Blog Carefully!
It is a crime to criticize the stability of the banking system in Latvia. Economists have been prominent among those rounded up recently in these uncertain times (that phrase would be about as far as you can go in Riga) for suggesting that one could lose money through exposure to the country's banking system.
Monday's Wall Street Journal explains on its front page how the now-51%-government-owned biggest bank in the country has become the beneficiary of such protection.
Hayek's dictum that economic control entails the control of all rights and freedoms is once again demonstrated.
Comments (12)
Brad
Latvia's banking system is fundamentally unstable because it is based upon fractional reserve banking. All fractional reserve banks are always insolvent, by their very nature.
There, I just broke Latvian government law. I dare the Latvian government to send their armed thugs after me.
Published: December 1, 2008 10:14 AM
Pat
I can imagine that would make the Feds jealous of their Latvian counterparts. But that is all part of the consequences of having a big government. The next thing we know, economic stability will become one of the mandates of the Department of Homeland Security. Unfortunately, that step was already taken by one country in Europe: Britain. And the crisis was the meltdown in Iceland.
Published: December 1, 2008 10:28 AM
Morty
Latvia was one of the countries that gave me hope, they'd been doing so well in terms of liberalizing. No more, it seems.
Published: December 1, 2008 10:43 AM
College Parasite
What I'm most anxious about is China. Liberty there has some momentum, but who can tell when the Reds are going to screw everything up, especially now that "capitalism has failed"?
Published: December 1, 2008 11:24 AM
Bruce Koerber
Are you saying that economists 'who know better' are supposed to let the fear that the unConstitutional coup will become increasingly totalitarian temper their attempt to educate?
Published: December 1, 2008 12:59 PM
newson
"Extraordinary times call for extraordinary measures."
sadly, this neatly captures the new zeitgeist. this is one cliche that we'll hear again.
Published: December 1, 2008 8:28 PM
David Carlson
This is incredible. I heard a while back that some bloggers in various countries have been silenced by the government. This is a new day and age, though, as it is not similar to a few centuries ago when someone would have to go in public and physically be around the people who they are exercising free speech around. With blogging and the internet one can stay on the down low and even run multiple blogs to avoid detection. The next 50 years will be interesting as more and more of communications is moved online.
David Carlson
http://www.davidcarlsonpolitics.com
Published: December 2, 2008 12:33 AM
Arend
One should be really careful in calling the Latvian banking system fundamentally unstable, because just as criticizing the system will contribute to its collapse, just believing... BELIEVING the system is stable, and good, and wonderful will just make it a fact. That's how one beats reality, my dear friends. Government style.
(irony mode off)
Published: December 2, 2008 6:22 AM
Current
Folks here don't understand the problems in Latvia.
The big problem is that the banks have being borrowing swiss francs during the boom times. They have then made mortgages in local currency using those francs. Now that carry trade is unwinding and Latvia is in for a big crash.
It is likely the same is true of Hungary for similar reasons.
Published: December 2, 2008 6:54 AM
Tom
It seems as though Latvia is being subjected to some of that good old american democracy-i.e. censorship, intimidation, domestic terrorism, fascism, totalitarianism, etc.
Don`t you just love it!
Published: December 2, 2008 4:09 PM
Boris
So, the "bolshevicks" are alive & living in Latvia!
Published: December 2, 2008 8:22 PM
Cy
Censorship is alive and well. It is not confined to any particular country. Recent changes in law worldwide have empowered govt to do much as they please. Time is running out.
From the novel Fe Fi FOE Comes:
'A warning to the reader ..
You may not wish for people to know you are reading this book. In some jurisdictions such material is banned. In some places there may be severe penalties should you be found with it in your possession. Even in places with free speech some authorities, or some of your neighbors, may be suspicious if they read portions of this book, and find you reading it. In the near future the consequences could be worse. You may not wish to read it at all. Maybe you shouldn’t.
“Government is now pervasive in every aspect of our lives. The revenue to maintain this engine continues to grow geometrically, and is an ever larger percentage of our income. Everything is illegal; whenever it needs to be illegal it is. Freedom remains only to do the inconsequential. There is no place to go to get away from it, and no way to change it … or is there?”
Das
Alta Mira, Alaska'
Published: December 5, 2008 2:26 AM