So I own a bank, well..

My taxes get to pay for the losses and guarantee the operation of the bank, but I don't get a dividend if it makes a profit (there is no hope in hell that Labour would cut the top tax rate). Worse of all, if it keeps losing money, I keep having to pay for it, but I can't sell my "shares" in it.

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I don't even use it.

Thanks to Alastair Darling.

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Should Northern Rock been allowed to fail? Well, sad to say for all of those with accounts in the bank - yes. Your investment in Northern Rock is not a risk I should have to bear. I don't expect you to bear my risk in spreading my money among four different banks, people with shares don't expect everyone else to cover the loss of any capital value.

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Yes the government guarantee of deposits was the start, the start of the state bearing the losses, the state being the bank of last resort. Now the nationalisation is more like being put in administration, which is pretty much what would have happened anyway - although it may have been a little more brutal for depositors.

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It might not all be bad, according to the Daily Telegraph the UK government may yet make money out of it but...

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"Now that the company is part of the public sector this profit, which will come from selling off its mortgage book, could help improve the public finances, reducing the need for future tax increases. However, in order for the bank to turn in a profit, it will have to be managed well. This means jobs will have to be cut, and the homes of those Rock customers who can't keep up their repayments will have to be repossessed. To the horror of Whitehall, it is now faced with the prospect of doing all this dirty work itself. Taxpayers must hope it has the stomach to do so."

Indeed, I can only hope that it does. A nationalised bank that acts commercially, hmmm. According to Shadow Chancellor George Osborne addressing the Chancellor of the Exchequer:

"You are introducing unprecedented, sweeping, draconian powers that will let you nationalise any other bank or deposit-taking institution in Britain by ministerial fiat. That is something not even Michael Foot dreamt of and it will create further uncertainly in financial markets and do further damage to Britain's reputation"

That in itself is disturbing, and perhaps the only thing saving the reputation is the impression that Gordon Brown himself is really behind this, and he is no Michael Foot. I can only hope the damned thing can be privatised and the relevant legislation repealed.

Islamism: The first enemy in the battle of values

As I said in a post in January, I am posting a series on what I see as being the great battles of values in modern civilisation. This post discusses what I see as being the nearest immediate threat to Western liberal democracy and individual freedoms. Islamism, also known as Islamo-fascism.

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Islamism is the most pernicious example today of integrating religion, which is a personal choice, with the state and law. It is pernicious not only because it reflects a vision of religion, the state and individuals that was apparent in the dark ages, but because those advancing it are waging war. They are willing to kill to advance their bleak vision of the world.
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Islamism places the worship of a faith at the centre of laws that govern behaviour between individuals, not reason. That in itself is a cause for concern, as it is for those of other faiths, Hinduism, Shintoism, Buddhism and Christianity all have plenty of followers ready to integrate church and state. However, whilst all that do so take a malignant view of individual freedom and reason, Islamism is a particular concern for several reasons:
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1. Islamists have deliberately waged war against secularism and against Western civilisation. There is a long litany of attacks. It is deceptive to dismiss these as reflecting a desire to resolve the Palestianian question, or to keep US troops out of Islamic holy lands. Those who advocate Islamist terror have a far more malignant agenda, of a global caliphate. Islamists are a clear and immediate danger, that can be seen not only in the Middle East, but also in the USA, UK, France, Spain, Indonesia, Africa and elsewhere.
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2. Islamists worship death and glorify sacrifice, and often actively target civilians regardless of race, belief, age or sex. Their philosophy is the complete antithesis of life, the pursuit of happiness, individual freedom and diversity. Some seek to ban music, glorify explicit violence and horror, and revel in those who die for their religion.

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3. Islamists are profoundly sexist and racist. Their anti-semitism rivals that of the Nazis, and goes beyond concern for the Palestinian question. Their sexism is renowned, from seeking to ban education of girls, to treating women as subservient and almost evil seductive creatures that divert men from their duties of running the world. They insult both men and women in their sexist generalisations that treat sex and human relations as a joyless necessity that needs planning by old judgmental men, not a celebration of people with common values, shared experiences and affection/love for each other. Islamist states treat women as second class at best, and virtually slaves at worst.

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4. Islamists are totalitarian in their attitudes. They are intolerant to the point of calling for murder of those they disagree with and who offend them. Their solutions to being insulted, or those disagreeing with them is to use threats of force or actual force. Their suppression of debate cripples those under their rule and cripples humanity. This is an attitude of brutal savages. By contrast, they do not think twice about adopting the most vile terminology to describe those who they are bigoted against.

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Islamists are well funded, highly motivated, have states that actively back or shelter them, and have proven their willingness to kill for their political objectives.
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One simply has to look at those states which exemplify Islamism to see how governments treat their citizens, or indeed how citizens are permitted by the state to treat each other. The Taliban banned girls over the age of eight from getting an education and would execute any (and their teachers) who sought it. It banned music, women playing sports, flying kites, stuffed animals, photographs of people or animals. Think how much of a joyless bully you have to be to ban all that.

