Do you know what I believe? I believe they're doing it deliberately. They don't want us to think. That's why we have to work as we do. And because there's still time left after we've worked all day and stood in a few lines, we have the social activities to attend, and then the newspapers. Do you know that I almost got fired from the Club, last week? I was asked about the new oil wells near Baku and I didn't know a damn thing about them. Why should I know about the oil wells near Baku if I want to earn my millet drawing rotten posters? Why do I have to memorize newspapers like poems? Sure, I need the kerosene for the Primus. But does it mean that in order to have kerosene in order to cook millet, I have to know the name of every stinking worker in every stinking well where the kerosene comes from? Two hours a day of reading news of state construction for fifteen minutes of cooking on the Primus? (313) [bold added]Obama may or may not hope to reeducate America in the same way that the communists ran Russia, or, God forbid, that Bill Ayers' Weather Underground has discussed (HT: Andy Clarkson and HBL), but he shares the same fundamental contempt for rational debate. The only questions, should he be elected, will be whether he will follow the implications of his statist philosophy that far, and, if so, whether he thinks he can get away with it.
Abortion Is a Woman's RightI haven't checked the various papers to see where it has been published, but I do know that the Pagosa Daily Post published it on October 23rd. They then published a a lengthy reply on October 27th. (I won't reproduce it here; it's too long and too wrong.) On the 29th, they published a great letter in reply by Gideon Rich of Armchair Intellectual:
Colorado voters face a stark moral choice in this election: vote yea or nay on Amendment 48. That ballot measure would grant fertilized eggs the legal standing of persons--including "inalienable rights, equality of justice, and due process of law"--in the state constitution.
If fully implemented, almost all abortions would be outlawed in Colorado, including in cases of rape, incest, and fetal deformity. Any woman who terminated a pregnancy would be guilty of murder, subject to life in prison or the death penalty. To take the birth control pill, which might sometimes prevent the implantation of an embryo in the womb, would be a criminal act. Miscarriages might be investigated by zealous prosecutors.
Roe v. Wade would not necessarily protect women against these ominous legal controls. Rather, Amendment 48 might be used to challenge that landmark case--or to inspire a nationwide movement for a similar federal constitutional amendment.
Despite its draconian effects, this proposed amendment has gathered solid support from Colorado voters. A recent poll shows that 39% favor it, 50% oppose it, and 11% are undecided.
Why such strong support? Over the past two decades, the religious right has effectively waged a holy war on abortion. Abortion is the murder of an innocent human life, they say. It violates the God-given right to life of a "preborn child." It is part of a "culture of death." So most Americans regard abortion as morally wrong except when a pregnancy threatens the woman's mental or physical health.
Yet the religious right's attacks on abortion are completely and utterly wrong. They evade the true meaning of the biological facts of pregnancy.
Opponents of abortion claim that embryos and fetuses have the same right to life as babies because they are distinct, living human beings. Undoubtedly, an embryo or fetus is alive, not inert matter. It's also human--not canine or hippopotamus. Yet every distinct, living skin cell a person washes off in the shower also contains human DNA. A tumor is human tissue distinct from its host. The embryo or fetus is different: it might develop into a born baby. Yet the differences between an embryo or fetus and that born baby are vast.
In the early stages of pregnancy, the embryo has nothing in common with an infant except its DNA. Its form is similar to the embryos of other mammals; it cannot survive outside the womb; it lacks any kind of awareness. To call that clump of cells a "person" is sheer nonsense.
Even when more developed, the fetus is not a biologically separate entity capable of independent action, like a baby. It exists as part of the woman carrying it, wholly contained within and dependent on her. It goes where she goes, eats what she eats, and breathes what she breathes. It lives as she lives, as an extension of her body. It is not yet an individual human life; it is not yet a person.
That situation changes radically at birth. A baby lives a life of its own. Although still very needy, he maintains his own biological functions. He breathes his own air, digests his own food, and moves on his own. He interacts with other people as a creature in his own right, not merely as a part of a pregnant woman. His life must be protected as a matter of right.
So a woman has every right to terminate an unwanted pregnancy--for any reason. If an abortion will protect and further her own life and happiness, then she ought to pursue that option with a clear conscience.
Amendment 48 would obliterate the moral right of every pregnant woman to control her own body. It is based on sectarian religious dogma, not objective facts. Please vote "No" on 48.
Diana Hsieh is the co-author of "Amendment 48 Is Anti-Life: Why It Matters That a Fertilized Egg Is Not a Person," an issue paper available at http://www.seculargovernment.us.
Van Horn Opinion Misses the PointThank you for writing such an excellent letter, Gideon!
Gideon Reich
Steve Van Horn's rebuttal in the Post to Diana Hsieh's excellent article on abortion shows a complete lack of understanding of the one crucial concept in the abortion debate: Individual Rights. Far from being mythical supernatural endowments implanted at conception, or social conventions subject to popular vote, rights derive from a human being's nature as a rational being. His existence requires the free exercise of his rational faculty to sustain his own life.
A "right," as Ayn Rand pointed out, "is a moral principle defining and sanctioning a man’s freedom of action in a social context." Thus, the freedom of action that ought to be guaranteed to an individual is the freedom to think and act without interference from others in society for the achievement of his goals, as long as he respects the right of others do the same.
The very first requirement for such a freedom to apply is that the "individual" in question actually be a separate individual in a social context -- not a mere potential that is part of another actual individual. As Ms. Hsieh has eloquently shown, the unborn fetus, to say nothing of the embryo or zygote, has not met that requirement.
The pregnant woman, on the other hand, clearly has -- and has every moral right to act accordingly.
"America is Collapsing, According to the Same Scenario of the Russian Collapse"I think our Saudi cleric friend is on to something here. The prohibitions on certain market transactions do draw upon the history of faith-based bans on money-lending and the like. And while not explicitly religious, the ban on short selling is a stunning example of altruism in action (as well as a brazen assault on self-interest). I guess if America can't be an Islamic republic, it can be made to be as poor as one.
Abd Al-'Aziz Fawzan Al-Fawzan: "A few years ago, the Socialist Communist system ended in a devastating collapse, and it was followed by the Soviet republics one after another. Russia gave up its competition against American hegemony, and the United States became the unipolar leader ruling the world.
"Now, Allah be praised, America is collapsing, according to the same scenario of the Russian collapse.
[...]
"This tremendous economic power, which is unparalleled in history, was bound to collapse one day because it is based on injustice.
[...]
"Will the West acknowledge the collapse of capitalism? I am convinced that they will not. We are used to their obstinacy and arrogance. They always turn the facts upside down...
Interviewer: "But they will have to admit..."
Abd Al-‘Aziz Fawzan Al-Fawzan: "Now they have begun to adopt the principles of Islamic economy – only they do not call it "Islamic." The prohibition on short selling, the prohibition on the expanding and the selling of debts – this is Islam!" [...] [Full interview here]
Invoking the novelist Ayn Rand, Gov. Paterson yesterday sounded a conservative message of tax cuts, business development, and fiscal restraint before Congress - even as he sought billions of federal dollars to help the state cope with its massive looming deficits.The aericle goes on to describe how Paterson then proceeded to ask for more federal money for New York.
. . . Paterson cited Rand, a libertarian icon, and her best-seller "The Fountainhead," noting the novel proclaimed that "our country, the greatest country in the world, was founded on the basis of individuals, where people were encouraged to adventure, not to be complacent; to be daring, not dormant; to prosper, not to plunder."
He went on to say that a failure to live by those principles, combined with a lack of transparency and governmental oversight, had "brought us to the point where our nation faces a downturn in its economy only rivaled by the Great Depression."
End the FCC’s War on Free Speech
October 29, 2008
Washington, D.C.--On November 4 the Supreme Court will hear arguments in Federal Communications Commission v. Fox Television Stations. At issue is whether the FCC can declare “fleeting expletives” indecent and fine broadcasters for violations.
“The government should put an end to the non-objective ‘indecency’ laws that permit the FCC to dictate what Americans can say and hear on the airwaves,” said Don Watkins, a writer for the Ayn Rand Center for Individual Rights.
“The Supreme Court has defined ‘indecency’ as speech that ‘depicts or describes sexual or excretory activities and organs in terms patently offensive as measured by contemporary community standards.’ But which Americans count--and don’t count--as part of the community? Why are they king? And how are broadcasters to divine the community’s supposedly shared standards?
“As the history of the government’s anti-indecency regime has shown, these questions are unanswerable. The only way for broadcasters to play it safe is to engage in self-censorship, cutting any material regulators might declare indecent.
“And once the government becomes the enforcer of ‘community standards,’ no speech is safe. How long until the courts start rubber-stamping the Bible Belt’s efforts to suppress the theory of evolution on the grounds that it is offensive, corrupts young minds, and undermines community values?
“It’s time for the government to stop telling Americans what we can say and hear on the airwaves, and to protect our constitutionally guaranteed right to free speech.”
### ### ###
Don Watkins and other Ayn Rand Center experts are available for interviews on this topic.
Contact: Larry Benson
E-mail: media@aynrandcenter.org
Phone: (949) 222-6550, ext. 213
For more information on Objectivism’s unique point of view, go to ARC’s Web site. The Ayn Rand Center promotes the philosophy of Ayn Rand, author of “Atlas Shrugged” and “The Fountainhead.”
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Introduction: Section 2Original text via Posner Memorial Collection (CMU). Audio-recording at Librivox.
… when the Supreme being formed the universe, and created matter out of nothing, he impressed certain principles upon that matter, from which it can never depart, and without which it would cease to be. When he put that matter into motion, he established certain laws of motion, to which all movable bodies must conform, And, to descend from the greatest operation to the smallest, when a workman forms a clock, or other piece of mechanism, he establishes at his own pleasure certain arbitrary laws for its direction; as that the hand shall describe a certain space in a given time; to which law as long as the work conforms, so long it continues in perfection, and answers the end of its formation,
If we farther advance, from mere inactive matter to vegetable and animal life, we shall find them still governed by laws; more numerous indeed, but equally fixed and invariable. The whole progress of plants, from feed to the root, and from thence to the feed again; --- the method of animal nutrition, digestion, secretion, and other branches of vital economy; --- are not left to chance, or the will of the creature itself, but are performed in a wondrous involuntary manner, and guided by unerring rules laid down by the great author.
This then is the general signification of law, a rule of action dictated by some superior being; and in those creatures that have neither the power to think, nor the will, such laws must be invariably obeyed, so long as the creature itself subsists, for its existence depends on that obedience. But, laws, in their more confined sense, and in which it is our present business to consider them, denote the rules, not of action in general, but of human action of conduct: that is, the precepts by which man, the noblest of all sublunary beings, a creature endowed with both reason and freewill, is commanded to make use of those faculties in the general regulation of behavior.
Good Riddance, GOP ModeratesNo problem, Rush. I've already sent the following message to numerous Republicans at the local, state, and national level:
...We flushed 'em out. We found out they're not really Republicans and they're by no means conservatives, and now they're gone. Now the trick is to keep 'em out.
...The minute you say that conservatism includes people who are pro-choice, you've destroyed conservatism because conservatism stands for "life, liberty, pursuit of happiness." Without life, there is nothing else here, and if we're going to sit around indiscriminately deciding who lives and who dies based on our own convenience, that's not conservative. Individual liberty. The essence of innocence is a child in the womb who has no choice over what happens to it. Sorry. If we don't stand up for that person, if the government doesn't, then nobody will. And if we allow ourselves to get watered down by a bunch of people who are embarrassed over that position, they're not conservatives.
I used to support the Republican Party because I believe in individual rights, free markets, a strong national defense, and the right to keep and bear arms.Given that Rush Limbaugh has just confirmed that they don't want members like me, I'm happy to oblige him.
However, the Republican Party alliance with the religious right on "social issues" like stem cell research, abortion and gay marriage has turned off many former supporters such as myself.
Americans have a right to practice their religion as a purely private matter, and I defend everyone's right to do so.
But the government should not force one group's religious views on everyone. Hence, I no longer have a home in any political party. To paraphrase a quote from Ronald Reagan, "I didn't leave the Republican Party, the Republican Party left me."
And let's not forget that his impassioned defense of individual freedom (which I heard part of, and which by itself was quite good) was made in defense of voting for JOHN MCCAIN... you know, the guy who blames the financial crisis on greedy Wall Street, who dismisses those who pursue profit instead of "service," who thinks the First Amendment deserves scare quotes, who supports cap and trade, who opposes drilling for oil in Alaska, whose hero is Teddy Roosevelt, who chose religious nut-job and anti-intellectual populist Sarah Palin as his running mate, etc., etc., etc. What a sin it would be to elect that kind of nightmare in the name of *capitalism*!If McCain and Limbaugh were the only "defenders" of individual rights against the likes of Obama, then our country would be in sorry shape. Fortunately, there are better defenders out there...
Fleeting Freedom: The Indecent Assault on Broadcasters
The fleeting expletive case before the Supreme Court is about more than broadcasters’ ability to air dirty words--it’s about whether “community standards” should be allowed to override free speech.
By Don Watkins
As the Supreme Court prepares to hear arguments Nov. 4 in the so-called fleeting expletive case, Federal Communications Commission v. Fox Television Stations, it’s clear that much more hinges on its outcome than broadcasters’ ability to air dirty words.
The FCC has had the power to fine broadcasters for “indecent” speech for decades. But following Janet Jackson’s infamous Super Bowl wardrobe malfunction in 2004, the government declared all-out war on indecency. Congress increased the maximum penalty per infraction tenfold, from $32,500 to $325,000; the FCC started issuing fines left and right; and Congressman James Sensenbrenner went so far as to recommend jail time for broadcasters who violated “indecency” guidelines. At the same time, the FCC began issuing fines for fleeting expletives. Suddenly a star’s offhand comment on live TV could cost broadcasters hundreds of thousands of dollars.
In the midst of all this, one question never got answered: just what is “indecency”? The Supreme Court had defined it as speech that “depicts or describes sexual or excretory activities and organs in terms patently offensive as measured by contemporary community standards.” But which Americans count (and don’t count) as part of the community? Why are they king? And how are broadcasters to divine their supposedly shared standards? In response to these unanswerable questions, the FCC issued a hodgepodge of rulings in specific cases and told broadcasters, in effect, “You figure it out.”
Multiple uses of expletives in Martin Scorsese’s PBS documentary The Blues? Indecent, said the FCC. Multiple uses of those same expletives in the movie Saving Private Ryan? Not indecent. Suggestion of teenage sexual activity on CBS’s Without a Trace? Indecent. Graphic discussion of teen sexual practices on Oprah? Not indecent. Bono’s use of the “F-word” during the 2003 Golden Globe awards? Even the FCC wasn’t sure about that one. Initially it said the word was not indecent, but later changed its mind and started handing out the fleeting expletive fines at issue in FCC v. Fox Television.
So what is a broadcaster to do? Engage in self-censorship, cutting any material that regulators might declare indecent.
Defenders of the war on indecency admit that the FCC’s regulations are murky. But without such restrictions, they say, Americans will be helpless against the stream of offensive programming pumped into their homes: either we allow the government to wield arbitrary power over broadcasters, or we give broadcasters arbitrary power to subject us to filth.
What this argument ignores is that broadcasters’ power is not arbitrary. They must earn their market by offering programming Americans choose to consume. We choose to buy a TV (or not). We choose to pay for cable (or not). We choose which channels we and our children watch. Broadcasters can’t force us to watch offensive programming any more than an author can force us to read an offensive book.
This is the meaning of free speech: people have the right to say whatever they want, no matter how offensive--and we remain free to listen or not. We don’t have to abide by the opinions, prejudices, and errors of our neighbors, but can judge for ourselves whether something is true or false, art or trash, insightful or indecent.
But once the government becomes the enforcer of “community standards,” no speech is safe. How long until, say, the Bible Belt declares that the theory of evolution is offensive, corrupts young minds, undermines community values, and must be suppressed? This question is not academic. Bolstered by the indecency precedent, efforts are already underway to regulate “excessively violent” broadcasts.
