Libertarianism

The Lost Boys

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UPDATE: Here is one solution.

This week Europe blew up. The media haven’t caught up yet, because they are what they are. But the markets are catching up fast.

This is a huge event for the United States, because our political elite is bound and determined to turn us into Europe. Hasn’t the EU found the answer to war and peace and prosperity forever?

Our Democrats believe it. Europe is their model. Every batty new idea they have is copied from the glorious European Union. Twenty years ago they still celebrated the Soviet Union, until that house of cards crumbled. Now they have shifted their fantasy paradise to Europe.

Over there, fifty years of increasingly centralized control have made it impossible for voters to be heard. The political parties are stuck in GroupThink. Only the fascist “protest” parties agitate for reform. The ruling class doesn’t listen. They don’t have to — they don’t have to run for election.

So European voters fled to the fascists to express their rage and despair. Imagine one out of four US voters going for Lincoln Rockwell, and you get the idea.

Read the rest, as they say.

Belmont Club has an unusually good post for yesterday. I could say that more than once a week, if truth be known. This one is quite to the point on Sequester Day.

The NHS, which its creators boasted would be the ‘envy of the world’, has been found to have been responsible for up to 40,000 preventable deaths under the helm of Sir David Nicholson, a former member of the Communist Party of Britain. “He was no ordinary revolutionary. He was on the hardline, so-called ‘Tankie’ wing of the party which backed the Kremlin using military action to crush dissident uprisings” — before he acquired a taste for young wives, first class travel and honors.

The NHS is dealing with the shortage of funds by pruning its tree of life, so to speak. He also does not tolerate anyone telling the truth about it.

it emerged he spent 15 million pounds in taxpayer money to gag and prosecute whistleblowers — often doctors and administrators who could not stomach his policies.

The public money spent on stopping NHS staff from speaking out is almost equivalent to the salaries of around 750 nurses.

It has recently been noted that NHS staff no longer recommend their own hospital for family members. Also one quarter report being harassed or bullied at work.

The other half of the equation involves the youth.

The European Youth will remain outside the Death Pathways for some time yet. But they will spend the time waiting for their turn at affordable, caring and passionate medicine in poverty and hopelessness. With the exception of Germany youth unemployment in Europe is over 20%. “A full 62% of young Greeks are out of work, 55% of young Spaniards don’t have jobs, and 38.7% of young Italians aren’t employed.”

Unemployment exceeds even our own Obama economy for failure.

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What lies ahead, I fear.

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UPDATE: An an article at Belmont Club describes interest in alternative money creation as a way of anticipating inflation. It also goes further into a discussion of general competence.

The idea that Virginia should consider issuing its own money was dismissed as just another quixotic quest by one of the most conservative members of the state legislature when Marshall introduced it three years ago. But it has since gained traction not only in Virginia, but also in states across the country as Americans have grown increasingly suspicious of the institutions entrusted with safeguarding the economy.

What has changed is faith in the federal government, not just in Virginia but in a growing number of places. The lack of faith in the competence of government — and the soundness of the dollar — has been growing leading some states to create contingency plans in case the currency goes bust.

Once again, I apologize for my pessimism but this is what I see. First, there is this article, which quotes a well known financier.

There may be a natural evolution to our fractionally reserved credit system that characterizes modern global finance. Much like the universe, which began with a big bang nearly 14 billion years ago, but is expanding so rapidly that scientists predict it will all end in a “big freeze” trillions of years from now, our current monetary system seems to require perpetual expansion to maintain its existence. And too, the advancing entropy in the physical universe may in fact portend a similar decline of “energy” and “heat” within the credit markets. If so, then the legitimate response of creditors, debtors and investors inextricably intertwined within it, should logically be to ask about the economic and investment implications of its ongoing transition.

Certainly “growth” seems to be fundamental to our economic health. That, of course, presumes a growing population but it also would be affected by a stagnant population with a growing age disparity. The obvious example of the latter is Japan.

