Surprise, surprise another Federal agency is broke! This time, the National Flood Insurance Program, run by FEMA.

I’m also categorizing this under war on commerce, because government run insurance kills business opportunities for entrepreneurs who might insure profitably by actually measuring risk.

In Wilkinson County, Miss., a home has been flooded 34 times since 1978.

Extraordinary as the damage may be, even more extraordinary is that an insurer has paid claims every time, required no flood proofing, never raised premiums after a claim and vowed to continue insuring the house. Forever.

The home’s value is $69,900. Yet the total insurance payments are nearly 10 times that: $663,000.

It’s no surprise that the insurer faces huge financial problems.

The insurer? The federal government. (Read more from usatoday.com)

Bureaucratic management at its finest. I can hear the rebuttal of my socialist friends now: “If we don’t like the way the government does flood insurance, we can vote them out. If it’s a corporation, we’re stuck.”

FOX & ABCNNBBCBS: MOSQUE AT GROUND ZERO! MOSQUE AT GROUND ZERO! THE EERANIANS AR COMIN TO GIT YOU!

Lew Rockwell interviews John Gatto — On Public Education

This is an absolutely fascinating interview. Mr. Gatto was the New York State 2009 public school teacher of the year.

Mr. Gatto quit as a public school teacher in order to stop harming kids. He had discovered that institutional schooling is designed to prevent the natural genius of children from emerging. Public schools impose a state of permanent incompletion to our kids, by teaching habit-training, not intellectual development. The power elite deliberately suppresses independent and critical thinking, to make us obedient citizens and consumers. Gatto, author of the best-selling Weapons of Mass Instruction, Dumbing Us Down, and The Underground History of American Education, discusses how the twenty elite boarding schools teach their students according to ancient principles, and homeschoolers and unschoolers are doing the same.

Gatto’s website

The one and only Peter Schiff on the dollar, bonds, GM’s IPO, the media and more

* Bond Fund manager and Freddie/Fannie-guaranteed mortgage holder Bill Gross advocated the Freddie/Fannie bailout. He has recently suggested government should 100% nationalize Freddie and Fannie, and allow everybody to refinance at a lower rate.

* Bill Gross argued this would stimulate consumer spending and thereby the economy. Of course, what our economy needs is more savings, not spending.

* Real Estate prices are still too high and should never have been propped up. They need to come down. Artificially high prices for homes deprive more productive endeavors of resources.

* Do not buy Government Motors IPO. Some profit might be made by those with good timing, but they will go bankrupt again. The bailout prevent the restructuring they needed. They company is not run to produce good cars at a profit. It is run to serve labor.

* Dollar strengthens despite bad news based on weakness in stocks. Old habits (like buying dollars on bad news) die hard.

* Congressional Budget Office increases deficit estimate, but the estimate remains complete bullshit. Nothing to do with reality.

* Big Media (Robert Reich) continues to sing the praises of debt, and demonize saving.

* Peter’s predictions about Freddie and Fannie come true.

* Refinancing homes at (artificially suppressed) lower rates is creating a ticking time bomb for banks who will be holding 30-year paper. Once the paper becomes worthless there will be rampant bank failures.

* NY Times publishes BS article about why we won’t have a recession. Sheer propaganda. The implicit argument is that a zero Fed rate will avoid a recession. This is nonsense.

* Bonds remain overpriced, as Americans who attempt to save decide to lend money to the government. Inflation will punish bond-buyers.

* A better scheme for unemployment benefits would be an initial lump sum. This would avoid the disincentive to work. Of course, we’d all be better off if people decided for themselves whether or not to buy unemployment benefits, creating a market for various flavors of unemployment insurance.

* Peter has bet against the advice he gives. If the government actually followed his advice, it would undermine his investments.

* The sooner the crash happens, the better, because the longer the malinvestment persists, the more effort it will take for the economy to restructure.

Blackwater/Xe founder relocating to UAE

Erik Prince, the founder of the notorious security company Blackwater/Xe, has left the United States and is settling with his family in Abu Dhabi, the capital of the United Arab Emirates.

Prince, 51, personally is not facing any criminal charges for now, but his company, now known as Xe Services LLC, has been implicated in a series of scandals related to its operations in Iraq, Afghanistan, and elsewhere, court documents say. (Read more from presstv.ir)

Obama Boasts About Auto Bailout Results In Detroit

President Barack Obama Friday sought to rally support around the government intervention to keep General Motors and Chrysler afloat.

Obama, speaking during visits to GM and Chrysler plants in Michigan, sought to highlight the benefits to workers at the now-revived companies to blunt criticism of the federal bailout, one of the most frequently criticized actions of his presidency so far. (Read more from rttnews.com)

Reaction #1:

B-R-O-K-E-N W-I-N-D-O-W F-A-L-L-A-C-Y !!!!!!!!11

Reaction #2:

double face palm

Cops: Man charged after referring to Conn. rampage

Police: Man arrested at Conn. company for saying he understood mindset of shooter who killed 9

Connecticut police say they arrested a man at a management company after he mentioned the shooting rampage across the state that killed nine people and said he understood the killer’s mindset.

