Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Friday, November 06, 2009

Wimberley Runs Up The Red Flag

Clameur de Haro was not remotely surprised to see the traditional banner of redistributive tax-and-spend socialism unequivocally hoisted to the Daniel Wimberley masthead this week. In his letter on Tuesday to the Jersey Evening [sic] Post about the Angry Men, Mr Wimberley rehearsed all the predictable mantras associated with the philosophy.
We had, most notably, the attempted excoriation of what he terms as the low-tax, low-spend ideology implemented over the past three decades, and which according to him must be resisted. Apart from providing an explicit statement of his predatory stance on public sector finances, it is also less than accurate.
Does Mr Wimberley really believe that we have had a low-spend government? If only we had been so blessed - we might not be in the position that we now are. The problems we face at present are in very great measure due to the runaway, uncontrolled public spending and public sector growth that we have seen in the last ten years, and the inability or unwillingness of most politicians to tackle it.
He then follows the usual scare tactics of the political left by implying that the Angry Men favour curtailing public expenditure by abandoning respite care for the disabled, the Town Park, and the problems of Bellozanne, and essential infrastructure maintenance. But nowhere in Mr Trower’s conversation with the JEP’s Ben Queree is any of this even hinted at.
What Mr Trower and his colleagues quite rightly protest against is the sheer size, reach, dubious utility and uncontrolled expense of much of the bureaucratic empire, allied to inadequate financial and budgetary discipline – and the inclination to tax in order to fund it, rather than address the underlying problem. Remember the contract for the incinerator, Mr Wimberley? Advocates of a smaller, leaner, less activist but more efficient government have been saying for years that the public sector does too much that is unnecessary, and does it at far greater cost than necessary.
Mr Wimberley appears to recoil in horror that States’ departments were forced to make efficiency savings in order to limit the necessity for taxation increases. Obviously he adheres to the collectivist assumption that public spending is somehow a good in itself, and finds the notion that individuals should be able to retain more of their own money as heresy.
He needs to be reminded that the state, and the public sector, has no resources of its own other than what it confiscates from individuals and firms by way of taxation. As Ludwig Von Mises put it -
“At the bottom of the interventionist argument there is always the idea that the government or the state is an entity outside and above the social process of production - that it owns something which is not derived from taxing its subjects - and that it can spend this mythical something for definite purposes.
This is the Santa Claus fable raised by Keynes to the dignity of an economic doctrine and enthusiastically endorsed by all those who expect personal advantage from government spending.
As against these popular fallacies there is need to emphasize the truism that a government can spend or invest only what it takes away from its citizens - and that its additional spending and investment curtails the citizens’ spending and investment to the full extent of its quantity.”
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Tuesday, November 03, 2009

The Nature of Libertarianism

Discussions with blog commenters and non-commenting e-mailers alike, about recent blogposts on The Political Compass – where CdeH sits well into the economically neo-liberal / socially libertarian quadrant - and the labels attaching to various positions on the economic and social spectrums, prompt Clameur de Haro to elaborate at greater length on the “libertarian” label.
It’s a label frequently directed towards him, and usually from the Green Left, from where it’s intended to be pejorative much more often than not. So, and especially from the CdeH viewpoint that differences on the left-to-right economic scale have become secondary to the truly great political divide of our times, namely that between those who favour collectivism and those who favour individual freedom, it’s apposite to elucidate the libertarian philosophy in a bit more detail.
For that, it’s hard to improve on this recent exposition by the American libertarian writer (and blogger) Bella Gerens.
Picking some randomer from some other part of the political spectrum who advocates a single vaguely libertarian idea in isolation and therefore calling him a libertarian, does not, in fact, make him a libertarian.
Meanwhile, spouting your interpretation of libertarianism as only “Hands off my Lexus, you socialist taxer/green hippy”, or only “freedom from taxation” does not, in fact, mean that is what libertarianism is. I don’t even own a Lexus, and the tax I personally pay is not overly onerous.
The truth is that advocates of freedom are found all over the political spectrum, but the only true libertarians are the ones who advocate it at all times, in all circumstances, from the bedroom to the wallet – who believe that ‘freedom from’ is the only state of being consistent with the dignity and majesty of humankind.
‘Freedom from’ is the most important part of that ideology. Freedom from coercion: freedom from interference: freedom from oppression.
‘Freedom to’ is where the misunderstandings enter.
People on the authoritarian right choose to think that libertarians are advocating freedom to burgle, rob, rape, murder – because they choose to read ‘freedom’ to mean ‘freedom to do whatever you please.’ People on all of the left choose to think libertarians are advocating exploitation, pollution, callousness, and the primacy of making (and keeping) money above all else – because they also choose to read ‘freedom’ to mean ‘freedom to do whatever you please.’
And both sides think that libertarians consider the laws we have prohibiting these activities to be a restriction on freedom.
When will they realise that they don’t understand?
Libertarians believe you should be free from coercion – and also that you must not coerce anyone else.
Libertarians believe you should be free from interference – and also that you must not interfere with anyone else.
Libertarians believe you should be free from oppression – and also that you must not oppress anyone else.
Because these are to be universal freedoms: what you do not wish done to you, you must not do to anyone else.
For the libertarian, there is no ‘freedom to.’ Freedom represents an absence, the absence of force and fraud. It does not represent a licence to do anything, or a right or entitlement, except the absolute human right not to be forced or defrauded.
"Freedom to’ is where conflict enters the system. ‘Freedom to’ often becomes assumed to be a right: a right to a family, a right to cheap healthcare, a right to a job, a right not to starve. In this way non-libertarians argue that poverty constitutes a lack of freedom, because poor people are not, to use the most extreme example, free to eat. And so, a non-libertarian may say, their right to eat must override someone else’s freedom from coercion.
A libertarian may say: “are the poor victims of coercion, interference, or oppression?” If so, it must stop – and then they may be able and allowed to provide themselves with food. Thus not only are the freedoms of the poor restored, they are helped without obviating anyone else’s freedoms.
No conflict exists; the principles of freedom are not only maintained, they are extended.
And for holding this principle, for advocating it, and for trying to practise it in their daily lives, libertarians are vilified as believing only “Hands off my Lexus, you socialist taxer/green hippy”. Libertarians, who are concerned primarily with the heights of dignity and achievement all humans could reach, if only they were freed from coercion, interference, and oppression, are called ’selfish’ and ‘misanthropic.’
It’s hard to see how self-professed Green-Leftists can position themselves as being inclined towards libertarianism socially.
Greenism is fundamentally an authoritarian and egalitarian-collectivist creed. In the name of an allegedly overarching necessity - nothing less than the preservation of our planet – Enviro-Leftists demand that governments coerce and forcefully organise all populations into collective compliance with their will. The very salvation of the Earth itself is only possible, they say, if their remedies are applied through the force of the authoritarian state. We must all, they insist, henceforth live, work, play, travel, dress, eat, and house ourselves only as they order us to if we are to survive. Never has there been such a gift of an excuse as that comprised by enviro-fanaticism for collectivists in power to coerce, oppress and interfere with the rest of us.
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Monday, November 02, 2009

More Selectively Alarmist Statistics About Climate Change

According to the latest report from Save The Children, up to 250,000 children “could” die in the next year from the effects of climate change: so of course its Policy Director has predictably called for stringent measures to “tackle climate change” at the upcoming Copenhagen GreenMarxFest Conference. It sounds (and it would be) a horrifying number, but, as so often in the smoke and mirrors world of climate alarmism, all is not necessarily as it seems.

