Today we post, in our Pages section, a review of Capital in the Twenty-First Century by Thomas Piketty. 

The review, by Don L, is titled:  The “Savior  of Socialism” Proves the Worth of Capitalism. (To go there, click on the title under Pages, at the top of our margin.)

Here is an extract :

Piketty’s Marxian monster is one nonsensical – and previously discarded – economic notion after another. He doesn’t grasp that there is no distribution of income, favorably or negatively, in a Free Market Capitalistic system. All wealth is allocated by consumers … they are kings and queens of an economy and of a truly JUST society. They determine what producer satisfies needs and wants most successfully. It’s consumer meritocracy! Nobody from General Foods ever shows up at the door with a threat of imprisonment if you don’t buy. Further, Piketty holds to the long-ago-tossed idea that capital is homogeneous. Capital is heterogeneous, and it is the putting together, by an entrepreneur, of the right combination of capital to serve consumers’ demands, in an uncertain environment, that determines profit or loss. Remember, an entrepreneur pays wages well in advance of sales revenue. There is absolutely no such thing as a guaranteed or certain rate of return on capital such as Piketty chronically and erroneously incorporates in his formulations. …

Mr Piketty’s book, except for unintentionally proving that government causes income inequality, is worthless, and his endeavor is doomed. Piketty fails to comprehend that inequality arises when government economic intervention distorts free exchange into an unnatural 3-party, buyer-seller-government, lose-lose-win by coercion, framework. He just doesn’t understand that there can never be a sufficiency of data, nor a mathematical model, by which you can emulate the free and willing, person-to-person, win-win interaction of hundreds of millions of people making trillions upon trillions of decisions about what they think is best for themselves as they allocate dollars/wealth through exchange. Governments cannot legislate or impose a false reality.

“Socialism fails because it’s based on the emotion of SHOULD.

Free Market Capitalism succeeds because it’s based on the reality of IS.”

Ludwig von Mises

The author supplies a very useful list of books at the end of the review.

The economy is in the doldrums primarily because of the socialist wealth-redistribution agenda of the Obama administration. Socialism kills prosperity.

The Pope, who is directly informed by an omniscient god so that what he utters is infallibly right, recently demanded world-wide redistribution.

Milton Friedman argues brilliantly against the idea (rotten whether invented by mortals or divinity) of redistribution in general.

And against 100% inheritance tax in particular:

Today is the anniversary of the birth of the great Austrian economist and political philosopher, F.A.Hayek.

This tribute to him comes from Investor’s Business Daily, by Gerald P. O’Driscoll Jr., senior fellow at the Cato Institute:

Hayek’s work, whether on economics, politics or law, focused on the ineluctable problems of uncertainty and incomplete information. In economics articles going back to the 1930s, he analyzed the price system as a mechanism for communicating information to buyers and sellers about the intensity of preferences for goods and their relative scarcity. He concluded that the information does not exist anywhere in its entirety and could not be centralized. … Socialist (really communist) societies relying on centralized planning would be characterized by gross economic inefficiencies.

Hayek was vindicated by subsequent events. The power of this argument is lost today on policymakers engaged in “planning lite,” attempts to allocate credit to favored industries and pick winners.

The Great Recession was in large part the consequence of such a policy. The Fed’s balance sheet is loaded up with housing finance paper. In “Ben Bernanke Versus Milton Friedman,” historian Jeffrey Rogers Hummel argues that the Fed has evolved from monetary authority to a credit allocator.

Hayek first began evolving his information argument in his monetary analysis. In 1932, he questioned whether deliberate monetary management could avoid economic fluctuations.

Friedman later developed the argument against discretionary monetary policy in a series of articles that detailed the information problems confronting a central bank. His argument later became encapsulated as the “lags” in monetary policy — i.e., the unpredictability of when the effects of monetary policy actions will be felt. Monetary policymakers give lip service to Friedman’s arguments, but ignore them in practice.

Hayek deftly summed up his argument on information in his 1988 book, The Fatal Conceit:

The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.

A market economy is a complex order, the outcome of societal evolution that confounds efforts to redesign it. The central tenet of classical liberalism was summed up by George Smith in his brilliant book, The System of Liberty:

Laissez faire in all spheres, personal, social and economic, was the fundamental presumption of liberalism — its default setting, so to speak — and all deviations from this norm stood in need of justification.

