Quotulatiousness

June 1, 2024

From Sic semper tyrannis to the “Non-Aggression Principle”

Filed under: Britain, Cancon, Government, History, Liberty, USA — Tags: , , , — Nicholas @ 04:00

On Substack Notes, kulak points out that the beliefs that led to the American colonists taking up arms against King George’s government don’t expire:

A statue idealizing the individual minutemen who would compose the militia of the United States.
Postcard image of French’s Concord Minuteman statue via Wikimedia Commons.

One of the things that drives me nuts about people who claim to subscribe to modern libertarianism (as opposed to the American Revolutionary ideology) is the claim to be “peaceful” and “antiwar”

Libertarianism isn’t antiwar. The American founding values aren’t antiwar. They never have been. It is a permanent declaration of war.

Live Free or Die

Sic Semper Tyrannis.

“Thus always to tyrants”

When does “always” end? NEVER

If those values succeed then 10,000 years from after your descendants have forgotten the name of America itself, they will be killing tyrants and carving their hearts from their chest.

Libertarianism is not “peaceful” it is a declaration that no peace shall ever exist again. That a free people will never have peace with any who’d seek to rule them. Eternal civil war against all would-be tyrants from the pettiest to the most grandiose.

The “non-aggression principle” does not state that the libertarian my never aggress against another … It states only that he may not aggress FIRST, afterwards any and all aggression, even the most disproportionate, is permitted.

“Taxation is Theft” is the claim that a tax collector or government agent paid out of taxes has the same moral status as burglar/home invader caught in your child’s bedroom. It is the claim that that those who benefit and enable the welfare programs paid out of your taxes have the same moral protection from your wrath should you gain the upper hand as a mugger actively threatening you with a gun lest you hand over your wallet.

“Taxation is Theft” necessarily justifies just as revolutionary and total a upset in the political order as “Property is Theft” did … because theft inherently is a violation of your extended person to be resisted without restriction. And just as the Communist claim of “property is theft” justified the most total and brutal wars in human history to destroy the social order (and social classes) who made “property” possible. Libertarianism and “Taxation is Theft” must necessarily justify just as extreme a charnel house to render “Taxation” impossible.

“Live Free or Die” is necessarily, and has always been a declaration of war upon those who would choose not to “live free”, or remain loyal to a tyrant or master.

The founding fathers didn’t make nice with the Loyalists who remained faithful the crown: They ethnically cleansed large portions of them equal to 4% the US population (notably the Loyalist Dutch of New York), confiscated their lands, and drove them into Canada, several mothers with babes nearly starving. Then they invaded them again in 1812. (Read Tigre Dunlop’s interviews with the survivors in Canada in “Recollections on the War of 1812”).

What Loyalists who managed to remain in the US did not regain full rights as citizens until after the war of 1812, almost 40 years after the revolution.

So if you claimed to believe in “Libertarianism” or the American Revolution, ask yourself: “Do I really believe in Liberty and the American Revolution? Or am I a just a flavor of Progressive Democrat who thinks the income tax should be slightly lower?”

Signed,
A Canadian Descended from Loyalists

May 21, 2024

Idi Amin would have loved MMT

Filed under: Africa, Economics, History — Tags: , , , , , , — Nicholas @ 05:00

Jon Miltimore talks about the economic disaster of Idi Amin’s Uganda after Amin and his predecessor decided to nationalize most big businesses in the country and then to print money to cover the government shortfalls in revenue that resulted:

Ugandan dictator Idi Amin at the United Nations, October 1975.
Detail of a photo by Bernard Gotfryd via Wikimedia Commons.

Idi Amin (1923-2003) was one of the most ruthless and oppressive dictators of the 20th Century.

Many will remember Amin from the 2006 movie The Last King of Scotland, a historical drama that netted Forest Whitaker an Academy Award for Best Actor for his depiction of the Ugandan president.

