Categories
Economics Politics & government

[2587] You shall not crucify mankind upon a cross of gold

I do not take hard currency idea seriously. Hard currency is a wacky idea. I generally think supporters of hard currency, gold standard advocates being the worst, as non-serious discussants of monetary policy. Hard currency is inflexible and it will exert unnecessary pain in time of crisis. If we had a hard currency all over the world during the last financial crisis, we would have easily experienced the worst depression in modern times. Worse than the 1930s Great Depression.

It would be worse because the world’s economy was so much bigger in the 2000s than it was in the 1930s and given real prices of commodities associated with hard currency, gold and silver specifically, the supply of hard currency could not accommodate the demand for money. The world’s economy would be much smaller than it was at every single point of modern history even without any crisis.

I am a libertarian but unlike too many libertarians, I prefer fiat money to gold standard. I have rationalized my position before.

On top of that, I am a monetarist because I understand the basic operations of modern monetary policy and its implications. I accept the lesson taught by Milton Friedman and Anna Schwartz: in times of crisis, expand the money supply. Under hard currency, the expansion is almost impossible while deflation, which as damaging to general welfare as hyperinflation is, is always a real threat.

Although I am generally reluctant to admit it, I do ultimately support previous quantitative easing exercises in the United States and other similar money supply expansion in other parts of the world. The fear of expansion is always about high rate of inflation but it is quite clear for the past few years that there is a considerable unmet demand for money that money supply expansion does not create any kind of noticeable damaging inflation. Until inflation becomes a credible threat, I will not oppose money supply expansion by too much.

In other words, I think Federal Reserve chairman Ben Bernanke has done a great job. Bernanke given his scholarship is the right man for the job.

So, I take it as a demerit when Mitt Romney said he would not reappoint Bernanke to the job if he is elected as the next President of the United States. And I take it as a huge downer for the Republicans to bow to unreasonable crowd that is the Tea Party and then push for gold standard.

This may force me to reassess my bias with respect to US politics.

I have a Republican bias just because of Republicans’ economic policy has typically been closer to my preference (notwithstanding the Clinton’s years that blurred the line; I do consider Clinton as the best President in recent times). At least, the rhetoric is. And I do think the selection of Ryan Paul as exciting. This election has catapulted libertarian understanding to the national front farther than Ron Paul has ever done.

But the contemporary Republican view on monetary policy might be too much for me.

There are many great economists within the Republican camp at the moment. It is the responsibility of these economists to advise the Republicans of the folly of gold standard.

Categories
Photography Travels

[2586] Angkor Wat from across the pond

Some rights reserved. Creative Commons 3.0. By Attribution. By Hafiz Noor Shams

Categories
History & heritage Photography Travels

[2585] Bayon, Angkor Thom

Angkor Thom was the capital of the Khmer Empire, which Bayon is located at the very center of it. Without any exaggeration, this was the heart of the Khmer Empire. At its peak, it was estimated that around a million persons lived here.

Some rights reserved. Creative Commons 3.0. By Attribution. By Hafiz Noor Shams

It was really an experience. Close to 1,000 years later, there I was, standing at the heart of the Khmer empire, aware of its wider importance to Southeast Asian history, all the way to Srivijaya and the Sailendras. It was at that time that I felt glad that I loved history.

Categories
Conflict & disaster History & heritage Politics & government Society Travels

[2584] Better commercialization than communism

Cambodia has a dark modern history and I always knew that. That knowledge did not bother me much previously because I did not really relate to it. Cambodia despite being so close to Malaysia appeared farther away from me than, for example, the United States where I spent my undergraduate years.

Cambodia was some land far away from my consciousness. Farish Noor once lamented that Malaysians knew more of New York, London and Paris than Jakarta, Bangkok and Manila. I am guilty of that.

My travels to Cambodia, specifically to its capital Phnom Penh, were my effort to turn his statement untrue. I started out in Siem Reap up north trying to relearn my Southeast Asian history. It was an adventure, going through and climbing all of the famous Angkor temples and more, and then getting lost in the obscure ones, which were no less impressive than Angkor Wat or Bayon. Only the fear of landmines prevented us from being too adventurous, on top of constraints involving time and money.

Warnings of landmines are a stark reminder of Cambodia’s dark past. Too many landmines were planted across the country by participants of the Cambodian civil war. While the war has long ended, efforts at clearing up the mines are still under way and there are new landmine victims every day. The past will not just go away quietly.

Even in the capital Phnom Penh, time passed slowly. I felt as if I was still living in colonial times during my stay there. French influences are remarkably strong still. There are many French tourists and expatriates even. It was as if they refused to leave in the first place.

That is understandable. The capital, located at the meeting of Tonle Sap and the fabled Mekong rivers, is beautiful. Rows of old buildings stand along the banks, providing a lively waterfront. If it wasn’t for the devastating civil war, Phnom Penh would have been one of the great cities of Southeast Asia.

