We are developing the social individualist meta-context for the future. From the very serious to the extremely frivolous... lets see what is on the mind of the Samizdata people.
Samizdata, derived from Samizdat /n. - a system of clandestine publication of banned literature in the USSR [Russ.,= self-publishing house]
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…is not so completely wonderful as all that. As I understand it arbitrage is a zero sum game. As I never tire of pointing out – um, no, as I’m sick and tired of pointing out but keep doing it anyway – the wider world of laissez faire is a win-win game. Warm. Loving. Huggy. Capitalism. It’s a metacontext thing, Perry, like in your opening essay.
Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.
-William Pitt (1783)
Sadly we don’t hear British prime ministers echoing those sentiments these days
… it can also lead to an interesting world view.
Arbitrage is an artful way to make money. When two (or more) items have a historical range of price relationship between them, temporary changes in these relationships provide an opportunity for profit. Often the relationships between the two different products is obscure, very indirect and sometimes quite counterintuitive. Yet many an arbitrageur (or just ‘arb’ as they are often known) has grown slowly and unflamboyantly wealthy, not in the high drama the great bull or bear markets, but just by watching relative price movements in products as diverse and seemingly unrelated as soybean oil and pork belly futures.
The same approach can be taken in other areas of endeavour too.
Globalization has brought many interesting and exciting things in its wake, not to mention hitherto unprecedented prosperity to more people on the planet than ever before. Capital is now almost totally fungible at the push of a button and this has had the effect of creating an interesting market. The sovereign law market.
I wrote about the most glaring example of this yesterday. States like to pass laws that say what their subject populations can and cannot say, write or publish. Yet now, people who wish to publish views that their local laws say are illegal have merely to host them on a server in some other country and viola! The ‘illegal’ views are on display for anyone who wishes to read them and there is not a damn thing the state can do about it. Information too is now fungible: if you can’t publish a dead tree pamphlet, a website will do just fine.
Which brings us again to laws. It use to matter very little in a nation what the laws were in some other country. But in this era of downloadable virtualized products, excellent communications, cosmopolitan entrepreneurship, ubiquitous spoken English and mobile capital, there is increasingly little reason why a business should be set up in a place which chooses to slather on tax and regulatory burdens. We are entering an era of the arbitrage of laws. Are the employment laws better in the Philippines or India? India eh? Ok, lets relocate our call centre from Los Angeles to India. What about corporate taxes? Ok, move the company’s brass plate to the British Virgin Islands. Where are the best programmers? Prague? Ok, lets outsource to a Czech codehaus…they even have the best beer there. Where will our data be safe? USA? Ok, I know a nice server farm in Fresno…yes, they have their own power generators…etc.
Rather than ‘investing’ a business in a single ‘national’ economy, the sovereign law arbitrageur modularizes and virtualizes and invests wherever their particular needs are best met by the state for that aspect of their business. No longer does he have to take a one-size fits all/one nation fits all approach. Analogous to arbitrage, this approach does not yield the big bucks won or lost by hitching one’s fortunes to a single state…yet by simply opting out of unreasonable laws by moving modularized companies to where they are best looked after (i.e. left the hell alone), capital is allowed to work more effectively.
The future is dispersed, virtual, anational and the bits send each other e-mail in English…even when one bit is in Calcutta and the other in Prague and they are talking about a client in New York. Of course an added bonus is driving the theft enforcement arm of several states utterly crazy trying to figure out not just how to tax you but just who the hell ‘you’ actually are!
The future is closer than you might think.
Reality very often outdoes imagination. Tom Clancy said in a September interview that he could never have sold a story whose plot depended upon 19 suicidal, homicidal maniacs working as a team. Black humour on the net in both verbal and cartoon form soon toyed with the concept of training camps for bin Laden’s crack suicide squads. They posed the weighty question: “How can they have a final exam?”