In America, by linguistic legerdemain, progressives transformed the meaning of liberalism into nearly the opposite of what it originally meant. Progressives became liberals, and true liberals lost their identity. Hence, we have the peculiar use of conservative to denote in America what had once been liberal thought.

So when Hayek wrote a famous essay on “Why I Am Not a Conservative,” he confabulated some American conservatives. He was not attacking American conservatism. Instead, he was combating the transplantation to America of a “European type of conservatism, which (is) alien to the American tradition.” That European conservatism upheld tradition and status over liberty and innovation.

Hayek argued there, and elsewhere, that liberalism must be the political philosophy of principles. Its central principle is individual liberty. …

Hayek provided a much-needed program for American conservatives today. They must stand for free markets and free people. Free markets and free trade must be seen as the economic core of an opportunity society that provides hope for all. …

Hayek was born in Vienna at the high point of the global liberal economic order comprising free markets, free trade and capital movements, and the classical gold standard. That glorious edifice ended with World War I. So for decades he was arguing against the tide of history. Yet he lived long enough to be vindicated. His words, written over the course of much of the 20th century, constitute a message for today.

On the centenary of Hayek’s birth, May 8, 1999, Barun S. Mitra wrote a tribute to him, published by the Liberty Institute, India.

We quote from it:

Today, a wide range of people has acknowledged his contribution all over the world. From philosophers like Karl Popper, Robert Nozick … to political leaders like Ronald Reagan, Margaret Thatcher and Vaclav Klaus, to Nobel laureate economists like Milton Friedman, James Buchanan … and countless others. As the iron curtain was being built in the aftermath of World War II, Ludwig Erhard, the finance minister of West Germany turned to Hayekian ideas to rebuild his country. Half a century later when the iron curtain collapsed, leaders in many countries in Eastern Europe again turned to Hayek in their attempt to rebuild their societies. And Hayek is reportedly available on the bookshelf of even the Chinese Prime Minister.

If today, the world is witnessing a perceptible change in thinking, it is in no small amount due to the legacy of Hayek. …

No wonder commemorative events are being organised in London, Paris, Vienna, Washington, D.C., Montreal, Eastern Europe, and Central America. The Adam Smith Institute in the United Kingdom has named him the man of the century. …

Hayek was more than a Nobel Prize winning academic. He was an intellectual giant, who was also a gentleman to the core. The man, who went on to become one of the greatest champions of liberty, had begun his life as a young soldier in the Austro-Hungarian Empire and sent to the Italian front in 1917. An academic, whose “controversial ideas” were eventually recognised by the Nobel committee in 1974, Hayek was also an activist who was among the founders of the Mont Pelerin Society in 1948. This was an organisation dedicated to pursuing the intellectual battle against all forms of authoritarianism and tyranny at a time when it was fashionable to call oneself socialist. Today, it has hundreds of members, including many Nobel laureates, spread across all the continents. He inspired many to take up intellectual activism like the late Sir Anthony Fisher, the British businessman who founded the Institute of Economic Affairs in London in 1955. Over the years, IEA, an independent think tank, has produced countless policy papers and books on contemporary issues, and is recognised to have contributed to changing the popular perception that made the Thatcher revolution possible in Britain in the 1980s

Hayek was born in Vienna, Austria, on May 8, 1899, to August Edler von Hayek & Felicitas von Hayek. Even as a teenager, he was interested in philosophy, economics and ethics. But his studies were interrupted as he was called for military duty in 1917, and saw action on the Italian front. On his return from service he went back to college. In the 1920s Hayek was part of that heady circle in post-war Vienna, a group which featured some of the greatest minds of the century. He earned two doctorates, one in law and another in political science. He studied economics under Ludwig von Mises, one of the greatest exponents of the Austrian School. He left for England in 1931 worried about the rise of the Nazis in Germany. Hayek mainly taught at the London School of Economics, but had short spells at universities around world including, Cambridge, Chicago, Stanford, Tokyo, and Freiburg.

Hayek was one of those few fortunate people who lived to see the tumultuous events that shook the socialist empire, and be vindicated. In a letter written in 1989, he noted, “the ultimate victory of our side in the long dispute of the principles of the free market.” He must have been saddened at the enormous cost, both human and material, that was paid in pursuit of a doomed experiment.

