http://arstechnica.com/…

Having just passed its super-controversial Création et Internet “graduated response” law, you might think the French government would take at least a brief break from riling up the “internautes.” Instead, the government is prepping a new crime bill that will, among other things, mandate Internet censorship at the ISP level, legalize government spyware, and create a massive meta-database of citizen information called “Pericles.”

French newspaper Le Monde has the details on the new law, dubbed “Loppsi 2.” Together with the recent Dadvsi law (which banned DRM circumvention) and Création et Internet (which disconnects repeat online copyright infringers), Loppsi 2 will “fix” France’s various cybersecurity issues.

Think of the children

Loppsi 2 allows the state to install software that can “observe, collect, record, save, and transmit” keystrokes from computers on which it is installed. In essence, it allows for government-installed Trojans for a period of four months; a judge can extend this period for four months more.

In the US, the FBI has used similar techniques for several years, installing a program called CIPAV on suspects’ computers to record and transmit “pen register” data back to investigators.

Under Loppsi 2, French ISPs would also need to participate in a Web censorship regime that initially appears targeted at child pornography. Critics like Jean-Michel Planche, who advises the French government on Internet issues, are already calling the new bill the end of an open and neutral Internet.

Finally, the bill allows for a database called “Pericles” that can pull together information from various existing French databases to create a “super-dossier” on people. According to Le Monde, such a database could contain all sorts of crucial, personal information, and sounds certain to set off the same debates that have taken place in the US whenever similar projects have been floated.

Oh—and did we mention that Loppsi 2 funds all sorts of other crime-fighting techniques, including automated camera systems that record the license plates of cars passing by on the motorway?

Taken together, the Loppsi 2 draft shows just how serious the Sarkozy government is about getting some control over this crazy Internet thing that all the kids are using now. Actually, this is a situation playing out in most developed countries at the moment, and it’s not yet clear whether a global consensus will emerge on how to deal with law enforcement challenges on the ‘Net.

Numerous countries in Europe already run Internet child porn blacklists; massive government databases exist or are being developed just about everywhere; graduated response laws are slowly moving into the mainstream. France just seems more interested than most in adopting all of these ideas in the shortest possible timeframe.

http://www.huffingtonpost.com/…

According to a report from ABC News, President Obama is not taking kindly to corporate greed, especially when it’s funded by taxpayer money. Read more from ABC here:

The high-flying execs at Citigroup caved under pressure from President Obama and decided today to abandon plans for a luxurious new $50 million corporate jet from France…

ABC News has learned that Monday officials of the Obama administration called Citigroup about the company’s new $50 million corporate jet and told execs to “fix it.”

On Monday, the news broke that bailed out bank was going through with its $50 million private jet purchase even though it had recieved $45 billion in government funds:

The New York Post’s Jennifer Keil and Chuck Bennett reported in Monday’s paper that Citigroup, which has received $45 billion in government bailout funds, is about to upgrade to a new $50 million, twelve-seat corporate jet.

The plane, the Dassault Falcon 7X, is a luxurious jet with a range of 5,950 nautical miles (meaning it can fly from New York to all of Europe and South America, as far east as Riyadh, and as far west as Honolulu or Petropavlovsk, Russia). The Post reports it has “plush interior with leather seats, sofas and a customizable entertainment center.”

Isn’t there talks of a new Air Force One? It’s not to be delivered for some time. Long after Obama is gone. Assuming he doesn’t become führer of the world by then. But still. The US government is 50+ trillion dollars in debt. It’s gotten its money through theft and borrowing. Why is it okay to spend $150m+ on an inauguration? Who knows how much the new tank limo to drive the supreme bureaucrat cost? What was wrong with the old one?

If the Obama administration wants to control what Citibank buys why don’t they personally buy up stake in the company, throw out the board, and put in their own people and vote on new company rules? Oh! That’s right…. it’s because these bureaucrats are little more then thugs with an aura of legitimacy and they likely don’t have the wherewithal to withstand life in the free market. They have to do all their “business” at the barrel of a gun. Oh and they can not give Citibank stolen money either. Then there wouldn’t be this dilemma in the first damn place.

http://news.yahoo.com/…

The head of Europe’s biggest economy said Thursday that world leaders should be looking at the massive U.S. deficit and other economic imbalances, not just problems caused by financial markets, as they debate a new global order.

Speaking at a conference in Paris on the future of capitalism, German Chancellor Angela Merkel singled out the American budget deficit and China’s current account surplus – the difference between exports and imports – as problems upsetting the global economy.

“We would be making an error if we were content to look solely at financial markets,” she said.

