We are developing the social individualist meta-context for the future. From the very serious to the extremely frivolous... lets see what is on the mind of the Samizdata people.

Samizdata, derived from Samizdat /n. - a system of clandestine publication of banned literature in the USSR [Russ.,= self-publishing house]

Bitcoin talk

This coming Friday evening (Aug 3rd), there will be a talk, at my home, on the subject of Bitcoin, given by a German libertarian who is now visiting London named Frank Braun.

Frank Braun is an acquaintance of Detlev Schlichter. Detlev wanted London to offer Frank Braun some kind of libertarian welcome, but many of the usual libertarian welcomers are now out of the country, on holiday and fleeing the Olympics. So, I’m doing some Frank Braun welcoming. Which suits me well because I have for some time been thinking of cranking up my Brian’s Fridays, and this will be a good way to see if that really appeals. Plus, any acquaintance of Detlev Schlichter is an acquaintance of mine. Certainly, this particular talk ought to be interesting.

There is a posting up at my personal blog about the event. If you’d like to attend, and are near enough actually to do that conveniently, please email me (follow the link to see how).

Now, back to all the tidying up that I must do before Friday. That has now become urgent. Which was another reason why I said yes to Frank Braun dropping by.

Discussion Point XXXVII

Who do you hope wins the election in Greece today?

As a starting point for discussion, I thought the headline of this Guardian article “A Syriza victory will mark the beginning of the end of Greece’s tragedy” might well turn out to be true if Syriza do win, albeit not in the way the left wing authors expect.

“Suppose things go badly, and Italy is in trouble” – Milton Friedman on the Euro in July 1998

…the more likely possibility is that there will be asymmetric shocks hitting the different countries. That will mean that the only adjustment mechanism they have to meet that with is fiscal and unemployment: pressure on wages, pressure on prices. They have no way out. With a currency board, there is always the ultimate alternative that you can break the currency board. Hong Kong can dismantle its currency board tomorrow if it wants to. It doesn’t want to and I don’t think it will. But it could. But with the Euro, there is no escape mechanism.

Suppose things go badly and Italy is in trouble, how does Italy get out of the Euro system? It no longer has a lira after whatever it is – 2000 or 2001 – so it’s a very big gamble. I wish the Euro area well; it will be in the self-interest of Australia and the United States that the Euro area be successful. But I’m very much concerned that there’s a lot of uncertainty in prospect.

Professor Milton Friedman interviewed by Radio Australia, 17 July 1998

Discussion Point XXXVI

What will happen to the Euro? I am not asking “what should happen”, but what will happen. Take this opportunity to put your predictions on the internet, and later be hailed as a true prophet or derided as a false one.

Detlev Schlichter in House of Commons Committee Room 7

Yesterday afternoon, I attended the meeting at the House of Commons that I flagged up here a few days earlier. It was a fairly low key affair, attended by about thirty people or more. Not being a regular attender of such events, I can’t really be sure what it all amounted to. Things happen at meetings that you don’t see. Minds get changed, in silence. Connections are made, afterwards. You do not see everything.

But what I think I saw was this.

The first thing to clarify is that this was the Detlev Schlichter show. Steve Baker MP was a nearly silent chairman. Tim Evans was a brief warm-up act. Schlichter’s pessimism about the world economy was the heart of the matter. He did almost all the talking, and I believe he did it very well.

It’s not deliberate on his part. Schlichter just talks the way he talks. But his manner is just right for politicians, because he doesn’t shout, and because he so obviously knows what he is talking about, what with his considerable City of London experience, and that flawless English vocabulary spoken in perfect English but with that intellectually imposing German accent. He foresees monetary catastrophe, but although he has plenty to say about politics, and about how politics has politicised money, he is not trying to be any sort of politician himself. Basically, he thinks they’re boxed in, and when asked for advice about how to change that, he can do nothing beyond repeating that they are boxed in and that monetary catastrophe does indeed loom. But what all this means, for his demeanour at events like this one, is that he doesn’t nag the politicians or preach at them or get in any way excited, because he expects nothing of them; he merely answers whatever questions they may want to ask him. He regards them not as stage villains but as fellow victims of an historic upheaval. Despite the horror of what he is saying, they seem to like that. He didn’t spend the last two months cajoling his way into the House of Commons. He was simply asked in, and he said yes, I’ll do my best.

Present at the meeting were about five MPs, besides Steve Baker MP I mean, which is a lot less than all of them, but a lot more than none.

