Tag Archives: Russia

Russia says a fifth of defense budget stolen

open quoteA fifth of Russia’s state defense spending is stolen every year by corrupt officials, dishonest generals and crooked contractors, Russia’s chief military prosecutor said in an interview published on Tuesday.

President Dmitry Medvedev says endemic corruption is holding back Russia’s development, but anti-bribery groups say the problem has become worse since Medvedev was steered into the Kremlin by his mentor Vladimir Putin in 2008.

“Huge money is being stolen – practically every fifth rouble and the troops are still getting poor quality equipment and arms,” chief military prosecutor Sergei Fridinsky told Russia’s official gazette, Rossiiskaya Gazeta. “Every year more and more money is set aside for defense but the successes are not great,” he said, adding that kickbacks and fictitious contracts were being used to defraud the state.

Fridinsky did not give specific figures, but Russia has set more than 1.5 trillion roubles ($53 billion) for national defense in its 2011 budget, indicating theft of more than $10 billion a year from the sector.close quote (Read more from news.yahoo.com)

KGB Agent Tells You What The Illusion Is

* Most emphasis of KGB is in the area of ideological subversion, active measures and psychological warfare, not the Hollywood spy stuff.

* 4 stages
1) Demoralization. It takes 15-20 years of exposure of Marxism Leninism. The process in the US is completed (as of 1985). Most of it is done by Americans to Americans. A demoralized person refuses to believe contrary information.
2) Destabilization. 2-5 years. Economy. Foreign relations. Defense. In defense and economy Marxist Leninist influence is huge.
3) Crisis. 6 weeks.
4) Normalization. Indefinitely. A cynical expression.

* Leftists, like those in academia, are essential to the process of destabilization. They will then see Marxists Leninists come to power (instead of them), and will turn into enemies.

A Walled Wide Web for Nervous Autocrats

Not often I agree with President Putin, but I share his concern. Notice the negative spin the WSJ gives his action, especially in the title.

open quoteAt the end of 2010, the “open-source” software movement, whose activists tend to be fringe academics and ponytailed computer geeks, found an unusual ally: the Russian government. Vladimir Putin signed a 20-page executive order requiring all public institutions in Russia to replace proprietary software, developed by companies like Microsoft and Adobe, with free open-source alternatives by 2015.

The move will save billions of dollars in licensing fees, but Mr. Putin’s motives are not strictly economic. In all likelihood, his real fear is that Russia’s growing dependence on proprietary software, especially programs sold by foreign vendors, has immense implications for the country’s national security. Free open-source software, by its nature, is unlikely to feature secret back doors that lead directly to Langley, Va. close quote (Read more from online.wsj.com)

Trotsky: The Ignorance and the Evil

Many modern day communist wannabe’s cling to the idea that the catastrophic, mass murdering failures of communism can be blamed on bad people being put in charge in the system. “If only Trotsky had risen to power instead of Stalin,” they lament.

This essay is for them. Is is largely a critique of the book “Leon Trotsky” by Irving Howe, Viking Press, 1978, which offers a very tepid criticism of the mass murderer.

Some excerpts:

BACKGROUND:

Leon Trotsky has always had a certain appeal for intellectuals that the other Bolshevik leaders lacked. The reasons for this are clear enough. He was a writer, an occasional literary critic — according to Irving Howe, a very good one — and an historian (of the revolutions of 1905 and 1917). He had an interest in psychoanalysis and modern developments in physics, and, even when in power, suggested that the new Communist thought-controllers shouldn’t be too harsh on writers with such ideas — not exactly a Nat Hentoff position on freedom of expression, but about as good as one can expect among Communists.

Above all, Trotsky was himself an intellectual, and one who played a great part in what many of that breed have considered to be the real world — the world of revolutionary bloodshed and terror. He was second only to Lenin in 1917; in the Civil War he was the leader of the Red Army and the Organizer of Victory.

. . . .

