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Gennady Stolyarov II Interviewed on “Lev and Jules Break the Rules” – Sowing Discourse, Episode #001

Gennady Stolyarov II Interviewed on “Lev and Jules Break the Rules” – Sowing Discourse, Episode #001

Gennady Stolyarov II
Jules Hamilton
Lev Polyakov


U.S. Transhumanist Party Chairman Gennady Stolyarov II was recently honored to be the first guest ever interviewed on the video channel Lev and Jules Break the Rules with Lev Polyakov and Jules Hamilton. Lev and Jules have produced this skillfully edited video of the conversation, with content references from the conversation inserted directly into the footage. For those who wish to explore broad questions related to technology, transhumanism, culture, economics, politics, philosophy, art, and even connections to popular films and computer games, this is the discussion to watch.

This video was originally posted here. It is mirrored on Mr. Stolyarov’s YouTube channel here.

Become a member of the U.S. Transhumanist Party for free, no matter where you reside. Fill out our free Membership Application Form here. It takes less than a minute!

It is republished with permission.

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How to End the Korea Crisis – Article by Ron Paul

How to End the Korea Crisis – Article by Ron Paul

The New Renaissance Hat
Ron Paul
October 1, 2017
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The descent of US/North Korea “crisis” to the level of schoolyard taunts should be remembered as one of the most bizarre, dangerous, and disgraceful chapters in US foreign policy history.

President Trump, who holds the lives of millions of Koreans and Americans in his hands, has taken to calling the North Korean dictator “rocket man on a suicide mission.” Why? To goad him into launching some sort of action to provoke an American response? Maybe the US president is not even going to wait for that. We remember from the Tonkin Gulf false flag that the provocation doesn’t even need to be real. We are in extremely dangerous territory and Congress for the most part either remains asleep or is cheering on the sabre-rattling.

Now we have North Korean threats to detonate hydrogen bombs over the Pacific Ocean and US threats to “totally destroy” the country.

We are told that North Korean leader Kim Jong-Un is a “madman.” That’s just what they said about Saddam, Gaddafi, Assad, and everyone else the neocons target for US military action. We don’t need to be fans of North Korea to be skeptical of the war propaganda delivered by the mainstream media to the benefit of the neocons and the military industrial complex.

Where are the cooler heads in Washington to tone down this war footing?

Making matters worse, there is very little understanding of the history of the conflict. The US spends more on its military than the next ten or so countries combined, with thousands of nuclear weapons that can destroy the world many times over. Nearly 70 years ago a US-led attack on Korea led to mass destruction and the death of nearly 30 percent of the North Korean population. That war has not yet ended.

Why hasn’t a peace treaty been signed? Newly-elected South Korean president Moon Jae-in has proposed direct negotiations with North Korea leading to a peace treaty. The US does not favor such a bilateral process. In fact, the US laughed off a perfectly sensible offer made by the Russians and Chinese, with the agreement of the North Koreans, for a “double freeze” – the North Koreans would suspend missile launches if the US and South Korea suspend military exercises aimed at the overthrow of the North Korean government.

So where are there cooler heads? Encouragingly, they are to be found in South Korea, which would surely suffer massively should a war break out. While US Ambassador to the United Nations, Nikki Haley, was bragging that the new UN sanctions against North Korea would result in a near-complete blockade of the country (an act of war), the South Korean government did something last week that shocked the world: it announced an eight million dollar humanitarian aid package for pregnant mothers and infant children in North Korea. The US and its allies are furious over the move, but how could anyone claim the mantle of “humanitarianism” while imposing sanctions that aim at starving civilians until they attempt an overthrow of their government?

Here’s how to solve the seven-decade-old crisis: pull all US troops out of the Korean peninsula; end all military exercises on the North Korean border; encourage direct talks between the North and South and offer to host or observe them with an international delegation including the Russians and Chinese, which are after all Korea’s neighbors.

The schoolyard insults back and forth between Donald Trump and Kim Jong-Un are not funny. They are in fact an insult to all of the rest of us!

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.
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This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.
North Korea or Iran… Where Will President Trump Attack First? – Article by Ron Paul

North Korea or Iran… Where Will President Trump Attack First? – Article by Ron Paul

The New Renaissance Hat
Ron Paul
August 2, 2017
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President Trump seems to be impatiently racing toward at least one disastrous war. Maybe two. The big question is who will be first? North Korea or Iran?

