Tuesday, February 28, 2012

Colombia: The FARC's Carrot-and-Stick Strategy


Summary
LUIS ROBAYO/AFP/Getty Images
A Colombian protester with a sign reading, "Release Them Right Now!" in Cali, Valle del Cauca department, Colombia
The Revolutionary Armed Forces of Colombia (FARC) announced plans to release 10 hostages and cease the kidnapping of civilians for extortion. Simultaneously, the FARC remains engaged in its militant activities, devoting particular attention to energy extraction facilities. Claims that a major oil producer may halt operations due to security concerns highlights the ability of the FARC to pressure Colombia on key economic concerns while simultaneously offering peaceful concessions. The FARC hopes to exploit these needs to draw the government into negotiations, but the government will continue to be cautious about agreeing to peace talks.

Iran: New Military Exercises, But No New Threat




EBRAHIM NOROOZI/AFP/Getty Images
An Iranian submarine during the Velayat 90 naval exercises in the Strait of Hormuz on Jan. 3
The Iranian air force announced Feb. 20 that it had begun a four-day drill covering a zone of 190,000 square kilometers (73,300 square miles) in southern Iran. The exercises, dubbed "Sarollah," would be held to counter "all possible threats, especially to public, important and nuclear centers." The exercises follow the Feb. 19 start of the Islamic Revolutionary Guard Corps' (IRGC) own "Valfajr" ground forces exercises in the deserts of central Iran.

Geopolitical Calendar: Week of Feb. 27, 2012



Editor's Note: The following is an internal Stratfor document listing significant meetings and events planned for the next week. Stratfor analysts use this document to stay informed of the activities and travel of world leaders and to guide their areas of focus for the week.

The Myth of the End of Terrorism. By Scott Stewart



In this week's Geopolitical Weekly, George Friedman discussed the geopolitical cycles that change with each generation. Frequently, especially in recent years, those geopolitical cycles have intersected with changes in the way the tactic of terrorism is employed and in the actors employing it.
The Arab terrorism that began in the 1960s resulted from the Cold War and the Soviet decision to fund, train and otherwise encourage groups in the Middle East. The Soviet Union and its Middle Eastern proxies also sponsored Marxist terrorist groups in Europe and Latin America. They even backed the Japanese Red Army terrorist group. Places like South Yemen and Libya became havens where Marxist militants of many different nationalities gathered to learn terrorist tradecraft, often instructed by personnel from the Soviet KGB or the East German Stasi and from other militants.

The State of the World: Explaining U.S. Strategy

The State of the World: Explaining U.S. Strategy


By George Friedman
The fall of the Soviet Union ended the European epoch, the period in which European power dominated the world. It left the United States as the only global power, something for which it was culturally and institutionally unprepared. Since the end of World War II, the United States had defined its foreign policy in terms of its confrontation with the Soviet Union. Virtually everything it did around the world in some fashion related to this confrontation. The fall of the Soviet Union simultaneously freed the United States from a dangerous confrontation and eliminated the focus of its foreign policy.

Somali Piracy Update: The End of Monsoon Season

Somali Piracy Update: The End of Monsoon Season


Summary
U.S. Navy via Getty Images
A U.S. Navy warship rescues an Iranian fishing boat crew held by pirates Jan. 5
Monsoon season in the Indian Ocean is set to end sometime in late February. Somali pirates will take advantage of the calmer waters to enlarge their presence in the area. But several factors, including the use of armed contractors on commercial vessels, land-based security clampdowns and a more sophisticated international military response, may limit the pirates' success.
Analysis

Polarization and Sustained Violence in Mexico's Cartel War


Editor's Note: In this annual report on Mexico's drug cartels, we assess the most significant developments of 2011 and provide updated profiles of the country's powerful criminal cartels as well as a forecast for 2012. The report is a product of the coverage we maintain through our Mexico Security Memo, quarterly updates and other analyses we produce throughout the year.
As we noted in last year's annual cartel report, Mexico in 2010 bore witness to some 15,273 deaths in connection with the drug trade. The death toll for 2010 surpassed that of any previous year, and in doing so became the deadliest year ever in the country's fight against the cartels. But in the bloody chronology that is Mexico's cartel war, 2010's time at the top may have been short-lived. Despite the Mexican government's efforts to curb cartel-related violence, the death toll for 2011 may have exceeded what had been an unprecedented number.