Hayek died in  Freiburg on 23 March 1992.

Dispersed knowledge

In the 1930s, Hayek was the principal opponent Keynes. In various scholarly publications – Monetary Theory of Trade Cycle (1933), The Pure Theory of Capital (1941) – he had pointed out that business cycles are caused by monetary mismanagement in [government]. This contribution of Hayek was noted by the Nobel committee. Subsequent events have completely vindicated Hayek. Concerned about the stability of value, he wrote a radical essay in the 1976, “The Denationalisation of Money”, where he argued that it was a serious mistake to allow governments to monopolise the legal tender. He called for the freedom of the individuals to trade in whatever media of exchange they thought best. …

Hayek emphasized that division of labour and division of knowledge were complimentary. Every individual possessed some specialized and local knowledge that was particular to his situation and preferences. Yet, the market, through the competitive price system, successfully coordinated all these bits of knowledge. Prices provide the incentive to invest in certain areas, and the information regarding the possible opportunities. Hayek explained, “We must look at the price system as such a mechanism for communicating information if we want to understand its real function… … The most significant fact about this system is the economy of knowledge with which it operates, or how little the individual participants need to know in order to be able to take the right action.” …

Spontaneous order

Hayek also developed the idea of “spontaneous order” to describe the progress of civilizations. Language, customs, traditions, rules of conduct, have all evolved without any conscious design, and without that freedom societies may not have evolved beyond primitive levels, he held. Advancement of society was dependent upon no one overall “plan” being imposed over the actions and plans of the individuals making up the society. Building on Adam Smith’s “invisible hand”, Hayek showed that planning need not necessarily lead to order and lack of a guiding hand need not degenerate in to chaos. …

[Hayek wrote:]

It is largely because civilization enables us constantly to profit from knowledge which we individually do not possess, and because each individual’s use of his particular knowledge may serve to assist others unknown to him in achieving their ends, that men as members of civilized society can pursue their individual ends so much more successfully than they could alone.

This characteristic of the market where order seemed to develop quite spontaneously, along with dispersed nature of knowledge, raises one of the most fundamental questions on the utility of government intervention in the economy to achieve a particular end. The institutions created by government decree to provide direction to such intervention would under the best of circumstances simply be overwhelmed by the sheer volume of knowledge that they will need to process.

In contrast, the market routinely brings to order millions of evaluations undertaken by each individual participant. Hayek showed that progress arises from a continuous process of “discovery” wherein a variety of producers and consumers experiment with a wide range of possible opportunities to make profit. Most such experiments fail in the marketplace, and the innovators bear the cost taking the risk. But some succeed, and the benefits are enjoyed by all. That is the reason why in a free market, voluntary trade creates a win-win situation for all participants. …

The Road to Freedom

Hayek also published works more accessible to a wider public, which included books such as The Road to Serfdom (1944) and The Constitution of Liberty. The former has been nominated by journals like London’s Time Literary Supplement as one the noteworthy books of this century. Dozens of unauthorised editions of it were known to be in circulation among the underground activists in the Eastern block during the cold war. This book has now been published in many languages across the world. …

Then Mitra, looking at Hayek’s ideas from an Indian perspective, points out that India would have done well to have learnt what he taught:

We are concerned that after fifty years of independence, poverty is so wide spread, and as a measure to speed up the process of redistribution of wealth, we thought it prudent to abolish right to property as a fundamental right. Hayek had cautioned all those years ago that “The system of private property is the most important guaranty of freedom, not only for those who own property, but scarcely less for those who do not.”

We want “social justice”, while Hayek warned that “There is all the difference in the world between treating people equally and attempting to make them equal”, and to attempt otherwise would only contribute to social collision. “Equality before the law and material equality are therefore not only different but are in conflict which each other; and we can achieve either one or the other, but not both at the same time”, wrote Hayek.

The world has had a bitter experience in the 20th Century. The dreams of a socialist-collectivist utopia were shattered by economic collapse and degenerated into tyrannical police states. According to historian Thomas Sowell, if one was to mark the time when the intellectual tide began to turn against the ideal of socialism then it was with Hayek’s [The Road to] Serfdom. …

While the world is marking his centenary now, the next century could well belong to him. And ideas do change the world. Let us hope that the intellectual tide in favour of Hayek will become a tidal wave in the next millenium. Hayek’s Road to Serfdom may actually help pave the road to freedom for all of us.