Over the past several days President Trump has sent two nuclear-capable B-1 bombers over the Korean peninsula to send a clear message that he is ready to attack North Korea. On Saturday he blamed China for North Korea’s refusal to cease its missile tests. He Tweeted: “I am very disappointed in China… they do nothing for us with North Korea, just talk. We will no longer allow this to continue.”

One press report from an unnamed Pentagon source claimed that President Trump “is to order a military strike against North Korea within a year,” after this weekend’s North Korean test of a longer-range missile.

Iran, which along with North Korea and Russia will face new sanctions imposed by Congress and expected to be signed into law by Trump, is also in President Trump’s crosshairs. He was reportedly furious over his Secretary of State Rex Tillerson’s certifying that Iran was in compliance with the nuclear deal – even though Iran was in compliance – and he seems determined to push a confrontation.

Twice in the past week the US military has fired at Iranian ships in the Persian Gulf. On Tuesday an Iranian military ship in the Persian Gulf was warned off by machine gun blasts from a US Naval vessel. Then on Friday the US Navy fired warning flares toward another Iranian ship operating in the Persian Gulf.

Imagine if the US Navy had encountered Iranian warships in the Gulf of Mexico firing machine guns at them when they approached the Iranians.

Facing new sanctions, the Iranian government announced that it will not end ballistic missile testing even under US pressure. The missile program is not a violation of the P5+1 Iran deal unless it is specifically designed to carry nuclear weapons.

So whom will Trump attack first? Let’s hope nobody, but with continuing pressure from both Democrats and Republicans over the unproven “Russiagate” allegations, it increasingly looks like he will seek relief by starting a “nice little war.” If he does so, however, his presidency will likely be over and he may end up blundering into a much bigger war in the process.

Although Trump’s bombastic rhetoric on Iran and North Korea has been pretty consistent, the American people voted Trump because he was seen as the less likely of the two candidates to get the US into a major war.

A recent study by the Boston University and the University of Minnesota concluded that Trump won the most votes in parts of the country with the highest military casualties. Those most directly suffering the costs of war were attracted to the candidate they saw as less likely to take the US into another major war. These are the Americans living in the swing states of Wisconsin, Pennsylvania, and Michigan that surprised the pundits by voting for Trump over Hillary.

Will Trump’s legacy be blustering us into one or two wars that will make Iraq and Afghanistan look like cakewalks by comparison? Millions dead? It’s time to make our voices known before it’s too late!

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.

What Marx Could Teach Obama and Trump about Trade – Article by Jairaj Devadiga

What Marx Could Teach Obama and Trump about Trade – Article by Jairaj Devadiga

The New Renaissance HatJairaj Devadiga
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Karl Marx was hardly known for championing economic freedom. Yet, even he understood the evils of protectionism. Marx, as quoted by his sidekick Frederick Engels, gave probably my favorite definition of protectionism:

“The system of protection was an artificial means of manufacturing manufacturers, of expropriating independent laborers, of capitalizing the national means of production and subsistence, and of forcibly abbreviating the transition from the medieval to the modern mode of production.”

Wow. So much wisdom packed into one sentence, and from Marx of all people. Let’s go through the sentence piece by piece to understand its meaning.

“Artificially manufacturing manufacturers”

This is an obvious one. We need only look at Donald Trump and the way he seeks to create jobs in the United States. By imposing tariffs on imported goods, Trump wants to encourage their production in America by making it relatively cheaper. This is what Marx meant by “manufacturing manufacturers”.

“Expropriating independent laborers”

Protectionism, as Marx observed, hurts the working class. Apart from the corporations who are protected against foreign competition, and their employees, everybody loses. For example, when Obama increased tariffs on tire imports, it increased the incomes of workers in that industry by less than $48 million. But it forced everyone else to spend $1.1 billion more on tires.

Just imagine the impact of Trump imposing across the board tariffs on all products. The cost of living for the average working class American would shoot up by an order of magnitude. And that is not even considering the impact of retaliatory tariffs.

“Capitalizing the… means of production” and  “forcibly abbreviating the transition… to the modern mode of production.”