While Western media often mocked Amin, who ruled Uganda from 1971 to 1979, as a self-aggrandizing buffoon, they tended to overlook the atrocities he inflicted on his people. He murdered an estimated 300,000 Ugandans, many of them in brutal fashion. One such victim is believed to be Amin’s fourth wife, Kay, whose body was found decapitated and dismembered in a car trunk in 1974, shortly after the couple divorced.

While historians and journalists have tended to focus on Amin’s dismal record on human rights, his economic policies are atrocities in their own right and also deserve attention.

A Brief History of Uganda

Uganda, a landlocked country in the eastern part of Central Africa, received its independence from the United Kingdom on Oct. 9, 1962 (though Queen Elizabeth remained the official head of state). The nation’s earliest years were turbulent.

Uganda was ruled by Dr. Apollo Milton Obote — first as prime minister and then as president — until January 1971, when an upstart general who had served in the British Colonial Army, Idi Amin Dada Oumee, seized control and set himself up as a dictator. (The coup was launched before Amin, a lavish spender, could be arrested for misappropriation of army funds.)

Among Amin’s first moves as dictator was to complete the nationalization of businesses that had begun under his predecessor Obote, who had announced an order allowing the state to assume a 60 percent stake in the nation’s top industries and banks. Obote’s announcement, The New York Times reported at the time, had resulted in a surge of capital flight and “brought new investment to a virtual stand still”. But instead of reversing the order, Amin cemented and expanded it, announcing he was taking a 49 percent stake in 11 additional companies.

Amin was just getting started, however. The following year he issued an order expelling some 50,000 Indians with British passports from the country, which had a devastating economic impact on the country.

“‘These Ugandan ‘Asians’ were entrepreneurial, talented and hard-working people, skilled in business, and they formed the backbone of the economy,” Madsen Pirie, President of the UK’s Adam Smith Institute, wrote in an article on Amin’s expulsion order. “However, Idi Amin favoured people from his own ethnic background, and arbitrarily expelled them anyway, giving their property and businesses to his cronies, who promptly ran them into the ground through incompetence and mismanagement.”

Even as he was nationalizing private industry and expelling Ugandan Asians, Amin was busy rapidly expanding the country’s public sector.

The Ugandan economy was soon in shambles. Amin’s financial advisors were naturally frightened to share this news with Amin, but in his book Talk of the Devil: Encounters With Seven Dictators, journalist Riccardo Orizio says one finance minister did just that, informing Amin “the government coffers were empty”.

The response from Amin is telling.

“Why [do] you ministers always come nagging to President Amin?” he said. “You are stupid. If we have no money, the solution is very simple: you should print more money.”

October 17, 2022

QotD: Julius Nyerere

Filed under: Africa, History, Politics, Quotations — Tags: , , , , , — Nicholas @ 01:00

When I worked for three years in the 1980s in the East African country of Tanzania, I was outraged by the quite unnecessary state of impoverishment and pauperism to which the policies of the long-time president, Julius K. Nyerere, had reduced the population. These policies – collectivisation of agriculture, destruction of commercial farming and the elimination of incentives for peasants to produce anything, one-party political control over every detail of daily life – were so obviously counterproductive of Nyerere’s repeatedly stated aim to develop his country economically and lift it from its poverty that I long concluded that he must be some kind of fool or intellectual incompetent. But it was I who was the fool.

One day, the not very difficult thought occurred to me that Nyerere’s stated aim was not the real aim, that the aim of his policies was not the economic development of the country or anything like it, but rather the maintenance of himself and his cronies in power. Once I made this simple assumption, I could see what should have been obvious to me from the first: that far from being a miserable failure, Nyerere was a brilliant and outstanding success. Not only had he maintained himself in power for more than twenty years with very little challenge, apart from an early attempt at a coup by the army, but he had successfully managed to present himself to the world as a man of outstanding principle: indeed, there are even now moves afoot by the Catholic Church, to which he was more attached even than he was to Kim Il Sung, to canonise him, notwithstanding his imprisonment of political opponents and his forced removal of the peasantry from where it was living into collectivised villages. One of his miracles was to have extracted huge sums of aid money from the willing dupes of Scandinavia and elsewhere, which disappeared in Tanzania as water through sand but was so essential to him in the maintenance of his power.

