Viewing entries tagged
brexit

Brexit: The British Pound Will Be Fine

Fear mongers have said that the pound is "taking down the Euro." Nonsense.

Remember group projects in school, in which a few people would work together and everyone would get the same grade? You always wanted as many A students and as few D students as possible in your group.

The EU is like one of those groups. It had two A students: Britain and Germany. It also had 26 D students. Now one of those A students is leaving.

The pound is going down for a simple reason: investors are pulling out of crony capitalist companies whose primary value is special privileges from EU regulators. That lowers demand for those stocks, and thus lowers price.

Those investors have started looking for innovating and productive companies instead. In a few weeks or months they will find those companies. At that point, demand for those new stocks (and their prices) will rise.

But what about the euro? Why did the price of the Euro fall? If the pound falls, if anything, the Euro should go up. After all, the dollar and yen did, as people looked for temporary alternatives to the pound. If people believed in the EU, then nothing much would have changed in the euro.

The euro dropped because people don't want to invest in D student economies. A thousand fools don't make a wise man, and 27 D students don't make an A student. That's why the Euro has been steadily declining for years. Free trade is good; but welfare for lazy countries more than cancels out the gains from free trade.

Maybe Germany can carry the rest of Europe, keep bailing out Greece again, etc. Maybe it can't. Maybe it will also exit, and let the D student countries fend for themselves.

The fall in the pound is just temporary rearrangement. If Britain moves towards capitalism and away from welfare socialism, the demand for the pound will go right back up. But the euro?

It would require a massive movement away from current socialist policies and towards a massively freer market. No one would be happier than I if that happened in Europe. I would love to see modern Greece reach the work ethic and greatness of Ancient Greece; I would love to see a France that followed the effective economic policies of Bastiat. I would love an Italy as innovative, resourceful, and hard working as it was in the early Roman republic.

But I doubt that will happen until the EU finally goes the way of the USSR.

In Liberty,

Arvin Vohra
Vice Chair
Libertarian National Committee

Brexit: Good Riddance Goldman Sachs

Goldman Sachs has threatened to leave London after the UK leaves the EU. That's like cancer threatening to leave your body.

Goldman Sachs is the co-creator of the 2008 American recession, and the primary creator of the Wall Street Bailout, in which hundreds of billions of dollars were stolen from producers and given to financial parasites. They then contributed to the Greek financial collapse.

There are some companies that you just don't want around. Halliburton, Monsanto, and Goldman Sachs are at the top of the list. These companies are rich, but their wealth comes from cronyism and corruption, not from the creation of value.

They are the worst of the crony capitalists. They produce nothing of value, but instead manipulate government into making them rich at the expense of hard working producers.

No country needs companies who get rich off of government sanctioned theft instead of productivity. Imagine how much better off America would have been if companies like Goldman Sachs had not turned a minor housing surplus into a massive financial catastrophe.

As Britain transition from a cronyist, EU economy into an innovative, independent one, it will need great innovators and producers. It will not need reckless financial parasites. It will not need the company whose largest financial success in its history was getting bailed out for its staggering incompetence.

The only possible downside of Goldman leaving London: they might bring more of their people to America. While jobs are usually good, it's never great to have parasitic, crony capitalist, corporate welfare queens around. Maybe we can ask Trump to build a wall to keep them out.

In Liberty,

Arvin Vohra
Vice Chair
Libertarian National Committee

Brexit: Positive Market Readjustment

In a couple hours, you may see the British pound and stock exchanges massively fall. Here's why that's good:

1. For the last several years, investors have been strategically investing in crony capitalists. They have been investing in whichever companies had most political influence to get special favors from EU regulators.

2. With Britain out of the EU, that no longer makes sense. Special favors from EU regulators don't matter as much now in Britain.

3. Investors' first step is to pull money out of stock in those crony capitalist companies. Those corrupt companies just aren't as valuable any more. When investors leave crony capitalists companies, stock prices will obviously fall, and the demand for the pound sterling will also fall.

