Quotulatiousness

February 26, 2015

Free trade is for consumers, not producers

Filed under: Britain, Business, Economics, Europe, History — Tags: , , — Nicholas @ 03:00

Matt Ridley gives a potted history of the rise of free trade in the nineteenth century, bringing great benefit to workers and consumers:

… the point about free trade is and always should be that it is good for consumers. “Consumption is the sole end and purpose of all production”, said Adam Smith. The genius of the Corn Law radicals was to turn the debate upside down and give the consumers a voice. Between 1660 and 1846, the British government passed 127 Corn Laws, imposing tariffs as well as rules about the storage, sale, import, export and quality of grain and bread. The justification was much like today’s opposition to TTIP: maintaining our supposedly high standards against foreign, cheapskate corner-cutters.

In 1815, Parliament banned the import of all grain if the price fell below 80 shillings a quarter — to protect landowners. Rioters vandalised the house of Lord Castlereagh and other supporters. David Ricardo wrote a pamphlet against the laws, but in vain. It was not until the 1840s that the railways and the penny post enabled Richard Cobden and John Bright to stir up a successful mass campaign against the laws on behalf of the working class’s right to buy cheap bread from abroad if they wished.

Cobden did not stop there. Elected to parliament but refusing office and honours, this pacifist radical was as responsible as anybody for accelerating global economic growth. He persuaded Gladstone to abolish many tariffs unilaterally, and personally negotiated the first international free trade treaty in 1860, the so-called Cobden-Chevalier treaty with France, which established the unconditional “most-favoured nation” principle, leading to the dismantling of tariffs all over Europe. “Peace will come to earth when the people have more to do with each other and governments less,” he said.

Only when Bismarck began rebuilding tariffs in 1879 did the tide begin to turn, and competitive protectionism slowly throttled free trade, eventually contributing to half a century of war. Britain held out longest, enacting a general tariff only in 1932 under Neville Chamberlain as chancellor. Trade barriers undoubtedly helped precipitate war: they shut the Japanese out of resource markets that they then decided to seize by force instead, while Germany’s Lebensraum argument would have carried less force in a free-trading world.

The argument for free trade is paradoxical and much misunderstood. Free trade benefits consumers because it is the scourge of expensive or monopolistic national suppliers. It benefits both sides: yet it works unilaterally. Your citizens benefit if you let them buy cheap goods from abroad, while foreigners are punished if their government does not reciprocate. This creates more demand for local services and hence more growth and jobs in the importing country.

December 16, 2014

Anton Howes on what caused the industrial revolution

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

In the first post at his new blog, Anton Howes lays out one of the biggest questions about the 19th century:

What caused the Industrial Revolution?

By the term “Industrial Revolution”, the broadly accepted meaning is of (1) innovation-led, (2) sustained and (3) replicable economic growth.

Each of those adjectives are the source of some of the other important questions in the social sciences. Here are some brief summaries of the issues at hand, which I’ll maybe expand upon separately.

(1) Innovation-led

Innovation-led growth distinguishes itself hugely from what we might call ‘Ricardian’ or ‘Malthusian’ economic growth (it’s usually called ‘Smithian’, but that’s a topic for another time). Capital accumulation, population growth, conquest, and education, can all result in initial surges of economic growth. But this is soon brought to a standstill by the brutal reality of diminishing marginal returns, depreciation, and food shortages.

[…]

(2) Sustained

Innovation existed before the Industrial Revolution. Of course it did – you need look no further than the invention of agriculture, writing, bronze, crop rotations, horse collars, windmills, gunpowder, printing presses, paper, and bills of exchange to know that innovations have occurred throughout history before the IR.

The difference is that these were few and far between. Some of them, often grouped together, resulted in Golden Ages, or “Efflorescences” as Jack Goldstone likes to call them. The 1st Century early Roman Empire; the 8th Century Arab World; 12th Century Sung Dynasty China; the 15th Century northern Italian city-states; and 17th Century Dutch Republic are all good examples.

[…]

(3) Replicable

Perhaps most importantly, this miracle quickly spread. First to Belgium, across the Atlantic to the new-born USA, and then to the Dutch Republic still winding down from its own Golden Age, France, Northern Italy, and the multitude of German principalities.