If the aim of politicians is the attainment of power, Nyerere was one of the most successful politicians of the twentieth century, and very far from the fool or incompetent that I had thought him.

Theodore Dalrymple, “Brexit Doesn’t Mean Brexit”, Law & Liberty, 2019-04-15.

July 23, 2022

Some of the events that lead to the Dutch farmers’ revolt

Filed under: Environment, Europe, Government, Politics — Tags: , , , , , — Nicholas @ 03:00

In UnHerd, Senay Boztas provides a useful chronology of how the Netherlands government managed to piss off so many Dutch farmers, leading to the protests we are still seeing (even if the legacy media is doing their best to ignore it):

“For many farmers it’s the end of their business and they will fight until the last. Sometimes these farms go back generations, they were built by hand, and people feel farmers heart and soul. This is all being taken away.”

Jan Brok, vice chairman of the BoerBurgerBeweging (BBB) party, understands why Netherlands farmers have spent the past month blockading food distribution centres, roads and ministers’ driveways. They are horrified by a new environmental policy that will mean a likely 30% reduction in livestock.

The Netherlands is a country of four million cattle, 13 million pigs, 104 million chickens, and just over 17 million people. It is Europe’s biggest meat exporter with a total area of just over 41,000 square kilometres, and a fifth of this is water. It is one of the world’s most densely populated countries, with the EU’s highest density of livestock.

But there is a significant cost to this abundance: the local environmental impact. Such intensive agriculture, and livestock farming in particular, creates harmful pollution. Manure and urine mix to produce ammonia, and together with run-off from nitrogen-rich fertiliser on fields ends up in lakes and streams, where it can promote excessive algae that smothers other life. Manure here is not a vital fertiliser but a problem waste product.

For decades, this success in trade and agriculture has been accompanied by high emissions of harmful nitrogen compounds, including nitrogen oxides emitted by industry and transport. Levels were dropping, and in 2015, the Dutch introduced a “trading scheme” known as the Programmatische Aanpak Stikstof (PAS) to try to reduce the pollution.

But a Council of State court ruling in 2019 — on a case brought by two local environmental organisations against various farms — ruled that this offsetting scheme was invalid. Permission could not be granted for polluting projects or farm expansion in exchange for promised nitrogen-related reductions in the future: the reductions needed to come first.

The government panicked: national shutdowns were put in place, building projects were put on hold and traffic speeds reduced to 100 kph in the daytime on major roads; it was also obvious that farming was a problem — something needed to be done about all ammonia, nitrogen oxide and nitrous oxide emissions.

Then, in January, the conservative-liberal-Christian coalition pledged to halve nitrogen production by 2030, with a €25 billion budget to back it up. That money was the loud part. The quiet part included the possibility of expropriation, of the government forcibly purchasing farmland. Plans drawn up by civil servants include slashing livestock numbers by 30%. More than €500 million is being brought forward for regional government to buy out farmers this year and next.

Leading the charge among the coalition partners are the Democrats 66 (D66) party. They insisted on “real action for the climate” in their last manifesto. Tjeerd de Groot, the D66 nature and farming spokesman, pointed out that the Netherlands is Europe’s biggest nitrogen emitter, followed by Belgium and Germany. He told a current affairs programme last week: “It is absolutely essential — but also painful — that the plans go through.”

In June, the government published two documents. One: a map showing the areas that need to reduce emissions by between 12% and 95%. The second was a statement that aimed to help farmers — which De Groot admits failed spectacularly. Farmers saw ruin, not a pair of documents. They looked at the percentage reduction figures next to their farms, and began interpreting how many cattle they would need to cull. It was an enormous blow. Many of them had made huge, expensive investments in new equipment to reduce the environmental impact of their herds.