And if the government can suppress speech “the community” allegedly deems offensive, then why can’t it force broadcasters to engage in speech “the community” allegedly regards as good? In fact, it already does so: Univision was recently fined $24 million for failing to air a sufficient amount of educational children’s programming. On the anti-indecency movement’s premises, judging the value of programming is not the prerogative of broadcasters, who decide what to air, or viewers, who decide what to watch--it’s the prerogative of “the community” (and its self-appointed spokesmen).
This is what is at stake in FCC v. Fox Television. The question is not whether fleeting expletives are indecent, an issue that individuals have a First Amendment right to decide for themselves. It’s whether the Constitution grants government the power to trample on freedom of speech, using non-objective laws to dictate what we can say and hear on the airwaves. The Supreme Court should take this opportunity to respond with an emphatic “No!” Anything less would be indecent.
Don Watkins is a writer and research specialist at the Ayn Rand Center for Individual Rights. The Ayn Rand Center is a division of the Ayn Rand Institute and promotes the philosophy of Ayn Rand, author of “Atlas Shrugged” and “The Fountainhead.”
The Code of Federal Regulation (abbreviated CFR) is the collection of regulations passed by Federal agencies in the United States.Be sure to stop by for photos and measurements. Hayes then tackles the United States Code, the laws actually passed by Congress.
...
Viewers of a John Stossel television program on the ABC broadcast network on October 17, 2008, saw Stossel demonstrate that the pages in a single title, when removed from the binding and then attached end to end, rolled out the whole length of a football field and then halfway back again. (Read story, view video) The present web page demonstrates just how much shelf space the regulations occupy when the pages are in their binding and on shelves.
The CFR is spread across ten shelves at the Library of Congress. ...
All told, the USC of year 2000 occupies 73 inches of shelf lineage. ... When the laws of the United States were codified as the United States Code in 1925, all of the titles combined occupied a single volume.The next time someone tries to pull a Greenspan, remember these pictures. We are a far cry from capitalism.
It seems that so long as anyone manages to move or even breathe without being under the control of the government, laissez faire allegedly continues to exist, which serves to make necessary yet still more government controls.Indeed.
The most benevolent and revered One has been embarrassed recently by Joe the Plumber and the broadcast journalist Barbara West. Both people had the poor judgment to ask Obama or Biden tough questions. Now Joe the Plumber and Barbara West's husband are being investigated. This is what life under Obama will be -- anyone who does not toe the line will find himself subject to intimidation and character smears.I would add only that past history has already shown us that his supporters had better hope it is convenient for him to pretend to be grateful.
“The United States is battered and drifting after eight years of President Bush’s failed leadership.” True, the U.S. is battered and drifting, but why is it battered and in which direction has it been drifting, and for how long has it been in that condition? The absence of a competent captain can be arguably plotted as far back as JFK and can include him and every president since him, including Bill Clinton and the two Bushes. The direction has been towards fascism, the “f” word no one dares let escape from his lips or onto the front or editorial page lest it send the electorate into a panic or at least alert its more discerning members to the means and ends of proposed policies (modern journalists consistently exercising the rule of thumb that if one refuses to identify a thing, it can’t exist or isn’t real). George W. Bush is merely the latest anti-intellectual, morally rudderless captain, one who has charted the course of his ship of state, not by calculating longitude and latitude by the position of the stars, but rather by consulting his political horoscope, a ghost, and a popularity poll.
“After nearly two years of a grueling and ugly campaign, Senator Barack Obama of Illinois has proved that he is the right choice to be the 44th president of the United States.” Grueling? One supposes it must be grueling, flying around the country on someone else‘s dime and going hoarse repeating the same banalities to crowds of awestruck, dumbed-down Americans whom one is certain he secretly despises. Ugly? The campaign has been not so much ugly as enervating in the dishonesty of all the candidates and in the absence of any discussion of fundamental political and moral issues. And, as far as Senator Obama having proven that he is the right choice, that is because the Times agrees with his plans to reinvent America as a European-style welfare state, even though Obama’s rhetoric is deceptively vacuous -- deceptively, because Obama is a master of Orwellian double-speak. Ergo, he is the right choice.
“Given the particularly ugly nature of Mr. McCain’s campaign, the urge to choose on the basis of raw emotion is strong.” And the Times has apparently succumbed to that urge. The paper accuses McCain of “running a campaign on partisan division, class warfare and even hints of racism.” Here the paper confesses that it is the one-eyed man leading the halt and the blind, because Obama’s campaign has been nothing but a theme of partisan division (those damned Republicans will just give you four more years of Bush!), class warfare (soak the rich, or anyone making more than $250,000 a year), and racism (I am posing as “black” even though I’m about 90% “Arab” or more or less Semite).
John McCain, on the other hand, cannot be credibly accused of running an “ugly” campaign, which instead has been meek, mild and wall-flowerish. McCain has stubbornly refused to hammer Obama with the facts of his sordid record of service to the worst of the masses before he entered the Illinois senate and after that. If his advisors and speech writers had any imagination, McCain would have at some point said something like, “Senator Obama is William Ayers’ vengeance on a country they both hate and wish to destroy through ‘change.’ Barack Obama in the White House would be more destructive than any bomb assembled by Ayers and his fellow terrorists years ago.”
McCain has not once insinuated that he actually shares Obama’s political philosophy, that America, not Washington, is in need of change, and that the best vehicle of change is Washington. He and Obama view themselves as modern versions of Plato’s guardians, ready to inform the ignorant minions below of the best course of action and the best direction to take, not as individuals, but en masse. McCain cannot hurl stones at Obama’s glass house in respect to corruption, being beholden to special interests, and his own brand of national socialism without inviting a barrage of stones hurled in reply. If the Times had any perceptive editors imbued with a smidgen of honesty, the paper would have pointed this out a year ago and endorsed neither man.
However, the Times has an odd notion of what is “ugly.” “Ugly,” to the paper, is naming issues and engaging in ideological dispute. The few times McCain has ventured to broach Obama’s Marxist, socialist background, including Obama’s relationship with William Ayers, the Weatherman terrorist, and his association with ACORN and un-probed connections with some Islamists, he has been slapped down by the news media, and has backed off. If “Joe the Plumber” Wurzelbacher had not spoken back to Obama outside Toledo, Ohio and questioned the meaning of his rhetoric, and if Obama had not committed the revealing gaffe of replying to Joe that he wants to “spread the wealth,” McCain would have had little else to say for the balance of the campaign. By the criteria of the Times, Patrick Henry, Thomas Jefferson, and most of the Founders engaged in “ugly” campaigns for liberty and against tyranny.
“The American financial system is the victim of decades of Republican deregulatory and anti-tax policies.” No, it is a victim of regulatory and tax policies proposed, endorsed, and supported by Democrats and Republicans alike for decades -- nay, for nearly a century. The trouble began with the creation of the Federal Reserve in 1913 with the power to “manage,” “fine tune,” and manipulate the economy according to the crisis of the moment, in conjunction with Treasury Department policies and the eclectic agenda of whoever occupied the White House or sat in Congress.
“Both candidates talk about repairing America’s image in the world. But it seems clear to us that Mr. Obama is far more likely to do that -- and not just because the first black president would present a new face to the world…Mr. Obama wants to reform the United Nations, while Mr. McCain wants to create a new entity, the League of Democracies -- a move that would incite even fiercer anti-American furies around the world.” Like a high school ingénue, the Times obviously is concerned about whether or not the world likes America. There was a time when most of the world respected it, if not from admiration, then from a knowledge that America was not a country to be toyed with. That is not what the Times means. The Times means that America should aspire to be just another one of the guys, a socialist paradise that cares for its citizens and entertains no presumption of superiority because it is still freer and better off than other countries.
It would be interesting to know how Obama would “reform” a club of tyrants, looters, medieval monarchies, dictatorships, slave states, and ninety-pound collectivist weaklings, when they are all living off the largesse of American productivity and tax revenues and so see no need for reform. The United Nations can be best reformed by America leaving it and evicting it from American soil to headquarter in friendlier climes, but doubtless Obama would simply offer it more money in exchange for more smiles. McCain’s League of Democracies idea is equally harebrained. Apparently neither he nor the Times has any acquaintance with the League of Nations and just how efficacious it was in putting the cuffs on Hitler, Mussolini, and other tyrants.
“The next president will have the chance to appoint one or more justices to a Supreme Court that is on the brink of being dominated by a radical right wing. Mr. Obama may appoint less liberal judges than some of his followers might like, but Mr. McCain is certain to pick rigid ideologues.” The Times, of course, does not define what it means by a “radical right wing,” but implies that such a movement is scary and undesirable. It has eluded the paper’s editors all these decades that there is nothing “radical” about the right wing; it is religious and traditionalist, on a par with Ralph Kramden’s Raccoon Lodge or Groucho Marx’s Knights of Pythia. And, what are “liberal” judges if not left wing, and very rigid in their own ideology?
“Under Mr. Bush and Vice President Dick Cheney, the Constitution, the Bill of Rights, the justice system and the separation of powers have come under relentless attack. Mr. Bush chose to exploit the tragedy of Sept. 11, 2001, the moment in which he looked like the president of a unified nation, to try to place himself above the law.” This is all true, except that the “tragedy” of Sept. 11 was a declaration of war by Islamists, which Mr. Bush admitted but did nothing about except to commit the country’s blood and treasure to spreading “democracy” in places that were already practicing it in theocratic and secular tyrannies, and in the meantime laying the groundwork for a thorough-going police state in this country.
But, to the Times, President Bush placing himself above the law somehow differs morally from Mr. Obama wishing to place himself above the law. It is not known what McCain thinks of the Constitution or the Bill of Rights, except that he believes in violating the freedom of speech, but Obama has stated in public that he regrets that the Founders placed limitations on government power, and that these limitations are a fundamental flaw. Obama’s campaign has telegraphed how his administration would deal with any newspaper or radio station that questions his character, record, affiliations, or intentions. For the time being that action is limited to harassment, intimidation, and black-listing. With the cooperation of a Democratic Congress, Obama would employ not only a revived Fairness Doctrine, but other legislative and extra-legislative means as well, to silence free speech and make virtually every political utterance a “hate crime.“
For the Times to express concern about the Constitution and the Bill of Rights is laughable, since the paper would applaud their being finally torn up and the pieces tossed into its notion of the dust bin of history, and replaced with an Obama-style “social contract,” which would be indistinguishable from a McCain one.
“This country needs sensible leadership, compassionate leadership, honest leadership, and strong leadership. Barack Obama has shown that he has all those qualities.” Well, John McCain has also shown that he has them. Woe to anyone who states that he doesn’t want leadership, but to be left alone to live his own life. The Times does not go into much detail -- just as neither Obama nor McCain has dared go into much detail, but they are on the same path -- about where that leadership would lead the country. But all indications, and all evidence, comprehended by cool observation not swayed by raw emotion but by a rigorous fealty to facts, make it certain that it would be to a place the Times would too late disapprove of: censorship and totalitarianism.
There have been a lot of structural suggestions: Term limits, a ban on senators running for president (which would probably do more for the Senate than for the White House, really) and various campaign-finance schemes that look pretty iffy in light of recent experience. Term limits might shake up our gerrymandered Congress a bit and bring in some new blood, but would they bring in the right kind of new blood? That's less clear.Yes. These kinds of suggestions are, as I have often said, attempts to treat symptoms rather than the disease. This is starting to sound interesting! If you're on the same page with me, you might begin to perk up a little bit.
So while I remain open to suggestions for structural reform, I think that we may need a change in the culture.Yes! Finally! Could it be that a prominent non-Objectivist out there has finally become hip to the ideas that (a) the broader culture drives supply in electoral politics via demand, (b) the problems we are having with pandering and vote-purchasing in politics will not go away until something about our culture changes for the better, and (c) it is time to challenge the dominant approach of blind pragmatism (with an unquestioning acceptance of altruism's guiding hand)?
It's no surprise that a lot of our best political leaders distinguished themselves outside of politics before they ran for office. Perhaps we need to be encouraging an ethic of public service among our most successful, in the hopes that we'll get more people with real-world experience and proven ability at doing something besides raising money and looking good on TV. Could we do better? We're unlikely to do worse. [bold added]As he might put this himself: I mean no disrespect towards Professor Reynolds, but has he been paying any attention to this year's candidates or to the popular culture?
Heinlein has it half-right that figuring out how to vote requires an "enormous" amount of time. It does take time, it is true, to master the principles on which our nation was founded. However, once one does this, these principles greatly simplify how one approaches any subsequent election, even in today's context of massive government intrusion. Anyone who thinks that each election requires enormous amounts of study before one can vote intelligently does not understand the cognitive role of principles. [bold added]"Protect my individual rights, and do not violate them," is the basic principle by which I would want a government official to act. Yes, he would have to have some idea of what individual rights are, but it would not matter one jot whether he were a Creationist, a global warming hysteric, an animist, a Moslem, or (usually) uncomfortable thinking about scientific concepts, so long as what he did in office was guided by that principle. And, under a proper government, his power to adversely affect my life would be greatly diminished compared to what it is today.
1. George Reisman on the notion that laissez-faire capitalism is responsible for the latest economic crisis.
2. Renee Katz of Adventures In Existence has a You Tube page of her own. Somehow she survived 12 years of lower education with her ability to think independently intact. Maybe there's hope.
3. This magician/comedian is hilarious.
4. The most benevolent and revered One has been embarrassed recently by Joe the Plumber and the broadcast journalist Barbara West. Both people had the poor judgment to ask Obama or Biden tough questions. Now Joe the Plumber and Barbara West's husband are being investigated. This is what life under Obama will be -- anyone who does not toe the line will find himself subject to intimidation and character smears.
5. Interesting insight into the mind of Bill Ayers by Larry Grathwohl, an FBI informant who infiltrated the Weathermen.
If you read the whole interview, it becomes apparent that, at least to Grathwohl, Ayers is an egoist — but one who placed others at risk, counting on them to do much of the dirty work. Grathwohl notes that oftentimes Ayers left the heavy lifting to the women in the movement, while he himself wanted nothing more than to be in charge.
Power at all cost. Attack by proxy. A sense of entitlement. The arrogant notion that of course he should be in charge of the revolution and the refiguration of the country and all its citizens. A cadre of sycophants willing to follow his lead, oftentimes without question. A complete and utter disregard for the bourgeois rules of the “Establishment” — be it the law, the courts, or the principles upon which this country was founded.
Sounds to me like he built Obama into a polished, improved (in the Alinsky sense), multicultural likeness of himself — and has taught him to play the system and build his own army of political golems.
It remains to be seen just how radical Obama is, but if the worst fears of the right turn out to be justified (and if Obama wins next week), then we'll be living through the most remarkable political story our our time: a leftist radical gains the ultimate power in America in order to destroy capitalism. That's pretty damned dramatic.
6. Michael S. Malone is embarrassed to call himself a journalist.
If the current polls are correct, we are about to elect as president of the United States a man who is essentially a cipher, who has left almost no paper trail, seems to have few friends (that at least will talk) and has entire years missing out of his biography.
That isn't Sen. Obama's fault: His job is to put his best face forward. No, it is the traditional media's fault, for it alone (unlike the alternative media) has had the resources to cover this story properly, and has systematically refused to do so.
Why is this happening?
Picture yourself in your 50s in a job where you've spent 30 years working your way to the top, to the cockpit of power & only to discover that you're presiding over a dying industry. The Internet and alternative media are stealing your readers, your advertisers and your top young talent. Many of your peers shrewdly took golden parachutes and disappeared. Your job doesn't have anywhere near the power and influence it did when your started your climb. The Newspaper Guild is too weak to protect you any more, and there is a very good chance you'll lose your job before you cross that finish line, 10 years hence, of retirement and a pension.
In other words, you are facing career catastrophe -- and desperate times call for desperate measures. Even if you have to risk everything on a single Hail Mary play. Even if you have to compromise the principles that got you here. After all, newspapers and network news are doomed anyway -- all that counts is keeping them on life support until you can retire.
And then the opportunity presents itself -- an attractive young candidate whose politics likely matches yours, but more important, he offers the prospect of a transformed Washington with the power to fix everything that has gone wrong in your career.