Monday, February 27, 2012

The Mayan 'Decline' and Small Horses ... More Climate Change Propaganda?

– by Anthony Wile


Anthony Wile
Here we go again. Global warming is suddenly back in the news and I think I know why. But before I discuss that, let's take a look at the latest grim findings.
Once more we're reading about the terrible toll that global warming can take. In this case, we're being led to understand that it may have resulted in the demise of a great, ancient civilization and also the reduction in size of various noble mammals.

Mark Tier on Effective Investing, Where the World Is Headed and Why Financial Literacy Helps

 – with Anthony Wile


Mark Tier
The Daily Bell is pleased to present this interview with Mark Tier (left).
Introduction: Mark Tier is an Australian based in Hong Kong partly because “paying taxes is against my religion.” Founder and (until 1991) publisher of the investment newsletter World Money Analyst, he’s the author of Understanding Inflation, How To Get A Second Passport, The Nature of Market Cycles and The Winning Investment Habits of Warren Buffett & George SorosHis latest works are entirely outside the investment field: When God Speaks for Himself: The Words of God You’ll Never Hear in Church or Sunday School (written with George Forrai), and the just-published Trust Your Enemies, a political thriller, a story of power and corruption, love and betrayal − and moral redemption ... 

Why Freedom?

– by Tibor Machan


Dr. Tibor Machan
Freedom Revived
Few can deny that human beings care about liberty. There are, of course, different senses in which the term "liberty" is used. One sense of it means being without obstacles in life; another, to be able to develop fully with as little hindrance as can be achieved through collective action; or, again, to have the chance to obtain from others their surplus wealth and labor-power.

The Secret Media War of 2012

– by Ron Holland


Ron Holland
"See this room? Two-thirds of us laid off when Ron Paul is president." – A hot microphone picked up a reporter attacking Ron Paul recently before a Pentagon briefing began.
We are currently in the middle of the long war of the Internet Reformation, although the press will never mention this. Effectively, there has been an ongoing war between the non-controlled alternative media and the establishment media since the inception of LewRockwell.com in 1999. Since then many quality alternative media websites have been added to the competition while the elite media's credibility, reach and ability to manipulate debate and public opinion has been declining. The Internet Reformation is slowly winning and to date, this has been shown most clearly with the 2012 Ron Paul presidential campaign.
The GOP neocon puppet-masters are terrified, especially when Republican crowds at televised debates cheer Ron Paul's non-interventionist foreign policy remarks because this threatens their control over US foreign policy in what was formerly their secure home turf. Try as they might the media has not been able to destroy the Ron Paul Campaign.

Economy Squeezed As Debt Accelerates

– by Ron Paul


Dr. Ron Paul
Senator Jeff Sessions, ranking member of the Senate Budget Committee, has pointed out that our per capita government debt is already larger than Greece's. Per person, our government owes over $49,000 compared to $38,937 per Greek citizen. Our debt has just reached 101% of our Gross Domestic Product. Our creditors see this and have quietly slowed down or stopped their lending to us. As a result, the Federal Reserve has been outright monetizing debt as a way to patch things together and keep the economy on life support a little longer. There is rapidly shrinking demand for our debt, and confidence in the dollar is falling. This phenomenon is hidden only by the fact that confidence in all other fiat currencies is falling faster.

The Naked and the Dead: Weegee’s Lessons for Today


One of the 20th century’s best-known cultural entrepreneurs was a proud member of the 99 percent: Arthur Fellig, better known as Weegee.
Weegee’s work has been shown many times during his life and beyond, but Murder Is My Business, a new retrospective at the International Center of Photography (ICP) in New York, which holds his archive, displays a side of his life that has received too little notice: He was a brilliant strategist as well as a passionate observer of humanity, and his story offers an object lesson in dealing creatively with challenges.
Weegee (Arthur Fellig) began his career as a photographic outsider, or rather as a previously anonymous insider, a darkroom technician at photography studios and newspapers. Ever since leaving school at 14 and running away from home at 18, often living on the streets, Fellig had worked at a series of unskilled jobs before learning the already obsolescent art of tintype.