Note, first of all the use of that word “could”, which usually, in the context of climate change statistics, means that the quoted figure is actually (1) the most extreme extrapolation of (2) the largest value in (3) the highest range of all possible outcomes. M’Noble Lord Stern of course is the supreme exponent of this statistical technique scare tactic and led the way with it in 2006.

Sadly, between 10 and 11 million child deaths occur annually. Research by both The Lancet and the World Health Organisation, shows that more than 70% of those, that’s 7 million at least, come from just six causes: pneumonia, diarrhoea, malaria, neo-natal sepsis, premature delivery or asphyxia at birth. UNICEF has calculated that malaria alone kills about 3000 per day just in sub-Saharan Africa, which adds up to approximately 1 million each year.

It’s been demonstrated time and time again that we could all but eliminate malaria and deliver clean water for drinking and cooking to every single person on this planet: and that we could do it for a tiny fraction of the trillions that the Green Religionists demand Western liberal democracies allocate to hobbling their free-market, enterprise economies and imposing state-authoritarian restrictions on freedom, all in a paroxysm of guilt and in the name of “fighting climate change”.

No doubt the 2 million or so children who will die from malaria and diarrhoea in 2010 will do so comforted by the knowledge that 20,000 assorted charlatans, dupes, freeloaders and hangers-on spent much of December 2009 expending much hot air in diligently considering their plight.
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Saturday, October 24, 2009

Mr Rogers Has Ideas Above His Station

Clameur de Haro was, to say the least, unimpressed by the both astonishing and disturbing exhibition of presumption, going beyond the remit of one’s office, and straying into the political arena by a supposedly impartial public servant, provided recently by Mr John Rogers, the Acting Head of TTS.
According to this report from BBC Radio Jersey (not always, it has to be said, the most accurate of media outlets), Mr Rogers has taken it upon himself to pronounce it “essential” that an environmental tax is introduced, and has also proposed the levying of taxes on fuel or (did he mean “and”? wonders CdeH) vehicle emissions.
Mr Rogers is clearly a devoted adherent to the Green Religion and its CO2 articles of faith, at one philosophically with the enviro-authoritarians who wish to either police us or tax us into behaving as they think we should, rather than persuading us.
He should perhaps be reminded that a unified set of policy prescriptions stemming from all-pervading Greenism have not been explicitly approved by either the States or the general public, and that candidates who have stood for election on an overtly Greenist platform have been roundly rejected by the electorate.
Were he, moreover, to pause for a few moments’ reflection in his crusade to direct us all how to live our lives, two things might just occur to him. Firstly, that adding further costs to travel and distribution in a island with poor public transport is both ineffective, inflationary, and fiscally regressive: and secondly, that positive, market-driven incentives to recycle are much more desirable socially, and much more likely to succeed practically, than illiberal coercion. A system of tax relief vouchers for regular recycling, for example, might well be far more effective, and should not cost upwards of the quoted £0.5m (plus no doubt an additional clerical “resource”) to administer.
In recent exchanges with Clameur de Haro, one senior States’ Member has unequivocally asserted to him that, contrary to popular opinion and concern, public policy in these challenging times is not made by unelected and unaccountable civil servants, but is exclusively the preserve of ministers and politicians answerable to the electorate at the ballot-box. That this should be axiomatic especially in the case of new taxes, should go without saying.
Mr Rogers however appears not have heard this, or to have unilaterally decided that this need not and does not apply to him. Perhaps his political masters can enlighten him – and ensure that his Acting status remains precisely that, and that only.
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Friday, October 23, 2009

One (Authoritarian Socialist) World Government with the Copenhagen Climate Treaty

Clameur de Haro finds it utterly chilling to contemplate the all-pervading, cross-border, national sovereignty-disregarding, worldwide socialist regime that is going to be imposed on us, irrespective of whether we want it or not, and before we are very much older, if the treaty being hawked around for the UN Climate Change Conference in Copenhagen is actually signed.
A world government, massive redistribution of wealth, and supra-national enforcement regime are all openly and expressedly envisaged as the first three purposes of the draft treaty -

a) The government will be ruled by the COP with the support of a new subsidiary body on adaptation, and of an Executive Board responsible for the management of the new funds and the related facilitative processes and bodies. The current Convention secretariat will operate as such, as appropriate.

b) The Convention’s financial mechanism will include a multilateral climate change fund including five windows: (a) an Adaptation window, (b) a Compensation window, to address loss and damage from climate change, including insurance, rehabilitation and compensatory components, (c) a Technology window; (d) a Mitigation window; and (e) a REDD window, to support a multi-phases process for positive forest incentives relating to REDD actions

c) The Convention’s facilitative mechanism will include: (a) work programmes for adaptation and mitigation; (b) a long-term REDD process; (c) a short-term technology action plan; (d) an expert group on adaptation established by the subsidiary body on adaptation, and expert groups on mitigation, technologies and on monitoring, reporting and verification; and (e) an international registry for the monitoring, reporting and verification of compliance of emission reduction commitments, and the transfer of technical and financial resources from developed countries to developing countries. The secretariat will provide technical and administrative support, including a new centre for information exchange

You can read the entire draft treaty here.
This became horrifyingly and undeniably clear in the presentation given last week to the Free Market Institute of Minnesota by Lord Christopher Moncton. In the 1990s, Monckton was one of the principal scientific advisers to the British Government, and he is acknowledged as a true scientific expert on the entire subject of so-called global warming and anthropogenic climate change – so much so that the high priests of the Green Religion, from that inveterate junk science peddlar Al Gore downwards, refuse to engage in debate with him. His presentation, amplified by a multitude of peer-reviewed data, charts, facts and figures, comprehensively demolished the warmist-alarmist case, but it’s the end of his presentation on the political run-up to Copenhagen which should shock anybody.
Watch it, and weep for our freedoms which the international Green-Left alliance are going to sign away.
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Tuesday, October 20, 2009

EU Tax Hypocrisy – Hopefully The Fightback Begins.…

Clameur de Haro notes from the website of The Adam Smith Institute that Jersey Finance’s Geoff Cook will be one of the key speakers participating in an ASI seminar on 4 November on the subject of “Tax Competition: Economic Freedom and National Sovereignty”.

