Tuesday, February 28, 2012

How to Beat Obama The president is far more vulnerable than he thinks on foreign policy. BY KARL ROVE AND ED GILLESPIE

In an American election focused on a lousy economy and high unemployment, conventional wisdom holds that foreign policy is one of Barack Obama's few strong suits. But the president is strikingly vulnerable in this area. The Republican who leads the GOP ticket can attack him on what Obama mistakenly thinks is his major strength by translating the center-right critique of his foreign policy into campaign themes and action. Here's how to beat him.

Racing for the exits. By Gayle Tzemach Lemmon

More Afghans are seeking asylum now than at any time since war in Afghanistan began, figures from the United Nations show. Last year more than 30,000 Afghans sought asylum worldwide, topping 2010's numbers by 25 percent - and those are just the recorded cases.  More than 45,000 Afghans are said to have illegally escaped into Greece alone.  Australia is another popular destination for asylum, though it is harder to pull off due to distance.

Are we already at war with Iran?. Posted By Thomas E. Ricks

I suspect that we may be, in some way. Maybe a "shadow war." Someone clearly is killing Iranian nuclear scientists. Someone is messing with their centrifuges. They seem to be under cyberattack. Someone is helping ethnic Baluchi rebels down in the southeast. And of course there are the less hidden steps, such as sanctions.

Should Central America's drug violence be considered a global crisis?. By Joshua Keating

A new report from the U.N.'s International Narcotics Control Board contains more grim news about the drug violence in Central America:
In Central America, the escalating drug-related violence involving drug trafficking, transnational and local gangs and other criminal groups has reached alarming and unprecedented levels, significantly worsening security and making the subregion one of the most violent areas in the world. Crime and drug-related violence continue to be key issues of concern in Central American countries. Drug trafficking (including fighting between and within drug trafficking and criminal organizations operating out of Colombia and Mexico), youth-related violence and street gangs, along with the widespread availability of firearms, have contributed to increasingly high crime rates in the subregion. There are more than 900 maras (local gangs) active in Central America today, with over 70,000 members. According to a recent report by the World Bank, drug trafficking is both an important driver of homicide rates in Central America and the main single factor behind the rising levels of violence in the subregion. The countries of the so-called "Northern Triangle" (El Salvador, Guatemala and Honduras), together with Jamaica, now have the world's highest homicide rates.  

Ron Paul Speaks at Michigan State University (2/27/12)

Lee Kuan Yew interview part 3 / 6

Lee Kuan Yew interview part 2 / 6

Lee Kuan Yew Interview part 1 / 6

Hope in the Belly of the Beast

Washington’s underground antiwar resistance

Peter Beinart, former editor of The New Republic – a magazine instrumental in getting us into every major war we’ve ever been in – and a born-again peacenik when it comes to Iran, wonders aloud:
“How can it be, less than a decade after the U.S. invaded Iraq, that the Iran debate is breaking down along largely the same lines, and the people who were manifestly, painfully wrong about that war are driving the debate this time as well? Culturally, it’s a fascinating question—and too depressing for words.”
The real cause of Beinart’s malaise isn’t hard to identify. It’s democracy, American-style, i.e. rule by the screamers, that has him sick at heart. Under our system of elected oligarchy, whoever screams the loudest gets the biggest piece of the policy pie. Since most normal Americans don’t think about foreign policy issues except when it’s thrown in their faces – a major war breaks out, or if the blowback from one of our overseas extravaganzas takes them by surprise – the debate on this subject is dominated by a triad of special interest groups: 1) The military-industrial complex, otherwise known as war profiteers, 2) the neoconservatives, who believe in perpetual war as a matter of high principle, and 3) the well-organized and wealthy Israel lobby, which has as its mandate to keep the US engaged not only with Israel but with the global network of protectorates, alliances, and client states that make up the American Empire.

