Great lecture entitled A Recipe for the Next Great Depression. Available here.

I found this video last week, and couldn’t believe the whole-hearted endorsement of collectivization.

“China’s wealthiest village . . . just five years ago the combined assets of the village were valued at 1.7 billion dollars. Now they total over 6 billion. The village offers a microcosm of China’s success story . . . The village cooperative already owns two helicopters . . . its investing in a fleet of twenty planes . . . the villagers mainly attribute their riches to one man, Wu Run Bau, the former village chief. He kept property under collective ownership and made each villager a stake holder in Huaxi’s fortunes.”

Notice that much of villages wealth is attributed to property values and government spending.

Then I saw this video which more accurately identifies cause and effect in a collectivized economy, and the fraud inherent in GDP figures:

(Source: Mankiw, Macroeconomics, 5th ed. pp. 105-106)

I found this chart in the wonder Mises Institute lecture, Currency Failures from Argentina to Zimbabwe: A Brief History of Inflation:

The United Nations is considering whether to set up an inter-governmental working group to harmonise global efforts by policy makers to regulate the internet.

Establishment of such a group has the backing of several countries, spearheaded by Brazil.

At a meeting in New York on Wednesday, representatives from Brazil called for an international body made up of Government representatives that would attempt to create global standards for policing the internet – specifically in reaction to challenges such as WikiLeaks. (Read more from itnews.com.au)

Ten years ago, the Lisbon neighborhood was a hellhole, a “drug supermarket” where some 5,000 users lined up every day to buy heroin and sneaked into a hillside honeycomb of derelict housing to shoot up. In dark, stinking corners, addicts – some with maggots squirming under track marks – staggered between the occasional corpse, scavenging used, bloody needles.

At that time, Portugal, like the junkies of Casal Ventoso, had hit rock bottom: An estimated 100,000 people – an astonishing 1 percent of the population – were addicted to illegal drugs. So, like anyone with little to lose, the Portuguese took a risky leap: They decriminalized the use of all drugs in a groundbreaking law in 2000.

. . . .

Drugs in Portugal are still illegal. But here’s what Portugal did: It changed the law so that users are sent to counseling and sometimes treatment instead of criminal courts and prison. The switch from drugs as a criminal issue to a public health one was aimed at preventing users from going underground.

Other European countries treat drugs as a public health problem, too, but Portugal stands out as the only one that has written that approach into law. The result: More people tried drugs, but fewer ended up addicted.

Here’s what happened between 2000 and 2008:

- There were small increases in illicit drug use among adults, but decreases for adolescents and problem users, such as drug addicts and prisoners.

- Drug-related court cases dropped 66 percent.

- Drug-related HIV cases dropped 75 percent. In 2002, 49 percent of people with AIDS were addicts; by 2008 that number fell to 28 percent.

- The number of regular users held steady at less than 3 percent of the population for marijuana and less than 0.3 percent for heroin and cocaine – figures which show decriminalization brought no surge in drug use.

- The number of people treated for drug addiction rose 20 percent from 2001 to 2008.

Portuguese Prime Minister Jose Socrates, one of the chief architects of Portugal’s new drug strategy, says he was inspired partly by his own experience of helping his brother beat addiction.

“It was a very hard change to make at the time because the drug issue involves lots of prejudices,” he said. “You just need to rid yourselves of prejudice and take an intelligent approach.”

Officials have not yet worked out the cost of the program, but they expect no increase in spending, since most of the money was diverted from the justice system to the public health service. (Read more from washingtonpost.com)

Last fall, as he had done hundreds of times, Iranian-American businessman Farid Seif passed through security at a Houston airport and boarded an international flight.

He didn’t realize he had forgotten to remove the loaded snub nose “baby” Glock pistol from his computer bag.

. . . .

Experts tell ABC News that every year since the September 11 terror attacks, federal agencies have conducted random, covert “red team tests,” where undercover agents try to see just how much they can get past security checks at major U.S. airports. And while the Department of Homeland Security closely guards the results as classified, those that have leaked in media reports have been shocking.

. . . .

According to one report, undercover TSA agents testing security at a Newark airport terminal on one day in 2006 found that TSA screeners failed to detect concealed bombs and guns 20 out of 22 times. A 2007 government audit leaked to USA Today revealed that undercover agents were successful slipping simulated explosives and bomb parts through Los Angeles’s LAX airport in 50 out of 70 attempts, and at Chicago’s O’Hare airport agents made 75 attempts and succeeded in getting through undetected 45 times. (Read more from abcnews.go.com)

(From Cargo Collective)

WASHINGTON (Reuters) – A test of the sole U.S. defense against long-range ballistic missiles failed on Wednesday, the second failure in a row involving the system managed by Boeing Co, the Defense Department said.

