Archive for the 'Economics' Category

Monkton Suppression: its plain WRONG

Saturday, April 25th, 2009

Lord Christopher Monckton, a former science advisor to Prime Minister Margaret Thatcher, claimed House Democrats have refused to allow him to appear alongside former Vice President Al Gore at a high profile global warming hearing on Friday April 24, 2009 at 10am in Washington.

In email, some people said….

*******wrote:
Beacuse Monkton is missing the point. Nobody is trying to inform him or fool him.

Did you read the article?

The Democrats ‘…rescinded his (Monkton’s) scheduled joint appearance at the House Energy and Commerce hearing’. If anything, its the Democrats that are trying to fool and misinform the public by not allowing open debate and the submission of evidence.

Monkton is not missing any point at all, he was prevented from making any point in the first place!

We need to prepare the ignorant mass for a massive change in life style and this includes what gore has done and will continue to do

First of all, who is ‘We’ in this instance?

Secondly, lets define terms:

“Ignorance is the state in which a person lacks knowledge and is unaware of something. This should not be confused with being unintelligent, as one’s level of intelligence and level of education or general awareness are not the same. The word “Ignorant” is an adjective describing a person in the state of being unaware. The term may be used specifically (e.g. “One can be an expert in math, and totally ignorant of history.”) or generally (e.g. “an ignorant person.”) — although the second use is used less as a descriptive and more as an imprecise personal insult.”

http://en.wikipedia.org/wiki/Ignorance

So, in order to not be ignorant, we must not lack knowledge, or be unaware of something. In order to be aware, we need to learn, and that means listening and reading.

By blocking Monkton, Al Gore and his democrat friends are fostering ignorance. They are doing this deliberately to boost their social engineering agenda, that they know is based on junk science and outright lies. That is how they have got the ignorant to say by rote, “the debate is over and there is scientific consensus about anthropogenic global warming”, which is of course a bald faced lie. There is no scientific consensus on AGW, they know it, you and I, the people who are not, by definition, ignorant, know it, and they want to stop anyone else from finding out what we both know to be true.

whilst scientists debate in private what to do about the various environmental issues such as , oil depletion, ice melt, co2 rise, population increase, water shortage, food shortage, soil erosion, etc

We know better than to conflate different subjects, and I know that you are playing devils advocate, so lets go there:

  • ‘oil depletion’ is a technical problem that will be adapted to by the market.
  • ‘Ice melt’ is not happening like the environmental Fascists keep saying it is; you and I both know that, because we study the facts.
  • ‘C02 rise’ is not the cause of ‘global warming’ and is not a problem; you and I both know this, because we have been exposed to the facts.
  • Water shortage is a problem of efficiency not supply, the same with food shortage. If they are a problem of supply, the market will adjust accordingly.
  • Soil erosion is a problem of mismanagement (even vandalism) by a very small number of companies, and is not related to the other things in that list.
  • Finally, population increase is not a problem related to oil depletion (even if there were only one car on earth, the oil would still run out since it is a finite resource) or ice melt (AGW lie), or food shortage (there is enough food to feed everyone on earth; this is a problem of will not supply) or water shortage (once again, this is a problem of efficiency not abundance) or soil erosion.

Waste disposal, water pollution, pollution by genetically modified organisms, electromagnetic spectrum poisoning and many other unrelated items could have been on that list obviously.

Ignorant environmentalists who do not have a grounding in or basic understanding of science, or the history of science and technology, or any experience in growing crops or taking care of the land, regularly bundle all of these things together under the banner of ‘the environment’ when they are quite separate and only very tangentially related.

If we are going to talk about AGW, we must stick to AGW and the evidence for or against it, without conflating it with anything that is not related directly to the scientific evidence. Anthropogenic Global Warming (AGW) is a theory (hypothesis). It is an unproven theory. What you do with theories is put them to the test with scientific observations. When people try and stifle observations that destroy the AGW hypothesis, as in any scientific matter, the people trying to suppress evidence are normally lying about their work or trying to preserve their positions and prestige. This is exactly what is happening, and the Monkton affair is just the latest example.

We either win this battle or we’re all to the dogs

This doesn’t make any sense, and it is certainly not ‘a battle’. If the AGW hypothesis is true, then the effects of AGW can be corrected by taking action to cut emissions. If it is not true, then trying to stop it by cutting C02 emissions is a waste of time and will represent a huge distortion in the progress of man, changing the future irrevocably and unnecessarily. The hypothesis has not been proven; what we have are a bunch of non scientists shouting very loud that the AGW hypothesis is correct, and who want to silence anyone with data that says it is not correct. That is not how science is done, and it is not how decisions that change ‘society’ should be made. If society is to be run on the basis of science, then the scientific method must be applied without distortion. What we are seeing is a denial and shutting down of the scientific method for political ends. That is a fact.

and monckton should know better.

This doesn’t make any sense either. Either he is lying and someone has proof of this, or he is genuine and wrong, and what he is saying can be disproved. Either way, the correct way to win debate is not to silence someone with evidence that challenges a hypothesis, but instead to provide evidence. The AGW side does not have this evidence, and Al Gore in particular, has been found to be a consummate liar, his film totally discredited as junk science and propaganda. The ignorant, unlike you and I, are emotionally invested in Gore and his unscientific garbage; that is the true reason why they hang on to all of this and him in particular, not because of any facts, but because they refuse to listen to the facts when they run contrary to their secular religion, ‘environmentalism’, the high priest of which is Al Gore.

he knows that life style needs to change.

Everyone knows that waste is bad, wether it be wasting paper or wasting water. What we must never do is throw away science in a blind ignorant panic and start to mix up things that do not belong together. We must also never run into the arms of the state for our solutions; they do not have any (competence or solutions); all they can offer is tyranny, violence and destruction.

What do you see in a decade?

This is an interesting question, and an interesting time horizon. I know some very ignorant people who thought that the world would be in total chaos, “in twenty years”….in 1980. Doomsayers have been with us for generations, environmental doomsayers are only the latest in the breed. The world is still going to be here. Technology is going to be better than we can imagine. The economy will be very different. AGW will be totally discredited as a hypothesis, and we will probably be back to ‘new ice age’ theories like the crackpot junk scientist James Hansen predicted in 1971 when he helped create the model that told us of the coming ice age. When that didn’t happen, he turned to global warming. Of course, it could be possible that the environmental fascists could stifle science with some absurd, ‘environmental hate speech’ statutes, effectively killing science in this field. Who knows? What I do know for certain, is that if the state and ignorant environmental religious fanatics set the agenda, we will be living in a sub optimal future constrained by the lack of imagination and prejudices of a small coterie of nutcases, cult leaders, power mad control freaks and their brainless followers.

How do you see yourself and your children?

That is a good question. I have five children. I do not want their fertility controlled by the people who I describe in the paragraph above. I do not want them taxed in a bogus ‘carbon trading’ scheme whose only goal is to enrich criminal bankers. I do not want their ability to travel to be restricted on the false pretext of AGW. I do not want them to live in a fascist world where science cannot be practiced because the ignorant masses forbid it out of religious fervor. It is my wish that my children are protected from the people who would make this planet a nightmare place. Anyone who wants their children to be caught in such a system, cannot possibly understand what it is they are asking for, and of course, once it is in place, it might never be removed for generations. We need only look at how long it took for the Soviet system to fall; seventy years. Millions of lives wasted and ruined by people who believed the theories of Marx and Lenin. Now we have Al Gore and his new religion of ‘environmentalism’; just as poisonous as Marxism Leninism, only now, it is not the proletariat against the capitalists, it is man against himself. In the environmentalism religion, man is is own enemy, and so he must destroy himself and his way of life to save himself. It is, like Marxism Leninism, utter, unscientific nonsense from beginning to end. If the environmentalists are not struck down, it will take until the models are disproved by the march of time to finally put to rest their wild imaginings. By that time, like Russia, all that will be left of the great civilizations will be wastelands of destroyed emasculated populations of cowed slaves.

And it will all have been for nothing.

As for me, I hope to be alive to see the utter destruction of all of this nonsense, from the insanity of Keynsian economics to the environmentalism religion and everything that flows from them. I live for the day when collectivism is dead and buried, where socialism and all of its masks are consigned to the garbage bin of history. There is a more than good chance that I am going to get my wish.

Neslon Mandela, president of South Africa. ANC in total control.
Barack Obama, for all his many fatal flaws, faults and failings, President of the United States of America.
The Dollar about to go the way of the hyperinflation Deutchmark.
The Internets…
Neodymium Magnets…
Cloned pets…
Cloned humans…

Oh yes, ANYTHING is possible, more than we expect.

Tough question! we really need to try and think about it because we are not part of the ignorant mass and we can go beyond some small propaganda.

I agree. Thinking about it is crucial. In order to do it, to think, we need to hear all of the evidence, not just the evidence that we like. We need to understand and apply the scientific method, and adhere to it strictly. We need to be mindful of the state, and its lust for power and absolute control over the individual and every aspect of life. Science is not propaganda, and neither is the truth. There are people out there who do not want anyone to have access to the facts. We must be suspicious of these people, and make sure that we really have all the facts to hand in spite of what they want. That is the only way that we can come to any sort of correct judgment, and think correctly.

Being rational thinking people, we are rightfully outraged that Monkton was not allowed to speak at the eleventh hour after having been invited to give evidence; what is Al Gore afraid of? That his hoax film would be exposed for the nonsense that it is? Thankfully, due to the internet that he invented, it is impossible to herd people anymore. Whatever the truth is about AGW, it will out.

What is more galling is that Gore and his religious fanatics are appealing to the legislature to enshrine their religion in the law. If they are making an appeal to the legislature, which ostensibly represents all of us equally, it is absolutely outrageous that a person offering scientific data that counters AGW was prevented from speaking. Quite apart from the debate surrounding AGW, this is an attack on Democracy and openness in government. People who believe in those two things are disgusted by this action.

If this were simply an academic debate, it would not be so important, but this is about the creation of law and the use of force on the population in order to carry out the environmentalist agenda. That evidence exists that Al Gore and his gang are dead wrong, and that this evidence is deliberately suppressed when evidence is about to be presented for the record is inexcusable.

Anyone who is reasonable, as you and I are, cannot be for such a suppression of facts.

It is only by the seeking of truth that we have had the technological means to manage our future placed into our hands. It is only through the seeking of truth that we will overcome all the myriad and very real problems that face us.

Suppressing truth, giving into irrational fear and running to the state is not going to solve anything; instead, it is going to make everything much worse, in every aspect.

Who Sampled

Friday, April 17th, 2009

Who Sampled is a fascinating site; when they start documenting the ‘DNA’ of House Music and all its decedents, it will be…just incredible!

http://www.whosampled.com/

Sites like this are under threat from the Intellectual Monopolists. This tool, if applied to all music could eventually show us where every musical idea came from…its just BRILLIANT!

And while we are at it, take a look at this heart squeezing comparison. Here is the instrumental.

It is sweet perfection.

Celente gets it right again

Wednesday, April 15th, 2009
Celente Calls for “Revolution” as the Only Solution

Kingston NY — Taxed to death, angry at government bailouts, outraged by Wall Street greed, and bitterly resentful of a system that rewards the undeserving rich, the American public is ready to revolt.

“The Tea Parties and Tax Protests sprouting across the nation, which we had predicted, are harbingers of revolution,” said Gerald Celente, Director of The Trends Research Institute. “But they are not enough. Much stronger and directed action is required. Our call for ‘Revolution’ will galvanize the people, destroy the corrupt ruling systems, and produce a prosperous and more just nation.”

The Revolution Celente proposes is unique in concept and bold in execution. It is about a lot more than just “taxation without representation.”

“Nothing short of total repudiation of our entrenched systems can rescue America,” said Celente. “We are under the control of a two-headed, one party political system. Wall Street controls our financial lives; the media manipulates our minds. These systems cannot be changed from within. There is no alternative. Without a revolution, these institutions will bankrupt the country, keep fighting failed wars, start new ones, and hold us in perpetual intellectual subjugation.”

The country is restless, and ripe for radical reform. There is no doubt protests will proliferate and intensify. In response, the government will call out the troops and bring in the police. They will use the Patriot Act to silence, detain, harass, persecute and prosecute groups and individuals exercising their Constitutional rights.

But Celente’s Revolution need not degenerate into violence or open warfare.

“Intellectual Revolution”

“I am calling for an ‘Intellectual Revolution’. I ask American citizens to free their minds from the tyranny of ‘Dumb Think.’ This is a revolution about thinking – not manning the barricades. It’s about brain power – not brute force.”

For society to survive and grow, it must wake up and grow up. Americans must acknowledge what their opinions are based on, who they listen to … and why.

What are America’s prime information sources? CNN, “The most trusted name in news”? Fox, “Fair and balanced”?

CNBC, “First in Business Worldwide”? The New York Times, “All the news that’s fit to print”?

Who do the people listen to? A closed circuit of familiar faces guaranteed to take predictable positions. Authorities on nothing, yet pronouncing upon everything; a cadre of media aristocrats, pretending they’re the people’s voice.

Bill O’Reilly, Steven Colbert, Rush Limbaugh, Keith Olbermann, Sean Hannity, Jon Stewart, Chris Matthews, Jim Cramer, Joe Scarborough, Anderson Cooper, Bill Maher.

TV tough guys, broadcast big mouths and Beltway blowhards have now been joined by featherweight comics throwing powder puff punches at sitting targets.

[…]

Yonkers Tribune

We like people who can predict the future; it means that they have all the facts to hand and are able to synthesize a very small number of highly probable futures that must result from those facts. It means they are more likely to know what they are talking about now, in the present, since they knew what they were talking about before. Those are the people who will reward your scarce attention.

What I imagine people like Celente are waiting for is the tipping point of popular outrage, after which they will be able to openly call for a physical rather than intellectual revolution.

