Hysteria in the LA Times

A letter to the editor at the LA Times:

JAN. 4, 2020 3 AM

To the editor: I live in Australia, the country that is now being ravaged by wildfires. As a father and grandfather, I am reaching out in the hope that the lessons of our disaster are not lost on the world.

Our horrific firestorms are the consequence of a long-running drought and the elongation of the fire season, both directly attributable to human-caused climate change. The worst is yet to come, as the costs both economically and environmentally are yet to be accounted, let alone paid.

We have towns that have run out of water and need to bring in drinking water by transport. Major cities have imposed water restrictions. Farmers have no water for crops and livestock.

Currently many of us are suffering under a haze that makes it feel as if we are smoking 80 cigarettes a day. Major sporting events have been canceled. Tourism is suffering as bookings are canceled. Mass evacuations are underway.

We are a nation in great peril and one further imperiled by a leadership enthralled by the lobbying and revenues of mining corporations. We may well become a failed state in time, a once proudly developed nation, the first nation to fall victim to climate change.

Heed our warning. The time to act on climate change is here and it is now. The call is for immediate and urgent action. Please, contact your elected officials and demand action. Make the personal adjustments and sacrifices that climate change demands. Our world is on fire. It is time to act.

Perspectives on the US v Iran

And here’s another perspective!

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Politics may be the art of the possible, but knowing what’s possible requires calculation and judgement. A bit of the analytics going on in public. The divide over whether the killing of Suleimani should or should not have been done is for the Monday-morning quarterbacks. What is the strategy going forward, and on both sides. Here are some thoughts from others.

From War With Iran?:

Were the United States to place secondary sanctions on all manner of goods, especially food, the effect would be far greater than an invasion by the entire U.S. army. How the Iranian people would deal with the choice between starving and ending their government’s war on America would be their business.

From Iranian Analytics:

Trump’s base accepts that he is backing out of the Middle East firing, not firing to get in…. The current Iranian crisis is complex and dangerous. And by all means retaliation must be designed to prevent more Iranian violence and aggression rather than aimed at a grandiose agenda of regime change or national liberation. But so far the Iranians, not the U.S., are making all the blunders.

From Attack on Qassem Soleimani was deterrence, not escalation:

Iran knows it faces a choice it didn’t think it faced before. It can vow hellish revenge, but now it has had a taste of the hell the United States can rain down in response. And while the mullahs are extreme, they do not appear to be imprudent. Ruthless self-interest might have gotten them going in the first place, and it is what might restrain them in the end. That is how deterrence works. And that is the bet Trump and the United States made by letting the Iranians know we were not going to take their aggression lying down.

From Targeting Soleimani: Trump was justified, legally and strategically:

A congressional authorization of military force would strengthen the president’s hand. It would not require that force be used (or at least used to the full extent of the authorization), but it would show our enemies that our nation is ready to act in our defense. The strategies of Trump’s predecessors were to hope that a committed jihadist enemy would come to its senses; hope that it would realize its purported interest in regional stability; and hope that by bribing it with billions of dollars in sanctions relief, ransom, and an industrial-strength nuclear program, we could de-escalate the conflict. President Trump’s strategy is to remove the enemy’s most effective military asset (who will not be easily replaceable), to demonstrate to the mullahs what can happen when resolve backs our exponentially superior capabilities, and to continue squeezing the regime with punishing economic sanctions — as it is pressured by the increasingly restive Iranian people. Peace through strength is the better plan.

From Trump Calls the Ayatollah’s Bluff:

Deterrence, says Fred Kagan of the American Enterprise Institute, is credibly holding at risk something your adversary holds dear. If the reports out of Iraq are true, President Trump has put at risk the entirety of the Iranian imperial enterprise even as his maximum-pressure campaign strangles the Iranian economy and fosters domestic unrest. That will get the ayatollah’s attention. And now the United States must prepare for his answer. The bombs over Baghdad? That was Trump calling Khamenei’s bluff. The game has changed. But it isn’t over.

