Global Warming Consensus Alert: New, Shocking Data!

Tuesday, February 5, 2008
It’s been a while since we’ve had a GWCW update, so here are links to a couple of articles I just ran across at Watts Up With That:That second post is especially interesting considering the breathless media reports about endangered polar bears in danger of drowning as the ice melts from under their feet last year. Once again, reality is just a teensy bit different from what’s reported on this issue.
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February Acton Notes

Tuesday, February 5, 2008
A new Acton Notes is now available online. Acton Notes is a monthly newsletter published by the Acton Institute. This month’s issue features an article by Rev. Robert Sirico, president of the Acton Institute, about Socialism. Rev. Sirico points out a couple of ways in which to confront those who mistakenly hold to the fashionable ideology.

If a person identifies with the idea of common ownership of the means of production, point out that this is impossible because you hold no rights over anything. “Ownership implies the right to control and sell the good, which cannot be done if everyone is said to own something,” writes Rev. Sirico. Common ownership, he points out, is actually State ownership. Another point with which to confront a Socialist is the absence of money. Point out the significant failures that the Soviet Union experienced when attempting to implement this policy. Close with words from Benedict XVI’s recent encyclical, Spe Salvi. Read the President’s Message to find out more.

Other contents of the February issue include:
  • First Brazilian TFAVS Receives High Marks from Participants
  • From Acton Conference to University Doctorate
  • What Would Jesus Buy? Rev. Sirico on Fox Business News
  • Glenn Sunshine to Discuss Wealth, Work, and the Church
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Oh, What Might Have Been!

Tuesday, February 5, 2008
From a review in the New Yorker magazine (HT) of David Levering Lewis, God’s Crucible: Islam and the Making of Europe, 570 to 1215, in which the author
clearly regrets that the Arabs did not go on to conquer the rest of Europe. The halting of their advance was instrumental, he writes, in creating “an economically retarded, balkanized, and fratricidal Europe that . . . made virtues out of hereditary aristocracy, persecutory religious intolerance, cultural particularism, and perpetual war.” It was “one of the most significant losses in world history and certainly the most consequential since the fall of the Roman Empire.” This is a bold hypothesis.

To say the least. It is of course true that in the twelfth and thirteenth centuries Muslims had been in possession of a number of Aristotle’s works in Arabic that were not readily available in the Latin West. It isn’t so clear, however, that the depth and breadth of Greek philosophy and the classical virtues were saved by Islamic philosophers during the West’s “dark” ages. There’s much more on that here, including this summary:
The Arabic translations, although they did serve as an early reintroduction for some Western Europeans to Greek thought, didn’t “save” Greek knowledge as it had never been lost. It had been preserved in an unbroken line since Classical times by Greek, Byzantine Christians, who still considered themselves Romans, and it could be recovered there. There was extensive contact between Eastern and Western Christians at this time; sometimes amiable, sometimes less so and occasionally downright hostile, but contact nonetheless. The permanent recovery of Greek and Classical learning was undertaken as a direct transmission from Greek, Orthodox Christians to Western, Latin Christians. There were no Muslim middlemen involved.

In any case, here’s the take of the New Yorker reviewer on Lewis’ book:
I can foresee a time when another matter important to us, the threat of ecological catastrophe, will prompt a historian to write a book in praise of the early Europeans whom Lewis finds so inferior to the Muslims. The Franks lived in uncleared forests, while the Muslims built fine cities, with palaces and aqueducts? All the better for the earth. The Franks were fond of incest? Endogamy keeps societies small, prevents the growth of rapacious nation-states. The same goes for the Franks’ largely barter economy. Trade such as the Muslims practiced—far-flung and transacted with money—leads to consolidation. That’s how we got global corporations.

So, the development of free market economies so often attributed to Western civilization are actually due to Muslim nation-states...and for that reason we ought to prefer European culture!

How refreshing!
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'Casino Capitalism' or Personal Failure?

Tuesday, February 5, 2008
Two weeks ago, French bank Société Générale announced that off-balance sheet speculation by a single “rogue trader” had cost the company 4.9 billion Euros ($7.2 billion). The scandal had enormous repercussions in international markets leading some commentators to decry the rotten nature of global “casino” capitalism and to call for the reversal of financial liberalization. However, the actual circumstances of the case do not justify more government intervention in financial markets but illustrate individual moral failings and poor internal governance on behalf of the bank.

A new report also suggests that a lack of internal controls and weak enforcement of existing rules may be the real source of the problem at one of the oldest banks in France.

On January 24th, Société Générale said that it had discovered a “massive fraud” through “a scheme of elaborate fictitious transactions.” The event caused a great stir not only for the magnitude of the bank’s losses but also because it is partly blamed for the worst European stock market collapse since September 11, 2001.

Jerome Kerviel, who worked as a junior trader in the arbitrage department at Société Générale, was responsible for betting on markets’ future performances. The bank claims that he had made unauthorized and concealed bets of around 50 billion Euros on European markets. According to the New York Times, Mr. Kerviel told prosecutors that his bets would have resulted in a profit of 1.4 billion Euros for the bank if they had been cashed out by the end of December. However, at the start of this year, stock markets experienced a sharp downturn turning the projected profits into losses.

The French bank discovered the bets in mid-January when auditors in the risk management office noticed a series of fictitious trades on its books. Société Générale then conducted a dramatic market sell-off operation in order to neutralize Kerviel’s deals. Traders estimate that the bank unwound contracts in the range of 20 billion to 70 billion Euros from January 21st to 22nd.

Many suspect that selling all these positions into an already volatile European market contributed to the shocking stock market performance in Europe around that time. This in turn, provoked an unexpected and controversial interest rate cut by the Federal Reserve of 0.75 per cent in order to protect the New York Stock Exchange which had been closed on the day when European markets dived. The curious series of events was summed up by a hedge fund manager who told Reuters that: “The real story here is basically, this guy, paid 100,000 Euros a year, sitting in some office at SocGen, forces the Fed to cut interest rates by 75 basis points, which is basically what happened”.

The huge and wide-ranging market repercussions have given ammunition to the critics of financial liberalization. An editorial of the French newspaper Libération sarcastically entitled “Casino” laments that no one controls the huge sums of money moving around in financial markets and demands tighter regulation of financial markets. It also claims that the scandal embarrasses President Sarkozy’s alleged embrace of laissez-faire capitalism.

Continue reading "'Casino Capitalism' or Personal Failure?"
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