Calling for a physical revolution too early is pointless; no one will stand up and you will be picked off. At the same time however, calling for feel good actions pushes the tipping point back, since it is the opposite of feeling good and secure that is the fuel for revolution. If the criminals manage to finish the job before everyone wakes up and the tipping point occurs, they win. The question is, do we have time to wait for a tipping point that might arrive too late?

Hmmmmmmmmmmmmmm….

Imagine a country where this intellectual revolution had happened, and everyone from coast to coast knew the entire facts and was informed to the level that Celente is. Once that point is reached, clearly there has to be a second step, the ‘real revolution’ that puts a stop to the criminals once and for all.

The media and all the know nothing (as opposed to the know everything bloggers) clowns who work in it are never going to change sides (either because they are too thick or are deliberately keeping a lid on public outrage). That means every chance we have to ‘go viral’ with a message should be taken as an opportunity to organize a real action that ‘fixes the hole in the roof’. Anything that is just a protest, which is a feel good, ‘Yellow Ribbon Moment‘, or which will have no effect is not a good thing. It is in fact, quite the opposite.

Its like draft dodgers in the 70’s having a tea party to protest going to VietNam and then showing up obediently for basic training and shipping off to fight ‘Charlie’. No, what you do is BURN YOUR DRAFT CARD and then do not show up.

Imagine 10 million people all having a ‘tea party’ and then BURNING their 1040 forms. Imagine millions of people demanding that they be paid the full amount of their wages, without any withholding of any kind, or they all go on STRIKE. Those two actions when done in the tens of millions are not something that can be ignored; demonstrations, tea parties, rock concerts, petitions – all of those things can and will be ignored. That is why we keep saying that it is pointless to do them.

Without a doubt, there is an information war going on, and educating the great mass of television fed flesh is an ongoing task. It is the furnace in the steam ship that needs to be constantly stoked. It is not however, the end goal; the end goal is Liberty in Perpetuity, and education is a means to that end.

And as for protests causing the police to be called out, once again, protesting is pointless.

Lets try and imagine an optimal revolution.

Its a revolution where no one is killed, and there is no violence. It would look something like the fall of East Germany.

All that is required for this revolution to take place is for everyone to stop obeying. That means everyone, to a man, refusing to obey anything and everything to do with the state.

That would be a revolution, an amorphous, nebulous, static swarm of disobedience, which could not be countered, any more than a truncheon wielder can batter a cloud to sweep it away. Without the compliance of everyone, the state would simply cease to exist; the monsters who control it would scream and shout hysterically at first, but would very quickly want to associate with the static mass as they desperately try to reposition themselves for a role in the new disorder. Those creatures are very good at sensing the right time to jump ship – when its about to do down – they are after all ‘political animals’ (rats).

I heard the other night, a commenter saying that if we start to win, “these people (the rats) are not going to go quietly into the night…”. That’s probably true. They will make a huge noise, but just like the aparatchicks in East Germany who lost their status and jobs, they were defeated and they did lose power there is no reason why this cannot happen via an unprecedented campaign that reaches tens of millions of people at the end of their tether. Many millions of people are ripe for it, ready for it, and as things get worse, will prefer it to having to take up arms.

The means to make this happen are at the tips of our fingers. Every month a new tool is written that shortens the time to critical mass. There is no reason why a peaceful transition to… something resembling a free country, cannot be done. It would happen in a very small amount of time; it may coincide with this event:

The Fed’s plan to increase the money supply 15-fold

But the real story starts to unfold when you realize the Federal Reserve is now hell bent on multiplying the U.S. money supply by a whopping fifteen times in 2009! This excellent article explains how this number is derived: http://www.marketskeptics.com/2009/…

Now think about this: If the Federal Reserve increases the U.S. money supply by a factor of fifteen, that means your dollars will be worth only 1/15th the value they represent right now. So a loaf of bread that costs a dollar right now could cost $15 when all this extra money ripples through the system. (Which will obviously take a couple of years, but 2009 will be the beginning of it.)

This is called “hyperinflation.” We’re talking about a loss of over 93% of the purchasing power of the dollar. That, my friends, is called a collapse of the currency.

And once it starts, the floodgates will be opened and the tsunami of investors and nations offloading dollars will be catastrophic and irreversible. By the time it’s all done, the dollar might end up losing 99.9% of its value, and you can use greenbacks to light a fire or wipe your back side, as they will be useless for anything else.

[…]

http://www.counterthink.com/025688.html

Unbelievable. It’s still hard to accept that the money really has already been wiped out, and that hyperinflation is already on its way like a mudslide coming to destroy everything in its path. It seems that either way, wether there is a revolution or not, the dollar is toast. People will either kill it trying to get out of it, or they will have their purchasing power wiped out by this 15-fold story high wave of dollars that are going to devastate everything in their path.

Anyone old enough to remember Pan Am knows what it is like to have to imagine life without something so huge, so integral to an industry, something so ‘too big to fail’, that its non existence seems an impossibility, and yet, Pan Am is no more, its just a memory…only its beautiful corporate identity remains. Pan Am also teaches us that nothing is too big to disappear from the face of the earth. No company, no system of money, including the dollar, no government (history should already have made THAT clear); literally nothing that exists is going to last forever, or even a few years if the conditions are right.

Once you accept that, the possibility of restored liberty does not seem like something in the far distance, but instead takes on the appearance of something within striking distance.

Communities print their own currency to keep cash flowing

Tuesday, April 7th, 2009

We at BLOGDIAL have blogged about this subject a few times before:

By David Coates, The Detroit News, via AP

In Detroit, three downtown businesses have created a local currency, or scrip, to keep dollars earned locally in the community.

By Marisol Bello, USA TODAY

A small but growing number of cash-strapped communities are printing their own money.
Borrowing from a Depression-era idea, they are aiming to help consumers make ends meet and support struggling local businesses.

The systems generally work like this: Businesses and individuals form a network to print currency. Shoppers buy it at a discount — say, 95 cents for $1 value — and spend the full value at stores that accept the currency.

Workers with dwindling wages are paying for groceries, yoga classes and fuel with Detroit Cheers, Ithaca Hours in New York, Plenty in North Carolina or BerkShares in Massachusetts.

Ed Collom, a University of Southern Maine sociologist who has studied local currencies, says they encourage people to buy locally. Merchants, hurting because customers have cut back on spending, benefit as consumers spend the local cash.

“We wanted to make new options available,” says Jackie Smith of South Bend, Ind., who is working to launch a local currency. “It reinforces the message that having more control of the economy in local hands can help you cushion yourself from the blows of the marketplace.”

About a dozen communities have local currencies, says Susan Witt, founder of BerkShares in the Berkshires region of western Massachusetts. She expects more to do it.

Under the BerkShares system, a buyer goes to one of 12 banks and pays $95 for $100 worth of BerkShares, which can be spent in 370 local businesses. Since its start in 2006, the system, the largest of its kind in the country, has circulated $2.3 million worth of BerkShares. In Detroit, three business owners are printing $4,500 worth of Detroit Cheers, which they are handing out to customers to spend in one of 12 shops.

During the Depression, local governments, businesses and individuals issued currency, known as scrip, to keep commerce flowing when bank closings led to a cash shortage.

By law, local money may not resemble federal bills or be promoted as legal tender of the United States, says Claudia Dickens of the Bureau of Engraving and Printing.

“We print the real thing,” she says.

Yes, we know; THAT IS THE PROBLEM!

The IRS gets its share. When someone pays for goods or services with local money, the income to the business is taxable, says Tom Ochsenschlager of the American Institute of Certified Public Accountants. “It’s not a way to avoid income taxes, or we’d all be paying in Detroit dollars,” he says.

Pittsboro, N.C., is reviving the Plenty, a defunct local currency created in 2002. It is being printed in denominations of $1, $5, $20 and $50. A local bank will exchange $9 for $10 worth of Plenty.

“We’re a wiped-out small town in America,” says Lyle Estill, president of Piedmont Biofuels, which accepts the Plenty. “This will strengthen the local economy. … The nice thing about the Plenty is that it can’t leave here.”

[…]

http://www.usatoday.com/money/economy/2009-04-05-scrip_N.htm

Now.

Imagine if all the dimwitted and destructive demonstrators got together to disseminate the ideas behind sound money and then print and promote their own money.

Wouldn’t that be effort better spent instead of smashing an RBS office? Or gathering impotently in the streets to be corralled like cows?

We have been over this again and again and again:

We had this debate on BLOGDIAL before the historic march organized by StopWar. Demonstrations are pointless because they do not achieve their ends, and the people who go on them are nothing more than stupid monkeys; the people who organize them are actually working for the enemy. Time and time again we have said this, (and other stuff) and had it proved, sadly.
Now the directors of this film, after everything we have said and witnessed are asking everyone to:

Join Amnesty
Visit and sign up online:
web.amnesty.org/pages/join-eng
Join Liberty
Visit and sign up online:
www.liberty-human-rights.org.uk/join
Email Your MP
Demand to know what they are doing about the issues raised in the film:
www.writetothem.com
Join the Mass Lone Demos
Demonstrations take place 5pm to 7:30pm on the third Wednesday of every month, forms [MS WORD] [PDF] must be handed in or sent by recorded delivery 1 week beforehand.
[…]

Joining Amnesty will not cause one law to be repealed, nor will it stop new bad legislation from being enacted.

Similarly, Joining liberty will achieve absolutely nothing at all.

Emailing the very people who pass the laws that enslave you is just STUPID.

And joining demonstrations we know about, don’t we?

Telling the truth is not enough. Acting is not enough. Correct Action is the only thing that will change what you want changed.

But you know this!

If you want to fix a problem, DO SOMETHING TO FIX THE PROBLEM, DO NOT do something THAT WILL NOT FIX THE PROBLEM.

If your problem is a currency that is being inflated by a criminal government who is stealing your value to give it to their partners in crime, and you cannot change the government, CHANGE THE CURRENCY YOU USE AND ACCEPT, since THAT IS THE PROBLEM.

Demonstrating against bailouts is like dancing to stop the damage to your car caused by hailstorms.

GET YOUR CAR UNDER COVER IF IT STARTS TO HAIL.

Demonstrating against taxation is like applauding to stop your drive from being blocked by snow in a blizzard.

IF YOUR DRIVE IS BLOCKED BY SNOW, GET A SHOVEL AND DIG YOURSELF OUT.

Demonstrating against a leaking roof is like waving a banner to stop being hungry.

IF YOU ARE HUNGRY, MAKE YOURSELF A SANDWICH.

It’s simple really, but to my constant amazement, even intelligent people persist in believing that demonstrations are a good thing. They are not, not because they are inherently bad, but BECAUSE THEY DO NOT WORK!

FOR THE MILLIONTH TIME

How Freedom Was Lost

Tuesday, April 7th, 2009

By Paul Craig Roberts

Envy, one of the seven deadly sins, is not unknown to Americans.

My last column noted the absurdity of Obama lumping the upper middle class in with the rich. The income distribution in the US is so skewed that the rich are found in the top one percent. The truly rich with the accoutrements associated with that class are in the top half of one percent.

Those points were lost on those Americans who regard anyone slightly better off than themselves as “rich.” A slightly bigger house in a better neighborhood, a BMW instead of a Toyota, and the ability to go on vacation without going into debt is all it takes to be rich in the minds of those whose eyes are green with envy.

This observation led me to the realization that freedom has been lost to envy.

Americans no longer know what freedom is. Historically, the definition of a free person is one who owns his own labor. Serfs and slaves were not free, because they do not own all of their own labor.

An income tax is inconsistent with the historical definition of freedom. Today in America government has a claim on every person’s labor, just as feudal lords, the government of that time, had claims on the labor of serfs and nineteenth century plantation owners had on slaves.

Understanding that an income tax was serfdom, our Founding Fathers wrote the US Constitution in a way that prevented an income tax. This was altered in 1913 with a constitutional amendment that some claim was not properly carried out.

This first step in the enserfment of the American people was taken in envy. The rich were the targets of the income tax. Once in place, the income tax was extended by law and by inflation until ordinary people were being taxed at rates several times as high as the original top rate for the rich.

After almost 100 years of income tax, generations have been born into serfdom and accept the government’s claim on their labor as normal, even just. Some say they don’t mind paying taxes to help the poor. They should look to see what share goes to the poor and what share to war, armaments, and the bailout of the Treasury Secretary’s rich friends.

The problem with a tax on a person’s labor is that it subtracts from a person’s independence. Without independence, it is difficult to exercise constitutionally protected rights, such as free speech.

In former times, family farms and businesses provided a measure of independence for many Americans. Today, most work for wages and salaries. The only real avenue to independence is to save part of one’s earnings and acquire enough wealth upon which to live. For most Americans, the government’s claim on their labor makes this impossible.

This is even more the case when government fails in its regulatory responsibilities and allows banksters to join in the plunder of the hard-pressed citizens.

The inheritance tax, another product of envy, has also done much to destroy the independence of the citizenry. For example, family owned independent media, once a source of independent power that held government accountable, has been lost to corporate media chains in order that families could pay inheritance taxes.

The same people who complain of rule by giant corporations support the inheritance taxes that transformed the face of American business. A family owned business has community roots and loyalties. A corporation’s owners are spread across the country and abroad. Their interest is the share price. The consequence has been that many corporations no longer even have national loyalties.

A corporation’s existence is not threatened by inheritance taxes, but a family owned business is. An inheritance tax is a tax on assets accumulated from income that has already been taxed. To raise the cash to pay the inheritance tax, businesses have to be sold or taken public. Eventually, their ownership is divorced from the community.

In the past, great wealth accumulations found their way into endowments of private universities, museums and public libraries, institutions that also contributed to the independence of citizens from government control.

Today even private universities and tenured faculty have lost pieces of their independence. There are subjects that cannot be investigated and opinions that cannot be expressed. We can rationalize the inhibitions by saying that they are proper subjects for censorship. However, once the process of suppressing thought and speech begins, it spreads.

