This post was published at Redacted Tonight
The Trump Administration quietly issued an Executive Order (EO) last Thursday which allows for the freezing of US-housed assets belonging to foreign individuals or entities deemed “serious human rights abusers,” along with government officials and executives of foreign corporations (current or former) found to have engaged in corruption – which includes the misappropriation of state assets, the expropriation of private assets for personal gain, and corruption related to government contracts or the extraction of natural resources.
Furthermore, anyone in the United States who aids or participates in said corruption or human rights abuses by foreign parties is subject to frozen assets – along with any U. S. corporation who employs foreigners deemed to have engaged in corruption on behalf of the company.
This post was published at Zero Hedge on Dec 27, 2017.
[This article is excerpted from An Austrian Perspective on the History of Economic Thought, vol. 1, Economic Thought Before Adam Smith.] By the beginning of the 17th century, royal absolutism had emerged victorious all over Europe. But a king (or, in the case of the Italian city-states, some lesser prince or ruler) cannot rule all by himself. He must rule through a hierarchical bureaucracy. And so the rule of absolutism was created through a series of alliances between the king, his nobles (who were mainly large feudal or postfeudal landlords), and various segments of large-scale merchants or traders. “Mercantilism” is the name given by late 19th-century historians to the politicoeconomic system of the absolute state from approximately the 16th to the 18th centuries.
Mercantilism has been called by various historians or observers a “system of Power or State-building” (Eli Heckscher), a system of systematic state privilege, particularly in restricting imports or subsidizing exports (Adam Smith), or a faulty set of economic theories, including protectionism and the alleged necessity for piling up bullion in a country. In fact, mercantilism was all of these things; it was a comprehensive system of state-building, state privilege, and what might be called “state monopoly capitalism.”
As the economic aspect of state absolutism, mercantilism was of necessity a system of state-building, of big government, of heavy royal expenditure, of high taxes, of (especially after the late 17th century) inflation and deficit finance, of war, imperialism, and the aggrandizing of the nation-state. In short, a politicoeconomic system very like that of the present day, with the unimportant exception that now large-scale industry rather than mercantile commerce is the main focus of the economy. But state absolutism means that the state must purchase and maintain allies among powerful groups in the economy, and it also provides a cockpit for lobbying for special privilege among such groups.
Jacob Viner put the case well:
This post was published at Ludwig von Mises Institute on 12/26/2017.
If you google ‘London moats’, you’ll probably alight on a link which will take you to ‘London’s Top 10 Moats: A Spotter’s Guide’. We had no idea there were so many and could only think of the ‘obvious’ one surrounding the Tower of London, even if it’s waterless these days. According to the guide, a defensive ditch has surrounded the Tower since its origins in the eleventh century. The moat, which contained water from the thirteenth century until the 1840s, helps to protect the roughly cuboid ‘White Tower’ keep, which gives the Tower of London its name. Built by William the Conqueror in 1078, the White Tower was resented as a symbol of oppression inflicted on London by the new ruling elite.
Yesterday saw the press launch for the new US embassy in London which is situated on the south bank of the River Thames in the re-developed – albeit unattractively – part of the city near to Battersea Power Station. During the ‘celebrations’, architect James Timberlake, of Philadelphia-based firm Kieran Timberlake, described the new building as ‘the embodiment of peace and security’. The Daily Mailreported a spokesperson saying the glass structure ‘gives form to the core democratic values of transparency’. The lobby looks a bit ‘imperial’ to us, but we’re probably mistaken.
This post was published at Zero Hedge on Dec 15, 2017.
One of the more contentious aspects of the tax reform bill currently going through Congress is a proposal to treat the value of graduate-student tuition waivers as taxable income. In the US most PhD programs charge tuition, like undergraduate programs, but PhD students are typically granted a waiver of tuition along with a modest stipend to cover living expenses. In the early versions of the tax bill, the value of this waiver — which could be $50,000 to $60,000 at a private university — would be classified as taxable income. University officials, graduate student associations, academics, and most journalists have condemned this aspect of the tax plan. As a university professor I have received multiple communications urging me to write my Congressional representatives, speak out publicly, and otherwise fight to defeat this legislation.
As of this writing, it appears the tuition-waiver piece will not be in the final bill, so university officials, the AAUP, the grad student unions, and other graduate-education supporters can rest easy. Maybe all that lobbying paid off.
This post was published at Ludwig von Mises Institute on Dec 13, 2017.
Last week, Pres. Donald Trump nominated Marvin Goodfriend to fill a vacancy on the Federal Reserve Board of Governors. When we reported the news, we called him ‘another swamp creature’ – a member of the Washington D. C./Wall Street clan Trump promised to drain away.
We’re not alone in our thinking. In an article on the Mises Wire, Tho Bishop called Goodfriend’s nomination ‘a dangerous act of outright betrayal to Trump’s core constituency of working-class voters.’
It’s true Goodfriend’s views on monetary policy don’t fit in with the current Fed status quo. But that’s not a good thing. Goodfriend isn’t a fan of the conventional radical policy of quantitative easing. He’s actually a proponent of an even more radical policy.
Following is Bishop’s analysis in its entirety.
Donald Trump nominated Marvin Goodfriend to the Federal Reserve Board of Governors, one of the numerous vacancies that have emerged over the course of the past year. While his prior nominations of Jay Powell as Chairman and Randal Quarles as Vice Chair represented a disappointing commitment to the status quo, his selection of Goodfriend is a dangerous act of outright betrayal to Trump’s core constituency of working class voters.
The timing of the decision is ironic. After all, while Trump is busy lobbying Senate Republicans to support his desired tax cuts, he has decided to nominate a would-be central banker who wants to effectively tax the bank accounts of American citizens.
This post was published at Schiffgold on DECEMBER 5, 2017.
When commenting on the Flynn plea deal with Mueller, we said that while hardly evidence of collusion between Trump and Russia, especially since all events took place after the election, the real question is who was the “senior member of the transition team” that instructed Flynn to call Russia. Now, according to Bloomberg’s Eli Lake we may have the answer: none other than Jared Kushner, who as Lake says, “could be one of the next dominoes to fall.”
According to the Bloomberg report, “one of Flynn’s lies to the FBI was when he said that he never asked Russia’s ambassador to Washington, Sergey Kislyak, to delay the vote for the U. N. Security Council resolution. The indictment released today from the office of special prosecutor Robert Mueller describes this lie: “On or about December 22, 2016, Flynn did not ask the Russian Ambassador to delay the vote on or defeat a pending United Nations Security Council resolution.” At the time, the U. N. Security Council resolution on Israeli settlements was a big deal. Even though the Obama administration had less than a month left in office, the president instructed his ambassador to the United Nations to abstain from a resolution, breaking a precedent that went back to 1980 when it came to one-sided anti-Israel resolutions at the U. N.
This was the context of Kushner’s instruction to Flynn last December. One transition official at the time said Kushner called Flynn to tell him he needed to get every foreign minister or ambassador from a country on the U. N. Security Council to delay or vote against the resolution. Much of this appeared to be coordinated also with Israeli prime minister Benjamin Netanyahu, whose envoys shared their own intelligence about the Obama administration’s lobbying efforts to get member stats to support the resolution with the Trump transition team. As Lake correctly notes, “for now it’s unclear what to make of all of this” especially since th most important part of a case is missing: motive.
This post was published at Zero Hedge on Dec 1, 2017.