Tag Archives: George Reisman

‘Atlas Shrugged’ Rights Holder Sets June Production Start Whether Or Not Stars Align

From Deadline.com:

‘Atlas Shrugged’ Rights Holder Sets June Production Start Whether Or Not Stars Align

By MIKE FLEMING

For almost two decades, Hollywood has tried unsuccessfully to turn Ayn Rand’s 1100 page classic Atlas Shrugged into a feature film with actresses ranging from Angelina Jolie to Charlize Theron to Faye Dunaway. John Aglialoro, the entrepreneur who  17 years ago paid $1 million to option the book rights, is tired of the futility and is taking matters into his own hands. He’s announced that he is financing a June 11 production start in Los Angeles for the first of what he said will be four films made from the book.

Aglialoro, who had a hand in writing the script by Brian O’Tool, is taking on this ambitious plan with an unproven director, and is weeks away from production without stars to play Dagny Taggart, Hank Rearden, John Galt and the other roles. He’s moving forward despite the conventional wisdom that without stars, it could ultimately be the audience that shrugged.

Aglialoro, CEO of exercise equipment manufacturer Cybex International and UM Holdings, would hardly be the only entrepreneur who uses his resources to make a picture happen, one in which he took on a creative role. David Ellison, son of Oracle’s Larry Ellison, made a co-financing deal with Paramount, and one of the first projects from his Skydance slate is the aviation thriller Northern Lights, which casts him as co-star. Dan Pritzker, the billionaire son of Hyatt Hotels chain magnate Jay Pritzker, financed and directed a pair of jazz films: Bolden stars The Hurt Locker’s Anthony Mackie as pioneering horn player Buddy Bolden; Louis is an honest to goodness silent film–with dialogue title cards and musical accompaniment–about the childhood of Louis Armstrong. Pritzker is working on a plan to show the latter in venues with a live orchestra. I saw the silent film and thought it was well made, but I have doubts Pritzker will sway the business from its 80 year infatuation with “talkies.”

Atlas Shrugged will be directed by Stephen Polk, an actor/producer whose father, Louis Polk, was once MGM chairman. He considers Atlas Shrugged to be his feature directing debut, though Polk acknowledges he stepped in and helmed the 2008 indie Baggage. Aglialoro was unavailable to speak directly, but sent a missive indicating that he’s courting actresses like Theron and Maggie Gyllenhaal to play Taggart. Sources in the camps of both actresses were aware of the project, but neither is planning to go to work on Atlas Shrugged next month.

Normally, when there is such a rush to begin production, it’s to keep an option on material from expiring.

Polk said they are not intimidated to film a storied book even if stars don’t align. “For more than 15 years, this has been at studios and there has been a whole dance around who’ll play the iconic roles,” Polk said. “Making it an independent film was the game-changer. Everybody is saying, how can you shoot this movie without a star? We’re shooting it because it’s a good movie with great characters. We’ve been in pre-production for months, but kept it a mystery. Part of the reason is because there’s so much crap about how you need a great big budget and stars. We aren’t looking for big names to trigger press or financing.”

Polk said that the idea of cutting through the bureaucracy and just getting started is consistent with the book’s themes of capitalism and taking entrepreneurial risk. The story centers around Taggart, a railroad executive  who watches society crumble around her as government takes control over industry and innovators begin to disappear.

Francisco’s Money Speech by Ayn Rand

The following is an excerpt from the fictional book Atlas Shrugged by Ayn Rand which is highly recommended to every friend of freedom.  It will make you cheer, it will make you cry, but most of all it will make you think.

You may not agree with everything she has to say but don’t let that keep you from reading this important book.

Francisco’s Money Speech
by Ayn Rand

“So you think that money is the root of all evil?” said Francisco d’Anconia. “Have you ever asked what is the root of money? Money is a tool of exchange, which can’t exist unless there are goods produced and men able to produce them. Money is the material shape of the principle that men who wish to deal with one another must deal by trade and give value for value. Money is not the tool of the moochers, who claim your product by tears, or of the looters, who take it from you by force. Money is made possible only by the men who produce. Is this what you consider evil?

“When you accept money in payment for your effort, you do so only on the conviction that you will exchange it for the product of the effort of others. It is not the moochers or the looters who give value to money. Not an ocean of tears not all the guns in the world can transform those pieces of paper in your wallet into the bread you will need to survive tomorrow. Those pieces of paper, which should have been gold, are a token of honor–your claim upon the energy of the men who produce. Your wallet is your statement of hope that somewhere in the world around you there are men who will not default on that moral principle which is the root of money, Is this what you consider evil?

“Have you ever looked for the root of production? Take a look at an electric generator and dare tell yourself that it was created by the muscular effort of unthinking brutes. Try to grow a seed of wheat without the knowledge left to you by men who had to discover it for the first time. Try to obtain your food by means of nothing but physical motions–and you’ll learn that man’s mind is the root of all the goods produced and of all the wealth that has ever existed on earth.

“But you say that money is made by the strong at the expense of the weak? What strength do you mean? It is not the strength of guns or muscles. Wealth is the product of man’s capacity to think. Then is money made by the man who invents a motor at the expense of those who did not invent it? Is money made by the intelligent at the expense of the fools? By the able at the expense of the incompetent? By the ambitious at the expense of the lazy? Money is made–before it can be looted or mooched–made by the effort of every honest man, each to the extent of his ability. An honest man is one who knows that he can’t consume more than he has produced.’

