MCViewPoint

Opinion from a Libertarian ViewPoint

The Taxpayers Bailed Out Yellow Trucking. It Went Bankrupt Anyway. | Mises Wire

Posted by M. C. on August 15, 2023

Despite having two board seats, the Teamsters accept no blame in Yellow’s downfall.

https://mises.org/wire/taxpayers-bailed-out-yellow-trucking-it-went-bankrupt-anyway

Doug French

After ninety-nine years in business, Yellow, one of the nation’s biggest trucking companies, shut down. The company has more than twelve thousand trucks and employed thirty thousand, with twenty-two thousand of those jobs held by Teamsters.

If you are a taxpayer, you know all this, your government being a 29.6 percent shareholder of Yellow and all. The Trump administration’s Coronavirus, Aid, Relief, and Economic Security (CARES) Act dished out $500 billion to businesses, states and municipalities as a result of the coronavirus. Yellow Corporation received $700 million of the $735.9 million set aside for national security loans.

The loan had two tranches, tranche A was $300 million to cover union healthcare and pension liabilities, plus lease and interest payments. Tranche B was for tractors and trailers. Interest for tranche A was the London interbank offered rate (LIBOR) plus 3.5 percent (1.5 percent of it to be paid in cash and 2.0 percent in kind) and interest for tranche B was LIBOR plus 3.5 percent (all cash). These attractive terms are the reason the government required equity in the firm as a condition of the loan.

“Since the CARES Act did not define the term ‘business critical to maintaining national security,’ the Treasury had virtually unfettered discretion to define this term,” says a special report of the Congressional Oversight Commission that investigated the loan.

Back in 2020, the Defense Department figured other trucking companies could replace Yellow’s government work should the company go out of business, so the department was going to recommend a no to issuing the loan. But “one day after Defense Department officials notified the Treasury that the Defense Department would likely not certify Yellow as critical to maintaining national security, the Treasury requested an urgent call with Secretary Esper, which took place on June 26, 2020.” After Treasury secretary Steven Mnuchin called the defense secretary, “Esper certified Yellow as critical to maintaining national security the same day as the call, June 26, 2020, and the Treasury finalized the loan to Yellow on July 7, 2020.”

According to the Wall Street Journal, “Esper declined to comment. He has previously said he made the certification at the recommendation of Pentagon staff.”

According to the special report, Yellow spent $570,000 on lobbying in 2020 but nothing the year before. The company had been in close touch with the White House and “had discussed how the company employs 24,000 drivers who are part of the International Brotherhood of Teamsters (“Teamsters”) union.”

Teamsters president Jimmy Hoffa allegedly “had reached out to the Trump administration and . . . was seeking a meeting with the Secretary of Defense to advocate for Yellow’s national security loan application.”

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Magical Thinking

Posted by M. C. on August 14, 2023

Magical thinking is all around us. It is difficult to escape from it, wherever we turn.

Wokesters who favor the minimum wage can typically be relied upon to also champion foreign aid. But this is a downright self-contradiction. For if they were correct in the first of these positions, there would simply be no justification for the latter. People in poor countries, “developing” ones too, could simply be told that the foreign aid spigot was being turned off, and that they should all implement a minimum wage law, and keep raising its level until poverty was eradicated.

https://substack.com/inbox/post/136010897

Walter Block

“Developing” Countries

There is the fact that nations such as Cuba, Venezuela, several in Africa and south Asia, are commonly characterized as “developing.” In some cases, this is an accurate description as to what is really going on. Others of them are stuck in a rut, neither improving nor worsening. Life goes on there as it always has. But in all too many examples, this appellation is the very opposite of the truth: they are actually retrogressing.

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Why, then, call them “developing?” The hope, presumably, is that this nomenclature will affect reality. One might as well call a rainy day “sunny” in the expectation that the weather will change. If there is a dry spell, one might as well do a rain dance in order to impact the climate in that direction.

Ms.

Nor can we ignore “Ms.” in this context. At one time in our past women were referred to as Miss or Mrs. What was this distinction based upon? Marital status, of course. The former were married, the latter, not. But this distinction was seen as invidious by the forces of political correctness. Women should not be defined by marital status. Marriage, presumably, exploited women, and this was one way of reducing the sway of that evil institution.

