Economics, quicklink, US Politics

Much Ado about not much.

The McKinsey Quarterly looks at the incentive effects of the Bush dividend-cut proposal and decides that it, well, is largely a placebo. Won’t hurt, won’t heal, as most shares are held by tax-exempt entities anyway –

“The fact, however, is that tax-paying US individual shareholders own a minority of all US shares?28 percent in 2002, whereas tax-exempt US institutions and individuals who hold shares in tax-exempt accounts owned 61 percent. (The remainder was in foreign hands.) … Since these investors are indifferent to the issue of taxes on their dividends, they are unlikely to set in motion the kinds of changes in their portfolios that would drive up share prices.”

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Iraq, oddly enough, quicklink, US Politics

Saddam Hussein, MBA.

This is good. Condoleeza Rice has presented a new rationale for the current lack of Iraqi WMDs – while admitting that

“Iraq’s weapons of mass destruction program is less clear-cut, and probably more difficult to establish, than the White House portrayed before the war”,

she readily explained why that should have been expected anyway – Saddam knew about “Just-In- Time” manufacturing – “Just-in-time assembly” and “just-in-time inventory”. Now really. But speaking of management buzzwords, I guess one could make a real case for Saddam excelling in “global sourcing”… (from the Autralian f2-netowork via Tom Tomorrow).

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compulsory reading, German Politics, Iraq, media, US Politics

Does it matter…

that I forgot to mention Paul Krugman’s latest column so far? It probably doesn’t. The very fact that I am reading his columns confirms that Paul does get sufficient public exposure even without my mentioning him [I wonder – does this sound pretentious or merely ironic to your ears ;-)].

But as Paul Krugman wonders whether it matters that the US population has been misled into war given that it allowed the most powerful military in the world to quite successfully flex its muscles and liberate-slash-conquer Iraq in a blitz, I think I would be guilty of omission should I not mention the column at all.

Now I don’t think that one should expect politicians to be entirely truthful about their motives, all the time. And I think I am cynical enough to say that Krugman is probably not actually expecting that

“… a democracy’s decisions, right or wrong, are supposed to take place with the informed consent of its citizens.”

He certainly knows enough about transaction costs and the reasons for having division of labour in politics, ie representative democracy. But the gist of his argument remains right: It is wrong, if not outright amoral, for the political class of a country to willingly engage in creating wrong perceptions in a major policy area – in Paul Krugman’s words –

“[t]hanks to this pattern of loud assertions and muted or suppressed retractions, the American public probably believes that we went to war to avert an immediate threat – just as it believes that Saddam had something to do with Sept. 11.”

We all know that truth can be a fickle firend sometimes. So it is probably correct to argue, that, in a purely logical sense, the US administration was not ‘lying’ to anyone, just as it claims –

“We were not lying,” a Bush administration official told ABC News. “But it was just a matter of emphasis.” … According to the ABC report, the real reason for the war was that the administration “wanted to make a statement.” And why Iraq? “Officials acknowledge that Saddam had all the requirements to make him, from their standpoint, the perfect target.”

By the way, the same argument can be made for those German union leaders and those within the social democrats who still claim that the German labour market does not need reform. But then again, I am not too sure about their motives being vile. Maybe their own perception has been clouded and they actually don’t know better… in which case we would be back to the old question: what’s better? A political class working against the people’s interest for reasons of a private agenda or for reasons of incompetence, pure and simple.

That’s certainly a tough call. Especially on a sunny socialist holiday ;-). [ author off to a beer garden. ]

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oddly enough, quicklink, US Politics

Bush vs. Masturbation

Following on Sen. Santorum’s recent intervention concerning the legal status of homosexuals’ privacy in the US,

“President Bush is proud to introduce an ambitious new phase in the fight to preserve all that is decent in America. Conceived and championed by the revered Republican think tank Americans for Purity, ‘Operation Infinite Purity‘ is dedicated to the complete eradication of masturbation from American soil by the year 2005.”

From the Whitehouse.org

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US Politics, USA

AAAAAAAAAAction!

Two weeks or so ago, a friend asked me if I knew anything about the budgetary problems California is facing during the current economic bust given a rapid fiscal expansion during the previus – particularly Sillicon Valley powered – economic boom. Well, I had to admit that my knowledge of US state budgetary affairs is minimal, to be exaggerating. But the good thing is, I am not the European who has to know about these things, as another one is apparently about to tackle the problem.

As the London Times explains,

“[e]veryone knew he would be back, but no one thought it would be this soon. Arnold Schwarzenegger, the Hollywood action star turned Republican activist, might get a chance to run for governor of California in September, three years earlier than expected.

As the article reports, the budgetary problems have (how surprising) caused a decline in the current governor Gray’s popularity. This has led some activists to try to gather some 900.000 signatures needed to challenge the sitting governor ahead of the end of his term, which would be 2006. So these people apparently decided to ask the Terminator, who was apparently expected to run for governor in 2006 anyway, to run on their ticket now. For a reason:

“Political strategists believe that, after the war in Iraq, Mr Schwarzenegger’s gung-ho, machinegun-toting image would be more attractive to voters than ever. Even historically liberal Californians might elect a Republican, they say.”

