That EU Nobel Peace Prize

 

Mel Brooks - I Want Peace (from "The Producers", Embassy Pictures, 1968)

I don't want war. All I want is peace. Peace.             

Peace!

A little piece of Poland
A little piece of France             
A little piece of Portugal
And Austria perchance

A little slice of Turkey
And all that that entails                 
Und then a piece of England Scotland
Ireland and Wales

A little nip of Norway
A little spot of Greece
A little hunk of Hungary
Oh what a lovely feast

A little bite of Belgium
And now for some dessert
Armenia Albania
And Russia wouldn't hurt

What exactly is liberty?

Dick Puddlecote has another go at Prohibition (the American experience of which is widely misunderstood), and (being naturally contrarian myself) I have a geat deal of sympathy for his opposition to officialdom.

But we can easily be misled into thinking there are only two positions to take: bans, or complete lack of restriction. I think lovers of freedom need to develop a more nuanced stance. As I comment there:

It's not the making available that harmful, it's the pushing. Look how licensing laws have been progressively relaxed since the 50s, mostly for the benefit of brewers and the supermarket lobby.

And the advertising - remember the 1989 Woodpecker cider ad showing a couple of woodpeckers seated on the ground, cans in hand, with the slogan"Get out of your tree with Woodpecker Cider"? There's a reference to it in this book (p 368 in Google Books - even there the text is unavailable online) but it seems impossible to retrieve the image - it's like getting hold of the Sun's "Gotcha!" Belgrano front page.

The liberty of the individual is distinct from the liberty of powerful commercial enterprises to exploit our weaknesses, and in this context I do not consider businesses to be persons with the right to liberty.

I think libertarians need to consider how they may inadvertently be acting as unpaid agents for the more questionable sectors of corporate capitalism; and to what extent liberty is better exercised in controlling an appetite rather than giving way to it.

Superficial consumer uptick, underlying concerns continue

Back in June, I noted that credit card lending had declined over the previous 12 months; now, according to the Bank of England, there has been a sharp recovery:

Similarly, the second-quarter report from ING Direct's Consumer Savings Monitor (PDF) shows a rise in consumer savings balances:

Yet the figures for UK M4 continue to decline:

So are these signs of recovering confidence? Perhaps the credit card figures reflect a temporary Jubilee Year / Olympics buildup feelgood splurge, and the plumping up of the savings cushion shows continuing underlying caution; otherwise, why not spend from savings rather than rack up plastic debt? And the M4 figures indicate a deflationary undertow beneath the surface.

But the aggregate statistics may be misleading. It could be that some who still have their heads above water, are saving hard while they can, and others are driven to buy on the card because they have no savings and cannot get more bank credit.

The next quarter may clarify the picture.

INVESTMENT DISCLOSURE: Mostly in cash (and index-linked National Savings Certificates), but now planning to build up some reserves of physical gold via regular saving.

DISCLAIMER: Nothing here should be taken as personal advice, financial or otherwise. No liability is accepted for third-party content.

Superficial consumer uptick, underlying concerns continue

Back in June, I noted that credit card lending had declined over the previous 12 months; now, according to the Bank of England, there has been a sharp recovery:

Similarly, the second-quarter report from ING Direct's Consumer Savings Monitor (PDF) shows a rise in consumer savings balances:

Yet the figures for UK M4 continue to decline:

So are these signs of recovering confidence? Perhaps the credit card figures reflect a temporary Jubilee Year / Olympics buildup feelgood splurge, and the plumping up of the savings cushion shows continuing underlying caution; otherwise, why not spend from savings rather than rack up plastic debt? And the M4 figures indicate a deflationary undertow beneath the surface.

But the aggregate statistics may be misleading. It could be that some who still have their heads above water, are saving hard while they can, and others are driven to buy on the card because they have no savings and cannot get more bank credit.

The next quarter may clarify the picture.

INVESTMENT DISCLOSURE: Mostly in cash (and index-linked National Savings Certificates), but now planning to build up some reserves of physical gold via regular saving.

DISCLAIMER: Nothing here should be taken as personal advice, financial or otherwise. No liability is accepted for third-party content.

Tyranny in the name of freedom: a case history

We're watching with interest BBC's "Wartime Farm" series, about efforts to increase food production in Britain in World War Two. Last week's episode (number 4) included a sadly instructive story about a farmer who ran foul of what seems to have been the stupidity and inflexibility of centralised bureaucracy. Resisting it, he paid with his life.