The Geopolitics of the United States, Part 2: American Identity and the Threats of Tomorrow



Editor’s Note: This installment on the United States, presented in two parts, is the 16th in a series of Stratfor monographs on the geopolitics of countries influential in world affairs.
We have already discussed in the first part of this analysis how the American geography dooms whoever controls the territory to being a global power, but there are a number of other outcomes that shape what that power will be like. The first and most critical is the impact of that geography on the American mindset.
 

The Geopolitics of the United States, Part 1: The Inevitable Empire


Editor's Note: Originally published Aug. 24, 2011, this installment on the United States, presented in two parts, is the 16th in a series of Stratfor monographs on the geopolitics of countries influential in world affairs. .
Like nearly all of the peoples of North and South America, most Americans are not originally from the territory that became the United States. They are a diverse collection of peoples primarily from a dozen different Western European states, mixed in with smaller groups from a hundred more. All of the New World entities struggled to carve a modern nation and state out of the American continents. Brazil is an excellent case of how that struggle can be a difficult one. The United States falls on the opposite end of the spectrum.
The American geography is an impressive one. The Greater Mississippi Basin together with the Intracoastal Waterway has more kilometers of navigable internal waterways than the rest of the world combined. The American Midwest is both overlaid by this waterway and is the world's largest contiguous piece of farmland. The U.S. Atlantic Coast possesses more major ports than the rest of the Western Hemisphere combined. Two vast oceans insulated the United States from Asian and European powers, deserts separate the United States from Mexico to the south, while lakes and forests separate the population centers in Canada from those in the United States. The United States has capital, food surpluses and physical insulation in excess of every other country in the world by an exceedingly large margin. So like the Turks, the Americans are not important because of who they are, but because of where they live.

Russia's Influence in Breakaway Territories in the Region


Summary
MIKHAIL MORDASOV/AFP/Getty Images
South Ossetian opposition leader and former presidential candidate Alla Dzhioyeva at a rally Dec. 1, 2011
Russia's preferred presidential candidates in South Ossetia and Transdniestria, separatist regions of Georgia and Moldova, respectively, have both lost in their territories' elections in recent months. These breakaway territories of the former Soviet Union need a foreign patron to guarantee their independence, and Russia needs them as leverage against its former states. Ultimately, the developments in South Ossetia and Transdniestria do not represent a threat to Russian influence in those regions or a larger decline in Russian power in other separatist territories.

Religion in public life

Water into whine

  by J.F. | ATLANTA
AMONG Rick Santorum's less charming attributes is his unerring ability to take griping, seething umbrage at even the slightest quibble with one of his policy positions. It is no accident that Mr Santorum's rise in the polls coincided with a wide gap of time between televised debates. Gifted as he is at retail politics—which in this particular primary mainly involves convincing small groups of like-minded people that he is as angry as they are—when challenged on any of his beliefs or past actions he instantly turns defensive, hostile and indignant. That does not play well.
Witness, for instance, his gross mischaracterisation of a speech given by John F. Kennedy, America's first (and so far only) Catholic president in 1960. Anti-Catholic sentiment was hardly unusual in the mid-20th century, and Kennedy's speech was perhaps too strong a mollification of such sentiments, but it was hardly controversial. He simply said that he believed in an America "where the separation of church and state is absolute; where no Catholic prelate would tell the president—should he be Catholic—how to act, and no Protestant minister would tell his parishioners for whom to vote; where no church or church school is granted any public funds or political preference; and where no man is denied public office merely because his religion differs from the president who might appoint him or the people who might elect him."

The fast and the furious

High-frequency trading

High-frequency trading seems scary, but what does the evidence show?



ON FEBRUARY 3RD 2010, at 1.26.28 pm, an automated trading system operated by a high-frequency trader (HFT) called Infinium Capital Management malfunctioned. Over the next three seconds it entered 6,767 individual orders to buy light sweet crude oil futures on the New York Mercantile Exchange (NYMEX), which is run by the Chicago Mercantile Exchange (CME). Enough of those orders were filled to send the market jolting upwards.