With luck, this monolithic, single-party government will crush the alternative media via a revived fairness doctrine, re-invigorate unions by getting rid of secret votes, and just maybe be beholden to people like you in the traditional media for getting it there.
And besides, you tell yourself, it's all for the good of the country...
Journalists in the tank for Obama because of the self-interested desperation of a dying industry? Could be.
Chief Disciple Greenspan carried this torch for the next half-century and beyond. Pro-business conservatives (not surprisingly) found great comfort in a philosophy that said squeezing every dime out of the system was not only fair, but the only moral solution. Not long after the publication of his essays in Rand's book, Greenspan was invited to become an advisor to the Nixon administration. When Ford replaced Nixon, Greenspan became the chair of the Council of Economic Advisors. And when Reagan took power, Greenspan was no longer the voice crying in the wilderness, he was the very center of the establishment. Objectivism and Conservatism had united in Market Fundamentalism, and that force was on a jihad against regulation of any kind."Chief disciple": If you have any firm convictions -- Greenspan doesn't, but we'll get to that -- you must be a mindless religious zealot. Reason can't lead to certainty. I know beyond a shadow of a doubt that I'm rational and that I am certain about nothing!

Freedom to choose
SIR – The Massachusetts system of "universal" health care remains afloat only because of hundreds of millions of dollars in federal support ("In need of desperate remedies", October 18th). One reason costs are so high in Massachusetts is that individuals are forced to purchase benefits they neither need nor want. Under any system of mandatory insurance, the state must necessarily define what constitutes an acceptable insurance policy, meaning that individuals are buying insurance on terms influenced by lobbyists and bureaucrats, rather than based on a rational assessment of their needs. If the federal government adopts the Massachusetts system on a national scale, it would merely multiply those problems fifty-fold.
Dr Paul Hsieh
Co-founder Freedom and Individual Rights in Medicine
Sedalia, Colorado
Universal Health Care: The Cure or the Disease?Unfortunately, I live in Colorado and won't be able to make it. But I encourage anyone in the Southern California area with an interest in health care policy to attend!
Thursday, October 30, 2008 (7:00pm - 9:00pm)
UCLA Campus: Moore 100
Health care has been an important issue in politics, especially in the last several years. Amidst much specific policy analysis and political quibbling over superficial issues, the fundamentals have been ignored: What are the underlying philosophic and economic considerations? Is universal health care moral? Does it achieve its stated goal? Is there an ethical and practical alternative?
Come hear Professor Mark Kleiman (UCLA Department of Public Policy) and Dr. Peter LePort, M.D. (Ayn Rand Institute Board of Directors) answer your questions about the issue of universal health care.
7:00pm: Opening Statements
7:30pm: Q & A with the Audience
Transportation Information
Parking is available for $9, available for purchase at the Parking Information Kiosk at Westwood and Strathmore.
Parking Structure 6 is in close proximity to the event location.
Please allow 30 extra minutes to secure parking and walk to the venue. Doors open at 6:30pm.
Media should contact Arthur@ClubLogic.org to RSVP for parking and priority seating
Savoring Ayn Rand's "Red Pawn" by Dina Schein is an excellent literary analysis of a great story that is little known. It's one of the best stories I have ever read, which is remarkable because it is not a novel or a short story or a script, but a treatment Ayn Rand wrote to sell the story to Hollywood. It was her first sale.
The movie was never made because it takes place in Soviet Russia and, although politics is not the subject of the story, Rand portrays communism honestly. An honest movie about communism was not possible in the 1930's, Hollywood's "red decade." Almost 80 years later, the Soviet Union no longer exists, but the movie still has not been made. Now the problem is more likely to be that filmmakers in our present culture would not know what to do with a great romantic story. In the '30's MGM, with its stable of glamorous stars and great directors, might have done the story justice; one cringes at what today's Hollywood would do to this story.
It would be criminal to spoil the plot here, so I won't say a thing about it, except that it is great drama. Rand follows her own teaching in The Art of Fiction to create an intense value-conflict that builds to stunning climax. You can read the story in The Early Ayn Rand. Certainly, you should read it before you consider listening to Dina Schein's lectures.
Dr. Schein analyzes the plot, characters and theme of "Red Pawn." She looks at how to analyze fiction, so the listener learns not just about "Red Pawn," but also about how to think about fiction in general. The course is especially useful to fiction writers, as Dr. Schein looks at Ayn Rand's fiction writing process. There are also some excellent tips for screenwriters.
I sometimes think of Ayn Rand's teachings on fiction writing as my secret weapon that most writers know nothing about. After a century of naturalism, writers have forgotten how to use value-conflicts to build a suspenseful plot that culminates in a climax. They know about conflict, but they give it little thought beyond something like, "the bad guy wants to destroy the world and the good guy wants to stop him." And it would be the better ones, who want to write an exciting plot, who think that much. Without a conscious understanding of value-conflicts, it's easy for a plot writer to get bogged down in trivia or sidetracked by nonessential matters.
I heard a radio morning show in which the DJ's and their callers were outraged over a Wall Street firm that received bailout money from the US government, then sent its executives to a posh spa for a retreat that cost tens of thousands of dollars. Everyone was outraged over this irresponsible behavior. To the people on this show, here was evidence of the fundamental cause behind the financial crisis: corporate greed. The fat cats only care about themselves and that's why America is in trouble.
My reaction is different. Let's say you give a man $10, and he spends it irresponsibly. He buys cheap wine and cigarettes and spends the night in foggy dissipation. It seems to me you can reach one of two conclusions:
1. I should not give this man any more money.
2. In the future I must watch this man carefully to make sure he spends the money I give him well.
Private individuals should choose #1. Once you give someone money, it is his property. You have no power to force him to do what you want with the money. If you continue to give money to someone who wastes it, whose fault is that?
The government always chooses #2. Unlike private individuals, the government has the power to force people to act as it wishes. Not only will it watch how Wall Street spends the money the government "invests," but it will pass laws dictating what can and cannot be done with the money. With the money will come regulation.
As Ludwig von Mises explains in his brilliant little book, Bureaucracy, government has to use regulation because it is not driven by the pursuit of profit.
In the private sector, everyone pursues one goal: make a profit. A chain store does not need a bookshelf full of regulations directing store managers on how to pursue profit. Within a few simple rules such as employee uniforms and corporate image, the individual store manager is left alone to solve the problem of making a profit.
In the public sector, however, functions such as police, courts and military are not motivated by the pursuit of profit. Thus the government must write books of regulations telling employees in detail what they must do in every situation.
To the extent to which government subsidizes the financial sector, that sector becomes a government agency. Its function becomes part private and part state. Wall Street firms that take government money will have two purposes: to make a profit and to do what the government wants.
Supposedly, the government is spending a trillion dollars to keep firms from going bankrupt. In theory all this money should go toward the pursuit of profit. But watch how this government involvement grows in the coming years. The government is not driven by the pursuit of profit, but by other concerns, such as altruism, collectivism and the public good -- not to mention giving money to pressure groups in order to buy votes. Government will force Wall Street to cater to its concerns, not just to pursue a profit.
Look for a big push in the coming years to turn corporations into mini-welfare states. This trend goes back to the 1940's, when employers sought to get around confiscatory income taxes by giving employees "free" health insurance. Tying insurance to work was a disastrous unintended consequence of high taxes.
Making corporations do welfare state functions is the fascist way to socialism. Mises, writing in 1944 when the Nazis still existed, describes the totalitarian end of turning entrepreneurs into bureaucrats:
The Nazis have succeeded in entirely eliminating the profit motive from the conduct of business. In Nazi Germany there is no longer any question of free enterprise. There are no more entrepreneurs. The former entrepreneurs have been reduced to the status of Betriebsführer (shop manager). They are not free in their operation; they are bound to obey unconditionally the orders issued by the Central Board of Production Management, the Reichswirtschaftsministerium, and its subordinate district and branch offices. The government not only determines the prices and interest rates to be paid and to be asked, the height of wages and salaries, the amount to be produced and the methods to be applied in production; it allots a definite income to every shop manager, thus virtually transforming him into a salaried civil servant. This system has, but for the use of some terms, nothing in common with capitalism and a market economy. It is simply socialism of the German pattern, Zwangswirtschaft. It differs from the Russian pattern of socialism, the system of outright nationalization of all plants, only in technical matters. And it is, of course, like the Russian system, a mode of social organization that is purely authoritarian.
It's hard to imagine America getting this bad, but according to Mises it's just a matter of time before interventionism ends in totalitarian control of the economy. Intervention leads to crisis, which leads to further intervention, which leads to further crisis, which leads to... you get the idea.
"Socialism of the German pattern" has an added, irresistible benefit to politicians: they evade responsibility. They dictate to corporations what welfare state programs they must enact, but when things go wrong, the politicians blame the greedy corporations. As long as the corporations are driven in part by the profit motive, they are immoral to altruists. With each new crisis, the capitalists, "blinded by greed," will always be blamed, as noble altruists such as Hillary Clinton and John McCain preen about how they just want to help the little guy.
But there will be other unintended consequences of forcing entrepreneurs to behave like bureaucrats -- so many that it would take a book to be comprehensive. To look at just one more, Mises writes,
To say to the entrepreneur of an enterprise with limited profit chances, “Behave as the conscientious bureaucrats do,” is tantamount to telling him to shun any reform. Nobody can be at the same time a correct bureaucrat and an innovator. Progress is precisely that which the rules and regulations did not foresee; it is necessarily outside the field of bureaucratic activities.
The virtue of the profit system is that it puts on improvements a premium high enough to act as an incentive to take high risks. If this premium is removed or seriously curtailed, there cannot be any question of progress.
The more capitalists are forced to follow regulations, the less progress and innovation we will have.
This trillion dollar bailout of Wall Street will prove to be more costly than just the money involved. The financiers should have declined the money, saying, "No thanks -- we can't afford it." The greatest cost will be our liberty.
I listened to a lot of talk radio yesterday. Both Rush Limbaugh and Hugh Hewitt emphasized Obama's pro-choice in abortion stand in hopes of motivating the religious right to vote. Hewitt spent his entire show taking calls only from Catholics in battleground states, hoping to use Cardinal Rigali's message to Pennsylvia Catholics to get out the vote on the religious right. Limbaugh even expressed the wish that those who support abortion leave the party.
There was nothing from them about the creeping fascism that economic interventionism is bringing us. Clearly, both men see the Republican Party as a party of religious values first. Economic liberty, which they would both say they support (Limbaugh especially, as Hewitt views free market "extremism" as an electoral loser), is a secondary consideration.
It was a depressing experience. Here we are, nearing election day, and the Republican propagandists are getting serious. Time to motivate the troops! And so, both Hewitt and Limbaugh end up talking about how Obama wants to "kill children in the womb." Yes, we should never vote for Democrats because they want to kill children.
As a farcical ending to a disgusting day, I listened to as much of Michael Savage as I could take. The man is a conspiracy theorist. When you step back and analyze what Michael Savage says, he sounds remarkably stupid. He brought up the militia movement of the '90s, which he thinks was a good thing, and told his listeners in ominous tones that the movement was destroyed by the government. He thinks the bailout came because of a secret agreement between the politicians and their friends on Wall Street to give them hundreds of billions of dollars stolen from Main Street.
Savage also is hot on the foolish story about Obama's birth certificate. Because the certificate is not the original, but a copy, Savage thinks it is fake and that Obama was actually born in Kenya and is thus not eligible to be President of the USA.
So what if Obama's birth certificate is a copy? That's all I have. I had to pay money to the county in Kansas where I was born to get the copy. It's good enough to get me a drivers license, passport and social security card.
So here are three of the most influential propagandists of the right, with two of them telling their listeners Obama is "against life" and the lunatic third one screaming that Obama was born in Africa. Is it any wonder this country is going down the drain?
I intend to respect Rush Limbaugh's desire and leave the Republican Party. I will reregister as an Independent. It's not the party I joined 20 years ago. As Reagan once said about the Democrats, I didn't leave the party, the party left me.
A short op-ed I wrote for Fox News' Fox Forum on the threat either a McCain or Obama presidency poses to freedom is the featured commentary for the weekend. I argued that both Obama and McCain are "equally dangerous for economic freedom in America" and that "on every question, both men share the same corrupt moral premise, differing only in degree and their particular focus."I also encourage you to write a comment! You can also give it a "thumbs up" via StumbleUpon. Here's Paul's comment:
I encourage you to leave a comment there adding your own thoughts. The URL is:
http://foxforum.blogs.foxnews.com/2008/10/25/opposingviews_1024/
Thank you, Nick, for a well-argued essay!If you post a comment, you're welcome to repost it in the NoodleFood comments.
Dr. Malcom G refers to a superb lecture by Leonard Peikoff entitled, "Health Care Is Not A Right" from 1993.
There's an updated (2007) version of his talk available at the website for Freedom and Individual Rights in Medicine at:
"Health Care Is Not A Right"
http://www.westandfirm.org/Peikoff-01.html
To add to Nick's point, the biggest problem in modern American politics is the failure to recognize what individual rights are.
Rights are freedoms of actions (such as the right to free speech), not automatic claims on goods and services that must be produced by others. Individuals are legitimately entitled to services such as health care that they purchase with their own money, are promised by prior contractual agreements, or are given to them via voluntary charity.
Otherwise, government programs to guarantee health care as a "right" must necessarily violate someone's actual rights - either the rights of those compelled to provide medical care or the rights of those compelled to pay for it. Such programs then become just another form of state-sanctioned slavery or theft.
Both McCain and Obama suffer from this faulty understanding of individual rights. Both would use the power of government to trample on legitimate rights (such as the right to free speech) as well as to attempt to guarantee false entitlement "rights".
Unless Americans reaffirm the proper conception of rights as freedoms of actions (and concomitant limitations on government powers), then we'll continue our current downhill slide. A civilization will collapse if citizens decide that they can vote each other goodies from the government trough, at the expense of those who produce such goods.
The Romans learned this lesson the hard way. The big question is whether Americans will also learn this lesson before it's too late.
Paul Hsieh, MD
Freedom and Individual Rights in Medicine (FIRM)
http://www.WeStandFIRM.org
"Badgered by lawmakers, the former Federal Reserve chairman found himself denying the nation's economic crisis was his fault on Thursday but conceding the meltdown had revealed a flaw in a lifetime of economic thinking and had left him in a 'state of shocked disbelief.'"The question is: How would he know that free markets and deregulation of them would be the most efficacious means of sustaining the economy? He abandoned the free market when he became head of the Federal Reserve. Perhaps when he chose to accept that job, he imagined he could save free enterprise from the depredations of the government. Now he knows the consequences of compromise.
"Greenspan, who stepped down [as Federal Reserve chief] in 2006, acknowledged under questioning that he had made a 'mistake' in believing that banks, operating in their own self-interest, would do what was necessary to protect their shareholders and institutions....Greenspan called the role of self-interest and rationality "a flaw in the model...that defines how the world works."
"He said the boom in subprime lending occurred because of the huge demand for investment opportunities in a global economy, and he blamed the crash on a failure by investors to properly assess the risks from such mortgages, which went to borrowers with weak credit...On the billions of dollars of losses suffered by financial institutions because of their investments in subprime mortgages, Greenspan said he had been shocked by the failure of banking officials to protect their shareholders from bad loan decisions.
"'A critical pillar to market competition and free markets did break down,' Greenspan said. 'I still do not understand why it happened.'"
"...Altruism feeds the first need [in this instance, the need of the poor for subprime mortgages], statism feeds the second [in this instance, the need of power-seekers, such as Paulson, Bernanke, Waxman et al.]. Pragmatism blinds everyone -- including victims and profiteers -- not merely to the deadly nature of the process, but even to the fact that a process is going on."Which would explain why Greenspan was so "shocked."
"You had the authority to prevent irresponsible lending practices that led to the subprime-mortgage crisis. You were advised to do so by many others. And now our whole economy is paying its price. Do you feel that your ideology pushed you to make decisions that you wish you had not made?"Not a word was whispered by any of the Committee members on the possibility that perhaps the government should not have been encouraging and guaranteeing bad mortgages to any private financial institution, and that if any blame for irresponsibility is to be assigned to any quarter, it should be to the ideology subscribed to by a multitude of Congressmen, including Waxman, who endorsed the policy. Their statist ideology has "pushed" them to regulate the economy for the past century. While looking for a scapegoat or someone to blame, Congress, a succession of presidents, and innumerable bureaucrats and regulators will search everywhere but in their own houses and in their own ideologies.
