When Currencies Collapse

The problem with fiat currency is the fact it doesn’t have any intrinsic value. Worth of fiat currencies, like the United States dollar, is judged entirely on the decree of the issuer. For example the $5 bill is worth $5 only because the state, which issues the currency, says it’s worth $5. On the other hand commodity based currencies hold intrinsic value, they have actual worth through their utility. If a culture decides to base its currency on wheat, probably not the best commodity to use as it spoils but that’s beside the point, each currency unit would be a fixed amount of wheat. Let’s call this hypothetical currency the Whollar (wheat dollar because I’m super creative), and each Whollar is fixed at 1 pound of wheat. If you take your Whollars to a bank you can exchange them for their value of wheat, so taking 100 Whollars to the bank would result in you walking away with 100 pounds of wheat. Since wheat is a staple foodstuff it has actual value in its utility.

Fiat currencies are easily manipulated but fail to hold value once trust in the currency is lost. While the state may say the $5 bill is worth $5 sellers in the market place may assign it a value of zero. Once faith in a fiat currency is lost it no longer because usable for the exchange of goods and at that point real trade resumes. The faith most people hold in Greek money has vanish and in its place comes the return of barter:

In recent weeks, Theodoros Mavridis has bought fresh eggs, tsipourou (the local brandy: beware), fruit, olives, olive oil, jam, and soap. He has also had some legal advice, and enjoyed the services of an accountant to help fill in his tax return.

None of it has cost him a euro, because he had previously done a spot of electrical work – repairing a TV, sorting out a dodgy light – for some of the 800-odd members of a fast-growing exchange network in the port town of Volos, midway between Athens and Thessaloniki.

In return for his expert labour, Mavridis received a number of Local Alternative Units (known as tems in Greek) in his online network account. In return for the eggs, olive oil, tax advice and the rest, he transferred tems into other people’s accounts.

The only common item everybody has to make exchanges is their labor and the reason people make exchanges is to fulfill wants. Why would I work for two hours programming a computer in exchange for something that won’t allow me to fulfill my wants? If United States dollars or euros won’t buy me food, shelter, and clothing then they are of no use to me. On the other hand I can directly exchange my labor for those wants.

Bater isn’t ideal as it can be complicated but it’s far better than exchanging your goods and services for worthless paper that won’t buy you similar goods and services due to inflation and lack of faith in the currency.

As fiat currencies continue to collapse we’re going to see more people resorting to barter.

If You Disobey You Will Be Put in a Cage

Periodically I bring up the state’s obsession with using violence to enforce its decrees. Many people seem to believe fines aren’t examples of state violence but they never stop to think about the reason people pay fines. You pay a fine because of the implicit threat: if you don’t pay the fine you will be kidnapped and held in a cage. Many Americans have been held in cages for incredibly stupid reasons. A stupid reason we can add to the list is not siding a house:

A Burnsville man on his way to work was arrested and thrown in jail without bond, and then subjected to electronic home monitoring.

But it wasn’t for drugs or a DWI or some other major crime.

Burnsville city leaders say Mitch Faber’s dealings with the law all stem from his failure to properly put up siding on his house.

Yep, siding.

Faber says he had every intention of completing the stucco and decorative rock project on his home but he ran into money troubles when the economy soured. Burnsville leaders say they had no choice to enforce the law.

Here’s how a simple code violation spiraled into a criminal case:

Mitch and his wife Jean say it all began back in 2007 when they received a letter from the city of Burnsville saying, in part, “you must complete the siding of your home.”

“We were in the process of finishing,” Mitch insists. “This wasn’t something that we were trying to avoid doing.”

But in 2009 there were two more warning letters, and in 2010 yet another–this time requiring Faber to appear in court. Burnsville leaders provided 5 Eyewitness News with these 2010 photos of the Fabers’ home as proof there was a problem.

“I was expecting maybe a $700 fine,” Faber said. Instead he was given an ultimatum — finish the siding or go to jail.

[…]

After two days locked up, a judge agreed Mitch should be released but required him to submit to electronic home monitoring. In Dakota County, that process requires participants — no matter what their crimes — to blow into a drug and alcohol device every time an alarm goes off.

“They could call me at 2 in the morning and they did,” Faber said.

