Browsed by
Category: Politics

The Ukrainian Regime’s Censorship Spreads West to Canada, and Political Correctness is to Blame – Article by G. Stolyarov II

The Ukrainian Regime’s Censorship Spreads West to Canada, and Political Correctness is to Blame – Article by G. Stolyarov II

Comments 2 comments
The New Renaissance Hat
G. Stolyarov II
April 14, 2015
******************************

There is nothing friendly to liberty or to Western values about the government of Petro Poroshenko and Arseniy Yatseniuk in Ukraine – a regime completely incapable of understanding the principle of individual rights or the freedoms of speech, property, and conviction that this principle entails. The Ukrainian government has just enacted a law prohibiting the private expression of Communist symbols and ideology, while elevating to “national hero” status the Ukrainian Insurgent Army of Stepan Bandera, who collaborated with the Nazi army during World War II and committed systematic acts of genocide against Russian, Belarusian, Polish, and Jewish civilians. Bandera serves as an explicit inspiration for the neo-Nazi Right Sector paramilitary organization, whose fighters have been documented by Amnesty International to have committed extensive war crimes against civilians in the Donbass region, and whose leader Dmytro Yarosh now holds a prominent position as advisor to the Ukrainian Commander-in-Chief.

Criticism of Bandera and his Ukrainian Insurgent Army is now illegal in Ukraine. According to UaPosition, a Ukrainian website aimed at informing non-Ukrainians about Ukraine, the text of the law legitimizing Bandera’s thugs reads as follows: “Public denial of the legitimacy of the struggle for the independence of Ukraine in the twentieth century [is] recognized [as an] insult to the memory of fighters for independence of Ukraine in the XX century [and as] disparagement of the Ukrainian people and is illegal.”

As David Boaz put it, “One difference between libertarianism and socialism is that a socialist society can’t tolerate groups of people practicing freedom, but a libertarian society can comfortably allow people to choose voluntary socialism.” No libertarian or even remotely quasi-libertarian society would censor the expression of even the most strident socialist or communist viewpoints. On the other hand, legal censorship of opposing viewpoints was indeed a hallmark of the former Soviet Union. A government that attempts to censor the ideas that, at least ostensibly, animated Soviet policies, becomes just a mirror image of the Soviet regime by adopting the very same policies in essence. In addition, the Ukrainian regime has prohibited films alleged to “glorify” the Russian military and has imprisoned journalists and activists who criticized military conscription, such as Ruslan Kotsaba.

The Poroshenko/Yatseniuk government has assumed the worst characteristics of the former USSR regime without any of its few decent attributes. By validating both historical genocidal ethnic nationalism and its neo-Nazi successor movements, the Ukrainian regime has departed from one of the most important admirable aspects of the post-1941 USSR: its adamant opposition to Nazism and to the plethora of ethnically tinged fascist movements that arose in the wake of Hitler’s invasions of Eastern Europe. Indeed, one of the reasons why so many Soviet subjects of diverse ethnicities acquiesced to the tyranny of Stalin and his successors was the fact that the Soviet regime did act to protect them against the worse threat of genocide by Hitler and his petty nationalist allies. The prohibition on criticism of the Banderites is, in the eyes of many Ukrainians, Russians, and Belarusians, a prohibition on criticism of the armed gangs who murdered or tried to murder their grandparents.

Even more troubling, however, is that the zeal of “pro-Ukrainian” activists in the West is creating a chilling effect on speech and criticism of the Ukrainian regime even in Canada. Valentina Lisitsa, a world-renowned pianist born in Ukraine who became a US citizen and is currently residing in Paris, has become the latest victim of the campaign to silence those who disagree with militant Ukrainian nationalism. Lisitsa’s performances of classical compositions (see and hear examples here, here, here, and here) are completely apolitical and have attracted tens of millions of views on her YouTube channel. She was due to play Rachmaninoff’s Concerto #2 (earlier recordings are here, here, and here) at the Toronto Symphony Orchestra, before her appearance was cancelled at the behest of anonymous Ukrainian nationalist activists, who also fueled a social-media outcry against Lisitsa. The reason? Lisitsa posted on her Twitter account satirical, often scathing criticism of the Ukrainian government and its war against separatists in the Donbass – specifically condemning the neo-Nazi and genocidal strains among the Ukrainian government’s paramilitary supporters. She has remained steadfast in defending her posts as free expression – and rightfully so, as her liberty to express her views does not require those views or the manner of their expression to be inoffensive or universally agreeable to all. Furthermore, any manner of words or imagery she used pales in comparison to the real deaths of over 6,000 civilians (and likely many more) in the Donbass, many at the hands of the Ukrainian army and its allied “volunteer” paramilitary battalions. Lisitsa was outraged at the people and policies that brought about the deaths of these innocents, and she was right to proclaim her outrage.

