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551. Lessons from the European Crisis

Author:
Jurgen Stark
Publication Date:
10-2013
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
It was one of the author's predictions in 1998 that the euro zone would end up teaching us more about economics compared to what economics could teach us about the euro zone. While many of the author's predictions of that year did not hold, including the forecast that the euro would challenge the dollar as the world's foremost reserve currency, this particular prediction ultimately turned out to be correct. A monetary union is a hybrid between a fixed exchange rate system and a unitary state, one that is fully captured neither with closed-economy macro models nor classical international macro models of fixed exchange rates.
Topic:
Government
Political Geography:
Europe

552. Regional Overview: Rebalance Continues Despite Distractions

Author:
Ralph A. Cossa and Brad Glosserman
Publication Date:
10-2013
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Center for Strategic and International Studies
Abstract:
It was a rough four months for the US as Washington struggled to convince Asian audiences that the “rebalance” is sustainable given renewed attention to the Middle East, even before the Syrian crises. US engagement in Asia was multidimensional with participation at several ministeriallevel meetings, a visit by Vice President Biden, continued pursuit of the Trans-Pacific Partnership, and a show of military capability in Korea. But, it isn't clear North Korea got the message. Kim Jong Un seems to have adopted his father's play book: first create a crisis, make lots of threats, and follow up with a “smile diplomacy” campaign. So far, Washington has stuck to its game plan, insisting on a sign of genuine sincerity before opening a dialogue with Pyongyang. Finally, the US image in the region was damaged by revelations about classified NSA intelligence collection efforts.
Topic:
Government
Political Geography:
China, Washington, Asia, and North Korea

553. US-Japan Relations: Abe Settles In

Author:
Nicholas Szechenyi and Michael J. Green
Publication Date:
10-2013
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Center for Strategic and International Studies
Abstract:
Prime Minister Abe focused intently on economic policy and led his Liberal Democratic Party to a resounding victory in the July Upper House election, securing full control of the Diet and a period of political stability that bodes well for his policy agenda. Multilateral gatherings in Asia yielded several opportunities for bilateral and trilateral consultations on security issues, and the economic pillar of the alliance also took shape with Japan's entry into the Trans-Pacific Partnership negotiations and discussions on energy cooperation. Comments on sensitive history issues sparked controversy but did not derail bilateral diplomacy. The nomination of Caroline Kennedy as US ambassador to Japan marks a new chapter in the relationship.
Topic:
Economics and Government
Political Geography:
Japan

554. Australia-East Asia/US Relations: Election plus Marines, Joint Facilities and the Asian Century

Author:
Graeme Dobell
Publication Date:
10-2013
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Center for Strategic and International Studies
Abstract:
The 12 months under review saw the unfolding of the withdrawal timetable from Afghanistan, the second rotation of US Marines to northern Australia, the first “Full Knowledge and Concurrence” statement on US facilities on Australian soil in six years, and the end of Australia's long-term military deployments in Timor Leste and Solomon Islands. The Gillard government produced a trio of major policy statements built on an understanding that Asia's “extraordinary ascent” means Australia is entering “a truly transformative period in our history.” In the words of the Australia in the Asian Century White Paper: “In managing the intersections of Australia's ties with the United States and China, we will need a clear sense of our national interests, a strong voice in both relationships and effective diplomacy.” Meanwhile, Australian politics experienced a bit of turmoil. The Labor government discarded Australia's first female prime minister in an attempt to appease the voters, but instead the voters discarded the Labor government. So it was that in the national election on Sept. 7, Australia got its third prime minister in the same calendar year. After six years of Labor rule, the LiberalNational Coalition led by Tony Abbott is back in power. Plummeting opinion polls had caused the Labor Parliamentary Caucus to vote out Julia Gillard as leader in June and elect Kevin Rudd as prime minister. Thus, Labor returned to the man it had thrown out of the prime ministership in 2010, afraid he could not win the looming 2010 election. Facing the prospect of another federal election, the Caucus this time dispensed with Gillard and gave Rudd a second chance as prime minister. Rudd, though, carried the weight of Labor's six years in office and the wounds of his bitter three-year leadership wrangle with Gillard, a struggle that had eaten at the government's standing and morale. Abbott's simple message was a Coalition alternative to the disunity, drama, and spectacular hatreds of the Labor years, allowing the Liberal leader to run a campaign that was singularly light on policy commitments. In the end, not being Julia Gillard or Kevin Rudd was enough for an Abbott triumph.
Topic:
Security and Government
Political Geography:
East Asia and Australia