"...[H]e defended the Fed's ability to detect economic trends, saying it was better than that of the private sector. 'If all those extraordinarily capable people were unable to foresee the development of this critical problem...I think we have to ask ourselves why is that?...And the answer is that we're not smart enough as people. We just cannot see that far in advance.'"That lack of omniscience is the practical reason why he should never have accepted the job of chairman of the Federal Reserve. And, apparently, all throughout his career, he either never made the connection between the moral and the practical, or he discarded the connection as mere "ideology" because it stood in the way of his "good intentions."
Capitalism is a social system based on the recognition of individual rights, including property rights, in which all property is privately owned.And now consider what Greenspan himself said of the importance of having a gold standard -- rather than the fiat money, the value of which he took charge of manipulating. As you read this, recall that he never advocated for a return to the gold standard while he was in office:
The recognition of individual rights entails the banishment of physical force from human relationships: basically, rights can be violated only by means of force. In a capitalist society, no man or group may initiate the use of physical force against others. The only function of the government, in such a society, is the task of protecting man’s rights, i.e., the task of protecting him from physical force; the government acts as the agent of man’s right of self-defense, and may use force only in retaliation and only against those who initiate its use; thus the government is the means of placing the retaliatory use of force under objective control. ("What Is Capitalism?" Capitalism: The Unknown Ideal, 19.)
Gold and economic freedom are inseparable, . . . the gold standard is an instrument of laissez-faire and . . . each implies and requires the other.And yet, the news media portray Greenspan as an advocate of capitalism and a "disciple" of Rand every chance it gets, as the San Francisco Chronicle, for example, did yesterday even as Greenspan removed all doubt that he is anything but a capitalist:
...
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold . . . .
The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. (Alan Greenspan, "Gold and Economic Freedom," Capitalism: The Unknown Ideal, 96.) [bold added]
Fed watchers said they were stunned by Greenspan's mea culpa. For his whole adult life, the former Fed chairman has been a devotee of the philosophy of Ayn Rand, who celebrated free-market capitalism as the world's most moral economic order and advocated a strict laissez-faire approach to government regulation of the marketplace.This is completely wrong. Let's rephrase it:
Fed watchers claimed to be stunned by Greenspan's mea culpa. For his whole adult life, the former central banker and one-time advocate of the gold standard has been regarded, largely due to his former association with Ayn Rand, as an advocate of capitalism. Although he never publicly broke with Rand, his career has benefited from the association even though it has required him to do things greatly at odds with his earlier published views from that period.Or, not to put too fine a point on this: "Greenspan is a pragmatist coward who hides behind Ayn Rand's skirt when it suits his purposes, and sells her out when it suits his purposes." Obviously, he would rather the United States continue racing towards statism than admit that he played a big part, through keeping interest rates very low for many years, in precipitating the current financial crisis.
This [crisis] was completely foreseeable and in fact many people did foresee it. One political party, in Congress and in the executive branch, tried repeatedly to tighten up the rules. The other party blocked every such attempt and tried to loosen them.Incredibly, Card notes that Greenspan was among those who warned against the loose lending practices that helped cause the crisis. And yet now, he has changed his tune:
Furthermore, Freddie Mac and Fannie Mae were making political contributions to the very members of Congress who were allowing them to make irresponsible loans. (Though why quasi-federal agencies were allowed to do so baffles me. It's as if the Pentagon were allowed to contribute to the political campaigns of congressmen who support increasing their budget.) [bold added]
Asked by committee Chairman Henry Waxman, D-Los Angeles, whether his free-market convictions pushed him to make wrong decisions, especially his failure to rein in unsafe mortgage lending practices, Greenspan replied that indeed he had found a flaw in his ideology, one that left him very distressed. "In other words, you found that your view of the world, your ideology was not right?" Waxman asked.Perhaps Greenspan needs to be reminded of the title of the book in which his defense of the gold standard appeared: Capitalism: The Unknown Ideal. Or perhaps Greenspan, realizing that most people are unaware that a central bank is incompatible with capitalism, took advantage of the convenient fact named by that title, while betraying the inconvenient one.
"Absolutely, precisely," replied Greenspan, who stepped down as Fed chief in 2006 after more than 18 years as chairman. "That's precisely the reason I was shocked, because I have been going for 40 years or more with very considerable evidence it was working exceptionally well." [bold added]
Greenspan Has No Free Market PhilosophyI can't possibly express the depth of my disgust at Alan Greenspan. Well, let me try. By continuing to associate himself with the free market ideas of his former mentor, even while thoroughly contradicting them in word and deed as Fed Chairman, and then publicly repudiating them based on a government-created financial crisis, the man has done more damage to Objectivism than Barbara and Nathaniel Branden.
October 24, 2008
Washington, D.C. --Opponents of the free market are giddy at Alan Greenspan's declaration that the financial crisis has exposed a "flaw" in his "free market ideology." Greenspan says he is "in a state of shocked disbelief" because he "looked to the self-interest of lending institutions to protect shareholder's equity"--and it didn't.
But according to Dr. Yaron Brook, executive director of the Ayn Rand Center for Individual Rights, "any belief Greenspan ever had in truly free markets was abandoned long ago. While Greenspan long ago wrote in favor of a truly free market in banking, including the gold standard that such markets always adopt, he then proceeded to work for two decades as leader and chief advocate of the Federal Reserve, which continually inflates the money supply and manipulates interest rates. Advocates of free banking understand that when the government inflates the currency, it artificially increases prices and causes booms in certain sectors of the economy, followed by inevitable busts. But not only did Greenspan lead the inflation behind the .com bubble and the real estate boom, he blamed the market for their treacherous collapses. Greenspan should have recognized that what he wrote in 1966 of the boom preceding the 1929 crash applied here: 'The excess credit which the Fed pumped into the economy spilled over into the stock market--triggering a fantastic speculative boom.' Instead, he superficially blamed 'infectious greed.'
"Should it be any shock that Greenspan now blames the free market for today's meltdown--rather than the Fed's policies, which fueled an inflationary housing boom, which rewarded reckless lenders and borrowers from Wall Street to Main Street? Greenspan didn't mention the word 'inflation' once in his testimony.
"Whatever Greenspan's economic philosophy is, it is not anything resembling a free market."
A source of mild entertainment amid the financial carnage has been watching libertarians scurrying to explain how the global financial crisis is the result of too much government intervention rather than too little...That's all by way of introduction. He follows with a bunch of haphazard facts strung together in a string of non sequiturs that I've become bored with, they're so ubiquitously offered as proof the financial crisis was caused by the "free market." So forgive me if I don't quote here the "facts" the article supposedly marshals in support of its conclusions (check out the full article if you're not easily nauseated). Weisberg concludes with slap at, of all people, Ayn Rand:
Utopians of the right, libertarians are... convinced that their ideas have yet to be tried, and that they would work beautifully if we could only just have a do-over of human history. Like all true ideologues, they find a way to interpret mounting evidence of error as proof that they were right all along.
To which the rest of us can only respond, Haven't you people done enough harm already? We have narrowly avoided a global depression and are mercifully pointed toward merely the worst recession in a long while. This is thanks to a global economic meltdown made possible by libertarian ideas.
[Emphasis in original.]
The worst thing you can say about libertarians is that they are intellectually immature, frozen in the worldview many of them absorbed from reading Ayn Rand novels in high school.This article is yet another gob-smacking exercise in tortured rationalization of the avoidance of uncomfortable facts by someone steeped in the rhetorical method not of thrust-and-parry, but avoid-and-slime. Weisberg first avoids the facts that 1) Libertarians have never run the American government, 2) it's a non sequitur to declare that financiers and corporate-welfare statists who run to the government for a bailout believe in the free market (!) and 3) Libertarianism has been rejected wholesale, outright, and damn near shrilly by Ayn Rand and the philosophy of Objectivism. Weisberg then slimes principled Objectivists as "immature" and "ideologues," and by playing on the flat ignorance of most of the public of the tenets of Objectivism. (Not to mention trotting out that tired when-are-you-going-to-grow-out-of-it smear.)
PRESS ADVISORY
AYN RAND INSTITUTE
2121 Alton Parkway, Suite 250, Irvine, CA 92606
October 15, 2008
Totalitarian Islam and the Threat to Free Speech
A panel discussion at American University
What: A panel discussion on the nature of totalitarian Islam and its threat to free speech, followed by a Q&A
Who: Yaron Brook, executive director of the Ayn Rand Institute; Daniel Pipes, director of the Middle East Forum; and Flemming Rose, cultural editor of the Danish newspaper Jyllands-Posten
Where: Ward One, Auditorium One, American University, Washington, D.C.
When: Thursday, October 23, 2008, at 6 pm
Admission is FREE and open to the public.
Description: What is the nature of totalitarian Islam--is it limited to terrorism or is it a broader movement? Are non-Muslims its only victims? Who precisely is the enemy? Does the West bear responsibility for creating this movement? What policies can defeat it?
Defenders of Islam around the world have striven to silence critics with threats, protests and acts of violence. How should the West respond to demands for censorship, as in the Danish cartoon controversy?
Panelists will address these critical issues in a lively discussion.
Bios:
Dr. Yaron Brook is executive director of the Ayn Rand Institute and a recognized Middle East expert who has written and lectured on a variety of Middle East issues. Dr. Brook has discussed the Israeli-Arab conflict and the war on Islamic totalitarianism on hundreds of radio and TV programs, including FOX News, CNN, and a C-SPAN panel of experts on terrorism.
Daniel Pipes is director of the Middle East Forum. Abroad, he appears weekly in Israel’s Jerusalem Post, Italy’s l’Opinione, Spain’s La Razón and monthly in Canada’s Globe and Mail. His Web site, DanielPipes.org, is one of the most accessed Internet sources of specialized information on the Middle East and Islam. Mr. Pipes has appeared on ABC World News, CBS Reports, Crossfire, Good Morning America, NewsHour with Jim Lehrer, Nightline, The O’Reilly Factor, The Today Show, the BBC and Al-Jazeera.
Flemming Rose is a Danish journalist, author and the cultural editor at the Danish newspaper Jyllands-Posten. In September 2005 Mr. Rose commissioned a series of cartoons depicting Prophet Muhammad. He was concerned about the tendency toward self-censorship in Europe and some Muslims’ insistence on special treatment of their religious sensitivities in the public domain, which he wanted to bring forward for debate. The backlash from Muslims around the world caused an international crisis and the Danish government experienced its worst foreign policy crisis since the Nazi occupation during WWII.
For more information: e-mail media@aynrand.org
Please note: The above event is organized, hosted and sponsored by an individual campus club. Although ARI provides financial support, educational materials and speakers for eligible student clubs, campus clubs are organizations independent of ARI. ARI does not necessarily endorse the content of the lectures and sessions offered.
Protect Citizens
By David Holcberg (USA Today, October 13, 2008)
No law should place the well-being of whales above that of humans. Even if, as environmentalists allege, the use of sonar threatens the lives and health of marine mammals, no law should prevent the Navy from using this crucial military technology.
The fundamental purpose of government in a free society is the protection of the individual rights of its citizens. If the Navy judges that sonar experiments off the coast of California are "critical to the nation's own security," and that they might increase its ability to detect such potential military threats as hostile submarines, it should do these experiments. Our national defense and our very lives may depend on it.
This attack on our Navy's ability to defend us from foreign threats is yet another example of environmental laws being used to sacrifice our interests for the alleged "rights" of animals. Once again, environmentalists are showing whose side they are on, and it is not humanity's.
Government Found Guilty of Assaulting the Economy
By David Holcberg (International Herald Tribune, October 11, 2008)
You don’t have to be a professional detective to realize who the main culprit is in today’s financial crisis. The government’s fingerprints are all over the crime scene.
The government had the motive (the widely lauded goal of promoting "affordable housing"); it had the means (the Fed’s control of interest rates and the money supply, Fannie and Freddie, the federal Community Reinvestment Act, the "too big to fail" bailout policy); and it had the opportunity (courtesy of voters who think the government should have the power to regulate and interfere with the free market and manage our entire economy).
Of course, the government can’t be arrested or put in jail, no matter how damning the evidence against it. But we should not shy away from pronouncing the "Guilty" verdict.
The Road to Fascism
October 16, 2008
Washington, D.C.--The government has announced that it plans to use $250 billion to buy ownership stakes in various U.S. financial institutions. According to the New York Times, nine major U.S. banks have already been forced into the program. “The chief executives of the nine largest banks in the United States . . . were each handed a one-page document that said they agreed to sell shares to the government, then Treasury Secretary Henry M. Paulson Jr. said they must sign it before they left. . . . ‘It was a take it or take it offer,’ said one person who was briefed on the meeting, speaking on condition of anonymity because the discussions were private. ‘Everyone knew there was only one answer’”--even though at least one institution, the relatively healthy Wells Fargo, wanted to say no.
According to Yaron Brook, executive director of the Ayn Rand Center for Individual Rights, “In herding banking executives into a room and making them an offer they couldn’t refuse, the Paulson regime took its latest and most disturbing step yet on the path to state control of the economy.
“If fascism means coercive state control over nominally private property, then there is no more chilling sign of creeping fascism in America than government’s encroachment on the lifeblood of the U.S. economy--its financial institutions. While the government assures us it will be a ‘passive investor,’ merely funneling cash into the banking system rather than dictating how banks function, this is a lie. Not only does the money come with strings attached--such as restrictions on executive compensation, dividend payments, and the types of investments banks can make--but politicians are already promising a web of further controls. As John McCain recently noted, ‘We will not merely inject billions of dollars into companies and walk away hoping for the best. We will require that those companies be reformed and restructured until they are sound assets again, and can be sold at no loss--or perhaps even a profit--to the taxpayers of America.’
“The Paulson shakedown is the latest in a rapid-fire series of government bailouts and interventions over the last several months. Our leaders claim that this virtual takeover of markets is economically necessary. But it was government control of financial markets that spawned the financial meltdown in the first place: an inflationary boom brought on by the Fed’s easy-money policies, a campaign to promote home ownership that encouraged risky loans, regulations that pushed banks to become dangerously over-leveraged, etc., etc. The response to the crisis should be to restore freedom and to disentangle government from the economy. Instead, the same mentality and the same central planners that created the financial crisis are being given far wider reign to manipulate and distort markets. We must tell our government to reverse this fascist course--now.
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Yaron Brook is executive director of the Ayn Rand Center for Individual Rights. He is a regular contributor to Forbes.com and a contributing editor of The Objective Standard. His articles have been featured in major newspapers such as USA Today, the Houston Chronicle, the Chicago Sun-Times, the Providence Journal and the Orange County Register. Dr. Brook is often interviewed on radio and is a frequent guest on a variety of national TV shows, having appeared in the new Fox Business Network, FOX News Channel, CNN, CNBC, and C-SPAN. Dr. Brook, a former finance professor, lectures on Objectivism, capitalism, business and foreign policy at college campuses, community groups and corporations across America and throughout the world.
To interview Dr. Brook or book him for your show, please contact Larry Benson:
949-222-6550, ext. 213
media@aynrandcenter.org
For more information on Objectivism’s unique point of view, go to ARC’s Web site. The Ayn Rand Center is a division of the Ayn Rand Institute and promotes the philosophy of Ayn Rand, author of “Atlas Shrugged” and “The Fountainhead.”
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PRESS ADVISORY
AYN RAND CENTER FOR INDIVIDUAL RIGHTS
555 12th Street NW, Suite 620 N, Washington, DC 20004
October 16, 2008
McBama vs. America
Who: Craig Biddle, editor and publisher of “The Objective Standard”
What: A talk examining the presidential candidates’ platforms and showing that their aims are at odds with the American ideal of individual rights. A Q&A will follow.
