The post-American world is being born

The Abhorrent Vacuum

By mark steyn

In the breast of the Western media, hopes of Arab Spring spring eternal. First we were told the Muslim Brotherhood would contest only a third of the seats in the Egyptian parliament, just to ensure they had some representation in the legislature among all those students, women, and Copts. Then we were told it would be half the seats, but don't worry, they had no plans to contest the presidency. Next we were told they were taking a run at the presidency, but most unlikely to win compared with all those far more appealing time-serving hacks from transnationalist bureaucracies like the Arab League and the International Atomic Energy Agency who were itching to jump in the race. And finally, after the Brothers took the presidency and swept the parliament, we were assured that they could govern only in a finely calibrated balance of power with the secularist military.

Great Moments in Government Regulation

Massage a Horse in Nebraska, Go to Jail for Up to 20 Years

By Institute for Justice editors

Massage a horse, go to jail.

That’s the absurd fate Karen Hough could face if she wants to continue her business in Nebraska. A certified instructor, Karen has been massaging horses for years. Massaging a horse is believed to deliver many health benefits, including relieving tension, improving circulation, and alleviating muscle fatigue.

Earlier this year, she applied for a license in equine massage but was told only veterinarians can become licensed. A 2007 memo from Nebraska’s Board of Veterinary Medicine and Surgery asserted that “no health professional other than licensed veterinarians and licensed veterinary technicians may perform services/therapies on animals.” This means Karen would need to spend thousands of dollars and seven years of her life just to acquire a government permission slip to do what she’s been doing for years.

A few weeks later, she received a letter from Nebraska’s Department of Health and Human Services ordering her to “cease and desist” from the “unlicensed practice of veterinary medicine.” In Nebraska, continuing to operate a business without a license after getting a cease and desist letter is a Class III felony. So Karen could face up to 20 years in prison and pay a $25,000 fine. By comparison, that’s the same penalty for manslaughter in the Cornhusker State.

Blaze wakes Pakistan to industrial realities

Another dystopia going down the drain

By Syed Fazl-e-Haider

KARACHI - The deaths of 289 people in a fire at a garments factory on September 11 in Pakistan's southern port city of Karachi is the country's worst industrial disaster and biggest human tragedy in the country's industrial hub. (blaze-hit-karachi-garment)

On the same day, at least 25 people lost their lives in a similar fire at a shoe-making factory in Lahore, in Punjab province. The two fires laid open in brutal fashion the extent of violations of Pakistan's Factory Act 1934 and the country's inadequate labor laws, rampant corruption, and criminal negligence regarding safety standards and monitoring authorities. 

Not least, the incidents expose the racket of official regulation and inspection under which the number of illegal industrial units in Karachi has grown. Factories with no proper fire-fighting arrangements and safety equipment and non-implementation of safety standards have become killing chambers for workers and money-making machines for owners who pay kickbacks to corrupt authorities responsible for monitoring factory safety. 

Brother Obama, where art thou?

"Liberated" Libya is now warlord country

by Pepe Escobar

MENA (Middle East/North Africa) is on fire. The diffuse rage - even if manifested by a tiny minority - is distinctly anti-American. Protests in Cairo have reached Sanaa in Yemen and even Bangladesh. The administration of US President Barack Obama is perplexed beyond belief. There will be revenge. What's really going on? 

It does not matter whether that infamous, crude, made-in-California anti-Islam and anti-Prophet Muhammad flick - actually financed/produced by an Egyptian Christian Copt and American protestants, instead of a non-existent Jewish real-estate developer - was just a pretext that led to the killing of the US ambassador in Benghazi and the protests in Cairo and beyond. Let's try to identify the consequences. 

The militia ballet
The strategic target of the Salafi-jihadis who killed the US ambassador in Benghazi was to torpedo the (already shaky) Obama-Muslim Brotherhood alliance. 

Imagine if that had happened in Syria - or with a visiting US diplomat to Iran, for example; Pentagon-based revenge already would be in effect. US consulates were never attacked when Colonel Muammar Gaddafi was in power in Libya; it happened under the watch of a "NATO rebel" regime fully sponsored by Washington. 

Libya is now a militia hell - from neighborhood-watch outfits to mini-armies. They won't disarm. They refuse to be part of government security forces because their logic is tribal. They're fighting one another. No weak central government in car-bomb-infested Tripoli will rein them in. 