With the assistance of CNN’s crack reporting squads, we now know the answer:
Northern Alliance commanders said pockets of Taliban fighters continued to fight, some taking shelter in bombed-out buildings, while other Taliban trapped behind the opposition advance were blowing themselves up with hand grenades and land mines, rather than surrendering.
I guess they passed.
It is the mark of an educated mind to be able to entertain a thought without accepting it.
– Aristotle (384-322 B.C.)
An article in Wired reports a victory against the ‘forces of darkness’ with a US court refusing to allow the French state to impose Internet restrictions across the world. Does this mean I think wacko groups like the KKK or Nazi historical fantasists are ok? No I don’t. However I do not want my judgement and prejudices to have force of law, unlike the lawyer for the forces of statist authoritarianism, Stephane Lilti.
“If this ruling, which we will appeal against in the United States, is upheld, it will give total impunity to all those who seek technological asylum in the United States,” Stephane Lilti told Reuters. “This would make America a haven for all types of people on the extreme right and racists … for us French it will be extremely difficult to ensure our justice system’s decisions are respected because we will be dealing with someone who can take refuge in a U.S. computer.”
Excellent. Every time we can make a repressive law in France or anywhere else unworkable, the light of liberty shines a little brighter across the entire world. Why should anyone respect the French justice system’s decisions to repress free speech? Notice Lilti does not seem to worry about ‘the extreme left’. I guess this means a post to the Internet in support of the Khmer Rouge and Pol Pot is just fine by him.
What force advocating statist lawyers like Lilti do not choose to realise is that the best way to destroy irrational buffons like the KKK is not by forcing them underground but by actually shining the light of day on them. Let them out into the open where everyone can see what preposterous little people they are by reading their own words… sort of like the way Stephane Lilti is exposed by his words as a noxious enemy of liberty who rails in fury against the rest of the world’s refusal to be a party to the repression of French internet users.
As Sinead O’Connor put it in a song:
Though their own words.
they will be exposed,
they’ve got a severe case
of the ‘Emperor’s new clothes’
So I would like to raise my glass to all you technological asylum seekers, yearning to speak free…the brave ones, the oppressed ones, the articulate ones and yes, even you stupid hateful ignorant ones.
And to those who would gag us, censor us and unplug us… fuck you
From Asia Times
From German literature Nobel laureate Guenter Grass to Swedish bestselling mystery novel author Henning Mankell, from conscience-stricken German social democrats to politically clueless French socialists, it’s all clear as daylight: The arrogant new imperialist Americans brought September 11 upon themselves; now they are arrogantly and callously bombing the hell out of one of the world’s poorest nations, ignorantly flailing about rogue-elephant style, crushing friend and foe, presumed-guilty and innocent alike. Here’s how Mankell, speaking for – ahh so many of his co-thinkers – put it: “My first thought was, oh what a horrible story. But the next thought was: I’m not surprised … I’ve seen it coming. The gap between rich and poor for many years has been growing ever larger. The poor have nothing to lose. The United States, I’m afraid, has acted arrogantly in many respects … We have to solve the problem of poverty. We have to tackle the AIDS problem. And we must strengthen the emancipation of women …”
There are variations to the theme: The Palestinians must be given their own state; globalism must be reined in; the root causes of terrorism must be addressed; indiscriminate bombing of a poverty-stricken country will only reinforce terrorist sentiments and support; terror as such is an abstraction – fighting it an impossible dilemma.
There are truths and truisms in the war critics’ and opponents’ complaints and laments. But for the better part of the less left-sophisticated populace of Western and Asian nations alike (us included), such sophistry holds little water. Mass murder was committed on September 11; 5,000 people died. There is simply no way that can or will be excused or “explained” away. To the political misfortune of leftists, greens, anti-globalists, what have you, overwhelming popular majorities want justice to be done and punishment exacted. And to their greater political misfortune, that popular sentiment will prove not merely a temporary reaction but is here to stay, it is making a profound impact on the fortunes of political leaders, and it will soon make large impacts at ballot boxes.
