03 April 2012

30 years since the foolish Falklands War

30 years ago a nasty little fascist military dictatorship launched a vain war to conquer a collection of islands 460km away from its territory.  The purpose was to rally a shallow machismo-like nationalism to divert attention from the economic disaster and oppression that it had brought to the people it pushed around.

Today its successor regime, democratically elected, and far closer to Western values of freedom and individual rights, is playing the same game.  Engaging in shallow machismo to demand that islands that are inhabited by people who don't want to be ruled by them, are handed over to them, and effectively commemorating a war that, by implication, it considered to be just.

For a woman called Cristina Kirchner, ruling a country in South America, to talk about colonialism is comical.  For the claim Argentina makes is because of its past Spanish coloniser (and her late husband's ancestry is no more linked to that land than it is to Spain).

Let's make it clear.  Britain discovered the Falklands, but France later established a separate colony on the Falklands that Spain acquired in the late 18th century.  Spain attacked the British colony, but a peace treaty divided the island.  However, subsequently both Spain and Britain abandoned the islands although leaving plagues indicating their claims.  Subsequently Britain returned, and Argentina attempted to do so, claiming Spain's authority.  It failed.

However, today countries don't fight territorial wars of conquest.  The Falklands have a permanent settlement of virtually entirely people of British descent.  Under the principle of international law known as self-determination, the future of the islands should be decided by those who live there.  As they have repeatedly made it clear, they want to remain under British sovereignty.   It's hardly surprising, given almost all of Argentina's post independence history has been pockmarked with dictatorship of both fascists and socialists, hyperinflation, corruption and economic illiteracy.  Kirchner has continued this tradition.

She has managed to reintroduce import licensing, constrained exports of food with export quotas and taxes.  Importers have to follow bizarre rules, that economic nationalists would be proud of, in that they need to export the value of the goods they want to import.  Absurd arrangements are set up as exporters make money by setting up multiple businesses to help importers get the foreign exchange they want.

Kirchner's regime in 2008 nationalised private pensions to help balance the budget, so she is a long proven thief, but a thief that commands enough patronage through subsidies, welfare and other transfers that she has managed to get re-elected.  

In fact, it has even started lying about its inflation statistics to the point that the Economist has stopped reporting it.  Argentinian politicians have long been adept at stealing from their own people through inflation to the point that the US$ is the preferred currency in the country.  Inflation is really around 25% despite official reports of less than 10%.   Of course the result of the preference to the US$ is strict monitoring of currency conversions with tax inspectors especially focused on such transactions.  The result is that larger companies arrange their affairs to minimise liability, small ones and individual Argentinians get their savings thieved either by inflation or Kirchner's patronage based administration.

Argentina's economy isn't stagnant, the rise in commodity prices has meant that revenue from mining and agriculture has kept the country afloat, yet Kirchner's profligacy has wasted away a period when the country could have boomed.  It could have built an economy like Chile, by doing away with patronage laden monopolies, trade licences and subsidies, and liberalising, but it refused.  It has even told RIM and other mobile phone manufacturers they must assemble phones in Argentina.  A few are proceeding to do so, at high cost, obviously creating less jobs than they are costing by raising the price of mobile phones.   The economics that brought Argentina from 2nd highest per capita GDP in the 1940s to third world are being replicated.

It's hardly surprising, she is allied to that poseur and economic lunatic Hugo Chavez, who helped fund her electoral campaign. 

So now she is using the Falklands to distract attention from the accumulated economic cost of her kleptocratic policies.  It is a tiresome expression of Latin machismo and bluster.  Argentina hasn't remotely got the means to militarily take the Falklands, and her interest is in vacuous nationalism, and to claim the oil and gas reserves that she claims are "polluting" "her" country and ocean.  They wont be if she was running them of course.

The fundamental issue with the Falklands is that self-determination is about what the people of a territory want.  The people of the Falklands want to remain British, not least because Argentina's unstable history of dictatorships of the left and right, kleptocratic lying corrupt regimes whether elected or not, is hardly conducive to closer relations.  Why would farmers on the Falklands want to pay extra taxes to export, or deal in the worthless Argentinian peso, or face the patronage laden courts, police or the socialist eccentricities of a country which elects Presidents who care more about their own pride and posturing than about their people.