One, a certain Mark Garnier MP, seemed to be quite disturbed by what he was hearing, as in disturbed because he very much feared that what he was hearing might be true. Mark Garnier MP is a member of the Treasury Select Committee, which I am told is very significant.

Another MP present, John Redwood, was only partially in agreement with Shlichter. He agrees that there is a debt crisis, but doesn’t follow Schlichter to the point of seeing this as a currency crisis. In other words, Redwood thinks we have a big problem, but Schlichter thinks the problem is massively bigger than big.

Redwood was also confused by Schlichter’s use of the phrase “paper money”, by which Redwood thought Schlichter meant, well, paper money. Redwood pointed out, quite correctly, that paper money that has hundred percent honest promises written on it, to swap the paper money in question for actual gold, is very different from the paper money we now have, which promises nothing. Redwood also pointed out that most of the “elastic” (the other and probably better description of junk money that Schlichter supplies in the title of his book) money that we now have is mostly purely virtual additions to electronically stored bank balances. We don’t, said Redwood, want to go back to a world without credit cards or internet trading! All of which was immediately conceded by Schlichter, and none of which makes a dime of difference to the rightness or wrongness of what Schlichter is actually saying; these are mere complaints about how he says it. Such complaints may be justified, given how inexactly “paper money” corresponds to the kind of money that Schlichter is actually complaining about. But Redwood seemed to imagine that what he said about what he took “paper money” to mean refuted the substance of what Schlichter said. Odd.

For me, the most interesting person present was James Delingpole. (It was while looking to see if Delingpole had said anything about this meeting himself that earlier today got me noticing this.) The mere possibility that Delingpole might now dig into what Schlichter, and all the other Austrianists before him, have been saying about money and banking was enough to make me highly delighted to see him there, insofar as anything about this deeply scary story can be said to be delightful. But it got better. I introduced myself to Delingpole afterwards, and he immediately told me that he considered this the biggest story now happening in the world. So, following his book and before that his blogging about red greenery, Delingpole’s next Big Thing may well prove to be world-wide monetary melt-down. I would love to read a money book by Delingpole as good and as accessible as Watermelons. If Delingpole’s red greenery stuff is anything to go by, the consequences in terms of public understanding and public debate of him becoming a money blogger and a money book writer could be considerable. So, no pressure Mr D, but I do hope you will at least consider such a project.

The Libertarian Alliance Conference is dead – but there’s a new conference in town

Never mind that the Libertarian Alliance isn’t holding a conference this year because there’s another conference to take its place. It’s a one-day, less expensive event on Saturday 22 October that’s being held in the same venue – the National Liberal Club in London. For £65 you get a day of libertarian speakers and dinner at the club, too.

Among the libertarian figures speaking or chairing sessions are the Austrian economist Dr  Adam Martin, who is flying over from New York, Sam Bowman, of the Adam Smith Institute and Cobden Centre, Theodore Dalrymple, columnist and doctor, and Toby Young, who is running a free school.

Half of the tickets are being taken up by young libertarian students, so this will be a conference where the future of the British libertarian movement will be fully in view. To reserve your place, all you have to do is to visit the Liberty League website and enter your details. Hope to see many of you there.

Hayek vs Keynes at the London School of Economics

In front of an admittedly pro-”Austria” crowd at the LSE, it seems that academics defending the free market views of the late F.A. Hayek managed to fairly heavily beat those speaking up for JM Keynes.

This may not amount to much, but what I think these things accomplish is to remind the defenders of people such as Keynes (such as Lord Skidelsky, his biographer), that there are now hundreds, in fact thousands, of smart young economics and politics graduates and undergraduates who regard, say, Keynes and other economic interventionists, as wrong. Some of these people will become teachers and lecturers themselves, or, if they want to make serious money, work in banks and the like. Slowly but surely, all those people teaching stodgy, wrong Keynesian ideas are getting older and greyer and newer people with other ideas are taking over, however slowly at first. This LSE debate is the sort of event that makes me think that while the 2008 financial crash might be seen, in one way, as a supposed setback for “unregulated capitalism” (yeah, right), it has also pushed attention on ideas that got out of focus in the lazy, fat years of the dotcom boom and the early parts of the past decade. (And then of course there are all those tens of thousands of book sales of Atlas Shrugged, etc).

Libertarians and other non-socialists like to moan how our places of Higher Learning have been gradually taken over by people with bad and wrong ideas. We need, I think, to realise that that argument can cut both ways. People with good, insightful ideas can also enter these institutions, however slowly at first, and make a key difference. I think this is happening more than people realise. I know that optimism is deeply out of fashion these days. Wallowing in despair is, in my view, a cop-out.