Where: Hilton Costa Mesa, 3050 Bristol Street, Costa Mesa, CA 92626
When: Wednesday, October 29, 2008, at 7:30 pm
Admission is FREE.
Description: While John McCain and Barack Obama struggle to distinguish themselves in terms of particular promises, it is crucial for Americans to recognize that these candidates are indistinguishable in terms of fundamentals.
In this talk, Craig Biddle, editor of “The Objective Standard,” examines the candidates’ platforms, identifies essential similarities among their proposals, and shows their aims to be manifestly at odds with the American ideal of individual rights. Mr. Biddle then zeros in on the purpose of government presumed by the candidates’ goals, shows this purpose to be an expression of a particular moral philosophy shared by these men and by most Americans, and demonstrates that this morality is the root cause of the abysmal alternative we now face. Finally, Mr. Biddle specifies the moral principles that Americans must grasp if we want to generate future candidates who will return government to its proper purpose of protecting our rights to life, liberty, property, and the pursuit of happiness.
Bio: Craig Biddle is the editor and publisher of “The Objective Standard” and the author of “Loving Life: The Morality of Self-Interest and the Facts that Support It.” In addition to writing, he lectures and teaches workshops on ethical and epistemological issues from an Objectivist perspective.
For more information on this talk, please e-mail media@aynrand.org.
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Mr. Craig Biddle is available for interviews now and after his talk.
Contact: Larry Benson
E-mail: media@aynrand.org
Phone: (949) 222-6550, ext. 213
The Ayn Rand Center (ARC) is a division of the Ayn Rand Institute and promotes the philosophy of Ayn Rand, author of “Atlas Shrugged” and “The Fountainhead.”
For more information on Objectivism’s unique point of view, go to ARC’s Web site.
Please note: ARC does not necessarily endorse the content of the lectures and sessions offered.
Jail Time for Blasphemy Under Religious Constitution
October 21, 2008
Washington, D.C. --“The 20-year jail sentence for blasphemy handed down to Sayad Kambakhsh in Afghanistan this week is the kind of outrage to be expected under any constitution that enshrines Islam as the state religion and the Koran as the supreme law of the land,” said Thomas Bowden, an analyst at the Ayn Rand Center for Individual Rights.
A council of mullahs acting under court authority had originally decreed capital punishment for Kambakhsh, a 24-year-old journalism student charged with possessing anti-Islamic books, starting un-Islamic debates in class, and downloading and distributing Internet articles saying that Muhammad ignored women’s rights. That death sentence, which was endorsed by
“In 2006, mobs of clerics were clamoring for the death of Abdul Rahman, an Afghan whose ‘crime’ was converting to Christianity,” Bowden said. “And now, Sayad Kambakhsh faces two decades in jail unless an international outcry embarrasses
“Criminal punishment of blasphemy is fundamentally unjust and outrageous, and ad hoc protests offer no long-term solution. If Islam’s stranglehold on
“But a nation that exalts mystical dogma and tribal allegiances cannot be expected to think in such terms. ‘The guy should be hanged,’ said an 18-year-old student at the
“When the Bush administration invaded
“Bush’s policy was based on his delusional belief that Afghans are as freedom-loving as Americans. But what they truly value is religion. Sayad Kambakhsh is living--at least for now--proof that religion injected into government is hostile to freedom.”
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Mr. Bowden is an analyst at the Ayn Rand Center for Individual Rights, focusing on legal issues. A former lawyer and law school instructor, who practiced for twenty years in Baltimore, Maryland, his op-eds have appeared in the Wall Street Journal, Philadelphia Inquirer, Miami Herald, Los Angeles Daily News, and many other newspapers. Mr. Bowden has given dozens of radio interviews and has appeared on FOX News Channel's Hannity & Colmes.
Thomas Bowden is available for interviews on this topic.
Contact: Larry Benson
E-mail: media@AynRandCenter.org
Phone: (949) 222-6550, ext. 213
For more information on Objectivism’s unique point of view, go to ARC’s Web site. The Ayn Rand Center promotes the philosophy of Ayn Rand, author of “Atlas Shrugged” and “The Fountainhead.”
Frontline Heats Up Global Warming Alarmism
October 22, 2008
Washington, DC --On Tuesday evening, PBS premiered Heat, a Frontline documentary exploring the economics and politics of climate change. After travelling the world interviewing corporate CEOs and political leaders, Frontline correspondent Martin Smith argues that a “huge and concerted push from government” is necessary to prevent a major catastrophe.
But according to Keith Lockitch, fellow of the Ayn Rand Center for Individual Rights: “A huge push from government on climate change would be a major catastrophe.
“One thing the documentary shows pretty clearly is the repeated failure of government economic intervention--especially in the form of policies aimed at centrally planning energy production, such as government subsidies for corn ethanol. These have distorted world food markets by diverting billions of taxpayer dollars away from investments that market participants would have freely chosen and into the production of corn for burning up in our gas tanks, with the resulting distortions to world food prices causing food riots and starvation.
“Government policies aimed at severely restricting carbon emissions would inflict a major blow to the economy. Industrial-scale energy is an indispensable, life-saving value, and currently there is simply no practical way to produce abundant carbon-free energy. Nuclear power could generate substantial amounts of electricity, but environmentalists have consistently fought it tooth and nail. And even nuclear can’t fuel the internal combustion engines of the world’s 800 million oil-powered vehicles.
“The more important point is that there is no need whatsoever to restrict carbon emissions,” said Lockitch. “The scientific jury is still out on the extent of man’s contribution to global warming. But even if we are causing large-scale changes to the climate--this is not a planetary emergency. If individuals on the free market can smoothly absorb the major transitions that occurred in moving from the horse and buggy to the automobile or the rapid population growth that accompanied the Industrial Revolution, they can adapt to large-scale climate change. The freer we are from the burdens of government intervention, the more we can continue to produce wealth, economic growth, and the means of adapting to whatever changes occur, if any.
“The irony is that the very policies that people are pushing for in the name of fighting global warming--such as a massive expansion of government control over the production and consumption of energy--would severely reduce our ability to cope with nature. This would inflict upon us an economic catastrophe far worse than anything the climate could deliver.
“The real threat we face is not the possibility of large-scale changes to the climate, but the much more dangerous possibility of drastic government policies enacted in the name of climate change.”
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Dr. Lockitch has a PhD in Physics from the University of Wisconsin at Milwaukee and is a fellow at the Ayn Rand Center for Individual Rights. His writings have appeared in publications such as the Orange County Register and the San Francisco Chronicle.
Dr. Keith Lockitch is available for interviews. To book him for your show, please contact Larry Benson: E-mail: media@AynRandCenter.org
Phone: (949) 222-6550, ext. 213
For more information on Objectivism’s unique point of view, go to ARC’s Web site. The Ayn Rand Center promotes the philosophy of Ayn Rand, author of “Atlas Shrugged” and “The Fountainhead.”
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|
Greenspan Has No Free Market Philosophy |
But according to Dr.
“Should it be any shock that Greenspan now blames the free market for today's meltdown--rather than the Fed's policies, which fueled an inflationary housing boom, which rewarded reckless lenders and borrowers from Wall Street to
“Whatever Greenspan's economic philosophy is, it is not anything resembling a free market.”
### ### ###
To interview Dr. Brook or book him for your show, please contact
949-222-6550, ext. 213
media@aynrandcenter.org
For more information on Objectivism’s unique point of view, go to ARC’s Web site. The
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There was Wilson over Hughes. And, of course, Truman over Dewey. But there's never been a surprise in presidential politics like the one that awaited Americans this morning, who woke up to discover that, somehow, John McCain had been elected president over Barack Obama.Be sure to read all the way to the punchline, and remember it if truth turns out to be stranger than fiction come the day after Election Day!
...
Meanwhile, the tsunami of youth support for Obama never materialized. Instead, it was the over-65 crowd who turned out as if the election were a five-o'clock dinner special, and who voted in record numbers for their fellow senior citizen.
"It was fear of the known versus fear of the unknown -- and fear won out," quipped one McCain aide.
Readers tell me of breaking stories, new perspectives, and counterarguments to prevailing assumptions. And this is what blogging, in turn, does to reporting. The traditional method involves a journalist searching for key sources, nurturing them, and sequestering them from his rivals. A blogger splashes gamely into a subject and dares the sources to come to him.
...
Not all of it is mere information. Much of it is also opinion and scholarship, a knowledge base that exceeds the research department of any newspaper. A good blog is your own private Wikipedia. Indeed, the most pleasant surprise of blogging has been the number of people working in law or government or academia or rearing kids at home who have real literary talent and real knowledge, and who had no outlet—until now.
To use an obvious analogy, jazz entered our civilization much later than composed, formal music. But it hasn’t replaced it; and no jazz musician would ever claim that it could. Jazz merely demands a different way of playing and listening, just as blogging requires a different mode of writing and reading. Jazz and blogging are intimate, improvisational, and individual—but also inherently collective. And the audience talks over both.
The reason they talk while listening, and comment or link while reading, is that they understand that this is a kind of music that needs to be engaged rather than merely absorbed. To listen to jazz as one would listen to an aria is to miss the point. Reading at a monitor, at a desk, or on an iPhone provokes a querulous, impatient, distracted attitude, a demand for instant, usable information, that is simply not conducive to opening a novel or a favorite magazine on the couch. Reading on paper evokes a more relaxed and meditative response. The message dictates the medium. And each medium has its place—as long as one is not mistaken for the other.
My philosophy, in essence, is the concept of man as a heroic being, with his own happiness as the moral purpose of his life, with productive achievement as his noblest activity, and reason as his only absolute.So without any further delay (and in no particular order), here's this week's round-up:
"About the Author," Atlas Shrugged, Appendix.
Kevin McAllister presents Network Neutrality posted at Logical Disconnect, saying, "Having built networks for years nothing makes my blood boil more than the clamoring for "freedom" through government oversight."
Paul McKeever presents Banking and Morality: 100% Reserve versus “Fractional” Reserves posted at Paul McKeever, saying, "the issue of the ethics of reserve requirements in bank lending has been largely neglected in the Objectivist literature. This is a response to a YouTube advocate of libertarian/anarcho-capitalist "free banking" who thinks Objectivists ought not to condemn the fractional reserve system, and who thinks that everything would be fine if we just got rid of central banks."
Guy Barnett presents Give Peace a Chance? posted at The Undercurrent, saying, "Are Jewish-Arab rock bands the key to peace in the Middle East?"
Rob Abiera presents My latest LTE posted at The Morality War, saying, "My effort to take advantage of an opportunity to counter the message that the economic crisis was caused by selfish greed comes to naught when my letter to my local paper is returned unread because it's over the word limit!"
Noah Stahl presents The Latest Diplomatic Tactic: Make-Believe posted at The Undercurrent, saying, "The U.S. has just taken North Korea off its list of state sponsors of terrorism. What is the reason for this significant change in policy?"
Adam Edwards presents No Lament for Libertarians posted at Monopoly On Reason.
Adam Edwards presents Do Not Vote posted at Monopoly On Reason.
Dan Edge presents Is Barak Obama a Socialist? posted at The Edge of Reason, saying, "In this blog post I address the question of whether or not Obama can properly be labeled a socialist, as is the common charge."
Ari Armstrong presents Amendment 48: Burton's Equivocation posted at AriArmstrong.com, saying, "Kristi Burton, sponsor of the measure that would define a fertilized egg as a person in Colorado's constitution, continues to ignore the relevant biological facts and the legal implications of the measure."
Myrhaf presents The Myrhaf Endorsement: Abstain posted at Myrhaf, saying, "Here is an explanation of how I will vote."
Paul Hsieh presents Force That Isn't Force posted at NoodleFood, saying, "A prime example of conceptual "package dealing"."
Brandon Byrd presents Getting Rand Wrong posted at NoodleFood.
Diana Hsieh presents Diana Hsieh in the New York Times posted at NoodleFood, saying, "The Coalition for Secular Government makes a brief appearance in a a New York Times "On Religion" column about Colorado's Amendment 48."
C. August presents Goodbye Gridlock posted at The Rule of Reason, saying, "With a looming supermajority from the Left, are we about to see a new New Deal play out with Obama as the 'new and improved' FDR?"
C. August presents Obama's Greenmail and Growing Glaciers posted at Titanic Deck Chairs, saying, "While a President Obama has plans to use the threat of disastrous EPA regulations to blackmail Congress into passing cap-and-trade, there is growing physical evidence that the globe isn't about melt. Would anyone care to lay odds on whether that will have any impact?"
Peter Cresswell presents Nasty, brutish - and as stupid as a political journalist posted at Not PC, saying, "When alleged economist Paul Krugman Paul Krugman got a Nobel award for earlier more rational work, most of us knew the prestige of the Nobel would be used to promote his current theme: the alleged horrors of economic freedom; and his favourite prescription: the need for bigger, more interventionist government. Who would have thought the leaders of bigger, more interventionist governments would embrace his prescription so quickly!"
Edward Cline presents Ayn Rand Avenged posted at The Rule of Reason, saying, "Answering the engineered takeover of the economy by the federal government is an unprecedented cultural phenomenon: People who read Ayn Rand’s Atlas Shrugged years ago and dismissed it but now see the parallels are filled with trepidation. All are now realizing that “the end is near.” But, the end of what?"
Nicholas Provenzo presents CAC dukes it out at Opposing Views posted at The Rule of Reason, saying, "It is my pleasure to announce that the Center for the Advancement of Capitalism has been enrolled as an expert at Opposing Views."
Doug presents Book Review: The Cure: How Capitalism Can Save American Health Care by David Gratzer posted at The Rule of Reason, saying, "The Cure: How Capitalism Can Save American Health Care is an excellent resource on health care economics and the history of health care policy."
Rational Jenn presents The AJC Gets It Dead Right posted at Rational Jenn, saying, "I think I'm finally figuring out that most politicians don't use words to express actual ideas. I know--I'm a little slow on the uptake here."
Kendall Justiniano presents My Hero Anna Schwartz posted at The Crucible & Column, saying, "Milton Friedman's co-author of the influential "A Monetary History of the United States" weighs in on the financial crisis and makes so many good points that she hits not a double or a triple, but knocks it out of the park for a... a... what do you call it when you get to fifth base? I love you Anna!"
Tom Stelene presents If Prager Knew What He Was Writing About: A Reply to "If There Is No God" posted at Al-Kafir Akbar!.
That concludes this edition of the Objectivist Round-Up. Submit your blog article to the next edition using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
Technorati tags: objectivist round up, blog carnival.

Thank you for sending this. The entire process took me nine years and about $15k. The time, energy and money spent on becoming an American citizen was the best investment by far that I ever made. I have far more freedom to pursue my intellectual and career goals in the USA compared to any other country.I completely agree.
Also our [child] would likely not have survived if [my wife and I] had not had access to the home fetal monitoring technology developed by Michael Katz in San Francisco. The home fetal monitoring picked up premature labor several times including the preterm labor before delivery. The doctors were able to give steroids to improve lung maturity and delay the Caesarian section. This technology would never have available in Canada.
I shudder at how our life might have turned out if we stayed in Canada.
I think the USA has a moral obligation to liberalize immigration. If someone wants to work and someone wants to hire him and they are not shmucks or scoundrels we should allow them to make their own choice.
[L]icensing is nothing more than legalized thuggery. Coercion is used to prevent entry into a profession and impose higher costs on consumers. If a contractor beat up a competitor at the paint store he would be charged with battery. If he took money from a customer he would be charged with theft. The nature of his actions do not change simply because he uses government coercion in the form of licensing as his proxy.This is in addition to the fact that it fails to achieve its alleged purpose, the protection of consumers from incompetents.
While on vacation last month, I kept spotting "Free Public WiFi" ad-hoc nodes wherever I went, particularly in airports.I once even spotted one of these nodes during a flight....
Finally, my wife mentioned that she was in her office building the other, opened her notebook looking for connectivity and saw "Free Public WiFi". She connected to it, but was unable to get anywhere.
So what are these things? In doing a search, I found some references in security-related discussion groups to the phenomenon, and lots of instances of people spotting these, even on airplanes. But didn't see what I was afraid I'd find -- that this is some kind of virus or spyware that sets up an ad hoc network as a trap.