That is why the Falklands will remain British for now.  For until Argentina and Argentinians create a country, a political culture, an economy, a legal and constitutional framework that people want to join, they will seek to remain part of the UK.  For however flawed it is and however distant it is, however slow its economy, however much of its glory is in history, Britain is still less corrupt, more stable, more dependable, and respects individual rights and freedom more consistently than a young post-colonial Latin American republic, barely a generation away from military dictatorship.

It is for that that good men and women served to defend the Falklands from the frightened young men of a military dictatorship 30 years ago.  The sacrifice and effort of those who defended the Falklands are to be commended and remembered, the loss and tragedy of those who were forced to fight the petty little war of Galtieri is sad.   

01 April 2012

Earth Hour?

If I hadn't seen the odd reference I wouldn't have remembered that this event was meant to be today.  In the UK neither TV, nor the rest of the mainstream media have paid it any attention.

Perhaps in an age of economic stagnation, most people are fed up with smug middle class types telling them how good it would be if they used less electricity and cared more about environmental causes, and perhaps they are also tired of being told about how much harm they are causing, when the same types don't bother telling people of countries with far greater per capita contributions to emissions to do the same.

The environment matters because we breathe, eat, drink and live in it.  Yet without harnessing it, using the resources around us and applying reason to it, we would not survive.  The harnessing of energy and generation of forms of energy that only a few generations ago were mostly only visible in electrical storms, has resulted in a monumental improvement in the lives of billions.

That's something worth celebrating.  Let the people worshipping the dark do so, but I'm more concerned about the millions who don't yet have the opportunity to brighten their darkness with technology we take for granted because of the philosophy of those who don't believe people own their lives, that property rights should be defended or that science, reason and individual creativity should prevail over superstition.

Earth Hour is contrary to that, it proclaims that the answer to concerns about pollution is to abandon technology and the advantages that modernity has brought us.  That's wrong.  The answer is to embrace it, to embrace reason, to embrace the creativity of the human individual and to create property rights for that which people value (and hundreds of millions of people do value protected natural environments).

31 March 2012

West Bradford shames itself

I don't need to say much about George Galloway, he is one of the most repulsive politicians in Britain today.  As Christopher Hitchens once said "the man's search for a tyrannical fatherland never ends".  He has been a sycophant of Saddam Hussein, Bashar Assad, Mahmoud Ahmadinejad, Fidel Castro and Hugo Chavez.  He misses the Soviet Union - the stale stinking behemoth of blood stained lies, oppression, imperialism and terror.  He supported the Islamist terrorists who festered in Iraq after the Western invasion, he supports Hamas, he said the Syrian people are lucky to be ruled by Bashar Assad.  On top of it all, this Dundee Catholic fifth columnist lies - blatantly - denying that for which there is video evidence.  He blames 9/11 on US foreign policy.  He claims to not support the Iranian system, yet said explicitly he supported the campaign of Ahmadinejad on Iranian TV.  His direct relationship with the Hussein regime was demonstrated with evidence, but he continues to deny it.

So how did such an odious creature get elected in a low profile Bradford West by-election?  Simple.

He has a high public profile (he appeared in Celebrity Big Brother in 2006).  He spent money and time in the constituency spreading his latest brand, of being a teetotaller who has always supported Muslims, who opposed the war in Iraq, opposes Western forces in Afghanistan, supports Palestinian militancy and opposes Western intervention in the Middle East.  He played to the tribalist, anti-Western bigotry of many ethnic Pakistani voters in the constituency.  He benefited from a week of appalling mismanagement by the government, and the continued ineptness of Labour leader Ed Miliband.  It was a protest vote, apparently driven also by Galloway targeting young Pakistani voters who otherwise may not have voted.  It has been alleged that some of his supporters voted for him as a rebellious action, for his shenanigans with Celebrity Big Brother were looked down upon by some of his Islamic support base.

Bear in mind also that turnout was low (25% or so down on the general election), and it was meant to be a safe Labour seat, which motivates less supporters for major parties to bother voting.

