escape from them — without a trace — on the diastole of a spasm.

Like Agent Wiesler in the film The Lives of Others, someone will listen to us now, and not understand us. Not understand why, after arguing for an hour, we come together and share a kiss. The astonished police who follow our steps can’t classify our embraces, and they wonder how dangerous to “national security” are those phrases you say only in my ear. So I propose, my love, that tonight we scandalize them or convert them. Let’s take the ear off the wall and in its place oblige them to scribble on a sheet: “1:30 am, the subjects are making love.”

Tuesday, March 6, 2012

Western Civilisation: Decline – or Fall?

Ctrl-Alt-Del

By Niall Ferguson
As a freshman historian at Oxford back in 1982, I was required to read Edward Gibbon's Decline and Fall of the Roman Empire. Ever since that first encounter with the greatest of all historians, I have pondered the question whether or not the modern West could succumb to degenerative tendencies similar to the ones described so vividly by Gibbon. My most recent book, Civilization: The West and the Rest attempts an answer to that question.
The good news is that I do not believe that Western civilization is in some kind of gradual, inexorable decline. In my view, civilizations do not rise, fall, and then gently decline, as inevitably and predictably as the four seasons or the seven ages of man. History is not one smooth, parabolic curve after another. The bad news is that its shape is more like an exponentially steepening slope that quite suddenly drops off like a cliff.

Broken Windows

The police and neighborhood safety
By GEORGE L. KELLING and JAMES Q. WILSON
In the mid-1970s The State of New Jersey announced a "Safe and Clean Neighborhoods Program," designed to improve the quality of community life in twenty-eight cities. As part of that program, the state provided money to help cities take police officers out of their patrol cars and assign them to walking beats. The governor and other state officials were enthusiastic about using foot patrol as a way of cutting crime, but many police chiefs were skeptical. Foot patrol, in their eyes, had been pretty much discredited. It reduced the mobility of the police, who thus had difficulty responding to citizen calls for service, and it weakened headquarters control over patrol officers.

The Educational Octopus

Doomed to Failure


Every politically controlled educational system will inculcate the doctrine of state supremacy sooner or later. . . . Once that doctrine has been accepted, it becomes an almost superhuman task to break the stranglehold of the political power over the life of the citizen. It has had his body, property and mind in its clutches from infancy. An octopus would sooner release its prey. A tax-supported, compulsory educational system is the complete model of the totalitarian state.   –    Isabel Paterson, The God of the Machine (1943)
by Mark J. Perry 
What would you conclude about the quality of product or service X under the following circumstances?
1. The employees of Airline X and their families are offered free airline tickets as an employee benefit. The employees refuse to travel with their families on Airline X and instead pay full fare on Airline Y when flying.
2. The employees of Automaker X are offered a company car at a substantial discount and they instead buy a car at full price from Automaker Y.
3. Employees at Health Clinic X and their families are offered medical care at no additional cost as a benefit and yet most employees of Clinic X pay out-of-pocket for medical services at Clinic Y.

The Way That History Went Down

Τhe origin of gross disparities is more mundane than we are led to believe
By Thomas Sowell
Different histories, geography, demography, and cultures have left various groups, races, nations, and civilizations with radically different abilities to create wealth.

In centuries past, the majority population of various cities in Eastern Europe consisted of people from Western Europe — Germans, Jews, and others — while the vast majority of the population in the surrounding countrysides were Slavs or other indigenous peoples of the region.

Just as Western Europe was — and is — more prosperous than Eastern Europe, so Western Europeans living in Eastern European cities in centuries past were more prosperous than the Slavs and others living in the countrysides, or even in the same cities.
One of the historic advantages of Western Europe was that the Romans conquered it in ancient times — a traumatic experience in itself, but one which left Western European languages with written versions, using letters created by the Romans. Eastern European languages developed written versions centuries later.

Literate people obviously have many advantages over people who are illiterate. Even after Eastern European languages became literate, it was a long time before they had such accumulations of valuable written knowledge as Western European languages had, due to Western European languages’ centuries earlier head start.