In any case, no such distinction was made for men. Well, there was Mister for married men, Master for the unmarried ones but very few people even knew about this. The latter had to go, for obvious reasons (as are, now, grandmaster in chess, master bedroom, etc., now under attack).

White and Black

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New York Times Helps Marco Rubio Push Persecution Of Antiwar Leftists

Posted by M. C. on August 14, 2023

First of all we should point out the irony of an outlet like The New York Times publishing an article accusing anyone of being involved in propaganda. The New York Times has supported every US war and has been run by the same wealthy family since the late 1800s, and it has an extensive history of peddling McCarthyite red scare propaganda throughout the years.

Apparently Rubio has no probs with AIPAC not being registered. In Rubio’s defense neither does anyone on the AIPAC dole (most of congress).

https://substack.com/inbox/post/135960231

Caitlin Johnstone

Citing a recent McCarthyite smear piece by The New York Times, Senator Marco Rubio published a letter on Wednesday that he’d sent to Attorney General Merrick Garland calling for the investigation of American leftist antiwar groups, claiming they are “tied to the Chinese Communist Party (CCP) and operating with impunity in the United States.”

Rubio listed nine organizations that he said should be investigated “for potential violations of the Foreign Agents Registration Act.” Included in Senator Rubio’s blacklist of suspected Chinese foreign agents is the renowned peace activism group Code Pink, which has been drawing attention to the destructiveness of US warmongering, militarism and economic warfare for decades.

“According to the New York Times, many progressive organizations have received funding from Neville Roy Singham, a leftist U.S. citizen who lives in Shanghai and has ties to the Chinese Communist Party (CCP),” Rubio writes. “Yet, none of the entities tied to Singham have registered under the Foreign Agents Registration Act (FARA). The U.S. must enforce its laws more fiercely in the face of foreign adversaries who abuse our open system to advance their malign interests.”

Rubio’s letter is just the latest in the rapidly escalating push within the US government to use FARA to persecute antiwar activists, Chinese nationals in the United States, and those deemed insufficiently hostile toward China. As Amanda Yee recently observed with Liberation News:

“Under Biden, FARA has been invoked to target Black liberation activists like the African People’s Socialist Party for criticizing U.S. involvement in the Ukraine war and Chinese American hotel worker and organizer Li Tang ‘Henry’ Liang for advocating peaceful relations between the United States and China.”

It’s worth taking a close look at the New York Times piece referenced by Rubio, because the ridiculousness of its arguments and the hypocrisy it accidentally exposes are worth drawing attention to.

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Their Similarities Matter More Than Their Differences: Notes From The Edge Of The Narrative Matrix

Posted by M. C. on August 14, 2023

The main difference between US presidents often comes down to the narratives that the empire managers who they surround themselves with will use to explain why they need to advance the interests of the empire. Progressive president? You need to kill Syrians to advance human rights. Conservative president? You need to kill Syrians to protect national security.

One has to be careful on their uptake from a Wikipedia entry. The same with NYT, but you already knew that.

https://www.caitlinjohnst.one/p/their-similarities-matter-more-than?utm_source=substack&utm_medium=email

Caitlin Johnstone

As a result of The New York Times’ McCarthyite hit piece on antiwar leftist groups last week: 

  1. A US senator has called for government investigations of American leftist groups.
  2. A leftist news site has been banned from Twitter
  3. Neville Roy Singham’s Wikipedia page is now a mirror of the NYT piece.

None of this was accidental. This was a blatant imperial narrative management operation. There will be more. The New York Times is a shitty militarist propaganda rag that somehow wound up setting the news agenda for the entire western world.

It’s still forbidden to say the US empire knowingly provoked the war in Ukraine, even though there are mountains of evidence the US knowingly provoked the war in Ukraine, and even though US officials constantly talk about how much the war in Ukraine benefits the US:

If people really understood just how much suffering and destruction is unleashed by US foreign policy, they’d stop making such a big deal about the minor differences between two political parties who always come together to support the most destructive US foreign policy decisions.

