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Eye-Opening Dispatches From Vietnam

After three long years of covid lockdown-induced solitary confinement, a loyal Liberty Itch subscriber cut loose, left Australia for South-East Asia and found herself in Vietnam.

Animated by what she saw, I started to receive her much-welcomed dispatches about daily life there.

Now, if you read any 1960s and 1970s history, you know Vietnam is communist. But what my friend’s streetscape dispatches reveal is that daily life is anything but centrally-controlled. In fact, what she witnessed felt more like the hustle and bustle of enterprise or, as our intrepid adventurer pithily described …

“official communism, sure,
yet with a je ne sais quoi libertarian, freewheeling spirit,
small-scale capitalist at every turn.”

I’ll step out of the way. These are her words …

There are no rules, Kenelm. It’s fend for yourself. Even these communists realise capitalism is the way to go. Free markets and small business. It feels like what I imagine 1880s London or 1980s Hong Kong to be. Free. Laissez faire. Taxes are low. 5%+ for residents. 20% flat tax for foreigners. The communists simply don’t have the money for bureaucrats. They’ve taken themselves out of the game and let people live their own lives.

There’s genuine economic development here. It’s booming.

There is little of government here to save you. You save yourself or drown, which isn’t an option.

So, family is very important. Your family takes care of you in your old age, not the government. You know, like we used to do in Australia.

Prices are so low.

Petrol is a mere 37 cents a litre. No fuel excise. Can you imagine?

Food is cheap.

At the end of a long, hard day, cocktails are $2.50.

Road rules? The only rule here appears to be there are no rules, almost anarchy. Yet it works. A loose framework exists where thousands stop on a red light. But only when it suits them. Lanes on the road? Only use those if you absolutely must.  It’s better to weave right, left, and even preferrable to pit your life against a semi-trailer coming from the opposite direction, because you absolutely must overtake the vehicle in front of you.

Pedestrian crossings? A mere piffle, an abstract idea where someone thought stripes of white paint were to beautify the road. The pedestrian who stands at one end expecting the traffic to stop for her, hah! She is the pedestrian who never returns home alive. As one local said to our observer, “If you don’t move, you’ll die. You need to move. Not too fast. Not too slow” … to which I replied, “Oh, you mean the Goldilocks effect”. The harrowed local muttered “Who is Goldilocks?” under his breath. Big tip! It’s best to wait for a small gap in the traffic. Walk whilst praying to God the entire time that He will see you safely to the other side.  

Footpaths? You know, for human feet? A figment of an idea, I tell you. They are just another lane for bikes to scoot down in the gridlocked peak hour traffic. Footpaths are places to park, to open your front gate, to wheel your dolly-trolly, to sell your wares for the day. All day and every day.  The pedestrians are after-thoughts.

Did I mention $3 Singapore Slings?

There aren’t suffocating regulations about, say, straws. Yes, you can get a decent plastic straw in Vietnam!

Communism, lurking in the background somewhere, OK. But the streetscape looks what I imagine laissez faire to be. It’s a rambunctious, rollicking, throbbing freedom, not that poor imitation back home. It’s every man for himself. As the saying goes, “It’s the quick or the dead” around here. Maybe that’s because the communists simply can’t make central planning work to feed people. Maybe they gave up that aspiration long ago. Everyday people her feed themselves and their families through good old-fashioned free trade.

This is what Australia is competing with! Enterprising, self-reliant people. Low prices. There’s a lot of manufacturing being exported. They value add. It’s not a big quarry like other economies we’re familiar with!

The West is on the precipice of losing something incredibly precious. 

In comparison to Vietnam,
we need to wrap society in cotton wool
and legislate for every possible scenario that might make us sick, kill or injure us.

We’ve left the realm of common sense, we’re stifled and soft-pruned by a socialist bubble bath. Individuals can no longer assess risk with any degree of rationality. Individuals are increasingly absolved of all self-responsibility and that power is being placed into the hands of faceless bureaucrats and legislators who make decisions on our behalf. It’s not needed. It’s not in our best interests. Vietnam proves it.

Remind my fellow Liberty Itch subscribers, as I often remind my friends, none of us are getting off this planet alive! We need to take back our autonomy, before it’s too late.

To all of which, I can only say to my friend, hear hear!

