political thought

Quentin Skinner on Liberty and Security

Brandon Christensen Current Events, Liberty , , , , , , ,

I think it very important that the mere fact of there being surveillance takes away liberty. The response of those who are worried about surveillance has so far been too much couched, it seems to me, in terms of the violation of the right to privacy. Of course it’s true that my privacy has been violated if someone is reading my emails without my knowledge. But my point is that my liberty is also being violated, and not merely by the fact that someone is reading my emails but also by the fact that someone has the power to do so should they choose. We have to insist that this in itself takes away liberty because it leaves us at the mercy of arbitrary power. It’s no use those who have possession of this power promising that they won’t necessarily use it, or will use it only for the common good. What is offensive to liberty is the very existence of such arbitrary power.

Read the whole interview. Dr Skinner is an eminent scholar in the history of Western thought, particularly liberal thought (though I seem to remember reading a book by him on Marx…). Although I don’t think he is an outright libertarian, he is definitely a civil libertarian and in the interview he seems to hold the same view of corporations that most libertarians have.

I guess it’s worth noting here that liberalism and libertarianism are basically the same thing (liber is a Latin word that means ‘free not slave’). In the US, conservatives are actually conserving one branch of liberal thought, and liberals are holding down another branch of liberal thought. This is true in Canada and Australia/New Zealand as well, but in much of the rest of the world, conservatives are monarchists and Leftists are fascists of one stripe or another.

Does this make sense? If not, you know where the ‘comments’ section is!

The Zimmerman Verdict, Racism and Trial by Jury

Brandon Christensen Current Events, Law, Liberty , , , , , , , ,

First of all, I have to admit up front that I had not been following the Zimmerman trial at all until the Not Guilty verdict flooded my Twitter feed and Facebook page. The case was just too common, too parochial and had attracted the type of Americans who normally don’t read the more cerebral musings found on this blog (if you get my drift).

I knew it was racially-charged, and that it was taking place in the South, but other than that I had really been in the dark about the relevant details. Nevertheless, you’re gonna get my two cents.

Here are the details that I have found relevant. Some of them may not, at first glance, seem relevant because they don’t even pertain to the Zimmerman-Martin case at all, but stay with me:

  1. George Zimmerman identifies as a Hispanic, not a white person, and is a registered, tried-and-true member of the Democratic Party. I bring this up first and foremost because race in this country has become an odd thing, to say the least. Perhaps it always has been. See Dr Delacroix’s ethnographic musings on race in America here for more on race in the US.
  2. In Jacksonville (also in Florida), a black woman was sentenced to 20 years in prison by a judge (not a jury) for firing warning shots at her estranged (and black) husband. It is unclear if the woman had a prior criminal record.* She was seeking a restraining order against the man and her defense team used the same “Stand Your Ground” laws used by Zimmerman’s team.** The trial was taking place at the same time as the Zimmerman one.
  3. In Miller Place, an affluent, predominantly white hamlet of Long Island in New York City, a black man was convicted by a jury of killing an unarmed white teenager who showed up at the black man’s house in the early hours of the morning and was threatening to assault the man’s son. The white teenager, now dead, had been friends with the black man’s teenage son.

All three of the verdicts were handed down over the weekend. I take away a couple of things about American society from these three cases. Firstly, the only white person involved in any of these cases directly was an unarmed teenager who got shot in the face. Secondly, America still has a long way to go before racism becomes more irrelevant than relevant. Jim Crow ended in the late 1960s, but its legacy of state-sponsored racism lives on in a number of ways that I don’t want to list here (feel free to do so in the ‘comments’ section).

Thirdly, and perhaps more importantly, I think that, were the woman from Jacksonville to have received a trial by jury (and it is still unclear to me why she did not get this constitutional right), she would have been found Not Guilty. Given this speculation, and given the large amount of ignorance about each of these cases on my part, I still have to conclude that the juries made the right decision.

Tocqueville once wrote about the unique trial by jury system found in the United States and argued that it was the jury itself which guaranteed liberty and freedom in the United States. Were this unique system ever to be removed from the legal system, Tocqueville mused, it would signify the beginning of the end of the American experiment in self-government. The right to be judged by one’s peers, instead of by a member of the court, is a right too few Americans appreciate enough. The trial by jury is not perfect, not by a long shot, but it is also no accident that liberty, tranquility and prosperity reign prominently in the few societies where it has been implemented.