The state didn’t even get to the part where they threaten to kidnap Mitch unless he paid an extortion fee, they just went straight to the kidnapping part. In essence Mitch is being punished for not having enough money. He began stuccoing his home but didn’t have the money to complete the upgrade. Here’s the thing, it’s Mitch’s home so why the fuck should the state be able to tell him what to do with it? Perhaps he wanted a home that had unfinished stucco siding, then what? Too bad? Finish the siding, do with your home what you do not wish to do, or be held in a cage?

My question is this: where is the victim of this supposed crime and what harm do they claim has been done to them? Without a victim claiming harm there is no ground for punishment in my opinion. In this case the state has demonstrated their willingness to bring violence where no violence previously existed. Nobody was harmed by Mitch’s home not being fully stuccoed yet he was kidnapped.

This is yet another example of the police state we live in.

The Case of the Trayvon Martin Shooting

We’ve all heard about the Trayvon Martin shooting. The 17 year-old kid was shot by a 28 year-old man named George Zimmerman. What is unfortunate is the fact that this case has turned into a circus of accusations of racism. I say this is unfortunate not because I don’t believe racism has played a part in how this case has been handled so far (I’m withholding judgement at this time) but because it has injected strong emotions into this case making it impossible to determine what actually happened. I’ve already been accused of being a racist because I asked what evidence exists at this point instead of mindlessly marching along with the crown yelling, “RACISM!”

From what I’ve been able to gather so far Zimmerman was the captain of his local neighborhood watch group. Upon seeing Martin running in the rain Zimmerman called 911 and reported the apparently suspicious kid, then pursued the kid even when told by the 911 operator to not do so:

It has emerged that Mr Zimmerman, acting as a neighbourhood watch volunteer, had called police several times in the months before the shooting to report incidents.

Call logs and recordings show that Mr Zimmerman called police on 26 February, reporting there had been break-ins in the community.

He told police there was “a real suspicious guy” who “looks like he’s up to no good”.

When he said he was following the person he had identified as suspicious, the dispatcher said: “We don’t need you to do that.”

Using a expletive, Mr Zimmerman expressed his frustration, saying “these assholes always get away”.

Zimmerman wasn’t held, a fact that is being blamed on Florida’s “stand your ground” law:

The incident sheds light on Florida’s seven-year-old self-defence law, which critics say is too lenient.

The law, nicknamed a “stand your ground” or “shoot first” statute, gives protection from criminal prosecution or civil liability to people who claim self-defence after a shooting or violent incident.

One of the most expansive such laws in the US, it states that people have no duty to retreat from a place they are legally allowed to be, and have the right to use deadly force if they “reasonably” believe they or another person are threatened with death or serious harm.

Before 2005, deadly force was only allowed if the perpetrator had shown that he or she had tried to avoid confrontation.

Needless to say I had to look up the language of Florida’s law:

(3) A person who is not engaged in an unlawful activity and who is attacked in any other place where he or she has a right to be has no duty to retreat and has the right to stand his or her ground and meet force with force, including deadly force if he or she reasonably believes it is necessary to do so to prevent death or great bodily harm to himself or herself or another or to prevent the commission of a forcible felony.

Those criticizing Florida’s “stand your ground” law haven’t been very forthcoming with details. They blame the law for Zimmerman’s current state as a free person. The first question I had to ask was whether or not the police department had any evidence that doubting Zimmerman’s story about the case being one of self-defense. All I found out is that asking this will get you labeled a racist, but the question is of the utmost importance. Did the police who freed Zimmerman review the 911 recording? If not what other evidence existed that countered Zimmerman’s story?

After review of the 911 call and other evidence it seems likely that Zimmerman was the aggressor in this case. The 911 operator told Zimmerman to cease is pursuit and an affidavit from one of Martin’s friends further adds to the pile of evidence against Zimmerman:

Mr Crump played a recorded affidavit from the young woman in which she describes Martin’s last phone call. She spoke with him repeatedly while he visited Sanford, the Orlando suburb where he died.

According to the affidavit, Martin was walking back from a shop with his phone in his pocket connected to a headset earphone.

He ran to a nearby building to take shelter from the rain and then pulled up his hoodie before he walked the rest of the way back. He then realised that someone was following him.

“I asked Trayvon to run, and he said he was going to walk fast. I told him to run, but he said he was not going to run,” ABC News quoted the 16-year-old as saying.

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He eventually ran, but Mr Zimmerman caught up with him.

The young woman heard Martin ask Mr Zimmerman repeatedly why he was following him and then heard his headset falling, losing contact with him.

