Archive for the 'Someone Clever Said' Category

Peter Schiff and the KLF

Tuesday, December 2nd, 2008

These three videos go together.

Do you know why?

Black Swans and Monetary Monocultures

Sunday, November 30th, 2008

Trawling through links on a Sunday afternoon, we see that one of my favorite mathematicians

Disclose.tv – The REAL Maverick: Present Economy worse than Depr Video

confirms the ‘Monetary Monoculture Danger’ BLOGDIAL post, and introduces us to a new smart guy, Nassim Nicholas Taleb:

“My major hobby is teasing people who take themselves & the quality of their knowledge too seriously & those who don’t have the courage to sometimes say: I don’t know….” (You may not be able to change the world but can at least get some entertainment & make a living out of the epistemic arrogance of the human race).

I like it.

He wrote a book called ‘Black Swans’, and on his page there is this line:

The Black Swan: Quotes & Warnings that the Imbeciles Chose to Ignore

I REALLY like it.

Nassim Nicholas Taleb: The Black Swan: The Impact of the Highly Improbable (April 2007)

For the last 12 years, I have been telling anyone who would listen to me that we are taking huge risks and massive exposure to rare events. I isolated some areas in which people make bogus claims –epistemologically unsound. The Black Swan is a philosophy book (epistemology, philosophy of history & philosophy of science), but I used banks as a particularly worrisome case of epistemic arrogance –and the use of “science” to measure the risk of rare events, making society dependent on very spurious measurements. To me a banking crisis –worse than what we have ever seen — was unavoidable and NOT A BLACK SWAN, just as a drunk and incompetent pilot would eventually crash the plane. And I kept receiving insults for 12 years!

Regular readers of BLOGDIAL will know why this man and his work has such a strong appeal to us.

From what little we can glean from an hour of digging around, this man is a real scientist i.e. a scientist that is outside of the Science Cult.

His Black Swan Theory dovetails perfectly with what we and many other people have been saying about UFOs for decades. All you need is a single event to prove that everything you believe is wrong; in this case, all you need is a single instance of a UFO being of ET origin to demonstrate that there is Extraterrestrial Life and that some of it is intelligent and some of it can get here from wherever it is they come from. Such an even would also trash the mistaken idea that the distances are too far, and every other false piece of reasoning to exclude the possibility that Alien scientists and explorers coming here.

No matter what you think, no matter what you want to believe, facts are either true or they are not and the rules of evidence do not change simply because you do not like what they imply. Putting people out of work for their entire lives does not make something you find unthinkable not true.

But I digress.

We can now add Benoit Mandelbrot and Nassim Nicholas Taleb to the list of people who have been warning about an impending financial super crash, and Dr Mandelbrot brings a particularly interesting point of view to the table=, because in the discipline that he pioneered we can find a solution to the booms and busts that are created by interfereing in markets, and I wrote of it in my Monoculture post.

If it is true that economic systems are ‘far more complicated than the weather’ AND (for the sake of argument) we want to stop polluting to prevent an environmental disaster from happening, then governments should also get out of the way of how economies spontaneously and naturally order themselves.

On the surface, governments implicitly agree that market forces exist and that you can precisely alter their behavior by chanting the rates of taxes; Gordon Brown’s government is lowering VAT to 15.5% from 17.5% to encourage spending. This is an admission that indeed, human beings are rational, and that the market reacts to prices rationally. If we extrapolate this move and eliminate all government from the equation, that is, all taxes, would not the economy experience a boom big enough to correct the problem? If this is the case, then why not reduce VAT to 0% if this is the greatest crisis since the great depression? Why keep any VAT at all?

Then we read that there is a secret plan to increase VAT to 18.5% after this ‘VAT holiday’ is over. Wait a minute, if more buying and selling is a good thing, and lowering VAT makes this happen, raising VAT will cause buying and selling to slow down, which is exactly what ‘we do not want’.

Looking at this even in these most simple of terms, and then taking into account the true nature of the scale and complexity of billions of people interacting on the smallest of scales, its clear that this government and in fact no government could possibly understand and regulate any economy for any purpose, and they demonstrate the absolute pinnacle of conceit by thinking that they actually can control the economy. This is quite apart from the moral aspects of their ‘running’ the economy by having a monopoly on initiating force.

We are faced with two choices when we observe government interfering with markets.

The first, is that they do not know what they are doing; they are incompetent and are recklessly tampering with something that they do not understand, and that this crisis is a direct result of this incompetence.

The second, they DO know what they are doing, and they have in their possession a complete scientific model that explains every part of the economy, and that they have deliberately created this crash as a means to some end.

No government, not even that of Gordon Brown would claim that they have a complete, mathematical model of the economy that they work from and use to make decisions. This means that they cannot possibly know what they are doing or what the effects of their decisions will be in the future.

Both of these cases mean that no government should be involved in any aspect of any economy, since it is inevitable that they will do harm and not good either by incompetence or by malice. This is, once again, completely separate from their lack of a right to interfere in the private transactions of people who do no harm to others while transacting.

In order for any reasonable man to accept that these evil entities should have any say in the economy, just for the sake of argument, they would have to demonstrate that a government was competent, but this presents problems by itself; what metrics should be used, who is to say what a success is or is not etc etc. The fact of the matter is that there is no man alive and no group of men that has either the tools or the experience or the knowledge of what is happening right now to be able to steer the behemoth that is an economy of even a small country.

Like I said in my other post, if people are left to their own devices, we will get stability; long term stability where everyone knows, more or less, what is going to happen in the long term future in a narrow field. What is for certain is that once the government, whether it is incompetent or evil, is taken out of the equation if there are future crashes we will be able to respond to them in ways that ameliorate the situation much more rapidly. By nature also, since we would not be in a monetary monoculture, these crashes would be highly localized and not international or even continental.

Vaclav Klaus to Become President of European Union

Tuesday, November 25th, 2008

Just when it looked like statism was in an unchallenged political trajectory in the U.S. and Europe, the classical liberal President of the Czech Republic, Dr. Vaclav Klaus, stands to become the next President of the European Union, the world’s biggest trading bloc. Needless to say, those who F. A. Hayek dubbed “the socialists of all parties” (be they red, brown, or green) are none too pleased. As the New York Times reports:

Now the Czech Republic is about to assume the rotating presidency of the European Union and there is palpable fear that Mr. Klaus will embarrass the world’s biggest trading bloc and complicate its efforts to address the economic crisis and expand its powers. His role in the Czech Republic is largely ceremonial, but he remains a powerful force here, has devotees throughout Europe and delights in basking in the spotlight.

“Oh God, Vaclav Klaus will come next,” read a recent headline in the Austrian daily Die Presse, in an article anticipating the havoc he could wreak in a union of 470 million people already divided over its future direction.

A professional economist and devotee of the work of Hayek, Milton Friedman, James Buchanan, and other free market thinkers, Dr. Klaus is well-known for challenging the extremely harmful folly of central government planning and interventionism. For example, he has called the current climate change hysteria “a dangerous myth” in misguiding western officials to adopt pointless and anti-social measures, he has derided the bailouts of European banks as “irresponsible protectionism,” and when it comes to the European Union (EU), he is a vocal opponent of the Lisbon Treaty and has called for nothing less than for the EU itself to be “scrapped.” And while other western leaders rattle their swords at Russia, Dr. Klaus has forged closer ties for expanded trade and other peaceful relations.

His accomplishments in the former Czechoslovakia are impressive, as the Times notes:

As a former finance minister and prime minister, he is credited with presiding over the peaceful 1993 split of Czechoslovakia into two states and helping to transform the Czech Republic into one of the former Soviet bloc’s most successful economies.

For the Independent Institute, Dr. Klaus has served as Honorary Co-Chairman and a featured speaker at our 1998 Dinner to Honor Sir John Marks Templeton (listen here), and Honorary Co-Chair of our recent event, A Gala for Liberty, at which we honored entrepreneur William K. Bowes, Jr., actor/director Andy Garcia, and Nobel Peace Prize laureate Desmond Tutu.

[…]

http://www.independent.org/blog/?p=581

I simply cannot believe it.

My favorite Czech is going to get a chance to make real trouble!

We have already written about this particular individual before.

And of course, the timing could not be better. At the very least, he will be able to bring reality to the table in the form of Austrian Economics and plain common sense.

The first legitimate and moral bank in an age

Monday, November 24th, 2008

In the age of ‘teh inernetz’ it is always a safe bet that someone, somewhere, is thinking the same thing that you are thinking.

It seems that the Lakota Sioux have taken the initiative and are starting a clean, no fractional reserve, no Federal Reserve Note bank. The word about this is spreading like wildfire; this is because everyone is slowly coming to the conclusion that the only real money is Gold, Silver and other precious metals, and that Fractional Reserve Banking is fundamentally immoral and a form of legalize counterfeiting and that the best sort of bank for your savings would be one that only held gold that you deposited.

Consent of the Governed does the hard work:

Remember my blogpost about the Liberty Dollar? Those are still available – but now the People of Lakota are launching a Private Bank for Only Silver and Gold Currencies; and you can convert your US Dollars for their Gold and Silver. You don’t even have to be an honorary Sioux to participate.

In a stunning development, the Free & Independent People of Lakota announced today the introduction of the world’s first non-reserve, non-fractional bank that accepts only silver and gold currencies for deposit.

“Today is a great day for us, a day that we begin to exercise our rights as a sovereign people with strength and pride,” comments Canupa Gluha Mani, Tetuwan Council Judicial Member of the Cante Tenza “Strong Heart” Warrior Society. Mani’s 2500 member warrior society has contracted to provide private security services for the Free Lakota Bank.

“We invite people of any creed, faith or heritage to unite in an effort to reclaim control of wealth. It is our hope that other tribal nations and American citizens recognize the importance of silver and gold as currency and decide to mirror our system of honest trade.” Mani, also known as Duane Martin Sr, is a member of the delegation that declared Lakota independence on December 17th, 2007.The Free Lakota Bank issues an American Open Currency Standard Approved currency, making it readily accepted for trade by over 10,000 merchants and businesses across the continent; this is similar to the Liberty Dollar.

The announcement about this also mentioned that:

The launch of the Free Lakota Bank is also an incredible victory for StrikeForce Technologies, the access control experts providing depositor Out-of-Band Authentication. As the Free Lakota Bank does not require a name, photo identification or social security number to transact, StrikeForce’s technology met the challenge of limiting fraud without requiring controversial biometric technology.

They are using some security software for deposits and withdrawals, and since people have become used to doing banking online even with institutions that don’t have physical “branches” like ING, this is nothing new.

It looks like the Native Americans are flexing their position of sovereignty to create gold and silver backed currency – I sure wish the United States would do the same. Instead the US is just printing up gobs of fiat money that shows signs of eventual collapse. I’ll bet the Lakota’s website and phones will be very busy.