Sweden: Conservatopia

The surprising ingredients of Swedish success – free markets and social cohesion

The provocative Executive Summary of a paper by Nima Sanandaji, who according to his bio is a Swedish author “with a Kurdish Iranian background.”

The surprising ingredients of Swedish success – free markets and social cohesion:

• Sweden did not become wealthy through social democracy, big government and a large welfare state. It developed economically by adopting free-market policies in the late 19th
century and early 20th century. It also benefited from positive cultural norms, including a strong work ethic and high levels of trust.

• As late as 1950, Swedish tax revenues were still only around 21 per cent of GDP. The policy shift towards a big state and higher taxes occurred mainly during the next thirty
years, as taxes increased by almost one per cent of GDP annually.

• The rapid growth of the state in the late 1960s and 1970s led to a large decline in Sweden’s relative economic performance. In 1975, Sweden was the 4th richest industrialised country in terms of GDP per head. By 1993, it had fallen to 14th.

• Big government had a devastating impact on Intrepreneurship. After 1970, the establishment of new firms dropped significantly. Among the 100 firms with the highest
revenues in Sweden in 2004, only two were entrepreneurial Swedish firms founded after 1970, compared with 21 founded before 1913.

Marx, Lenin and Hoover

Two thinkers offer their perspectives on what’s wrong around the world

By Evan Simonoff        

When a California bond trading magician and a conservative Texas financial writer open general sessions at a financial conference by quoting Lenin and Marx, one might presume something is rotten in more places than the state of Denmark, where one-year government bonds recently boasted negative yields. But they are exactly whom online newsletter editor John Mauldin and DoubleLine Capital CEO Jeffrey Gundlach quoted at the third annual Innovative Alternative Strategies conference in Denver in late July.

Both of these two serious thinkers addressed a series of issues that have come to dominate the national dialogue, offering different perspectives on what is emerging as a general consensus that something is profoundly wrong. For starters, the average American male has seen his real income decline since 1973.

Though Marx died in 1883, he lived long enough to grow displeased with how many were interpreting his ideas. Explaining how frequently human events can turn in a direction very few expect, Gundlach quickly moved on to another discredited economic practitioner, Herbert Hoover. In his memoirs, the former president described the world’s shock at the outbreak of World War I. After 50 years of peace, the “evil spirits” that erupted in 1914 caught many sophisticated observers, Hoover included, off guard.

Ben Bernanke As a Child Preparing for His Future Role as Fed Chair

Qe Forever

Harmless as an enemy and treacherous as a friend

An act of war or a movie protest

By MARK STEYN

So, on a highly symbolic date, mobs storm American diplomatic facilities and drag the corpse of a U.S. ambassador through the streets. Then the president flies to Vegas for a fundraiser. No, no, a novelist would say; that's too pat, too neat in its symbolic contrast. Make it Cleveland, or Des Moines.

The president is surrounded by delirious fanbois and fangurls screaming "We love you," too drunk on his celebrity to understand that this is the first photo-op in the aftermath of a national humiliation. No, no, a filmmaker would say; too crass, too blunt. Make them sober, middle-aged Midwesterners, shocked at first, but then quiet and respectful.

The president is too lazy and cocksure to have learned any prepared remarks or mastered the appropriate tone, notwithstanding that a government that spends more money than any government in the history of the planet has ever spent can surely provide him with both a speechwriting team and a quiet corner on his private wide-bodied jet to consider what might be fitting for the occasion. So instead he sloughs off the words, bloodless and unfelt: "And obviously our hearts are broken..." Yeah, it's totally obvious.

The irony is clear

Weeks before U.S. election, Mideast gives Obama perfect storm

By Peter Apps and Matt Spetalnick

An eruption of violent unrest across the Middle East is confronting President Barack Obama with the most serious challenge yet to his efforts to keep the Arab Spring from morphing into a new wave of anti-Americanism - and he has few good options to prevent it.

Less than two months before the U.S. presidential election, a spate of attacks on embassies in Libya, Egypt and Yemen poses a huge dilemma for a U.S. leader who took office promising a "new beginning" with the Muslim world but has struggled to manage the transformation that has swept away many of the region's long-ruling dictators.

On top of that, even as he tries to fend off foreign policy criticism from Republican rival Mitt Romney, Obama is grappling with an escalating crisis in U.S.-Israeli relations over Iran's nuclear program and increased bloodshed in Syria, where President Bashar al-Assad has defied international calls to step aside.