“To trade by means of money is the code of the men of good will. Money rests on the axiom that every man is the owner of his mind and his effort. Money allows no power to prescribe the value of your effort except the voluntary choice of the man who is willing to trade you his effort in return. Money permits you to obtain for your goods and your labor that which they are worth to the men who buy them, but no more. Money permits no deals except those to mutual benefit by the unforced judgment of the traders. Money demands of you the recognition that men must work for their own benefit, not for their own injury, for their gain, not their loss–the recognition that they are not beasts of burden, born to carry the weight of your misery–that you must offer them values, not wounds–that the common bond among men is not the exchange of suffering, but the exchange of goods. Money demands that you sell, not your weakness to men’s stupidity, but your talent to their reason; it demands that you buy, not the shoddiest they offer, but the best that your money can find. And when men live by trade–with reason, not force, as their final arbiter–it is the best product that wins, the best performance, the man of best judgment and highest ability–and the degree of a man’s productiveness is the degree of his reward. This is the code of existence whose tool and symbol is money. Is this what you consider evil?

“But money is only a tool. It will take you wherever you wish, but it will not replace you as the driver. It will give you the means for the satisfaction of your desires, but it will not provide you with desires. Money is the scourge of the men who attempt to reverse the law of causality–the men who seek to replace the mind by seizing the products of the mind.

“Money will not purchase happiness for the man who has no concept of what he wants: money will not give him a code of values, if he’s evaded the knowledge of what to value, and it will not provide him with a purpose, if he’s evaded the choice of what to seek. Money will not buy intelligence for the fool, or admiration for the coward, or respect for the incompetent. The man who attempts to purchase the brains of his superiors to serve him, with his money replacing his judgment, ends up by becoming the victim of his inferiors. The men of intelligence desert him, but the cheats and the frauds come flocking to him, drawn by a law which he has not discovered: that no man may be smaller than his money. Is this the reason why you call it evil?

“Only the man who does not need it, is fit to inherit wealth–the man who would make his own fortune no matter where he started. If an heir is equal to his money, it serves him; if not, it destroys him. But you look on and you cry that money corrupted him. Did it? Or did he corrupt his money? Do not envy a worthless heir; his wealth is not yours and you would have done no better with it. Do not think that it should have been distributed among you; loading the world with fifty parasites instead of one, would not bring back the dead virtue which was the fortune. Money is a living power that dies without its root. Money will not serve the mind that cannot match it. Is this the reason why you call it evil?

“Money is your means of survival. The verdict you pronounce upon the source of your livelihood is the verdict you pronounce upon your life. If the source is corrupt, you have damned your own existence. Did you get your money by fraud? By pandering to men’s vices or men’s stupidity? By catering to fools, in the hope of getting more than your ability deserves? By lowering your standards? By doing work you despise for purchasers you scorn? If so, then your money will not give you a moment’s or a penny’s worth of joy. Then all the things you buy will become, not a tribute to you, but a reproach; not an achievement, but a reminder of shame. Then you’ll scream that money is evil. Evil, because it would not pinch-hit for your self-respect? Evil, because it would not let you enjoy your depravity? Is this the root of your hatred of money?

“Money will always remain an effect and refuse to replace you as the cause. Money is the product of virtue, but it will not give you virtue and it will not redeem your vices. Money will not give you the unearned, neither in matter nor in spirit. Is this the root of your hatred of money?

“Or did you say it’s the love of money that’s the root of all evil? To love a thing is to know and love its nature. To love money is to know and love the fact that money is the creation of the best power within you, and your passkey to trade your effort for the effort of the best among men. It’s the person who would sell his soul for a nickel, who is loudest in proclaiming his hatred of money–and he has good reason to hate it. The lovers of money are willing to work for it. They know they are able to deserve it.

“Let me give you a tip on a clue to men’s characters: the man who damns money has obtained it dishonorably; the man who respects it has earned it.

“Run for your life from any man who tells you that money is evil. That sentence is the leper’s bell of an approaching looter. So long as men live together on earth and need means to deal with one another–their only substitute, if they abandon money, is the muzzle of a gun.

“But money demands of you the highest virtues, if you wish to make it or to keep it. Men who have no courage, pride or self-esteem, men who have no moral sense of their right to their money and are not willing to defend it as they defend their life, men who apologize for being rich–will not remain rich for long. They are the natural bait for the swarms of looters that stay under rocks for centuries, but come crawling out at the first smell of a man who begs to be forgiven for the guilt of owning wealth. They will hasten to relieve him of the guilt–and of his life, as he deserves.

“Then you will see the rise of the men of the double standard–the men who live by force, yet count on those who live by trade to create the value of their looted money–the men who are the hitchhikers of virtue. In a moral society, these are the criminals, and the statutes are written to protect you against them. But when a society establishes criminals-by-right and looters-by-law–men who use force to seize the wealth of disarmed victims–then money becomes its creators’ avenger. Such looters believe it safe to rob defenseless men, once they’ve passed a law to disarm them. But their loot becomes the magnet for other looters, who get it from them as they got it. Then the race goes, not to the ablest at production, but to those most ruthless at brutality. When force is the standard, the murderer wins over the pickpocket. And then that society vanishes, in a spread of ruins and slaughter.

