The Moulin Rouge, San Francisco, a Fragment of Memoir

When I was 22, I lived at the Moulin Rouge, a French bar in North Beach, San Francisco, California. Not all the time, only when I was not hitch-hiking to and from the community college with almost a view on San Quentin Prison, and when I was not attending classes there, or working. The Moulin Rouge was run by a spiffy well-coiffed older French woman. I always thought she was a retired madam from Marseilles. I don’t say that to blacken her name for she was a real sweetheart. And anyhow, I don’t know this for a fact.

I was a good student who did his assignment efficiently and who drank too much every night at the Moulin Rouge. It was a good plan to meet new people, some who were interesting, some who could be useful. The regulars were a mixture of French immigrants and of American Francophiles. Some of the latter were single women of an uncertain age in the low light of the bar. I met a middle-aged French woman who owned an expensive hairdresser’s shop and who tried to make me her chauffeur/gigolo. She failed (we failed,I failed).

I had emigrated to the US with no skills and no money. That’s no money, not a cute way to say “little money.” Through the Moulin Rouge, I landed a succession of part-time jobs, not all as unimportant as you might imagine. One job was editing a small, largely local French language newspaper. I always wanted to make it more hifallutin. The publisher, a Frenchman who only lived in San Francisco part of the year, objected. We had a final falling out when he fired me with these exact words, “We don’t need intellectual shit in this paper. Fifty per cent of our readers are Basques; the Basques are stupid. I know because I am Basque.” ! At the time, I slept in a small room in a Basque hotel precisely, also in North Beach. The other tenants were Basque shepherds on vacation from their lonely jobs in the Sierras. They did not seem stupid to me although they were not what you would call real literati. Plus, they cooked great six-egg plus smoked ham breakfasts.

A middle-aged gay customer who was an interior decorator – I am not kidding – heard of my predicament. He introduced me to a rich old lady who would have me occupy her basement apartment on Pacific Hill and pay me a little stipend in return for “some work.” She called the lodgings: “the Chinaman’s flat.” (Again: Would I make this up?)

The old lady, a widow, drove a hard bargain. She thought she had a right to be demanding because she often brought down for me her surplus cooked vegetable. That was a misplaced concern, of course: Young men use beer for both fiber and vitamins. I did not enjoy the job of a houseboy much and bringing girls down into the basement was hellishly difficult because the old lady never slept. She did not even take naps in the afternoon, I know this for a fact. After a couple of months, she fired me. She told me to my face she would replace me with an Asian boy who would be “more docile.” It made a lot of sense since her main offer was the “Chinaman’s flat.”

I kept spending my long winter evenings at the Moulin Rouge. I kept meeting interesting characters there. One was a Frenchman in his forties who told me he was a pirate on leave. He said he owned an old Navy PT boat with a machine gun he used to prey on Chinese ships in the Celebes (Indonesia). “How come you are not in prison for 20 or 25 years? How about the police, the local coast guard, the navy?” I asked. “Nobody cares about the rich Chinese in Indonesia; besides, we never, never kill anyone. We wave big guns at them, my crew and I, and they always pay up. Sometimes, they bargain with me. I am not unreasonable,” he explained. He invited me to join him in a piracy campaign on my next summer vacation. I told him that I would like too but I would probably have to study in the summer too. I had my values down straight: junior college before piracy.

Evidently, the pirate had detected my criminal fiber before I had. “How about spring break – he said – I have a contact in Columbia. We could go quickly and smuggle back pre-Columbian artifacts. I know some collectors. Actually they come to his bar once in a while. I have heard you speak Spanish. Your Spanish is good. You could be very helpful and make enough money to support yourself for a whole year.”

Before I had time to really consider his tempting offer, he changed the subject. He told me that today was “El Dia de la Raza.” I did not know what that was then. Anyway, it’s not really about race. It’s just a day when Spanish speakers from all countries celebrate their “hispanidad,” whatever that is. He said there was a big dance at the Masonic auditorium. He added that it would be full of tarted-up Hispanic women on the make. (Here is a rule of thumb: Like a hunter who has lovingly cleaned and oiled his gun, a woman who has gone to great expenditure of time and money to make herself sexy for a special event hates to return empty-handed.)