Trotsky lost out to Stalin in the power struggle of the 1920s, and in exile became a severe and knowledgeable critic of his great antagonist; thus, for intellectuals with no access to other critics of Stalinism — classical liberal, anarchist, or conservative — Trotsky’s writings in the 1930s opened their eyes to some aspects at least of the charnel-house that was Stalin’s Russia. During the period of the Great Purge and the Moscow show trials, Trotsky was placed at the center of the myth of treason and collaboration with Germany and Japan that Stalin spun as a pretext for eliminating his old comrades.

THE IGNORANCE:

In analyzing the Tsarist regime, Trotsky had picked up on the strand of Marxist thought that saw the state as an independent parasitic body, feeding on all the social classes engaged in the process of production. This was a view that Marx expressed, for instance, in his Eighteenth Brumaire of Louis Bonaparte.

More importantly, the class character of Marxism itself — as well as the probable consequences of the coming to power of a Marxist Party — had been identified well before Trotsky’s time. The great 19th-century anarchist Michael Bakunin — whose name does not even appear in Howe’s book, just as not a single other anarchist is even mentioned anywhere in it — had already subjected Marxism to critical scrutiny in the 1870s. In the course of this, Bakunin had uncovered the dirty little secret of the future Marxist state:

The State has always been the patrimony of some privileged class or other; a priestly class, an aristocratic class, a bourgeois class, and finally a bureaucratic class…. But in the People’s State of Marx, there will be, we are told, no privileged class at all … but there will be a government, which will not content itself with governing and administering the masses politically, as all governments do today, but which will also administer them economically, concentrating in its own hands the production and the just division of wealth, the cultivation of land, the establishment and development of factories, the organization and direction of commerce, finally the application of capital to production by the only banker, the State. All that will demand an immense knowledge and many “heads overflowing with brains” in this government. It will be the reign of scientific intelligence, the most aristocratic, despotic, arrogant, and contemptuous of all regimes. There will be a new class, a new hierarchy of real and pretended scientists and scholars. [Emphasis added.]

This perspective was taken up somewhat later by the Polish-Russian revolutionist, Waclaw Machajski, who held, in the words of Max Nomad, that — “nineteenth century socialism was not the expression of the interests of the manual workers but the ideology of the impecunious, malcontent, lower middle-class intellectual workers … behind the socialist ‘ideal’ was a new form of exploitation for the benefit of the officeholders and managers of the socialized state.”

Thus, that Marxism in power would mean the rule of state functionaries was not merely intrinsically probable — given the massive increment of state power envisaged by Marxists, what else could it be? — but it had also been predicted by writers well known to a revolutionary like Trotsky. Trotsky, however, had not permitted himself to take this analysis seriously before committing himself to the Marxist revolutionary enterprise. More than that: “To the end of his days,” as Howe writes, he “held that Stalinist Russia should still be designated as a ‘degenerated workers’ state’ because it preserved the nationalized property forms that were a ‘conquest’ of the Russian Revolution” — as if nationalized property and the planned economy were not the very instruments of rule of the new class in Soviet Russia!

It remained for some of Trotsky’s more critical disciples, especially Max Shachtman in the United States, to point out to their master what had actually happened in Russia: that the Revolution had not produced a “workers’ State,” nor was there any danger that “capitalism” would be restored, as Trotsky continued to fret it would. Instead, there had come into an existence in Russia a “bureaucratic collectivism” even more reactionary and oppressive than what had gone before.

. . . .

One slight obstacle was encountered, however, on the road to the abolition of the price system and the market: “Reality,” as Trotsky noted, “came into increasing conflict” with the economic “system” that the Bolshevik rulers had fastened on Russia. After a few years of misery and famine for the Russian masses — there is no record of any Bolshevik leader having died of starvation in this period — the rulers thought again, and a New Economic Policy (NEP) — including elements of private ownership and allowing for market transactions — was decreed.

The significance of all this cannot be exaggerated. What we have with Trotsky and his comrades in the Great October Revolution is the spectacle of a few literary-philosophical intellectuals seizing power in a great country with the aim of overturning the whole economic system — but without the slightest idea of how an economic system works. In State and Revolution, written just before he took power, Lenin wrote,

The accounting and control necessary [for the operation of a national economy] have been simplified by capitalism to the utmost, till they have become the extraordinarily simple operations of watching, recording and issuing receipts, within the reach of anybody who can read and write and knows the first four rules of arithmetic.