The People of Lakota invite depositors to establish accounts and invest in the Free Lakota Bank’s General Investment Fund, the fund it uses to develop profitable free-market enterprise inside Lakota territory. Mani comments that the nation despises donations and charity, and instead insists instead on “earning our wealth by creating value for those that place their faith and trust in our system.”

Let’s hope that the Feds don’t raid them and steal all their Gold and Silver like they did to the Liberty Dollar folks.

“Money is the barometer of a society’s virtue. When you see that trading is done, not by consent, but by compulsion…when you see that in order to produce, you need to obtain permission from men who produce nothing…when you see your laws don’t protect you against them, but protect them against you…when you see corruption being rewarded and honesty becoming a self-sacrifice…you may know that your society is doomed.” – Ayn Rand – “Atlas Shrugged”

[…]

Consent Of The Governed

If the Lakota Sioux are indeed a sovereign people, then the Feds cannot go there and raid this bank. What they might do however, is order a Gold and Silver confiscation, and make it illegal for you to take your money off of Lakota Sioux land. We shall see.

I do not think that this will be the first bank of this kind. The more people wake up, the greater the demand will be for a no Fractional Reserve bank that keeps your savings in something other than Federal Reserve Notes.

I have to read their privacy page. If they keep your affairs 100% private no matter what, then they have ‘the total package’.

Marijuana plantations for Eindhoven

Monday, November 24th, 2008

The Dutch city of Eindhoven has caused a stir with a plan to set up a cannabis plantation to supply marijuana to its coffee shops. The move was announced at a “weed summit”, when dozens of Dutch mayors urged the government to back the pilot project in an effort to clamp down on the criminals who supply the drug.

The Netherlands, famed for having one of Europe’s most tolerant policies on soft drugs, allows for the possession of less than 5g of marijuana and its sale in coffee shops, but bans the cultivation and supply of the drug to these shops. The majority of Dutch mayors say this legal “back door” has spawned an illicit industry worth €2bn (£1.7bn) a year.

“It’s time that we experimented with a system of regulated plantations so we can have strict guidelines and controls on the quality and price,” Rob de Gijzel, the Mayor of Eindhoven, told the Dutch newspaper Volkskrant. “Authorities must get a grip on the supply of drugs to coffee shops.”

There are also concerns about the increasing strength of unregulated cannabis, with the content of tetrahydrocannabinol, the active chemical ingredient, doubling in recent years.

The weed summit was called to thrash out a revamp of drugs policy after the provincial cities Roosendaal and Bergen op Zoom announced plans to shut all their coffee shops in the next two years to combat drugs tourism and criminal activity. They complain that the 1.3 million French and Belgians who come every year for a puff of weed or dash of hash are often badly behaved. Worse still, they are targeted by “drugs runners” who lure them away from legal outlets to back-door suppliers that offer harder, illegal drugs.

Han Polman, the Mayor of Bergen op Zoom, said: “We are in favour of the Eindhoven experiment but we don’t see it happening quickly. That’s why we are going ahead with our shutdown.”

The Justice Minister Ernst Hirsch Ballin, of the conservative Christian Democratic Appeal party, has applauded these “courageous” efforts to wipe out coffee shops.

The capital, Amsterdam, was in shock over the weekend after news that one in five of its coffee shops would be forced to close under a new law. The city council said 43 of 228 sites must close by the end of 2011 because they are within 250m of a school. This includes the famous Bulldog coffee shop, a tourist magnet housed in a former police headquarters on the Leidseplein. Three Canadian visitors were reeling from the news. One said: “We come here twice a year, we fly thousands of miles, spend probably €4,000 while we are here. It’s the place to be!”

The headmistress of a nearby school, Margriet Bosman, was equally unimpressed by the new measure: “This is just for show. Children will get their drugs if they want to anyway, and closing the shops, which are quite regulated, is not a very good solution.”

Amsterdam’s mayor, Job Cohen, is also in favour of permitting the sale of soft drugs. “There should be a system… in which it is clear where soft drugs come from,” he said. Many Dutch also want the tolerant approach to remain in place, with a newspaper poll this week showing 80 per cent of Dutch opposing coffee shop closures.

Experts agree that a ban is not the answer. “A ban is even more dangerous than the grass itself because consumers will turn to illegal circuits and criminality will explode,” said Tim Boekhout, a criminologist.

[…]

The Independent

The only thing wrong with this plan is that the state is going to be the one setting up the plantation. They should completely legalize the growing and selling of marijuana, so that anyone can grow it anywhere and anyone can sell it….just like tomatoes.

It is completely insane and absurd that you are allowed to posses marijuana, but not allowed to grow it or sell it.

When people say, “the law is an ass”, this is what they are talking about.

There are no irrational regulations on the plantation of other crops for eating, and so there should be no irrational regulation on the growing of marijuana. If there are irrational regulations, i.e. what strains you cannot grow, someone, some ‘criminal’ is going to grow those strains simply because she should not. In any case, the crime routing around the law argument is irrelevant; no one has the right to stop you from growing whatever you want. Period. (GM being the exception, since the GM pollen can contaminate other people’s crops….small digression).

Words about the ‘increasing strength of unregulated cannabis’ come directly from the prohibitionist position, and are totally wrong. The strength or weakness of what you smoke should not be regulated by anyone, except you.

As for the Belgians and French who come to get a taste of liberty, that is a problem for the French and the Belgians to sort out. If their countries were operating correctly, there would be no reason to come to the Netherlands to smoke a plant and its extracts.

This nonsense about coffee shops being near schools is, as the teacher says, “just for show”. I’m sure no one is buying it there…what amazes me is that people are so stupid as to think that such a law would be taken seriously in the first place, or that it would in any way ‘work’ whatever they think ‘working’ is in this case.

Job Cohen is wrong to say there should be a system to show where ‘drugs’ come from.

Take a look at bread making:

when people are left to get on with their stuff in what ever way they want, they set their own standards, make what people want and everyone is catered for.

Artisan Bread Original makes a wide variety of high quality breads. No one told them how to do it, what the quality should be or anything else. It sells on its own merits and people buy it and are satisfied.

The same goes for marijuana. Growers will package it and categorize it themselves and the ones who know how best to do this will sell the most, with every other seller finding their own place in the market by virtue of people selecting them or not.

Finally, the argument about what is or is not in marijuana is simply nonsense. Cigarettes are full of toxic chemicals (599 to be exact) to aid the rate of burning and other qualities that the manufacturer is not required to list on the box:

The list of 599 additives approved by the US Government for use in the manufacture of cigarettes is something every smoker should see. Submitted by the five major American cigarette companies to the Dept. of Health and Human Services in April of 1994, this list of ingredients had long been kept a secret.

Tobacco companies reporting this information were:

  • American Tobacco Company
  • Brown and Williamson
  • Liggett Group, Inc.
  • Philip Morris Inc.
  • R.J. Reynolds Tobacco Company

While these ingredients are approved as additives for foods, they were not tested by burning them, and it is the burning of many of these substances which changes their properties, often for the worse.

[…]

Marijuana does not currently have any of these artificial additives…but I can assure you that if the state gets involved in the marijuana trade, those deadly chemicals and others will be added.

Holyrood rejects identity cards

Thursday, November 20th, 2008

Before you read this post, press play on this:

The Scottish Parliament has voted against the UK Government’s plans to introduce ID cards.

MSPs backed a Scottish Government motion stating the scheme would not increase security or deter crime, while raising concerns about civil liberties.

Scots Community Safety Minister Fergus Ewing said the estimated £5bn needed for ID cards should be spent elsewhere.

But Labour declined to back the motion, saying parliament should focus on issues which were devolved to Scotland.

The first identity cards will be issued to foreign nationals from next week, while young people will be asked to sign up from 2010 before their expected general introduction from 2012.

Mr Ewing told parliament ID cards were a “colossal waste of money”, and that the UK Government could not be trusted to keep the data safe.

“This scheme won’t achieve its primary stated objective of making people safer nor reducing the terrorist threat,” he said.

“We do believe that it poses an unacceptable threat to citizens’ privacy and civil liberties.”

Liberal Democrat MSP Robert Brown said he was uneasy at the decision to issue cards to foreign nationals.

He said: “It goes under the rather unpleasant title of identity cards for foreign nationals, with all the nasty implied innuendo of the recipients being aliens, other people from far-off countries that we know nothing about and probably terrorists anyway.”

Tory Bill Aitken said governments had every justification to take action on improving security, but added: “Where there have been terrible terrorist outrages in the past, in countries where identity cards are compulsory, they have made not one whit of difference.”

Pointing out Holyrood had no jurisdiction on ID cards, Labour’s Richard Baker said there would be no obligation on people to carry ID cards.

He said the UK Government was bringing forward a series of measures to enhance national security and public safety.

He added: “ID cards are a part of that.

“There’s nothing extreme or unusual in the introduction of ID cards and the kind of data which will be on them.”

The government motion was passed by 69 votes to zero, with 38 abstentions.

[…]

http://news.bbc.co.uk/1/hi/scotland/7736588.stm

Amen.

Pilots to strike over ID cards

Tuesday, November 18th, 2008

Pilots threaten to strike over ID cards
The first wave of ID cards to be issued to British citizens has prompted airline pilots to threaten a strike rather than accept the documents.

The second Brass Balls™ award goes to the airline pilots who vote to strike.

Aviation workers have warned that proposals to make airport staff register for the cards from next year would do little to improve security. The British Airline Pilots Association (Balpa), which represents 10,000 of the 12,000 commercial pilots and flight engineers in Britain, said its members were being treated as “guinea pigs”. Jim McAuslan, Balpa’s general secretary, said the Government’s “early warning system should be flashing” over opposition to the plans.

The government doesnt have an early warning system. They are blind dumb and deaf when it comes to what actually works and what people’s concerns are. That is how they could ignore two million marchers demonstrating against an illegal immoral and unjustified attack against Iraq.

Pilots going on strike however is a different thing. These highly trained and completely indispensable people going on strike will cost the airlines millions of pounds. These pilots cannot be replaced with scabs. This action is going to hurt where the pain is felt most strongly; in the realm of money.

The Home Office insists the scheme will help airport workers improve security and streamline pass applications when staff move jobs.

They cannot demonstrate how these cards will improve security. All the people who work at airports currently are already carrying ID cards and have already been vetted. Another, state issued card cannot add any further security. If this is not the case, then they need to demonstrate how having TWO ID cards is better than having one.

Ministers will publish draft regulations on Friday to set up a trial requiring airside staff at Manchester airport and London City airport to sign up for an ID card before they can get security passes allowing them to work there. If the regulations are approved, the first ID cards will be issued at the two airports from autumn next year as part of an 18-month trial.

They should ALL go on strike and shut down the entire airport and air transport system of the UK. That would cause real economic damage and would force the government to back down.

Under the proposals, airport workers will be the first British citizens to be given ID cards, which are due to be introduced for young people from 2010.

