Archive for September, 2008

I Warm So Easy So Reason Me Loose

Tuesday, September 30th, 2008

I just heard Sarah Palin saying that she doesn’t blame all human behaviour on global warming. Okay, let’s be charitable and assume she meant that the other way around. But then she said we should stop arguing about what causes global warming and just focus on how to fix it. As Rachel Maddow pointed out – if you don’t know what’s causing it, how can you know what would fix it?

Incidentally, I like Maddow more than most of the punditti, but her suggestion that we should respond to the current financial crisis with “New Deal” style legislation that helps the poor, as opposed to a bailout plan that helps the rich, makes me tear my hair out. What was the New Deal if not thoroughgoing crony capitalism that shafted the poor on a massive scale? She really needs to read Robert Higgs’ Depression, War, and Cold War and Butler Shaffer’s In Restraint of Trade: The Business Campaign Against Competition, 1918-1938.

Risky Business

Tuesday, September 30th, 2008

Just saw Keith Olbermann opining that it’s racist to blame the mortgage crisis on a rules change that encouraged the making of riskier loans in order to attract black customers; this, proclaimed Keith, is the equivalent of “blaming the crisis on black people.”

Um, no it isn’t. If the law forces you to make risky loans to black people that you wouldn’t make to white people, it’s the fact that the loans are riskier, not the fact that the recipients are black, that causes the problem. If the law had mandated lower risk standards for left-handed borrowers than for right-handed borrowers, that too could lead to a greater number of risky loans – and pointing that out would not constitute prejudice against left-handed people.

Mind you, I don’t think affirmative action in the lending market is anything like a major cause of the mortgage crisis; and focusing on that as opposed to more fundamental institutional problems might itself be a symptom of racism – but it hardly need be.

A novel for our times, three decades early: Alongside Night

Tuesday, September 30th, 2008

Why haven’t you read Alongside Night yet? You should, particularly NOW if you haven’t already. This novel predicted the current crisis three decades ago.

Ripped from Today’s Headlines!
The Prophetic Novel of the
Final American Revolution!

The American dollar is in freefall. Prices are soaring. Foreclosures and unemployment are up, and even defense contracts are going overseas. Foreigners are buying up everything in America at firesale prices while gloating over the fall of a once great nation. Homeless people and gangs own the streets. Smugglers use the latest technology to operate bold enterprises that the government is powerless to stop, even with totalitarian spying on private communications. Anyone declared a terrorist by the administration is being sent to a secret federal prison where constitutional rights don’t exist.

And caught in the middle of it all are the brilliant 17-year-old son of a missing Nobel-prizewinning economist, his best friend from prep school whose uncle was once a guerrilla fighter, and the beautiful but mysterious 17-year-old girl he meets in a secret underground … a girl who carries a pistol with a silencer.

The setting could be next week. But this novel was written three decades ago by a 23-year-old college drop-out who crafted his particular brand of prophecy from combining the techniques of science fiction with projections based on an obscure economic theory.

Building on the prophetic novels of Orwell, Rand, and Heinlein, J. Neil Schulman created in Alongside Night the first of a new generation of libertarian novels, telling the story of the last two weeks of the world’s greatest superpower through the perceptive eyes of a young man caught up in the maelstrom of the final American revolution.

Alongside Night scored lavish praise for a first novel when it appeared in 1979, winning accolades from luminaries such as the English novelist many consider the greatest of his generation, and from the first American to win a Nobel Prize in Economics. Ten years later the Libertarian Futurist Society voted the book into the Prometheus Hall of Fame for novels embodying the spirit of liberty, alongside Orwell’s 1984, Rand’s Atlas Shrugged, Heinlein’s The Moon Is A Harsh Mistress, and Bradbury’s Fahrenheit 451.

The last time the novel saw print was in 1987. Now, Pulpless.Com is making J. Neil Schulman’s classic novel of the last and first days of America available once again, and perhaps, this time, its prophetic clarion call will be heard … if there’s still time.

Order it from Pulpless.com: Alongside Night

BTW, Schulman recently suggested in email that members of Congress who voted against the Paulson bailout should caucus together as a new party.

Q.E.D.

Tuesday, September 30th, 2008
If you've ever needed direct evidence of the ruling class, with the mass media as junior partner in plunder, observe the reaction to the defeat of the bailout plan in Congress. The power elite has been dealt a shocking blow by the revolt we witnessed yesterday, and that shock is fully reflected by the pundits on the morning news shows. They cannot believe that the "responsible thing" was not done. The only dissenter I've seen in the last 36 hours is Lou Dobbs (bless his soul!).

Not One Damned Dime

Monday, September 29th, 2008

The good news is that latest plan to grab $700,000,000,000 out of tax victims’ wallets in the name of bail-out capitalism has failed, at least for the time being.

