Category Archives: Energy Policy

IEEE and U.S. Hegemony

In IEEE‘s flagship magazine, Spectrum, there is a fairly idiotic editorial warning Europeans against buying natural gas from Russia.

Why can’t the European Union just adopt a strategy of energy independence and wean itself from Russia and the “stans”?

Of course, there is no way for Europe to be “independent” with respect to natural gas. There aren’t sufficient reserves in Europe to meet the current demand. A reduced supply of natural gas will necessarily result in higher prices for energy. Higher prices for energy translate to reduced economic development and everybody being poorer. Why should the Europeans impoverish themselves?

Of course, the writer of the editorial, William Sweet, is not really opposed to Europeans purchasing gas from non Europeans; he praises a pipeline being developed to ship it from Nigeria.  Rather, he seems upset with people buying gas from Russian suppliers. Why?

Russia has repeatedly shown its willingness in recent years to cut off gas supplies for political reasons, basically to bring countries it considers its satellites to heel, notably Ukraine. Of course it wouldn’t dare cut supplies to a country like Germany, which gets about half its gas from Russia. But where German and Russian interests and values collide, Russia could manipulate markets to get its way and use the threat of its market power to ward off diplomatic or military action.

In other words, if Europeans are trading with Russians, they might refuse to back some third party who is contemplating some intervention targeting Russia. Hmm, I wonder who this unnamed party might be?

A recent survey by London’s Financial Times found that European mistrust of Russia has increased sharply in the past six months: the proportion of respondents who consider Russia the greatest threat to world stability rose from just a few percent in July to nearly 20 percent in September, putting it well ahead of Iran and almost as high as China. It may come as a shock to many American readers, however, that the United States still ranks in European minds as the greatest threat to world stability, scoring over 25 percent in September.

And here we see the problem. If Europeans are trading with Russians, they might not side with the U.S. in a dispute with Russia.

This article highlights why I have mixed feelings about my IEEE membership. The work it does in developing and maintaining standards is wonderful. But their consistent support for the American military-industrial complex gives me pause. Like IBM supplying Hollerith tabulators to the Nazis with no concern for what they were being used for – there is no U.S. military or security program, no matter how abusive of civil liberties or vulnerable to tyrannical misuse that IEEE won’t support. Normally the IEEE leadership concerns itself solely with the technical problems that are needed to enhance U.S. government power.  In this case, the Spectrum editorial board is going further and demanding that European politicians adopt policies solely for the benefit of the U.S. government (and to the detriment of people living in Europe).

Yes, the Russian government has imperial ambitions. Yes, Putin’s government is a fascistic one. However, if Russians are trading with Europeans, if the Russian economy integrates with the European one, the likelihood of of a Russian millitary attack of Europe is much lower.  Increased economic integration between Europeans and the people living in former Russian satellites will also reduce the likelihood of conflicts between Russia and the satellites as well (especially since it would lead to greater Russian/former satellite integration as well).

Bastiat’s dictum applies:

If goods don’t cross borders then armies will.

The U.S. government’s global hegemony is ending. If IEEE wishes to retain its technical leadership in a multipolar world, it should stop viewing itself as a unofficial arm of the U.S. government and stick to its valuable work in developing standards.

I am an anarcho-capitalist living just west of Boston Massachussetts. I am married, have two children, and am trying to start my own computer consulting company.

Third Party Debate

The City Club of Cleveland extended an invitation to the top six presidential candidates*. Of the six candidates, Libertarian Party candidate Bob Barr, Constitution Party candidate Chuck Baldwin, and independent candidate Ralph Nader participated; Democrat Barack Obama, Republican John McCain, and Green Party candidate Cynthia McKinney were no-shows.

Unlike the debates we have already seen in this cycle, the candidates in this debate actually debated the issues!

*The candidates who could theoretically receive the requisite electoral vote to win the presidency

One Congressman Stands Up For Sanity

Ed Schafer, US Secretary of Agriculture, seems to think we need to bail out the ethanol industry:

Agriculture Secretary Ed Schafer’s statement on Oct. 17 that the U.S. Department of Agriculture could provide ethanol companies that got into trouble by speculating on corn with up to $25 million per company in refinancing has caused a firestorm of criticism among ethanol critics who say he is favoring one segment of agriculture and might waste taxpayer money.

According to a report on Agweb.com, Schafer said at the World Food Prize symposium in Des Moines, Iowa, “There’s going to have to be some credit applied to companies to buy some lower-priced corn to blend with their higher-priced corn. This is important public policy for the country because corn-based ethanol is a stepping stone to energy independence through cellulosic ethanol. We’re going to continue to support it as much as we can. We have the responsibility to make sure we cement in the infrastructure of rural America and ethanol production has increased the economic opportunities, the jobs and the building of rural America.”

One can’t claim that these companies are “too big to fail” or that their failure will endanger our entire economy. One can’t claim, with any sense of honesty, that the ethanol experiment has really done much positive for America. In reality, one can’t say a good word about this mess.

Which just proves, once again, that government is more than willing to engage in theft of tax dollars and redistribution to industry in order to satisfy the politically-correct goal of the day. And nobody will stand up to them… Scratch that– nearly nobody:

Ethanol plants may be the next beneficiary of a federal bailout and Mesa congressman Jeff Flake is among those opposed to that idea.

Flake, a fiscal conservative, panned the plan Wednesday saying federal promotion of ethanol production is the problem. “The federal government’s ethanol policies have driven up the price of corn,” said Flake. “But rather than reforming the policies that have caused a spike in corn prices, the federal government wants to bail out ethanol producers who speculated on the price of corn. Only the U.S. Department of Agriculture could dream up a policy like this.”