But Mr McAuslan, whose union holds its annual conference at Heathrow later this week, said he would be consulting members on the possibility of industrial action if the Government presses ahead with the plans. “It may come to an industrial dispute,” he said. “We would want to avoid that. We would want the Government to think again about the compulsory nature of it and think again about the whole scheme. The Government has said previously that ID cards will be voluntary but the indications are that if you choose not to have a card you will not get an airside pass.”

That is a very diplomatic way of drawing a line in the sand. Bugs Bunny would have said, “Of course you know, this means war”.

The British Air Transport Association, which represents airlines including British Airways and Virgin Atlantic, branded the scheme a “dubious PR initiative by the Government and one that fails to offer any real benefits”.

Thats more Wile E Coyote.

The shadow Home Secretary, Dominic Grieve, said: “Labour should take their heads out of the sand and abandon this £19bn white elephant which will do nothing to improve our security but may well make it worse.” The Tories have pledged to scrap the scheme if elected. Chris Huhne, the Lib Dem home affairs spokesman, added: “It is no surprise that pilots are up in arms since they are one of the few groups selected as guinea pigs for this benighted experiment.”

And they will be the first to be lined up and violated; fingerprinted and scanned and given a number like concentration camp cattle. It is sickening, and finally everyone is starting to feel queasy.

But a spokesman for the Identity and Passport Service said: “Identity cards will directly benefit airside workers – not just by improving personnel security, but also by speeding up pre-employment checks and increasing the efficiency of pass-issuing arrangements.”

This is twice that they have said it would increase efficiency. This is a lie. Without an ID card no time is made making a meaningless check against the NIR when you apply for a job or go and buy a bottle of wine. And as for the lie of it “improving personnel security” they have to demonstrate how people who are already vetted and who already carry ID cards are going to be ‘more secure’ if they also carry a government ID card.

The timetable

*21 November 2008: Home Office issues draft rules on ID card trial at Manchester and London City airports.
*25 November: Home Office starts issuing ID cards for foreign nationals.
*March-May 2009: Regulations on trial scheme debated by Parliament.
*Autumn 2009: First airport staff to be given ID cards.
*2010: ID cards made available to young people for the first time.
*2011-12: Public invited to register for ID cards.
*2017: Vast majority of the population enrolled on ID card database.

[…]

The Independent

This timetable is nonsense of course.

They no doubt had a similar timetable for the adoption of the Poll Tax…and we all know what happened with that idea.

This idea is going to die.

Every group that they try and use as guinea pigs to stress test the enrollment system are going to violently refuse to be numbered and fingerprinted like criminal cattle.

If everyone says ‘NO!’ then the scheme dies. We have said this over and over and over again.

Of course, the Independent fails to ask any of the questions that a normal person would ask, like “how will this increase security”. They simply parrot the line from the Passport service and the Home Office like trained dogs.

But we expect that.

Don’t Talk to Sociologists

Tuesday, November 18th, 2008

Now in the relations between man and man, the worst that can hapen is for one to find himself at the mercy of another, and it would have been inconsistent with common sense to begin by bestowing on a chief the only things they wanted his help to preserve. What equivalent could he offer them for so great a right? And if he had presumed to exact it under pretext of defending them, would he not have received the answer recorded in the fable: ‘What more can the enemy do to us?’ It is therefore beyond dispute , and indeed the fundamental maxim of all political right, that people have set up cheifs to protect their liberty, and not to enslve them. ‘If we have a prince,’ said Pliny to Trajan, ‘it is to save ourselves from having a master.’
Politicians indulge in the same sophistry about the love of liberty as philosophers about the state of nature. They judge, by what they see, of very different things, which they have not seen; they attribute to man a natural propensity to servitude, because the slaves within their observation are seen to bear the yoke with patience; they fail to reflect that it is with liberty as with innocenceand virtue; the value is only known to those who possess them, and the taste for them is forfeited when they are forfeited themselves. ‘I know the charms of your country,’ said Brasidas to a Satrap, who was compaing the life at Sparta with that at Persepolis, ‘but you cannot know the pleasures of mine.’

[…]

We cannot therefore , from the serility of nations already enslaved, judge of the natural disposition of mankind for or against slavery; we should go by the prodigious efforts of every free people to save itself from oppression. I know that the former are forever holding forth in praise of the tranquility they enjoy in their chains, and that they call a state of wretched servitude a state of peace: miserrimam servitutem pacem appellant. But when I observe the latter sacrificing pleasure, peace, wealth, power, and life itself to the preservation of that one treasure, which is so disdained by those who have lost it; when I see free-born animals dash their brains out against the bars of their cage, from an innate impatience of captivity; when I behold numbers of naked savages, that despise European pleasures, braving hunger, fire, the sword, and death, to preserve nothing but their independence, I feel that it is not for slaves to argue about liberty.

Jean-Jaques Rousseau, A Discourse on the Origin of Inequality

The mother of invention

Tuesday, November 18th, 2008

http://www.independent.co.uk/news/uk/home-news/fury-mounts-over-childs-death-1021670.html

It is completely unsurprising that some people will overreact when confronted by a story in which harm has been done to “kiddies”.

What is surprising in this case is the means chosen to protest. This angry local chose to suggest that council tax payers of Haringey withold their taxes until their demand (sacking of an ‘incompetent’ official) is met.

Who knows for sure why, but one may imagine it felt right, one may say logical, to this person that this was a way to directly affect the council and make them take notice… Now if one irate ranter can find the right answer, why do so many ‘intellectuals’ still insist on marching and signing pieces of paper?!?

Mark Shuttleworth, gold, Ubuntu, capitalism, freedom and software

Monday, November 17th, 2008

Let’s start with a superb essay by Lew Rockwell:

The Myth of Good Government

by Llewellyn H. Rockwell, Jr.

One of the great and most persistent errors of classical liberals is to believe in “good government,” a government that does “what it is supposed to do.”

There is nothing the state can do, which society needs done, that cannot be done far better by the market. Another point that is just as telling: no state empowered to do what is supposedly necessary will restrain itself to those things. It will expand as much as public opinion will tolerate.

Sometimes the point is easier to see when looking at foreign governments, such as the tragic case of China. The government is embarking on an explosive venture to dump $586 billion into “infrastructure” over two years. The reason is the classic Keynesian excuse: the spending is needed to stimulate investment. Never mind that this trick has never worked in all of human history. This is instead a grand plan to loot the private sector on behalf of the Communist Party, which will then spend the money bolstering its power.

No country knows more about the failures of this type of central planning than China. Every form of collectivism has been tried out on these poor souls, and tens of millions lost their lives in the course of Mao’s insane collectivist experiments. That this new plan is being enacted in the name of Lord Keynes rather than Karl Marx is irrelevant. The effects are the same: expand power and reduce liberty.

China’s recovery from communism is one of the most inspiring stories in the history of economic development. The country went from being a suffering and impoverished land of catastrophe to being modernized in just 15 years. The state shrunk in scope nearly by default as the private sector grew and grew. This wasn’t the plan. It was the de facto result of the new tolerance of free economic activity. The state went into protective mode to keep its power, and did nothing to stop the swell of private enterprise. The result was glorious.

Keep in mind this critical point. China’s restoration as a civilized society came about not due to some central plan, but by its absence. The fact that the state did not intervene led to prosperity. Again, it wasn’t a policy or a constitution or a law that made the difference. There was no switch from a communist-style government to a night-watchman state. Because the state abandoned its posts under public opposition and contempt, society could flourish.

But the state never went away. It’s just that its depredations have been spotty and unpredictable. Had history taken a better course, the central state would have melted away completely, and law would have devolved to the most local levels. Sadly for the Chinese, the state persisted in its old structure, even as the private sector grew and grew. The state still had its hand in the large industries such as steel and energy, and, of course, it controlled the banking sector.

The government never became good (an impossibility). It was and is bad. It was just less bad than in the past because it did less. But all states lie in wait for a crisis. The earthquake in the southwest provided one great excuse for intervention. But nothing except war compares with an economic crisis as a great excuse for state expansion. Chinese officials can count on support from Western “experts” here, and the thoroughly disgusting US response to our own economic downturn has provided an awful model for the world. Think of it: the Communist Party in China is now citing the US as the main reason for its plot to loot the private sector and bolster its own power at the expense of the country.

So much for being a beacon of liberty in a dark world! Instead, the US is helping to shut out the lights and bolster decrepit despotisms. This is surely one of the great ironies of the current political moment. Instead of teaching the world about liberty, the US’s newly empowered unitary executive is christening various forms of dictatorship.

There can be no question that China’s spending will not improve economic growth. It will instead extract $586 billion from the private sector and spend on political priorities. Never forget that no government has wealth of its own to spend. It must come from taxation, monetary inflation, or debt expansion that must be paid later. And government’s spending choices will always be uneconomic relative to how society would use that wealth. That is to say, it will be wasted.

But won’t the spending spur investment? It can create local boomlets, but they will be temporary. To the extent that the new spending causes a spending response from investors and consumers, this is more evidence of an uneconomic use of scarce resources. If the money is used to prop up failing companies, that’s particularly bad since it is an attempt to override market realities, an attempt that is about as successful as trying to repeal gravity by throwing things up in the air.

The nature of the state – and the core of its rationale for existence – is the conviction that it stands apart from and above society, to correct the failings of the market and individuals. A presumption of superiority is at the very claim of the state, whether it is minimal or totalitarian. Who is to say when and where it should intervene? Well, think about it. If the state is inherently wiser than and superior to society, standing in judgment over what is working and what is not working, the state alone is also in a position to decide when it should intervene.

No government is liberal by nature, said Ludwig von Mises. This is the great lesson that people who advocate “limited government” have never learned. If you give the government any jobs to do, it will presume the right to police its own conduct and then inevitably abuse its power. That is true in China and it is true in the US.

It was the science of economics that first discovered the radical incapacity of the state to make any improvements in the social order. It turns science on its head to invoke economics as a reason for the government to loot and pillage in the name of “stimulating investment.” Stimulation here, there, and everywhere amounts to a diminution of freedom, security of property, and prosperity.

Keynes famously praised Nazi economic policies in the introduction to the German edition of his worst book, the General Theory. After a century of horrors, free men and women, in China, the US, and the world surely deserve better.

[…]

Lew Rockwell

Fascinating and true.

If China can turn itself around in 15 years and the state shrink in scope nearly by default, and if banking is the last and most important bastion of state control, what could we expect if the resourceful Chinese adopt a private currency on a large scale?

There would be nothing that the state could do without destroying the economy if the currency was spread quickly and widely enough.

The question is how should such a currency be designed and rapidly deployed?

It would have to be some form of precious metal in denominations that made it practical for many types of transaction, from small groceries to buying a car.