So, we went to the ball and it was just as he had said. For some reason, women visibly outnumbered men. Now, a neutral, scientific note about Frenchmen: They may look like any northern Europeans but many can dance like Puerto-Rican pimps. The reasons why this is are interesting but too complex for this story. In this case, we both also spoke Spanish with ease which is not uncommon among French people. Quickly, the pirate and I did very well. I met a short but shapely brown, black-eyed Central American woman with hair down to her waist. She wore a bare-back dress and her skin under my right hand was the smoothest and the softest I had ever felt. She liked that I was twice her size and she raised herself on her toes to reach me. After a decent hour or so, she took me to her apartment in a taxi she called herself. Turned out she was twice my age. CUT! This may be read at a family gathering!

My friend the pirate had met a very sweet Mexican-American woman half his age at the dance and he had immediately fallen hard for her. She had the kind of sweetness that caused her to keep worrying about who was doing my ironing since I was a bachelor living alone. She thought that was not right. The pirate told me it was time for him to abandon his evil practices and to return to France where his old mother was still alive. He and his Mexican-American sweetheart began traveling West to East toward our shared native country. The girl had never been outside the Bay Area. Together, they hitched-hiked and worked their way on ships toward Singapore. That included a two-month stay in Australia where the pirate made good money killing rabbits. Then, he worked as a cook and she as a maid on a freighter that took a few passengers. They made it to France by various means in a little under a year.

“Why stop in Singapore?” I asked the pirate when I met him and Maria again briefly in Paris. “Why, it has the biggest and the most beautiful Catholic cathedral in Asia. That where I wanted to marry Maria. That’s where I married her,” he said simply. Real or not, the pirate had great style. I am sorry I don’t know what became of him or her. I imagine they lived in a nice farm in the beautiful French countryside and that they have had many children who look like pretty Maria.

Soon afterwards the Dia de la Raza, I moved to Sausalito where I had found a gardener’s job on the sole strength of my French name. After that, I only returned to the Moulin Rouge infrequently. In Sausalito, every night, I would attend the No Name Bar, right downtown. It was an intellectual sort of place. There was wallpaper in the restroom that showed scenes from the Trojan War. Someone had drawn a bubble coming out of a hoplite’s mouth with words in Greek letters. Another graffito said: “Schwartz is a neo-classic.” Schwartz must have been devastated! Soon, I found that the Moulin Rouge had played out its part in my destiny. I was steeped in American life and on my way to becoming a scholar, not a little thanks to the No Name Bar. Staying on the academic straight and narrow was not always easy though because of the pirate’s bad example.

Nightcap

  1. In defense of Jeff Sachs, but… Branko Milanovic, globalinequality
  2. The continuing mystery of the Belt and Road Yuan Jiang, Diplomat
  3. The Silk Road and re-globalization Pechlaner & Thees, global-e
  4. The Hawley-Smoot Tariff and the Great Depression David Glasner, Uneasy Money

Nightcap

  1. Free speech is more important than ever Niall Ferguson, Quillette
  2. Is it racist to expect black kids to do real math? John McWhorter, It Bears Mentioning
  3. Revolt of the three feudatories Wikipedia
  4. War and trade in the peaceful century (pdf) Karlsson & Hedberg, EHR

Seljouk!

His ancestors had fought their way from Central Asia slaughtering, looting, burning, and worse. At night, they often slept in the saddle, on their horses that looked as wild as they did.

He was a large, muscular man with a fierce face, a slick mustache, and hairy forearms. First, he put his long sharp blade to my throat, then, he set me on fire; finally, he tried to break my cervical vertebrae with his bare hands.

Tesekkur ler,” I said, handed him fifty million liras.

