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Spengler

The Global Failure of Keynesianism

April 5th, 2013 - 8:07 am

The world’s central banks are playing leapfrog, each trying to ease faster than the other. Since 2008, the world’s central banks have expanded their balance sheets by a staggering $4.7 trillion. The Federal Reserve’s quantitative easing forced the hand of the Bank of Japan, which earlier this week announced that it would double its rate of securities buying, pushing the 10-year Japanese government bond yield down to an all-time low of 0.43%. The Fed’s easing reduced the U.S. dollar’s exchange rate and boosted U.S. exports, largely at the expense of Japan and Europe. With some of Japan’s top export names at risk of bankruptcy, Japan responded with aggressive easing to reduce the value of the yen. Europe is the big loser, and the European Central Bank this week indicated that it might follow suit.

The central banks have been working straight from the playbook that John Maynard Keynes devised in the 1930s, and it has been a dismal failure. They are competing for a stagnant volume of world trade. Quantitative easing has shifted the pain around the world, but it hasn’t restored growth. Once again, the world has to learn the hard way that Keynesian economics fails. It’s disheartening that no major political party anywhere in the world has articulated a clear alternative.

Many conservatives bought into the market consensus, namely that Fed easing would boost asset prices, asset prices would boost consumption, and higher consumption would drive the overall economy. There was an element of self-consolation in this credulity: if the U.S. economy was indeed recovering, it “explains” the Obama victory last November and takes the Republican leadership off the hook for a devastating defeat. The alternative view — that Obama crushed Romney despite a very weak economy — puts the blame on Republican leaders. The fact is that Obama wasn’t lucky. We did a bad job.

Today’s reports from the Labor Department showed the smallest increase in employment in 10 months at just 88,000 and, more importantly, the lowest labor force participation rate since 1979 at just 63.9%. Americans are dropping out of the labor force because they can’t find work. The Shadow Government Statistics website puts the true unemployment rate (the proportion of Americans who could be working but aren’t) at 23%.

Conservatives (along with the market consensus) gave too much credibility to the supposed recuperative powers of the U.S. economy, and put too much faith in the Federal Reserve’s Keynesian machinations. The Fed has bought nearly $3 trillion of Treasury and mortgage-backed securities since the 2008 crisis, accelerating its purchases in recent months, in order to suppress long-term yields and (especially) the yield on risky securities.

Graph of Reserve Bank Credit - Securities Held Outright

That’s boosted the stock market, but–as we have seen from a week of disappointing economic data–not economic growth. As I wrote in Barron’s March 13, the Fed’s largesse has encouraged investors to lever up existing assets with cheap credit, but not to invest in new plant and equipment:

Optimism about U.S. consumers drove employment gains in February. Evidently the wealth effect from rising equity and home prices has spilled over into employment. About two-thirds of the employment growth came in construction and consumer-related services. This is good for stocks. But you don’t need a growth story to explain the improvement in equities. Leverage is driving stocks. The Fed is persuading businesses to re-lever balance sheets but not to break ground on new plants. Cheap leverage favors existing assets. The recovery remains lopsided with investment lagging badly.

Usually the stock market anticipates economic growth, but under the extraordinary regime of quantitative easing, equity prices reflect the cheapness of leverage more than expected earnings growth. That’s why low-volatility sectors with bond-like cash flows (consumer durables, consumer discretionary, utilities) have led the market while capital-goods producers like Cisco and Caterpillar have lagged.

Even the very modest growth the U.S. has managed to sustain during the past two years depends to a great extent on export growth. That might be the biggest contribution the Fed has made to growth; quantitative easing has helped keep the dollar cheap and that has been helpful to exports. The Fed did not target the dollar — Ben Bernanke simply does not think that way. The Fed, rather, targeted the risk composition of investor portfolios (negative short-term rates and long rates depressed by Fed purchases of longer Treasuries are supposed to force investors to invest in brick and mortar). It didn’t work out that way, to be sure; investors are buying existing brick and mortar with cheap leverage rather than investing in new plant and equipment.

 

FRED Graph

Japan, meanwhile, has gotten the other end of the stick. As the yen rose, Japan’s exports collapsed. Top Japanese names like Sony and Panasonic saw their stock price crater and their cost of credit soar. This forced the Bank of Japan to act aggressively and force down the yen exchange rate.

FRED Graph

 

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“Short of Money, Egypt Sees Crisis on Fuel and Food” is the headline of David Kirkpatrick’s dispatch running the length of the right-hand column of Sunday’s New York Times. Two years after Egypt’s impending economic disaster became apparent, it leads the liberal newspaper of broken record. As Kirkpatrick belatedly observes:

Egypt is running out of the hard currency it needs for fuel imports. The shortage is raising questions about Egypt’s ability to keep importing wheat that is essential to subsidized bread supplies, stirring fears of an economic catastrophe at a time when the government is already struggling to quell violent protests by its political rivals. Farmers already lack fuel for the pumps that irrigate their fields, and they say they fear they will not have enough for the tractors to reap their wheat next month before it rots in the fields.

