November 15, 2014
November 12, 2014
Banking is a service, […] and a service has a cost associated with it. Modern banking has all kinds of fees and charges associated with it. But depositors are often charged for keeping too low a balance in their savings or checking accounts, not too large a balance. What’s going on here?
Central banks have created this monster via the regimen of ZIRP (Zero Interest Rate Policy). This is a way of implementing Keynesian stimulus, but central banks have run up against the liquidity-trap wall: interest rates cannot fall below zero. Monetary policy stops working at the zero-interest boundary.
For central banks, the problem is that in a slow-growth economy (or actually a recessive one) a paradox arises where rational behavior on the part of savers leads to bad results: consumers save their money out of concern for the future, but the economy — starved of the cash that fuels it — slows still further. This is the argument behind Keynesian stimulus; inject more (newly-printed) money into the economy until people stop being scared and start spending freely again (with their own money and borrowed money). The danger of inflation looms, however, so central banks try to implement various regimes to keep it under control (with varying degrees of success).
This theory founders on the shoals of reality, alas. It’s rational for people to save money, particularly during bad times, because people believe their currency stock to be an appreciating (or at least a constant-value) asset. But when a sovereign inflates (devalues) its currency to solve a short term economic problem, they run the risk of damaging confidence in the currency itself. Inflation may inject some nitrous oxide into the engine of the economy for a short time, but the outcome may be a blown engine (i.e., a ruined currency, as it was during the Weimar era).
When people lose trust in a fiat currency, it’s nearly impossible to restore confidence in it. Trust is all a fiat currency has — without trust, fiat currency is just worthless paper. This is really the core of the sound-money argument: deflation is bad because it can stall an economy and make debt servicing murderously difficult, but inflation is worse because it wrecks the currency itself. Hard-money currency regimes may be somewhat prone to deflationary cycles, but at least they never go to zero value; they always retain some value. Fiat currencies can go to zero.
Monty, “DOOM: The Wrath of Draghi”, Ace of Spades H.Q., 2014-11-06.
October 28, 2014
Tim Worstall explains why it’s not a scandal that Facebook doesn’t pay more taxes in the UK:
In fact, it’s actually rather a good idea that Facebook isn’t paying UK corporation tax. For the standard economic finding (also known as optimal taxation theory) is that we shouldn’t be taxing corporations at all. Thus, as a matter of public policy we should be abolishing this tax: and also perhaps applauding those companies that take it upon themselves to do what the politicians seem not to have the courage to do, make sure that corporations aren’t paying tax.
That isn’t how most of the press sees it, of course
That’s an extremely bad piece of reporting actually, for of course Facebook UK did not have advertising revenue of £371 million last year: Facebook Ireland had advertising revenue of that amount from customers in the UK that year. And that’s something rather different: that revenue will be taxed under whatever system Ireland has in place to tax it. And this is the way that the European Union system of corporate taxation is supposed to work. Any company, based in any one of the 28 member countries, can sell entirely without hindrance into all other 27 countries. And the profits from their doing so will be taxed wherever the brass plate announcing the HQ of that company is within the EU. This really is how it was deliberately designed, how it was deliberately set up: it is public policy that it should be this way.
We could also note a few more things here. The UK company itself made a loss and that loss was because they made substantial grants of restricted stock units to the employees. And under the UK system those RSU grants are taxed as income, in full, at the moment of their being granted. Which will mean, given those average wages, at 45% or so. And we should all be able to realise that a 45% tax rate is rather higher than the 24% corporation tax rate. The total tax rate on the series of transactions is thus very much higher than if Facebook has kept its employees as paupers and just kept the profits for themselves. Further, those complaining about the tax bill tend to be those from the left side of the political aisle: which is also where we find those who insist that workers should be earning the full amount of their value to the company which is what seems to be happening here.
August 18, 2014
There you go … proof positive that the UK cannot possibly, under any circumstances, leave the European Union. Except for the fact that the UK would lose 3 million jobs in the year even if it stayed with the EU, because that’s how many jobs it normally loses in a year:
UK Would Not Lose 3 Million Jobs If It Left The European Union
Well, of course, the UK would lose 3 million jobs in the year it left the European Union because the UK loses 3 million jobs each and every year. Roughly 10% of all jobs are destroyed in a year and the economy, generally, tends to create 3 million jobs a year as well. But that’s not the point at contention here which is the oft repeated claim that because we left the EU then therefore the UK economy would suddenly be bereft of 3 million jobs, that 10% of the workforce. And sadly this claim is a common one and it just goes to show that there’s lies, damned lies and then there’s politics.
