I was buying some beer last evening when I chanced upon an attractive car on display. As an automobile enthusiast I checked out the car, and was quite impressed. It was a Nissan Teana, a sedan with great looks, high technology and superb features.
Just then the salesman approached me and, after complimenting his offering, I naturally asked the price at which this car was selling. His reply: “A little over 20 lakhs.” That is about US$40,000.
Since this car must be a fully-built model directly imported into India, I then asked the salesman what the import duty was.
His reply: “116 per cent.”
Can you beat that!
The bunch of morons that make up the government of india are “protecting” some auto MNCs from other auto MNCs.
So Honda, Skoda, Toyota, Fiat, GM, Mitsubishi, et. al. are being “protected” from Nissan.
This is RIDICULOUS!
And do note that this is not a tariff that collects any revenue.
When the tariff is so high, there is zero trade, hence zero revenue.
This tariff screws the consumer, screws the importer, and does nothing for the exchequer either.
Which means the particular persons in-charge of our collective affairs are nuts. Hence their trade minister goes about sabotaging the WTO. They are Nutts Inc.
In my book, the customs department should be abolished.
Let us institute free trade unilaterally.
To download 2 podcasts on the subject, click here.
Thursday, November 6, 2008
Wednesday, November 5, 2008
The State, It Is Obama
There is a lot of naïveté in the world – and this shows up spectacularly after Obama’s victory at the US elections. Ramesh Ramanathan, for example, sees it as “a giant leap for democracy.” In actual fact, the US State has, under the pretext of democracy, accumulated far more powers than any monarch ever had.
There is the money monopoly.
There is the “war on drugs.”
There are other real wars being waged on foreign soil.
The Americans who know better call their State either “fascistic” or “corporatist” – and both words mean much the same. To many Americans, this democracy is a sham that covers up an ugly reality.
And, indeed, the elevation of a coloured man to their highest public office is part of the sham. It is just like if Mayawati or Laloo became PM here in India. Would that in any way change the ugly reality that is the Indian State?
Note that in this election, there were many prominent voices raised against the two main parties. Ron Paul asked his flock to vote for a third party candidate. All these voters felt that the Democrats and Republicans were Tweedledum and Tweedledumber – and, more importantly, they were engaging in a conspiracy of silence in order to keep many important issues out of the debate: like the activities of the US Fed.
Democracy in the US has for long been analysed – especially by the “public choice” theorists – as “pork-barrel politics.” PJ O’Rourke’s Parliament of Whores refers to the US State. Democracy was originally conceived as a means of limiting the monarch’s taxation – recall the slogan “No Taxation Without Representation.” Today, the monarch, in the guise of democracy, “creates money.” He buys the support of all those elected with this funny money. Elected representatives no longer represent taxpayers. They represent those special interests for whom they collect and deliver all the pork.
Obama’s win at the US presidential election is actually a way of fooling the people into believing that theirs is indeed a “democracy” in the sense that a coloured man can win. If any citizen now asks the question, “Who Governs?” he will be told “Voters like you and me.”
Hans-Hermann Hoppe, in his Democracy: The God That Failed, offers us a reason why democracies are so successful at hiding all their tyrannies. Under a monarch, there is a clear distinction between governors and governed, with only the members of royal families being eligible to govern. Thus, there is an “Us and Them” in the minds of all citizens – and all tyrannies are stridently opposed. With democracy, the “Us and Them” distinction is blurred, because anyone from the bottom of society can become the supreme ruler – like Obama, or Mayawati, or Laloo. Tyrannies remain hidden. And the people do not revolt against them – because they think they themselves are part of The State. This is the big sham.
We all need Freedom from The State. And we Indians need this as much as Americans do.
We must uphold the ideal of Liberty Under Law. We must oppose all “democratic legislation.” That is, Liberty comes first, not Democracy.
There is the money monopoly.
There is the “war on drugs.”
There are other real wars being waged on foreign soil.
The Americans who know better call their State either “fascistic” or “corporatist” – and both words mean much the same. To many Americans, this democracy is a sham that covers up an ugly reality.
And, indeed, the elevation of a coloured man to their highest public office is part of the sham. It is just like if Mayawati or Laloo became PM here in India. Would that in any way change the ugly reality that is the Indian State?
