The News: Fair and Unbiased

Reminder: Favorite Democratic presidential candidate Clinton (H.) must be considered innocent until she is found guilty by a court of law. Be patient!

The Obama Air Force bombed a Doctors Without Borders clinic in Afghanistan, killing about twenty people including doctors and underage patients. White House spokesperson: “We are still the best!” (Learning how to write headlines liberal style.)

I looked at a picture of the Oregon mass killer. He looked African-American to me. I am not an expert on race but I am pretty sure he would not have been seated at a Sears lunch counter in Mississippi in 1956. I wonder if he too was a white supremacist.

The police found thirteen of his firearms, all perfectly gun controlled (legal, in other words).

It seems to me that the statistics that matters the most with respect to homicides is type of homicide for 100,000 people. For the period 2000-2014 the US stands high in the ranking of deaths per hundred thousand within the context of a mass killings. It ranks number four, behind Norway, Finland, and….Switzerland. N. S.! (From the Wall Street Journal of 10.3 4 2015 reporting on an academic study.) I think a fourteen year period is significant. It does not look like cherry picking to me but I am open minded.

This all makes me muse about how raw figures are presented to the public. We all know the US homicide rate is high. (I don’t have the numbers at hand but there is no disagreement about the general statement.) I wonder what the US ranking would be if we deducted from the US homicide total count all homicides committed by African-Americans in areas administered by Democrats for a long time, say, more than ten years. I am thinking Chicago and Baltimore, for example. Just imagining.

Critics of Markets have Intervention Denial

There is a meme, an infectious idea, that has spread like a mental plague among advocates of greater governmental intervention. This idea is “intervention denial,” the claim that the US and other developed economies have had complete economic freedom. The critics of markets usually use deliberately mind-numbing language such as “capitalism,” although sometimes they do claim more starkly that today’s economies are a “free market” and practice “free banking” and “free trade.”

Many examples of intervention denial can be found by searching for the submeme “unbridled capitalism” as well as “greed” combined with “capitalism” or statements such as “people over profits.” For example, there is a web article titled “Unbridled Capitalism and the Blight of Greed” which defines “capitalism” as “the economic system in which the pursuit of wealth remains in the control of individuals, free from government regulation or interference.” The article states that “Capitalism, after all, suffers from a fatal flaw – Greed.” Intervention denial has infected well-meaning people in high places, such as the Pope, who declared, “Unbridled capitalism has taught the logic of profit at any cost.”

“Denial” in this context means the refusal to believe in evidence. For example, Holocaust denial is the refusal to accept the enormous evidence of mass murders by the Nazis. There are science denials of various sorts. Intervention denial is one of the most destructive memes in the mental universe human beings live in, because intervention denial blocks effective solutions to social problems.

Consider the claim that the US has had destructive “free banking.” This false meme originated in historians who called the US banking system prior to the civil war “free banking,” even though the banks were tightly controlled by state governments, such as prohibiting banks from establishing branches beyond the state. In true free-market money and banking, there is no restriction or imposed cost on any currency, account, or financial institution so long as its operation is honest and peaceful.

The intervention deniers claim that the USA has a free market in money and banking, disregarding the obvious facts that the US financial system is tightly regulated by the Federal Reserve (“the Fed”), the FDIC, the SEC, and the US Treasury Department. These institutions and Congress bailed out the financial system after the interventions caused the Depression of 2008, as they did with previous busts. The US dollar and interest rates are controlled by the central planning of the Fed. This is the system that intervention deniers call a “free market.”

In a truly free market, there would be no restriction, tax, subsidy, or mandate that alters honest and peaceful human action. Those who claim the US economy is “unbridled” talk as though there were no regulations nor any taxation, let alone subsidies. The extent and effects of regulations on the US economy can be read in the study “Ten Thousand Commandments” published by the Competitive Enterprise Institute, as well as the regulations data base of the Mercatus Center at George Mason University. The economic damage done by intervention can also be read in the on-going study “Economic Freedom of the World,” at freetheworld.com.

How can an economy be “unbridled” if enterprise, consumption, and produced wealth are all afflicted with heavy taxation? Intervention deniers talk as though there were no income tax, federal excise taxes, state sales taxes, value-added taxes, and taxes on buildings and equipment. A truly free market would also not have any subsidies, such as the billions of dollars now going into the big farms, along with other corporate welfare.

All these interventions – taxes, subsidies, restrictions, and mandates – distort prices, wages, interest rates, profits, and quantities. The social problems we can observe: unemployment, low wages, unaffordable housing, slow growth, recessions, pollution, can be traced back to government intervention. Consider pollution, for example. Intervention deniers claim that “capitalism” and “greed” result in pollution and environmental destruction. But a truly free market is free of subsidies. When firms and their customers do not pay the full social cost of the products, as the social cost of pollution is imposed on others, that is an implicit subsidy. In a truly free market, with full enforcement of property rights, pollution is treated as a trespass, an invasion of others’ property, requiring full compensation. The problem is not that firms and markets are unbridled, but that ecological destruction is subsidized. The subsidies combine with a legal system that bridles the population with a legal inability to sue the polluters for damages.

There is indeed a bridle to a free market: laws prohibiting force and fraud. A pure market economy consists of voluntary human action. The bridle is on thieves, not on peaceful and honest producers, traders, and consumers.

When interventions are pointed out to the deniers, they respond that these taxes, restrictions, subsidies, and mandates are of little significance. This is similar to Holocaust deniers who respond that perhaps a few Jews and Gypsies were murdered by the Nazis, but not on the large scale that they deny. Intervention deniers do not deny the existence of the Federal Reserve system, but they claim it is a private free-market organization. Deniers of all sorts reject data and other evidence, use undefined terms such as “capitalism” and “greed,” and point to their favored authors, articles, and data as though these present unbridled truth.