In the past the wealthy of China used ingots:

and of course, the peasants used many different types of coin:


Chinese bronze coin from the Han Dynasty

and look at these coins, with their tamper evident edges:

And this is pretty…sorry, just had to throw it in:

Essentially, you need a mint, to think about the denominations and then to distribute the coins and bullion. It would be a good idea to get hundreds of millions of people to use vast amounts of low denomination gold coins; then by exchange, certain individuals, probably shop owners, would start to accumulate large numbers of coins.

Thinking about it, that is absolutely the way to seed a new economy that runs on a private currency; many small coins whose value goes up to, say the equivalent of a €500 note, spread to as many individuals as possible, so that daily exchange is made as easy as possible for everything from a bowl of noodles to a bicycle.

This brilliant piece by Lew Rockwell is well timed. Some people are organizing demonstrations outside every Federal Reserve building to ‘End The Fed’. These people haven’t got a hope in hell of ending the Federal Reserve system if all they have in their arsenal are the discredited tactics of the twentieth century.

They correctly identify the Federal Reserve as the cause of many ills and the recent crash; what they do not understand is the true nature of the force that should operate to control interest rates in absentia of central banks. The Market.

If they understood the true the power of the market, they would try and harness it directly to end the Fed, and not protest like beggars asking for oatmeal in the poor house. If they understood anything at all about problem solving they would never opt to demonstrate. Readers of BLOGDIAL know the truth about demonstrating.

If they want to solve this problem, they need to attack it directly. That means attacking the Federal Reserve Notes by issuing their own private currency, and then using it for all their transactions. There are difficulties in doing this, and one of them is Gresham’s Law:

Britannica Concise Encyclopedia: Gresham’s law

Observation that “bad money drives out good.” It is named for Sir Thomas Gresham (1519 – 1579), financial agent of Queen Elizabeth I, who was one of the first to elucidate it (he had been preceded by Copernicus). The meaning expressed is that, if two coins have the same face value but are made from metals of unequal value, the cheaper will tend to drive the other out of circulation; the more valuable coin will be hoarded or used for foreign exchange instead of for domestic transactions.

If that law is true, then issuing a private currency made of gold will have difficulty driving out Federal Reserve Notes. Hmmmmmm.

Small digression.

With the internet, it should be possible to distribute a private physical currency everywhere in a very short amount of time, and to spread information about it virally.

While we are at it, Obama wants to shut down internet payment systems that he does not like:

Develop a Cyber Crime Strategy to Minimize the Opportunities for Criminal Profit: Barack Obama will shut down the mechanisms used to transmit criminal profits by shutting down untraceable Internet payment schemes. Barack Obama will also initiate a grant and training program to provide federal, state, and local law enforcement agencies the tools they need to detect and prosecute cyber crime.

[…]

Barack Obama

“shutting down untraceable Internet payment schemes” means shutting down any payment system that does not allow back door automatic surveillance. Obviously. It means more laws to meddle in our internetz; laws that will inevitably have spill-over into things other than ‘payment systems’.

Another small digression.

Other private currency vendors (Mints) would no doubt spring up with their own coins, adding to the choices and flexibility.

Either way, you will not stop the bailouts, stop the war machine, or end the Federal Reserve if you do not have control of the money. A private currency is not going to appear from nowhere by magic; someone has to design it properly and release it, and according to this post on mises.org, the Liberty Dollar is not what it should look like:

Silver

As a student of Austrian Economics and supporter of commodity money, I regard the assault upon the American Liberty Dollar (ALD) with alarm and sadness, but not surprise.

While nothing the ALD firm did was clearly criminal, in that no force or overt fraud was used, their tactics could charitably be described as sleazy. They were designed to trade silver medallions to the ignorant and unwary at premiums that were many multiples of the market norm. In doing so, they created unnecessary complexity and confusion about hard money.

Consider:
1) Appropriating the face of Ron Paul without so much as asking his permission. Yes, he is a public figure so the appropriation will not be considered criminal, but it is feels sleazy.

2) Erecting a multilevel marketing scheme that provides profits that have at times exceeded 100% to insiders. The tale (face value) of the ALD was raised from $10 to $20 when the market price for an ounce of silver crossed $7.50. ALD dealers split the $12+ profit with the ALD firm. I am not against profits, I seek them. But I know where I can buy 1 ozt silver medallions, including ALDs, at less than $1 over spot silver. Only the ignorant pay such exorbitant prices for silver coins.

3) Creating confusion and needless complexity by marking their coins with a dollar-denominated tale. Unlike countless other silver coins with tales denominated in STU (silver trade unit), WTU, Sovereign, or simply weight, the ALD was denominated in dollars, a figure reserved to government-issued, primarily US and Canadian, currencies.

Mises himself taught, in The Theory of Money and Credit “…at all times and among all peoples the principal coins have been tendered and accepted, not by tale without consideration of their quantity and quality, but only as pieces of metal of specific degrees of weight and fineness. Where coins have been accepted by tale, this has always been in the definite belief that the stamp showed them to be of the usual fineness of their kind and of the correct weight. Where there were no grounds for this assumption, weighing and testing were resorted to again.

Nevertheless, in defiance of all official regulations and prohibitions and fixing of prices and threats of punishment, commercial practice has always insisted that what has to be considered in valuing coins is not their face value but their value as metal. The value of a coin has always been determined, not by the image and superscription it bears nor by the proclamation of the mint and market authorities, but by its metal content. Not every kind of money has been accepted at sight, but only those kinds with a good reputation for weight and fineness.”

4) Exploiting the self-made confusion of the tale by crowing about the “doubling” of the ALD when they changed the tale from 10 to 20 “dollars” per ozt. “Immediately all Liberty Dollars, in specie, paper and digital forms DOUBLED. If you had Liberty Dollars before the Move Up you profited because the underlying commodity increased in value. If you had digital, your eLD doubled the next day. If you had paper Silver Certificates, you could redeem them for the new $20 Silver Libertys. If you had Silver Liberty in specie form, you were offered a special re-minting rate to exchange them for new $20 Silver Libertys.” Liberty Dollar Doubles

Of course, nothing had changed, 1 ozt of silver remained 1 ozt of silver, and by marking their coins in “dollars” they were caught in the inflation of FRNs. Few “$10” ALDs were actually re-minted; they now circulate with all other silver medallions, currently at premiums of $0.60 to $1 over spot in small quantities (1 to 500 coins).

5) Slander of Walmart (big firm in Bentonville) and the implication that competing silver medallions are not pure in The Liberty Dollar Merchant Script.

6) Note also in that document the multiple referrals to “local business referral currency.” The appeal is to autarky rather than free commerce, with more slander to the effect that “big box retailers are in bed with the big bankers.”

The ultimate argument of the ALD firm boils down to this: A number stamped on an ounce of silver changes its value, and so determines whether it will or will not circulate. The explicit assumption is that “average” people are too stupid to know that a Liberty mint or A-mark 1 ozt silver coin with no dollar figure stamped on it and a norfed ALD with some fictional number of “dollars” stamped on it are really and truly the same thing: 1 ozt of fine silver with markings to prove that fact. Period.

The arrogant conceit that most people are too stupid to understand weight of metal without the assistance of a self-proclaimed “monetary architect” is breathtaking. History and present-day practice shows that always and everywhere precious metal coins are valued by weight and fineness (purity) with minor adjustments for being widely recognized, particularly beautiful, or other characteristics.

The aggressive tactics created by the ALD firm and taught to ALD dealers were designed to fool the unwary into believing that an ounce of silver was worth far more than the free market price. Indeed, some ALD dealers vehemently defend the large premiums attached to their products. In at least some cases, ALDs were passed to unsuspecting clerks with a casual “Oh, that’s the new twenty dollar coin.” Owners and managers discovered the deciet in the till only after the dealer was long gone. These tactics caused an increasing number in inquiries to government agencies, district attorneys, and police. It was not successful competition with FRNs that killed the ALD, it was attracting the attention of government agents with methods that had the look and feel of a scam.

The ALD firm did not deserve to be shut down, but if commodity money ever makes a return, it will do so in spite of ALD-created confusion and without multilevel marketing profit margins. In the happy future where silver and gold coins are used in daily commerce, the markups associated with minting and distributing the coins will fall to their historical norms of a few percent over melt value.

[…]

The Liberty Dollar Question – Mises Economics Blog

Clearly there are a substantial number of people with sufficient knowledge to design a optimal currency to replace Federal Reserve Notes, and there is a demand for this service that will only grow stronger as the value of everyone’s savings starts to evaporate at an ever greater pace thanks to the heat of inflation boiling away the value of the dollar.

We wrote before about the Totnes Pound; there is a demand for clean money not only in the USA but in Great Britain.

The question I have is, who is going to be the one to put their fortune into launching a private currency? What sort of person are we looking for? It seems to me that a Mark Shuttleworth type is the most likely candidate; someone who has been made aware of these problems and the solution and who will see in themselves a beneficial instrument of liberation:

This is not the end of capitalism

Some of the comments on my last post on the economic unwinding of 2008 suggested that people think we are witnessing the end of capitalism and the beginning of a new socialist era.

I certainly hope not.

I think a world without regulated capitalism would be a bleak one indeed. I had the great privilege to spend a year living in Russia in 2001/2002, and the visible evidence of the destruction wrought by central planning was still very much present. We are all ultimately human, with human failings, whether we work for a state planning agency or a private company, and those failings have consequences either way. To think that moving all private enterprise into state hands will somehow create a panacea of efficiency and sustainability is to ignore the stark lessons of the 20th century.

The leaders and decision makers in a centrally-planned economy are just as fallible as those in a capitalist one – they would probably be the same people! But state enterprises lack the forces of evolution that apply in a capitalist economy – state enterprises are rarely if ever allowed to fail. And hence bad ideas are perpetuated indefinitely, and an economy becomes dysfunctional to the point of systemic collapse. It is the fact that private enterprises fail which keeps industries vibrant. The tension between the imperative to innovate and the consequences of failure drives capitalist economies to evolve quickly. Despite all of the nasty consequences that we have seen, and those we have yet to see, of capitalism gone wrong, I am still firmly of the view that society must tap into its capitalist strengths if it wants to move forward.

[…]

http://www.markshuttleworth.com/archives/227

In fact, Mark Shuttleworth is a PERFECT candidate, as we can see. He just doesn’t know it yet.

In case you didn’t know, Mark Shuttleworth is a South African philanthropist genius billionaire who single handedly accelerated the adoption of Linux and put it into the hands of the masses with Ubuntu. I say single handedly because he financed it by himself; where other distributions were getting better and better slowly like Fedora, Mark Shuttleworth took the Debian distribution and turned it into something that anyone anywhere could use by pouring money, philosophy and hard work onto Debian. The result has been a complete success, and now Ubuntu is being sold on Dell laptops as standard.

There are not many capitalists who understand the Open Source business model and its associated philosophies. Just look at the irrational buggy whip thinking of the music and film industry to hear what ordinary, unintelligent business people think about making money from giving away something for free.

