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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One issue that does not appear to have provoked a lot of discussion, at least not yet, is how the government bailouts and encouragement of mega mergers between struggling banks has created a banking industry that is, if not monopolistic in its structure, then pretty damn close to so being. Now – as I once argued four years ago (gulp!) – the fact that a firm such as a computer software house or bank is big is not, by itself, harmful. One should not confuse bigness with control over the consumer. A lot of anti-trust laws – which I believe often create more harm than they supposedly solve – are based on the mistaken idea that a firm’s being big is somehow proof of malign intent and that bigness, is, ipso facto, harmful. Well it all depends how the firm got to be big in the first place, and whether it retains its market size by continuing to offer good products that people want. For a firm to stay big at a time when barriers to entry in certain fields are being slashed by new technologies such as the internet, confusing bigness with lack of competition is a serious mistake.
Now turning to the banks, it is clear that the mergers between the likes of UK’s Lloyds and HBOS, or Bank of America and Merrill, or Wells Fargo and Wachovia, have produced a number of large banking groups with the state acting very much as the encourager of such mergers, rather than, as might have been in the case when anti-trust lawyers were on the prowl, hostile to them or at the very least, skeptical. As free marketeers like to point out, monopolies that are supported by state powers and privileges are harmful, while those that arise out of a dynamic market process tend not to be, since state-backed monopolies are the least likely to fall prey to new, nimbler competitors. Without state support, even supposedly invincible big firms, such as IBM, Ford or for that matter, Microsoft, can find their market share eroded by a newcomer.
One of the reasons why I actually favour free banking and competition in money is that it might create more banks and give the established banking sector a much-needed dose of competitive pressure. I am pleased to see that the likes of Tesco’s, the supermarket chain, is getting into banking. That is good news for the consumer, hopefully, although the haters of Big Retail might complain.
In the UK, for example, Lloyds Group, after its acquisition of HBOS, controls almost 45 per cent of the UK mortgage market. Any new entrants that can put that behemoth under pressure are to be welcomed.
Following the dreadful news about the Italian earthquake, this blog about Italy contains a mass of links to charities and organisations helping with the recovery effort in the stricken area. I have some distant Italian relations who live not far away from the area although fortunately they are all okay.
[I]n much the same way that political control of statistical data can grant the holder control over the policy agenda, so control of an individual’s personal and sensitive information can grant dominance over the individual himself. It is precisely this that, in the information age, makes identity theft such a harrowing crime: the dual sensations of violation and helplessness arising from a realisation that one is no longer in control of one’s own life. The fact of the matter is that our personal and sensitive data are the core statistics of our own unique lives and, by extension, the wholesale collection, retention and sharing of our data by government is equivalent to a state-sponsored and thereby legitimised form of identity theft.
– The Earl of Northesk
This item about the recent missile firing by North Korea reminds us that in all the attention currently being focused on the credit crunch and the policies of governments to deal with it, that geo-political threats cannot be ignored. It is, I suppose, all too easy to dismiss the leader of North Korea as some sort of harmless nut if you are living thousands of miles away. For the Japanese, who fear that a leader of a broken country might try something really stupid – as dictators tend to do – the situation is far less easy to shrug off. And Japan had better reckon without a blanket promise of support from the US in the future. I hope the anti-missile defence systems that Japan has installed are in good working order. Japan now has a pretty useful navy.
Not a happy situation. At all. Here’s an agency report on the rocket launch.
The current Guido Fawkes Quote of the Day features Andrew Neil saying, in yesterday’s Observer, how very hated the ridiculous Derek Draper (a particular Guido aversion) seems to have become, amongst the sort of people who think it worth sharing their hatreds of public figures with the likes of Andrew Neil.