But whether or not one agrees with Lisitsa or with the manner in which she expressed her views, her performance of Rachmaninoff had no relationship to any of her political activities – and none of her other classical performances over the course of many years had even the remotest political aspect. By successfully pressuring the Toronto Symphony Orchestra to cancel Lisitsa’s appearance, the Ukrainian nationalist activists recreated in Canada the same politicization of classical music for which Stalin’s Soviet Union was infamous. Some of the most innovative 20th-century composers – including Sergei Prokofiev, Dmitri Shostakovich, and Aram Khachaturian – were often victims of Stalin’s denunciations and sometimes came perilously close to imprisonment or worse. In a free society, it is generally recognized that a person’s artistic prowess and political positions are separate matters unless the artist wishes to intentionally combine the two – as, for instance, in a work of explicitly politically motivated art. Preventing the performance of art that is inherently apolitical, on the grounds of the artist’s outside political activities, creates a chilling effect on both art and peaceful political activism. Artists, fearing that their livelihoods would be denied to them if they became too vocal about current events and ran afoul of one pressure group or another, would be incentivized to stick only to bland, uncontroversial statements or avoid discussing any subjects where significant disagreements might arise. Art would suffer, as works of technical and esthetic merit would become more difficult for audiences to access, given that anybody with controversial political views would be shut out of the talent pool.

The cultural reign of political correctness in the West further exacerbates the threat of the chilling effect on art and speech. The political repression of art in the contemporary West would come not from a top-down decree by a government, but rather due to any sufficiently vocal special interest claiming to be “offended” – not just by an idea contrary to its own agenda, but by the whole person expressing that idea. It then becomes the case that no Stalin is necessary – but the effect is the same: ideologically motivated threats cowing artists into acquiescence to the popular political agenda of the day. A person can become widely denounced, blacklisted, and shut out from opportunities that should be determined by artistic merit alone – not due to any conspiracy, but rather because the typical, middle-of-the-road decision makers in private as well as public institutions become fearful of the special interests’ ire. Political correctness is not primarily a problem of governments, but rather a problem of a deeply broken societal and intellectual culture, where not giving offense is prioritized over the pursuit of truth and justice. In the case of Lisitsa, as usual, the politically correct prohibition on offense results in the most offensive possible ideologies having a free hand to shut down dissenting views. What “offended” fundamentalist Islam has been able to perpetrate in shutting down debate in Europe for over a decade, “offended” Ukrainian nationalism is beginning to inflict in Canada now, often with the vociferous support of media commentators crusading against “hate speech” – a phrase which can mean anything they want it to mean.

The Ukrainian nationalists are able to export their agenda of censorship and intimidation to the West as parasites taking advantage of a weakened host. Political correctness is the disease that renders Western public discourse vulnerable to their arguments, while endangering the vital critical voices who need to be heard in order to prevent a tragic Western-led escalation of the Ukrainian civil war. It seems that the only way the Ukrainian regime and its nationalist allies will be able to render Ukraine more Western is to render the West more like Ukraine. We in the West need to strengthen our defenses and develop an immunity against this incursion of illiberalism by reaffirming the values of individual rights, open discourse and debate on controversial ideas, free expression of dissenting views, and resistance to the dependence of art on political orthodoxy.

The New Militarism – Who Profits? – Article by Ron Paul

The New Militarism – Who Profits? – Article by Ron Paul

Comments 0 Comment
The New Renaissance Hat
Ron Paul
April 14, 2015
******************************
Militarism and military spending are everywhere on the rise, as the new Cold War propaganda seems to be paying off. The new “threats” that are being hyped bring big profits to military contractors and the network of think tanks they pay to produce pro-war propaganda. Here are just a few examples:
***

The German government announced last week that it would purchase 100 more “Leopard” tanks – a 45 percent increase in the country’s inventory. Germany had greatly reduced its inventory of tanks as the end of the Cold War meant the end of any threat of a Soviet ground invasion of Europe. The German government now claims these 100 new tanks, which may cost nearly half a billion dollars, are necessary to respond to the new Russian assertiveness in the region. Never mind that Russia has neither invaded nor threatened any country in the region, much less a NATO member country.

The US Cold War-era nuclear bunker under Cheyenne Mountain, Colorado, which was all but shut down in the 25 years since the fall of the Berlin Wall, is being brought back to life. The Pentagon has committed nearly a billion dollars to upgrading the facility to its previous Cold War-level of operations. US defense contractor Raytheon will be the prime beneficiary of this contract. Raytheon is a major financial sponsor of think tanks like the Institute for the Study of War, which continuously churn out pro-war propaganda. I am sure these big contracts are a good return on that investment.

NATO, which I believe should have been shut down after the Cold War ended, is also getting its own massively expensive upgrade. The Alliance commissioned a new headquarters building in Brussels, Belgium, in 2010, which is supposed to be completed in 2016. The building looks like a hideous claw, and the final cost – if it is ever finished – will be well over one billion dollars. That is more than twice what was originally budgeted. What a boondoggle! Is it any surprise that NATO bureaucrats and generals continuously try to terrify us with tales of the new Russian threat? They need to justify their expansion plans!

So who is the real enemy? The Russians?

No, the real enemy is the taxpayer. The real enemy is the middle class and the productive sectors of the economy. We are the victims of this new runaway military spending. Every dollar or euro spent on a contrived threat is a dollar or euro taken out of the real economy and wasted on military Keynesianism. It is a dollar stolen from a small business owner that will not be invested in innovation, spent on research to combat disease, or even donated to charities that help the needy.

