Yearly Archives: 2012

Crime and Punishment in Australian Business (as in the Former is on the Rise, and Wondering if They Will Ever See the Latter)

Yves here. This is Lambert’s pick, but since I still remember my two years in Sydney fondly, I thought I would comment. Australia is often stereotyped as being 20 years behind the US in a good way: it has a commitment to collective good, a sense of community, and a robust middle class, things that are increasingly wanting in the US. And it has those qualities along with better broadband and first class, cheap healthcare (the offsets are getting used to the seasons being the reverse of up North, having to adopt a footie team, dealing with the onerous documentation requirements of their tax authority, and having most movies get there after you can see them on international flights).

The interesting quality of this article by Houses and Holes is its sense of consternation about what looks like rising corruption in Australia. I don’t mean to sound condescending, but being in a country so much further along in this ugly process, there’s an underlying trust in authorities and process evident in this piece, while those sentiments are in tatters in the US.

Most societies have a level of crooked behavior that they tolerate; the assumption seems to be that these dirty backchannels are sometimes the only efficient way to work around obstacles, and that enough bad guys will be caught and punished to keep the dubious dealing at a manageable level. You can see here a quiet sense of horror, as if someone in a movie sees their hand suddenly changing into something they don’t recognize as human and realize they may be undergoing a fundamental, chthonic transformation.

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Why Occupy Wall Street’s Rolling Jubilee Puts Borrowers at Risk

Last month, I criticized the well meaning but naive strategy of the Occupy Wall Street group Strike Debt for dealing with consumer debt, which is to buy severely discounted debt from debt collectors and forgive it. My main complaint was that there were more productive approaches, such as wider publicity and distribution of the Debt Resistors’ Operations Manual, providing more counseling and legal support to borrowers, and using debt purchases to develop cases against the debt sellers. By contrast, the Rolling Jubilee increases the profitability of bad system by providing more revenues to the incumbents, while the debt purchases are unlikely to do more than help a few random people. It might make for feel-good PR, but it won’t make a dent in the problem.

Perversely the post got pushback on the last (and by implication, the least important) issue raised, namely, that of possible tax problems with the scheme. I wanted to revisit this issue and demonstrate why the responses of allies and members of Strike Debt have failed to put the issue to rest, and more important, why this matters.

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Sepp Holzer: Aquaculture – Synergy of Land and Water

By lambert strether of Corrente.

Sepp Holzer is a high-altitude permaculturalist; his farm is on a mountaintop in the Province of Salzburg, Austria:

Holzer states his path to success began when he realised he had to discard what he’d learned in agricultural college. He set out on a path of observing and emulating natural systems, rather then attempting to control (and, in the process, undermining and destroying) nature. His knowledge rebellion also put him at odds with the Austrian authorities, who fined him several times — and even threatened him with imprisonment — for ignoring regulations on what plants can and cannot be grown in specific regions.

In an interesting examnple of “the test of independent invention,” Holzer devised a practice of permaculture over a couple of decades before encountering the work of Australians Bill Mollison and David Holmgren, who coined the term. Check out the aerial shot of Holzer’s farm starting at 1:09: It’s like a fantasy realm. Except it’s real.

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J. D. Alt: 2020

By J. D. Alt, author of The Architect Who Couldn’t Sing, available at Amazon.com or iBooks. Originally posted at New Economic Perspectives.

Lambert here. I find this fable interesting for two reasons: First, it’s a powerful narrative exposition of what MMT would look like in the real world when put to use for public purpose; and second, the cellphone-enabled “digital lira” of 2020 is screaming out to be simulated by an app in 2012. Perhaps the UMKC buckaroo needs to go digital?

* * *

It was in the year 2020 that a majority of people first began to “see” what money is. For a few months—after the “realization” started hitting the pages, airwaves, blogs, tweets and twits of mainstream media—it became a silly joke: “2020 perfect vision, at last! How could things have been so blurry for so long?” For thousands of years, in fact.

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Dan Kervick: Will We Be the Lamest Generation?

Yves here. Any post that starts out by making fun of Matt Yglesias already has something going for it. But one bit I quibble with. Kervick suggests that Social Security might be excluded from a Grand Bargain. Don’t get too optimistic.

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Why the Fiscal Cliff is a Scam

This is a very good, high level interview of Jamie Galbraith by Paul Jay of Real News Network. It explains how the fiscal cliff scare was created and why Obama and the Republicans are united in fomenting a false sense of urgency. This is the sort of piece I’d suggest sharing with friends and relatives who’ve been unable to miss the news coverage and want to get up to speed.

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Can Open Source Ratings Break the Ratings Agency Oligopoly?

By Professor Krassimir Petrov, who has taught economics and finance in the U.S., Ireland, Bulgaria, Saudi Arabia, Bahrain, Taiwan, and Macau

The current credit-ratings system is a complete farce that has caused damage in the trillions. It needs to be completely reformed into a more transparent, competitive system. An open-source approach presents a perfect solution.

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Obama Signs Bill to Exempt US Airlines from EU Aviation Carbon Tax

I managed to avoid listening to pretty much all of Obama’s election victory speech but managed to click onto a news site that had a streaming video of it, and caught his tepid reference to climate change, a passing comment on “the destructive power of a warming planet.” This wasn’t a commitment of any kind; I took this as a sign simply that the president now feels he has to give global warming lip service.

This news story, of Obama undermining an EU carbon tax, is consistent with that theory.

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