The Tax Foundation has calculated that tax freedom day arrives on May 29 this year if the federal government’s budget deficit is included, as it should be, in the tax burden. That means that Americans work 42 percent of the year for the government, a higher tax rate than was endured by medieval serfs and one approaching that of a nineteenth century slave.

In the nineteenth century, there were “underground railways” that slaves could use to escape to freedom. In our time, “underground railways” are known as “tax havens.” Just as slave owners sought to abolish “underground railways,” our owners today seek to outlaw “tax havens.”

Some Americans will reject these analogies. They can test the validity of the analogies by refusing the government’s claim on their labor. Perhaps the best evidence of American serfdom is that most Americans do not even have the ability to test the validity of the analogy, because the government takes its share in withholding tax before wages and salaries are paid to us serfs.

http://www.vdare.com/roberts/090405_freedom.htm

Freedom on an axis

Tuesday, April 7th, 2009

Henry Porter: Intellectual Monopolist

Sunday, April 5th, 2009

Henry Porter has now completely discredited himself, with a shameful piece of luddite nonsense masquerading as a call for justice:

If indeed a new era of global responsibility has come into being with measures that actually restrain banks and isolate tax havens,

See this. The politics of sour grapes is alive and well at the grauniad. Irrational, illogical and destructive, like the rest of the ideas in this misguided, buggy whip cracking article.

it may be time for the planet’s dominant economic powers to focus on the destructive, anti-civic forces of the internet.

The greatest invention of the 21st century, equivalent in importance to the invention of the printing press, characterized as ‘destructive’ and ‘anti-civic’. The greatest force for empowering the little guy, thanks to which the playing field is made forever flatter; this is a ‘bad thing’. A set of devices and protocols that allow you to have a private conversation with anyone, anywhere in the world for free…and all the other myriad things it can do and will do. This is something ‘to be stopped’.

Only a total computer illiterate, luddite, anti-freedom, anti-human imbecile could believe such a thing.

Exactly 20 years after Sir Tim Berners-Lee wrote the blueprint for the world wide web, the internet has become the host to a small number of dangerous WWMs – worldwide monopolies that sweep all before them with exuberant contempt for people’s rights, their property and the past.

The internet and the World Wide Web are two separate things, as this commenter points out:

1) Tim Berners-Lee created the WORLD WIDE WEB, which is a distinctly different thing than the Internet. The World Wide Web is a layer on top of the internet that provides the websites that we see, but the largest portion of the internet is not visible, and does not interact with home computers. The internet is hardware, software, protocols, servers, undersea cables, standards, repeaters, satellites and so forth, all operating on the same protocols (IP, Internet Protocol). Tim Berners-Lee certainly created a revolution with the World Wide Web, but the creation of the Internet is an even grander achievement, which took decades, cost billions, and was mostly the responsibility of three groups: AT&T, Cisco Systems, and The United States Department of Defense.

In the strictest sense, the internet was born in 1971, just under 20 years before Sir Berner-Lee’s breakthrough, when many of the standards and theories that became Internet Protocol were developed.

2) Google is at the very center of the information-economy, and to say it produces nothing is ridiculous. They’re purpose is to effectively organize, catalog and make searchable the sum of the information of mankind. Everything they have constructed has been purposed about this goal, from their basic search engines to Google Earth.

One day we will live in a world where everything that is quantifiable knowledge will be contained and indexed by Google. And it will be a good day for mankind, because all that information will be equally available, so long as you speak the English language.

What Google does, to put it stiffly, is vastly more important than some novelist exploring how much the human condition absolutely sucks.

Thanks to the commenter called ‘Netwrk’.

Google is the most prominent WWM,

Is that something like WMD (Weapon of Mass Destruction) I wonder? Hmmmmmmm…. Guilt by acronym association!

but let’s start with an American site that is making a name for itself in straightforward misappropriation. Scribd.com offers free downloads of every kind of book, magazine, brochure, guide, research paper and pamphlet to 55 million readers every month. Many have been uploaded illegally. Last week the publishers of JK Rowling, Ken Follett and Aravind Adiga took action to remove books that had been illegally published on the site.

First of all, Scribd is a wonderful service. It is being used by the computer literate to disseminate knowledge. Only the completely ignorant, imagination-less luddites are against it.

Mr. Porter, you are on the wrong side of history. You need, as a matter of priority, to read ‘Against Intellectual Monopoly‘. The arguments you put forward against ‘piracy’ are from an imaginary world before the internet (like buggy whip salesmen before the motor car). The ‘community’ you speak of would be much better off living in a world without patents and copyrights, and Against Intellectual Monopoly proves it. The new services like Scribd, are clearly more beneficial than harmful, even with the present copyright regime in place. No matter how loud you shout, and complain, copyright, like alcohol prohibition is dead, and we are all better off for it.

To add injury to insult, your type of ‘thinking’ is disrupting the flow of materials that are out of copyright. Our own Scribd account was the subject of an attack from your lobby this last week.

On our Scribd account, I publish some of our works, and other historical works that are free of copyright. Because Scribd is under attack from mentally retarded luddites, we were sent the following:

Subject:

Copyright notification

From Jason Bentley, on 2009-04-03:

Message:

Dear Irdial-Discs,

We have removed your document “An Inquiry into the Nature and Causes of the Wealth of Nations” because our text matching system determined that it was very similar to a work that has been marked as copyrighted and not permitted on Scribd.

Like all automated matching systems, our system is not perfect and occasionally makes mistakes. If you believe that your document is not infringing, please contact us at copyright@scribd.com and we will investigate the matter.

As stated in our terms of use, repeated incidents of copyright infringement will result in the deletion of your Scribd.com account and prohibit you from uploading material to Scribd.com in the future. To prevent us from having to take these steps, please delete from scribd.com any material you have uploaded to which you do not own the necessary rights and refrain from uploading any material you are not entitled to upload. For more information about Scribd.com’s copyright policy, please read the Terms of Use located at http://www.scribd.com/terms

Jason Bentley
Directory of Community Development
jason@scribd.com

People like you might believe that all works should be copyrighted forever no matter how old they are. The fact of the matter is that copyrights were originally tolerated in the belief that they served society, and rewarded the creators of content whilst promoting innovation and creativity. This is why the term of protection was short, so that the works would pass into the public domain, where they could spread and be of benefit to the public after the creators had reaped the benefit of protection via a state sanctioned monopoly over their ideas and how they could be used and copied.

The work in question above is by Adam Smith, published in 1776:

An Inquiry into the Nature and Causes of the Wealth of Nations is the magnum opus of the Scottish economist Adam Smith. It is a clearly written account of economics at the dawn of the Industrial Revolution, as well as a rhetorical piece written for the generally educated individual of the 18th century – advocating a free market economy as more productive and more beneficial to society.

The work is credited as a watershed in history and economics due to its comprehensive, largely accurate characterization of economic mechanisms that survive in modern economics; and also for its effective use of rhetorical technique, including structuring the work to contrast real world examples of free and fettered markets.

[…]

http://en.wikipedia.org/wiki/The_Wealth_of_Nations

In case you are unfamiliar with it.

I replied:

From Irdial-Discs,
on 2009-04-03:

Please restore this deleted document. It is in the public domain:

http://en.wikipedia.org/wiki/The_Wealth_of_Nations

It would be an interesting project for Scribd to add the entire contents of the Project Guttenberg texts to your checking system, so that you can exclude documents like this from being flagged.

./akin
./irdial

Scribd.com complied:

Jason Bentley, Apr 04 10:33 pm:

Hi,

I’m sorry that our automated copyright protection system misidentified your document as infringing. We try very hard to protect the rights of authors, and sometimes our copyright robot get a little oversensitive.

I’ve restored your document and removed all references from your account.

Cheers,

Jason

***

Jason Bentley
Community Director and Copyright Agent
Scribd, Inc.

This is the sort of world Henry Porter wants; a world where everything is unavailable because of the incredibly small number of giant publishers and their prostitute luddite lackeys whining that the old days are over. At the very least, Porter is calling for a web where everything must be screened by copyright police before it is posted. This is the same voice that wants ‘civil liberties’; the very voice that is calling for a fascist regime to enforce the insanity of copyright transposed to the web.

Scribd.com complied, but what is interesting is the company’s institutional lack of guilt when the piracy was exposed.

‘Piracy’ (as it is defined today) only takes place when someone sells a book or movie; a ‘movie pirate’ is someone who copies movies onto DVDs and then sells them instead of buying discs from the manufacturer and re-selling them. People who copy movies are not ‘Pirates’, what they do is not ‘piracy’ and in fact the act of copying music, books and movies is beneficial to society even if they sell copies. Furthermore, the people who make movies, music and who write books are able to make a living without copyright laws (state enforced monopolies) in place. This might come as a shock to people like Henry Porter, who writes in the bosom of a nest of copyright brainwashed computer illiterate vipers, but it is a fact nonetheless. Against Intellectual Monopoly has some illuminating examples of why (in this case patents) are a bad thing:

In most histories, James Watt is a heroic inventor,responsible for the beginning of the industrial revolution. The facts above suggest a different interpretation. Watt is a clever inventor who, after getting one step ahead of the pack, remains ahead not by superior innovation, but by clever exploitation of the legal system. The fact that his business partner is a wealthy man with strong connections in Parliament, is not a minor help.

The evidence suggests that Watt’s efforts to use the legal system to inhibit competition set back the industrial revolution by a decade or two. The granting of the 1769 and, especially, of the 1775 patents likely delayed the mass adoption of the steam engine:innovation is stifled until his patents expire; and very few steam engines are built during the period of Watt’s legal monopoly. From the number of innovations that occur immediately after the expiration of the patent, it appears that Watt’s competitors simply waited until then before releasing their own innovations in an effort to avoid the fate of Hornblower. Also, we see that Watt’s inventive skills are badly allocated: we find him spending as much time engaging in legal action in an effort to establish and preserve a monopoly as he does in actual invention.

Indeed, this story contains most of the important elements of our argument Against Intellectual Monopoly. The sort of wasteful effort to suppress competition and obtain special privileges we have seen in Watt is one of the greatest dangers of monopoly. It is commonly referred to as rent-seeking behavior. Watt’s attempt to extend the duration of his 1769 patent is an especially egregious example of rent seeking: the patent extension is clearly unnecessary to provide incentive for the original invention, which had already taken place. On top of this, we see Watt using patents as a tool to suppress innovation by his competitors, such as Hornblower, Wasborough and others. Finally,there is the slow rate at which the steam engine was adopted be for the expiration of Watt’s patent. By keeping prices high and preventing other from producing cheaper steam engines, Boulton and Watt hampered capital accumulation and slowed economic growth. Intellectual property, as it is currently conceived, has other damaging social effects but the three listed here and exemplified in Watt’s story are the most serious ones: rent-seeking, innovation suppression, and slow-down in the process of economic growth. We shall see that Watt’s experience is the rule, not the exception.

[…]

Against Intellectual Monopoly

Anyone with even one brain cell can see the parallels between this story and the others in Against Intellectual Monopoly in the context of Google, Scribd, the services that run on the Bittorrent ecosystem and the other internet services today. The world, ‘the community’ that Porter is so eager to protect and serve would have been far better served if Watt had not been able to use government force to stop other inventors from improving the steam engine. As soon as Watt’s government granted monopoly ended, the efficiency and power of steam engines increased at a rate far greater than when Watt was able to stifle innovation with his patent, and what’s more, when his patent expired, Watt’s profits continued undiminished.

This is a very important lesson for everyone involved in any sort of creativity. We at Irdial knew instinctively that releasing our catalogue for free would benefit us more than keeping it locked up. That is why we freed our works for non commercial use in 1999. If we lived in a society where there were no copyrights at all we would gladly give up the commercial use rights in an instant.

Instead of fighting the reality, resisting the new tools and clinging on to broken models, it made sense to us to embrace it all and use it to get our works in as many places as possible. To us, it’s obvious. To people like Henry Porter, the future and its wondrous tools are a threat to be destroyed, and he doesn’t care about all the historical works that are burned in his insane quest to cleanse the internet of copyrighted works. We see the direct result of people like him in the erasure of Adam Smith’s work from Scribd.

Instead of admitting it and apologising, it issued a statement claiming Scribd possessed “industry-leading copyright management system which goes above and beyond requirements of Digital Millennium Copyright Act”.

So, Scribd should now apologize for innovating, for bringing millions of documents to millions of people, for nothing. They should apologize for having to invent a piece of filtering software thanks to lobbyist bought government pressure, which might never work accurately and which diverts time away from the software developers improving Scribd, and which diverts capital away from improving Scribd. This is totally insane, and exactly what is described in Against Intellectual Monopoly. Thanks to the luddites like Henry Porter and his distant cousin Watt, innovation is being retarded, as companies divert resources to satisfy monopolists.

That’s like a drunk driver protesting innocence because he’s covered by the best insurance company. What matters is the crime, the theft of someone else’s content, which has taken care, labour, money and expertise to publish.

This is wrong. What you are doing is protesting that the internet should not exist so that you can continue to collect a rent on your works at the expense of the entire world’s population and at the expense of the progress of mankind itself.

What matters here is that copying books is in no way ‘a crime’, is entirely beneficial to society, and in no way detracts from an authors ability to make money on the works that they have taken care, labour money and expertise to create. I have no doubt that some non-BLOGDIAL readers will not believe that this is even possible. Not only is it possible, but we have made money from giving our works away for free, and Against Intellectual Monopoly has examples in it where works that are not copyrighted have made millions for publishers; look at the case of the title The Final Report of the National Commission on Terrorist Attacks Upon the United States where the publisher (Norton) printed this rather large book at a huge profit, despite there being no copyright on the text and it being downloaded world-wide by millions of people:

[…] To be clear: what Norton received from the government was the right to publish first, and the right to use the word “authorized” in the title. What they did not get was the usual copyright – the right to exclusively publish the book. Because it is a U.S. government document, the moment it was released, other individuals, and more important, publishing houses, had the right to buy or download copies and to make and resell additional copies– electronically or in print, at a price of their choosing

[…]

Assuming that St. Martin’s has some idea of how to price a book to avoid losing money, this suggests Norton made at the very least on the order of a million dollars. We also know that their contract with the government called upon them to donate their “profits” to charity – and we know that they did in fact “donate $600,000 to support the study of emergency preparedness and terrorism prevention.”

