Quotulatiousness

October 12, 2017

Britain’s Old Boy Network – from “the Establishment” to “the Embarrassment”

Filed under: Britain, Government, History — Tags: , , , , , — Nicholas @ 03:00

In the media rounds supporting his new book, The Square and the Tower: Networks, Hierarchies and the Struggle for Global Power, Niall Ferguson discusses the decline and fall of the oldest power network in Britain:

It used to be that the United Kingdom of Great Britain and Northern Ireland was the United Cronydom of Great Poshhouse and Northern Grousemoor. The only network that mattered was the Old Boy Network. The OBN was formed by men who were the old boys of a tiny elite of boarding schools known as “public schools” because they were closed to the public. Most boys at those schools were scions of the aristocracy or the landed gentry: future barons and baronets.

Even if thick to the point of educational sub-normality, these young gentlemen would attend either Oxford or Cambridge. They would then be given one of the following jobs:

1. Estate manager and courtier (eldest son).

2. Foreign Office or Treasury mandarin (brightest son).

3. Cabinet minister (most extrovert son).

4. Governor of [insert Caribbean island] (youngest son).

5. BBC director-general (Left-wing son).

This is of course a caricature. In reality, there were all kinds of sub-networks — clusters — within the elite network that ran Britain. Sometimes, a brilliant group of talented young men would come together to achieve great things. There was the “Kindergarten” formed by Alfred Milner, which tried (and failed) to transform South Africa into a second Canada or Australia. There were the Apostles — the Cambridge Conversazione, the most exclusive intellectual club of all time — to which the economist John Maynard Keynes belonged.

However, with increasing frequency after 1945, the OBN’s achievements were less than brilliant. Suez. Wilson. Heath. Double-digit inflation. The three-day week. From being the winners of glittering prizes, the OBN degenerated in the eyes of a previously deferential public into the upper-class twits of the year.

In the Sixties the journalists Henry Fairlie and Anthony Sampson popularised the disdainful name that the historian A.J.P. Taylor had given the British elite: “The Establishment”. By the Seventies the Establishment were more like The Embarrassment — objects of sitcom ridicule. By the Eighties they had been almost entirely driven from the corridors of power. Nothing better illustrated this than the Thatcher governments: not only was the prime minister a woman from provincial Lincolnshire (albeit one with an Oxford degree); there were enough ministers in her Cabinet with Jewish backgrounds to inspire off-colour jokes about “Old Estonians”.

QotD: The Progressive vision

Filed under: Bureaucracy, Government, Politics, Quotations — Tags: , — Nicholas @ 01:00

The champions of socialism call themselves progressives, but they recommend a system which is characterized by rigid observance of routine and by a resistance to every kind of improvement. They call themselves liberals, but they are intent upon abolishing liberty. They call themselves democrats, but they yearn for dictatorship. They call themselves revolutionaries, but they want to make the government omnipotent. They promise the blessings of the Garden of Eden, but they plan to transform the world into a gigantic post office. Every man but one a subordinate clerk in a bureau. What an alluring utopia! What a noble cause to fight!

Ludwig von Mises, Bureaucracy, 1944.

October 11, 2017

The Great Recession

Filed under: Economics, Government, USA — Tags: , , , , — Nicholas @ 04:00

Marginal Revolution University
Published on 9 Aug 2016

There’s already been much discussion over what fueled the Great Recession of 2008. In this video, Tyler Cowen focuses on a central theme of the crisis: the failure of financial intermediaries.

By 2008, the economy was in a very fragile state, with both homeowners and banks taking on greater leverage, many ending up “underwater.” Why did managers at financial institutions take on greater and greater risk? We’ll discuss a couple of key reasons, including the role of excess confidence and incentives.

In addition to homeowners’ leverage and bank leverage, a third factor played a major role in tipping the scale toward crisis: securitization. Mortgage securities during this time were very hard to value, riskier than advertised, and filled to the brim with high risk loans. Cowen discusses several reasons this happened, including downright fraud, failure of credit rating agencies, and overconfidence in the American housing market.

