Category Archives: Political Economy

Gold Is A Girl’s Best Friend (& bona fide)

Debt, Economy, Ilana Mercer, IlanaMercer.com, Inflation, Liberty, Media, Political Economy, Republicans

Are there any economic Austrians out there who treat gold as a topic for pontification, rather than as a real-life refuge from the irreparable debasement of the dollar?

Surely, if you’re Austrian in economics—namely, you follow the natural laws of economics—your personal financial portfolio, however meager, ought to have included gold well before the spot price settled at $1,869.00? (Which is now unaffordable to us ordinary Americans.)

If devotees of Austrian economics had a support group in every state, here is how I’d introduce myself: “ILANA MERCER, author of ‘Into the Cannibal’s Pot,’ and WND.COM’s longest-standing (possibly most predictive), exclusive, libertarian column. Gold-bug since $800.”

So many patriotic Americans continue to waste time and precious money on books and columns offered up by top-dog Republican writers. Invariably, the boosterism and jingoism of these well-to-do gasbags (girls and boys) leads them to talk up US Treasuries (in addition to other foreign policy fatuities) on FoxNews.

If your Republican heroes have jumped on the gold bandwagon, ask them: “When did you become a gold-bug?” Demand proof, because they tend to fib.

Gold is a girl’s best friend and bona fide (although credential are not worth much in the age of the idiot).

HERE’S Peter Schiff on the meaning of the flight to gold.

American Renaissance Review

Democracy, Ilana Mercer, Literature, Political Economy, Political Philosophy, South-Africa

Dr. F. Roger Devlin has reviewed “Into the Cannibal’s Pot: Lessons for America from Post-Apartheid South Africa” in the August 2011 issue of the American Renaissance. Dr. Devlin’s review is not a critical review, but a contents-driven one. And a good one at that, as he distills the facts of the book at a furious pace. Intelligently so too.

Unlike the many factoids that marred the skewed, diasporic, Jewey emphasis (utterly absent in my book) of Prof. Paul Gottfried’s review of “Into the Cannibal’s Pot” (a copy of which was captured here on BAB), Dr. Devlin cleaves to the facts of the book. (Incidentally, rather than correct the Gottfried review so that it vaguely captured “Into the Cannibal’s Pot’s” impetus, the reviewer and editor showed their “courtesy” by simply removing the thing from Taki’s Magazine. My mother used to use the adjective “peruvian” to describe incivility. I believe that word was removed from the dictionary because politically incorrect.)

In any event, unexamined in Dr. Devlin’s review are interwoven points of political philosophy. What do I mean? As a classical liberal, for example, my complaint against apartheid is not that it “disenfranchised” or “denied the majority its democratic rights,” since “citizenship rights, after all, are not natural rights.” Rather,

It is natural rights that the law ought to always and everywhere respect and uphold. In its police state methods—indefinite detention without trial, declarations of a state of emergency—apartheid destroyed the individual defenses of equality before the law, the presumption of innocence, habeas corpus and various other very basic freedoms. That the apartheid regime contravened natural justice by depriving Africans of rights to property and due process is indisputable as it is despicable. Nevertheless, denying people political privileges does not amount to depriving them of natural justice.

(Into the Cannibal’s Pot, 2010, p. 231)

Dr. Devlin’s tack is conciliatory and is perfectly congruent with AR editor Jared Taylor’s surprisingly non-confrontational, data-driven journalism. (I intend to post about Mr. Talyor’s latest book at a later date.)

Perceptively, Dr. Devlin highlights one of the crucial points my book makes about democracy:

A prerequisite for parliamentary democracy is that majority and minority status should be fluid—that the ruling majority party should, at each election, be almost as likely to become a minority as to retain its majority. In a multiracial polity this does not happen. Parties represent racial groups rather than different philosophies of government, and elections become racial headcounts.