I had not had the time to visit the barber before leaving California. That’s how I got a straight razor shave and haircut, my ear and nose hair singed with flaming alcohol, and a vigorous cricking of the neck to finish. It all happened in the open air, in a street lined with rug shops, in Seljouk, the tourist town next to the great ancient archaeological site of Ephesus, Turkey.

Nightcap

  1. Paul Krugman and public urination Irfan Khawaja, Policy of Truth
  2. Federal-republican earth constitutions (pdf) Daniel Deudney, TGSWP
  3. Right-wing folk politics Chris Shaw, Libertarian Ideal
  4. Why autocracy in Russia always fails Rodric Braithwaite, Spectator

Nightcap

  1. Cancelling Dr Seuss Jason Brennan, 200-Proof Liberals
  2. Post-socialist migration Azra Hromadžić, Fieldsites
  3. Presidential war powers Andrew Desiderio, Politico
  4. Cancelling the Muppets Paul du Quenoy, Critic

Cave Paintings and Elementary Science

This is a travel story of sorts of travel through time, to an extent. Be patient.

Directly to the east of Marseille, the second largest city in France are a series of beautiful, narrow coves, like fjords, situated in a sort of desert. They are called “calanques” in French. They are accessible only by sea or through a long walk on hot rocky ground. Although they constitute a separate world, the calanques are close to Marseille, as the crow flies. They used to be a major fishing resource for the city. You can be sure they were never forgotten during the 2600 years of the city’s existence. Also, the city was founded by Greeks and thus, it always had a literate population, one that kept records.

Marseille and its environs are where SCUBA was invented, the first practical solution to the problem of men breathing underwater. Accordingly, the calanques were always and thoroughly explored after 1950. In 1985, one of the co-inventors of SCUBA discovered a deep cave in one of the calanques. He couldn’t resist temptation and swam into it until he reached a large room emerging above the water level. I mean a cave where he could stand and breathe regular air. The explorer’s name was Cosquer.

Cosquer visited several times without saying a word about his discovery. Soon, he observed dozens of beautiful wall paintings belonging to two distinct periods on the upper walls of his cave. The art of the first period was mostly hand imprints or stencils. The art of the second, distinct period, comprised 170-plus beautiful animals including many horses, ibex and others mammals, also fish, seals and other sea creatures. Archeologists think the painting of the first period were done about in about 25,000 BC, those of the latter period date back to about 18,000 BC, they believe.

Today, the entrance to the cave is about 125 feet below sea level. We know that paleolithic men did not have SCUBA. They simply walked into the cave for their own reasons, with their own purposes in mind. Thus, the sea level was at least 125 feet lower then than it is today. The people of Marseille never saw the cave. They would have written about it. There would be records. They would not have forgotten it. They simply did not know of its existence during the past 2600 years or so, since the foundation of their city.

Sometime in the past 20,000 years, the sea rose 125 feet or more. That’s an amplitude several times greater than any of the direst predictions of the official United Nations Intergovernmental Panel on Climate Change for the next century. The IPCC squarely blames a future ocean rise (one that has not been observed at all, yet) on abnormal emission of several gases, especially CO2. These abnormal emissions in turn, the IPCC affirms, are traceable to human activities such as driving cars and producing many useful things by burning fossil fuels.

It seems to me that basic good science requires that causal analysis begin with a baseline. In this case, it would mean something like this: In the absence of any burning of fossil fuels, the ocean rose 125 feet sometimes during the past 20,000 years. Let’s see if we can find evidence of the ocean rising above and beyond this order of magnitude since humanity began burning fossil fuels in large quantities.

The conclusion will likely be that nothing out of the ordinary happened. Hence, fossil fuel emissions are probably irrelevant to this particular issue. (This leaves open the possibility that such emissions are odious for some other reason. I mean CO2 is plant food. Too much CO2 may promote weed growth in our fields and gardens.)

The ocean is not currently rising and if it is, the existence of the Cosquer cave suggests that it’s rising to a minuscule degree. Let’s keep things in perspective. Let’s discard openly and loudly every part of the building of a complex hypothesis that does not work. Those who don’t take these obvious cleansing measures simply have a lot of explaining to do. They should not be allowed to wrap themselves in the mantle of science while violating Science 101 principles.