“Do you wish to know whether that day is coming? Watch money. Money is the barometer of a society’s virtue. When you see that trading is done, not by consent, but by compulsion–when you see that in order to produce, you need to obtain permission from men who produce nothing–when you see that money is flowing to those who deal, not in goods, but in favors–when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed. Money is so noble a medium that is does not compete with guns and it does not make terms with brutality. It will not permit a country to survive as half-property, half-loot.

“Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked, ‘Account overdrawn.’

“When you have made evil the means of survival, do not expect men to remain good. Do not expect them to stay moral and lose their lives for the purpose of becoming the fodder of the immoral. Do not expect them to produce, when production is punished and looting rewarded. Do not ask, ‘Who is destroying the world? You are.

“You stand in the midst of the greatest achievements of the greatest productive civilization and you wonder why it’s crumbling around you, while you’re damning its life-blood–money. You look upon money as the savages did before you, and you wonder why the jungle is creeping back to the edge of your cities. Throughout men’s history, money was always seized by looters of one brand or another, whose names changed, but whose method remained the same: to seize wealth by force and to keep the producers bound, demeaned, defamed, deprived of honor. That phrase about the evil of money, which you mouth with such righteous recklessness, comes from a time when wealth was produced by the labor of slaves–slaves who repeated the motions once discovered by somebody’s mind and left unimproved for centuries. So long as production was ruled by force, and wealth was obtained by conquest, there was little to conquer, Yet through all the centuries of stagnation and starvation, men exalted the looters, as aristocrats of the sword, as aristocrats of birth, as aristocrats of the bureau, and despised the producers, as slaves, as traders, as shopkeepers–as industrialists.

“To the glory of mankind, there was, for the first and only time in history, a country of money–and I have no higher, more reverent tribute to pay to America, for this means: a country of reason, justice, freedom, production, achievement. For the first time, man’s mind and money were set free, and there were no fortunes-by-conquest, but only fortunes-by-work, and instead of swordsmen and slaves, there appeared the real maker of wealth, the greatest worker, the highest type of human being–the self-made man–the American industrialist.

“If you ask me to name the proudest distinction of Americans, I would choose–because it contains all the others–the fact that they were the people who created the phrase ‘to make money.’ No other language or nation had ever used these words before; men had always thought of wealth as a static quantity–to be seized, begged, inherited, shared, looted or obtained as a favor. Americans were the first to understand that wealth has to be created. The words ‘to make money’ hold the essence of human morality.

“Yet these were the words for which Americans were denounced by the rotted cultures of the looters’ continents. Now the looters’ credo has brought you to regard your proudest achievements as a hallmark of shame, your prosperity as guilt, your greatest men, the industrialists, as blackguards, and your magnificent factories as the product and property of muscular labor, the labor of whip-driven slaves, like the pyramids of Egypt. The rotter who simpers that he sees no difference between the power of the dollar and the power of the whip, ought to learn the difference on his own hide– as, I think, he will.

“Until and unless you discover that money is the root of all good, you ask for your own destruction. When money ceases to be the tool by which men deal with one another, then men become the tools of men. Blood, whips and guns–or dollars. Take your choice–there is no other–and your time is running out.”

Opinions regarding the Deflation vs. Inflation debate

The following is a response by one of our readers to a friend’s question regarding deflation vs. inflation and the impact on the gold price:

Hi Kevin,

Thank you for sending over that report by Nick Guarino. He makes some great points and I believe he is right in many cases although I have some contrary opinions on gold. I have not looked at his oil or stock scenario. I’ve listed his arguments below with my responses to each of them. I also recommend listening to the following audio interview with John Williams of ShadowStats.com where he specifically addresses the inflation/deflation debate:

John Williams Interview
http://wp.me/pHQmz-68

I also recommend listening to the radio interviews with Jim Willie (mentioned below).

1. Nick says: “IMF has plenty of gold to sell into the market.”

Response: This is true. But the real question is will there be sufficient demand to absorb it? I say yes. India bought the 200 tons (which is money they spent on gold instead of U.S. Treasuries). China has continued to buy and plans to continue. This is being referred to as the “Beijing Put” (http://tinyurl.com/n3nvrs). Sri Lanka just recently announced a major purchase of gold and Russia has stated its intention to buy more gold too (http://en.rian.ru/russia/20091119/156903575.html).

2. Nick says: “Prices are in deflation not inflation.”

Response: Yes, prices are down but they are down primarily in financial assets which were previously “inflated” with easy credit. These debt-financed assets will continue to fall in price as defaults rise and lending shrinks. Prices in consumer goods and services will begin to rise as the dollar drops.

It is important to note that the proper definition of inflation is “an increase in the money supply”. Rising prices are only a result of an increase in the money supply and these rising prices may not show up right away or they may show up in specific assets over others (gold and stocks versus houses).

3. Nick says: “Collapsing credit is deflationary”.

Response: Not necessarily. When a debtor defaults on his debt, the money that was lent stays in the financial system. It is not taken out. These debt defaults show up on the financial statements of the banks (more on this later). The pay-down of debt does shrink the money supply but most people can’t pay off their debt because they owe more than the assets securing these debts are worth. This will continue to cause defaults.

