Western Sharia

Integration Versus Accommodation

By Andrew C. McCarthy

Ismail Belghar, a 36-year-old Muslim man living in Australia, assaulted, abducted, and nearly killed his sister-in-law. The victim, a 25-year-old Moroccan named Canan Kokden, had dared to take her older sister, Mrs. B, to the beach without Belghar’s permission. This heinous effrontery was amplified, Belghar later recounted for police, when Mrs. B thereupon “displayed her body,” sustaining the shoulder sunburn that tipped him off.

To Australians, this may have been, well, just a day at the beach. For Belghar, though, it was an “abhorrent” offense against sharia, Islam’s legal code and comprehensive societal framework.

Cheap Natural Gas Heralds an Energy Revolution

The Economics of Natural Gas

By S. Fred Singer

All bets are off for the future of energy in the United States and, indeed, the world, as the price of natural gas plummets to ever-lower values—thanks to the development of technology that can access gas and liquids trapped in hitherto inaccessible shale rocks. In 2011, shale gas accounted for a quarter of U.S. natural gas production. But this seemingly bright future may depend on a court decision (expected in June 2012) and, of course, on the outcome of the November elections.

They are making up the “plan” as they go along

Germany Has Waved The White Flag And Will Allow Printing And Inflation to the very end

"A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools."

            - Douglas Adams, The Hitchhiker's Guide to the Galaxy

By John Mauldin

For quite some time I have been making the case that for the eurozone to survive, the European Central Bank would have to print more money than any of us can now imagine. That the sentiment among European leaders was that they were prepared for such a move was clear – except for Germany, which is haunted by fears of a return to the days of the Weimar Republic and hyperinflation.

When Germany agreed to a fixed monetary union and a European Central Bank, it was with the clear understanding that it would be run along the lines of the German central bank, the Bundesbank. The members of the Bundesbank and the German members of the ECB were most outspoken about the need for a conservative monetary policy that would keep a clamp on inflation.

Hollande's economic illiteracy

Democracy is the theory that the common people know what they want and deserve to get it good and hard

By Mark Hendrickson

The election of Socialist Party candidate Francois Hollande to the presidency of France epitomizes the sorry state of contemporary democracy. By that, I don’t mean to imply that the French people should have voted for the incumbent, Nicolas Sarkozy. Neither would be capable of solving France’s intractable problems in a way acceptable to French voters, nor are the problems with democracy unique to France. To varying degrees they exist throughout Europe as well as here in the United States.

The Europe Crisis from a European Perspective

Flawed from the Start

by Alasdair Macleod

When we talk about Europe today in an economic context, we really mean the Eurozone, whose seventeen members are the core of Europe and share a common currency, the euro. The euro first came into existence thirteen years ago, on January 1, 1999, replacing national currencies for eleven states; Greece joined two years later. In theory, the idea of a common currency for European nations with common borders is logical, and it was Canadian economist Robert Mundell's work on optimum currency areas that provided much of the theoretical cover.

However, the concept was flawed from the start.

Europe has bet the farm. Let’s Roll

Things that go Bump in the Night

by Mark Grant

Europe is heading for a showdown and in a number of places; that much can be acknowledged with certainty. The first, and perhaps the most important, is the stand-off between France and the European Commission. The EU budgetary office is demanding that France reduce its deficit to 3.00% for 2012 while the projection is for 4.50% so that the Commission is threatening France with large fines. 

Black Swans And Complexity

Nassim Taleb is wrong about the financial crisis and black swans

by Jim Lewis

The ongoing financial crisis is not the result of a perplexing phenomenon of complexity. It is the beginning of a train wreck we have seen for decades. We are not wandering into a surprise or horrified by the dark specter of a Black Swan rearing its long tailed head; this macro crisis appeared on the horizon long ago, easily calculated by any actuary armed with the knowledge that governments were not investing tax streams, but stealing them for current consumption.

Double or Nothing

How Wall Street is Destroying Itself

by John Azis

There’s nothing controversial about the claim— reported on by Slate, Bloomberg and Harvard Magazine — that in the last 20 years Wall Street has moved away from an investment-led model, to a gambling-led model.