“Greed” means wanting and taking more than one morally deserves. A person morally deserves that which is earned by labor and received from voluntary gifts. The honest acquisition of wealth may be avarice, but not greed. Thieves are greedy, and those who indirectly steal by getting government to do or protect their forced taking are also greedy. Intervention denial is ultimately a refusal to think it through, to fully understand the ethics, politics, and economics of human life.

From the Comments: Asylum Seekers and the Canadian Experience

Dr Amburgey takes some precious time out of his schedule to rebut Dr J:

@Brandon

I can understand your reluctance to yet again engage with Professor Pinocchio’s fact-resistant Islamophobia. However you must give him credit for actually using some real data. Granted the choice of country and time period are idiosyncratic [id est cherrypicked] but anything not pulled straight from his anus is a dramatic change. Should you feel like responding in kind, use this: Canada for the period 2004 – 2013. Top 8 countries of origin for refugees landing in Canada

Columbia – 17381
China – 15344
Sri Lanka – 12326
Pakistan – 10641
Haiti – 7872
Mexico – 6512
India – 4988
USA – 4451

Based on this data Catholicism and Hinduism far outstrip Islam as religions producing sick societies.There is currently no other view that is even modestly supported by anything but ideological intransigence.

Indeed. Only the most ideological of ideologues continue to pretend that Islam is responsible for the problem in the Middle East.

When the Austro-Hungarian empire collapsed, the Holocaust happened. One could argue that, because the state is less efficient on the post-Ottoman world, what we’re witnessing is a process similar to the one we witnessed in the Occident, only in a much more haphazard way.

BC’s weekend reads

  1. Introducing… Jesus and Mo
  2. On private property and the commons
  3. Why Merkel’s Kindness to Asylum Seekers Could Reflect a German Soft Spot for Islam
  4. Why I find the Mthwakazi monarchy restoration unjustified
  5. September (a song about me)
  6. From the Far Right to the Far Left
  7. Beyond Neoliberalism (book review)

E. O. Wilson and Spontaneous order

Jump right to the 17:28 mark if you don’t care to spend some quality time with a delightful old man.

http://video.pbs.org/viralplayer/2365572374?chapter=1

“We share with insects the mysterious instinct to build complex societies… [talks about an ant colony filled with concrete then dug out of the earth…] Here was a labyrinthine web of underground highways, mini-colonies, gardens, and garbage dumps. But it was the scale of it that was breathtaking. This was an ant metropolis, a Manhattan of the insect world.

“Now, how could an animal with a brain smaller than a pinhead possibly construct and maintain a city of this size and complexity?”

Because spontaneous order! This view is why Don Lavoie cites E.O. Wilson so much. Both are fascinated (as we all should be) with systems where the interaction of its constituent parts yields outcomes more complex than any subset of those constituent parts could come up with. These complex outcomes result from relatively simple information transmission mechanisms so that behaviors of each part influence and are influenced by the rest of the system.

Asylum Seekers and Western Military Intervention

Recently, Brandon Christensen, the capable Editor here tried to take me behind the woodpile, again! (Note for our overseas readers: To take someone behind the woodpile usually a child – is to spank him to try to improve his attitude.) This is what happened: NOL re-published two of my essays “Hypocrisy” and “Muslim Refugees in Perspective” where I asserted (again) that many Muslim societies are failed societies or otherwise sick. Brandon asserted (again) that any apparent linkage between Islam in general and social pathologies is just that, an appearance. Instead he seems to argue, Muslim societies that are in any kind of trouble owe their trouble mostly (or much?) to Western intervention in general and to American intervention in particular, with a special emphasis (I am guessing) on military intervention.

There is a partial test of these competing beliefs in an examination of refugee applications to Germany during a recent period.

Between January and August 2015, Germany received 147,500 applications for asylum from the top ten countries of origin of the applicants. (I am rounding numbers to the next hundred.)* Of these, 79% came from predominantly Muslim countries.

Almost half of the asylum seekers from Muslim countries – 48% – came from Syria, a mostly Muslim country where the US and the West had notably not intervened (or only superficially) by August 2015, the end of our period of observation. If you will recall, the US president has earlier drawn a red line beyond which the Syrian dictator couldn’t go on waging war on his people. The Syrian dictator ignored the warning and nothing happened. That’s as non-interventionist as it gets!

Of the asylum seekers from predominantly Muslim countries, 23% came from Iraq and from Afghanistan together, two countries that have in fact experienced American and Western (even international) military intervention in the past twenty years.

Reminder: It’s worth remembering that the intervention in Afghanistan was launched to dislodge a regime installed by force of arms that sheltered terrorists, according to the Al Qaida terrorists themselves, and according to the regime itself. Several years earlier, the same terrorist group sheltered by Afghanistan – Al Qaida – had declared war on the United States, incidentally.

Of the remainder of asylum seekers from predominantly Muslim countries, 29% came from Kosovo. That’s more than from Iraq and Afghanistan combined.

Reminder: In 1998, the national Communist Serbian dictator Milosevic ordered all ethnic Albanians of Kosovo, more than 90% of the population to leave under threat of death. This episode of ethnic cleaning cost about 10,000 lives. NATO, led by the US quickly intervened militarily and forced Milosevic to leave the (overwhelmingly Muslim) Kosovar in peace.

NATO had previously intervened militarily in Bosnia, another part of the dissolving Yugoslav Republic, to save the non-Serb population from Serb ethnic cleansing . Of the total population, a plurality, about 40%, were Muslims. (There are no Bosnian asylum seekers visible in the sample I am discussing here. Bosnia is mentioned only as a reminder of the diversity of Western military interventions.)

Following these Western military interventions, both Bosnia and Kosovo became independent Republics with strong Western backing. They remained Muslim or mostly Muslim.

Would anyone dare argue that Western action to stop the massacres of first Bosnians and then Kosovar are responsible for the fact that now almost entirely Muslim Kosovo is currently producing many asylum seekers? I suppose, this is defensible: Had NATO not intervened militarily, Kosovars would been massacred by Milosevic in larger numbers, and then, they would have fewer people, – mathematically available – to contribute as asylum seekers.

