Power & Market
Recently Mark Spitznagel, Founder and Chief Investment Officer of Universa Investments, joined Bloomberg to discuss the lessons learned from the 2008 financial crisis.
"What [the 2008 financial crisis] taught us ultimately is that interventionism - monetary interventionism - is a Faustian bargain. It gives us short term gains, and longer term pains."
Steve Hanke named ECAEF Gottfried von Haberler Professor by the European Center of Austrian Economics
Congratulations to Dr. Steve Hanke, an Associate Scholar of the Mises Institute, for being named the "ECAEF Gottfried von Haberler Professor" by the European Center of Austrian Economics Foundation in Vaduz, Liechtenstein.
The position is named for Gottfried von Haberler, a leading scholar in the Austrian tradition and a mentor to Dr. Hanke.
In the Senate Intelligence Committee secret vote today on whether to confirm Trump nominee Gina Haspel as chief of the CIA, she will likely again be praised for promising to “speak truth to power.” This has recently become one of the favorite accolades in the least trusted city in America. But will Americans be as gullible this time around?
When 7-term congressman and dutiful Republican functionary Porter Goss was nominated in 2004 to become CIA chief, Sen. Barbara Mikulski (D-MD) endorsed him after he promised to “always speak truth to power.” Fat chance: after he was confirmed, Goss speedily sent a memo to CIA employees muzzling them, declaring that their job was to "support the administration and its policies in our work.” Goss bungled the CIA so badly that the Bush administration heaved him out after less than two years on the job; Goss later became a lobbyist for the Turkish government.
“Speaks truth to power” had a starring role in the 2005 Senate coronation of John Negroponte, America’s first Director of National Intelligence. While working as Reagan’s ambassador to Honduras, Negroponte perennially denied that the Honduran regime was committing vast atrocities, despite its killing of tens of thousands of its own citizens. (Honduras was aiding the Nicaraguan Contras at the time.) But that did not deter Sen. Jay Rockefeller, D-W.Va., Sen. Jon Corzine, D-N.J., and Sen. Mikulski from recycling the “truth to power” phrase in speeches endorsing Negroponte.
When Michael Hayden was nominated as CIA chief in 2006, Sen. Carl Levin (D-MI) vouched that Hayden would “speak truth to power.” But Hayden profoundly misled Congress regarding the CIA’s torture program and his credibility was demolished in the 2014 Senate Intelligence Committee report on the enhanced interrogation program.
Read the rest at USA Today
Updated: The Vote Failed 55-44
A bipartisan group of senators (Mike Lee, Bernie Sanders, and Chris Murphy) are forcing a vote on the US involvement in the Yemen conflict with a vote expected sometime today. The timing of the vote coincides with a visit by Saudi Crown Prince Mohammad bin Salman, whose country has waged war again Yemen since 2015. The Trump Administration, which has a pricey love affair with Saudi Arabia, is working to kill the effort.
The resolution, if successful, would require the US military to cease all support for militarily not targeting al-Qaeda or “associated forces.” While this qualification likely means the US will not stop intervening in the country, it is an attempt for the Senate to clearly recognize that Yemeni forces are not subject to any of the Authorization for the Use of Military Force (AUMF) vote that Congress have passed since 2001.
While this specific vote is being brought up under the War Powers Act, it is worth mentioning that the necessity of this vote is more an indictment on that legislation than anything else. Without its authorization during the Vietnam War, the ability for the US military to get involved in conflicts like Yemen without first receiving the explicit support of the legislature would be far more limited.
Until the War Powers Resolution, no constitutional or statutory authority could be cited on behalf of such behavior on the part of the president. Now it became fixed law, despite violating the letter and the spirit of the Constitution.
It so happens, moreover, that thanks to a loophole in the resolution, the 60-day clock begins only if and when the president reports to Congress under Section 4(a)(1) of the Resolution. Surprise, surprise: presidents have therefore reported to Congress in a more generic manner rather than expressly under that section. They issue reports "consistent with" rather than "pursuant to" the Resolution.
Even still, in a few cases presidents have acted as if the 60-day limit were in effect, perhaps out of political considerations (even if from a strictly legal point of view it was not). But Bill Clinton’s multi-year military intervention in Bosnia alone, without even so much as a nod in the direction of Congress, made perfectly clear that the resolution, whatever good points may be buried within it, was effectively a dead letter.
The Resolution calls for "consultation" by the President with Congress before committing troops to combat. This consultation, we are told, is to occur "in every possible instance." (Who could possibly find a loophole there?) In practice, presidents have interpreted this provision to mean that they must notify Congress following the initiation of hostilities — not exactly what its drafters probably had in mind.
The Mises Institiute is excited to announce that Dr. Shawn Ritenour is our newest Senior Fellow. Dr. Ritenour is a professor of economics at the historic Grove City College, where he assists with the annual Austrian Student Scholars Conference.
Dr. Joseph Salerno, academic vice president of the Mises Institute, had this to say about the announcement:
We are thrilled to have Shawn Ritenour accept our invitation to become a Senior Fellow. Shawn is a renowned scholar in the Misesian tradition. He is the editor of the Mises Reader, the most important compilation of selections from Mises's works yet published. His own treatise, Foundations of Economics: A Christian View, is much more than a mere economics textbook and can be read with great benefit by anyone wishing to achieve a foundational understanding of modern Austrian economics in the tradition of Mises and Rothbard.