Note that in this election, there were many prominent voices raised against the two main parties. Ron Paul asked his flock to vote for a third party candidate. All these voters felt that the Democrats and Republicans were Tweedledum and Tweedledumber – and, more importantly, they were engaging in a conspiracy of silence in order to keep many important issues out of the debate: like the activities of the US Fed.
Democracy in the US has for long been analysed – especially by the “public choice” theorists – as “pork-barrel politics.” PJ O’Rourke’s Parliament of Whores refers to the US State. Democracy was originally conceived as a means of limiting the monarch’s taxation – recall the slogan “No Taxation Without Representation.” Today, the monarch, in the guise of democracy, “creates money.” He buys the support of all those elected with this funny money. Elected representatives no longer represent taxpayers. They represent those special interests for whom they collect and deliver all the pork.
Obama’s win at the US presidential election is actually a way of fooling the people into believing that theirs is indeed a “democracy” in the sense that a coloured man can win. If any citizen now asks the question, “Who Governs?” he will be told “Voters like you and me.”
Hans-Hermann Hoppe, in his Democracy: The God That Failed, offers us a reason why democracies are so successful at hiding all their tyrannies. Under a monarch, there is a clear distinction between governors and governed, with only the members of royal families being eligible to govern. Thus, there is an “Us and Them” in the minds of all citizens – and all tyrannies are stridently opposed. With democracy, the “Us and Them” distinction is blurred, because anyone from the bottom of society can become the supreme ruler – like Obama, or Mayawati, or Laloo. Tyrannies remain hidden. And the people do not revolt against them – because they think they themselves are part of The State. This is the big sham.
We all need Freedom from The State. And we Indians need this as much as Americans do.
We must uphold the ideal of Liberty Under Law. We must oppose all “democratic legislation.” That is, Liberty comes first, not Democracy.
Tuesday, November 4, 2008
Practical Catallactics For Kids
In an earlier post I had outlined some simple lessons that could be taught to little children – who are a Resource and not The Population Problem – about their inborn faculties, like the Sense of Gain that powers the “natural propensity to truck, barter and exchange.”
I have now thought of adding “practicals” to these classroom (or home) lessons.
Recall that Dennis the Menace is often found with his friend Li’l Joey running a lemonade stall on the street outside his home. A hand-written sign proclaims: LEMONADE 5¢ - with 'N' the wrong way.
Why shouldn’t all kids be encouraged to do such things?
These “practical” lessons in Catallactics will also be the most enjoyable.
Allow me to recount the story of a kid I once met in Kasauli, who ran a little chai-pakora-samosa stall on the Mall.
I was enjoying the winter sun on the Mall when I chanced upon the Jain Tea Stall. A little boy stood alone at the helm of affairs – and I thought, why not? I ordered some chai-pakora-samosa. They were excellent. While paying, I inquired as to where I could get a paan.
The little boy volunteered to get my paan for me.
I asked him his name.
“Tinku,” came the beaming reply.
I liked the little man.
So I decided to go back to the Jain Tea Stall the following day.
This time, Tinku had an assistant: a little girl named Sangeeta, even smaller than him.
Turned out that she was Mr. Jain’s daughter, and Tinku was a visitor from Delhi.
And so I asked Tinku about school.
He said he hated it. He wanted to run a chai-pakora-samosa stall in Delhi – and so his father had sent him to Kasauli to apprentice with his friend Mr. Jain.
Even Sangeeta said he hated school: they fine her 5 rupees if her uniform is not worn right.
I paid them 10 rupees and walked on, humming “School’s Out” under my breath.
I have now thought of adding “practicals” to these classroom (or home) lessons.
Recall that Dennis the Menace is often found with his friend Li’l Joey running a lemonade stall on the street outside his home. A hand-written sign proclaims: LEMONADE 5¢ - with 'N' the wrong way.
Why shouldn’t all kids be encouraged to do such things?
These “practical” lessons in Catallactics will also be the most enjoyable.
Allow me to recount the story of a kid I once met in Kasauli, who ran a little chai-pakora-samosa stall on the Mall.