This was exemplified by the failure of LTCM which blew up unsuccessfully making huge interest rate bets for tiny profits, or “picking up nickels in front of a streamroller”, and by Jon Corzine’s MF Global doing practically the same thing with European debt (while at the same time stealing from clients).

As Nassim Taleb described in The Black Swan these kinds of trades — betting large amounts for small frequent profits — is extremely fragile because eventually (and probably sooner in the real world than in a model) losses will happen (and of course if you are betting big, losses will be big). If you are running your business on the basis of leverage, this is especially dangerous, because facing a margin call or a downgrade you may be left in a fire sale to raise collateral.

"Peak oil" is "Peak idiocy"

200 Year Supply of Oil in Green River Formation

By Mark Perry

The Green River Formation, the world's largest oil shale deposit, is located in a largely vacant region of mostly federal land on the western edge of the Rocky Mountains that includes portions of Wyoming, Utah, and Colorado (see map above).

Here's an excerpt from testimony about the Green River Formation that was provided on Thursday by Anu K. Mittal, Government Accountability Office (GAO) Director of Natural Resources and Environment, to the House Subcommittee on Energy and Environment, Committee on Science, Space, and Technology titled "Unconventional Oil and Gas Production: Opportunities and Challenges of Oil Shale Development":

Hayek’s Tolerant and Pluralistic Liberal Vision

Disagreement is the basis of tolerance and progress

by Steven Horwitz

I write this on the 113th birthday of F. A. Hayek, perhaps the most important economist and social philosopher of the twentieth century. So much has been written about Hayek and his contributions that it is sometimes hard to find a point of entry to say something both new and valuable. But that challenge hasn’t stopped me for the last 25 years, and it’s not going to stop me now.

While much has been said about Hayek’s economics, political theory, and theory of knowledge, not nearly as much has been said about his broader vision of a liberal society. It’s one thing to talk of constitutions and spontaneous orders and the use of knowledge in society, but what is the vision behind it all? What kind of world is the liberal order, what Hayek called the “Great Society,” at the more personal level?

A global program of mass human sacrifice

The New Holocaust Deniers

By Robert Zubrin 

Recently, in conjunction with publication of my new book, Merchants of Despair ^[1], which exposes the crimes of the global Malthusian movement, I was interviewed on the radio by a liberal talk show host. When I brought up the issue of race- or caste-targeted forced sterilization programs instituted in Peru, India, and many other Third World countries with USAID and World Bank funds, the host chose to deal with the matter by pooh-poohing the existence of these atrocities.

Everything is up for grabs this November

The Antietam of the Culture War

by Patrick J. Buchanan   

It took Joe Biden’s public embrace of same-sex marriage to smoke him out.

But after Joe told David Gregory of “Meet the Press” he was “absolutely comfortable” with homosexuals marrying, Barack Obama could not maintain his credibility with the cultural elite if he stuck with the biblical view that God ordained marriage as solely between a man and woman. The biblical view had to go.

Creating Jobs versus Creating Value

Creating jobs is easy; it’s creating value that’s hard

By Steven Horwitz

Picking on New York Times columnist Paul Krugman is one of the largest participation sports on the Internet. And rightfully so, since he often says ridiculous things that demand a response from those who understand basic economics better than he does, despite his having won a Nobel Prize. His January 26 column, “Jobs, Jobs and Cars,” has him once again making such an argument. This time it’s on the subject of job creation.

The miracles of the Free Market

"Mr. Gorbachev, tear down this wall!"

East Germany - before and after.

The Keynesian Cure for Hunger

Eat More

By Richard W. Fulmer

Sylvia Nasar, author of the New York Times bestseller, A Beautiful Mind, has a new book: Grand Pursuit: The Story of Economic Genius, which reviews the lives and ideas of a dozen economists from Marx to Keynes and Hayek to India’s Amartya Sen. It begins with a description of life in Jane Austen’s England (1775–1817). Briefly, it was a Malthusian world in which any improvement in living standards was quickly followed by an increase in population that drove living standards back down to the subsistence level—a level at which nine-tenths of the population was constantly at risk of death from disease and starvation. Nasar assures us that as grim as this world was, life was far worse on the Continent.