Finally, a fourth factor joins homeowners’ leverage, bank leverage, and securitization to inch the economy closer to the edge: the shadow banking system. On the whole, the shadow banking system is made up of investment banks and various other complex financial intermediaries, highly dependent on short term loans.

When housing prices started to fall in 2007, it was the final nudge that pushed the economy over the cliff. There was a run on the shadow banking system. Financial intermediaries came crashing down. We faced a credit crunch, and many businesses stopped growing. Layoffs ensued, increasing unemployment.

What could have been done to prevent all of this? You’ll have to watch the video to find out.

October 10, 2017

India’s bold experiment … is an economic failure

Filed under: Economics, Government, India — Tags: , , — Nicholas @ 05:00

Back in December, I linked to an article by Shikha Dalmia, discussing the rhetoric and (likely) reality of India’s currency experiment. Now, Lawrence White rounds up the damage done:

The debate over demonetization was revived this month (September 2017) after the Reserve Bank of India finally announced the count of returned currency. It announced that 99 percent of the discontinued notes, Rs 15.28 trillion out of Rs 15.44 trillion, had been returned. As Vivek Kaul has noted, “The conventional explanation for this is that most people who had black money found other people, who did not have black money, to deposit their savings into the banking system for them.”

The trivial size of unreturned currency, of course, obliterates BDK’s [Bhagwati, Dehejia, and Krishna’s] projection of a government seigniorage windfall.

What about BDK’s other projected source of revenue, the 50% tax on acknowledged black deposits? Whereas in BDK’s scenario, black currency holders would make Rs2 trillion in voluntary-disclosure deposits, which would yield Rs 1 trillion in revenue, the actual collections under the scheme were reported in April at Rs 23 billion, or 2.3% of the BDK-imagined sum. Such paltry revenues mean that demonetization, from the fiscal perspective, was all pain and no gain.

The accumulating evidence on economic growth, meanwhile, has become damning. Between July and September 2016, India’s GDP grew 7.53 percent. Between January and March 2017 it grew 5.72 percent. Former head of the Reserve Bank of India Raghuram Rajan, now returned to the University of Chicago, links the drop to demonetization: “Let us not mince words about it — GDP has suffered. The estimates I have seen range from 1 to 2 percentage points, and that’s a lot of money — over Rs2 lakh crore [i.e. trillion] and maybe approaching Rs2.5 lakh crore.” Kaul adds that GDP does not well capture the size of the informal cash sector, where the losses from demonetization were greatest.

In response to the RBI report and GDP data, and to their credit, BDK have substantially retreated from claims of success to what can be regarded as the claim that there is still a chance to break even.

This is not what unions are supposed to do – getting bad cops back on the job

Filed under: Bureaucracy, Government, Law, USA — Tags: , , — Nicholas @ 03:00

Ed Krayewski explains why it’s so tough to fire a police officer who is proven to be dangerous to the public:

Since 2008, the Philadelphia Police Department has fired more than 150 cops, of whom at least 88 had been arrested and at least 48 were eventually convicted on charges like murder, rape, and extortion. Seventy-one of those officers tried to get their jobs back, and of those 71, at least 44 were successful.

In reviewing 37 of the nation’s largest police departments, including Philadelphia, the Post found that since 2006 at least 451 of about 1,800 fired officers got their jobs back, thanks to provisions in their union contracts. Campaign Zero, an effort of a group of Black Lives Matter activists, tracks union contracts and their content; it finds that such arrangements are guaranteed in some way in virtually each contract they reviewed. That ubiquity makes many efforts at reducing police violence futile. Cities must have the ability to fire cops who are unable to do their jobs without resorting to excessive force.

[…]

Public employees have a right to associate and assemble, of course. But public unions have the power they enjoy today only because of expansive privileges granted to them by government. Labor unions in the private sector must be careful not to make demands that would make their employers fiscally unsustainable. With public-sector unions, by contrast, the government will always be there for a bailout. And no matter how much a service declines in the public sector, the “customers” often have no other place to go. There is no competitive pressure for institutions like police to be responsive to consumer demands. Single-party rule in most major cities offers additional inoculatation from facing consequences for subpar performance.

