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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…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
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.
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.
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.
What developments favourable to liberty will happen during 2011?
… and a happy new year to all.
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.
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.
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.
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:
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.
A most enjoyable trip was had by yours truly on the Thames yesterday in the company of the Adam Smith Institute. Every year, the think tank invites its members and various assorted free marketeer campaigners to have a glass of bubbly or two on a nice pleasure cruiser. Old age must be setting in as far yours truly is concerned, since the revellers seem to be getting younger. But then again, that is testimony to the cleverness of the ASI’s outreach programme to universities and colleges. It is impossible to over-stress how important this is. Anyway, thanks to the ASI for an extremely pleasant evening, blessed by superb weather and great company.
Indeed, and here he was just before delivering it, earlier this evening, to the assembled friends and supporters of the Libertarian Alliance, at the National Liberal Club:
His subject was Public Goods and Private Action: How Voluntary Action Can Provide Law, Welfare and Infrastructure – and Build a Good Society.
Academics who are supportive of the free market and the free society tend to be economists. Such thinkers might have based an argument like that one on economic theories concerning the alleged possibility and desirability of such arrangements. But Dr. Davies is a historian, with a wealth of knowledge concerning how such arrangements did exist, and accordingly might again. It is hard to argue with any persuasiveness that voluntarily funded policing, or unemployment insurance, or roads or railways cannot exist, if the fact that these things actually did exist is widely known. The current crop of fiscally disastrous and morally destructive social and infrastructural policies depend for their continuation on perpetuating ignorance of how such voluntary alternatives existed in the past. (Hence in particular the importance of voluntarily organised and voluntarily funded education.)
Dr. Davies argued that the current fiscal crisis of the modern state, not just in Britain but everywhere, means that an historic opportunity now exists to revive such ideas as these.
A fellow Samizdatista asked, during the Q&A that followed Dr. Davies’s lecture: Will the text of it be published? Answer: yes. I await this text with eagerness, as do many others. All to whom I spoke afterwards agreed that this was an outstandingly effective and informative lecture.
Of course, when I say that that is what Strathclyde Fire and Rescue (“making our communities safe places to live work and visit”) preferred, I do acknowledge it cannot have been pleasant to sit around listening to her desperate cries for the last six hours of her life while rescue equipment that could have brought her out from the mine shaft into which she had fallen stood inactive. But it was that or disregard a memo.
According to the Times,
An injured woman lay for six hours at the foot of a disused mine shaft because safety rules banned firefighters from rescuing her, an inquiry heard yesterday. As Alison Hume was brought to the surface by mountain rescuers she died of a heart attack.
A senior fire officer at the scene admitted that crews could only listen to her cries for help, after she fell down the 60ft shaft, because regulations said their lifting equipment could not be used on the public. A memo had been circulated in Strathclyde Fire and Rescue stations months previously stating that it was for use by firefighters only.
Tough call. We must hope that the eighteen firefighters present (according to an account in the Scotsman) supported each other.
I am a little confused by the fact that the this rope equipment was specified for use by firefighters only. I suppose this restriction is to avoid untrained people being rescued.
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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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