She deplored huge debts that governments are accumulating to spend their way out of the present crisis. But she said she recognized, for the moment, that “there is no other possibility.”

A Congressional Budget Office report estimates that the U.S. federal budget deficit will hit an unparalleled $1.2 trillion for the 2009 budget year – and that is before President-elect Barack Obama’s sweeping stimulus package is calculated. European governments have agreed to be flexible about budget rules that limit deficits to 3 percent of gross domestic product as recession bites.

Merkel said the International Monetary Fund has not managed to regulate global capitalism, and she called for the creation of an economy body at the United Nations, similar to the Security Council, to judge government policy.

French President Nicolas Sarkozy, leading the two-day conference with former British Prime Minister Tony Blair, blamed financial speculators for encouraging a system fueled on debt. He called financial capitalism based on speculation “an immoral system” that has “perverted the logic of capitalism.”

“It’s a system where wealth goes to the wealthy, where work is devalued, where production is devalued, where entrepreneurial spirit is devalued,” he said.

But no more: “In capitalism of the 21st century, there is room for the state,” he said.

Governments around the world have had to step in to rescue credit-starved banks and financial institutions from collapse. They are also pumping billions of euros into their economies to encourage growth.

Measures will be taken by global leaders meeting in London on April 2, Sarkozy promised, urging the U.S. to join the international consensus.

Blair called for a new financial order based on “values other than the maximum short-term profit.”

“The greatest entrepreneur I had the chance to meet was passionate about what he had created, not what he had accumulated,” he said.

Anyone with a history book and a cursory understanding of economics knows the State is what caused all this in the first place. What we have is in no way capitalism. In capitalism the maximum role of government is protection of private property. Every “capitalist” government in existence is in fact fascist / neomercantilist / corporatist. This whole game of theirs isn’t about equality or fairness. Whatever the hell that really means or would look like. It’s about centralization. It’s about control.

http://www.reuters.com/…

The credit crunch is not nearly as severe as the U.S. authorities appear to believe and public data actually suggest world credit markets are functioning remarkably well, a report released on Thursday says.

As a result, governments are pumping masses of public money into the economy across the world because of the difficulties of a few big, vocal banks and industries such as car manufacturing, which would be in difficulty anyway, according to the report published by Celent, a financial services consultancy.

“It’s just stabbing in the dark with trillions of dollars,” Octavio Marenzi, report author and head of Celent, told Reuters in a telephone interview where he questioned the depth of the analysis that preceded numerous fiscal stimulus packages.

The report, much of which is based on U.S. Federal Reserve data, challenges a long list of assumptions one by one, arguing that there is indeed a financial crisis but that, on aggregate, the problems of a few are by no means those of the many when it comes to obtaining credit.

“It is startling that many of (Federal Reserve) Chairman (Ben) Bernanke and (Treasury) Secretary (Henry) Paulson’s remarks are not supported or are flatly contradicted by the data provided by the very organizations they lead,” said the report.

Perhaps the U.S. central bank and treasury department, and authorities in other countries by extension, know something they are not telling anyone and which is far more worrying than the public data shows, the report says.

Or, more plausibly, they were generalizing erroneously from the bad experience of a limited number of big banks and companies that are in any case in difficulty.

“I don’t think they’re fabricating stuff but what I think they are doing is taking the situation of a handful of institutions and generalizing that to the market as a whole, incorrectly,” said Marenzi.

The picture appeared to be broadly similar in much of Europe and Japan, said the report, based on publicly available data on trends in bank lending to industry, households and among banks themselves in the so-called interbank markets.

ALL A MYTH?

Regarding U.S. business access to credit, the report says:

*Overall U.S. bank lending is at its highest level ever and has grown during the current financial crisies.

*U.S. commercial bank lending is at record highs and growing particularly fast since May 2007.

*Corporate bond issuance has declined but increased commercial lending has compensated for this.
Read More…

Economic Grief

From http://mises.org:

The events taking place in the financial market offer an illustration of the soundness of the Austrian theory of money, banking, and credit cycles, and Mises.org is your source not only for analysis of these events but also the economic theory that helps explain what is happening and what to do about it. There are many thousands of articles available, and also the full text of thousands of books as well as journal articles. It is impossible to draw attention to the full range of literature one can use to understand the crisis.

However, below we offer a brief look into the topics most discussed in these times, with extended treatments of each in the sidebar. Mises.org also offers both a blog and a community forum for reading and discussing them all.

It’s never been more important to spread a sound view of money and banking, not only as a protection against the fallacies of “stabilization” and “reflation” but also as way to see what kind of reforms are essential now.

