Daily Archives: 25 January 2011

A Loophole Allows Multiple Counterfeiters of the Euro

open quoteThis link to an Open Europe News Summary Blog reveals that any country in the Euro Zone can print as many Euros as it wishes simply by notifying the European Central Bank. This is why Ireland was able to print 51 billion Euros last week to bail out its banks. Here’s the quote from the Open Europe blog:

The Irish Independent learnt last night that the Central Bank of Ireland is financing €51bn of an emergency loan programme by printing its own money… …A spokesman for the ECB said the Irish Central Bank is itself creating the money it is lending to banks, not borrowing cash from the ECB to fund the payments. The ECB spokesman said the Irish Central Bank can create its own funds if it deems it appropriate, as long as the ECB is notified.

This is very disturbing. In effect it allows mutliple, legitimate counterfeiters to print as much money as they wish; therefore, hyperinflation will ensue very quickly, because each Euro Zone member will have a great incentive to print money as fast as possible before prices go up. This could be the very quick end of the Euro, and it could create chaos in Europe and around the world.

American readers can consider this analogy: it is as if each state of the union could print as many dollars as it wished simply by notifying the Fed. Does anyone doubt that the dollar would collapse into hyperinflation overnight?
close quote (Read more from patrickbarron.blogspot.com)

Drug decriminalization in Portugal and Amsterdam

open quoteVIA Kevin Drum, Keith O’Brien reports in the Boston Globe on a new study showing positive results from Portugal’s nine-year-old experiment in drug decriminalisation. In the late 1990s and early 2000s, rates of hard- and soft-drug usage in Portugal were soaring, along with hepatitis and HIV rates.

Faced with both a public health crisis and a public relations disaster, Portugal’s elected officials took a bold step. They decided to decriminalize the possession of all illicit drugs—from marijuana to heroin—but continue to impose criminal sanctions on distribution and trafficking. The goal: easing the burden on the nation’s criminal justice system and improving the people’s overall health by treating addiction as an illness, not a crime.

But nearly a decade later, there’s evidence that Portugal’s great drug experiment not only didn’t blow up in its face; it may have actually worked. More addicts are in treatment. Drug use among youths has declined in recent years. Life in Casal Ventoso, Lisbon’s troubled neighborhood, has improved. And new research, published in the British Journal of Criminology, documents just how much things have changed in Portugal. Coauthors Caitlin Elizabeth Hughes and Alex Stevens report a 63 percent increase in the number of Portuguese drug users in treatment and, shortly after the reforms took hold, a 499 percent increase in the amount of drugs seized—indications, the authors argue, that police officers, freed up from focusing on small-time possession, have been able to target big-time traffickers while drug addicts, no longer in danger of going to prison, have been able to get the help they need.

Some researchers caution that Portugal’s results may be due not so much to tolerance for drug possession as to making more treatment available. But of course these two always go hand in hand, in any harm-reduction strategy for drug use: it’s only by decriminalising possession that you get problem users to come in for treatment.

Portugal is far from the only country that’s embraced such harm-reduction strategies, and the verdicts everywhere seem to be similar: they may lead to greater usage of soft drugs, they don’t seem to lead to significant increases in hard-drug usage, and they significantly reduce the costs of drug addiction to society. That doesn’t mean that drug policy disappears from the political agenda in countries that move towards harm reduction. The newspapers in the Netherlands reported today on a very American-seeming scandal: a website set up by an association of heroin users in Amsterdam, intended to provide addicts with advice on health and safe non-infectious usage, could be read as effectively providing how-to advice on how to shoot up, accessible to web surfers of any age. A conservative-leaning Dutch youth expert wants the site to be somehow restricted to those over the age of 12. But it’s instructive to read the reaction of a council member from the right-wing, laissez-faire VVD party, which currently leads the Dutch governing coalition:

On the one hand, we must ensure that the lowest possible number of people use that stuff. On the other hand, if they do, they should use clean needles, not borrow them from each other. And they should try to limit the health risks. That’s the perspective from which I look at the site.

This is a perfectly rational conservative perspective. And the fact is that Amsterdam’s heroin-addict population has been stable or falling for two decades. That’s even though, since 2002, the Dutch authorities have been doing something even more radical than Portugal’s for heroin users: they’ve been giving them free heroin, as long as they show up to inject at government-run “safe injection points”, under the eyes of police and health staff. Dutch drug researchers now say that the youth population “doesn’t relate to hard drugs at all”, and that there’s no danger that Dutch kids reading the advice site will find heroin use attractive. They’re more likely to find it pathetic.

Drug abuse is driven to a significant extent by fashion. If there’s one thing government has going for it, it’s the ability to make anything unfashionable. close quote (Read more from economist.com)

U.S.S.A. working to prevent Bolivia from legalizing coca leaf chewing

open quoteBolivia has embarked on an international mission to try to end the ban on chewing coca leaves. But the United States plans on getting in its way.

Coca has been used in the Andes for thousands of years as a mild stimulant and herbal medicine, but it is also a raw ingredient in the drug cocaine.

Bolivia, which argues that chewing coca leaves is part of indigenous culture, hopes to take coca leaves off a UN treaty on banned drugs, BBC News reports.

President Evo Morales, a former leader of a coca growers’ union, argues that it is discriminatory to classify coca as an illicit drug and launched a global campaign after his election in 2005 to legalize it.

. . .

Spain has already given its support to Bolivia’s campaign.

. . .

The United States plans on formally objecting to Bolivia’s proposal on Wednesday, AP reports. It argues that changing the convention would pave the way for other nations to challenge the inclusion of certain narcotics based on parochial reasons.close quote (Read more from globalpost.com)