The way we’re supposed to understand the contention is that there’s three million who make their living making things that are then exported to our partners in the European Union. And we’re then to make the leap to the idea that if we did leave the EU then absolutely none of those jobs would exist: leaving the EU would be the same as never exporting another thing to the EU. This is of course entirely nonsense as any even random reading of our mutual histories would indicate: what became the UK has been exporting to the Continent ever since there’s actually been the technology to facilitate trade. Further too: there have been finds in shipwrecks in the Eastern Mediterranean of Cornish tin dating from 1,000 BC, so it’s not just bloodthirsty and drunken louts that we’ve been exporting all these years.
July 2, 2014
EU publishers want a totally different online model for content – where they can monetize everything
Glyn Moody reports on the passionate desire of EU publishing organizations to get rid of as much free content as possible and replace it with an explicit licensing regime (with them holding all the rights, of course):
For too many years, the copyright industries fought hard against the changes being wrought by the rise of the Internet and the epochal shift from analog to digital. Somewhat belatedly, most of those working in these sectors have finally accepted that this is not a passing phase, but a new world that requires new thinking in their businesses, as in many other spheres. A recent attempt to codify that thinking can be found in a publication from the European Publishers Council (EPC). “Copyright Enabled on the Network” (pdf) — subtitled “From vision to reality: Copyright, technology and practical solutions enabling the media & publishing ecosystem” — that is refreshingly honest about the group’s aims:
Since 1991, Members [of the EPC] have worked to review the impact of proposed European legislation on the press, and then express an opinion to legislators, politicians and opinion-formers with a view to influencing the content of final regulations. The objective has always been to encourage good law-making for the media industry.
The new report is part of that, and is equally frank about what lies at the heart of the EPC’s vision — licensing:
A thread which runs through this paper is the proliferation of ‘direct to user’ licensing by publishers and other rights owners. Powered by ubiquitous data standards, to identify works and those who have rights in those works, licensing will continue to innovate exponentially so that eventually the cost of serving a licence is close to zero. The role of technology is to make this process seamless and effective from the user’s perspective, whether that user is the end consumer or another party in the digital content supply chain.
[…] the EPS vision includes being able to pin down every single “granular” part of a mash-up, so that the rights can be checked and — of course — licensed. Call it the NSA approach to copyright: total control through total surveillance.
Last year, when the National Post started demanding a paid license to quote any part of their articles (including stories they picked up from other sources), I stopped linking to their site. I suspect most Canadian bloggers did the same, as I see very few links to the newspaper now compared to before the change in their policy. It worked from their point of view: I’m certainly not sending any traffic to their site now, and there was never a chance of me being able to afford their $150 per 100 word licensing rate. Win-win, I guess. The EPS is hoping to avoid that scenario playing out in Europe by mandating that all content use the same kind of licensing, backed up by the power of the courts (and the kind of pervasive surveillance tactics the NSA and its Anglosphere partners have honed to a very fine edge).
June 25, 2014
In the Telegraph, Iain Martin says the appointment of Jean-Claude Juncker as President of the European Commission may play out differently than the traditional “isolated Britain” scenario:
It comes straight from the British political playbook as practised by the parties and reported by the media since the mid-1980s. There is a row in the European Union. Britain is right (an inconvenient detail, usually skimmed over), although lots of other countries don’t agree with us for a host of reasons. This means that Britain is — good grief, the horror — “isolated” in Europe with only a handful of allies. Broadcasters will then brandish the “i” word in front of any minister who goes on television or radio during the row. Hasn’t UK government incompetence left us almost alone? Shouldn’t we agree with everyone else so that we might not be isolated?
Perhaps it is comforting, or even reassuring, to think of the European story in this hackneyed way. Bad old Britain, grumbling about sovereignty and trying in its stick-in-the-mud way to stop a disastrous appointment or opting out of the single currency, can be presented as the dinosaur that needs to get with the European programme. Come on, do a deal. If we do the wrong thing, at least we won’t be isolated.