In the last Century it spread to Japan, South Korea, Singapore, Hong Kong, China, Vietnam and Eastern European countries escaping the shadow of Communism.

In this Century it appears to finally be taking root in various African countries. Kenya, Tanzania and Rwanda in particular seem to be leading the way.

The more recent recipients of the IR are experiencing an unprecedented rate of growth, which in itself provides a further miracle in economic history. Britain’s sustained growth only initially manifested itself at less than 1% per year. It took about 100 years for Britain’s first doubling in GDP to occur.

More recent recipients can expect to grow at 7-10% every year, and sometimes even higher. To put that in perspective, growth at 7% per year would result in a doubling of the size of the economy in only 10 years. 10% a year in only 7 years.

October 30, 2014

“Free Trade” deals usually have little to do with actual free trade

Filed under: Americas, Economics, USA — Tags: , , , , , — Nicholas @ 00:02

It’s not exactly a revelation that what politicians call “free trade” agreements are usually tightly constrained, regulated, and micro-managed trade: almost the exact inverse of what a genuine free trade deal would look like. This is primarily because politicians and diplomats have hijacked the original term to describe modern mercantilism. In The Diplomat, Ji Xianbai looks at how so-called free trade negotiations are little more than diplomatic beat-downs of the weaker parties by the stronger:

The classic mercantilism, the one associated with the idea that the precious metals obtained through a favorable balance of foreign trade were essential to a powerful nation, may be historically obsolete. The core of the mercantilist view, namely that self-interested states maximize economic development by optimizing political control to strengthen national power, is very much alive and well. Indeed, the vitality of mercantilism as a state of mind may have infiltrated every corner of the international political economy. If one considers the essence of mercantilism through Robert Gilpin’s definition – the attempt of governments to manipulate economic arrangements in order to maximize their own interests – multiple examples immediately come to mind: Japan’s “economic totalitarianism” system in which the entire society was united in deterring foreign competition in the postwar period, China’s ascendance since 1980s through an export-led development mode underpinned by a deliberately undervalued currency, and Germany’s unprecedented trade surplus accrued from the stringent austerity imposed on its economy to sustain competitiveness in the aftermath of the euro crisis.

Compared to those national triumphs of classic mercantilism, there is a less visible showroom, but one in which mercantilism presents itself over and over again in the form of legal mercantilism. This would be free trade agreements (FTAs), negotiations of which are usually kept in the dark. In bilateral FTA negotiations, legal mercantilist governments endeavor to impose their own (or desirable) trade rules and economic policies on other sovereign countries, usually with the aid of a combination of economic immensity, political hegemony, and asymmetric trade dependence, to create a sort of “international best practice,” favorable trade rules, and legal gains that can be leveraged and multilateralized at a regional and/or global level. The “competitive liberalization” strategy aptly pursued by the U.S. since 2002 is one such legal mercantilist policy, which aims to create another “gold standard” in international trade standard setting to project U.S.-friendly economic policies all over the world. In short, the U.S. expects the trade policies of other nations to follow those of the U.S., in the same way that their currencies used to peg to the U.S. dollar.

The U.S.–Peru FTA (PTPA) marks the very first success of Washington’s attempts to subordinate other countries’ sovereignty to its own national interest by squeezing non-trade-related provisions into a bilateral trade liberalization agreement and overriding foreign national laws. To provide a level playing field for American companies, the PTPA lays out detailed measures that Peru is obliged to take to govern its forest sector. The Forest Annex of the PTPA requires Peru to set up an independent forestry oversight body and even enact new Forestry and Wildlife Laws to legalize key provisions of PTPA. The U.S.–Colombia FTA (CTPA)’s labor provisions represent an “even more blatant assault on another country’s sovereignty.” Meanwhile, Colombia was forced to agree to establish a dedicated labor ministry; endorse legislations outlawing interference in the exercise of labor rights; double the size of its labor inspectorate; and set up a phone hotline and an internet-based system to deal with labor complaints. Examples of similar provisions abound: Don’t forget that the U.S.-Panama FTA has “helped” revamp Panama’s tax policy on behalf of Panamanians.