But I found more interesting what Neil says about The Boat That Rocked, the new Richard Curtis movie about the pirate radio stations of old:
The pirate stations were not killed off by a Tory public-school prime minister (as in the film), but by a grammar school boy and Labour PM, Harold Wilson, and the destruction was not carried out by a Tory toff minister (as in the Curtis version), but by a left-wing toff, Tony Benn (then Labour minister in charge of the airwaves).
Yes, that’s certainly how I remember the story.
. . . the pirate stations were shut not by a stuffy Tory establishment, but by a supposedly modernising Labour government. Fact really is stranger than fiction.
I don’t think that strange, any more than I think that the lies built into Curtis’s plot are strange. “Modernising Labour governments” think that they know best how to do modernity, and are a standing menace to the real thing. Having ruined whichever bit of modernity they were obsessing about, they and their supporters then lie about that, blaming – for as long as they plausibly can – capitalism.
See also: the USSR. That was run by people who were absolutely obsessed with modernity, which they thought they could improve upon by dictatorial means. With the result that they stopped pretty much all of it dead in its tracks, apart from the stuff like concentration camps. And for decades, people like Richard Curtis told lies about that too.
The state spends vast amounts of money, yet the deficit is ‘more that predicted‘? And the recession will be ‘more severe than forecast’?
Well mate, I must be an god-damn oracle then, and Paul Marks too in fact, because it is all going pretty much exactly as we predicted and forecast.
Government policy is to suck out vast amounts of wealth from the economy and then redirect it themselves… and borrow money from whatever mugs will lend it to them… and to simply print more money like crazed counterfeiters… so the deficit grows by leaps and bounds and the economy tanks.
I find it utterly laughable that this was not the predicted, forecast and indeed desired outcome as no other outcome was even vaguely possible. Economic health was never government policy, either in the UK or the USA. The policy objective is increased political control of people’s lives (‘regulation’) via de facto nationalisation of the economy. The fact some investors actually buy into the notion such lunacy actually benefits them just adds some comic relief to the unfolding tragedy.
Government policy is working just fine.
Douglas Carswell, who is still merrily blogging away despite the happy intrusion of fatherhood, wonders whether the days of the spin doctor might be starting to fade. He says the internet is seriously starting to cut into the middleman of the spin doctor. I am not so sure about that – presumably, spinners will use the internet to try and prolong their role. But there is no doubt that spin doctors, rather like old fashioned advertisers, are seeing their roles changed, and in often uncomfortable ways, by the Internet. Look at how the traditional “gate keepers” of the media castle have been sidelined by outlets such as YouTube, for instance.
Talking of advertising, I just love the series, Mad Men.
I am not suggesting by any means that the gold standard was perfect, but if we judge it by its record, it achieved much better price stability than the disastrous inconvertible paper money standard that replaced it.
Unfortunately, in the twentieth century the gold standard came to be seen as a pointless constraint against the issue – or, rather, over-issue – of currency. Economists argued that the Bank of England should be free to issue whatever amount of currency it (or its political masters) wanted. The old idea that the gold standard imposed a useful discipline against the over-issue of currency was discarded as out of date. Keynes famously told us that the gold standard was a relic of a barbarous age, and reassured us that modern governments were much too sophisticated to debase the currency. Modern governments were not like impecunious Roman emperors or medieval kings.
The results were catastrophic, but Keynes was right about one thing. Modern governments were not like Roman emperors or medieval kings: they were much worse, and produced much greater inflation rates than their predecessors ever managed to achieve. There is a limit to how much inflation you can create by clipping the edges of your coins and putting them back into circulation, but the sky’s the limit when you can just speed up the printing press or add additional zeroes to your notes.