This is good news, for one of the other key speakers is Richard Teather. Apart from his role as Senior Lecturer in Tax Law at Bournemouth University Business School, Mr Teather is also the author of the much acclaimed “The Benefits of Tax Competition”, probably one of the seminal works on the economic justification for, and benefits arising from, the competition provided to high-tax jurisdictions by their relatively low-tax counterparts. CdeH’s own copy is much read, and extensively bookmarked. Mr Teather, thankfully, is also an adviser to the States of Jersey scrutiny functions on tax policy and tax matters.

Mr Cook himself has sound views on the futility and hypocrisy of the attempts by high-tax jurisdictions to deflect attention from their own macro-economic and fiscal deficiencies by attempting to coerce low-tax jurisdictions into emulating them, and Clameur de Haro makes no apology for repeating them.


If through the populism of voter appeal or through some systematic ideology the means of wealth creation are overburdened, the incentive to create wealth is diminished, and governments consume a greater and greater proportion of the total economic value available. Eventually the economic engine becomes too dependent on an inverted pyramid of wealth creators. The creators become disincentivised and go elsewhere, or simply down tools.

Free markets, globalisation and tax competition have all combined to produce stellar growth in world GDP over the last thirty years pulling countless millions out of poverty.
An unlikely alliance of tax hobbyists, left wing newspapers, trades unions, and development agencies has catalysed around calls for greater concentration of the means of wealth creation in the hands of governments, and implicitly greater taxation of business and wealthy individuals through the outlawing of wealth structuring and planning, together with restrictions on cross border capital flows. They hope that their own constituencies will be beneficiaries of this new ‘contract’, with the authors, the tax hobbyists, gaining fame and funding, and their supporters feeling validated in their enduring distrust of the wealthy and their advisers.
Moves are in train to stigmatise wealth structuring and planning; to restrict capital movement through attacks on the use of international finance centre:, and to undermine transfer pricing arrangements. If successful the combined effects of these protectionist measures will be to trap capital within borders, significantly reducing overall economic activity.
Such measures will restrict wealth creating activity and encourage growth in central government expenditure. The net effect will be a constriction of wealth, a reduction in tax bases and a loss of global prosperity, driven by a short sighted grab for tax, all delivered through the Trojan horse of transparency.
To accuse banks, or companies, or individuals, of illicit or immoral behaviour because they plan their international affairs in perfectly legal ways simply raises the spectre of wrongdoing in a misleading and mischievous manner. Paid for ‘research’, produced by the tax hobbyists, supported by self interested union groups, and trumpeted by sympathetic bugles, claims that billions is being misappropriated through international finance centres. These claims have no credible evidence underpinning them, demonstrating an opacity which these same sources would find intolerable were it postulated by others.
Hopefully Mr Teather and Mr Cook will be both inclined, and able, to convince the Chief and Treasury Ministers of the need for a robust response to the EU and HMG – particularly as the current HMG has a future lifespan measurable in months at most.
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Friday, October 16, 2009

Does The Anglosphere’s Libertarian Capitalism Produce More Creative Freedom?

Sometimes all of us, including not least Clameur de Haro, need a little lightening up and R&R at the end of a distinctly average week. And with that malignant pipsqueak Stuart Syvret purporting to decide for himself which aspects of legal process should or shouldn’t apply to him, the continuing myopia of Jersey’s public sector employees to economic reality, and an EU tax bombshell blowing a hole through an already questionable fiscal policy, this week has certainly fallen into that category.
So on this grey-ish, adjectival October Friday, here’s a classic from CdeH’s not too outrageously mis-spent youth – the great, great, Lynyrd Skynyrd’s legendary performance of Sweet Home Alabama for The Old Grey Whistle Test on (CdeH thinks) 11 April 1975.

Clameur de Haro remembers his youthful self, in those far-off days possessed of long-ish and blond-ish locks and always an aficionado of Whistle Test rather than TOTP, watching the performance, mesmerised. It was one of those moderately seminal experiences we can all recall in our lives, in CdeH's case a Damascene conversion to the blazing vibrancy and musical integrity of Southern Rock that’s lasted now for 34 years.

But looking it again after all this time got CdeH thinking - why is it that the greatest and most successful rock bands of the past 40 years have come predominantly, not just from the democracies of libertarian capitalism, but specifically from their Anglosphere countries?

Is it just the superficially obvious answer of commonality of language and culture? Well, maybe, but that doesn’t quite feel like the whole story.

Or could it somehow be more than this - a subtle consequence of the systems that regulate the Anglosphere societies being based on common law with the presumption that we are all free to do anything we like which is not actually prohibited, rather than the Continental tradition of codifed law that restricts citizens' freedom to only that which is specifically permitted?

So that a bunch of music-mad teenagers in Jacksonville, Florida in 1964 could just go ahead and get together to express themselves without needing 27 separate permissions plus elf'n'safety and risk assessments from state, county and municipal bureaucracies? And in the process create, out of nothing, an artistic and commercial product that millions have exercised their freedom of choice to buy for 30 or 40 years, and still do.

And perhaps that’s a handy reminder also to the dirigiste leftists who argue that libertarian capitalism is a zero-sum game, that there exists by definition only a fixed total of wealth, which requires activist governmental intervention to re-distribute it “fairly”. The amount of wealth isn’t fixed – it can be created out of apparently nothing, provided that individuals and entrepreneurs are allowed the freedom to create it.

Is it really that fanciful to wonder whether, if the enviro-militant Greenists get their way, in five years time, 50 years after Skynyrd was formed, the local jobsworths of the Barack Obamania Federal Energy Use Control & Allocation Agency will tell another bunch of music-mad teenagers in Jacksonville, Florida that they’re not allowed the obligatory licence to just get together for a band practice and jam session in a friend's garage, because the power requirement would represent an irresponsibly unnecessary and frivolous use of the planet's precious resources?

What a lot of enjoyment future Clameurs de Haro would miss. And what an unrelievedly dreary and joyless world it would be. We have to stop it happening, and with the wheels slowly but inexorably starting to come off the Great Anthropogenic Climate Change Scam wagon, we will. But in the meantime, and just for 5 minutes and 41 seconds, click the video clip to full screen, turn up the volume on your speakers, sit back, and enjoy those classic riffs.