Economics: A Million Mutinies Now

 

There are now so many versions of ‘what's wrong with the economics profession’ that, with apologies to V.S. Naipaul, I could describe the state of economics as one of a million mutinies.
In August of 2008, Olivier Blanchard, a dean of establishment economics (now serving as chief economist at the International Monetary Fund), produced a working paper that surveyed the field of macroeconomics. He described what he saw as a stable consensus, concluding with the pronouncement, “The state of macro is good.”1

Argentina: Don’t lie to me – The Economist

Why we are removing a figure from our indicators page
Imagine a world without statistics. Governments would fumble in the dark, investors would waste money and electorates would struggle to hold their political leaders to account. This is why The Economist publishes more than 1,000 figures each week, on matters such as output, prices and jobs, from a host of countries. We cannot be sure that all these figures are trustworthy. Statistical offices vary in their technical sophistication and ability to resist political pressure. China’s numbers, for example, can be dodgy; Greece underreported its deficit, with disastrous consequences. But on the whole government statisticians arrive at their figures in good faith.

US: Greek ruins, American-style – by Jeffrey T. Kuhner

President Obama’s budget puts America on the path toward Greece. It is a reckless document, a stunning betrayal of U.S. economic interests. By its own numbers, Obamanomics leads to national bankruptcy. Unless there is a dramatic course correction, we will share the bleak fate of the Greeks: riots, chaos and internationally imposed austerity measures. We, too, are committing fiscal suicide.

US: If Economy’s Improving, Why Is Dependency Growing? – by Eric Singer


The government is at full throttle to present the economy as improving especially in light of the upcoming election. At the same time, there has been a stunning rise in dependency as most recently presented by the Heritage Foundation.

Lesson for Obama: Greece’s Bailout Socialism Penalizes Youth Most – Investors.com


Socialism: Rational or not, Greece’s street riots and emigration rates signify one thing: Socialism offers very little to the young. So why is the EU’s $172 billion bailout geared toward saving so much of the failed socialist system?
As Europe prepares to deliver a historic $172 billion bailout to Greece in a deal announced Monday, it’s pretty much a given that the austerity conditions required, in the absence of a true free market, will hit youth hardest. Athens will be trashed by another youth rampage, as many youths blame the pain on something other than Greece’s deeply rooted socialism.

Argentina: Omnipotencia – por Vicente Massot & Agustín Monteverde


Nada cambiará demasiado en los próximos meses en nuestro país. No hay razones de ninguna naturaleza como para imaginar siquiera la posibilidad de una modificación del rumbo político que incluye, por supuesto, otros aspectos de la realidad —el económico y el social— a los cuales siempre es necesario tener en cuenta.
Aun cuando a los defensores del modelo vigente esta aseveración les resulte enojosa y la reputen de antojadiza, lo cierto es que el éxito kirchnerista debe reconocerse tributario de la Diosa Soja y de la estabilidad brasileña. El precio de aquélla —que en algún momento amenazó bajar a menos de U$ 400 la tonelada— está de nuevo orillando los U$ 475, y en cuanto al gigante vecino su moneda luce fuerte.

Ecuador: Rafael Correa: El déspota ilustrado – por José Villaorduna

El predidente que mete el dedo como si cantase un bolero.
Su voz afranelada y modales palaciegos no deben conducir al engaño: a este doctor en economía no le tiembla la mano a la hora de ordenar el arresto de quienes lo critican o de pedir millonarias indemnizaciones en defensa de su honor. Y por qué no, también de la “seguridad económica” de su familia, como confesó en algún momento.

Venezuela: 69.8% de los venezolanos podría votar por Henrique Capriles Radonski para presidente – Globovisión


En un estudio de opinión realizado por el Instituto Delphos, 69.8% de los venezolanos considera que Henrique Capriles Radonski, candidato de la Unidad a las elecciones presidenciales, es una buena opción para votar los comicios presidenciales del 07 de octubre. Por su parte, 24.8% de las personas encuestadas aseguraron que no lo consideran como una opción para darle su voto.