With this piece of cretinism Trotsky doubtless agreed. And why wouldn’t he? Lenin, Trotsky, and the rest had all their lives been professional revolutionaries, with no connection at all to the process of production and, except for Bukharin, little interest in the real workings of an economic system. Their concerns had been the strategy and tactics of revolution and the perpetual, monkish exegesis of the holy books of Marxism.

The nitty-gritty of how an economic system functions — how, in our world, men and women work, produce, exchange, and survive — was something from which they prudishly averted their eyes, as pertaining to the nether-regions. These “materialists” and “scientific socialists” lived in a mental world where understanding Hegel, Feuerbach, and the hideousness of Eugen Duehring’s philosophical errors was infinitely more important than understanding what might be the meaning of a price.

Of the actual operations of social production and exchange they had about the same appreciation as John Henry Newman or, indeed, St. Bernard of Clairvaux. This is a common enough circumstance among intellectuals; the tragedy here is that the Bolsheviks came to rule over millions of real workers, real peasants, and real businessmen.

THE EVIL:

Howe puts the matter rather too sweetly: once in power, he says, “Trotsky was trying to think his way through difficulties no Russian Marxist had quite foreseen.” And what did the brilliant intellectual propose as a solution to the problems Russia now faced? “In December 1919 Trotsky put forward a series of ‘theses’ [sic] before the party’s Central Committee in which he argued for compulsory work and labor armies ruled through military discipline….”

So, forced labor, and not just for political opponents, but for the Russian working class. Let Daniel and Gabriel Cohn-Bendit, the left-anarchists from the May days of 1968 in Paris, take up the argument:

“Was it so true,” Trotsky asked, “that compulsory labor was always unproductive?” He denounced this view as “wretched and miserable liberal prejudice,” learnedly pointing out that “chattel slavery, too, was productive” and that compulsory serf labor was in its times “a progressive phenomenon.” He told the unions [at the Third Congress of Trade Unions] that “coercion, regimentation, and militarization of labor were no mere emergency measures and that the workers’ State normally had the right to coerce any citizen to perform any work at any place of its choosing.”

And why not? Hadn’t Marx and Engels, in their ten-point program for revolutionary government in The Communist Manifesto, demanded as point eight, “Equal liability for all to labor. Establishment of industrial armies, especially for agriculture”? Neither Marx nor Engels ever disavowed their claim that those in charge of “the workers’ state” had the right to enslave the workers and peasants whenever the need might arise. Now, having annihilated the hated market, the Bolsheviks found that the need for enslavement had, indeed, arisen. And of all the Bolshevik leaders, the most ardent and aggressive advocate of forced labor was Leon Trotsky.

. . . .

He [Howe] says that in the struggle with Stalin, Trotsky was at a disadvantage, because he “fought on the terrain of the enemy, accepting the damaging assumption of a Bolshevik monopoly of power.” But why is this assumption located on the enemy’s terrain? Trotsky shared that view with Stalin. He no more believed that a supporter of capitalism had a right to propagate his ideas than a medieval inquisitor believed in a witch’s right to her own personal style. And as for the rights even of other socialists — Trotsky in 1921 had led the attack on the Kronstadt rebels, who merely demanded freedom for socialists other than the Bolsheviks. At the time, Trotsky boasted that the rebels would be shot “like partridges” — as, pursuant to his orders, they were.

. . . .

When Trotsky promoted the formation of worker-slave armies in industry, he believed that his own will was the will of the Proletarian Man. It is easy to guess whose will would stand in for that of Communist Man when the time came to direct the collective experiments on the physiological life, the complicated methods of artificial selection and psycho-physiological training, the reconstruction of the traditional family, the substitution of “something else” for blind sexual selection in the reproduction of human beings, and the creation of the superhuman.

This, then, is Trotsky’s final goal: a world where mankind is “free” in the sense that Marxism understands the term — where all of human life, starting from the economics, but going on to embrace everything, even the most private and intimate parts of human existence — is consciously planned by “society,” which is assumed to have a single will. And it is this — this disgusting positivist nightmare — that, for him, made all the enslavement and killings acceptable!