The American foreign policy consensus is riding a dying horse. The Obama administration’s hopes for Muslim democracy have run up against reality, along with the illusions of the Republican mainstream. As recently as March 8, Charles Krauthammer, the pundit who gave the name “democratic realism” to these illusions, argued that “we should not cut off aid to Egypt,” that “we should remain engaged,” because “there is nothing inevitable about [Muslim] Brotherhood rule.”  That is true, strictly speaking. Egypt’s military might seize power, but that’s not what Krauthammer meant. The trouble is that Washington is still arguing about the disposition of deck chairs on a Saharan version of the Titanic. The question is, rather: How do we deal with a Middle East in which social chaos becomes the new normal?

As I predicted last September and on several subsequent occasions, the Obama administration’s silver bullet–a $4.8 billion loan from the International Monetary Fund in exchange for tax hikes and budget cuts–never will be fired. Kirkpatrick:

United States officials warn of disaster unless Egypt soon carries out a package of tax increases and subsidy cuts tied to a $4.8 billion loan from the International Monetary Fund. That would persuade other lenders that Egypt was creditworthy enough to obtain billions more in additional loans needed to meet its yawning deficit. But fearful of a public reaction at a time when the streets are already near boiling, the government of President Mohamed Morsi has so far resisted an I.M.F. deal, insisting that Egypt can wait.

Egypt is not going into an economic and social tailspin because the government of Hosni Mubarak fell in 2011; the government of Hosni Mubarak fell because Egypt already was headed into an economic and social tailspin. We stand not before a glorious era of Muslim democracy, comparable to the revival of Eastern Europe after the fall of Communism, but a prolonged period of chaos. We cannot prevent this; at best we can limit the damage. The problem with the Republican Party isn’t that our generals are stupid or malicious. On the contrary: with great intelligence and good will, they have been fighting the last war rather than the new kind of war that confronts us. A war arising from civilizational failure is a circumstance that never entered their imagination.

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The estimable Peggy Noonan asked last week, “Can the Republican Party recover from Iraq?,” adding, “It’s still digging out, and whether it can succeed is an open question.” Republicans can succeed by boldness, clarity, and courage, but by no other means. Americans trust the Republican Party to look out for their security in a pinch. By a margin of 63 to 28, the Pew Institute reported March 26, they favor military force to prevent Iran from getting nuclear weapons. Just 8% are undecided. There’s the Republican majority on foreign policy. Even Western Europeans (excepting Greece) favor the use of force if needed, albeit by smaller majorities.

Why aren’t we appealing to this majority? Apparently we are so browbeaten by the public backlash against the blunders in our nation-building exercise that we are afraid to ask the public to support a limited, mainly aerial attack on a terrorist nation on the verge of becoming a nuclear power. If that’s the best we can do, we deserve the contempt of the voters. Mitt Romney hid under his chair during the second presidential debate on foreign policy. It didn’t do him any good. This kind of timidity goes back to the Bush administration, which feared that an extension of the conflict would lead to a public backlash against the war.

Obama has done nothing since taking office but let the mullahs run out the clock while they accelerate uranium enrichment, extract plutonium from the Bushehr light war reactor, and perhaps acquire weapons from North Korea. No-one expects the Obama administration to do what the vast majority of Americans want, that is, use force to prevent this calamity from happening. Top Pentagon planners assume that Iran will acquire nuclear capability. The oil market assigns a probability of around zero that America will attack Iran, as I showed in a recent study for the Jewish Institute for National Security Affairs.

 

Republicans should assert leadership on national security. We should say: “Enough is enough. We’ve run out the clock for four years, and Iran is on the verge of getting nuclear weapons. If Iran gets nuclear weapons, so will the terrorists that Iran has funded and armed for the past thirty-four years. It’s time to take action.”

We should remind voters that Obama did nothing to aid the Iranian people when they demonstrated in the millions against vote fraud after the 2009 presidential elections in that country.

We should demand that Obama back regime change, as my PJ Media colleague Michael Ledeen has argued for years. We should ridicule the notion that our intelligence services can pinpoint the date at which Iran will become a nuclear power. They were caught flat-footed by India’s nuclear weapons acquisition in 1998 as well as North Korea’s apparent test of a plutonium bomb in February. And we should make clear that we have no intention of putting significant numbers of boots on the ground in Iran.

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“In Russia, most analysts, politicians and ordinary citizens believe in the unlimited might of America, and thus reject the notion that the US has made, and continues to make, mistakes in the [Middle East]. Instead, they assume it’s all a part of a complex plan to restructure the world and to spread global domination,” writes Fyodor Lukyanov on the Al Monitor website today. Lukyanov, who chairs Russia’s Council on Foreign and Defense Policy, laments what he derides as a “conspiracy theory.” Nonetheless, he reports, President Vladimir Putin and the Russian elite think that the United States is spreading chaos as part of a diabolical plot for world domination:

From Russian leadership’s point of view, the Iraq War now looks like the beginning of the accelerated destruction of regional and global stability, undermining the last principles of sustainable world order. Everything that’s happened since — including flirting with Islamists during the Arab Spring, U.S. policies in Libya and its current policies in Syria — serve as evidence of strategic insanity that has taken over the last remaining superpower.

Russia’s persistence on the Syrian issue is the product of this perception. The issue is not sympathy for Syria’s dictator, nor commercial interests, nor naval bases in Tartus. Moscow is certain that if continued crushing of secular authoritarian regimes is allowed because America and the West support “democracy,” it will lead to such destabilization that will overwhelm all, including Russia. It’s therefore necessary for Russia to resist, especially as the West and the United States themselves experience increasing doubts.

