Category Archives: Middle East

Easy Money, Soaring Stocks & A Stagnant Economy

Business, Debt, Federal Reserve Bank, Inflation, Middle East

Some in mainstream media are making good progress in connecting Ben Bernanke’s non-stop monetary stimulus to a rise in all prices, stock-market prices included.

The Fed’s monthly confetti of funny-money stands at “$85 billion total every month.” The Fed’s balance sheet reflects “more than $3 trillion.”

The Fed, explains Elizabeth MacDonald (Fox Business News), purchases mortgage-backed and Treasury securities from Fed dealers.”

You can see how hooked the market is to the central bank’s money printing — the correlation in fact is rather astonishing. It shows the government and the central bank’s power to create money, manipulate market prices, and transfer wealth. The market is powered ahead by a growing strength in corporate profits, too.

Richard Fisher, president of the Federal Reserve Bank of Dallas, is more than hip to the “monetary Ritalin” scam:

…And, for some, there is a deeply imbedded worry that the Fed’s contortion of the yield curve and cost of money cannot last forever, or, if it lasts too long, will eventually result in financial bubbles and/or uncontrollable inflation, adding another uncertainty to the plethora of uncertain factors that already plague them. “Credit is super-abundant and stock market behavior is conditioned not so much by the fundamental performance of its underlying companies but by increasing doses of monetary Ritalin.

Then again, if you listen to the likes of Shepard Smith (also on Fox News) or Brooke Baldwin (CNN) expatiate on the topic of a stagnant economy against the backdrop of soaring stocks—you’ll hear their extra curricula exhortation for The Ben Bernanke to keep those interest rates low. Lovely!

UPDATED: Multiculturalism & ‘The 18th-Century Levantine Mindset’

Family, Free Markets, IMMIGRATION, Liberty, Middle East, Multiculturalism, Trade

As hard as it is to believe, the “18th-century cities of the Levant” were liberal, libertine and prosperous. The secret to the successful, vibrant life in the Levant is detailed in a book by Philip Mansel, which traces “the story of how first Smyrna (modern Izmir), then Alexandria and then Beirut emerged to prominence, and how they waxed in wealth, power, beauty and influence over the 19th and 20th centuries.”

The Levant then was without the top-down, punitive, forced integration which is the hallmark of the 19th-century nation-state. Enforced across the Anglo-American and European spheres, this integration compels the founding peoples to prostrate themselves before minorities, each and every one of whom is said to suffer from historical wounds and claims to match their eternally suppurating wounds:

The reviewer reveals a thing or two about multiculturalism in these cities.

“The cities of the Levant were never a melting pot of peoples, rather a grid of self-governing communities, enforced by separate schools, places of worship, hospitals, burial grounds, clubs, charities, newspapers and libraries. Internal schisms – between Catholic and Orthodox, between Nestorian and Monophysite, between Sunni and Shia, between Ashkenazi and Sephardim further subdivided the urban tribes of Greeks, Jews, Syrians, Armenians, Turks, Franks and Egyptians. Trade, fame and the pursuit of pleasure alone brought the citizens together, and with it came a natural multi lingualism, so that it was not uncommon for a Levantine family to be fluent in half a dozen languages and scripts, or to use ‘farabish’ a slang-like fusion of Arabic, Italian, English and French. And because the divisions between the communities were so absolute there was a remarkable spirit of tolerance within a Levantine city. Noone felt that their children were in danger of being submerged by another culture and so there was a propensity for sharing, knowing and acknowledging the various festivals and rituals of the different faiths. This arose not out of any interest in a multi-faith fusion, but as neighbours with a taste for being amused by different dishes, street processions, dances and tunes.”

Levantine loyalty structures started with family, then progressed out to ethnic community with a light gilding of urban pride before drifting on outwards via thin personal connections (however faint or imaginary) to other trading cities and the court of the ruling dynasty. Nationalism was startling absent from the 18th-century Levantine mindset, as was any concern, kinship or sense of responsibility for the parochial hinterland. The laboriously constructed contract of 19th-century nationalism – duty, obedience and sacrifice (duty to pay tax, obedience to the heirachy of state servants and readiness to fight for the fatherland) was in almost comic opposition to the Levantine mindset. For the Levantine was a natural free-trader, if not a smuggler, a deal-maker, a tipper of minor officials and a hoarder – who would migrate rather than fight for a distant state, but also perish rather than witness the break-up of family. Mansel creates a mantra to help us translate the smiles of welcome, the immaculate tailoring, the charm and the intoxicating scents of the Levantine: Deals before Ideals, City before State, Trade before Politics.

UPDATE: “Deals before Ideals, City before State, Trade before Politics”: This quote from the review above is especially germane for those of us who champion the locality as the proper repository of conservative loyalties.

UPDATED: Hagel Raises Neocon Hackles (‘Axis Of Error’ Enraged)

Foreign Policy, Israel, Middle East, Neoconservatism

Neoconservatives are having grand mal seizures and that’s a good thing. “President Obama on Monday nominated former Nebraska senator Chuck Hagel as defense secretary,” reports the Washington Post.

Obama called Hagel “the leader that our troops deserve” and a “champion of our troops and our veterans and our military families.” He said Hagel, a former Army sergeant, would be the first person of enlisted rank and the first Vietnam War veteran to head the Defense Department.
“Maybe most importantly, Chuck knows that war is not an abstraction, Obama said.

CNN recounts that Hagel’s:

fierce opposition to the Iraq War went far toward creating the schism that now exists between him and the Republican establishment.
“The damage this war has done to our country will play out for years to come,” he wrote in his 2008 book, “America: Our Next Chapter.”
“While it is easy for nations to blunder into war, they never blunder into peace,” he added.
His opposition to the 2009 surge in Afghanistan put him at odds with the president who nominated him.

This is all good, although Hagel’s promise to “advance global freedom, decency and humanity’ in the effort to ‘build a better world for all mankind'” smacks of neocon Manifest Destiny. Defend US borders and no more.

As to the hackles Hagel has raised among Israel devotees. “Nothing Hagel has said about Israel,” ventures Richard Cohen at the WaPo, “is not said in the Israeli press on a daily basis. Trust me: By the Wall Street Journal’s standards, Israeli media would be deeply anti-Semitic.”

(Cohen points out that Chuck Hagel “earned his wariness of war the hard way — two Purple Hearts in Vietnam.” Cohen is wrong to frame war wariness as a privilege that needs to be earned.)

UPDATE (Jan. 8): Lindsey Graham, a member of the unholy trinity of neoconservative law makers—the “three amigos; the three blind mice; aka the ‘axis of error’”“was on CNN’s ‘STATE OF THE UNION’ yesterday calling this an ‘in your face’ nomination and basically saying that this is going to be a very controversial pick for President Obama.”

Walk Like An Egyptian

Barack Obama, Constitution, Democracy, Democrats, Government, Liberty, Media, Middle East, Propaganda, Republicans, The State

“This just in: The Secret Service backed by the District of Columbia Police Department is battling thousands of protesters outside President Barack Obama’s 1600 Pennsylvania Avenue ‘palace,’ prompting the socialist ‘leader to leave the building. Officers fired teargas at up to 10,000 demonstrators angered by Obama’s November … decree that expanded his powers. ‘The people want the downfall of the regime,’ the demonstrators chant. ‘Our marches are against tyranny and the constitutional … decree, and we won’t retract our position until our demands are met.'”

The excerpt was from “Walk Like an Egyptian,” the current column. Read more about “the competing realities presented” by an apoplectic press with “a stars-and-stripes bias,” and my hope that Americans act more like Egyptians.

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