If only!

The government should issue bonds that will never be repaid. Not simply replaced with new bonds as at present — never repaid ever.

We quote from an article by Hunter Lewis at Townhall: 

In her speech at the New York Economic Club on Wednesday [April 16, 2014], Janet Yellen said it is “quite plausible” the economy will reach full employment in a couple of years with just the right amount of inflation, which to her mind means 2% a year.

If the economy surprises her, the Fed will “systematically respond to unforeseen economic developments”. But what exactly does this mean? How will the Fed respond?

The Fed has already made loans available to New York and foreign banks at negative real interest rates and created trillions of new dollars — all without support from either history or theory. What other steps could follow?

Here are a few of the radical ideas floating around the halls of the Fed and associated Keynesian economics departments:

1. Take a leaf from Japan by forcing banks to lend in return for Fed support.

2. Require banks to charge negative interest. This means that depositors would lose money if not used. Ms. Yellen voiced support for this idea in 2010. Some supporters of NIPR (negative interest rate policy) would like to eliminate cash entirely, because electronic money is more easily controlled.

3. Hold interest rates down but simultaneously drive inflation up to as much as 5-6%. With real interest rates at negative 5%, borrowing will soar. What isn’t clear in this scenario is why lenders will want to lend, but this idea is supported by leading lights of the Harvard economics department, and let’s not let reality intrude.

4. Create even more money and use it to buy corporate bonds, stocks, real estate, anything that can be bought, which will flood the economy with money.

Some of the ideas waiting in the wings are not monetary. They include:

5. The government should set an annual borrowing target for the economy. If it isn’t being met by the private sector, government will itself step in and borrow to achieve the target. In this proposal, it doesn’t really matter how the borrowing is used. Quantity, not quality, of spending and investment is all that counts.

6. The government should issue bonds that will never be repaid. Not simply replaced with new bonds as at present — never repaid ever.

7. Employers should have to seek government permission to lay off or fire a worker. This idea of Paul Krugman’s is already true to a large degree in France, with the result that employers are very reluctant to hire anyone.

What all these Keynesian ideas have in common is the belief that a crash caused by too much bad debt can be cured by more debt. They also assume that the very government price controls and manipulations that have caused massive unemployment can be used to undo the damage.

Unfortunately these are precisely the ideas guiding Janet Yellen and the other Keynesian PhD’s guiding world economic policy today.

From Mauldin Economics: Things That Make You Go Hmmm…

If you jump to the 27:00 minute mark of this edition of The Charlie Rose Show, you will find an excellent interview with David Stockman about his wonderful recent book, The Great Deformation. Stockman finally gets the platform he deserves with Charlie Rose, and I urge you to watch him explain why the Fed is a perennial “bubble machine”. Stockman’s takedown of Paul Krugman alone is worth the price of admission — though even the normally neutral Rose can’t resist taking a shot at a former establishment insider turned outsider.

Kevin O’Leary, successful businessman, explains that what is needed to bring people out of unemployment poverty is less government.

From The Foundry.

We stumbled upon this article, which appeared originally in an Israeli paper we don’t read and hardly ever quote because its view from the left annoys us, and found it interesting.

The shekel is in the news this week because its soaring value is proving to be a problem for Israel’s exporters. Reuters reports that the appreciation is forcing Israel’s foreign customers to pay more for the country’s exports. Some Israeli companies are moving operations overseas to shelter in countries with weak currencies.

Cheer up, I say. Writing from a country that is in the midst of a historic collapse of its currency, I have long since come to the view that a strong currency is better than a weak one. Even better is a currency that has readily exchangeable into gold (or silver) at a legally defined rate. Could it be that Israel is in circumstances in which it could lead the way back to such a system?

No doubt most economists would say no. After all, Israel’s economy, however healthy, is too small to play a leading role on the world stage. I’m less sure of that. It could well be that the relatively modest size of Israel’s economy could give it the agility to make a move where the giants are too timid to tread. It’s not as if the big economies have a lot of credibility left.

This, in my view, is a central lesson of our times. It has been coming into ever clearer view since 1971, when America defaulted on the dollar, closed the so-called gold window, and launched the world into the age of fiat money, meaning money that has no set value in terms of specie — gold or silver — but must be accepted as a matter of law because of governmental fiat. This was known as the Nixon shock.