Marx knew that when you make it expensive to employ people by way of minimum wage and other labor regulations, you make it relatively more profitable to use machines. Economist Narendra Jadhav tracks how manufacturing in India has become more capital-intensive over the years. Tariffs on imported goods did not help create jobs in the manufacturing sector. Even though India has armies of young, unemployed people it is cheaper to use machines rather than comply with the nearly 250 different labor laws (central and state combined).

Just because Trump imposes a tariff on Chinese goods does not mean that jobs will “come back” to the US. Even if there were no minimum wage, wages in the US are naturally higher than wages in less-developed countries, meaning it would still be cheaper to use robots.

“Emancipation of the Proletarians”

Apart from more and better quality goods that would be available more cheaply, as economist Donald Boudreaux points out ever so often, there is another thing to be gained from free trade. Marx said it would lead to the “emancipation of the proletarians.” I turn once again to India as an example. Where earlier the rigid caste system forced so-called “untouchables” into demeaning jobs (such as cleaning sewers), in the past 25 years some of them have become millionaires as a result of India being opened up to trade.

It is a shame, that even when virtually all intellectuals, from F.A. Hayek and Milton Friedman to Karl Marx and Keynes, have agreed that free trade is the best, there are those who would still defend protectionism.

Jairaj Devadiga is an economist who illustrates the importance of property rights and freedom through some interesting real-world cases.

This article was originally published on FEE.org. Read the original article.

Protectionism Will Not Make America Great – Article by Pierre-Guy Veer

Protectionism Will Not Make America Great – Article by Pierre-Guy Veer

The New Renaissance HatPierre-Guy Veer
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At the end of June, presumptive Republican nominee Donald Trump made a fiery speech about trade in Pittsburgh. Using many of Bernie Sanders’ talking points on the subject, Trump said, among others, that he would hold China accountable for the manipulation of its currency and unfair trade practices, withdraw from the Trans-Pacific Partnership, and renegotiate the North American Free Trade Agreement with Mexico and Canada.

Trade vs. Trade Treaties

There is some wisdom on Trump’s part about NAFTA. This agreement would deserve the label “bureaucratic agreement on trade” rather than “free trade agreement.”

For example, Annex 313 states that Bourbon and Tennessee Whiskey can only be called as such (and be sold) if they are produced in Tennessee “in accordance with the laws and regulations of the United States governing the manufacture of Bourbon Whiskey and Tennessee Whiskey.”

The same rule applies to Canadian Whisky in Canada and Tequila and Mezcal in Mexico. Annex 703.2.A.4, on its side, contains a truckload of products which are exempted from free trade, including Canada’s milk supply management which may cost the average family $267 a year.

Trump is also right about being hesitant to support the TPP. What has leaked out of it shows that the agreement has more to do about protecting intellectual property rather than genuine trade liberalization. Such protection would stifle innovation and slow economic growth – just imagine if there had been a patent on the wheel or iron casting when it was first invented.

Fairness is Buying What You Want from Wherever

However, Donald Trump is wrong to advocate for “fair” trade. In his platform he calls for a level playing field in order to have a “fairer” trading relationship with China, known for its heavy top-down approach on foreign businesses.

This amounts to protectionism that could set off a very costly trade war. American consumers will pay the price – a form of tax. It could set off a deep recession. When you consider the stakes here, you see that all of Trump’s valid complaints about trade treaties are designed to bring about something that is even worse.

If, however, Trump’s goal is really to “make America great again,” then he should not be caring about China’s trade practices, but embracing unilateral free trade.

Of course there would be unavoidable, short-term pain with job losses in industries that cannot compete with China and other industries. The steel industry, for example, would not be protected by the recently enabled 266-percent tariff imposed on Chinese steel and would shed many jobs.

However, people using steel (for construction, manufacturing, etc.) would save so much money by being able to import cheaper steel. This surplus money will not evaporate; it will return in the economy in the form of savings, job creation, and economic growth.

This is not trade theory: unilateral free trade has successfully happened. Famous French liberal Frédéric Bastiat has abundantly talked about England turning to unilateral free trade and how it helped the country become even richer.  It even “gave them bread” during a bad harvest 1847 thanks to wheat imports.

