Libyan Business

Whatever Gaddafy was, he was none of our business.  If Libyans did not like their leader, then it is there job to deal with him.  When the people of Iran did not care for USA puppet Shah of Iran, they threw him out, even against USA wishes.  The Iraqis could have done it for themselves, the Egyptians did it earlier this year, there is zero reason for USA to be involved.

The result now is our friends in Libyan are murderers.  How is that going to work out?

When conspirators plotted to overthrow their Queen Mary Queen of Scots, they fled to Mary's cousin and rival Elizabeth R for protection. After explaining all they had done to overthrow their Queen, so Elizabeth could take over Scotland, she had these pro-Elizabeth Scottish rebels executed after inquiring as to what right these rebel had to overthrow their queen, Mary?  "Well because she is wicked..."

"And if you judged me, Elizabeth, wicked you could overthrown me also?"

Hmmm... she had them executed.

After Roman senators and Army leaders murdered the wicked Caligula, with a view to re-establishing freedom in the Roman Republic, they in turn were executed by Claudius, the beneficiary of Caligula's death, executions that met with popular acclaim.

This overthrowing leaders is a tricky business.  The people who murdered Gaddafy now have the problem of pleasing their paymasters in Washington, or they will be replaced by someone who will.  In the same measure, they must betray the Libyan people, which means the new leaders will be far more oppressive than Gaddafy ever was.

USA is a socialist country, so it cannot quite account for what things cost.  And thus USA charges too much to do too much.  Communist China is more free market (I swoon!) so they know what things cost, and are able at once to stalemate our imperial efforts worldwide at far less money than we spend, and charge their satraps less for hegemonic services rendered.  (And, not to put too fine a point on it, China knows exactly what we are spending, because they lend it to us.)

Occupy Wall Street is owned by Geo Soros, so he has them barking up the wrong tree.  The Tea party is owned by the Koch brothers, so he has them rabidly pro-war.  The protests will yield more of the same warfare/welfare state.

Nothing will really change.  The Libyan oil will still flow to China, just with French and Italian mercenaries adding a couple of percent for doing the Gaddafy hit.  The Chinese will pay this when they still buy the oil, but the Chinese will deduct it from other income streams coming to French and Italians.  Whereas the money before would flow to rather left wing elements in those countries, it will now, compliments of USA, flow to rather right wing elements.  It is just big business.

When Reagan was elected, Detroit was on the ropes.  Japanese built better cars cheaper than Detroit, which is not saying much.  Everyone blamed labor, ignoring the fact that labor costs are not a factor in int'l trade, it is management and its costs that make the difference.  (Hence all "comparative advantage" in practice is politics).  The goal was to artificially inflate the cost of Japanese cars so Detroit could raise their prices and still be somewhat competitive.

The democrats did not get their huge tariff increase on Japanese auto imports that they wanted, because the republicans, now in charge, were for "free markets."  Instead, the Republicans worked out a regime of Voluntary Restraints, where the Japanese would not export as many Honda Accords as they could sell in USA.  What happens when there are not as many Hondas in USA as demand requires?  Why the price increases.  As the price of Hondas went higher and higher, Pontiac and Chevrolet could drive prices higher and higher, to cover ever more waste and fraud.  (Voluntary restraints are hardly a feature of a free market.)

Now, instead of the government collecting more duties and getting more money for democrats to spend, the Japanese made more money selling less cars to USA, and the money was spread among Republicans.

And please note, either way, the USA consumer gets screwed.  But back to the ballot box they go, picking one over another, hoping not to get screwed, but only picking which way they get screwed.

But of course there is more.  Up to 1980 japan had been working to low end of the USA auto market,  Since the restraints were on cars as units, the japanese began making more and more luxurious cars for the USA market, to sell more car with each car sold.  So comes Lexus from Toyota and the Acura from Honda and Datsun changed its name to Nissan and upscaled with the infiniti.  These cars crushed the USA luxury market.  Unintended consequences.

I recall in the late 1980s an auto dealer stating plainly business is better under republicans.  No doubt.  There were things going on with declared values and pricing and so on that people in that business are still not willing to mention, even after retirement.  It would make a good book.

O, and President Reagan walked out of the White House at the end of his term, got onto an airplane, flew to Japan, made a speech, and pocketed $2 million.  Chump change.  Clinton has made over $65 million on speeches.  It's how pay for services rendered is now made.  After Obama is relieve in 2012, his speeches in Brazil, regarding oil, will have him rolling in millions.

In the meantime, it becomes harder and harder to start a business in USA. We are not even in the top ten of start-up friendly countries.

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