One of the conceits of the Warmist movement (re-branded “Climate Change” something or other) is that you don’t have a right to an opinion unless you possess a doctorate in Atmospheric Science. By this dictate, anybody who has to keep a job, raise children, or pay a mortgage is out of the discussion. This is the typical posturing of intellectual totalitarianism. Note what’s missing in the story above: It says nothing about what did cause the ocean to rise between 18,000 years ago and today. It’s enough to know that whatever it was, it was not the massive burning of fossil fuels. And, if factors other than burning fossil fuels explain large rises in sea level, they should first be applied to a tiny rises in sea rises before other explanations are tried. That’s just good practice.

The Cousquer cave story is now complete as is. Yes, that simple.

Elective Affinities in Institutional Design, 1951

[Note: this is a piece by Michalis Trepas, who you might recognize from the now-defunct NOL experiment “Be Our Guest.” Michalis is a newly-minted Notewriter, and this is the first of many more such pieces to come. -BC]

The Treasury and the Federal Reserve System have reached full accord with respect to debt-management and monetary policies to be pursued in furthering their common purpose to assure the successful financing of the Government’s requirements and, at the same time, to minimize monetization of the public debt.

– Joint announcement by the Secretary of the Treasury and the Chairman of the Board of Governors, and of the Federal Open Market Committee, of the Federal Reserve System, issued for release on Mar. 4, 1951

The Allied High Commission appreciates that these responsibilities [for the central bank] could not, without serious inconvenience, be given up so long as no legislation has been enacted establishing a competent Federal authority to assume them.

– Letter from the Allied High Commission to Chancellor Adenauer, Dated Mar. 6, 1951


A Financial Fable by Carl Barks, a short story starring Donald Duck and his duck-relatives, was published in Mar. 1951. It featured concepts like supply/ demand, money shocks, inflation and the ethics of productive labor, from a rather neoclassical perspective. Read today, it seems out of synch with the postwar paradigm of a subordinated monetary policy to the activist state and, more generally, with what came to be known as the Golden Age. As you have already probably noticed, this March also marks the 70th anniversary of two more instances against the currents of the time. It was back then that two main traditions of central bank independence – based on political consensus and judicial (“Chevron”) deference in the case of US, based on written law and judicial review in the case of Eurozone (read: Germany) – were (re)rooted. In the following lines, I offer an outline focused on institutional interplay, instead of then usual dramatis personae

The first instance is the well-known Treasury – FED Accord. Its importance warrants a mention in nearly every institutional discussion of modern central bank independence. The FED implemented an interest rates peg – kind of capping the yield curve – in 1942, to accommodate public debt management during World War II. The details were complicated, but we can still think of it as a convenient arrangement for the Executive. The policy continued into the early 50s, with the inflationary backdrop of the Korean War leading to tensions between a demanding Executive and an increasingly resistant central bank. Shortly after the dispute became more pronounced, reaching the media, the two institutions achieved a compromise. The austere paragraph cited above ended the interest rates peg and prompted a shift of thinking within – and without – the central bank, on monetary policy and its independence of fiscal needs.

The second one is definitely more obscure, and as such deserves a little more detail. The Bank deutscher Länder (BdL) was established in 1948, in the Allied territory of occupied Germany. It integrated central banking institutions, old and new, in a decentralized fashion á la US FED. Its creation underpinned the – generally successful – double reform of that year (a currency conversion with a simultaneous abolition of price controls), which reignited free market forces (and also initiated the de facto separation of the country). The Allied Banking Commission (ABC) supervised the BdL and retained the sole right to issue direct instructions, a choice more practical than doctrinal or ideological. As the ABC gradually allowed a greater leeway to the central bank, while fending off even indirect German political interventions, the resulting institutional setting provided for a relatively independent BdL. 