Surely, this was another dirty little secret that Howe had an obligation to let us in on.

Howe ends by saying of Trotsky that “the example of his energy and heroism is likely to grip the imagination of generations to come,” adding that, “even those of us who cannot heed his word may recognize that Leon Trotsky, in his power and his fall, is one of the titans of our century.”

This is the kind of writing that covers the great issues of right and wrong in human affairs with a blanket of historicist snow. The fact is that Trotsky used his talents to take power in order to impose his willful dream — the abolition of the market, private property, and the bourgeoisie. His actions brought untold misery and death to his country.

Questions about Polish Plane Crash

President Obama, Prince Charles, Chancelor Merkel, President Sarkozy, and Prime Minister Berlusconi all canceled their appearance at the funeral on short notice.

Poland refused the Swine Flu vaccine. They had their own Central Bank and wouldn’t submit to the Euro zone. They wouldn’t jump in bed with the IMF and were not suffering a recession but were prospering.

According to the big wobble, “Author of the video seen by everyone by now has been stabbed near Kijow on 4.15 and transported in critical condition to the hospital in Kijow. On 4.16 three unidentified individuals unplugged him from life support system and stabbed him 3 more times. Andrij was pronounced dead that afternoon. Russian government claims it was a coincidence.”

Predictably, CNN’s report reinforces the official explanation and ignores everything unusual, like the shots heard in the video above.

“When I found the first piece of fuselage, I was shocked. It was flimsy, the thin metal easily twisted back on itself.”

“If you look down this bank, you begin to see all these bits of broken wood from the trees where the plane is beginning to hit as its coming down.”

“Looking up at the top, you can really see how the plane cut into them [the trees]. What investigators are going to focus on are the black box recorders. They say they’re still looking at the possibility of human error, the possibility of bad weather, . . . when the crash happened 24 hours ago there was thick fog, and they’re also saying there’s a possibility that it could have been mechanical error, so they’re not ruling out any of those things right now. The bodies have been removed from the site here. Most of them already taken to Moscow for identification. ”

Talk about framing the debate.

What Soviet Medicine Teaches Us

Another fantastic essay by Yuri Maltsev of the Mises Institute:

In 1918, the Soviet Union became the first country to promise universal “cradle-to-grave” healthcare coverage, to be accomplished through the complete socialization of medicine. The “right to health” became a “constitutional right” of Soviet citizens.

The proclaimed advantages of this system were that it would “reduce costs” and eliminate the “waste” that stemmed from “unnecessary duplication and parallelism” — i.e., competition.

These goals were similar to the ones declared by Mr. Obama and Ms. Pelosi — attractive and humane goals of universal coverage and low costs. What’s not to like?

The system had many decades to work, but widespread apathy and low quality of work paralyzed the healthcare system. In the depths of the socialist experiment, healthcare institutions in Russia were at least a hundred years behind the average US level. Moreover, the filth, odors, cats roaming the halls, drunken medical personnel, and absence of soap and cleaning supplies added to an overall impression of hopelessness and frustration that paralyzed the system. According to official Russian estimates, 78 percent of all AIDS victims in Russia contracted the virus through dirty needles or HIV-tainted blood in the state-run hospitals.

Irresponsibility, expressed by the popular Russian saying “They pretend they are paying us and we pretend we are working,” resulted in appalling quality of service, widespread corruption, and extensive loss of life. My friend, a famous neurosurgeon in today’s Russia, received a monthly salary of 150 rubles — one third of the average bus driver’s salary.

In order to receive minimal attention by doctors and nursing personnel, patients had to pay bribes.

. . . .

Not surprisingly, government bureaucrats and Communist Party officials, as early as 1921 (three years after Lenin’s socialization of medicine), realized that the egalitarian system of healthcare was good only for their personal interest as providers, managers, and rationers — but not as private users of the system.

So, as in all countries with socialized medicine, a two-tier system was created: one for the “gray masses” and the other, with a completely different level of service, for the bureaucrats and their intellectual servants. In the USSR, it was often the case that while workers and peasants were dying in the state hospitals, the medicine and equipment that could save their lives was sitting unused in the nomenklatura system.