Yet while much analysis will focus on why the major parties, especially Labour, did so badly, the real menacing implication is that a man who has long provided succour to Islamists and dictators, can command such overwhelming support.  Was there not sufficient media scrutiny of Galloway?  If there had been much more, would his campaign have been harmed (and is it not for the other parties to do that?)?  Or do his voters agree with him - that Iran doesn't have such a bad President, that Syrians are lucky to be ruled by Assad, that criticism of Syria is because of the "good things" Assad does, that Saddam Hussein deserved to be saluted for courage and indefatigability, that Hamas is a force for good, that Islamists who shot dead 58 people at a Catholic Cathedral in Baghdad were to be supported, or the ones who bombed 48 people at a restaurant, or who let off a bomb killing 54 Shia on a pilgrimage, etc?

George Galloway has always done well out of politics, he has connected himself to whoever he can who opposes open, free, liberal Western democratic capitalist societies, and embraced variously Marxist, Soviet, Islamist, Ba'athist dictatorships.  He says one thing on the broadcast outlets of his favoured dictatorships and another in the West.

So it's about time that proper efforts are taken now to hold this friend of thugs to account, to reject his evasion and deception, and expose him once again.  However, although I hope most of his supporters are naive young voters who see him as a high profile protest against the mainstream parties (and their parents), I fear more than a few embrace an agenda that is anti-British, anti-Western, sympathetic to Islamism and believers of the rampant conspiracy theory ridden nonsense that passes for "theories" in some parts of the world.  Is anyone confronting this?


23 March 2012

Idiot Savant has lost the plot and is clueless about Europe

For a while I would read the blog of Malcolm Harbrow, aka Idiot Savant, aka No Right Turn, if only because it would provide some useful coverage of Parliament, and it is helpful to know what the hard left is thinking. It's hardly surprising that I mostly disagree with him, except when it comes to individual liberties where he can often be right - and will call out politicians of all ranks on that, and bureaucracies as well

 After all he thinks that children are the responsibility of everyone, through the state. He'd only be happy if the welfare state expanded, was more generous with less limits on eligibility. After all, tightening up eligibility for the invalids benefit is seen as "sadism" by him. He considers Ayn Rand and objectivism to be a "cult". He thinks people are only free if they don't have to provide for themselves and can choose whatever they want to do with their time

Such a disjoint with reality indicates a fair degree of foolishness. If everyone was "free" to do this, then everyone would starve, freeze and die rather fast. In order for anyone to have this "freedom" to "do whatever you like" literally, someone else has to be forced to provide for that person, or to choose to sacrifice oneself for that person. It's quite absurd, but then I've come to the view that Idiot Savant is indeed absurd himself. He is a great example of the fundamental disconnection between reality, principle and morality that the hard left carries with it. See I am fairly generous about most people across the political spectrum. I think they genuinely do believe they want the best for humanity, in general. The key debate is the means of getting there, and the priorities in doing so. However, there is a more fundamental belief around rights, and the relationship of the individual to the state. Statists believe individuals are a means to an end, individualists believe they are ends in themselves. 

Idiot Savant doesn't believe those on the right or those who believe in less state want people to be better off, he actually believes that those opposite him on the spectrum are sociopaths.  Because he advocates using the state to force some groups to be better off, he thinks everyone wanting to shrink the state want the rich to be better off and the poor to suffer and die.  The idea that people who believe in less government actually want better outcomes for all is ridiculous to him, because he can't conceive of how you do that without Marxist redistribution and regulation policies.

The simplistic position he takes is that those who believe that the state should take from those better off and pay those worse off, are morally good. Those who want to force people to give people jobs, keep them in jobs, allow them to work less for more money, and to ban people from choosing to work more for less money in competition, are morally good. A big warm cuddly state that exists to facilitate such transfers of money from "rich to poor", to provide state monopoly services paying its employees generously, not expecting them to be accountable for performance and having safe jobs for life, and which ruthlessly restricts businesses or entrepreneurship when it threatens to undermine state monopolies, existing employment or punitive taxes, is his dream.

 He stands for unionised labour closed shops. He is willing to use shonky surveys developed by private companies seeking to promote their services if it supports his point of view. He touts tired old leftwing cliches about privatisation which have been proven to be false, whilst supporting implicit subsidies of the coal, dairy and timber industries. He manufactures a story about protests in London that he never witnessed, and which even the media he uses doesn't support. He likes to give the impression that he is authoritative, like a journalist, and does his research. Well patently he doesn't. He is an angry bigoted little man, whose view of his political opponents has become so bitter he may as well paint them all as fascists or caricatures of Montgomery Burns. 

