One of the critiques of any trade deal of late is that there should be penalties for countries guilty of “currency manipulation.” The concern is that countries will devalue their currency in an effort to make their own exports cheaper to other nations while making it harder for other countries to export back to them. As an example, if the Chinese were to do something that cuts the value of the Yuan in half vs. the dollar, their products look very cheap to American consumers while American-produced goods suddenly look a lot more expensive to Chinese consumers.
I have two brief responses to this:
- I find it hilarious that anyone in the United States government, which has a Federal Reserve that has added nearly $2 trillion to its balance sheet in the service of cramming down the value of the dollar, can with a straight face accuse other nations of currency manipulation. In practice in today’s QEconomy, currency manipulation means another country is doing exactly what we are doing, but just doing it faster.
- As an American consumer, to such currency manipulation by other countries I say, Bring it On! If China wants to hammer its own citizens with higher prices and lower purchasing power just to subsidize lower prices for me, I am happy to let them do it. Yes, a few specific politically-connected export businesses lose revenues, but trying to prop them up is pure cronyism. Which is one reason I think Elizabeth Warren is a total hypocrite. The constituency of the poor and lower middle class she presumes to speak for are the exact folks who shop at Walmart and need very price break on everyday goods they can get. Senator Warren’s preferences for protectionist trade policies and a weak dollar will hurt these folks the most.
Warren Meyer, “Currency Manipulation”, Coyote Blog, 2015-05-26.
January 1, 2017
December 27, 2016
I’m not well-versed in the various religious groups in India, so I’m afraid I’d never even heard of Lingayat until today:
Two Lingayat community outfits, Basava Samithi and Vishwa Lingayat Mahasabha, have urged the Union government to grant their community the status of independent religion. Addressing a press conference here on Monday, Sanjay Makal, Vlasavathi Khuba, Asha Khuba Manjunath Kale, Chandrashekhar Tallali and other leaders associated with the outfits argued that their community had never been part of Hinduism.
“Lingayat is an independent religion based on its own world view. After Independence, Sikh, Jain, Buddhism, Christianity, Islam and Hinduism faiths were declared as religions. But, Lingayat was perceived as a caste within Hinduism. The efforts, both legal and social, to get an independent religion for Lingayat have been on since 1940,” Mr. Makal said.
To a question, Mr. Makal said his outfit had taken special drive among community members for recording their religion as Lingayat in Socio-educational Economic Survey conducted by Karnataka State Backward Classes Commission last year.
“Many community people did not mention their religion name as Lingayat as they were afraid of losing reservation allocated for their sub-caste. Mentioning their religion as Lingayat would in no way affect the reservation benefits. We have taken up a prolonged campaign to educate the members so that they would correctly mention their religion in 2021 census,” he said.
H/T to Colby Cosh for the link.
December 21, 2016
An interesting re-map of India’s caste system to modern day western society:
I move professionally in circles where lib-left “virtue signaling” is taken for granted, especially inside the US. (Academia outside the US, while no less in the grip of a collective moral superiority complex, at least tolerates dissenters to some degree.)
As I was perusing Trump’s cabinet list in the Times of London the other day, I was struck not so much by the names — some ‘feck yeah!’, some ‘well, OK’, some ‘meh’ — as by what wasn’t there. The ‘Brahmandarins™’ had been left behind, as it were. Allow me to expand.
Traditional society in India has myriad little jatis (“births”, freely: castes), but they ultimately derive from four (plus one) major varnas (“colors”, freely: classes). While caste membership and profession are more fluid than generally assumed by Westerners, these five major groupings do exist to the present day, and are mostly endogamous. From top to bottom, the varnas are:
- Brahmins (scholars)
- Kshatryas (warriors, rulers, administrators)
- Vaishyas (merchants, artisans, and farmers)
- Shudras (laborers)
- Finally, the Dalit (downtrodden, outcasts — the term “pariah” is considered so offensive it has become “the p-word”) are traditionally considered beneath the varna system altogether, as are other “Scheduled Castes” (a legal term in present-day India, referring to eligibility for affirmative action).
The upper three varnas bear some resemblance to the three Estates of the French ancien régime: clergy, nobility, and the bourgeoisie (le tiers état, the Third Estate). American society used to be a byword for social mobility (“the American dream”) — but a stratification has set in, and it takes little imagination to identify strata of Dalit, Shudras, and Vaishyas in modern American society. The numerically small subculture of military families could be identified as America’s Kshatryas. So where are the Brahmins? (No, I’m not referring to the old money Boston elite.) And why am I using the portmanteau “Brahmandarins” for our New Class?
