Updated: The ‘Stock Scare’: Connecting the Dots

Economy, Free Markets, Government, Media

Jeffrey Tucker of the Mises Institute connects the dots:

“Ah, nothing focuses the mind that a good ol’ fashioned stock market sell-off. Nothing is more likely to cause people to decide that Bush is a really bad president, or inspire pessimism about the future. One might think that a war in Iraq and US equity valuations have politically nothing to do with each other, but when portfolios show declining cash value, blame flies in unexpected ways. Depending on how long this lasts, we might find that brutal criticism of all this president’s policies will become even more ubiquitous.
Meanwhile, looking through my email archive from yesterday, I see this alert from Frank Shostak: ‘The central bank of China’s tighter stance runs the risk of creating a financial accident, which could have serious effects on US real economic activity.’
So let us make another prediction: Republicans will blame China for its reckless monetary policy. And while the data seem to suggest that there is merit to the idea, Frank himself says that we must distinguish between the bullet (bubble in the US) and a trigger (China’s inflation).”
[End Quote]

I listened to Kudlow and Friends, but they seemed more interested in justifying their abiding political faith in Bush, deficit spending, and the miracle of tax cuts. Sure, on the face of it, returning stolen goods to their owners is a good thing for the robbed and the economy in general. The problem lies in what is unseen: the hidden theft/tax of inflation, which finances deficit spending. Congress, as you know, is spending so much more than the treasury collects in revenues. Could this malpractice possibly have (gasp) wider repercussions?!

Some “Texas Straight Talk” will help complete the picture.

Update: Wouldn’t you know it, “his Holiness Alan Greenspan, who can’t stand not being in the spotlight” (as a friend put it), shot his gob off about a recession on Sunday, and voila: the market reacted. Greenspan’s Delphic pronouncement contributed to a stock-market decline. The man should be muzzled!

Moron of the Week

South-Africa

James (E-mail: campbjames@gmail.com/ IP: 198.54.202.246/) is incapable of doing a Google Search (much less a spell check). He insults my veracity and accuses me of fabricating, in “Mbeki Puts On Thinking Cap to Wrestle With Crime,” one of the most famous quotes to come from a South African cabinet minister, commenting on the carnage in that country:

“… they can continue to whinge until they are blue in the face, or they can simply leave this country.”

CNN and BBC are not verification enough for this creature; he expects to be fed with a visual image. The new breed of South African! One wonders how he copes with facts in a newspaper article. Does he write demanding a link to a visual? One wonders what he did before YouTube.

James, aka “Rainbow,” moreover, fully believes his e-mail constitutes an argument and that he is entitled to post any epistolary spasm on my blog—my private property. As you know, for some second-class citizens in the New South Africa, property rights are nominal. Having adopted this “ethic,” we can’t very well expect “Rainbow” to discern the subtle difference between what is mine and thine. Here goes:

“Ilana, I posted a critical comment here yesterday, pointing out just a few of your blantant [sic] inaccuracies and now I see it has been removed. [Scroll down here, and you’ll see that I did in fact post a comment by Rainbow.] Talk about censorship. I guess anyone is welcome to voice their opinion as long as they agree with you? You are really, really pathetic Ilana.” [He insults the host and expects he has a right to post on her blog. Talk about boorish.]

And he follows up:

“Rainbow – there is no video link on that CNN webpage and nothing that corroborates the first part of Ilana’s falsified quote.”

According to the BBC segment (linked in my column), the minister directed the comments to whites. The BBC is notorious not only for its leftist bias, but for its solid fact finding. They report: “One minister says only whites complain about crime and that they should leave South Africa if they don’t like it.”

Indeed, the quote is legion —it has passed into popular lore. James found it hard to watch the BBC, read the verbal rendition of the Minister’s proud moment on CNN (“South Africans: ‘Leave’ is no Answer to Violence“), and combine the information gleaned from both sources. So for the compromised James, here is the ‘delightful’ visual, ameliorated to exclude the racial component. It originates in the South African newscast, E-News, no less:

Charles Nqakula: “If you don’t like crime, get out” [I am not responsible for the expiration of YouTube links, should this occur in the future.]

'You Can't Have Your Banana And Eat It' By Dan Roodt

BAB's A List, South-Africa

Dan Roodt (Ph.D.) is the author of “the polemical essay,” The Scourge of the ANC. The following op-ed, “You Can’t Have Your Banana and Eat It,” has to be one of the most elegant and elevated logical eviscerations I’ve read in a while. Take it from someone who deconstructs arguments, week in, week out. Suffice it to say that Roodt utterly dismantles Malegapuru Makgoba’s atavistic boorish thesis. Enjoy.