Hence the massive uprising.

March 1, 2018

South Africa to amend constitution to allow land expropriation without compensation

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

The South African parliament has voted overwhelmingly to change the nation’s constitution to allow the government to expropriate land without compensation:

The motion was brought by Julius Malema, leader of the radical Marxist opposition party the Economic Freedom Fighters, and passed overwhelmingly by 241 votes to 83 against. The only parties who did not support the motion were the Democratic Alliance, Freedom Front Plus, Cope and the African Christian Democratic Party.

It was amended but supported by the ruling African National Congress and new president Cyril Ramaphosa, who made land expropriation a key pillar of his policy platform after taking over from ousted PM Jacob Zuma earlier this month.

“The time for reconciliation is over. Now is the time for justice,” Malema was quoted by News24 as telling parliament. “We must ensure that we restore the dignity of our people without compensating the criminals who stole our land.”

According to Bloomberg, a 2017 government audit found white people owned 72 per cent of farmland in South Africa.

ANC deputy chief whip Dorries Eunice Dlakude said the party “recognises that the current policy instruments, including the willing-buyer willing-seller policy and other provisions of Section 25 of the Constitution may be hindering effective land reform”.

ANC rural affairs minister Gugile Nkwinti added: “The ANC unequivocally supports the principle of land expropriation without compensation. There is no doubt about it, land shall be expropriated without compensation.”

Thandeka Mbabama from the Democatic Alliance party, which opposed the motion, said there was a need to right the wrongs of the past but expropriation “cannot be part of the solution”.

“By arguing for expropriation without compensation, the ANC has been gifted the perfect scapegoat to explain away its own failure,” she said in a statement.

“Making this argument lets the ANC off the hook on the real impediments — corruption, bad policy and chronic underfunding. Expropriation without compensation would severely undermine the national economy, only hurting poor black people even further.”

Samizdata‘s Johnathan Pearce comments on the move:

The unfolding of South Africa’s history is a tragedy, and it is easy to see why there is an element of “score-settling” at work here. Apartheid, let it not be forgotten, was introduced in the late 1940s at the behest to some degree of the white trade union movement, keen to bolster its bargaining power. Even if you were a private entrepreneur who wanted to hire non-whites for certain jobs, for example, you couldn’t. (Minimum wage laws operated in ways that hurt, not helped, non-whites.) The system was as absurd and vile as the Jim Crow laws of the US, or other examples of serfdom and oppression down the ages. It had to go; for anyone who supports a free market economy, apartheid and its cousins are absurd as well as wrong.

But the solution of seizing white-owned land, regardless of the honesty or provenance of it, and giving it to people via a political carve-up, turns the injustices inherited from the old regime on their head, creating a new form of racism. Two wrongs do not make a right. And further, one suspects that the land seizures are an attempt to deflect attention from the failings of the existing regime. Compare and contrast how, for example, the “Asian tigers” threw off their old colonial masters and focused on getting seriously rich, not least by respecting property rights. And wherever one looks, there does seem a pretty tight correlation between respect for property rights – indeed their very existence – with prosperity and happiness more broadly. Hernando de Soto has made something of a career pushing the point that the world needs more property rights, spread among more people. (Check out this recent lecture by Niall Ferguson on the same sort of issue.)

August 4, 2017

Short memories and willing self-deception over Venezuela

Filed under: Americas, Economics, Media, Politics — Tags: , , , , , — Nicholas @ 03:00

In the Los Angeles Times, James Kirchick took the pundits to task for their adulation of Venezuela’s government as it plunged deliberately into a humanitarian disaster:

Shaded relief map of Venezuela, 1993 (via Wikimedia)

On Sunday, Venezuelan President Nicolas Maduro claimed victory in a referendum designed to rewrite the country’s constitution and confer on him dictatorial powers. The sham vote, boycotted by the opposition, was but the latest stage in the “Bolivarian Revolution” launched by Maduro’s predecessor, the late Hugo Chavez. First elected in 1998 on a wave of popular goodwill, Chavez’s legacy is one of utter devastation.