In India one was, of course, born into the Brahmin varna, and they actually delegated the messy business of governance to the varna below them. In China’s Middle Kingdom, on the other hand, not only was the scholarly Mandarin caste actually the backbone of governance, but in principle anyone who passed the civil service exams could become a Mandarin.
Originally, these exams were meant to foster a meritocracy. Predictably, over time, they evolved to select for conformity over ability, being more concerned with literary style and knowledge of the classics than with any relevant technical expertise.
Hmm, sounds familiar? Consider America’s “New Class”: academia, journalism, “helping” professions, nonprofits, community organizers, trustafarian artists,… Talent for something immediately verifiable (be it playing the piano, designing an airplane, or buying-and-selling,… ) or a track record of tangible achievements are much less important than credentials — degrees from the right places, praise from the right press organs,…
December 2, 2016
Shikha Dalmia explains why Indian Prime Minister Narendra Modi suddenly decided to kneecap his country’s money supply and cause massive economic disruption:
Modi was elected in a landslide on the slogan of “Minimum Government, Maximum Governance.” He promised to end babu raj — the rule of corrupt, petty bureaucrats who torment ordinary citizens for bribes — and radically transform India’s economy. But rather than tackling government corruption, he has declared war on private citizens holding black money in the name of making all Indians pay their fair share.
Tax scofflaw behavior is indeed a problem in India. But it is almost always a result of tax rates that are way higher than what people think their government is worth. The enlightened response would be to lower these rates and improve governance. Instead, Modi is taking his country down what Nobel-winning political economist F.A. Hayek called the road to serfdom, where every failed round of coercive government intervention simply becomes an excuse for even more draconian rounds — exactly what was happening in pre-liberalized India.
About 600 million poor and uneducated Indians don’t have bank accounts. Roughly 300 million don’t have official identification. It’s not easy to swap their soon-to-be worthless cash, which is a catastrophe given that they live hand to mouth. It is heartbreaking to see these people lined up in long queues outside post offices and banks, missing days and days of work, pleading for funds from the very bureaucrats from whose clutches Modi had promised to release them.
Modi hatched his scheme in complete secrecy, without consulting his own economic advisers or the Parliament, lest rich hoarders catch wind and ditch their cash holdings for gold and other assets. Hence, he could not order enough new money printed in advance. This is a massive problem given that about 90 percent of India’s economic transactions are in cash. People need to be able to get money from their banks to meet basic needs. But the government has imposed strict limits on how much of their own money people can withdraw from their own accounts.
This is not boldness, but sheer conceit based on the misguided notion that people have to be accountable to the government, rather than vice versa. Over time, it will undermine the already low confidence of Indians in their institutions. If Modi could unilaterally and so suddenly re-engineer the currency used by 1.1 billion people, what will he do next? This is a recipe for capital flight and economic retrenchment.
The fear and uncertainty that Modi’s move will breed will turn India’s economic clock back to the dark times of pre-liberalized India — not usher in the good times (aache din) that Modi had promised.
October 31, 2016
Published on Oct 8, 2016
How does paper money get introduced? Who has to lose their head to do so? And what does Marco Polo have to do with anything???
October 9, 2016
Published on 8 Oct 2016
In another exiting episode of Out Of The Ether, Indy reads a great comment by a Russian fan about the situation of Chinese workers in Russia.
September 17, 2016
… the movie is seriously anti-historical in one respect; we are supposed to believe that traditionalist Samurai would disdain the use of firearms. In fact, traditional samurai loved firearms and found them a natural extension of their traditional role as horse archers. Samurai invented rolling volley fire three decades before Gustavus Adolphus, and improved the musket designs they imported from the Portuguese so effectively that for most of the 1600s they were actually making better guns than European armorers could produce.
But, of course, today’s Hollywood left thinks firearms are intrinsically eeeevil (especially firearms in the hands of anyone other than police and soldiers) so the virtuous rebel samurai had to eschew them. Besides being politically correct, this choice thickened the atmosphere of romantic doom around our heroes.
Another minor clanger in the depiction of samurai fighting: We are given scenes of samurai training to fight empty-hand and unarmored using modern martial-arts moves. In fact, in 1877 it is about a generation too early for this. Unarmed combat did not become a separate discipline with its own forms and schools until the very end of the nineteenth century. And when it did, it was based not on samurai disciplines but on peasant fighting methods from Okinawa and elsewhere that were used against samurai (this is why most exotic martial-arts weapons are actually agricultural tools).