Nixon brought to an end the international monetary system that has been set up at the end of World War II at Bretton Woods. That was the New Hampshire resort where the victors in the war set up a gold exchange standard. The Bretton Woods Treaty guaranteed the right of foreign governments to redeem their dollars in gold. The system crashed after America pursued a policy of both guns (Vietnam) and butter (the war on poverty),

The scale of the collapse since then has been breathtaking. A dollar that was fixed by law during the years of Bretton Woods at a 35th of an ounce of gold plunged in value to, a year or so back, but a 1,900th of an ounce of gold. It soared something like 46% since then, but is still valued at less than a 1,300th of an ounce of gold. The shekel, meantime, has soared something like 54% from its low in late 2012.

It has taken decades for the size of the catastrophe of fiat money to come into focus. But with the perspective of more than a generation we can see the impact. My own favorite statistic is that the average unemployment rate in America between the end of World War II and the end of Bretton Woods was 4.7%. Since the end of Bretton Woods, the average rate has been 6.4%.

This has been political hell for President Obama and the liberal politicians who think that they can fight unemployment by ballooning up the Federal Reserve’s balance sheets. Meantime, big American corporations are keeping more than $1 trillion overseas for fear of taxes and regulations at home. This is a trap into which Israel, whatever the Bank of Israel might fret, doesn’t want to fall.

Yet it is the trap that is brought to mind by reports like the one Reuters moved (and the New York Times published). The nub of it is that in an effort to dodge the gyrating shekel Israeli companies are moving operations overseas. Small so far, but not a good sign. It raises the question of whether Israel can use its prosperity and the boon that will come from its vast natural gas discoveries to begin laying in gold and silver specie in reserves?

Israel has eschewed such a strategy in the early decades of the modern state, but that’s no reason not to take the lead now.

So the effects on  a small country of achieving a strong currency in the midst of world-wide recession are ambiguous. Is it more of an economic blessing or curse? We look forward to our readers’ comments.

The noun or adjective “non-profit” is a red flag.

The noun “sustainability” and the adjective “sustainable” ring alarm from the pages they’re printed on.

From Canada Free Press we have taken a chunk of an article by Gretchen Olson. It is a timely and urgent warning. It demonstrates for us just how the priests of Leftism – the most terrible religion since Moloch – are using Agenda 21 to grease a smooth path into totalitarian control over the rest of us. 

Every item scanned at Wal-Mart, America’s top food reseller with an estimated 25% of market share, supports Agenda 21 through a little known organization called the Global Recording Initiative. The GRI, according to its website, is a non-profit entity which “promotes the use of sustainability reporting as a way for organizations to become more sustainable and contribute to sustainable development.”

Wal-Mart is one of the growing number of corporations who attach to the registry, “voluntarily” conforming to the policies of GRI, which is a “collaborating centre” with the United Nations Environment Programme (UNEP).

The GRI functions as an over-the-shoulder manager, one that tracks compliance — through a school-style alphabet grading system — by companies who submit the proper paperwork and commit to managing their firms under the dictates of Agenda 21. …

Wal-Mart’s compliance is more than just a shallow public relations tactic. In fact, the economic powerhouse is in full submission to the GRI, promising “progress,” “engagement with external stakeholders,” and “making corrections as needed.” Pointedly, the company has added sustainability standards to what are already considered hard-core demands on suppliers. One mandate, for example, requires that “all direct import suppliers source 95 percent of their production from factories that receive one of our two highest ratings in audits for environmental and social practices.”

There they go. The factories have passed the tests of Environmentalists – an order within the Church of Leftism.  Passing the tests for “social practices” means they employ people according to racist and sexist criteria to achieve “diversity” (another alarm word).

In other words, Wal-Mart has submitted to the United Nations Church of Political Correctness (UNCPC). It is not alone.

Wal-Mart is only one of thousands of companies bringing its customers into compliance with Agenda 21, most recently promoted as the solution to the now debunked fear of catastrophic man-made climate change. Last year Kroger, in second place for American grocery sales, produced a 69-page sustainability reportfor the GRI, touting it as “the world’s most widely used sustainability reporting framework.” (For the sustainability rankings of major global corporations)

Because Agenda 21 is comprehensive in scope, this is only the first wave of the Global Recording Initiative. Currently the Initiative is targeting mid-sized companies and locally-owned concerns around the globe, pushing them to follow the track laid by 95% of world’s largest companies, who have already begun self-reporting. According to GRI, “developing countries and Small and Medium Enterprises (SMEs) will be given particular attention in progressing on sustainability reporting.” Rural areas are also being brought into the reporting fold, through efforts such as the Sustainable Rural Management project in Spain.