Continued:

Of the asylum applicants from Muslim countries, 45% came from Albania, Eritrea, Pakistan, and Nigeria together, all countries with no US or other Western intervention of any kind in recent years ( I mean since 1950, the earliest I really remember!)

Albania alone contributed more asylum seekers, 33,900, than Iraq and Afghanistan together, 26,700. There have been no US or Western intervention in Albania.

Of course, distance alone makes it easier for Albanians than for Iraqis and for Afghans to reach Germany. But, by the same reasoning, why are there few asylum seekers from Croatia that is even closer to Germany, or from Romania. that isn’t much farther? (Croatia and Romania all have tiny Muslim populations.) Contrary to this line of reasoning, I must say, there were 21,000 asylum seekers from Serbia, a country with a small Muslim minority. Muslim dominated societies do not have a monopoly on severe social pathologies. I never asserted otherwise.

We know from the cut-off point of the table of the ten countries that were the largest suppliers of asylum applicants that the highest possible number of asylum seekers from non-Muslim Croatia, or from Romania (or from non-Muslim Bulgaria, or from troubled Greece) would be 3,976. That would be about 1/10 of asylum seekers from mostly Muslim Albania.

I see in these figures moderate support for the idea of the sickness of Muslim societies. I find little support, on the other hand, for the competing idea that Western and American intervention are responsible for the difficulties those societies are encountering.

I anticipate several criticisms of this provisional conclusion.

First, quantitative association like these don’t “prove” anything. Of course they don’t. Perhaps, there is a third factor, or series of factors not related to either Islam or Western intervention that explain why Muslim societies are such rich providers of asylum seekers. I am listening.

Second, the short recent period January to August 2015, maybe historically unrepresentative. There is a near- infinity of other possible periods the examination of which might show no disproportionate numbers of refugees from Muslim counties. (Ask me why a “near infinity.”)

Third, Germany is not the whole world. A more inclusive data base showing all asylum applications from all countries to all countries might demonstrate no preponderance of refugees from Muslim countries. In fact, such a data base might indicate that refugees from Muslim countries are actually under-represented among asylum seekers world-wide.

I hope someone performs one or the other study. I would easily change my mind according to the results. I am not wedded to the idea of widespread sickness of Muslim societies. Frankly, I don’t even like it. I surely have no ideological investment in this view. It’s just that there is currently no other view that is even modestly supported by anything but ideological intransigence.

Finally, there are probably those who would argue that large numbers leaving their countries at great personal risk to seek refuge in an alien country the language of which they probably don’t even know, that such an exodus says nothing about the countries of origin. Go ahead, say it; make my day! I can’t wait.

The conclusions of this simple analysis is difficult for many otherwise intelligent people to accept, even provisionally. Three reasons that I see for the rejection.

First it seems politically incorrect. We have become so confused by leftists identity politics that many are unable to distinguish between race, an unchanging attribute of a person, and religion, an individual choice. He used to be black; he still is. I used to be a Catholic. I am not anymore. That simple! (Of course, I did not risk the death penalty as do Muslims in some Muslim countries for committing apostasy.)

Second, professional intellectuals – who may or may not be very intelligent – have a horror of being caught believing the same things as do the great unwashed masses. It’s bad enough that they must assent to the assertion that the sun rises in the east, same as a plumber or a cop! The masses are “Islamophobic;” I must stay away regardless of the evidence!

Third, and much more subtly, my discussion with Brandon is part of an ongoing discreet struggle taking place on the edge of the libertarian movement. Libertarians of all stripes believe that war is a major factor in increasing the power and the scope of the state vis-à-vis civil society. (I share this belief.) Libertarian purists like Brandon end up becoming a kind of qualified pacifist, like this:

Perhaps, if I am completely sure that people who have sworn to disembowel me are actually climbing over the back wall of my property after having set my neighbor’s house on fire with my neighbors inside, perhaps, then, I will think of defending myself.

A handful of libertarians of that ilk keep failing to recruit the millions of moderate conservatives who both want small government and believe the yoke of government will never be alleviated in a society that feels threatened. Let me repeat myself: The task of first halting the growth of government and then, of rolling back its scope and power can only be accomplished in a very well defended society. Much of this rolling back has been achieved in Somalia, by the way yet, Somalia is not a model.

In their desire to reject all kinds of war that are not obviously and dangerously defensive, libertarian purists will find fault with all wars, almost at any cost. If necessary, they will blind themselves to the obvious. The act of blaming on American and or Western intervention the self evident multiple failure of Muslim societies (with major exceptions), is just the latest example of this tendency to gauge out one’s own eyes to avoid the horrors of the truth.

“We sleep soundly in our beds because rough men stand ready in the night to visit violence on those who would do us harm. – W. Churchill”

* The data on seekers of asylum from Germany are from the German Federal Office for Migrations and Refugees published in the Wall Street Journal of 9/25/15, p. A12

“Turkish Savagery” is up at Liberty Unbound

For centuries, Europeans viewed the Turk as the most feared, yet least familiar enemy. Twice, the Ottoman hordes threatened Vienna, practically next door to Paris. For hundreds of years French Mediterranean towns and monasteries fortified themselves against Turkish pirates (who mostly never showed up). Algerian pirates, who were thought of generically as “Turks,” occasionally plundered the Irish coast. Once, a bunch of them even raided Iceland! Following his naval debacle at the Bay of Abukir, Napoleon brought Mamelukes, Turkish mercenary troops from Egypt, back to Europe. He used them as a weapon of terror against the insurgent Spaniards, a fact memorialized by Goya in his Tres de Mayo. In this atrocity painting, only the Spanish victims, who seem to be appealing to the viewer, have human faces. The Mameluke execution squad is shown from the rear, like a many-backed beast.