Obama's Middle East woes deepened this week with a series of mob attacks on U.S. diplomatic compounds and the killing of America's ambassador to Libya. Demonstrators were incensed by a U.S.-made film they consider blasphemous to Islam.

Kicked in the teeth

Voting Is A Sap's Game

by James E. Miller

With the U.S. presidential election right around the corner, Americans are getting themselves all in a tizzy to go to the voting booth and remind the holders of public office who they work for.  Because it’s a presidential election, the stakes are looked to as even higher as the media paints the contest between Barack Obama and Mitt Romney as a conflict with extreme consequence.  The statist tramps known as mainstream journalists are championing the race as a great ideological battle.  The fact that the candidates differ little on policy and vision is purposefully avoided.  To the political and intellectual establishment, the show must go on.  Their way of life depends on it.

Already in both the Republican National Convention and Democratic National Convention the party elites took the opportunity to trample on the democratic virtue of dissent.  On the Republican side, Ron Paul supporters were effectively told to get lost as party leaders rammed through a rule change to make it next to impossible to nominate a pure grassroots candidate.  The Democrats, per usual, were no better.  When it came time to vote on whether the party platform should contain language on God and ensuring Jerusalem remains the capital of Israel, the voice vote was disregarded and the language was kept.  And as a Fox News showed, the decision was predetermined by the teleprompter.  In one fell swoop, both of America’s major political parties demonstrated that their own members can’t be trusted.  The irony is that this practice of top-down dictation is wholly reflective of the reality of governance.

"Obama's Middle East Policy Is in Ruins"

Germany Opines on the obvious

Since the US media appears to have little if anything to say on the topic of the global anti-Pax Americana insurrection that does not devolve purely along pre-election party lines, here is what Germany thinks.

From Spiegel

US embassies in the Muslim world were on high alert Friday following days of violent protests against an anti-Islam film. Germany, too, closed several embassies in fear of attacks. Some German commentators argue that the violence shows that Obama's Middle East policies have failed.

After days of protests over an anti-Islam film, American diplomatic missions in the Middle East and North Africa were braced for further violence after Friday prayers. The US put its overseas missions on high alert.

Germany has closed its embassies in a number of Muslim-majority countries in fear of attacks. "We are observing how the security situation develops with great attentiveness and we have increased security precautions at a number of foreign missions," a spokesman for the German Foreign Office told SPIEGEL ONLINE. Embassies in North Africa, Afghanistan and Pakistan are believed to be among those affected.

The spokesman said that the missions would only close on Friday, though. Other German institutions such as aid organizations have also been urged to increase security precautions, he said.

The Restaurant At The End Of Europe

The hoot and the holler resounding from Vienna to Amsterdam

By Mark J. Grant
This is the name of the restaurant at the end of Europe; the Palace of the Wizard. This is where I sit and watch the long story unfold until the day when the folding stops and the fabric tears. After almost forty years on Wall Street I understand both the joke and the punchline and you cannot pay off old debt with vastly greater amounts of new debt without consequences and, I assure you, there will be consequences. This paradigm does not work for a corporation or a sovereign nation and the borrower is eventually brought to his knees by the sheer weight of the debt that he has laden upon his back. The interest rate paid is only part of the equation with the rest being the absolute size of what is undertaken.

Germany, with a GDP of $3.55 trillion cannot hope, in any terms, to support a European construct that is over $15.2 trillion without the hammer of fiscal reality at some point whacking her backside with a very loud bang. The remaining economically sound nations of the Netherlands, Austria, and Finland also do not have the capacity or the desire, according to the Prime Minister of the Netherlands and the Finance Minister of Austria, to support the rest of the Continent that is sliding into the pit of fiscal morass. “No more money for other nations” is the hoot and the holler resounding from Vienna to Amsterdam. 

Time To Come Home?

If Mideast governments can't keep our diplomats safe, we should bring them back

By PATRICK J. BUCHANAN

Is it not long past time to do a cost-benefit analysis of our involvement in the Middle and Near East?

In this brief century alone, we have fought the two longest wars in our history there, put our full moral authority behind an ”Arab Spring” that brought down allies in Tunisia, Egypt and Yemen, and provided the air power that saved Benghazi and brought down
Moammar Gadhafi.

Yet this week U.S. embassies were under siege in Tunisia, Egypt and Yemen, and U.S. diplomats were massacred in Benghazi.

The cost of our two wars is 6,500 dead, 40,000 wounded and $2 trillion piled onto a national debt that is $16 trillion, larger than the entire U.S. economy. And what in heaven’s name do we have to show for it?