It appears to be a manifestation of a feature of Windows that I wrote about earlier this year. When Windows connects to a network, it retains that network's name, or SSID, then broadcasts its as an ad hoc network, essentially inviting a connection. You can find more details here. Microsoft has said it will fix this in the next XP service pack; it's unclear if Windows Vista behaves this way.
So why do you see so many of these? My theory: It's viral, but not a virus!

There's been a mackerel economy in federal prisons since about 2004, former inmates and some prison consultants say. That's when federal prisons prohibited smoking and, by default, the cigarette pack, which was the earlier gold standard.It's interesting that these prisoners understand the need for a stable objective medium of economic exchange far better than the US government which is incarcerating them, even though few of those prisoners have studied articles such as, "Gold and Economic Freedom" in Capitalism: The Unknown Ideal which explain the importance of a gold standard.
Prisoners need a proxy for the dollar because they're not allowed to possess cash. Money they get from prison jobs (which pay a maximum of 40 cents an hour, according to the Federal Bureau of Prisons) or family members goes into commissary accounts that let them buy things such as food and toiletries. After the smokes disappeared, inmates turned to other items on the commissary menu to use as currency.
...[T]he mack is a good stand-in for the greenback because each can (or pouch) costs about $1 and few -- other than weight-lifters craving protein -- want to eat it.
1) Perhaps it's the US economy that is based "fishy" premises, not the prison economy.(Via Marginal Revolution.)
2) Perhaps more US government officials need to spend some time in a federal penitentiary -- they may learn an important lesson about sound money (as well as some well-deserved lessons on other subjects.)
Terry Goodkind's first novel Wizard's First Rule is the basis for the mini-series "The Legend of the Seeker." The Sam Raimi of Spiderman fame is the executive producer. The series is syndicated so times and stations vary, but it is on WGN, so most cable systems will have it.I'm definitely planning to watch it!
The series starts the weekend of November 1, but an introduction with footage from the first episode starts October 18. It is called "The Making of a Legend" and is hosted by Lucy Lawless. Local listings for the introduction and the series are available here.
While Goodkind was not an Objectivist when he wrote the novel he has been closely involved in the production and I'd anticipate that the non-Objectivist portions have been fixed. I have read all of the novels and have followed the publicity about the making of the mini-series and am extremely excited about watching the upcoming series. Even if you haven't followed the series I'd recommend watching for anyone who likes fantasy shows, or even Objectivists who aren't really fans of the genre. I wasn't before I discovered the series.
If you're not like totally into politics? I mean, if you can't like name both the Vice-Presidential candidates, or if you can't name even the Presidential candidates, or if you're uncertain as to what I'm talking about here, don't worry about it. It's totally cool. Only geeks keep track of that stuff anyway. But here's the really cool part: you should not worry about it. Forget about it, man. Play video games and watch TV. And when the voting day comes -- I won't bother you with the date, because it's better you remain vague about it -- just stay in bed. Don't worry about voting. It's cool. You can leave that to other people. Who cares?
Don't listen to those self-righteous poseurs who tell you that you have a responsibility to vote. You don't have to vote if you don't want to. It's called freedom. And forget that stuff about how you won't have the right to speak out for the next two years if you don't vote today. You can say whatever you want, but mostly you have better things to talk about anyway, so blow off those idiots.
Don't let any of those clowns make you feel guilty for not voting. The opposite of what they say is true: if you don't vote, you are serving your country. You are helping America if you don't vote, because only informed citizens should vote. You don't want all that hassle of learning about the candidates and the issues. There's nothing wrong with that. Really. Just stay home, put on some tunes and fire up the bong. Fuck voting.
This has been a public service announcement.
Anna Schwartz co-authored "A Monetary History of the United States" with Milton Friedman. While the monetarists have their own issues, she gave an interview to the Wall Street Journal this week on the financial crisis, "Bernanke is Fighting the Last War, and it is superb. She made five key points that echoed themes I've been discussing in the past weeks.
First, the current Federal policies are not addressing the fundamental cause of the confidence problem. That cause is distressed balance sheets which can only be fixed by write down and recapitalization.
This is not due to a lack of money available to lend, Ms. Schwartz says, but to a lack of faith in the ability of borrowers to repay their debts. "The Fed," she argues, "has gone about as if the problem is a shortage of liquidity. That is not the basic problem. The basic problem for the markets is that [uncertainty] that the balance sheets of financial firms are credible."
So even though the Fed has flooded the credit markets with cash, spreads haven't budged because banks don't know who is still solvent and who is not. This uncertainty, says Ms. Schwartz, is "the basic problem in the credit market. Lending freezes up when lenders are uncertain that would-be borrowers have the resources to repay them. So to assume that the whole problem is inadequate liquidity bypasses the real issue."
Second, bank failures are not the end of the world, and in fact are part of the restructuring process that is needed.
In fact, by keeping otherwise insolvent banks afloat, the Federal Reserve and the Treasury have actually prolonged the crisis. "They should not be recapitalizing firms that should be shut down."
Rather, "firms that made wrong decisions should fail," she says bluntly. "You shouldn't rescue them. And once that's established as a principle, I think the market recognizes that it makes sense. Everything works much better when wrong decisions are punished and good decisions make you rich." The trouble is, "that's not the way the world has been going in recent years."
Third, the idea of "systemic risk" as a Doomsday scenario is bogus, and only propagates the "too big to fail" mindset.
Instead, we've been hearing for most of the past year about "systemic risk" -- the notion that allowing one firm to fail will cause a cascade that will take down otherwise healthy companies in its wake.
Ms. Schwartz doesn't buy it. "It's very easy when you're a market participant," she notes with a smile, "to claim that you shouldn't shut down a firm that's in really bad straits because everybody else who has lent to it will be injured. Well, if they lent to a firm that they knew was pretty rocky, that's their responsibility. And if they have to be denied repayment of their loans, well, they wished it on themselves. The [government] doesn't have to save them, just as it didn't save the stockholders and the employees of Bear Stearns. Why should they be worried about the creditors? Creditors are no more worthy of being rescued than ordinary people, who are really innocent of what's been going on."
Fourth, regardless of market forces that reacted during the buildup, one of the underlying causes was loose money policy at the FED. Anna, as a monetarist obviously focuses on this as a primary cause, but I can forgive that. I like this development, not so much for it's errors, but because of the fundamental idea that seemingly unexplainable phenomena are explainable. That mysterious "booms" are not so mysterious.
How did we get into this mess in the first place? As in the 1920s, the current "disturbance" started with a "mania." But manias always have a cause. "If you investigate individually the manias that the market has so dubbed over the years, in every case, it was expansive monetary policy that generated the boom in an asset.
"The particular asset varied from one boom to another. But the basic underlying propagator was too-easy monetary policy and too-low interest rates that induced ordinary people to say, well, it's so cheap to acquire whatever is the object of desire in an asset boom, and go ahead and acquire that object. And then of course if monetary policy tightens, the boom collapses."
And finally, on Alan Greenspan's role in the mess,
The house-price boom began with the very low interest rates in the early years of this decade under former Fed Chairman Alan Greenspan.
"Now, Alan Greenspan has issued an epilogue to his memoir, 'Time of Turbulence,' and it's about what's going on in the credit market," Ms. Schwartz says. "And he says, 'Well, it's true that monetary policy was expansive. But there was nothing that a central bank could do in those circumstances. The market would have been very much displeased, if the Fed had tightened and crushed the boom. They would have felt that it wasn't just the boom in the assets that was being terminated.'" In other words, Mr. Greenspan "absolves himself. There was no way you could really terminate the boom because you'd be doing collateral damage to areas of the economy that you don't really want to damage."
I have an entire post on the revisionist perspective that Alan Greenspan has himself put to his decisions and actions. However, every time I sit to write it, I get too infuriated to finish it. This particular account made my blood boil as it shows in his own thinking the pragmatist and sell-out he has become. And in the end in doing so he's become capitalism's worst detractor.
Thanks Anna for saying what had to be said!
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So there we were, at this boisterous, angry political rally. A critical moment came when Woody, seized by some idea, enthusiastically raised his voice above the murmur to be heard. He was cut short in mid-sentence by one of the dashiki-clad brothers-in-charge, who demanded to know how a white boy got the authority to have an opinion on what black people should be doing. A silence then fell over the room. "Who can vouch for this white boy?" asked the brother indignantly. More excruciating silence ensued. Now was my time to act. Woody turned plaintively toward me, but I would not meet his eyes. To my eternal shame, I failed to speak up for my friend, and he was forced to leave the meeting without a word having been uttered in his defense.Loury's friend had grown up with him in his neighborhood, and was of fractional black African descent, but did not have dark skin or African features. He had, however, like many such people at the time, decided to openly declare himself as black.
At the beginning of the Civil Rights Era, blacks in America faced two major problems. One problem was moral in scope, and that was racism on the part of most whites, particularly in the South. The other problem was legal: Poor treatment of blacks was legally codified into what are known as Jim Crow Laws.And, on top of that, American society at large has always been massively confused if not wrong outright about what constitutes a proper morality, and increasingly confused about the proper role of government. It is one thing to fight for the legal protection of the individual rights of blacks. It is quite another to impose a sort of retaliatory Jim Crow on everyone else to "make up for" past injustice.
The indignant brother who challenged Woody's right to speak was not merely imposing a racial test (only blacks are welcome here), he was mainly applying a loyalty test (you are either with us or against us), and this was a test that anyone present could fail through a lack of conformity with the collectively enforced political norm. I now know that denying one's genuine convictions for the sake of social acceptance is a price society often demands of the individual, and all too often we willingly pay it.Given Loury's context then, he should have vouched for his friend, but the proper response would have been for both to leave. There were many legitimate reasons the for people like Woody to openly identify as black then, but promoting supremacy of a different color was not one of them.
Growing into intellectual maturity has been, for me, largely a process of becoming free of the need to have my choices validated by the brothers. After many years I have come to understand that, until I became willing to risk the derision of the crowd, I had no chance to discover the most important truths about myself or about life -- to know my calling, to perceive my deepest value commitments, and to recognize the goals most worth striving toward.Or, as Ayn Rand once put it so perfectly: "The smallest minority on earth is the individual. Those who deny individual rights, cannot claim to be defenders of minorities."
The most important challenges and opportunities that confront any of us derive not from our cultural or sexual identities, not from our ethnic or racial conditions, but from our common human condition. I am a husband, a father, a son, a teacher, an intellectual, a citizen. In none of these roles is my race irrelevant, but neither can identity alone provide much guidance for my quest to adequately discharge these responsibilities. The particular features of one’s social condition, the external givens, merely set the stage of one's life. They do not provide a script. That script must be internally generated; it must be a product of a reflective deliberation about the meaning of this existence for which no political program or ethnic category could ever substitute. [bold added]
In defense of this socialist expansion, Bush gives us a classic A-is-non-A denial of reality: "These measures are not intended to take over the free market but to preserve it." Clearly the man doesn't even know what the "free" in "free market" means. And unfortunately neither do McCain and Obama.After seeing a headline this weekend in which Bush reportedly urged something to the effect that we should keep our economies free, my initial reaction was, "Too late!" This was followed swiftly by, "This man clearly doesn't know what the hell he is talking about."
It becomes theatre of the absurd when you consider what Obama did during the bailout. He did what always does: nothing. The guy is like the Peter Sellers character in Being There.He certainly hit that one on the head! The movie, at least, was hilarious. Its real-life sequel, if the election gives us one in an Obama Presidency, will, like most sequels, disappoint.
Interventionism (or the mixed economy or the welfare state), with bipartisan support, has America in bad shape right now. The government just voted a $1 trillion bailout of Wall Street, money to be handed out per Treasury Secretary Paulson's discretion, making him in effect America's economic dictator. Social Security is heading toward a crisis.
Look for the government to inflate the hell out of the dollar in an attempt to manage this crisis without cutting spending or raising taxes. Inflation is a hidden tax, the politicians' favorite tax. Due to widespread ignorance of economics, Americans don't understand that inflation is created by the government printing more dollars. People feel the pinch of rising prices in their wallets and they blame those greedy capitalists who keep raising prices because they are unpatriotic and just in business for their own good. This popular anger at capitalists is music to the socialists' ears.
We are very much in the position of the Weimar Republic right now. Government intervention is causing crises, yet Democrats such as Barney Frank are saying, "The private sector got us into this mess. The government has to get us out of it." The crises will expand and intensify as the government pours gasoline on the fire. America is setting itself up for that which followed the Weimar Republic: a fascist dictatorship.
Since America is the richest and most powerful nation in the world, it would likely drag the rest of the world into dark times with it. If you think depression would devastate America, a nation in which poor children's number one health problem is obesity, imagine how hard times would hit poor countries. We could be on the edge of worldwide starvation, war and the other horsemen of the apocalypse. Parts of Africa could go medieval.
This is the context as we Americans ponder how we should vote. Here is my explanation of how I will vote.
Recently, John Lewis sent an email to the Obloggers group containing this information:
In July the federal Environmental Protection Agency issued an Advance Notice of Proposed Rulemaking, which details their plan to force Americans to reduce emissions of CO2 and other so-called “greenhouse gases.” This follows on an Executive Order signed by President Bush, which was made possible by a U.S. Supreme Court decisions ruling that CO2 is a “pollutant.” (!)
This plan will strip the American people of their freedom, and place them under the control of a single, all-powerful, federal agency. Industrial permits, furnace regulations, auto emissions testing, building permits, transportation, and food production—all will fall under the boot of the EPA. Environmentalists will use lawsuits to pressure the EPA to tighten an ever-shrinking noose around the neck of every American.
This is the first and only time I have heard about this Executive Order signed by the Republican Bush. The statutory framework now exists for the EPA to dictate to every American how much CO2 he can emit. Such a broad Executive Order gives the EPA the power to control virtually every aspect of our lives, from how much we produce to how much we travel to our heating and air conditioning to our very exhalations of breath. The limits on the EPA's power will be determined by what they think they can get away with before people revolt. Using the time-tested frog-cooking method, they will start modestly and ratchet up the controls a notch at a time.
I submit that if Bush were a Democrat president, we would have heard about this totalitarian Executive Order from right-wing radio talk shows, right-wing bloggers and Fox News. The Republicans would be screaming that leftists want to destroy our freedom -- and they would be right. But Bush is a Republican, so we hear nothing. The Democrats have no reason to publicize this Executive Order because they support it; government control of every aspect of every citizen's life is The Way Things Ought To Be. Republicans have no interest in attacking Bush because it weakens their party. Talkers such as Limbaugh and Hewitt focus like a laser beam on the Democrats and, with occasional exceptions designed to counter criticism like this, they ignore Republican folly.
Gus Van Horn has detailed Bush's Statist Legacy. The first two items alone would be enough to vilify him among Republicans, were Bush a Democrat:
And don't forget that Bush, a Republican, outlawed the incandescent light bulb, a dictatorial law that is richly symbolic. I like to think that 100 years from now Bush will be remembered as the man who outlawed the light bulb.
The Ayn Rand Institute calls the recent bailout of Wall Street The Road to Fascism:
The government has announced that it plans to use $250 billion to buy ownership stakes in various U.S. financial institutions. According to the New York Times, nine major U.S. banks have already been forced into the program....
According to Yaron Brook, executive director of the Ayn Rand Center for Individual Rights, “In herding banking executives into a room and making them an offer they couldn’t refuse, the Paulson regime took its latest and most disturbing step yet on the path to state control of the economy.
“If fascism means coercive state control over nominally private property, then there is no more chilling sign of creeping fascism in America than government’s encroachment on the lifeblood of the U.S. economy—its financial institutions. While the government assures us it will be a ‘passive investor,’ merely funneling cash into the banking system rather than dictating how banks function, this is a lie. Not only does the money come with strings attached--such as restrictions on executive compensation, dividend payments, and the types of investments banks can make—but politicians are already promising a web of further controls. As John McCain recently noted, ‘We will not merely inject billions of dollars into companies and walk away hoping for the best. We will require that those companies be reformed and restructured until they are sound assets again, and can be sold at no loss—or perhaps even a profit—to the taxpayers of America.’