Talkin’ About My Generation (Part 1)

In his excellent Liberty Itch post Golden Years last week, Max Payne writes, “By the time today’s young people are finally ready (or allowed) to retire, they may find they face a double challenge. First, their superannuation funds might have been ransacked by previous generations; second, the availability of quality care may be limited due to the challenge of delivering high-standard care without a large tax-base – especially in times of slowing productivity.”

In their hit song My Generation, English rock band The Who – Pete Townshend on guitar, Roger Daltrey on vocals, John Entwistle on bass, and Keith Moon on drugs – err, I mean drums – sang, “…things they do look awful cold …. hope I die before I get old.”

It is reported that German economists are baffled by reports from Australia that rising house prices are deemed to be ‘good news’. In Germany, inflation in house prices – like inflation in energy prices or food prices – is considered to be just the opposite.

“How can it be good news?”, they ask, “when it takes two incomes to support a mortgage when previously young couples could buy a home and raise a family on one income? Or that homebuyers will pay many hundreds of thousands of dollars more in mortgage payments and government taxes and charges than would otherwise be the case?”

Why has housing become so expensive in Australia? Motor vehicles, whitegoods, kitchen appliances, widescreen TV sets, personal computers and mobile phones are consumed in abundance around the world, yet prices remain low. Why is a house, which like other manufactured goods is made from readily accessible components, so much more expensive than other consumer products?

No doubt demand stimulators like high immigration, low interest rates, capital gains concessions, negative gearing and first home buyer grants have increased demand for housing. However, increases in demand do not, of themselves, cause prices to rise. The exponential increases in demand for mobile phones, laptops and digital TVs did not lead to increases in their prices. In fact, the opposite occurred – prices fell – in some cases by more than half, due to increases in supply. The 1950s and ‘60s population explosion – the ‘baby boomer’ generation – likewise saw massive increases in demand for housing, yet house prices remained stable during that time because supply was able to keep up with demand.

So, what has gone wrong in recent years?

As most people know, over the past 20 years or so the actual cost of building a new house in Australia has roughly kept pace with inflation. Land prices, on the other hand, have skyrocketed.

By restricting the amount of land available on the urban fringe, state governments have sent the price of entry-level housing through the roof.

Land is the problem.

On the fringes of our cities there is more than an adequate supply of cheap, unzoned land.

Cheap land attracts not only home buyers but commercial interests as well, leading to more employment opportunities.

So why are houses and commercial developments not being built on this cheap land?

In short, manipulation of zoning laws.

(For Part 2, click https://libertyitch.com/2023/08/22/talkin-about-my-generation-part-2/)

Is Australia Becoming Untenable?

How does a country go from being highly investible to completely uninvestible? In many cases this seemingly happens overnight.

Prior to the Chávez administration, Venezuela was a highly investible country, with an economy that was the envy of their South American counterparts. Now, thanks to an unstable socialist government and unexpected legislative changes, no prudent investor would put their money anywhere near Venezuela. In finance, this concept is known as legislative risk.

AUSTRALIA: LEGISLATIVE RISK-OFF

In Australia, we have always prided ourselves on an economy that punches well above our geopolitical weight. Despite being a small and distant country, we have adopted a favourable attitude towards foreign investment and maintained an active foreign exchange market with minimal capital controls. This has earned Australia AAA credit ratings and favourable dispositions from international bodies and foreign investors – as well as local investors.

Simply put, legislative risk means we all must consider whether Australia is stable enough to be worth investing in – and not just financially.

However, I cannot help the feeling that things are starting to change. During Covid, it did not take long for Australia to revert to its isolationist ways. By slamming our borders shut and keeping them shut well beyond many other countries, we began destroying our service and education industries – Australia’s biggest exports outside of the mining industry. While tourists and students are slowly returning to our shores, other legislative risks are beginning to present themselves.

Tourists are slowly returning

LEGISLATIVE RISK BEYOND COVID

It is not just me that feels this way. Recently Binance, the biggest cryptocurrency exchange in the world, halted Australian-dollar deposits and withdrawals. It is evident their currency partner was simply unwilling to take on the growing risk of overburdening regulation in Australia’s financial sector. While Binance has assured Australian clients that Australian-dollar deposits and withdrawals will resume when they find a new partner, several months on they are all still searching. Is no one in the crypto space willing to touch Australia?