The right man for this job would understand scale. He would understand networks, both internet and real world. He would be driven by philosophy as much as the desire to make money. He would understand the philosophy behind the Free Software movement. He would also have a grasp of banking and how currencies work. He would be able to apply and to synthesize all of this into a project to spread debt free, central banking free currency that is owned by and for the benefit of the public…just like Ubuntu is.

I could not think of a better time to launch such a project; the dollar is collapsing, the headless chickens of the G20 are all jockeying around for a ‘solution’. What better time to checkmate them all with the release of a new, private currency that trumps them all, into which everyone can convert their savings and buy their bread with.

Now that would be something worth while!

Celente Predicts Revolution, Food Riots, Tax Rebellions By 2012

Thursday, November 13th, 2008

by Paul Joseph Watson

stock market

The man who predicted the 1987 stock market crash and the fall of the Soviet Union is now forecasting revolution in America, food riots and tax rebellions – all within four years, while cautioning that putting food on the table will be a more pressing concern than buying Christmas gifts by 2012.

Gerald Celente, the CEO of Trends Research Institute, is renowned for his accuracy in predicting future world and economic events, which will send a chill down your spine considering what he told Fox News this week.

Celente says that by 2012 America will become an undeveloped nation, that there will be a revolution marked by food riots, squatter rebellions, tax revolts and job marches, and that holidays will be more about obtaining food, not gifts.

“We’re going to see the end of the retail Christmas….we’re going to see a fundamental shift take place….putting food on the table is going to be more important that putting gifts under the Christmas tree,” said Celente, adding that the situation would be “worse than the great depression”.

“America’s going to go through a transition the likes of which no one is prepared for,” said Celente, noting that people’s refusal to acknowledge that America was even in a recession highlights how big a problem denial is in being ready for the true scale of the crisis.

Celente says that by 2012 America will become an undeveloped nation, that there will be a revolution marked by food riots, squatter rebellions, tax revolts and job marches, and that holidays will be more about obtaining food, not gifts.

Celente, who successfully predicted the 1997 Asian Currency Crisis, the subprime mortgage collapse and the massive devaluation of the U.S. dollar, told UPI in November last year that the following year would be known as “The Panic of 2008,” adding that “giants (would) tumble to their deaths,” which is exactly what we have witnessed with the collapse of Lehman Brothers, Bear Stearns and others. He also said that the dollar would eventually be devalued by as much as 90 per cent.

The consequence of what we have seen unfold this year would lead to a lowering in living standards, Celente predicted a year ago, which is also being borne out by plummeting retail sales figures.

The prospect of revolution was a concept echoed by a British Ministry of Defence report last year, which predicted that within 30 years, the growing gap between the super rich and the middle class, along with an urban underclass threatening social order would mean, “The world’s middle classes might unite, using access to knowledge, resources and skills to shape transnational processes in their own class interest,” and that, “The middle classes could become a revolutionary class.”

In a separate recent interview, Celente went further on the subject of revolution in America.

“There will be a revolution in this country,” he said. “It’s not going to come yet, but it’s going to come down the line and we’re going to see a third party and this was the catalyst for it: the takeover of Washington, D. C., in broad daylight by Wall Street in this bloodless coup. And it will happen as conditions continue to worsen.”

“The first thing to do is organize with tax revolts. That’s going to be the big one because people can’t afford to pay more school tax, property tax, any kind of tax. You’re going to start seeing those kinds of protests start to develop.”
“It’s going to be very bleak. Very sad. And there is going to be a lot of homeless, the likes of which we have never seen before. Tent cities are already sprouting up around the country and we’re going to see many more.”

“We’re going to start seeing huge areas of vacant real estate and squatters living in them as well. It’s going to be a picture the likes of which Americans are not going to be used to. It’s going to come as a shock and with it, there’s going to be a lot of crime. And the crime is going to be a lot worse than it was before because in the last 1929 Depression, people’s minds weren’t wrecked on all these modern drugs – over-the-counter drugs, or crystal meth or whatever it might be. So, you have a huge underclass of very desperate people with their minds chemically blown beyond anybody’s comprehension.”

The George Washington blog has compiled a list of quotes attesting to Celente’s accuracy as a trend forecaster.

“When CNN wants to know about the Top Trends, we ask Gerald Celente.” — CNN Headline News

“A network of 25 experts whose range of specialties would rival many university faculties.”
— The Economist

“Gerald Celente has a knack for getting the zeitgeist right.” — USA Today

“There’s not a better trend forecaster than Gerald Celente. The man knows what he’s talking about.”
– CNBC

“Those who take their predictions seriously … consider the Trends Research Institute.”
— The Wall Street Journal

“Gerald Celente is always ahead of the curve on trends and uncannily on the mark … he’s one of the most accurate forecasters around.”— The Atlanta Journal-Constitution

“Mr. Celente tracks the world’s social, economic and business trends for corporate clients.”
— The New York Times

“Mr. Celente is a very intelligent guy. We are able to learn about trends from an authority.”
— 48 Hours, CBS News

“Gerald Celente has a solid track record. He has predicted everything from the 1987 stock market crash and the demise of the Soviet Union to green marketing and corporate downsizing.”
— The Detroit News

“Gerald Celente forecast the 1987 stock market crash, ‘green marketing,’ and the boom in gourmet coffees.” — Chicago Tribune

“The Trends Research Institute is the Standard and Poors of Popular Culture.”
— The Los Angeles Times

“If Nostradamus were alive today, he’d have a hard time keeping up with Gerald Celente.”
— New York Post

So there you have it – hardly a nutjob conspiracy theorist blowhard now is he? The price of not heeding his warnings will be far greater than the cost of preparing for the future now. Storable food and gold are two good places to make a start.

http://www.infowars.com/?p=5938

ID Cards: the death rattle

Friday, November 7th, 2008

Yesterday there was a deluge of PR paid propaganda – bullshit if you will – trying to sell the ID Card with the hideous prostitute Jacqui Smith making outrageous claims.

The lying lickspittle bastard repeater journalists at the BBC tweaked this first article during the day for maximum impact and under orders. We grabbed both pages.

First we have this:
12:20 GMT, Thursday, 6 November 2008

and then we have this, later in the day:

15:57 GMT, Thursday, 6 November 2008

The title of the page changed from ‘Shops may take ID card biometrics’ to ‘People ‘can’t wait for ID cards’. The first title is obviously more pertinent, more astonishing and alarming because of the implications of shops taking Biometrics. Later, it was changed to a pure and very cheesy propaganda headline after pressure no doubt from the office of that kebab eating monster. There have been seven versions so far.

The facts of the matter remain unchanged however.

HMG actually plans to allow people to enroll in the ID Card scheme / NIR from inside Tescos.

Do you know what this means? It means that the NIR is going to be full of bad entries. People will be able to go to Tescos and get themselves onto the NIR claiming to be someone who they are not, maybe even you, which is the absolute opposite of what the government has been saying all along was the purpose of this vile and pointless database and its associated card. Perhaps that is exactly what they want – you to be frightened of someone getting there first and stealing your identity. “Claim your identity now before someone else does!” will be the call.

This ugly, chinless, subhuman, totalitarian garbage actually claims that people ‘can’t wait for ID Cards’; this is the sound of sheer desperation my friends. Look at the comments on BBQ’s ‘Have Your Say’. I think Jacqui Smith is a delusional liar and the only people she has been speaking to are figments of her insane and deeply troubled mind:

Added: Thursday, 6 November, 2008, 07:38 GMT 07:38 UK

Not one bit! And I won’t be buying or carrying one!

This is another snooping measure from the NuLabour Gestapo state. I make this appeal to everybody to refuse to buy or carry this insidious document. If you receive a communication from any department of the Fascist NuLabour apparatus about it cut it up and send it back, unstamped, to some government department!

Let us call time on this now!

Robert Phillifent, Whitley Bay
Recommended by 266 people

Added: Thursday, 6 November, 2008, 09:12 GMT 09:12 UK

ID cards:

– nobody wants them
– they won’t make us any safer
– the government will lose all the sensitive information anyway

Hokey Cokey, london, United Kingdom
Recommended by 257 people

Added: Thursday, 6 November, 2008, 09:13 GMT 09:13 UK

Why dont they just tatoo or brand us all? We could all be marked with a number at birth to make sure we were all identifiable.

Hold on, something in the back of my mind tells me that a similar method to this may have been used before?

How did that turn out?

[Free_Scotland], Grangemouth, Scotland
Recommended by 204 people

Added: Thursday, 6 November, 2008, 09:11 GMT 09:11 UK

Remember everyone – it’s not just a piece of plastic, it’s the vast database behind it too… all your data, addresses, accounts, policies, pensions, all of it nicely formatted and ready to be left on trains, in car parks, in brief cases, lost laptops etc etc

Chris Chris
Recommended by 201 people

Added: Thursday, 6 November, 2008, 07:49 GMT 07:49 UK

I do not think these cards will do much to improve security. Instead, we will have one card which proves who you are, and when this is cracked and cloned by organised crime (and believe me it will be) it will make avoiding detection and stealing identity much easier for them.

Matt Gallop, Brighton
Recommended by 181 people

Added: Thursday, 6 November, 2008, 07:49 GMT 07:49 UK

ID cards for the whole population once again punishes the general population for the lack of control of immigrants. When will the government target risk groups & stop wasting everybodys time by monitoring the activities of everyone.

John Doe, United Kingdom
Recommended by 173 people

Alert a Moderator

Added: Thursday, 6 November, 2008, 09:12 GMT 09:12 UK

What is it in the words ‘this ID card system would be unworkable’ does Jacqui Spliff not understand? Security specialists have stated that it would not work and cards can be cloned.copied or falsified with todays technology. Aftter the many fiascos of data going missing, how many times is it now? Would you trust this lot with digitalised information about you? No chance. With the billions wasted on useless IT systems by this government I wouldn’t trust them to run a raffle. Forget it Spliff.

Maximus, Boxgrove UK
Recommended by 168 people

Added: Thursday, 6 November, 2008, 07:36 GMT 07:36 UK

Yet another money wasting scheme from our illustrious Government.

They are not listening to the electorate, nobody wants ID cards, and as far as I know, nobody has been able to make them “secure”.

Plus can we trust them with our data? Based on countless examples over recent years its obvious the answer is no.

At a time when the UK needs all the money it can get, to pay its billions on previous commitments, you would have thought that schemes like this would have been postponed.

clive hamilton, woking
Recommended by 163 people

Added: Thursday, 6 November, 2008, 09:08 GMT 09:08 UK

This is not about terrorism! It’s about controlling the population and keeping tabs on them and their movements. Liabor are control freaks and they want to micro-manage every aspect of our live’s and that includes us. We should say no to this and do all we can to stop ID cards from becoming a reality. Is there not already enough information about each and every one of us in their databases? Do I not already have ID we carry? Why should I pay for something I don’t want or need?