By walking down this “bold path,” to quote minister Peel who enacted free trade, America would truly be great. Government would stop subsidizing agriculture in every single form, thereby not only improving the quality of the water supply, but also reversing the contentious debate about undocumented Mexicans whose livelihood was destroyed by U.S. corn subsidies. Capital resources would be allocated in a more efficient way according to supply and demand – it might still be farming, but it could become manufacturing, mining, or even services – and save an average of $6.1 billion per year until 2019.

Trade liberalization, combined with Trump’s promises to lower business income tax to 15 percent and tackle the deficit and debt, would truly “make America great again.” Because after the unavoidable short-term pain of adjusting to new incentives, Americans will get back to work and better supply the world’s demand on their own.

Pierre-Guy Veer


Pierre-Guy Veer

Pierre-Guy Veer is a Linguistic Reviewer at Lionbridge

This article was originally published on FEE.org. Read the original article.

Globalization’s So-Called Winners and Losers – Article by Chelsea Follett

Globalization’s So-Called Winners and Losers – Article by Chelsea Follett

The New Renaissance HatChelsea Follett
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A recent Washington Post analysis has argued that political events as diverse as the Brexit and the rise of Donald Trump can be explained by a “revolt” of the world’s economic “losers.”

Before proceeding, it is important to keep in mind that all income groups in the world have seen gains in real income over the last few decades. That said, some have gained more than others. Between 1988 and 2008, for example, the lowest gains were made by people whose incomes fit beteen the world’s 75th to 90th income percentiles. That includes much of the middle and working class in rich countries.

The Washington Post calls the people in this group the bitter “losers” of globalization. But, are they?

follett1There are at least two problems with characterizing such people as “losers.” First, it seems to suggest that income growth rate matters more than absolute income level. Yet a person in the 80th income percentile globally would not want to trade places with or envy someone in the bottom 10th percentile, despite the latter’s much higher income growth rate.

Consider real GDP per person, adjusted for differences in purchasing power, in China and the United States. Between 1988 and 2008, China’s per person GDP grew by over 340 percent. America’s per person GDP, in contrast, grew by “only” 40 percent. China may be making gains more quickly, but it would be wrong to argue that the United States was a “loser,” for American GDP per person in 2008 was $52,704 and China’s $8,104.

chinagrowth

Poor countries are seeing faster income gains partially because their starting point is so much lower—it’s a lot easier to double per person GDP from $1,000 to $2,000 than from $40,000 to $80,000.

The second problem is that the Washington Post piece suggests that the incredible escape from poverty that has occurred in poor countries during my lifetime has come at the expense of the middle classes in the developed world. (This is a fascinating reversal of the more popular, but equally inaccurate, opinion that the Western riches came at the expense of poor countries).

Thus, the Washington Post piece claims, “global capitalism didn’t always work so well for workers in the United States and Europe even as—or, in some cases, because [emphasis mine]—it pulled hundreds of millions of people out of poverty everywhere else.”

Fortunately, prosperity is not a zero sum game.

When trying to understand the “winners” and “losers” of globalization, it is important that we do not compare income growth rates over the last few decades with some imagined ideal. Instead, we should compare income growth to what would have happened in a world without globalized trade. In such a world, hundreds of millions of people would have remained in extreme poverty. And the middle class of the developed world would also have made fewer gains. Just look at the amazing reduction in price of consumer goods that we have collected at HumanProgress.

A few individuals in select industries would benefit from protectionism, like the U.S. sugar industry does now. But on average everyone would be poorer, just as in 2013 Americans collectively paid 1.4 billion dollars more for sugar than they would have without protectionism. (The U.S. manufacturing industry, it may be worth noting, would not be among the “select industries” to benefit—most manufacturing job losses have come from mechanization rather than outsourcing, and have been offset by new jobs in other sectors).

Thanks to trade and exchange, people in all income percentiles have made real gains, and living standards for the middle class in advanced economies have soared in ways not captured by looking at income alone. America’s middle class is getting richer, and the people in the world’s 75th to 90th income percentiles are also winners.

Chelsea Follett is the Managing Editor of HumanProgress.org, a project of the Cato Institute which seeks to educate the public on the global improvements in well-being by providing free empirical data on long-term developments. Her writing has been published in the Wall Street Journal, Newsweek, and Global Policy Journal. She earned a Bachelor of Arts in Government and English from the College of William & Mary, as well as a Master of Arts degree in Foreign Affairs from the University of Virginia, where she focused on international relations and political theory.

This work by Cato Institute is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.