4. Nick says: a.) “The dollar and the U.S. Government are too big to fail; b.) If the dollar fails the world will be thrust into an economic Dark Age therefore foreign governments will not let it happen; c.) Foreign governments must buy every dollar of U.S. Government debt otherwise they will be wiped out first; d.) Demand for U.S. Debt is at an all-time high evidenced by low rates.”

Response: I will Respond to these individually:

a.) “The dollar and the U.S. Government are too big to fail” They are not too big to fail. Yes, this would create a lot of pain but at some point foreign lenders will cut off the credit card. There is a point when creditors realize that they will never be repaid and it no longer makes sense to throw good money after bad. Of course, foreign governments can’t do this all at once without hurting themselves so they play a risky game of slowly and quietly diversifying out of dollars hoping not to spook others and create a stampede out of the dollar – hence, the steady dollar decline and relentless gold rise. This is hard to do safely and will likely fail as the dollar flight accelerates. China has been buying every resource company they can get their hands on which is another way of dumping/trading their dollars for these real assets (http://tinyurl.com/y8jby2z).

b.) “If the dollar fails the world will be thrust into an economic Dark Age therefore foreign governments will not let it happen.” In addition to the response in “a.” above, foreign governments must choose between some pain now or more pain later. As they diversify out of dollars and buy gold they hope to be the first ones out of the burning theater. It is their intent to offset dollar losses with gold gains. This will likely turn into a stampede. Yes, a Dark Ages will happen but the longer they wait the worse it will be.

c.) “Foreign governments must buy every dollar of U.S. Government debt otherwise they will be wiped out first.” Same responses as “a” and “b” above.  Also, they are going to be wiped out anyway so they might as well get rid of their dollars as fast as they can while they still can.

d.) “Demand for U.S. Debt is at an all-time high evidenced by low rates.” Yes and no. The demand is high but unsustainable for the reasons stated above. There is also substantial speculation that the Fed is already buying these treasuries (Quantitative Easing) through back door foreign intermediaries (Jim Willie: Systemic Crisis: audio interviews http://tinyurl.com/ydakvlw). Could this be one reason why they don’t want an audit?

5. Nick says: “Foreign Countries are taking coordinated steps to stabilize the dollar. China, Japan, Philippines, Middle East, Singapore, Malaysia, South Korea.”

Response: This is mostly all talk. I’ve already shown above how several of these countries are slowly diversifying out of the dollar in favor of gold. What most countries fear is their currency strengthening against the dollar causing their exports to become expensive and “bad for business”. To combat this, they can either buy dollars or devalue their own currency. Many are simply choosing to devalue their currency. This causes their currencies to devalue against the one currency that cannot be devalued: Gold. Gold is resuming its supreme role as a currency (not just a commodity). Gold is the oldest form of currency and has been around since biblical times – longer than any other currency. (see “What is Money?” http://tinyurl.com/y8ay3y4).

6. Nick says: “M3 money supply is not growing, global liquidity and credit are collapsing…there is no freakin’ money.”

Response: Yes, M3 has slowed but this is only temporary. Here’s why. Banks’ excess reserves have exploded from 2 billion in July, ’08 to 1.06 trillion today (Money Supply chart: [http://tinyurl.com/yfv54aq] and Dr. Reisman article: http://tinyurl.com/yfnv4rn). These excess reserves are funds that have not been lent out and have not created additional credit expansion. In my opinion, the reason is that the banks are still experiencing (and expecting) horrendous losses and are looking to restore their balance sheets. At some point their insolvency and inability to resume lending will frustrate the government (due to the continued cratering of the economy) and the banks will be nationalized. This will give the government, as the new owners, the ability to begin lending again which has the potential to increase the money supply by an additional $132 trillion! (see Reisman: http://tinyurl.com/yfnv4rn). Of course, the FED can be forced into QE beforehand if foreign governments dramatically slow their treasury purchases.

The lack of cash, or as Nick says “there is no freakin’ money”, is due to the incredible leverage before the crash. Instead of saving more, folks found it more profitable to invest most of their cash and borrow multiples on top of it. When the leveraged investments failed, their equity and cash holdings were wiped out.

Conclusion:

In dollar terms, if someone is short gold it means that they are long the dollar. I see no reason to have any confidence whatsoever in the dollar. I tell people to look at the dollar as the “common stock” of the USA – just like you would look at the stock of a corporation. When valuing a stock you would look at the management and balance sheet of the corporation to determine what you would pay for the the stock. When I apply this same analysis of the USA I conclude that the dollar is not a “stock” that I would want to own. Sure, the government can increase revenue because they have the power to tax but even a 100% tax is not enough to correct the problem (source: ShadowStats.com Hyperinflation Special Report: http://www.shadowstats.com/article/hyperinflation).

If you are still unsure as to which scenario to believe, it might make sense to put half of your assets in cash and the other half in gold.  Any drop in purchasing power in one would likely be offset by the increased purchasing power in the other and your original purchasing power will likely be preserved.

A Pro-Free-Market Program for Economic Recovery

A Pro-Free-Market Program for Economic Recovery

by George Reisman, Ph.D.

[This talk was given at Economic Downturn: Cause and Cure (Mises Circle, Sponsored by Louis E. Carabini) Newport Beach, California, November 14, 2009.]

