|
|||||
|
“One of the few sensible things Noam Chomsky ever said was that if you want to understand the world, read the New York Times backwards; that is, start at the end of the story and read up.” – Steven F Hayward, making this comment in a long and damning critique of “climate crisis” viewpoints and suppressors of dissent. (Thanks to Instapundit for the pointer.) July 30th, 2023 | 13 comments - (Comments are closed)
 Anyone who gloated about the “de-banking” of Nigel Farage over his account will now realise, or they should have anyway, that the sword is double-edged:
It is too easy to roll the eyes, and say “karma is a bitch”. What appears to be the case is that, as discussed in my post here, and in the comments, we just don’t have a fully free market banking system in the UK and much of the world today. The next time you read some idiot going on about “unbridled capitalism” or “neoliberalism”, point this out to them. July 28th, 2023 | 14 comments - (Comments are closed)
(Updates with correction about the dossier. Thanks to eagle-eyed readers for the pointer!) A few days ago, Patrick Crozier of this parish wrote about the decision by Coutts, a UK bank that is part of NatWest Group, to end an account of former UKIP leader Nigel Farage. At the time, Farage speculated he may have been targeted for cancellation of this account (he was offered a retail, mass-market NatWest account instead) because he was what is called a Politically Exposed Person (PEP), or that someone had flagged him following allegations (which he denies) of receiving lots of money from Russian-backed state media, and he also wondered whether his role in driving Brexit, and his scepticism about a climate crisis, etc, were factors. (Here are some of my comments on the case.) In the following days, the former CEO of NatWest told a BBC journalist that a reason for the debanking of Farage was that he lacked the funds to justify a particular Coutts account. The BBC journalist ran a story; this was a clear breach of client confidentiality – also possibly a serious regulatory/criminal offence – and Alison Rose, the CEO, resigned this week. Peter Flavel, the Coutts CEO, has also resigned. It also turned out that NatWest had compiled a dossier about Farage, which was sent to him after he requested it and he later shared this with the Daily Telegraph newspaper, showing that his political views and associations – including friendship with tennis ace Novak Djokovic – were reasons to suspect that Farage was a bad egg, and his “values” did not “align” with those of NatWest. NatWest has championed ESG investing, diversity, equity and inclusion, to a degree that puts it out front of other banks. NatWest is 38.6 per cent owned by the UK government. In the furore about its treatment of Farage – now a presenter on GB News – Prime Minister Rishi Sunak, and other ministers, and yes, even columnists in the Guardian, have argued that the treatment of Farage was beyond the pale. The reputation of Coutts and NatWest has been damaged. Coutts is a “posh” bank, supposedly used by the UK Royal Family – for whatever that’s worth – and in days of yore, having a Coutts account was a bit of a brag point. Well, no longer. Meanwhile, in the US, the banking group Chase has shut an account of a businessman and those of his relations because, as far as I can tell, he has been a prominent critic of US vaccine policy and the policy response to the pandemic. There is the disgraceful Canadian case of the government freezing accounts of people donating to truckers protesting about vaccine mandates. The PayPal account of the Free Speech Union was closed (PayPal eventually overturned that decision.) The “debanking” of people for the offence of holding the “wrong” views appears to be a general trend. At HSBC, in what I consider the most shocking act so far, earlier this year it was reported that the UK-headquartered bank, which does most of its business in Asia, had blocked pension payments to Hong Kong dissidents who fled the jurisdiction following Beijing’s national security crackdown. In 2020, when China imposed its law on Hong Kong, HSBC and Standard Chartered, another UK-listed bank, issued public statements supporting this law. So much for their concerns about “sustainability”, “inclusion” or all the other cant expressions of modern finance. Even so, the optimist in me hopes that these cases, especially the NatWest/Farage one, might signal a high watermark for this sort of nonsense. The mask is well and truly off. People, not just those on the Right side of politics, can see what is going on. People don’t have a “right” to a bank account, any more than they do to “free” healthcare, but they have the freedom to go about their lawful business unmolested. Now, in conditions of laissez faire capitalism, competition would weed out the idiots and ensure people could have a choice of bank services, with even the most eccentric or troublesome individuals being able to conduct financial affairs, even if with just cash. But we don’t have such a situation. We have a