Neil, Brighton
Recommended by 147 people

Added: Thursday, 6 November, 2008, 07:39 GMT 07:39 UK

How many times do we need this same debate? According to the government itself, the checks that should be performed for airport workers are much more stringent that those for the ID card.

In what was does that improve security of the public?

Once again, the government presses ahead with projects to catalogue every citizen and no-one appears willing to stop them in their tracks.

RJ, Zurich
Recommended by 147 people

Added: Thursday, 6 November, 2008, 09:11 GMT 09:11 UK

So, I have a birth certificate, photo driving license, passport credit cards and more and yet I need ANOTHER piece of ID. Can someone tell me why?

Unless this would replace the driving license and passport, it is, in my opinion, a ridiculous waste of time and money. As for fighting terrorism…..is having an ID card going to stop someone making a bomb? The logic escapes me.

Hard Working, Bracknell, United Kingdom
Recommended by 143 people

Added: Thursday, 6 November, 2008, 07:46 GMT 07:46 UK

To try to kid us that this is not a Gestapo act, Clown says, we must have an ID card but will not have to carry it at all times. So when a terrorist is asked to present his/her card at the police station within a week……!!
Yes I think that will definitely deter terrorists from blowing up Britain.

[anotherjames]
Recommended by 125 people

Added: Thursday, 6 November, 2008, 07:48 GMT 07:48 UK

Don’t they already have ID cards or security checks for “people working in specific sensitive roles or locations” in airports? I’m pretty sure that there is already an ID systetm in place for airport workers.

This is just a sneaky way to try and tenderise public acceptance towards nationwide cataloguing. You give an inch…

Blue-eyed cyclops, Norwich, United Kingdom
Recommended by 125 people

Added: Thursday, 6 November, 2008, 07:40 GMT 07:40 UK

ID cards are just a scam to take an ID card fee from every adult in the UK. They’re a stealth tax, nothing more.

anon., UK
Recommended by 119 people

Added: Thursday, 6 November, 2008, 09:07 GMT 09:07 UK

The only way I can see ID Cards helping in the fight against terrorism is if they have sharp corners, and you can jab them in to someone’s eyes to stop them blowing something up.

Or maybe – if they were really big and made of metal and teflon – you could hold it up in front of you to protect yourself from a bomb blast.

Or you could jam them in a door to stop it opening and letting in a person with a bomb…..

The possibilities are endless!

[angelholme], Blackpool, United Kingdom
Recommended by 117 people

[…]

Have Your Say

Total comments: 2134
Published comments: 1643
Rejected comments: 39
Moderation queue: 452

Methinks that the argument is lost Jacqui, you piece of trash. Almost all of the comments are violently against the idea of ID cards and this database.

The first comment is one of the best, and it is what we have been recommending for years; simply do not respond or react to anything that is sent to you. If everyone does it, the whole system dies, and that is that.

As we pointed out before, the unions are finally waking up to this problem and are going to cause trouble:

[…]

The Unite union, which represents airport workers, has said staff are already extensively vetted before being given airside passes.

Airport unions have been resisting the scheme, saying workers would have to pay £30 for a card to do their jobs.

However, it is understood that the cards would be issued free during the evaluation period.

Airlines including British Airways, Virgin Atlantic and EasyJet, also spoke out against the plan, saying it was “unjustified” and would not improve security.

On plans to involve retailers and the Post Office in the ID cards scheme, a spokesman said it would be “more convenient” for people than the government’s original plan to set up enrolment centres in large population centres.

The Identity and Passport Service (IPS) would continue to carry out enrolment at its offices but a spokesman said it also wanted to “drive down costs using market forces and competition” and was talking to a “range of high street retailers and other organisations”.

[…]

http://news.bbc.co.uk/1/hi/uk_politics/7712275.stm

I see. They will issue them free for the testers. Last time I checked, when you test something for someone, you get PAID for doing so, and ‘free’ is not paying. It does however mean that they have to eat the cost of rolling out this test because the reaction against the ID card has been so hostile. Finally.

Don’t you think its interesting that IPS wants to “drive down costs using market forces and competition”? If the market can be used in this way to drive down costs, why not let the market take care of the entire ‘problem’?

What we would have is a market response to the problem of ID, and we would get the most efficient solution, in the same way that the market has provided the most efficient solution to the provision of universal and dirt cheap cellular telephone coverage and access.

The problem with letting the market solve the ‘problem’ of ID is that there is no ID problem to be solved in the first place. Business can carry on totally successfully without ID cards; in fact, ID cards are a form of friction, slowing down commerce, not facilitating it in any way.

Only the government wants ID cards. Business doesn’t need them (like the absurd fascist nonsense of having to produce a Passport or ID to get a SIM card), the public does not need them or want them; only the chinless, foul toothed fascists like Jacqui Smith and her equally repulsive predecessors want them, because they are bereft of imagination, fascist in nature and on the payroll of the venal vendors who are in line for billions of pounds for generations.

Now on to the next, most revolting, astonishing and inexplicable article from propaganda central, AKA BBC News:

Foreign students: Identity cards

The UK Border Agency is to issue the first identity cards to foreign nationals who officials say are most at risk of abusing immigration rules – non-EU students and those on a marriage or civil partnership visa.

But how do foreign students feel about carrying identity cards and being targeted as “risk” categories?

WON JAE, 20, FROM KOREA, STUDYING PSYCHOLOGY AT UNIVERSITY COLLEGE LONDON (UCL)

Won Jae from Korea, studying at UCL

I think it would be OK to carry an identity card, so long as it wasn’t discriminatory.

At the moment if I go anywhere off campus I have to carry my passport as my identity, for example if I am buying alcoholic drinks, so it would be better to have a card. So long as it’s not discriminating me against UK people, it’s fine.

[…]

http://news.bbc.co.uk/1/hi/uk/7635114.stm

First of all, every student except two (one from the US and one from Nigeria) on that page comes from a country where they have state issued ID cards, and have had them for decades. These people are the most sheepish, inured sad slaves imaginable. Won Jae is very well trained in double think:

I think it would be OK to carry an identity card, so long as it wasn’t discriminatory.

Well done Dear Leader in training! 2+2=5!

And you absolutely do not have to carry your passport to buy alcoholic drinks you moron. Learn something about the country you are studying in, it might help transform you from a slave into a human being.

What can you say to a parade of people like this?

Britain is a country where you used to be able to show, just by living here, that you do not need to have a totalitarian system of constant checks to create a thriving and tolerant society. All the Europeans who cannot imagine living without an ID card could be shown the 4th largest economy in the world doing very well, in fact, better than them, without ID cards and a police state.

Since when is the policy affecting the British public the business of foreign students? For sure, these students (wether they know it or not, and clearly this Korean does not) have rights and should never be compelled to carry an ID card; but since their acceptance of an ID card would inevitably lead to pressure on every British person to have one, why on earth are they being consulted at all, as if their opinion actually matters?

This page from the BBC is one of the most revolting, ill conceived and traitorous that I have ever read. To use foreigners from totalitarian states in this way to apply the force of opinion and change the outcome of a critical battle in the UK is treason, full stop. These people have no intention of living in Britain, and their approval of ID cards, once used to shoe-horn them in would still be here after they have left.

This is a sickening article. It made me so angry that I had to get up and go away for many hours.

The opinions of these people are absolutely irrelevant.

Should we have brought in ID cards in the ’70s because some ignorant Spaniards living under Francisco Franco ‘had no problem with it’ or as this young lady says

MI-YOUNG PARK, 24, KOREA, ENGLISH AT OXFORD HOUSE COLLEGE, LONDON
I think we need identity cards to buy things like alcohol or cigarettes. I have tried to show my Korean card, but they won’t accept it, so I have to carry my passport around with me which is really dangerous.

But I’m not staying in London for much longer, I’m applying to Emirates to be a flight attendant.

I think not.

ID cards are morally wrong. It doesn’t matter what anyone’s opinion is, in the same way that murder is wrong no matter who says otherwise. People like Gordon Brown and Jacqui Smith do not have any morals, and so they can mass murder and tag everyone like cattle without breaking a sweat, sleeping soundly every night. Those ignorant, annoying students might not have any understanding about ID cards, and may even want them; that does not mean that they are right, or that these foul instruments of totalitarian control should be introduced to Britain. What the Koreans do in their own country is their business, and I do not care about how they choose to live, and their way of life should have no influence or sway over what happens in a free country or in Britain.

To digress for a moment, none of these students seem to understand that if they take this card, it will mean that the police will be stopping and checking them just because they ‘look Korean’. They will be stopped and checked, and everyone else will be stopped and checked for these cards. These students are the trojan horse for this racist nightmare, where everyone will be profiled by what they look like on the spot. We have already been through this many times in the twentieth century…and this is the problem; all of these pathetic students are very young and have no memory or knowledge of the racist Suss Law (UK) and Pass Laws (South Africa) that caused so much friction and problems. They should all know better. They should all have better self correcting self preservation skills that ring alarm bells when someone wants to harm you or your fellow man. But then again, when you are born into a police state, you know nothing but the police state – its the same for the Spanish as it is for the Koreans and the Belgians.

The BBC, by putting on this parade of idiots has sunk to its lowest level ever, and as usual, there is no named person or editor to point the finger at for this scandalous, treasonous, infuriating article.

I have to say that despite all of this evil being thrown in our faces, that I am greatly pleased by the outpouring of hate against the ID card and Jacqui Smith / Neu Labour. It seems that we are actually very close to or on the tipping point now. There is no one left who is saying ‘nothing to hide, nothing to fear’ except the evil glove puppets in the pay of the vendors and HMG.

This is going to be abandoned completely, and shortly after that, ContactPoint will be scrapped. Gordon Brown has admitted that they can never keep data safe. That means that the children of Britain can never be kept safe once they are on ContactPoint. It means that they can never keep the personal details of these stupid students safe once they are on the NIR. It means that no one will be safe, and this is quite separate from the social ills that will arise from this evil mania for registers.

Once again, the first commenter had it precisely right:

If you receive a communication from any department of the Fascist NuLabour apparatus about it cut it up and send it back, unstamped, to some government department!

This is the only response needed. Make sure that you tell everyone exactly what you are doing and why, and encourage them to do the same, for the sake of themselves and this great country.

Many people died so that we would not have to carry ID cards. I will not dishonor them by giving in like a subhuman.

And neither should you.

Naomi Wolf on Lew Rockwell

Friday, October 31st, 2008

Lew Rockwell Podcast

Lew Rockwell interviews Naomi Wolf:

More from Naomi Wolf:

She wrote Give Me Liberty: A Handbook for American Revolutionaries.

Her numerous appearances are documented on YouTube.

Lew Rockwell Podcast

Download

As you will remember, being an avid reader of BLOGDIAL, we are not too impressed by the reluctant Red Pill eater Naomi Wolf, who should, given her age, know better.