From Iranian Revenge Will Be A Dish Best Served Cold:

For many analysts and observers, Iran and the U.S. are on the cusp of a major confrontation. While such an outcome is possible, the reality is that the Iranian policy of asymmetrical response to American aggression that had been put in place by Qassem Suleimani when he was alive is still in place today. While emotions run high in the streets of Iranian cities, with angry crowds demanding action, the Iranian leadership, of which Suleimani was a trusted insider, recognizes that any precipitous action on its part only plays into the hands of the United States. In seeking revenge for the assassination of Qassem Suleimani, Iran will most likely play the long game, putting into action the old maxim that revenge is a dish best served cold….
Trump started this fight by recklessly ordering the assassination of a senior Iranian government official. The Trump administration now seeks to shape events in the region to best support a direct confrontation with Iran. Such an outcome is not in Iran’s best interests. Instead, they will erode Trump’s political base by embarrassing him in Iraq and with ISIS. Iran will respond, that much can be assured. But the time and place will be of their choosing, when the U.S. expects it least.

For myself, I see no point in absorbing punishment to show good will. But that is only a first approximation. We here know virtually nothing of what is known both in Washington and Teheran. This is where we are and this is what these analysts think, but the future remains unknown as it always is. The only certainty is that whatever Trump does the Democrats, and the media, will insist it was the wrong thing to have done.

Plus this: PETRAEUS ON SOLEIMANI:

Two short questions for what’s next, Gen. Petraeus — US remaining in Iraq, and war with Iran. What’s your best guess?

Well, I think one of the questions is, “What will the diplomatic ramifications of this be?” And again, there have been celebrations in some places in Iraq at the loss of Qasem Soleimani. So, again, there’s no tears being shed in certain parts of the country. And one has to ask what happens in the wake of the killing of the individual who had a veto, virtually, over the leadership of Iraq. What transpires now depends on the calculations of all these different elements. And certainly the US, I would assume, is considering diplomatic initiatives as well, reaching out and saying, “Okay. Does that send a sufficient message of our seriousness? Now, would you like to return to the table?” Or does Iran accelerate the nuclear program, which would, of course, precipitate something further from the United States? Very likely. So lots of calculations here. And I think we’re still very early in the deliberations on all the different ramifications of this very significant action.

And this: Lindsey Graham Has a Message for Iran: If They Retaliate, We Will Hit What They Can’t Afford to Lose:

“To the Iranian government: If you want to stay in the oil business leave America and our allies alone and stop being the largest state sponsor of terrorism in the world,” he continued. Boom. If they lose that, they know they will completely collapse and their own people will run over them.

Comments, thoughts and suggestions welcome

You may have noticed my lack of regard for modern economic theory which the following might help you understand more clearly. This is the draft of the cover text for the book I have just completed and sent off to the publisher. Comments, thoughts and suggestions would be welcome. My disdain for Keynesian economics I have discussed on many occasions. My attitude to “marginal” analysis I mention far less often which is why certain passages below are highlighted in bold.

‘Classical Economic Theory and the Modern Economy’

The book starts with two premises: First, that economic theory reached its deepest level of understanding in the writings of John Stuart Mill and the classical economists of his time, and then, secondly, the author of this book has understood Mill and has accurately explained what the classical school of the late nineteenth century wrote. From these premises, this then follows.

If you are to have any hope of understanding how an economy works, and how modern economic theory became the dead end it has become, you will need to read this book.

The classical economists, and John Stuart Mill in particular, lived through the Industrial Revolution, saw its astonishing economic transformation before their eyes, and explained, so others could understand for themselves, how their prosperity had been created through the emergence of the market economy.

Mill, the greatest utilitarian philosopher of his age, refused to use utility as part of his theory of value. Mill explicitly and emphatically denied any role for aggregate demand in the creation of employment. In reaching these conclusions, there was no disagreement among the entire mainstream economics community of his time.

First through the Marginal Revolution of the 1870s, and then through the Keynesian Revolution of the 1930s, the entire edifice of classical theory has been obliterated. From a classical perspective, modern economic theory is Mercantilist trash nonsense. If you are interested in how economic theory became the wasteland it has become, and wish to understand the classical theory no one any longer has the slightest clue about, this is the book you must read.

If you are interested in understanding all this more completely, you will have to read the entire book when it is finally published sometime this year.

