RUTHFULLY YOURS

https://www.wsj.com/articles/rouhani-suffers-fresh-blow-after-irans-parliament-ousts-economy-minister-1535296186?cx_testId=16&cx_testVariant=cx&cx_artPos=8&cx_tag=collabctx&cx_navSource=newsReel#cxrecs_s

Iran’s parliament ousted the country’s economy minister Sunday, stepping up an overhaul of President Hassan Rouhani’s cabinet amid deep domestic opposition to his response to harsh new U.S. sanctions.

Mr. Rouhani, a relative moderate in Iran’s system, had surrounded himself with a cabinet of technocrats, vowing to fight corruption, promote transparency and open Iran’s economy to the West with the 2015 nuclear deal.

But after the economy faltered and the Iran deal came under threat from the Trump administration last year, hard-line opponents have seized on Iran’s growing rich-poor divide and plummeting currency to gut Mr. Rouhani’s economic team and undercut that strategy.

Slightly more than the required majority of 260 parliamentarians present on Sunday voted to fire the economy minister, Masoud Karbasian, state television reported. Parliamentarians criticized him for allegedly failing to address the currency crisis or tame high inflation, and for his unfitness to fight an economic war with the U.S. since Mr. Trump withdrew from the deal in May and began imposing new sanctions.

The move against Mr. Karbasian, who held his position for little more than a year, followed the parliament’s impeachment early this month of Mr. Rouhani’s labor minister on grounds that he failed to properly address unemployment, which the International Monetary Fund forecasts at around 12% this year.

Mr. Rouhani also removed and replaced the central bank governor, Valiollah Seif, last month after Iran’s currency fell to new lows against the dollar. It now takes around 105,000 Iranian rials to buy a dollar, compared with about 43,000 in January.

https://www.wsj.com/articles/venezuelas-tyranny-of-bad-ideas-1535311573

Ideas run the world. Good ones create freedom and wealth; bad ones, oppression and poverty. You are not what you eat, but what you think.

Politicians in particular fall under the sway of ideas. As John Maynard Keynes put it, “Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back. . . . It is ideas, not vested interests, which are dangerous for good or evil.”

The story of Venezuela makes this point with singular clarity. In 1914 the discovery of oil brought the country vast revenues and produced a relatively free economy. By 1950 Venezuela enjoyed the fourth-highest per capita income in the world, behind only the U.S., Switzerland and New Zealand. As late as 1980, it boasted the world’s fastest-growing economy in the 20th century. In 2001 Venezuela still ranked as Latin America’s wealthiest country.

Venezuela’s troubles, however, had begun long before. Starting around 1958, government interference in the economy, including price and exchange controls, higher taxes, and restrictions on property rights, led to decades of stagnation, with per capita real income declining 0.13% from 1960-97. Still, it remained a normal, functioning country.

Today the country with the world’s largest oil reserves suffers from a severely contracting economy, runaway inflation, despotism, mass emigration, criminality, disease, hunger and starvation, with circumstances deteriorating daily. Venezuela’s economy contracted by 16% in 2016, 14% last year and a predicted 15% in 2018. Inflation was at 112% in 2015 and 2,800% at the end of last year. Economist Steve Hanke finds an annualized rate of around 65,000% for 2018, making Venezuela’s one of the most severe hyperinflations ever. Food shortages led to an average weight loss among Venezuelans of 18 pounds in 2016 and 24 pounds in 2017.

What caused this crisis? Foreign invasion, civil war, natural disaster, substitutes for oil, or agricultural plagues? No, bad ideas, pure and simple. CONTINUE AT SITE

https://amgreatness.com/2018/08/26/holding

The increasingly autocratic government of Turkey has lost its mind. Or, at least, it has returned to its historical form.

Under Turkish strongman Recep Tayyip Erdogan, the country has slipped away from a nascent form of democracy into an autocracy informed increasingly by Islamism. Whereas Turkey was once a bulwark against Soviet Communism in southern Europe—a secular power run by pro-Western leaders increasingly seeking to become enmeshed in the Western socioeconomic system—since Erdogan’s rise, Turkey has sprinted as far away from Europe and the West as possible. Now, Turkey exists as just another dictatorship in the Islamic World.

Truth is, Turkey and the West were always allies of convenience. When push-came-to-shove in accepting Turkey into the EU, Brussels opted to push back against Turkey’s membership until Ankara met certain political conditions. By that time, though, Erdogan had already begun his rapid Islamization of the once-secular Turkey. No compromise could be brooked.

Turkey also rankled the West when it continued zealously to hold influence over northern Cyprus. The government of Turkey also clashed routinely with those in the West who (rightly) supported Kurdish independence (at least in northern Iraq). Turkey was so concerned that the United States ultimately would grant the Kurds of northern Iraq a state after they toppled Saddam Hussein’s government, that Turkey—a fellow NATO ally—refused to allow American military units to use Turkish territory to conduct offensive operations against Iraq.