Bad cops will keep getting rehired as long as public sector unions are among the most powerful forces in government, setting rules that protect public employees at the expense of the people they’re supposed to serve.

QotD: The base conditions for democratic society

Filed under: Government, Law, Liberty, Middle East, Quotations — Tags: , , , — Nicholas @ 01:00

The absolutely vital elements of a successful democratic component of government (note – component of a system, not the entire system): is that there be a literate population; a free and enquiring press; a well developed and just rule of law; and a tradition of give and take being acceptable to the society.

Tribal societies have none of these things. That is why democracies have consistently failed in African countries where tribalism is still the most important element. (In fact politics in some of these places is still largely a competition between which tribal groups served in the imperial militaries, versus which served in the imperial civil services. With very bloody competition between the two.) The fact that illiteracy is rampant; free presses almost non-existent; and the rule of law where judges are not beholden to tribal interests, or simply threats, doesn’t exist: makes democracy impossible to sustain.

Muslim culture has none of these things. A system where a woman’s evidence in court is one third of a man’s – and dhimmitude is recognized even if slavery officially isn’t – is unlikely to have these things. And for literacy, free press, or rule of law, see Africa, but doubled.

It is also possible to suggest that without a clear understanding of the logic of natural laws, you can’t have a democracy. The fact that Muslim scholarship specifically rejects natural law on the basis that Allah can cause anything, so there are no ‘natural laws’, means you cannot have these things. The reason the Muslim world lost its scientific supremacy of the 11th and 12th centuries relates specifically to their decision to turn their back on empirical evidence. Without that basic understanding, I do not believe democracy is possible. (In fact that basic approach helps explain why democracy is actually anathema to good Muslims, and why Boko Haram literally means ‘Western education is evil’!)

So the concept that an ‘Arab Spring’ could work in the Middle East is a sad indictment on the Western media and ‘intelligentsia’s’ failed understanding about how democracy works.

In fact the entire deluded Western project of attempting to impose ‘republics’ on tribal societies as part of post-colonialism, is an indictment on the western fantasy that republics are workable, let alone good things.

Let’s face it, no western republic, even in the most educated, literate, and rule of law-abiding parts of the Anglosphere, has survived a first century without a collapse and or bloody civil war. The most ‘successful’ Western republics have included the American (see above), French (see above), Weimar (heard of the popularly elected Adolf Hitler?), Italian (50 governments in 50 years), Greek (how’s that brilliant financial planning going?) and Polish (are they on their 3rd, 4th, or 5th?). Those are the good ones. 90% of all republics ever founded in Europe, South America, Asia, Africa, or the Middle East, have collapsed into dictatorship, civil war, mass murder, or ethnic cleansing, within 20 years of being set up.

And that’s what we thought would work in the Middle East?

Nigel Davies, “The ‘Arab Spring’, 1848, and the 30 Years War/s”, Rethinking History, 2015-09-19.

October 8, 2017

Despite the rhetoric, Trump can’t just “wave goodbye” to Puerto Rico’s debt

Filed under: Government, Politics, USA — Tags: , , , , , — Nicholas @ 05:00

Megan McArdle on the financial plight that Puerto Rico was facing even before the hurricane season began:

… the fact remains that Puerto Rico is not going to be able to pay all of its debts. Prior to the hurricane, the territory had $73 billion in outstanding debt, and a population of 3.4 million people. That’s approximately $21,500 for every man, woman and child on the island – just about enough to buy each of them a brand new Mini Cooper, provided that they don’t insist on the sport package or the heated seats.

Puerto Rico couldn’t afford to buy 3.4 million Mini Coopers before; they certainly can’t now that Maria has washed out so many roads. Even before the hurricane, Puerto Rico’s GDP was around $100 billion, meaning that repaying its debt would consume nearly nine months of everything the island earned. And while there will probably be a brief bump in economic activity as disaster relief funds pour in and the destruction is cleared away, over the long term the hurricane represents a huge setback: businesses destroyed, people killed or injured, funds that could be generating economic growth instead diverted to simply replacing what has been lost.