Good afternoon, ladies and gentlemen:

As you all know, we are in a severe economic downturn. The official unemployment rate now exceeds 10 percent and according to many observers is actually substantially higher. Within the last year or so, our financial system has been rocked to its foundations. The collapse of the housing bubble and the numerous defaults and bankruptcies connected with it brought down major financial institutions, such as Bear-Stearns, Lehman Brothers, and Merrill Lynch. It also brought down numerous small and medium-sized banks and threatened to bring down even such banking giants as Citigroup and Bank of America. The Dow Jones stock average fell from a high of 14,000 to about 6,500. Important retailers such as CompUSA, Circuit City, Mervyns, and Linens ‘N Things went under, as did countless small businesses throughout the country. Practically every shopping mall gives testimony to the severity of the downturn in the form of vacant stores.

The collapse of the housing bubble and the massive losses and mounting unemployment that have resulted from it have unleashed a veritable firestorm of hostility against capitalism, in the conviction that it is capitalism and its economic freedom that are responsible. It is now generally taken for granted that any solution for the downturn requires massive new government intervention, to curb, control, or abolish this or that aspect of capitalism and its alleged evil.

Continue reading…

Environmentalism, Liberty, and the Socialist Agenda

Environmentalism, Liberty, and the Socialist Agenda

By freemarketstudies

It is no doubt honorable for man to take care of his surroundings and eliminate waste where he can.  What is dishonorable is when those pretended “enlightened ones” use this worthy cause to further their hidden agenda.

There are certain types of people in the world who feel that they have the superiority to decide what is best for other people.  In this assumed superiority they feel it is their right to control others and to deprive them of their free agency.  These central planners are drawn by the lures of power – the ultimate power being able to decide the fate of the “lessor ones”.    These people are Socialists.  W. Cleon Skousen, in his book The Naked Communist, describes this personality as “the criminal mind”.  The criminal mind has no conscience nor morals.  It is evil and has no hesitation in lying to achieve its objectives.  It is fundamentally anti-human.

There are three important parts in this article that reveal the hidden motivations present in the current environmentalist movement.  The conclusion is that this agenda – if not stopped – will enlarge socialism (under the guise of “environmentalism”) which can only result in the further loss of individual liberty.

Part One:

The following excerpt is from a 2001 interview Dr. George Reisman, economics professor at Pepperdine University:

AEN: On environmentalism, you seem to go way beyond your teacher.

REISMAN: Mises has some relevant discussions. For example, he speaks about monopoly pricing of very scarce resources acting as a means of conservation. But mostly, this political ideology we call environmentalism began in the mid-1960s. I remember that I was in San Francisco in 1967, reading a column by Eric Severeid. He predicted that environmentalism would be a leading political movement in the next decade. I recall thinking: that’s preposterous.  It seemed so ridiculous, I couldn’t understand how anyone could take it seriously.

The whole movement seemed to grow out of Lady Bird Johnson’s objections to billboards on interstate highways. It began as a kind of silly political program to get rid of junkyards because they were unsightly. I recall that Al Capp had a solution to the problem of junkyards. He wanted Andy Warhol to put his signature on them and call them works of art. That was about the level of answer the whole thing deserved.

AEN: But in time, the movement would grow.

REISMAN: It is so large that it is impossible to get away from. A student told me that as a child he was exposed to all sorts of cartoons featuring children who fight dirty capitalists who own sludge factories. These kids are being indoctrinated, not only by cartoons but in school and in the culture at large.

What’s at issue here is a philosophical problem. The movement is fundamentally antihuman. That is what motivates it. This is a more widely occurring phenomenon than you might suppose. We know of serial killers, but every once in a while similar mentalities gain political power, as happened with the communists and the Nazis. There is a lot of hatred and hostility in many people that is just looking for something to attach itself to.

AEN: An attack on human life by another means.

REISMAN: That is essentially what environmentalism amounts to. It is the political movement where the destructive impulse has parked itself today. First you have the hatred, then you have a cultural vehicle, such as a totalitarian political movement or an insane religion, that allows and encourages the hatred to be expressed.

Intellectually, environmentalism is nothing more than the death rattle of socialism and should be much easier to overcome. Socialists used to masquerade as defenders of science and reason, and now they are openly anti-science and technology, as we see with environmentalism.

AEN: Also, they don’t promise to better our lot.

REISMAN: It’s true that the communists always claimed that if they had control, they would improve the material lot of mankind. The environmentalists don’t offer that; quite the opposite, they say that mankind is too well off.  They claim they want collectivist control in order to avoid what they claim will be immense catastrophe.

But their idea of success is thwarting human success. In their view, the environment is only destroyed by human beings. The caribou eat the vegetation, and that’s okay. The wolves kill the caribou, and that’s okay. Microbes are  killing them both, and that’s okay. The only thing that’s not okay is if human beings attempt to do anything. Only then does the environment need protection,  in their view. We can conclude from this that it is only human beings they are really after.

AEN: What about the economic arguments?

REISMAN: We can distinguish between two types of natural resources: what nature provides and the fraction of what nature provides that man has become able to make useable and accessible. The whole physical world and universe consists of nothing but natural resources— matter, in all of its elemental forms, and energy, in all of its forms—provided by nature. The useable, accessible fraction of those resources can be progressively enlarged.