The danger of unexpected legislative change is a concept West Australian farmers are all too familiar with. While the WA Labor Government has backed down from requiring farmers and regional landholders to consult with indigenous communities regarding any changes they wish to make to their land or farming practices, more subversive versions of this legislation are on their way. Had the Voice to Parliament become a reality, this may have been something we all have to learn – and it may well still be via state and territory legislation.

Australian firearms owners and shooters have experienced legislative risk for decades, even if they were not aware of the term.

WHAT DOES IT ALL MEAN

Simply put, legislative risk means we all must consider whether Australia is stable enough to be worth investing in – and not just financially.

Is it worth pursuing higher education if the job you are studying for might be regulated out of existence?

… other legislative risks are beginning to present themselves.

Is it worth buying property in Australia, whether you’re a buying your first home or you’re a foreign investor, if you are not sure how long it’s going to be before you’re paying indigenous rent?

Is it worth starting an alternative media platform if you are not sure how long it will take until you are shut down and fined by the Ministry of Truth?

These are just some of the questions we all must ask ourselves before we start a business, pursue a degree or start a family in Australia. They are certainly questions I find myself asking more and more frequently.

The Right To Keep and Bear Cash

A libertarian friend called me at 6.30am last Tuesday whist I was riding the train to work. “How do you start a community bank?” he asked. My friend lives in rural NSW and as they say in the country, he is “jack” of the major banks. 

“The banks are closing one after the other and the ATMs are disappearing too. Which means cash is disappearing. We need to get our own bank around here”. 

This issue is fast becoming mainstream, reported in media outlets including the ABC, News, and Sky in the past seven days alone. 

Rural folk love their cash for practical reasons. Libertarians love it for ideological ones, which some might find ironic given many libertarians also advocate the end of fiat currency and its replacement with gold or crypto. 

But here is why libertarians hold cash dear: 

1. Financial Privacy
Cash transactions provide anonymity and privacy. You can do your business without a centralised authority monitoring your every move. Electronic payments can be tracked and monitored by banks, governments, or other third parties, potentially compromising your financial privacy. 

2. Vulnerability To Surveillance
Electronic payment systems create a digital trail of transactions, creating an incentive for governments and corporations to collect vast amounts of data on your purchasing habits, preferences, and of course personal information. 

Cash means you can do your business without a centralised authority monitoring your every move.

3. Government Tyranny
A shift toward electronic payments can give governments greater control over our financial activities. They can potentially freeze or confiscate funds, impose restrictions on transactions, or even manipulate the monetary system to suit their own interests. This would never happen, right? Ask the Canadian truckers or Nigel Farage. 

4. Vulnerability To Cyber Threats
Relying solely on electronic payments increases the risk of cyber attacks and fraud. Carrying cash comes with its own risks, sure, but cash can’t be hacked. Major corporations are getting hacked left and right. Who is safe? 

5. Exclusion of Marginalised Communities
Not everyone has access to electronic payment methods. Not all communities have the same infrastructure as large cities. Denying communities which rely on cash for their daily transactions is surely discriminatory. 


6. Dependency On Intermediaries
My economics professor used to say, “the more you cut up the cake, the more of it sticks to the knife”. Electronic payments typically require intermediaries, none of which provide their service for free. And for every intermediary in the transaction chain, there is another point of control and vulnerability as users become subject to the policies and regulations set by these intermediaries. Look what happened when Israel Folau tried to raise a ‘Go Fund Me’ for his legal fees. 

7. Limitations On Personal Choice
Cash provides individuals with a tangible and universally accepted form of payment that can be used freely and without restrictions. 

8. Infringement On Property Rights
Cash represents physical ownership. You hold it in your hand.  It’s yours. Property rights are infringed when you are forced to rely on electronic representations of money stored at the pleasure of others. 

9. Impact On Small Businesses
Cash transactions offer certain advantages to small businesses, reduced transaction costs and the ability to avoid credit card processing fees for a start. Denying small businesses the opportunity to trade in cash makes it harder for them to compete with their corporate counterparts. Libertarians believe in free markets, not markets distorted in this way.

Are ‘Community Banks’ the answer? Stay tuned.

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