Tag Archives: Communism

Commentary

Bank run in socialist Europe begins

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Europe: Annual Budget Deficit as % of GDP
Europe: Annual Budget Deficit as % of GDP

From CNBC.

Excerpt:

Money-market funds in the United States have quite dramatically slammed shut their lending windows to European banks. According to the Economist, Fitch estimates U.S. money market funds have withdrawn 42 percent of their money from European banks in general.

And for France that number is even higher — 69 percent. European money-market funds are also getting in on the act.

Bond issuance by banks has seized up because buyers have gone on strike.

From the Economist’s Free Exchange Blog:

In the third quarter bonds issues by European banks only reached 15 percent of the amount they raised over the same period in the past two years, reckon analysts at Citi Group. It is unlikely that European banks have sold many more bonds since.

Corporate depositors are also pulling their cash.

Free Exchange:

“We are starting to witness signs that corporates are withdrawing deposits from banks in Spain, Italy, France and Belgium,” an analyst at Citi Group wrote in a recent report. “This is a worrying development.”

And there are troubling signs that banks are even running out of collateral to back their borrowings from the European Central Bank .

So far the liquidity of the European Central Bank (ECB) has kept the system alive. Only one large European bank, Dexia, has collapsed because of a funding shortage. Yet what happens if banks run out of collateral to borrow against?

And from the leftist New York Times.

Excerpt:

The flight from European sovereign debt and banks has spanned the globe. European institutions like the Royal Bank of Scotland and pension funds in the Netherlands have been heavy sellers in recent days. And earlier this month, Kokusai Asset Management in Japan unloaded nearly $1 billion in Italian debt.

At the same time, American institutions are pulling back on loans to even the sturdiest banks in Europe. When a $300 million certificate of deposit held by Vanguard’s $114 billion Prime Money Market Fund from Rabobank in the Netherlands came due on Nov. 9, Vanguard decided to let the loan expire and move the money out of Europe. Rabobank enjoys a AAA-credit rating and is considered one of the strongest banks in the world.

American money market funds, long a key supplier of dollars to European banks through short-term loans, have also become nervous. Fund managers have cut their holdings of notes issued by euro zone banks by $261 billion from around its peak in May, a 54 percent drop, according to JPMorgan Chase research.

This is really disturbing. I wonder if any of my economics-minded commenters can explain to me what happens when there is a run on banks. I am guessing that there will be some rioting over benefits as austerity measures are imposed, and interest rates will go up.

News

Conservative MP introduces bill to abolish Section 13 speech code

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Here is the description for that video, posted by SDAMatt: (Note: Tory = Conservative)

Tory backbencher Brian Storseth wants to eliminate Section 13 of the Canadian Human Rights Act (CHRA). That is the provision in federal law that gives the Canadian Human Rights Commission authority to hear complaints of hate speech on the Internet. We wish Mr. Storseth, the MP from Westlock-St. Paul in Alberta, well in this campaign. Section 13 is a particularly pernicious infringement on free speech. Originally added to the CHRA in 2001 as a protection for vulnerable groups against racist or violence-promoting websites, the clause has more often been used by minority activists (or those purporting to act on behalf of minorities) to silence those who do not share their opinions.

The biggest problem with Sec. 13 is that its provisions make it far too easy for commissioners to find an alleged offender guilty. Unlike in a court of law – where the presumption of innocence, rules of evidence and bans on hearsay testimony protect defendants from wrongful prosecution – at a human rights tribunal complainants may remain anonymous and complaints may be filed by third parties with no direct interest in the case at hand. (Some folks even make a profitable hobby out of launching these complaints.) Hearsay evidence is perfectly acceptable, the onus to prove one’s innocence often falls on the accused, and tax dollars pay for the plaintiff’s lawyers while the accused is on his or her own to fund a defence.

A further flaw in Sec. 13 is that neither the truth nor the lack of intent to harm is permitted as a defence. It does not matter whether the offending Internet message was truthful or if adjudicators find it “likely to expose an identifiable group to hatred or contempt” (the standard employed under criminal law) – the owner of the website on which it appears and the person who posted it are guilty anyway.