Flake said tax breaks and credits for ethanol producers should be repealed. “The high price of corn has had a ripple effect over our entire economy. Instead of trying to bail out every industry hurt by it, the federal government needs to take a serious look at reforming our ethanol policies,” said the East Valley Republican.

I’m never one to look to Congress to solve my problems; nor do I think that elections are likely to improve our collective lot. But it’s good to see someone who wishes to stand athwart the tide, and I can’t say I’d mind seeing a few more like him.

Why Libertarians Should Vote: Threats to Liberty from the Left and the Right on the Colorado Ballot (Part 2 of 3)

Cont’d from Part 1

What motivates these very nice people to be such tyrants? Some will vote in ignorance of the issue* and others out of a sense of ‘social justice.’ Very few will intentionally vote to take liberty or property from a fellow citizen; most will vote to do so out of a well intentioned but misguided sense of right and wrong.

The Colorado ballot contains 18 ballot measures, most of which are proposed amendments to the state’s constitution. About half of these measures would restrict liberty, increase taxes, or otherwise punish individuals for activities which ought not to be a crime in a free state or country.

Threats to Liberty from the Left

Union backed amendments 53, 55, 56, and 57 are all very hostile to business. Amendment 53 targets business executives for criminal liability (as if business executives are not already criminally liable for committing crimes), 55 would change Colorado from a “right to work state” to a “just cause state,” 56 requires employers with 20 employees or more to provide health coverage for employees and their dependants, and 57 would put employers at greater liability than the existing workman’s comp laws.

All of these amendments would make Colorado a less attractive place to do business and would likely mean fewer decent paying jobs. Like most populist proposals, the people who the advocates of these measures are trying to help would be hurt the most.

Amendments 51, 58, and 59 concern taxation. Amendment 51 would increase the sales tax to fund programs for the developmentally disabled, 58 directly taxes the oil and gas industry (Coloradans who wish to pay more for gas should support this measure), and 59 redirects funds which under current law are rebated to taxpayers under the Taxpayer Bill of Rights (TABOR) to an education savings fund.

Given governments’ track record of mismanaging taxpayer money (especially given what’s going on in Washington), I am in no mood to pay additional taxes or allow the government at any level to keep more no matter what the reason.

Threats to Liberty from the Right

While many of the ballot measures are economically on the Left, at least one is socially conservative. Amendment 48, the so-called “personhood” amendment would amend the Colorado Constitution to define all fertilized eggs, embryos, and fetuses as people complete with all legal rights associated with being a person. Clearly, this amendment is an attempt to ban abortion in the state of Colorado. Inevitably, if 48 is passed, there will be legal challenges which 48’s proponents hope would ultimately lead to overturning Roe v. Wade.

Amendment 48 makes no exceptions for rape** or incest. While there is an exception for abortion in the event that the life of the mother is threatened, opponents of 48 believe that doctors would put women at unnecessary mortal risk out of fear of being prosecuted for murdering the unborn. Because a fertilized egg would have the same legal rights as a person, a woman and her doctor could face life imprisonment and even the death penalty (someone explain to me how this is “pro-life”!).

Opponents of 48 also fear that doctors would be compelled to violate doctor/patient confidentiality as they may be required to report miscarriages to the authorities if s/he has the slightest suspicion that the miscarriage was caused intentionally***.

Giving fertilized eggs a definition of personhood would also:

– Ban commonly used birth control such as the birth control pill and the morning after pill
– Ban embryonic stem cell research (both public and private)
– Raise additional legal reproductive rights questions on issues with regard to artificial insemination

Despite what both pro-lifers and pro-choicers say, the abortion issue is very complex and there is plenty of room for debate on the merits of this issue among libertarians. What I would hope abortion foes would realize is that this measure has implications far beyond a legal prohibition of abortion.

NEXT: Why Libertarians Should Vote: Restoring Liberty via the Ballot Box (Part 3 of 3)

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Inconvenient Convention Facts and Fictions Exposed

Now that the conventions are over, it’s time to separate the facts from the fiction. With so much misinformation being peddled by the political campaigns (not to mention rumors spread through e-mail, the internet and the MSM), this is very often a difficult task. My approach is to be skeptical until I am satisfied that I have looked at a variety of sources which I believe to be objective. Snopes and Factcheck.org are among the sources I use as a starting point.

The video below comes from factcheck.org. I generally trust this site because, in my judgment at least, they seem to be very even handed in their analysis,* they cite their sources, and go into detail as to how they arrive at their conclusions. This video provides an overview of the misleading statements made in Denver and in St. Paul; the website goes into more detail about these statements complete with sources.

(If the video fails to play, click here to watch)

A few observations:

This b.s. about “giving tax breaks to Big Oil companies” is maddening. Businesses, whether large or small, should neither pay taxes nor be subsidized. Businesses only pay taxes on paper; taxes are passed down to employees in the form of lower wages and higher prices for consumers. Why do we assume that the money that companies or individuals make belong to the government in the first place? If McBama was truly interested in creating jobs, reducing the price of groceries and gas, and improving the overall economy,** he would eliminate taxes and subsidies for all businesses. This would encourage businesses to bring jobs back to America rather than leaving America to escape the tax code. If the practice of subsidizing failing businesses ended, companies would have to survive by producing goods and services people actually want. Now that’s the “change” that I believe in!

Mike Huckabee. What can I say? As bad of a choice as John McCain is for the Republican ticket, the Republicans would have done much worse with Huckabee. Either Gov. Huckabee is insanely bad at math or he deliberately lied to the G.O.P. delegates and the country about Sarah Palin receiving more votes as Mayor than Joe Biden did in the Democrat primaries. Did he really think that no one would check? Did he really think that he was helping the McCain campaign?

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