The creation of credit in our modern day fractional reserve banking system began with a deposit and the profitable expansion of that deposit via leverage. Banks and other lenders don’t always keep 100% of their deposits in the “vault” at any one time in fact they keep very little thus the term “fractional reserves.” That first deposit then, and the explosion outward of 10x and more of levered lending, is modern day finance’s equivalent of the big bang. When it began is actually harder to determine than the birth of the physical universe but it certainly accelerated with the invention of central banking the U.S. in 1913 and with it the increased confidence that these newly licensed lenders of last resort would provide support to financial and real economies. Banking and central banks were and remain essential elements of a productive global economy.

The effect of asset bubbles on such a system is worrisome as the history of Japan and the recent history of the US have shown. The Panic of 1907 was largely responsible for the creation of the Federal Reserve. That financial crisis is thought, by the authors of a recent book, to have been a consequence of the 1906 earthquake in San Francisco, which destroyed a large amount of real assets and the insurance costs that were associated. The immediate cause was financial speculation but the real losses had added to the fragility of the system.

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The Controversial CTC Report

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Cross-posted from Zenpundit.com

The Center for Combating Terrorism at West Point released a report on domestic terrorism  that raised hackles for a number of reasons. Despite the dismissals of liberal political pundits,  the reasons for objections to the CTC report are legitimate but they did not need to arise in the first place and might have been avoided with a slightly different editorial approach or appropriate caveats (I just finished reading the report, which is primarily focused on the usual suspects). Here’s why I think the normally well-regarded CTC stumbled into a hornet’s nest:

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America 3.0, The Future of Manufacturing and Employment

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In our upcoming book, America 3.0: Rebooting American Prosperity in the 21st Century – Why America’s Greatest Days Are Yet to Come (available for pre-order here), Jim Bennett and Mike Lotus paint a word-picture of America in 2040, which is less a prediction and more an exercise in hopeful and forward-looking thinking for conservatives and libertarians. We include predictions regarding the impact of distributed manufacturing.

The recent article in Wired by Kevin Kelly entitled Better Than Human: Why Robots Will — And Must — Take Our Jobs makes similar points. Here are two good quotes from Kelly:

Right now we think of manufacturing as happening in China. But as manufacturing costs sink because of robots, the costs of transportation become a far greater factor than the cost of production. Nearby will be cheap. So we’ll get this network of locally franchised factories, where most things will be made within 5 miles of where they are needed.
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It is a safe bet that the highest-earning professions in the year 2050 will depend on automations and machines that have not been invented yet. That is, we can’t see these jobs from here, because we can’t yet see the machines and technologies that will make them possible. Robots create jobs that we did not even know we wanted done.

It is important to remember that technological change destroys categories of jobs, and creates new ones that literally cannot be imagined yet.

We are going to be facing a tidal wave of creative destruction in the years immediately ahead.

Our book offers some ideas about why we are well suited to benefit from these changes, and how to navigate the rapids to get from here to there.

Stand by for very interesting times.

America 3.0 — Now Available for Pre-Order

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As previously announced, Jim Bennett and Mike Lotus (a/k/a Lexington Green), have co-authored a book:

America 3.0: Rebooting American Prosperity in the 21st Century – Why America’s Greatest Days Are Yet to Come.

The book is currently in the hands of our publisher, Encounter Books and editing is underway.

There is now an Amazon pre-order page for the book.

All such early orders would be very greatly appreciated.

The book is coming out in May. Promotional plans are chugging away. Any ideas anyone may have would be very much appreciated, and can be left in the comments on this post or future posts related to the book.

A friend asked for a three sentence summary. This is what I came up with:

America’s greatest days are yet to come. Just as the world of family farms and small businesses, America 1.0, gave way to the industrialized world of big cities, big business, big labor unions and big government, America 2.0, we are now moving into a new world of immense productivity, rapid technological progress, greater scope for individual and family-scale autonomy, and a leaner and strictly limited government. The cultural roots of the American people go back at least fifteen centuries, and make us individualistic, enterprising, and liberty-loving, equipping us to prosper in the upcoming America 3.0.

We will be posting frequently in the months ahead (both here and on the book’s own blog) about the America 3.0 and its arguments, and how the themes in the book relate to current events, to efforts to devise a long term strategy for the political Right in America, or to other writers or books which interest us or influenced us.

We anticipate setting up a Facebook and Twitter account for the book as well.

Stand by!