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Into The Lion’s Den With Daniel

Reluctant though Clameur de Haro is to compete with Daniel in the confines of the Lion’s Den, on examining more closely Mr Wimberley’s comments on some of the Greenism issues aired in CdeH’s recent post On Epithets, Labels, Beliefs, and Definitions ………, it does strike CdeH that Mr Wimberley’s response is, interestingly, equally significant for what he doesn’t say, rather than what he does.
Looking at some of these in more detail (with the original post in blue and Mr Wimberley’s comments in green) -
"The Godfather of the global warming scare industry, James Hansen"
which uses exactly the same techniques as he accuses Nick Palmer of using.
"scare"
errr well no, actually thousands of peer-reviewed articles written by scientists who are each of them would just love, wouldn't they, to become famous by DISPROVING or throwing at least a little spanner in the theory of anthropogenic global warming
"industry"
Oh, since when were Exxon paying Hansen et al to do their work? On no, sorry, silly me, "industry" refers to the support given by those industrialists who cannot put the common interest above their own narrowly defined interest, to people who can be paid to spread doubt, the key weapon, (exactly as was done by the tobacco giants, which is why I am justified in talking about "industry" and about "weapon")
"Godfather"
well we know who that was. . .
These are eminently fair points in response to normal journalistic knockabout, but Mr Wimberley did not attempt any rebuttal of CdeH’s salient point, which was the castigation of Hansen’s demand that any who merely question the claims of catastrophic warming should be put on trial.
Mr Wimberley did not rebut CdeH’s condemnation of the 2006 proposal of David Marxiband Millband that we should all be forced to carry a personal carbon footprint use swipe card.
He did not deny the proliferating use of CCTV surveillance cameras, originally justified and installed for counter-terrorism purposes, to spy on householders’ recycling habits.
He did not question, or attempt to justify, the use of children by local councils for enviro-enforcement espionage.
He did not actually deny or rebut the similarities between current Greenist policy prescriptions and those of the 1970s hard-left marxists.
"authoritarian restriction on private behaviour "
= green taxation or taxes on carbon or a carbon rationing system. Perhaps Clameur thinks it is more rational to tax labour when what we have is a surplus of people needing things to do which are paid, and what we do not need is to consume more. I rather think that ANY tax is seen as some kind of restriction by CdeH
Indeed - but only “Up to a point, Lord Copper”. Any kind of tax, being the state’s self-legitimated appropriation to itself of a private citizen’s legally-acquired wealth, is by definition a restriction on the citizen’s freedom to dispose his wealth as he sees fit. But that does not mean that CdeH advocates no taxation – on the contrary, he readily acknowledges that there are economic goods and public services needed by some or all of the population which only the state can or will fund, and that taxation is both an acceptable and the most practical way of raising the revenue needed.
The problems arise, and CdeH’s objections kick in, when states over-reach their remit or fail to control adequately their own spending, and use increased taxation as a prop – or when taxes are cloaked in a supposedly more acceptable colour conveniently to conceal their underlying purpose.
Mr Wimberley did not however deny the co-incidence of the impetus in vehement environmentalism with the collapse of communism.
He did not attempt to refute the explicit support of hard-left marxist Socialist Unity offshoot Green Left for an electoral pact with the Green Party.
"Derek Wall, former Male Spokesman (yes, I know – no laughing at the back of the class, please) of the Green Party,"
well no actually, there is no such thing. Poor old Clameur, it never does to check your facts, might get in the way of a nice sneer. The Green Party has a male speaker and a female speaker - or did until they voted recently to go for a single party leader, like the other parties, not sure what they have decided to call this person.
Again a fair point about the precise designation of Mr Wall – but what Mr Wimberley does not rebut is the more serious point about Mr Walls’ enthusiastic advocacy of growing collaboration between hard-left socialism and the Green movement, in the interests of both.
Smoke and mirrors, smoke and mirrors.
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Tuesday, October 13, 2009

Clameur De Haro's Political Compass

With fellow bloggers St Ouennais and Nick Palmer both having been kind enough to reveal their positions after taking the assessment questionnaire on The Political Compass, Clameur de Haro can hardly refrain from showing his own.
Attempting reverse analysis here is an inexact science, because the answers do not have corresponding scores on each of the axes, but for what it's worth, CdeH guesses that on the Authoritarian - Libertarian scale, the scoring from his antipathy to excessive state power and legislative restrictions on personal freedom is probably pulled back a little by the scoring from his support for a robust stance on both defence and the protection of the family as the principal societal unit.
But - wouldn't it be interesting and revealing if we could persuade all States' Members to take the test - and then publish the results so that we can all see exactly where they stand? Do any of them have the cojones to take up the challenge?
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A Comment From Daniel Wimberley

Possibly due to an undetected last ditch reaguard action on the part of the gremlins which have recently aflicted Clameur de Haro's comment moderation facility, a comment from Daniel Wimberley on his post "On Epithets, Labels, Beliefs and Definitions.........." was not highlighted for moderation.
CdeH therefore presents it as a separate post below -
Begins:
"The Godfather of the global warming scare industry, James Hansen"

which uses exactly the same techniques as he accuses Nick Palmer of using.

"scare"

errr well no, actually thousands of peer-reviewed articles written by scientists who are each of them would just love, wouldn't they, to become famous by DISPROVING or throwing at least a little spanner in the theory of anthropogenic global warming

"industry"

oh since when were Exxon paying Hansen et al to do their work? On no, sorry, silly me, "industry" refers to the support given by those industrialists who cannot put the common interest above their own narrowly defined interest, to people who can be paid to spread doubt, the key weapon, (exactly as was done by the tobacco giants, which is why I am justified in talking about "industry" and about "weapon")

"Godfather"

well we know who that was. . .

"authoritarian restriction on private behaviour "

= green taxation or taxes on carbon or a carbon rationing system. Perhaps Clameur thinks it is more rational to tax labour when what we have is a surplus of people needing things to do which are paid, and what we do not need is to consume more. I rather think that ANY tax is seen as some kind of restriction by CdeH

"Derek Wall, former Male Spokesman (yes, I know – no laughing at the back of the class, please) of the Green Party,"

well no actually, there is no such thing. Poor old Clameur, it never does to check your facts, might get in the way of a nice sneer. The Green Party has a male speaker and a female speaker - or did until they voted recently to go for a single party leader, like the other parties, not sure what they have decided to call this person.