Martin was fleeing a potential aggressor, and likely made no threatening move against Zimmerman until Zimmerman initiated the encounter. Since Florida’s law states “A person who is not engaged in an unlawful activity and who is attacked in any other place where he or she has a right to be” the question about Zimmerman’s initiation of contact after pursuing Martin constitutes unlawful activity. If Zimmerman did chase down Martin and engage in physical restraint I would call that an unlawful initiation of force, but I’m also not a lawyer and I don’t have all the facts.

The other part of the law that states “any other place where he or she has a right to be” brings up a question of property rights. Did Zimmerman pursue Martin across private property? If so did the property owner give prior permission for Zimmerman to enter his or her property? The question I’m raising is whether or not the property owner recognized the neighborhood watch detachment and whether or not he or she was OK with members of the neighborhood watch entering the property. Unless given permission you have no right to be on another’s property.

I believe answers to these questions are necessary before one begins blaming the “stand your ground” law. Truthfully I doubt these questions will be answered because the case has become about racism, and therefore all other questions are being entirely tossed to the wayside.

From the evidence we have available now I would say Zimmerman suffered from a hero complex. He wanted to be a hero and saw an opportunity, in his mind, to claim his status by apprehending a suspect. Most people would be unwilling to pursue somebody unless they had real cause to do so. Pursuing or otherwise engaging somebody you suspect to be guilty of a crime is a risky proposition because you’re putting yourself into a situation that can escalate into violence very quickly.

Another question I raise is whether or not a recent crime had been reported to Zimmerman. Was a home in the neighborhood broken into within hours of Zimmerman’s contact with Martin? If not what ground did Zimmerman have to suspect Martin of wrongdoing? If it was merely the other break-ins that the neighborhood experience in days gone by there was no reason to believe Martin was the suspect. Simply walking in the rain while wearing a hoodie doesn’t make one suspicious of crimes occurring in the past, if such evidence did qualify I’d say a good portion of the neighborhood I live in would be labeled criminal suspects. It seems Martin may have simply been a target of convenience for Zimmerman, a person who could be detained to elevate his status from lowly unknown neighborhood watch captain to the hero of the community.

What I worry about now is whether or not a fair trial will occur. The case has devolved into a racist witch hunt, meaning people are demanding somebody be punished and that somebody is Zimmerman. Police in that region are going to be under heavy pressure to make themselves look like they’re fighting racism and thus will be motivated to prove Zimmerman guilty whether or he is. A jury ruling Zimmerman innocent at this point could lead its members being accused of racism and therefore hunted down after the trail, it would be easier for them to simply rule Zimmerman guilty regardless of the evidence. If the grand jury currently decided if this case will go to trail say no I fear for the members of that jury.

Witch hunts are never good because those hunting for witches will find them. If the witch they find isn’t actually a witch they won’t care, in their eyes somebody must be burned at the stake for witchcraft. What I’ve said isn’t a call for finding Zimmerman innocent, nor a call for finding Zimmerman guilty, that is for a jury to decide in my opinion. Racism is an ugly thing because it creates strong emotional hatred in people, hatred that can only be satisfied through physical punishment of somebody. Once racism enters the field it’s impossible for everybody to walk away unscathed. In this case the police department that didn’t detain Zimmerman, the grand jury, and the jury involved if the case goes to trail are all facing potential accusations of racism and their only way out is to rule Zimmerman guilty. This doesn’t set a good foundation for a fair trial, a tragedy because trails should be used to rule innocence or guilt based on objective evidence. If Zimmerman is guilty of murder he should be convicted of such, if he is innocent of murder he should be allowed to walk free. Sadly the mere act of brining up Zimmerman’s potential innocence gets you labeled a racist so it’s not even an easy case to talk about.

The ATF Let Main Gunwalker Suspect Walk

Fast and Furious is the gift that keeps on giving. Not only did the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) arm Mexican drug cartels, only did a border patrol agent get murdered by one of those guns, but the ATF even arrested one of the main suspects they were supposedly looking for and let him go:

The prime suspect in the botched gun trafficking investigation known as “Fast and Furious” — Manuel Acosta — was taken into custody and might have been stopped from trafficking weapons to Mexico’s killer drug cartel early on. But the Bureau of Alcohol, Tobacco and Firearms (ATF) let him go, according to new documents obtained by CBS News.