Fifty-eight-year-old Francis Laskowski of Derby was charged with breach of peace Wednesday after making the comments while working at Fusco Management Co. in New Haven. (Read more from rawstory.com)

Enter the thought police.

Sweden drops rape accusation against founder of WikiLeaks

Swedish authorities say they have revoked an arrest warrant that had alleged rape against Julian Assange, the founder and editor of the whistle-blowing website WikiLeaks, less than a day after issuing it.

Assange is “no longer wanted” and “is not suspected of rape,” Chief Prosecutor Eva Finne said in a statement posted on the agency’s official website Saturday. He is also no longer arrested in absentia, the statement said. (Read more from cnn.com)

This is either a failed setup, a smear, or a threat. Wikileaks has pissed off some very powerful people.

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.

Ron Paul on the Mosque debate: “Nero fiddled while Rome burned”

“Is the controversy over building a mosque near ground zero a grand distraction or a grand opportunity? Or is it, once again, grandiose demagoguery?

“It has been said, “Nero fiddled while Rome burned.” Are we not overly preoccupied with this controversy, now being used in various ways by grandstanding politicians? It looks to me like the politicians are “fiddling while the economy burns.”

“The debate should have provided the conservative defenders of property rights with a perfect example of how the right to own property also protects the 1st Amendment rights of assembly and religion by supporting the building of the mosque.

“Instead, we hear lip service given to the property rights position while demanding that the need to be “sensitive” requires an all-out assault on the building of a mosque, several blocks from “ground zero.”

“Just think of what might (not) have happened if the whole issue had been ignored and the national debate stuck with war, peace, and prosperity. There certainly would have been a lot less emotionalism on both sides. The fact that so much attention has been given the mosque debate, raises the question of just why and driven by whom?

“In my opinion it has come from the neo-conservatives who demand continual war in the Middle East and Central Asia and are compelled to constantly justify it. (Read more from caffeinatedthoughts.com)

Portland lemonade stand runs into health inspectors, needs $120 license to operate

It’s hardly unusual to hear small-business owners gripe about licensing requirements or complain that heavy-handed regulations are driving them into the red.

So when Multnomah County shut down an enterprise last week for operating without a license, you might just sigh and say, there they go again.

Except this entrepreneur was a 7-year-old named Julie Murphy. Her business was a lemonade stand at the Last Thursday monthly art fair in Northeast Portland. The government regulation she violated? Failing to get a $120 temporary restaurant license.

Turns out that kids’ lemonade stands — those constants of summertime — are supposed to get a permit in Oregon, particularly at big events that happen to be patrolled regularly by county health inspectors.

“I understand the reason behind what they’re doing and it’s a neighborhood event, and they’re trying to generate revenue,” said Jon Kawaguchi, environmental health supervisor for the Multnomah County Health Department. “But we still need to put the public’s health first.”

[The only thing this bureaucrat is protecting is her job.]

. . . . After 20 minutes, a “lady with a clipboard” came over and asked for their license. When Fife explained they didn’t have one, the woman told them they would need to leave or possibly face a $500 fine.

Surprised, Fife started to pack up. The people staffing the booths next to them encouraged the two to stay, telling them the inspectors had no right to kick them out of the neighborhood gathering. They also suggested that they give away the lemonade and accept donations instead and one of them made an announcement to the crowd to support the lemonade stand.

That’s when business really picked up — and two inspectors came back, Fife said. Julie started crying, while her mother packed up and others confronted the inspectors. “It was a very big scene,” Fife said.

Technically, any lemonade stand — even one on your front lawn — must be licensed under state law, said Eric Pippert, the food-borne illness prevention program manager for the state’s public health division. But county inspectors are unlikely to go after kids selling lemonade on their front lawn unless, he conceded, their front lawn happens to be on Alberta Street during Last Thursday.

“When you go to a public event and set up shop, you’re suddenly engaging in commerce,” he said. “The fact that you’re small-scale I don’t think is relevant.”

Kawaguchi, who oversees the two county inspectors involved, said they must be fair and consistent in their monitoring, no matter the age of the person. “Our role is to protect the public,” he said.

The county’s shutdown of the lemonade stand was publicized by Michael Franklin, the man at the booth next to Fife and her daughter. Franklin contributes to the Bottom Up Radio Network, an online anarchist site, and interviewed Fife for his show.

Franklin is also organizing a “Lemonade Revolt” for Last Thursday in August. He’s calling on anarchists, neighbors and others to come early for the event and grab space for lemonade stands on Alberta between Northeast 25th and Northeast 26th. (Read more from oregonlive.com)