Ends

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Monday, October 12, 2009

On Epithets, Labels, Beliefs, and Definitions ………

Clameur de Haro is prompted by recent comments on his posts to muse at length on the potential for confusion stemming from the epithets and labels applied to beliefs, and the benefits of more precise definitions.
Mr Frank Binney (a new commenter, and most welcome) raises the issue of how accurate, or otherwise, it is to apply the “left” or “right” label to the Greenists? Tony The Prof, in his courteous and erudite way as always, highlights the undesirability of debating climate issues with ad hominem arguments. Both comments, and the reasoned, courteous tone of them, merit a full response.
CdeH subscribes to the view of The Political Compass that the traditional “left” and “right” label is no longer sufficiently adequate to describe positions on the political playing field, because the continuum is one-dimensional, and predominantly an indicator of economic position – ranging from communism or overwhelmingly statist collectivism (on the left), to unfettered, unregulated, laissez-faire capitalism (on the right). And that a more sophisticated and illuminating definition of politico-economic philosophy can be made by complementing location on the economic dimension with a statement of position on the social, authoritarian-to-libertarian continuum, ranging from ultimate authoritarian (fascism, in fact) to ultimate libertarian (virtually anarchy).
It should come as no surprise to Clameur de Haro’s more careful and perceptive readers that CdeH finds himself in the area of the 4-o’clock position in the bottom right-hand quadrant of Libertarian Right – being unequivocally in favour of small government, free trade, free markets, low taxes, but light-touch regulation on the economic continuum, and with a moderate libertarian slant on the social scale, believing as he does that the state aggregates too much power to itself and then often proceeds to exercise it illiberally, and has no business, for example, interfering in willingly-undertaken social transactions between competent, consenting adults, provided that others are not harmed thereby.
Not a million miles from the Hayekian and Friedmanite positions, it would appear, which probably accounts for CdeH’s intuitive listing of Friedman’s “Free to Choose” and “Capitalism and Freedom” as among the most influential formatives of his political / economic thinking.
CdeH frequently has the label “right-wing” hurled at him as an insult. On The Political Compass’ economic continuum, of course, this is, as far as it goes, a more correct than incorrect identification of his economic and fiscal philosophy (although quite why the belief that government is not per se automatically efficient and that taxpayers should be entitled to keep more of their own money, should be a cause for insult, is mystifying).
But on the social policy scale, and when hurled at a commentator who -
(1) naturally inclines to concern at the accretion and abuse of power by the authoritarian state and its agents;
(2) has been appalled at the implications for our liberty as citizens of Labour’s 12-year attack on habeas corpus, the right to jury trial, the right to silence, and the presumption of innocence, all on spurious grounds; and
(3) would choose La Moye rather than be forced to carry a show-on-demand ID card or render up his DNA without just cause, believing that it is his property and not that of the state,
the epithet “right-wing” as an insult is hilarious in its inaccuracy (as Clameur de Haro’s friends who know his views on privacy and personal freedom issues tell him), and betrays rather more about the insulter that it does about the criticised.
Where does this take us on the subject of applying labels in that area where politics and Greenism meet?
CdeH has good friends, occupying varying locations on the left-right economic-fiscal spectrum, who are very environmentally-minded but who equally accept that scepticism on green issues is valid, healthy, and should in a free society be widely aired, and that this is all very much a matter of private, personal choice, not public coercion. In no way could they be described as fundamentalist Greenists. On this specific point of socio-political philosophy, we would have to place them in the libertarian half on the authoritarian–libertarian scale.
But others – indeed, many others - appear, regrettably, to be much less tolerant. Consider just the following examples –
The Godfather of the global warming scare industry, James Hansen, being on record as averring that anyone who even questions the postulate of catastrophic warming should be put on trial. Not positively counter-argues it – merely questions it;
The proposal of David Marxiband Milliband, when UK Energy Secretary in 2006, to force the entire population of the UK to carry a swipe card to be presented on every transaction, with every single person in the land being expected to render account for their carbon footprint and being allocated a personal annual carbon allowance – enthusiastically endorsed by the then environment correspondent of The Guardian (now there’s a surprise) in the following terms –
“The move marks the first serious step towards state-enforced limits on the carbon use of individuals……….extends the principle of carbon to consumers, with heavy carbon users forced to buy unused allowances from people with greener lifestyles” ;
The proliferating use of CTV surveillance cameras, originally justified and installed for counter-terrorism purposes, to spy on householders’ recycling habits;
The admission of Ealing Council in West London that “hundreds of Junior Streetwatchers, aged eight to 10, [have been] trained to identify and report enviro-crime issues” and that of Harlow Council in Essex which has said it has “25 ‘Street Scene Champions’, all aged between 11 and 14, who are encouraged to email or telephone the council if they suspect that an ‘enviro-crime’ has been committed” ;
The examples of prominent EU Greenists with hard-left, marxist, pasts: those of us of a certain age, (pace Tony The Prof) remember, for example, Joschka Fischer and Daniel Cohn-Bendit propagating in the 1970s, revolutionary socialist prescriptions eerily precursory of much of both the authoritarian restriction on private behaviour and freedom, and the “for-the-sake-of-the-environment-and-the-planet” taxation that the Greenists espouse today. Is it really just a coincidence that aggressive environmentalism really started to take off in the early 1990s when communism was finally consigned to the scrapheap?
The rallying call of Green Left - an offshoot of hard-left marxist Socialist Unity - for an electoral pact in Birmingham with the Green Party “……….to give a progressive and environmentally aware candidate the chance of taking the seat, and a victory for all those opposing the policies of privatisation, war, greed, racism and environmental destruction. We are firmly of the belief that this will benefit both the Green and progressive movements in this country……….” ;
The author of this, intriguingly enough, is one Derek Wall, former Male Spokesman (yes, I know – no laughing at the back of the class, please) of the Green Party, who in another incarnation also comes up with this explicit summary of the advantages from the growing collaboration between hard-left socialism and the Green movement -
“The creation of an Eco-socialist International network seems a good institutional basis for making European Green Parties more radical and I would like to see EU Greens working with the Nordic Green Left. I hope that it builds an eco-socialist network that links activists in every single state on this planet and, as we agreed in Paris, to work to make greens redder and reds greener.”
This, and plenty more of the same, can be viewed at http://www.climateandcapitalism.com/.
All of which suggests to Clameur de Haro that, far from the idea of Greenist Fundamentalism being an exaggeration, when taken overall, ample justification exists for that upper left Authoritarian Socialist quadrant of The Political Compass being the correct location for the activist, militant Greenism most often propounded by the save-the-planet-warriors. This is what he refers to when he speaks of Green Fundamentalists. As we can see, there’s a lot of it about.
And yet CdeH is mocked by a commenter for displaying a “Green is the New Red” logo on his sidebar?
Which brings us inevitably on to Mr Nick Palmer, Clameur de Haro’s most frequent commenter, and serial ritual abuser. Mr Palmer is fond of labelling CdeH as a recidivist perpetrator of what seems in his lexicon to be that most heinous of all crimes, far, far worse than mass-murderer, or child-abductor, or financial swindler, or…………………well, worse than anything at all really, namely being a “global warming denier”.
It sheds, firstly, an interesting perspective on the more strident advocates of radical environmentalism that mere scepticism, inherently just a manifestation of thought or opinion, rather than any illegal actions or criminal deed, should be judged so deserving of such calumny. But given on the one hand the inclination so prevalent in Gramscian cultural marxism (to give the colloquial, more familiar, label of political correctness its ideological origin) to establish, define, and prosecute crimes of thought and opinion, and on the other hand the correlation between Gramscian thought and militant Greenism, CdeH is relatively unsurprised by this.
The attaching to sceptics of the term “denier” in this context is quite deliberate, and no mere accidental or careless use of language. Its users are employing one of the classic tactics of cultural marxism – closing down the argument and thereby circumventing debate. It’s exactly the same technique which accuses someone of racism if they attempt to discuss whether current levels of immigration are sustainable, or of elitism if they suggest that a few more grammar schools with scholarships might actually benefit bright children from modest backgrounds, or of xenophobia if they suggest that handing over sovereignty to an unelected and unaccountable supranational authority might not be a terribly good thing for democracy. By seeking to equate enquiring scepticism about anthropogenic climate change with something as repellent as (primarily) Holocaust denial, they try to convey the idea that their target is so irretrievably and unspeakably vile that anything they say should not even be given a hearing, never mind taken seriously.
For the record, Clameur de Haro does accept that there has been an upward movement in average global temperatures over significant periods of the past century-and-a-half or so, but equally is persuaded that this has not been the case since 1998. As indeed, even the warmists – from the IPCC, who acknowledged that its first apocalyptic predictions omitted the Medieval Warming entirely, through Mann, who eventually conceded the fundamental flaws in the algorithms which generated his infamous hockey-stick, to the Biased BBC, which has just reported that for the last 11 years no increase in global temperatures has been observed and that there could be 30 years of cooling due to falling ocean temperatures - have had to admit.
Noticeable, isn’t it, how in the last few years, it’s all become “catastrophic climate change” rather than “catastrophic global warming”?
He has yet to be convinced, also, by the entire man-made / CO2 argument, having seen too many graphs of data sets showing non-correlation between temperature and CO2 output, temperature cooling during periods of rising CO2 output irrespective of whichever time lag is attempted, and studies suggesting that CO2 levels may be the consequence, not the cause, of temperature movements.
And he feels unable to ignore the peer-reviewed evidence that the Earth’s climate has changed throughout its history (and that a mere 30 years ago, some of today’s warmists were ardently warning of catastrophic global cooling and the strong danger of a new ice age). Climate change isn’t unlikely – it’s guaranteed, as it has been for the last x million years, mankind or no mankind, and CdeH is presently unconvinced that human influence on it, while possible, is nevertheless other than peripheral. The notion of “combating climate change” CdeH suspects, is about as feasible as combating tomorrow morning’s sunrise or combating the advent of next Christmas.
So, the correct term for Clameur de Haro is actually “anthropogenic climate change sceptic”. But then that’s so much less emotive as a term of derision than “global warming denier”, isn’t it? Perhaps those who inadvertently - or more likely deliberately - conflate the two need to put “dictionary” at the top of their Christmas List.
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Wednesday, October 07, 2009