In the US, that’s an open and shut case. Question the manner in which President George W Bush expresses himself; but make no mistake about the support for his policies and leadership team and the confidence Americans have in the way conservatives from New York Mayor Rudi Giuliani to Defense Secretary Donald Rumsfeld have conducted themselves and conducted policy over the past two months. The very notion that they are conservatives and hence might only represent the views of one portion of the political spectrum has disappeared. What they have said and done is seen as right and just and simply representing common sense. Most of those once to the left of them have joined them. The 50:50 Bush-Gore political divide of a year ago is no more.
Similarly in Europe, there has been a political seachange. Conservative French President Jacques Chirac who politically had his back against the wall earlier this year has made a dramatic comeback. Socialist Prime Minister Lionel Jospin has barely been heard from. Conservative German social-democratic Chancellor Gerhard Schroeder enjoys the highest approval ratings of his three-year tenure; leftist critics in his own party and the Greens have found no voice or cause to oppose him. The once unimaginable, that a leading Green Party politician, parliamentary defense expert Angelika Beer, now regards the deployment of ground forces in Afghanistan as necessary, now causes barely a political ripple. The center-right government of Italian Prime Minister Silvio Berlusconi, shaky at home and once seen as a potential political menace Europe-wide, is firmly entrenched in power.
In Asia, the issue of Islam, that nations such as Indonesia and Malaysia and, of course, Pakistan have large Muslim majorities, tends to blur political perspectives. But radical Islamism, while politically noisy, is in fact on the retreat and seen as a threat to be combatted, not appeased. Pakistani President Pervez Musharraf made it a point to stop over in Turkey on his way to Europe and the US and the point will not be lost on his political friends and foes: Musharraf, educated in Turkey early in his life, has always regarded Turkish secularizer and modernizer Kemal Ataturk as the historical figure to emulate.
The global political landscape has changed vastly since September 11 and is continuing to change rapidly. It will now remain to be seen to what extent and how fast new political allegiances and strategic alliances will be able to transform openings and opportunities for construction and implementation of more rational political and economic policies into permanent realities. But for the first time since the end of the Cold War, that chance now realistically exists. The US, main target of the terrorists and their leftists sympathizers and “explainers”, will play a lead role in this transformation. However, the political constellations world-wide are now such that much of the US agenda has broad-based support rather than being seen as an imposition. Loose talk of a “new imperialism” is off the mark; it crucially ignores new realities and political forces.
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David comments:
I must confess that, after reading this, I had mixed emotions; I wavered between ecstatically happy and delirious with glee. Apart from the overwhelming satisfaction of the anti-everything mob getting it’s comeuppance there is the added delicious irony that the coup de grace has been delivered by one of their own – for what is Bin Laden except a student marxist with a ‘schmatter’ on his bonce? And to think of all the years we’ve spent arguing passionately the case for freedom and individuality…But who cares? We’ve won. Let the bells peal and pretty girls dance in the streets for we can declare Victory over Communism. Let’s get demobbed and beat our swords into nails which we can use to hammer into the coffins of the woodstockers, the flat-earthers and the 68 generation (who cares if they’re still breathing?)
But, lo soft and wait. Is this victory? Have we won? I mean, really. Look around you, comrades, for another better armed, better trained and better fed foe stalks the earth in search of tribunes to humble. I’m talking about the big NWO corporatist bugga-boo that lived and breathed fire long before Bin Laden popped his fat-lips over the parapet of history. The bugga-boo said that civil-liberties + tax havens = drugs. Now the bugga-boo says that civil-liberties + tax havens = terrorism and won’t there be oh so many crinkley mouths when this is proven, tragically, to be right?
Victory it may be but it is a victory of sorts; victory after a fashion. This is not Virginia in 1776, it is Poland in 1945
Alright, I dramatize. But on this rattling train of years those of us who have ‘Galt’s Gulch’ stamped as the destination on our tickets have always known that it lies at the very end of the line. Maybe. Next stop, Singapore?
