Could Egypt be the grave of Statism?

It’s not like Socialism has a monopoly on horrifying unintended consequences. In fact, human history teaches something far bleaker:  every formalized system of government we’ve created has been perfectly capable of facilitating mass murder, class warfare and repressive regimes.   – Justin Boland, “The Revelation of the Method(Skilluminati Research; Nov. 27, 2010)

Here is an excellent video by Stefan Molyneux, the host of Freedomain Radio:

Powerful ideas for all lovers of personal and political freedom – Freedomain Radio is the largest and most popular philosophy show on the web, and was a Top 10 Finalist in the 2007, 2008 and 2009 Podcast Awards. Topics range from politics to philosophy to science to economics to relationships to atheism – and how to achieve real freedom in your life today. Passionate, articulate, funny and irreverent, Freedomain Radio shines a bold light on old topics, and invents a few new ones to boot!

I like what I’ve seen so far.  Have a look and enjoy!


Wake up and smell the Kefaya.



Hmm..   Check out this article over at Breitbart:

World food prices hit record high: UN agency

(Feb 3 08:14 AM US/Eastern)

World food prices reached their highest level ever recorded in January and are set to keep rising for months, the UN food agency said on Thursday, warning that the hardest-hit countries could face turmoil.Rising food prices have been cited among the driving forces behind recent popular revolts in north Africa, including the uprising in Egypt and the toppling of Tunisia’s long-time president Zine El Abidine Ben Ali.

And in its latest survey, the Food and Agriculture Organisation said its index which monitors monthly price changes for a variety of staples averaged 231 points in January — the highest level since records began in 1990.


Dylan Ratigan and Bill Fleckenstein put 2 and 2 together and show that high food prices are correlated with social unrest in the Arab world .. just so Bernanke and Co. can paper over  the GIGANTIC fraud perpetrated by the very large banks:

Tyler Durden of Zero Hedge had this to add:

For over a year now, Zero Hedge has been predicting that in its foolhardy attempt of “inflation or bust”, the Fed’s actions would sooner or later lead to mass rioting and possible revolutions as a result of surging and out of control food prices (which are just the peak of the alternative investment pyramid – yes, stunningly free money can go into other things besides stocks).

The problem is that these same people do not realize that to Bernanke (whom we have referred Genocide Ben for precisely this reason) there is no other alternative, and inflation must be achieved no matter how terrible the social cost, or the damage to the monetary system. Regardless, the actions in North Africa are just the start. Commodities will run up far higher, and discontent will sooner or later reach to Asia, and possibly to countries which have nuclear arsenals at their disposal. What happens then is anyone guess.

Oh and there is this fact, which Karl Denninger is good enough to remind us of:

The Egyptian Pound (EGP) has been pegged to the dollar on an effective basis since 2005.

Their compound inflation rate over the last three years is 45%.

That is, the cost of living has risen 45%.

Their per-capita GDP is 1/17th of ours, and hasn’t materially expanded during that time.

Our per-capita GDP is $47,000, which is quite close to median household income (right near $50k.)

Their per-capita GDP is $2,700 (both from the CIA World Factbook.)

Would you like to run the numbers on what a 45% increase in the CPI would do to someone living here with a $2,700 per-capita domestic output (which likely closely approximates household income there too)?

That person would starve…. and maybe riot, eh?



Will Egypt’s Revolution be Sacrificed by Modern Day Bourbons?: Salim Mansur’s Moving Letter.

I am more convinced now, as I wasn’t when Paul Kennedy wrote about the rise and fall of great powers, that the West has gone over the tipping point in its terminal decline. That intelligent people, or people who claim to be intelligent, (I have in mind the talking heads in the U.S. media such as Chris Matthews or Fareed Zakaria) cannot make the difference between the sham of the Muslim Brotherhood talking about freedom and democracy and the generic thirst in man to be free. These are the people who have like the Bourbons learned nothing and forgotten nothing. They are glibly about to put the Lenins of our time into trains heading for Moscows of our time, they find nothing odd that they are pushing for the Muslim Brotherhood to be taken into governing when everything needs to be done to keep the Muslim Brotherhood out even as one carefully negotiate the long historic transition of Arab societies from tribal autorcracy and military dictatorships to representative rule and constitutionally limited government.