A Greenist’s Dilemma!!

What a truly exquisite dilemma is posed for the doom-mongering proselytizers of the Green Religion by the revelation that, if Arctic ice sheets really were in the cataclysmic permanent decline which they claim, one of the consequences would be to open up access to substantial reserves of currently untapped oil and gas – as much as 13% of the world’s previously undiscovered oil and no less than 30% of its previously undiscovered natural gas.

Not that it’s going to happen any time soon, of course.

The latest data and models from the University of Colorado’s National Snow and Ice Data Centre show that, even though the rate of seasonal summer ice-melt is up (although it’s lower this year than in 2007 and 2008), the rate of over-winter recovery is such that total ice coverage has only decreased at the rate of 2.6% per decade (yes, that’s right – about a quarter of one per cent per year) over the last 30 years – hardly the cataclysmic decline that the alarmists postulate.
What’s more, polar explorers have been observing fluctuations in Arctic ice coverage and temperatures for 200 years. The data readings entered in the 1818 ship’s log of the HMS Isabella, recently released from the records of the National Archives as part of the UK Colonial Registers and Royal Navy Logbooks Project, suggest that there has been minimal or even no significant change in sea temperatures in large parts of the Arctic. The ship’s log of the HMS Dorothea from its 1818 expedition to the Norwegian Arctic show that the summer weather of 1818 in the high northern latitudes was not significantly cooler than that of the last 30 years.
However, Clameur de Haro must acknowledge that there is a contrary view, for he is aware of the alternative report submitted to the Admiralty which contained the following –
“A considerable change of climate, inexplicable at present to us, must have taken place, by which the severity of the cold that has, for centuries past, enclosed the seas in the high northern latitudes in an impenetrable barrier of ice has been, during the last two years, greatly abated. This affords ample proof that new sources of warmth have been opened.”
The date of this? November 1817. That’s right, 1817. It seemed to be getting warmer and ice coverage seemed to be decreasing. Must have been the carbon footprint of all those Laplanders and Inuit importing their polenta from Tuscany and their winter strawberries from Kenya, and driving their 4x4s to Starbucks on their way to their EasyJet holiday flights.
And even the Hadley Centre, in its latest report bout of scaremongering, can do no more than confine itself to warning that the Greenland ice sheet could recover to only (yes, only) 80% of its current size were it decrease through ice-melt by 15% over the next 300 years – and it could even disappear entirely over several thousand years.
Clameur de Haro couldn’t hope to top the erudition of the scorn rightly poured on this by Tim Worstall here, so a grateful H/T to Tim for this one.
But - oh dear, oh dear, whatever will the Peak Oil doomsters do now? If the “Greenland Ice Melt Through Catastrophic Man-Made Climate Change” part of their faith comes to pass, that blows an even bigger hole than the one that exists already in their Peak Oil belief, because substantial additional reserves become economically extractable. But if they want to continue to adhere to their Peak Oil credo, those additional reserves have to remain discounted from their calculation of remaining finite resources - which requires them to admit, ahem, that the Arctic ice sheets won’t actually be melting to the degree predicted.
Not that Clameur de Haro thinks that any of this will deter the Greenists of course - after all, mustn’t let the Inconvenient Truths of science and reason get in the way of the true religion…..
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Monday, October 05, 2009

Great – But Not The Line In The Sand That Some Will Want To Believe

Clameur de Haro was delighted to join with 7000 of his fellow islanders at St Ouen’s Bay yesterday in protesting the despoilation of our beautiful coastline by some truly hideous over-developments, for he seldom views the architectural excrescences at La Coupe, Portelet, Le Hocq and above St Aubin without shaking his head in disbelief at how they could have secured planning approval. So - many congratulations to Mike Stentiford and all his colleagues.
CdeH was particularly heartened also by the Planning Applications Panel’s decision unanimously to reject the proposed development of 73 chalets at Plemont. He found it disturbing however that the department’s civil servants apparently recommended its approval on planning grounds, for how anyone could envisage 73 chalets to constitute a substantial environmental gain defies belief. This is surely an area for an independent enquiry into the internal departmental processes.
But – a small word of warning. CeH noted the presence on St Ouen’s Bay of one or two politicians from the left-green end of the political spectrum, for whom the protection of the natural heritage is just part of a wider and more radical agenda for anti-business, heavily-taxing, aggressively redistributive economic and fiscal policies, and the imposition of either curbs or costs on individual freedom, advocated in the cause of environmental rectitude but equally in line with the collectivist ideologies to which they subscribe to greater or lesser extent.
The overwhelming majority of those to whom Clameur de Haro spoke were not in this category – they were there to protest against unsympathetic coastline encroachments (and rightly so), but that was all. So the left-green activists should beware – there is, justifiably, a huge mandate for resisting some of the planning approvals coming from the pen of Greenwash Freddie The Environment Minister, but that does not mean a 7000-person mandate for socialism.
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Sunday, September 06, 2009