August 2, 2014

Explaining free market exchange in real-world terms

Filed under: Economics, Liberty — Tags: — Nicholas @ 11:17

A lovely little bit of explanation (that doesn’t require you to already have Econ 101 on your transcript):

“What are you looking at? Oh, Craigslist. My brother uses that all the time. Crazy, he should get a job”

“What does he do”

“Oh, he buys phones and stuff like that, jailbreaks them, then sells them for a lot more. He’ll buy a phone for $150 and sell it for $400.”

“Sounds like he’s doing pretty well”

“I suppose, but he’s always driving all over to buy stuff”

“Ok. How long do you suppose it takes him to pick one up and get home? Hour and a half? How long to jailbreak it? Lets say 30 minutes, although I bet it a lot less if he has the machine or program or whatever you use. You just told me he made $250 bucks on that one phone he sold. Dude, that’s $125/hour! That’s a pretty good income. That’s the how the free market works. People buy stuff they can sell to make money.”

“I sold an old car to Crazy Rays (Crazy Rays is a pick n pull junkyard) for $500. I bet they sold 2-3 grand worth of parts off of it.”

“How much work would it have been for you to part it out and sell the parts yourself?”

“Too much”

“And you’d rather have the $500 than your old beater, right?”

“Damn straight”

“See, that’s the beauty of the free market! Nobody loses!”

“What do you mean”

“Look, they don’t teach this in school anymore, but think about it for a sec. You hear all this crap about evil corporations and price gouging and that kind of shit. In a free market, that’s all crap. Nobody voluntarily makes a deal that’s bad for them. You’d rather have the $500 than your old car. Win. Crazy Rays would rather have your old car than the $500. Win. Who loses?”

“Nobody”

“Who wins?”

“Both of us”

“And that’s why the free market works.”

*clink beers*

July 7, 2014

What is the Canadian government hiding over TPP negotiations? Everything.

Filed under: Cancon, Economics, Government — Tags: , , , , , — Nicholas @ 09:47

Michael Geist on the federal government’s secret dealings on the TPP docket:

The next major agreement on the government’s docket is the Trans Pacific Partnership, a massive proposed trade deal that includes the United States, Australia, Mexico, Malaysia, Singapore, New Zealand, Vietnam, Japan, Peru, and Chile. While other trade talks occupy a prominent place in the government’s promotional plans, the TPP remains largely hidden from view. Indeed, most Canadians would be surprised to learn that Canada is hosting the latest round of TPP negotiations this week in Ottawa.

My weekly technology law column (Toronto Star version, homepage version) argues the secrecy associated with the TPP – the draft text of the treaty has still not been formally released, the precise location of the Ottawa negotiations has not been disclosed, and even the existence of talks was only confirmed after media leaks – suggests that the Canadian government has something to hide when it comes to the TPP.

Since this is the first major TPP negotiation round to be held in Canada, there was an opportunity to build public support for the agreement. Yet instead, the Canadian government approach stands as one of the most secretive in TPP history. Why the secrecy?

The answer may lie in the substance of the proposed agreement, which leaked documents indicate often stands in stark contrast to current Canadian policy. The agricultural provision may attract the lion share of TPP attention, but it is the digital issues that are particularly problematic from a Canadian perspective.

For example, late last month the government announced that new copyright rules associated with Internet providers would take effect starting in 2015. The Canadian system, referred to as a “notice-and-notice” approach, is widely viewed as among the most balanced in the world, providing rights holders with the ability to raise concerns about alleged infringements, while simultaneously safeguarding the privacy and free speech rights of users.

June 10, 2014

The Catholic case against libertarianism

Filed under: Economics, Liberty, Religion — Tags: , , , , — Nicholas @ 08:14

First, let’s talk about the evils of the free market and how God wants to abolish free exchange of goods for our spiritual and moral welfare, shall we?

Something strange happened in Washington last week: A panel of Catholic intellectuals and clergy, led by His Eminence Oscar Andrés Maradiaga, was convened to denounce a political philosophy under the headline “Erroneous Autonomy: The Catholic Case against Libertarianism.” The conference was mainly about free-market economics rather than libertarianism per se, and it was an excellent reminder that the hierarchy of the Church has no special grace to pronounce upon matters of specific economic organization. The best that can be said of the clergy’s corporate approach to economic thinking is that it is intellectually incoherent, which is lucky inasmuch as the depths of its illiteracy become more dramatic and destructive as it approaches coherence.