h/t: Instapundit

For a dose of GET REAL, have a listen to this lady:


Hope and Change in Egypt: Mubarek’s NDP and Authoritarian Socialism

When studying the imagination of crowds we saw that it is particularly open to the impressions produced by images.  These images do not always lie ready to hand, but it is possible to evoke them by the judicious employment of words and formulas.  Handled with art, they possess in sober truth the mysterious power formerly attributed to them by the adepts of magic.  They cause tempests, which in turn they are capable of stilling.  A pyramid far loftier than that of old Cheops could be raised merely with the bones of men who have been victims of the power of words and formulas.   –  Gustave Le Bon, The Crowd

Yesterday, in my post “Upheaval in Egypt:  Apparent causes .. and real causes.“, I wondered out loud “ if the mustering of a ‘pro-Mubarek’ group to counter the protestors is an indication of something deeper and more profound.  Could it also be composed of people (some but certainly not all), who are fighting back to save their very history, their support for Mubarek merely incidental?“.  It is a reasonable conjecture, given Islam’s long history of vandalizing important pieces of world heritage.  But, when it comes to Egypt .. right now ..  is it true?  Which side is more interested in a revitalized Egypt which values its’ heritage and enjoys true freedom?  It can’t be as simple as saying the the pro-democracy forces are led by Islamists and the protectors of Egypt’s heritage are the ruling, autocratic regime.  Enough has been said elsewhere about the Muslim Brotherhood.  What we need to understand is who Mubarek’s loyalists are and what the ruling party, the NDP (National Democratic Party), stands for.  The answer might surprise you.

Hope and Change

Let me know if any of this sounds familiar …

What are the key features of the NDP’s platform for the 2010 parliamentary elections? What is the party’s agenda for the next legislative term?

The NDP aims, in a brief summary of its platform, to pursue the process of comprehensive community change in all its economic, political, social and cultural dimensions. Change has started but is not over yet. In addition to promoting the living standards and the quality of life of the majority of Egyptians, the party seeks to improve the quality of public services, such as education, health, housing, and facilities.

A key characteristic of the NDP’s platform is that it shies away from generalities in favor of binding pledges, such as curbing poverty or attracting more investments into Egypt. Other commitments are related to health care and education. In addition, the platform allocates specific financial resources to ensure that each pledge is honored. Therefore, the platform is ambitious and takes on political, economic and social dimensions. It also sets specific goals and unveils its funding sources.

(Interview with Ali Eddin Hilal, Media Secretary of the NDP,

Change.  Community.  Curbing poverty.  Commitment to health care and education.

You see, ladies and gentlemen, the National Democratic Party that controls Egypt, the party of the state police and the party of Mubarek and his thugs is .. you guessed it .. an authoritarian SOCIALIST party.  Take a close look at this document:

Mubarek’s NDP was, until very recently, a member in good standing of Socialist International.  Didn’t hear that on CNN did you?  The thugs that beat up Anderson Cooper were socialist henchmen.   As Richard J. Little writes in American Thinker (Egypt’s Real Problem:  Decades of Authoritarian Socialist Rule; February 3, 2011):

Nasser’s immediate successor, Anwar Sadat, further built upon this state-controlled socialist political and economic system by forming the National Democratic Party, which is the current Egyptian ruling party.  The National Democratic Party has been a member in good standing in the Socialist International right up until this present week (January 31, in fact, when, to save political face, it became politically necessary to expel them).

The Socialist International may want to hide this fact, but the plain truth is that Mubarak and his political predecessors had the unlimited power and pursued for many decades exactly the same type of top-down, expert-devised, and centralized government-run collectivist development and investment programs of the type that are now proposed by progressives in this country and by socialists around world.  And the results, or lack thereof, of fifty-plus years of authoritarian socialist policy in Egypt were the same as in every other nation (like the old Soviet Union, Eastern Europe, China) that has experimented with similar economic and political systems: poverty, political repression, institutionalized government corruption, and ultimately, social chaos.





2010: The Gryphon’s Edge in review. Thanks everyone!