2030 vision

China and the World Bank

  J.M. | BEIJING

CHINA’S economic reforms have seen few breakthroughs in the past few years, or so the analysts tend to think. As the country prepares for big changes due in its top leadership after a Communist Party congress late this year, senior officials are becoming even less inclined than usual to take risks that might damage their careers. And with the economy still growing rapidly, despite the rest of the world’s problems, many of them see no urgent need for change.

Obama's Tax Proposals Would Make the Tax Code More Complicated, Less Fair. by Chris Edwards

President Obama has a new budget and a new Treasury study that promise “tax reform.” He says that he wants to abolish “dozens of tax loopholes,” but he also proposes a boatload of new special-interest tax breaks. The president says that he wants everyone to “play by the same rules.” His tax plan does the opposite.
Serious economists know that tax reform means lower marginal tax rates, simplification and a neutral tax base that doesn’t distort investment. Those were the goals of the bipartisan Tax Reform Act of 1986 and of many reform proposals since. However, that basic understanding of tax reform has eluded the Obama administration.

Fixing the Federal Reserve. by Richard W. Rahn

There is a growing consensus that the Federal Reserve is broken — because it is. The Fed was established to provide price stability and prevent periodic banking crises. It has accomplished neither.
The wholesale price level in the United States was at almost the same level when the Fed was established in 1913 as it was in 1793, 120 years earlier. Now it takes about 22 dollars to equal the 1913 dollar. There have been far more bank failures post-Fed than pre-Fed, and we seem to be in an almost permanent state of banking crises with “too big to fail.”

Blind Ambition Is Not a Presidential Job Qualification. by Gene Healy

Are you depressed about the shape of the 2012 presidential race? Maybe you're not depressed enough.
Nobody who wants the presidency too badly ought to be trusted with it. George Washington struck the right note in his first inaugural: "No event could have filled me with greater anxieties" than learning of his election.
Yet, as the powers of the presidency have grown far beyond what Washington could have imagined, the selection process has changed in ways that make it vanishingly unlikely that a latter-day Washington will seek the job.
Unfortunately, the modern presidential campaign calls forth characters with delusions of grandeur, a flair for dissembling, and a bottomless hunger for higher office.

The Romney-Paul Non-Aggression Pact

Trouble in Afghanistan

Tuesday Primary Preview

Under Siege in Homs

Clinton: Argument Can Be Made Assad a War Criminal

Memo to GOP: Beat Obama

Rick Perry had it right: "I think anyone on this stage is better than what we've got in place."

As Mitt Romney and Rick Santorum force Republican voters to make their choice in a hotly contested Michigan primary, once again we hear the great lament that we have looked at the candidates and found them all unworthy. Not everyone puts it as harshly as the headline over Conrad Black's piece in the National Post: "The Republicans Send in the Clowns." But it's a popular meme in the campaign coverage.
Like so many others who find the field wanting, Mr. Black laments that "the best Republican candidates—Jeb Bush, Mitch Daniels, Chris Christie, Marco Rubio, Paul Ryan and Haley Barbour—have sat it out." We'll never know, will we? Because the "best" Republicans opted not to put their records and statements up for national scrutiny, commit themselves to a grueling campaign trail, and subject themselves to TV debates moderated by media hosts who often seem to be playing for the other team.
So say this for the final four: They had the guts to put themselves out there—and stick with it. That's something a winner needs.
mcgurn0228AFP/Getty Images
Rick Perry had it right—any of these guys is better than the president. 

My Economic Freedom Agenda

We need bold tax reform, but Mitt Romney wants to tinker at the margins.

America's budget process is broken. Our economy and American families are struggling, and the country needs bold reforms and major restructuring, not tinkering at the margins. Obamanomics has left one in six Americans in poverty, and one in four children on food stamps. Millions seek jobs and others have given up.
Meanwhile, my opponent in the Republican primaries, Mitt Romney, had a last-minute conversion. Attempting to distract from his record of tax and fee increases as governor of Massachusetts, poor job creation, and aggressive pursuit of earmarks, he now says he wants to follow my lead and lower individual as well as corporate marginal tax rates.