What Are The Chances For Peace in 2016? – Article by Ron Paul

What Are The Chances For Peace in 2016? – Article by Ron Paul

The New Renaissance HatRon Paul
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Each year more than one trillion dollars goes up in smoke. More accurately, it is stolen from the middle and working classes and shipped off to the one percent. I am talking about the massive yearly bill to maintain the US empire. Washington’s warmongers have sold the lie that the military budget has been gutted under President Obama, but even when the “Sequester” was in effect, military spending continued to increase. Only the pace of increase was reduced, not actual spending.

None of this trillion dollars taken from us is spent to keep us safe, despite what politicians say. In fact, this great rip-off actually makes us less safe and more vulnerable to a terrorist attack, thanks to resentment overseas at our interventions and to the blowback they produce.

The money is spent to maintain existing conflicts and to create new areas of conflict overseas that in turn feed the demands for more military spending. It is an endless cycle of theft and deceit.

Billions were spent not long ago overthrowing an elected government in Ukraine and provoking Russia. A new Cold War is a bonanza for the military-industrial complex, the pro-war think tanks, and the politicians. NATO is on the move in eastern Europe, placing heavy weapons right on Russia’s border and then blaming the Russians when they complain about the rising militarism. NATO military exercises on Russia’s border have increased and become more confrontational.

In the Middle East, more billions have been spent attempting to overthrow the secular government of Syria over the past five years. The big winners in this grand scheme have been the Islamist extremists, who are funded directly and indirectly by the US and its allies. NATO is planning to go back into Libya, an admission that its 2011 “liberation” of that country has been a disaster.

In Asia, the US empire challenges and provokes China, sending military ships and aircraft into territory China claims in the South China Sea. How much will the US continue to escalate before China gets fed up?

The more money sent to the Pentagon and other parts of the Washington war apparatus, the more danger we are in.

Meanwhile, almost all of the presidential candidates promise more military spending and more war if they are elected. Did no one tell them we are broke and making enemies fast with our interventions? Do they think Fed-created money will really continue to fuel the US empire indefinitely?

What are the prospects for a U-turn toward peace and prosperity in 2016? We must be realistic. Presently the numbers are not on our side. But the good news is we do not need a majority to succeed in our fight for peace and liberty. We need only a dedicated and uncompromising critical mass to make great headway.

What can we do to work for peace in 2016? First we must tune out the lying propaganda served up by the US mainstream media. We must educate ourselves so that we can help educate others. We can be sure to tune in and support alternative sources of news and analysis like the Ron Paul Liberty Report, LewRockwell.com, Antiwar.com, and many others. We can tell others about the wealth of truth available to those who seek and question. We must not compromise and never accept the lesser of two evils.

If the people demand peace, the politicians will follow. Let’s demand peace in 2016!

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.

The Fed Can’t Raise Rates, But Must Pretend It Will – Article by Thorsten Polleit

The Fed Can’t Raise Rates, But Must Pretend It Will – Article by Thorsten Polleit

The New Renaissance HatThorsten Polleit
October 26, 2015
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Waiting for Godot is a play written by the Irish novelist Samuel B. Beckett in the late 1940s in which two characters, Vladimir and Estragon, keep waiting endlessly and in vain for the coming of someone named Godot. The storyline bears some resemblance to the Federal Reserve’s talk about raising interest rates.

Since spring 2013, the Fed has been playing with the idea of raising rates, which it had suppressed to basically zero percent in December 2008. So far, however, it has not taken any action. Upon closer inspection, the reason is obvious. With its policy of extremely low interest rates, the Fed is fueling an artificial economic expansion and inflating asset prices.

Selected US Interest Rates in Percent
Selected US Interest Rates in Percent

Raising short-term rates would be like taking away the punch bowl just as the party gets going. As rates rise, the economy’s production and employment structure couldn’t be upheld. Neither could inflated bond, equity, and housing prices. If the economy slows down, let alone falls back into recession, the Fed’s fiat money pipe dream would run into serious trouble.

This is the reason why the Fed would like to keep rates at the current suppressed levels. A delicate obstacle to such a policy remains, though: If savers and investors expect that interest rates will remain at rock bottom forever, they would presumably turn their backs on the credit market. The ensuing decline in the supply of credit would spell trouble for the fiat money system.