The human suffering caused by the minor differences in domestic policy between Democrats and Republicans is dwarfed by the suffering caused by foreign policy bipartisanship by orders of magnitude. The ways they are the same are vastly more significant than the ways in which they differ.

The main misconception about US presidents is that they are proactive leaders when they’re really reactive facilitators. They’re not proactively leading the government in accordance with their vision and ideology, they’re responding to and facilitating the various needs of the empire from year to year. That’s what the empire managers in their administrations are doing with their daily intelligence and national security briefings: explaining to them what the needs of the empire are on that day and what must be done to facilitate those needs, using whatever language will make a given president receptive. 

The main difference between US presidents often comes down to the narratives that the empire managers who they surround themselves with will use to explain why they need to advance the interests of the empire. Progressive president? You need to kill Syrians to advance human rights. Conservative president? You need to kill Syrians to protect national security.

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Why Rome Collapsed: Lessons For the Present

Posted by M. C. on August 14, 2023

As resources are depleted and climate change disrupts the few breadbaskets of the world, which nations will have the foundations of values, organization, resources, human capital and wealth to survive polycrises?

https://www.oftwominds.com/blogaug23/Rome-lessons8-23.html

Charles Hugh Smith

No nation clinging to the current “waste is growth / landfill economy” will survive the emergent global polycrisis.

Identifying why the western Roman Empire collapsed in 476 AD has been a parlor game for at least two centuries, since Edward Gibbon published his monumental The History of the Decline and Fall of the Roman Empire (Abridged). Gibbon concluded Christianity had a major role in weakening the Empire, a view few today share.

Part of the fun of the parlor game is trying to identify the one thing that pushed it over the cliff: poisoning from lead pipes and wine goblets being a famous example that has been discounted by modern historians.

New research is more holistic, considering factors that were ignored or dismissed in the past, such as climate change and pandemics.

The word polycrisis captures this basic view: there wasn’t just one thing that toppled the empire, it was a confluence of crises that together nudged the empire to the breaking point. The empire was still robust and adaptive enough to handle any one crisis, but the onslaught of multiple, mutually reinforcing crises overwhelmed the resources of the empire.

The book The Fate of Rome: Climate, Disease, and the End of an Empire does an admirable job of explaining the polycrisis of reduced crop yields and pandemics.

Another approach is that of Peter Turchin and other historians, who look at social and economic cycles. Turchin holds that the overproduction of elites leads to elite conflicts that weaken the leadership and soaring wealth-power inequality undermines the social coherence of the state/empire. Ages of Discord: A Structural-Demographic Analysis of American History (2016)

End Times: Elites, Counter-Elites, and the Path of Political Disintegration (2023)

Historians such as David Hackett Fischer, author of The Great Wave: Price Revolutions and the Rhythm of History and Thomas Homer-Dixon, author of The Upside of Down: Catastrophe, Creativity and the Renewal of Civilization, examine the role of resource depletion, higher costs and diminishing returns for those doing the work of propping up the empire.

Historian Michael Grant makes the case for moral rot unraveling social coherence in his classic The Fall of the Roman Empire.

Having read all these works and many others on the subject, it seems clear that all of these factors were part and parcel of the polycrisis that brought down Rome. Each factor added to the empire’s already immense burdens while reducing its wealth and resources.

I would highlight three such consequential factors among many:

1. The depletion of the silver mines in Spain, fatally reducing Rome’s money supply.

2. The Vandals conquering the North African breadbasket of Rome in 435 AD. The loss of this major wheat supply doomed Rome to scarcities that could not be made up elsewhere.

3. The decline of trade with India through Egypt as silver and gold supplies diminished, as this trade provided 20% of all Imperial revenues. The Roman Empire and the Indian Ocean: Rome’s Dealings with the Ancient Kingdoms of India, Africa and Arabia

The view substantiated by Peter Heather argues that the Roman Empire was neither on the brink of social or moral collapse, nor fatally weakened by resource depletion. What brought it to an end were the barbarian invasions from what is now Germany and Eastern Europe. The fall of the Roman Empire: a new history of Rome and the Barbarians.