[…]

The increasingly global and specialized division of labor and the resulting chains of production — i.e., modern capitalism, the unprecedented worldwide project of voluntary human cooperation that is the unique defining feature of our time — is what cut the global poverty rate in half in 20 years. It was not Buddhist mindfulness or Catholic homilies that did that. In the 200,000-year history of Homo sapiens, neither of those great religious traditions, nor anything else that human beings ever came up with, made a dent in the poverty rate. Capitalism did. One of the great ironies of our times is that so many of the descendents of the old Catholic immigrant working class have found themselves attracted to an American Buddhism that, with its love of ornate titles, its costumes, its fascination with apostolic succession, and its increasingly coddled professional clergy, is a 21st-century expression of Buddhism apparently committed to transforming itself — plus ça change! — into 15th-century Catholicism. Perhaps it should not be entirely surprising that it has embraced the same intellectual errors.

Cardinal Rodríguez Maradiaga and likeminded thinkers, stuck as they are in the hopelessly 19th-century distributist model of economic analysis, apparently are incapable of thinking through the implications of their own dogma. The question of how certain goods are “distributed” in society is a second-order question at best; by definition prior to it is the question of whether there is anything to distribute. To put it in Christian terms, all of the great givers in Scripture — the Good Samaritan, the widow with her mite, Joseph of Arimathea — had something to give. If the Good Samaritan had been the Poor Samaritan, with no resources to dedicate to the stranger’s care, then the poor waylaid traveler would have been out of luck. All the good intentions that we may muster are not half so useful to a hungry person as a loaf of bread.

Those who put distribution at the top of their list of priorities both make the error of assuming the existence of some exogenous agency that oversees distribution (that being the Distribution Fairy) and entirely ignore the vital question of what gets produced and by whom. Poverty is the direct by-product of low levels of production; the United States and Singapore are fat and happy with $53,101 and $64,584 in per capita economic output, respectively; Zimbabwe, which endured the services of a government very much interested in the redistribution of capital, gets to divide up $788 per person per year, meaning that under circumstances of perfect mathematical equality life would still be miserable for everybody. Sweden can carve up its per capita pie however it likes, but it’s still going to be 22.5 percent smaller than the U.S. pie and less than two-thirds the size of Singapore’s tasty pastry. You cannot redistribute what you don’t have — and that holds true not only for countries but, finally, for the planet and the species, which of course is what globalization is all about. That men of the cloth, of all people, should be blind to what is really happening right now on the global economic scale is remarkable, ironic, and sad.

March 9, 2014

Prime Minister jets off to South Korea for trade deal photo-op

Filed under: Asia, Cancon, Economics — Tags: , , , — Nicholas @ 10:32

It’s not clear whether Prime Minister Stephen Harper is going to Seoul to actually sign a free trade agreement with South Korea or if it’s just another grip-and-grin photo-op to announce an as-yet-unfinalized deal:

Harper said on his 24 Seven webcast that this would be Canada’s first trade deal in the Asia-Pacific region.

“It adds, obviously, to the important deals we have in the Americas and in Europe now. And it’s really given the Canadian economy as good, if not better, free-trade access than virtually every major developed economy,” he said.

Harper added that South Korea is “a relatively open economy, a relatively, very progressive economy and advanced democracy, and it has trade linkages all through Asia itself.” He said it’s “probably the best gateway you can get into long-term trade agreement access into the Asia-Pacific region.”

NDP trade critic Don Davies said growing trade with South Korea and Asia in general is a good thing. But he was skeptical that the week’s coming ceremonies would amount to much more of a repeat of Brussels.

“Are they going to go just to shake hands, have a photo-op and sign an agreement-in-principle without the actual details or text to be released?”

Davies again assailed the government for a total lack of transparency, and questioned whether the deal would be able to protect jobs in Canada’s auto sector.

“In trade deals, it’s details that matter,” he said.