It’s instructive to view ourselves through a Russian mirror. The term “paranoid Russian” is a pleonasm. “The fact is that all Russian politicians are clever. The stupid ones are all dead. By contrast, America in its complacency promotes dullards. A deadly miscommunication arises from this asymmetry. The Russians cannot believe that the Americans are as stupid as they look, and conclude that Washington wants to destroy them,” I wrote in 2008 under the title “Americans play monopoly, Russians chess.” Russians have dominated chess most of the past century, for good reason: it is the ultimate exercise in paranoia. All the pieces on the board are guided by a single combative mind, and every move is significant. In the real world, human beings flail and blunder. For Russian officials who climbed the greasy pole in the intelligence services, mistakes are unthinkable, for those who made mistakes are long since buried.

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(Cross-posted from Asia Times Online)

US exceptionalism a matter of faith
By Spengler

The influential bi-monthly The American Interest devotes the front section of its March/April issue to the end of American Exceptionalism. As Mark Twain said about rumors of his own death, it’s exaggerated. All depends on demographics: what has made the United States radically different from all other big industrial nations during the past generation is a fertility rate above replacement.

After the 2008 crisis, the United States’ fertility dipped below the replacement line. Whether that continues or reverses depends, in turn, on America’s religious character, and that is the least predictable facet of American life.

There are many good arguments against the idea of American Exceptionalism, but there has been – until very recently- one outstanding argument in favor. The United States is the last remaining Christian nation in the industrial world, and was until 2010 the only industrial nation with fertility above replacement.

That is an issue of fact; the American Interest addresses ideology. Prof Walter McDougall’s entry claims that ”Exceptionalism” itself was an invention of Cold War propaganda that the Pilgrim Fathers never had in mind. Another piece by Nils Gilman states that all nations have a ”master narrative” of their uniqueness to which the United States is, well, no exception. And UCLA’s Peter Berger argues that the United States used to be exceptional but isn’t any more. Two of the three pieces start by quoting President Barack Obama’s 2009 comment that the US is exceptional the same way that Greece or any other country is exceptional.

There is a good deal of truth in all three accounts. During most of US history, Americans had no vision of a City on a Hill, as 17th-century Massachusetts governor John Winthrop paraphrased the New Testament words. Prof McDougall correctly points out that the image came into rhetorical focus during World War II and the Cold War. That does not prove it false, however.

The European powers spent the first half of the 20th century trying to destroy each other with a fair degree of success, and the second half of the 20th century cowering before the Soviet Union. The United States was left to sort things out. It is no surprise that Americans rediscovered their unique mission in the world when superpower status was thrust upon them.

It also is quite true that every nation considers itself exceptional. If it did not, its citizens could not stand ordinary existence. If we believe that human beings care about the meaning of their lives beyond their brief physical existence, we also must believe that they identify deeply with their culture, and hold their culture to be unique.

The opposite also applies: the members of deracinated cultures often are too despondent to raise children.

To speak of an “exceptional culture” would be a pleonasm; national cultures are unique by construction. Nonetheless some cultures may be radically exceptional. Unlike all the other nations of the world, America’s Exceptionalism rests on a political culture informed by the biblical idea of covenant – not on common language, race, borders, or history. That is why the US emerged as the survivor out of the 20th century while the ethnocentric cultures of Europe plunged into mutual destruction.

It may be true that America’s time is past. Perhaps Americans grew too lazy on the tribute of empire during the quarter-century since the end of the Cold War, when all the world’s capital and talent flowed to its shores – until the 2008 crisis.

Americans got rich speculating on houses rather than inventing new technologies. Their rate of innovation slowed and productivity growth came to a standstill, to the point that respected economists like Northwestern University’s Robert Gordon assert that the productivity boom of the digital age is past.

It is possible that China’s 40 million classical music students will turn into 40 million engineers and scientists, and that China will absorb the whole technology of the West within a single generation, and overwhelm America through the sheer size of its skilled population.

Meanwhile, as Nicholas Eberstadt observed in his 2012 book A Nation of Takers, 35% of American households receive some form of means-tested government help, that is, welfare.

Transfer Payments as a Percent of Personal Income

Source: Bureau of Economic Analysis

Transfer payments now comprise a fifth of all US personal income. America’s economy is looking increasingly statist and its population more dependent – more like Europe, in a nutshell. Prof Baldwin notes that the American Dream of social advancement has attenuated during the past generation to the point that “social advancement is now more likely in the high-taxing, high-spending nations of northern Europe and Canada, with their generous employment and family benefits.” I think he has judged the US too harshly by focusing on a particularly rocky period in the American economy, but things could turn out this way.

Faith and demographics used to distinguish America from the rest of the industrial world. I wrote my 2011 book How Civilizations Die (and Why Islam is Dying, Too):

It is not that Americans in general are having children, but that Americans of faith are having children, and there are more Americans of faith than citizens of any other industrial country. According to a 2002 survey by the Pew Research Institute, 59% of Americans said that religion was important to them, against, 11% in France, 21% in Germany, 27% in Italy, 33% in Great Britain, and 36% in Poland. In both Europe and America, people who practice a religion have far more children than those who do not. It’s just that there are far more Americans than Europeans practicing a faith.