The black friars of the UNCPC are abroad everywhere on their inquisitorial mission, sniffing out heresy. They have more than likely slithered into your local grocery stores, the smallest as well as the largest.

The focus on private enterprise is only one road of many leading toward full implementation of Agenda 21/global sustainability in the past two decades. Much of the progress thus far has been through laws and regulations enacted by governments around the world, including the United States. American citizens became yoked to the plan when President George H.W. Bush enthusiastically assented …

What fools most politicians are! As ignorant and easily gulled as Sunday-school kids.

 … in 1992 at the United Nations Conference on the Environment and Development in Rio de Janeiro, where it was first publicly unveiled.

Recently the Global Recording Initiative and the United Nations Environment Programme (UNEP) boosted the force of national governments with the formation of The Group of Friends of Paragraph 47 [of Agenda 21], made up of heads of state from around the world, where “leading governments join together to commit to corporate sustainability reporting”. 

To commit “corporate sustainability reporting”, we would say, rather then “commit to” it.

Local governments have also been strongly directed to enter the collective through tendril organizations such as the International Council on Local Environmental Initiatives (ICLEI), which began three years before the Rio conference in an effort to press small municipalities into helping stop ozone depletion. According to his online resume, the founder of ICLEI, Jeb Brugmann, “conceived and led promotion of L[ocal] A[genda]21 scaling worldwide through ‘national campaigns’ led by national associations of local government”. …

When a name crops up, make a note of it. [Father] Jeb Brugmann, one of the priests.

Many well-meaning citizens and local media are being drawn … into compliance through “Transform” programs, where a trained organizer facilitates public input sessions with the purported purpose to improve communities. 

“Community” shrieks the loudest alarm of all.

Though promoted as grassroots, these efforts do not originate in the targeted cities, nor are participant’s comments used. Instead, the meetings are guided [along] …  a “consensus” in line with pre-set goals consistent with “Transforming America Under UN Agenda 21.”

Far from a glob of stagnant bureaucracy, in the past 20 years the United Nations has developed a formidable circle of “volunteers,” including presidents and prime ministers, CEOs of international corporations, titans of global finance, non-profit entities and religious organizations, state and provincial lawmakers and governors, local players and naïve shoppers. Together they are creating and complying with a system that will measure and manage everything from AC batteries to zombie Nerf guns. And the Global Recording Initiative is bringing them all together “voluntarily” under a dark net of paperwork.

Totalitarian control is far easier to achieve now than it was in the Middle Ages when the Catholic Church attempted it (with a high degree of terrible success, even without the helpful technology of today).

Of course these supreme busybodies, these arrogant fools who believe they know what’s best for us, are doing it for the higher good of the (non-existent) “global community”:

The UN is clear about why it continues building a web of human control unprecedented in recorded history. [It declares:-]

An enabling global environment is a necessary condition for the post 2015 agenda [Agenda 21] to succeed, to set the global community on a course toward a 2030 which is more prosperous, more equitable, more peaceful and more just.

More prosperous? The success of Agenda 21 can only mean that everyone – except UNCPC priests and their inquisitors – will be poorer.

More peaceful? Not – we hope – as long as there are individuals who value their freedom and are prepared to fight for it, with guns if necessary. “Peace” is another alarm word in most contexts.

More just? By justice the priests mean wealth redistribution – the lion’s share going to themselves, the remainder doled out as pocket money  to the “community”. (Remember that “justice” can in fact apply only to individuals and their personal actions.)

For more about the deeply sinister Agenda 21, put it in our search slot. Become very alarmed. And armed.

Why did the West fail to claim an ideological or moral victory at the apparent end of the Cold War?

Did the West really even win the Cold War? 

Diana West asks these questions. She goes on:

If we go back in time and listen, we hear no consensus click over signs that an unalloyed US-led triumph over communist ideology had taken place; nor do we find a sense of national thanksgiving for the forces of good – or, at least, for the forces of better – in their triumph over the forces of a non-abstract evil as manifested in Gulag or KGB or famine or purge history. “Mustn’t gloat” was about as joyous as the White House of Bush No. 41 ever got.