One of the most pervasive and dangerous myths of our time is that military spending benefits an economy. This could not be further from the truth. Such spending benefits a thin layer of well-connected and well-paid elites. It diverts scarce resources from meeting the needs and desires of a population and channels them into manufacturing tools of destruction. The costs may be hidden by the money-printing of the central banks, but they are eventually realized in the steady destruction of a currency.

The elites are terrified that peace may finally break out, which will be bad for their profits. That is why they are trying to scuttle the Iran deal, nix the Cuba thaw, and drum up a new “Red Scare” coming from Moscow. We must not be fooled into believing their lies.

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.

Why We Need Deflation and Higher Interest Rates – Article by John P. Cochran

Why We Need Deflation and Higher Interest Rates – Article by John P. Cochran

Comments 0 Comment
The New Renaissance Hat
John P. Cochran
April 5, 2015
******************************

The Fed is seemingly slightly out of step with other central bankers as it recently hinted at possible future rate hikes in the official announcement following its March 20, 2015 meeting. But as many commentators have recognized, Janet Yellen, a strong proponent of Keynesian more-inflation-as-cure-for-unemployment policy, later downplayed the significance of the announcement. She was careful to indicate that rates would stay low for the near future and when (and if) rate increases begin, they will be measured. The Fed, like central bankers elsewhere, stays committed to a 2 percent inflation target as it continues a policy driven by a fear of deflation, a fear that is not supported by either good economic theory or economic history properly interpreted.

The errors of deflation-phobia can be drawn from Philipp Bagus’s excellent and recently released In Defense of Deflation. Bagus points out

In the economic mainstream, there are basically two main strands in contemporary deflation theories. The first strand can be represented by economists who in some way are inspired by Keynesian theories like Ben Bernanke, Lars E.O. Svensson, Marvin Goodfriend, or Paul Krugman. The first group fears that price deflation might put the economy in a liquidity trap and opposes all price deflation categorically. It represents the deflation phobia in its clearest form.

It is these theorists and their colleagues who currently dominate central bank thinking and make the case (weak and often only asserted as an imperative) for a positive inflation buffer.

Bagus does recognize a second group of mainstream economists with a more balanced view of deflation:

The second strand has representatives like Claudio Borio, Andrew Filardo, Michael Bordo, John L. Lane, and Angela Redish. Inspired by the Chicago School, the second group is more free market oriented. Bordo, for instance, received his doctoral degree from the University of Chicago. This group distinguishes between two types of deflation: good deflation and bad deflation.

Deflation Leads to Increases in Real Interest Rates, Which Brings Recovery

However, the main water carriers against this erroneous overemphasis by economists and the mainstream press on the alleged evils of deflation have been the Austrians. In his essays “A Reformulation of the Austrian Business Cycle Theory” and “An Austrian Taxonomy of Deflation” Joseph Salerno dismantles deflation-phobia and illustrates the benefits of higher interest rates. Moreover, “A Reformulation” is also a strong argument on why current policy retards recovery and why a policy which would allow financial markets to adjust to a new higher natural rate of interest is essential for restoring normalcy and prosperity. Salerno begins with examining why it is so unpleasant when an economy must adjust to fix the malinvestments and overconsumption that appeared in the boom phase:

The ABCT, when correctly formulated, does indeed explain the asymmetry between the boom and bust phases of the business cycle. The malinvestment and overconsumption that occur during the inflationary boom cause a shattering of the production structure that accounts for the pervasive unemployment and impoverishment that is observed during the recession. Before recovery can begin, the production structure must be painstakingly pieced back together again in a new pattern, because the intertemporal preferences of consumers have changed dramatically due to the redistribution and losses of income and wealth incurred during the inflation. This of course takes time.

At the heart of the problem is the fact that central bank-induced inflation has “wreaked havoc” on prices and consequently on economic calculation:

In addition, the recession-adjustment process is further prolonged by the fact that the boom has wreaked havoc with monetary calculation, the very moorings of the market economy. Entrepreneurs have discovered that their spectacular successes during the boom were merely a prelude to a sudden and profound failure of their forecasts and calculations to be realized. Until they have regained confidence in their forecasting abilities and in the reliability of economic calculation they will be understandably averse to initiating risky ventures even if they appear profitable. But if the market is permitted to work, this entrepreneurial malaise cures itself as the restriction of demand for factors of production drives down wages and other costs of production relative to anticipated product prices. The “natural interest rate,” i.e., the rate of return on investment in the structure of production, thus increases to the point where entrepreneurs are enticed to renew their investment activities and initiate the adjustment process. Success feeds on itself, entrepreneurs’ spirits rise, and the recovery gains momentum.