Against Intellectual Monopoly

[…]

The point is that even if Scribd removes books, it still allows individuals to advertise services for delivering pirated books by email, which must make it the enemy of every writer and publisher in the world. In effect it has turned copyright law on its head: instead of asking publishers for permission, it requires them to object if and when they become aware of a breach.

Advertising a service is everyone’s right. The right to publish (or ‘freedom of the press’) is not ‘the right of newspapers and journalists to write what they like without restriction’. In this case, ‘The Press’ means not ‘the press corps’ but THE PRINTING PRESS as in a device to disseminate writing to a large audience. Journalists always make this mistake; they go berserk when their newspapers face censorship, but when its Bloggers or individuals who claim their right to print and distribute whatever they like, then it’s another story. Shameful.

Scribd is the friend of every writer and publisher in the world, wether they know it or not. Copyright law needs to be abolished, not just turned on its head, and the internet has made this progress begin to happen. If it does not take place before hand, the deaths of the luddites like Henry Porter and his employers and their replacement by ‘The Pirate Generation’ will spell the end of copyright, and the removal of all related legislation from the statute books. As it is, if these laws remain on the books, hundreds of millions of people will be and are being criminalized at the behest of luddites, lobbyists and the corporations they serve…people like Henry Porter.

Google presents a far greater threat to the livelihood of individuals and the future of commercial institutions important to the community.

This is so absurd I actually LOL’d. Google makes it easy to find authors; easier than it has ever been before. It makes all sorts of research easier by orders of magnitude; every link on this page was found for me by Google. Henry Porter wants a world where this, the greatest research tool ever invented is deliberately broken, just like Scribd is being broken. This is the ‘benefit’ he wants to bring to ‘the community’, and it is laughable that he thinks that ‘commercial institutions’ work for the benefit of ‘the community’… only when they work for HIS benefit… which community PRECISELY is he talking about? I think it’s the community of published authors and publishing houses; the intellectual monopolists, who want to strangle innovation and hold humanity back.

One case emerged last week when a letter from Billy Bragg, Robin Gibb and other songwriters was published in the Times explaining that Google was playing very rough with those who appeared on its subsidiary, YouTube. When the Performing Rights Society demanded more money for music videos streamed from the website, Google reacted by refusing to pay the requested 0.22p per play and took down the videos of the artists concerned.

This is called ‘rent seeking‘; the artists concerned, Socialist Billy Bragg and his strange bedfellow, falsetto Robin Gibb, intellectual monopolists both, threatened Google that if they did not pay the rent for videos on YouTube they would face action. Google removes the videos, the infringement, and then is accused of ‘playing very rough’. Do they want their material infringed or do they not? They complained, and their wishes were acceded to; why are they complaining? The fact of the matter is that they want to collect rent. They would like their music to be posted and hosted on YouTube without them having to lift a finger, but they want the rent also. 22p per play is absolutely ridiculous, and if every rent seeker asked for and recieved this money, there would be no YouTube. YouTube is turning out to be one of the most potent political tools available from, the UK to Saudi Arabia. Henry Porter wants it killed so that his (completely irrational) rent seeking socialist friends can make money they do not deserve.

Socialists really are ridiculous creatures; they claim that they are for the masses being empowered, but when something comes along that gives them more power than anyone has ever had EVER, they are AGAINST IT, and want to DESTROY it. The fact is that Socialists are not for anyone other than themselves; they want to be the bosses, the controllers with absolute power. Billy Bragg is a perfect example of this. A luddite that would smash the internet so he can collect rent. Robin Gibb is at least consistent; he is a rich man who doesn’t want the party to end – at least he is honest.

It does this with impunity because it is dominant worldwide and knows the songwriters have nowhere else to go. Google is the portal to a massive audience: you comply with its terms or feel the weight of its boot on your windpipe.

This is total garbage. Google can in no way be characterized as putting a boot on anyone’s windpipe…though in the case of Billy Bragg, that would save us from hearing his ‘singing’.

Secondly, songwriters have everywhere else to go. This is because the internet is essentially infinite; they can set up their own site and sell their wares; they have had over a decade to do it, and have failed miserably to meet this new challenge. Instead of buying Napster, they destroyed it. Instead of working with Mininova and The Pirate Bay, they are trying to outlaw them. Even Apples iTunes store, where they were making money, met with fierce resistance from them. The fact of the matter is, these people, Henry Porter, Billy Bragg and the entertainment industry are collectively unintelligent and unimaginative. Were this not the case, they would have seen the opportunity for super-distribution of their works and embraced the internet at the beginning.

Despite the aura of heroic young enterprise that still miraculously attaches to the web, what we are seeing is a much older and toxic capitalist model – the classic monopoly that destroys industries and individual enterprise in its bid for ever greater profits.

That is incorrect; what we are seeing IS heroic young enterprise, being misunderstood and slandered by old rent seeking luddites, who are the REAL monopolists in this story, the Intellectual Monopolists. It is Henry Porter that is trying to destroy industry’s enterprise – new industries – Google, Scribd and all the other content services empower individual enterprise by allowing the creative to circumnavigate the luddite gatekeepers at the Guardian and the major record labels.

Google make profits and the entire world benefits from a tool unprecedented in human history, that no one has to pay for to use, and which helps authors and publishers make more money and reach more people than they ever dreamed possible. Only a total fool would be against it, and given the facts of the history and nature of copyright and patents, only the evil and utterly selfish would try to destroy it.

Despite its diversification, Google is in the final analysis a parasite that creates nothing, merely offering little aggregation, lists and the ordering of information generated by people who have invested their capital, skill and time.

This is covered by the comments on this very bad and revealing article:

2) Google is at the very center of the information-economy, and to say it produces nothing is ridiculous. They’re purpose is to effectively organize, catalog and make searchable the sum of the information of mankind. Everything they have constructed has been purposed about this goal, from their basic search engines to Google Earth.

[…]

To say that Google produces nothing is ridiculous. As many people have mentioned the search algorithms they have developed make the internet useful for millions. One might as well dismiss Dr Johnson for compiling a book of other people’s words.

Beyond search they have produced some of the easiest to use and most compelling software available. GMail, Google Maps, Google Docs and Google Calendar have reset expectations for what can be done in internet applications.

They may not be the perfect institution and I love to know if one ever existed. I want to live in a world of Newspapers and Google but if Newspapers don’t survive it won’t be Google’s fault.

[…]

“… Google is in the final analysis a parasite that creates nothing, merely offering little aggregation, lists and the ordering of information generated by people who have invested their capital, skill and time”.

This is utter blindness. It’s like arguing that the Ordinance Survey have never done anything useful, because everything on their maps was created by other people, or that Henry Ford added no value because he only shuffled around metals, wood and leather into different shapes.

Google have made searching on a vast scale incredibly easy, and they are the only company who has done so, covering everything from Ethiopian restaurants to the notebooks of Leonardo, at any time, from anywhere. In fact, for absolutely nothing, they provide me with a service worth several times more than any other company does, bar none. If this puts them in a position to earn a lot of money, good on them. If Billy Bragg would still prefer to be back in the workers’ paradise of the GDR, he’s welcome to it.

Closer to home, I note that 95+% of what the Guardian provides overlaps several times over with what is provided by the Daily Telegraph, the Irish Times, the Economist, etc, and that the marginal value of any one of these is minimal. The challenge for newspapers is to make themselves distinctively useful, (e.g. the New Yorker’s employment of Sy Hersh), rather than, like the Guardian, recycling a huge amount of content from the AP in manner that makes it, “in the final analysis, a parasite …”.

[…]

What a bitter and twisted load of oldschool, oldfashioned, defensive Fleet-Street-Journalist dinosaurian rubbish this article really is.

Just listen to the decription of the Internet and Google: “amoral”, “destructive, anti-civic”, “exuberant contempt”, “threat to livelihood of individuals”, “a parasite that creates nothing”, “delinquent”, “sociopathic”, “invaded the privacy of millions”, “needs to be stopped in its tracks”.

This is the typical rant of the dying newspaperman – yes, mate, your “power” as a “journalist” with your beholden readers IS on the wane, your influence IS falling, your role IS diminishing – I can understand why you see the Internet and Google as bad.

But this isn’t journalism – like so much we now see inthe papers against the Internet, it’s massively ill-informed, superficial, frightened, self-serving invective. I fear it will do nothing more than to confirm the authors as dinosaurs who have received the last rites.

[…]

And there you have it.

On the back of the labour of others it makes vast advertising revenues – in the final quarter of last year its revenues were $5.7bn, and it currently sits on a cash pile of $8.6bn. Its monopolistic tendencies took an extra twist this weekend with rumours that it may buy the micro-blogging site Twitter and its plans – contested by academics – to scan a vast library of books that are out of print but still in copyright.

Twitter, if they want to be bought by Google, is a private matter. It’spurchase will benefit the users of that service…in any case, that has nothing to do with the thrust of this article, intellectual monopoly. It does point however shine a light on Henry Porter’s hatred of the rich and innovative, his sour grapes politics. As for ‘contested by academics’, this is ‘some people say‘. That is the company that Henry Porter keeps.

One of the chief casualties of the web revolution is the newspaper business, which now finds itself laden with debt (not Google’s fault) and having to give its content free to the search engine in order to survive.

Newspapers are dying because they do not provide what people need. If the Guardian provided what people want, the truth, then it would be a thriving business. The fact of the matter is, as the commenter says above, the Guardian’s content overlaps with every other newspapers content. they run the same stories, from the same point of view, and everyone is sick of it. This is why readers have turned away from newspapers:

Definitely the most ill-informed piece of propaganda I have read in a very long time and a great example of why nobody wants to pay for newspapers

Well said commenter. This is an absurd article that flies in the face of reality and the truth; why should anyone PAY to be lied to when they can get the truth for free and unfiltered from the internets?

Newspapers can of course remove their content but then their own advertising revenues and profiles decline. In effect they are being held captive and tormented by their executioner, who has the gall to insist that the relationship is mutually beneficial. Were newspapers to combine to take on Google they would be almost certainly in breach of competition law.

Newspapers, if they were to remove their content, would be committing suicide. They should do this, and go out like an hero instead of whining like spoiled brats. They have executed themselves by prostituting their non advertising column inches for anyone with money, and the Guardian is the biggest whore of them all. Were newspapers to combine to take on Google no one would notice; the content in all the papers is the same, and so it is already like there is only one newspaper… no breach of competition rules is possible between those bird cage liners.

In 1787 Thomas Jefferson wrote: “Were it left to me to decide whether we should have a government without newspapers or newspapers without a government, I should not hesitate to prefer the latter.” A moment’s thought must tell us that he is still right: newspapers are the only means of holding local hospitals, schools, councils and the police to account, and on a national level they are absolutely essential for the good functioning of democracy.

I think this Thomas Jefferson quote is more appropriate:

“Knowledge is like a candle. When you light your candle from mine, my light is not diminished. It is enhanced and a larger room is enlightened as a consequence.” Thomas Jefferson

Quote found by Google of course.

Sharing knowledge is just like sharing a light from a candle; Henry Porter and the intellectual monopolists want us all to live in darkness.

If, at a time of profound challenges, newspapers fall out with Google, it could be pretty serious for British society, which is why I referred earlier to anti-civic forces.

British society is in trouble because the newspapers have utterly failed to raise the alarm about the police state. They have failed to rally the people into revolt. They have failed in the very task that Henry Porter believes is their raison d’etre and sacred duty. The internet has done more than any newspaper to galvanize inform and solidify the revolt against the police state, as we are well aware; even email circulars are more powerful than newspapers in properly informing the public. Then there are the Blogs which have changed the game entirely. And now, YouTube, which shamed television news into playing catch up on one of the most important speeches delivered in front of a sitting Prime Minster ever. That is a blog post, by the way, NOT a newspaper article. No, newspapers are an irrelevance now thanks to their prostituting their power, and this article, this shameless, vulgar piece of transparent propaganda, is a perfect example of it.

Of course the company founded by Sergey Brin and Larry Page in 1998 – now reckoned to be the world’s most powerful brand – does not offer any substitute for the originators of content nor does it allow this to touch its corporate conscience. That is probably because one detects in Google something that is delinquent and sociopathic, perhaps the character of a nightmarish 11-year-old.

The only delusional people in this story are Henry Porter and the lobby he represents and is shilling for. The only people without conscience are the ones who would retard or destroy man’s progress for their personal profit. It is Henry Porter who is acting like a breast fed 11-year-old, whining that the world is changing and he can no longer get his ‘bitty’….”I want my rent mummy!!! WAAAAH WAAAHHH WAHHHHH

This particular 11-year-old has known nothing but success and does not understand the risks, skill and failure involved in the creation of original content, nor the delicate relationships that exist outside its own desires and experience.

Henry Porter is painfully unaware about the history and true nature of intellectual monopoly, and how it is damaging to society. He wants to prevent failure of fossilized and sclerotic businesses by strangling innovators so that methods can never change and business and culture remain in stasis.

There is a brattish, clever amorality about Google that allows it to censor the pages on its Chinese service without the slightest self doubt, store vast quantities of unnecessary information about every Google search, and menace the delicate instruments of democratic scrutiny.

Henry Porter perfectly conveys spoiled and ignorant immorality that poses as righteous indignation. He chastises Google for obeying the laws of other countries while whining that Google does not better obeying the insane laws of the UK. This is hypocrisy, but when it comes to China, all journalists at the Guardian are in the same boat.

And, naturally, it did not exercise Google executives that Street View not only invaded the privacy of millions and made the job of burglars easier but somehow laid claim to Britain’s civic spaces. How gratifying to hear of the villagers of Broughton, Bucks, who prevented the Google van from taking pictures of their homes.

