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]
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At this point it might be useful to clarify precisely what the dispute concerns. The question is not whether the federal government should grow. As Reason’s Nick Gillespie pointed out a few days ago, nearly nobody in Washington has actually proposed shrinking the leviathan. To the contrary, the dispute is whether to raise federal spending from the current $3.8 trillion to $4.7 trillion over the next decade (the Paul Ryan plan) – or to $5.7 trillion (the Obama plan). Bear in mind that those increases would come on top of one of the fastest expansions of federal spending in U.S. history. When President Obama took office, the budget stood at $2.9 trillion. Two. Point. Nine.
– A. Barton Hinkle
So the USA is screwed… and does this remind you of something?
Liam Halligan has written a not unreasonable article called We should have listened to Zhu Min years ago – don’t ignore him now:
The “twin pillars” of the world economy continue to totter. Global investors, politicians and the financially-literate general public are wringing their hands about two previously “unthinkable” disasters – the US Congress “closing down” the government of the world’s largest economy and the break-up of the eurozone.
American lawmakers may do a deal this weekend, so managing to raise the US debt-ceiling prior to the August 2 deadline. Europe’s monetary union may, for now, be held together with a bucket-load of political fudge. If so, we would avoid both a US default and a “euroquake”, so averting another “Lehman moment”. I certainly hope we do.
[…]
“It’s no use throwing dollars out of a helicopter,” Guido Mantegna, the Brazilian finance minister, has commented.
“QE amounts to economic hooliganism,” the Russian prime minister, Vladimir Putin, observed last week.
Mantegna and Putin are right. We Westerners won’t admit it.
‘We’ westerners? To hijack an old joke about the Lone Ranger and Tonto, Who is “we”, Pale Face? What he is saying is just what Austrian school economist have been pointing out for years.
But he is wrong about sovereign default being a ‘disaster’. On the contrary…the sooner the better, I say. The only cure for the absurdity of bloated state borrowing is for it to become a great deal harder for states to do it… and as there is clearly no political will to tell all the vested interest with their snouts in the trough that the binge is over, not just for the well connected bankers but for the ‘innocent’ voters who are state funded parasites, then the only solution is for lenders to learn that sovereign risk is now actually… risky.
Let even one of the Big National Players default and the money states borrow will dry up like morning dew… and that is a good thing, not a bad thing.
I have a lot of time of Michael Totten. That does not mean I agree with everything he says but I rate his commentary and reportage more highly than 98% of the Fourth Estate’s professional ‘experts’ from megacorporate media land.
His latest work, Hanging with the Muslim Brotherhood, is an interview with Esam El-Erian and I commend this to you, not just for its informative content but because it may have the same effect on you as it did on me… some laugh-out-loud moments just visualising what the exchange of views must have been like for the exasperated but ever polite Totten and his redoubtable colleague Armin Rosen.
Read the whole thing and perhaps even drop your mouse on his ‘donate’ link as he is worth every penny.
The headline says ‘Europe declares war on rating agencies‘:
Wolfgang Schauble, German finance minister, said there was no justification for the four-notch downgrade or for warnings that Portugal might need a second bail-out. “We must break the oligopoly of the rating agencies,” he said.
Heiner Flassbeck, director of the UN Office for World Trade and Development, said the agencies should be “dissolved” before they can do any more damage, or at least banned from rating countries.
Now ponder that for a moment… what is a ‘rating agency’? It is a company that states an opinion regarding credit worthiness. And those opinions are only significant if people who make investment decisions think the opinions in question actually reflect reality, i.e. the opinion has some credibility.
So what these quoted members of the political class are calling for is banning credible opinions about the consequences of decisions by, er, people like themselves.
Astonishing. And in reality rating agencies have a history of excessive optimism, only downgrading ratings long after the dots were joined by anyone who has been paying attention.
“Will militant unions derail big fat Greek sell-offs on the rocky route to recovery?” sayeth the Telegraph.
Well anyone buying Greek infrastructures with private money deserves everything they will get… it would be easier and probably less stressful to just flush the money down the toilet and call it ‘performance art’.
Leave Greece to circle the drain as a prime example of Mencken’s observation:
“Democracy is the theory that the common people know what they want and deserve to get it good and hard”.