Fannie Mae and Freddie Mac

• Freddie Mac: A Mercantilist Enterprise, by Paul Cleveland, March 14, 2005
• Fannie Mae: Another New Deal Monstrosity, by Karen De Coster, July 2, 2007
• How Fannie and Freddie Made Me a Grumpy Economist, by Christopher Westley, July 21, 2008
• Who Made the Fannie and Freddie Threat? By Frank Shostak, March 5, 2004
• Are Fannie and Freddie Too Big to Fail? By Frank Shostak, September 17, 2008
• Fannie Mae Distorts Markets, by Robert Blumen, June 17, 2002

The Housing Bubble

• The Real Cost of a Full Bailout, by Don Rich, August 22, 2008
• The Subprime Mortgage “Crisis” Will Fix Itself, by Steve Berger, May 30, 2007
• Did the Fed Cause the Housing Bubble? By Robert Murphy, April 14, 2008
• The Mortgage Market Mess, by Christopher Westley, May 17, 2007
• Housing Bubble: Myth or Reality? By Frank Shostak, March 4, 2003

Inflationary Finance

• What’s Behind the Financial Market Crisis? by Antony Mueller, September 18, 2008
• Our Financial House of Cards, by George Reisman, March 25, 2008
• Will Central Bankers Become Central Planners? by Robert Blumen, July 31, 2008
• Inflation is a Policy that Cannot Last, by Thorsten Polleit, March 14, 2008
• The Widening Safety Net, by Christopher Mayer, March 19, 2004
• The Fed’s New Tricks Are Creating Disaster, Frank Shostak, March 18, 2008
• The Fed’s War on the Middle Class, by Mark Thornton, June 4, 2008.

Community Reinvestment Act

• The CRA Scam and its Defenders, by Thomas DiLorenzo, April 30, 2008
• Regulatory Sneak Attack, by Thomas DiLorenzo, September 16, 1999

Short Selling

• Short-Sale Restrictions Are an Exercise in Naked Power, by Robert Murphy, August 11, 2008
• The Social Function of Futures Markets, Robert Murphy, November 29, 2006
• Don’t Sell Short Selling Short, April 6, 2007

The Austrian Theory of the Business Cycle

• The Idiocy of Wall Street, by Don Rich, September 24, 2008
• The Fed is Culpable, by Hans F. Sennholz, November 11, 2002
• Skyscrapers and Business Cycles, by Mark Thornton, August 23, 2008
• Economic Outlook 2008: Darkening Clouds, Dominick Armentano, January 2, 2008
• Business Cycle Primer, Llewellyn H. Rockwell, Jr. February 8, 2001
• Economics Depressions: Their Cause and Cure, by Murray Rothbard

Who Predicted This?

• The Financial Apocalyptics are Back, Robert Blumen
• Sowing the Seeds of the Next Crisis, Thorsten Polleit, April 25, 2006
• Credit Crisis: Precursor of Great Inflation, by Thorsten Polleit, February 7, 2008
• Mr. Bailout, by Anton Mueller, September 30, 2004
• America’s Unsustainable Boom, by Stefan Karlsson, November 8, 2004
• Who Predicted the Bubble? Who Predicted the Crash? By Mark Thornton, July 14, 2003

What To Do

• Don’t Bail Them Out, by Llewellyn H. Rockwell, Jr., September 10, 2008
• How to Avoid Another Depression, by Mark Thornton, September 10, 2008
• Taking Money Back, By Murray N. Rothbard, June 14, 2008
• Beware the Alchemists, by Ludwig von Mises, February 3, 2006
• Reflation in American History, by H.A. Scott Trask, October 31, 2003
• Money and Freedom, by Joseph Salerno, February 2, 2002
• The Case for a Genuine Gold Dollar, by Murray Rothbard

Books to Distribute

• The Theory of Money and Credit, by Ludwig von Mises
• America’s Great Depression, by Murray Rothbard
• The Mystery of Banking, by Murray Rothbard
• Prices and Production, by F.A. Hayek
• Causes of the Economic Crisis, by Ludwig von Mises
• Austrian Theory of the Trade Cycle and Other Essays, Ludwig von Mises et al.
• Understanding the Dollar Crisis, by Percy Greaves
• The Case Against the Fed, by Murray Rothbard
• Money, Bank Credit, and Economic Cycles, by Jesus Huerta de Soto
• History of American Currency, by William Graham Sumner
• Banking and the Business Cycle, by C.A. Phillips
• Fiat Money Inflation in France, by Andrew Dickson White