US May Get Huffy About Syria’s Regime

From Bloomberg:

The Obama administration may call on Syrian President Bashar al-Assad to step down soon, a U.S. official said as the State Department said the Syrian government has detained more than 30,000 people, some in cages.

U.S. Secretary of State Hillary Clinton said she wants to see more pressure on Assad to step down from Europe, India and China, including the sanctioning of Syria’s oil and gas industry, speaking in an interview with CBS News yesterday…

And if that doesn’t work we may even send a strongly worded protest.  But calmer heads in the Obama Administration are worried that such a hard line stance might cause Little Assad to go slow on his reforming zeal.  There is much worrisome talk that in a fit of anger President Obama may even decide to make himself perfectly clear about Syria.

What a freaking joke of a foreign policy team…start a half-war in Libya to “defend civilians” while we carefully think over whether or not we should even mention Assad’s massacre of civilians in Syria.  Do you hear the laughter from our enemies?  The curl of contempt on their lips as they consider our President?  Does anyone out there think that any enemy of the United States is worried about what we might do when they attack?

We’ll be a generation repairing the damage Obama and Co have done to America’s reputation around the world…and part of the price we’ll have to pay will be in blood.  This is the result of allowing ourselves to be hoodwinked by slick campaigning…we were fooled in 2008 and we’d better un-fool ourselves in 2012.

The Government-Subsidized Riot

At least one leftist is understanding what is happening in Britain:

…This is not a political rebellion; it is a mollycoddled mob, a riotous expression of carelessness for one’s own community. And as a left-winger, I refuse to celebrate nihilistic behaviour that has a profoundly negative impact on working people’s lives…

…There is one more important part to this story: the reaction of the cops. Their inability to handle the riots effectively reveals the extent to which the British police are far better adapted to consensual policing than conflictual policing. It also demonstrates how far they have been paralysed in our era of the politics of victimhood, where virtually no police activity fails to get followed up by a complaint or a legal case. Their kid-glove approach to the rioters of course only fuels the riots, because as one observer put it, when the rioters ‘see that the police cannot control the situation, [that] leads to a sort of adrenalin-fuelled euphoria’. So this street violence was largely ignited by the excesses of the welfare state and was then intensified by the discombobulation of the police state. In this sense, it reveals something very telling, and quite depressing, about modern Britain.

The only thing left out is my contention that the British people have resigned the right of self defense.  Swaddled in the welfare State, set upon by professional gripe-mongers, oppressed by political correctness and disarmed by law, the British people are just sheep for the slaughter…complete victims whenever the barbarians decide to strike.  If they tried this in the United States, there would be return fire – and in most jurisdictions, the law would back the honest citizens in the use of force.  Can anyone seriously imagine this sort of thing going on in, say, Texas?

This is the perfect storm of welfare and Big Government…some people so mollycoddled (excellent word, that) that they just don’t care how much they destroy; figuring it is their right to take what they want (all that class warfare talk does have an effect, ya dig?) and that the government (which owes them, right?) will fix it all up.  On the other side, people who still retain a sense of decency stand aside and let the rioters destroy because they’ve been conditioned to think that law enforcement is a matter only for the police; they have forgotten that the police are delegated by the people to defend the community, but the actual defense of the community lies with the people.

The only way out of this is for some citizen of Britain to shoot a rioter, and then have a jury refuse to convict.  That would save Britain…anything else will just be a band aid on a dying society.

Riots in Britain

From Reuters:

Rioting and looting spread across London on Monday as hooded youths set buildings and cars ablaze, smashed shop windows and hurled bottles and stones at police in a third night of violence in Britain’s worst unrest in decades.

Prime Minister David Cameron cut short his holiday to fly home to tackle the violence, which appeared to be led by youths alienated by years of underemployment which left them feeling marginalized even before the economic downturn…

Marginalized youth?  Certainly – but also a civilization which has lost the will to defend itself.  70 years ago the people of London would have known what to do with people who – regardless of grievance – are really just using the incident as cover for a rampage of looting…they would have beaten them down.

It would be different if these people were trying to do something – if, that is, they were trying to conduct a revolution.  Overthrow Parlaiment, set up a Republic…heck, re-establish absolute monarchy.  Something, anything…but all they are doing is burning things and stealing.  And the Brits are just wringing their hands over it…and even if the British people wanted to do something about it, they really can’t:  Britain’s gun control laws have ensured that if ever some thousands of people want to loot and pillage, there is no way for the citizenry to stop them.