Peru: “Artemio”, sin arte ni parte – por Eugenio D´Medina Lora

La caída de Artemio en Santa Rosa de Mishoyo, más allá de si fue resultado de las pesquisas de inteligencia o de la compra de voluntades por efecto de una recompensa, puede marcar un importante hito en la lucha ideológica contra Sendero Luminoso, y de paso, contra el MRTA y todos los grupos inspirados en el marxismo duro.

Colombia: Las ‘petraseadas’ de Petro – por Gina Parodi


Foto: Héctor Fabio Zamora / EL TIEMPO
Señor Alcalde: muchas de sus promesas de campaña son inviables y lo lógico es que se eche para atrás. Pero Bogotá no puede darse el lujo de seguir esperándolo. Empiece a gobernar. Bogotá Humana YA es para YA.
En los primeros 50 días de mandato del alcalde Petro ya podemos inferir cómo será el resto de su mandato porque, como bien lo dice la sabiduría popular, “en el desayuno se puede saber cómo será el almuerzo”. A continuación tenemos apenas un recuento de promesas del Alcalde en campaña y las ‘patraseadas’ o ‘petraseadas’, que empiezan a multiplicarse.

The Objectives of Currency Devaluation Mises Daily: by Ludwig von Mises

[Human Action (1949)]
In the boom period that ended in 1929, labor unions had succeeded in almost all countries in enforcing wage rates higher than those which the market, if manipulated only by migration barriers, would have determined. These wage rates already produced in many countries institutional unemployment of a considerable amount while credit expansion was still going on at an accelerated pace.
When finally the inescapable depression came and commodity prices began to drop, the labor unions, firmly supported by the governments, even by those disparaged as antilabor, clung stubbornly to their high-wages policy. They either flatly denied permission for any cut in nominal wage rates or conceded only insufficient cuts. The result was a tremendous increase in institutional unemployment. (On the other hand, those workers who retained their jobs improved their standard of living as their hourly real wages went up.)

The Irrelevance of Worker Need and Employer Greed in Determining Wages Mises Daily: by George Reisman

[This article is adapted from a section of Chapter 14, specifically pp. 613–18, of the author's Capitalism: A Treatise on Economics (Ottawa, Illinois: Jameson Books, 1996).]
The Marxian doctrine of the alleged arbitrary power of employers over wages appears plausible because there are two obvious facts that it relies on, facts which do not actually support it, but which appear to support it. These facts can be described as "worker need" and "employer greed." The average worker must work in order to live, and he must find work fairly quickly, because his savings cannot sustain him for long. And if necessary — if he had no alternative — he would be willing to work for as little as minimum physical subsistence. At the same time, self-interest makes employers, like any other buyers, prefer to pay less rather than more — to pay lower wages rather than higher wages. People put these two facts together and conclude that if employers were free, wages would be driven down by the force of the employers' self-interest — as though by a giant plunger pushing down in an empty cylinder — and that no resistance to the fall in wages would be encountered until the point of minimum subsistence was reached. At that point, it is held, workers would refuse to work because starvation without the strain of labor would be preferable to starvation with the strain of labor.

Obama's Traveling Tax-Break Show: The Ticker

Ticker: Jobs Master Lock Co. Has Restored

About Caroline Baum

Caroline Baum, a columnist for Bloomberg News since 1998, is the author of "Just What I Said: Bloomberg Economics Columnist Takes on Bonds, Banks, Budgets and Bubbles."
More about Caroline Baum
I've been listening to President Barack Obama's stump speech for a few weeks now. You know, the one where the president, having been fully briefed on Company Fill-in-the-Blank's business, lands at its Midwest plant and gets the crowd oohing and ahhing with promises of special tax breaks for domestic manufacturers.

Tax Cuts Should Create Growth, Not Junk Spending: Amity Shlaes

Payroll-tax cut equals growth. Consumer spending equals growth. Consumer spending is 70 percent of the economy. All growth is equal.
These are the axioms that motivated lawmakers to secure an extension of a payroll-tax cut this month. They felt like heroes for passing and signing a temporary break allowing citizens to skip Social Security payments.
President Barack Obama, too, was pleased. He trumpeted the payroll-tax news when he was visiting a Boeing Co. (BA) plant in Washington. An aim of that trip was to persuade American companies to do more business in America. In fact, by even going to Washington, Obama was highlighting what the administration believes is Boeing’s shame: Boeing does business offshore. But Obama took the time to go off message and praise Congress on the payroll-tax issue.