Heather argues Rome’s great success eventually led to its undoing, as the small, loosely organized Barbarian tribes learned from the Romans how to form larger, more cohesive and thus more powerful social and military organizations. Rome’s immense wealth was a magnet that attracted the Barbarians in two ways:

1. They wanted a piece of the rich Roman pie

2. In order to get that slice, they adopted Roman values and methodologies.

As a result of what they learned from Rome, the Barbarians became so formidable that Rome could no longer defeat them militarily, as they could when the tribes were smaller-scale and less cohesive.

Heather points out that late-era Rome faced multiple existential military threats, especially from the resurgent Persian Empire that Rome had battled for centuries. Despite its unwieldy size and bureaucracy, Rome managed effective adaptations that resolved the Persian threat.

Heather notes what other authors have focused on: Rome weakened itself by drawing an artificial distinction between “Barbarians” and “Romans.” Barbarians were anyone not within the Imperial borders, which were well-defined and defended, a point made by Edward N. Luttwak in his classic study, The Grand Strategy of the Roman Empire: From the First Century CE to the Third.

This distinction discounted the Barbarians and elevated the Romans, generating a fatal hubris in the Roman elites and squandering an opportunity to recruit the Barbarian tribes as stable allies. As with all human groups, if the rewards of alliance outweigh the risky gains of conquest, then leaders and their followers will pick alliance over conquest, the success of which is far from guaranteed.

So-called Barbarians became the core of the Roman army, and many of the most competent generals were either from the Roman hinterlands or they were Barbarians.

Rome had long exercised a military-diplomatic policy of defeating the Barbarians when they invaded Roman territories, but then making treaties with the Barbarian leaders that allowed the Barbarians to trade (and thus share the wealth) with Rome and settle within its borders.

In effect, Rome Romanized many Barbarian tribes over the centuries, mostly with “soft power” (diplomacy, sharing the wealth, cultural absorption) rather than “hard power” (military force).

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Every Little Bit of ALL of US

Posted by M. C. on August 14, 2023

DNA, Health Records, Blood, saliva, urine…and oh yah, it is all kept private says the government funded school working for the government health agency.

I am fairly certain the government gets all your health records, as soon as something new is added, from your “health provider”. It probably takes some effort to dig it out so why not kill 2 birds. Make you do the work and in the process get you (more) used to doing what you are told.

See…Feeling better already!

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Jordan Peterson | Club Random with Bill Maher

Posted by M. C. on August 13, 2023

https://youtube.com/watch?v=0EOkC44ZIfo&feature=share

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Writing About Small Things

Posted by M. C. on August 12, 2023

The cicadas were kicking up their usual racket, and I thought of La Fontaine’s fable. In it, the cicada has spent the whole summer singing, but when the north wind begins to bite has nothing left to eat. She asks her neighbor, the ant, for food, which she, the ant, has spent the summer accumulating for wintertime. “You sang all the summer, though,” replies the ant. “Very well, now you can dance.”

Theodore Dalrymple

Source: Bigstock

Chekhov says somewhere that a writer—a real writer, that is—ought to be able to write a story about anything, an ashtray for example.

Actually, I don’t think that that would be so difficult a task: Ashtrays in the old days would have witnessed quite a lot, if they had been sentient and observant. And then, of course, cigarette ends might have quite a lot to say before their demise. The only problem is that readers these days might not know what an ashtray is, for they are seldom put out anywhere for fear of encouraging people to smoke. Gone are the days when every gentleman, whether he smoked or not (though mostly he did), carried an elegant cigarette lighter that he whisked out of his pocket assiduously to light the cigarette of his female interlocutor. Almost certainly, many affairs began this way. Of course, the world must have smelled dreadfully of cigarette smoke, stale and throat-catching—except that, used to it as we were, our throats did not catch. But now I find even a single cigarette smoked on an outdoor terrace intolerable.