The inability to proclaim victory loud and clear derives from the Christian injunction to be humble.

Almost everything that handicaps our civilization comes from its Christian legacy; and everything that drives it forward to discover and innovate, to attain greater prosperity, longer life – whatever  general conditions are needed for such happiness as we may individually be capable of – is the legacy of the Enlightenment, the awakening from the long dark nightmare of “God’s” reign, the rise of reason. It only  happened to the West. Reason and its children Science, Freedom, and the United States of America, made the West great; not, as those  lovers of the darkness, the god-worshipers, like to intone, the “Judeo-Christian” tradition.

All religions are the ideological enemies of the West. But yes, the Red ones,  Communism and its conjoined twin Environmentalism, are the most dangerous at present. They suffuse and weaken our culture and our civilization.

They are the New Christianities.

Diana West is right to diagnose Communism as the transforming blight.

Was the official non-reaction due to that “crisis of confidence” we always hear about — specifically, that “politically correct” failure to believe in the worth of the West? I used to think exactly that and no more. The self-loathing West, failing to see anything of value in itself, was simply unable to take satisfaction, let alone pride, in the demise of its mass-murdering nemesis. “After all,” the PC catechism goes, “Who’s to say the Western system is ‘better’ than any other?”

But there is far more to it. At a certain point, it becomes clear that what we are looking at isn’t a West that fails to appreciate itself anymore, but rather a West that isn’t itself anymore.

Decades of subversion by communist infiltrators and American traitors, collaborators and “useful idiots” have helped make sure of that. So, even if the military enemy went away after the dissolution of the USSR on Christmas Day 1991, our ideological enemy never even had to break step.

Cold Warriors might have prevailed abroad, but America lost the ideological Cold War at home. 

This helps explain why our college campuses are outposts of Marx, our centralizing government is increasingly invasive and dictatorial, and our culture is one of metastasizing decadence …

President Obama’s recent speech in Brussels, headquarters of the European Union, reveals the chasm between what we have become and what we are supposed to be. Wearing his “Leader of the Free World” hat, Obama made the case against Russia’s annexation of Crimea by conjuring a Manichaean split between free societies and dictatorships. But does it fit? 

According to the president, there are free societies where “each of us has the right to live as we choose,” and there are dictatorships where the rule is “ordinary men and women are too small-minded to govern their own affairs.” Americans confronting government-mandated health insurance would do well to wonder exactly which society they live in.

Obama continued: “In many ways, the history of Europe in the 20th century represented the ongoing clash of these two sets of ideas.” That contest, he explained, swerving wildly away from historical fact, was won “not by tanks or missiles, but because our ideals stirred the hearts” of Eastern Bloc anti-communists.

Omitted was the fact that these revolts were mainly crushed without US aid. Omitted also was the decisive role that President Reagan’s “tanks and missiles” – and missile defense – played in the military contest.

In this post-World War II era, Obama declared, “America joined with Europe to reject the darker forces of the past and build a new architecture of peace.”

Russia’s annexation of Crimea, in sum, is an attack on that “architecture,” and, as such, is bad.

On closer examination, however, that same US-EU “architecture” doesn’t support the free-society paradigm so much as what the president calls the “more traditional view of power” – the one that sees “ordinary men and women (as) too small-minded to govern their own affairs.”

This latter view aptly describes the “soft” tyranny of the EU nanny state, whose early lights, after all, were Belgian Socialists and Nazi sympathizers with visions of a unified pan-European welfare state. In Brussels, their political progeny – unelected bureaucrats – increasingly dictate political and social norms across a “United States of Europe”.

In the US, the medical totalitarianism of Obamacare – not to mention Obama’s serial usurpations of power (not enforcing legislation he doesn’t like, making up and enforcing legislation he does like) – makes it all too clear that this president has a dictatorial temperament.

This is unsurprising when you consider that his political baby, his engine of transformative change – state-mandated health care – happens also to have been an early program of the Bolsheviks, and had as one of its earliest US boosters a noted Stalinist named Henry Sigerist. This seems like as good a moment as any to remind readers that the UN and the IMF, those leading institutions of globalist infrastructure, were fostered into post-World War II existence by a pair of notorious American Soviet agents – Alger Hiss and Harry Dexter White.

