-Caveat Lector-

from:
http://www.zolatimes.com/V3.38/pageone.html
<A HREF="http://www.zolatimes.com/V3.38/pageone.html">Laissez Faire City
Times - Volume 3 Issue 38</A>
-----
Laissez Faire City Times
September 27, 1999 - Volume 3, Issue 38
Editor & Chief: Emile Zola
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Globalization and Financial Privacy

a review by Lauren Bain


Richard W. Rahn, The End of Money and the Struggle for Financial Privacy
, Discovery Institute, Seattle, 1999, 223 pp.

Thomas L. Friedman, The Lexus and the Olive Tree: Understanding
Globalization, Farrar, Strauss and Giroux, New York, 1999, 394 pp.



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Thomas Friedman�s warmhearted tales and devotion to metaphor narrate the
steps to a kinder, gentler global village; but, in fact, his
storytelling outclasses his economics. How are we to experience his
subjective world�one rife with shallow distinctions between free markets
and regulated ones, one in which statist Newt Gingrich could be a
free-market icon, one in which we are implored to create world markets
and prosperity without perturbing any quaint cultural relics? Friedman
acknowledges that globalization is inevitable; further, he tells us that
markets are the motive force urging it on at terrible speed. But he also
says that governments can and must place conditions on these same
forces�or, he declares in another logical switchback�no globalization.

Is the Electronic Herd careening out of control, impelling a dynamic
world market to redefine life every moment according to subtle dictates
of market whims�or can we rein it in, regulate it, assign America to
take point, even stop it altogether if Friedman�s sister doesn�t like
her Jersey beefsteak tomatoes without cracks and bumps? He knows his
Golden Straitjacket will fit every producer nation eventually with a bit
of tailoring, but does he really see no difference between the rule of
law as it is worn in the United States and as it hangs on Singapore?

Friedman loves his planet, and his reader wants to love him for that.
But it�s difficult when he transmutes the Invisible Hand to an unseen
fist driving a herd of

electronic reindeer at warpspeed. He is a Lexus person, thrilled at a
global marketplace, and an olive tree person, in love with his community
that he maintains no chat room could replace. No, but how does he
suppose neighbors mobilize each other when the time comes to petition
city hall for that new road? E-mail, of course: the ultimate grassroots
weapon.

Friedman sees globalization creating a more open society�something of
which he evidently approves�but he frets over the lack of privacy that
instantaneous electronic commerce portends. Here he demonstrates a lack
of knowledge as well as faith in reasoning men�s urges to enhance their
privacy. Encryption evidently hasn�t settled into his lexicon.

If Friedman�s road sign is "GLOBALIZATION AHEAD: ASSUME CRASH
POSITIONS," Richard Rahn�s is "WELCOME TO PRIVACY PLANET. EARN WHAT YOU
KEEP, AND KEEP WHAT YOU EARN." The sun shines on Rahn�s world. The baht
no longer fakes out the dollar; currency is digitalized and, in fact, is
just another product of a free, private-sector market that is unamenable
to government regulation. Prosperity has so subsumed the globe that
governments have little to do, as borders become less likely to be
threatened, and the government has become a very small part of people�s
lives.

Dr. Rahn loves freedom and Mr. Friedman values safety. But both
economists sound the clarion call that globalization is brooking no
interference. While Friedman hopes that globalization will result in
American-style democratization of finance, technology and information
without disrupting cultural elements he believes are necessary for
wholesome community, Rahn reasons that governments won�t even get to
throw a punch before private currencies, encrypted commerce, and global
competition for citizenship itself declare a knock-out in the next round
between the public and private sectors.

Rahn sees government as intrusive�unless shrunk to fit the requirements
of citizens who desire privacy and liberty, while Friedman sees the
American government in particular as a benign breakwater restraining the
ruthless flux of capitalism. Friedman insists on installing safety nets
beneath a high-wire act already in progress, while Rahn realizes that
such nets would only burden liberty, privacy, and the relentless motion
underway--and anyway, commerce would simply go underground. Rahn is a
capitalist: he trusts the urge to prosper. Friedman seemingly regards
capitalism as a magnificent wild animal�wonderful, majestic, and
inherently dangerous.

Echoing Al Gore�s "we are on an irreversible trend toward democracy, but
that could change," Friedman suggests conflicting propositions�that
globalization is inexorable, but also that if it threatens to drown our
olive trees, we can stop it if we want to. Rahn�s response would likely
be, "Why would we want to? Unfettered private markets will bring all the
sunshine and rain an olive tree could want."

Rahn is not dismissive of personal values and sentiments. Inhabiting his
footnotes are acutely touching stories, such as one involving a Jewish
artist who entrusted his valuables to a Swiss friend who, under penalty
of death had his actions been detected, concealed them from the Nazis by
wrapping them in oilcloth and burying them beneath his garden. The right
to one�s own property without fear of unjust forfeiture is a recurring
theme in his Libertarian world view. Law abiding people are entitled to
absolute privacy and uncompromised ownership of their property.

And to secure these rights, encryption is essential; we need
increasingly complex algorithms to do it, and government has no right to
the keys. As state-shopping evolves as an option for citizens concerned
with guarding their privacy and property, the focus shifts to how
governments will compete for citizens in the new marketplace�an idea
that would doubtless uproot a lot of Friedman�s olive trees.

The Lexus and the Olive Tree is worth its weight in anecdotes about
international relations that affect global markets. There�s a bit of
whining and pleading to stop and smell the olive blossoms. The End of
Money is fearless and fast-lane�a starship owner�s manual that braces
the reader for impact with a future that exhorts us ultimately to secure
and enjoy the blessings and responsibilities of true freedom.



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Lauren Bain ([EMAIL PROTECTED]) is a Seattle-area attorney, Libertarian,
and a columnist/book reviewer for the Association of Objectivist
Businessmen News.

-30-

from The Laissez Faire City Times, Vol 3, No 38, September 27, 1999
------------------------------------------------------------------------
Published by
Laissez Faire City Netcasting Group, Inc.
Copyright 1998 - Trademark Registered with LFC Public Registrar
All Rights Reserved
-----
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
Omnia Bona Bonis,
All My Relations.
Adieu, Adios, Aloha.
Amen.
Roads End
Kris

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