Take his recent celebration of Nick Smith's resignation (which was entirely justifiable). He can't just stick to that, he has to say "climate change denial and destroying the environment are tribal shibboleths of the right, and so these portfolios will almost certainly go to someone with no commitment to them." Tribal shibboleths? Does he really think those on the right want to destroy the environment? Is it true that everytime National gets in power that it lets rip with pollution and destruction of habitats? Is this what the hard left tell themselves - that they are the great saviours of the planet? His comment on the UK's budget speaks volumes too about his inane grasp on reality. It's one thing to slate tax cuts for those on highest incomes, as par for the course for Marxists. However, he manufactures a claim that benefits are being slashed for the unemployed, disabled and the sick. It's simply not true (the kernel behind this is tightening up eligibility for disability benefits because of the hoards who remain on it, even though they may be as mobile as many others). He claims it is cutting the NHS, when funding for the NHS is growing (even a leftwing website bemoans at how low the increases are). He of course, like any Gramscian Marxist ignores the increase in the income tax free threshold for the very poor - he can't compute, accept or spread the fact that the evil child eating Conservatives might cut taxes for the poor. That interferes with his bigotry. 

However, the post which really caught my attention was his rant about austerity in the Eurozone. He said: But there's little doubt that these cuts will lead to tens of thousands of deaths in each country. And every one of those deaths can be laid at the feet of the foreign bankers demanding their pound of flesh. What they are doing to Greece and Portugal constitutes mass-murder on a vast scale. And they need to be held to account for it. He basically believes that cuts in health spending in Portugal and Greece are resulting in people dying citing a Guardian article. 

Let's assume that there is evidence of this, it is curious who he blames. 

 Does he blame the politicians in those countries, who spent other people's money and borrowed more money than they could pay back to buy goods, services, infrastructure, welfare for those people? No. They would be socialists. They meant well. Even the Greek politicians who deliberately lied about the public finances. 

Does he blame the voters who elected the politicians who spent the borrowed money that couldn't be paid back, and who ostensibly benefited from the excess spending? No. Suddenly the commitment to democracy and politicians acting on behalf of the people, even in countries with proportional voting systems, evaporates.

 Does he blame the citizens the countries whose taxes are funding the bailout of these countries? The taxpayers of Germany, the UK, France, the Netherlands etc who have helpd finance this? No. They are irrelevant to him. 

 No he blames his bogeymen, his scapegoat, his hated minority, the "foreign bankers". The same "foreign bankers" who wrote off 79% of the debt owed by Greece to them (quite rightly so). Except of course, he's avoiding the point. 

 You see the austerity in Greece and Portugal is NOT about paying off bankers. It's about stopping those countries from continuing to borrow more. They are both still in deficit, the amount the government spends in both countries is more than they receive in tax. If his philosophy was applied, presumably taxes would shoot up in both countries (and they have to some extent). 

However, no. 

This little man in Palmerston North is venting his ranting spleen against foreign (note how xenophobia is good if you have Marxist motives) bankers.  He wants them to pay, and I doubt he means not using force.  See it's all very well caring about civil liberties, until you want to extract a pound of flesh yourself from your favourite scapegoat. 

Bankers should just lend Greece and Portugal as much as those governments want, and not expect any of it back right? Indeed they should be charities, right Malcolm?  Should the countries abandon the Euro and print their worthless new currencies endlessly until they can pay for it all? 

Let me be crystal clear, so that even an Idiot can understand. 

Austerity means living within your means.

Both Greece and Portugal are unable to borrow internationally to fund overspending, so they are getting taxpayers' money from other Eurozone countries, and IMF member states, to cover their current overspending. Money taken from people and businesses. The austerity measures they are required to undertake to meet this are to bring their budgets into balance. Something he once appreciated, when it was a government he preferred spending a surplus. 

If people in Greece and Portugal die because of reduced health care, it is because they can't afford it.  They are unwilling to pay directly or pay additional taxes to pay for it.  They are also unwilling to vote for politicians who will force some to pay additional taxes to pay for it.

Don't expect your health care to be paid for by money borrowed by politicians from people who don't believe you're willing to pay it off - because they have good reason not to lend it to those politicians who have now forced them to write off a good chunk of past bad loans.