Truly, it’s a Red, Red world.

In just five years, Barack Obama has succeeded in crippling the American economy and shattering the world order under the Pax Americana.

Americans feel the grave economic effects of his domestic policies more immediately and urgently, but it is the shattering of the world order that will ultimately change their lives for the worse.

President Vladimir Putin found that “he could  annex Crimea without firing a single bullet”. He has good reason to think that “he will later be able to do the same with the rest of Ukraine”. But he will probably “wait until the situation worsens and the impotence of the United States and Europe becomes even more obvious”.

That is part of the picture of the crumbling world order, described here by Professor Guy Millière (of the University of Paris), at Gatestone.

[Putin] apparently considers that he has in front of him a weak and declining America. And the general demeanor of the present U.S. administration tends to prove him right. The United States seem in full retreat. U.S. military budgets continue to fall. For the last five years, Barack Obama spoke of “ending” the wars in which the U.S. was involved, and he depends on Russia’s cooperation for further negotiations with Iran, for dismantling chemical weapons in Syria, and for withdrawing U.S. troops from Afghanistan. Putin doubtless thinks that Obama will not enter into an open conflict with Russia. Sanctions imposed on Russia by the United States are insignificant, and Putin has every reason to think they will not increase. …

[He] evidently considers Europe even weaker than America. The way European leaders speak and act shows that he is not wrong. For decades, Western European countries relied on the U.S. defense umbrella; none of them today has an army capable of doing more than extremely limited operations. Their foreign policy positions converge with the Obama administration positions. They all have deep economic and financial links with Russia and cannot break these links. The UK needs the Russian capital invested in the City of London. France cannot cancel its Russian warship contract without having to close its shipyards in Saint Nazaire, and without being confronted with major social conflicts. Germany could not survive long without Russian oil and natural gas. Overall, Russia provides thirty percent of the natural gas consumed in Western Europe. Putin apparently thinks that Europe will not enter into an open conflict with Russia. …

Either the West will stand up to Putin, and it will have to do it fast, or Putin will win. Obviously, Europe will not stand up. Polls indicate that Americans are turning sharply toward isolationism.

Showing his view of the situation, Obama recently said that Russia is nothing but a “regional power”, acting “out of weakness”.

What is Russia’s “region”?

Russia covers ten time zones and has borders with Europe, the Muslim Middle East, China, North Korea, and Alaska.

Yes, Russia has a common border with the United States. The US is in its region.  

If massing troops on the borders of Ukraine and annexing Crimea are signs of “weakness,” by its evident impotence, America appears even weaker.

Will Putin be content with annexing Crimea, or even the whole of Ukraine?

Several plebiscites have been held since 2006 in Transnistria, a strip of land between Ukraine and Moldova, and each of them has indicated a willingness to join Russia. Estonia includes a large Russian minority, and Russian leaders in Moscow speak of the need to “protect” the Russian population of Estonia.

Estonia is a member of NATO. If Russia were to attack it, NATO, according to Article 5 of its charter, should defend it with prompt military action. But would it?  NATO’s military power is America’s military power. Under Obama,what chance is there that America would go to war in Europe?

The world order built after the Second World War was shaped by America. For almost five decades, its goal was to contain Soviet expansion. In the late 1980s, the Soviet empire collapsed, and another phase began: an arrangement in which America would keep the peace and assure the survival of liberty.

America has apparently abrogated that responsibility.

And if Russia is not deterred, other powers will be encouraged to advance their interests abroad by force.

Rogue leaders around the world are watching and drawing their own conclusions.

[The Iranian Ayatollah] Khamenei sees no reason to stop saying that America is the “Great Satan” and that Israel has to be wiped off the map. China sees no reason to hide its intention to occupy the Senkaku/Diyaoyu Islands. Last week, North Korea’s Kim Jong Un fired six missiles into the sea of Japan. [President] Nicolás Maduro of Venezuela reaffirmed its alliance with Russia and positioned Russian missiles in Caracas.

Guy Millière predicts that the chaos will increase and speed up. He sees disaster coming fast.

If we do not see the Ukraine as a warning signal, we could quickly discover that life could now easily enter the state of nature in Hobbes’s Leviathan: [solitary, poor,] nasty, brutish and short.