An ATF “Report of Investigation” obtained by CBS News shows Border Patrol agents stopped Acosta’s truck on May 29, 2010. Inspectors said they found illegal materials including an “AK type, high capacity drum magazine loaded with 74 rounds of 7.62 ammunition underneath the spare tire.” They also noted ledgers including a “list of firearms such as an AR15 short and a Bushmaster” and a “reference about money given to ‘killer.'”

A copy of the report can be found here [PDF]. Let me just start by saying the ATF obviously does some stellar work. I guess when you set up an operation to advance gun control in the United States the last thing you want to do is actually stop the gun running.

The Fast and Furious rabbit hole gets deeper and deeper with each passing day. While I’m generally not one to attribute malice when stupidity and incompetence can explain a scenario, the case of Fast and Furious is looking more like purposeful action on behalf of the ATF than pure bureaucratic incompetence. The very fact that evidence exists showing Fast and Furious was about gun control and that the ATF had, but set free, one of the primary gun smugglers seems like an awfully large coincidence. Of course I will close by stating my cynicism which does make me bias.

The United States is Threatening Sanctions Against India

The United States has had sanctions against Iran for ages now but India hasn’t been playing ball and now the federal government is threatening to declare war on one of supposed allies:

WASHINGTON: The Obama administration is threatening to impose sanctions on India over its continued economic ties with Iran amid disagreements between Washington and New Delhi over how much and how soon the latter is reducing oil imports from the (in US eyes) pariah nation.

India has “failed” to reduce its purchase of Iranian oil and if it doesn’t do so, President Barack Obama may be “forced” to impose sanction, unnamed administration officials were cited as telling Bloomberg wire service. A decision in this regard could come as early as June 28, they added, implicitly offering New Delhi a ten- week window to show a decline in Iranian oil imports.

I said threatening to declare war because sanctions are an act of war. When a country declares sanctions against another they are saying that they will not allow any business within the borders of the state declaring sanctions to trade with the state the sanctions are being declared against. Furthermore the state declaring sanctions is also stating that they are willing to use force to prevent, not only their own businesses from trading, but businesses in other country’s from trading with the target of the sanctions.

India isn’t rolling over and being a good little slave so we’re flexing our muscles. This is the United States foreign police, either do exactly what we tell you or you will suffer greatly. On top of the fact that sanctions are a declaration of war there is also the fact that it’s the people living in the country against who sanctions are being declare, people entirely uninvolved in the politics of the game, who suffer:

High rates of malnutrition, lack of medical supplies, and diseases from lack of clean water were reported during sanctions; at least some of these results were anticipated in advance of the imposition of sanctions.

The modern Iraqi economy had been highly dependent on oil exports; in 1989, the oil sector comprised 61% of the GNP. A drawback of this dependence was the narrowing of the economic base, with the agricultural sector rapidly declining in the 1970s. Some claim that, as a result, the post-1990 sanctions had a particularly devastating effect on Iraq’s economy and food security levels of the population.

Shortly after the sanctions were imposed, the Iraqi government developed a system of free food rations consisting of 1000 calories per person/day or 40% of the daily requirements, on which an estimated 60% of the population relied for a vital part of their sustenance. With the introduction of the Oil-for-Food Programme in 1997, this situation gradually improved. In May 2000 a United Nations Children’s Fund (UNICEF) survey noted that almost half the children under 5 years suffered from diarrhoea, in a country where the population is marked by its youth, with 45% being under 14 years of age in 2000. Power shortages, lack of spare parts and insufficient technical know-how lead to the breakdown of many modern facilities.

To think the megalomaniac we have in the Oval Office won a Nobel Peace Prize shows how meaningless that prize really is.

Yet Another Reason to Hate the United Nations

The collectivists absolutely adore the United Nations (UN), which isn’t surprising since the UN is basically a conglomerate of world governments that believe the world needs more powerful governments. It seems many people buy into the UN propaganda and believe it to be a force for good, which leads people to instantly scoff at the idea of the United States pulling out of the UN. Via episode 392 of the No Agenda podcast I came to this wonderful article that describes this official UN document [PDF]. The linked article goes through numerous items listed in the UN document but Article 33 is easily the most tyrannical:

Parties shall develop or strengthen demographic policies in order to achieve
sustainable development. To this end, the Parties shall:

(a) conduct studies to estimate the size of the human population their
environment is capable of supporting and develop programmes relating
to population growth at corresponding levels;

(b) cooperate to alleviate the stress on natural support systems caused by
major population flows;

(c) cooperate as requested to provide a necessary infrastructure on a
priority basis for areas with rapid population growth;

(d) provide to their populations full information on the options concerning
family planning; and

(e) provide for long-term resettlement of persons displaced by changing
environmental conditions.