Pettiness and Mud

By Thomas Sowell

The only good news for the Republicans coming out of the seemingly endless presidential candidate "debates" is that some Republican leaders are now belatedly thinking about how they can avoid a repetition of this debacle in future elections.
What could they possibly have been thinking about, in the first place, when they agreed to a format based on short sound bites for dealing with major complex issues, and with media journalists -- 90 percent of them Democrats -- picking the topics?

Kicking Down the World's Door. by Tom Engelhardt

Offshore Everywhere
How Drones, Special Operations Forces, and the U.S. Navy Plan to End National Sovereignty As We Know It
Make no mistake: we’re entering a new world of military planning.  Admittedly, the latest proposed Pentagon budget manages to preserve just about every costly toy-cum-boondoggle from the good old days when MiGs still roamed the skies, including an uncut nuclear arsenal.  Eternally over-budget items like the F-35 Joint Strike Fighter, cherished by their services and well-lobbied congressional representatives, aren’t leaving the scene any time soon, though delays or cuts in purchase orders are planned.  All this should reassure us that, despite the talk of massive cuts, the U.S. military will continue to be the profligate, inefficient, and remarkably ineffective institution we’ve come to know and squander our treasure on.

Uncle Sam, Global Gangster. by Tom Engelhardt and Andrew Bacevich

If all goes as planned, it will be the happiest of wartimes in the U.S.A. Only the best of news, the killing of the baddest of the evildoers, will ever filter back to our world.
After all, American war is heading for the "shadows" in a big way. As news articles have recently made clear, the tip of the Obama administration's global spear will increasingly be shaped from the ever-growing ranks of U.S. special operations forces. They are so secretive that they don't like their operatives to be named, so covert that they instruct their members, as Spencer Ackerman of Wired's Danger Room blog notes, "not to write down important information, lest it be vulnerable to disclosure under the Freedom of Information Act." By now, they are also a force that, in any meaningful sense, is unaccountable for its actions.

The Secret Media War of 2012. by 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 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 starting with LewRockwell.com back 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 this has been most clearly shown to date with the 2012 Ron Paul Campaign.
The GOP Neocon puppet masters are terrified especially when Republican crowds at televised debates cheer the Ron Paul 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.

The 'Fairness' Fraud. by Thomas Sowell

During a recent Fox News Channel debate about the Obama administration's tax policies, Democrat Bob Beckel raised the issue of "fairness."
He pointed out that a child born to a poor woman in the Bronx enters the world with far worse prospects than a child born to an affluent couple in Connecticut.
No one can deny that. The relevant question, however, is: How does allowing politicians to take more money in taxes from successful people, to squander in ways that will improve their own reelection prospects, make anything more "fair" for others?
Even if additional tax revenue all went to poor single mothers – which it will not – the multiple problems of children raised by poor single mothers would not be cured by throwing money at them. Indeed, the skyrocketing of unwed motherhood began when government welfare programs began throwing money at teenage girls who got pregnant.

Ron Paul on a Libertarian Presidency

Judge Napolitano Fired for This Broadcast from Freedom Watch.

Paul Craig Roberts : Will Iran Be Attacked ?

US military complex gets rich off of Afghanistan

Economics from the Ground Up


[Preface to Revised Edition of Man, Economy, and State with Power and Market, May 1993]
One of the unhappy casualties of World War I, it seems, was the old-fashioned treatise on economic "principles." Before World War I, the standard method, both of presenting and advancing economic thought, was to write a disquisition setting forth one's vision of the corpus of economic science. A work of this kind had many virtues wholly missing from the modern world. On the one hand, the intelligent layman, with little or no previous acquaintance with economics, could read it. On the other hand, the author did not limit himself, textbook-fashion, to choppy and oversimplified compilations of currently fashionable doctrine. For better or worse, he carved out of economic theory an architectonic — an edifice. Sometimes the edifice was an original and noble one, sometimes it was faulty; but at least there was an edifice, for beginners to see, for colleagues to adopt or criticize. Hyperrefinements of detail were generally omitted as impediments to viewing economic science as a whole, and they were consigned to the journals. The university student, too, learned his economics from the treatise on its "principles"; it was not assumed that special works were needed with chapter lengths fitting course requirements and devoid of original doctrine. These works, then, were read by students, intelligent laymen, and leading economists, all of whom profited from them.
Their spirit is best illustrated by a prefatory passage from one of the last of the species:

Libertarian Political Realism

  by

Philosopher Alexander Moseley offers a straightforward definition of political realism as "tak[ing] as its assumption that power is (or ought to be) the primary end of political action, whether in the domestic or international arena." Realism thus provides a prism through which to observe and to appraise political phenomena, dispensing with the illusions that have built up around the modern state. A consistently realistic view of the state does not impute to it godlike, extramundane characteristics or motivations, or detach it from all of the analyses that mark common discussions of incentives and "human nature." Political realism — as both an experiential or historical matter and a methodological one — must be at the center of a thoroughgoing libertarian project, informing our criticisms and proposed solutions. In a time when attitudes toward political power are marked by awe and adoration rather than a deliberate suspicion, a new, rehabilitated realism can furnish the fresh approach to social questions that people around the world are crying out for.

Will Currency Devaluation Fix the Eurozone?

  by

The NYU professor of economics Nouriel Roubini said in Davos, Switzerland, on January 25, 2012, that tight policies are making the recession in the eurozone worse. According to Roubini what Europe needs is less austerity and more growth. In particular, the NYU professor is concerned about the deep recession in the eurozone's peripheral countries: Spain, Portugal, Greece — all are on a strict regime of austerity. For instance, in Spain the yearly rate of growth of government outlays stood at minus 12.4 percent in November against minus 15.7 percent in the month before. In Portugal the yearly rate of growth stood at minus 3.6 percent in December against minus 2.5 percent in November. In Greece the yearly rate of growth fell to 2.9 percent in December from 6.2 percent in the prior month.

Fundamentals of Human Action


The Law of Returns

We have concluded that the value of each unit of any good is equal to its marginal utility at any point in time, and that this value is determined by the relation between the actor's scale of wants and the stock of goods available. We know that there are two types of goods: consumers' goods, which directly serve human wants, and producers' goods, which aid in the process of production eventually to produce consumers' goods. It is clear that the utility of a consumers' good is the end directly served. The utility of a producers' good is its contribution in producing consumers' goods. With value imputed backward from ends to consumers' goods through the various orders of producers' goods, the utility of any producers' good is its contribution to its product — the lower-stage producers' good or the consumers' good.

Responsibility and Private Property


In a recent conversation about global warming, my conversation partner, an old friend who is a professor of North American studies at a German university, opined that climatologists were being "irresponsible" if they contradicted the official line that climate change would spell certain disaster for the human race if capitalist industry were not swiftly reined in. This got me to thinking about the meaning of the word "responsibility" and how it is used in everyday discourse.