555. The Roots of the IRS Scandal

Author:
Steve Simpson
Publication Date:
10-2013
Content Type:
Journal Article
Journal:
The Objective Standard
Institution:
The Objective Standard
Abstract:
The revelation in May of this year that the Internal Revenue Service (IRS) was systematically targeting Tea Party and other conservative groups for special scrutiny under the laws governing nonprofit organizations shocked the nation and triggered one of the Obama administration's biggest scandals to date. According to a Treasury inspector general's report, in May of 2010, agents in the IRS's Cincinnati office began singling out applications for nonprofit status from groups with terms such as "Tea Party" or "patriot" in their names. The agents conducted lengthy investigations of the groups to determine whether they intended to spend too much of their money on political activities that are prohibited to most nonprofits.1 The IRS required some groups to answer long lists of questions about their intentions, it demanded donor lists from others, and it even examined Facebook and Internet posts.2 Some groups simply gave up and withdrew their applications. Others spent two years waiting for a decision that never came.3 When Congress investigated the scandal, Lois Lerner, the former head of the office that oversees nonprofit organizations, invoked her Fifth Amendment right against self-incrimination and refused to testify. Later, hearings revealed that Douglas Shulman, the former head of the IRS, was cleared to visit the White House at least 157 times during his tenure and that IRS chief counsel William Wilkins, who was one of two Obama appointees at the IRS, helped develop the agency's guidelines for investigating the Tea Party groups.4 As a result, critics of the IRS have good reason to think that the scandal reaches the highest levels of our government. The public's outrage over this scandal is, of course, entirely appropriate. If the government can enforce laws based on nothing more than one's political views, then both freedom of speech and the rule of law are dead. But the outrage over the IRS's focus on conservative groups obscures a far more important question: Why was the IRS investigating the political activities of any group? The answer to that question is more troubling than the possibility of rogue IRS agents, biased law enforcement, or even abuses of power at the highest levels. As bad as all of those things are, the bigger threat to freedom is a legal regime that requires scrutiny of Americans' political activities and a political and intellectual culture that applauds such scrutiny and openly calls for more of it. This is the situation in America today. Our tax and campaign finance laws impose a host of regulations on Americans based on how much time, effort, and money they spend on political speech, and many opinion leaders agitate for even more laws and investigations every day. Against this backdrop, the IRS scandal should not surprise us. Our politicians and intellectuals demanded regulation of some of the loudest voices in our political debates, and the IRS delivered. Unfortunately, far too many critics of the IRS have accepted the premise that our laws should distinguish between groups that spend money on political activities and groups that do not. Expressing this view, Washington Post columnist Ezra Klein has argued that the real scandal was that the IRS did not treat all nonprofits as harshly as it treated the Tea Party groups.5 Using the same reasoning, congressional Democrats have attempted to blunt the scandal by claiming that the IRS also investigated some groups on the left.6 It appears that these claims are untrue, but the message is clear: As long as the government is scrutinizing everyone's speech equally, then there is no scandal. But this is the opposite lesson to learn from the IRS scandal. For anyone who cares about freedom of speech, the real scandal is that the government regulates Americans' campaign spending at all. So long as laws remain on the books that do so, scandals such as this one-and far worse-are inevitable. But to understand why that is so requires a deeper understanding of the premises on which the laws are based and how the laws operate in practice. . . .
Topic:
Government
Political Geography:
America and Washington

556. The Real Crash: America's Coming Bankruptcy

Author:
Michael Dahlen (reviewer)
Publication Date:
10-2013
Content Type:
Journal Article
Journal:
The Objective Standard
Institution:
The Objective Standard
Abstract:
From 2006 to 2007, Peter Schiff, CEO of Euro Pacific Capital, was one of few people warning that the U.S. economy was fundamentally unsound and that real estate was grossly overpriced. In his first book, Crash Proof: How to Profit From the Coming Economic Collapse (2007), he predicted that the economy, the housing market, and the stock market would fall apart. He also voiced these predictions on several cable news shows, yet few people heeded his warnings. Some hosts and other guests even mocked and ridiculed him. But Schiff was right. In his recent book, The Real Crash: America's Coming Bankruptcy-How to Save Yourself and Your Country, Schiff says that the worst is yet to come and that the 2008-2009 economic crisis was merely a "tremor before the earthquake." Schiff argues that the main culprit of our economic instability is America's central bank: the Federal Reserve. Through its control of the money supply and the effect this has on interest rates, the Fed artificially inflates the prices of various asset classes, creating so-called "bubbles," and when those prices inevitably collapse, the Fed then inflates the prices of other asset classes. "Throughout the 1990s," Schiff observes, "we had the stock bubble and the dot-com bubble. The Fed replaced that with the housing bubble and the credit bubble. Now, the Fed and the administration are replacing those bubbles with the government bubble" (p. 20). By "government bubble," Schiff is referring to the U.S. dollar and Treasury bonds. When asset prices collapse and recessions ensue, Schiff notes, the Fed-via bailouts and low interest rates-props up insolvent banks and other companies (while also helping to finance government debt). It has taken these actions allegedly to minimize the short-term pain of recessions, but in doing so, the Fed has prevented the economy from correcting itself, making it increasingly unsound. "If you keep replacing one bubble with another, you eventually run out of suds. The government bubble is the final bubble" (p. 23). If the Fed keeps interest rates artificially low and if the government keeps running massive budget deficits, the day will come, Schiff argues, "when the rest of the world stops trusting America's currency and our credit. Then we'll get the real crash" (p. 1). In his introduction to the book, Schiff explains that he is taking a different approach here than he took in his previous books: "[T]his time I have decided that rather than simply predicting doom, I would lay out a comprehensive set of solutions. That's why I wrote this book" (p. 2). After diagnosing our economic problems, Schiff explains how we can fix them. . . .
Topic:
Economics and Government
Political Geography:
America