Thanks to Chavismo’s vast social welfare schemes (initially buoyed by high oil prices), cronyism and corruption, a country that once boasted massive budget surpluses is today the world’s most indebted. Contraction in per capita GDP is so severe that “Venezuela’s economic catastrophe dwarfs any in the history of the U.S., Western Europe or the rest of Latin America” according to Ricardo Hausmann, former chief economist of the Inter-American Development Bank. Transparency International lists Venezuela as the only country in the Americas among the world’s 10 most corrupt.

Socialist economic policies — price controls, factory nationalizations, government takeovers of food distribution and the like — have real human costs. Eighty percent of Venezuelan bakeries don’t have flour. Eleven percent of children under 5 are malnourished, infant mortality has increased by 30% and maternal mortality is up 66%. The Maduro regime has met protests against its misrule with violence. More than 100 people have died in anti-government demonstrations and thousands have been arrested. Loyal police officers are rewarded with rolls of toilet paper.

The list of Western leftists who once sang the Venezuelan government’s praises is long, and Naomi Klein figures near the top.

In 2004, she signed a petition headlined, “We would vote for Hugo Chavez.” Three years later, she lauded Venezuela as a place where “citizens had renewed their faith in the power of democracy to improve their lives.” In her 2007 book, The Shock Doctrine, she portrayed capitalism as a sort of global conspiracy that instigates financial crises and exploits poor countries in the wake of natural disasters. But Klein declared that Venezuela had been rendered immune to the “shocks” administered by free market fundamentalists thanks to Chavez’s “21st Century Socialism,” which had created “a zone of relative economic calm and predictability.”

Chavez’s untimely death from cancer in 2013 saw an outpouring of grief from the global left. The caudillo “demonstrated that it is possible to resist the neo-liberal dogma that holds sway over much of humanity,” wrote British journalist Owen Jones. “I mourn a great hero to the majority of his people,” said Oliver Stone, who would go on to replace Chavez with Vladimir Putin as the object of his twisted affection.

March 11, 2017

Catherine the Great – III: Empress Catherine at Last – Extra History

Filed under: History, Russia — Tags: , , , — Nicholas @ 02:00

Published on Feb 11, 2017

When the conspiracy to seat Catherine on the throne of Russia was exposed, she had to move quickly. While Peter III blundered through a day of miscommunications, Catherine swiftly seized power, secured the loyalty of the army, and demanded his abdication.

February 26, 2017

British History’s Biggest Fibs with Lucy Worsley Episode 3: The Jewel in the Crown

Filed under: Britain, History, India — Tags: , , , , , , — Nicholas @ 02:00

Published on 10 Feb 2017

In the final episode, Lucy debunks the fibs that surround the ‘jewel in the crown’ of the British Empire – India. Travelling to Kolkata, she investigates how the Raj was created following a British government coup in 1858. After snatching control from the discredited East India Company, the new regime presented itself as a new kind of caring, sharing imperialism with Queen Victoria as its maternal Empress.

Tyranny, greed and exploitation were to be things of the past. From the ‘black hole of Calcutta’ to the Indian ‘mutiny’, from East India Company governance to crown rule, and from Queen Victoria to Empress of India, Lucy reveals how this chapter of British history is another carefully edited narrative that’s full of fibs.

July 1, 2015

QotD: The CRTC, Canada’s most fascistic government body

Filed under: Bureaucracy, Cancon, Media, Quotations — Tags: , , , , — Nicholas @ 01:00

The CRTC is an even more odious organization. Back in 1920s both the Canadian and American governments declared the broadcast spectrum to be public property. So a technology pioneered and commercialized by the private sector, in both countries, was essentially nationalized by the state. Since it was a new industry it lacked the ability to effectively lobby Washington and Ottawa. The result has been that a large and important sector of our modern economy now lives and dies at the whim of an unelected government agency: The CRTC.