Being a teacher myself, my thoughts turned first to how it is used by teachers with reference to students. Most often, it is taken as merely a synonym for obedience: a student is "irresponsible" if he does not follow the teacher's directives. It seemed to me that this was also the sense in which my friend was using the word. In her view, the stakes for mankind were simply too high for the scientific community to brook any dissent whatsoever over climate change. The matter had been resolved by a plebiscite of government scientists. All "responsible" climatologists were in full agreement on it, and those who dared to challenge the orthodoxy were guilty of a breach of professional ethics.
Webster's defines responsibility as the quality or state of being "liable to be called to account as the primary cause, motive, or agent" of a particular action or circumstance. When equated with obedience or submission, the concept therefore becomes self-contradictory: one cannot be the primary cause, motive, or agent of an action that one was compelled by one's superiors to commit, as the exculpatory cliché of Nazi officers ("I was only following orders!") suggests.
Responsibility means that one is accountable for one's actions, but this is impossible if the authority for decision making does not lie with the actor himself. In its fullest sense, responsibility means the acceptance by the actor of the full burden of this accountability, an awareness that he cannot pass the buck, so to speak, but alone must bear the moral weight of the consequences of his actions. A society of responsible citizens, then, is not one in which the masses play follow the leader; rather, it is one in which, as a rule, the individual makes no attempt to place outside himself the locus of accountability for his own decisions, nor asserts the right to have others relieve him of it. Responsibility is therefore strongly associated with such qualities as maturity, self-control, and intellectual autonomy, while it correlates negatively with dependence, subservience, and social conformity. This is why it is axiomatic in libertarian philosophy that liberty and responsibility must necessarily go together, and why Viktor Frankl said that the Statue of Liberty in New York should be offset by a Statue of Responsibility in California.
This raises an interesting question: How exactly do people learn to be responsible? Behavioral psychology offers an insightful answer. The paradigmatic example, which I first encountered during inservice teacher training nearly 20 years ago, is the way effective parents teach their children to be responsible with that most vilified of all resources — money. This example made a great impression on me long before I knew what libertarianism was, and helped prepare me for the more conceptually heady theories of Misesian economics and Rothbardian anarchism. Being simple, universal, and all too human, it has on occasion also helped me gently coax some of my more left-leaning acquaintances into softening their stance toward the "evils" of the free market.