But for all his advantages there’s a drawback.

The heavily-accented Mr Schwarzenegger, … makes President Bush look like a natural orator.”

But then again, Ronald Reagan, to make the obvious comparison, even rehearsed press-conferences as President. So isn’t the biggest question of all if the US constitution will be amended again to allow for Arnie as President in, say, 2016?.

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quicklink, US Politics

US Senator Santorum’s fashistoid remarks

You have probably heard about US Senator Santorum’s fashistoid remarks about homosexuals having no right to privacy for their alleged attempt to destroy “healthy family values”. Himself being gay, Bruce Bawer, an American poet and literary critic living in Olso, does not exactly agree with the Senator here – but being a proud American he is nonetheless grateful for this wake-up call:

“Santorum’s remarks betray an utter indifference to the idea of American liberty. He has spit in the face of every coalition soldier who went to Iraq to fight for freedom, and at every Eastern European who reveres America as the symbolic antithesis of Soviet-era tyranny. And he has confirmed, to a depressing extent, the condescending cartoon version of America that has repeatedly been on display in the European media these past months — the America that is not about freedom at all but about power, pure and simple.”

Harsh, but true, words. Salon.com has got the rest of them.

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compulsory reading, Europe, US Politics

Quicklinks, Tony Blair, And The Borg

Sorry for the apparent recent lack of updates. Not that there’s not enough stuff I’d like to comment on, I just did not find the time lately.

But there’s exciting news, too. Look to your left, my gentle readers, and you’ll find a seamlessly integrated second blog called “Link Of The Minute.” This is where I hope to post even when I don’t find the time to put my simple opinions into overly complicated writing. The “Quote Of The Minute”, on the other hand, has moved to the right (and will also be blog powered soon, now that I have found a way to integrate more than one blog on one page with Javascript. It’s actually quite simple – here’s how the magic happens.

Alright, more tomorrow. Expect me to be rather critical of the “European-defence-summit” in Brussels tomorrow. The history of this summit is just one more example how elections even in a small country like Belgium could have important international ramifications. But not this time, I suppose, as the US are apparently trying to play divide et impera by beginning to mend things with the German government while bashing France – think of last week’s “there will be consequences, and it will hurt”-statement by Colin Powell, who is coming to Germany in May, and statements from “beltway-insiders” who suddenly seem quite relaxed about the future of US-German relations.

Given this seeming American recognition that it is not in the US’ interest to force Germany to opt for an all-francophone foreign policy, I do not quite understand today’s “resistance is futile”- declaration by the American ambassador to Europe, the British PM Tony Blair.

All he is doing is increasing the perception that the coming world order is indeed one in which Jean-Luc will have to become Locutus of Borg. If this is what he wants to achieve, then fine. But what is really needed right now is someone who explains that a unipolar world would not be a unilateral one.

Especially for the British PM it ould be important in days like these not to repeat the mistake Churchill made after WW2, by outlining three spheres of British interest – being the US’ junior partner, the Commonwealth, and Europe, in that order.

The US never wanted a junior partner telling them how to run the world during the cold war. They wanted to use a British membership in the EU to gain influence in Brussels. Early in the 1960s the US government told the British that they would have their “special relationship” with Germany instead if the UK would not join soon. Well, it took more then ten years to get in, as Général deGaulle understood precisely what was at stake.

So he vetoed the British membership in the EU until the common agricultural policy was finally agreed upon – in a way that favoured France and would seriously disadvantage the UK once it entered the EU. So the British influence in Europe was severly hampered by this and the fact that the 1970s brought economic gloom rather than glory.

To cut a long story short – Churchill’s three spheres seemed to be a good idea back in 1945. But they turned out to be a horrible mistake. And while everyone knows that history does not repeat itself in detail, I might – as I already said last December commenting on Blair’s European ideas and the Turkish application for membership – repeat itself in structure.

Whatever Blair’s judgment about the extent of American primacy in the West – it does not matter at all if resistance is actually futile or not: there will be resistance if it is perceived necessary. Blair’s talk raises the chances it will.

And so it looks like the British government is – again – underestimating the European dynamics. It looks as if Capt’n Tony should have watched more StarTrek – NextGeneration” recently – instead of dubbing “The Simpsons” ;-).

Ah, thinking about all this, a very good book regarding the British-European relations post 1945 is: Stephen George, An Awkward Partner: Britain in the European Community. Well… I liked it a lot.

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Iraq, US Politics

Pride Goeth Before The Fall

Lillimarleen points to a Salon.com article by Arianna Huffington that begins with this quote from the Bible and deals with the increasing smugness of the Beltway neocons –

“From the moment that statue of Saddam hit the ground, the mood around the Rumsfeld campfire has been all high-fives, I-told-you-sos, and endless smug prattling about how the speedy fall of Baghdad is proof positive that those who opposed the invasion of Iraq were dead wrong.”

