Duly Noted: Inconvenient Realities
From the desk of George Handlery on Fri, 2010-07-16 08:20
1. In a side comment, “The Economist” (to this writer the world’s best weekly) mentioned that, regardless of its ups and downs, Americans prefer Capitalism to Socialism. This is apparently so because, even if they lack personal experience, the Yanks seem to be aware that Socialism has a consistent record. Its arrow points south.
2. Much intellectual energy is spent on ingenious explanations for the way out of what is officially a crisis of the economy. Such efforts react to the predicaments of individual national economies. Their conglomerate makes up the global economy. Peel away the non-essentials. The cause of past and current troubles might emerge as monocausal. We might be suffering from a welfarist policy running amok. Unearned allotments are addictively habit forming. Therefore, such gifts “can be dangerous to your health”. Accordingly, the economically imperative shrinkage of handouts is hindered by the political obstacles belated frugality provokes. Thus, what we experience is not really an economic problem. We are facing the economic consequence of a political problem. The extent of the ailment is demonstrated by merrily striking Greeks. There streets can be filled with crowds that feel it is reasonable to demonstrate for guaranteed retirement at the age of fifty-five. Meanwhile, the “world” is about to push the limit to around seventy.
3. Some minor news items have it in them that they can provoke us. Such is the one heard while lifting weights (July 10). Betancourt, a French Columbian double citizen, and once a lightweight presidential candidate, sues “Bogota”. She wants millions for her years spent in captivity. Oh, no, not the Columbian government has held her Betancourt captive. She had been a prisoner of the gang that tries to overthrow the government in Bogota.
Through an operation that earned a deserved standing ovation, the government now sued liberated the good lady now in need of coins. There are other oddities. Prior to her capture by the Commies, Ms Betancourt pleaded for a rather friendly approach to the guerrilla. This might have been the reason why, brainlessly, she dared to enter a guerilla dominated war-zone. She did so after ignoring the warning of the last government checkpoint of the menace. She also signed declaration affirming her awareness of the hazard. Not ineptly, the FARC’s bearded gunmen exploited the opportunity that Betancourt, one of Lenin’s useful idiots, provided them.
Ignore polite formulations. The point is that, while the captivity of Ms Betancourt is a typical MO of Leftist philosophers with a gun, she shared the responsibility. Putting herself at peril, she demonstrated more trust for the Reds than for the now sued government of the country. Add: The government of Columbia is the one that liberated her. (July 12. Betancourt, reviled for trying, has decided not to pursue her complaint.)
What do we learn? Since Ms Betancourt has not thought of sueing the FARC, she is telling us that the Left is right even when it is totally wrong. Furthermore, if one sues, one should indict the party that caused the tort. Lastly, the shady attempt to get some spending money, reveals a bad habit of ours. Even in cases in which personal decisions lead to a calamity, some expect government –meaning the community of the normal ones – and not the fool, to carry the consequences.
4. Especially in Europe, Israel is losing support. The charges are served in a sauce that alleges that the critic is not against Jews and even has some Jewish friends. The caveats are understandable. Any position that gets/got special treatment is likely to be abused. I once had a Jewish roommate. He reacted angrily to criticism by insinuating that telling him that 2x2 was, even in his case, almost 4, meant the claimant did not like Jews. He liked to recommend that such people should, therefore, avoid getting “Jewish” polio shots.
In this case, the abuse that converts victim status into an advantage and an overreaction, seems to play a secondary role. The attitude does not reflect the merits of the Palestinian cause nor the de-merits of Israel’s case. (Both exist.) Much rather, it seems that the factual issues that are debated are marginal. The sentiment that blames Israel seems to be a part of a decisive question that hovers in the background of this column. It is “what is wrong with us”.
Israel’s resistance to encroachment is mostly hard as steel. No wonder. She has little to give up before the concession becomes a death sentence. Furthermore, Israel had no time to forget in a decadent manner that those that threaten one with extermination are likely to mean it.
The upshot of this unwillingness to negotiate the modalities of extinction has implications. The lack of equivocation means that it will surface in the form of an open crisis. The refusal to discuss capitulation creates newer tremors. That makes it difficult to ignore the dispute. “Solving” the problem by ignoring it in tune with our next election oriented culture is difficult. This might or might not make Israel guilty of a detail of her relations to the Muslim world. Doggedness, however, creates an uncomfortable sense of tension. It does not conform to the preference of solving issues by ignoring them. An uncomfortable feeling arises, caused by reminders of inconvenient realities, which refuse to go away if one looks the other way. This discomfort is caused by Israel’s reaction to challenges. Doing so makes her “guilty” of causing tension and of robbing those that would like to be bystanders that bask in the illusion that “all is well” of their bliss. A classical parallel is the proverbial case when the messenger bringing bad news is shot for disrupting the good cheer of the court.