And yet, all the journalists who jumped on Google for Streetview, which everyone can use equally, did not make so much noise when the CCTV started to go up, which no one can access but the state. How is it that CCTV, ANPR etc is not as bad as Google Streetview? Henry Porter has been making the right noises about CCTV to be sure, but the newspapers as a whole have totally FAILED to make the right noises about CCTV. Google Streetview is NOTHING compared to the real-time CCTV and ANPR that the state has, and yet, where is the universal moral outrage? Where are the pig ignorant little Britain villagers taking down the surveillance cameras en masse? Oh, I remember, Henry Porter says:

Don’t get me wrong: I’ve always believed that the democratic state must be given power to act on behalf of us

[…]

http://irdial.com/blogdial/?p=1499

which means that he is FOR CCTV as long as the democratic state is behind it, acting on behalf of us. Those villagers are FOR CCTV as long as its the government behind them! They are all as thick as two short planks.

We could do worse than follow their example for this brat needs to be stopped in its tracks and taught about the responsibilities it owes to content providers and copyright holders.

[…]

http://www.guardian.co.uk/commentisfree/2009/apr/05/google-internet-piracy?showallcomments=true

I am happy to say that articles like this are the death rattle of the pure evil that is newspaper journalism.

I am also happy to report that the majority of the comments on his article are entirely against it, for all the right reasons.

Farewell newspaper journalism, don’t let the door slam behind you.

Deconstructing the G20 Communique

Thursday, April 2nd, 2009

1. We, the Leaders of the Group of Twenty, met in London on 2 April 2009.

This, we know.

2. We face the greatest challenge to the world economy in modern times; a crisis which has deepened since we last met, which affects the lives of women, men, and children in every country, and which all countries must join together to resolve. A global crisis requires a global solution.

FALSE. It is not true that all countries must join together to resolve this ‘crisis’, and it is also false that this ‘crisis’ reqires a global solution.

The adage ‘Think locally act globally’ applies here. Each country needs to have its own sovereign currency that is based on Gold coins. That is the long term solution to this problem.

3. We start from the belief that prosperity is indivisible;

FALSE. Prosperity is the byproduct of liberty. It is liberty that is indivisible.

that growth, to be sustained, has to be shared;

FALSE. Not only is the idea of sustained growth not an absolute, but the idea that it has to be shared is also absurd.

and that our global plan for recovery must have at its heart the needs and jobs of hard-working families, not just in developed countries but in emerging markets and the poorest countries of the world too; and must reflect the interests, not just of today’s population, but of future generations too.

If that is true, then priority number one must be the adoption of a monetary system where the hard earned work value of the people cannot be arbitrarily destroyed by the fallible leaders of the G20. If that is true, then no one anywhere should accept a fiat currency or legal tender laws that make it impossible for people to preserve their wealth and prosperity in the long run.

We believe that the only sure foundation for sustainable globalisation and rising prosperity for all is an open world economy based on market principles, effective regulation, and strong global institutions.

It is not at all agreed that ‘sustainable globalisation’ is a desirable outcome. Rising prosperity, for sure, many people on the earth are living lives that are not optimal; the question is what is the best way that they can serve their own interests. Market principles create the prosperity that the leaders of the G20 are now able to squander. ‘Effective regulation’ is code for total market regulation, which means the death of market principles. ‘Strong global institutions’ means global governance, anathema to the free market and a death blow to it.

4. We have today therefore pledged to do whatever is necessary to:

LIE. If this were the case, they would immediately cease and desist from interfering in the process of the market.

restore confidence, growth, and jobs;

They cannot do this. The market is more powerful than any of them or even 1000 of them.

repair the financial system to restore lending;

They cannot do this. They do not have the ability to do this. If they could do this, it would be the wrong thing to do because credit was the cause of this problem.

strengthen financial regulation to rebuild trust;

Trust is not the problem. More onerous regulation will not restore it; it will further damage the market.

fund and reform our international financial institutions to overcome this crisis and prevent future ones;

You do not have the money to fund and reform international financial institutions. You can only print money or tax citizens. You cannot tax any further without a global revolt, so you will steal the money by printing more fiat currency. This will worsen the ‘crisis’, hasten and increase the severity of the implosion.

promote global trade and investment and reject protectionism, to underpin prosperity; and

Global trade does not need promotion. Companies are very good at selling their wares world-wide. Investors do not need encouragement to find places to put their money. If you get out of the way and remove regulations and restrictions money will flow at the speed of light to where it is needed.

build an inclusive, green, and sustainable recovery.

These are weasel words, inserted to placate the adherents of the new secular religion ‘Environmentalism’.

By acting together to fulfil these pledges we will bring the world economy out of recession and prevent a crisis like this from recurring in the future.

And if you fail, will you all collectively resign and cease to interfere in matters beyond your understanding?

5. The agreements we have reached today, to treble resources available to the IMF to $750 billion, to support a new SDR allocation of $250 billion, to support at least $100 billion of additional lending by the MDBs, to ensure $250 billion of support for trade finance, and to use the additional resources from agreed IMF gold sales for concessional finance for the poorest countries, constitute an additional $1.1 trillion programme of support to restore credit, growth and jobs in the world economy.

Selling Gold? Anyone with common sense will see this as a great buying opportunity. The price of Gold (real money) is going to go down on this announcement, and then, once these insane measures fail to work, it will skyrocket.

This paragraph fails to say where the $1.1 trillion dollars promised is going to come from. It also does not say who is going to receive these fiat funds.

Together with the measures we have each taken nationally, this constitutes a global plan for recovery on an unprecedented scale.

LIE. This constitutes theft on a scale previously unknown to mankind. This $1.1 trillion has to come from somewhere. It can either come from the printing press, or the savings of a nation or from taxation. Either way, it is going to come from somewhere, and then it is going to be given to someone at the diktat of a small handful of people. This is more than insanity. It is criminal. We note that none of the citizenry of the G20 were asked to vote wether or not ‘their’ money was to be used in this way. This ‘solution’ was arrived at in secret and delivered as a fait accomplit. No one with any decency would accept such a thing. And to top it all off, this solution WILL NOT WORK.

6. We are undertaking an unprecedented and concerted fiscal expansion,

You cannot make something out of nothing. Value cannot be created out of nothing. Any fiscal expansion must come from the production of work; governments are unproductive – they cannot produce anything, they can only take from the productive and give to the unproductive. This is called ‘stealing’.

which will save or create millions of jobs which would otherwise have been destroyed, and that will, by the end of next year, amount to $5 trillion, raise output by 4 per cent, and accelerate the transition to a green economy. We are committed to deliver the scale of sustained fiscal effort necessary to restore growth.

This plan will not save or create real jobs. It will in fact, destroy real jobs and capital.

7. Our central banks have also taken exceptional action. Interest rates have been cut aggressively in most countries, and our central banks have pledged to maintain expansionary policies for as long as needed and to use the full range of monetary policy instruments, including unconventional instruments, consistent with price stability.

Central banks and fiat currency are the cause of this problem. They do not have perfect knowledge, and therefore are not able to set the interest rates correctly. Only the market can do that. It was the artificially low interest rates set by the Federal Reserve that started this crisis. The fact that you do not know this disqualifies you from being able to present a solution.

8. Our actions to restore growth cannot be effective until we restore domestic lending and international capital flows. We have provided significant and comprehensive support to our banking systems to provide liquidity, recapitalise financial institutions, and address decisively the problem of impaired assets. We are committed to take all necessary actions to restore the normal flow of credit through the financial system and ensure the soundness of systemically important institutions, implementing our policies in line with the agreed G20 framework for restoring lending and repairing the financial sector.

You cannot be for the market and also be for forcing people to lend money where they do not feel that it is prudent to do so. Trying to expand access to credit to people who had no business buying a house was one of the factors that caused this situation. When you get out of the way, money will begin to flow instantly. By standing together as you are, you are in fact acting like a dam, blocking the flow of capital. Money is like information; it wants to be free. When you finally give up your delusion that you understand economics and get out of the way, the dam will burst and money will flow and wash away this problem.

9. Taken together, these actions will constitute the largest fiscal and monetary stimulus and the most comprehensive support programme for the financial sector in modern times.

And it will fail spectacularly. Stimulus packages will not work, cannot work, and have never worked.

Acting together strengthens the impact and the exceptional policy actions announced so far must be implemented without delay.

Acting together intensifies the storm, increases its devastating power and will make everything 1000 times worse.

Today, we have further agreed over $1 trillion of additional resources for the world economy through our international financial institutions and trade finance.

What is the ultimate source of the money? It can only be tax or printing press or savings. Why is it that you cannot speak plainly? Say you are going to do one of the three!

10. Last month the IMF estimated that world growth in real terms would resume and rise to over 2 percent by the end of 2010.

They could not predict this crash, and yet, we are to believe that they can predict the future now?

We are confident that the actions we have agreed today, and our unshakeable commitment to work together to restore growth and jobs, while preserving long-term fiscal sustainability, will accelerate the return to trend growth.

And this is why you FAIL. Confidence is not enough; confidence does not get work done, it does not create value. What confidence DOES do, is deceive the confident into believing paper money is real, that it has value, and that by printing it, you create value out of thin air. Commitment to a false idea is suicide. In this case, that is a good thing. Long-term fiscal sustainability can only be had with gold coins as the money. The trend growth that you refer to was produced by the printing of fiat currency. Those graphs should be thrown out immediately, as they represent an unattainable goal.

We commit today to taking whatever action is necessary to secure that outcome, and we call on the IMF to assess regularly the actions taken and the global actions required.

If you want to fix this, you need to STOP TAKING ACTIONS. It is your taking of actions that has been and which is causing the problem!

11. We are resolved to ensure long-term fiscal sustainability and price stability and will put in place credible exit strategies from the measures that need to be taken now to support the financial sector and restore global demand.

Long term pice stability can only be had with a gold coin standard for money. Since gold cannot be printed, its value cannot be corrupted – the money cannot be debased. When denominated in gold, the price of almost everything has not changed in decades. Global demand is not your affair. You do not have the competence to engineer it, and everything you do to try and generate it causes more problems.

We are convinced that by implementing our agreed policies we will limit the longer-term costs to our economies, thereby reducing the scale of the fiscal consolidation necessary over the longer term.

People used to be convinced that the earth was flat. You are all in the same camp. You all believe that paper money has value, that you can control ‘the economy’, and that your insane spending measures will fix this, when every indicator says that it will make things worse. Insanity: doing the same thing over and over again and expecting different results. Albert Einstein.. What you are doing, is, by this definition, INSANE. It was debt that created this problem. You cannot borrow your way out of debt.

12. We will conduct all our economic policies cooperatively and responsibly with regard to the impact on other countries and will refrain from competitive devaluation of our currencies and promote a stable and well-functioning international monetary system.

The only way to create “a stable and well-functioning international monetary system” is to get out of the way and allow the market to determine what money should be and how it should work.

We will support, now and in the future, to candid, even-handed, and independent IMF surveillance of our economies and financial sectors, of the impact of our policies on others, and of risks facing the global economy.

The IMF did not see this crisis coming. They are not omniscient. They do not have the ability or the right to supervise the private affairs of nations.

Strengthening financial supervision and regulation

13. Major failures in the financial sector and in financial regulation and supervision were fundamental causes of the crisis.

This is a LIE.

Confidence will not be restored until we rebuild trust in our financial system.

This is FALSE.

We will take action to build a stronger, more globally consistent, supervisory and regulatory framework for the future financial sector, which will support sustainable global growth and serve the needs of business and citizens.

This is NONSENSE.

Global consistency means the absence of a free market, where the individual can choose the best jurisdiction to do business. A world run by incompetents at the IMF and the G20 is a world where innovation and business will be stifled. The needs of business and citizens are best served by each of the two groups acting without onerous regulation laid down by incompetent people.

14. We each agree to ensure our domestic regulatory systems are strong.

They already are strong. So strong in fact, that people spend all their time thinking up ways to get around the regulations so that they can make a profit. No one would put their money into risky derivatives if there was a less risky alternative that paid the same returns. The fact of the matter is that the already overburdened regulatory and taxation system makes it very hard to earn a profit; this is the true mother, the genesis of the exotic financial products.

But we also agree to establish the much greater consistency and systematic cooperation between countries, and the framework of internationally agreed high standards, that a global financial system requires.

The ‘global system’ does not require this. Greater consistency means a playing field where no one has the incentive to win, much less step out onto the field.

Strengthened regulation and supervision must promote propriety, integrity and transparency; guard against risk across the financial system; dampen rather than amplify the financial and economic cycle; reduce reliance on inappropriately risky sources of financing; and discourage excessive risk-taking.

Regulation cannot promote propriety or integrity. Regulation in fact, promotes and exacerbates the tactics of evasion. Transparency already exists in the place that it matters; between the client and the entity that offers a financial product. You cannot “risk across the financial system” AND be in favor of fiat currencies and fractional reserve banking, the latter being the most dangerous. The economic cycle (which is actually The Business Cycle) is the creature of governments with their bad money, regulations and interference in the market. The state cannot decide what is and is not inappropriate. Only individuals can make this determination. When the state involves itself in legislating risk-taking, moral hazard is the result.

Regulators and supervisors must protect consumers and investors, support market discipline, avoid adverse impacts on other countries, reduce the scope for regulatory arbitrage, support competition and dynamism, and keep pace with innovation in the marketplace.

Regulators failed to spot Madhof (the scapegoat). They are incapable of protecting consumers, even if it was appropriate for them to do so, which it is not. Markets are self disciplining, just like the weather. No doubt you at the G20 would like to control that also. Avoiding adverse impacts is also impossible. If it were possible to do it, the IMF would have stepped in to stop the current crisis from emerging.