Read the rest.

A Matter of Legitimacy

Dictionaries give us two definitions of “legitimacy”: “the quality of being legal” and “the quality of being reasonable and acceptable”. The two meanings are intertwined: we expect reasonability from the laws and we infer the content of a law we do not properly know from what we regard as reasonable. Unreasonable laws are not acceptable to the people and Cesare Beccaria warned us about how unreasonable prohibitions engender more and new crimes.

Political Realism and Legal Positivism cross their paths when it is time to discuss what is the ultimate foundation of obligation, both political and legal: facts and force. An overwhelming force deployed upon individuals and peoples will always be able to impose what is reasonable and acceptable. For Thomas Hobbes, as fear is not a sufficient reason for annulment of covenants, the feeling of terror from the subject to the sovereign does not challenge the legitimacy of his power.

Libertarianism is, in principle, a political stance on the state that denies its legitimacy or, at least, denies unlimited sovereignty. And we stress “in principle” because we want to point out that not all versions of Libertarianism accomplish the said aims. In this regard, we want to single out one crucial trait of every Libertarian political theory: is it possible a stateless order of cooperative coordination between individual plans? Does its existence depend upon our own volition and agreement? We want to make a distinction between two strains of Libertarianism: the one which affirms the possibility of a stateless society and the one which does not.

Paradoxically, the affirmation of the possibility of a stateless order of cooperation legitimates the Hobbesian stance on unlimited sovereignty: having at their disposal the alternative of a stateless political order, individuals opt freely for a Leviathan. What we have to decide now is the extension of the power of the government, but at this point there is no restriction left to the power of the Leviathan to determine its own limits.

On the other hand, for the strain of Libertarianism that regards the absence of a state as impossible or not desirable ­because, for example, the justice is an artificial virtue that demands a government to enforce it­, the state is a fact that has no reasonable alternatives. As the theft that compels us to choose between our bag or our life, there are no reasonable options left to us but accepting the power of the state. As David Hume pointed out, tacit conventions as the stability of the possessions require a political order to enforce it. Therefore, the factual power of the state will be legit only as long as it enforces the tacit order of human cooperation that allows individuals to fulfil their plans. Notwithstanding this last strain of Libertarianism does not deny the legitimacy of the state, it does consistently deny the legitimacy of any type of unlimited sovereignty.

How does emigration impact institutions?

Hello everyone. As usual I’ve come to ask for feedback on my latest research. I can’t emphasize enough how much it helps to blog it out, if only because it forces me to sit down and try to summarize things in a few hundred words.

My current research is looking at the effect emigration has, if any, on institutions. Institutions come in various forms. The state is an institution, but family, religion, and even organized crime are too. Broadly speaking institutions are those rules that govern society, both formal and informal. Institutions have increasingly been acknowledged as being one of the key (if not the key) determinants of a nation’s wealth.

Despite the importance of institutions, we know relatively little about them. By no means is this due to a lack of trying, and in there have been some earnest attempts to tackle the issue. Acemoglu’s Why Nations Fail is one such attempt.* For the time being the goal in institutional studies is to properly explain how and why institutions form.

My goal is to neither explain the origin of institutions or to measure their impact on economic well being. I take it for granted that good (and bad) institutions populate the world. Instead I am interested in how different institutions interact with one another.

My former boss at Cato has looked at how immigration has influenced a destination country’s (the USA) institutions. He finds little effect. In my project I try to look at the problem from the opposite end – how does emigration influence an origin country’s institutions. To measure the impact of emigration I use remittance data.

Remittances come in two form. There are monetary remittances, which are cash transfers from emigrants to their family members and friends back home. There is a broad economic literature on the former and its affect on development outcomes. There is however little (if any- I haven’t found any at least) economic work on social remittances. Social remittances is the transfer of ideas from emigrants to their family members and friends. In general the economic remittance literature has not yet attempted to connect itself with the institution literature despite both being part of the larger development literature.

Most work on social remittances has been done by sociologists. Thus far though most of the work has been qualitative and/or focused on how social remittances tie migrant communities with their origin countries. There has been little work on how this communication translates to changes in institutions.

Political scientists are currently taking the lead on the question. Earlier this year Abel et al. published a paper looking at how remittances affect democratic transition. They find that increased monetary remittances decreases voter turn out and thus weakens the political base of populist-based autocracies. Another recent paper by Miller et al. find that emigration increase the possibility of civil war by giving opposition parties an external funding source.

I think Abel and Miller’s work the best thus far in seeing how emigration affects institutions. My biggest concern with Abel’s paper is that he looks at democratic transition events, but there is no reason why democracy must lead to better institutions. Hong Kong and Singapore alternate as the most economically free states in the world, but neither is a bastion of democracy. India is the world’s largest democracy and by most metrics has awful institutions.

Miller’s work on the other hand looks at how the probability of civil war increases, but civil war in itself is not always bad. On occasion war is necessary for the improvement of institutions**.

To remedy my concerns I look at how remittances marginally influence institutions. I use the Fraser Institute’s Economic Freedom in the World summary index as my measure of a country’s institutions. My regression tables are found below. All observations are for north American (including central America but excluding the Caribbean) countries from 1994-2012.

Column 1 is a simply regression between a country’s EFW score and remittances as a percent of GDP. Initially we find a negative correlation between the two – a 1 percentage point increase in remittances is associated with a 0.01 point decrease in its EFW score. Is this a sign that brain drain, the emigration of high skilled migrants, is reducing the institutional qualify of origin countries? Not quite – it’s simply caused by the lack of control variables. At this point remittances is a proxy for a country being undeveloped.

Columns 2-4 are me playing around with various control variables. The interaction of phone subscriptions with remittances is my attempt to proxy for social remittances. Presumably emigrants are more likely to call back home, and exchange ideas, if their family members and friends have a phone to be contacted at. The 1 year lagged EFW index symbolizes the ‘stickiness’ of institutions: in the short run institutions do not drastically change.