“The Conservatives have the least transparent trade policy probably in the developed world. They are closed, they are secretive and they don’t involve a lot of stakeholders; they don’t involve the opposition.”

The deal would mark progress toward expanding trade with Asia, a major economic priority of the Harper government. Coming on the heels of the Canada-EU pact, it would allow Prime Minister Stephen Harper to trumpet his first significant free-trade deal in Asia, and give impetus to other negotiations, particularly with Japan.

February 27, 2014

Ukraine and the EU – why the easy answer won’t work

Filed under: Economics, Europe, Russia — Tags: , , — Nicholas @ 09:09

At the Adam Smith Institute website, Eamonn Butler explains why there won’t be an easy economic fix for the EU/Ukraine trading relationship:

The trouble with EU membership is that it is such a big deal. A country that wants to be part of the club, and enjoy its free trade benefits also has to accept a mountain of regulation and to sign up for the common currency. It is all or nothing.

That puts countries like Ukraine in a fix, just as it put the UK in a bit of a fix in the early 1970s. The UK did not want to raise tariff barriers and lose its trading relationships with its historic trading partners such as Canada, Australia and New Zealand, from which it imported a great many agricultural products — butter, lamb, fruit, bacon and much else. But thanks to the Common Agricultural Policy, it did not have much choice. Today, the UK is inside the EU’s tariff wall, which makes trade with the rest of the world more expensive, and naturally focuses UK trade on Europe.

[…]

As a logical matter, that does not have to be. If the EU allowed Ukraine the same sort of status enjoyed by (neutral) Switzerland, the country would be free to trade with the EU as part of its customs-union club – but would remain free to preserve trading links to other countries as well. It would also be free to retain its currency and its legal and regulatory structure. A free trade pact with the EU that would help grow the Ukrainian economy, without threatening Russia or the Russian-speaking Ukrainians that the country would be wholly swallowed up into a Western political alliance.

A genuine free-trade deal, rather than full membership. That would probably be ideal for Ukraine (and for other nearby countries not already in the EU), but it won’t be on offer, because too many existing members of the EU would also prefer to have that kind of trading relationship without all the legislative/regulatory overhead that full membership requires. In many ways, the EU cannot afford to offer Ukraine such a deal, for fear of undermining the basis of the current integrated model.

Update: Daniel Hannan on the possibility of partition in Ukraine.

These two views — Ukrainians as a historic people, Ukrainians as a strain of Russians — frame the present quarrel. Most Russian nationalists allow, albeit reluctantly, that Ukrainian national consciousness exists. Alexander Solzhenitsyn grumpily accepted that western Ukrainians, after the horrors of the Soviet era, had been permanently alienated from Mother Russia; but he insisted that the frontiers were arbitrarily drawn under Lenin. If Ukrainians claimed independence on grounds of having a separate national identity, he argued, they must extend their own logic to the Russian-speakers east of the Dnieper.

[…]

Plainly a pro-Russian regime can’t govern the whole country: the recent uprising has put that fact beyond doubt. If the Slavophiles can’t rule the West, might the Westernisers win the East? The way of life they propose ought to be more attractive. But we should not underestimate the importance, in such a region, of blood and speech. Nor should we underestimate how much more Ukraine matters to Moscow than it does to Brussels. Vladimir Putin has mobilised troops on the border. Does anyone imagine any EU government, with the possible exception of Poland’s, contemplating a military response?

If neither the Slavophiles nor the Westernisers can carry the entire territory, some kind of separation starts to look inevitable. Such a separation might come about as paramilitary groups establish local supremacy. Or it might happen as a result of Russian intervention, as in Armenia, Moldova and, later, South Ossetia. It is easy enough to imagine Russian security forces crossing the border at the request of local proxies and establishing a de facto Russophone state. The Trans-Dniester Republic still exists, unrecognised but very much in force, on Ukraine’s western border; why not a Trans-Dnieper Republic to its east?

