Friday, February 3, 2012

The Cradle of Civilization is rocking amid an array of winds and storms

A History Lesson In Crisis

by Tyler Durden
With the world ever more lethargic daily, as if in silent expectation of something big about to happen (quite visible in daily trading volumes), it is easy to forget that just about a year ago the Mediterranean region was rife with violent revolutions in virtually every country along the North African coast. That these have passed their acute phase does not mean that anything has been resolved. And unfortunately, as BMO's Don Coxe reminds us, it is very likely that the Mediterranean region, flanked on one side by the broke European countries of Greece, Italy, Spain (and implicitly Portugal), and on the other by the unstable powder keg of post-revolutionary Libya and Egypt, will likely become quite active yet again. Only this time, in addition to social and economic upheavals, a religious flavor may also be added to the mix. As Coxe says: "Today, the Mediterranean is two civilizations in simultaneous, rapidly unfolding crises.
To date, those crises have been largely unrelated.

A republic, if you can keep it

The Revolution of 1913
Readers will scarcely have given any thought to the fact that they have never lived in the system of government argued for by Madison, Jay, and Hamilton in the Federalist Papers.
“It may come as a shock …” wrote John Flynn, “to be told that [you] have never experienced that kind of society which [our] ancestors knew as the American Republic …” Flynn, the editor of the popular weekly the Saturday Evening Post, had already come to this conclusion in 1955. In his book The Decline of the American Republic, Flynn observed that Americans needlessly “live in the war-torn, debt-ridden, tax-harried wreckage of a once imposing edif ice of the free society which arose out of the American Revolution on the foundation of the U.S. Constitution.”
An empire needs a source of income sufficient to fund its military campaigns, regulatory regimes, and domestic schemes. It also needs a strong central authority to direct its ambitious new programs. In one short 12-month span, a year the writer Frank Chodorov calls the “Revolution of 1913,” the empire got the tools it needed. That year—the same year European countries abandoned the gold standard in preparation for World
War I—the old Republic ceased to exist.
WHERE THE MONEY COMES FROM

Thursday, February 2, 2012

A lynch mob with PhDs

Banker-bashers
 The mad political pursuit of ‘evil’ Fred Goodwin confirms that bankers are to posh commentators what paedos are to tabloid hacks.
By Brendan O’Neill 
The mad pursuit of Fred Goodwin and his ill-gotten knighthood confirms that bankers are the new paedophiles. Bank bosses are to posh commentators what paedos were to hacks at the News of the World - wicked creatures one can rail against in order to feel puffed-up and Good. Yes, the broadsheet bruisers and opportunistic politicians calling for Fred the Shred’s scalp might not use foul phrases like ‘kiddie fiddler’ and they might pepper their output with serious-looking graphs and pie charts, but don’t be fooled - behind the erudite veneer there lurks the old tabloid desire to project society’s sins on to one moral misfit and cast him out of decent society.

Dumb as a rock

19 Crazy Things That School Children Are Being Arrested For In America
With each passing year, the difference between America's prisons and America's public schools becomes smaller and smaller.  As you read the rest of this article, you will be absolutely amazed at some of the crazy things that school children in America are being arrested for.  When I was growing up, I don't remember a single police officer ever coming to my school.  Discipline was always handled by the teachers and by the principals.  But today, there are schools all over the country that have police officers permanently stationed in the halls.  Many other schools will call out police officers at the drop of a hat.  In the classrooms of America today, if you burp in class, if you spray yourself with perfume or if you doodle on your desk, there is a chance that you will be arrested by the police and hauled out

The Problem with Privatization

It's about competition
By Steven Horwitz
Classical liberals commonly favor “privatization” of many government activities.  Their case, of course, is that the private sector would provide goods and services at lower cost and of higher quality than government can.  Since classical liberals are right about this, why do I think there’s a problem with privatization?
The answer is that the call for privatization does not get at the real reason the private sector works better than the political sector.  The great advantage of the private sector is not private ownership per se but that private owners compete with one another.  Classical liberals would do better to contrast not the “private” and “public” sectors, but the “competitive” and “monopolistic” sectors.  If the goal is efficiency in delivering the goods, private ownership is a necessary but not a sufficient condition.  Instead of calling for the “privatization” of government services, classical liberals should be calling for “de-monopolization.”
Private Monopoly