So whatever President Trump does, or does not do, investors in Puerto Rican bonds are going to have to take a substantial haircut. The problem is, we’re not going to wipe out the debt entirely. And even if we could, it wouldn’t be enough to get Puerto Rico back to economic or fiscal health.

“If it’s that bad,” you may be thinking, “surely we ought to simply wipe out the debt holders? After all, they’re investment professionals. They can afford to take the loss; ordinary Puerto Ricans can’t.” The problem is that most of the folks holding Puerto Rico’s debt aren’t vulture hedge funds sitting on wads of ill-gotten gains; the overwhelming majority of the debt is held by ordinary folks who buy bonds or bond funds. Like, say, your parents. Or maybe you. And also, a lot of Puerto Ricans, who would be hit very hard if the value of their investments were wiped out.

How did Puerto Rico get so deeply into debt? Step forward the federal and Puerto Rican governments to take a bow:

The operations of the Puerto Rico Electric Power Authority, for example, defy belief: It essentially gave unlimited free power to municipalities and government-owned entities, which used it to do things like operate skating rinks in the tropics. Everywhere you look, you see signs of a government struggling to perform basic tasks: collect taxes, maintain the infrastructure, improve the health system. In the jargon of development economists, the island lacks “state capacity”: It is simply unable to exert the amount of power over its operations that we on the mainland mostly take for granted.

But you can’t entirely blame the Puerto Rican government for the state of the underlying economy, which is what had plunged the island into a bankruptcy crisis even before the hurricane. For that you have to look to the federal government, which eliminated a tax break that had given companies incentives to locate in Puerto Rico, and then oversaw a financial crisis that sent them into an even deeper spiral. We also made sure that a relatively poor island was forced to adopt the federal minimum wage, which was too high for the local labor market. That has contributed to the 11.5 percent unemployment rate. And Puerto Rico uses the U.S. dollar, leaving it unable to adjust monetary policy to overcome economic stagnation.

October 7, 2017

Why We Should Privatize the Postal Service

Filed under: Bureaucracy, Business, Government, USA — Tags: , , — Nicholas @ 04:00

ReasonTV
Published on 6 Oct 2017

What’s the best way to make the Post Office faster and cheaper? Pull the government’s tendrils out of it and let it loose in the private sector.

October 6, 2017

Regulation and the unregulated sharing economy

Filed under: Australia, Bureaucracy, Business, Government — Tags: , , , — Nicholas @ 03:00

This particular article talks about the situation in Australia, although it’s quite similar here in Canada:

Living in Australia sometimes feels like living in a bureaucrats’ version of a spaghetti western. The heroes are the brave and all-knowing public servants, while the villains are the naughty people who are too foolish to realise that government knows best.

Politicians and bureaucrats alike want to regulate first, ask questions later. It seems barely a week passes without someone trumpeting the expansion of the nanny state. And with each new crackdown, ban or tax, our freedom gets that little bit smaller.

Whereas once the government would at least go through the motions of citing things like market failure, all it takes now is for a politician to want to look tough or be seen ‘doing something’. So it is with the proposed regulation of short-term accommodation platforms like Airbnb and Stayz.

Sharing our home with someone is as old as time. Who has not stayed with a family member or friend, or the friend of a friend? The difference these days is that it is much easier. Technology allows us to stay in someone’s home nearly anywhere in the world.

The immense popularity of these platforms is simply staggering. Globally, Airbnb has just passed four million listings, more than the rooms of the top five hotel brands worldwide. Australia is particularly fertile ground for the company, with almost one in five adults having an account. The company claims Airbnb is the “most penetrated market in the world”.

For government, the platforms are confronting. With no red tape or government involvement, travellers are protected, bad apples ejected and quality maintained via hosts and guests providing reviews of each other using sophisticated technology and a trusted online marketplace. Airbnb says that, on average, a host could have a new reservation every day for over 27 years before experiencing a single bad incident. A track record like that would be the envy of any pub, hotel, motel or caravan park in the country.