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Let me make it perfectly clear, there is a difference between being Muslim per se, and being an Islamist. Being a Muslim is a private personal choice (or should be), and practicing the religion in one’s private affairs, subject to the non-initiation of force principle, is not my concern. It is the application of Islam upon the state, advocacy of a singularity between the state and Islam, and the particularly violent means that Islamists use to advocate their view. The first battle is against violent Islamists, but Islamism itself is at the root of this. Only when Islam is considered a religion, and not a blueprint for the role of the state will there be the tolerance and acceptance that so many Muslims seek. Humanity has gone a long way to have secular tolerant liberal democracies where people can feel free to choose religion or no religion, without violence or threat of violence or discrimination by the state. Islamists seek to destroy this. For the sake of civilisation, peace, human rights and the future of humanity, Islamism must be fought until it is no longer a violent threat, and then must be debated vigorously until this philosophy of death, misery and irrationality resides in the past.

Kosovo independent: an all too easy solution?

The Serbian province of Kosovo has declared independence, a move that for Kosovo Albanians is "freedom", but for Kosovo Serbs is not welcomed. The US and the UK have declared they will recognise an independent Kosovo, but is the solution to what is essentially conflict based on national identity division? The EU is putting a lot into it, with 2000 troops being sent in, but more importantly Kosovo laws will be subservient to EU supervision. Yes, you read that right. Kosovo will essentially be an EU protectorate for the indefinite future. The EU chief representative will have veto powers over Kosovo government decisions and the right to fire officials obstructing relevant UN Security Council resolutions.

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So this is quite something different from what has happened with all other declarations of independence, it is more a declaration that power has moved to Brussels, for now.

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Kosovo’s independence is different from that of the former Yugoslav republics of Slovenia, Croatia, Bosnia, Macedonia and Montenegro, not least because it never was one. It follows many years of repression of the Kosovo Albanian majority, an oppression that was more severe after the erosion of communist rule, when the cancer of nationalism replaced Titoist Marxism as the blight on freedom and individual rights in Yugoslavia.

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It is partially dismembering Serbia, partly to punish Serbia for its long racist fascist politics that succeeded Titoism, but more importantly to protect the Kosovo Albanians. Instead of being a minority in Serbia, they will be the majority in Kosovo.
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This is not the place to go into the Serbian/Albanian conflict over Kosovo, lest to say that the Serb nationalist bullies like Slobodan Milosevic who pined for Serbia’s “golden age” of being defeated in Kosovo since 1389 (yes only nationalist Serbs understand). The vile bigotry of Milosevic’s nationalism saw the Albanian language banned and cooked up fears that Albanians were harassing Serbs, which clearly would justify Serbs harassing Albanians. The conflict over Kosovo was not as bloody as Bosnia-Hercegovina, but it did involve slaughter. Albanians and Serbs in Kosovo by and large despise each other in a mutual lack of trust. The Albanians remember the repression and fascism of Milosevic and the fascist Serbian authorities, the Serbs fear the Albanian majority’s own hatred towards them, and see Kosovo as being part of Serbia, which until today it has been.
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So why is Kosovo a big deal? Shouldn’t it become independent because the majority want it?
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Unlike the US and the EU I don’t believe the answer is yes.
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The philosophy that says Kosovo Albanians should be independent could also be applied to Serbs in Bosnia, Armenians in Nagorno-Karabakh, Russians in Abhazia, Basques in Spain etc. It is the notion that ethnic identity should determine statehood. The problem with this idea of course is that the psychological state of ethnic identity (which, by and large is all ethnicity it. It is in the mind), isn’t shared by those for whom boundaries are drawn around.

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More importantly, this is exactly what has been the problem in what was Yugoslavia – the notion that people shouldn’t live together with different ethnic identities. The scourge is NOT Serbs, it is the scourge of nationalism. That is what the EU, US and the UN should be confronting. It is not confronted by bowing to Kosovo Albanian nationalism.

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The butchers who rounded up Bosnian Muslims in Srebrenica, marched them out of town and shot them – the butchers who went from house to house in the Krajina and rounded up Serbs to remove them from “Croatian land”. All expounded the philosophy that people could not be treated as individuals, but be treated as part of a group. Either you were one of us or a member of the "other". It's what collectivists do, you hear the same philosophy from them all.

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In Kosovo it has been the same, and now it will be Kosovan Serbs who will be the other, in a small rump state with desperate economic prospects.
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Carving up Serbia sends a message that countries should exist according to the philosophy that Serb nationalists have been fighting for since the early 1990s, except this time the Serbs lost and the Albanians won. The Serbs wont forget, sadly.