The market can only cure itself, Salerno explains, if prices are allowed to adjust, including decreases in “wages and other costs of production relative to anticipated product prices.” At the same time, it’s the resulting “steep rise” in real interest rates that draws capitalists and entrepreneurs back into the marketplace:

The rise in the natural interest rate that overcomes the pandemic demoralization among capitalists and entrepreneurs and sparks the recovery is reflected in the credit markets. For recovery to begin again, there needs to be a steep rise in the “real,” or inflation-adjusted, interest rate observed in financial markets. High interest rates do not stifle the recovery but are the sure sign that the readjustment of relative prices required to realign the production structure with economic reality is proceeding apace. The mislabeled “secondary deflation,” whether or not it is accompanied by an incidental monetary contraction, is thus an integral part of the adjustment process. It is the prerequisite for the renewal of entrepreneurial boldness and the restoration of confidence in monetary calculation. Decisions by banks and capitalist-entrepreneurs to temporarily hold rather than lend or invest a portion of accumulated savings in employing the factors of production and the corresponding rise of the loan and natural rates above some estimated “true” time preference rate does not impede but speeds up the recovery. This implies, of course, that any political attempt to arrest or reverse the decline in factor and asset prices through monetary manipulations or fiscal stimulus programs will retard or derail the recession-adjustment process.

New Defenders of Deflation

Citing work by Claudio Borio, head of the Monetary and Economic department at the BIS, listed above by Bagus, The Telegraph, ran a recent story by Szu Ping Chan, “Low Rates Will Trigger Civil Unrest as Central Banks Lose Control,” also highly critical of fear-of-deflation policy committed to 2 percent (or higher) inflation targets. Ms. Chan highlights work by Borio:

A separate paper co-authored by Mr Borio argued that periods of deflation has less economic costs than sustained falls in property prices. Its analysis of 38 economies over a period of more than 100 years showed economies grew by an average of 3.2pc during deflationary periods, compared with 2.7pc when prices were rising.

It said drawing blind comparisons with the 1930s were misguided. “The historical evidence suggests that the Great Depression was the exception rather than the rule,” said Hyun Shin, head of research at the BIS.

Mr. Bagus, Ms. Chan, and Mr. Borio have highlighted for us yet again why it is essential that institutional changes be made that lead to withering away of fiat money and create the possibility for sound money.

John P. Cochran is emeritus dean of the Business School and emeritus professor of economics at Metropolitan State University of Denver and coauthor with Fred R. Glahe of The Hayek-Keynes Debate: Lessons for Current Business Cycle Research. He is also a senior scholar for the Mises Institute and serves on the editorial board of the Quarterly Journal of Austrian Economics. Send him mail. See John P. Cochran’s article archives.

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.

Repeal, Don’t Reform the IMF! – Article by Ron Paul

Repeal, Don’t Reform the IMF! – Article by Ron Paul

Comments 0 Comment
The New Renaissance Hat
Ron Paul
April 5, 2015
******************************
A responsible financial institution would not extend a new loan of between 17 and 40 billion dollars to a borrower already struggling to pay back an existing multi-billion dollar loan. Yet that is just what the International Monetary Fund (IMF) did last month when it extended a new loan to the government of Ukraine. This new loan may not make much economic sense, but propping up the existing Ukrainian government serves the foreign policy agenda of the US government.

Since the IMF receives most of its funding from the United States, it is hardly surprising that it would tailor its actions to advance the US government’s foreign-policy goals. The IMF also has a history of using the funds provided to it by the American taxpayer to prop up dictatorial regimes and support unsound economic policies.

Some may claim the IMF does promote free markets by requiring that countries receiving IMF loans implement some positive economic reforms, such as reducing government spending. However, other conditions imposed by the IMF, such as that the country receiving the loan deflate its currency and implement an industrial policy promoting exports, do not seem designed to promote a true free market, much less improve the people’s living standards by giving them greater economic opportunities.

The problem with the IMF cannot be fixed by changing the conditions attached to IMF loans. The fundamental problem with the IMF is that it is funded by resources taken forcibly from the private sector. By taking resources out of private hands and giving them to IMF bureaucrats, the US federal government distorts the marketplace, harming both American taxpayers and the citizens of the countries receiving the IMF loans. The idea that the IMF is somehow better able to allocate capital than are private investors is just as flawed as every other form of central planning. The IMF must be repealed, not reformed.

The IMF is not the only US institution that manipulates the global economy. Over the past several years, a mysterious buyer, identified only as “Belgium,” so named because the buyer acts through a Belgian-domiciled account, has become the third-largest holder of Treasury securities. Belgium’s large purchases always occur at opportune times for the US government, such as when a foreign country sells a large amount of Treasuries. “Belgium” also made large purchases in the months just after the Fed launched the quantitative easing program. While there is no evidence this buyer is working directly with the US government, the timing of these purchases does raise suspicions.

It is not out of the realm of possibility that the Federal Reserve is involved in these purchases. The limited audit of the Federal Reserve’s actions during the financial crisis that was authorized by the Dodd-Frank Act revealed that the Fed actively intervenes in global markets.

What other deals with foreign governments is the Fed making? Is the Fed, like the IMF, working to bail out Greece and other EU countries? Is the Fed working secretly to aid US foreign policy as it did in the early 1980s, when it financed loans to then-US ally Saddam Hussein? The lack of transparency about the Fed’s dealings with overseas central banks and foreign governments is one more reason why Congress needs to pass the audit the fed bill.