I was enjoying the winter sun on the Mall when I chanced upon the Jain Tea Stall. A little boy stood alone at the helm of affairs – and I thought, why not? I ordered some chai-pakora-samosa. They were excellent. While paying, I inquired as to where I could get a paan.
The little boy volunteered to get my paan for me.
I asked him his name.
“Tinku,” came the beaming reply.
I liked the little man.
So I decided to go back to the Jain Tea Stall the following day.
This time, Tinku had an assistant: a little girl named Sangeeta, even smaller than him.
Turned out that she was Mr. Jain’s daughter, and Tinku was a visitor from Delhi.
And so I asked Tinku about school.
He said he hated it. He wanted to run a chai-pakora-samosa stall in Delhi – and so his father had sent him to Kasauli to apprentice with his friend Mr. Jain.
Even Sangeeta said he hated school: they fine her 5 rupees if her uniform is not worn right.
I paid them 10 rupees and walked on, humming “School’s Out” under my breath.
Monday, November 3, 2008
On Sandalwood... And Ganja
There is news today that some "sandalwood smugglers" have been apprehended by the Chennai police. They cut down sandalwood trees in the sprawling 300 acre campus of the Theosophical Society. The report notes that there are other institutions nearby, including the Madras Christian College, that have huge campuses where sandalwood grows.
My point is simply this: If sandalwood grows so easily in Tamil Nadu and Karnataka, and all along the Western Ghats, why should this resource not be treated as private property of whoever owns the land on which it is growing?
The problem today is that sandalwood is "collective property" and our The State owns all the sandalwood. If this tree was farmed, every poor person would plant a sapling in his compound, tend to it with loving care, and sell it at maturity to help in his old age. If this logic is applied to all trees - teak, sal, ebony, mahogany, rosewood, pine etc. - then it would be win-win all around. Timber is a renewable resource that should be cheap. With private property governing tree farming, timber would be abundant. It is scarce today, hence unaffordable, because of State ownership. And, of course, there are all these needless problems for the police - who could focus their energies on combating real crime.
I was the only person in India to write this when Veerappan was murdered without trial by the Karnataka Police. This article was translated into Kannada and immediately republished in a leading Kannada daily - that too, as front page anchor. I am glad to see that it has also appeared in Tamil.
Of course, I MUST add that if people can grow what they like on their properties and sell their crops freely, then ganja farming should also be totally legit.
"The Weed" Must Become "The Crop"!
My point is simply this: If sandalwood grows so easily in Tamil Nadu and Karnataka, and all along the Western Ghats, why should this resource not be treated as private property of whoever owns the land on which it is growing?
The problem today is that sandalwood is "collective property" and our The State owns all the sandalwood. If this tree was farmed, every poor person would plant a sapling in his compound, tend to it with loving care, and sell it at maturity to help in his old age. If this logic is applied to all trees - teak, sal, ebony, mahogany, rosewood, pine etc. - then it would be win-win all around. Timber is a renewable resource that should be cheap. With private property governing tree farming, timber would be abundant. It is scarce today, hence unaffordable, because of State ownership. And, of course, there are all these needless problems for the police - who could focus their energies on combating real crime.
I was the only person in India to write this when Veerappan was murdered without trial by the Karnataka Police. This article was translated into Kannada and immediately republished in a leading Kannada daily - that too, as front page anchor. I am glad to see that it has also appeared in Tamil.
Of course, I MUST add that if people can grow what they like on their properties and sell their crops freely, then ganja farming should also be totally legit.
"The Weed" Must Become "The Crop"!
The "Law of Markets"... Applied
My column on Jean-Baptiste Say's "Law of Markets," which dates back to the early 19th century, and which was a pillar of classical liberalism, has appeared in Mint today.
I have explained the law in full and also applied it, both to the Indian economy and also to the current crisis in the USA.
All students of Economics will benefit from a reading of this column.
Lay persons will benefit too, for truth is always simple, and Keynesianism, like Marxism, is garbled nonsense, impossible to fathom.
The column lays bare the deep errors of Keynesian thinking.
To read the column, click here.
I have explained the law in full and also applied it, both to the Indian economy and also to the current crisis in the USA.
All students of Economics will benefit from a reading of this column.