The so-called sharing economy challenges the idea that people need red tape, regulations or government to keep them safe from harm. But that does not stop some from trying. Currently, the NSW Government is toying with a grab bag of Big Brother and nanny-state policies ranging from new taxes and caps, to licences, planning approval and complete bans.

No modern government has ever seen a healthy, flourishing market without feeling the need to insert itself into the process, usually justified by the need to “protect” consumers.

October 5, 2017

Out of Frame: The Real Life Wilson Fisk

Filed under: Government, History, Liberty, Media, USA — Tags: , , , , — Nicholas @ 12:00

Foundation for Economic Education
Published on 5 Oct 2017

Wilson Fisk is one of the most terrifying villains in the Marvel universe. Good thing he’s just fictional, right? Wrong!

In this episode of Out of Frame, we explore the real-life Wilson Fisk, a central planner from America’s not so distant past.

Learn more about Robert Moses and his greatest nemesis, Jane Jacobs at FEE: https://fee.org/articles/jane-jacobs/

September 26, 2017

When virtue signalling is more important than tens of thousands of jobs

Filed under: Britain, Business, Government — Tags: , , , , , , — Nicholas @ 05:00

In Spiked, Brendan O’Neill slams the (mostly left-leaning) critics of Uber for their blatant two-faced attitudes:

The satire writes itself these days. For the past 16 months, ever since voters said No to the EU, the supposed liberal set has been signalling its virtue over migrant workers. These Remainer types have filled newspaper columns and dinner-party chatter with sad talk about foreigners losing the right to travel to and work in Britain. Yet now these same people have chortled as London mayor Sadiq Khan and his pen-pushers at Transport for London (TfL) have refused to renew Uber’s licence in the capital. Which means 30,000 people will lose work. Many of them migrants. They cry over migrant workers one day, and laugh as they lose their livelihoods the next.
Anyone would think their overriding concern is less with migrants’ right to work than with their own insatiable need to engage in political posturing. And right now, when it’s trendy to be anti-capitalist, to sneer at Silicon Valley fat-cats who make apps that employ people in far from ideal conditions, the posture that guarantees one’s spot in liberal circles is to be Uberphobic. Sticking it to Uber, making a spectacle of one’s haughty disdain for the vagaries of life in 21st-century capitalist society, takes precedence over concern for workers themselves. Welcome to 2017, where it’s cool to be anti-capitalist but not pro-worker.

[…]

One of the ugliest sentiments behind Uberphobia is the idea that this service is a threat to the public, especially women. Darkly, the new left is at one with the anti-migrant hard right on this question: both have cheered Uber’s licence loss on the basis that women of London must be protected from unregulated drivers. Let’s get this into perspective. Last year it was revealed that between February 2015 and February 2016 there were 32 allegations of sexual assault against Uber drivers in London. There were a total of 154 allegations against all taxi and car firms, meaning Uber made up a minority of complaints. What’s more, there are millions of Uber journeys in London every year, so the chances of assault are minuscule. It’s the same in the US. There was scandal when it was revealed that Uber had received complaints from women who said they had been raped by drivers. It received five complaints between 2012 and 2015, which means 0.0000009% of car journeys involved an alleged act of rape. Uber is very safe indeed.

It is hard to avoid the conclusion that, from both leftish feminists and the hard right, the panic about Uber is driven partly by fear of unregulated foreign men driving around our cities. The state must regulate, they say — and they mean it must regulate both business and foreigners, both fat cats and untrustworthy outsiders, both moneymen and migrants. Cheering as migrant workers lose their work and being complicit in the depiction of migrant drivers as a rapacious threat: sections of the liberal-left have really exposed their prejudices through their posturing against Uber. The tragedy of Uberphobia is that it confirms that even anti-capitalism is now virtue-signalling. It is no longer a serious call to improve working people’s lives; it is just the fleeting thrill of shouting ‘Down with Uber!’ without ever letting the issue of its drivers’ livelihoods cross your pristine, virtuous mind.