Note that Paulson, Bush and McCain are all Republicans. Republicans, not Democrats, are driving this fascist power grab of America's financial institutions.
This is the most important reason we should not vote for a Republican for president: When Republicans expand state intervention in the economy, no one cares. Poor, hapless Democrats! When they try to get away with a fraction of what Republicans can get away with, those same Republicans scream bloody murder. Yes, the Republicans are laughable hypocrites -- but their hypocrisy is the only thing that stops Democrats from erecting a socialist tyranny. That's the way partisan politics works in America.
Republican presidents do more damage than Democrat presidents. Among the last four presidents, the only one that did not expand government spending was the Democrat, Bill Clinton. The Republicans all spent money like drunken sailors in a Texan whore house.
This year the Republican candidate is John McCain. He gives us even more reasons not to vote Republican. Craig Biddle writes,
On the domestic front, McCain promises to “take on” the drug companies, as if those who produce and market the medicines that improve and save human lives must be fought; he promises to ration energy by means of a cap-and-trade scheme, as if the government has a moral or constitutional right to dictate how much energy a company may purchase or use; he promises to “battle” big oil, as if those who produce and deliver the lifeblood of civilization need to be defeated; he promises to “reform” Wall Street, as if those who finance the businesses that produce the goods and services on which our lives depend are thereby degenerate; he seeks to uphold the ban on drilling in ANWR, as if the government has a moral or constitutional right to prevent Americans from reshaping nature to suit their needs; and so on.
And on foreign policy,
McCain promises to “respect the collective will of our democratic allies,” as if America has no moral right to defend her citizens according to her own best judgment; and he promises to finish the “mission” of making Iraq “a functioning democracy” even if it takes “one hundred years,” as if the U.S. government has a moral or constitutional right to sacrifice American soldiers to spread democracy abroad.
Ryan Calhoun at The Dirty Kuffar reminds us that McCain is willing to reinstate the draft.
McCain has stated time and again that the only time he would support a draft would be "if World War III broke out".
As bad as Republicans are these days, McCain is even worse. He is an ideological nationalist and collectivist. He disdains the free market. He sneers at the pursuit of profit. He believes the essence of morality lies in the individual sacrificing for something greater than himself.
Another reason it would be preferable to have a Democrat president is clarity. When Republicans like Bush expand government, we do not get clarity. Instead, Democrats blame the free market rhetoric of the Republicans for the latest crisis. Thus we get talk about Reagan's "trickle down econonmics" as the cause of the meltdown in September. Under a Democrat president, the destructive policies of government intervention become clear.
By the logic of my argument I should be endorsing Obama here because Democrats are not as effective at destroying liberty in America as Republicans. I can't do it. I've never voted for a Democrat in my life, and I'll be damned if the first one I vote for is a far left radical who has allied himself with anti-Americans and then lied about it when his alliances became politically inconvenient.
Obama, a social metaphysician who prides himself on being a "blank screen" on which others can project what they want to see, is not a fringe character in the Democrat Party. He is the party. He represents most of the base. The entire party leadership has been as radicalized as Obama. If the "Reagan Democrats" understood how far left the party is (if they did not depend on the MSM for their news), they would run from the party.
It is possible that Obama, like McCain, is worse than the average politician in his party. There is the possibility that Obama is an ideological radical who -- with full, explicit consciousness -- is hiding his true intentions in order to gain power and then use the presidency to advance socialism in America. I don't think he can get far without a mandate, but I can't entirely dismiss this suspicion. But if this is true, it makes Obama only a more exaggerated version of all Democrat candidates, for every one of them since the landslide defeat of McGovern in 1972 has lied about how far left he is.
But even if we go just by what he has promised, which would add another trillion dollars to the federal budget, that alone makes him unworthy of our vote.
In voting for the lesser of two evils, there is only so much evil a voter should be asked to swallow. I will feel better about myself not voting for either Obama or McCain. Whichever one is elected, things will get worse. There are arguments for and against both men; they come out to a wash. Who knows which candidate would end up marginally worse than the other?
More important than the presidential vote is your Senate and House vote. It is important that we get Republicans in the legislature. They're the only ones that would slow down an Obama presidency. Perhaps they would moderate McCain's worst statist excesses.
I realize there is risk in my thinking. It depends on the Republicans maintaining their role as a vigorous opposition party. Fewer Republicans have the stomach for fighting every year. At some point, the party might conclude, "We're all socialists now." If so, we'll get to dictatorship a little faster than otherwise. Right now their opposition to Democrat presidents is our last hope.
Go to the polls on November 4th. Vote Republican in everything but president. Don't vote for president. Perhaps a large bloc of abstaining voters will send a message that our two major parties need to give us better candidates for whom to vote.
"We can interpret Thrasymachus, and more obviously Nietzsche and Rand, as saying that, rather like hive bees, human beings fall, by nature, into two distinct groups, the weak and the strong (or the especially clever or talented or 'chosen by destiny'), whose members must be evaluated differently, as worker bees and the drones or queens are."Um... what? Anyone with even a cursory familiarity with Rand's ideas will realize that she believes no such thing. Rand's philosophical anthropology -- her theory of human nature -- does not recognize a distinction between types of human beings. Her ethical theory evaluates individuals on the basis of their choices, not their unchosen attributes, and she appeals to a univocal standard of moral evaluation -- not to distinct standards for distinct types.
"...the ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back."(I can't resist noting that Rand held a similar view to Keynes about the importance of philosophy in history, though her insight was deeper than Keynes. Rather than viewing history as being primarily driven by political philosophy, Rand viewed metaphysics and epistemology as being much more influential. For more on Rand's insights here, consult the title essay of For the New Intellectual, as well as the title essay of Philosophy: Who Needs It. Peikoff develops Rand's insights on the philosophical motor of history in Ominous Parallels, the epilogue to Objectivism: The Philosophy of Ayn Rand, and in his forthcoming book on how epistemology shapes society.)
Low interest rates tend to stimulate borrowing from the banking system. This expansion of credit causes an expansion of the supply of money, through the money creation process in a fractional reserve banking system. This in turn leads to an unsustainable "monetary boom" during which the "artificially stimulated" borrowing seeks out diminishing investment opportunities. This boom results in widespread malinvestments, causing capital resources to be misallocated into areas which would not attract investment if the money supply remained stable. A correction or "credit crunch" -- commonly called a "recession" or "bust" -- occurs when credit creation cannot be sustained.Loose monetary policy by central banks leads to people taking on more debt than they otherwise would. Artificially low interest rates allow more credit to be extended to risky borrowers. In our current case this lead to skyrocketing real estate values, since there was an increased demand for houses (made possible by banks extending credit to more and riskier debtors). This effect is obvious enough in the case of commercial banks, which more than doubled the amount of real estate loans they made (thus allocating large amounts of resources into the real estate market -- allocations that wouldn't have occurred in a free market for money and credit.
If no changes are made, the Social Security trust fund is projected to deplete its reserves in 2041 and will begin paying out more than it collects in benefits even sooner, starting in 2017.
A strongly Democratic Congress is now likely to lay the final flagstones on the path to government-run health insurance from cradle to grave.
...Democrats could cause the economic downturn to last longer than it otherwise will by enacting regulatory overkill like Sarbanes-Oxley.
A tax-and-regulation scheme in the name of climate change is a top left-wing priority.... Without the GOP votes to help stage a filibuster, Senators from carbon-intensive states would have less ability to temper coastal liberals who answer to the green elites.
A liberal supermajority would move quickly to impose procedural advantages that could cement Democratic rule for years to come. ...the Fairness Doctrine is likely to be reimposed either by Congress or the Obama FCC. A major goal of the supermajority left would be to shut down talk radio and other voices of political opposition.
In both 1933 and 1965, liberal majorities imposed vast expansions of government that have never been repealed, and the current financial panic may give today's left another pretext to return to those heydays of welfare-state liberalism. Americans voting for "change" should know they may get far more than they ever imagined. [bold added]
Requests by Muslims to pray at work have led to clashes with employers who say they cannot accommodate the strictly scheduled prayers.Except for a badly-titled comparison of the number of such complaints by religious group, the article is even-handed in tone. It presents what an average person would see as both sides of the issue, that of the offended Moslems and that of the businessmen. The second excerpted paragraph is a good example. Few would read the article and complain of media bias, or at least that the reporting was compromised by any kind of political agenda.
The conflicts raise questions about religious rights on the job. Muslims say they are being discriminated against and are taking their complaints to the courts and the federal government. Employers say the time out for prayer can burden other workers and disrupt operations. [bold added]
I abhor racism, but I must respectfully disagree. Forbidding behavior that is immoral, but does not violate the rights of someone else, is far from being "a good idea". The purpose of government is to protect the rights of individuals from being violated by the initiation of force (or the threat thereof) from other individuals. Nothing more. Nothing less.To apply this to the topic at hand, whether an employer allows religious considerations to affect his personnel decisions is of no concern to a proper government. His business is his property, and if he wants to not employ someone just because he is Moslem (or just because he isn't), that's his right -- and his problem, if that employee is best for the job.
"They shouldn't be forced to choose between their job and their religion," says Rima Kapitan, an attorney who represents Muslim workers in Grand Island.Pardon me, but nobody "forced" anyone to make such a choice here. A Moslem who can't pray at Company A is perfectly free to seek employment at Company B. What is really happening here is that some Moslems are working to force employers, through nonobjecive law, to make hiring decisions that conflict with their very livelihoods!
“…[I]t is startling how prescient was her novel Atlas Shrugged. There is the socially responsible banker who went bust because he gave loans to those who needed them, rather than to those who could afford them. There’s the government regulation and takeovers to ensure that failed businesses keep going. There’s the unthinking desire to cling to ‘stability,’ and the consensus that it is a global problem and everyone must pull together for the common good.
“All is in denial of reality, a rejection of reason. Result: the rational is distrusted; men are guilty of being ‘unfair’ if they value competence and ‘unfeeling’ if they refuse to indulge failure. The individual is subordinated to the national, and the national to the international. If Rand is right thus far, what of the years ahead? Perhaps the motor of the world is stopping.”
“We should not have passed the bailout. Why? First, the sky clearly was not falling, at least until they did pass it, and the market has since plunged.
“Second, the market would have taken care of itself. We needed to correct this the real way, which was to let anything that really doesn’t have value be valued as such….
“Third, the government is the last entity qualified to run something as complicated as this bailout package. Name one department of government that is well run. You can’t!”
“…[B]uried in the bill is the Bicycle Commuter Act (H.R. 807, S. 2635). The bill provides a tax benefit to employers who offer cash reimbursements to employees to defray costs of riding to work. Bike commuters can use the money to pay for bicycles, accessories, safety equipment, insurance, and locker or shower fees….It’s a green initiative….”
“Abolish the withholding tax, where they take your money before you even see it, so you don’t think it’s actually yours….Abolish the Federal Reserve….We now see what happens when the fox rules the henhouse….Amend the Constitution so that bailouts of any private entity or industry are forbidden.”
“….Pelosi said Wednesday that a $150 billion economic stimulus plan is needed now because of the faltering economy and she may call the House into session after the election to pass it….Pelosi said a stimulus package would create jobs by investing in public works, increasing food stamp benefits and extending unemployment insurance for the long-term jobless.”
For decades, researchers have puzzled over why rich northern countries have cancer rates many times higher than those in developing countries -- and many have laid the blame on dangerous pollutants spewed out by industry.While that doesn't sound like a randomized, controlled study, it's still highly suggestive. For more on the importance of Vitamin D, you can check out the
But research into vitamin D is suggesting both a plausible answer to this medical puzzle and a heretical notion: that cancers and other disorders in rich countries aren't caused mainly by pollutants but by a vitamin deficiency known to be less acute or even non-existent in poor nations.
Those trying to brand contaminants as the key factor behind cancer in the West are "looking for a bogeyman that doesn't exist," argues Reinhold Vieth, professor at the Department of Nutritional Sciences at the University of Toronto and one of the world's top vitamin D experts. Instead, he says, the critical factor "is more likely a lack of vitamin D."
What's more, researchers are linking low vitamin D status to a host of other serious ailments, including multiple sclerosis, juvenile diabetes, influenza, osteoporosis and bone fractures among the elderly.
Not everyone is willing to jump on the vitamin D bandwagon just yet. Smoking and some pollutants, such as benzene and asbestos, irrefutably cause many cancers.
But perhaps the biggest bombshell about vitamin D's effects is about to go off. In June, U.S. researchers will announce the first direct link between cancer prevention and the sunshine vitamin. Their results are nothing short of astounding.
A four-year clinical trial involving 1,200 women found those taking the vitamin had about a 60-per-cent reduction in cancer incidence, compared with those who didn't take it, a drop so large -- twice the impact on cancer attributed to smoking -- it almost looks like a typographical error.
It's probably the number one most common question I get today:I've also just begun taking high quality cod liver oil and butter oil, based on the recommendation of Weston A. Price and others. (I got my supply here.) Given the cost of the butter oil, I'm definitely looking for noticeable results -- as I've heard other people report. I'm particularly hoping for an improvement to my dental health, as I'm very prone to cavities and inflamed gums. That would be huge for me.
"How much vitamin D should I take?"
Like asking for investing advice, there are no shortage of people willing to provide answers, most of them plain wrong.
The media are quick to offer advice like "Take the recommended daily allowance of 400 units per day," or "Some experts say that intake of vitamin D should be higher, as high as 2000 units per day." Or "Be sure to get your 15 minutes of midday sun."
Utter nonsense. ...
[V]itamin D requirements can range widely. I have used anywhere from 1000 units per day, all the way up to 16,000 units per day before desirable blood levels were achieved.
Vitamin D dose needs to be individualized. Factors that influence vitamin D need include body size and percent body fat (both of which increase need substantially); sex (males require, on average, 1000 units per day more than females); age (older need more); skin color (darker-skinned races require more, fairer-skinned races less); and other factors that remain ill-defined.
But these are "rules" often broken. My office experience with vitamin D now numbers nearly 1000 patients. The average female dose is 4000-5000 units per day, average male dose 6000 units per day to achieve a blood level of 60-70 ng/ml, though there are frequent exceptions. I've had 98 lb women who require 12,000 units, 300 lb men who require 1000 units, 21-year olds who require 10,000 units. (Of course, this is a Wisconsin experience. However, regional differences in dosing needs diminish as we age, since less and less vitamin D activation occurs.)
Let me reiterate: Steroid hormone-vitamin D dose needs to be individualized.
There's only one way to individualize your need for vitamin D and thereby determine your dose: Measure a blood level.
Nobody can gauge your vitamin D need by looking at you, by your skin color, size, or other simple measurement like weight or body fat. A vitamin D blood level needs to be measured specifically -- period.
Israel has announced that, if there is another round of Hezbollah rocket attacks from southern Lebanon, all the villages that the attacks come from will be destroyed. Hezbollah is ignoring the UN peacekeepers in southern Lebanon and again installing rocket storage areas in the basements of homes, or nearby. The locals are threatened with violence or death by Hezbollah if they resist, so Israel is now playing by the same rules and letting the villagers know that, yes, they are in the crossfire if the rockets go off againNow I don't know whether Israel's political leadership will actually follow through with their promise. But at least they are articulating the right principle. If Israel is attacked again by Hezbollah, then they have the moral right to strike back and end the threat even if it involves the deaths of Lebanese civilians in those villages where the rockets are coming from.

We know that young Barack Obama came under the influence of the ideas of Saul Alinsky. Alinsky was a communist who taught, as I understand it, that socialists should become part of the capitalist power structure in order to destroy it from within.
(I have my doubts as to how effective this theory is. Once you become part of the power structure, and your livelihood, your mortgage payments, your future and your children's future all depend on that structure, would you want to destroy it? The system changes radicals before they can change it. Gaining power in our mixed economy would turn communists into fascists. At worst, socialists would work to destroy everything but their power and their 401k's.)
The still unanswered question about Obama is: what does he want? Does he secretly intend to destroy capitalism from within? Or does he want power to further the welfare state like your garden variety Democrat? How radical is he?