Of all the organs of Canadian government the CRTC has always struck me as the most fascistic. You could rationalize socialize health care, public education and government financed infrastructure as doing useful things in a terribly statist way. The CRTC is at an exercise in make work at best. At worse it’s an attempt to impose indirect censorship on the Canadian people. Beneath the reams of government drafted euphemisms the blunt truth behind the CRTC is that we mere Canadians are not clever enough, not patriotic enough or sufficiently sensible to watch and listen to the right things in the right way.

The existence of the CRTC explains much of the timorousness of Canadian broadcasting. The Americans did away with the Fairness Doctrine in 1987, thereby triggering the explosion in talk radio in the early 1990s. While Canada never had an exact equivalent, the regulations surrounding who could and could not receive or retain a license were sufficiently vague to make such a rule unnecessary. A nod and a wink from the right people at the right time was enough to indicate what type of broadcasting would or would not be acceptable.

The result was an insufferable group think that could no more be defined than challenged. There were unwritten rules of etiquette that forbade serious discussion from talking place on a whole host of issues: Abortion, capital punishment, race relations, linguistic issues and any frank discussions of our socialized health care system. It wasn’t that these discussions didn’t take place in a public forum, the newspapers and magazines were largely unregulated, but broadcasting was the late twentieth century’s pre-eminent mass media. It’s where ordinary people got their news and opinions.

Richard Anderson, “And All Must Have Prizes”, The Gods of the Copybook Headings, 2014-09-24.

March 11, 2015

Venezuela, then and now

Filed under: Americas, Economics, Media — Tags: , , , — Nicholas @ 04:00

Kevin D. Williamson looks to the not-too-distant past to see how Venezuela got into the economic disaster they’re currently facing:

Venezuela had a good run of it for about five minutes there, at least in public-relations terms. When petroleum prices were booming, all it took was a few gallons of heating oil from Hugo Chávez to buy the extravagant praise of House members, with Representative Chaka Fattah (D., Philadelphia) issuing statements praising Venezuela’s state-run oil company “and the Venezuelan people for their benevolence.” Lest anybody feel creeped out by running political errands for a brutal and repressive caudillo, Joseph Kennedy — son of Senator Robert Kennedy — proclaimed that refusing the strongman’s patronage would be “a crime against humanity.” Kennedy was at the time the director of Citizens Energy, which had a contract to help distribute that Venezuelan heating oil — Boss Hugo was a brute, but he understood American politics.

Celebrities came to sit at his feet, with Sean Penn calling him a “champion” of the world’s poor, Oliver Stone celebrating him as “a great hero,” Antonio Banderas citing his seizure of private businesses as a model to be emulated in the rest of the world, Michael Moore praising his use of oil for political purposes, Danny Glover celebrating him as a “champion of democracy.” His successor, Nicolás Maduro, continued in the Chávez vein, and even as basics such as food and toilet paper disappeared the American Left hailed him as a hero, with Jesse Myerson, Rolling Stone’s fashionable uptown communist, calling his economic program “basically terrific.” Some of the more old-fashioned liberals at The New Republic voiced concern about Venezuela’s sham democracy, its unlimited executive authority, political repression, the hunting down of government critics, the stacking of elections and the government’s perpetrating violence inside polling places — but Myerson insisted that Venezuela’s “electoral system’s integrity puts the U.S.’s to abject shame.” Never mind that opposition leaders there are hauled off to military prison after midnight raids.

Vice President Biden, who can always be counted on to cut straight to the heart of any political question, ran into Maduro in Brazil and, noting the potentate’s thick mane, commented: “If I had your hair, I’d be president of the United States.” Tragically for the Sage of Delaware, hair transplants don’t work that way.

