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Mihail Manoilescu – Beyond Taboos and Clichés
Outside Brazil and Romania, Mihail Manoilescu is essentially a forgotten economist, and, even in the latter, when his name is mentioned he is generally taught as a trade or protectionist theorist, although he is a development, growth, trade and industrial planning theorist rolled into one. In the end, he was essentially an implicit macroeconomic theorist at a time when macroeconomics was just being established. What little was assimilated from him by post-war Anglo-Saxon economics happened indirectly and almost by chance, through out-of-the-Paul Samuelson-mainstream economists who – maybe because of his tainted ideological stands, or because of Romania’s fall into obscurity after the establishment of the communist regime – rarely mentioned his name, such as Paul Rosenstein-Rodan’s theory of development traps or Ráoul Prebisch’s theory of commodity dependency cycles, despite the fact that in the 1930s he commanded enormous intellectual and policy influence. Back then, he was as a sort of intellectual icon for the Geneva institutions’ group of less developed economies – the League of Nations’ nascent IMF/World Bank/WTO of the era – against the political economy orthodoxy of the day as well as a regular speaker at Davos-style conferences organised by the far right regimes of António de Oliveira Salazar, Benito Mussolini and also that of Adolf Hitler. More
The Geopolitical Game of Thrones and Europe’s Energy Crisis
Ever since the Russia-Ukraine conflict started, it has evolved into an economic war between Russia, on the one side, and the European Union and the United States, on the other. While the US and the EU imposed heavy sanctions to cripple the Russian economy due to its actions in Ukraine, President Putin has played the geopolitical “Game of Thrones” so well that now Europe is facing an economic crisis. The EU annual inflation rate for energy has touched a record high of 42%, food inflation has increased to 9.8% – the highest in 20 years –, and now the GDP growth rate is slowing down, with Russia being blamed for this. At the same time, rising inflation is ending an era of negative real interest rates and increasing the risk of a fracturing Eurozone economy. More
The Frontier of Science Is Expansive and Expensive
The CERN physicists announced, around mid-March 2013, that the particle discovered a year before, which they had claimed to be the Higgs boson “with 99% certainty”, had gained another “1% of certainty”. That is it, the verdict is in! The particle which bestows mass on us, the source of our weight, has become a factual given. We have found the Creator among quanta, but we still need to search deeply into our souls to find Him, if we want the mystery of Creation to ever be completely revealed to us. The attempt to re-create the Creation remains a costly business. More
CAPITOL LETTERS (Ep. 7): The Noble (and Nobel-Winning) Losing Fight Against Poverty
In the essay The Soul of Man Under Socialism, Oscar Wilde puts forth a mindboggling argument for socialism. The poet thereby finds poor people uncomely, so he’d want someone (or something) to redeem them from the desolation of this “picture”. The Wildean argument for socialism turns explicitly aesthetic in its essence: the artist within him wishes for a social order where the problem of aesthetic deficiency is central(ized). If the “aesthetically challenged” were eradicated and the “aesthetically gifted” were privileged, everything would be great. And there was no shortage of intellectuals who chose the comfort of complicity with the “cultural militia”. Nevertheless, both a priori and a posteriori, socialism, egalitarianism or, in other words, hyper-statism is a triple monstrosity: economically, ethically and, yes, aesthetically too. To wit: the social realism in “art”, the depersonalizing ethics of “the commune” and “the economics of penury” – the three heads of a hideous hydra. More
An Analysis of Basel III: An Accord That Risks Becoming Obsolete Even Before Coming into Force?