To prevent this from happening, the Fed must achieve two things. First, it needs to uphold the expectation in financial markets that current low interest rates will be increased again at some point in the future. If savers and investors buy this story, they will hold onto their bank deposits, money market funds, bonds, and other fixed income products despite minuscule yields.

Second, the Fed must succeed in continuing to postpone rate hikes into the future without breaking peoples’ expectation that rates will rise at some point. It has to send out the message that rates will be increased at, say, the forthcoming FOMC meeting. But, as the meeting approaches, the Fed would have to repeat its trickery, pushing the possible date for a rate hike still further out.

If the Fed gets away with this “Waiting for Godot” strategy, savings will keep flowing into credit markets. Borrowers can refinance their maturing debt with new loans and also increase total borrowing at suppressed interest rates. The economy’s debt load can continue to build up, with the day of reckoning being postponed for yet again.

However, there is the famous saying: “You can fool all the people some of the time and some of the people all the time, but you cannot fool all the people all the time.” What if savers and investors eventually become aware that the Fed will not bring interest rates back to “normal” but keep them at basically zero, or even push them into negative territory?

If a rush for the credit market exit would set in, it would be upon the Fed to fill debtors’ funding gap in order to prevent the fiat system from collapsing. The central bank would have to monetize outstanding and newly originated debt on a grand scale, sending downward the purchasing power of the US dollar — and with it many other fiat currencies around the world.

The “Waiting for Godot” strategy does not rule out that the Fed might, at some stage, nudge upward short-term borrowing costs. However, any rate action should be minor and rather short-lived (like they were in Japan), and it wouldn’t bring interest rates back to “normal.” The underlying logic of the fiat money system simply wouldn’t admit it.

Selected Japanese Interest Rates in Percent
Selected Japanese Interest Rates in Percent

The Fed — and basically all central banks around the world — are unlikely to accept deflation clearing out the debt, which would topple the economic and political structures built upon it. Fending off an approaching recession-depression with more credit-created fiat money and extremely low, perhaps even negative, interest rates is what one can expect them to do.

Murray N. Rothbard put it succinctly: “We can look forward … not precisely to a 1929-type depression, but to an inflationary depression of massive proportions.”

Dr. Thorsten Polleit is the Chief Economist of Degussa (www.degussa-goldhandel.de) and Honorary Professor at the University of Bayreuth. He is the winner of the O.P. Alford III Prize in Political Economy and has been published in the Austrian Journal of Economics. His personal website is www.thorsten-polleit.com.

This article was published on Mises.org and may be freely distributed, subject to a Creative Commons Attribution United States License, which requires that credit be given to the author.

Economic Growth Slashed Global Poverty to Historically Unprecedented Level – Article by Marian L. Tupy

Economic Growth Slashed Global Poverty to Historically Unprecedented Level – Article by Marian L. Tupy

The New Renaissance HatMarian L. Tupy
October 6, 2015
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According to the World Bank, for the first time in human history, “less than 10 percent of the world’s population will be living in extreme poverty by the end of 2015.” The bank has “used a new income figure of $1.90 per day to define extreme poverty, up from $1.25. It forecasts that the proportion of the world’s population in this category will fall from 12.8 percent in 2012 to 9.6 percent.”
Global poverty rate, official and baseline scenario, percent

As scholars have noted, historically speaking, grinding poverty was the norm for most ordinary people. Even in the most economically advanced parts of the world, life used to be miserable. To give one example, at the end of the 18th century, ten million of France’s twenty-three million people relied on some sort of public or private charity to survive and three million were full-time beggars.

Thanks to industrial revolution and trade, economic growth in the West accelerated to historically unprecedented levels. Over the course of the 19th and 20th centuries, real incomes in the West increased fifteen-fold. But the chasm that opened up as a result of the Western take-off is now closing.

Life expectancy at birth, West and the Rest, years

The rise of the non-Western world is, unambiguously, a result of economic growth spurred by the abandonment of central-planning and integration of many non-Western countries into the global economy. After economic liberalization in China in 1978, to give one example, real incomes rose thirteen-fold.

As Princeton University Professor Angus Deaton notes in his book The Great Escape, “[T]he rapid growth of average incomes, particularly in China and India, and particularly after 1975, did much to reduce extreme poverty in the world. In China most of all, but also in India, the escape of hundreds of millions from traditional and long established poverty qualifies as the greatest escape of all.”