Discussion Point XXXIV

What developments favourable to liberty will happen during 2011?

… and a happy new year to all.

Forthcoming events – Jésus Huerta de Soto tomorrow evening and Positive Money in November

Incoming from Sam Bowman of the Cobden Centre (and also the Research Manager and Blogmeister at the Adam Smith Institute – most recent blog posting here):

This Thursday 28th October, the world’s leading economist of the Austrian school – Jésus Huerta de Soto – will be giving the first annual Hayek Lecture on the topic “Financial Crisis and Economic Recession”. The lecture is a great chance to hear about the Austrian Business Cycle Theory from its leading living theorist. It’s free, no advance tickets are needed. It starts at 6:30pm and full details are available here.

That event has already been flagged up (although somewhat imperfectly!) here. The Cobden Centre head honchos are hoping for a good-to-bursting type turnout, to keep the buzz they are already creating buzzing along and buzzier. So if you can just show up, do. No compelling need to listen to everything that carefully, or not first time around, because unless things go badly wrong the event will be recorded. I will be going, and I expect to learn a lot.

And there’s more:

A conference is being put on in London on Saturday 13th and Sunday 14th of November by the Positive Money campaign. The conference is not Austrian – there will be speakers from a range of intellectual viewpoints – but it will focus on the issues of money and banking and will have lectures from several Cobden Centre board members, including Toby Baxendale, James Tyler and Steve Baker MP. Full details are available here.

One of the things I most like about the Cobden Centre is how they cooperate so enthusiastically and helpfully with other groups which have broadly (rather than merely narrowly) similar agendas, that latter event being typical of this mind-fix.

One of the world’s smartest economic thinkers in London

Well that was not very clever of me, was it? I got the wrong de Soto in the original posting here, which I have taken down to avoid confusion. My apologies for the first poster who told me it was wrong. Ugh. Grovel-grovel.

Here is the event, anyway. I strongly recommend people to go if they get the chance. I will be.

Tuesday morning replay

Today’s Times has the headline:

Allies at odds over death of hostage in bungled rescue

The story is behind a paywall. It does not matter. I am only interested in the headline and whoever wrote it.

Do these people have any idea at all of what life-or-death fighting is actually like? I do not demand that they have actually done any before writing about it; little would ever be reported about war if that were the test. But they could at least have read a few memoirs, or talked to their grandfathers. Reading about the Dieppe Raid might put things in perspective.

Hint: it is not like planning a dinner party. With that sort of thing if you make a careful list of Things To Do and do them all in good time you generally can be reasonably confident that it will work out OK and if it does not work out OK, say the soufflé does not rise or the wine was too sweet, it probably was because someone bungled.

Military small group operations – by which I mean small group killings of people who can also kill you – are not like that. They always hang on a knife edge. The most skilled soldiers in the world frequently die young and frequently fail. A hand is a fraction of a second too slow on the trigger – a human mind is a fraction of a second slower than another, hostile, human mind to make sense of the confusion – and a comrade dies, or a hostage dies, and a lifetime of agonized mental replaying of that moment of failure begins.

Six hours later a headline writer in an office far away expresses his displeasure.

Austrian Economic eloquence at the IEA

The invasion by Austrian Economics of the Institute of Economic Affairs continues apace, and at lunchtime today I attended this IEA event on that very timely subject staged by the Cobden Centre. The weather today has been so hot that since this meeting I could hardly stay alive and then when I had staggered home, awake, so don’t expect a long and detailed report of what was said. All I really want to say here, now, is that I was greatly impressed by the two speakers, both of whom I photographed in action:

GuidoHulsmann.jpg  SeanCorrigan.jpg

These two gentleman are, on the left, Jörg Guido Hülsmann, and on the right, Sean Corrigan. Watch out for those names. I’m fairly sure that quite a bit more is going to be heard of and from both.

The good news is that Cobden Centre Chairman Toby Baxendale asked both these two gentlemen if their performances could later be made available in written form to the Cobden Centre with a view to online publication, and both promised that they would cooperate fully with such plans.

I took other photos, including a couple of Tim Evans, the Cobden Centre’s Chief Executive. In one of these snaps, Tim poses next to the IEA’s evil monetarist Tim Congdon, who was present only as a picture on the wall.

Tim said that he also thought the speeches by the two gents above to be “superb”. He says that about any performances he has had any part in organising no matter how average, but this time I think he meant it. And as I say, I enthusiastically concur. Judging by the response at the end from a gratifyingly crowded room, everyone else present did too.