The genie is out of the bottle, and there is no getting it back

Walking through a moral minefield
The Abortion Act, intended as a humane response to hardship, has been subverted by changing times.
By Theodore Dalrymple
The discovery that sexually selected termination of pregnancy is available in Britain should surprise no one; and if we are surprised, it can only be because we have not been paying attention for the past 40 years. Sexually selected termination is, after all, the natural result and logical extension of the way the Abortion Act has been interpreted during all this time.
Several consultants and what I suppose we must now call their customers have been caught in flagrante committing an illegal act that most people will find thoroughly distasteful. No doubt the doctors involved will now find themselves in hot water, and the chairman of the Care Quality Commission, the Orwellianly named organisation in charge of supervising the compliance of abortion clinics with the law, has already resigned.

Why Men Don't Hug their Kids ?

Love is not dependent on hugging
After an emotionless John Prescott admits he never shows affection to his son... Why don’t men hug their kids?
By THEODORE DALRYMPLE
Well I never thought I should come to the defense of John Prescott but I am on his side when it comes to his failure to hug his son (as he revealed on Desert Island Discs) or tell him on air (during the Jeremy Vine show) that he loved him.
The very fact that he should have been asked to do so demonstrates how our increasing tendency to express emotion in public, both in word and deed, actually undermines our ability to distinguish genuine from bogus feeling. There is no reason to suppose that Lord Prescott is other than a loving father. He does not need to hug his son or tell him he loves him for his love to be evident, it is clear from his whole manner of treating and being with him, not from gestures such as hugs.

Hedgies Unlikely to Wear Greek Gifts

Ignore the pro-acceptance hype: Greece will have to apply CACs
By John Ward
When it comes to finance and dealing with the media, motive is everything. On the whole, the larger bondholders represented by the IIF’s Charles Dallara need the Greek restructure bailout to work. The Hedge Funds don’t. The larger banking institutions can try all they might to create some form of impetus towards acceptance, but this is not like a US election race where some folks want to be with the winner – and thus hype becomes a self-fulfilling prophecy: the media roll being attempted will roll off the backs of the Hedgies like water off a greased duck.

Yesterday we were fed release after release saying these folks have accepted and those folks are coming on board. But the feeling one gets at the end of most media reportage is one of cows voting for vegetarianism.


Erdogan's Annexation of Cyprus Threat

As Greeks set elections for April 29th
Wannabe EU member Turkey yesterday threatened to annex part of the EU…
One of either Manuelo Barroso or Lucas Papademos has allowed the date of the Greek election to leak following their meeting last Friday. It’s going to be April 29th. Whether this will make Berlin, the bondholders, Brussels or anything else beginning with B more or less happy is anyone’s guess. In the now pretty obvious countdown to default, EU reality is in another place never imagined by George Orwell. We have the eurozone spinners, for example, pushing a new oxymoron to explain their utter confusion and economic illiteracy: growth-friendly fiscal consolidation. About the kindest thing I can say about that phrase is that it sounds like something Hazel Blears might have said.

Democracy versus Liberty

When democracy trumps liberty, democracy can destroy itself
By Tibor R. Machan
Over the last several decades of American political life the idea of liberty has taken a back seat to that of democracy. Liberty involves human beings governing themselves, being sovereign citizens, while democracy is a method by which decisions are reached within groups. In a just society it is liberty that’s primary; the entire point of law is to secure liberty for everyone, to make sure that the rights of individuals, to their lives, liberty and pursuit of happiness, are protected from any human agent bent on violating them.
Democracy at its best is but a byproduct of liberty. Because we are all supposed to be free to govern ourselves, whenever some issue of public policy faces the citizenry, all entitled to take part. Democratic government rests, in a free society, on the right of every individual to take whatever actions are needed to influence public policy. Because freedom or liberty is primary, the scope of public policy and, thus, democracy in a just society is strictly limited. The reason is that free men and women may not be intruded on even if a majority of their fellows would decide to do so. If someone is a free, which means a self-governing, person, then even the majority of one’s fellows lack the authority to take over one’s governance without one’s consent. I cannot be otherwise unless there is prior agreement by all to accept such a process. The consent of the governed amounts to this and that is what the US Declaration of Independence means when it mentions that government derives its just powers from the consent of the governed.