This is the conventional prism through which the likely appointment of Jean-Claude Juncker as President of the European Commission might be viewed. But in reality it is much more interesting and significant than the standard diplomatic kerfuffle. His appointment, if it happens, will be a historic disaster on a grand scale which makes Britain’s exit from the European Union very likely. And I speak as someone who has been for reform and staying in the EU if possible.
Back in the here and now, as the Financial Times story this morning makes clear, Juncker would be really quite rubbish at the job. An exhausted veteran of the squalid deals which established the disastrous single currency in the 1990s, there is nothing in his record to suggest that he would even be good at the basics of administration. What he seems to be about is contempt for Eurosceptic opposition, a disregard for democracy, a resistance to reform and a relentless federalist vision of the EU which cannot accommodate a recalibrated relationship for countries such as Britain. According to opinion polls, the British want to trade, be friends and cooperate with the EU, but not immerse themselves in a country called Europe. Despite knowing this, the EU’s governments are giving the British voters the finger.
And still, most of Europe accelerates madly towards disaster as though they do not care, either ignoring British concerns on Juncker’s unsuitability, or being rude about one of the EU’s largest contributors (us) and talking now as though they want us to leave.
The bottom line is this. If Juncker gets the gig, this is the week that the door was opened to Britain’s exit from the EU.
May 28, 2014
There is, so to say, good news and bad news for democratic European Unionists. The good news is that, for the first time, voter turnout actually increased from the previous election to the European Parliament. Just over 43 percent of the eligible bothered to vote, up 1/10th of 1 percent. The bad news is that so many of these voters selected parties devoted to the destruction of as much of the European Union as possible.
We are laughing, up here in the High Doganate. Or rather, no, we are not laughing, it is all a pose. Still, there is a glint of recognition, gleeful in its own way. The voters, especially in England and France — the pioneer “Nation States” from the later Middle Ages — appear to have been motivated by something akin to the feist that came over the municipal electorate in the Greater Parkdale Area, the last time we voted. That was when we chose the notorious drunkard and drug addict, Rob Ford, to be our mayor. As polls since have repeatedly confirmed, we knew what we were doing. We had a task for him. It was to destroy as much of the vast municipal bureaucracy as possible. Our instruction was: “Keep smashing everything you see until they take you away.” Finesse would not be required, and the licker and crack might be an advantage.
One may love “the people,” without being especially impressed by them. They are stupid, but as the stopped clock, there are moments when they are stupidly correct. These are very brief moments, but let us enjoy them while we can.
David Warren, “Hapless Voters”, Essays in Idleness, 2014-05-26.
May 27, 2014
In the Telegraph, Iain Martin compares UKIP to the Judean People’s Front:
Eurosceptic politics used to be a lot like the famous scene in Monty Python’s Life of Brian, in which a group of revolutionaries – intent on bringing down the Roman Empire – sit in an amphitheatre discussing the various sects into which their movement has subdivided. They contemplate the People’s Front of Judea, the Judean People’s Front and the Judean Popular People’s Front (“Splitters!”). What, asks one of the revolutionaries, ever happened to the Popular Front? “He’s over there,” says the leader, pointing to a rival sitting forlornly on his own.
In the early Nineties, Britain’s Eurosceptics were a similarly divided rabble. The Maastricht Treaty, signed in 1992 by John Major, had turned the looser European Economic Community into the much more integrated European Union and cleared the way for the creation of the single currency – and, it was feared, the destruction of national sovereignty by a new federalist empire.
With the Tories split internally, assorted anti-Maastricht movements began to spawn outside the confines of the two-party system. One was the United Kingdom Independence Party, which had its origins in the Anti-Federalist League, established in 1991 by a group led by Professor Alan Sked, a historian who teaches at the London School of Economics.
By establishing a new party, Sked and his colleagues hoped to create a movement that would build support for EU exit. At the time, this sounded like an outlandish aspiration. Indeed, initially Ukip was just a small band of dedicated campaigners and eccentric obsessives almost incapable of winning elections. The activists – true to form for a small party – seemed to spend more time fighting each other than battling their Europhile opponents. Splits and leadership coups were commonplace. If the Tory end of the political establishment paid any attention, it was only to laugh at what seemed like an irrelevant bunch of jokers.
Well, the Tories are not laughing now.