4. Their next step is to find innovative, productive companies to invest in. It will take several weeks or months to figure out who those companies are. Few investors have been looking, since it didn't matter. In the EU, innovation doesn't matter as much as political influence. But in Britain, innovation will be king.

5. Once investors figure out which new, innovative companies to invest in, demand for British stock and currency will increase again.

As long as Britain can stay competitive by lowering taxes and regulation, its economy will grow. They've thrown off the yoke of the EU. If they can throw off the yoke of their own socialism, they will succeed.

In Liberty,

Arvin Vohra
Vice Chair
Libertarian National Committee

Brexit: Truly Free Labor

Free flow of labor is great - but that's not what the EU provides.

The EU makes it easy to hire workers from within the EU. They make it nearly impossible to hire skilled workers from outside the EU. If you want to hire a skilled engineer from outside the EU...good luck.

In other words: you can hire anyone you like from 28 socialist factories of laziness. But it's much harder to hire anyone from anywhere else.

Dyson, for example, routinely needed to wait four months to hire the engineers it needed. Imagine the struggle of smaller companies!

Britain now has the option to continue that insane policy, if it wants. It can hamstring its own industries by preventing companies from hiring skilled and productive workers from outside the EU.

But it can also turn that policy around without any approval from Brussels.

While the rest of the EU prioritizes refugees, Britain can prioritize engineers. While the rest of the EU makes it easier for people to not work, Britain can make it easier to be productive. Britain can invite the best and brightest from the other 160+ countries. They can help grow industries and create more jobs for Britons.

Britain has its own socialist welfare and statist policies to fight. But if it can overcome them, it can become the center of growth and innovation in Europe.

In Liberty,

Arvin Vohra
Vice Chair
Libertarian National Committee

Peaceful, Nonviolent, Noncooperation

Long before Brexit, my Indian ancestors fought to leave the British Empire. Their strategy: peaceful, nonviolent, noncooperation.

Today, we Libertarians are fighting to throw off the meddling yoke of our own federal government. And peaceful, nonviolent, noncooperation still has a place.

In my own life, I run an unlicensed business, accept Bitcoin, and use Uber. I often buy prepared meals from unlicensed chefs (mostly grandmothers) who run their businesses from home without licenses. Just for fun, I routinely put trigger words into harmless emails and facebook posts

You can do the same. Do anything and everything you can to make it harder for the Federal government to control you. Underreport your income. Don't register for the draft.

Encourage your friends and loved ones to start businesses or get private sector jobs, instead of working for the government.

If your state won't allow homeschooling, attend a public school and make their lives difficult. Demand the most difficult and expensive services (e.g. unnecessary IEPs) to make their lives harder.

File as many FOIA requests as you can. Force the feds to burn up their resources, so they simply don't have anything left to meddle with our lives.

Opt out at airports. And when they deliberately stall instead of sending over a TSA agent, repetitively but politely ask how long it's going to be.

When dealing with any government agency, file any formal complaint you can think of. Make them chase their own tails following up.

Controlling people is difficult and expensive. At the height of the British Empire, they decided that the disarmed people of India were just too hard to manage. Exhausted and beleaguered, the British Empire gave up its "crown jewel".

Learn to use bitcoin. Try Jaxx.io (recommended by Darryl W. Perry), and report none of it. Keep defunding government's ability to meddle and control.

The more expensive we make their attempts and immoral control, the more we burn their resources, the harder we make it for them to steal through taxation, the sooner they will give up. And then when we pressure them politically to reduce their meddling, the happier they will be to oblige.

They already caved on gay marriage. They are already caving on marijuana. Homeschooling is become easier in more and more states. Hell, they even changed the TSA scanners at airports. The harder we make their attempts at control, the happier they will be to cave on more areas.

Gandhi and MLK showed us this: you cannot control people who simply will not comply. If we follow their leads, we will reduce government's ability to control and meddle.

In Liberty,

Arvin Vohra
Vice Chair
Libertarian National Committee