What can undo the Tea Party in the US?

When the positive push for less government gets tainted and polluted by idiots like this.

Let's be clear, the Tea Party movement has core values and principles that are undoubtedly libertarian and pro-freedom.  In and of itself it promotes small government, free markets and fiscal responsibility.    The fact that some Republicans have actually taken it upon themselves to embrace what are the core values and principles of the United States of America is positive.   It is frightening the silver spoon socialists like Nancy Pelosi, who hasn't seen a problem she didn't want the government to fix.

It has perplexed President Obama who is astonished that only two years after he won off the back of a euphoria of incredibly vacuousness ("change" I'll give you "change") he isn't getting "credit" for introducing compulsory health insurance, bailing out failed banks and automotive manufacturers and spending billions of dollars that are not being raised in taxes.

The Democrats are lost between being amazed that so many Americans are embracing the small government message, disappointed that Barack Obama has not parted the sea, healed the sick, rebuilt the economy and "changed" everything for the better, so have resorted to accusing the Tea Party Movement of racism (the cheap instant slur thrown about with such abandon that it demeans those who fought true racism).

So it is an opportunity, yet it is one that is so readily squandered in the hands of Christian conservatives who seek to use the state to promote or enforce their own beliefs.

There is no majority in the United States of Christians who want the Federal Government to promote religion in schools, to regulate behaviour between consenting adults or restrict freedom of speech.   Indeed those like O'Connell who dare to question whether the United States is a secular liberal democracy will do far more damage to the Tea Party Movement than anything else.

For the "wingnut" religious right in the US will vote Republican in any case, but by associating the Tea Party Movement with religion it alienates swinging voters who find religious fundamentalism distasteful, but who agree with small government, free markets and fiscal responsibility.

Yes some imbecilic parents want their children to be taught that the pseudo-science of creationism is "as valid" scientifically as evolution.  The appropriate answer to that is to privatise education, so that schools can set themselves up as they wish and teach as they wish, so the state is not involved.   The answer is not to confuse beliefs in the supernatural with the state.

It is why the likes of Sarah Palin can not be the Presidential candidate for the Republicans in 2012.  She does not consistently believe in small government (she believes in the war on drugs for starters,and she has lobbied for earmarked pork funding from the Federal Government for Alaska) and she cannot help but get tied up in linking religion to public policy (by claiming war in Iraq was part of "god's plan").  

The Tea Party can be a great force for good, but it will be undone only by two types of people, the religious right who want it to be a proxy for an agenda that is anything BUT about reducing the size the government, (and so frightening off moderate Christians, and non-Christians to the Democrats or not voting at all) and (more likely) the sleazy, pork barrel carrying, power hungry statists who have dominated the Republican Party for decades.

Sarah Palin is in both camps, she finds it difficult to separate her religion from her publicly expressed political views and has also shown herself to be part of the establishment (as well as being far from bright).

I am wishing the Tea Party the very best in the mid-terms, if only because it will send a message to the Republican Party, and because the Democrats will have no way of confronting it other than attack (how can they embrace a movement that runs contrary to all they say and do).  However, it cannot and should not be a hostage to imbecility or those for whom the phrase "Christian theocracy" doesn't send chills down their spines.

Spending cuts do not take money out of the economy

It's so abundantly simple that it shouldn't need explaining, but the Adam Smith Institute hasn't done a bad job:

"The error is in seeing the government as being external to the economy, with spending coming as manna from heaven. In fact, government money does not come from nowhere – barring simply printing money to pay for spending (which obviously does not increase actual wealth), government spending money can either come from taxes or borrowing."

Anyone can see that taking it from taxes is a transfer from the private sector to the state, and simple redistribution.  If this generated wealth, then North Korea would be beating South Korea.

How about borrowing though? Surely that's bringing money in?

"Government borrowing comes from private savings, crowding out private borrowers like entrepreneurs and investors. By diverting money away from businesses and entrepreneurs, who can use it to create commercially-valuable projects, wealth is squandered on projects that are unproductive such that only a government. If they were productive, why would it be necessary to tax people to pay for them in the first place?"