Marian L. Tupy is the editor of HumanProgress.org and a senior policy analyst at the Center for Global Liberty and Prosperity. He specializes in globalization and global wellbeing, and the political economy of Europe and sub-Saharan Africa. His articles have been published in the Financial Times, Washington Post, Los Angeles Times, Wall Street Journal, U.S. News and World Report, The Atlantic, Newsweek, The U.K. Spectator, Weekly Standard, Foreign Policy, Reason magazine, and various other outlets both in the United States and overseas. Tupy has appeared on The NewsHour with Jim Lehrer, CNN International, BBC World, CNBC, MSNBC, Al Jazeera, and other channels. He has worked on the Council on Foreign Relations’ Commission on Angola, testified before the U.S. Congress on the economic situation in Zimbabwe, and briefed the Central Intelligence Agency and the State Department on political developments in Central Europe. Tupy received his B.A. in international relations and classics from the University of the Witwatersrand in Johannesburg, South Africa, and his Ph.D. in international relations from the University of St. Andrews in Great Britain.

This work by Cato Institute is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.

Blame the Federal Reserve, Not China, for Stock-Market Crash – Article by Ron Paul

Blame the Federal Reserve, Not China, for Stock-Market Crash – Article by Ron Paul

The New Renaissance HatRon Paul
September 6, 2015
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Following the historic stock-market downturn two weeks ago, many politicians and so-called economic experts rushed to the microphones to explain why the market crashed and to propose “solutions” to our economic woes. Not surprisingly, most of those commenting not only failed to give the right answers, they failed to ask the right questions.

Many blamed the crash on China’s recent currency devaluation. It is true that the crash was caused by a flawed monetary policy. However, the fault lies not with China’s central bank but with the US Federal Reserve. The Federal Reserve’s inflationary policies distort the economy, creating bubbles, which in turn create a booming stock market and the illusion of widespread prosperity. Inevitably, the bubble bursts, the market crashes, and the economy sinks into a recession.

An increasing number of politicians have acknowledged the flaws in our monetary system. Unfortunately, some members of Congress think the solution is to force the Fed to follow a “rules-based” monetary policy. Forcing the Fed to “follow a rule” does not change the fact that giving a secretive central bank the power to set interest rates is a recipe for economic chaos. Interest rates are the price of money, and, like all prices, they should be set by the market, not by a central bank and certainly not by Congress.

Instead of trying to “fix” the Federal Reserve, Congress should start restoring a free-market monetary system. The first step is to pass the Audit the Fed legislation so the people can finally learn the full truth about the Fed. Congress should also pass legislation ensuring individuals can use alternative currencies free of federal-government harassment.

When bubbles burst and recessions hit, Congress and the Federal Reserve should refrain from trying to “stimulate” the economy via increased spending, corporate bailouts, and inflation. The only way the economy will ever fully recover is if Congress and the Fed allow the recession to run its course.

Of course, Congress and the Fed are unlikely to “just stand there” if the economy further deteriorates. There have already been reports that the Fed will use last week’s crash as an excuse to once again delay raising interest rates. Increased spending and money creation may temporally boost the economy, but eventually they will lead to a collapse in the dollar’s value and an economic crisis more severe than the Great Depression.

Ironically, considering how popular China-bashing has become, China’s large purchase of US Treasury notes has helped the US postpone the day of reckoning. The main reason countries like China are eager to help finance our debt is the dollar’s world reserve currency status. However, there are signs that concerns over the US government’s fiscal irresponsibility and resentment of our foreign policy will cause another currency (or currencies) to replace the dollar as the world reserve currency. If this occurs, the US will face a major dollar crisis.

Congress will not adopt sensible economic policies until the people demand it. Unfortunately, while an ever-increasing number of Americans are embracing Austrian economics, too many Americans still believe they must sacrifice their liberties in order to obtain economic and personal security. This is why many are embracing a charismatic crony capitalist who is peddling a snake oil composed of protectionism, nationalism, and authoritarianism.

Eventually the United States will have to abandon the warfare state, the welfare state, and the fiat money system that fuels leviathan’s growth. Hopefully the change will happen because the ideas of liberty have triumphed, not because a major economic crisis leaves the US government with no other choice.

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.