May 26, 2014
With the EU election results in, the “I told you so” and “Here’s what it really means” brigades are out in force, letting us know what the voters are really saying with their ballots. For example, Here’s Graeme Archer measuring up the Lib-Dems for an early grave:
Since “Europe” (elections about, scandals involving etc) this year is bound up temporally, and hence a little psychologically, with “Eurovision”, which is about as camp an entity as is possible to conceive; since we’re going to talk about the Liberal Democrats’ existential crisis, let’s set the mood music accordingly. Close your eyes and think of Shirley Bassey. Or better still click here and sing along, especially if your name is Nick Clegg, leader of a party which really does have nothing.
I’m not here to gloat, seriously. Anyone who stands for election is worth celebrating, because you don’t fight for something unless you’re prepared to lose. But, OK, I’m a tribal Tory too, so here’s a couple of things that amused me last night. The sight of arch-federalist Lib Dem Edward McMillan Scott, newly defeated, telling the BBC that he’d be back in some other new role, demonstrating perfectly the anti-democratic “hanger-onnery” that infuriates Eurosceptics about the institution (Matthew Woods, an old Hackney Tory mate, coined “hanger-onnery”, and it’s perfect). The other laugh is that the Lib Dem wipeout was secured in part by the wretched Proportional Representation system, whose algorithmic horrors they’re so keen to foist onto every other election. Be careful what you wish for, Fair Voters!
Seriously, though, this is the existential crisis which the Lib Dem construct has spent this parliament pretending it could avoid. Changing the leader won’t help. […]
Now repeat the exercise from the perspective of a “Lib Dem”, which, after last night, isn’t so much a thought experiment as a glance at the newspapers. Remove every elected Lib Dem from the map: what are their voters left with?
Nothing. Utterly nothing. There is a historical tradition of political liberalism in Britain, but as any fule kno, most of it was absorbed by the Conservative Party at key points in the last century. None of that tradition lives on in the “Lib Dem” construct.
What of its emotional disposition, the mirror to my gloomy Toryism? Well: to judge from their record in power, the “Lib Dem” instinct is for greater state intervention, to alleviate the plight of the less well off. So: nothing you can’t get from Labour, then.
“We want to reduce tax [by increasing thresholds]!” Nick Clegg would say, as evidence of the intellectual strand his party represents. Um, so do the vast majority of Conservatives. Again, no need for a “Lib Dem” representative to secure that outcome.
My point is that those Lib Dems who prioritise liberalism — whether about reducing tax, or fighting ID cards and so on — must know in their hearts that they should vote Conservative. Those who prioritise social democracy, similarly, must know that they should vote Labour.
The Irish Times looks at the Euro election results which have seen big gains for several Euro-skeptic parties:
Among the victors was Ms Le Pen’s National Front party which topped the poll in France with a quarter of the vote, bypassing the conservative UMP party, and leaving François Hollande’s Socialist Party in third place. The party is now in line for 24 seats in Strasbourg.
UKIP was expected to top the poll in Britain, with exit polls last night predicting the party could win 31 per cent of the vote. “Up until now European integration has always seemed inevitable … I think that inevitability will end tonight,” UKIP leader Nigel Farage said last night in a live video link to the European Parliament in Brussels, describing the decision to allow former Soviet countries into the European Union as one of Europe’s “great errors.”
Greece’s main opposition party Syriza topped the polls there, while the far-right Golden Dawn party came third with between 8 and 10 per cent of the vote.
In Germany, support for Alternative for Deutschland (AFD) an anti-EU party formed barely two years ago, reach 6.5 per cent, with the party in the running for six seats.
In Austria, the far-right Freedom party was expected to win 20 per cent of votes, up from 13 per cent in 2009.
However, some extreme anti-EU parties in smaller countries did not poll as well as expected, with the far-right Vlaams Belang in Belgium losing support.
Of course, not all Euro-skeptic parties are the same. UKIP is somewhat nativist and has a vocal anti-immigrant wing. Vlaams Belang has a larger and more vocal anti-immigrant component, while the Greek Golden Dawn are as close to modern day Fascists as you’ll find anywhere; not a party you want to be sharing newspaper space with.