You cannot,”support competition and dynamism” and also be FOR regulation and the sort of fine grained supervision you are advocating. We understand what you mean by ‘keep pace with innovation in the marketplace’; stop any and all new internet based payment systems from taking root and supplanting the ossified, corrupt, sclerotic financial system over which you preside, or pretend to preside.

15. To this end we are implementing the Action Plan agreed at our last meeting, as set out in the attached progress report. We have today also issued a Declaration, Strengthening the Financial System. In particular we agree:

to establish a new Financial Stability Board (FSB) with a strengthened mandate, as a successor to the Financial Stability Forum (FSF), including all G20 countries, FSF members, Spain, and the European Commission;

Pointless.

that the FSB should collaborate with the IMF to provide early warning of macroeconomic and financial risks and the actions needed to address them;

This will never work. The IMF did not see this crisis coming, the biggest ever in world history, and they will not see the next one, if there is going to be a next one.

to reshape our regulatory systems so that our authorities are able to identify and take account of macro-prudential risks;

This will be used to blackmail institutions that are the personal enemies of the insiders.

to extend regulation and oversight to all systemically important financial institutions, instruments and markets. This will include, for the first time, systemically important hedge funds;

Total control by incompetent unproductive over the productive.

to endorse and implement the FSF’s tough new principles on pay and compensation and to support sustainable compensation schemes and the corporate social responsibility of all firms;

This is UTTER NONSENSE. There is no such thing as a ‘sustainable compensation scheme’, and executive remuneration has nothing to do with this problem. The fact that this childish, sour grapes scapegoating language is in this document demonstrates your complete lack of understanding of the problem, its root cause and the steps that need to be taken. It proves that you are incompetent, dull witted and doomed to failure.

to take action, once recovery is assured, to improve the quality, quantity, and international consistency of capital in the banking system.

recovery will not be assured by this plan, and even if it were possible, by what metric are you going to declare that it has happened? Improving the international consistency of capital in the banking system means a global currency. We are not stupid!

In future, regulation must prevent excessive leverage and require buffers of resources to be built up in good times;

It is not the place of the state to say what is or is not excessive leverage. Banking is a private business. So is risk. Neither is the business of government.

to take action against non-cooperative jurisdictions, including tax havens.

Tax ‘havens’ have nothing to do with this crisis. You would do better to ask why it is that money is fleeing your jurisdictions; once you address that problem, no one will have the incentive to remove their money from your shores. As for non co-operative jurisdictions, this means that the G20 is now going to act as if it is the de-fact world government, and there will be no more national soverignty. People will not be able to choose places to invest based on thier own requirements, and nations will not be able to organize their affairs as they see fit. All laws will now pass through the filter of G20, and if you do not agree, you will be listed as an ‘outlaw nation’. This will be the case even if the country, through the democratic process, decides that it wants nothing to do with the G20 and its absurd and destructive policies.

We stand ready to deploy sanctions to protect our public finances and financial systems.

This is a non sequitur. You do not use sanctions to protect YOUR public finances, you use YOUR LAWS to do that. Sanctions are used to disrupt OTHER PEOPLE’S finances and financial systems. The money in sovereign nations is not YOURS it is the property of the OWNERS of that money, and the responsibility of the sovereign nation where the funds are stored.

The era of banking secrecy is over. We note that the OECD has today published a list of countries assessed by the Global Forum against the international standard for exchange of tax information;

None of this has anything to do with the financial crisis. Banking secrecy has no effect on anything, other than the ability of the venal government’s ability to steal the wealth from its beleaguered citizenry. You are using this crisis to extend your reach into places where you have no business being.

to call on the accounting standard setters to work urgently with supervisors and regulators to improve standards on valuation and provisioning and achieve a single set of high-quality global accounting standards; and

None of this will work. You will not have enough time to roll it out; the collapse will see to that. Barring the collapse, there will be a ground-swell of rage that will permanently scupper your plans.

to extend regulatory oversight and registration to Credit Rating Agencies to ensure they meet the international code of good practice, particularly to prevent unacceptable conflicts of interest.

16. We instruct our Finance Ministers to complete the implementation of these decisions in line with the timetable set out in the Action Plan. We have asked the FSB and the IMF to monitor progress, working with the Financial Action Taskforce and other relevant bodies, and to provide a report to the next meeting of our Finance Ministers in Scotland in November.

The only confilct of interest that matters here is the prevalence of financial insiders in the corrupt governments.

17 to 24, snipped, as it is repetitive and refuted.

Ensuring a fair and sustainable recovery for all

25. We are determined not only to restore growth but to lay the foundation for a fair and sustainable world economy. We recognise that the current crisis has a disproportionate impact on the vulnerable in the poorest countries and recognise our collective responsibility to mitigate the social impact of the crisis to minimise long-lasting damage to global potential. To this end:

The state cannot determine what is ‘fair’ and what is not ‘un-fair’. Global potential, like gravitational potential energy, is storable. Sound money stores value; it is called capital (potential to invest). If you want to minimise long terme damage to global potential, sound money must replace fiat currencies that can be printed and debased at the will of incompetents.

we reaffirm our historic commitment to meeting the Millennium Development Goals and to achieving our respective ODA pledges, including commitments on Aid for Trade, debt relief, and the Gleneagles commitments, especially to sub-Saharan Africa;

Others haver written about this, Google them.

the actions and decisions we have taken today will provide $50 billion to support social protection, boost trade and safeguard development in low income countries, as part of the significant increase in crisis support for these and other developing countries and emerging markets;

Where is this money coming from, for the thousandth time, and is this not giving fish to people instead of teaching them how to fish?

we are making available resources for social protection for the poorest countries, including through investing in long-term food security and through voluntary bilateral contributions to the World Bank’s Vulnerability Framework, including the Infrastructure Crisis Facility, and the Rapid Social Response Fund;

More failure on the cards.

we have committed, consistent with the new income model, that additional resources from agreed sales of IMF gold will be used, together with surplus income, to provide $6 billion additional concessional and flexible finance for the poorest countries over the next 2 to 3 years. We call on the IMF to come forward with concrete proposals at the Spring Meetings;

Who is going to buy this gold, and what will they give in exchange for it? Gold is money. The people who want to buy it have fiat currency. People who want to protect the value of their money will line up for this bargain price gold, hand over their worthless dollars and euros and then sit back and watch the spectacle unfold.

we have agreed to review the flexibility of the Debt Sustainability Framework and call on the IMF and World Bank to report to the IMFC and Development Committee at the Annual Meetings; and

we call on the UN, working with other global institutions, to establish an effective mechanism to monitor the impact of the crisis on the poorest and most vulnerable.

A waste of money.

26. We recognise the human dimension to the crisis. We commit to support those affected by the crisis by creating employment opportunities and through income support measures.

How is this going to be paid for?

We will build a fair and family-friendly labour market for both women and men.

It is not the place of the state to build labour markets. While we are at it, a ‘family-friendly’ labour market would be one where the mother gets to raise her children full time, instead of being forced to earn money because the prices of houses is so great (which is a direct result of interference in the market by the state).

We therefore welcome the reports of the London Jobs Conference and the Rome Social Summit and the key principles they proposed. We will support employment by stimulating growth,

Growth cannot be stimulated.

investing in education and training, and through active labour market policies, focusing on the most vulnerable. We call upon the ILO, working with other relevant organisations, to assess the actions taken and those required for the future.

More nonsense.

27. We agreed to make the best possible use of investment funded by fiscal stimulus programmes towards the goal of building a resilient, sustainable, and green recovery. We will make the transition towards clean, innovative, resource efficient, low carbon technologies and infrastructure. We encourage the MDBs to contribute fully to the achievement of this objective. We will identify and work together on further measures to build sustainable economies.

28. We reaffirm our commitment to address the threat of irreversible climate change, based on the principle of common but differentiated responsibilities, and to reach agreement at the UN Climate Change conference in Copenhagen in December 2009.

Utter, unscientific garbage.

Delivering our commitments

29. We have committed ourselves to work together with urgency and determination to translate these words into action. We agreed to meet again before the end of this year to review progress on our commitments.

It is the prayer of every free man on this planet that you meet with TOTAL FAILURE.

Michelle Bachmann misunderstands the Dollar

Saturday, March 28th, 2009

A member of Congress is warning the Obama administration to keep its hands off the U.S. dollar’s status as the world’s international currency.

U.S. Rep. Michelle Bachmann, R-Minn., has introduced a resolution that would bar the U.S. from recognizing any other currency than the dollar as its reserve currency.

Her action comes in response to suggestions from China, Russia and the United Nations that another currency be explored. Even U.S. Treasury Secretary Tim Geithner has admitted he would be open to the idea, although he quickly backtracked when the stock market plunged on his announcement.

“During a Financial Services Committee hearing, I asked Secretary Geithner if he would denounce efforts to move towards a global currency and he answered unequivocally that he would,” Bachmann said. “And President Obama gave the nation the same assurances. But just a day later, Secretary Geithner has left the option on the table. I want to know which it is. The American people deserve to know.”

Although Title 31, Sec. 5103 USC prohibits foreign currency from being recognized in the U.S., the president has the power to engage foreign governments in treaties, and the president is principally responsible for the interpretations and implementation of those treaties according to the Constitution, according to the congresswoman.

As a result, legislation prohibiting the president and Treasury Department from issuing or agreeing that the U.S. will adopt an international currency would need to come in the form of a Constitutional Amendment differentiating a treaty used to implement an international currency in the U.S. from other types of treaty agreements, she said.

“If we give up the dollar as our standard, and co-mingle the value of the dollar with the value of coinage in Zimbabwe, that dilutes our money supply. We lose control over our economy. And economic liberty is inextricably entwined with political liberty. Once you lose your economic freedom, you lose your political freedom,” Bachmann told the Glenn Beck program on the Fox News Channel today.

Her proposal, H.J.R. 41, isn’t complicated:

It is titled: “Proposing an amendment to the Constitution of the United States to prohibit the president from entering into a treaty or other international agreement that would provide for the United States to adopt as legal tender in the United States a currency issued by an entity other than the United States ”

Already with several dozen sponsors, it states:

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled (two-thirds of each House concurring therein), That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States within seven years after the date of its submission for ratification:”

It would add to the Constitution:

The president may not enter into a treaty or other international agreement that would provide for the United States to adopt as legal tender in the United States a currency issued by an entity other than the United States.

According to the Wall Street Journal, the latest voice to endorse an “alternative” to the dollar was the head of a U.N. expert panel discussing solutions to the financial crisis.

“The president may not enter into a treaty or other international agreement that would provide for the United States to adopt as legal tender in the United States a currency issued by an entity other than the United States.”

[…]

http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=93086

Incredible.

These people can smell that something is wrong, but are not sure what it is. They feel that they have to protect ‘their currency’, but they are not sure what it is that they need to do.

This amendment, as tabled, would actually outlaw the Dollar as it exists today.

The Federal Reserve is not ‘the United States’; it is a private bank. That means that ‘US Dollars’ are not issued by the United States, but by an entity other than the United States.

If this amendment is added to the Constitution, the US Dollar, AKA Federal Reserve Notes, will instantly cease being legal tender.

Interesting.

Are these people smarter than they appear to be, and are they trying to kill the Federal Reserve and its worthless fiat currency by a checkmate maneuver?

I doubt it.

It is more likely that they do not understand the nature of the money in their pockets; I would bet that Michelle Bachmann doesn’t know anything about the dollar, the Federal Reserve, fiat currency, commodity money, or anything about any of the real issues behind the problem at the center of what she is clumsily trying to address.

Until you understand the nature of money and currencies, it is impossible to draft legislation (or in this case, REMOVE LEGISLATION) that will permanently fix the problem.

FAIL.

Daniel Hannan: Your New Hero

Thursday, March 26th, 2009

The Last Poets: Austrian Economists?!

Sunday, March 1st, 2009

I first heard these words on an Album by ‘The Pop Group’, called For How Much Longer Do We Tolerate Mass Murder …. It is by The Last Poets, and it is called ‘E Pluribus Unum’.

Reading it again today, you could mistake the writers of these inspiring, insightful and brilliant words for a group of Austrian Economists:

Selfish desires are burning like fires
among those who hoard the gold
As they continue to keep the people asleep
and the truth from being told
Racism and greed keep the people in need
from getting what’s rightfully theirs
Cheating, stealing and double dealing
as they exploit the peoples fears

Now, Dow Jones owns the people’s homes
and all the surrounding land
Buying and selling their humble dwelling
in the name of the Master Plan

Cos paper money is like a bee without honey
with no stinger to back him up
and those who stole the people’s gold
are definitely corrupt

Credit cards, master charge, legacies of wills
real-estate, stocks and bonds on coupon paper bills

Now the US mints on paper prints, millions every day
and use the eagle as their symbol cos it’s a bird of prey

The laurels of peace and the arrows of wars
are clutched very tightly in the eagles claws
filled with greed and lust,
and on the back of the dollar bill,
is the words IN GOD WE TRUST

But the dollar bill is their only God
and they don’t even trust each other
for a few dollars more they’d start a war
to exploit some brother’s mother

Now ANNUIT means and endless amount stolen over the years
and COEPTIS means a new empire of vampire millionaires
And NOVUS is a Latin word meaning something new
an ORDO means a way of life chosen by a few
SECLORUM is a word that means to take from another
knowledge, wisdom and understanding stolen from the brother

Now there are thirteen layers of stone of the pyramid alone
an unfinished work of art
for thirty-three and a third is as high as a mason can go
without falling apart

Thirteen stars in the original flag!
Thirteen demons from the Devil’s bag!
Thirteen berries and thirteen leaves!
Thirteen colonies of land-grabbing thieves!
Thirteen arrows in the eagle’s claws!
Sixty-seven corporations wage the Devil’s wars!
Thirteen stripes on the eagle’s shield!
And these are the symbols on the US seal!