*[Update: the woman had no prior criminal record]

**[Update: the Zimmerman team did not use the “Stand Your Ground” law of Florida]

Libertarianism and Psychology

Fred Foldvary Liberty, Philosophy , , , , , , ,

by Fred Foldvary

Recently there have been a stream of negative critiques of libertarianism. All of them are misunderstandings.  It seems that these critics are just dressing up their antagonism with pseudo-scientific textiles.

The latest attack is in Psychology Today. Peter Corning, Ph.D., asks and answers “What’s the Matter with Libertarianism?” under the rubric “The Fair Society.”

He says, “The libertarian model of individual psychology is grounded in the utilitarian, neo-classical economics model of ‘Homo economicus,'” by which he means selfish economic man. Corning provides a couple of quotes by Nozick and Dawkins, but no general evidence that such is the viewpoint of most libertarians.  Is there a survey?  Is there  inductive logic leading to this conclusion? No, there is nothing. And this is supposed to be a scientific finding of a scholarly psychologist.

He cites the Wealth of Nations by Adam Smith, but is evidently unaware of Smith’s other book, The Theory of Moral Sentiments, in which Smith explained the other human motivation, sympathy for others.  Most libertarians that I know personally or from writings believe that it is quite good to be benevolent.

Perhaps Corning is confusing libertarianism with an extreme version of Randian Objectivism. He cites Ayn Rand as writing “Man’s first duty is to himself.”  But libertarian philosophy posits no such “first duty.”  The only libertarian moral duty is to avoid coercive harm to others.

Some libertarians are “anarcho-capitalists” who seem to envision an atomistic society of individuals contracting with protective agencies.  But libertarianism includes the communitarian vision of consensual communities with collective goods.

Corning claims that “libertarians generally have no model of society as an interdependent group with a common purpose and common interests.”  But no libertarian denies that society is interdependent. What is denied, and properly so, is that all the persons in a country have some common purpose and interests.  A multicultural society such as the USA consists of many interests, sometimes in conflict.  The interest of a thief clashes with that of peaceful victims.  If libertarianism is applied to society, the diverse interests can co-exist, the rule being that one may not force one’s interests on others.

Corning then notes that corporate interests sometimes perpetrate malfeasance. Yes, and if they commit fraud, that is theft, and libertarian policy would be to punish this.

He writes, “our first collective obligation is to ensure that all of our basic needs are met.” Now we see his political agenda.  Corning is a statist collectivist who favors the governmental welfare state. There is no abstract moral collective obligation. All obligations are individual. There can be a group with a mutual contract that then creates a collective obligation, but only from individual delegation.  As to basic needs, libertarian policy enables people to apply their labor and keep all the wages from that, which enables them to provide for their needs.  It is today’s statist restrictions and taxes that deprive workers of the ability to obtain their needs.  The few adults unable to work would get charity. The mass poverty of today is caused by government, not by the non-existent free market.

Evidently Corning believes that a libertarian world would be too selfish to care about the few who fall into misfortune.  But there is no evidence that greater freedom results in greater selfishness in the sense of not caring about others.  So here we have an article that seeks to apply psychology to an ideology, but with no evidence and with flaws in logic.  Psychology here is being applied as a cover for ideological views.  Has this been peer reviewed, or are the peers just as biased and lacking in scientific principle?

The Decline of the State?

Brandon Christensen Current Events, Links , , , ,

From the Atlantic:

Health care for the world’s poorest and human rights for the oppressed as private-sector businesses? Where there’s money to be made, a commercial alternative will emerge. But core state enterprises are subject to increasing non-commercial competition, as well. Many in southern Lebanon willingly receive social services and other incidents of modern government from the terrorist group Hezbollah rather than from the official government. Al-Qaeda presents many Islamic radicals with an even more extreme — and arguably more effective — non-territorial alternative to the nation-state for purposes of waging war.

The whole thing is interesting throughout, though I don’t agree with the author that virtual states are somehow replacing traditional states. I don’t think we’ll see the disappearance of the state anytime soon either. What will happen, I think, is that governments will become more minarchist in nature as markets simply overwhelm the crummy services that governments essentially force on people using their own extracted money.

What I’ve Been Reading

Brandon Christensen Books, Current Events, History , , , , , , , ,

Hello all. Apologies in advance for not posting more often since graduation. I’ve been reading a lot of books lately, rather than stuff on the internet, so I haven’t had much to link to lately.