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You see Serbia offered full autonomy, and could have also had a peacekeeping presence so that Kosovo autonomy could have worked. Serbia could have had a chance to experience tolerance, individualism and freedom first hand, even if it involved a continued heavy peacekeeping presence in the province. However, now it has simply been punished, and the EU and the US will pay for Kosovo to be rebuilt as a rump state, and Serbs in Kosovo will live in fear.
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Russia has said it will take action if Kosovo becomes independent. Hardly surprising, as it has many scores it can settle, in Georgia and Moldova for starters. Will the West intervene if Russia attacks Georgia to apply the same rule to its ethnic majority areas? Would it be a surprise if Putin decides he can flex his muscles on his borders without provoking a serious response?

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No. Because the philosophy of nationalism has created rivers of blood for generations.

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I note Helen Clark has stated a "neither confirm nor deny" approach to recognising Kosovo's independence, although Australia will recognise it. I suspect this is simply part of the MFAT philosophy that rejects "recognition" of states formally, but it is the wrong approach. Clark claims "It's never been the New Zealand Government's position to recognise in such circumstances." Um East Timor?

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Either there is a principled stance against independence or in favour of it. My call is that, sadly, independence has to be formally recognised. Either New Zealand will treat Kosovo as part of Serbia or not, and to not recognise what will be fact (no rule from Serbia), is of little effect.

Tariana Turia's tribalist bigotry

According to the NZ Herald Maori Party MP Tariana Turia thinks all Maori deserve an apology. What for Tariana? What did I ever do to you?
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She, no doubt like many, thinks that Rudd's apology is actually about everyone individually apologising to all Aborigines, rather than what it SHOULD be, which is the Australian federal government apologising to specific victims of its own policies.

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Sorry Tariana, there is no collective guilt by people against another people. All Maori are not victims. If Maori want to sue the state for any wrongdoing by it against them individually then they should feel free to do so. However, I think that many New Zealanders could claim the same. The ones let down by socialised medicine, statist education, the non-inheritable superannuation scheme, the miserly socialist ACC scheme, the limp wristed law and order system, the mixed performance Police force, NaZis on Air jackbooted bullying of the past, criminalisation of people committing victimless crimes etc etc. The government could apologise for not delivering what was promised with the money collected by force from the public, and for its coercion against people's lives.

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That I'd like to see.

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Your ancestry doesn't make you special. You should be judged by what you do and your character, and both are sadly lacking. It has nothing to do with your identified Maori ancestry - that is irrelevant. It is that you're a mystic worshipping socialist nationalist statist, and you and your party perpetuate division, racial judgment and victimhood.

Obama's economic backwardness

So Obama has got an economic policy. Well I'm not impressed, it is a leftwing programme. It will hurt New Zealand, and will hurt the economic growth of the USA. It is beholden to protectionism of industry and unions, and indicates that when Obama says the word change he really means to "turn the clock back". Obama is about going to the tired old solutions of the 1960s and 1970s of spending money on pet projects, instead of setting people free to innovate with their own money.

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Here are some of his policies:

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Fair trade: Yes a favourite of environmentalists, the Green Party and others. Fair trade is a euphemism for tariffs, quotas and bans of imports, because after all who decides what is "fair"? He wants to spread "good labor and environmental standards", which presumably means pricing businesses out of developing countries, but also doesn't mean spreading private property rights which COULD address environmental standards. Perhaps he means paying more for commodities than the market price, increasing their overproduction. All that is clear is that he doesn't believe that people should be able to exchange goods and services freely.

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Subsidise inefficient industries: He wants to prop up the US automotive industry to make fuel efficient vehicles in the USA, he wants to "invest in America's highly-skilled manufacturing workforce and manufacturing centers", invest with money taken from businesses and individuals through taxes. How does he know best how to "invest" money taken from others? Back to the tired old policies of the 1970s.

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Create jobs through destroying other ones: He goes on about creating jobs, mainly by using money taken from businesses and individuals through taxes that THEY could have created jobs through their own investment and consumption. It is sleight of hand and old fashioned childlike socialist economics. Policies like "create a federal Renewable Portfolio Standard (RPS) that will require 25 percent of American electricity be derived from renewable sources by 2025" could cost the USA a fortune, diverting investment on cheaper energy into more expensive options, reducing the competitiveness of businesses either through utility fees or taxes. It is easy to point to jobs socialists create, but harder to point to the many they destroy by eating away at spending of others. He will "will invest in rural small businesses" I only wish he would do it with his own money, why take it from others?

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Price more unskilled jobs out of the market: He does this by wanting to "raise the minimum wage, index it to inflation and increase the Earned Income Tax Credit to make sure that full-time workers earn a living wage that allows them to raise their families and pay for basic needs". Tiring indeed, and he wonders why unskilled manufacturing jobs move south.

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On top of that he wants to regulate and subsidise housing lending, and heavily regulate credit cards and the like, because he thinks Americans are too stupid to look after themselves.

Do you want "real change" which is about going back to big government knows best?