Rebels Against The Future

Clameur de Haro was torn between whether to laugh or cry yesterday on reading in the Jersey Evening [sic] Post about the sputtering outrage of local retailers, echoed by David Warr of the Chamber of Commerce, at Jersey Post’s initiative to inflict on deliver to every home in Jersey a copy of the Argos catalogue.
[Although one does so hope that it will be only one copy – according to the report’s author, Carly Lockhart, “thousands of Argos catalogues are being delivered to every Island household” – er, that’s rather a lot of catalogues]. CdeH’s, whether just the one or the threatened promised thousands, will be going straight into the bin, but that’s beside the point.
The grounds for protest attributed to Mr Warr and Barry Jenkins of Fotosound really are risible.
At the basic level, anyone can access Argos’ product ranges on-line, and can obtain a catalogue anyway by merely phoning and asking for it, so even though Jersey Post’s initiative does look a little superfluous for those and other reasons (CdeH has no trouble finding online retailers who deliver to the C.I. at only modest additional cost - and deduct the VAT in full as well) the criticism of it by Mr Warr and Mr Jenkins completely (but predictably) misses the point.
Although, and as CdeH blogged only a couple of days ago, if Jersey Post was to be fully privatised and have its connections with the public sector severed completely, the line of attack that a States’ organisation is threatening local retailers would become untenable.
Mr Jenkins and Mr Warr also betray a telling reluctance to appreciate, or acknowledge, that previous retailing and distribution business models have irreversibly changed, and that they are on the wrong side of the argument. Jersey has suffered for far too many years from the unhealthy predominance of producer interests – whether public sector unions, or retailers comfortably insulated from competition and free trade – and transition to a situation where consumer interests are paramount is to be welcomed.
Just a modicum of research reveals how uncompetitive local retailers can be. A quick Clameur de Haro glance into the window of Mr Jenkins’ Charing Cross emporium reveals some rather vague pricing labels generally, but specifically a Samsung VPMX20 Camcorder at £149.99 and a Sanyo CE32LD90 television at £329.99. The Camcorder is available online at anything from £135 (and approximately £125 ex-VAT at Amazon), while the TV is retailed online from £292.95 ex-VAT. Can Mr Jenkins or Mr Warr provide any kind of convincing reason as to why prospective purchasers should not take advantage of these savings?
Clameur de Haro doubts it. Their grievance is, fundamentally, a Luddite argument: presumably in former times they would have been found protesting that their horse-drawn carters’ businesses should be protected from the competition posed by motor-lorries, or perhaps whinging that this new-fangled electricity thing was killing off their candlestick shops. Messrs Jenkins, Warr et al may bleat as long as they like that the high rents, rates and overheads they are forced to pay choose to endure inhibit them from matching internet retailers on price. But that, although arguably a problem for them, is not one for their prospective customers.
Jersey retailers also typically appear to hold low stock inventories, leading to either restricted choice of product or unacceptably long delivery times, and obtaining spares is often well-nigh impossible, with more than a few shop staff showing little interest in providing a service capable of fulfilling customers’ requirements. Mr Warr moreover is on record in the past as saying that consumers’ expressed preferences for lower prices are not really that at all.
Consumers are proving him wrong with every mouse-click. Competition, choice, and free trade – long may they flourish.
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Saturday, September 05, 2009

The JDA's Scintillating Standards of Numeracy

In this blogpost today, the JDA's "Pandora", perhaps a little lacking in awareness of matters mathematical, refers us to Mahatma Gandhi's own list of 7 deadly sins - and then purports to enunciate them as requiring display at the entrance to the States' Chamber for all to read.
However, complete fulfilment of that exhortation may unfortunately prove slightly problematical, as the list contains only 6.
If this is indicative of the JDA's grasp of numbers, Heaven help us all should one of them ever succeed in getting into a position to influence economic or taxation policy.
However, there is, as they say, some previous form here - Clameur de Haro recalls that, last December, Geoff Southern appeared to think that obtaining the least number of votes in States' elections to ministerial positions somehow meant that he was actually the preferred choice of members.
CdeH wonders if the missing 7th deadly sin was perhaps "Electioneering without Fraud". That might explain its omission, on the grounds of potential embarrassment.
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Friday, September 04, 2009

Privatise Jersey Post – Now!

Over at Jersey 24/7, Clameur de Haro’s fellow-blogger made the point a couple of days ago that it’s time Jersey Post was sold off. His reasoning was based specifically on the potential damage likely to be inflicted on the local retail sector by Jersey Post’s new Ship2Me service, but he is undoubtedly right in the wider context as well. The case for the full privatisation of this business and its disposal out of public sector ownership and control entirely is overwhelming.
Initially, the economic philosophy argument. Generally, being naturally less efficient than private enterprise, government should restrict itself to providing only those services which the private sector is unable or unwilling to provide. Throughout Europe, mail and postal services are increasingly shown to be capable of being willingly delivered by the private sector at reasonable cost and to an acceptable return. Where is the compelling evidence that Jersey is an exception?
Subsequently, the practical points. A Jersey Post continuing in even partial public sector ownership is undesirable on at least three counts: firstly, it’s a monopoly, which is bad enough; secondly, it’s a public sector monopoly, which is even worse; and thirdly, it’s a unionised public sector monopoly, which virtually guarantees sub-optimal operation and unresponsive customer service.
Any reader who doubts the latter should try visiting Broad Street on a busy lunchtime and noting what proportion of total counter positions are actually open. Rarely does the ratio exceed 50% (even during the long queues of the annual pre-Christmas rush): presumably this is mainly because of union resistance to instituting shift patterns which would deploy the greatest numbers of customer-facing staff precisely at the times of peak customer demand, exacerbated by an inherent management disincentive, stemming from the business’ position as a semi-state-owned monopoly with guaranteed protection from competition, to even tackle this issue.
Does anyone really imagine that this degree of insensitivity to customer demand could be sustained if Jersey Post was a 100% private sector enterprise accountable to multiple shareholders, and forced moreover to compete with other mail service providers on price and service levels? As many of CdeH’s acquaintances have remarked, it was only the arrival of Sure and the ending of Jersey Telecoms’ monopoly which forced JT to provide a retail facility in the main shopping precinct.
And then, to add insult to injury, in recent years the wealth-creating private sector has had to endure the sight of Jersey Post executives both publishing excessively self-congratulatory annual statements and paying themselves handsome bonuses commensurate with private sector out-performance in the face of stiff competition; totally unjustified in the case of a protected, esentially public sector monopoly.
It’s a fairly openly-expressed opinion in the Island’s financial and business community that when the full disposal of Jersey Post was looked at a few years ago, potential buyers were scared off by the size and extent of the potential future liabilities represented by the (typically for the public sector) exceptionally generous but under-funded employees’ pension scheme. And that only by promising that the taxpayer, rather than the purchasers, would retain these liabilities could the States even get potential buyers to pursue their initial interest.
Neither that particular issue, nor the strength of the conceptual argument for full privatisation, nor the opportunity cost to the Island of the States’ non-realisation of this asset at a time of financial stringency, are going to go away at any time in the foreseeable future. And transferring Jersey Post to private ownership in its entirety would also blunt the criticisms from retailers about its (totally legitimate) expansion of fulfilment business on the grounds of its public sector component.
It’s vital therefore that the States develop the resolve to resist and defeat the inevitable specious arguments – which will be superficially predicated on fears of reduced customer service, but will actually be founded on ideological committment to state ownership and hostility to private enterprise – and move to end both Jersey Post’s increasingly indefensible monopoly and its protected, even quasi-public sector, status.
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Thursday, August 13, 2009