It is such a sad end for a once-great nation.  Keep it in mind – and don’t let it happen here.

Asia-Pacific Markets Getting Hammered

Mish has the details and a roundup of really, really lousy economic headlines.

My take:  if the employment report comes in better than expected tomorrow, then the sheep who run our financial system will some how, some way, hold it to be evidence that things aren’t as bad as they look…the market might surge by hundreds of points.  On the other hand, if it comes in worse than expected, then watch out.

The bottom line for the global economy is, as it has been for years, that there is way too much debt.  Each and every nation – yes, including China – is honeycombed with bad debt which cannot be repaid…in some cases never, in other cases just not in the contractual time frame.  We borrowed ourselves in to a global boom and now the piper has to be paid.  We might dodge this one more time but no matter how many times we pull back from the cliff, we are still ultimately heading for a crash.  Default is the only way out for some nations, while a quasi-default will be required of all other nations.

The lesson to be learned is that debt is poison…we’ve been hoodwinked; suckered by a classic, get-rich-quick ponzi scheme which held that we could borrow forever, live like kings and never have to repay.  Don’t get me wrong, here – we, the people, for the most part eagerly joined in the scam.  We lost our heads – and, more importantly, we lost our sense of moral rightness.  Once we pay this price, it is to be hoped that we’ll take our lesson to heart and build an economy based on hard work, savings and careful investment.

Will Taiwan Remain Free?

Asia Times has a bleak report about the ability of Taiwan to fight off an attack from China – the bottom line of it being that by 2020 China may have the capability to force a Taiwanese surrender.

The growth of Chinese military sophistication and China’s continual build up of weapons systems designed to counter American power is increasingly leaving Taiwan in a strategically untenable position.  If Taiwan cannot count on rapid and powerful American support, then resistance to any Chinese attack would be exceptionally difficult, and very likely doomed if China deployed all its power.  In the end, all a really firm resistance by the Taiwanese can accomplish – absent US support – is to make a graveyard of Taiwan (while also killing some hundreds of thousands of Chinese in payment).  So, what does Taiwan do?  And what does America do about it?

It is still some years before China can feel certain that a sea-borne invasion of Taiwan could be carried out in the face of US naval intervention – both in the air and undersea, the Chinese military is not even close to being able to stop us from blocking a move to Taiwan.  They can rain down death and destruction, but that is not what China would prefer to do.  Taiwan is very wealthy and China would like to capture it intact (Taiwan’s 23 million people produce $35,700.00 in GDP per person, China’s 1.3 billion produce $7,300.00 in GDP per person).  Raining down death and destruction (or threatening to) can get Taiwan to make a huge amount of concessions…but only a credible threat to leap across the sea and invade would convince Taiwan’s government to surrender.  That, as I said, is some years away…so Taiwan and the United States have a window of opportunity to make plans to deal with this.

The best way to deal with it, in my view, is to make Taiwan a nuclear-armed power.  Taiwan, un-aided, will forever lack the ability to defend itself in conventional war against China – the population disparities are so great that if China attacks, then Taiwan is ultimately doomed, even if they do put up a spirited fight and make the Chinese pay a usurious blood price for conquest (and, of course, the Chinese government is never chary with the blood of the Chinese people…sacrificing a million of them to gain prestige may be seen as all in a day’s work by the Chinese leadership).  Taiwan, aided by us, wins the war against China.  But can Taiwan really count on US aid?  Suppose we have a flabby President at the time?  Suppose our military has been hollowed out by budget cuts to preserve free birth control?  Suppose China’s cat’s paw in North Korea is ordered to engage us in war there just before China attacks Taiwan?  Counting on us is not something Taiwan can do.  So, self defense – but that is only possible for a small State like Taiwan via nuclear weapons.

Taiwan has the wealth and the technical capacity to build nuclear weapons, install them on missiles and deploy those missiles on submarines.  A force of four or five “Dolphin” class submarines, like those Israel has, armed with nuclear-tipped missiles would be sufficient for Taiwan to retain at sea a credible nuclear deterrent (you need four or five so that you can always have two or three deployed).  Israel would probably even be willing to help out, and we can provide clandestine assistance as well, though Taiwan would have to be on its own as far as nuclear weapons development due to our treaty obligations on non-proliferation.  Taiwan, right now, has just enough time to do this before China becomes powerful enough to enforce a surrender.  Faced with the prospect of a dozen or so nuclear weapons being detonated over Shanghai, Hong Kong and other major Chinese cities, the Chinese government simply would not attack – not ever:  it would never repay the cost (monetary, I mean, not blood…as I said, I doubt much that the Chinese government cares how many people die).