That is all going down the memory hole. The Obama administration has announced economic sanctions on Venezuela’s rulers and its intelligence agents, citing the “erosion of human-rights guarantees” – erosion, as though this were something new, as though Hugo Chávez hadn’t been a tyrant back when President Obama’s ally Representative Fattah was carrying his political water all over the eastern seaboard. In the New York Times’ account of Venezuela’s woes and Maduro’s misrule, there is no mention at all of the critical role the American Left played in lending legitimacy to Chavismo, of the so-called liberals and progressives who denounced legitimate protests against Maduro’s brutality as nefarious U.S.-backed coup attempts, who remained — and remain — silent on the regime’s censorship, political repression, torture, and economic incompetence. William Neuman of the Times did find an economist — a leftist economist, he assures us — who went so far as to say that certain aspects of the Chávez program “needed to be revised or even discarded to set the nation’s economy on the right track.”

September 12, 2014

Scottish businesses face a “day of reckoning” after a Yes vote

Filed under: Britain, Business, Politics — Tags: , , , — Nicholas @ 16:04

Usually, when someone is planning to punish their political enemies, they keep quiet about it until the votes are counted. The former deputy leader of the Scottish National Party is pretty forthright about just who is going to be facing punishment if Scotland votes yes:

Former SNP deputy leader Jim Sillars has claimed there will be a “day of reckoning” for major Scottish employers such as Royal Bank of Scotland and Standard Life after a Yes vote.

Speaking from his campaign vehicle the “Margo Mobile”, Mr Sillars insisted that employers are “subverting Scotland’s democratic process” and vowed that oil giant BP would be nationalised in an independent Scotland.

Earlier this week, a number of banks, including Lloyds Banking Group and RBS, said they would look to move their headquarters south of the border in the event of a Yes vote.

Mr Sillars, who earlier this week claimed he and First Minister Alex Salmond had put their long-held personal differences behind them to campaign together for independence, also revealed that he would not retire from politics on 19 September but said he would be “staying in” if Scotland became independent.

He claimed there is talk of a “boycott” of John Lewis, banks to be split up, and new law to force Ryder Cup sponsor Standard Life to explain to unions its reasons for moving outside Scotland.

He said: “This referendum is about power, and when we get a Yes majority, we will use that power for a day of reckoning with BP and the banks.

“The heads of these companies are rich men, in cahoots with a rich English Tory Prime Minister, to keep Scotland’s poor, poorer through lies and distortions. The power they have now to subvert our democracy will come to an end with a Yes.”

If I had any investments in Scotland, I would be calling my broker to review them in the light of this pretty specific set of economic and political goals for an independent Scotland. It won’t be a safe place to invest any kind of retirement savings if Sillars represents more than a fringe of the SNP.

February 1, 2014

Argentina’s economic end-game

Filed under: Americas, Economics — Tags: , , , , , — Nicholas @ 09:19

In Forbes, Ian Vasquez looks at the plight of the Argentine economy:

Argentina’s luck is finally starting to run out. It devalued its currency by 15 percent last week, marking the beginning of a possible economic crisis of the kind Argentina has become known for. Argentina’s problem is that it has followed the logic of populism for more than a decade and President Cristina Kirchner is showing no interest in changing course.

In the 1990s Argentina combined far-reaching but sometimes flawed market-reforms with irresponsible fiscal policies, culminating in its 2002 default on $81 billion in debt — the largest sovereign default in history. The country delinked its currency from the dollar, experienced a severe economic crisis, and initiated its current period of populist politics.

Those policies included price controls on domestic energy, reneging on contracts with foreign companies, export taxes, more pubic sector employment and vastly increased spending. When you don’t pay massive debts, you get temporary breathing room, so growth resumed. High commodity prices and low global interest rates that lifted demand for Argentine exports also helped produce Argentine growth.

