Marx said that quantitative differences become qualitative ones, but a dialogue in Paris in the 1920s sums it up even more clearly: FITZGERALD: The rich are different from us. HEMINGWAY: Yes, they have more money

October 29, 2013 § Leave a comment

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The most heavily reported unauthorized release of Japan’s defense information in recent years concerns a video recording of a Chinese fishing boat ramming a Japan Coast Guard vessel near the Senkaku (Chinese: Diaoyu) islands in September 2010. But the video itself was not classified as a “defense secret,” so its release cannot be considered a breach of the Self-Defense Forces Law (“SDF Law”). The leaker, who was identified as a member of the Japan Coast Guard, was not prosecuted for any crime. However, the 2010 incident incited demands for stronger secrecy protection laws and led to the appointment of a new government committee to study the issue.

The rarity of high profile leaks of confidential Japanese government information is a sharp contrast to the United States, where federal prosecutors have brought as many as eight cases against accused leakers since President Obama took office in 2009. Bradley Manning and Edward Snowden are known all over the world for releasing masses of secret data for publication in mainstream news media and online publishers like Wikileaks.

For open government advocates, one of the most fundamental questions concerns the life cycle of defense secrets. Secrecy designations are ordinarily limited to fixed periods of time. The proposed Designated Secrets Protection Law would set a maximum term of five years. At the expiration of this term, officials could either decide that information remains sensitive and therefore extend the secrecy term or that it is no longer sensitive and the information can be declassified and released to the public or transferred to a public archive for easy access.

When NHK reporters recently asked Defense Ministry officials to describe the life cycle of defense secrets under the 2001 Law, they received a detailed response. During the five-year period from 2006 through 2011, approximately 55,000 records were designated “defense secrets” under the SDF Law. What is the current status of these 55,000 records? According to Defense Ministry officials, 34,000 were destroyed once they reached the end of their fixed secrecy period. When asked how many of the records were de-classified for potential release to the public, the officials delivered a very precise response: one.  read more

PHOTOGRAPH: Li Hui

Ain’t got no time for Western medicine

April 10, 2013 § Leave a comment

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So back to the 70′s, and continuous oil price hikes by a foreign monopolist. All nations experienced pretty much the same inflation. And it all ended at about the same time as well when the price of crude fell. The ‘heroes’ were coincidental. In fact, my take is they actually made it worse than it needed to be, but it did ‘get better’ and they of course were in the right place at the right time to get credit for that.

With the price of oil being hiked by a foreign monopolist, I see two choices. The first is to try to let there be a relative value shift (as the Fed tries to do today) and not let those price hikes spill into the rest of the price level, which means wages, for the most part. This is another name for a decline in real terms of trade. It would have meant the Saudis would get more real goods and services for the oil. The other choice is to let all other price adjust upward to keep relative value the same, and try to keep real terms of trade from deteriorating. Interestingly, I never heard this argument then and I still don’t hear it now. But that’s how it is none the less. And, ultimately, the answer fell somewhere in between. Some price adjustment and some real terms of trade deterioration. But it all got very ugly along the way.

It was decided the inflation was caused by unions trying to keep up or stay ahead of things for their members, for example. It was forgotten that the power of unions was a derivative of price power of their companies, and as companies lost pricing power to foreign competition, unions lost bargaining power just as fast. And somehow a recession and high unemployment/lost output was the medicine needed for a foreign monopolist to stop hiking prices??? And there was Ford’s ‘whip inflation now’ buttons for his inflation fighting proposal, and Carter with his hostage thing adding to the feeling of vulnerability. And the nat gas dereg of 1978, the thing that actually did break the inflation two years later, hardly got a notice, before or after, and to this day.

As today, the problem back then was no one of political consequence understood the monetary system, including the mainstream Keynesians who had been the intellectual leadership for a long time. The monetarists came into vogue for real only after the failure of the Keynesians, who never did recover, and to this day I’ve heard those still alive push for price and wage controls, fixed exchange rates, etc. etc. in the name of price stability.

So in this context the rise of Thatcher types, including Reagan, makes perfect sense. And even today, those critical of Thatcher type policies have yet to propose any kind of comprehensive proposals that make any sense to me. They now all agree we have a long term deficit problem, and so put forth proposals accordingly, etc. as they are all destroying our civilization with their abject ignorance of the monetary system. Or, for some unknown reason, they are just plain subversive.

Thatcher? It was the blind leading the blind then and it’s the same now.  read more

COVER: [unattributed]

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