5. Is the Israeli-Palestinian conflict a local spat that threatens to globalize itself through the efforts of one of the parties? Or could it be that what we see is the regional symptom of the fundamental clash of global cultures for supremacy?
6. To the delight of the tabloids, a juicy story emerged. It included much of what we like to see and hear. There were voluptuous ladies uncovered and reports of undercover activity. It kept within the boundaries of entertainment because it did not get bloody. Nicely, the entire act ended in a spy exchange in which the Russians and the Americans swapped their assets for what the other fellow held. So far, do good.
The revealing part of the story is behind its headlines. The Russians caught in the US were so called “sleepers”. These are embedded in their host society where they are available for service in a future crisis. In this case, the implants were to befriend natives that might make careers that involve future influence, power and knowledge. The hoped for scenario is this: Get close to a person that enters government service as a gofer. He could be in charge of a desk in twenty years. With that – just think of Soviet espionage in the UK and the US! – you might hit the jackpot. Anyhow, there is nothing dilettantish about this approach. Unless of course a cell is discovered. Then you can soft-pedal the evidence by claiming amateurishness.
Here the bungling is provided by the press coverage of the event. Low and behold, everybody concluded that there was nothing to worry about and that, therefore, summer vacation’s quiet did not need to be disturbed. The lesson: self-administered anesthetics work best. The aware are left with an insight from the reported event that tells more about us than it reveals about the case.
Support # 3
Submitted by marcfrans on Sun, 2010-07-18 19:48.
@ mpresley
1) I used the Canadian dollar as an example because I (mistakenly?) thought that you are a Canadian. Like almost all currencies the US dollar over time has declined in "real purchasing power", but average income has also risen. Average income has not declined in real purchasing power if you take any significant long term period of comparison and ignore brief 'deviations' from this long term trend.
2) I do believe that Greenspan and Bernanke are "fiscal conservatives", in the sense that they are (and have been in the past) arguing for stronger fiscal policy (both in the sense of smaller deficits and in the sense of lower overall tax burden than what the politicians come up with). But they have no power over these matters.
3) Monetary policy largely determines inflation in an economy, whereas fiscal policy determines more income distibution and income growth (rate) over time. The inflation record of Greenspan is generally a good one, and that of Bernanke too, at least as far as price inflation of current goods and services is concerned. You could blame Greenspan though for having ignored asset price inflation for too long, especially with regards to house prices.
Support for Israel
Submitted by mpresley on Fri, 2010-07-16 18:30.
Especially in Europe, Israel is losing support. The charges are served in a sauce that alleges that the critic is not against Jews and even has some Jewish friends.
It is almost not worth getting involved in the "Jewish question" within the limited space of a combo box inside an on-line journal. But against my better judgment, I will. First, it is necessary, but often difficult, to separate Israel from the diaspora. In this context, the topic appears to be Israel, and it can be dealt with much easier, and with a few observations.
If there were no oil deposits, it is difficult to imagine anyone caring much at all about the Middle East. I suspect that more than a little Western "concern" over Palestinian rights is merely related to how their current and future situation vis-a-vis Israel may affect the supply of this commodity, and not over any intrinsic care anent Palestinian rights, one way or the other.
Second, by way of immigration, Muslims are repopulating Europe, so domestic tranquility is always a concern (the words "Muslim" and "domestic tranquility" hardly belong together in the same sentence, and I am forcing myself to write it, even though I will appear ridiculous). The idea that Muslim and Jew will ever get along is a completely strange idea, and quite untenable, in my view. Be that as it may, European demographics explain much.
Third, given the fact that there is no real money (only a central bank entry on a fictitious "balance sheet"), the idea that "support for Israel" can ever mean anything substantial from a financial standpoint is, today, risible. Unless, that is, we are content to consign indigenous European (or American) citizens to Third World status as their economies completely disintegrate due to unserviceable debt. In which case no one will be laughing, except perhaps the central bankers.
Support # 2
Submitted by marcfrans on Fri, 2010-07-16 20:31.