Here is a list of a few books I have been working on:

  • 1493: Uncovering the New World Columbus Created by the science journalist Charles C Mann. I know I’ve blogged about this book before, but I’ve finally got a little bit of free time to hunker down and read the whole thing. I’m about halfway through and it’s really good.
  • Mastering Space: Hegemony, Territory and International Political Economy by the Marxist political geographers John Agnew and Stuart Corbridge. This is a pretty crummy book, but it was recommended because of some good critiques of the IMF and the World Bank that it supposedly has. I’ll keep ploughing through and hope for the best.
  • The Embarrassment of Riches: An Interpretation of Dutch Culture in the Golden Age by the historian Simon Schama. This is a very well-written book about Dutch culture (not Culture) in the seventeenth century and so far I have not been disappointed. Schama eschews the political and economic aspects of the Dutch republic in favor of examining the everyday lives of its citizens.
  • Democracy in Botswana which is edited by John D Holm and Patrick Molutsi. I picked this up for a research project I was doing last quarter and have not been able to let it go yet. It brings together a compendium of talks given at a conference held in Gaborone in 1989 to assess Botswana’s current status in the world, in sub-Saharan Africa and according to the citizens of Botswana.

Of the four books, I’d recommend 1493 to the intelligent layman, but the other three are definitely tough slogging.

Libertarian Countries and Libertarian Societies

Fred Foldvary Current Events, Liberty , , , , , , , ,

by Fred Foldvary

Michael Lind in the 4 June 2012 salon.com in his article “The question libertarians just can’t answer,” asked, “Why are there no libertarian countries?”  One answer is simply that there are very few pure libertarians. But another answer is that most folks are libertarian enough that they establish libertarian societies, by which I mean not just organized clubs but also informal social gatherings and happenings.

The essential libertarian proposition is “live and let live.”  In a libertarian society, there are no restrictions on peaceful and honest human action.  Most people believe that it is morally wrong to coercively harm others, and they have been brought up to have some sympathy for others, so that they don’t want to hurt others.  Therefore most gatherings such as concerts, athletic events, and street traffic is peaceful. Thus much of the world operates in a libertarian way, without governmental direction. If you host a party in your house, you seldom need a government official there to keep the peace.

This social libertarianism has limits, as those who do not conform to cultural standards such as dress codes would encounter some intolerance.  Nevertheless, there is an almost universal agreement that assault and theft are evil, and a widespread aversion to such anti-social behavior.  When most folks are pro-social in their behavior, they demonstrate a wide and deep level of libertarianism.

Why does the US government impose restrictions such as prohibiting trade with Cuba?  Most Americans probably favor free trade with Cuba. But a minority special interest opposes trade with Cuba and has the political clout to stop it. So the basic reason why the US does not have full freedom is the inherent dysfunction of our system of selecting the chiefs of state. That system is mass democracy.  The failures of mass democracy have been documented and analyzed by the branch of economics called “public choice.”

The two basic reasons why there are no libertarian countries are:

1. Very few people understand or even know about the ethics, economics, and governance of pure liberty.  Pure freedom is not taught in schools, and it is not in the predominant culture.

2. Mass democracy enables special interests to skew policy that favors a few at the expense of the many.

However, the general concept of “freedom” and “liberty” is universally admired.  People have a genetic dislike of being controlled. But their moral views have been skewed by thinking their religious and cultural views are universal.  Ignorance is therefore the ultimate reason why libertarianism is not more widespread.

In another essay on 13 June 2013 Lind says, “Grow up, Libertarians!”  It shows that Lind does not know the meaning of the word “freedom.”  He writes that fighting evil requires limiting the “freedom of employers to buy and sell slaves.”  He has a physical definition of “freedom,” rather than the ethical meaning of there being no restrictions other than on coercive harm to others.  The ownership of a slave is not ethical freedom.

He then says that libertarians propose “the replacement of all taxes by a single regressive flat tax that would fall on low-income workers.” Anyone who advocates such as tax is not a pure libertarian. Lind confuses libertarianism with conservativism.

Michael Lind concludes with the statement, “libertarianism as a philosophy is superficial, juvenile nonsense.” Wow – perhaps he has never read freedom philosophers such as John Locke, John Stuart Mill, Herbert Spencer, and John Hospers. We need a serious explanation of why the basic libertarian idea – live and let live – is superficial nonsense.

There seems to be a simple explanation for Lind’s views on libertarianism – he simply does not understand it.