In 2007, Sec. 13 was used against writer Mark Steyn for material he wrote in Maclean’s magazine that four Muslim students claimed had offended them. That same year, a similar provision in Alberta provincial human rights law was used to prosecute Ezra Levant for publishing the infamous Danish cartoons of the Prophet Muhammad in the now-defunct Western Standard magazine. In both cases, the clear intent of the complainants was to limit legitimate debate about religious extremism.

Fears that getting rid of Sec. 13 will lead to a flood of vicious anti-Semitism and the like are unfounded. Sections 318 through 320 of the Criminal Code already prohibit “hate propaganda” – including “any writing, sign or visible representation that advocates or promotes genocide.” And it has been used several times to prosecute true hatemongers, James Keegstra, most famously. Nothing in Mr. Storseth’s proposal would affect those laws.

The Conservatives have a majority in the House of Commons and the Senate, and they have Prime Minister Stephen Harper there to sign the bill. They need to do this right away, and then ban political contributions by large corporations and public sector unions.

But wait! There’s more! (H/T Andrew)

Excerpt:

The Supreme Court of Canada recently laid the smack down on Human Rights Tribunals across the country. In a recent decision, B.C. Workers’ Compensation Board v. Figliola, a five-judge majority dramatically reduced the discretion of human rights tribunals to rehear discrimination complaints already decided by other administrative bodies such as workers’ compensation boards.

According to lawyer Peter Gall, who is also representing Dr. Brian Day in a health care related case that the Canadian Constitution Foundation is also assisting in, “the practice of workers taking a second kick at the can in front of human rights tribunals after their discrimination complaints had already been dismissed by a labour board or other administrative decision-maker ‘was happening often enough that it was a real problem'”.
This Supreme Court decision applies to all human rights tribunals across Canada and is very important to the business community of British Columbia and Canada because it provides for finality and prevents “forum shopping” and the issue of multiple proceedings.

I know that there are  a lot of conservative voters who are disillusioned with the Canadian Tories over the abortion issue and the free speech issue. The Conservatives need to get something done on these issues, immediately.

 

News

Why do conservatives accuse Obama of engaging in “class warfare”?

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From the left-leaning Politico. (H/T Dennis Prager)

Excerpt:

Obama has characterized Republican votes against his jobs bill — which are predicated, at least in part, over concern that new, temporary spending financed by tax increases will not help the economy — as a rejection of the most wholesome of American workers.

“They said no to more jobs for teachers, no to more jobs for cops and firefighters,” Obama said during a speech Wednesday to the administration’s Forum on American Latino Heritage, “no to more jobs for construction workers and veterans, no to tax cuts for small-business owners and middle-class Americans.”

But in these same remarks, Obama also subtly suggested something far worse — that his opponents are racially biased.

“I ran for president for the same reason many people came to this country in the first place,” he explained. “Because I believe America should be a place where you can always make it if you try, a place where every child, no matter what they look like [or] where they come from should have a chance to succeed. I still believe in that America. I believe we can be that America again.”

The clear suggestion is that someone has made this country a place where what a child looks like can hinder them — and Obama is the one who can erase the discrimination that has been permitted to return.

First lady Michelle Obama made this point more explicitly at a Washington fundraiser the night before.

“Will we be a country where opportunity is limited to just the few at the top?” the first lady asked. “Or will we give every child — every child — a chance to succeed, no matter where she’s from, or what she looks like, or how much money her parents [have]? Who are we? That’s what’s at stake here.”

Her suggestion that “what’s at stake here” in the 2012 race is whether a child will be judged by color is an outrage, implying that a Republican victory would result in discrimination.

Obama’s rhetoric has become increasingly shrill. I find it very alarming that the President of the United States is somewhere to the left of celebrity blowhards like Michael Moore. How does he expect to negotiate with people in good faith when he is constantly impugning their motives and caricaturing their policies?

In other news, Herman Cain, who is black, leads by 8 points in the Iowa Caucuses. Wouldn’t it be funny to see Barack Obama, who is only half-black, take on Herman Cain in a debate, and accuse him of racism? The rich, pampered Ivy-league ACORN trainer against the businessman with a Masters in Computer science from Purdue, whose mother was a cleaning woman, and whose father worked three jobs.