By taking money from American taxpayers to support economically weak and oftentimes corrupt governments, the IMF distorts the market, enriches corrupt governments, and harms both the American taxpayer and the residents of the counties receiving IMF “aid.” It is past time to end the IMF along with all instruments of American interventionist foreign policy.

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.

Why Is the Fed Punishing My Parents? – Article by Shawn Ritenour

Why Is the Fed Punishing My Parents? – Article by Shawn Ritenour

Comments 0 Comment
The New Renaissance Hat
Shawn Ritenour
March 29, 2015
******************************

In September 1993, President Bill Clinton reassured his radio audience that “if you work hard and play by the rules, you’ll be rewarded with a good life for yourself and a better chance for your children.” Picking up that theme over eighteen years later, President Barack Obama affirmed that “Americans who work hard and play by the rules every day deserve a government and a financial system that does the same.” The trouble is neither the government nor the financial system backed by the Federal Reserve rewards people like my parents, who have worked hard and played by the rules their entire lives, only to have their savings wither away.

Instead, Federal Reserve officials and the intelligentsia who support them are continuously working to make their lives more difficult, frightening the masses of what shoppers look for every day — lower prices. Price deflation, the cry, is disastrous for the economy. They worry that lower prices will reduce profits, leading to shutdowns and lay-offs and that lower prices make it harder for people to pay their debts. Sound economic theory and history, however, both indicate that price deflation is nothing the social economy needs to fear. If prices fall because the economy is more productive, this is unambiguously positive. However, if prices fall because people spend less, their desire is for larger real cash balances. Falling prices help them achieve their goal, which precisely is the purpose of economic activity.

Lower prices and wages can make it harder to pay fixed debt. This, however, serves as an excellent incentive to stay out of debt in the first place, as my parents have done as a result of significant sacrifice. Before creating even more money out of thin are to ward off lower overall prices, we should at least consider some of the ethical issues involved.

Many men from my father’s generation are not unlike John Adams who wrote to his wife that he “must study politics and war, that our sons may have liberty to study mathematics and philosophy.” My father embarked for twenty years of hard labor in a meat packing plant providing for his family until he lost his job due to his union pricing him and his fellow workers out of a job. When his plant closed in the mid-1980s, he embarked on a second successful career with my mother operating their own barbecue business for another twenty-plus years. I saw firsthand the challenges they faced trying to keep quality up and costs down, while producing top-drawer barbecue meat and sandwiches for a demand that was always uncertain. I saw the stress on my mother’s face one week in the early days when they netted a mere $15 before taxes. My father indeed “studied” meat packing and barbecue, in part, so I could go to college and become an economist and college professor.

Additionally, Mom and Dad had the foresight and character to make the sacrifices necessary to stay out of debt. Indeed, they are Paul Krugman’s worst nightmare — a family determined not to live beyond their means. Now retired, like many in their generation they are enjoying life the best they can on an almost fixed income. Because they have no debt, they have been able to live without tremendous economic hardship thus far. The Federal Reserve’s inflationism, however, increasingly makes life for them more difficult as steady price inflation daily chips away at their livelihood. Since 2009, for example, the Consumer Price Index has increased over 9 percent. This masks, however, significantly larger price increases for important necessities. Prices of dairy products are up almost 17 percent since 2009. Gasoline prices are up almost 11 percent despite the recent decline. Prices for meat, poultry, fish, and eggs have increased a whopping 26 percent since 2009. Higher overall prices do not help people like my parents at all. They instead act as a thief, snatching wealth away from them in the form of diminished purchasing power. What they long for is to see the value of their savings increase. Far from creating economic hardship for them, lower overall prices would be a boon.

Both sound economics and ethics, therefore, demand that we give up the anti-deflation rhetoric and the inflation it fuels. Charity demands that we cease striking fear into the hearts of the masses, softening them up for ever higher prices. The Federal Reserve should stop punishing people like my parents who have worked hard and played by the rules their whole lives. After all, what did they ever do to Greenspan, Bernanke, and Yellen?

Shawn Ritenour teaches economics at Grove City College and is the author of Foundations of Economics: A Christian View.

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.

Interventionism Kills: Post-Coup Ukraine One Year Later – Article by Ron Paul

Interventionism Kills: Post-Coup Ukraine One Year Later – Article by Ron Paul

Comments 2 comments
The New Renaissance Hat
Ron Paul
March 29, 2015
******************************
It was one year ago in February that a violent coup overthrew the legally elected government of Ukraine. That coup was not only supported by US and EU governments — much of it was actually planned by them. Looking back at the events that led to the overthrow it is clear that without foreign intervention Ukraine would not be in its current, seemingly hopeless situation.

By the end of 2013, Ukraine’s economy was in ruins. The government was desperate for an economic bailout and then-president Yanukovych first looked west to the US and EU before deciding to accept an offer of help from Russia. Residents of south and east Ukraine, who largely speak Russian and trade extensively with Russia were pleased with the decision. West Ukrainians who identify with Poland and Europe began to protest. Ukraine is a deeply divided country and the president came from the eastern region.