Thomas Frejka and Charles Westhoff of Germany’s Max Planck Institute observe that half of American women in their childbearing years (ages 18-44) say that religion is “very important” to them, against only fewer than one out of six European women. The close link between faith and fertility applies to Europeans as well as Americans, Frejka and Westhoff report.


Source: Max Planck Institute

Is America exceptional in terms of demographics, or just the leper with the most fingers? America’s demographics have the same shape as the rest of the industrial world. By 2050, America will have twice as many citizens over 60 as labor force entrants (citizens 15 to 24 years old).

Americans Aged 15 to 24 vs. Americans aged over 60, Percent of Total

Source: United Nations Medium Variant

In Germany, to be sure, the proportion of population over age 60 will rise to 43%. Japan will have a majority of elderly dependents.

Germans Aged 60

Source: United Nations Medium Variant

America’s fertility rate dipped from 2.1, just at replacement, during most of the 2000′s to just 1.9 in 2010, mainly due to a drastic drop in Hispanic fertility. Hispanic immigrant women are trending towards two children rather than three, and that is enough to push America’s aggregate fertility rate below the replacement line.

But it would be not only premature, but also presumptuous, to announce the death of American Exceptionalism. Prof McDougall is quite right that the notion of the “City on a Hill” is not a continuous or even predominant theme in American history: it is an exceptional theme, but nonetheless a defining one.

Between 1800 and 1860, the dominant American idea was Westward expansion of slavery. The pro-slavery, agrarian party dominated the White House until the election of Abraham Lincoln. Spurred by the Second Great Awakening, an evangelical movement in which Abolitionists were prominent, America found the spiritual resources to fight a war against slavery at now-unimaginable cost.

Lincoln’s Gettysburg Address asserted that the survival of “government of the people, by the people, and for the people” depended on this “new nation, conceived in liberty”.

After this brief but defining moment, America backed away in horror from the Calvinist tone of its beloved wartime leader. They had had enough a God who demands sacrifice in the name of justice (“until every drop of blood drawn by the lash is requited by a drop drawn by the sword”). Instead, Americans embrace a Social Gospel with the cheerful message that humankind could be the master of its own destiny.

There was nothing exceptional about that. America slept a long geopolitical slumber until Europe’s 20th-century catastrophe made it the arbiter of world events.

America’s founding idea never has been a constant feature of its political life. They are prone to complacency, like all other peoples. “What people want first of all,” as the Lord told Mephistopheles in the prologue to Faust, “is unconditional rest.” What they wanted in the past election was the party that would reassure them that things would be all right, as Vice-President Joseph Biden capped his debate with Republican Paul Ryan – the party that would be surest to send out the checks.

But it is too early to declare the American experiment dead. The First Great Awakening, the Calvinist evangelization of Jonathan Edwards and his circle, made possible what Britain’s King George III called “the Presbyterian War”, better known as the American Revolution. The Second Great Awakening firmed American resolve for the Civil War. And what some historians call a Fourth Great Awakening, the emergence of evangelical Christianity as the dominant mode of American Protestantism, buoyed America’s economic revival an Cold War victory of the 1980s.

To discern the future of America’s spiritual life is beyond the competence of Profs McDougall and Baldwin as much as it is beyond mine. For Americans who still believe in this country’s unique mission, the question is not what we forecast, but whether we will keep faith.

The Republican Foreign-Policy Meltdown

March 10th, 2013 - 8:33 pm

Over at the Washington Post, Jennifer Rubin vents frustration at the Republicans’ inability to advance and defend a coherent foreign-policy alternative to the Obama administration’s:

The reaction of some hawks on the right to Kentucky Sen. Rand Paul’s filibuster suggests a refusal to recognize why Paul was so successful in garnering praise. They are seemingly unable to recognize the deeply held perception of many, if not most, of the American people that Iraq and Afghanistan were unsuccessful and that enthusiasm for the Arab Spring is misplaced. They have lost credibility with the American people and they need to both acknowledge that and strive to get it back.

Good for Ms. Rubin. But the retooling of Republican policy, if ever it occurs, will be painful, because our errors have deep and stubborn roots. Mitt Romney read the popular mood well enough to keep his mouth shut through the whole of the disastrous second debate on foreign policy, and to keep George W. Bush under wraps through the whole of the campaign. Apart from a general commitment to maintain American military strength, though, Romney advanced not a single new idea in foreign policy.

The problem is about to get much, much worse. Syria’s civil war has already spread to Iraq, as Al-Monitor reported March 10:

On March 5, Syrian militants reportedly affiliated with al-Qaeda attacked a convoy of Syrian and Iraqi soldiers near the Rabia border crossing in western Iraq. Forty-eight Syrians, mostly military, and nine Iraqi soldiers were killed. The Syrians had earlier received medical treatment in Iraq.

As Mushreq Abbas reported for Al-Monitor, the ambush at the border should not just be considered a  “military confrontation in the strictest sense of the word, but rather was an extension of the national turmoil on both sides of the border.”