From the Comments: Federalism, Local and Global

Brandon Christensen Comments , , , , , ,

From a post of mine on Native American sovereignty, and prompted by the thoughts of readers, I muse a little more:

Hank,

Thanks for the great link. My few thoughts, I am not so sure that Native Americans would choose sovereignty over membership into the federation currently in place. I lived near a reservation in northern California (and I’m sure you have the same sort of deal in Montana) and have some fairly extensive contact with Navajo Indians as well (they prefer the term ‘Indian’ to ‘Native American’, so long as they know you). These are people whose ancestors have fought for the US in all of its major wars over the past century. They are intensely patriotic.

What I think would emerge from working with the Indian tribes is a system where all of the major reservations were turned into regular states (like Montana and California) and the minor ones would just disappear. Indians would then be full-fledged American citizens but could still do what they liked culturally with their heritage, much as everybody else does.

Again, this is what I think would happen. If they wanted full-fledged sovereignty we should grant it (and include generous reparations for stolen property), but I think everybody would opt in for a spot in the federal system we have (despite its shortcomings, it’s still a very, very good system).

This leads to me to an odd-but-perhaps-pertinent musing: I am not so sure that the majority of Europeans, South Koreans and Japanese would want our troops to leave their states. Hear me out on this. Our military essentially provides for the defense of these states, and as a result their these societies are able to use resources that would otherwise go to military expenditures for welfare programs. As Americans, we can see why this is a bad thing, but the states we occupy militarily don’t necessarily think that it is such a bad thing.

As a result, I would be open to our continued occupation of these states under one condition: that traveling, working, starting a business, living, moving, etc., etc. between the US and the states whom we subsidize militarily is as easy to do as it is here in the US. So, for example, moving/etc. from Connecticut to Hesse or Nankaido would be as easy as moving/etc. from Texas to South Dakota. If this were to happen, then I could accept a continued US presence in these regions. What do you think?

Update (6/11): I was inspired to bring this up because of an old post on this subject by Dr Foldvary in the Progress Report. Do be sure to check it out.

Maryland v. King: Scalia’s Noble Dissent

Brandon Christensen Current Events, Law , , , , , , ,

I’m definitely not Antonin Scalia’s biggest fan, but – as the Cato Institute’s Walter Olson writes – “if there’s ever a time when Antonin Scalia really rises to the occasion, it’s when he serves as the Supreme Court’s liberal conscience.”

His dissent from the recent SCOTUS ruling on Maryland v King is, like the somewhat recent ObamaCare ruling, a glimmer of hope amidst all the despair. For those of you who are wondering, Maryland v. King is about whether or not the government has the right to extract your DNA – once you are arrested (but not booked or taken to jail) – and place it into a national search database.

And, in case you are further wondering, the distinction I drew between being arrested and being booked or taken to jail is an important one. This is because cops can arrest you without ever using handcuffs. All they have to do is utter the magic words: “you’re under arrest.” So, as an example, a cop can pull you over for having a broken taillight and if he doesn’t like your attitude he can simply arrest you. You don’t even have to get out of your car.

Here is a breakdown: Continue reading →

Reading Hayek in Beijing

Brandon Christensen Current Events, Liberty , , , , , , ,

That’s the subject of a fascinating account of life in China through the eyes of a dissident in this last week’s Wall Street Journal. An excerpt:

Put another way, the conventional notion that the modern Chinese system combines political authoritarianism with economic liberalism is mistaken: A more accurate description of the recipe is dictatorship and cronyism, with the results showing up in rampant corruption, environmental degradation and wide inequalities between the politically well-connected and everyone else. “There are two major forms of hatred” in China today, Mr. Yang explains. “Hatred toward the rich; hatred toward the powerful, the officials.” As often as not they are one and the same.

There is more, too: Continue reading →

Optimism and Despair in a World of Injustice

Brandon Christensen Current Events, History , , , , , , , , , , , ,

The infamous development economist William Easterly recently tweeted that writing about spontaneous order without citing Friedrich Hayek is now “mainstream cool,” while writing about spontaneous order and citing Hayek makes one an ideological extremist. This biting critique of intellectual discourse, a mere 140 characters long, does more than just expose the drastic ideological shortcomings of the modern Left. It highlights the endlessly interesting obstinate ignorance that collectivists of all stripes have historically displayed toward the basic theoretical and moral insights advanced by libertarians.