. . . .

Socialized medical systems have not served to raise general health or living standards anywhere. In fact, both analytical reasoning and empirical evidence point to the opposite conclusion. But the dismal failure of socialized medicine to raise people’s health and longevity has not affected its appeal for politicians, administrators, and their intellectual servants in search of absolute power and total control.

Most countries enslaved by the Soviet empire moved out of a fully socialized system through privatization and insuring competition in the healthcare system. Others, including many European social democracies, intend to privatize the healthcare system in the long run and decentralize medical control. The private ownership of hospitals and other units is seen as a critical determining factor of the new, more efficient, and humane system.

(Read more at mises.org)

US destroyer anchors off Georgia for exercises

As much as I sympathize with former Soviet states, this is none of our damn business.

“(AP) – A U.S. guided missile destroyer dropped anchor Tuesday in Georgia’s Black Sea waters ahead of joint naval exercises seen as a show of American support for the former Soviet nation crushed in last year’s war with Russia.” (Read more from google.com)

Dear Government,

Please find ways to keep yourselves entertained that don’t involve taking my money and jeopardizing my safety. I recommended getting hammered for the length of your terms in office. I’ll even chip in to buy the booze.

Respectfully,
LostRepublic

The Decline and Fall of Gorbachev and the Soviet State

Wow. This is a long, FANTASTIC essay by Austrian Economist Yuri Maltsev. Full version available here.

Lenin’s slogan, “Marxism is Almighty Because It Is True,” was displayed practically everywhere in the former Soviet Union.

I once met an Indian translator hired by the Political Publishing House to translate 50 volumes of the Collected Works of Marx and Engels into Malayalam. He complained the project was stalled because the Soviet propaganda officers could not find another Malayalam translator to cross check his work. . . .

In the Soviet Union, Marxism was not thought to be just an economic theory. It pretended to be the universal explanation of nature, life, and society. . . . In the name of Marxism, the death toll reached 100 million; the rivers of blood flowed from Russia to Kampuchea, from China to Czechoslovakia.

Hatred was the chief motivator of the socialist revolutionaries and their followers. Lenin regarded politics as a branch of pest control; the aim of his operations was the extermination of cockroaches and bloodsucking spiders, the myriad persons who stood in the way of his political ambitions. Yet Western hagiographers have glossed over this atrocious ruthlessness of Marxists, as historian Richard Pipes has documented. . . .

One of the common denominators between Leninists and government interventionists in the West is the belief that the problems of monopoly are the problems of ownership: only private monopolies acting out of greed are harmful. These institutions are suppressing scientific and technical progress, polluting the environment, and engaging in other conspiracies against public well-being. Government monopolies, however, were believed to be ethical and upright; they substituted the “greed” of the profit motive with a “societal interest.” Yet group bureaucrats who manage and operate the public sector are no less self-interested than those who manage and operate private business. One important difference exists, though: unlike private entrepreneurs, they are not financially responsible for their actions and they operate without institutional constraints of cost control that private property and competition induces. The enlightened minds of planners and technocrats cannot overcome the problem of economic calculation without market signals. . . . [emphasis added]

The failure of socialism in Russia, and the enormous suffering and hardship of people in all socialist countries, is a powerful warning against socialism, statism, and interventionism in the West. . . .

It is beyond the capacity of economic analysis to calculate the opportunity costs of the socialist experiment in Russia. But the human death toll from Stalin’s collectivization, purges, and Gulags is estimated by Russian historian Roy Medvedev at forty-one million people. . . .

“Despite the recent collapse of socialism and communism in Soviet Russia and Eastern Europe, socialism is alive and growing,” Gary Becker has said.

The Austrian school is also the historical bete noire of the Marxian school. Long before any other school came around to understanding the deep flaws in the Marxian approach, the Austrians had devoted an enormous amount of intellectual power to exposing its fallacies and dangers. Carl Menger refuted the labor theory of value, his student Eugen von Böhm-Bawerk demolished Marx’s views of capital, F.A. Hayek showed the incompatibility between socialism and political freedom, and Ludwig von Mises attacked the core of socialist economic theory.