January 28, 2014

CETA provisions still secret, even though the deal is agreed

Filed under: Cancon, Economics, Europe — Tags: , , , , — Nicholas @ 10:13

It’s an odd day that I find myself in full agreement with anything the Council of Canadians pushes, but as Glyn Moody explains, this is not the way to get Canadians to buy in to a new trade deal:

Back in November, we reported that the EU and Canada were claiming that “a political agreement” on the key elements of the Canada-EU trade agreement, CETA, had been reached. One of the supposed reasons why the negotiations were being conducted in secret was that it was “obviously” not possible to release texts while talks were still going on — even though that is precisely how WIPO operates. So, now that key parts of the CETA have been agreed upon, presumably the public will finally get to see at least those sections of the text, right? Apparently not, as the Council of Canadians found when it put in a freedom of information request to the Canadian government:

    The federal government has denied an access to information request from the Council of Canadians for the working text of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). The grassroots public advocacy organization is accusing the Conservative government of unnecessarily depriving Canadians of the information they need to pass judgement on CETA, and of any opportunity to alter the deal before it is signed.

    “It’s a new year, but we’re seeing the same old secrecy from the Harper government. How is anyone expected to say yes or no to this EU deal if Ottawa is not prepared to release it publicly before CETA is signed, sealed and delivered?” asks Stuart Trew, trade campaigner with the Council of Canadians. “The Prime Minister is misleading Canadians by claiming the CETA negotiations are the most transparent in Canadian history. A fully redacted copy of the text would be more transparent than this.”

This exposes nicely the dishonesty of governments around the world when they claim that regrettably they “have” to keep texts secret, but will release them just as soon as they can. Here, we have major parts of CETA that have been agreed upon and where there is no need to keep them secret — apart, that is, from the real reason why there is no transparency: because the governments concerned know that once the public find out how they have been let down by their representatives, there will be widespread outrage. In a blatant attempt to stifle democratic debate, it has become standard practice with these trade agreements only to release the texts after they have been passed, and there’s nothing that can be done about it.

January 18, 2014

Austrian economics

Filed under: Economics — Tags: , , — Nicholas @ 11:35

Published on 26 Sep 2012

Steve Horwitz, Professor of Economics at St. Lawrence University, explains what Austrian Economics is and what Austrian Economics is not, clearing up some common misconceptions.

This video is based on Steve’s essay by the same name:
http://www.coordinationproblem.org/2010/11/what-austrian-economics-is-and-what-austrian-economics-is-not.html

To learn more about Austrian Economics, visit http://www.fee.org

January 14, 2014

Noam Chomsky – TPP is an “assault” that furthers corporate “domination”

Filed under: Economics, Government, Pacific, USA — Tags: , , , , , — Nicholas @ 08:59

The Trans-Pacific Partnership (TPP) is perhaps the most secretive “free trade” deal ever negotiated. It’s apparently so important that the details be kept from the electorate that even our elected representatives are not being given much information on what has been discussed or agreed. It’s not just libertarian and free market advocates that find this lack of transparency disturbing, as this piece in the Huffington Post shows:

The Obama administration’s Trans-Pacific Partnership trade deal is an “assault,” on working people intended to further corporate “domination,” according to author and activist Noam Chomsky.

“It’s designed to carry forward the neoliberal project to maximize profit and domination, and to set the working people in the world in competition with one another so as to lower wages to increase insecurity,” Chomsky said during an interview with HuffPost Live.

The Obama administration has been negotiating the TPP pact with 11 other Pacific nations for years. While the deal has not been finalized and much of it has been classified, American corporate interest groups, including the U.S. Chamber of Commerce, have already voiced strong support for the TPP, describing it as a free trade deal that will encourage economic growth. The Office of U.S. Trade Representative has also defended the talks, saying the TPP will include robust regulatory protections. But labor unions and a host of traditionally liberal interest groups, including environmentalists and public health advocates, have sharply criticized the deal.

Chomsky argues that much of the negotiations concern issues outside of what many consider trade, and are focused instead on limiting the activities governments can regulate, imposing new intellectual property standards abroad and boosting corporate political power.

“It’s called free trade, but that’s just a joke,” Chomsky said. “These are extreme, highly protectionist measures designed to undermine freedom of trade. In fact, much of what’s leaked about the TPP indicates that it’s not about trade at all, it’s about investor rights.”