In 1877, most samurai still would have thought unarmed-combat training a distraction from learning how to use the swords, muskets and bows that were their primary weapons systems. Only after the swords they preferred for close combat were finally banned did this attitude really change. But, hey, most moviegoers are unaware of these subtleties, so there had to be some chop-socky in the script to meet their expectations.
One other rewriting of martial history: we see samurai ceremoniously stabbing fallen opponents to death with a two-hand sword-thrust. In fact, this is not how it was done; real samurai delivered the coup de grace by decapitating their opponents, and then taking the head as a trophy.
No joke. Head-taking was such an important practice that there was a special term in Japanese for the art of properly dressing the hair on a severed head so that the little paper tag showing the deceased’s name and rank would be displayed to best advantage.
While the filmmakers were willing to show samurai killing the wounded, in other important respects they softened and Westernized the behavior of these people somewhat. Algren learned, correctly, that ‘samurai’ derives from a verb meaning “to serve”, but we are misled when the rebel leader speaks of “protecting the people”. In fact, noblesse oblige was not part of the Japanese worldview; samurai served not ‘the people’ but a particular daimyo, and the daimyo served the Emperor in theory and nobody but themselves in normal practice.
Eric S. Raymond, “The Last Samurai”, Armed and Dangerous, 2003-12-15.
July 30, 2016
Published on 23 Jul 2016
Order the limited edition Opium Wars wall scroll before it leaves forever on July 27! http://bit.ly/2a138ur
James talks about our mistakes, and adds additional stories, for Federico da Montefeltro and the First Opium War!
Quick story about Federico da Montefeltro: after losing an eye in a jousting accident, he ordered his doctor to cut a divot out of his nose so that his remaining eye had a better view and he could still fight in battles.
Now on to the Opium War! The Macartney expedition did not draw on the knowledge of Jesuit missionaries or even merchants who were familiar with Chinese court customs, because the British felt that a noble like Macartney was the only fitting representative. He didn’t come prepared to handle the kowtow, and he didn’t understand that the Chinese would have been more interested in British agricultural tech than they were in trinkets. James reads the disdainful letter which the Daoguang Emperor wrote to King George III in response to the embassy. There also happened to be a political upheaval in the Chinese palace at the time, so if the British had arrived sooner, they may have met with a different result and avoided the Opium Wars entirely. Once the war came to a head, it caused great division in Britain. Even though it was a war to sell illegal drugs, it was often recast as a war the Chinese provoked by insisting on the kowtow and treating other nations as vassals. Two traders by the names of James Matheson and William Jardine helped tip the scales for war because it helped their business, which had gotten a huge start in the opium trade. The Jardine-Matheson trading firm still exists today, and is a multibillion dollar company. Back in China, the British blockade of Canton’s port led to an odd first confrontation. A British ship called the Royal Saxon ran the blockade, so the British fired a warning shot to make it turn back. The Chinese, to prove they still controlled their sovereign waters, took this as an opportunity to challenge the blockade. Thus, their defense of a British smuggler led them into a war that, ironically, was about stopping British smugglers. The British official directing the war efforts, Charles Elliot, found himself in an awkward situation. He loved his country, but he morally objected to the British agenda in China. He tried to pave a moderate path, only to be fired and reviled as a failure. But after he left, the war truly got vicious. The British committed many atrocities in their campaign. They never sought to hold China, however, because their wars in India had taught them how impossible such an undertaking would be. Thus they settled on the unequal treaty. And as for Walpole… well, he started it, of course. Tea became such a large part of Britain’s economy because of the large tax levied on it. And who levied that tax? It was Walpole. He actually repealed an earlier, heavily resented tax and got political accolades for doing so, then introduced a much higher tax under a different name that flew under the radar even while it brought in hundreds of thousands of pounds for the government every year. The government’s reliance on tea for funding would later propel them to take such extraordinary measures to secure access to tea via Chinese trade. So who really started the Opium War? Well. It was Walpole.
July 23, 2016
Published on 9 Jul 2016
The Chinese attempt to retake Canton by force failed. New British commanders took charge and would accept nothing less than total Chinese capitulation. They captured cities all the way up to Nanking, forcing the Emperor to negotiate. He had no choice but to accept an unequal treaty, kicking off a period of subservience to Europe which China still remembers today as the Century of Humiliation.
