In the event that Scotland disregards my feelings and votes for independence, what currency would you recommend it use?
Opinions on this matter do not split neatly between Left and Right. Here are two of today’s articles on the subject; one from the Adam Smith Institute and one from the Guardian. A few days ago the pro-independence, pro-market campaign group “Wealthy Nation” republished this article from the Institute of Economic Affairs, recommending that Sterling be kept for the time being. It looks a serious piece, but it was written before the recent interventions by George Osborne and Manuel Barroso.
Commenters wishing to use words like “seignorage” are requested to give me warning first so that I can hide behind the sofa.
In all the years I have been reading old editions of the The Times I have never come across anyone advocating a European Union. Until the other day, that is.
The Times 31 January 1914 p6
Annoyingly they are not entirely wrong:
If armaments could be greatly reduced, the savings effected would provide an abundance of liquid money to the great advantage of the people. Funds for industrial and commercial purposes would become plentiful.
Unless you piss it up the wall on a welfare state, that is. And on some things they are really on the money:
The nations of Europe and European civilisation itself threaten to break down under the military burdens. The people are groaning and muttering. Dissatisfaction is spreading apace. The tension is rapidly approaching breaking point.
The solution is a familiar one:
It is obvious that, if we wish to abolish war and the ruinously expensive preparations for war, we must deal with the fundamental cause of war. We must, therefore, above all, endeavour to abolish the disunion existing among the Great Powers and replace it by harmony and by a firm and lasting union.
I couldn’t help notice that then as today they seem to be extremely well-funded. I wonder how much a page in the The Times of 1914 compares with four pages in The Independent of today?
From the genuinely scary opening sequence of Muppet Treasure Island…
Shiver my timbers, shiver my soul
Yo ho, heave-ho
There are men whose hearts are as black as coal
Yo ho, heave-ho
And they sailed their ship across the ocean blue
A bloodthirsty captain and a cutthroat crew.
It’s as dark a tale as was ever told
Of the lust for treasure and the love of gold…
Shiver my timbers, shiver my sides
Yo ho, heave-ho
There are hungers as strong as the wind and tides
Yo ho, heave-ho
In other news, Tim Yeo has got the old heave-ho. Deselected as a Conservative MP by his constituency party.
For those unfamiliar with “Green Trougher” Yeo, this old post by James Delingpole explains why we mustn’t laugh. There are indeed hungers as strong as the wind and tides.
Jim Carver is a libertarian UKIP umbrella-maker from the West Midlands who aims to be elected to the European Parliament in 2014 and then to make himself redundant as soon as possible. ‘If you take liberties with a market trader, you can expect a fight,’ he says, ‘And these buggers aim to take all the liberties we’ve got.’
Nasty things are just nasty. You know where you are with a tetchy shark. It’s the nice ones which give me the heebie-jeebies. Dolls, wide-eyed children, psychopathic blondes and slavering kittens are far scarier than more obviously menacing monsters.
Let me introduce you to a tooth-achingly nice but totally terrifying new document entitled A European Framework National Statute for the Promotion of Tolerance.
It is intended to be enacted as law in every member state of the European Union. It will probably be enshrined in British law. Shudder at the thought. It is such a sweet document. Its purpose is to ‘Promote tolerance within society… condemn all manifestations of intolerance based on bias, bigotry and prejudice…’
So far, so missionary tract, but these are missionaries with power. They will ‘take concrete action to combat intolerance, in particular with a view to eliminating racism, colour bias, ethnic discrimination, religious intolerance, totalitarian ideologies, xenophobia, anti-Semitism, anti-feminism and homophobia.’
There is no attempt to define these enemies.
Feminism, just to take one example, can be the radical Dworkinesque wing, which considers sex-workers and the sexually active to be traitors (and victims), and all sexual allure to be demeaning. It can also be ‘riot grrrl’ or ‘lipstick’ feminism which reclaims traditional gender symbols and sexuality and respects the rights of women to win autonomy by these means.
The former – being nutters – are the more politically active. They consider the others to be ‘anti-feminist’. They abuse and deride them in a most intolerant manner, yet I warrant that it will be they who impose tolerance by force on their dissenting sisters once this statute has force of law.