Weiss: Ayn Rand Beats Rick Santelli as First Teapartyer

Teapartyer: Ayn Rand
Illustration by Allison Krumwiede
 
 
The origins of the Tea Party are usually traced to Rick Santelli’s televised rant, which took place on Feb. 19, 2009 -- by coincidence exactly 83 years to the day after Ayn Rand first set foot on American soil. A few anti- tax, anti-government rallies preceded the Santelli tirade, but he and his immediate predecessors usually get the nod for originating the movement.

Can You Pass the ‘Beverly Hillbillies’ Test?: Virginia Postrel

The ‘Beverly Hillbillies’ Test
Illustration by O.O.P.S.

About Virginia Postrel

Virginia Postrel writes about commerce and culture, innovation, economics and public policy. Shes the author of "The Future and Its Enemies" and "The Substance of Style," and is writing a book on glamour.
More about Virginia Postrel
Charles Murray knows that people who read fat books of social criticism aren’t normal. They weren’t normal when the books had titles like “The Affluent Society,” “The Hidden Persuaders” and “The Organization Man,” and they aren’t normal today.

Sunday, February 26, 2012

Obamacare and Involuntary Servitude

– by Tibor Machan


Dr. Tibor Machan
However much one learns to squirm out of one's inconsistencies, logic usually bites one in the butt. Of course, strictly speaking logic is the formal system that's supposed to guide our reasoning process and on its own doesn't serve much more than that vital, indispensable task. That is why it is usually studied in symbolic form − As and Bs or ps and qs. When one complains that someone is being illogical, it means that he or she isn't following the guidelines of logic.

What If Democracy Is Bunk?

– by Andrew Napolitano


Andrew Napolitano
What if you are only allowed to vote because it doesn't make a difference? What if no matter how you vote, the elites get to have it their way? What if "one person, one vote" is just a fiction created by the government to induce your compliance? What if democracy is dangerous to personal freedom? What if democracy erodes the people's understanding of natural rights and the foundations of government, and instead turns elections into beauty contests?

500 Year Old Global 'Roll-Up' Founders?

– by Anthony Wile


Anthony Wile
And another one gone, and another one gone ... Another one bites the dust − Queen
Is it possible that the biggest roll-up in history is foundering?
What roll-up? Well ... roll-up, of course, is a money-industry term of art. It means that someone − an enterprising banker backed by big money − begins to buy up mom and pop shops to turn them into one large industry with "economies of scale" and an intrinsic value that is larger than its individual moving parts.
In this case, the roll-up that is taking place is of nation-states.
The bankroll comes from central banks.

Tea Party Patriots in 2012

Six Reasons Why the Wars We Wage Often Go Wrong. by Jim Powell

Drums are beating for a pre-emptive war to take out such nuclear facilities as Iran might have. But considerable caution is in order, because this is basically the same story Americans heard not so long ago, in 2003, to promote the pre-emptive war against Iraq. Although the United States “won” that war, intelligence about Iraq’s alleged weapons of mass destruction turned out to be wrong, the killing has gone on for nearly a decade, Sunni and Shiite factions appear to be going at each other again, and with Saddam Hussein gone, there’s a political/military vacuum that Iraq’s larger neighbor Iran is undoubtedly eager to exploit.
The calls for another pre-emptive war are particularly ironic considering that Iran used to be a friend of the United States. Our CIA helped the Shah secure his power in 1953, because he helped prevent Soviet penetration of the Mideast. But the Shah went on to establish a secular, authoritarian regime that made plenty of enemies. Ayatollah Khomeini became one of the Shah’s most formidable enemies as early as the 1960s. Because the U.S. backed the Shah, his enemies became our enemies, and they unexpectedly seized power in 1979. The U.S. affirmed its status as an enemy by backing Saddam Hussein after he attacked Iran the following year, in what became an eight-year blood bath.
Iranian leaders have done just about everything to convince the world that they are a bunch of dangerous fanatics, so the prospect of a nuclear Iran is scary. But by now we ought to have learned that a pre-emptive war can multiply the complications.