The choice is ultimately Taiwan’s – do they wish to be free?  I, for one, will always back coming to Taiwan’s aid because my view is that the United States can never afford having a free people be conquered by external tyranny.  Even at the cost of World War Three, we should fight China if China ever attacks Taiwan.  But Taiwan simply cannot count on my view holding majority support in the United States…or, even if it does, count on the American government at the time being able and willing to assist.  If Taiwan’s people wish to remain in freedom, then their choice is clear…build nuclear weapons and count on the ability to destroy China as their assurance against Chinese attack.

Europe on the Brink

With a slow-motion bank run going on in Greece, this over at CNBC should send some financial shivers down your spine:

Europe is a “train wreck” and on the “brink of a major financial crisis,” Scott Minerd, CIO of the fixed-income firm Guggenheim Partners, told CNBC Tuesday.

“The way Europe is operating right now, it’s what I called recently ‘cognitive dissonance,'” Minerd said, or “basically doing the same thing thinking they’re going to get a different outcome.”

“They keep throwing more and more liquidity at it thinking it’s going to get better and it’s not,” he added. Europe fails to recognize that it has a “structural problem, not a liquidity problem.”…

The structural problems facing Europe are gigantic – aging populations, declining populations, low productivity in many countries (especially those which owe the most), too much welfare/socialism, too much debt…on and on it goes, and it can’t be sustained.

Here’s the bad news – Europe is just a few years ahead of us.  We’ve already got an aging population, we’re just a few years away from having a declining population, our productivity is being hampered (mostly by government regulation), and Obama and his Democrats want to put us all on welfare as they build the United Socialist States of America.  Europe has no way out – they’ll have to go through a really gigantic financial catastrophe in payment for their idiocy.  We still have a few years left to avert that – we’ll still have to pay a pretty steep price, but nothing like what Europe will have to bear.  The choice we make  next year will decide it for us – bad times followed by good, or hideous times followed by a very long, slow climb back to health (if that can be managed, at all).

Think carefully about what you want…

Brazilians Smarter Than Americans

From Bloomberg:

Brazil will provide $16 billion in tax breaks and toughen trade barriers to protect manufacturers hurt by a currency rally that’s fueling a surge in imports from China.

The targeted tax breaks and incentives, which amount to 25 billion reais over two years, were announced today by President Dilma Rousseff after a report showed industrial production plunged 1.6 percent in June, the second biggest drop since 2008.

The plan, called “A Bigger Brazil,” will eliminate a 20 percent payroll tax for industries such as shoemakers and software firms hurt by the real’s 48 percent rally since the end of 2008, which has reduced the cost of imports and strengthened decades-old complaints by business about excessive costs…

A bit protectionist, to be sure, but the basic thing is to reduce the cost of creating wealth within Brazil in order to ensure that the free labor of Brazil is not undercut by the slave labor of China.  This is just rational policy.  Free trade is all well and good – but only between people who are mutually free.  Free trade with a tyrannical nation is a contradiction…there will be trade, but it won’t be free:  it will come at a high cost to the free labor of the one and even of the slave labor of the other, as their chains are more securely fastened.

I’ve been saying it for years, and it is another thing I’ll keep saying until everyone agrees with me, because I’m right:  we must ditch “free trade” and turn to “freedom trade”.  The American worker can and will out-compete every other workforce in the world…but he can’t compete with a government which deliberately keeps wages low, allows sub-standard products to be shipped to the United States and connives as the theft of American intellectual property.  As long as China is playing with loaded economic dice, it is asinine for us to allow them to enter our market place.  Let them institute free and fair multi-party elections and then we can trade with them…until that time, keep them out.

Go ahead and try and argue me out of this position, but be warned that you would ultimately be defending a position where US wealth is transferred to a China which is building up a military force for the purpose of challenging us.  Good luck with that.

Syrian Army Crushes Rebels

From Bloomberg:

Syrian soldiers stormed Hama and other flashpoints of unrest, leaving at least 121 dead, an activist said, as President Bashar al-Assad’s forces sought to reassert control on the eve of Ramadan, when protests are likely to intensify.

Tanks shelled Hama, Syria’s fourth largest city, where at least 100 people were killed today, said Mahmoud Merhi, head of the Damascus-based Arab Organization for Human Rights.