The forces of Iraq’s Sunni Awakening, funded and armed by Gen. David Petraeus during the 2007-2008 surge, will be drawn into a regional Sunni-Shi’ite war that began in Syria but will extend to Iraq as well as Lebanon. I wrote in 2010 that “Petraeus’ ‘surge’ of 2007-2008 drastically reduced the level of violence in Iraq by absorbing most of the available Sunni fighters into an American-financed militia, the ‘Sons of Iraq,’ or Sunni Awakening…Petraeus created a balance of power between Sunnis and Shi’ites by reconstructing the former’s fighting capacity, while persuading pro-Iranian militants to bide their time. To achieve this balance of power, though, he built up Sunni military power to the point that – for the first time in Iraq’s history – Sunnis and Shi’ites are capable of fighting a full-dress civil war with professional armed forces.”

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If the State Department wants to advance the rights of Egyptian women, why not ask President Mohammed Morsi to support a ban on female genital mutilation, a horrific form of violence perpetrated on more than 90% of Egyptian women, according to the World Health Organization? The point of the mutilation is to destroy a woman’s capacity for sexual pleasure the better to ensure her marital fidelity. Deposed President Mubarak and his wife campaigned against it: not so President Morsi. As the blog “An Arab Citizen” reported last year:

Speaking now on Egypt’s CBC Channel in a “meet your presidential candidate” type of event, the FJP/MB’s Mohammed Morsy was asked by a female doctor and panelist what he thought about recent calls to apparently “revise” the law banning FGM/Female Circumcision in Egypt. The candidate embarked on a long and vague answer which left a few, including the doctor herself, uncertain to a considerable extent as to his concise statement of position. But most of the people I have spoken to agree that the candidate seems to be suggesting that it should be the prerogative of the family to decide if they want their daughter to undergo it or not. When pressed further, he said it was not the role of the president to be involved in such details.

The Mubarak government banned the practice in June 2007, to little effect. The Muslim Brotherhood’s Morsi refused to support the ban. The most prominent Muslim Brotherhood cleric, Sheikh Yusuf al-Qaradawi, defended a surreal “moderate” position of removing part but not all of the clitoris in a fatwa published on the website Islam Online:

The most moderate opinion and the most likely one to be correct is in favor of practicing circumcision in the moderate Islamic way indicated in some of the Prophet’s hadiths—even though such hadiths are not confirmed to be authentic. It is reported that the Prophet (peace and blessings be upon him) said to a midwife: “Reduce the size of the clitoris but do not exceed the limit, for that is better for her health and is preferred by husbands.” The hadith indicates that circumcision is better for a woman’s health and it enhances her conjugal relation with her husband. It’s noteworthy that the Prophet’s saying “do not exceed the limit” means do not totally remove the clitoris.

There is no greater right than the right not to be killed or mutilated, as 90% of Egyptian women have been. Is there a more heinous or systematic violation of human rights anywhere in the world than the genital mutilation of tens of millions of women? And is there a more revolting example of human rights violation in the name of religion than the declaration of the Muslim Brotherhood’s leading authority, Sheikh Qaradawi? Why doesn’t Secretary Kerry say something about this? And why don’t American feminists demand that he raise the issue? Does cultural sensitivity trump the most fundamental right of women?

We already know the answer. Genital mutilation is the elephant in the parlor of Egyptian Islamism.  Although genital mutilation is not a universal tenet of Islam, it is so embedded in Egyptian Islam that to call it into question would be tantamount to challenging the legitimacy of Islamism in Egypt. The Obama administration has bet on Islamism as the wave of the future in the Arab world. Egypt’s opposition remonstrated to Secretary Kerry this week that America is perceived as the Muslim Brotherhood’s ally, against the fledgling democracy movement. Kerry’s response was to urge the major opposition party, the National Salvation Front, to drop its boycott of the Muslim Brotherhood’s rigged parliamentary elections on April 22, in order to speed the approval of an IMF loan.

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Book Review: What is Marriage? Man and Woman: A Defense, by Sherif Girgis, Ryan T Anderson, and Robert P George. Paperback; 133 pages, US$15.99.

Now that a large group of Republicans has joined the Obama administration’s Supreme Court brief in support of gay marriage, it’s time for conservatives to come to terms with the implications of this prospective sea-change in the culture. Robert P. George, whom the New York Times characterized as America’s leading Christian conservative philosopher, and two of his students have published a brilliant analysis of the issue and its ramifications which every conservative should read. My review appeared this morning in Asia Times Online. It is cross-posted below.

 

Looking for marriage in all the wrong places
By Spengler

Two mutually incompatible arguments are advanced to defend gay marriage. The first states that marriage is a good thing provided by the state, such that gay people have the same right to it as anyone else. The second states that marriage is a bad thing, and that bringing gay people into the institution of marriage will destroy it from the inside.

Michelangelo Signorile, a prominent gay activist, urges people in same-sex relationships to “demand the right to marry not as a

way of adhering to society’s moral codes but rather to debunk a myth and radically alter an archaic institution”. They should “fight for same-sex marriage and its benefits and then, once granted, redefine the institution of marriage completely, because the most subversive action lesbians and gay men can undertake … is to transform the notion of ‘family’ entirely”.

Signorile is quoted in a new book by the distinguished legal philosopher Robert P George and two of his students. They contend that marriage is an institution quite different from the domestic arrangement that advocates of gay marriage have in mind. Gay marriage as such isn’t the issue, argue the authors: it an attempt to do away with the traditional view of marriage as a comprehensive union, and replace it with a view marriage as an especially intense sort of emotional bond.