The Breakdown of the Kremlin Clans

Russia's Shifting Political Landscape 
One of the issues causing -- and prolonging -- Russia's current political instability is the complete breakdown of the Kremlin's power clans.
By Stratfor 
When Prime Minister Vladimir Putin came to power in 1999, he began creating a complex organization comprising many ambitious and powerful people to help him rule the country. Putin understood that he would need a mix of people who could handle Russia's need for tight security and control in the short term but strategize for a more modern and liberal economy in the future -- seemingly conflicting aims, but Putin saw both as necessary to address the problems facing the country.
Though there are countless small groups and loyalties among those in the Kremlin, Putin's system can be divided essentially into two clans -- the siloviki and the civiliki. Two very ambitious (and at times ruthless) men ran these clans: Deputy Prime Minister Igor Sechin,

The German Dilemma

Germany's Role in Europe and the European Debt Crisis
By George Friedman
The German government proposed last week that a European commissioner be appointed to supplant the Greek government. While phrasing the German proposal this way might seem extreme, it is not unreasonable. Under the German proposal, this commissioner would hold power over the Greek national budget and taxation. Since the European Central Bank already controls the Greek currency, the euro, this would effectively transfer control of the Greek government to the European Union, since whoever controls a country's government expenditures, tax rates and monetary policy effectively controls that country. The German proposal therefore would suspend Greek sovereignty and the democratic process as the price of financial aid to Greece.

Strange things are happening on the Nile ...

Egypt caught in spiral of disaster
 title
By Victor Kotsev 

Many things that are hard to believe - or explain - happen in Egypt; unfortunately, it all looks more like a spiraling nightmare than a fairy tale in the last year or so. The latest violence on Wednesday, which resulted in at least 74 dead and over 1,000 wounded, and which The New York Times described as "the deadliest soccer riot anywhere in more than 15 years", is a fitting example of that. 

The calamity came in the wake of another large brawl on Tuesday, between members of the secular opposition and Muslim Brotherhood supporters who reportedly attempted to block their march against the military government of the Supreme Council of the Armed Forces. Over 70 people were wounded in the clashes. [1] 


The social and political foundations of culture

The Politics of Johann Wolfgang Goethe
by Hans-Hermann Hoppe
This year marks the 250th birthday of Johann Wolfgang von Goethe. Most Europeans know that he was the greatest of all German writers and poets and one of the giants of world literature. Less well known is that he was also a thorough-going classical liberal, arguing that free trade and free cultural exchange are the keys to authentic national welfare and peaceful international integration. He also argued and fought against the expansion, centralization, and unification of government on grounds that these trends can only hinder prosperity and true cultural development. Because of his relevance to the ongoing construction of Europe, I'd like to nominate Goethe as the European of the millennium.
Born in 1749 in the free imperial city of Frankfurt am Main into an upper-middle-class family, Goethe studied law in Leipzig and Strasbourg. However, on receiving his doctorate and practicing briefly as a lawyer, he set out on a spectacularly successful career as poet, dramatist, novelist, lyricist, artist, and critic of architecture, art, literature, and music. He was also a natural scientist and a student of anatomy, botany, morphology, and optics.

Wednesday, February 1, 2012

Where does credit go when it dies?

Life – and Death Proposition
​                             Where do we go when we die?
                            We go back to where we came from
                            And where was that?
                            I don’t know, I can’t remember
                                                        - Virginia Woolf, “The Hours”
By William H. Gross
I don’t remember much of this life, and like Virginia Woolf, nothing of the herebefore. How then, could I expect to know of the hereafter? I know at least that we all exist at and of the moment and that we make up those moments as we go along. I became a grandfather for the first time a few months ago and proud son Jeff asked for some fatherly advice as to how to go about raising his baby daughter Caroline. “We all do it in our own way, Jeff, you’ll make it up as you go along,” I said. Parenting, and life itself, is one giant experiment. From those first infant steps, to adolescent peer testing, flying from and departing the parental nest, gene replication and family building of our own, maturity and acquiescence, aging, decay and inevitable death – we experiment as best we can and make it up as we go along. 

The moral disorientation of Western secular culture

How atheism became a religion in all but name
It was only a matter of time before someone proposed an ‘atheist temple’, given the religious-like zealotry and dogma of the New Atheists.
by Frank Furedi 
There was a time when it was very dangerous not to believe in God. In ancient Athens, Socrates was hounded and eventually executed for questioning the city-state’s gods. Throughout most of history, to be ‘godless’ was considered a form of moral decadence deserving punishment. In the seventeenth century, even John Locke, the great liberal philosopher who promoted the idea of religious toleration, regarded atheism as intolerable. He said atheists should not be tolerated because ‘promises, covenants, and oaths, which are the bonds of human society, can have no hold upon an atheist’.

Last Exit Gutenberg

$5 Trillion and Change
1cboscore
Obama's four years have seen the four highest deficits since 1946.
The political strategy behind Obamanomics was always simple: Call for "stimulus" to rescue the economy, run up the debt with the biggest spending blitz in 60 years, and then when the deficit explodes call for higher taxes. The Congressional Budget Office annual review released yesterday shows this is all on track.