We know one disturbing thing about Obama. He is willing to lie in order to gain power. He said Ayers was just a guy in his neighborhood. That was a lie. He said he did not know Jeremiah Wright was an anti-American radical. Larry Elder writes,
In "Dreams from My Father," Obama talks of attending the "Audacity of Hope Sermon" (pages 292-293). There is an audio book in Obama's own voice reading this passage. Obama hears Wright speak of Hiroshima and Sharpeville as examples of acts of injustice....
What is Sharpeville? In 1960, the South African apartheid government shot down unarmed protestors, killing 69 black men, women and children. Most of the dead were shot in the back, and nearly 200 more were wounded.
Obama felt no sense of outrage to hear Hiroshima and Sharpeville mentioned in the same breath. Indeed, he was so inspired by the sermon that he uses the sermon's title -- "Audacity of Hope" -- for his second book, and as the theme of his campaign!
I would have run from Wright. Only an anti-American radical would liken Hiroshima to Sharpeville. Obama forged an alliance with the man, then lied about it when Wright became politically inconvenient.
Rush Limbaugh made an interesting observation of Obama yesterday. Obama is being praised for keeping his cool in the debates. Rush said Obama is not cool, he is cold. This is true. He keeps his emotions so controlled that he comes off passionless and reserved. It makes him hard to read. He seems to have made a conscious decision to create a persona of "presidential temperament," which is a front intended to reassure voters that he is no wild-eyed radical. It makes me more suspicious that he is hiding his true intentions -- which brings us back to my original question. What does he want?
I've linked to this several times, but we would do well to remember it:
His mild-mannered style has thrown off even some angry black radicals, who want him to speak out more forcefully about the legacy of U.S. racism and economic inequality.
One is Princeton professor Cornel West, a militant black and self-described socialist. Reportedly, West was reluctant to join the refined Obama's presidential campaign until Obama took him aside and explained to him that he had to walk a rhetorical tightrope to reassure whites. West is now solidly on board his campaign as an adviser.
Another thing worries me. We have seen in Obama's campaign a brazen new approach to political success that seems to be working (Obama's election as President will be the fruit of this new approach). Here's how it works. Obama will lie and depend on the MSM to let the lie rest uncontested. Then he will accuse his opponents of lying, which is taken up by the MSM and the left side of the blogosphere. Finally, Obama's opponents are smeared as racists or full of hatred if they stand in the Messiah's way.
The lies and smears are part of the totalitarian contempt for reason on the left that has been around a long time, but never before have we seen a candidate so willing to lie (and so good at it) coupled with a media so willing to make his lies the accepted "narrative." The left believes that the truth is irrevelant; politics is the conflict to establish your narrative over your opponent's narrative. The next step will be shutting up conservative talk radio and developing a brown shirt force to use force and intimidation against all those capitalists too blinded by greed to understand that they exist as sheep to be sacrificed to the state.
(The foolish George W. Bush has given statist Presidents a new tool to use in any ginned up "crisis":
On October 17, 2006, President Bush signed into law the John Warner Defense Authorization Act of 2007. The new law allows the President to declare a “public emergency” at his own discretion, and place federal troops anywhere throughout the United States. Under this law, the President also now has the authority to federalize National Guard troops without the consent of Governors, in order to restore “public order.” The President can now deploy federal troops to U.S. cities, which eliminates the 1878 Posse Comitatus Act. In short, Bush can now declare Martial Law anytime he pleases.)
Another troubling trend has been the collapse of the conservatives. As altruists they are intellectually helpless against any expansion of state power framed as helping the needy among us. Every year fewer conservatives bother to oppose big government. The more voters depend on government handouts, the harder it is for politicians to advocate any cut in spending.
The trends on the left and the right indicate that we are entering a new period in America. This new period will see the spread of state power and the death of our freedoms, one by one.
Whether or not Obama consciously wants to destroy freedom in America -- and I think that as a "blank screen" he has become more a mixed economy Democrat than any communist -- the welfare state is doing it anyway, crisis by crisis.
With their trust in the power of reason, atheists might also be ill-equipped for the gritty work of retail politics -- the phone banks, the door-knocking, the car pools to the polls. If nothing else, they are coming late to the craft.It's true: my battle is philosophical. Support for Amendment 48 is rooted in the deeply-held but false belief that "life begins at conception." (By that, people mean that a new person, with the right to life, is created at conception.) Recent polls show that, of likely Colorado voters, 41% believe that "life begins at conception" and 39% support Amendment 48. The overlap is not coincidental. So as I said in a recent press release for the Coalition for Secular Government:
As founder and leader of a Colorado-based coalition for secular government, Diana Hsieh has written a detailed position paper attacking Amendment 48. Other atheist activists have written letters to the editor and participated in online forums about the ballot measure. Relatively few, however, have thrown themselves into the get-out-the-vote operations that conservative Christians, for instance, have excelled at.
"We need to get more of our people out," said Ms. Hsieh, 33, a doctoral candidate in philosophy at the University of Colorado. "It's just not the strategy I've taken. I'm a policy-wonk type. Going to talk to people outside the grocery store is just not going to be my strong suit."
To effectively combat measures like Amendment 48, the whole 'pro-life' ideology must be challenged at its root... Reproductive rights must be defended on principle, based on the objective facts of human nature. With regard to abortion, the fact is that a fetus or embryo is only a potential person so long as encased within and dependent on the woman. Once born, the infant is a new individual person with the right to life. That view ought to be the basis for the laws of a free society. Any alternative -- any attempt to grant rights to the embryo or fetus -- would violate the rights of pregnant women.While I don't dispute with the importance of "retail politics" for winning elections, the defeat of the religious right in Colorado will require sustained philosophic arguments about the nature, source, and scope of rights. I'm pleased with what I've been able to do on that score so far. And once I finish my Ph.D at Boulder this spring, I'll be able to do far more than I can now. Nonetheless, I hope to never stand outside a grocery store arguing abortion with random passersby!
What is the Objectivist stand on "right-to-work" laws?Ari Armstrong has more on his blog.
As advocates of laissez-faire capitalism, Objectivists are opposed to any legislation that abridges the freedom of production and trade. We are, therefore, opposed to the "right-to-work" laws.
The "right-to-work" laws prohibit employers and unions from contractually agreeing to and stipulating a closed and/or union shop. As such, these laws clearly represent an infringement of the rights of the parties involved; these laws rest on the principle that the government has the right to prescribe the terms of contractual agreements-which is a Statist concept. In a free society, an employer who voluntarily negotiates with a voluntary union, may sign any agreement with the union that he wishes. Although it is doubtful whether a closed and/or union shop agreement would ever be economically wise, that choice is the employer's to make. No one's rights are infringed by such an agreement; a worker does not have a "right" to a job with a given employer; if he does not or cannot meet the employer's terms, he is free to seek employment elsewhere.
Many "conservatives" champion "right-to-work" laws on the ground that today unions are so powerful they can virtually compel an employer's agreement to a closed and/or union shop. It is true that unions have such power. But they acquired it only by virtue of legislation, which had the effect of forcing men into unions whether they wished to join or not and of forcing employers to deal with these unions. Unions did not and could not achieve, in a free society, the monopolistic, destructive power they possess in today's "mixed economy." The guilty party is not unionism as such, but government controls.
The solution lies, not in passing new laws, but in repealing the laws that caused the disaster in the first place.
The defenders of freedom do not serve their own cause by trying to fight their battle on the enemy's terms, that is, by deciding that the solution to the evil of government intervention in the economy is more government intervention.
In response to last week's passage of the financial bailout legislation, I've taken the liberty of acquiring the domain name repealthebailout.net and creating a rudimentary website. It can be found here:Tony has done a fantastic job with Repeal the Bailout. Kudos to him! Please do point people to it in any writing you do about the financial crisis, e.g. in e-mail discussions, comments on news stories, comments on blogs, and the like.
www.repealthebailout.net
Right now, it's more or less just a skeleton, consisting mainly of links to various articles on the subject. However, I have a strong suspicion that last week's bailout isn't the last one we're going to be facing, and that the website may continue to be relevant for some time to come. I plan to try to update it steadily as my (unfortunately limited) time allows, both with original material and with new and timely links.
I'm interested in feedback and thoughts on what I've (hastily) thrown together so far, so please feel free to respond to me (preferably directly, so as not to clutter the list) if you have any. I'm also interested in new and useful links as well as original contributions if you have any to offer or suggest.
Thanks -- Tony Donadio
Regarding the Oct. 14 Opinion piece, "Amid Palin hype, a pro-life feminist's dilemma": "Pro-life feminism" is a contradiction in terms. A woman who would deprive other women of control over their own bodies, by legally compelling them to carry pregnancies to term against their will, is not a credible advocate of women's rights.Unfortunately, it's not available online yet. (It was definitely printed today, as I have a hard copy in front of me. Paul subscribes, as it's a great little newspaper.)
Abortion is not an easy choice for any woman, and it would be a good thing if the need for it were minimized through conscientious use of contraception. But the claim that a fetus is a person under the law has intolerable implications. A fetal "right to life" would define doctors who perform abortions, and women who undergo them, as murderers. This would be the case even for women who became pregnant through rape, or who were carrying profoundly defective children.
The law should protect the pregnant woman's right to decide what to do. Any other policy is opposed both to feminism and to the broader concept of individual rights.
William H. Stoddard
San Diego
Ben Smith received this email from a Republican consultant who ran a focus group that watched an ad attacking Obama:
Reagan Dems and Independents. Call them blue-collar plus. Slightly more Target than Walmart.
Yes, the spot worked. Yes, they believed the charges against Obama. Yes, they actually think he's too liberal, consorts with bad people and WON'T BE A GOOD PRESIDENT...but they STILL don't give a f***. They said right out, "He won't do anything better than McCain" but they're STILL voting for Obama.
The two most unreal moments of my professional life of watching focus groups:
54 year-old white male, voted Kerry '04, Bush '00, Dole '96, hunter, NASCAR fan...hard for Obama said: "I'm gonna hate him the minute I vote for him. He's gonna be a bad president. But I won't ever vote for another god-damn Republican. I want the government to take over all of Wall Street and bankers and the car companies and Wal-Mart run this county like we used to when Reagan was President."
The next was a woman, late 50s, Democrat but strongly pro-life. Loved B. and H. Clinton, loved Bush in 2000. "Well, I don't know much about this terrorist group Barack used to be in with that Weather guy but I'm sick of paying for health insurance at work and that's why I'm supporting Barack."
I felt like I was taking crazy pills. I sat on the other side of the glass and realized...this really is the Apocalypse. The Seventh Seal is broken and its time for eight years of pure, delicious crazy....
If these people are at all representative of the thinking among the American electorate at large...
Be afraid. Be very afraid.
The last debate starts in an hour or so. I can't do it. Really. I'll be ill if I try. After watching the last several weeks of incredible resurgence of statism with government intervention in the economy, it really doesn't matter what the candidates say.
I was tempted for a while to vote McCain, just because the economic crisis is so bad, and potentially will be so devastating if mishandled. My hope was that there was some semblance of basic economics somewhere in his camp. However, after reading about what Roosevelt promised regarding monetary policy and what he actually did after elected (which you can find in this publication: The Great Myths of the Great Depression) it's clear to me that a vote for a pragmatist who says he's for the free market, and consistently bashes it in word and deed is no vote at all. The Republicans are slaves to religion and a pragmatist like McCain will go wherever his handler lead him, and a Democratic Legislative and Executive can only do no good. There is no choice this year. I'm sitting this one out. I'll use the time to pen a few letters to my congressman, and maybe some Letters to the Editor.
Today I read of the heavy handed tactics used by Treasury on our nine largest banks. I read of force used to take ownership rights in banks in exchange for capital. Forced used on both good banks and bad banks alike, and capital thrust upon good banks that didn't need or want it. You should read some of the account here. It is chilling.
The only difference between Hank Paulson and Hugo Chavez is that Paulson "feels badly" about what he's done. Our uniquely American statism takes the form of a seemingly, concerned, reluctant paternalism. Here, instead of the stern dictator, we have the "reluctant father." Never mind that both have to punish their misbehaving children, in exactly the same fashion.
But I digress. On to the topic at hand.
Megan McCardle almost had me last week, but not this week. She's all concerned about something in the market called "systemic risk," and thinks that this is cause for some form of government regulation of the financial markets. For those of you who don't know finance, systemic risk is risk that an entire financial system is subject to. It is said to be the risk that you cannot eliminate through diversification. This concept however has become the basis for similar thinking as it's cousin in the environmental movement, namely The Doomsday Scenario. Last week this senario was posited for the commercial paper and money markets.
The thinking is that these systemic risks threaten the very existence of the financial markets, and because the markets move so fast that it is possible the once they near this point, that it will be impossible to stop the financial system from imploding. Therefore one needs to regulate the markets in such a way that they stay away from these systemic "cliffs." While markets do move quickly, and can get themselves into trouble, it is fallacious to then posit that the outcome is catastrophic, and that it even can be mitigated by government action.
I'm not suggesting that such risk doesn't exist, but I am seriously questioning that idea that one can mitigate it by regulation. Forgetting for a second that governments themselves are subject to systemic risks, that their meddling can in and of itself be a systemic risk through their unintended consequences (as is the case in this crisis), and that systemic risks are in part unmitigatable because the are unforseeable (which makes one wonder how one regulates against them). The argument that caught me off guard was her thoughts on why governments are uniquely qualified to do the damage control when a crisis hits.
In her discussion on the crisis with Yves Smith of Naked Capitalism (whose blog I have come to rely on for its up to the minute detailed information on this crisis, and who is "gobsmacked" at the Paulson bailout. For her take on why the bailout won't work see her BloggingHeads with McCardle - 18:00. It's quite good.) Megan posits (bold mine),
One of the core issues here, I think what the government is really good at in doing this kind of regulation is first of all it's great at transparency and it's really good at coordination. And so some of the things that people are suggesting, like Luigi Zengales is saying 'look just force people to do an equity transfer' and the reason you want the government to do this is that anyone who does it by themselves sends a bad signal to the market, but if you force everyone to recapitalize at once, then there's no signaling of [balance sheet problems].... But the government is really good at that stuff, when you have a collective action problem in the financial markets which you often do. (passage starts at 38:30, the whole discussion of systemic risk starts at 28:00)
My first response to this was "hmm, ok, yes government can generate broad, unified action." It is of course telling that she uses the word "force" since that is the mechanism by which government accomplishes "unified" action. And it is true that this crisis needs such action. I spent a day noodling on that problem, until one of my favorite capitalists, J.P. Morgan, gave me the answer. Back to my post of last week, Morgan's answer to the crisis of 1907 was to bring all bankers together, turn out balance sheets, and restructure them with capital infusions and write-downs.
In a sense the action required here is the same, a unified action, involving all main banks, restructuring through write-downs and capital infusions. A free market could do this on it's own. Treasury might be able to do it, but it inherently requires nationalization. So why isn't the free market acting? Why is government supposedly better at such action? Because if bank heads do this today, it goes by the term collusion, and it is patently illegal, but it should not be! Government is better at it because it has made the act of doing it illegal for all but itself. Also, for the CEO who has managed his bank poorly, the free market option means he will lose his firm. Such a person, acting pragmatically, would rather hold out for a government bail-out, even if he risks bankruptcy. Implied government action creates that moral hazard that prevents these free market led negotiations!
A "collective action" problem is better handled by the free market, but today, such action is illegal. It should not be. The truth is that instead of Henry Paulson forcing good banks to accept nationalization, it is the good banks who should be presiding over the recapitalization of their more poorly-run brethren.
Lasseiz faire!
"The needs of our economy require that our financial institutions not take this new capital to hoard it, but to deploy it," Mr. Paulson said, who offered some details of the plan along with the Federal Reserve chairman, Ben S. Bernanke, and the chairman of the Federal Deposit Insurance Corporation, Sheila C. Bair.[links dropped]This is bad, but nothing new yet.
On Monday, big banks agreed to take investments totaling about $125 billion. Citigroup and JPMorgan Chase will receive $25 billion each. Bank of America, which is acquiring Merrill Lynch, and Wells Fargo, w