We face pandemic hatred of our country from Morocco to Pakistan. The sight of American flags being ripped to shreds and burned by mobs has become so common over there we seem almost to have gotten used to it.

Psychoanalyzing The Fed

The psychology of diminishing political and financial returns of Fed promises

by Charles Hugh Smith 

Rather than regurgitate the usual economic analysis of the Fed's policies, let's hazard a psychoanalysis of the Fed. Given the primacy of psychological factors in human behavior, it is astonishing how little attention is paid to the psychology of the Fed's statements and policies.

Zero Hedge offered just such a psychological insight (with a deliciously Freudian twist) with this question: Does the Fed need to re-instill some discipline in order to regain its omnipotence? Why (For The Fed) It Is All In The Foreplay

Exactly. Subservience is a slippery slope, and if the Fed "caves in" to market demands for a massive QE campaign, then where is the Fed's vaunted autonomy? It's gone. So what happens in a few months when the market is once again in danger of rolling over? Will the Fed cave in again and issue more QE? If it doesn't, the market reaction will be violently negative, and the Fed will get blamed for the catastrophic decline.

You see the positive feedback loop of Fed subservience: the longer the Fed puts off regaining autonomy, the more disruptive their refusal to obey the market will be.

The more they appear to meekly comply to the demands of the market, the greater the pressure will be on them to continue giving the market what it now needs to continue rising: QE.

The only psychologically wise choice is to nip Fed subservience to the market in the bud before it becomes even more destabilizing.

The Fed's 'Monetary Morphine'

A different kind of inflation problem

By George F. Will

Fortunately, not everything is up to date in Kansas City. Esther George, president of the regional Federal Reserve Bank here, is refreshingly retrograde regarding what less circumspect people welcome as the modernizing of the nation’s central bank into a central economic planner. She has concerns, both prudential and philosophical, about the transformation of the Fed in ways that erase the distinction between monetary policy, which is the Fed’s proper business, and fiscal policy, which is inherently political.

The basic interest rate — i.e., the federal funds rate minus the inflation rate — was negative during about 40 percent of the disastrous 1970s and the 2000s, which ended disastrously. Because today’s rate is negative, the Fed’s stimulus repertoire is reduced to “quantitative easing.” That phrase, which is how government speaks when trying not to be understood, means printing money. Except printing is so 20th century. Nowadays, the Fed gives banks digital transfusions of money to lower long-term interest rates, which result in . . .

Not much bang for trillions of bucks. With corporations holding upward of $2 trillion in cash, and 30-year mortgages at 3.5 percent, George, speaking several weeks before this week’s meeting of the Federal Open Market Committee, asked: “Is there anyone not borrowing today or purchasing a house because interest rates aren’t low enough? Do we expect that businesses will hire if their long-term rates are lower?”

The Fed Goes Political

Taking the Mask Off

By David Harsanyi

Now the spigot is open — wide open. QE III is here. And the Fed is about to become a campaign issue, whether it likes it or not.

Chairman Ben Bernanke announced Thursday that the Fed would spend $40 billion a month on mortgage-backed securities with no set date to end those purchases.

“If the outlook for the labor market does not improve substantially, the committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases and employ its other policy tools as appropriate,” said the Fed in a statement.

The Fed’s action is primarily aimed at the short term. Though there is no sign of inflation, rising food and gas prices have created inflation fears among Americans. People don’t care about price indexes they care about prices. Printing money won’t be popular.

The Map to Power

Seeing the world as it is

The Revenge of Geography: What the Map Tells Us About Coming Conflicts and the Battle Against Fate, Robert D. Kaplan

By WILLIAM ANTHONY HAY

Winston Churchill noted the symbiotic relationship between space and human action with the remark that “we shape our buildings, and afterwards our buildings shape us.”

On a much greater scale, consider how the physical world and its contours shape human development, just as humanity adapts the environment to its needs. The obvious faded from view in recent decades, however: globalization set the tone for the post-Cold War idea that old limits mattered little in a very new world. Grand, transformative projects sought to recast societies and institutions. Disappointment ensued with the failure of nation-building in the Middle East and the collapse of economic prosperity throughout the developed world.

In The Revenge of Geography, Robert Kaplan draws upon many thinkers, some unjustly neglected, to sketch a guide through the wreckage of these lost hopes. Far from creating the flat world Thomas Friedman described in his eponymous (and ephemeral) bestseller, globalization brings distant threats closer to home and draws differences into sharper relief. The future requires a new map.