banking system umbilically linked to the State, fed on cheap central bank funny money, resting on a set of monopoly fiat currencies, and hedged by regulations, and as a result, stuffed with people whose main function is compliance with this or that rule, not focusing on building value. The upper reaches of these banks are filled with mediocrities who shuffle between private and public sectors with alarming ease, and who know all the right words. Farage is an excellent campaigner and he knows how to get a message across. He does not respond well to slights. NatWest chose the wrong man to antagonise and be rude about. Maybe, as investors contemplate the falling share price of NatWest, and the tarnished image of Coutts, they’ll realise that indulging political prejudices instead of doing an honest job is not survivable. Maybe, just maybe, this may be the beginning of the end of the idiocy sweeping through the commercial world. As interest rates go up, and the zombification of corporate life ends after over a decade of QE, the harsh realities of making a profit return to the fore. As Allister Heath argues in the Daily Telegraph today, Milton Friedman’s attacks on the foolishness of corporate “social responsibility” become more relevant by the day. July 27th, 2023 | 26 comments - (Comments are closed)
“Today’s DEI and ESG grievance industries are blowin’ in the wind. Three steps to redemption: Forget merit and striving for the highest level. Push equity over excellence. Feel virtuous. There are uproars because we don’t have enough female crash-test dummies—or paper straws, trigger warnings, unisex bathrooms, wind farms, disarmed police, censored songs or sidewalk tents for the `unhoused.’ These are vacuous 21st-century versions of protest songs. Feels good. Does nothing. Greta Thunberg’s “How Dare You?” topped the charts.” – Andy Kessler, WSJ ($). What I like about this article is that it shows how uncreative, indeed often vacuous, many of those who are making so much noise in the public square of opinion are. I mean, what the hell have any of them created that, you might think, will be marvelled over in 50 years’ time? Name one business process, invention, life-changing discovery, major work of art, great novel, work of sculpture, great piece of architecture, new sporting contest, anything. Take all the time you need. (I am not sure that entities such as Bitcoin, blockchain, 3-D printing, reusable rockets or AI count as these are from hated science, which comes from evil Western civilisation.) And that’s a problem, because the disconnect between the “culture wars” racket and the actual, positive stuff going on is becoming more and more chasmic. Thanks to Instapundit for the pointer. July 24th, 2023 | 17 comments - (Comments are closed)
An acquaintance of mine on Facebook, a hardline capitalist (so he says) made a comment that no-one has a “right” to a bank account, as they don’t have “rights” (those inverted commas are doing a lot of work here) to healthcare, education, paid-for holidays, etc. He was, of course, writing about the Nigel Farage/Coutts saga that has seen the CEO of NatWest, Coutts’ parent firm (39% owned by the taxpayer) issue a sort-of apology to the former UKIP leader. I wrote in reply to this issue about “rights” to banking, because I think it is too easy to just throw down the ideologist purist card on the table and assume that ends the matter. No so fast, Batman: In a world of laissez faire capitalism, absent the distortions of bailouts, the central bank drug of easy credit, endless compliance regulations and so on, barriers to entry to create banks are far lower and there would be hundreds more banks. They’d be relatively small in some cases, and be fiercely competitive. With some operating not with full statutory limited liability protection (but only under the Common Law), people running these banks would be a lot less careless and more focused on building value. There’d also be fewer hiding places for a culture war phenomena to flourish in. Instead, banks would be about capitalism, period. It is notable, however, that many of these desirable features don’t exist in the Western banking system today, although a few “challenger” banks and digital offerings are quite good, and may win business as a result of a backlash against some of the things going on. But in general, banking in the UK, and US, is intertwined with the State. Many firms have been rescued with billions of pounds, dollars and euros of taxpayers’ money. To open an account, you have to go through an increasingly severe KYC [know your client] and anti-money laundering regime, and banks that fail to comply can be fined and in extremis, lose their licences. Fines worth tens of billions have been imposed on banks over the past 20 years, for example. Ideally, any commercial entity ought to be able to refuse to do business with people, however rational or irrational that decision should be, and we should let the brute force of free enterprise weed out bigots. Bigotry and stupidity are costs. That’s actually what tends