The city was emptied during the communist Khmer Rouge regime. It is hard to imagine the beautiful Phnom Penh devoid of life but it was a ghost town in the 1970s, as were other towns in Cambodia in the same period.

The communist Khmer Rouge came to power in Cambodia in 1975. They had a terrible idea of equality and wanted to create a classless society. But more than that, they did it in a hurry. Their solution was to turn everybody into a peasant overnight.

To do so, they forcefully relocated urbanites to the countryside. There were no doctors, engineers and other professionals under the Khmer Rouge. All were peasants. Peasantry, in reality, was a euphemism for forced labor. Many realized that. Those who questioned the Khmer Rouge were tortured and killed. The intelligentsia were murdered to protect the communist revolution, before Pol Pot turned on the Khmer Rouge itself in the name of power and ideological purity later in the late 1970s.

The failure of China’s disastrous Great Leap Forward, which aimed at creating a communist society quickly, was unheeded. The Khmer Rouge thought they were a better implementer of communism than their Chinese counterparts.

Well, judging by the result, maybe they were. According to the World Bank, there were more than seven million individuals in Cambodia then. By the end of the Khmer Rouge regime, between two million and three million were dead according to the United Nations. That was a significant proportion of total Cambodian population.

Yet, statistics are just cold numbers. It is always hard to humanize numbers that run to the millions. Being in Cambodia gave me the chance to understand exactly those numbers.

I visited the Tuol Sleng museum while I was in Phnom Penh. The museum was formerly a school, which the Khmer Rouge turned into a prison and a torture house. The turning of a school into a prison more than symbolized what the Khmer Rouge and, really, what communism in practice is all about.

Despite the purpose of the museum to remind us all of the past, entering that museum felt like an act of trivializing history. It cost two US dollars to enter the museum. There was something sacred about the museum that I could not explain. Yet, here, like many places in Cambodia, history had been commercialized. Past pain has been repackaged as a product of tourism. It was about making money. It felt wrong.

As I was about to condemn the commercialization as a scam, what I saw inside prevented me from protesting after all.

The first building was where the last tortured prisoners were placed in, and died. There was an empty rusty metal bed frame in each cell, with photographs of the last victims hung on the wall by the curators. The photographs were not pretty. The photographs were shot by the invading Vietnamese army as the Khmer Rouge regime fell. The Vietnamese came too late to save anybody. They found only rotting bodies bound to metal beds in the torture house.

The next two buildings had even punishingly smaller cells. It was much smaller than my bed at home. Judging by the condition of the cells, one could imagine the impossibility of life during the time of the Khmer Rouge. It was a kind of environment that if I were put inside, I would die almost immediately out of sheer despair. Out of the thousands who passed through the gates of Tuol Sleng, only a few survived it. Most were destined for the infamous Killing Field located a number of miles outside of the city, if they were not killed here.

What made the visit to the museum unbearable for me were pictures of hundreds or thousands of victims pasted on countless boards. Many prisoners were clearly scared of things that were to come. One particular face was on the verge of crying. That particular image haunted me throughout the day.

I decided I could not stand it anymore after seeing all of the photographs. I could not explore the rest of the museum to make good of the two dollars. It was then that I made an emotional connection to Cambodia.

As I sat on a bench outside in the open space, disturbed at the capability of the Khmer Rouge to do what they did, I became angry. Just before I exited the building, I spotted some writing on the wall. A visitor had penned that no God would have let this happened. I understood that person.

I came to think of the two-dollar entry cost. During the communist rule, this would have been illegal. Commerce in general would have been illegal. There was only one profession in the name of equality. The peasantry produced for the benefit of the communist state. That policy of unreasonable equality produced famine and exacerbated the genocide perpetrated by the Khmer Rouge.

Only now are Cambodians coming out of the shadow. They are eager to do commerce and improve their lot, something that was not possible under the communist Khmer Rouge.

The two-dollar entry cost is only part of the effort to come out of the hole that communism created. If the commercialization of the dark past brings about a brighter future for Cambodians, then let it be. Nobody, foreigners the very least, has the right to condemn the commercialization.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved
First published in The Malaysian Insider on August 20 2012.

Categories
History & heritage Photography Travels

[2583] Phnom Bakheng

This is a temple called Phnom Bakheng. It is located on top of a hill and so, it does require, possibly, a 15-minute hike from the bottom.

Some rights reserved. Creative Commons 3.0. By Attribution. By Hafiz Noor Shams

Due to its altitude, a visitor has a good view of his surrounding. He can see Angkor Wat as well as an ancient reservoir.

As you can see, they are wooden structures raised to support some part of the temples. It is falling apart.

This particular temple was built in the 9th century when the Khmer empire moved it capital from Roulos, some 20 or 30 miles away from Siem Reap, to here.

And like most temples, Phnom Bakheng was built to replicate Mount Meru. The replication is less impressive than Angkor Wat, but Phnom Bakheng is still amazing. The view from the top is something to die for and Angkor Wat cannot match that.