Menger speaks to this issue. He shows that we must create the goods character of any resource. If we do not, it is not a good and has no value. The more knowledge and physical power we exercise over nature, the larger becomes the supply of useable, accessible natural resources.

Our use of nature’s resources—of the chemical elements and energy provided by nature—does not reduce their overall physical quantity. It merely improves their relationship to our well-being. It thereby improves the external material conditions of our lives, which means: it improves our environment.

Despite all the propaganda, the market has led to vast improvements in such things as air quality. The fact that I’m sitting in an air-conditioned room in August in Alabama and not sweating is quite a testimonial to the improvement in air quality. So is central heating in winter time, and modern ventilation systems in kitchens and bathrooms. So is the automobile, which has eliminated the stench of horse manure and horse urine in the streets.   So is the iron and steel industry, which made possible the low-cost pipe that enabled the streets to stop serving as sewers.

AEN: What other problems are they responsible for?

REISMAN: The waste involved in the forcible imposition of environmental regulations is incalculable.

Part Two:

Here is a post by Dr. Gary North:

It’s Not Just That Global Warming Is Fake. What Matters Is Why This Fakery Is Being Promoted.

Gary North

July 3, 2009

Global warming is based 100% on junk science. The most vocal promoters are not interested in the details of physical science. They are interested in two things: political control over the general public and the establishment of international socialism.

Junk Science vs. Real Science

For a detailed, footnoted, 12-page article, written by three scientists, two with Ph.D’s from CalTech, click here.

This paper was sent to tens of thousands of natural scientists in the United States.

Over 31,000 scientists have put their reputations on the line and signed a politically incorrect petition opposing the 1997 Kyoto agreement or protocol. Here is a photocopy of a signed petition.

Here is a letter from a former president of the National Academy of Sciences. He asks recipients of the petition to sign it.

Back in the 1970′s, the bugaboo was the coming ice age, as this Time Magazine article promoted. Not to be outdone, Newsweek got on board. The article warned: “Climatologists are pessimistic that political leaders will take any positive action to compensate for the climatic change, or even to allay its effects.” Want more examples? Click here.

It, too, was based on junk science. It, too, had the same solution: government control over the economy. The goal never changes: government management over the economy. The justification has changed. If the voters won’t accept control over their lives on the basis of one brand of junk science, maybe they will accept another. As they used to say in the Nixon Administration: “Let’s run this up the flagpole and see if anyone salutes.”

Socialism’s Last Stand

The global warming movement is not about global warming. It is about the creation of an international political control arrangement by which bureaucrats who favor socialism can gain control over the international economy.

This strategy was stated boldly by economist Robert Heilbroner in 1990. Heilbroner, the multi-millionaire socialist and author of the best-selling history of economic thought, The Worldly Philosophers, wrote the manifesto for these bureaucrats. He did this in an article, “Reflections: After Communism,” published by The New Yorker (Sept. 10, 1990).

In this article, he made an astounding admission. He said that Ludwig von Mises had been right in 1920 in his article, “Economic Calculation in the Socialist Commonwealth.” Mises argued that without private ownership, central planners could not know what any resource is worth to consumers. With no capital market, the planners would be flying blind.

Heilbroner said that for 70 years, academic economists had either ignored this article or dismissed it without answering it. Then Heilbroner wrote these words: “Mises was right.”

Heilbroner was one of these people. There is no reference to Mises in The Worldly Philosophers.

This admission was the preliminary section of Heilbroner’s manifesto. He was cutting off all hope by socialists that there is a theoretically plausible response to Mises. The free market economy will always outproduce a socialist economy. Get used to it, he said.

Then, in the second section, he called on his socialist peers to get behind the ecology movement. Here, he said, is the best political means for promoting central planning, despite its inefficiency. In the name of ecology, he said, socialists can get a hearing from politicians and voters.

The article is not online. An abstract is. Here is the concluding thought of the abstract.

The direction in which things are headed is some version of capitalism, whatever its title. In Eastern Europe, the new system is referred to as Not Socialism. Socialism may not continue as an important force now that Communism is finished. But another way of looking at socialism is as the society that must emerge if humanity is to cope with the ecological burden that economic growth is placing on the environment. From this perspective, the long vista after Communism leads through capitalism into a still unexplored world that roust [must?] be safely attained and settled before it can be named.Heilbroner did not care that a worldwide government-run economic planning system would not be called called socialism. He just wanted to see the system set up.

Heilbroner’s peers got the message. That was what Kyoto was all about.

Conclusion

If you like poverty, inefficiency, and bureaucratic controls over the economy, and therefore control over your choices, the “climate change” movement is ideal.

If you want to subsidize China and India, neither of which will enforce the rules laid down by unelected international bureaucrats, this movement is for you.

If you want to pay more for less energy, there is no better way than to pass the cap and tax bill which the House has passed. It will be sent to the U.S. Senate next week.

The rest of us should oppose it.

I hereby authorize anyone to reprint this article or post it on any website, just so long as the text is not changed.© 2005-2009 GaryNorth.Com, Inc. All Rights Reserved. Reproduction without permission prohibited.