But the government’s appetite has consistently grown faster, and, with little ability to borrow abroad, it has turned to other sources of finance. In 2008, Kirchner nationalized private pension funds worth some $30 billion, and has since nationalized an airline and a major oil company. As it drew down reserves, the government turned to printing money to finance itself, falsifying the inflation rate it says is about 11 percent, but which independent analysts put at about 28 percent. Economist Steve Hanke estimates it is much higher at 74 percent

April 21, 2012

Argentina: Canada without the boring politics and grey politicians

Filed under: Americas, Cancon, Economics, Politics — Tags: , , , — Nicholas @ 09:58

Robert Fulford sees lots of similarities between Argentina and Canada, except the one difference that makes all the difference:

In some ways it’s much like Canada, a huge one-time colony with a talented population and endless natural resources — arable land, oil and gas and much else.

Except it is not like Canada. It doesn’t work. And the reason it doesn’t work is that it lacks a reliable, careful government, not subject to sudden bouts of hysteria. Argentina has few of the boring politicians who irritate people like Sid.

Public life in Argentina expresses itself through spasms of showmanship, braggadocio, paranoia and demagoguery. It’s the land of the eternal crisis, where a military coup is never unthinkable.

Argentina’s many economic failures, generation after generation, are self-created, politically induced. In all the world there’s no more obvious example of a nation that has squandered, through flawed governance, the riches provided by nature.

This week Cristina Fernández de Kirchner, President of Argentina, and the widow of the last president, announced she’s grabbing YPF, the country’s biggest energy company, taking it from Spain’s Repsol. Cristina, as she’s usually called in Argentina, thinks she can run YPF better than the Spanish. Of course the Spanish are furious and will sue as well as blacken Argentina’s name wherever possible. What Cristina has announced is a brazen, heedless act, with nothing to recommend it but high-handed nationalist fury.

Yet Cristina believes that when you encounter economic trouble, the best course is to strike out against something foreign. At the moment she’s also making anti-British noises, agitating to annex the Falklands Islands, which Argentina seized in 1982 and had to give back when it lost the war with the U.K. Somehow the Falklands (called the Malvinas in Argentina) are linked with the oil-company seizure as nationalist issues. A T-shirt has appeared on Cristina’s supporters: “The Malvinas are Argentine, so is YPF.”

April 17, 2012

Argentina’s latest economic lesson

Filed under: Americas, Economics — Tags: , , , , , — Nicholas @ 10:50

Jan Boucek explains why Argentina is providing a helpful example to other countries on what not to do in economic policy:

This week, President Cristina Fernandez de Kirchner announced the seizure of Spanish oil company Repsol’s stake in Argentine oil company YPF to give the government 51% control. Spain is outraged and has recalled its ambassador. […]

Ms Fernandez justified her move on the grounds that YPF has failed to invest sufficiently to prevent Argentina from importing ever greater quantities of fuel. The fact that Argentine oil reserves have been dwindling means the sector needs greater and increasingly sophisticated investment to reach more complex structures, just like in the North Sea. Expropriation isn’t going to attract that kind of high-risk investment.

[. . .]

The YPF seizure continues Argentina’s cavalier attitude towards other people’s money shown back in 2008 when Ms Fernandez grabbed some $24 billion of private pension funds and used central bank reserves to meet debt payments. More recently, the country has been in a spat with the IMF over the quality of its statistics. Argentina claims inflation is running at somewhere between 5% and 11% but private independent estimates put the number at somewhere around 25%. The Economist is refusing to publish official Argentine inflation data.

Update: Well, regardless of the state of the economy, President Fernandez de Kirchner has a friend in the White House! President Obama has indicated his support for the Argentinian claim to … the ¿Maldives?

President Obama erred during a speech at the Summit of the Americas in Cartagena, Colombia, when attempting to call the disputed archipelago by its Spanish name.

Instead of saying Malvinas, however, Mr Obama referred to the islands as the Maldives, a group of 26 atolls off that lie off the South coast of India.

The Maldives were a British protectorate from 1887 to 1965 and the site of a UK airbase for nearly 20 years.

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