– a characteristically forthright moment from Kevin Dowd’s Chris Tame Memorial Lecture entitled Lessons from the Financial Crisis: A Libertarian Perspective, delivered on March 17th, already reported on here by Johnathan Pearce, now published by the Libertarian Alliance as Economic Notes No. 111, printable out as a .pdf but (more to the point for bloggers) copiable and pastable as an .html
The political atmosphere in Britain is rather peculiar just now. One of the more interesting things to ask of public opinion at any particular moment is: Who exactly does public opinion think are the people who are most blatantly and most undervedly robbing us. It was a decisive fact about the 1979 general election that public opinon’s answer then was: The Unions. It was a decisive fact about the next big electoral upheaval, in 1997, that public opinion’s answer then was: the Conservative Party. Now, public opinion seems to be arriving at another answer to the who-are-the-biggest-plunderers? question. It seems to be deciding that the answer now is: Members of Paliament of all parties. If this opinion solidifies in time for the next general election, it will be very interesting to see what it does to the Conservative vote in particular. What if all the major parties do worse? Since they have all done so badly, this would make sense, I think.
But surely the plunderings now being contrived and the further plunderings being attempted by the people who are politically well above the average MP in the plunder pecking order make the petty pilferings of our Members of Parliament look very petty indeed. Has any MP put in a claim for even so much as one billion pounds, to pay for a second West Indian island? If so, I missed the news. It’s almost as if the powers that be want the mere MPs to take all the blame for everything. It’s all a dastardly establishment plot, orchestrated by evil pseudo-libertarian Guido Fawkes!
Of course, it could just be that regular people can get a handle on the fraudulent expenses claims of MPs, because these are the kinds of amounts they deal with themselves, and sometimes even pilfer themselves with morally questionable expenses claims of their own. On the other hand, the sums of money being slung at dodgy banks and political-donation-wielding bankers, and now being further unleashed by “monetary easing”, well, these are just way beyond all normal experience. Pile up all those bank notes and they reach far off into the Solar System, or deep into our own galaxy, or the next, or to some such unimaginable never-land. (Thus also does a council planning committee debate a patio extension for an hour and a half, before letting an oil refinery through without further discussion, that being another insight, to add to this one, that we owe to Professor C. Northcote Parkinson.)
Speaking of the really serious plunderings that are now being perpetrated, by those at the Obama/Brown level of operations, the other odd thing I have been reading lately, this time said by commentators like Peter Oborne and Fraser Nelson, is that Mr Brown is bad, because he is not stealing as much money as he is pretending to steal, in order to “stimulate” (the new word for wreck) the world economy. Oh Mr Brown claims to be stealing a thousand gazillion pounds! He would, wouldn’t he? But in fact it’s only a hundred gazillion pounds, because he has counted most of the gazillions in question twice or even three or four times. Most of the gazillions he is now promising to steal anew have either been stolen already or won’t be stolen at all. Bad Mr Brown!
But surely this is a case where words on their own are greatly to be preferred to words followed by or accompanied by actions. Our best hope now is that, when Obama and Brown and the rest of them promise that they are now taking decisive, radical and above all very big and very expensive actions of various kinds to save the world, they are lying. Heaven help us all if they are telling the truth.
Comics taken to a new level:
So Marvel has finally gone porno. In last week’s issue of the new “dark” Spider-Man Reign, it was revealed that Spidey killed his wife MJ with . . . radioactive sperm.
Have they been channelling Dr. Manhatten?
Wisden, the cricket-lover’s bible (if there can be a new bible every year), yesterday announced its five Cricketers of the Year. It’s an odd arrangement, because you can only win this title once. So, you can be a totally dominant cricketer, but because you also did fairly well in 2003 and were picked then, you can’t be picked now, again. This year’s crop are accordingly the usual collection of pretty good cricketers who did very well, but who didn’t exactly grab many headlines: perennial nearly-man James Anderson, the best of a rather bad lot of England bowlers, someone called Benkenstein who did well for champion English county Durham, and a couple of the South Africans who recently beat England in England and then Australia in Australia. But one cricketer on the latest list really has done indisputably great things in the previous few months:
Taylor and the England team had been in magnificent form leading up to their World Cup triumph: early in 2008, they retained the Ashes by winning only their fourth Test in Australia; they then went through the entire summer undefeated. Taylor was instrumental in both achievements, and established …
Pay attention:
… herself …
Indeed.