Responsibility Training

According to standard behavioral psychology, the parents who successfully impart to their offspring the difficult and sometimes painful lessons of financial responsibility are those who consistently create situations in which the children first make decisions about money and then live with the consequences. Parents must, in other words, enroll their little darlings in the school of hard knocks.
To do this, three conditions need to be met, and met consistently:
  1. Children must be given a firmly set, periodic allowance. (The amount should be sufficient to cover all regularly recurring expenses, e.g. lunch money for school, plus perhaps one or two modest, age-appropriate luxuries, such as a new game or a trip to the ice cream parlor.)
  2. Children must be granted the freedom to spend the money without parental stipulations, interference, or ex post facto punishments (we are assuming here that six-year-olds will not be given sums sufficient for the purchasing of cocaine, semiautomatic firearms, etc.).
  3. When the money is gone, it's gone — all whining, nagging, and toy throwing to the contrary notwithstanding.
All three of these conditions are essential to the success of the program, as many an exasperated mother and father have discovered. The reason is simple: the learning of responsibility requires both full control of a resource (ownership) and clearly defined natural limits (opportunity costs). Absent ownership, the child will not learn financial accountability because the decisions about how to allocate the funds were not authentically his own; without opportunity costs, the child's spending decisions, though perhaps entirely his, will produce no consequences from which he could learn anything.
The applicability of this necessarily somewhat artificial pedagogical tool to the natural moral evolution of a society becomes clear when placed in the context of an unhampered market operating within a clearly established framework of (legally) inviolable individual property rights. Where the child in our example is given an allowance appropriate to his stage of development, on a free market each citizen receives remuneration commensurate with his contribution to economic production. As the child is free to spend his allowance as he sees fit, so too is the citizen at liberty to dispose of his earnings in whatever way he chooses, whether as entrepreneur, investor, or consumer. And finally, in the same way that the child was constrained not by the coercive intervention of authority figures but by the finitude of his allotment and the need to consider outcomes and make trade-offs, so the adult member of a free society must learn to make similar calculations and compromises when confronted with the limitations of his own resources and the boundary between his property and that of his fellows.
These, then, are the prerequisites for the inculcation of responsibility in the young, and more broadly, for the proliferation of accountability throughout society. Like the rose bush whose growth requires both soil and scaffolding, responsibility has little chance to develop fully without the freedom to negotiate and make decisions autonomously within a dependable framework of benign (noncoercive) constraints.
Sometimes when making this case to interventionists, the objection will be raised that it is not in fact a case for freedom at all, but for centralized economic control.
They will ask, What about those who are too poor to afford luxuries and are just barely meeting their expenses? Is this not a violation of the first condition, and doesn't this then justify government assistance? The second condition — freedom from coercion — may obtain for both rich and poor alike, they will say, but you have admitted that freedom in itself is not sufficient.
They may also object to the enormous fortunes of the business elite on the grounds that these are a violation of the third condition, which says there must be strict limits, and finally conclude from all this that I have made the strongest possible case, not for laissez-faire, but for state intervention on a massive scale!
There are three problems with this reasoning. The first is that the reason children have to be given resources without any productive contribution on their part is precisely that they are developmentally incapable of making such a contribution. They live in a state of helpless dependence that, though unavoidable, is also temporary, subsiding gradually as competence grows and maturity is approached.
Indeed, it is a central task of parenting to obviate this dependence over time through the incremental withdrawal of external support until full independence — adulthood — is reached. Were parents to subsidize their children permanently, theory and experience both indicate that maturation would be inhibited roughly in proportion to the size and periodicity of the subsidy.
It is just this latter situation that the forcible redistribution of income by government tends to create. Except in the case of the permanently disabled (whose burden of responsibility in our sense diminishes relative to the extent of their disability), welfare is given to competent adults, not dependent charges, with the result that over time there will tend to be a decline in personal accountability and autonomous decision making on the one hand and an increase in the number of persons claiming to need assistance on the other.
If transfer payments are not time limited, a pattern of learned helplessness sets in, reversing the developmental trajectory and turning otherwise autonomous adults into de facto children.
As the skillfully applied techniques of individualized, noncoercive parenting gradually culminate in the raising of a child, so the artless, bureaucratic machinations of coercive state paternalism conspire over time to lower an adult. In giving welfare to the competent, the state is not fulfilling the first condition of responsibility at all but is instead merely violating the third.
The second problem with the statist response is that the natural immaturity of children means that their parents are (temporarily) inherently superior to them. Until a child grows up and establishes his independence, the parent-child relationship is one of superordinate to subordinate.
It is unfortunately all too easy to conceive of the relationship between government and citizen in this way also, but the temptation fades once it is realized that the government is nothing but a bunch of people. Both elected official and constituent are autonomous, adult human beings who cannot a priori be distinguished from one another. Hence, both are of the same order; neither has any claim to categorical superiority. What's more, in a system of democratic representation, if anyone should play the role of parent it is the citizen, since it is he who, though the casting of his ballot, is supposed to hold the politician accountable, not the other way around.
Finally, with regard to the third condition, it is not the case that the richest few are without limits. It is true that they enjoy a relative freedom from scarcity that few can attain, but they are as strictly bound as anyone else by the rights of others to their own property. However great the tycoon's fortune, where property rights are absolute his use of that fortune may not impinge upon the person or property of even the poorest of his fellow citizens. Moreover, the ultimate purpose in learning to be responsible with a resource is to maximize its utility, and on the free market it is the success of the wealthiest in doing just this — directly for themselves, but indirectly for everyone — that is the sole cause of their material abundance.
We thus arrive at a foundational principle of social responsibility: Where there has been neither force nor fraud, the accumulation of wealth (profit) is the reward for the responsible use of resources in social production, and it is allocated, not arbitrarily by ruling elites, but voluntarily and in precisely the desired proportion by all members of society in their capacity as consumers. As such, its confiscation, redistribution, subsidization, or legal protection must violate the ownership prerogatives either of the most responsible producers, of all consumers, or both. The result must be a tendency toward less responsibility, as the only available means for holding business accountable to the public is neutralized, and the necessity of facing consequences mitigated for everyone in society.
Money, Method, and the Market Process - Digital Book


Conclusion

The three essential preconditions for learning responsibility can be summed up in a single word: ownership. In psychology, the person who takes responsibility for his decisions is said to "own" them, while in common speech we say that accepting moral accountability for an action means "owning up to" it. In this sense, responsibility is ownership, and we use proprietary metaphors to describe it in unconscious recognition of that fact. That is why the free society must also necessarily tend to produce the most responsible citizens: its unwavering dedication to full liberty supported by a firm scaffolding of equal property rights for all is the only means for establishing on a broad scale the conditions that parents have been using to raise responsible children since time immemorial.

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.

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