Column 5 is simply column 4 re-run using clustered errors and country fixed effects. Country fixed effects, for those of you who have been spared endless hours of statistical classes, is a technique that allows us to account for unobserved characteristics of a country that do not change across the observed time span. This is usually done to account for such things as culture or geography.

In this final iteration we find that a one percentage point increase in remittances increases a country’s EFW index score by 0.05 points. This is a marginal effect, but its not irrelevant. See the Cato Institute’s interactive map of economic freedom. The difference between the United States and Russia is about one point despite the former presumably being a bastion of freedom.

Thoughts?

*Why Nations Fail has been discussed on NOL several times before, see here and here.
** But let me emphasize that this is rarely the case and war should be the last option. We really do need to make our own NOL foreign policy quiz.

(1) (2) (3) (4) (5)
VARIABLES EFW Index EFW Index EFW Index EFW Index EFW Index
Remittances as a percent of GDP – Fraser EFW -0.01* 0.04*** 0.00 0.01** 0.05***
(0.01) (0.01) (0.00) (0.01) (0.01)
Fixed telephone subscriptions (per 100 people) 0.03*** 0.01* 0.01
(0.00) (0.00) (0.01)
Remittances * Phone -0.00 -0.00 -0.00**
(0.00) (0.00) (0.00)
EFW Index 1-year lag 0.81*** 0.78*** 0.54***
(0.04) (0.05) (0.05)
Income Per Capita in 000s, Constant 2005 dollars. 0.00* -0.00 -0.01
(0.00) (0.00) (0.05)
Constant 7.39*** 6.60*** 1.33*** 1.50*** 3.04***
(0.06) (0.06) (0.28) (0.32) (0.45)
Country Fixed Effects No No No No Yes
Observations 134 134 110 110 110
R-squared 0.03 0.66 0.91 0.91 0.93

Standard errors in parentheses in columns 1-4. Robust errors in column 5.

*** p<0.01, ** p<0.05, * p<0.1

How Can Crypto-currencies Democratize Society?

Yesterday, September 26th of 2015, I attended the Reinvent Money event in Rotterdam, the Netherlands, that was organized by Paul Buitink. The goal of the event was to bring people together for a grand discussion on the future of our monetary system. This discussion on monetary reforms is totally necessary if one considers the current problems with the euro and Greece, banking scandals, the rise of bitcoin and the blockchain technology, and peer-to-peer lending.

The speakers list consisted of many prominent thinkers and activists who could share with a crowd that was mostly in favor of crypto-currencies their thoughts about the current monetary system and whether money should be reinvented.

Willem Middelkoop was the first speaker and talked about the Big Reset of the monetary system that is currently orchestrated by high level officials. Jakob de Haan, head of the research department at the Dutch Central Bank, was the second speaker and stated that he does not believe in an upcoming Big Reset. While defending central banks, he argued that central banks are necessary in order to stabilize the currency and he sees five aspects that central banks should fulfill:

  1. central bank independence;
  2. central bank transparency;
  3. using monetary policy instruments to stabilize the economy;
  4. banking supervision of not only independent commercial banks, but of the whole economy. In his opinion, the central bank should supervise the entire economic system instead of primarily addressing individual institutions;
  5. macro-prudential policies to avoid crises.

Other speakers included Max Keiser, Stacy Herbert, Vit Jedlicka (president of Liberland), Stephan Antonopoulos, Simon Dixon, Joris Luyendijk, Prof. Antal Lekety and some others. Some wanted to go back to a gold-based monetary system, others truly wanted to reinvent money through crypto-currencies, and a few wanted the system to stay as it is structurally. As a voluntaryist, I was quite disappointed that the pro-crypto-currency speakers saw it as a means to democratize society. I don’t fully understand what they mean with the word ‘democratize’ and how crypto-currencies could do that, but I’ve noticed that those speakers saw it as a means to make our political system more democratic. Maybe, they mean ‘anti-authoritarian’ as crypto-currencies would indeed limit the monetary powers of the government and the central bank. However, I’ve always understood it as a de-political money system that is disruptive enough to do away with the myth that government is needed at all to stabilize our currency, and hence that it would bring us closer toward a voluntaryist society – not toward a more democratic system. A democratic system, in my opinion, means a system in which the majority rules. Crypto-currencies give every individual the full ownership of their money. Thus taking personal financial affairs entirely outside the scope of government meddling, also if that government is democratically chosen.

BC’s weekend reads

  1. Hongcouver
  2. Making a Case for Bishops’ Authority in the Second and Seventeenth Centuries
  3. Global Warming is not a Crisis
  4. Dondante
  5. From masterpieces to selfies (top link)

From the Comments: Trying to Make Sense of Left and Right (Again)

This one is from yours truly, in a delightful back-and-forth with Dr Amburgey:

Ok. Clearly we need to be using terms that mean the same things to both of us. It’s your thread so tell me what constitutes ‘The American Right’ and what constitutes ‘The American Left’. Once we have a common understanding of terminology we can resume the discussion.

I have been working on a post about this very topic, and this conversation is helping me immensely. Thanks.

First, I think there is a distinction that has to be made between the ‘ideological’ and the ‘political’. The ideological rests atop a higher tier than does the political, like a pyramid. The ideological tier houses philosophical and moral insights, which are produced through the academy and in think tanks. The political tier houses organizations dedicated to parties (I think that factions and parties are two different components of a society, and that factions represent a tier below the ideological and above the political).

The American Right is ideological. The GOP is political. (Factions would consist of actors like bureaucracies, trade unions, industrialists, banks, medical doctors, etc., but can also be used to describe intra-party, or coalitional, differences) The American Right is currently home to three broad ideologies: neo-conservatism (elite and moderate), libertarianism (elite and radical), and traditionalism (populist and radical). I emphasize ‘currently’ because neoconservatives and libertarians were at one point Leftist factions in US history, and could easily end up there again in the near future. In many post-colonial and post-socialist societies, for example, both of these ideologies are considered to be on the Left.