Signorile might be tardy in his plan to “redefine the institution of marriage”. Hedonistic heterosexuals have been hacking away at the traditional concept of marriage for years. Whether gay marriage becomes law or not, the institution of marriage in the United States may erode so quickly that it will cease to perform its social function, that is, rearing a new generation of Americans.

A Pew Research survey in 2010 found that almost 40% of Americans consider marriage “obsolete,” versus 28% in 1978. They are acting on their convictions. Politicians of both parties are adjusting to the perceived shift in opinion. The Obama administration has petitioned the Supreme Court to overturn California’s law against gay marriage, and 100 prominent Republicans last week signed a supporting legal brief to the Court.

Professor George and his colleagues defend traditional marriage from the vantage point of natural law, a minority viewpoint in an era where the capricious definition of one’s identity is the focal point of culture. One may quibble with natural law as a concept or with the way that Professor George applies it, but there are some natural criteria which cannot be gainsaid. Here’s one: will our actions make us extinct? The natural definition of marriage advanced by George, Girgis and Anderson is consistent with the continued existence of the United States; the “whatever” definition supported by their opponents manifestly is not.

America’s fertility rate dipped to just 1.9 children per female in 2010 in the Census Bureau’s estimate, well below the 2.1 level required to maintain the present population. Two-fifths of the fewer American children born in 2010, moreover, were born out of marriage.

Marriage rates have fallen in parallel to the decline in fertility. Only 51% of Americans 18 and over were married in 2010, compared to 72% in 1960. The numbers are much worse for minorities, with just 31% of adult African-Americans married in 2010, versus 72% in 1960. 40% of American women never have married, a proportion that is much higher among minorities (55% of black women and 49% of Hispanic women). Women who marry do so at a much later age (27 years in 2010 versus 21 years in 1950).

Sociologist Charles Murray argues that the great divide is less a matter of race than social status. “In 1960,” he wrote last year, “just 2% of all white births were nonmarital. When we first started recording the education level of mothers in 1970, 6% of births to white women with no more than a high-school education … were out of wedlock. By 2008, 44% were nonmarital. Among college-educated … less than 6% of all births were out of wedlock as of 2008, up from 1% in 1970.”

In the short run, the decline of the traditional family causes an increase in dependency. 35% of American families now receive some form of welfare, that is, means-tested government aid. “In 2007, single-parent families were nearly six times more likely to be poor than married-parent families,” notes Heather MacDonald.

In the long run, lower birth rates translate into an unsustainable proportion of elderly dependents. On the current trend, there will be only two workers to support every Social Security recipient, against five workers in 1960; if fertility continues to decline the situation will be much worse. And if more children are raised in single-parent households, fewer will be fit for employment.

Why should the state have an interest in intimate personal relationships? Nowhere do the authors suggest that consenting adults should be prevented from forming whatever intense emotional bonds they please. But it is a fallacy to conflate the issue of freedom of sexual expression with the institution of marriage. The state has an interest in children, first of all because it has a responsibility to promote their welfare, and secondly because the common institutions of society have an interest in our common future. Marriage, the authors write,

is a bond of a special kind. It unites spouses in body as well as mind and heart, and it is especially apt for, and enriched by, procreation and family life. In light of both these facts, it alone objectively calls for commitments of permanence and exclusivity. Spouses vow their whole selves for their whole lives. This comprehensiveness puts the value of marriage in a class apart from the value of other relationships.

That is the conjugal view of marriage, in the authors’ definition. It is permanent and comprehensive, as opposed to an intense emotional bond, which may dissolve as quickly as it was formed. That may be convenient for lovers but catastrophic for their children.

Only the union of a man and woman can be comprehensive, the authors argue. The issue isn’t dignity, which all human beings deserve. Instead, the issue is what a married man and woman can do that no other human arrangement can do: “Marriage is ordered to family life because the act by which spouses make love also makes new life; one and the same act both seals a marriage and brings forth children. That is why marriage alone is the loving union of mind and body fulfilled by the procreation – and rearing – of whole new human beings.”

Across the ideological spectrum, researchers agree that “the family structure that helps children the most is a family headed by two biological parents in a low-conflict marriage. Children in single-parent families, children born to unmarried mothers, and children in stepfamilies or cohabiting relationships face higher risks of poorer outcomes,” as the research institution Child Trends concluded. And as Professor Bradford Wilcox of the University of Virginia’s National Marriage Project concluded, “The core message…is that the wealth of nations depends in no small part on the health of the family.”

Adoption by gay parents does not do as well: The authors present a wide range of research showing that “compared to children of parents at least one of whom had a gay or lesbian relationship, those reared by their married biological parents were found to have fared better on dozens of indicators”. Part of the reason that married biological parents do better may have to do with sexual exclusivity, which is virtually nonexistent in male homosexual relationships according to the standard research on the subject.

The state cannot help but take an interest, for it gets the bill for the damages when marriage breaks down. As George et al write, “Since a strong marriage culture is good for children, spouses, indeed our whole economy, and especially the poor, it also serves the cause of limited government. Most obviously, where marriages never form or easily break down, the state expands to fill the domestic vacuum by lawsuits to determine paternity, visitation rights, child support, and alimony.”