The incident is covered from 23:19 in the programme, and also described in the online Radio Times. A Hampshire tenant farmer called Ray Walden had been ordered to plough up "roughly half" of his farmland for extra corn production to meet "War Ag."targets, but according to a contemporary interviewed in the programme, some of that land was too wet and unsuitable for corn. Walden refused and when served with an eviction notice (as some 2,000 farmers were, during the War) barricaded himself in his house and in the ensuing 18-hour siege shot at those trying to remove him, wounding one or two in the process. Walden was shot in the head and fatally injured.

The contemporary report by the Hampshire Chronicle, covering the events and the inquest, is here. However, significant extra details are given in this account, which tells us that (a) under wartime regulations the proceedings of the inquest were held in secret, the public and Press being excluded, and (b) no evidence was offered on the late man's behalf to explain why he had acted as he did. In the latter account the Cultivation Order is also said to have been for only four acres to be ploughed, not half the (62 acre) farm as in the BBC's version, which raises the possibility that there may have been some falsification in the evidence given at the inquest in order to make the Min of Ag's demand seem more reasonable.

Only one man, only one death - but that's all any of us has, despite the BBC's attempt in the programme to sweeten the bitter pill by reference to "the greater good". In how many areas does government act like a kind of Juggernaut, rolling over anyone who gets in its single-minded, sometimes simple-minded way?

UPDATE

A comment on this post at Orphans of Liberty:

Well, what a surprising thing to stumble upon. George Walden is an ancestor of mine, on my mother’s side. Family legend has long held that “dark forces” were at work of a more local nature, namely anti-Papism in the form of the vicar and a long-held grudge over disputed debts with a local worthy. In light of these, favours were called in and a ridiculous land demand was drawn up. All rumour and hearsay, of course. The family were most offended by the suggestion that he committed suicide.

Readers may know that anti-Catholic prejudice still ran pretty strongly in those days, as my late mother-in-law found when as a youngster she spent time in Scotland. And money is often a cause of trouble.

China expanding into Russia

From France 24 (hat-tip: farmlandgrab.org) (loosely translated by me with Google Translate's help):

Long closed to foreigners, Siberia is now opening up to China. More and more Chinese are crossing the Amur River to settle there. Their presence is beginning to worry the Russian authorities, who see them as new competition.

Since the fall of the Soviet Union, the Chinese have been leaving the Middle Kingdom in growing numbers to settle on the other side of the border, in Russia, in the Far East region historically known as Eastern Siberia.

 FRANCE 24 reporters went to Blagoveshchensk, a Russian city located more than 8,000 kilometers from Moscow and merely 800 meters from China. The two countries are separated only by the Amur River. In winter, when the river freezes, one can cross on foot.In summer, it takes less than ten minutes to get from one bank to the other.

 It was once a front line where the armored divisions of the two feuding brother Communist states threatened each other. Now "Blago", formerly a closed city, has become the symbol of Far East "sinicization". Here, without the Chinese there is no future. The development of the economy depends entirely on relations with China. Derelict ex-collective farms have been taken over by Chinese. There are many mixed marriages and Chinese is the principal foreign language taught at school and university. Here, all Chinese speak Russian and the Russians know a few words of Chinese.

Generally this cohabitation is going well, although there are some who object to the "peaceful invasion". Many Russians are worried about their country becoming a "reservoir" of raw materials for their Chinese neighbour who buys their oil and exploits their forests and farmland. Others who are forced out of the labour market by the cheap and efficient Chinese workforce denounce them as a "yellow peril".

That xenophobic language is completely contradicted by the reality that the Russians need the Chinese here. In "Blago", they remember a time not so long ago when Chinese products helped the Russians to take the brunt of the post-Soviet transition. And today, it is thanks to Chinese entrepreneurs that the Russian economy is modernizing.

INVESTMENT DISCLOSURE: Mostly in cash (and index-linked National Savings Certificates), but now planning to build up some reserves of physical gold via regular saving.

DISCLAIMER: Nothing here should be taken as personal advice, financial or otherwise. No liability is accepted for third-party content.

China is why Burma released Aung San Suu Kyi

Why, after 20 years' intemittent house arrest and other restrictions, was democracy campaigner Aung San Suu Kyi freed by the Burmese government?

Last night's BBC This World programme "Aung San Suu Kyi: The Choice" (viewable online until 29 September) sketched the postwar political history of Burma, viewed through the lens of the personal experience of Suu Kyi and her family and touching on the heavy emotional cost for them as well as her steely courage and wily pragmatism.