557. Living Proof

Author:
Mikayla Callen (reveiwer)
Publication Date:
10-2013
Content Type:
Journal Article
Journal:
The Objective Standard
Institution:
The Objective Standard
Abstract:
In her debut novel, Living Proof, Kira Peikoff addresses one of the hottest issues today-religious dogma versus individual rights-in the form of a conflict between the "rights" of embryos and the rights of people to engage in embryonic stem cell research. Living Proof is set in the not-too-distant future, the year 2027, in which the government has placed bans on any type of research on embryos and embryonic stem cells as part of an embryonic rights movement. The legal manifestation of this movement is the Department of Embryo Preservation, or DEP, whose sole purpose is to ensure that no embryos are used for research or destroyed in any way. The devoutly religious director of the DEP, Gideon Dopp, prides himself on his position at "the noblest of all government agencies" (p. 332), where he is responsible for "weeding out sinners to protect innocents" (p. 331). He makes it his personal goal to ensure that no embryos are harmed. [The DEP] mandated that all fertility clinics "preserve the soul of every embryo." In keeping with the law, the department required that clinics report, once a month, the number of embryos left over from every patient's attempt at in vitro fertilization-a number the inspectors verified with their visits. To ensure accurate reporting, the department periodically conducted random audits. . . . (p. 14) If an unfortunate doctor fails an audit, there are "serious consequences for the clinic: probation and heavy fines" (p. 15). The authorities mete out far more severe punishments for the "crime" of destroying an embryo, an act that is grounds for shutting down the clinic and charging the doctor responsible with first-degree murder. In this setting, the reader follows Arianna Drake and Trent Rowe in a conflict-ridden love story. . . .
Topic:
Government

558. Letters to the Editor

Publication Date:
10-2013
Content Type:
Journal Article
Journal:
The Objective Standard
Institution:
The Objective Standard
Abstract:
No abstract is available.
Topic:
Government
Political Geography:
United States

559. Mongolian Values and Attitudes toward Democracy

Author:
Mina Sumaadii
Publication Date:
11-2013
Content Type:
Journal Article
Journal:
Central European University Political Science Journal
Institution:
Central European University
Abstract:
For most of modern history Mongolia has been isolated from the world due to the geopolitical struggles between Russia and China. As the Communist system collapsed and liberal democracy was established, many outsiders wondered why the country succeeded in democratization where other neighboring ex-Soviet states had failed. The odds were mainly against the country, due to high levels of poverty and geographical distance from established mature democracies. Nevertheless, in Mongolia the common answer is that the political culture was compatible with the principles of liberal democracy. This work is an empirical study of macro and micro developments based on modernization theory. It explores the values and attitudes of the general population in an effort to examine what makes it pro-democratic. The main finding is that the general claim of modernization theory is applicable to Mongolia, but in relation to political culture as a mediator between economic development and democratization.
Topic:
Government
Political Geography:
Russia, China, and Mongolia

560. Rudy B. Andeweg, Lieven De Winter and Patrick Dumont (eds.) Puzzles of Government Formation: Coalition Theory and Deviant Cases(New York: Routledge, 2011)

Author:
Martin Mölder
Publication Date:
11-2013
Content Type:
Journal Article
Journal:
Central European University Political Science Journal
Institution:
Central European University
Abstract:
Analyzing coalition governments in Western parliamentary democracies has followed more or less the same design throughout the years. The objective has been to “predict” or “explain” the formation of governments in general. Although the explanatory power of models has improved, even the most comprehensive are able to predict government formation in less than half of the cases. 1 This can mean either that the process of coalition formation is to a significant extent idiosyncratic or that current models have not been fully specified.
Topic:
Government
Political Geography:
Norway and Austria