Part Three:

Now we come to see the “criminal mind” unmasked through this bombshell story:

ClimateGate – Climate center’s server hacked revealing documents and emails

November 20, 7:27 AMClimate Change Examiner – Tony Hake

Britain’s Climate Research Unit, University of East Anglia, suffered a data breach in recent days when a hacker apparently broke into their system and made away with thousands of emails and documents. The stolen data was then posted to a Russian server and has quickly made the rounds among climate skeptics. The documents within the archive, if proven to be authentic, would at best be embarrassing for many prominent climate researchers and at worst, damning.

Story recap & latest news: ClimateGate emails provide unwanted scrutiny of climate scientists

The electronic break in itself has been verified by the director of the research unit, Professor Phil Jones. He told Britain’s Investigate magazine’s TGIF Edition “It was a hacker. We were aware of this about three or four days ago that someone had hacked into our system and taken and copied loads of data files and emails.”

The file that has been making the rounds was initially brought to light by the website The Air Vent. The 61mb file contains thousands of documents and emails. As the archive was just discovered within the last 24 hours, its authenticity has not been determined and as such readers should cast a skeptical eye on the contents.  It should also be noted that it appears the emails were illegally obtained by whoever originally posted them.

At least one person that was included in some of the correspondence, Steve McIntyre of the website Climate Audit, verified the authenticity of at least some of the messages. McIntyre said, “Every email that I’ve examined so far looks genuine. There are a few emails of mine that are 100% genuine. It is really quite breathtaking.”

The contents of the archive contain documents and email correspondence from a veritable who’s who in climate science. Among those included in the emails are Phil Jones, Keith Briffa, his assistant, Michael Mann of the University of Virginia, Malcolm Hughes at the University of Arizona, Kevin Trenberth at the National Center for Atmospheric Research, James Hansen of NASA’s Goddard Institute of Space Studies and others.

The emails contain an array of discussions including what appear to be concerted efforts to withhold data. Just as troubling is conversations that allude to potentially manipulating climate data to “hide the decline” of temperatures seen in the last decade.

Some of the excerpts of emails within the archives (edited for brevity, emphasis added):

From Michael E. Mann (witholding of information / data):

“Dear Phil and Gabi,
I’ve attached a cleaned-up and commented version of the matlab code that I wrote for doing the Mann and Jones (2003) composites. I did this knowing that Phil and I are likely to have to respond to more crap criticisms from the idiots in the near future, so best to clean up the code and provide to some of my close colleagues in case they want to test it, etc. Please feel free to use this code for your own internal purposes, but don’t pass it along where it may get into the hands of the wrong people.”

From Nick McKay (modifying data):

“The Korttajarvi record was oriented in the reconstruction in the way that McIntyre said. I took a look at the original reference – the temperature proxy we looked at is x-ray density, which the author interprets to be inversely related to temperature. We had higher values as warmer in the reconstruction, so it looks to me like we got it wrong, unless we decided to reinterpret the record which I don’t remember. Darrell, does this sound right to you?”
From Tom Wigley (acknowleding the urban effect):

“We probably need to say more about this. Land warming since 1980 has been twice the ocean warming — and skeptics might claim that this proves that urban warming is real and important.”

From Phil Jones (modification of data to hide unwanted results):

“I’ve just completed Mike’s Nature trick of adding in the real temps to each series for the last 20 years (ie from 1981 onwards) amd from 1961 for Keith’s to hide the decline.”

From Kevin Trenberth (failure of computer models):

“The fact is that we can’t account for the lack of warming at the moment and it is a travesty that we can’t. The CERES data published in the August BAMS 09 supplement on 2008 shows there should be even more warming: but the data are surely wrong. Our observing system is inadequate.”

From Michael Mann (truth doesn’t matter):

“Perhaps we’ll do a simple update to  the Yamal post, e.g. linking Keith/s new page–Gavin t?  As to the issues of robustness, particularly w.r.t. inclusion of the Yamal series, we  actually emphasized that (including the Osborn and Briffa ’06 sensitivity test) in our  original post! As we all know, this isn’t about truth at all, its about plausibly deniable accusations.”

From Phil Jones (witholding of data):

“The skeptics seem to be building up a head of steam here! …  The IPCC comes in for a lot of stick. Leave it to you to delete as appropriate! Cheers Phil
PS I’m getting hassled by a couple of people to release the CRU station temperature data. Don’t any of you three tell anybody that the UK has a Freedom of Information Act !”

From Michael E. Mann (using a website to control the message, hide dissent):

“Anyway, I wanted you guys to know that you’re free to use RC [RealClimate.org - A supposed neutral climate change website] Rein any way you think would be helpful. Gavin and I are going to be careful about what comments we screen through, and we’ll be very careful to answer any questions that come up to any extent we can. On the other hand, you might want to visit the thread and post replies yourself. We can hold comments up in the queue and contact you about whether or not you think they should be screened through or not, and if so, any comments you’d like us to include.”

From Phil Jones (witholding of data):

“If FOIA does ever get used by anyone, there is also IPR to consider as well. Data is covered by all the agreements we sign with people, so I will be hiding behind them.”

If the emails and documents are a forgery, it would be an extremely large one that would likely have taken months to setup. No doubt much more will be coming out about these emails and their possible authenticity. Stay tuned to the Climate Change Examiner for updates as more information becomes available.