At this point the conflict was just another chapter in Ukraine’s difficult post-Soviet history. There was bound to be some discontent over the decision, but if there had been no foreign intervention in support of the protests you would likely not be reading this column today. The problem may well have solved itself in due time rather than escalated into a full-out civil war. But the interventionists in the US and EU won out again, and their interventionist project has been a disaster.

The protests at the end of 2013 grew more dramatic and violent and soon a steady stream of US and EU politicians were openly participating, as protesters called for the overthrow of the Ukrainian government. Senator John McCain made several visits to Kiev and even addressed the crowd to encourage them.

Imagine if a foreign leader like Putin or Assad came to Washington to encourage protesters to overthrow the Obama Administration!

As we soon found out from a leaked telephone call, the US ambassador in Kiev and Assistant Secretary of State, Victoria Nuland, were making detailed plans for a new government in Kiev after the legal government was overthrown with their assistance.

The protests continued to grow but finally on February 20th of last year a European delegation brokered a compromise that included early elections and several other concessions from Yanukovych. It appeared disaster had been averted, but suddenly that night some of the most violent groups, which had been close to the US, carried out the coup and Yanukovych fled the country.

When the east refused to recognize the new government as legitimate and held a referendum to secede from the west, Kiev sent in tanks to force them to submit. Rather than accept the will of those seeking independence from what they viewed as an illegitimate government put in place by foreigners, the Obama administration decided to blame it all on the Russians and began imposing sanctions!

That war launched by Kiev has lasted until the present, with a ceasefire this month brokered by the Germans and French finally offering some hope for an end to the killing. More than 5,000 have been killed and many of those were civilians bombed in their cities by Kiev.

What if John McCain had stayed home and worried about his constituents in Arizona instead of non-constituents 6,000 miles away? What if the other US and EU politicians had done the same? What if Victoria Nuland and US Ambassador Geoffrey Pyatt had focused on actual diplomacy instead of regime change?

If they had done so, there is a good chance many if not all of those who have been killed in the violence would still be alive today. Interventionism kills.

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.

America’s Aristocracy of Privilege and Power – Article by Daniel J. Bier

America’s Aristocracy of Privilege and Power – Article by Daniel J. Bier

Comments 1 comment
The New Renaissance Hat
Daniel J. Bier
March 26, 2015
******************************

Bush, Kennedy, Romney, Clinton, and, yes, even Paul — is it just a coincidence that the same names keep appearing on the ballots each election cycle? Are these families just innately talented legislators, naturally “born to rule”?

No, says economist Seth Stephens-Davidowitz. America’s lame political dynasties are the result of a political system rife with nepotism.

There is a very real chance that the presidential election in 2016 will pit Jeb Bush against Hillary Clinton.… Whether or not you like one of the candidates, it just doesn’t feel right, in part because a second Bush-Clinton election makes a mockery of our self-identification as a democratic meritocracy.…

In our era a son of a president was roughly 1.4 million times more likely to become president than his supposed peers.… The presidency is obviously a small sample. But the same calculations can be done for other political positions. Take governors.

Because it is difficult to be sure that you have counted all the sons of governors, let’s assume that governors reproduce at average rates. This would mean there were about 250 baby boomer males born to governors. Five of them became governors themselves, about one in 50. This is 6,000 times the rate of the average American. The same methodology suggests that sons of senators had an 8,500 times higher chance of becoming a senator than an average American male boomer.

But there’s nepotism everywhere, and most parents want their children to follow in their footsteps. Is politics remarkable?

Is this electoral edge unusual? Successful parents, whatever their occupation, pass on their genes and plenty of other stuff to their kids. Do different fields have similar familial patterns?

In just about every field I looked at, having a successful parent makes you way more likely to be a big success, but the advantage is much smaller than it is at the top of politics….

Think about the N.B.A. further. The skills necessary to be a basketball player, especially height, are highly hereditary. But the N.B.A. is a meritocracy, with your performance easy to evaluate. If you do not play well, you will be cut, even if the team is the New York Knicks and your name is Patrick Ewing Jr. Father-son correlation in the N.B.A. is only one-eleventh as high as it is in the Senate.

Presidents, superstar athletes, Nobel Prize-winning scientists, and other leaders in their field are outliers in the distribution. “Regression to the mean” is a statistical principle that describes the tendency of variables to return to the average over time. In the case of hereditary athletic talents, we should expect that Michael Jordan’s sons will be pretty average basketball players and will probably not end up dominating the NBA.

But in politics, we don’t see this: “The Bush family’s dominance would be the basketball equivalent of Michael Jordan being the father of LeBron James and Kevin Durant — and of Michael Jordan’s father being Walt Frazier.”

In other words, the odds that the best person to run your government (assuming such a thing exists) just so happened to live in the same house as the previous senator, governor, or president are stupendously bad.

He notes that politics isn’t the only sphere where irrational favoritism for close relations shows up in the data: CEOs tend to give birth to CEOs at an improbable rate, too, and we know that heredity isn’t a foolproof guide to succession in business, either. Economists have shown that family businesses that favor succession to blood relatives tend to perform worse after the transition.