Greece will just be the first of many as the vast ponzi scheme that is the ‘welfare state’ reaches its climax set to Bouzouki music playing faster and faster…
It is difficult to know how seriously to take China’s red revival. Like the idea of a Cultural Revolution-themed restaurant – could the world imagine an Auschwitz Café? – to Western eyes the campaigns are almost beyond parody.
– Peter Foster discussing the nauseating celebrations of the communist party in China
And even if the Greek populace remained blissfully oblivious when all that debt was being piled up, they certainly are aware of it now. But judging from the riots in the streets their only thought still is that they want the party to continue, at someone else’s expense. They deserve what they get.
– Commenter ‘Laird’
… no, it was the highest institutions of the Netherlands who were on trial with their credibility and very legitimacy at stake.
Although I am delighted he was acquitted of all charges, frankly it is a disgrace that he was ever put on trial in the first place for simply stating his views about Islam and multiculturalism.
And the fact the BBC calls him ‘far right’ tells you nothing useful about Geert Wilders’ views but speaks volumes about the BBC.
The dependably dismal Archbishop of Canterbury, a man who thinks his god favours a massive force backed regulatory state which takes one person’s wealth implicitly at gunpoint and gives it to someone else, get a well phrased hammering by Graeme Archer:
It is obscene, Dr Williams, that some people choose not to work, and are better off as a consequence than those who do not make such a choice. Such people are less deserving than others. If there are no jobs available, what are all these Polish men doing on this bus, at 6.30am? They deserve more than to be viewed as taxable cart-horses.
And you? On an average salary? Trying to raise a child and thinking about having another? Coming to the conclusion that you might be able to balance commuting against mortgage costs, if you moved to an unpopular area farther out than you’d like? It must be hard for multiple houseowners such as Mr Cruddas, or the Archbishop in his palace, to understand: this is life, for most of us. And we’re not fascists because we make a distinction between the deserving and the undeserving when we see where our tax is spent.
Read the whole thing. My only regret is Archer does not follow the moral argument to its logical conclusion.
… no, I am not talking about his, er, other talents but rather the clarity of his economic analysis…
Ladies and gentlemen, Guido presents the Great Inflation Swindle, we have just seen the second-biggest one-month increase on record and a record high in core CPI yet the Governor of the Bank of England has told us for 3 years inflation was a blip and that the real danger was deflation. It was a deliberate lie to excuse the most reckless monetary loosening since… well actually monetary policy has been too loose globally since back to 1998 when Greenspan “saved the world” after Long Term Capital’s financial theory geeks had a close encounter of the reality kind. The loosening up of monetary policy to smooth the aftermath of that hedge fund collapse told financial risk takers to rack up the risk because central banks would step in if you got in to trouble. Everyone was “too big to fail”. Central bankers turned capitalism from a system of profit and loss into a system of private profits and socialised losses. Taxpayers had their chips put on the gambling table without even being asked.
Read the whole thing.
Though a World Health Organization study concluded cell phones may cause cancer, some are wondering why, if their truly is a link, there not been a significant worldwide increase in brain cancers.
Go figure. But of course providing excuses for more regulations, and more funding for further studies, is the reason bodies such as the World Health Organisation exist.
While some minorities become popular political causes, other minorities are on the receiving end of negative political populism. Politically correct campaigners will loudly support the “good minorities” such as GLBT or immigrant groups, but they are equally loud in their condemnation of the “wrong minorities”. This seems to indicate that we are not becoming more tolerant… we are simply switching our bigotry on to other areas.
– John Humphreys
Read the whole thing.
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Who Are We? The Samizdata people are a bunch of sinister and heavily armed globalist illuminati who seek to infect the entire world with the values of personal liberty and several property. Amongst our many crimes is a sense of humour and the intermittent use of British spelling.
We are also a varied group made up of social individualists, classical liberals, whigs, libertarians, extropians, futurists, ‘Porcupines’, Karl Popper fetishists, recovering neo-conservatives, crazed Ayn Rand worshipers, over-caffeinated Virginia Postrel devotees, witty Frédéric Bastiat wannabes, cypherpunks, minarchists, kritarchists and wild-eyed anarcho-capitalists from Britain, North America, Australia and Europe.
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