The American Left is currently home to three broad ideologies: fascism, communism, and racism. Just kidding! The three ideologies are, I would argue: New Deal liberalism (elite and moderate), technocratic liberalism (elite and radical), and progressivism (populist and radical).

New Deal liberals and neo-conservatives are only moderate because they are dominated by Baby Boomers and Baby Boomers dominate the population at the moment. Libertarians and the technocrats are broadly younger and more cerebral (hence the radicalism). Traditionalism and progressivism are ideologies for the vulgar mob, of course.

Ideology, using the pyramid analogy, trickles down from the top tier into the factional and political tiers. This is just how it works in societies governed by laws rather than by men. Libertarians have been dominating the ideological discussion for the last 30 years or so, and the technocrats have been playing defense, largely because they are politically aligned – wrongly, of course – with socialism’s failure, but also because technocrats are just libertarians who don’t have the chutzpah to become non-conformists.

Successful politicians from the Democrat Party have been trying to balance their New Deal liberalism with the insights of their technocratic betters, but have been calling themselves ‘progressives’ because of the populist narrative and the fact that they need the votes of the vulgar mob to be successful.

I already don’t like this because I don’t think the Left deserves to be considered ‘liberal’ at all, and there is also the shortcoming of being strictly American in scope. We have got to think in internationalist terms when we discuss power and liberty. NOL has tried to hash this whole issue out before, by the way, and numerous times.

Muslim Refugees in Perspective

In a companion essay, “Hypocrisy!,” I pointed out that there was a good fit of preferences between the current crop of refugees from Syria and from Iraq and the countries one would reasonably expect to be giving them asylum. Muslim countries, with a small number of brave exceptions don’t want them and the refugees – almost all Muslims -don’t want to go there anyway.

As you would expect because many people go through life on automatic, liberals, libertarians and Muslims join tongues to blame the United States for the current exodus. Sure thing, the US intervened in Iraq against the bloodthirsty tyrant Hussein after he violated several hundred times the cease-fire that put an end to the First Gulf War. (Note for those younger people who learned their history in public schools: In the First Gulf War, the US had led a coalition of about 50 countries – not including Israel – to roll back Hussein’s annexation of Kuwait. Yes, he started it. It’s the cease-fire to that first war that Hussein violated.) It’s not difficult to make the case that the US under Bush did a piss-poor job of re-organizing the Iraq it conquered after two weeks plus a sandstorm. It’s even easier to wonder why the Obama administration would just quit the country without attempting to leave a defense force behind (as in Korea, for example). Both the invasion and the failure to conclude its aftermath can reasonably be said to have caused major instability in Iraq and thereby, a flow of refugees from that country. (Personally, I still miss Saddam Hussein. He was a sweetie in his own way although much misunderstood.) But most of the current refugees seem to be from Syria. It’s also possible to argue that the US is responsible for the horrors there too. This time, it’s because it did not intervene into its home-grown civil war until recently. Worse, the US General-in-Chief declared a red line and ignored it when it was crossed with the gassing of civilians.

Nevertheless, it’s difficult to blame on the West, on America, the flow of emigrants from such countries as Eritrea, Somalia, Yemen, Sudan, even Senegal where there has not been any Western intervention. (Senegal obtained its independence in 1960, seamlessly, without a struggle with France, the colonial power.) Meanwhile Boko Haram (“Books are Forbidden”) in Nigeria is burning villages, kidnapping girls, raping and then, forcing them to become living bombs. What those countries have in common, of course, the peaceful ones that can’t provide for most of their population, and the others that are living hells is this: Coca Cola is sold in all of them, of course. Coca Cola is there everywhere, without exception; the Unites States’ malevolence yet again!

Conservative commentators on radio and on Facebook observe darkly that many or most of the migrants from the Middle East are of “military age,” perhaps portending a repeat of the many Muslim invasions of Europe ending only in the seventeenth century. Several comments are in order though I can’t make them in an orderly fashion.

First, a question lest I be accused of ignoring the issue: Will ISIS and other extremist Islamist groups use the exodus of Syrians and Iraqis to place undercover agents and terrorists in Europe. To ask the question is to answer it: Of course they will. Why wouldn’t they? It’s cheap and it’s easy.

Next: Many of the migrants are young men because, historically, everywhere, the first migrants are always young men. Second, they are of “military age” as some conservative observers pronounce breathlessly. Sure thing; many are fleeing the draft, precisely, a draft for a murderous war on in which they don’t believe. (A war many times more murderous than the Iraq war has been for Americans.) There is a third possibility that does not contradict the others and that casts a different light on the plausibility of these new migrants, these refugees being absorbed into European societies.

Many of the new migrants may be simply seizing the opportunity to flee from life in an Islamic society. (No, I don’t mean “Islamist.”) Here is the key: Islam maintains minimalist metrics about who is or isn’t a Muslim. By and large, if you were born in a Muslim family; if you are a male who was circumcised as a small child; if you don’t adopt another religion (at some risk to your life. See below) then, you are automatically a Muslim. No affirmative action is required, no behavior prescribed although some is proscribed: no alcohol, fasting in the day time and no daytime sex either – would I make this up? – for one month out of the year. With such lax standards, it would be amazing if many nominal Muslims were not lukewarm, or indifferent, or downright free thinkers.