September 25, 2017

London’s foolish Uber ban

Filed under: Britain, Business, Government — Tags: , , , — Nicholas @ 03:00

Iain Murray on the decision by London bureaucrats (backed by the Lord Mayor) to ban Uber in favour of established cab companies:

When I lived in London in the 1990s, I had to use pricey Black Cabs to get around the city at night. However, heaven help you if you wanted to go South of the Thames (as I did when I lived there) after midnight – Black Cabs would just refuse to take you. On one occasion I watched in horror as the cab driver got out and literally started a fight with a driver who had cut him off – and he kept the meter running throughout the fracas.

London’s days of high prices, uncertainty, and danger ended when Uber started operating there in 2012. It went on to dominate the London private hire car market. Today, that was all thrown out as Transport for London (TfL), an Uber competitor in that it runs the Tube and franchises bus services, revoked Uber’s license to operate.

Safety First?

The decision was ostensibly based on health and safety grounds. TfL said:

“TfL considers that Uber’s approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications. These include:

  • Its approach to reporting serious criminal offences.
  • Its approach to how medical certificates are obtained.
  • Its approach to how Enhanced Disclosure and Barring Service (DBS) checks are obtained.
  • Its approach to explaining the use of Greyball in London – software that could be used to block regulatory bodies from gaining full access to the app and prevent officials from undertaking regulatory or law enforcement duties.”

These grounds are puzzling. Uber has a dedicated team responsible for working with the police regarding incidents with cars that use the Uber app – something London’s Black Cabs lack. Uber’s drivers go through exactly the same background checks and approval processes that Black Cab drivers do. And Uber denies that the Greyball feature has ever been used in London.

Moreover, accusations of violence, especially sexual violence, by Uber app drivers are overblown. As Reuters reports, “Of the 154 allegations of rape or sexual assault made to police in London between February 2015 and February 2016 in which the suspect was a taxi driver, 32 concerned Uber, according to the capital’s police force.” If Uber was uniquely bad in having drivers who attempted sexual assaults, that share should be much higher.

On Saturday night, Perry de Havilland reported on the petition to rescind the TfL decision:

The #SaveYourUber petition has, as of 10:45 pm in London, attracted 600,000+ names, and one of them is mine.

Of course the best way to save Uber is to get rid of Sadiq Khan and make the issue politically radioactive.

September 24, 2017

Rolling back the regulation tide

Filed under: Bureaucracy, Business, Government, USA — Tags: , , — Nicholas @ 03:00

Megan McArdle on the Trump administration’s attempt to rein-in the regulation machine of the US federal government and its many, many agencies:

One of the first things Trump did as president was to sign an executive order requiring that two regulations be rolled back for every new one that was promulgated. As a longtime advocate of rolling back regulatory complexity, I found a lot to like in this rule. Unless strenuous effort is made to regularly prune them back, regulations have a tendency to blindly grow until they have wrapped the economy so tight that nothing can breathe, much less thrive. Trump’s executive order forces us to do some very necessary maintenance.

Unfortunately, it’s a rather crude instrument for the job. It’s possible that nothing more nuanced would actually work; nuance and flexibility, alas, give regulators quite a bit of discretion to put off an annoying chore. Just the same, we should recognize the dangers of cutting with such a dull knife.

In agencies that are dealing with a genuinely new and disruptive force — one for which innovators need regulatory clarity before they can bring a product to market — such a strict regulatory requirement faces them with an unpalatable dilemma. Every new regulation that is vitally necessary means finding two regulations that aren’t. But each of those dusty old rules was created for a reason. Some of those reasons were bad; in some cases the rule never worked as intended; and in others the rule later became obsolete. But that does not describe all of our regulations. And imagine the brutal publicity that will ensue if someone dies or gets hurt in an accident that could plausibly have been prevented by a rescinded rule.

An even larger problem is that the “two for one” rule doesn’t really tell us about the relative quality of the regulations involved. An agency could satisfy that executive order by issuing a terrible, stupid, costly regulation that forced power companies to rip out their windmills, as long as it repealed two sensible and necessary regulations that (for now) prevent factories from dumping toxic waste into our watersheds.