The difference is that in business, the cost of the decision falls on those who make it. In politics, we all pay.

Stephens-Davidowitz concludes, “The data shows conclusively that we have a nepotism problem. So now the question is: Why does the modern United States tolerate this level of privilege for political name brands?”

Indeed. How could this be? It can’t be nepotism in the same way that family businesses tap relations to run the company — it’s the voters who decide who wins the next election. So how could equalitarian democracy, the great leveller, the system that tells elementary students “you too could grow up to be senator or president,” recreate dynastic political succession?

Well, the answer is that the promise is partially true: technically, any citizen can become a senator — Sen. Elizabeth Warren, he points out, is the daughter of a janitor — but you’re just 8,500 times more likely to get there if your mom or dad was too. And, in part, it could be that intelligence (or low cunning) is heritable and makes politicians’ kids better at the game. But that doesn’t explain the continued popularity of a figure like Robert F. Kennedy Jr., the dull luminary of the anti-vaccine and “jail climate deniers” movements, who has clearly regressed to mean with a vengeance.

A better answer is that America’s dynasties reveal something fundamental about politics: we do not have a meritocracy because democracy is not a good way to select rulers (even if it is, as is so often said, the least worst way). Surveys show conclusively that the electorate is wildly ill-informed about both the candidates and the issues, as well as aggressively irrational about a host of important economic, political, scientific, legal, and simply factual issues. Controlled studies show that voters select candidates for patently absurd reasons, like their height, weight, attractiveness, and timbre of voice. And, in answer to Stephens-Davidowitz’ last question, more than anything else, name recognition matters.

What makes politics so futile is not that the national electorate improbably keeps landing on the same few families, decade after decade. Rather, it’s that the voters keep supporting the same dumb policies.

We don’t need a rule to prevent political power from passed down through families. The rules that govern what people can do with elected office matter far more than who sits there. We need, as comedian Penn Jillette once said, to give politicians so little power that it doesn’t matter who they are — rather than so much power that it doesn’t matter who they are.

Daniel Bier is the executive editor of The Skeptical Libertarian. He writes on issues relating to science, skepticism, and economic freedom, focusing on the role of evolution in social and economic development.

This article was originally published by The Foundation for Economic Education.

After a Twelve-Year Mistake in Iraq, We Must Just March Home – Article by Ron Paul

After a Twelve-Year Mistake in Iraq, We Must Just March Home – Article by Ron Paul

Comments 0 Comment
The New Renaissance Hat
Ron Paul
March 23, 2015
******************************
Twelve years ago last week, the US launched its invasion of Iraq, an act the late General William Odom predicted would turn out to be “the greatest strategic disaster in US history.”

Before the attack I was accused of exaggerating the potential costs of the war when I warned that it could end up costing as much as $100 billion. One trillion dollars later, with not one but two “mission accomplished” moments, we are still not done intervening in Iraq.

President Obama last year ordered the US military back into Iraq for the third time. It seems the Iraq “surge” and the Sunni “Awakening,” for which General David Petraeus had been given much credit, were not as successful as was claimed at the time. From the sectarian violence unleashed by the US invasion of Iraq emerged al-Qaeda and then its more radical spin-off, ISIS. So Obama sent the US military back.

We recently gained even more evidence that the initial war was sold on lies and fabrications. The CIA finally declassified much of its 2002 National Intelligence Estimate on Iraq, which was the chief document used by the Bush Administration to justify the US attack. According to the Estimate, the US Intelligence Community concluded that:

‘[W]e are unable to determine whether [biological weapons] agent research has resumed…’ And: ‘the information we have on Iraqi nuclear personnel does not appear consistent with a coherent effort to reconstitute a nuclear weapons program.’

But even as the US Intelligence Community had reached this conclusion, President Bush told the American people that Iraq, “possesses and produces chemical and biological weapons” and “the evidence indicates that Iraq is reconstituting its nuclear weapons program.”

Likewise, Defense Secretary Donald Rumsfeld’s “bulletproof” evidence that Saddam Hussein had ties with al-Qaeda was contradicted by the National Intelligence Estimate, which concluded that there was no operational tie between Hussein’s government and al-Qaeda.

Even National Security Advisor Condoleezza Rice’s famous statement that the aluminum tubes that Iraq was purchasing “are only really suited for nuclear weapons programs, centrifuge programs,” and “we don’t want the smoking gun to be a mushroom cloud,” was based on evidence she must have known at the time was false. According to the NIE, the Energy Department had already concluded that the tubes were “consistent with applications to rocket motors” and “this is the more likely end use.”

It is hard to believe that in a society supposedly governed by the rule of law, US leaders can escape any penalty for using blatantly false information – that they had to know at the time was false – to launch a pre-emptive attack on a country that posed no threat to the United States. The fact that they got away with it simply makes it all the easier for Washington’s interventionists to try the same tricks again. They already did with Libya and Syria. It is likely they are also doing the same with claims of a Russian “invasion” of Ukraine.

Last week President Obama correctly blamed the current chaos in Iraq on the Bush Administration’s decision to invade. He said, “… ISIL is a direct outgrowth of al Qaeda in Iraq that grew out of our invasion. Which is an example of unintended consequences. Which is why we should generally aim before we shoot.”