With access to the Internet, the famed serenity of Islam may be indistinguishable from boredom. And the vaunted moral sternness of Islam may begin to seem like unbearable oppression: Ten lashes for a single beer (NOT in most Muslim countries, in some, it’s a simple fine)? Marriage to an indifferent-looking cousin without a chance to smell the flowers first. No rap, or little rap and in mental handcuffs. (I dislike rap myself; not the point.) And then, there is the shame even for individuals who are only reasonably educated: the shame of living in a less civilized part of the world with death as the penalty for conversion (not in all Muslim countries, perhaps rarely applied), the death penalty also for witches (uncommon, true, but happened recently in Saudi Arabia, and nowhere in the West, recently), death by stoning for adulterous women (not often applied but really calms amorous ardors); incidentally: adulterous = any sex outside of marriage, except in the Islamic Republic of Iran where two-week temporary “marriages” are encouraged. Remember also the grotesque sexual mutilation of little girls practiced on a vast scale in the Muslim world (only in some of it, SOME, and also practiced outside of it. And it’s NOT an Islamic practice; it just happens there a lot). And when young Muslim men in Yemen, in Somalia, and yes, in Syria and Iraq as well, hear that the unemployment rate among Muslim youths in France is as high as 30%, they think they are dreaming; they suspect a cheap propaganda trick: only 30%?

Just think about it. There are no doubt millions of Muslim youths who would do well in one of our colleges, who would get good grades, who would fit right in the coffee shop; the girls would even flirt with some of them. Many or most have some access to the wider world through the Internet and through movies. Some are rationalists not very different from your neighbor’s kids; some are much better rationalists than your neighbor’s kids if you live in Santa Cruz, California, for example (as I do). How much the meanness and the superstitions around such youths must lead to self-contempt and even to self-hatred when they realize that their own society is a lot like Europe was six hundred years ago? (To be fair, Europeans burned many more people alive, including thousands of witches, mostly older widows who owned some property, another story. It was then though. We have not done this for a long time.) There are many who would stay put otherwise for whom the sudden practical unlivability of their society pushes them over the rim, I would think.

There is a reason why I construct this frankly hypothetical view. If you dropped me in any French city, within an hour, I would be sitting with people with a Muslim first name and last name who would say this to me, “Why me, live where I – or my parents – are coming from? Are you out of your mind? Why would I want to live under the restrictions, sometimes under the gross oppression of a Muslim society? Don’t be stupid, I am French, I am a European, I am a Westerner.” (Incidentally, there is a remarkable autobiographical book in English describing the travails of a young Algerian’s multiple efforts to leave home for good. It’s called: Donkey Heart, Monkey Mind. It’s by Djaffar Chetouane.)

What about the Germans who have publicly promised to take in 800,000 refugees? (And who will probably seduce and bully other European countries to absorb an equal number between them, I would guess.) There are two ways to look at this, both valid.

First, everyone else has forgotten but the Germans themselves that in 1945 and 1946, there were millions of Germans on the roads of Europe, expelled from various countries, some in which they had lived for centuries, trudging on foot to a homeland they have never seen. Ordinary Germans have not forgotten the misery nor the giant successful efforts a ruined German deployed to give them roof and board, and work. More recently, when the hapless communist Democratic Republic of Germany collapsed from the inside in 1990, tens of thousands of “Osties” made their way to the West where they were generously accommodated too. “Been there,” many Germans think, “We did it under much worse circumstances. We can do it again.” Yes, the Germans have more compassion on refugee issues than other nations of Europe. Also, they know more, from the inside, about brutal dictatorships than do most other Europeans.

Second, as has been observed by many (I was scooped; I thought of it first!), there is Germany’s low fertility rate of 1.39 per woman. A low fertility rate has both proximate and long run consequences. In the long run, it means that you disappear as a people. In the shorter term – if and only if you have sturdy economy – it means that jobs go unfilled. This must be especially galling to Germans who have reasons to think that in every other way, almost alone among Europeans (almost), they have their act together. The Germans need bodies, preferably young bodies, now. And, they need children to pay tomorrow for the fairly generous benefits of the next retirees. Germans have good reasons to think favorably of mostly young men flooding into their country all reared up at no cost to them and ready to work. In addition, I garner from different press commentaries that many of the Syrian and Iraqi refugees are a different breed from the usual economic migrants. They seem more urban and better educated. (Many know English or French, some both.) It’s a cynical thing to say but this impression of middle-classness is re-inforced by the fact that they are able to pay the horrendous ransoms human traffickers extort from them.

Although Angela Merkel may have used the low German fertility rate argument as an afterthought, perhaps as a political way to make ordinary Germans amenable to the promise of accepting hundreds of thousands of refugees, it must have resonated among many Germans who can’t find employees or who are well aware of Germany’s demographic decline. Germany is not much worse off than other European countries in terms of fertility, incidentally. Italy is also at 1.39, Belgium at 1.55. None of the European countries pass the bar of 2.00 in the 2013 Eurostat. It’s generally accepted that the true replacement rate is 2.2 or 2.3 per woman, absent a catastrophe such as war or famine. Europe is disappearing before our eyes. Other European countries are less aware of their demographic decline because their economies are in bad shape and unemployment dominates every other issue in their collective narrative. As usual, Germany is ahead of the curve. (No, I am not stupidly, reflexively pro-German. Read my essay “the Best Meal and the Worst Meal Ever,” on this blog.)

Although immigration is almost always a net economic plus according to serious studies, it often carries a full load of negative social consequences. In this case, as I already mentioned, there is the near-certainty that Islamist terrorists will join the flood of good immigrants. But then, Germany will have hundreds of thousands of competent informants. (I believe the adage that good police work means having plenty of good informants.) I see a bad sign in the fact that many, most of the female refugees shown on TV wear the hijab, the head covering. It’s not required by Islam; it used to be uncommon in the major Muslim countries. The hijab directs you to a certain kind of retrograde Islam. It’s the kind of Islam where women must cover their hair in public lest they excite the lust of men and thus distract them from thinking of God. The hijab directs you to a culture where women in general are closer to the devil, where girls are poorly educated or not educated at all, where religious law is also civil law and it mandates that a woman’s testimony in court is worth only half a man’s testimony. A simple rule of thumb: If half an immigrant population must stay home, and it’s charged with rearing the next generation, it’s difficult for the whole immigrant group to assimilate or even to adapt. (Yes, I know, the parlous conditions for women I describe does not all, ALL, prevail in all Muslim countries.)