May 24, 2014
Before the recent elections, Brendan O’Neill explained why the serried ranks of anti-UKIP pundits, politicians, and the “great and the good” may well be helping UKIP rather than hurting them:
Try as I might, I cannot remember a time when Britain’s various elites were as united in fury as they are now over UKIP leader Nigel Farage. In the run-up to this week’s Euro-elections, in which the Eurosceptic UKIP is expected to do well, leaders of every hue, from the true blue to the deep red, and hacks of every persuasion, from the right to the right-on, are as one on the issue of Farage. From Nick Clegg to the Twitterati that normally gets off on mocking Nick Clegg, from David Cameron to radical student leaders who normally hate David Cameron, fury with Farage has united all. It has brought together usually scrapping sections of the political and media classes into a centre-ground mush of contempt for UKIP. Not even Nick Griffin — who is a far nastier character than Farage — attracted such unstinting universal ire. What’s up with this Farage fury?
The real motor to the anti-Farage outlook, the fuel to this unprecedented fury of the elites, is a powerful feeling that he has connected with the public, or a significant section of it, in a way that mainstream politicians and observers have utterly failed to. The elites see in Farage their own inability to understand the populace or to speak to it in a language it understands. They see in his popularity — his oh-so-stubborn popularity, so notably undented by the daily furious outpourings of the anti-Farage elites — their own failure to swing public attitudes in what they consider to be the ‘right’ direction. That Farage’s popularity in the polls has remained pretty high even as our elites have been attacking him on a daily basis fills them not only with fury but with fear: their arguments seem not to have much traction outside the Westminster bubble, outside of medialand, where despite their best efforts the awkward, annoying little people still remain fairly favourable towards a loudmouth politician who isn’t PC and drinks beer. The fury behind the attacks on Farage is really a fury with the throng, with the masses, whose brains have clearly been made so mushy by UKIP propaganda that even the supposedly enlightened arguments and policies of their betters can now make no impact. It isn’t Farage they hate — it’s ordinary people, and more importantly their own palpable inability to make inroads into those people’s hearts or minds.
In short, the true momentum behind both UKIP’s rise in the polls and the rising temperatures it has provoked in pretty much every elite circle in Britain is not the charms or coherent ideologies of Farage himself. (In fact, many take great pleasure in pointing out that most UKIP supporters don’t know UKIP policy on any issue beyond immigration and the EU.) Rather, it is the political class’s alienation from the public, and its existential insecurities, that have propelled UKIP to the top of the political agenda. The aloofness of the old political machine, its growing distance from and contempt for the voters, its view of the public as a blob to be re-educated and made physically fit rather than as sentient beings to be politically engaged, is what has boosted public support for a party like UKIP that seems willing to speak to, and maybe even for, so-called ordinary people. And it is the out-of-touch political class’s subsequent panic at UKIP’s rise, its fear that the success of this party might spell doom for its safe, samey, middle-ground ilk, which leads it to aim its every ideological, political and media gun at Farage, having the unwitting effect of making him both more widely talked-about and possibly even more popular. It is the political class’s crisis of legitimacy and vision which both created and then inflamed the UKIP phenomenon.
In Forbes, Roger Scruton provides a few reasons why Europe — especially Eastern Europe — is much tougher to defend now than it was in the post-Cold War years:
Three factors are principally responsible for this. The first is the growth of the European Union, and its policy of dissolving national borders. The EU has set out to delegitimize the nation state, to make it irrelevant to the ‘citizens’ of the Union whether they be French, British, Polish or Italian, and to abolish the national customs and beliefs that make long-term patriotic loyalty seriously believable. The EU’s attempt to replace national with European identity has, however failed, and is widely regarded with ridicule. Moreover the EU’s inability to think coherently about defense, and its policy of ‘soft power’ which makes defense in any case more or less inconceivable, means that the motive which leads ordinary people to defend their country in its time of need has been substantially weakened. Patriotism is seen as a heresy, second only to fascism on the list of political sins, and the idea that the people of Europe might be called upon to defend their borders looks increasingly absurd in the light of the official doctrine that there are no borders anyway.
The second reason for European weakness is connected. I refer to the guarantee, under the European Treaties, of the right to work and settle in any part of the Union. This has led to a massive migration from the former communist countries to the West. The people who migrate are the skilled, the entrepreneurial, the educated – in short, the elite on whom the resolution and identity of a country most directly depends. Very soon countries like Latvia, Lithuania, Poland and Romania, all of which are directly threatened by a militant Russia, will be without a committed and resident class of leaders. No doubt, should the tanks start to roll, the émigré populations of those countries will protest. But will they return home to fight a pointless war, leaving their newly-won security and prosperity behind? I doubt it.