Nevertheless, this is an unmissable piece of audio. Naomi Wolf, despite the age of the internets, despite being exposed to Alex Jones and his fine documentaries, still doesnt kow the facts about the Federal Reserve.

I find that really hard to believe.

If she was just some mother from Jersey with one of those odd hairdoos, then it would be understandable, but someone as connected and exposed as this MUST know about the Fed; her not knowing about it is an impossibility.

If she really doesn’t know about the Fed after having been exposed to everything, after having been handed it all on a silver platter (she has had at least between now and April 2007, when we posted about her essay) she is either deliberately pretending to be ignorant, is actually ignorant (impossible, since she has been given the materials) or is stupid.

Naomi Wolf is not stupid. That is for sure.

Is she pretending to be in the dark about everything?

Who knows…who cares.

All I know is that this person has woken up too late, wether her waking up is real or not.

Further to all of this, it is interesting that the State thinks that passing laws actually means something; that they believe their wishes need to be codified in order to make them real in some way. Naomi Wolf is a facilitator of their evil by her believing that the State, by enacting laws, somehow changes reality from one thing into another.

The fact is that no matter what law they pass, their power remains just as illusory. If you choose not to obey, the law is meaninless.

People like Al Capone, Pablo Escobar, John Gotti, and all ‘Organized Crime’ figures understand reality far better than Naomi Wolf does. They understand that it doesnt matter what laws are passed; you can do whatever you like, and thrive.

The Poll Tax failed because everyone refused to obey. The Berlin Wall fell because people stopped believing that the power of the state had any hold over them. Once everyone takes for granted that the State has no right to tell them anything, from how they should measure the goods they sell to wether or not they should do anything at all whatsoever it may be, the illusion of the power of the State will simply dissapear all at once. Soldiers will take off their uniforms. The offices of the state will be abandoned. People will move freely.

And sanity will be the norm.

Before any of that can happen, the Naomi Wolfs of this world need to not only swallow the Red Pill, but digest it, and let its essence become a part of their body.

BLOGDIAL began on Friday, January 12, 2001 with a quote from The Matrix. Before BLOGDIAL, we had published articles on these important subjects. We are not the only ones who have been doing this for years, and certainly there are others who have written more and more eloquently than we did.

There really isn’t anything more that can be done for the likes of Naomi Wolf and the millions of people like her. The question now is not what is to be done to educate them, but what are we going to do to protect ourselvs from the sleeping sheeple, the half awake half wits and the legions of zombies out there who are going to drag us down.

That is the question!

Oxford Libertarian Society

Wednesday, October 29th, 2008

Who are we?

We’re a student society at the University of Oxford committed to exploring and promoting libertarian ideas.

Libertarians believe quite simply in the maximisation of individual freedom. This is in marked contrast to the two main strands of political ideology in Britain: have you noticed how the Left seem to be in favour of personal freedoms but want to ban capitalist acts between consenting adults while the Right support just the opposite? If you’ve ever been troubled by this lack of consistency, look no further. We support civil liberties, private property, free markets, the rule of law and most importantly limited government as the institutions most able to promote liberty.

Prior to Michaelmas Term 2008, the society was called the Oxford Hayek Society. You can find out more about our history on the About Us page and in the first edition of our termly magazine, the Individualist.

What do we do?

Primarily we organise speaker meetings on a range of topics including current affairs, political philosophy, economics, and history. People of any political persuasion are more than welcome to attend any of our events free of charge, which are usually followed by questions and a discussion – generally the more people who disagree, the better the final discussion. Wine is normally served afterwards.

How do I get involved?

Just come along to one of our free events! If you want to keep up with the details, sign up on our mailing list.

Attendance at events is free, but we also offer life membership at £10, which has a number of benefits:

  • Free copies of The Freeman, the monthly journal of the Foundation for Economic Education, during your course at Oxford
  • Discounted entry, reduced from £85 to £50, to the Libertarian Alliance conference in October – email andrew.roocroft [at] chch.ox.ac.uk for further details
  • Free copies of the society’s magazine, the Individualist, published termly
  • Discounts on our social events, including the Annual Dinner
  • Preferential access to seminars and internship opportunities with our think-tank sponsors and donors, including the Adam Smith Institute, the Institute for Economic Affairs and Freedom Alliance

We’re extending our half price membership offer until Saturday 1st November (end of 4th week) – just bring £5 to one of our events or send a cheque, payable to Oxford Libertarian Society, to Kate McNally at Keble College.

[…]

The Exploitation of the Strong by the Weak

The Myth that Laissez Faire Is Responsible for Our Present Crisis

Friday, October 24th, 2008


The news media are in the process of creating a great new historical myth. This is the myth that our present financial crisis is the result of economic freedom and laissez-faire capitalism.

The attempt to place the blame on laissez faire is readily confirmed by a Google search under the terms “crisis + laissez faire.” On the first page of the results that come up, or in the web entries to which those results refer, statements of the following kind appear:

  • “The mortgage crisis is laissez-faire gone wrong.”

  • “Sarkozy [Nicolas Sarkozy, the President of France] said ‘laissez-faire’ economics, ‘self-regulation’ and the view that ‘the all-powerful market’ always knows best are finished.”
  • “‘America’s laissez-faire ideology, as practiced during the subprime crisis, was as simplistic as it was dangerous,’ chipped in Peer Steinbrück, the German finance minister.”
  • “Paulson brings laissez-faire approach on financial crisis….”
  • “It’s au revoir to the days of laissez faire.”[1]

Recent articles in The New York Times provide further confirmation. Thus, one article declares, “The United States has a culture that celebrates laissez-faire capitalism as the economic ideal….”[2] Another article tells us, “For 30 years, the nation’s political system has been tilted in favor of business deregulation and against new rules.”[3] In a third article, a pair of reporters assert, “Since 1997, Mr. Brown [the British Prime Minister] has been a powerful voice behind the Labor Party’s embrace of an American-style economic philosophy that was light on regulation. The laissez-faire approach encouraged the country’s banks to expand internationally and chase returns in areas far afield of their core mission of attracting deposits.”[4] Thus even Great Britain is described as having a “laissez-faire approach.”

The mentality displayed in these statements is so completely and utterly at odds with the actual meaning of laissez faire that it would be capable of describing the economic policy of the old Soviet Union as one of laissez faire in its last decades. By its logic, that is how it would have to describe the policy of Brezhnev and his successors of allowing workers on collective farms to cultivate plots of land of up to one acre in size on their own account and sell the produce in farmers’ markets in Soviet cities. According to the logic of the media, that too would be “laissez faire” — at least compared to the time of Stalin.

Laissez-faire capitalism has a definite meaning, which is totally ignored, contradicted, and downright defiled by such statements as those quoted above. Laissez-faire capitalism is a politico-economic system based on private ownership of the means of production and in which the powers of the state are limited to the protection of the individual’s rights against the initiation of physical force. This protection applies to the initiation of physical force by other private individuals, by foreign governments, and, most importantly, by the individual’s own government. This last is accomplished by such means as a written constitution, a system of division of powers and checks and balances, an explicit bill of rights, and eternal vigilance on the part of a citizenry with the right to keep and bear arms. Under laissez-faire capitalism, the state consists essentially just of a police force, law courts, and a national defense establishment, which deter and combat those who initiate the use of physical force. And nothing more.

The utter absurdity of statements claiming that the present political-economic environment of the United States in some sense represents laissez-faire capitalism becomes as glaringly obvious as anything can be when one keeps in mind the extremely limited role of government under laissez-faire and then considers the following facts about the present-day United States:

  1. Government spending in the United States currently equals more than forty percent of national income, i.e., the sum of all wages and salaries and profits and interest earned in the country. This is without counting any of the massive off-budget spending such as that on account of the government enterprises Fannie Mae and Freddie Mac. Nor does it count any of the recent spending on assorted “bailouts.” What this means is that substantially more than forty dollars of every one hundred dollars of output are appropriated by the government against the will of the individual citizens who produce that output. The money and the goods involved are turned over to the government only because the individual citizens wish to stay out of jail. Their freedom to dispose of their own incomes and output is thus violated on a colossal scale. In contrast, under laissez-faire capitalism, government spending would be on such a modest scale that a mere revenue tariff might be sufficient to support it. The corporate and individual income taxes, inheritance and capital gains taxes, and social security and Medicare taxes would not exist.
  2. There are presently fifteen federal cabinet departments, nine of which exist for the very purpose of respectively interfering with housing, transportation, healthcare, education, energy, mining, agriculture, labor, and commerce, and virtually all of which nowadays routinely ride roughshod over one or more important aspects of the economic freedom of the individual. Under laissez-faire capitalism, eleven of the fifteen cabinet departments would cease to exist and only the departments of justice, defense, state, and treasury would remain. Within those departments, moreover, further reductions would be made, such as the abolition of the IRS in the Treasury Department and the Antitrust Division in the Department of Justice.
  3. The economic interference of today’s cabinet departments is reinforced and amplified by more than one hundred federal agencies and commissions, the most well known of which include, besides the IRS, the FRB and FDIC, the FBI and CIA, the EPA, FDA, SEC, CFTC, NLRB, FTC, FCC, FERC, FEMA, FAA, CAA, INS, OHSA, CPSC, NHTSA, EEOC, BATF, DEA, NIH, and NASA. Under laissez-faire capitalism, all such agencies and commissions would be done away with, with the exception of the FBI, which would be reduced to the legitimate functions of counterespionage and combating crimes against person or property that take place across state lines.
  4. To complete this catalog of government interference and its trampling of any vestige of laissez faire, as of the end of 2007, the last full year for which data are available, the Federal Register contained fully seventy-three thousand pages of detailed government regulations. This is an increase of more than ten thousand pages since 1978, the very years during which our system, according to one of The New York Times articles quoted above, has been “tilted in favor of business deregulation and against new rules.” Under laissez-faire capitalism, there would be no Federal Register. The activities of the remaining government departments and their subdivisions would be controlled exclusively by duly enacted legislation, not the rule-making of unelected government officials.

  5. And, of course, to all of this must be added the further massive apparatus of laws, departments, agencies, and regulations at the state and local level. Under laissez-faire capitalism, these too for the most part would be completely abolished and what remained would reflect the same kind of radical reductions in the size and scope of government activity as those carried out on the federal level.

What this brief account has shown is that the politico-economic system of the United States today is so far removed from laissez-faire capitalism that it is closer to the system of a police state. The ability of the media to ignore all of the massive government interference that exists today and to characterize our present economic system as one of laissez faire and economic freedom marks it as, if not profoundly dishonest, then as nothing less than delusional.

Government Intervention Actually Responsible for the Crisis

Beyond all this is the further fact that the actual responsibility for our financial crisis lies precisely with massive government intervention, above all the intervention of the Federal Reserve System in attempting to create capital out of thin air, in the belief that the mere creation of money and its being made available in the loan market is a substitute for capital created by producing and saving. This is a policy it has pursued since its founding, but with exceptional vigor since 2001, in its efforts to overcome the collapse of the stock market bubble whose creation it had previously inspired.