… as the leading batsman in women’s cricket after sealing victory in the Bowral Test.
Said Wisden’s Scyld Berry, of Claire Taylor, the first woman ever to receive this particular form sporting recognition:
Beating Australia in Australia is the objective for all cricketers, at least in England, and Claire almost single-handedly saw England through to victory and the retention of the Ashes in Australia last year, not to mention her success in the World Cup just a couple of weeks back. It would be a sin of omission, an act of prejudice, to exclude her from the accolade.
I wonder if a woman will ever play in one of the international men’s teams, so to speak. The immediate response would probably be: never, except maybe, one day, as a spin bowler, before then collapsing dead of exhaustion. Women, it is now assumed, just don’t have the necessary strength or stamina to challenge the men as top class cricketers. Well, power is certainly one way to do well as a cricketer, as men like Botham, and now Flintoff (who by the way took a match- and one-day series-clinching hat trick yesterday against the West Indians), have proved. But some quite small, even slight, men have excelled at cricket, especially as batsmen. Surely the real reason women do not now regularly challenge men at cricket is that until recently few women have played cricket at all, a state of affairs that is now changing quite fast. Because of the example of women like Claire Taylor, it will probably change quite a bit more in the near future.
Last September, I went walking in the Scottish Highlands with a good friend. My friend and I were booked on different flights leaving Edinburgh airport for London on Sunday evening. My friend then had a connecting flight at Heathrow to Hong Kong and then on to Sydney, so he was particularly eager not to miss his flight. Therefore, I dropped him off at the airport terminal before I went looking for a petrol station to refuel the rental car before returning it to the airport and checking in for my own flight.
The “Where the expletive is the nearest petrol station” dance before returning a rental car to an airport car rental office is one I know well, but this one wasn’t too bad. After driving a few kilometres down the M9 I saw a station on the other side of the road, so I exited the motorway at the next junction, crossed the bridge across the motorway, and found…
Well, I found myself myself in a new and better world, actually. It was an office park, but not just any office park. There was a big sign with an RBS logo, lots of gleaming buildings, water features (both active and passive), corporate sculpture, and the general sense of the intense self-regard held by the people who had had this place built. Clearly, RBS had decided that it needed a new, gleaming head office from which to run its überimportant global operations, and had had this Dr No like compound built near Edinburgh airport, where its highly sophisticated heart could beat, without any interruption or disturbance from reality. RBS’s dedicated motorway junction made it easy for these great bankers to come and go to and from wherever their business now was. I am sure there were also fancy gyms, day care centres, cafes and Lord knows what in the complex.
Having worked in international finance myself, this kind of arrangement is not that unheard of, particularly for banks that are big fish in whichever smaller pond that they originate from. I can think of one or two Spanish banks that have even more Dr No-like headquarters on the outskirts of Madrid. Usually the offices of the same organisations in major financial centres are much more normal – RBS has its London offices in a rather boring but shiny block near Liverpool Street Station.
However, to enter such a complex in Madrid, one faces barbed wire fences, metal detectors, ID checks, men in overly fancy uniforms, and probably finger prints and Iris scans. In Scotland on a Sunday afternoon I was able to drive into the complex by accident, and get lost in the private roads between the fancy new buildings. There were a few security guards around, and I suspect that if I had got out of my car and walked near any of the buildings I may have been challenged, but driving around for a few minutes led to little interest. Eventually I found the entrance ramp to the motorway, which was on the other side of the complex to the exit, so it seemed it was not possible to use the RBS offices to turn around without driving through the private office park. I then refuelled my car and drove back to Edinburgh airport.
However, that of Micklethwait’s laws that says that any company that builds a new and ultra-fancy office is doomed, whereas an important company that is still operating out of grimy offices in Basingstoke is probably okay very manifestly holds, I think.
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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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