You Can’t Have Your Banana and Eat It
By Dan Roodt

In his “Wrath of Dethroned White Males” Professor Malegapuru Makgoba has dared to offer a biological explanation for the power structure that prevails in the new South Africa. According to him, the white male has been “dethroned” and should now learn to adapt to a subservient, even submissive, role within our society.

Until now, Social Darwinism or the model of society as a competition for resources where the fittest will survive and prosper, has often been associated with notions of European superiority. After all, Europeans from a minute area in north-western Europe managed to get on to little sailing boats to colonise and rule the greater part of the Earth for a few hundred years. Britain is said to have conquered 100-million people in the Indian sub-continent with 800 soldiers and 2 000 Indian auxiliaries.

Makgoba’s view of African male dominance therefore represents a novel departure from a previously Eurocentric idea. However, he is not the first South African to take an interest in biological explanations for human behaviour or politics. Two of his predecessors would be Eugene Marais and Jan Smuts.

Marais was keen on the study of primates, especially baboons, and wrote two books about them, The Soul of the Ape and Burgers van die Berge. The great Afrikaner physician, journalist, poet and intellectual stressed the similarity between human and baboon behaviour, including an occurrence where he observed human boys and young baboons playing together, making clay figures and imitating one another.

This extraordinary incident is recounted in Burgers van die Berge. It fits in with Makgoba’s view that imitation and “aping” are normal features of both human and baboon societies. Nowhere would Marais, however, advance the notion that imitation was solely linked to hierarchy and dominance.

Makgoba is perhaps the leading theoretical Africanist in our country today. I am sorry, therefore, to bother him with Eurocentric logic, but his argument represents a tautology. Because black males are in power, he deduces that they are both dominant and “fitter” than white males. However, it could be that they are dominant for reasons other than their fitness. [Emphasis added]

Not so long ago, Mathatha Tsedu, the then editor of the Sunday Times, caused quite a ripple when he wrote in his column on July 13 2003 that black men sometimes display a lack of prowess. He quoted an anonymous Cabinet member who had told him: “When you come from where we come from and you then have to realise that if you want something done quickly you have to rely on whites, it is really debilitating. You bleed internally, but our very own comrades do not work. There is generally no work ethic.”

Of course, there could be a debate about what attributes an alpha male should have in human society. Should he be intelligent, physically strong or both? Should he be a good manager, highly numerate and literate, disciplined and with a good work ethic? Or are these but the traits of a tame white baboon and are universal criteria for primate success such as aggression, reproductive prowess and dominant behaviour more important?

Makgoba’s assessment leans toward the latter interpretation. However, I do not think that the same conditions of Darwinian survival pertain in the human world as opposed to the animal world. Human beings display altruistic behaviour uncommon in many species so that they would not necessarily subjugate the weaker members of their society as happens in a primate hierarchy.

Take the nuclear project at Pelindaba that existed under the previous government, for example. A handful of white Afrikaner males produced six nuclear bombs, deadly enough to kill millions of people in one fell swoop. In a straight Darwinian contest, they should have used that power to eliminate their black male rivals forever, thereby ensuring their own dominance within Makgoba’s scheme of rivalry between white and black males. Yet not only did they refrain from using the bombs, but they handed over power to the black males and peacefully dismantled their own lethal weapons.

Biologically speaking, such behaviour is absurd. No male baboon would be caught dead playing into the hands of his rival. Yet this is precisely what we have seen in South Africa.

At another level, however, one could argue that a form of social Darwinism is still operative at every level in a capitalist society where individuals and companies are selected for fitness through economic competition. This leads to a further contradiction in Makgoba’s argument, for while exalting black male fitness over white male weakness, he insists on affirmative action and black economic empowerment.

Because of racial-preference measures in our society, Darwinian competition, even at the more civilised economic level —as opposed to brute contests with bared teeth and flailing limbs —is flawed.

Either black males such as Makgoba will have to discard racial preference so that the real Darwinian contest may begin, or they will have to continue invoking sympathy for the poor, downtrodden black male having been disadvantaged by centuries of colonial oppression and racism. In other words, they will have to choose between Darwinism and altruism.

As they would say in the baboon world: you can’t have your banana and eat it.

Mail & Guardian Online
COMMENT

01 April 2005 09:59

Search My “Africa” Archive is here.