We won’t always have Paris

https://youtu.be/NjDclfAFRB4

Not the one from the 1890s, nor in a hundred years the one from today.

When I was a boy, there was no movie in existence where at least some people might still have been alive no matter how long ago the pictures were taken. No longer true, not even remotely. Everything and everyone disappears into the past.

And then there were the 20’s, you know, a hundred years ago.

https://youtu.be/_QDmzfyqNJM

The year has certainly started like a lion

The above is an update with the President’s statement – “I am ready and prepared to take whatever action is necessary” – plus the following:

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After today, my impression is that the Americans know, and always have known, who their most dangerous enemies are and where to find them. Now their enemies know that as well. The rest below is from Instapundit.

“BOMB-O-GRAM FOR GENERAL SOLEIMANI!” Iraqi TV: Iranian military commander General Soleimani killed in Baghdad strike. “Gen. Qassim Soleimani, the head of Iran’s elite Quds Force, was killed in an airstrike at Baghdad’s international airport Friday, Iraqi television and three Iraqi officials said. The strike also killed Abu Mahdi al-Muhandis, the deputy commander of Iran-backed militias known as the Popular Mobilization Forces, or PMF, the officials said.”

Weird, just after the Iranians attacked our embassy, the senior guys behind it get personally whacked by an “airstrike” of unexplained origin. Whatever could have happened?

UPDATE: Oh, this is sweet. Pointed out in the comments, Khamenei to Trump: “You can’t do anything.” Oh?

ANOTHER UPDATE: Trump Authorized Strike That Killed Iran’s Soleimani: Pentagon. Iraqi paramilitary commander also dead in attack on Baghdad airport road; group accuses U.S.

Good riddance to bad rubbish. I’ll bet Trump has the next step gamed out, too. The Iranians still seem to think they’re dealing with Obama, or post-2005 G.W. Bush.

MORE: Oops! Trump undermines another journalistic prediction.

STILL MORE: Nice to have a president who isn’t too fearful to strike:

I’ve wondered here before why the Bush Administration was so wimpy with regard to Iran starting in 2005. (It was easier — *cough* Valerie Jarrett *cough* — to see why the Obama Administration was). But it’s good that Trump isn’t.

MORE STILL:

Just what are China’s ambitions?

And why shouldn’t they worry us? From The Economist:

Zoologists use a mild-sounding term—“displacements”—for moments when a strong, young mountain gorilla confronts the dominant male in his group. Behind the jargon lies a brutal reality: a drawn-out, bloody conflict looms. China’s leaders similarly use prim, technical-sounding terms to describe their confrontation with America. In closed-door briefings and chats with Western bigwigs, they chide the country led by President Donald Trump for responding to China’s rise with “strategic anxiety” (ie, fear). They insist that China’s only crime is to have grown so rapidly.

However, behind that chilly, self-serving analysis lurks a series of angrier, more primal calculations about relative heft. These began before Mr Trump came to office, and will continue even if an initial trade truce is made formal (Mr Trump says he will sign one on January 15th). They will endure long after November, when American voters next choose a president. China has spent decades growing stronger and richer. It already senses that only one country—America—can defy Chinese ambitions with any confidence. Its leaders have a bleak worldview in which might makes right, and it is a fairy tale to pretend that universal rules bind all powers equally. Increasingly, they can imagine a day when even America ducks a direct challenge, and the global balance of power shifts for ever.

Why some people dislike Donald Trump

Having gone into Quora on Donald Trump, my inbox is now filled with Quora Q&A on the American President. This has just come up, as an answer to the question, Why Do Some People Dislike Donald Trump? I found it quite interesting in that not a single reason among the ten listed relates to any policy questions. These people have no idea what makes their lives work or where their safety or personal wealth comes from.

About 60% (or more) of us dislike Donald Trump. Most avid Faux News watchers, and Republicans, will tell you all of the wrong reasons why we despise him.

Here are the real reasons.