Lay persons will benefit too, for truth is always simple, and Keynesianism, like Marxism, is garbled nonsense, impossible to fathom.
The column lays bare the deep errors of Keynesian thinking.
To read the column, click here.
Sunday, November 2, 2008
Podcast: The Libertarian Vision
This is a podcast on the libertarian vision of Man, Society and Government.
Click here to download the podcast.
I am sure you will enjoy it.
Click here to download the podcast.
I am sure you will enjoy it.
Saturday, November 1, 2008
Our National Character Is Under Threat
The Manmohan pyaray government has “injected liquidity” into the financial sector, to the tune of Rs. 85,000 crores (850 billion) – but the good news is that there is at least one dissenter from within, saying the move will be inflationary. Inflation has been hovering at around 12 per cent for quite some time now. And this implies that interest rates are already negative. When the rate of interest is lower than the rate of inflation, we say that the interest rate is negative. You do not gain by saving money; you gain by borrowing money.
The bankster (as in “gangster”) cartel, who caused the inflation, whose money is just paper, and who are hell bent on creating more and more cheap credit, are encouraging “investments” that have no foundation in real “savings.” And the interest rate is negative. And these people at the top of this scam call themselves “economists.” They, and their cronies, are hollering about “liquidity.” Let us examine the mischief that is being done with this word.
According to the basic principles of Catallactics, the “self-correcting market,” when faced with a situation of bad banks lending bad loans, engages in what is called “liquidation.” The bad banks – all “bankrupts” – and their bad assets are all sold off to the highest bidder. The bad bankers are now jobless, and the good bankers who have taken over their assets now manage them. The system recovers. All the incentives are right. This is called “liquidation.”
But what on earth is this “liquidity” word that is being bandied around today? Those who are echoing this bad word through the media are making it seem that The State should and must “inject” money (which is liquid) into these failing banks. This is basic banksterism. The new credit is created out of nothing, just as the money the RBI prints is based on nothing. And this nothing will be lent out at negative interest rates. Apparently, this is “good medicine.”
Or maybe I am the one who is crazy.
What will actually transpire is that every individual who saves will be offered the perverse incentive to borrow instead. Everyone will borrow rather than save – because this is the way the incentives are structured. This has already happened in the USA, and this is what will happen here. Indians, who are great savers, will all become big borrowers. This is a surefire means of destroying the character of a nation.
Inflationism is not just a destruction of the value of money. It is not just a hidden tax. It is not just a means of redistributing wealth. It is even worse. The greatest evil that inflationism does is the destruction of human character.
And, yes, they want to teach!
The bankster (as in “gangster”) cartel, who caused the inflation, whose money is just paper, and who are hell bent on creating more and more cheap credit, are encouraging “investments” that have no foundation in real “savings.” And the interest rate is negative. And these people at the top of this scam call themselves “economists.” They, and their cronies, are hollering about “liquidity.” Let us examine the mischief that is being done with this word.
According to the basic principles of Catallactics, the “self-correcting market,” when faced with a situation of bad banks lending bad loans, engages in what is called “liquidation.” The bad banks – all “bankrupts” – and their bad assets are all sold off to the highest bidder. The bad bankers are now jobless, and the good bankers who have taken over their assets now manage them. The system recovers. All the incentives are right. This is called “liquidation.”
But what on earth is this “liquidity” word that is being bandied around today? Those who are echoing this bad word through the media are making it seem that The State should and must “inject” money (which is liquid) into these failing banks. This is basic banksterism. The new credit is created out of nothing, just as the money the RBI prints is based on nothing. And this nothing will be lent out at negative interest rates. Apparently, this is “good medicine.”
Or maybe I am the one who is crazy.
What will actually transpire is that every individual who saves will be offered the perverse incentive to borrow instead. Everyone will borrow rather than save – because this is the way the incentives are structured. This has already happened in the USA, and this is what will happen here. Indians, who are great savers, will all become big borrowers. This is a surefire means of destroying the character of a nation.
Inflationism is not just a destruction of the value of money. It is not just a hidden tax. It is not just a means of redistributing wealth. It is even worse. The greatest evil that inflationism does is the destruction of human character.
And, yes, they want to teach!
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