The Basel III accord was eagerly anticipated and its adoption had a significant positive effect on the banking stocks in late 2017. Of course, there were other considerations behind the positive sentiment, such as the progress recorded by the Brexit talks between the European Union and Great Britain at that time. For analysts, however, the lion’s share of this positive outlook was attributed to the fact that, after almost two years of negotiations with behind-the-scene stratagems and a great deal of lobbying, the leaders of the biggest central banks had succeeded to reach a compromise regarding the new Basel III regulations, which would have an important impact on the activity of the commercial banks. According to the statements of certain officials, this framework was intended to be final. More
Protecting Fiscal and Constitutional Integrity
Liberty thrives under rule of law when it applies equally to all. What Francis Lieber called institutional liberty hinges on a willingness of the public and their leaders to recognize and uphold constitutional limitations on the state. Civil liberty and self-government suffer when the law is misused as an ideological instrument to remold society. Given the relative ease with which institutions are captured and diverted from their original purposes, political courage is required to resist, oppose, and reverse any acquired needs or rights which might result. Two 19C American exemplars of principled resistance to plunder are President Grover Cleveland and Justice Stephen Field. More
CAPITOL LETTERS (Ep. 6): The Gam(bl)er (Former and Future?) POTUS
As a student, I used to sleep at night, as my days were fulfilling and filled with my studies and the like. My nights as a student in the dorm room were (for the most part) buzzing with an “audio-video” ecosystem. I contributed to the “video” aspect with a blindingly bright lamp that glowed with the power of the noon Sun itself, which watched over me as I dozed off to sleep under the sway of a book or gazette. The “audio” side was supported by my nocturnal roommates, masters/slaves (?) of games – video games, to be more precise. The poorly silenced background noise that occasionally startled me in the dead of night was woven of dialogues, spoken ritualistically and rhythmically with the melodic cadence of a talking lathe. Yet, it was not my companions that spoke. It was the “conversation” between the interfaces of the video games and the players viewing them on the screens, its phraseology both mechanistic and minimalistic. Into that blurry state between wakefulness and sleep, between reality and dreams, the environment would pour into my ears either the robotic “communiqués” of the proto-AIs in Age of Empires and Warcraft (strategy rodeos) or the commando-esque “communication” from Counter-Strike and Half-Life (adrenaline simulators), only rarely interrupted by rounds of human speech, except for when multiplayer sessions were in order. More
Give Us, God, Our Daily Experts (Part I)
On the concept of expert, as semantically opposed to the concept of the politician, I had spoken many times before, including, if I remember well, under this heading too. More exactly, in principle, the politician is an expert of purposes, while the expert is a politician of means. Beyond the paronomasia involved, I want to say that the politician should be required to establish the purposes by ignoring the necessary means for their achieving, while the expert should be required to establish the means (most) appropriate for a given purpose. One consequence of such a Manicheism is the following: it is recommended to avoid the appointment of a (genuine) expert as a minister, for example, and, symmetrically, to avoid the appointment of a politician as an expert. Of course, the social practice usually ignores such a “normative” conclusion. However, essentially, this time, I do not want to take over this important distinction, but I would talk about the army of experts (some of which being genuine and some impostors), generally giving consultations through the TV screen on any issue you could imagine. More
CAPITOL LETTERS (Ep. 5): The Antinomies of the Universe
Philosophers, scientists, theologians, all appear to live with a somehow implicit and inbuilt mindset that the physical/metaphysical Universe is, despite its obvious oneness, a binary being. More
Voices from the Goulash Archipelago
Hungarian Prime Minister Viktor Orbán has made his yearly pilgrimages to Băile Tușnad (Tusnádfürdő in Hungarian) in Romania into opportunities for oracular speeches on the fate of the Hungarian nation and for the West. This is part of his successful attempt to portray himself to the electorate back home and in the Hungarian near abroad, but also for partners in the West and the East, as a visionary statesman addressing civilizational and national decline rather than just another opportunistic politician seeing a line he could cynically use. His forays into ideological dialogue with American and European political forces (through appearances by him and his allies in CPAC in the US and the recent National Conservatism Conference in Brussels) have made him a persona non grata to the European liberal set, but also raised his and his country’s stature in the minds of disaffected Westerners. His recent speech in Băile Tușnad / Tusnádfürdő was erudite and wide ranging, and inspired significant outcry in Europe and, partly, in the US, through his use of racial language in describing Western decline and his hopes for Hungarian continuity and flourishing. Everybody and his mother are either praising or attacking Orbán for this speech and I thought I would briefly throw my hat into the ring, not necessarily for commenting his speech but rather the metapolitical context in which it was made. More
CAPITOL LETTERS (Ep. 4): The Smithsonian Republic of Knowledge
Patronage is living proof that exceptional public goods can be produced, at least in part, privately. And this goes against the emphatical treatises on economics that theorize and preach the contrary. And when the theory seems far too dry for a journalistic incursion, history comes with (un)sweet(ened) evidence. In the summer of 1829, a certain James Smithson had bitten the dust in Italy, the one from whose glorious gens, that of ancient Rome, Gaius Maecenas descended, diplomat and advisor to the emperor Octavian Augustus and documented as, indeed, the first “patron of the arts”. Smithson, a respected British chemist and mineralogist (after whom zinc carbonate was dubbed Smithsonite), an early member of the Royal Society of London (only a year after graduating from college), had left behind him a will with a strange stipulation: should his only grandson die without issue, his fortune would go the way of the United States of America “to found at Washington, under the name of the Smithsonian Institution, an Establishment for the increase and diffusion of knowledge”. Okay, but what’s the catch? Smithson had never set foot in America! More
Today We Are Paying the Bill for Rapid Economic Growth
Rapid economic growth brings a lot of good things. If it also improves people's quality of life then we can talk solely about the benefits themselves. Except that something makes a difference. This rapid prosperity has to be paid for, sometimes long after the fact.Today we are faced with a confluence of many adverse phenomena and events. The Covid-19 Pandemic and the war in Ukraine accelerated the crisis and in fact already in some countries recession and caused a multi-level spiral of consequences. Added to all this is the global climate crisis. More