Many nominalists doubt that homosexuality as a state of being rather than as an incidental preference actually exists. Many Britons oppose the open-door immigration policy forced upon them by Brussels. They are immediately therefore branded ‘xenophobes’. Will all such heretics find themselves debarred from expressing their views in the name of tolerance?
Here, however, comes good news: All groups will be guaranteed ‘freedom of expression, including freedom to seek, receive and impart information and ideas… to manifest… religion or belief in worship, observance, rituals, rites, practice and teaching…’
Does this mean, then, that devout Catholics who disapprove of homosexuality (and, more consistently, of all non-procreative sex) will be permitted to express their views?
Er, no. ‘There is no need to be tolerant to the intolerant. This is especially important as far as freedom of expression is concerned: that freedom must not be abused to defame other groups.’
→ Continue reading: Tolerance… or else!
Last night I attended a meeting of the End of the World Club, and by the end – of the meeting, not the world – the conversation had turned uncharacteristically optimistic. Oh, there were the usual prophecies of doom, and it is hoped that the next meeting will be someone talking about what it was like living through the Zimbabwe hyper-inflation. But the second of the two speakers last night was Rory Broomfield, speaking about the Better Off Out campaign, as in: Britain would be better off out of the European Union. That is an argument where at least some headway is now being made. How big the chances are that Britain might either leave or be kicked out of the European Union some time in the next few years, I do not know, but those chances have surely been improving. I can remember when the fantasy that “Europe” was going to cohere into one splendidly perfect union and lead the world was really quite plausible, if you were the sort already inclined to believe such things. EUrope, in those days, was a boat that Britain needed not to miss. Now, EUrope is more like a swamp into which Britain would be unwise to go on immersing itself, and should instead be concentrating on climbing or being spat out of.
Mention was made of shipping containers, i.e. of the story told in this fascinating book. Compared to the arrangements it replaced, containerisation has damn near abolished the cost of transporting stuff by sea, which means that the economic significance of mere geographical proximity has now been, if not abolished, at least radically diminished. Regional trading blocks like EUrope now look like relics from that bygone age when it would take a week to unload a ship, and when Scotch whiskey could not be profitably exported from Scotland because half of it would be stolen by dock labourers.
Containerisation also exaggerates how much business Britain does with Europe, because much of this supposed trade with EUrope is just containers being driven in lorries to and from Rotterdam, and shipped to and from the world. The huge new container port now nearing completion in the Thames Estuary is presumably about to put a demoralising (for a EUrophile) dent in these pseudo-EUropean trade numbers.
Mention was also made of a recently published map (scroll down to Number 29 of these maps). This map shows the economic centre of gravity of the world, at various times in history. A thousand years ago, this notional spot was somewhere near China. And the point strongly made by this map is that this centre of economic gravity is now moving, faster than it has moved ever before in history, from northern Europe (it was in the north Atlantic in 1950), right back to where it came from, leaving Europe behind.
Broomfield talked about how you convince people of such notions. For younger audiences, he said, just moaning on about how terrible EUrope is doesn’t do it. You have to be positive. But the trick, said Broomfield, is to be positive about the world. The important thing is that Britain, and you young guys, should not held back by EUrope from making your way in that big world.
The actual End of the World is not nigh any time soon, but the world is changing.
If you doubted that the €uropocalyse was at hand…
French President Francois Hollande has declared an end to the eurozone debt crisis, which has gripped the region for the past four years.
… well everything is going to be okay after all then! Thank goodness for that!
David Cameron’s position is that he is trying to persuade the Golf Club to play tennis, but that if they refuse, he will continue to play golf.
- Michael Forsyth, on Daily Politics today, describing the posture of the Prime Minister with regard to the European Union.
Crisis for that last amorphous blight of nethermost confusion which blasphemes and bubbles at the centre of all infinity as trust hits record low, the Guardian reports.