I’d like to thank everyone who visited The Gryphon’s Edge in 2010 for their support.  I was extremely pleased with the insightful comments that I received on some of the articles that I posted and I’m thankful for the thoughtful readers who dropped by.  Thanks, also, to WordPress for offering us this wonderful platform so we can share ideas and make connections.  Happy New Year and best of wishes to all of my readers out there!    –  Greg Hindbo



The stats helper monkeys at mulled over how this blog did in 2010, and here’s a high level summary of its overall blog health:

Healthy blog!

The Blog-Health-o-Meter™ reads This blog is doing awesome!.

Crunchy numbers

Featured image

A Boeing 747-400 passenger jet can hold 416 passengers. This blog was viewed about 1,600 times in 2010. That’s about 4 full 747s.

In 2010, there were 70 new posts, growing the total archive of this blog to 150 posts. There were 67 pictures uploaded, taking up a total of 11mb. That’s about a picture per week.

The busiest day of the year was September 18th with 30 views. The most popular post that day was Karl Denninger – one of the few WHO GETS IT: “The Thorium Fuel Cycle (liquid salt reactors) is the obvious way forward.”.

Where did they come from?

The top referring sites in 2010 were,,,, and

Some visitors came searching, mostly for let us go forward together, the gryphon’s edge, winston churchill, ralph juergens, and winston churchill let us go forward together.

Attractions in 2010

These are the posts and pages that got the most views in 2010.


Karl Denninger – one of the few WHO GETS IT: “The Thorium Fuel Cycle (liquid salt reactors) is the obvious way forward.” September 2010


“Let Us Go Forward Together.” August 2010


Is the word finally getting out there? Doctors are curing cancer with megadoses of Vitamin C. August 2010


About August 2009
1 comment


Ralph Juergens: Hero. October 2010

Finally: SEC Charges Goldman with fraud.

Here’s what the SEC alleges (you can find this over at Zero Hedge):

The SEC alleges that one of the world’s largest hedge funds, Paulson & Co., paid Goldman Sachs to structure a transaction in which Paulson & Co. could take short positions against mortgage securities chosen by Paulson & Co. based on a belief that the securities would experience credit events.

According to the SEC’s complaint, filed in U.S. District Court for the Southern District of New York, the marketing materials for the CDO known as ABACUS 2007-AC1 (ABACUS) all represented that the RMBS portfolio underlying the CDO was selected by ACA Management LLC (ACA), a third party with expertise in analyzing credit risk in RMBS. The SEC alleges that undisclosed in the marketing materials and unbeknownst to investors, the Paulson & Co. hedge fund, which was poised to benefit if the RMBS defaulted, played a significant role in selecting which RMBS should make up the portfolio.

The SEC’s complaint alleges that after participating in the portfolio selection, Paulson & Co. effectively shorted the RMBS portfolio it helped select by entering into credit default swaps (CDS) with Goldman Sachs to buy protection on specific layers of the ABACUS capital structure. Given that financial short interest, Paulson & Co. had an economic incentive to select RMBS that it expected to experience credit events in the near future. Goldman Sachs did not disclose Paulson & Co.’s short position or its role in the collateral selection process in the term sheet, flip book, offering memorandum, or other marketing materials provided to investors.

The SEC alleges that Goldman Sachs Vice President Fabrice Tourre was principally responsible for ABACUS 2007-AC1. Tourre structured the transaction, prepared the marketing materials, and communicated directly with investors. Tourre allegedly knew of Paulson & Co.’s undisclosed short interest and role in the collateral selection process. In addition, he misled ACA into believing that Paulson & Co. invested approximately $200 million in the equity of ABACUS, indicating that Paulson & Co.’s interests in the collateral selection process were closely aligned with ACA’s interests. In reality, however, their interests were sharply conflicting.

According to the SEC’s complaint, the deal closed on April 26, 2007, and Paulson & Co. paid Goldman Sachs approximately $15 million for structuring and marketing ABACUS. By Oct. 24, 2007, 83 percent of the RMBS in the ABACUS portfolio had been downgraded and 17 percent were on negative watch. By Jan. 29, 2008, 99 percent of the portfolio had been downgraded.

Investors in the liabilities of ABACUS are alleged to have lost more than $1 billion.

The SEC’s complaint charges Goldman Sachs and Tourre with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5. The Commission seeks injunctive relief, disgorgement of profits, prejudgment interest, and financial penalties.

Dylan Ratigan does a great job explaining the con:

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LBMA Bullion Market Ponzi Scheme

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