 

Now some make the argument that governments can make productive investment, in certain infrastructure where the private sector is prohibited or crowded out.  This can be true if the projects selected are high value, but this is only a second best option and only reflects the failure to allow market signals to incentivise the private sector to enter such markets (the best example is with roads).   

Yet neither in the UK, nor in the US (nor New Zealand) is such deficit spending about roads, it is about consumption.

This is why eliminating deficit spending is positive for economies.   It gets the government out of competing with private businesses for borrowing (of all sizes), so it reduces the cost of borrowing.  As government debt is typically seen as one of the safest "investments" (nothing like lending to someone who can extract repayment by force from its subjects), reducing the supply of such debt will induce financial institutions to look elsewhere for returns.

After all, Japan has been deficit spending now for over a decade, and the results have remained lacklustre. 

Keep calm, the cuts are going to be pitiful

A "reckless gamble" says the Shadow Chancellor. The Marxist Trade Union Congress says the cuts will be "huge".

The full details will be announced in two days time, but we already know how much the total value will be as the Emergency Budget foreshadowed the amount earlier this year.

The Adam Smith Institute has analysed what was forecast, although it has forecast inflation being 2-3% (when it is closer to 5%) and the overall cuts will be only 4.2% over five years.

Even the Guardian's handy public spending guide demonstrates that after the forecast cuts, the size of the British state as a proportion of GDP will be about the same as when the Atlee Labour Government lost power (after creating the NHS). It will not be the lowest since WW2, which was shared by the mid 1950s under Eden and the late 90s under Blair (the first term of which was characterised by fiscal restraint). 

So let's not get excited.  Schools wont close down, hospitals wont close, nobody is going to starve, the only people who will get less welfare are those on middle to higher incomes and precious little of the state sector is getting cut back.    

The only reason noise is being made is because so many have been enjoying the growth of the state tit in the past decade that they find it hard to accept that the money to keep this up simply does not exist.

Labour's land policy can be extended

Labour Leader Phil Goff today announced that given the warm reception of his policy against foreign own land and businesses that he would apply the principle more generally.

“Given that foreign investors can often have a pernicious, non-Kiwi way of looking at land and infrastructure operations, we understand that only the Tangata Whenua, meaning not only Maori but non-Maori Kiwi blokes and blokesses know how to treat land as more than an investment, but a link to the nation and the people. This link isn’t just across Aotearoa but is local too, so I have decided to announce that Labour will restrict sales of South Island land to South Islanders only.

For many years now more and more farms, businesses and infrastructure in the South Island has been owned predominantly or exclusively by North Island companies and individuals. These people do not have a direct link with the land, and are less likely to appreciate the cultural, economic, social and environmental sensitivities involved. The Queen Street Farmer with properties in Otago must come to an end.

The inflation in prices that this allows has been rampant, so I will institute a policy that such sales will only be allowed if they are in the interests of South Islanders.

Given the wisdom of this approach, I intend to empower local authorities to institute similar such rules, so that the people of Hamilton do not face Aucklanders buying up properties and shutting them out of the market. Similarly, the overpriced Kapiti housing market will be set free by keeping Wellingtonians out.”

He continued:

“There are big North Island buyers with money to burn who want to control and own the supply chain for food production. Instead of adding value to production in the South Island, they could decide to do it in the North Island.

That would cost the South Island jobs.

They’re going from the North to the South Island to buy what’s currently South Islanders’ and they will be doing it more often.

South Islanders are more vulnerable as land values fall.

We are at risk of our land being priced on a national market beyond the reach of South Islanders.

When South Islanders have to compete against North Island buyers, we have to ask ourselves - what will happen if the prices paid lock us out of owning our own land?
Where does it end up if we say to ambitious young South Islanders that you can only buy into our best and productive assets if you come from the North Island or you are born into a wealthy family.

That is not the South Island I want.

No North Islander has the right to buy South Island land - it is a privilege.
It is a privilege we have granted too easily.