Part of what’s heartening about this, other than the basic fact, is how much public fury about all these past bail-outs, and this new rotten plan on top of it, has defeated the Pelosi-Bush coalition’s ambitions to ramrod this stinker through as quickly as possible. The obvious fury, combined with the sensitivity of an election season, hobbled the bipartisan Leadership gang in their abilities to whip other members into rank-and-file. This may be another sign of important cracks in the pillars that hold up the ruling coalition. It’s certainly an opportunity that we ought to seize.

The bad news is that the pols, even (or especially) those who did the most to scotch the deal, all have A Plan for a new and better deal to put in its place. And every plan is stupider than the last. Paulson is still demanding a plan that works, because We’ve got much work to do and this is much too important to simply let fail. Peter DeFazzio (D-Occupied Oregon) objected to the bail-out deal on the grounds that What we are considering today is still built on the Paulson-Bush premise that buying up Wall Street’s bad bets will solve the liquidity problem. But then he turns back around and suggests We can do better. We should start again on a new package, apparently because a new plan for buying up Wall Street’s bad bets at taxpayer expense will somehow improve on the old one. Jeb Hensarling (R-Texas), who also voted against the bail-out bill, insists that Inaction has never been an option, but [Treasury chief Henry] Paulson’s plan should never have been our only option. Democratic and their Progressive enablers have repeatedly hinted that they’d be willing to accept a multibillion dollar bailout if it’s attached to partial nationalization of the firms being bailed out, or re-regulation of financial corporations, or new entitlement programs, or, even better, a combination of all three.

This is a losing approach — because there’s clarity in a simple demand of No—hell no! that you lose amidst the complicated details of everyone’s latest Great New Plan, once you start horse-trading and concede that it might be O.K. in principle to grab billions of dollars out of working people’s pockets and give it to a bunch of hat-in-hand robber barons begging to go on the government dole, if it can be tied to advancing your other political goals. It’s also the wrong approach, because no matter what strings you might manage to attach, there is no justification whatsoever for this massive act of robbery from working folks. If the things that Progressives want to get are really worth getting, then they should fight to get those things done on their own; there’s certainly nothing to be gained by hitching them up to this act of plunder. If they cannot practically be got except by conceding to this massive privateering raid, then they are not worth the cost of getting them, and we ought to talk about ways that we can get the things that we really want, outside of the stifling limitations of electoral politics.

There’s remarkably little I could say that wouldn’t just amount to copy-and-paste from what I’ve already said. The stupidity and evil of robbing $700,000,000,000 out of the pockets of working folks, use it to bail politically-connected financial corporations out of their ill-conceived high-risk investments and speculations, and to do so with the explicit purpose of using government force to artificially insulate and stabilize the economic status quo from market reality, should go without saying. So should the right response to make.

No bail-outs. No sweetheart loans. Under no condition. No excuses and no deals. Kill this bug dead, and replace it with nothing.

If the prevailing business model for high-stakes investment banking or mortgage-lending is really viable, then these guys can suck it up and get to work and make their way through this mess the same way that all of us who the government considers small enough to fail are doing. If, on the other hand, their business model can’t survive without having the government repeatedly come around and seize trillions of dollars from working folks who don’t have the money to give and then force them to cover the costs of the money-men’s own stupid mistakes, and to cushion the poor usurers from the reality that nobody really wants to keep buying what it is that they have to sell—well, then, let it die, for God’s sake. Don’t run around finding New Deals or Main Street Bail-outs or any other stupid gimmick to try to tie in along with some tweaked or polished version of Paulson’s Endangered Capitalists Act. We can talk about ways that we can work together to help ourselves and our neighbors and fellow workers make it through these tough times—through practicing radical solidarity, through building alternative institutions, and through organizing grassroots mutual aid. All without wasting billions or trillions more on propping up the dinosaurs of inflation-driven politically-connected go-go finance capital.

Let the robber barons clean up their own mess, or let them hang out to dry if they can’t hack it. Not one damned dime from workers’ pockets to Wall Street. Period. End of political program.

See also:

New edition of the carnival

Monday, September 29th, 2008

Hellbound Alleee has posted the newest edition of the Market Anarchist Carnival on her blog, with lots of good entries and one weird entry that is pretty funny.

Submit early, submit often. The deadline is the 28th of each month.

      

The Picket Line — 30 September 2008

Monday, September 29th, 2008

30 September 2008

Every year, the San Francisco Public Library puts on a huge used book sale fundraiser that’s a pretty fantastic source of obscure books at bargain prices. This time around I picked up a copy of Milton Mayer’s On Liberty: Man v. The State.

Mayer looks at the historical conflict between government and liberty, and at the various philosophical, legal, and revolutionary methods people have devised to resolve it. He concludes that all of these have been incoherent and self-contradictory. The liberal ideal of a state that operates only within strict restraints, with the consent of the governed, and with a goal of maximizing and defending individual liberty is a pipe dream — and its most famous proponents end up unwittingly reducing our options to tyranny or anarchy.