The Federal Reserve and other portions of the government pursue the policy of money and credit creation in everything they do that encourages and protects private banks in the attempt to cheat reality by making it appear that one can keep one’s money and lend it out too, both at the same time. This duplicity occurs when individuals or business firms deposit cash in banks, which they can continue to use to make purchases and pay bills by means of writing checks rather than using currency. To the extent that the banks are then enabled and encouraged to lend out the funds that have been deposited in this way (usually by the creation of new and additional checking deposits rather than the lending of currency), they are engaged in the creation of new and additional money. The depositors continue to have their money and borrowers now have the bulk of the funds deposited. In recent years, the Federal Reserve has so encouraged this process, that checking deposits have been created equal to fifty times the actual cash reserves of the banks, a situation more than ripe for implosion.

[…]

http://mises.org/story/3165

What happens when everyone hates the state

Saturday, October 18th, 2008

Lew Rockwell has posted a simply wonderful article about ‘Joe the plumber’:

Joe the Outlaw

This whole campaign has been dreadfully boring, with gaffe-avoidance techniques squelching all spontaneity, and it doesn’t help that the ideological parameters of the election have been so narrowly drawn as to make any thinking person want to shut up both the candidates and the media that cover them so lovingly.

Still, one interesting point has emerged: the archetype chosen to represent mainstream America turns out to be a thorough-going outlaw in the best sense of that term. In this, he is a symbol of the age. We can look forward to the creation and emergence of ever more people like this in the coming years, as the state tightens its grip over every aspect of American life. We will all soon be outlaws.

The whole Joe the Plumber saga began when Joe Wurzelbacher from Toledo, Ohio, confronted Barack Obama about the candidate’s tax plans. He wanted to know if Obama would raise his taxes. In particular, he was planning to buy a company with a revenue of $250,000 per year. “Your new tax plan is going to tax me more, isn’t it?”

Of course the Republicans seized on this and exploited it. McCain keeps bringing him up in speeches. Republicans like to talk about taxes. They always seem to corner the budget-balancing, wealth-distributing Democrats with this topic, even though it is largely a distraction in an age of fiat money when the government can print all the revenue it needs. Still, the GOP likes the symbolism, so Joe had his 15 minutes of fame as a hero of the Right.

But the New York Times did some digging and discovered – horror – that Joe is doing plumbing without a proper business license. How dare he call himself a plumber! A license is required by Toledo, not just one license for a partnership but for everyone who is called a plumber. Joe has not taken the training courses, is not a member of the union, and cannot legally call himself a plumber.

The press reports on this were explosive, with reporters speaking as if they had caught this guy red-handed and completely discredited him. But what about the complete absurdity of the idea that you have to have a license in order to have the right to fix someone else’s sink? This is Soviet like, but deeply entrenched in American professional life.

The idea of licensing is that it assures quality standards. But this is just a cover used by guilds since the Middle Ages. The real goal of licensing is to create a professional cartel. Fewer providers means higher wages for those with licenses. It is all about boosting income by restricting competition. This is of course a violation of human rights because it impinges on the fundamental freedom of association.

In a market setting, there are plenty of quality controls through professional organizations. Consumers are free to use them or not. Many private producers attempt to create cartels through this means, but it is rarely successful. There are always producers who break with the guild in order to charge lower prices for their services. This is why they often seek state regulations, such as the requirement that all plumbers have a license.

By the way, this is true of all professions, including lawyering and doctoring. There was a time when entry into these fields was governed by the free market, and the system worked fine (contrary to legend). But the big players in these industries sought and obtained state privileges to officially license service providers. It was an income-boosting tactic and it worked.

By practicing plumbing without a license, Joe is bucking the system in a truly heroic way. He shouldn’t be condemned for this. He should be celebrated as a freedom fighter. He has a lot more to complain about than just taxes. It is the state itself in all its incarnations that is his true enemy. He ought to demanding answers from the politicians about their regulatory schemes to further restrict competition in a wide range of areas (banking for example!).

Most ridiculous is the idea that he shouldn’t be called a plumber because he doesn’t have a license. Here we see how licensing attacks even the use of our language. If he is doing plumbing, he is a plumber. Period.

And yet taxes are also close to Joe’s heart because it also turns out that he is delinquent on his property taxes, which are similarly too high and similarly unjust. The Ohio Department of Taxation placed a lien against him because $1,183 in personal property taxes had not been paid. In what sense can you say that you really own your home if the state can take it away if you don’t pay what the state says you ought to be pay? This is an attack on private property in the most fundamental sense.

So it turns out that we truly do have an American archetype in Joe Wurzelbacher. He is an outlaw in the same sense that our founders were outlaws. He lives outside the regulations of the state because these regulations attack his freedom and property. It was to end systems such as this that the American revolution came to be. And yet we find ourselves back in exactly the same system, and one incredibly worse in every way.

It is going to take something different from the election of the Republican to beat back the oppressions that vex his life. It is not complicated. It is a right belonging to all people that they can do what they want and keep what they own provided they do not impinge on anyone else’s right to do the same. The state is nothing but an organized attempt to deny this right. Joe has an enemy, but it goes way beyond Obama.

[…]

http://www.lewrockwell.com/rockwell/joe-the-outlaw.html

Needless to say, I agree 100% with all of this.

Which brings me to the title of this post.

What does it look like in a country where everyone hates the state?

It looks like Spain.

I was told a story two days ago about buying property in Spain by a builder. It went like this.

He was buying a house. Everything in Spain has to be Notarized meaning essentially that the state is a third party in all important transactions.

When it came to the day of the sale, the builders lawyers, the sellers lawyers, the builder and the seller were all sat in a lawyer’s office in Seville. The contracts were laid out. The Notary came in, and read the details of the contract, including the price to be paid, signed and stamped it and then left the room. What happened next is the extraordinary part.

Apparently in Spain, when people sell property, the price quoted is always significantly lower than the real price that is to be paid. The difference is made up by a cash payment on the day of the hand-over.

Everyone knows about this illegal activity.

The lawyers know about it.
The banks know about it.
The Notaries know about it.

EVERYONE in Spain knows about it, EVERYONE does it and no one bats an eyelid because they are ALL, UNANIMOUSLY AGAINST THE STATE with an equal and total hatred.

In essence, the state in Spain is partially ignored by the entire population, who seem to have reached a bizarre equilibrium where they all offset the insane taxes and duties imposed by the state by always doing a proportion of business transactions in cash. That every legal and banking professional knows about it and participates in openly it shows that civil society in Spain is a façade.

You would think that digital money would sound the death knell for this parallel economy, but you would be wrong. Because the entire population is doing this, the lawyers, judges, police, bankers, accountants…EVERYONE, no matter what system of control the state tries to put in, no one will be there to enforce it.

The Spanish it would appear (from this story in any case) to have partially woken up from the hypnotic state many people are under, where they falsely believe that the state is all powerful. As I have said many times on BLOGDIAL, all it takes is everyone to simply not obey for the state to completely lose power. And for all you terrified children out there, the state losing power does not mean the collapse of everything and total disorder; it simply means that they are out of your life, and everything gets done without without them.

The Italians are well on their way to this situation if we take the stories of unregulated restaurants running in private houses; opening and running a restaurant is so fraught with difficulties, taxes, regulations, duties, health and safety rules, inspections and all manner of nonsense that only an insane person would comply with any of it. Some people it seems, comply with none of it, and run restaurants from their own homes where you get everything that a restaurant gives you, but inside someone’s house. They pay nothing, are inspected by no one, make good money, mind their business…

and the sky does not fall down.

If the state will not back down, then it will end up being ignored and made irrelevant as people simply wake up and refuse to be exploited.

Irdial Philosophy: ‘Synthesis of Music’

Thursday, October 16th, 2008

1. Music is a language through which all the following properties may be expressed: harmony, creativity, happiness, beauty, poetry, complexity, magic, humour, provocation and culture.

2. The use of top quality products and technical knowledge to prepare them properly are taken for granted.

3. All sounds have the same musical value, regardless of their origin.

4. Preference is given to structure and texture, with a key role also being played by rhythm, melody and other traditional methods that make up a light form of music. In recent years red electric guitar and piano have been very sparingly used.

5. Although the characteristics of the products may be modified (volume, texture, shape, etc.), the aim is always to preserve the purity of their original flavour, except for processes that call for long cooking or seek the nuances of particular reactions such as the Maillard reaction.

6. Mixing techniques, both classic and modern, are a heritage that the artist has to know how to exploit to the maximum.

7. As has occurred in most fields of human evolution down the ages, new technologies are a resource for the progress of music.

8. The family of sounds is being extended. Together with the classic ones, lighter sounds performing an identical function are now being used (drones, pads, scratches, found sounds, animal sounds, etc.).

9. The information given off by music is enjoyed through the senses; it is also enjoyed and interpreted by reflection.

10. Hearing is not the only sense that can be stimulated: touch can also be played with (contrasts of volume and percussive textures), whereby the senses become one of the main points of reference in the creative music process.

11. The technique-concept search is the apex of the music pyramid.

12. Creation involves teamwork. In addition, research has become consolidated as a new feature of the musical creative process.

13. The barriers between the notes and noise world are being broken down. Importance is being given to a new noise music, particularly in the creation of the frozen sound world.

14. The classical structure of music is being broken down: a veritable revolution is underway in technology and composition, closely bound up with the concept of symbiosis between the noise and notes world; in music the “verse-chorus-verse” hierarchy is being broken down.

15. A new way of serving music is being promoted. The tracks are finished in the mixing room by the artist. In other cases the listeners themselves participate in this process.

16. Regional music as a style is an expression of its own geographical and cultural context as well as its musical traditions. Its bond with nature complements and enriches this relationship with its environment.

17. Instruments and arrangements from other countries are subjected to one’s particular style of music.

18. There are two main paths towards attaining harmony of notes and noises: through memory (connection with regional music traditions, adaptation, deconstruction, former modern styles), or through new combinations.

19. A musical language is being created which is becoming less and less ordered and more open, that on some occasions establishes a relationship with the world and language of art.

20. Mixes are designed to ensure that harmony is to be found in small doses.

21. Decontextualisation, irony, spectacle, performance are completely legitimate, as long as they are not superficial but respond to, or are closely bound up with, a process of musical reflection.

22. Noise Music is the finest expression of avant-garde music. The structure is alive and subject to changes. Concepts such as beats, notes, voices, morphs, etc., are coming into their own.

23. Knowledge and/or collaboration with experts from different fields (gastronomic culture, history, industrial design, etc.,) is essential for progress in music. In particular collaboration with the food industry and the scientific world has brought about fundamental advances. Sharing this knowledge among music professionals has contributed to this evolution.

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We must eat our way out of the desert.