Big Brother Loves You!

The debasement of paper money certainly continues
“All within the state, nothing outside the state, nothing against the state.”                                          - Benito Mussolini
by DETLEV SCHLICHTER
Those who have eyes to see and ears to hear will have noticed the accelerating trend towards interventionist policies and assertive state action all around us. This is not a conspiracy theory circulating on the internet. It is a phenomenon that is now so blatantly obvious that it makes the headlines in the highbrow pro-establishment media: The Economist and the Financial Times are talking openly about the trend towards “repression” and “national capitalism” as if it was simply the latest fashion in crisis management. A century ago, Randolph Bourne pointed out that “war is the health of the state”. It turns out that so is economic crisis.
Politicians, bureaucrats and many of their claqueurs in the media have drawn conclusions that are conveniently in their own interests: to them the crisis is evidence that things cannot be left to the markets, to consumers, to greedy bankers, and the spontaneous interaction of the public. If the state does not regulate and control everything, chaos ensues. We need more government. More control. More regulation. More oversight.  Politicians and bureaucrats need more power.

F - for Fake

Counterfeit Money, Counterfeit Policy
By CHARLES HUGH SMITH
What is the difference between printing money and counterfeiting? There is none.
Counterfeiting is illegal because it is the false creation of value. The counterfeiter takes low-value paper and turns it into high-value money, which is fundamentally a claim on the real productive value of the economy that issues the currency and recognizes it as a proxy means of exchanging that productive value.
Counterfeiting is illegal because the counterfeiter creates no additional value--he creates only the proxy for value. Creating real value--adding meaningful goods or services to the economy--is tedious, hard work. How much easier to simply transform near-worthless paper into a claim on actual goods and services.

Greek Exhaustion Syndrome

A view from the top
By John Mauldin
One of my very good friends had a small private dinner this week with the chairman of a major German bank, who remarked, with a sense of gallows humor, that he thought he could get his fellow German banks to chip in enough money to give to Greece to just make them go away. They really have Greek Exhaustion Syndrome.
He also thought Portugal would eventually would have to leave, and said he thought he would take a haircut on Irish debt. Italy and Spain will somehow make it. At least that is the view from the top of the German bank pyramid.
Portuguese interest rates are soaring. Without life support from Europe, they cannot keep up their borrowing at rates that will allow them to recover. While they are gamely trying to reduce their deficit, austerity is reducing their GDP and thus their tax revenues. They will have no choice but to default at some point.

Τhe Parable of the Talents

The Transformation of Banking
"With a healthy economic foundation, society should be getting get wealthier and wealthier at a pace that exceeds even that of the Gilded Age, when 10% and 15% growth was common and the human population began to thrive as never before"
There is a scene in the Parable of the Talents in which the returned master berates the shabbiest of his three servants. Discovering that he had buried his seed capital in the ground, the master says: “You should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest.” The servant is then thrown outside “into the darkness,” where he faces “weeping and gnashing of teeth.”
In today’s world, burying that money might have been the better idea. Otherwise, the servant would have paid fees for depositing, withdrawing and transferring and would have earned no interest at all, and the money would have depreciated in value the whole while. It’s enough to cause you to weep and gnash your teeth.

Tuesday, January 31, 2012

A Quote for every Day

Public schooling and its discontent 
In our time, the curse is monetary illiteracy, just as inability to read plain print was the curse of earlier centuries.
      - Ezra Pound (1885-1972) American poet, critic & intellectual.