  1. Trump is an embarrassment. We are now forced each morning to learn what new and embarrassing things the leader of the nation we used to be proud of has said or done on the world stage.
  2. Trump is a raging, malignant narcissist. Many of us knew what that meant. We already knew what problems are associated with this disorder. It meant he couldn’t love our country – or its citizens. And he doesn’t. And he can’t. But we were still standing here loving our nation. He’s never even spoken to us — even after all this time. He either calls us names (Losers, Haters), or he speaks “on behalf of the nation” without knowing our beliefs or thoughts. 1.5+ years into this and he still only talks to his “base”.
    1. His severe narcissism also makes him extremely predictable and most people in our Intelligence community will tell you how dangerous that is. Many of us, who already grew up with a bully knew this. We did not need to re-learn this and did not want to watch it slowly play out in the real world.
  3. Trump is amoral and exceedingly unethical. We didn’t (and still don’t) want to try to explain this to our children and grandchildren. We believe our President should be a role model and of the highest integrity. We also used to gain inspiration from our Presidents (both Republican and Democratic)… now we are just ashamed. We’ve been cringing daily for a-year-and-a-half now.
  4. Trump is a liar bent on making (or keeping) his “base” angry and afraid. He spins everything and tells his “followers ” the press is their enemy. This is for his benefit alone (narcissist) and not for the good of the nation. He lies every single day, to all sorts of people, and refuses to see that a divided nation is a weakened nation. Why? Because he has Narcissistic Personality Disorder.
  5. Trump isn’t intelligent. He speaks in a childish way and half the time sounds like a moron. He has convinced a good portion (maybe 38%) of the nation that he is smart (he has a “big brain”) but none of us who have already survived the torture of living with a narcissist believe what he says — or that he is intelligent. We see the commoner that he is.
  6. Trump is not prepared or qualified for the presidency. He knows next to nothing about governance, and will not bother to learn about it because he only serves, and cares about, himself. At least 60% of us thought our nation didn’t have time to wait for him to “get up to speed” and many of this same group also knew he’d never make a real effort to learn the job requirements — ever.
  7. Trump spits in the faces of women, minorities, Muslims, Mexicans, black people, other nations (including allies), and Democrats. He’s a despicable xenophobe, racist, misogynist, and philanderer. He’s a total wreck of a man-baby and an example of the worst behavior possible. This is intolerable to us.
  8. We (60% or more) don’t believe that simply being wealthy qualifies a person for any political office. It does not prove ability—especially when one is born into it. It certainly does not prove honesty, integrity, or accountability. Yet, we still want these qualities in our president and our politicians.
  9. We (the 60%+) knew (or at least those of us who’ve studied political science) we would most likely have a Republican president after 8 years with a Democratic president and we were willing to work with most any of them — except Trump.
  10. Trump has lowered the respect and trust the United States previously had in the world.

After all that, there is then this added on at the end:

Now, these are NOT the reasons we despise trump.

a. Because the Democrats didn’t win the election.

b. Because Hillary Clinton did not win.

c. Because a so-called Republican won the election.

d. Because we are “snowflakes”. In fact it takes much more courage to care about those less fortunate than ourselves and use our time and resources to help them. It takes real selflessness to see problems in society and try to fix them — even if we see later we failed. It takes real strength of character to see that some parts of society are being treated badly and then change ourselves and/or our laws to make things better for everyone. It virtually takes NO courage to only care about ourselves. In fact, we couldn’t be that selfish if we tried.

You didn’t add in the possibility that you are fools who are blind to reality, which is pretty close to the right answer.

Defining anti-semitism into oblivion

Thinking it over, prodded by the sensible comment below, I have to give large consideration to the possibility that the posts commented on below are not intended to be straight but are satirical observations on the attempts to defuse the accusation of anti-semitism of those who attack Jews in the streets or in their businesses, who kill people and draw swastikas on walls and synagogues.

Satire is supposed to make you laugh at the absurd by ridiculing notions that are straight forward idiocy through exaggerations of various kinds. If satire, it is the left that is being made fun of, and their media enablers, for their refusal to condemn the obvious and vicious anti-semitism found among some non-whites – particular among blacks and Islamists – for their undoubted anti-semitism. So the statement that only whites can be anti-semitic is a very clever parody, which I hope it is, or is an actual attempt to absolve those non-whites who hate Jews for being what they are, anti-semitic, but then letting them off the hook because of various extenuating sets of circumstances. The rest, below the line, is my original post.
__________

As anti-semitic as anything I have ever seen, self-hatred and idiocy rolled into one incredible package of disgust, this is not satire, or even intended satire: Only whites can be anti-semites.