to happen over time. A problem is that in a mixed economy, some of those competitive forces are attenuated. When a person is “debanked” today, they can have a problem opening an account anywhere else if the bank asks them why they left a bank in the past. As a result, we have almost a sort of “cartel” system operating. In time, hopefully, competition will swing back, and some of the nonsense going on will disappear. In the meantime, while I agree with you that the idea of having a “right” to a bank account is as bogus as many of the other “rights” that people talk about today, the fact that banking is such an embedded form of life in a modern economy means this issue hits hard in a way that, say, isn’t the case if you are banned from a pizza restaurant or candy store for holding the “wrong” views. Of course, it may be that the Farage case might encourage a firm to go out of its way to court business from those who have been targeted. Let’s hope so. For example, a bank could, without incurring wrath from the “woke” or regulators, say something like “Banking is all we do. No politics. No agendas. Just finance.” And as I have said before, the outrageous Nigel Farage case, and that of others, surely demonstrates that a central bank digital currency idea must be resisted. This would be the end of any financial autonomy at all. July 21st, 2023 | 18 comments - (Comments are closed)
July 18th, 2023 | 20 comments - (Comments are closed)
“How many environmental justice majors does it take to calculate the CO2 emissions of a light bulb? This isn’t a joke. Businesses now employ scads of college grads to do this. For years America’s political class has lamented that too many college grads are working in low-paying jobs that don’t require post-secondary degrees. The diversity, equity and inclusion and environmental, social and governance industries—DEI and ESG, respectively—are solving for this problem while creating many others. In the modern progressive era, young graduates are finding remunerative employment as sustainability coordinators, DEI officers and “people partners.” Instead of serving up pumpkin soy lattes, they’re quantifying corporate greenhouse gas emissions and ensuring employers don’t transgress progressive cultural orthodoxies.” – Allysia Finley, Wall Street Journal ($). July 17th, 2023 | 7 comments - (Comments are closed)
A new film is out, called The Sound of Freedom, and it is about the horrible topic of child sex trafficking, and based on the experiences of people, such as former US government agent, Tim Ballard, who tried to shut this trade down. The film has become a hit already in the US, overtaking the new and lame Indiana Jones film (starring an aging Harrison Ford). The Critical Drinker – my favourite film reviewer – gives his verdict here. I want to focus on a different angle here, because I can imagine some of the “whataboutery” sort of responses from those who, for example, dislike the emphatic Christian convictions of the actor who plays Tim Ballard – Jim Caviezel. The film has already provoked sniffy responses from certain quarters. There is, as readers know, a gap between rhetoric and performance when it comes to Christian churches and other faiths’ groups in terms of the treatment of children in some cases, while Christians and those of no faith are also to be found in seeking to protect children, too. I hope and generally imagine that the benign consequences of religion, when it comes to care for children, outweigh the negatives (full disclosure: I am a lapsed Anglican). I recall reading, with horror, about the child abuse allegations that were sweeping through the Catholic church a few years ago in cities such as Boston. I recall there was a film about this, such as about the situation in Boston, a few years ago. On the flip side, consider the work of evangelical Christians, Quakers and others on issues such as building a moral storm against the slave trade, or the encouragement of prison reform, and so on. It is hard to contemplate the US civil rights movement and not see the importance of Christianity in the US. (For a fascinating account of how different Christian denominations have shaped American culture to this day, read Albion’s Seed, by David Hackett Fischer.) So why the hostility to this film now? This seems driven more by political partisanship and point scoring between the Left and Right than an ability to view stories on the facts. Even the most secular person can and should be appalled, and want to tackle the matter of sex trafficking and coercion of minors. This is why issues such as money laundering, for example, are such a big deal for banks (and why it is all the more important to get that sort of issue right.) It is true that these issues can get out of hand when it comes to fear and panic about what is going on. In the UK and other places about 40 years ago there was a “satantic abuse” problem, in parts of the north of the UK, I think, and there were miscarriages of justice, and a serious concern about the errors and oversight of various government