Second, it remains to be seen whether Germany will avoid again the curse for the second generation that is well demonstrated in France, next door. There, millions of immigrants mostly from North Africa, most of rural origin arrived with their sleeves turned up, ready to work, appreciative of the possibility of advancing themselves, of offering their children a better life than they could ever have back home. Their children, raised in France, end up sharing the sense of gloom common to most French young people but with a painful twist. They suffer additional disabilities, because of racism and because of Islamophobia to an extent, but also because they cannot but be incompletely socialized by their often illiterate immigrant parents. The young themselves don’t quite measure how much of a handicap reaching adulthood without benefit of a name, of family connections, of good adult examples constitute to succeeding in any society. (I do. You should read my book: I Used to Be French….) They only know they are getting the short end of the stick. Of course, the more stagnant the host society, the worse the handicap. Many of the children of appreciative immigrants accordingly become disaffected with the society where they live without really understanding why. This disaffection takes the form of drug abuse, of banditry, small and big, sometimes, seldom actually, of adherence to extremist creeds, for some, it’s of all three in turn. (The Charlie Hebdo terrorists, for example). The Germans have been there before however. They absorbed millions of Turks without experiencing much of this kind of mass alienation. Notably, in this case, they were stingy with citizenship and generous with employment opportunities, the reverse of the French formula.

We will see. Past the current immediate human suffering of the mass migration I am optimistic that Germany will keep its word and that other countries will be shamed into following the Germans. Our easy sense of doom often comes from a general human inability to contemplate the alternative. A mass of Syrians and some Iraqis of military age flood Europe. They may be viewed as a threat or you may think of them as so many fighters ISIS won’t force into its ranks or murder, of millions of children who will not grow up to be fanatics.

I am not losing track of the possibility that three dozen additional warplanes in the Middle East would do more to solve the present refugee crisis than all the European bumbling to absorb refugees.

Note: I did not say a thing about the US and Mexican immigrants, legal or illegal.

L’Anarchisme et la recherche de la liberté: recommendations des Déserts du Nouveau Monde.

Je suis vieux mais j’ai quand même un copain lycéen à Paris. Je l’ai rencontré un Quatorze Juillet justement, en Californie où je vis depuis déjà longtemps. Ugo a quinze ou seize ans. Il me dit par courriel qu’il lit Bakounine et Kropotkine. Cela me fait plaisir à deux titres. D’abord, cela signifie qu’il aéchappé à la malédiction du relent de totalitarisme collectiviste qui habite toujours de nombreux Français comme une croûte en Octobre colle encore aux lèvres des revenus de la colonie de vacances du mois d’Août.

La deuxième raison de ma réjouissance c’est que de telles lectures ne peuvent qu’allonger l’aune à laquelle Ugo mesurera la liberté. (J’allais dire la “liberté individuelle” mais, il n’y en a pas d’autre, c’est une mauvaise manie verbale.) Il me semble en effet que quand on vit dans le brouillard d’une societe étatique comme la France il doitêtre difficile seulement de reconnaitre le simple fait de liberté. Dans une telle société, on doit être menéinconsciemment à une mesure de la liberté étriquée pour la simple raison que les nombreux “droits” des autres ne peuvent que limiter naturellement, automatiquement les siens propres.

L’un de ces soi-disant droits est le droit de vivre correctement sans avoir jamais à s’efforcer, c’est-à-dire aux crochets d’Ugo et d’autres qui ne rechignent pas à travailler ou à inventer.

Mais, je souhaiterais qu’Ugo complète son éducation d’une manière spécifique. Il n’y a pas de vraie liberté là oúl’existence même dépend du bon vouloir d’un seul employeur, soit-il une grosse entreprise minière (comme dans Zola) ou l’Etat lui-même, ou encore, une entreprise formellement de statut privé mais menottée pas la réglementation.

En fin de compte, la liberté est garantiee par la possibilitéd’entrer librement dans des contrats entre égaux. Pour ce faire, il faut commencer par comprendre ce qu’est un marché. Or, mon observation des media français et mes conversations assez fréquentes avec des membres de la classe hexagonale instruite me font soupçonner qu’il est pratiquement impossible à un jeune Français d’aujourd’hui de se familiariser avec le concept de marché à travers uneéducation normale.

Je prescrirais donc bien à Ugo le grand document d’origine:La Richesse des nations, du philosophe moral Adam Smith mais je crains qu’un ouvrage publié en 1776 lui soit un peu rebuttant par son language. Je lui préconise, à la place, de lire n’importe quoi de l’économiste Autrichien et lauréat du Nobel (1976), Friedrich Hayek. .Cela pourrait etre La Route de la servitude ou presque n’importe quoi. (“La Route….” est le livre que tous les totalitarismes on hai et interdit.) Ceci,après, peut-être, une courte introduction par le Français Fréderic Bastiat (que les idéologues bêtes et méchants ont réussi à pratiquement éliminer des programmes scolaires français.)

Bien sur, j’attends qu’en retour, Ugo m’envoie ses propres conseils de lecture, qu’il contribue à m’ éviter d’être trop ringard, par exemple.

BC’s weekend reads

  1. The debt of a Pope called Francis to past Syrian refugees, Part 1 (be sure to check out parts 2 and 3, too)
  2. Ten Things I Want My Children To Learn From 9/11 (and also “Ten (or So) Lessons of 9/11“)
  3. Hellburners Were the Renaissance’s Tactical Nukes
  4. The Inevitable Divorce: Secular France and Radical Islam
  5. How Petty Traffic Fines Ruin Lives in Milwaukee (and Everywhere in America)
  6. Edwin and Barry both have excellent posts on current events in Europe and the Near East (Jacques has a related post); be sure to scroll through all the comments in their respective threads…