December 24, 2013

Indian gold bugs go home

Filed under: Bureaucracy, Business, India, Middle East — Tags: , , , , — Nicholas @ 09:19

The Indian government has been attempting to restrict the domestic gold market, but there’s a big loophole in the rules that many travellers are taking advantage of while they can:

Faced with curbs on gold imports and crash in international prices leaving it cheaper in other countries, gold houses and smugglers are turning to NRIs to bring in the yellow metal legally after paying duty. Any NRI, who has stayed abroad for more than six months, is allowed to bring in 1kg gold.

It was evident last week when almost every passenger on a flight from Dubai to Calicut was found carrying 1kg of gold, totalling up to 80kg (worth about Rs 24 crore). At Chennai airport, 13 passengers brought the legally permitted quantity of gold in the past one week.

“It’s not illegal. But the 80kg gold that landed in Calicut surprised us. We soon got information that two smugglers in Dubai and their links in Calicut were behind this operation, offering free tickets to several passengers,” said an official. The passengers were mostly Indian labourers in Dubai, used as carriers by people who were otherwise looking at illegal means, he said. “We have started tracing the origin and route of gold after intelligence pointed to the role of smugglers,” he said.

Reports from Kerala said passengers from Dubai have brought more than 1,000kg of gold in the last three weeks. People who pay a duty of Rs 2.7 lakh per kg in Dubai still stand to gain at least Rs 75,000 per kg, owing to the price difference in the two countries. Gold dealers in Kerala say most of this gold goes to jewellery makers in Tamil Nadu and Andhra Pradesh.

December 4, 2013

The rising tide of “isolationism”

Filed under: Liberty, Media, Politics, USA — Tags: , , — Nicholas @ 08:23

Justin Raimondo on the irritating-to-pundits-and-politicians increase in what they mis-characterize as isolationism:

For years the Pew folks have been yelping about “isolationism.” They’ve been telling us it’s on the march — except among the elites — with the strong implication being that this is not a Good Thing. But do they know what the heck they’re talking about?

One has to wonder what extending peaceful commercial links with other nations has in common with invading them, meddling in their internal politics, or otherwise bullying them around. Indeed, establishing voluntary non-coercive relations with other nations — otherwise known as international trade — is the polar opposite of military and/or political intervention in their affairs. The American people know this. The Pew folks — not so much.

The bias of the Pew Center is evident in every line of the report, and also in its structure: the Pew Poll is really two polls, one a survey of the hoi polloi (you and I), the other a poll of members of the “internationalist” Council on Foreign Relations (CFR), the elite foreign policy group founded by Elihu Root and dominated by the Morgan banking interests from the get-go. The gulf between us plebeians and the Very Serious People in Washington (and New York) has been growing for years, but today it is a vast chasm: The CFR types are aghast at the “isolationism” of the rest of us, and ascribe to this various causes: “war fatigue,” the costs — and of course our narrow plebeian “isolationist” anti-cosmopolitan country-bumpkin outlook.

While 51 percent of normal Americans say we’re pushing our weight around far too much, the exact opposite opinion is held by the Washington-New York know-it-alls: “By contrast, about twice as many CFR members say the US does too little internationally as say it does too much (41% vs. 21%); 35% say the US does the right amount.” While us Normals were overwhelmingly opposed to US intervention in Syria, the CFR’ers were for it 2-to-1. Yes, they’re wrong about practically everything, including what it means to be an “isolationist” — a creature that has never existed and could not exist outside of North Korea.

[…]

The political class in this country has a far different view of commercial relations between nations than the Average American. To the latter, it is simply Good Old American Free Enterprise, albeit engaged in overseas. The former are not so naïve: they realize it is all about buying political influence, and, failing that, using the US military to guarantee the safety, security, and profitability of American investments abroad.

Viewed through this lens, American foreign policy since 1890 takes on a whole new dimension, which Rothbard’s Wall Street, Banks, and American Foreign Policy reveals in scintillating detail. The One Percent have been utilizing the US military as their private security force ever since that time: indeed, every war we have fought — yes, including the Good War — was fulsomely supported by the economic elite and their journalistic camarilla against the overwhelming desire of the American people to stay out. The political class has deliberately conflated commercial contacts with military and political intervention into the affairs of other nations — because, for them, the two are synonymous.

