“When bureaucrats and politicians (including 17 state attorney generals) attack a successful, entrepreneurial company, is it surprising that it looks like a circus?”
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October 5th, 2023 | 24 comments - (Comments are closed)
 In the Telegraph, Ruby Hinchliffe writes,
“Working on”, as in “destroying”:
And, naturally,
October 5th, 2023 | 10 comments - (Comments are closed)
In his book, After America (published in 2011, which already seems a loooong time ago), Mark Steyn wrote this:
And:
Steyn is connecting two things: a government/central bank policy mix that focuses on consumption, rather than production, and ties policy to that, including welfare policy (ideas such as Univeral Basic Income, etc). Also, the risk-adverse, Precautionary Principle of our time seems to go against humans being adventurous, taking calculated risks, getting up and going places, etc. For example, he notes how young adults today can go through their teens and early 20s without having a job. When, as I did, you worked on Saturdays and during the summer holidays (paper rounds, working on farms, in shops, etc) there were various consequences – all good – including the fact that you had to be physically active. (Glenn Reynolds writes in a similar vein on why teenagers should work before going to college.) Now, the idea of young people working is treated as being on the same plane as evil Victorian mill owners out of a Dickens novel. But Steyn is also making the point about production – and a very anti-Keynesian point. As the “Austrian” school notes (as in George Reisman’s book Capitalism), to consume, you have to produce and that means accumulate capital (physical capital, and mental capital, such as skills and habits). So much present policy seems to work against accumulating capital (taxes, regulations, inflation, the general demonisation of wealthy people, etc). And we print or have printed money to fill the gap. So our economy becomes zombified on ultra-low rates, and like someone who hasn’t taken a regular walk, lifted weights or performed physical work, we get bloated and sick. Much of what Steyn wrote 12 years ago was accurate, and many of his predictions hold true. I think where the book is a bit off is that he thinks the threat from fundamentalist Islam was the biggest threat to the US while he did not write lot about China, although China does figure in this book quite a bit, to be fair. And the idea of Russia running amok in Ukraine or wherever, while he hints at this risk, it does not really figure all that much. I am quibbling, though. This is a book that holds up well. Its conclusion – that we have to shrink the State, remains as valuable as ever. Right, off to the gym. September 23rd, 2023 | 15 comments - (Comments are closed)
Investment is an expense and don’t let anyone tell you different – not even a fashionable professor. – Tim Worstall, who is probably annoyed at how often he has to state the bleedin’ obvious. September 21st, 2023 | 10 comments - (Comments are closed)
“The key insight driving the environmental movement historically was that complex natural systems must be treated with respect. Crude interventions, however well-intentioned, can make things worse. Removing an apex predator can change a whole ecosystem. A flood-control dam that eliminates natural wetlands can make floods more dangerous. Attuned to the costs of unanticipated consequences, environmentalists urged caution and restraint by policy makers and advocated letting nature take its course.” “Today’s green activists have largely forgotten these truths. The consequences are visible all around, and the payback has only begun. Ham-fisted, poorly thought-out green policies, too often designed by self-interested renewable-energy lobbyists, will exact economic and political costs even as their effects on emissions continue to disappoint. The most likely result, sadly, is that the political temperature over climate interventions will keep rising even as green climate policies fall short.” – Walter Russell Mead, Wall Street Journal ($). When I read these paragraphs, I was reminded of the F.A. Hayek publication, The Fatal Conceit: The Errors of Socialism. For what we have here is a conceit that the top-down approach can be brought to bear on containing CO2 emissions and forcing billions to adopt new energy sources, by force if necessary. What this approach misses is how rules can be gamed. For another part of WRM’s article is that Western policy is, intentionally or otherwise, transferring manufacturing power on a gigantic scale to China, and to a regime that doesn’t really give a brass farthing for climate, human welfare or liberty. What a time to be alive. September 19th, 2023 | 20 comments - (Comments are closed)
“Banks have been put on the front line of defense against financial crime. That makes sense because they have the personal data and handle the money, but it takes a lot of work to check out clients’ sources of income and business relationships. To speed up the process and limit costs, banks have turned to third-party data firms and automated systems. The bureaucracy has been industrialized. It could be throwing up too many false positives, but it almost certainly is making it hard for individuals who get wrongly classified as risky to overturn those results. Once you’re in a database that is replicated and resold many times over, it can be an endless task to get yourself scrubbed from it. Politicians have made the most noise and got the regulator’s attention, but it seems likely to be others suffering bureaucratic nightmares. The FCA’s own data shows one in 10 British Muslims don’t have access to banking, compared with 2% of all UK adults. Regulators should look not only at banks’ policies for applying the rules, but also examine their systems for performing the job.” – Paul J Davies, columnist at Bloomberg ($). He makes excellent points about how banks, using tech services to keep on top of potential money launderers, have allowed their systems to run amok. The analogy here is the “no fly lists” that countries have for people suspected of terrorism, etc. If you get on these lists, and haven’t done anything wrong (such as if your name comes up as a “false positive”) it is a hellish job to get off them. September 8th, 2023 | 6 comments - (Comments are closed)