In a recent Freeman essay by anthropologist Mike Reid, a pattern similar to the one noticed by Easterly emerges in the actions of central planners aiming to preserve the cultural heritage of a number of ethnic groups that have been deprived of their property rights by the very governments now looking to preserve their cultures for them. Reid takes examples from India and Canada and finds that the logic of preserving a specific culture does not hold up to scrutiny.

On the policies of the government of India, Reid writes: Continue reading →

Welcome to the New Bohemia

Brandon Christensen History, Politics , , , , , , ,

[Editor’s note: I first came across this article while living in Santa Cruz. It was in one of those trashy “arts and events” weeklys that you find littering every city in America. I have tried to locate the author of the piece but he appears to have written it under a pseudonym, and the weekly is now defunct. So, I figured I’d reprint the whole damn thing here. You can find an archived copy here]

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We are the modern equivalent of the ancient city-states of Athens and Sparta. California has the ideas of Athens and the power of Sparta. —Gov. Arnold Schwarzenegger

California is like an artificial limb the rest of the country doesn’t really need. You can quote me on that. —Saul Bellow

Perhaps Schwarzenegger and Bellow divined what’s now painfully clear to everyone: Arnie’s California is Humpty-Dumpty, the Hindenburg and some kind of sociopolitical Holocaust all rolled up into one overstuffed exploding burrito. It’s an ungovernable, near criminally impotent and outdated mess. Remedying California’s woes requires draconian cutbacks to essential services and infrastructure. Anyway, that’s what we are told, grand allusions to Athens and Sparta notwithstanding. Others insist the fix lies with the Feds, that the U.S. Treasury need to bail California out at the begrudging consent of Congress. But another still largely muted scenario is slowly gaining traction. Continue reading →

Is It Time to Reject African States?

Brandon Christensen Current Events, Liberty , , , , , , , , , , ,

That is essentially what a political scientist is arguing in a short piece in the New York Times:

Yet because these countries were recognized by the international community before they even really existed, because the gift of sovereignty was granted from outside rather than earned from within, it came without the benefit of popular accountability, or even a social contract between rulers and citizens.

Imperialists like Dr Delacroix and Nancy Pelosi don’t seem to care about the legitimacy of post-colonial states (largely, I suspect, because they thought they did a great job of creating the borders that they did). You never hear them make arguments like this. Instead, the imperial line is all about helping all of those poor people suffering under despotic rule by bombing their countries, just as you would expect a condescending paternalist to do.

Since tactical strikes and peacekeeping missions have utterly failed since the end of WW2, why not try a new tactic? Our political scientist elaborates:

The first and most urgent task is that the donor countries that keep these nations afloat should cease sheltering African elites from accountability. To do so, the international community must move swiftly to derecognize the worst-performing African states, forcing their rulers — for the very first time in their checkered histories — to search for support and legitimacy at home […]

African states that begin to provide their citizens with basic rights and services, that curb violence and that once again commit resources to development projects, would be rewarded with re-recognition by the international community.

Englebert (the political scientist) goes on use examples of democratization in Taiwan as an example of how delegitimizing states can lead to democratization.

Another interesting angle that Englebert brings in is that of Somaliland, a breakaway region of Somalia that has not been recognized by the international community and, perhaps as result of this brittle reception by the international community, it is flourishing economically and politically. You won’t hear imperialists point to Somaliland either. Instead, you’ll get some predictable snark about ‘anarchism‘ or African savagery from these paternalists.

Yet, it is obvious that Somaliland is neither anarchist nor savage, as there is a government in place that is actively trying to work with both Mogadishu and international actors on the one hand, and rational calculations made by all sorts of actors on the other hand. What we have in the Horn of Africa, and – I would argue – by extension elsewhere in the post-colonial world, is a crisis of legitimacy wrought by the brutal, oppressive hand of government.

Read the whole article.

Sobre genocidio, filosofía y diálogos

Guillermo Pineda Current Events, History , , , , , , , , , , , , , , , , , , , , , , , , ,

Pido-castigoDurante las últimas semanas, muchas de las discusiones intelectuales en Guatemala han girado en torno al juicio en contra del ex Presidente de facto, General Retirado del Ejército y ex Presidente del Congreso de Guatemala José Efraín Ríos Montt.  Ríos Montt enfrenta un juicio por los  delitos de genocidio y crímenes de lesa humanidad.  Este juicio y su resolución tendrá una relevancia de alto impacto en la lucha que realizan movimientos progresistas (conocidos también como liberales en EE.UU., liberales de izquierda, y/o como seguidores del social liberalismo) en la búsqueda por resolver conflictos históricos que armonicen el funcionamiento de un mercado regulado con una participación del Estado en la garantización de igualdad de  competencia y la corrección de desigualdades heredadas del período colonial y/o desigualdades que resultaron de la institucionalización política o social de prácticas racistas, clasistas, machistas, entre otras.