However, Malcolm can help those people.  He could donate money from his own pocket to save the infants of Greece and Portugal.  He could arrange others to donate as well.  He could actually do some good.  However, if he has any charitable aspirations or interests, he really ought to say, because by and large his key interest appears to be in forcing others to pay more for state bureaucrats to help people - which isn't exactly philanthropic in deed or spirit.

22 March 2012

UK budget, a lost opportunity

So it was George Osborne's third budget, and a lot was done about tax.  He could have just cut taxes, but instead he cut some, increased others and pandered to the strong red tinge of envy about anyone who earns higher incomes.

What did he do?  What should he have done?

- Cut the top tax rate from 50% to 45% (this applies to earnings over £150,000).  A pathetic response to a tax rate imposed for political reasons weeks before the 2010 election by Gordon Brown.  Almost all of the noise from the left will be about this as they feed the vile hatred of success, the envy of wealth and the lie that this is all about benefiting "the people who caused the crisis".  Osborne should have scrapped the top rate altogether, that would have indicated Britain is open for business.  Still the evidence from Revenue and Customs is that the 50% rate only earned a third of what was forecast, as high income taxpayers rearranged their affairs to minimise their tax liability - or what I call, property protection.

- Age related allowances for pensioners are frozen, effectively eroding them with inflation.  A minor reflection of the soaring cost of the PONZI unfunded state pension.  A start, but still a stark failure to remind people that government funded pensions will have be less and later as the years go by.

- Income tax free allowance increased to £9,205 in April 2013 (the amount anyone can earn without paying income tax) with this applying to anyone earning under £100,000.   It remains a stingy trend to increase this allowance, but lower the higher tax thresholds to make it so people earning higher incomes don't benefit.  This allowance should be at least £15,000 so that those on the minimum wage and slightly above are untaxed.  

- Corporation tax immediately cut from 25% to 24%, dropping to 22% by 2014.   Osborne should have bitten the bullet and dropped it to 20% immediately and aimed to reduce it to 10% by 2015.  That would have made the UK the most competitive corporate tax in the EU, and been a real shot in the arm for business.

- A "General Tax Avoidance Rule" is to be introduced, to make protection of your income and property from tax even more of an offence.  This is what is morally repugnant, not tax avoidance, which is morally just - it is an act of self defence.

- Fuel and alcohol duty ARE going up, by the rate of inflation, just the same as Labour had decided before, but tobacco duty is to soar by 5% above inflation immediately.  There was no need for this from the point of view of the costs imposed by consumers of those products.

- New gambling taxes, just another grab on people's fun.

- Stamp duty - a tax on purchases of property - will be 15% on residential properties worth more than £2 million transacted through a company, designed to plug a loophole in this tax. For those not transacted through a company it will be 7%.  A better move would have been to abolish this ridiculous tax on property transactions.  However, this was about hitting the rich.

-  Child benefit will be reduced for households where anyone earns more than £50,000 down to zero for those earning over £60,000.  All of them are in the second top tax bracket, so this is a welcome cut in middle/upper income welfare.  However, he should have been far tougher.  Simply announce no new child benefit for children born in one year's time.  This would have saved a fortune, and enabled further tax cuts.

- Some more money for railway electrification, tax credits for certain creative industries, money to subsidise broadband networks, planning regulations to be simplified with a presumption "in favour of sustainable development" whatever that means, and a limp wristed waiving of Sunday trading restrictions for eight weeks over the Olympics.   In short, some pork, some relief for property owners and "testing" allowing businesses to trade when they wish.

- Despite all of this and claims of savage cuts, the UK government is still seriously overspending. Total borrowing will come in at £120bn next year and £98bn in 2013/14, followed by £75bn, £52bn and finally £21bn in 2016/17.  Austerity?  Where.

Uninspiring, a few steps in the right direction, a few in the wrong direction, little evidence of serious new spending cuts, and money thrown at activities that would be best left to the private sector.

Yes it could be worse. It could have been Gordon Brown, but it deserved to be braver.  Abolishing the 50% tax rate outright would have been braver, not increasing ANY taxes would have been braver.  It was a missed opportunity.

There are promising steps on the horizon, like abolishing national wage settlements for the public sector, like reforming highways funding and ownership and the reform of planning laws, but for now, it is business as usual with some tinkering.  No reason to get excited.  However, for most people it is a tax cut, which is not something to be sniffed at - until you lose it all from increases in fuel, alcohol and tobacco duty.