They might kill you for being a Jew, they might murder your children for being Jews, they might burn Israel to the ground because it’s the Jewish State, but if their skin colour is anything other than white, they cannot, according to this hateful and deranged woman, be counted as anti-semitic.

And from the comments:

There is no such thing as a hate crime against a White. It is impossible for another ethnicity to be racist against a White. Only Whites are capable of racism. Only Whites are capable of antisemitism. All Whites are White Supremacists. White Supremacists are Nazis; therefore all Whites are Nazis. Nazis are racists against Blacks; therefore it is impossible for Blacks, Hispanics, Muslims and other people of color to engage in Nazi thoughts and activities and by extension, these people cannot have Nazi thoughts and actions against Jews. Jews who accuse anyone but Whites of being racist are not “real” Jews but pretenders. The real Jews are Black and were driven from their homes by the Europeans who then took over the title of “Jew” in order to steal the Jewish lands. (I heard about Black Jews months before the attack in New Jersey in, of all places, a small town in Mississippi by a Black man who I had always thought of as having a great deal of intelligence. Before the shooting I read an article in the international press complete with photo of a group of Blacks in traditional African garb who were claiming they were the real Jews, that real Jews were not White. This group was in France. This is a serious issue.

Serious it is, as are all forms of madness. More comment here.

A how-to guide to economic policy

For any single business, higher demand all other things being equal makes them more money and can often lead to an increase in the number of employees.

For an entire economy, higher demand has no bearing either on real incomes or on the level of employment.

This is straightforward and for me anyway, as obvious as the morning sun. It is the conclusion that comes from a proposition that now goes by the name Say’s Law.

There have been many examples in history where Say’s Law was shown to be an absolute truth in an economy. There have been even more where attempts to raise an economy from recession through increased public spending – through an increase in aggregate demand – have been abject failures. No stimulus in history has ever succeeded in pulling an economy out of recession, NOT A SINGLE ONE! The sad story since the GFC is the most recent, but there have been lots. Every single one made economic conditions worse.

On the other hand, we had the Peter Costello/John Howard years from 1996 to 2007 of the best economic management ever seen, possibly anywhere. Not only did we balance the budget for years on end, we ended up with zero national debt! Because of the idiocies of modern economic theory, even though this was done right there before our eyes, bad theory remains. Modern macro is economic poison, but it’s often lots of fun for both governments and the people who they spend the money on. And for everyone else, it looks sensible since higher demand must create higher levels of production. In reality, it is higher levels of production that allow for an increase in demand. That is why we are so much richer than a century ago. We produce more so that we can demand more.

We were reminded of all this here: John Howard and Peter Costello urge PM to keep building budget surplus.

John Howard and Peter Costello have urged the Morrison government not to squander the budget surplus on a short-term stimulus, while doubting whether monetary policy is still a useful economic instrument given the reduction in interest rates to historic lows.

“The government is absolutely right to be returning the budget to surplus and I think it’s right to anchor­ its fiscal policy to producing surpluses over the next four years,” Mr Costello, the nation’s longest-serving treasurer, told The Australian.

Treasury is filled with people who have no idea why this is the way to prosperity. Reserve Bank as well. A bit more here:

As forecasts for economic growth, household consumption and wages have been downgraded, and $21.6bn wiped from future surpluses, Mr Costello said he doubted whether monetary policy was still a useful economic lever.

“Monetary policy has run out of puff,” he said. “Once you get interes­t rates at near-zero levels, whether they’re at 0.75 per cent, 0.5 per cent, 0.25 per cent, it just doesn’t matter, it’s lost its power as an economic instrument and that is why when the Reserve Bank cut rates during the course of (last) year it had no discernible effect.”

Low interest rates are the other side of the Keynesian economic model, a disastrous shambles of a policy, which inevitably puts money into the hands of many more people who will not earn a productive return on investment relative to the proportion of borrowers who will do so if rates are higher. Interest rates are near zero everywhere and no economy has found low rates of any benefit. Only value-adding investment can raise living standards. High levels of public spending and low rates of interest will not do that, just as they never have.