Airbus Down Jim Bennett contacted me with an obvious correction: the DC-10 had 3 engines, not 4. Two on wing pylons and one on the empennage However he still agrees that it was a more stable configuration as one engine was near the centerline.
Yet another example of insta-correction brought to you by the magic of the global Internet…
There is not a lot of information to go on yet on the crash in Queens. That said, I am just as capable of making a fool of myself as the next pundit, so I will proceed to do so.
My instructor once told me, “What is the most dangerous part of a flight? Takeoff. The runway is behind you.” What was true of a single engine Cessna is biblical for a heavy multiengine transport. Losing an engine on takeoff means a loss of power just when you need it the most. You are trying to climb out in a high angle noise-abatement attitude. Suddenly you don’t have the power to sustain that and you are heading for a stall. Even worse, you have an asynchronous thrust and a torque that even full opposing rudder might not be able to counteract. This is especially true for a plane with two very powerful wing pylon mounted engines. When one engine stops running, your airplane wants to stop climbing and do a wingover. That’s probably what happened at O’Hare a decade or more ago when a DC-10 did just that. A DC-10 has 4 engines so one would think it might have been able to recover. But there is yet a third problem in a case like today.
Engines do fall off airplanes from time to time. Pylons are designed to break away in the worst case. But that only helps in a more normal failure, not a catastrophic failure. There is every chance that at the very instant your airplane wants to do a wingover and head straight for the ground, you will have lost all or most of your hydraulics on one side. Airplanes that size are controlled by hydraulics; the hydraulic pressure is supplied by a smaller jet engine called an Auxiliary Power Unit. I’m sure you’ve heard of APU’s on the space shuttle. Well, airliners have them too. They supply the high pressure required to move ailerons and such. If you lose pressure, you can’t control the airplane. There is redundancy, but if you’ve just lost a big chunk of aeroplane… you are toast.
It’s doubtful even a computer fly-by-wire system could have dealt with it. You can fly an airplane with control surfaces and no power or with power and no control surfaces. But if you’ve lost both?
This all begs the real question. Was it or wasn’t it? There was certainly no terrorist inside the airplane. Believe me, there is no button that says “Jettison Engine”. If reports of fire on one side during takeoff were true, then it is either a terrible accident or sabotage before the takeoff. If the problems did not show until the aircraft was off the runway, it is either a engine fault, ingestion of a Pterosaur-sized avian, sabotage… or a Stinger up the exhaust pipe.
I’m sure that someone in high places will know very soon. Personally I think it was an accident. We’ll know soon enough. The signs of a Stinger induced failure should be rather unmistakeable if present.
It is a measure of the incoherence of Marxist analysis that fascism is regarded as ‘late capitalism’ when in reality late capitalism, when we get there, will clearly have resulted in libertarianism
– Perry de Havilland
An interesting article by Saritha Prabhu, who give an nice perspective on what the war against terrorism actually means to ‘the man in the street’ in The Tennessean.
Living in an affluent western society it is easy to forget that for most of the rest of the world, when a war suddenly comes snarling across your border it is not something you only get ‘feel’ by watching the BBC or CNN.
For a libertarian angle on the Harry Potter phenomenon, check out Natalie’s blog and look for the article “Harry Potter and the Libertarian Subtext”. Most entertaining.
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Who Are We? The Samizdata people are a bunch of sinister and heavily armed globalist illuminati who seek to infect the entire world with the values of personal liberty and several property. Amongst our many crimes is a sense of humour and the intermittent use of British spelling.
We are also a varied group made up of social individualists, classical liberals, whigs, libertarians, extropians, futurists, ‘Porcupines’, Karl Popper fetishists, recovering neo-conservatives, crazed Ayn Rand worshipers, over-caffeinated Virginia Postrel devotees, witty Frédéric Bastiat wannabes, cypherpunks, minarchists, kritarchists and wild-eyed anarcho-capitalists from Britain, North America, Australia and Europe.
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