When some things have holes in them, it’s a sign of decay, like a beam with termites. But some things are meant to have holes, like Swiss cheese. I agree with John’s view on “holes and gaps”, but as always, I tend to assign agency to the political system more than to the financial sector. Nearly all of those holes were intended to be there, and it was intended that the financial system used them. The process whereby the behaviour involved is redefined from acceptable deviancy to unacceptable is very interesting, like the last chapters of a John le Carre novel by way of Foucault. A few thoughts below, ranging in geopolitical scope from “vast” to “cosmic”, in a comment which grew into an alternative monetary history of the second half of the twentieth century.

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Pure Partisanship, The New Nonpartisanship

by John Holbo on April 8, 2016

Process hypocrisy isn’t exactly newsworthy, I know, but a few notes. [click to continue…]

Keeping sea lanes open: a benefit cost analysis

by John Quiggin on April 8, 2016

Whenever I raise the observation that navies are essentially obsolete, someone is bound to raise the cry “What about the sea lanes”. The claim that navies play a vital role in protecting trade routes is taken so much for granted that it might seem untestable. But it turns out that most of the information needed for a benefit cost analysis is available. Unsurprisingly (to me at least), the claimed benefit of keeping sea lanes open doesn’t stand up to scrutiny. I’ve spelt this out in an article in Inside Story, reprinted over the fold.

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