He gives a number of examples from the United States in which “inalienable” rights found themselves alienated without much trouble, and in which the state discovered reasons why, on one occasion after another, it would have to reach just a little bit further beyond the carefully enumerated powers of the Constitution and into the carefully guarded Rights in the Bill of. Here’s a great example that almost reads like it comes out of today’s headlines:

…Attorney General John Mitchell revealed that the FBI had ignored the Congressional requirement of a court order to listen in on the conversation of youth leaders indicted for allegedly inciting riots at the Democratic National Convention of 1968 — and would go on doing so. “While it may be appropriate,” said Mr. Mitchell, “for Congress to establish rules limiting the investigative techniques which the Executive may employ in enforcing the laws the Congress has enacted, a serious question exists as to the power to restrict the President’s power to gather information which he deems necessary to the proper exercise of powers which the Constitution confers on him alone. If the Congress cannot tell the President whom he should employ to direct the Army, there is a strong basis to argue that Congress cannot tell the President what means he may employ to obtain information which he needs to determine the proper deployment of his forces … The President… has the constitutional power to authorize electronic surveillance to gather intelligence information concerning domestic organizations which seek to attack and subvert the Government by unlawful means.”

The various lines in the sand beyond which an individual, a conscience, and the home that is their castle may not be invaded by the state — whether in the rigorous formulations of political philosophers or in the legal scaffoldings of Supreme Court justices — Mayer shows to be easily wiped away by the next wave.

Does Mayer have any better ideas? “The problem may be insoluble,” he says near the beginning of the book, “which is not to say that it is a dead horse that will bear no beating.” At the end of many pages of beating, though, the horse doesn’t appear to have moved much, and although he starts by saying that “to rest on the proposition that the central problem of political life — the problem that is politics — is insoluble is to accept the counsel of despair” he ends on what seems to me, by this criterion, to be a despairing note:

The immediate issue is not whether the problem of liberty and authority is soluble. Nor is it whether we are condemned to go on crying, “Liberty,” without knowing what we are crying. The immediate issue is whether we have any ground for asserting the problem’s solubility (or insolubility) without consciously confronting the problem; the question is whether we are manipulating it for purposes of propaganda, deceit, and self-deceit.

One of the joys (or exasperations) of reading old books is to see today’s arguments dressed up in yesterday’s clothes. As with the Mitchell quote above that would not be surprising to find paraphrased in a position paper by John Yoo today, there’s an interesting appendix in which Mayer discusses his argument with young “fellows” of the Center for the Study of Democratic Institutions (which published the book). This would have been around 1969. There’s a part of the discussion in which one of the participants says that perhaps a society composed of small, independent, diversely-organized communes might be a solution to Mayer’s dilemma.

Mayer responds: “The difficulty is that your communes would still exist in a world, a cosmos, made up of governments… Within this cosmos there may be ‘free’ groups, ‘free’ communes, living any way they want — but only so long as they pay their taxes, go to war, get their vaccinations, go to school, marry one woman at a time, etc.”

But his debate partner says it doesn’t have to be that way. We have other models we can choose from: “in the Moslem world there were various principalities living very close to each other with vastly different laws… This was also true of the early European folk societies.”

Mayer shoots back that modern technology — “J. Edgar Hoover and Samuel F. B. Morse” — has made inevitable the supremacy of big states over small kingdoms and societies. But his debate partner responds — and I couldn’t help imagining this on an old-school paper and pencil version of a Boing Boing comment thread or something of the like:

I think the pluralism I’m talking about is possible because of the technology. The computers can be used, for example, to help people with similar interest and life styles get together.

Technotribal utopianism circa 1969. Groovy.


Earlier this month, I related the story of Mike Palecek, who got hit with a “frivolous filing penalty” warning letter when he enclosed a letter of protest with his tax return.

His story has since been picked up by the Des Moines Register.

It turns out that the adjective “frivolous” has a long history of being applied to uncomfortable protest statements — critics of the U.S. Declaration of Independence called its complaints “false and frivolous.”


There are some interesting threads ongoing on the wtr-s mailing list about whether or not there is a war tax resistance “movement” in the United States, and if so, who qualifies for membership.


Thanks to the Carnival of Market Anarchy and Gay Tax Protest for plugging The Picket Line.

Bellissimo!

Monday, September 29th, 2008

While on the subject of Italian words, I would like to follow up on Sheldon’s post with a big smile and an even bigger, “Hooray!”

In fact, I’m actually seriously considering getting cigars and champagne for all - yes, you can call me crazy, but I really am that thrilled.

Really, the failure of this bailout scheme couldn’t be a bigger victory for us in the entrepreneuriat class!

(more…)

BAILOUT REJECTED

Monday, September 29th, 2008
Extra, extra!
Hey, look at the headlines
Historical news is being made!
Extra, extra!
They're drawing a red line
Around the biggest scoop of the decade!

No, seriously, big news. Big news. Big news. Big news! And the stock markets are crashing even further. But it's not over yet; it may pass on the second vote.

Bravo!

Monday, September 29th, 2008

BAILOUT REJECTED