Constructing the map to encompass geography in its fullest sense—embodying demographics, climate, and resources along with topography—highlights the factors that drive world trends. History and anthropology take the analysis further by providing context and showing how trends work over time. Geography, Kaplan argues persuasively, sets the framework within which contingency operates. International politics makes little sense without it.

The Salafi Moment

The West should be careful how it reacts

As the death of a U.S. ambassador in Libya demonstrates, the ultraconservative Salafi movement is pushing to the forefront in the politics of the Middle East. 

BY CHRISTIAN CARYL

By now you've probably heard. Just a few hours after an angry mob of ultraconservative Muslims stormed the U.S. Embassy in Cairo, the U.S. ambassador to Libya waskilled during a protest in the city of Benghazi. Both riots were provoked by the news that an anti-Muslim group in the United States has released a film that insults the Prophet Mohammed. In Egypt, the protestors hauled down the U.S. flag and replaced it with the same black banner sometimes used by Al Qaeda. Shades of Iran, 1979. Scary stuff.

Both attacks are utterly outrageous. But perhaps the United States shouldn't have been caught completely off guard. The rioters in both cases come from the region's burgeoning Salafi movement, and the Salafis have been in the headlines a lot lately. In Libya, over the past few months, they've been challenging the recently elected government by demolishing ancient Sufi shrines, which they deem to be insufficiently Islamic. In Tunisia, they've been attacking businesses that sell alcohol and instigating nasty social media campaigns about the country's female competitors in the Olympics. In Syria's civil war, there are increasing reports that the opposition's wealthy Gulf financiers have been channeling cash to Salafi groups, whose strict interpretation of Islam is considered close to the puritanical Wahhabism of the Saudis and others. Lately Salafi groups have been gaining fresh prominence in parts of the Islamic world -- from Mali to Lebanon, from Kashmir to Russia's North Caucasus.

The Day The Roof Fell In

Americans don’t want to bomb, they don’t want to build; they want to get out

by WALTER RUSSELL MEAD

Sometimes trouble blows up out of a clear blue sky. That’s what happened to the White House yesterday.

Coming out of the Democratic Convention, despite an uninspiring speech, President Obama had a united party and a comfortable bounce. While the economy was no great shakes, the President’s stewardship of foreign affairs helped give his administration an air of competence and professionalism. At a time when war-weary and terror-wary Americans, buffeted by storms at home and upheavals abroad, want nothing more than a quiet life, “no drama” Obama was ready to campaign as a safe and experienced steward of the national interest against a gaffe-prone challenger.

But that was before 9/11/12, the day the roof fell in. The Chicago teacher strike raised doubts about the President’s domestic leadership, the publication of Bob Woodward’s new book raised questions about his economic management and political skills, and 11 years to the day after the 9/11 attack, radical America-hating Islamists stormed the U.S. embassies in Cairo and Benghazi, assassinated the U.S. ambassador to Libya and three others even as U.S. and Israeli relations sank to another low point.

“No drama” Obama is in it now: his ex-chief of staff is locked in a high profile cage fight with one of the most important unions and donors in the Democratic stable in his home town; his humanitarian intervention in Libya has created yet another bloody Middle East imbroglio for the United States; his efforts to reconcile the U.S. and moderate Islamism—in part by distancing the U.S. from Israel—have angered Israel without reducing Islamist bitterness against the United States.

Turkey in the era of Erdogan

Turkish diplomacy risks looking naive and ineffective

By Gideon Rachman

Turkey, in the era of Recep Tayyip Erdogan, is playing a regional and global rule that has filled its leaders with pride and ambition.

The country’s record of economic and political success has greatly added to its prestige and power. Some around Erdogan have even spoken of a “new Ottomanism”, that would see the country re-emerging as a dominant force in the region.

But the Arab spring and, specifically, the uprising in Syria have risked exposing Turkey’s claim to a unique influence in its region. Turkish diplomacy, which a couple of years ago seemed to be sweeping all before it, now risks looking naive and ineffective.

Yet, even through the flaws in the Erdogan approach to the world are now emerging, the prime minister can justly point to a transformation in the country’s international image in recent years.

In the decades before the Erdogan era, foreign policy was one-dimensional. Following in the tradition of Mustafa Kemal Ataturk, the country was determined to look West. Its self-imposed mission was to join the European Union (EU).