Three people died near the city of Daraa, and fighting in other areas raised the toll to 121, Merhi said…

Why is the Syrian government doing this?  Because they know that the one nation on earth which can enforce decency won’t act…or, even if we did act, then under Obama we would act with sufficient speed and power to affect the outcome.  Get used to this boys and girls – because Obama has abdicated America’s leadership role, the world now belongs to whomever is willing to be the most evil.  This massacre in Hama is just a slight foretaste of what is to come.  Tyrants around the world are watching events and getting ready grab what they can and settle scores…all in the knowledge that Obama is more likely to condemn a US ally than an enemy.

The world is becoming a very dangerous place…and to help you sleep better, the word is that the Democrats want 50% of all spending cuts to come out of defense, alone.

 

Eurozone Crisis Watch

Italian bond prices movin’ on up – from the BBC:

Italy has had to pay much more to borrow than a month ago as investors continue to worry about its huge debts.

Italy had to pay an interest rate of 4.8% to sell 3.5bn euros ($5bn; £3.1bn) of three-year bonds – up 1.1 percentage points from June.

Despite multiple attempts to contain the Greek debt crisis spreading, Italy and Spain have seen their borrowing costs rise in recent weeks.

Italy has the largest sovereign debt of any European country…

They can keep plugging the leaks.  They can keep on printing Euros to buy worthless “PIIGS” bonds.  They can razzle and dazzle and have conference after conference – but at the end of the day, Portugal, Ireland, Italy, Greece and Spain owe more than they can ever possibly repay.  Default is inevitable.  Wiser heads are now just looking for the safest place to crash the plane…because crash it must.

Debt is poison – and piling on more debt to discharge old debt is economic suicide.  Keep that in mind as our Democrats try to sucker us in to believing that the only way we can avoid default is to go further in to debt.

A Bit of Reality About China

Kevin Williamson notes Romney’s talk about China and trade and has this to say:

…Mr. Romney, in Ohio, did the usual song-and-dance number about China’s currency manipulation, tariffs, etc. Mr. Romney might want to reflect that he’s running for president of the United States of America, which is at the moment involved in one of history’s remarkable episodes of currency manipulation. Perhaps Mr. Romney could give Ben Bernanke a call and have him run through the details.

Much more sensible than Romney’s speech in Ohio is his short video on the same subject, which features a gentleman named Steve Cohen, who runs a manufacturing business, Screen Machine Industries. Mr. Cohen doesn’t much talk about currency manipulation or tariffs. Instead, he talks mostly about the real, legitimate, actionable beef that American firms have with the Chi-Comms: their rampant, degenerate thievery. China is a nation of pickpockets, a crime-wave with a flag. The hijacking of foreign intellectual property by Chinese thieves, including those running businesses connected to the government, ought to be front-and-center in our trade discussions…

Which is all very true, but doesn’t get at the heart of it – our trade negotiations with China should actually revolve around how we de-couple our economy from theirs.  China is ruled by a corrupt, cruel oligarchy which doesn’t actually care about the Chinese people – and they care even less about us, save in how much then can steal.  While China’s economy is talked up as the new paradigm, it is actually riddled with bad debt and doomed to a spectacular crash – something which will make the end of Japan, Inc. in the late 1980’s look like a walk in the park.  Having our economy tied to China’s means we’re at the economic mercy of people who are robbing their own people blind while conniving at the theft of American wealth by Chinese firms given the go-ahead by the government of China.

The bottom line is even if you hold that we have to import our manufactured goods from low wage nations (an absurd statement, but those who want to ship our jobs overseas never tire of making it), we can do better by ourselves if we imported from nations more friendly to us – India, for instance.  There is no good in the China trade – just an erosion of our wealth, the strengthening of an anti-human dictatorship and world of hurt when the crash comes (which might come with war as the Chinese oligarchs cast about for a means to distract their own people).  Over a period of a few years (no more than five) we should progressively increase tariffs on Chinese goods until they are entirely priced out of the American market.  Meanwhile, we should do all in our power to discharge our debt to China and prohibit, after a date certain, the redemption of American bonds held by Chinese citizens, corporate entities or government bodies (so even if they buy them from third parties, they’ll never get another dime from us).   No more trade with China – not until they institute free, fair elections and develope a government of reliable laws.

It is time we woke up to the realities of the world – and one of the main realities is that the United States cannot afford to have dealings with tyrannical regimes.  Free people should seek to do business with their like – not with the pirate masters of slave labor.