agencies. Even so, on the face of it, there is a problem. Slavery today is, in numerical terms, a major issue. The United Nations said, in a report last year, that there are millions of people in a condition of slavery, and a number of them will be children. (The usual health warnings apply to official figures, but even with that, these are non-trivial numbers.) I can understand the reason for some people, maybe from good intentions, to either play down the issue or hope it goes away because they don’t want specific groups to be portrayed in a negative light, or fear this will cause specific groups to be persecuted. Centuries ago, Jews were attacked for wanting to kill Christian babies, and other such nonsense. But the problem is that our politeness, even our desire not to “rock the boat”, creates a breeding ground for trouble. Unfortunately, in today’s always-offended culture, and its myriad hypocrisies, blind spots and desire to wish things were different than they are, the chances that there will be a rational, realistic discussion on how to prevent abuses, deal with criminals, and so on are not great. But we have to try. July 12th, 2023 | 22 comments - (Comments are closed)
As debate continues on the real or alleged benefits/threats of AI, one slogan we often hear used is the term “garbage in/garbage out”. For me, intelligence has to be able to “self-start” – to know how to ask an insightful question, to even consider if a question is worth asking in the first place. I don’t see much sign of that yet. Can AI be more than just repeat existing information in new combinations, rather than actually evaluate rational from irrational ideas, grasp the need to reconsider certain premises, understand fallacies, etc? Can it think about how it “thinks”? Does it have the ability to understand honest mistakes from bad faith, to know when it is being “fed a line” by propaganda? Does it know how to float hypotheses or arguments that might be offensive to some but which get others to think out of a comfort zone? To be honest, my experience of seeing what AI does so far is that these questions come up with a big, fat “no”. I thought this when watching a Sky News short news item about how AI might be able to perform some of the tasks of a journalist. (The clip is just over three minutes’ long.) One of the topics that the AI was asked to do was produce a programme about climate change issues (take a wild guess what the tone of this was). And as I immediately thought, this device was fed a set of assumptions: the world is on a path to dangerously hotter weather, that there are human causes of that (to some extent), that this situation requires changes, etc. Now, it may be that this is all honest fact, but regulars on this blog know that the alarmist Man-made global warming case is controversial, not settled fact. They also know that there is now a new approach, being encouraged by writers such as Alex Epstein and entrepreneurs such as Peter Thiel, to reframe the whole way we think about energy, and embrace a “human flourishing” and “climate mastery” perspective, and get away from thinking of the Earth as a “delicate nurturer” and abandon the idea that human impact on the planet must be avoided as much as possible. Humans impact the Earth – that’s a great thing, not something to be ashamed of. I had very little confidence, from watching this TV clip, that a computer would have incorporated these ideas. There is a real risk as I see it that, depending on who writes the source code, such AIs repeat the fashionable opinions, often wrongheaded, of the day. Certain ideas will be deemed “wrong” rather than evaluated. There will not be the curiosity of the awkward and annoying guy who pesters politicians at press conferences. AI has many uses, and like the American venture capitalist rainmaker, Marc Andreesen, I am broadly supportive of it as a way to augment human capabilities, and I don’t buy most of the doom predictions about it. Ultimately, AI’s value comes from how we use it. If we use it to simply reinforce our prejudices, it’s not going to add value, but destroy it. July 8th, 2023 | 52 comments - (Comments are closed)
“Switching transport to electric in a short timescale will inevitably mean buying Chinese. Are we really about to force ourselves to become even more reliant on a totalitarian regime that stamps out freedom in Hong Kong, commits genocide against the Uighurs, threatens war on Taiwan and refuses to be transparent about how a pandemic began near its leading virus laboratory?” July 8th, 2023 | 6 comments - (Comments are closed)
Well, a day has gone after Independence Day, and I read this interesting article by Bloomberg ($) columnist Adrian Wooldridge about the recent SCOTUS ruling against affirmative action as it applies to higher education. The Court ruled, among other things, that such action violates the 14 Amendment. Wooldridge, who has written a book about meritocracy (he is for it), has these comments:
I agree with much of this but, being a classical liberal chap that I am, I am sort of opposed to any outside interference with how a private university conducts its admissions policy, period. (If such a place takes taxpayers’ money, or is even forced to do so, that’s a separate issue.) A broader point, maybe, is that in US higher education and to some degree in other Western nations, the “sheepskin effect” of having a degree from a smart university is more potent than the intellectual capital that any person may have accumulated from his or her studies. Bryan Caplan, the economics writer, has written a book where he unpacks the whole issue and argues that much of present higher education, at least in most subjects as taught today, rests on this effect, and is socially regressive to the extent that such places receive State (ie, taxpayer) funding. The issue becomes even more egregious when you have attempts, as in that of the Biden administration, to “forgive” the college loans of people who are, mostly, middle class (and disproportionately women, which plays to how we live in an increasingly “gynocentric social order”, as the “manosphere” writer Rollo Tomassi might put it. (The Supreme Court has ruled against Biden on student loans. It’s been a good week for that court.) In my view, how Harvard, Yale, Oxford or any other place of higher learning structures its admissions is up to the people who run it. To break any dangerous hold these institutions may have is going to mean a, genuine school choice and a re-focus on excellence in schooling (and encouragement where possible of homeschooling); the closure of government education bureaucracies and the end of monopolies of teacher training certification, which is a crucial problem. We need far more people, from all different backgrounds, to be able to teach. That, in my view, is a big issue. Tinkering with Higher Ed. admissions may do some good, but it is, as Woodridge says, too late when a lot of damage has been done already. July 5th, 2023 | 12 comments - (Comments are closed)
Following the recent controversy about the closure of a bank account of former UKIP leader Nigel Farage (he is said to have banked at Coutts, although he did not identify that lender by name in his own story), more information about what might have caused this decision is coming out. Dominic Lawson, son of the late UK Chancellor of the Exchequer, Nigel Lawson (the TV cooking writer and literary editor Nigella Lawson is Dominic’s sister), has been through a similar process in the case of his daughter, who has Down’s Syndrome:
A friend of mine, known to several who write for and manage this blog, is a member of the House of Lords. I know several, in fact. Maybe they should phone their banks.
It seems that this insanity has struck sufficiently close to home that the UK government, usually a model of inanity and uselessness, is getting involved. After all, the Tories know they might be out of office soon, and might not want to go through what Mr Farage, the Lawsons, and several others have been through. As I said in a comment on Patrick Crozier’s article about the “de-banking” of Mr Farage last week, this also demonstrates the danger of what are called central bank digital currencies. The potential for governments, such as those admiring the “social credit” regime of Communist China, to use CBDCs to enforce “correct” behaviours and suppress “bad” ones, such as blocking payments for alcohol, or closing contributions to unpopular causes, are dangerously large. Consider what the Canadian government of Justin Trudeau did to those financially supporting the anti-vaccine truckers, for example. This other Samizdata article referred to HSBC. The Dominic Lawson article also refers to that bank in an unflattering way. As an aside, what the current situation demonstrates is the lack of real choice in the banking system as it now operates. Linked to central banks for their funding, with CBs as “lenders of last resort”, and anti-money laundering laws imposed by force, bankers are no longer able to have confidential conversations with a client. A banker is obliged by law in most major industrialised nations to report on transactions they deem suspicious, for example, for whatever reason, and woe betide the banker that doesn’t. There are requirements such as Suspicious Transaction & Order Reports in the UK. The US Securities and Exchange Commission operates a similar process. In Switzerland, once renowned for its bank secrecy, non-domestic Swiss clients are no longer under its protection. Politicians and their cheerleaders might applaud the “ghosting” or “de-banking” of people they dislike, but they ought to be aware that these powers cut both ways. Imagine if, for example, protest groups were to be designated as “terrorist” or whatever. Imagine if Just Stop Oil, Extinction Rebellion, or some other group, gets this treatment. July 3rd, 2023 | 22 comments - (Comments are closed)
|
   |
||||
All content on this website (including text, photographs, audio files, and any other original works), unless otherwise noted, is licensed under a Creative Commons License. |
|||||