It was Mises’s criticism that has proven to be the most prescient. In his 1920 essay “Economic Calculation in the Socialist Commonwealth,” he argued that the socialist economy couldn’t properly be called an “economy” at all, since the system provides no means for rationally allocating resources. It abolishes private property in capital goods, thereby eliminating the markets that produce prices with which to calculate profit and loss. The absence of rational economic calculation, and the institutional structures that undergird it, prevents any realistic assessment of the proper uses and opportunity costs and resource allocation options. “As soon as one gives up the conception of a freely established monetary price for goods of a higher order,” Mises wrote, “rational production becomes completely impossible.” The central planners of an industrial economy will find themselves in a perpetual state of confusion and ignorance, “groping in the dark.”

“One may anticipate the nature of the future socialist society,” he said seventy years before the rest of the world was to become convinced. “There will be hundreds and thousands of factories in operation. Very few of these will be producing wares ready for use; in the majority of cases what will be manufactured will be unfinished goods and production goods. . . Every good will go through a whole series of stages before it is ready for use. In the ceaseless toil and moil of this process, however, the administration will be without any means of testing their bearings.” . . .

Gorbachev’s original theory was that the socialist system was in good working order, but the people, the cogs in the communist machine, had taken to laziness, drunkenness, and were accumulating “dishonest income” in violation of socialist ethics. His first reform was to call for “a restructuring of people’s thinking.”

The anti-alcohol campaign began right away. Party bosses sternly announced that they didn’t want any “drunks” in their country. Their enforcers began a concerted effort to discover anyone with the smell of alcohol on their breath and haul them into the police station. When the police stations became overcrowded, it became routine practice to drive thousands of people about fifteen miles out of town and drop them in the cold and dark. Nearly every night, you could see armies of so-called drunks walking miles back to town in the middle of winter.

Over 90 percent of liquor stores were closed. The Party bosses did not anticipate what happened next: sugar, flour, aftershave, and window cleaner immediately disappeared from the shelves. Using these products, the production of moonshine increased by about 300 percent in one year.

The predictable result was a heavy loss of life. From 13,000 to 25,000 people died from drinking poisonous homemade alcohol. Many more died standing in lines for five hours to get the little bit of official liquor that was left. . . .

Price controls in cooperative markets were strictly enforced, so that all prices had to be the same as in state stores. For example, beef was supposed to be 4 rubles per kilo. As a working economist in Moscow, my first thought was, “all beef will disappear from the market.” But when I went to the market to see what was going on, to my surprise beef was available. It turns out that farmers were shrewdly selling 4 rubles’ worth of beef, but attached would be a huge dinosaur-sized bone that brought the total weight to one kilo. With a complex system of selling meat plus huge bones, supply and demand met and there were no meat shortages.

Things were different in the market for rabbit meat, which was supposed to sell for 3 rubles per kilo. It was impossible to find a bone heavy enough to add to the total weight that could also have plausibly come from a rabbit. Rabbit meat disappeared very quickly. . . .

The most visible results of the campaign against dishonest income were an increase in bribes and a reshuffling of power in favor of the bureaucrat-led mafia. Soviet bureaucrats were always pleased when new laws were passed because it gave them a chance to extract even more bribes. . . .

I once knew a man who was head of a huge, multi-hundred-thousand-ruble furniture manufacturing enterprise. He did his best to stay away from underground activities, and on his salary he could afford to. But he had an enemy in the Party, and one day he got a visit from a policeman accusing him of dishonesty in record keeping. (Police work is a highly valued occupation because of the opportunity for receiving bribes.) Instead of paying the appropriate bribe, the man maintained his innocence. Then a team of six accountants came into his offices and combed through his records over a period of weeks. Finally, they found a 34-ruble mistake, which they said was deliberate dishonesty.

After a hearing, the state attorney threatened the man with eight years in prison. His own attorney, whom he had to bribe, told him the best solution was to pay 15,000 rubles — divided among the prosecutors, the bureaucrats, and the judge — so the affair could end. . . .