Wars Should Be Hard to Start. by Benjamin H. Friedman

The New York Times' report on Special Operation Command's proposal for more authority to deploy troops never quite says what new powers are sought. That vagueness, combined with the murky existing law on deploying special operations forces outside war zones, makes evaluating the proposal tough.
What is clear is that it is already too easy to deploy special operations forces on lethal missions. According to the Times, 12,000 special operators are deployed abroad and have operated in 70 nations in the last decade. Other reports claim that special operations forces have lately conducted operations in Syria, Nigeria, Iran, Algeria, and even Peru. In some cases, the special operators are reportedly collecting intelligence, a job various intelligence agencies already have. In others, the special operations forces are seemingly committing acts of war, which should require explicit congressional approval.

The USA And Europe: A Graphical Status Report. by Steve H. Hanke

In the wake of an extreme economic event, such as the Panic of 2008, everyone wants to know where we are going. To get a handle on that, we must first understand where we have been. The ability to interpret and understand economic data in terms of patterns, relationships, connections and structures that are likely to prevail in the future is critical if we are to make sound economic decisions today. Accurate topological patterns — in short, good diagrams — hold the keys to developing useful images of the future. To that end, a series of charts are presented for both the United States and Europe.
Aggregate demand in the U.S., as measured by nominal final sales to domestic purchasers (FSDP), has trended at an annual rate of 5.1% since 1987 (see the accompanying chart). There have been ups and downs, with three demand bubbles occurring during the years in which Alan Greenspan was Chairman of the Federal Reserve. The most dramatic collapse in aggregate demand occurred after the Panic of 2008. Although FSDP has rebounded sharply from its low in the second quarter of 2009, it is growing at a below trend rate, suggesting that the U.S. is in a growth recession.

We're Already Europe. by Michael D. Tanner

With seemingly every day bringing more bad news from Europe, many are beginning to ask how much longer the United States has before our welfare state follows the European model into bankruptcy. The bad news is: It may already have.
This year, the fourth straight year that we borrowed more than $1 trillion to support the U.S. government, our budget deficit will top $1.3 trillion, 8.7 percent of our GDP. If you think that sounds bad, it’s because it is. In fact, only two European countries, Greece and Ireland, have larger budget deficits as a percentage of GDP. Things are only slightly better when you look at the size of our national debt, which now exceeds $15.3 trillion, 102 percent of GDP. Just four European countries have larger national debts than we do — Greece and Ireland again, plus Portugal and Italy. That means the U.S. government is actually less fiscally responsible than countries like France, Belgium, or Spain.

The Government and the Currency

Mises Daily:  by

[Human Action (1949)]
Media of exchange and money are market phenomena. What makes a thing a medium of exchange or money is the conduct of parties to market transactions. An occasion for dealing with monetary problems appears to the authorities in the same way in which they concern themselves with all other objects exchanged, namely, when they are called upon to decide whether or not the failure of one of the parties to an act of exchange to comply with his contractual obligations justifies compulsion on the part of the government apparatus of violent oppression. If both parties discharge their mutual obligations instantly and synchronously, as a rule no conflicts arise which would induce one of the parties to apply to the judiciary. But if one or both parties' obligations are temporally deferred, it may happen that the courts are called to decide how the terms of the contract are to be complied with. If payment of a sum of money is involved, this implies the task of determining what meaning is to be attached to the monetary terms used in the contract.

The Transition to Monetary Freedom

Mises Daily:  by

Specific Reforms Required

The growth of the American government in the late 19th and 20th centuries is reflected in its increasing presence and finally monopolization of the monetary system. Any attempt at restoring monetary freedom must be part of a comprehensive plan to roll back government and once again confine it within the limits of the Constitution. That comprehensive plan may be divided into four sections: monetary legislation, the budget, taxation, and regulation. We shall begin with monetary reforms, and conclude with a word about international cooperation and agreement.

What You're Not Supposed to Know about War

Mises Daily:  by

Mises Academy: Tom DiLorenzo teaches The Political Economy of War
It is a testament to the power of government propaganda that several generations of self-described conservatives have held as their core belief that war and militarism are consistent with limited, constitutional government. These conservatives think they are "defending freedom" by supporting every military adventure that the state concocts. They are not.
Even just, defensive wars inevitably empower the state far beyond anything any strict constructionist would approve of. Prowar conservatives, in other words, are walking contradictions. They may pay lip service to limited constitutional government, but their prowar positions belie their rhetoric.