“The Missile Defense Agency was unable to achieve a planned intercept of a ballistic missile target during a test over the Pacific Ocean today,” Richard Lehner, an agency spokesman, said in an e-mailed statement. No preliminary explanation of the failure was provided. (Read more from news.yahoo.com)

I am astonished by the number of my old computer science friends working on various military-related projects. They produce no goods and services society voluntarily consumes. They live on money taken away from people by force and threat of force (i.e. taxes). Failure is generally rewarded with bigger budgets. And they starve the private, voluntary sector of the economy of scientific and technological ability.

See also:

Terence Kealey, Science is a Private Good – Or: Why Government Science is Wasteful

PFS 2010 – Terence Kealey, Science is a Private Good – Or: Why Government Science is Wasteful from Sean Gabb on Vimeo.

If you have a little time, I highly recommend the documentary Power of Nightmares about the constant government propaganda exaggerating threats against us.

Dirty revenge for embarrassing the political elite. We are the U.S.S.A.

Both The Guardian and the Associated Press are reporting that the U.N.’s top official in charge of torture is now formally investigating the conditions under which the U.S. is detaining accused WikiLeaks leaker Bradley Manning. Last week, I described the inhumane terms of his detention at a Marine brig in Quantico, Virginia, including being held 23 out of 24 hours a day in solitary confinement for seven straight months and counting as well as other punitive measures (such as strict prohibitions on any exercise inside his cell and the petty denial of pillows and sheets). Manning’s lawyer, former U.S. Army Major and Iraq War veteran David Coombs, thereafter publicly confirmed those facts, and then announced two days ago that efforts to persuade brig officials to allow more human conditions have failed, meaning it is likely that Manning will languish under these repressive restraints for many more months to come, at least.

In addition to confirming the facts I reported, Maj. Coombs added several disturbing new ones, including the paltry, isolated terms of Manning’s one-hour-a-day so-called “exercise” time (he’s “taken to an empty room and only allowed to walk,” “normally just walks figure eights in the room,” “if he indicates that he no long feels like walking, he is immediately returned to his cell”); the bizarre requirement that, despite not being on suicide watch, Manning respond to guards all day, every day, by saying “yes” every 5 minutes (even though guards cannot and “do not engage in conversation with” him); and various sleep-disruptive measures (he is barred from sleeping at any time from 5:00 am – 8:00 pm, and, during the night, “if the guards cannot see PFC Manning clearly, because he has a blanket over his head or is curled up towards the wall, they will wake him”). (Read more from salon.com)

mprisoning Liu was entirely unnecessary. If Liu’s politics were well-known, most people would not favour him for a prize, because he is a champion of war, not peace. He has endorsed the invasions of Iraq and Afghanistan, and he applauded the Vietnam and Korean wars retrospectively in a 2001 essay. All these conflicts have entailed massive violations of human rights. Yet in his article Lessons from the Cold War, Liu argues that “The free world led by the US fought almost all regimes that trampled on human rights … The major wars that the US became involved in are all ethically defensible.” During the 2004 US presidential election, Liu warmly praised George Bush for his war effort against Iraq and condemned Democratic party candidate John Kerry for not sufficiently supporting the US’s wars:

[T]he outstanding achievement made by Bush in anti-terrorism absolutely cannot be erased by Kerry’s slandering … However much risk must be endured in striking down Saddam Hussein, know that no action would lead to a greater risk. This has been proven by the second world war and September 11! No matter what, the war against Saddam Hussein is just! The decision by President Bush is right!

Liu has also one-sidedly praised Israel’s stance in the Middle East conflict. He places the blame for the Israel/Palestine conflict on Palestinians, who he regards as “often the provocateurs”. (Read more from guardian.co.uk)

Iceland has finally emerged from deep recession after allowing its currency to plunge and washing its hands of private bank debt, prompting an intense the debate over whether Ireland might suffer less damage if adopted the same strategy.

The Nordic economy grew at 1.2pc in the third quarter and looks poised to rebound next year. It ends a gruelling slump caused largely by the “New Viking” antics of Landsbanki, Glitnir and Kaupthing, the trio of lenders that brought down Iceland’s financial system in September 2008. (Read more from telegraph.co.uk)

Never heard of this guy, but he sounds like a hero:

Obituary