In late 1950, the Occupational Authority wanted out and an orderly transfer of powers required legislation from the Federal Government. Things deadlocked around the draft of the central bank law, the degrees of centralization and independence being the thorniest issues. The letter cited above, arriving after a few months of inertia, was the catalyst for action. The renewed negotiations concluded with the “Interim Law” of 10 Aug. 1951. The reformed BdL was made independent of instructions from the Federal Government, while at the same time assuming an obligation to support government’s general economic policy – without prejudice to its monetary duties. 

This institutional arrangement was akin to what the BdL itself had pushed for, a de jure formalization of its already de facto status. Keep in mind that the central bank enjoyed a head start in terms of reputation and experience versus the Federal Government, after all. But it can also be traced to the position articulated by the free market-oriented majority in the German quasi-governmental bodies back in 1948, a unique blend of explicit independence from/ cooperation with the government. The 1951 law effectively set the blueprint for the final central bank law, the Bundesbank Act of 1957. The underlying liberal creed echoed in the written report of the Chairman of the Committee for Money and Credit of the parliament:

The security of the currency… is the highest precondition for the retention of a market economy, and hence in the final analysis that of a free constitution for society and the state… [T]he note-issuing bank must be independent of these [political bodies] and subject only to the law.

The Financial Fable was the only story featuring Disney’s characters that made it to an important history of comics book, published in 1971. Around that time, the postwar consensus on macroeconomic stabilization policy was reaching its peak. A rethinking was already underway on the tools and goals of monetary policy, taking it away from the still garbled understanding of the period. It took another decade or so for both sides of the Atlantic to recalibrate their respective monetary policies. The accompanying modern central bank independence, with its foundations set in 1951, became a more salient – and popular – aspect a bit later.

Nightcap

  1. Why free speech matters Andrew Doyle, spiked!
  2. Thinking the worst of ourselves Jackson Arn, Hedgehog Review
  3. Feyerabend: Westernization and culture Bill Rein, NOL
  4. Did America have a founding? Jeff Polet, Modern Age

Nightcap

  1. (De)centralized law-making and climate change Josephine van Zeben, SSRN
  2. A defense of maths in economics Chris Dillow, Stumbling & Mumbling
  3. The end of the world John Guzlowski, North American Review
  4. Small business in the urban riots of the 1960s (pdf) Jonathan Bean, TIR

Nightcap

  1. Taiwan as the world’s newest flashpoint Blackwill & Zelikow, War on the Rocks
  2. Witch hunts, economics, and the Holy Roman Empire Johannes Dillinger, Aeon
  3. On deserts Tariq al Haydar, Threepenny Review
  4. System, empire, and state in Chinese IR (pdf) Yongjin Zhang, Review of Int’l Studies

Nightcap

  1. What did John Calvin think about economics? Steven Wedgeworth, Calvinist International
  2. The ethnocultural borderlands of early Maoist China Benno Weiner, Age of Revolutions
  3. Burning books Akram Aylisli (interview), Los Angeles Review of Books
  4. Ivy League English departments and low culture Mark Bauerlein, Modern Age
  5. But Maliki was supported both by Iran and by the United States.” John Jenkins, New Statesman

Nightcap

  1. Cancel Neera Tanden Irfan Khawaja, Policy of Truth
  2. Magical thinking and economic growth Branko Milanovic, globalinequality
  3. The Bird Juan Cárdenas, Southwest Review
  4. On cosmopolitan humility and the arrogance of states (pdf) Luis Cabrera, ISPP

Nightcap

  1. A liberal case for seapower? Caverley & Mitchell, WOTR
  2. Catastrophism and cycles Chris Shaw, Libertarian Ideal
  3. The Left’s culture war rebranding Shant Mesrobian, AA
  4. The voice of the Anglo-Saxons NEO, nebraskaenergyobserver

Nightcap

  1. Noise, interests, and democracy Chris Dillow, S&M
  2. Meritocracy and its discontents Wilfred McClay, Hedgehog Review
  3. Something must be done Lee Jones, Disorder of Things
  4. Nuclear power and the environmentalists Scott Sumner, EconLog