Today you have my commitment that Labour will turn the rules on selling land to across Cook Strait on their head.

We’ll guarantee that South Islanders’ interests are put first.

We will reverse the presumption that any North Island purchase of South Island rural land is good for South Islanders.”

He continued to explain that he would be consulting on whether to first restrict inter-electorate sales of land ("can't have those Cantabrians buying West Coast land willy nilly can we?") or inter local authority sales ("Carterton for Cartertonians"!), noting that local authorities themselves may decide to impose more local restrictions if need be.

"Parnell for Parnellians, Miramar for Miramaranians, Taradale for Taradalians" he could be heard banally crying out.

He noted finally that this policy was in alignment with the great philosophy of self-reliance of Juche, adopted from Pyongyang.

Where and when will North Korea's future new leader be born?

Why ask such a question?  Wasn't he seen recently in public with his dad Kim Jong Il?

Well yes.  However, when and where was he born? 

Daily NK explains that none of this is new.

Confused?

Well there is NO official birthday, birth year or birth place for Kim Jong Un, yet.   However, some sources in the Democratic People's Republic of Korea (DPRK) claim that this is being manufactured at present.  

It goes like this:

Kim Song Ju (Kim Il Sung after 1935) was born 15 April 1912 at Mangyongdae near Pyongyang.  His birthplace is a national shrine, although the authenticity of almost all of it is questionable, debate about his birthday, birth year and birth place is largely closed.

Kim Jong Il was born 16 February 1941 at Vyatskoye Russia.  This is where it gets interesting.   The official story is he was born 16 February 1942 at Mt. Paektu in Japanese occupied Korea. The earlier date and location are proven by Soviet records and other historical accounts.  Even the DPRK once published his birth year as 1941 well before Kim Jong Il had any political role. 

Why change it?

Firstly the change in location is the most important point.  The official history of Kim Il Sung is that he was an anti-Japanese revolutionary fighter (true on the face of it) who helped lead the Korean people to remove the Japanese Imperial Army from the Korean Peninsula (far from the truth).  To support this myth it can't be said that Kim Il Sung in 1941 (or 1942) was actually in the USSR leading the 1st Battalion of the Soviet 88th Brigade of exiled Koreans (and Chinese) learning about Marxism-Leninism.   Kim Il Sung fought in the Red Army, a fact that would not support his nationalistic Korean anti-Japanese credentials.  Those credentials have been critical to gaining support for him among north Koreans - who better to lead you than a man who single-handedly saved Korea from the (truly) brutal and barbaric Japanese occupation.

So Kim Jong Il HAD to be born in Korea to support the myth of his father.   Given that was the case, where better than Mt. Paektu, the highest mountain in Korea (although half of it is in China) and so it carries "sacred" qualities.  It is where Kim Il Sung was supposed to have had his base to fight the Japanese, so how better to assert anti-Japanese credentials for Kim Jong Il than to claim he was born amongst soldiers.

What about the year?  Well Kim Il Sung was born in 1912, which meant 1962 was the year of his 50th birthday celebrations.   It was decided if Kim Jong Il was said to be born in 1942 not 1941, then 1982 could be a year of 70th birthday celebrations for Kim Il Sung and 40th birthday for Kim Jong Il (he was publicly announced effectively as successor by name in 1980).   Nothing more than that.

So Kim Jong Un?  He needs a suitable birthplace, something to do with his grandfather I would think.  There are conflicting accounts as to whether this is being constructed (and residents relocated as a result).   The birth year is accepted in South Korea as being 1983 because of the testimony of Kim Jong Il's former chef who defected.   Shifting it to 1982 would align it with his father.

What does all of this prove beyond being a quaint curiosity? That a state that owns its people so comprehensively as the DPRK is so egregiously willing to lie to them on such a grand scale about the most trivial of things. 

On a more optimistic note, the Korea Times reports that North Koreans are laughing off the propaganda they are being fed about the new leader and his immortal exploits.   Given even his older half brother opposes the succession (and is being protected by the Chinese government), it seems unlikely that a second hereditary succession can be undertaken smoothly.