Article 33 is intended to give effect to Article 16 (Integrated Policies) of the Draft Covenant, by requiring that Parties adopt demographic policies that are supportive of sustainable development.285 This provision favours action by each Party on an individual basis, with assistance from other Parties only when requested. Sustainable development is to be understood as an individual goal of each Party. It is to this end that “appropriate” demographic policies are to be developed and strengthened (see Article 12 (Common but Differentiated Responsibilities)).

The provision includes four mandatory actions, although the list is not exhaustive. Subparagraph (a) contains a two-fold obligation for each Party: the first is to conduct a regular census of its population and then on the basis of the results to estimate the carrying capacity of its environment; the second is to develop or strengthen appropriate programmes adapting population growth accordingly. The means of so doing are left to the discretion of each Party, consistent with other international obligations.

So signatories to this document are expected to calculate the maximum population sustainable by their environment and take action to ensure their population doesn’t exceed this maximum. The method used by each signatory to control their population is left to their discretion. This leads to an interest question, what happens if the chosen method of population control is genocide? Will the UN oppose the genocide or will they be OK with is so long as it’s being done to control the population?

I’m currently reading Undercurrents by Robert Buettner. In it there is a planet called Yavet that has stringent population control, if you have a child without a license that child is ruled guilty of a capital crime and is summarily executed. Illegally born children who manage to survive and escape the planet are turned over to bounty hunters who get paid for retrieving and/or executing the illegal. This sounds like a plan the UN could get behind.

Either way this becomes far more interesting when you look at the requirements, namely each signatory is supposed to calculate the maximum population that their environment can support. How the fuck is anybody supposed to calculate such an unknowable ever-changing thing? Such a thing is very similar to the economic calculation problem presented by Ludwig von Mises. There is no feedback mechanism available when calculating something like a maximum sustainable population, and ever-improving technologies mean the maximum sustainable population is ever-increasing. Furthermore the market is best suited for determining such things as a reduction in available resources brought on by a higher population will lead to an increase in the price of said resources, an increase that will likely cause parents to have fewer children.

We see population explosions in less technologically developed nations for many reasons including the need for labor on subsistance farms, high infant mortality rate, and high mortality rate of other people due to disease and famine. All of these problems can be greatly alleviated by advancements in technology, which is why the population that is sustainable in more technologically developed nations is higher. The market helps with this process as innovators are motivated to develop replacements for resources that become increasingly more expensive as they diminish due to use. As markets can’t be calculated, maximum populations that can be sustained by an environment also can’t be calculated.

The UN is a despicable organization that attempts to bring socialistic central planning to the entire world. Central planning, like so many other failed ideas, won’t work simply because it’s done again harder. They say a sign of insanity is doing the same thing over and over against while expecting different results. If that’s the case then the UN, and the people who believe in it, are some of the most insane individuals on the planet.

I Love My Ford Ranger

Say what you will about the Ford Range; it’s not fuel efficient, it’s not fast, and it certainly isn’t big; but it is easy to change the oil on without the assistance of a hoist. I live in an apartment complex so my access to actual equipment needed in the repair and maintenance of automobiles is fairly limited. My father does own an autoshop but lives three hours away meaning I’m either in for six hours of driving every time I want to change my oil or I can get on my back and do it myself. Thankfully my Ranger is tall enough that doing the latter is actually very easy.

I did experiment with taking my truck to an oil change place but they merely put the wrong filter on (thankfully it was big enough to seal and thus no damage occurred). Needless to say if you want something done right do it yourself.

Some Hero

HAHAHAHAHAHA! My god this is just too much:


Picture nabbed from Facebook

If he’s the hero I don’t even want to meet the enemy. Actually if Bernanke is the hero then a successful free market must be the enemy, so perhaps I do want to meet the enemy. Saying Bernanke fixed the global economy is a perfect case of rewriting history, especially considering the global economy is still circling the toilet bowl.

AK vs. AR

The AK vs. AR debate has been heating up after the following video was posted to demonstrate the AR’s inability to operate when a Twinkie is shoved up its magazine well:

Now that the war is renewed I’m just going to raise my middle finger to all the AK and AR fanboys. Why? Because my Winchester 30-30 doesn’t even have a magazine well to put a Twinkie in so it’s obviously superior to both platforms!

Damn kids and your magazines wells and your Twinkies.