The third factor tending to the indefensibility of Europe is the dwindling American commitment to the Western alliance. President G.W. Bush was prescient enough to revive the idea of anti-missile defenses in Eastern Europe, and the military in both Poland and the Czech Republic were prepared to go along with it. Putin displayed his KGB training immediately, by declaring that these purely defensive installations would be an ‘act of aggression’. All the old Newspeak was trotted out in the effort to influence the incoming administration of President Obama against his predecessor’s policy. And the effort was successful. Obama weakly conceded the point, and the anti-missile defenses were not installed. Since then the Obama administration has continued to divert resources and attention elsewhere, creating the distinct impression in Europe that America is no longer wholeheartedly committed to its defense.
April 27, 2014
Ace sums it up nicely:
Why wasn’t the EU doing “more” to pressure Yanukovych, Putin’s choice for President?
Here’s the thing: Because the EU was thinking hard about the Ukraine and realistically about itself.
The EU didn’t want to force Yanukovych out of power, nor encourage the Maidan movement to force him out of power, because they knew that Russia would react as Russia has in fact reacted.
And the EU knew this about themselves: They were not prepared to do a damn thing about a Russian invasion.
So the EU made a cynical, self-serving decision to not encourage or support the Maidan movement, because they knew they would not be doing anything down the road to support the Maidan movement when the movement actually needed support.
This was an unpopular decision, and it makes them seem cowardly and weak… but it did have the benefit of comporting with reality.
The EU was clear-minded enough and had an honest enough appraisal of its interests and capabilities to make the honest, accurate assessment that they would do nothing in Putin but offer him diplomatic protests were he to invade Ukraine.
And the EU crafted its own policy response based on that accurate, honest appraisal of its own weakness and cowardice.
You can call them cowards, but you cannot call them self-deluded fools.
At least they understood themselves.
March 15, 2014
“We went into it to screw the French by splitting them off from the Germans. The French went in to protect their inefficient farmers from commercial competition. The Germans went in to purge themselves of genocide and apply for readmission to the human race.”
March 2, 2014
Extreme wealth, whether honestly or dishonestly acquired, seems these days to bring forth little new except in the form and genre of vulgarity. Mr. Ambani’s skyscraper tower home in Bombay is a case in point: His aesthetic is that of the first-class executive lounge of an airport. Mr. Ambramovich’s ideal is that of a floating Dubai the size of an aircraft carrier. Only once have I been invited to a Russian oligarch’s home, and it struck me as a hybrid of luxurious modernist brothel and up-to-date operating theater. I saw some pictures recently of some huge Chinese state enterprise’s headquarters, and it appalled me how this nation, with one of the most exquisite, and certainly the oldest, aesthetic traditions on Earth, has gone over entirely to Las Vegas rococo (without the hint of irony or playfulness).
But it was the luxury and not the taste of Yanukovych’s homes that outraged the Ukrainians, for if by any chance they had come into money they would have done exactly the same, aesthetically speaking. Yanukovych may have been a dictator of sorts, but when it came to taste he was a man of the people. A horrified Ukrainian citizen, touring one of his homes after his downfall, was heard to exclaim, “All this beauty at our expense!”
As to politics, the Ukrainian crisis has once again revealed the European Union’s complete impotence. Physiognomy is an inexact science, but it is not so inexact that you cannot read the bemused feebleness on the faces of people such as Van Rompuy, Hollande, and Cameron, the latter so moistly smooth and characterless that it looks as though it would disappear leaving a trail of slime if caught in the rain. Mrs. Merkel has a somewhat stronger face, but then she has the advantage of having spent time in the Free German Youth (the East German communist youth movement), which must at least have put a modicum of iron in her soul.
Be that as it may, Russia holds all the trump cards in this situation. It can turn off Western Europe’s central heating at a stroke, and for Europeans such heating is the whole meaning and purpose of life—together with six-week annual holidays in Bali or Benidorm. Therefore Europe will risk nothing for the sake of Ukraine, except perhaps a few billion in loans of no one’s money, a trifle in current economic circumstances. If Bismarck were to return today, he would say that the whole of Ukraine was not worth the cold of one unheated radiator.