You can order this issue of American Renaissance here, where Dr. Devlin’s review is summed up as follows:

In Into the Cannibal’s Pot, author F. Roger Devlin reviews an important new book by columnist Ilana Mercer entitled Into the Cannibal’s Pot: Lessons for America from Post-Apartheid South Africa. Mrs. Mercer, a South African emigré, has sounded a ‘fire bell in the night’ with her sobering analysis of a once thriving First-World nation that is now descending into the abyss of savagery, genocide, starvation, and hopelessness. Mr. Devlin also summarizes her critique of raw numerical democracy and her effort to set the record straight on the Apartheid system—and most poignantly, her warning to the people of the United States.”

UPDATED: Thought Experiment in Statism (Economic Apocalypse?)

Debt, Economy, Government, Political Economy, Private Property, Taxation, The State

Treasury Secretary Tim Geithner told FoxNews anchor Chris Wallace repeatedly that to avoid the debt precipice, “tax reform that would generate revenue” [“now there’s a nice word for taxes”] must be considered. The “revenue we’re going to get through tax reform”: that’s how Geithner put it second time around, during the Sunday interview.

Let us assume, for a moment (as Secretary Geithner expects us to), that the solution to the debt is paying the people who incurred the debt more money; that the solution to the debt is seizing private property (through taxes) and placing it in communal ownership (state bureaucracies), where resources are never allocated efficiently and are always squandered.

Assuming all the above, do you have any guarantees that the money stuffed down the maw of the Federal Frankenstein will actually go to pay down the debt? Of course you don’t. Of course it won’t.

Money extracted from us by the Feds is fungible. Any additional revenues the Feds receive via taxes they will use to plunge private property owners deeper into debt.

UPDATE (July 25): The notion that not raising the debt-ceiling must necessarily result in the US defaulting on its debt is nonsensical. In so asserting, Tiny Tim is talking tripe. The US Treasury takes in enough loot to pay down the interest on the debt as well as a portion of the principal.

Meanwhile Secretary of State Hillary Clinton was upbeat about the US’s economic prospects. In a speech to the U.S. Chamber of Commerce in Hong Kong, Clinton framed “the political wrangling in Washington” over the debt as a function of America’s “open and democratic society.”

Clever. I noticed that CNN, in its reporting today, had taken the same tack: Markets across the world were worried over political wrangling in the US, rather than the debt. It was essential for the Demopublicans to arrive at an agreement for markets’ sake. The fact that there is no money in the coffers: that’s of no concern. Why, the awful Gloria Borges, a banal mind if ever there was one, ventured that legislation ought to be passed to automate the raising of the debt ceiling so that “We don’t have to go through this again.”

UPDATED: The Animal (Spirits) Move Chairman Ben

Debt, Economy, Federal Reserve Bank, Inflation, Political Economy, The State

John Maynard Keynes wrote impenetrable prose. Likewise, Ben S. Bernanke speaks it. Obscurantism typified Bernanke’s address at the International Monetary Conference, Atlanta, Georgia. The “animal spirits” are lurking everywhere here. See if you can spot them.

UPDATED (June 8): John Maynard Keynes, “the commie who controls economies from the grave,” is alive and well in Fed Chairman Ben’s voodoo economics:

BEN: “[T]he ability and willingness of households to spend will be an important determinant of the pace at which the economy expands in coming quarters.”

“Spooky dude” Keynes, and his acolytes, honestly believed that the fickle consumer’s biorhythms control the economy. If the consumer is spooked, “the economy” gets that way too.

BEN: “[H]ouseholds are facing some significant headwinds, including increases in food and energy prices, declining home values, continued tightness in some credit markets, and still-high unemployment, all of which have taken a toll on consumer confidence.”

The Keynesian mixes cause and effect liberally. After all, the average man hasn’t a hope in hell of grasping the exclusive knowledge and magic formulas to which only Voodoo economists are privy. What Ben fails to mention is this: He is pumping vast amounts of paper, non-stop, into America’s phony economy. With every infusion of fake money, as Austrian economists have warned, the dollar drops like a stone. Assets will continue to devalue. Saving will be difficult; retirement near impossible. Prices will soar, and the currency will eventually collapse (hyperinflation).

Before you blame Obama, the Republikeynsians began this spiral in earnest.

Have at it.