@ mpresley
1) I want to assure you that your Canadian dolllar (even as a book entry on a real, i.e. meaningful, "balance sheet") is "real money", for you can buy real goods and services with it.
2) Why should "central bankers" be laughing "as their economies completely disintegrate due to unserviceable debt"? That does not make any sense. Have they become some kind of new bogeymen for both the 'right' and the 'left'? The actual record shows that - among all of officialdom in numerous Western countries - central banks tend to be the most consistent advocates of limiting public debt. Their 'warnings' are typically ignored.
The actual record shows...
Submitted by mpresley on Sat, 2010-07-17 20:55.
The actual record shows that - among all of officialdom in numerous Western countries - central banks tend to be the most consistent advocates of limiting public debt. Their 'warnings' are typically ignored.
With this in mind I was slumming through my backlog stack of stuff reading list, and came across this:
http://tinyurl.com/26mmrxj
Or this since the former may require a log-in
http://economiccrisis.us/2010/06/debt-greece-analogy/
Here, Mr. Greenspan says all the right things (well, mostly the right things--his comment on how dollars are created is a bit disingenuous). At the same time, he writes as if he just arrived from a long vacation. Nowhere does he mention the fact that he was Chairman of a Federal Reserve that undertook a policy of low interest rates, and he acts through his writing as if he is simply a disinterested observer. But, then again, that is pretty much how he acted during his time as Chairman, too.
1) I want to assure you that
Submitted by mpresley on Fri, 2010-07-16 23:34.
1) I want to assure you that your Canadian dolllar (even as a book entry on a real, i.e. meaningful, "balance sheet") is "real money", for you can buy real goods and services with it.
That is good news if you are Canadian. In the US, government is run on deficit spending with taxes not able to make up necessary receipts. Thus, due to monetary inflation, over the years our dollar has lost significant value, and real purchasing power has declined. The European Union currency has its own well-known problems, at this time.
2) Why should "central bankers" be laughing "as their economies completely disintegrate due to unserviceable debt"?
I was being somewhat facetious. Clearly it is fiscal policy and politicians that are ultimately responsible for currency valuation. However, their historical actions coupled with a debt based monetary system (central bank with ability to contract and inflate the money supply, fractional reserve lending, and so forth) have not been very conducive to fiscal responsibility. As long as politicians (and citizens that demand services) are able to borrow against future receipts, or monetize, there is not much hope for sound economies.
Some have argued for a commodity gold backed currency (the Austrians as a group), however others (Brown, Denninger, et. al) argue that it is not necessary in order to maintain currency value, but only control of quantity is important.
http://www.thedailybell.com/496/Ellen-Brown-Web-of-Debt.html
All that being said, I am not sure I'd consider Mr Greenspan or Mr Bernanke fiscal conservatives in any strict sense.
Inconvenient, indeed!
Submitted by marcfrans on Fri, 2010-07-16 16:24.
Item 1 - If The Economist is (still) "the world's best weekly", the "world" must be in bad shape.
Item 3 - Indeed, the case of Ms Betancourt shows the depths of idiocy to which "Lenin's useful idiots" can sink. Moreover, if she wants "millions" from Colombian taxpayers she shows that she is no different from your-garden-variety 'dirty capitalist'. And neither are her French friends in 'high office'.
Items 4 and 5 - Regarding the Arab-Israeli conflict and Europe's contemporary reaction to it, I thought the analogy made with "the the messenger bringing bad news is shot for disrupting the good cheer of the court" as very apt.
Moreover, w.r.t. the "globalization" of the Arab-Israeli conflict, the description of it as a "regional symptom of the fundamental clash of global cultures for supremacy" is masterful. It's the struggle between the culture-of-submission versus the culture-of-freedom.
It is my understanding that...
Submitted by mpresley on Fri, 2010-07-16 17:58.
It is my understanding that Betancourt has withdrawn her suit? No matter, it clearly demonstrates her opportunism, and also shows her inability to delay gratification (she should have stuck with a book deal, and done the talk circuit). But we understand liberalism to be a childish belief system, and children usually exhibit an inability to delay gratification along with a misplaced sense of ego entitlement.
Finally, I have never understood "dual" citizenship. If dual, why not triplet, or even more? How can one ever be loyal to two countries? In Miss Betancourt's case, though, I'm sure loyalty is not part of her vocabulary, whatever else she might say, do, or believe.