– Dr Tim Rideout, from an article in the National with the title “How a Scottish currency will impact mortgages and other loans”. Dr Rideout, who was let back into the Scottish National Party after agreeing to undergo anti-racism training, is a member of the SNP’s Policy Development Committee and Convener of that party’s Scottish Currency Group. He is fully entitled to refer to himself as “Dr Rideout”, since he has a doctorate. He is also entitled to call himself an economist, as he has a BA in economics. He is “Dr Rideout, Economist” just like he says, and if you got the impression from that that his doctorate was in economics, that’s your fault for not checking. Same as it is your own silly fault if you got the impression that the website featuring his writings with the URL https://www.reservebank.scot/, bearing the title “SCOTTISH RESERVE BANK/ Banca Cùl-stòr na h’Alba”, and including on its front page the words “Welcome to Scotland’s Central Bank” was the website of an official body called “the Scottish Reserve Bank”. If you thought that the splendid neoclassical building in the first picture, which features in many photographs and paintings of Edinburgh, was the bank because of all those pillars, more fool you. A simple reverse image search would have told you that it was the disused Edinburgh Royal High School. Dr Rideout (Economist) cannot be held responsible for your inability to use Google. In any case, the website does say, “Please note, the Scottish Reserve Bank is not legally a bank.” Where? Right there, in the paragraph at the bottom of the “About” page, just before the bit where it says, “Website by Great-Value-Websites.Com”. It was your job to read every word of every page in full. After all that, readers might think I planned to cast doubt upon Dr Rideout’s prediction that “It is likely that the central bank will assist/require the banks to provide the same interest rates and terms on replacement Scottish pound mortgages and loans as you had on your old sterling ones”, or his prediction that “Your bank will contact you near the time and ask if you would like to change your mortgage into the Scottish pound or take out new Scottish pound credit cards and loans.” Perish the thought. Several of the replies to Dr Rideout’s tweet (or “X-cretion” as I believe they are meant to be called now) in which he flags up his piece in the National do point out that the banks would be insane to do any of these things, but a little thing like that does not invalidate his prediction. If Scottish independence comes to pass while the Scottish National Party is in power then you can bet that the Scottish government will indeed assist/require the banks to pretend the new currency is equal in value to the old. History is full of governments making insane declarations about the value of their currency and requiring, sorry, assisting, their citizens to impoverish themselves by acting as if the fantasies were truth. As Dr Rideout says himself,
August 29th, 2023 | 30 comments - (Comments are closed)
August 8th, 2023 | 33 comments - (Comments are closed)
“Arms contractors get lumped in with tobacco, oil, alcohol and other so-called `sin stocks’ that are regarded as a threat to society. Yet, Ukraine’s predicament has shown that the biggest threat to Western freedom is Putin himself and without the West’s support for Kyiv, Russia may have been able to continue its imperial march beyond Ukrainian territory, further into Europe. City minister Andrew Griffith and defence procurement minister James Cartilidge have warned perfectly reasonably that the UK’s long-term security is being put at risk by the Square Mile’s growing aversion to defence stocks.” – Ben Marlow, Daily Telegraph (£) August 8th, 2023 | 12 comments - (Comments are closed)
Who actually has the power in a capitalist and free market economy? Quite clearly it’s us as consumers. Even something – as here – as trivial as an ad for a beer can lead the capitalists, the producers, losing substantial amounts of money. Billions off the market capitalisation in fact. And all just because some of us consumers decide to switch where and how we’d like to spend our money. August 6th, 2023 | 38 comments - (Comments are closed)
The good folk at The Cobden Centre have put together a very good documentary to explain how the fiat money system works, and has some suggestions as to what to do about it. At the instigation of the Sage of Kettering, (full disclosure, his cousin made it), here it is. I have watched it and it is very good. Ex Nihilo: The Truth about Money. My only quibble is that it repeatedly refers to banks creating money out of thin air, but there is some substance to ‘thin air’, which, after all, can sustain respiration and hold up aircraft. August 5th, 2023 | 19 comments - (Comments are closed)
Anyone who gloated about the “de-banking” of Nigel Farage over his account will now realise, or they should have anyway, that the sword is double-edged:
It is too easy to roll the eyes, and say “karma is a bitch”. What appears to be the case is that, as discussed in my post here, and in the comments, we just don’t have a fully free market banking system in the UK and much of the world today. The next time you read some idiot going on about “unbridled capitalism” or “neoliberalism”, point this out to them. July 28th, 2023 | 14 comments - (Comments are closed)
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