Disappointed in the treaty, the Daoguang Emperor replaced Qishan with three new commanders. One of them wanted to buy time and modernize the army, but the Emperor insisted the British be repelled immediately. They assaulted Canton from across the river, firing cannons and sailing fire ships at the British fleet. Their efforts fell far short, and soon the British controlled the river again. The Chinese were forced to pay them an indemnity to leave Canton, but in their wake riots and looting plagued the city anyway. Elliot still led the British forces, but upon returning to Hong Kong, he learned that he was now being replaced. His replacements had no interest in the compromises he’d tried to establish. They pushed immediately towards Beijing. In each new fort they captured, they found evidence that the Chinese resistance had ironically been weakened by crippling opium addiction. As the Chinese attacks grew more desperate, British retaliation grew more brutal. Finally, they stood ready to seize Nanking. With it would come control of the Yangtze River on which all of China depended, so the Emperor was forced to negotiate. They had no bargaining power, and gave the British nearly everything they wanted: a huge indemnity, new trade ports, no more Hong monopoly, generous tariffs, consulates, and sovereignty over Hong Kong. The only two matters they refused were Christian missionaries and legalizing opium, but the latter would only lead to the Second Opium War with similar results. These “unequal treaties” would go down in Chinese history as the beginning of what the Communist government later called “The Century of Humiliation.” The spectre of this shame and forced subservience to European interests continues to shape politics today, as this history is often invoked or used as a rallying cry during dealings with the West.
July 20, 2016
Published on 2 Jul 2016
The British set up a blockade outside Canton, but one of their own private merchant ships tried to run through it. When the Chinese came to its defense, war began in earnest. Since the British had far superior firepower, they easily conquered Chuenpee and Chusan. Elliot and the Emperor’s new envoy, Qishan, soon sought a treaty and agreed on generous terms… which their overseers harshly rejected.
The British responded to the Chinese halting their ships by erecting a blockade outside Canton. They fired a warning shot to turn back a private British merchant ship, the Royal Saxon, which attempted a blockade run, and the Chinese sent out their own navy to defend the runner. They were demolished. The British had better ships and better firepower. They made to discuss a treaty, but the Chinese refused to give in to the British demands regarding ownership of Hong Kong. The British moved on to capture Chusan, an island near Shanghai. Then a rumor prompted them to believe that China planned to strike against them, so they acted pre-emptively and kicked off the Battle of Chuenpee. Again they won, but the slaughter was so horrifying that Superintendent Elliot was glad to seek a peace treaty with the emperor’s envoy, Qishan. Finally Qishan agreed to give up Hong Kong, to give the British better trade status, in exchange for which Britain returned the land they’d taken. But Elliot’s supervisor back in London, Lord Palmerston, felt the treaty didn’t go far enough, especially since it didn’t re-establsih opium trading rights. And the Emperor found Qishan’s capitulation disgraceful, even threatened to have him hanged for it. What had looked like moderate wins for both sides suddenly threatened to fall apart.
Flashman […] describes a scene where an English vicar preached to the sepoys (native Indian soldiers) on the Parable of the Prodigal Son, through a native (Muslim) NCO interpreter, who made fun of the story:
“There was a zamindar, with two sons. He was a mad zamindar, for while he yet a lived he gave to the younger his portion of the inheritance. Doubtless he raised it from moneylender. And the younger spent it all whoring in the bazaar, and drinking sherab. And when his money was gone he returned home, and his father ran to meet him, for he was pleased — God alone knows why. And in his foolishness, the father slew his only cow — he was evidently not a Hindoo — and they feasted on it. And the older son, who had been dutiful and stayed at home, was jealous, I cannot tell for what reason, unless the cow was to have been part of his inheritance. But his father, who did not like him, rebuked the older son. This story was told by Jesus the Jew, and if you believe it you will not go to Paradise, but instead will sit on the right-hand side of the English Lord God Sahib who lives in Calcutta. And there you will play musical instruments, by order of the Sirkar. Parade — dismiss!”
Flashman said he had never felt so embarrassed for his church and country in his life.
John Derbyshire, “A Reader Proposes An Anti-Cuckservative Reading List–Starting With FLASHMAN”, VDARE, 2016-07-05.
July 11, 2016
Published on 25 Jun 2016
Opium was illegal in China, but that didn’t stop the East India Company from manufacturing it for the black market. The Chinese emperor appointed an official, Lin Zexu, to stop it. He seized and burned huge opium caches held by British merchants, and ultimately ordered the British out of China entirely. Instead, they set up base on a barren island that would become known as Hong Kong.