The Crisis of the American Dream

Beyond Blue 

by WALTER RUSSELL MEAD

The frustration and bitterness that fills American politics these days reflects the failure of our current social, political and economic institutions and practices to deliver the results that Americans want and expect. It’s comparable to the frustration and fear that swept through the country in the late 19th and early 20th century as the first American dream – that every family could prosper on its own farm – gradually died.
From the era of the first European settlements in North America up through World War I, the family farm was the key social, economic and even political institution in the country.  Until the 1920 census, a majority of Americans lived in rural areas and, unlike the oppressed peasants of Europe most owned and worked their own land.
The individual family farm was, in mythology and often enough in reality, prosperous and independent.  For Thomas Jefferson and a long line of ideological descendants, the family farm was the cornerstone of American democracy.  For generations, government policy sought to ease the path to cheap and — after the Homestead Act — free western land for American families.
The limits of this approach did not begin to appear until after the Civil War. As the best land was taken, the remaining land available for homesteading was increasingly marginal.  It was too cold, too dry or too remote.  The dependence of farmers on politically powerful railroad companies to ship their crops to market and the power of banks and speculators in the commodity markets put family farms at a disadvantage. The global commodity glut that developed as new techniques opened up new land not only in the American west, but also in Russia, Canada, Argentina and Australia depressed the prices farmers could get.
The last great burst of traditional American farm policy came with the Oklahoma land rush of 1889.  The federal government opened former tribal lands for homesteading, and thousands of families rushed to stake their claims on new land. Many of these families would be among the dispossessed “Okies” who fled the Dust Bowl a generation later.
The family farm and the social and political model that rested on it didn’t die easy and it didn’t die quick.  (Even today huge agribusinesses shelter their vast subsidy payments behind the public affection for the family farm.) Waves of populist protest against the decline of the original American social model roiled politics for decades. William Jennings Bryan built his political career on the economic and political frustration of millions of small farmers caught up in an inexorable and, to many, incomprehensible set of economic changes.
I’ve written in earlier posts about the shift from the first American Dream to the second: from the family farm to the suburban “homestead.” It was a profound change in American life and culture that has not yet been fully explored.  The family farm integrated production and consumption, work and leisure, family and business.  The family wasn’t just a union of sentiment: it was an element of production.  Mom and Dad worked as a team to feed, house and clothe the family, and as the kids grew up they took on greater and greater responsibilities in the common effort.  Their lives at home prepared them for the new lives they would lead on their own: the kids would grow up, marry, and start farms.
The 20th century suburban homestead was a very different place.  In the early, “pure” form, Mom and Dad were still a team, but their roles were more differentiated than on the farm.  Dad worked in the office or the factory and brought home the money; Mom organized the home and raised the kids.  The kids might do chores around the house (girls more than boys), but their lives were increasingly outside of the family circle.  They went to school full time from the age of six on, and instead of learning basic work and social skills in the family with their parents, they were taught skills and patterns of living in school to prepare them, in turn, for lives in which working life and home life were divided.
After the 1960s, Mom started working in a factory, an office or a store, and for girls as well as boys the center of gravity of their educational and social life moved away from the family circle.
Both the family farm and the “crabgrass frontier” (as Kenneth Jackson calls 20th century suburban America in a remarkable book) had their advantages and their drawbacks, and both allowed for broad prosperity and reasonable dignity and economic security for tens of millions of Americans. Generation after generation embraced both social ideals while millions of people from all over the world came to the United States, hoping to share in the American Dream.
Today the 20th century model of the American dream faces the same kind of crisis the 19th century version experienced 100 years ago.  International competition and technological advances mean that the American factory worker’s earnings and opportunities are depressed in the way farmers were going to the wall 100 years ago.  In the last twenty years, well-intentioned government efforts to put more people in owner-occupied housing led to a housing bubble and mass bankruptcies in the face of a financial panic and the ensuing recession, the worst in eighty years.
Our political battles today reflect the same kinds of frustrations we saw in the old populist era.  Many cannot fathom another and “higher” form of the American Dream beyond the old crabgrass utopia. They want to turn back the clock and restore the old system because they don’t know of anything else that will work.  The explicit political demand for this kind of restoration is usually found on the left, where it is often coupled with demands for the protection of American industries from foreign competition.  But nostalgia for the old days isn’t just a left wing emotion; a free floating anger stemming from the breakdown of a broadly accepted social model helps power political currents on both ends of the spectrum.
In the 1890s, the “restorationists” were the agrarian populists.  They wanted to protect family farmers from the forces that were undermining this hallowed way of life and they genuinely could not imagine that the end result of the shift out of agriculture could lead to richer and better lives for most Americans.  This was perfectly understandable and rational: few people in 1890 could have predicted or imagined the new social system that would emerge on the basis of mass production and mass consumption in the 20th century.

Substituting Coercion for Voluntary Action

The Concept of a Perfect System of Government
by Ludwig von Mises
The "social engineer" is the reformer who is prepared to "liquidate" all those who do not fit into his plan for the arrangement of human affairs. Yet historians and sometimes even victims whom he puts to death are not averse to finding some extenuating circumstances for his massacres or planned massacres by pointing out that he was ultimately motivated by a noble ambition: he wanted to establish the perfect state of mankind. They assign to him a place in the long line of the designers of utopian schemes.

The 400 pound gorilla in the US economic living room

Obama And The Commanding Heights
By Joseph Y. Calhoun
We gather tonight knowing that this generation of heroes has made the United States safer and more respected around the world.  (Applause.)  For the first time in nine years, there are no Americans fighting in Iraq.  (Applause.)  For the first time in two decades, Osama bin Laden is not a threat to this country.  (Applause.)  Most of al Qaeda’s top lieutenants have been defeated.  The Taliban’s momentum has been broken, and some troops in Afghanistan have begun to come home.