Bravo!! for 42 Members of the Australian Senate

Clameur de Haro salutes the 42 members of the Australian Senate who yesterday brought some much-needed legislative sanity to the Great Catastrophic Anthropogenic Climate Change Scam by voting to reject the leftist Rudd Government's potentially ambitious tax-hiking (in the midst of a recession), economy-damaging, and over-regulating Carbon Pollution Reduction Scheme.
And Chapeau! especially to Sen. Steve Fielding, who rather than just succumbing to the Green alarmists’ propaganda and all the usual hysterical “denier” / “you are killing our children” / “you must be in the pay of big mineral” insults from the shrills, actually talked to as many scientists as possible, came to the realisation that the science is very far from settled and there is very much not total consensus, and then presented impeccable, scientific, peer-reviewed evidence to the effect that man-made CO2 emissions are small compared with natural ones, and The Inconvenient Truth that despite rising CO2 levels, global temperatures have not in fact risen for more than a decade.
And what a delightful irony that 5 Green Party senators, furious that the Scheme didn’t go far enough for their tastes in the direction of hobbling business and the economy in the name of saving the planet, voted against it and thereby helped to bring it down. The words “hoist” and “petard” come unaccountably to mind.
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Two More Nails in the Coffin of Legitimate Financial Freedom

Clameur de Haro regrets to see that two more blows were struck this week against the freedom of the law-abiding to deploy their legally-acquired assets in entirely lawful ways.
On Tuesday, as part of a Tax Information Exchange Agreement with Lichtenstein, HM Revenue & Customs cut a deal with the Principality’s authorities under which HMRC will “offer” limited penalties on unpaid UK tax liabilities originating from Lichtenstein bank deposits, but the Lichtenstein authorities will arbitrarily close the accounts of depositors who decline to volunteer details to HMRC.
It’s disturbing to note that the intensification of pressure on the Principality arose largely from the German Government being prepared to trade in stolen property, i.e. buying customer data stolen from a Lichtenstein bank by a former employee.
Then on Wednesday, the HMRC Special Commissioners delivered a ruling which means that some 308 national and international banks with operations in the UK will be forced to hand over details of customers with bank accounts offshore, in defiance of banking confidentiality.
If both of these initiatives are targeted solely at illegal tax evasion, then Clameur de Haro has no objection whatsoever. As he posted some time last Autumn –
Neither the slightest degree of opprobrium, nor the slightest taint of immorality, should attach to any private citizen, whether an individual or a corporation, who so arranges his financial affairs, by lawful means, as to minimise or avoid the appropriation of his wealth by the state. [Note the words “by lawful means” and “avoid” – and the latter’s important distinction from “evade” – for CdeH does not defend or attempt to justify in any way, and roundly condemns, the illegal evasion of obligations in contravention of the law of the land].
So CdeH welcome theses initiatives if they only counter illegal evasion and incidentally detect illegal money-laundering - the transgressors deserve what they get, because for freedom to function, it must mean freedom under the law.
But HMRC has recently started to adopt a much more aggressive, authoritarian approach to its remit, one not always in accordance with the settled law of the land. Two things in particular should be of concern: it has been deliberately trying to blur the distinction between legal avoidance and illegal evasion in the direction of treating any and all legitimate avoidance as being, by definition, evasion: and it has been increasingly adopting the position that actual tax law is not what is laid out in statute, as interpreted by the judicial process, but what HMRC consider the intentions of the framers of legislation to have been, irrespective of the actual wording.
In this context, even the law-abiding with legally-held accounts, with no connotations of evading UK tax liabilities, have reason to fear. When government purports to arrogate to itself the power to decide what the law is, we all have reason to fear.
In such ways do viscerally high-taxing states seek to eliminate, by threats and intimidation, the alternatives available to their citizens, rather than lowering their profligate spending, decreasing the tax burdens they impose to fund it, and so reducing the incentives for taxpayers to shelter themselves from it.
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Saturday, August 08, 2009

Deconstructing the Financial Crises

On his way back from the Far East, Clameur de Haro passed a good deal of time reading arguably one of the best books yet to be published on the causes of the 2007-08 credit crunch and the subsequent banking crisis, Gillan Tett's book "Fool's Gold".
In an excellent read, Tett comprehensively charts the genesis and development of the ever more exotic, opaque, and risky off-balance-sheet financial instruments and structures that played such a pivotal part in creating the 2007 credit and liquidity crunches, and the ensuing banking meltdown.
Refreshingly however, she also shows that the anti-capitalist left who gleefully parrot the unthinking, intellectually lazy, but - for them - politically expedient mantra of "blame the bankers and blame free markets", disregard the myriad other relevant contributing factors, including those to be laid at the door of governments.
Prominent among these was the 1990’s Clinton administrations’ forcing mortgage providers, on the threat of prosecution and legal sanction under their own misconceived, mal-administered, political correctness-driven equality legislation, to lend to fundamentally uncreditworthy borrowers, with the consequent ratcheting up of the risk of defaults.
Equally significant were the inadequacy of government-conceived regulatory structures whose mandates explicitly excluded the credit derivatives markets and the parallel banking sector, and the lax monetary and interest-rate policies pursued for too long by central banks, at the behest of governments more concerned with creating a short-term feel-good factor for base political purposes, rather than pursuing policies ensuring medium-term financial stability.
Definitely a must-read for those who want to know, and for those who wrongly just assume that they do.
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