Update, 10:30am – Since the original publication of this article, the story is gaining steam and now the BBC is reporting on it. They report that a spokesman for the University of East Anglia’s Climatic Research Unit (CRU), “We are aware that information from a server used for research information in one area of the university has been made available on public websites.”

Analysis of the emails and documents in the archives continues. We must stress that the authenticity has not been proven however there have been no denials of such by the climate center.  Some of the more recent revelations include:

From Phil Jones (destroying of emails / evidence):

“Mike, Can you delete any emails you may have had with Keith re AR4? Keith will do likewise. He’s not in at the moment – minor family crisis. Can you also email Gene and get him to do the same? I don’t have his new email address. We will be getting Caspar to do likewise.”

From Tom Wigley (data modification):

“Phil, Here are some speculations on correcting SSTs to partly explain the 1940s warming blip. If you look at the attached plot you will see that the land also shows the 1940s blip (as I’m sure you know). So, if we could reduce the ocean blip by, say, 0.15 degC, then this would be significant for the global mean — but we’d still have to explain the land blip. I’ve chosen 0.15 here deliberately. This still leaves an ocean blip, and i think one needs to have some form of ocean blip to explain the land blip (via either some common forcing, or ocean forcing land, or vice versa, or all of these). When you look at other blips, the land blips are 1.5 to 2 times (roughly) the ocean blips — higher sensitivity plus thermal inertia effects. My 0.15 adjustment leaves things consistent with this, so you can see where I am coming from. Removing ENSO does not affect this. It would be good to remove at least part of the 1940s blip, but we are still left with “why the blip”. Let me go further. If you look at NH vs SH and the aerosol effect (qualitatively or with MAGICC) then with a reduced ocean blip we get continuous warming in the SH, and a cooling in the NH — just as one would expect with mainly NH aerosols. The other interesting thing is (as Foukal et al. note — from MAGICC) that the 1910-40 warming cannot be solar. The Sun can get at most 10% of this with Wang et al solar, less with Foukal solar. So this may well be NADW, as Sarah and I noted in 1987 (and also Schlesinger later). A reduced SST blip in the 1940s makes the 1910-40 warming larger than the SH (which it currently is not) — but not really enough. So … why was the SH so cold around 1910? Another SST problem? (SH/NH data also attached.) This stuff is in a report I am writing for EPRI, so I’d appreciate any comments you (and Ben) might have. Tom.”

From  Thomas R Karl (witholding data) :

“We should be able to  conduct our scientific research without constant fear of an “audit” by Steven McIntyre;  without having to weigh every word we write in every email we send to our scientific colleagues.  In my opinion, Steven McIntyre is the self-appointed Joe McCarthy of climate science. I  am unwilling to submit to this McCarthy-style investigation of my scientific research.  As you know, I have refused to send McIntyre the “derived” model data he requests, since all of the primary model data necessary to replicate our results are freely available to  him. I will continue to refuse such data requests in the future. Nor will I provide  McIntyre with computer programs, email correspondence, etc. I feel very strongly about  these issues. We should not be coerced by the scientific equivalent of a playground bully.  I will be consulting LLNL’s Legal Affairs Office in order to determine how the DOE and LLNL should respond to any FOI requests that we receive from McIntyre.”

From Tom Wigley (ousting of a skeptic from a professional organization):

“Proving bad behavior here is very difficult. If you think that Saiers is in the greenhouse skeptics camp, then, if we can find documentary evidence of this, we could go through official AGU channels to get him ousted.”

From Phil Jones (forging of dates):

“Gene/Caspar, Good to see these two out. Wahl/Ammann doesn’t appear to be in CC’s online first, but comes up if you search.  You likely know that McIntyre will check this one to make sure it hasn’t changed since the IPCC close-off date July 2006! Hard copies of the WG1 report from CUP have arrived here today. Ammann/Wahl – try and change the Received date!  Don’t give those skeptics something to amuse themselves with.”

From a document titled “jones-foiathoughts.doc” (witholding of data):

“Options appear to be:
1. Send them the data
2. Send them a subset removing station data from some of the countries who made us pay in the normals papers of Hulme et al. (1990s) and also any number that David can remember. This should also omit some other countries like (Australia, NZ, Canada, Antarctica). Also could extract some of the sources that Anders added in (31-38 source codes in J&M 2003). Also should remove many of the early stations that we coded up in the 1980s.
3. Send them the raw data as is, by reconstructing it from GHCN. How could this be done? Replace all stations where the WMO ID agrees with what is in GHCN. This would be the raw data, but it would annoy them.”

From Mick Kelly (modifying data to hide cooling):

“Yeah, it wasn’t so much 1998 and all that that I was concerned about, used to dealing with that, but the possibility that we might be going through a longer – 10 year – period of relatively stable temperatures beyond what you might expect from La Nina etc. Speculation, but if I see this as a possibility then others might also. Anyway, I’ll maybe cut the last few points off the filtered curve before I give the talk again as that’s trending down as a result of the end effects and the recent cold-ish years.”

Update, 3:45pm MDT: In regards to the authenticity, not one report disputing the veracity of the emails has come out. Many sources have talked to some of the email authors and they have not disputed the messages.

It would appear at this point that there is little doubt that the emails are authentic.  If they were not, the principle players would certainly have said so by now.