Shock and Awe in Stockton

The town the housing boom broke

By Michelle Conlin and Jim Christie

For decades, Stockton, California suffered a civic inferiority complex. Los Angeles had celebrities and sunny beaches. San Francisco was awash in tech futurism and post-pubescent billionaires. Stockton was the polyester, buy-generic cousin, a dingy commercial hub for Central Valley farms that was just far enough from the San Francisco Bay area to be an irrelevance for the state's coastal elites.
But then came the housing boom, and sorry Stockton practically started to strut. Its loamy farmlands - among the most fertile in the United States - gave way to shiny subdivisions. Middle-class families, priced out of the Bay area housing market, snapped up the new homes, happily trading extreme commutes for the suburban niceties of four bedrooms and a yard.

Europe's Crisis

A Roadmap From the Past

Hayek and Röpke saw it all coming

By Peter B. Doran & P. Bracy Bersnak

These are rough days for the European Union (EU). What began as a sovereign debt crisis has now metastasized into a political debacle for the leaders left holding the bag. Nicolas Sarkozy's electoral defeat in France, the ouster of an austerity-minded government in Greece; and last month's collapse of the governing coalition in the Netherlands are all symptoms of a deeper problem for Europe: bloated governments are hard to tame, even when there is no money left to pay for them.

This is bad news for Europe. But the political tumult on the continent is also a stunning vindication of the post-War thinkers who anticipated this outcome. These individuals, men like Friedrich von Hayek and Wilhelm Röpke, would become founding intellectual fathers behind the modern conservative movement in Europe and the United States. Even today, their foresight provides a defining roadmap for navigating away from Europe's current crisis and offers a chilling warning to the United States about repeating the same mistakes.

Dream deterred

Α defense system that turns out to be a mirage

By Kennette Benedict 

The dream of a shield against nuclear bombs has been around since the earliest days of the nuclear age. The idea has always been deceptively simple: Build missiles that can shoot down nuclear-tipped intercontinental ballistic missiles as they come across the ocean from the Soviet Union toward the United States (or vice-versa). Although this would be the equivalent of trying to hit a bullet with a bullet or an arrow with an arrow, there have always been political and military leaders who feel sure it can be done. The most recent efforts began 27 years ago with the Strategic Defense Initiative of the Reagan administration -- and have been pursued by missile defense agencies ever since.

A Seedy Business

You have to feed the government pig first

By Joseph Salerno

A Brooklyn bagel shop owner was assessed  $1, 650 in fines by a New York City Health Inspector because–get ready for this–poppy and sesame seeds fall to the floor as he makes his bagels.  Alex Gormakh, the owner and a recent immigrant from Russia, opened  B & B Empire Bagel Cafe in June 2011.  Gormakh’s deli passed inspections both before and after he was cited for violations in October, and in the most recent inspection it received the highest cleanliness grade of “A.”   Nevertheless, his appeal of the fine has been denied at two separate hearings.   As a fellow Brooklyn bagel shop owner, whose establishment did pass inspection, points out, no matter how many times a day you sweep there will always be an accumulation of seeds on the floor.  To avoid future citations, Gormakh and his son have now invested almost $900,000 in larger stainless steel preparation tables in the hope of avoiding seed fall out and a water-filter vacuum to suck up any wayward seeds.

But Gormakh has learned a valuable lesson in doing business in the American mixed economy:  

“If you want to work you have to pay.  In Russia, they call it corruption.  Here they call it something else.  Either way, you have to pay.”

The petty politics of the anti-inequality brigade

False premises and radical politics

by Daniel Ben-Ami 

It is easy to make the mistake of assuming there is a big drive towards equality in the world today. Politicians, pundits and even billionaire financiers rail against the dangers of inequality, excess and greed. A handful of Occupy protesters claiming to represent the ‘99 per cent’ against the super-rich ‘one per cent’ are widely lauded in influential circles. Parallel campaigns slate the wealthy for failing to pay their fair share of tax. Officially sanctioned campaigns promote fairness, social justice, social equality, equal access to education and the like.