Ms Huffington, on the other hand, argues along the lines of the French political scientist Emanuel Todd – whose main argument regarding Iraq is that an increasingly weaker superpower (yes, he is thinking about ths US) chose to rethorically prop up a weak target to demonstrate its seeming military might – by saying that –

“[i]n fact, the speedy fall of Baghdad proves the antiwar movement was dead right.”

Well, I am not too sure about this conclusion – in fact there is no way to tell who was right and who was wrong. There’s enough reality for everyone to say “I told you so.”

So having heard why the anti- as well as the pro-war camp believe their world-wiew is right in light of the quick end to hostilities, let’s do a little thought-experiment: Imagine the war had lasted six months and there would have been thousands, if not tens of thousands more victims on either side, possibly killed by WMDs. Those in the anti-war camp would have said “see, we told you so”, war is horrible and there was no immediate need to let the genie out of the bottle, while the pro-war camp would have claimed “see, we told you so”, Saddam’s regime is in fact dangerous and it was the right decision to go in now. The sad truth for everyone looking for ex-post moral clarity is that right or wrong are just the wrong categories here.

But apart from failing to see this impossibility, Ms Huffington’s article makes the important point that, following the surprisingly quick and relatively unbloody fall of Baghdad, the neoconsevervatives’ “it was easy, we can do it again”-discourse should not remain unchallenged.

Right or wrong, the neoconservative conception of preemption was never just about possible Iraqi-WMDs or about liberation of the Iraqi people. The whole adventure is probably really inspired by the desire to jump-start modern institutions of governance in the Middle East. This can probably be called neo-colonialist. But maybe there is just no other way to increase financial support to unprecedented levels without taking hierarchical control of the regions where the money is spent. Maybe this is the right way to reduce the risk of suicide terrorists exporting their societies’ 30-years-jihad to New York, Paris, or Frankfurt. Maybe there is no other way to solve-slash-control the Israeli-Palestinian conflict in light of the Arab nations’ tendency to scapegoat Israel for internal problems, continuing mutual violence destroying any remainder of trust between leaders as well as their peoples, and, of course, the fertility competition Jewish settlers and Palestinians are engaging in. Maybe. But probably not. Probably, there is no short cut to modernity.

I have repeatedly stated that I don’t believe their calculation is correct. But it is clearly one possibility. And the relatively swift conquest-slash-liberation has clearly made things significantly easier. Thus, Ms Huffington is clearly right to remind us that – even though things went a lot smoother than, I suppose, even most of the people who bet their careers on this war expected – the difficult times are still ahead. In her words –

“The unintended consequences have barely begun to unfold.”

Didn’t the Shiite opposition boycot yesterday’s meeting with the future Iraqi “viceroy”, Jay Garner? I’m just saying… Remember – pride goeth before the fall.

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compulsory reading, German Politics, Iraq, oddly enough, US Politics

Reality Construction.

One of the currently more popular theories of US-war-blogosphere regarding the German and French government’s opposition to the war is that they opposed it in order to conceal the extent to which they were involved in the built-up of Iraq’s pool of WMD. This theory has been prominently publicized by Steven DenBeste.

For all those who hold the opinion that no thinking human being could oppose the war for non-selfish reasons, DenBeste’s theory seemed to be a logic explanation of reality. But it has serious flaws. It is certainly not flawed to say that there is a certain possibility that a number of German and French companies (as well as companies from other nations…) sold suspicious stuff to Saddam’s regime pre-, but especially post 1991 in breach of UN sanctions. It is, however, flawed to argue that the French and German government’s opposition to the war must have been informed by this, including the possibility that the governments actually found out about such a breach by companies legally residing in the respective country. In fact, such a conclusion is actually illogical – although chances are, we will never find out, because whatever is or is not reported to be found in Iraq is entirely within the discretion of those in control of the area.

Thus, depending on the US’ government’s intentions of how to involve Europe in the reconstruction of Iraq (that’s what denBeste calls the ‘blackmailing strategy’), the theory could well be a self-fulfilling prophecy. Eamonn Fitzgerald today points to an article in the New York Times that illustrates this rather well – now that the US and the UK are actually in charge of Iraq and will soon be in control of whatever remains of the previous administration, they are unlikely to reveal information that would put blame on themselves for whatever remains of WMDs they may find down there. And I suppose they will find something eventually – they simply have to, after using the Iraqi WMD-threat as a pro-war-discourse element for so long. So it is very likely that the stuff they will acknowledge to have found will be of Old European production – French, I suppose – and, again, the amount of stuff revealed will probably depend on the development of the transatlantic relationship in the coming weeks and months.

Looking at the problem from this perspective, the DenBeste theory does not make much sense. Had Germany’s and France’s governments been involved in the military build-up of Iraq in a way they would have deemed necessary to conceal, the logical policy would have been to be as involved in the invasion as possible in order to retain as much control over what will be found and what will be published now. Being as closely allied to the US as possible is certainly a better way to achieve that than publicly angering the Pentagon’s PR people, don’t you think?

But even though the theory may be wrong, the result may eventually be close to what Steven DenBeste predicted. Some reality will be constructed, even though, in the end, no one will actually know what has been going on.

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