Public confidence in the boundless daemon-sultan Azathoth, whose name no lips dare speak aloud, and who gnaws hungrily in inconceivable, unlighted chambers beyond time amidst the muffled, maddening beating of vile drums and the thin, monotonous whine of accursed flutes; to which detestable pounding and piping dance slowly, awkwardly, and absurdly the gigantic ultimate gods, the blind, voiceless, tenebrous, mindless Other Gods whose soul and messenger is the crawling chaos Nyarlathotep has fallen to historically low levels in the six biggest EU countries, raising fundamental questions about its democratic legitimacy more than three years into the primordial idiot god’s worst ever crisis, new data shows.
The blind idiot god encircled by his flopping horde of mindless and amorphous dancers, and lulled by the thin monotonous piping of a demonic flute held in nameless paws “could do much better if its institutions coordinated better”, according to a press release issued today.
Voting to leave Brussels will cause your wife to have bigger breasts and increase your chances of owning a BMW M3.
- Boris Johnson, leader of the Conservative Party during the EU referendum of 2017 (as imagined by David Charter in Au Revoir, Europe: What if Britain left the EU?)
Cyprus has a ‘bailout‘ deal blessed by the EU. Certain bondholders face being wiped out.
Now I seem to recall when Ireland got its bailout blessed by the EU, it was expressly forbidden to wipe out bondholders, I am right?
Now if I also recall, many of those bondholders were German, whereas many of the bondholders in Cyprus are Russian.
I am reminded of a certain song…
This article from John Phelan, at The Commentator, is worth reading:
Functioning banks certainly are a key part of a modern financial system but why should the same be said of the toxic zombies who are blundering round the current financial landscape?
And how did these rotten banks get so big in the first place? It’s because governments and central banks prop them up. Bad banks rarely go out of business, they just lumber on, soaking up and destroying more wealth. Goldman Sachs and JP Morgan were bailed out five times in the 20 years before 2008.
The second lesson is that there really is no such thing as private property. In extremis the government considers itself entitled to any amount of your property it desires even if, as in the Cypriot case, it means revoking its own commitments to protect bank deposits.
But then this is the logical outcome of taxation. If you think that a shortage of government revenue can be solved by the government simply helping itself to someone else’s revenue you really can’t have a philosophical problem with this. If you believe in the 50p tax rate this is where you end up.
The last paragraph is particularly telling. It is good, in a grim sort of way, that people have been alarmed at the idea of governments grabbing savings. But what on earth do people think governments do already? Consider the central banks’ “quantitative easing” policies. Printing money benefits those who get the new money first against those who do not; savers lose out when a government “reflates” an economy. In the UK, for example, inflation – understated by government statistics – is in the low but significant single digits and over a relatively short period, will devastate savings due to the impact of compounding. The proposals from leftist politicians for a so-called “wealth tax” in the UK is merely another form of property rights confiscation, but then again, income taxes are a form of confiscation in that they confiscate the products of work. Confiscation is what governments with a monopoly on the use of physical force do. It is one of their defining characteristics.
Meanwhile, Detlev Schlichter has an interesting new item up about the Cypriot disaster. What is notable about it is that he does not adopt a lazily predictable “bash the eurozone” stance here.
In particular, Schlichter kicks against the assumption that what was proposed – taking a slice of deposits – is somehow uniquely evil:
I am a free market guy. I am in favor of laissez faire so I always like to see placards that read “Hands off”. One could see such placards at demonstrations in Cyprus yesterday: “Hands off Cyprus”. That is great. But be careful what you wish for. A proper hands-off policy means letting the chips fall where they may. That would certainly mean no bailout and thus total collapse of the Cypriot banking system and the Cypriot economy. Don’t forget that Cyprus and its banks and its depositors are still being bailed out with other people’s money here.
That is also what some of my libertarian friends don’t seem to get when they speak, as some of them did yesterday, of another incident of the ‘the state stealing from its citizens’ or of confiscating their property. As much sympathy as I usually have with these views, in this instance they are simply mistaken. If this were expropriation it would mean that the act of abstaining from this expropriation – of the expropriator simply doing nothing – would mean that the ‘victim’ keeps his property. But if the EU did nothing in this situation – “hands off”, laissez faire – it would mean that most depositors, including those under €100,000, got wiped out completely. The choice is not between keeping everything and paying a ‘levy’, but between paying a ‘levy’ and losing almost everything.