The tea trade flowing from China had left the British government in staggering debt. They had loaned huge amounts to the Honourable East India Company (EIC) to conquer India, and to pay their debts, the EIC turned that land into poppy fields and manufactured opium in huge quantities. Since China had banned the opium trade, the EIC set up a market in Calcutta (part of their Indian territory) and turned a blind eye to the black market traders who smuggled it into China. By 1839, over 6.6 million pounds of opium were being smuggled into China every year. The Chinese DaoGuang Emperor appointed an upright official named Lin Zexu to halt this opium trade. Lin orchestrated a massive campaign to arrest opium traders, force addicts into rehab, and confiscate pipes. He even laid siege to British warehouses when the merchants refused to turn over their opium supply, instead taking it all by force and burning it. The outraged merchants sought redress from their government, but although the Chief Superintendant Charles Elliot promised them restitution, the government never had any intention of paying them back. Amid the unrest, two British sailors brutally murdered a Chinese man. Lin Zexu demanded their extradition, but Elliot insisted on trying them aboard his ship and sentencing them himself. Lin Zexu had enough. He halted the British food supply and ordered the Portuguese to eject them from Macau. They retreated to a barren island off the coast (now known as Hong Kong). Since the island could not support them, Elliot petitioned the Chinese to sell them food again. He received no response. Then he sent men to collect it directly, but on their way back they were halted by the Chinese navy, and the first engagement of the Opium Wars began.
July 7, 2016
Published on 18 Jun 2016
The British Empire’s grasp on the Americas was slipping right at the time when they needed those resources most. The massive amounts of tea they imported from China had created a huge trade deficit, but the Chinese were reluctant to let any Europeans trade outside of the Canton port strictly controlled by the Hong. So Britain sent a formal embassy led by Earl George Macartney.
In 1792, Great Britain had just come out of an expensive war that cost them their control over many of their colonies in North America. Other wars had also cost them their access to the silver mines of South America, which had been helping fund so much of their trade with the Qing Dynasty of China. European traders all wanted greater access to China, but the Emperor was wary of letting outsiders too far into his country and kept them all penned up at the port of Canton, which was strictly regulated by the Hong business group. A flourishing blackmarket trade grew, but Britain wanted more. One trader, acting on his own initiative, grew bold enough to approach Beijing and attempt to get a hearing over his trade grievances, but the Chinese considered this a huge breach of protocal and an offense to the Emperor. Britain had to do something, however: they imported over 10 million pounds of tea each year, equal to 10% of the government’s annual spending, and the fact that China did not have anywhere near as great an interest in British products meant that they were running an enormous trade deficit they could no longer sustain. The Crown appointed an official envoy, Earl George Macartney, with orders to end the Canton system, establish an embassy, and acquire rights to an island that would be under British control in the same way that the Porutuguese controlled Macao. The mission failed spectacularly. Although Macartney got permission to sail north and meet the Qianlong Emperor in his summer palace at Jehol, he refused to perform the traditional kowtow which was required upon meeting the Emperor. He presented gifts from the British court, but the Chinese interpreted these gifts as tribute, not trade enticements, and decided they had no need for nor interest in what he offered. Since he failed to get them to agree to any of his three requests, Britain wanted to find another way to address the trade imbalance with China. Soon, this would lead them to start bringing in opium.
June 29, 2016
Pakistani religious law authorities announce support for (some) transgender marriages and civil rights
In The Telegraph, Mohammad Zubair Khan and Andrew Marszal report on a somewhat surprisingly liberal announcement on the part of a group of Islamic religious leaders:
Fifty top Pakistani clerics have issued a religious decree declaring that transgender people have full marriage, inheritance and funeral rights under Islamic law.
The fatwa stated that a female-born transgender person having “visible signs of being a male” may marry a woman or a male-born transgender with “visible signs of being a female”, and vice versa.
However, it ruled that a transgender person carrying “visible signs of both genders” – or intersex – may not marry anyone.
It is currently impossible for transgenders to marry in Pakistan, where gay marriage remains punishable by life imprisonment, and no “third gender” is recognised on official identity cards.
The new fatwa also declared that any act intended to “humiliate, insult or tease” the community was “haraam” (sinful), and that transgender persons should not be deprived of family inheritances, nor the right to be buried in Muslim ceremonies.
Muhammad Zia Ul Haq Naqshbandi, the Lahore-based head of the Tanzeem Ittehad-i-Ummat religious law organisation that issued the fatwa, said parents who deprived their transgender sons or daughters of inheritances were “inviting the wrath of God”.
Tanzeem Ittehad-i-Ummat is not a political organisation, and its fatwas are not legally binding. But the group wields influence thanks to its tens of thousands of followers across Pakistan.
June 23, 2016
Uploaded on 18 Jan 2010
Song: Theme from Silk Road
Live in Tokyo Orchard Hall
September 26th 2009.
Love and Peace Planet Music Tour 2009 in Tokyo