To return, however, to the possibility of writing about small things: I am very fond of idly observing the wildlife on the terrace of my tiny additional house in France that I use as my library. There is, for example, a large green lizard (large, that is, by European standards, not by those of the Komodo dragon) that seems to live in the pile of kindling by the disused bread oven of ancient stone. During the season—I am not sure what season, but I suppose it must have something to do with sex—he has a sky-blue head. He is very shy, however, at least with humans, and the slightest movement on my part sends him scuttling back into the sticks.

Then there is a sweet little vole that sticks his head out of a hole in the wall. He, too, is very shy, and he sniffs the air as if the world were full of enemies that he can smell. Of course, there are weasels, badgers, foxes, kites, and owls about, not to mention the one-eyed ginger-and-white moth-eaten feral cat that always slinks away guiltily like a politician being asked a difficult question, so I suppose the vole is only being reasonable. Health and safety come first.

But it is the insects that I enjoy watching most.

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“National Greatness” Is Not the Appropriate Response to “Wokeism” | Mises Wire

Posted by M. C. on August 12, 2023

A policy of high tariffs would require the state to pick winners and losers, and this is even more true of the massive partnership between business and the state that David Goldman advocates to promote research and development. Whether this is the path to American “greatness” must be left for others to determine. Certainly it is not the path to liberty.

https://mises.org/wire/national-greatness-not-appropriate-response-wokeism

David Gordon

Up from Conservatism: Revitalizing the Right after a Generation of Decay
Edited by Arthur Milikh
Encounter Books, 2023; 328 pp.

The contributors to Up from Conservatism, most of whom are associated with the Claremont Institute, think that “movement” conservatism has failed, in large part through acceptance of the premises of the Left. The Right needs to carry the battle to the enemy, aiming at its destruction and its replacement by a sounder regime. The contributors include Michael Anton, David P. Goldman, Scott Yenor, and, much in the news of late, Richard Hanania, and their essays make many useful points; but the book suffers from a fatal flaw.

On the one hand, it protests against the tyranny of the state; but on the other, it calls for the expansion of that very state to bring about its own favored goals. A leftist “woke” state is bad; not so a “national greatness” state. The contributors differ among themselves, and it would be wrong to impute the statist proclivities of some of them to the others, but this is a book divided against itself.

Many of the contributors find disturbing the “woke” movement, which holds that because of past oppression of “protected” groups, members of these groups must receive preferential treatment today. Those who dissent from this view are ruthlessly suppressed, and the inquisitorial powers of the state are deployed against them. According to Joshua Mitchell and Aaron Renn, the “woke” movement has become a religion, and unbelievers must be cast out from society. They write:

Identity politics, . . . now upon us, immanentizes the scapegoat, a Christian heresy, while at the same time affirming that a scapegoat is necessary to take way the sins of the world—an article of Christian faith. . . . Man’s stain is still the consuming issue. But moral cleanliness and purity are not purchased through Christ; instead they are purchased by scapegoating another person or group said to be responsible for the sins of the world. “Not all of mankind is unclean,” declare our identity politics priests, “just the white race”. . . . The unclean must be purged from our midst. . . . In the New Awakening that is identity politics, cathartic rage is directed toward whiteness and all that it has supposedly wrought. (emphasis in original)

As Robert Delahunty notes, the FBI and other national security agencies have become a “deep state,” able to spy on those who incur the displeasure of the government and to harass them:

There is a growing risk that the vast and intrusive state security apparatus created during the War on Terror might now be turned against legitimate political opposition within the country, and that manufactured fears of domestic extremism might be used to justify repressive measures. . . . the actual practice of the Justice Department and FBI under Biden strongly suggests that the focus of “domestic security” investigations will be political conservatives exercising their constitutional rights, such as parents of school children objecting to mask mandates, pro-life activists and licensed gun owners. . . . For the Biden administration and the intelligence community that services it, violent left-wing domestic extremism seems invisible.

One would think that the lesson from this abuse of power is to curtail the powers of these nefarious agencies, and Delahunty deserves great credit for considering their outright abolition. He says:

Proposals not merely to reform but to abolish the FBI have been raised over many years on both the civil libertarian Left and the antistatist Right. The FBI’s proclivity to illegal and unethical conduct seems inscribed in its DNA and its recent shameful attempt to undermine a democratically elected president have [sic] taken its wrongdoing to a new level. The difficulty, however, is that a successor agency, even If populated by an entirely new staff, would likely return to the current agency’s patterns and practices if it were to possess the same powers and responsibilities.