That is the fallacy of the libertarian argument in favor of absenting the state from all questions involving personal intimacy. Society can get along with a small government if it has strong private institutions: families, churches, charities, schools and volunteer associations. Among these the family has more weight than all the rest put together. The state, and above all a state that seeks self-limitation, needs the family to flourish.

Professor George, like his co-author Ryan Anderson, is a religious Catholic (I do not know Gergis’ beliefs). It is a particular strength of their book to propound a concept of marriage on the basis of nature and social benefit, with no recourse to the tenets of any religion. All of their well-reasoned arguments, nonetheless, will appeal almost exclusively to those who believe in traditional marriage for religious reasons. Why should this be the case?

Gergis, Anderson and George rightly argue that the two contending concepts of marriage stem from two quite different views of human nature. But it is just as possible to argue that two incompatible religious concepts are at issue. A useful formulation of the problem is found in the 1987 film Moonstruck:

Rose: Listen, Johnny, there’s a question I want to ask you. And I want you to tell me the truth if you can. Why do men chase women?

Johnny: Well. There’s the Bible story. God took a rib from Adam and made Eve. Maybe men chase women to get the rib back. When God took the rib, he left a hole there, place where there used to be something. And the women have that. Maybe a man isn’t complete as a man without a woman.

Rose: But why would a man need more than one woman?

Johnny: I don’t know. Maybe because he fears death.

[Rose leaps up, very excited.] Rose: That’s it! That’s the reason!
Note that Johnny begins with the argument from Natural Law, and then proceeds to the problem of mortality. Why do people fall in love in the first place? Because, as Johnny Cammareri suggests, we are everywhere and always haunted by the specter of mortality, and a certain kind of connection to another human being (or in this case beings) can intrude into our lives like a burst of eternity entering the temporal world. When we are in love, we are eternally in love; if we are separated by death, we know that we shall be reunited in heaven, or, alternately, we might wish to follow our dead beloved into the grave, like Richard Wagner’s silly sopranos.

If we place our love in the context of raising children who will continue our lives, within a faith community that we believe to be called by God to his eternal service, we feel assured of immortality: not only does our flesh continue, but it will continue in the spirit of a community whose love-relationship with God mirrors our feelings for our beloved. Such folk as this will take Professor George’s reasoning to heart.

It is not only conjugal love in the Judeo-Christian context that gives us the sense of immortality. Every kind of love does so, from the Temple prostitutes of ancient Mesopotamia to the heroines of Harlequin romances. That is what makes it love to begin with. It can be heterosexual, or not. Some of the best poetry of classical Greece and most of the love poetry of medieval Persia celebrated pederasty, in the narcissistic quest for eternal youth. Goethe’s Mephistopheles is overcome by lust for the cherubs who come to claim the soul of Faust at the end of his drama. “Now I know how you feel, unhappy lovers, when you twist your necks to gawk at your beloved! This is much pricklier than hellfire!”

Left to its own devices, love tends toward idolatry. In the bestselling novel of the 16th century, Fernando de Rojas’ La Celestina, the protagonist Calixto is so obsessed with the unattainable Melibea that, when asked his religion, he pronounces himself a “Melibeist.” Adolescents should be made to read Celestina instead of Shakespeare’s mawkish Romeo and Juliet. There would be fewer teen pregnancies.

Everyone who has loved anything more sentient than a cheeseburger is in some sense “spiritual”. A decade ago a third of respondents described themselves as “spiritual not religious,” which means that they explicitly rejected the tenets of any religion in favor of whatever they chose to invent for themselves. When Gallup in 1999 asked, “Do you think of spirituality more in a personal and individual sense or more in terms of organized religion and church doctrine?,” almost three quarters chose the “personal and individual” option. Most Americans spend their loves looking for eternity in all the wrong places, seeking personal relationships that will lift them out of this mortal coil while preserving their prerogative for infantile self-aggrandizement.

The reason that it is impossible carry on a rational conversation with gay marriage advocates is that they belong to an implacably hostile alternate religion. This new religion has armed itself with an Inquisition, ferocious as its predecessor. Say a word against gay marriage and you will be drummed out of polite society in most parts of the cultivated world. Fail to vituperate in favor gay marriage, and you will never get tenure at a major university.

Gergis, Anderson and George may not change many minds on the other side of the great divide, but their work is so well-crafted and well-reasoned that it will provoke apoplexy among their opponents. Defenders of gay marriage style themselves enlightened and reasonable; the present book proves they are nothing of the sort. If it will not convince the opposition, it exposes its irrationality. Perhaps that is as great a victory as the times afford.

Tayyip Erdogan’s Cave of Wonders

February 28th, 2013 - 6:12 pm

Prince Metternich, the architect of the Holy Alliance against France, is supposed to have said after hearing news of the death of his arch-rival, the devious French diplomat Talleyrand, “I wonder what he meant by that?” Metternich (if he really said it) mean it as a joke. The State Department will ask what Turkey’s Prime Minister Recep Tayyip Erdogan meant by his outburst yesterday that Zionism is “a crime against humanity.”