According to the mindset of the Pew Center and their good buddies at the CFR, “isolationism” has to mean commercial isolation. While this may puzzle the average person, look at it from the perspective of a professional thief: without the threat of US sanctions and the ultimate bludgeon of US military intervention, how else will the big banksters and their sycophants enforce a “world order” that exists so they can make a fast buck off the sweat of Chinese coolies, Eurasian oil workers, and Mexican maquiladores?

November 26, 2013

Twenty-five years on, Canada has clearly changed

Filed under: Cancon, History, USA — Tags: , , , — Nicholas @ 10:23

Richard Anderson notes the 25th anniversary of an almost forgotten Canadian crisis:

From the perspective of a quarter century the whole thing is almost inexplicable. It isn’t just that everything turned out well. The oddness of that time is how worked up people got about a trade agreement. Seriously. It’s an international trade agreement. The Harper Tories have signed quite a few, including an important deal with the EU. It’s barely headline news. But way back then it was the beginning of the end of Canada, if the good and great of the Canadian Cultural Establishment were to be believed.

Adding more distance to the passage of time is the demographic revolution that has taken place since, a revolution kicked into high gear by Mulroney not Trudeau. The Canada of 1988 was a much whiter and far more WASPish place than it is today. The Canadian WASP is an odd creature. Genial to a fault, decent, hard working and subdued in manner and lifestyle. He does, however, have one terrible weakness: A paranoid fear of the United States.

The Punjabi, the Vietnamese and the Filipino immigrant could not tell a Loyalist from a lolipop. The strange psycho-drama that has consumed the Canadian elite since Simcoe landed is now, mostly, over. The new Canadians have no fear of the old enemy America. There are no intergenerational flashbacks to the Battle of Queenston Heights. The Americans are just the loud neighbour to the south. It is not entirely coincidental that free trade was at last brought to Canada by an Irish Catholic, supported by a phalanx of Quebecois. Neither group ever really feared America. Among them there was never that nagging sense of imminent cultural absorption.

October 19, 2013

CETA as a lever to (finally) loosen rules on inter-provincial trade

Filed under: Cancon, Economics, Europe — Tags: , , , — Nicholas @ 11:18

In Maclean’s, Paul Wells thinks that the new free trade deal between Canada and the European Union will be one of the historical successes of Stephen Harper’s career, but also notes it has a potentially great domestic influence:

Flip it around. Every delay in reaching an agreement with the EU on freer trade in goods and services has been merrily mocked by a few critics in the gallery, yours truly first among them. And if Stephen Harper had failed to conclude this deal, having taken negotiations this far, he would have durably wrecked Canada’s reputation as a serious trading nation.

(That goes doubly so now that Canada and the EU have reached an agreement in principle. Could it still fall apart? It could, although my test on this, for reasons I explained long ago, is the reaction of the Europeans. I’m told there is no love lost between Harper and José Manuel Barroso; Barroso would not waste time in Brussels on an empty dog and pony show so Harper could duck a few questions about Mike Duffy. The Europeans think this is real. For now we should take today’s announcement at face value. The Council of Canadians sure does.)

Well, if delay was worth criticism and failure would have been read as a career-threatening personal defeat, success must be counted as a personal triumph for Stephen Harper. When his political career ends, this is one of the first three things the newspapers will mention.

But as he notes, there’s a long-term, nagging domestic trade issue that might also improve under the new international agreement:

Best of all, any advantage offered by any province and its municipalities to European importers must, in simple logic, be made available to businesses from other Canadian provinces. This accord will act powerfully to deepen the still fragmented internal Canadian market. In a week when some cabinet ministers were turning cartwheels because it will now be legal to drive from Hull to Ottawa with a bottle of wine, that’s an overdue change. I’m on the record being skeptical Harper couldn’t close this deal, and I’m happy to eat crow. This CETA deal will be the most powerful pro-market accomplishment of any Canadian government in a quarter century.

As Wells correctly notes, this isn’t a true free trade deal but it’s a “free-r trade” agreement that moves us a few notches closer to actual free trade with the EU. Regulators and bureaucrats of all stripes will still have a lot of say in what goods and services are actually exchanged between the signatories, but that will still be less than the influence they currently wield.

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