Now on the front of the dollar bill
to the right of Washington’s head
is a small seal in the shape of a wheel
with the secret that’s been left unsaid
The symbols in the middle represent the riddle
of the scales, the ruler and the key;
the square rule is a symbol
from the craft of masonry
The scales represent Libra
the balance of the seventh sign
They also represent the Just-Us
which you and I know is blind
The key unlocks the mysteries
of the secrets of the seal
So that only the Govern-u-men
would know what they reveal

The four words apart form the last parts of
the secrets of the seal
and tells how they fooled the people
into thinking paper money was real!

Now, THESAUR means the treasury
where they store the gold they stole
and AMER means to punish
like the slaves they bought and sold
Then SEPTENT means seven
like seventeen-seventy-six
when the thirteen devils gathered
to unleash their bag of tricks
The SIGEL means the images
they’ve created to fool the world
like the colors on Old Glory
the flag that they unfurled

Now the red was the color of the Indian man
White was the devil’s who stole the land
Blue was the eyes that hypnotized
with the tricks and traps they sprung
and even to this very same day
they all speak with forked tongue!

And so the power is in the hand of the ruling classes
playing god with the fate of all the masses
so the people don’t get any in the land of the plenty
'cause E PLURIBUS UNUM means 'One Out Of Many'

Gold bug bears and BLOGDIAL for Bluffers

Tuesday, February 17th, 2009

md wrote:
nagapie wrote:
Brixton’s getting it’s own currency.

Is it going to be made out of a precious metal (i.e. either gold or silver)?

I can’t pretend to even understand, let alone agree with, the various long term bug bears of the small Irdial group of bloggers, but fiat currency is an issue they post about frequently, and they vehemently support the set up of independent currencies based on precious metals.

http://irdial.com/blogdial/index.php?s=fiat

They keep contradicting themselves though. First they bang on about the reintroduction of the gold standard and then they say this:

We then went on to discuss why trans-national currencies ‘Currency Monocultures’ like the Euro are a bad thing.

Imagine that the Euro never happened, and each European country had kept its own currency. Each country would be able to formulate its own response to bank failures, and their currency would suffer or gain depending on their response. Each person with savings could hold a basket of currencies to protect themselves from being wiped out by inflation.

But if you have a gold standard then the value of your currency is pegged to the value of gold, so you CANNOT formulate a response to bank failures! Your money supply is constant (or rather, tied to current world reserves of gold) which robs you of your main tool for controlling inflation and unemployment. Moreover, if everyone adopts the gold standard then exchange rates are effectively fixed (because if any country’s currency began to depreciate, everyone else would buy it, convert it into gold and then convert the gold back into their own currency). And that’s the biggest `currency monoculture’ imaginable. Tin hat vibes.

Now, lets go through this slowly:

But if you have a gold standard then the value of your currency is pegged to the value of gold, so you CANNOT formulate a response to bank failures!

[…]

http://disception.net/lk/viewtopic.php?t=8117&start=25

No, this is incorrect.

First of all, Gold IS money. Sound economies are based on gold as the means of exchange. Government cannot create the money out of thin air when it is made of gold, they cannot print it. Gold is scarce and the amount of it in circulation cannot be arbitrarily increased.

Bank failures (bank runs) happen because of fractional reserve banking. Banks, when they are given a license to do business, are allowed to ‘print money’. When you deposit £10,000 in your account, the government allows your bank to loan out say, 40 times that amount to other people. Those people then pay interest on the money that is loaned to them. If you or I were to do this, it would be called ‘counterfeiting’ but because its a licensed bank, its called ‘banking.

The system ‘works’ as long as everyone who holds an account at the bank does not ask for their deposits back at the same time (a bank run). Since the banks run fractional reserves, they literally do not have the money to pay back their depositors.

Centuries ago, when people used gold for money in every day transactions, the danger of theft was ever present. Banks used to hold deposits, and since they were trustworthy, would issue I.O.U.s to their depositors. People began to trade these I.O.U.s because they knew that the money was in the bank and redeemable at any time. This is the origin of gold backed paper money.

The bankers realized that they could print I.O.U.s for gold that they did not have on deposit. As long as the I.O.U.s did not all come back at once, they could gain interest on gold they did not have in their vaults.

Pure Genius!

Modern banking runs exactly the same way, only the ‘money’ is Fiat Currency; money that is given value by order of the government by legal tender laws. It is paper, a fiction, worthless. And of course, the government has the printing press that can create ‘value’ out of nothing.

Lets say you earn £500 pounds a week. If there are only £2,000,000 paper pounds in the whole world, then the amount that you can buy with your £500 remains the same, week on week, year on year. But, lets now imagine that the government has doubled the money supply. There are now £4,000,000 paper pounds in existence. That means that the scarcity of paper pounds has been reduced by half. There is twice as much money in circulation. This means that your £500 is now worth half as much as it was when there were only £2,000,000 paper pounds in circulation.

You have just been cheated out of half of the value of your money.

Now, if there is one currency, and you cannot vote for the government who controls it, and it is a fiat currency, you are essentially giving the printing press for that money to someone who you cannot elect. They can destroy the value of your savings. If however, you have a paper currency and it is under the control of your own elected officials, if they debase the money, you can vote them out and the next government can destroy some of the money supply and restore the value of your savings.

If the money you use is gold, then no government, no matter who runs it, can print your money. It actually is your money, literally. The pound is not ‘your money’; it belongs to the government. They control its supply, they control its value.

Inflation is just what I described; the money supply increasing because of the printing press. If we had a gold standard, we would have no inflation by definition. Take a look at this YouTube video which demonstrates how the value of gold has not changed over time.

Your money supply is constant (or rather, tied to current world reserves of gold) which robs you of your main tool for controlling inflation and unemployment.

Like I say above, gold IS money. In a gold standard currency system you use gold as money, not paper that is linked or tied to anything.

There is no ‘world reserve of gold’ central banks of separate sovereign nations have their own reserves of gold, like the gold at Fort Knox. When the dollar (for example) was backed by gold before the Bretton Woods agreement, you used to be able to go to the bank and redeem gold (and silver) for paper dollars which were certificates that represented actual physical gold and silver. When you say ‘your’ main tool, who exactly are you talking about? That ‘your’ is the same ‘you’ that destroys the value of ‘your’ savings by printing money. The people who run central banks are not able to set interest rates correctly or control unemployment, for the record. Only the market can do this. But that’s more typing.

if everyone adopts the gold standard then exchange rates are effectively fixed

There are no exchange rates, because everyone would be using real money (gold coins) to do their business with. Did you know that in Viet Nam, people buy and sell land in gold? There is nothing strange about it at all; what is strange is that people think its acceptable that government can steal your savings from you without even going into your bank!

(because if any country’s currency began to depreciate, everyone else would buy it, convert it into gold and then convert the gold back into their own currency)

This line demonstrates a profound misunderstanding of what money is. When you say that a county’s currency starts to depreciate, what EXACTLY do you mean? If you mean that it loses its value, this can only happen if someone has access to the printing press that allows people to create money out of thin air. A gold currency cannot be printed, so any country using it would not suffer from inflation (which is actually what you are describing, NOT depreciation which is what your car does ten minutes after you have bought it). Take a look at this to understand what the word inflation really means in this context.

And that’s the biggest `currency monoculture’ imaginable. Tin hat vibes.

Try gold hat :)

Apart from having a gold standard, fractional reserve banking needs to be understood (note how I do not say ‘banned’) by depositors. If you are crazy enough to deposit your gold money in a bank that lends out many multiples of the amount of deposits, you are taking a big risk; they had better be paying you big interest rates. You and the bank had better be insured against bank runs. As we have seen there are moves afoot to run clean banks.

I assume that you are not in favor of war and the recent mass murdering. The war machine is financed by fiat currency running off of government printing presses. Gold currency forces discipline on governments. This alone is a reason why it should be adopted; everything else would be a great bonus.

You should also look up the Totnes Pound, which is an interesting development. Also, California is issuing its own Currency in the form of I.O.Us. They are not saying its a currency but of course, if they start exchanging them around LA, it will be a currency by definition.

Finally, if you want to watch a really fascinating documentary about this subject and educate yourself so that you can understand a little of what BLOGDIAL publishes on this subject, you could do worse than The Money Masters. When you can understand why a stick of wood with grooves in it was one of the longest running currencies ever, then you will have arrived!

UPDATE!

Added reciprocal facepalm.

Stiff upper lips missing

Monday, February 2nd, 2009

The true character of a man is revealed when he is under pressure…so they say.

The riots in Paris and the demonstrations against foreign work forces being used at British oil refineries and a power station seemed to be a presentiment of widespread civil disturbance, especially in this country. We are, after all, only at the beginning of a slump which is predicted by the IMF to hit Britain more seriously than any other developed nation. It will be longer and deeper and we can already see the hardship, the bills accumulating.

We need this civil disobedience. I hope that some of the people who plan destruction have the sense to trash only the systems and places that they use to ruin everyone’s lives. Smashing McDonalds and Starbucks is just STUPID.

In the last week, it seems that I have hardly had a conversation that has not dwelled on the economic crisis and how we arrived at a position where we are paying to bail out the bankers, who are still claiming vast bonuses, and face finding another £20bn each year in taxes or losing that amount in services.

And it is a safe bet that in none of these conversations did the phrase ‘fiat currency’ ever pass anyone’s lips. Another safe bet would be that ‘fractional reserve banking’ was never uttered. The fact is that no one who writes for the Guardian knows why this ‘crisis’ happened. None of them understand what money is. All of them are whining about banker bonuses as if that had anything at all to do with this problem. Jealousy politics is alive and well and serving its purpose to divert thinking people away from the true causes of their misery. The fact of the matter is that government is STEALING from the public to disburse money inefficiently, if not fraudulently. In any case, it is certainly immoral. These banks should not be bailed out by any government. Period.

If it had been a matter of straight theft

It IS straight theft; from YOU to the STATE to the BANKERS.

– ie the damage done was equal to every bonus –

this is nonsense maths. The bonuses are IRRELEVANT.

the world economy could easily absorb the hit,

There is no ‘world economy’. This is a matter of YOUR money being stolen and redistributed to bankers. There is no collective entity that you can call a ‘world economy’. This is loose english at its best.

but there is a vast multiple involved between the amount taken in bonuses and the bail-out received from governments. Figures to be published in Vanity Fair next week show that the bail-out in the US is anything up to 900 times the bonuses paid to the top five executives of leading American banks. At Citicorp, bonuses equalled $54m in 2007 while the bail-out was $45bn. This ratio doesn’t capture anything like the economic consequences of greed on both sides of the Atlantic. They are incalculable. The crime is nearly the equivalent to poisoning of the world’s water supply. If the banking industry and advocates of unregulated market capitalism expect a return to normal service after the slump they are gravely mistaken.

The only people who are ‘gravely mistaken’ are those who think that bonuses have any meaning, and that there ever has been a place where unregulated market capitalism has been running. Once again, there is no such thing as ‘the world’s water supply’ there is no one world anything. Constantly referring to things in these terms is simply absurd, and it is part of the problem.

It is fortunate for the hedge fund managers and derivative traders in Britain that the London mob does not materialise at moments like this to drag them from their spruced-up homes and limousines as regularly happened in the 18th century.

Yes indeed, that would help! If hedge fund managers and derivative traders lose their money, what do you care if your money is sound and in a bank that is not exposed? If you owned your own money and kept it safely, you would not have a problem at all.

In one way, it is also regrettable, because then the mob, which, incidentally, is a shortening of mobile vulgus, affected the conduct of politics and on several occasions changed things for the better.

That may be so, but until people understand what money is, all the mobs and rioting in the world will never solve this problem. You need to watch (as a beginning) The Money Masters to understand what is really happening, and how value is being stolen from you. Unless you are willing to do the small amount of work it takes to understand economics and money, you will NEVER be able to understand what is going on.

It was not made up of the depraved and violent underclass found in most historical accounts, but of groups of young working men and apprentices who, while demonstrating for Protestantism and against foreign workers, also played their part in supporting liberty.

You cannot have liberty without money that actually belongs to you. Misunderstanding this is why you FAIL.

Something of their voice was heard last week outside the refineries where foreign workers have been employed en masse instead of British workers, but in London, everything is – for the moment – quiet.

Those people are not ‘foreign’ they are from the EU, which Guardian types are all for. You cannot open up to the EU and then expect them NOT to come here and work when they have the RIGHT to do so. If you did not want Italians working here, you should never have joined the EU o Great Britain. Once again, the brainless demonstrators show just how STUPID they are; they should be protesting British membership of the EU (the cause of those workers coming here) and not the workers…its like treating acne by putting on a topical cream instead of weaning the teenager off of his diet of Tizer and crisps. Not very smart!

We are slower to anger than the French, although I must say that if I were a member of my children’s generation I would very much feel like hurling the odd carton of milk at politicians and bankers of the older generation.

Once again, this is why you FAIL. Your position as a writer could be used, right now, to direct people to the correct information about this problem; unsound money, fractional reserve banking, and regulation. Sadly this will not happen. Or will it? Who knows?

For the people who are going to pay for the lunatic exuberance of the last decade are not its perpetrators – largely the baby boomers born between 1945 and 1965 – but those born after 1985 and, by the way, several succeeding generations.

The people who are going to pay for the bailouts are the suckers. Everyone who knows what is really happening will not pay a penny. The people who are not helping are the ones who are steadfastly persisting in bad thinking and willful ignorance.

To put it crudely, my generation has stolen from its children and grandchildren.

That is a lie. It is ASTONISHING how the pundits and spin masters have turned this crisis around so that the INNOCENT now believe that they are THE GUILTY PARTY in this. How they did it should be studied by everyone everywhere.

It is they who will be affected by £20bn per annum shaved off services and for as long as anyone can predict.

Once again, only the suckers will be paying for this nonsense. As for services, their degradation was always inevitable. To understand why, you have to understand money (what money really is) and economics. You could try Googling ‘Social security Ponzi Scheme’ to find out why degradation was always going to happen.

And this crisis means that we are about to fail in that other important obligation of providing jobs for people coming out of university and school.