‘You Can’t Have Your Banana And Eat It’ By Dan Roodt

BAB's A List, South-Africa

Dan Roodt (Ph.D.) is the author of “the polemical essay,” The Scourge of the ANC. The following op-ed, “You Can’t Have Your Banana and Eat It,” has to be one of the most elegant and elevated logical eviscerations I’ve read in a while. Take it from someone who deconstructs arguments, week in, week out. Suffice it to say that Roodt utterly dismantles Malegapuru Makgoba’s atavistic boorish thesis. Enjoy.

You Can’t Have Your Banana and Eat It
By Dan Roodt

In his “Wrath of Dethroned White Males” Professor Malegapuru Makgoba has dared to offer a biological explanation for the power structure that prevails in the new South Africa. According to him, the white male has been “dethroned” and should now learn to adapt to a subservient, even submissive, role within our society.

Until now, Social Darwinism or the model of society as a competition for resources where the fittest will survive and prosper, has often been associated with notions of European superiority. After all, Europeans from a minute area in north-western Europe managed to get on to little sailing boats to colonise and rule the greater part of the Earth for a few hundred years. Britain is said to have conquered 100-million people in the Indian sub-continent with 800 soldiers and 2 000 Indian auxiliaries.

Makgoba’s view of African male dominance therefore represents a novel departure from a previously Eurocentric idea. However, he is not the first South African to take an interest in biological explanations for human behaviour or politics. Two of his predecessors would be Eugene Marais and Jan Smuts.

Marais was keen on the study of primates, especially baboons, and wrote two books about them, The Soul of the Ape and Burgers van die Berge. The great Afrikaner physician, journalist, poet and intellectual stressed the similarity between human and baboon behaviour, including an occurrence where he observed human boys and young baboons playing together, making clay figures and imitating one another.

This extraordinary incident is recounted in Burgers van die Berge. It fits in with Makgoba’s view that imitation and “aping” are normal features of both human and baboon societies. Nowhere would Marais, however, advance the notion that imitation was solely linked to hierarchy and dominance.

Makgoba is perhaps the leading theoretical Africanist in our country today. I am sorry, therefore, to bother him with Eurocentric logic, but his argument represents a tautology. Because black males are in power, he deduces that they are both dominant and “fitter” than white males. However, it could be that they are dominant for reasons other than their fitness. [Emphasis added]

Not so long ago, Mathatha Tsedu, the then editor of the Sunday Times, caused quite a ripple when he wrote in his column on July 13 2003 that black men sometimes display a lack of prowess. He quoted an anonymous Cabinet member who had told him: “When you come from where we come from and you then have to realise that if you want something done quickly you have to rely on whites, it is really debilitating. You bleed internally, but our very own comrades do not work. There is generally no work ethic.”

Of course, there could be a debate about what attributes an alpha male should have in human society. Should he be intelligent, physically strong or both? Should he be a good manager, highly numerate and literate, disciplined and with a good work ethic? Or are these but the traits of a tame white baboon and are universal criteria for primate success such as aggression, reproductive prowess and dominant behaviour more important?

Makgoba’s assessment leans toward the latter interpretation. However, I do not think that the same conditions of Darwinian survival pertain in the human world as opposed to the animal world. Human beings display altruistic behaviour uncommon in many species so that they would not necessarily subjugate the weaker members of their society as happens in a primate hierarchy.

Take the nuclear project at Pelindaba that existed under the previous government, for example. A handful of white Afrikaner males produced six nuclear bombs, deadly enough to kill millions of people in one fell swoop. In a straight Darwinian contest, they should have used that power to eliminate their black male rivals forever, thereby ensuring their own dominance within Makgoba’s scheme of rivalry between white and black males. Yet not only did they refrain from using the bombs, but they handed over power to the black males and peacefully dismantled their own lethal weapons.

Biologically speaking, such behaviour is absurd. No male baboon would be caught dead playing into the hands of his rival. Yet this is precisely what we have seen in South Africa.

At another level, however, one could argue that a form of social Darwinism is still operative at every level in a capitalist society where individuals and companies are selected for fitness through economic competition. This leads to a further contradiction in Makgoba’s argument, for while exalting black male fitness over white male weakness, he insists on affirmative action and black economic empowerment.

Because of racial-preference measures in our society, Darwinian competition, even at the more civilised economic level —as opposed to brute contests with bared teeth and flailing limbs —is flawed.

Either black males such as Makgoba will have to discard racial preference so that the real Darwinian contest may begin, or they will have to continue invoking sympathy for the poor, downtrodden black male having been disadvantaged by centuries of colonial oppression and racism. In other words, they will have to choose between Darwinism and altruism.

As they would say in the baboon world: you can’t have your banana and eat it.

Mail & Guardian Online
COMMENT

01 April 2005 09:59

Search My “Africa” Archive is here.