Erdogan, after all, has “bonds of trust” with Barack Obama. Last year Obama told Fareed Zakaria of Time magazine that the “friendships and the bonds of trust” that he forged with Erdogan (whom he named among five foreign leaders) is “precisely, or is a big part of, what has allowed us to execute effective diplomacy.” What could the president’s friend have meant by that? Erdogan said exactly what he believes. The Turkish leader is a holdover from the enchanted world of rural Anatolia, in which Jewish conspiracies swirl in the night air along with jinn and witches. That is not an exaggeration, but an objective report, as I will explain below. No-one should be surprised. Lunatics have run better countries than Turkey in living memory.

I wrote in my 2011 book How Civilizations Die (and Why Islam is Dying, Too):

There is bizarre edge to Tayyip Erdogan. He is given to lurid, sometimes bloodthirsty outbursts. During a February 2008 visit to Germany, Turkey’s most important European trading partner, Erdogan scandalized his hosts when he told an audience of 20,000 Turks that assimilation into German culture was “a crime against humanity.” Germany, after all, knows a thing or two about crimes against humanity. German opinion was outraged, and Turkey’s chances for membership in the European Community—a pillar of Turkish diplomacy for a generation—fell to negligible. Erdogan ignored the uproar, and told the Turkish Parliament upon his return to Ankara, “I repeat… assimilation is a crime against humanity . . . . We can think differently from (Chancellor Angela) Merkel about this, but that is my opinion.” The German attitude towards its Turkish minority has swung from multicultural outreach to pessimism about their future in German society. In October 2010, German Chancellor Angela Merkel told a gathering of her political party that Germany’s attempt to create a multicultural society has “utterly failed.” As press reports paraphrased her remarks, “Allowing people of different cultural backgrounds to live side by side without integrating has not worked in a country that is home to some four million Muslims.”

We obtain some insight into Erdogan’s warped view of the world by considering the leading ideologue of Turkish Islamism, Fethullah Gulen. I profiled him in a September 2010 Asia Times essay. He presides over a business empire worth tens of billions of dollars and a system of Islamist schools that stretches from Central Asia to charter schools in the United States. The Gulen organization took control of Turkey by infiltrating its security services in a patient march through the institutions over the past two decades. Gulen’s pan-Turkic mysticism views Turkey as the center of a new caliphate uniting the Muslim world. He preaches a “Turkish renaissance” with a modern spin “to ensure that religion and science go together and that science penetrates not only individual lives, but also social life.”

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All who love the Free World heard with sadness today’s news of the abdication of Pope Benedict XVI, whose physical infirmity caused him to step down from the chair of St. Peter. As the shepherd of the founding institution of the West, Benedict personally embodied its best traditions. He is one of the last men living to have assimilated the fullness of European culture, a member of the “heroic generation” of Catholic theologians that included Henri de Lubac and Hans Urs von Balthasar.

We will remember many acts of intellectual courage from this pope. One in particular comes to mind today, namely his speech at the University of Regensburg on September 12, 2006. In the face of great controversy, Benedict cited the Byzantine emperor Manuel II Paleologue: “Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached.” And he added:

The emperor, after having expressed himself so forcefully, goes on to explain in detail the reasons why spreading the faith through violence is something unreasonable. Violence is incompatible with the nature of God and the nature of the soul. “God,” he says, “is not pleased by blood—and not acting reasonably is contrary to God’s nature.” . . .The decisive statement in this argument against violent conversion is this: Not to act in accordance with reason is contrary to God’s nature. . . . The editor [of the Greek text from which Benedict is quoting], Theodore Khoury, observes: For the emperor, as a Byzantine shaped by Greek philosophy, this statement is self-­evident. But for Muslim teaching, God is absolutely transcendent. His will is not bound up with any of our categories, even that of rationality. Here Khoury quotes a work of the noted French Islamist R. Arnaldez, who points out that Ibn Hazm went so far as to state that God is not bound even by his own word, and that ­nothing would oblige him to reveal the truth to us. Were it God’s will, we would even have to practice ­idolatry.

Benedict’s commitment to theological truth as he understood it at the expense of political correctness is unique among today’s religious leaders.

Jewish communities in particular have reason for sadness at Benedict’s abdication. He is a true friend of the Jewish people. As Israeli journalist Assaf Sagiv wrote in the Autumn 2009 issue of the quarterly journal Azure on the occasion of the Pope’s May 2009 visit to Israel:

Benedict XVI—the former Joseph Ratzinger—is actually one of the best friends the Jewish people has ever had in Vatican City. On the eve of the pope’s visit, Aviad Kleinberg, a scholar of Christian history and a columnist for the Israeli daily Yediot Aharonot, attempted to remind his readers of this. Ratzinger, he explained, “was the confidant of Pope John Paul II, and his immense theological authority was a critical aspect of the previous pope’s moves…. John Paul and Ratzinger buried once and for all not only the accusation of the Jews’ murdering the messiah, but the entire theological theory that the Christians replaced the Jews and are now the Chosen People and that the New Testament annuls the Old Testament. The Old Testament is still valid, declared the two, and the Jewish people is still God’s chosen and beloved people.”

I wrote at the time on the website of the religious magazine First Things where I was then an editor:

Benedict’s unprecedented efforts to draw near to Judaism as a religion were summarized by the Bonn University theologian Karl-Heinz Menke, who argues that His Holiness is the first pope since St. Peter to read the whole of the Gospels as a Jewish work. From a theological standpoint, the Jewish people have had no better friend in the Vatican since the founding of Christianity.

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