After wreaking havoc on the economy through his first two campaigns, Gorbachev initiated a third: in favor of “labor discipline,” that is, forcing people to show up on time and work harder. In this, Gorbachev was following a similar campaign by his mentor Andropov (who had people rounded up in the streets and destroyed their lives for not acting like slaves). Gorbachev initiated harsh measures against “lazy” people, making it easier to find and prosecute anybody the government did not like. If a person was absent for three hours, they would lose their job. Instead of giving two weeks’ notice to change jobs, employees had to give two months’. . . .

Gorbachev’s final effort, before he began speaking about “the market,” was a short-lived campaign for new “quality” standards. The central plan had always emphasized the quantity of output, but never the quality. So 150,000 new bureaucrats were hired to oversee the “quality of output.” . . . resulting in more bribes and more failure. . . .

A young man from a peasant family I knew had heard that market activity was legal, and decided to raise a pig to sell in the market. For six months, this hopeful entrepreneur devoted his time and money to caring for it and feeding it, hoping he would earn twice his money back by selling it. Never was a man so happy as when he took the pig to market one morning. That night I found him drunk and depressed. He was not a drinker, so I asked him what happened. When he arrived at the market, a health inspector immediately chopped off a third of the pig. The inspector said he was looking for worms. Then the police came and picked the best part of it, and left without even saying thank you. He had to pay bribes to the officials in charge of the market to get a space to sell what was left. And he had to sell the meat at state prices. By the end of the day, he earned barely enough to buy one bottle of vodka, which he had just finished drinking. This was Gorbachev’s new market in a nutshell. . . .

Henry Kissinger, the Nobel Prize Committee, and many others have given credit to Gorbachev for the events of 1989 in Eastern Europe, which brought down the communist regimes there. Gorbachev’s real strategy in those countries, however, was to replace the old-guard Stalinists (with poor images) with young men like himself who drank the same brands of brandy. He hoped he could put smoother, smarter men in power in an effort to save socialism. The situation fell out of his control, largely because the KGB had misinformed him about how deep the hatred toward socialism was in those countries. The revolutions of Eastern Europe happened in spite of Gorbachev, not because of him. . . .

Western academics and media pundits found his support for socialism charming, if a little outdated. But the people who lived under the system felt differently. They knew socialism had proven itself the most destructive ideology in human history — responsible for untold millions of deaths. For those populations onto whom socialism was imposed, it impoverished them, wiped out their cultural heritage, and in many cases, resulted in massive bloodshed.

At his first news conference after the Soviet coup attempt, Gorbachev promised: “I will struggle until the very end for the renewal of this party. I am a true believer in socialism.”

(Read more from mises.org)

Russia backs [partial] return to Gold Standard to solve financial crisis

The best thing about a gold standard is that governments can’t print money, so the stupidity of almost everything they do will be more apparent, as it’d require an increase in taxes or debt.

Interestingly, there is a split in the Austrian School of Economics about the gold standard. I think both these ideas exist in the context of the bank-issued notes, instead of government currency. Murray Rothbard advocated a mandatory 100% gold standard, by which laws would require banks to carry gold for every note they issue. Ludwig Von Mises, while believing this was best, didn’t trust government to wield that power. He advocated “free banking,” which would allow banks to debase their notes, and customers to make decisions accordingly.

I’m partial to Mises’s free market approach, but followers of the Austrian School all agree on one thing: government control of the printing press is very, very bad.

“Russia has become the first major country to call for a partial restoration of the Gold Standard to uphold discipline in the world financial system.” (Read more from telegraph.co.uk)

China, Russia call to replace dollar as global reserve currency

“China says it wants a new global currency that is weighted with the values of the major currencies of the world including the dollar, the yen, and the sterling, among others.

China is believed to have at least $1.2 trillion in US currency of its $2 trillion strong currency reserves.

China’s concern is if the U.S. begins to print money to pay debt and stimulate the economy, its own currency will lose significant value.

Most recently, about a week ago, the top Russian bank was also pushing for a new global reserve currency for the same reasons and to also strengthen Russian influence in the world.” (business2press.com)

If this is what they’re saying publicly, imagine what they’re saying privately.