Evidently, he does not fully grasp that under the libertarian proposal, there would be no successor agency at all.

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Exchanging the Rust Belt for Military Bases: Foreign Policy and Deindustrialization

Posted by M. C. on August 12, 2023

in the words of Henry Kissinger’s assistant for international economic affairs Fred Bergsten: “Foreign economic policy” has been the abettor of “overall U.S. foreign policy,” and that “foreign policy considerations have dictated the U.S. position on virtually all issues of foreign economic policy.”

https://libertarianinstitute.org/articles/exchanging-the-rust-belt-for-military-bases-foreign-policy-and-deindustrialization/

by Joseph Solis-Mullen

depositphotos 11874193 s

While the benefits of trade liberalization in the postwar period have been abundant, readers may be surprised to learn how secondary (or even nonexistent) consideration of such possible benefits were to U.S. policymakers. Rather, trade liberalization following World War II was primarily conceived in terms of political and security priorities. As an April 1950 report by the Bureau of the Budget put it: “Foreign economic policies should not be formulated in terms primarily of economic objectives. They must be subordinated to our politico-security objectives and the priorities which the latter involve.”

As will be shown, because trade as a percentage of GDP would not rise above ten percent until the 1970s, trade policy was seldom front and center in Washington and could therefore be quietly used by policymakers as a bargaining chip to get their way with Western Europe, Japan, and other allies on non-economic matters. As Harry Truman’s Assistant Secretary of State for Economic Affairs put it: “The great question is whether the country is willing to decide in the broader national self-interest to reduce tariffs and increase United States imports even though some domestic industry may suffer serious injury.”

An early example was in 1953, following the “loss of China,” when the National Security Council advised opening the American market to Japanese goods on the grounds that failure to do so might slow Japan’s economy and create an opening for the (non-existent) Japanese communists to exploit. From Harry Truman to Richard Nixon, such necessary strategic interests as the employment of shoemakers in Italy and Spain, farmers in France, or synthetic textile producers in Japan were given priority by officials in the Executive Branch and State Department. Despite occasional attempts by Congress to intervene, the wisdom of those like George Ball, John F. Kennedy’s Undersecretary of State for Economic Affairs, and previously a lobbyist for the newly formed European Economic Community (EEC), triumphed. “Americans,” he said, could “afford to pay some economic price for a strong Europe.”

Indeed, the pursuit of strategic objectives over domestic economic interests would continue into the 1960s, with the Trade Expansion Act of 1962 authorizing the president to make huge discretionary cuts in U.S. tariffs. Ardently advocated for by the Kennedy administration, whose representatives testified before Congress regarding the windfall benefits sure to follow, former FDR administration economist Oscar Gass noted that such further trade liberalization was such a “holy cause” that “decent people were prepared to lie for it.” The act was followed by the so-called Kennedy Round of trade talks (1964-67), which resulted in further such cuts to U.S. tariffs, subsidies, and quotas.

These were decidedly one-sided trade concessions. And so it is important to make clear, particularly as an advocate of actually free trade, that what Washington was creating was deliberately not free trade; it was a policy of asymmetric concessions in the name of maintaining the easy cooperation of allied governments. As one of Nixon’s State Department trade specialists Philip Trezise put it later: “We did make some big tariff cuts and didn’t get any reciprocity. It was quite deliberate.”

But what started as using the American market as an incentive and destination of last resort for anything allies wanted to offload, quickly cut into the American current account once these states had been rebuilt (with U.S. aid and corporate transfers) and Washington’s spending on war and welfare reached unsustainable levels. Indeed, by 1970 Nixon had begun to feel uneasy about the domestic political implications of the policy, cautioning his NSC to “take greater cognizance of the problems of U.S. businessmen and their concerns abroad, even when ultimately they may have to be overridden by foreign policy considerations.”

Unsurprisingly, no real change in policy followed.

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