But neither pity nor admiration were the motive for the junta's rapprochement with her and her party, the National League for Democracy, according to a former figure in Burmese military intelligence who was deputy Ambassador to the USA. At 52:28 in the programme, Major Aung Linn Htut set the decision in its geopolitical context:

"Change is inevitable. The current military leadership knows that. Burma has fallen so far behind the rest of the world. China is swallowing us up economically. It's controlling us politically, too. Burma can only counter China's influence with the West's help. These changes are an attempt to redress the balance."

China and Burma are neighbours and have had periodic flareups since the thirteenth century. summarised by this article on BurmaNet. Post-World War Two, Burma defended itself against the Chinese Nationalist Kuomintang and then Chinese-sponsored domestic Communist subversives. When the latter failed, China switched to encouraging the growth of ethnic minority militias in Burma, which has bequeathed a poisonous legacy and unfinished business as far as the leadership is concerned. Aung Linn Htut's article continues:

Then in 1989, Kokang leader Peng Jiasheng followed Beijing’s advice and contacted Burmese Maj Than Aye, head of intelligence unit No. 9 based in Lashio, Kachin State, to discuss peace without disarmament. Lo Hsing Han, a former drug lord, served as a liaison between the two parties and a cease-fire deal was reached.

The Kokang offer was accepted by Burmese Gen Saw Maung and Brig-Gen Khin Nyunt, then the leaders of the State Law and Order Restoration Council (SLORC), with the approval of Ne Win, who had resigned his official post in 1988 but retained a great deal of influence over state affairs. Later, many armed ethnic armed groups based along the Sino-Burmese border followed the Kokang example and entered into cease-fire agreements with the SLORC.

Snr-Gen Than Shwe and Vice Snr-Gen Maung Aye, both holding the rank of Maj-Gen at the time, were not happy with the cease-fire agreements, but they dared not protest against deals entered into by their superiors. After taking office, however, Than Shwe used to say he was dealing with the Chinese not out of desire but because it was unavoidable. He never shook hands with leaders of cease-fire groups from the northeastern part of the country, and frequently told divisional and regional commanders at quarterly meetings that those groups would be attacked one day.

Read in this context, Suu Kyi's movement presented another opportunity for Beijing to undermine Burma's government:

After the National League for Democracy (NLD), led by pro-democracy leader Aung San Suu Kyi, won a landslide victory in the 1990 election, China was the first country to recognize the party’s victory by sending its ambassador to Burma to the NLD.

Then, he continues, there are the economic issues. China sold arms to Burma, who then failed to pay; international isolation drove Burma to give control over energy, mining and irrigation to Chinese companies. When China "became concerned about the plight of ethnic armed groups" on their joint border, her foreign minister tried to instruct the Burmese leader Than Shwe to deal with it, and he angrily threatened to change the route of oil and gas pipelines between the two countries; China backed off.

Aung Linn Htut's view is that Burma has to seek dialogue with the West in order to avoid being absorbed by China:

Based on an analysis of the past and present relations between the two countries, one can predict that China will be particularly dangerous for Burma in the future and the situation will be very worrisome for the Burmese people. Burmese military leaders, who may have thought they are good at the political game, have played China against the US and India, but they are now in a position to only follow whatever Beijing asks them to do. China has not only acquired many parts of Burma’s economy, it has to a certain extent dominated ethnic relations and culture.

Burma’s current military leaders, including Gen Min Aung Hlaing, the commander-in-chief of the armed forces, are reportedly not happy with the situation, but they do not know all the details of what their seniors previously did and agreed to do. As a result, they do not know what words and actions are right and wrong with respect to China, so they have to follow Than Shwe’s instructions. If they continue the way they are going, Burma will indeed become a part of China, or a Chinese colony, as many people say. Or the discontent of the Burmese people will grow and lead to anti-Chinese riots, which will end up in conflict between the two countries.

Potential conflicts over resources continue. For example, there is China's damming of the River Salween, which continues into Burma. Tibet is vital for China for a number of reasons but one of them is that whoever has Tibet controls several river systems running through East Asia. The 21st century could see an age of water wars.

The British also have major business interests in Burma; and her natural gas and oil are another bone for the world's dogs to fight over.

Suu Kyi has been a bargaining chip that neo-imperialist China, Burma's tiger-by-the-tail military rulers and Western plutocrats have all tried to use, but if she plays her negotiable value as skilfully as Malta's Dom Mintoff she may succeed in benefitting her country in a way that none of the others has a reason to do.

INVESTMENT DISCLOSURE: Mostly in cash (and index-linked National Savings Certificates), but now planning to build up some reserves of physical gold via regular saving.

DISCLAIMER: Nothing here should be taken as personal advice, financial or otherwise. No liability is accepted for third-party content.