However, if the US intervention in Iraq created the “unintended consequences” of ISIS and al-Qaeda, how is it that more US intervention can solve the problem?

A war based on lies cannot be fixed by launching another war. We must just march home. And stay home.

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.

Iran Fighting ISIS – Is it Really a Problem? – Article by Ron Paul

Iran Fighting ISIS – Is it Really a Problem? – Article by Ron Paul

Comments 0 Comment
The New Renaissance Hat
Ron Paul
March 16, 2015
******************************
As Iran continues to take an active role in helping Iraq fight ISIS, many US neocons are upset that the US military is not over there on the ground doing the fighting. They want Americans believe that only another US invasion of Iraq – and of Syria as well – can defeat ISIS. But what is wrong with the countries of the region getting together and deciding to cooperate on a common problem?

While the entry of Iranian-backed Shi’ite militias into ISIS-occupied areas may not be ideal – there are bound to be revenge killings and sectarian fighting – it is far more likely that the ISIS problem will be solved by the countries in the region than by US bombs and ground troops. Our bombs will continue to make the problem worse because it was our bombs that helped create the problem in the first place. What the neocons who lied us into the Iraq war don’t like to admit is that there was no ISIS problem and no al-Qaeda problem in Iraq and Syria before we invaded Iraq.

ISIS is an idea, not a country or an army, which is why the US declaring war on ISIS makes no sense. It is clear that if we really want to defeat ISIS, the last thing we should be doing is bombing and sending troops back to Iraq and into Syria. Our bombs and involvement in the region only serve to recruit more fighters into ISIS. To make matters worse, many of these radicalized fighters come from Europe and even the US. What happens when they go home?

What if the US had not gotten involved with Iraq in 1990 when Saddam Hussein went into Kuwait after getting what he thought was a green light from the first Bush Administration? The interventionists were saying that if we did not act, Saddam Hussein was going to take over the region and perhaps more! But what about the other countries in the region that may have felt threatened? Maybe Saudi Arabia would have made a move; maybe Israel would have taken care of the problem. Why does it always have to be the US?

The dedicated neocons and other interventionists will not cheer Iran currently taking steps to defeat ISIS even though they claim that ISIS is at this time the number one threat to the US. Why don’t they like this good news? Because they desire the rest of the world to believe that the US is the only indispensable nation. They want the rest of the world – and especially the American taxpayer – to believe that no problem anywhere can be solved without US involvement.

It diminishes our prestige, they argue, for us not to take the lead in every conflict everywhere on the globe. Perhaps if people overseas begin to see that they can solve their own local and regional problems without the US military involved, more Americans would come to see the neocons as the real threat to our national – and financial – security.

Instead of being angered at Iranian help to address the problem of ISIS, perhaps we should send them a “thank you” note.

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.

War as a Crime Against Civilization – Article by Butler Shaffer

War as a Crime Against Civilization – Article by Butler Shaffer

Comments 0 Comment
The New Renaissance Hat
Butler Shaffer
March 12, 2015
******************************

“The real complaining party at the bar in this courtroom is civilization.”
– Judge Dan Haywood, Judgment at Nuremberg

In her current article at Antiwar.com, Lucy Steigerwald reminds us that, while the deaths of tens of millions of innocent men, women, and children provide the strongest indictment of war, there are other costs that need to be accounted for; costs that can only be calculated in terms of the adverse consequences to peaceful, productive, and decent society — i.e., to civilization itself. Among the earliest casualties of the American attack on Iraq were the destruction and looting of archeological sites, museums, libraries, and other cultural locations that help a nation to define itself. The United States did not invent such ruinous forms of barbarism, nor has the practice abated in such cities as Mosul, where ISIS forces have eagerly and intentionally looted the local museum of its important collections. The fourth-century burning of the library at Alexandria — then considered to be the greatest collection of the world’s literature – reveals the depths of insanity that inhere in the war system.

Historical records and artifacts, art, literature, music, architecture, and belief systems, help to provide people with a sense of what their culture has been about, what it has produced, and what its people envision as the worthwhile foundations of their society. As modern psychopaths look for any pretext to paint a desired enemy in the colors of savage vulgarity, evidence — and, thus, understanding — of its more cultivated and productive character must be destroyed. Those who insist on other people’s children being sacrificed to a new crusade against Arab nations, for instance, would do well to discover just how much of the substance of Western Civilization — in the sciences, mathematics, medicine, art, and other expressions of the best of what it means to be civilized — is directly traceable to Arab culture.

In a world dominated by the pursuit of material values, we tend to overlook the importance of what is unseen or only glimpsed through hazy lenses that can be found in libraries, museums, art, and other attributes of what it means to be civilized. The poet, William Carlos Williams, reminds us of the costs associated with ignoring the unseen values: “It is difficult to get the news from poems, yet men die miserably every day for lack of what is found there.”

Butler Shaffer is Professor of Law at the Southwestern Law School. Read his biography here.

Reprinted with permission from LewRockwell.com. Published under a Creative Commons Attribution License.