The Future of the Euro

Mises Daily:  by

The problems of the eurozone are ultimately malinvestments. In Greece these days the struggle continues about who will ultimately foot the bill for these investments. During the early 2000s an expansionary monetary policy lowered interest rates artificially. Entrepreneurs financed investment projects that only looked profitable due to the low interest rates but were not sustained by real savings. Housing bubbles and consumption booms developed in the periphery.

The Fall of Communism in Virginia. by Murray N. Rothbard

Construction of James Fort (1954) by Sidney King
In fact, the Virginia colony was not doing very well in drawing off England's surplus poor. Besides transporting vagrants and criminals to Virginia, the London Company and the City of London agreed to transport poor children from London to Virginia. However, the poorest refused the proffered boon and the company moved to obtain warrants to force the children to migrate. It seemed, indeed, that the Virginia colony, failing also to return profits to the company investors, was becoming a failure on every count.
The survival of the Virginia colony hung, in fact, for years by a hair-breadth. The colonists were not accustomed to the labor required of a pioneer, and malaria decimated the settlers. Of the 104 colonists who reached Virginia in May 1607, only 30 were still alive by that fall, and a similar death rate prevailed among new arrivals for many years. As late as 1616, only 350 colonists remained of a grand total of over 1,600 immigrants.

Mitt Romney and the car industry

A Detroiter in his own mind

  by R.M. | WASHINGTON, DC
ONE of Mitt Romney's problems is that he lays it on too thick. He's not just a conservative, he's a "severe conservative". He feels your pain because he too is "unemployed". And he understands America's car industry because he's a Tigers-cheering motorhead, a true "son of Detroit".
That last assertion comes in an op-ed Mr Romney wrote for the Detroit News today. And it's not untrue, per se. The candidate was born in Detroit, though he grew up in Bloomfield Hills, one of America's wealthiest cities. He probably cheered for the Tigers as a kid, but his position has since evolved. And cars may really be "in my bones", as he claims, but he advocated letting Detroit go bankrupt in 2008.

The Santorum surge

The Republican nomination

Far from uniting behind Mitt Romney, the Republicans may bicker for months



Next stop, Michigan
LOOKING around at her fellow volunteers making phone calls to voters on behalf of Mitt Romney, Lee Weiss could not help but chuckle. “I’ve never seen such a clean-cut looking crowd,” she said, “and I’m clean-cut looking myself.” Indeed, even though many of them were not Mormon, as Mr Romney is, the people bustling through the temporarily leased factory space in Las Vegas all seemed to be clad in Mormon chic, an immaculate version of business-casual. They also seemed seized by the work ethic of Mormon missionaries, placing their calls relentlessly and with imperturbable good humour. This was the prodigious organisation of the Romney campaign on display.

The hands that prod, the wallets that feed

Campaign finance

Super PACs are changing the face of American politics. And it may be impossible to reverse their startling advance



IF HE could have done one thing to avert his plunge from front-runner for the Republican presidential nomination to also-ran, Newt Gingrich told the press on the eve of the Iowa caucuses in January, he would have “pulled the plug on Romney’s PAC”. As it was, the super PAC backing Mitt Romney, a rival candidate, spent millions on advertisements rubbishing Mr Gingrich, causing his support to wilt. This new breed of electioneering outfit, brought into being by a Supreme Court ruling in 2010, has already reshaped the presidential campaign—and its influence is only likely to grow.

The Greek crisis

The Greek crisis

The end of the marathon?

  by The Economist | BRUSSELS

“I HAVE learnt that marathon is indeed a Greek word.” Thus spoke Olli Rehn, the European monetary affairs commissioner, at the end of a 14-hour negotiating session that produced a second bailout package for Greece this morning.
This had been agreed in principle at a European summit in July last year. But political turmoil in Greece, hesitation in the euro zone—and an ever-worsening fiscal hole caused by an ever-deepening recessionmade the deal elusive for months.

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