El juicio contra Ríos Montt, que podría convertirse en el “Juicio del siglo” de los intereses ideológicos progresistas latinoamericanos, tomó vuelo luego de que el 19 de marzo de 2013, una jueza guatemalteca abriese formalmente juicio contra el exdictador, acusándolo de genocidio contra miles indígenas durante su régimen de gobierno (1982-1983).  El genocidio es un delito internacional que comprende “cualquiera de los actos perpetrados con la intención de destruir, total o parcialmente, a un grupo nacional, étnico, racial o religioso como tal; estos actos comprenden la matanza de miembros del grupo, lesión grave a la integridad física o mental de los miembros del grupo, sometimiento intencional del grupo a condiciones de existencia que hayan de acarrear su destrucción física, total o parcial, medidas destinadas a impedir nacimientos en el seno del grupo, traslado por la fuerza de niños del grupo a otro grupo.” (via: Estatuto de Roma de la Corte Penal Internacional, 1998-2002 y la Convención para la Prevención y la Sanción del Delito de Genocidio de 1948).  La legislación guatemalteca incluye pena de prisión de 30 a 50 años para los culpables de estos delitos. Continue reading →

Has Foreign Affairs Been Reading NOL?

Brandon Christensen Current Events, Links , , , , , , , , , , , , ,

Hello all, I signed up for a pretty challenging final quarter here at school, so my postings will probably be scarce for the next two or three months. It seems Foreign Affairs, one of the more sober foreign policy journals out there, is finally starting to read us here at the consortium. I’ll get to that in a minute but first: editorial duties call!

  1. Be sure to read Dr. Delacroix’s Bush-worshiping piece for an example of how obstinate ignorance works. The very man who mocks smart, well-educated people for their acceptance of scientific consensus on global warming as ‘cultists‘ seems to believe that “there were very good reasons for any reasonable person to be misled about the existence of  [WMDs] in Iraq.” You have to admit, the man has a lot of brass!
  2. I still have to get to co-blogger Andrew Roth’s recent comment chastising conservatives and libertarians for failing to recognize the many nuances associated with Bismark’s statecraft and Roosevelt’s New Deal.
  3. We’ve got a couple new writers who will be blogging here at the consortium. One is an economics major at UC Merced and the other is a Guatemalan national doing graduate studies in Denmark, so stay tuned!

Political scientists Roland Benedikter and Lucas Kaelin have a fascinating piece in Foreign Affairs focusing on the one bright spot in Europe these days: Switzerland. Libertarians who have read the political and legal works of Friedrich Hayek, Ludwig von Mises and James Buchanan will recognize the gist of the arguments right away. To summarize: small, democratic states are the best form of government available to man, given our vast shortcomings, and these small states are, in turn, much better off operating within vast free trade zones that do not hinder the small-scale democracy at work in these states. From the piece: Continue reading →

Cyprus, the EU and Competing Currencies

Brandon Christensen Current Events, Economics , , , , , , , , , , , , ,

There have been many critiques over the European Union from many different quarters over the decades since its inception. With the seizure of cash from customers of banks in Cyprus, the worst threat imaginable has now come to pass for Euroskeptics. Economist Frederic Sautet explains how the heist has so far gone down:

Some depositors at Cyprus’ largest bank may lose a lot of money (e.g. see article in FT). Those with deposits above €100,000 could lose 37.5 percent in tax (cash converted into bank shares), and on top of that another 22.5 percent to replenish the bank’s reserves (a “special fund”). Basically “big depositors” are “asked” to pay for (at least part of) Cyprus’ bailout (the rest will be paid by other taxpayers in the EU).

I cannot think of a faster way to completely destroy a banking system than to expropriate its depositors. This is the kind of policies one would expect from a banana republic, not from a political system that rests on the rule of law. But this is the point: the EU does not respect the principles upon which a free society is based.

An economist over at ThinkMarkets also has a good piece on the Cyprus heist. The EU has taken an incredibly good arrangement – free trade throughout Europe – and turned it into an attempt to unify Europe into a single behemoth of a state. And all under the auspices of “federalism.” This is a bad development for a number of reasons. Continue reading →