Once again, total and complete FAIL.

There is no collective obligation to provide jobs for anyone, so to say ‘we’ are about to fail is nonsense. You cannot be FOR liberty on the one hand and ALSO FOR collective responsibility and accountability of the type that is the driving philosophy behind bailing out banks. Then again, being able to hold two contradictory thoughts in the mind simultaneously is a required skill these days is it not?!

Last Friday, it was reported that unemployment among 16- to 24-year-olds has risen to 16.1%, which is above the European average of 15.9%. That figure is bound to grow over the next two years.

Water always finds it’s own level.

Look coldly at my generation, the one that’s has been claiming every sort of entitlement since the Who sang about it, and you realise that we have been criminally irresponsible.

It is criminally irresponsible to not try and understand what is really happening, and then to perpetuate it by claiming that there are collective responsibilities to provide jobs and every other sort of nonsense. It is criminally irresponsible to prop up that system, and to not try and inform people of its true nature. At the very least, since you cannot throw stones, you would be able to say, “I tried to warn everyone. I did what I could do”.

We are leaving the people born after 1985 not just with the bills for this economic mess, but we also expect them to pay for an increase in the cost of state pensions for us, a rise of benefits and soaring pensioner health costs, which has been clear in demographic studies for some time.

You can expect anything you like. Your pension is TOAST. No one is going to foot the bill for it, there will be no money for it. You were robbed. Deal with it. Start saving NOW…saving REAL MONEY.

How young people are going to get started in paying for our old age without jobs and with a credit crunch and a frozen property market is anyone’s guess.

That is an astonishing statement. The concern is not how young people are going to get started paying for YOU, the concern is how are they going to LOOK AFTER THEMSELVES and THEIR children! The selfishness, corruption, immorality and thievery never ends!

Consider the political classes of today, the people who clustered round Tony Blair – born a month after me in 1953 – and who have been in charge for more than a decade. What have they done to make politics and the business of Parliament responsive to the widely appreciated needs of this century?

That is irrelevant. The only thing that matters is who destroyed the money, who stole it, and what are you going to do about it. Note how I do not say, “who destroyed our money”. I am not under the delusion that the pounds in your pocket belong to you. They do not.

Though there are many well-intentioned politicians, politics probably hasn’t been held in such low esteem since the time of the London mob. It simply fails to deliver. Even in the good years, the government spent vast amounts on education and health, but failed to secure a proportionate rise in standards and productivity.

People who are for liberty hold politicians in low esteem by default, reflexively. They also do not expect government to deliver. They do not expect government to secure standards and productivity. People who are for liberty understand that not only is that not the proper role of government, but they also understand that government is incapable of doing these things, and if they do try, they do it inefficiently and immorally.

I won’t try your patience with my generation’s failure on rights and liberty,

We already gave up on you years ago…where have you been?! Not on the internets clearly.

its casual erosion of the privileges that were passed to us by our parents,

THIS IS WHY YOU FAIL. Rights are not a PRIVILEGE that is handed to you; you are BORN WITH THEM.

or its bewildering ignorance of history,

I am no historian, but honestly, when it comes to the history of money ignorance is absolutely EVERYWHERE. Even when there is a crisis people are too thick to try and find out what is really happening. That is the unforgivable sin. Even when people know some history, they sit there and stupidly repeat the mistakes of the past over and over, and then whine when things are getting worse. Knowing history is not enough. You need to know what your place is, what your rights are, what rights are and how to solve problems.

but it is important to understand that at the heart of the deterioration is Parliament and in this sense politics, rather than society, is broken.

This is completely wrong. Parliament is not at the heart of the problem. The heart of the problem is in a generation of people who do not understand their place in the world, who do not understand what Liberty is, what Rights are, the very nature of man and why it is he owns things. Parliament is the pimple, its corruption and arrogance a symptom of a disease. The people are sick and stupid and brainwashed. They are not even able to frame their thoughts properly so that they can address these problems. That is why they talk about ‘our’ money, and ‘our’ democracy and all the other backwards, wrong headed nonsense that we read over and over again.

Last week, a friend said that what he found so frustrating in the scandal involving peers allegedly offering to influence laws for cash, as well as the apparent immunity of bankers, was the absence of justice.

You tolerate Parliament, put them at the centre of your life and philosophy and so therefore, the problem is YOU and you perception of your place in the world. There will always be corrupt people, and politics normally attracts the corrupt…morally corrupt that is…the bankers, once again, are not the problem, and focusing on them is very stupid, pointless and childish.

None of the 3,000 offences introduced by Labour apparently caters for lords and multi-millionaires.

And yet, you have, “always believed that the democratic state must be given power to act on behalf of us all”. That is the result of your belief. Total enslavement and impoverishnemt. The problem is YOU.

But this is minor compared with the crisis in the way laws – often designed to serve the political classes of my generation – are drafted and passed without proper scrutiny.

The problem is that they are passing them at all. They need to be REMOVING legislation, not adding it. And you need to stop looking to them like a sheep and to start disobeying.

My generation wanted everything – good food, cheap travel, large disposable incomes, luxury and security – and we have had them all, but at a great cost.

Bollocks. All of those things come at a price. If the next generation wants those things, then they can have them. All they have to do is pay the price and TAKE them. Your generation needs to be cut loose, your pensions cancelled and the debt defaulted on. Then we can start from a clean slate with sound commodity money and none of the collectivist illusions that have so befuddled and corrupted the men of this land.

We knew about climate change a long time ago, yet our government all but ignored it until the Tories made the running

There you go again. Global Warming Kool Aid nonsense AND saying ‘our government’ in a SINGLE SENTENCE!

We knew that bankers had not discovered the secret of limitless wealth creation, but we failed to regulate.

Bankers do not create wealth. Regulation destroys peoples ability to do it. You people will NEVER learn. And ‘we’ do not regulate. There is no ‘we’ in this debacle. THEY your ENEMY regulates and destroys and murders, and no, it is not on ‘our behalf’ either.

He let it slip, “It’s not your money!”.

And now if my children’s generation demonstrates, we will deploy a newly equipped and trained riot police to protect us. You see we have been expecting trouble.

[…]

http://www.guardian.co.uk/commentisfree/2009/feb/01/henry-porter-recession

The trouble will be far deeper and more widespread than you can possibly imagine. No riot squad will be able to contain it. At the end of this process, you and the government you cherish so deeply, even as it flays the flesh from your back with a cat o nine tails, will be utterly defeated. The people who truly understand freedom, liberty and rights will ensure that your world and its vile illusions never returns.

Some of the commenters on this article are beginning to see the light:

Sure Henry – and if you were twenty years older you’d be dead. Our confrontation with the political and business classes does not require youth, we are not throwing rocks and burning tyres – we have a series of modifications that we require of the commercial system to ensure it operates fairly in future. These are not for debate or modification – they are our requirements.

1/ We will restore some measure of value to our currency so that it will be known to us in the same way the length of a metre and the weight of a kilogram are known to us.

You see? The penny has dropped.

Sound money is the NUMBER ONE priority of everyone who understands this problem. Everything flows from it, all conditions are influenced by it.

A lurker who saw this same article says:

I don’t think the UK has the right culture for properly directed riots, a la Belle France for example. There is a small hardcore of politicised activists, such as seen in the poll tax riots, anti-fox-hunting and so on… but no mass body of free-thinking students (for example) with the will to put their high brows in the line of fire. Most other people have kids and would place family safety first. I just don’t see a proper riot as getting anywhere. Not reflective of the will of the general populace, too abstract in a way, and just a fight against police when what we need is a fight against HMG et al. The Iraq demo, and possibly BBC license fee avoidence – that’s what appeals to the middle-england masses. Other people (Sun/Mirror readership?) with job losses and SkyOne to pay for… will they act, and how? Will the miners strikes return in another guise? There is the real power in numbers. Get the two halves together and it could be special…

I just went off in a daydream where a crowd the size of the Iraq demonstration massed on parliament and took it over by mass of numbers, no violence required. Sky news offices next, and Buck House, followed by all the financial institutions of which the public own a slice. Gordon Brown makes one last public address, apologising for his sins and commits seppuku on live TV. The entire Labour front bench follow suit. A nation rejoices, shame is banished and national pride restored. The Tories are too yellow to take power following this and a new system of decentralised government is brought in…

10cm snow here, and more coming. Its gorgeous!

A little snow, and Britain is shut down.

When the people of Britain are ready, they will whip up a blizzard that will erase the evil once and for all. Like the Soviet Union, the Britain of the past will be a memory, and in its place will rise the sort of country that we used to love.

Only TEN THOUSAND TIMES BETTER!

Obamanomics: Cargo Cult Economics

Thursday, December 11th, 2008

Thanks to Travis at Ron Paul News for this, who wrote, “This should make you smile…” He knows that we have written before about Cargo Cult effects in relation to that other subject that we all know and love so well.

Cargo Cult Economics
In a recent email exchange about our larger social situation Robert Klassen used a term that simply jumped off the computer screen at me.

Cargo Cult.

It may not hit you the same way, but it sure raised the wattage of the lights in my world. I turned to Wikipedia for a few details and didn’t need to even page down to see all that I needed.

Members, leaders, and prophets of cargo cults maintain that the manufactured goods (“cargo”) of the non-native culture have been created by spiritual means, such as through their deities and ancestors, and are intended for the local indigenous people, but that, unfairly, the foreigners have gained control of these objects through attraction of these material goods to themselves by malice or mistake.

Now let me rewrite that passage from the standpoint of politicians, reporters, most academic economists, executive branch administrators, and quite a few heads of corporations:

Members, leaders, and prophets of the government-regulated economy cults maintain that the manufactured goods (productive economy) of the Free Market have been created by spiritual or ideological means (Gaia or egalitarian socialism/Keynesian-monetarist policy, respectively), and are intended for the cult’s members, but that, unfairly, the Free-Market capitalists have gained control of these objects through attraction of this wealth to themselves by malice and greed.

Like Cargo Cultists in New Guinea, truly these people don’t know any better. Even highly placed and widely quoted professional economists are as ignorant of the source of economic wealth as were stone age tribesmen whose first contact with technology was with people landing airplanes in the jungle.

The cultists’ spending on (or cheering for) the bailouts, stimulus payments, and infrastructure “investments” is based on the belief that it is money that causes economic prosperity, just like cargo cultists thought that if they built straw models of airplanes and recreated airstrips the “cargo” would return.

When I go to the store to buy something with money, the only reason I have money to spend is because someone paid me to produce what it is I do at work. My job lasts only so long as I produce in value for my employer more than I cost to employ, and my job’s security exists only so long as my employer’s production is profitable.

As I see it, it is production that makes the human world go around and supports our wonderful standard of living. Money is a useful accounting of that production, unless fraud is involved (e.g. fractional reserve banking and central bank operations as a whole).

Why do Cargo Cult Economists cling so tightly to the notion that spending alone can solve the problems of the day?

I think part of the answer is that they have no way to define productivity. Instead of seeing productivity as action that yields something that can be sold profitably on the free market, they appear to cling to the Labor Theory of Value where labor alone defines value produced.

They seem to think that all it takes to make a job is a worker and someone to pay him. If no employer stands ready to do so, the manager of a government program can hire him to dig a ditch and fill it in. A job is a job.

In the news recently was an employee sit-in at defunct Republic Windows in Chicago. The company lost its credit line from Bank of America and a major investor recently wrote off a twelve million dollar investment in the company as valueless.

The employees are demanding severance and accrued vacation pay as mandated by federal law. Apparently unbeknownst to them, their work was producing nothing of value, defined as things sold at a profit. The company produced losses, not profits, which revealed that anyone working there was engaged in unproductive work, no matter how many windows they made.

Politicians with the state of Illinois and city of Chicago threatened to end their business ties with Bank of America if the bank didn’t somehow help the employees get what they wanted. In this microcosm we see that membership in Cargo Cult Economics is nearly universal. Jobs aren’t endeavors that produce economically viable goods and services, they’re just something that takes up time, requires some kind of effort, and results in a paycheck. All that matters is work, not that what is produced is economically viable. The idiotic Labor Theory of Value is clearly part and parcel of Cargo Cult Economics.

Spending on make-work jobs and economically non-viable production generates nothing but waste. It wastes the money of those people taxed (extorted) to pay for it and it wastes the time of those doing the work when they should be out developing new skills in other jobs that, when so employed, produce profits. Such spending also steals money from the suppliers of goods and services taxpayers would have preferred to purchase; society as a whole gets poorer with every cycle.

Instead of progress we get regress.

Welcome to Obamanomics, a sect of the Keynesian denomination of Cargo Cult Economics.

[…]

http://www.lewrockwell.com/calderwood/calderwood24.html

We have already seen Cargo Cult behavior in the form of UFO cults and the absurd designs for man made flying discs that totally misunderstand the principles of real UFOs.

This Cargo Cult effect in economics is directly related to the ostrich posturing surrounding UFOs as detailed in the excellent paper UFOs, Sovereignty and Politics‘(PDF). There is a developing taboo against saying that allowing the free marked to solve problems is the best way to ‘organize’ the economy. We can see some of this effect in this CNN clip. It doesn’t seem to matter to the presenters and the delusional german that the Austrians have been right for decades and that they have a complete theory of economics that can not only predict the future but offer real solutions; these ideas are to be irrationally marginalized for purely psychological reasons based around mostly around pity and a poorly thought out desire to help their fellow man.

I am daily astounded by the amazing ignorance of the pundits and ‘experts’ when it comes to economics. It is not just a matter of philosophy, but a profound lack of knowledge about the fundamentals. The worst offenders are the people at CNN and MSNBC who are not only clueless, but who are actually hostile to the facts.

In the end, everyone must come to the same conclusion, wether the subject be economics or UFOs; there is only one reality, and we are all faced with it wether we like it or not. Your choice as a rational human being should be to face the facts and then deal with them whatever they may be.

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’.