Reducing regulatory complexity is an important goal, but it cannot be our only goal. We ought to strive for less regulation, yes, but also for good regulation, and for regulation that gives companies enough clarity to innovate and build their businesses. Unfortunately, while the Trump administration has proven enthusiastic about the first goal, we’ve seen much less talk about the others. And given how long it has taken for Trump to staff all the agencies he oversees, we haven’t really had the personnel to deliver on things like better regulation, even if doing so were the Trump administration’s main priority.

September 21, 2017

“Once Obama and his allies launched their domestic surveillance operation, they crossed the Rubicon”

Filed under: Government, Law, Politics, USA — Tags: , , , , — Nicholas @ 05:00

Daniel Greenfield explains why the recent news on wiretapping Trump associates might yet bring about a Watergate for the 21st century, only with Obama team members in the defendant roles:

Last week, CNN revealed (and excused) one phase of the Obama spying operation on Trump. After lying about it on MSNBC, Susan Rice admitted unmasking the identities of Trump officials to Congress.

Rice was unmasking the names of Trump officials a month before leaving office. The targets may have included her own successor, General Flynn, who was forced out of office using leaked surveillance.

While Rice’s targets weren’t named, the CNN story listed a meeting with Flynn, Bannon and Kushner.

Bannon was Trump’s former campaign chief executive and a senior adviser. Kushner is a senior adviser. Those are exactly the people you spy on to get an insight into what your political opponents plan to do.

Now the latest CNN spin piece informs us that secret FISA orders were used to spy on the conversations of Trump’s former campaign chairman, Paul Manafort. The surveillance was discontinued for lack of evidence and then renewed under a new warrant. This is part of a pattern of FISA abuses by Obama Inc. which never allowed minor matters like lack of evidence to dissuade them from new FISA requests.

Desperate Obama cronies had figured out that they could bypass many of the limitations on the conventional investigations of their political opponents by ‘laundering’ them through national security.

If any of Trump’s people were talking to non-Americans, the Foreign Intelligence Surveillance Act (FISA) could be used to spy on them. And then the redacted names of the Americans could be unmasked by Susan Rice, Samantha Power and other Obama allies. It was a technically legal Watergate.

If both CNN stories hold up, then Obama Inc. had spied on two Trump campaign leaders.

Furthermore the Obama espionage operation closely tracked Trump’s political progress. The first FISA request targeting Trump happened the month after he received the GOP nomination. The second one came through in October: the traditional month of political surprises meant to upend an election.

The spying ramped up after Trump’s win when the results could no longer be used to engineer a Hillary victory, but would instead have to be used to cripple and bring down President Trump. Headed out the door, Rice was still unmasking the names of Trump’s people while Obama was making it easier to pass around raw eavesdropped data to other agencies.

No matter how bad the information gets, I doubt that Trump will go after Obama personally — ex-Presidents have an unwritten constitutional privilege that way, I understand — but some of his former cabinet and sub-cabinet officers might well be sacrificed to minimize long-term damage to the Obama administration’s various legacies.

On the other hand, CNN hasn’t been having a lot of luck with their big breaking stories lately … this might be another one of those “lots of smoke, but no fire” situations. Democrats facing tough races in 2018 will be hoping that there’s no “smoking gun” there as far as criminal prosecutions are concerned.

September 20, 2017

QotD: Government meddling stifles innovation in energy

Filed under: Government, Quotations, Technology, USA — Tags: , , , — Nicholas @ 01:00

It is unfortunately the case that government meddling on a global scale has massively distorted energy markets through pervasive subsidies, mandates, and price controls. The result is retarded innovation in the technologies of energy generation. A big first step toward renovating our energy supply systems would be to eliminate those impediments to understanding the real comparative benefits and costs of the production and use of energy. Ultimately, the better and far more effective way to ameliorate and avert future climate change is to mobilize human ingenuity through market processes to drive down the costs of no-carbon energy sources. Despite the constraints on innovation caused by government interference, notable advances in no-carbon energy generation technologies have already been made, ranging from innovative nuclear reactor designs to more efficient and cheaper solar panels. New technologies and wealth produced by human creativity will spark a vast environmental renewal in this century.

Ronald Bailey, The End of Doom: Environmental Renewal in the Twenty-first Century, 2015.

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