Friday Feature Film- Anthony Bourdain: Parts Unknown (Singapore)

Prima facie, Singapore seems like an idyllic “Nanny State” nation, with the absence of the abject penury that we typically see under tyrannical regimes. However, is the veneer of safety and cleanliness worth relinquishing individual rights? If so, can such a society be sustainable long term? Can the state-sanctioned orderly nature of Singapore endure the trials and tribulations of the next century? Only time will tell, but to quote the Robert Frost poem, “Nothing Gold Can Stay”.

Bootleggers and Baptists-LVI: The War of the Wok

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Labor Unions have historically held anti-immigration and nationalistic sentiments on their platforms. This makes the fact Progressives romanticize organized labor somewhat puzzling, as both factions of political actors often have conflicting objectives. One example of the prevailing nativism in the labor movement was Cesar Chavez’s hostility towards immigrants; how contemporary liberals square this cognitive dissonance when they proudly proclaim they are “Pro-Labor” is beyond the veil of reason. It should not be shocking that labor unions were one of the driving forces in implementing anti-Chinese legislation in the early 20th Century. 

The article THE ‘WAR’ AGAINST” CHINESE RESTAURANTS, published in 2017 by Regulation Magazine, provides a historical example of the anti-Chinese sentiments of organized labor. In the early-1900s, the United States excluded Chinese immigrants from most spheres of economic life in the United States; since many jobs required licensing that was only available to U.S. Citizens (p.32). The growing communities of Chinese immigrants in cities like San Francisco were able to enter the food service industry and laundry services. Chinese restauranteurs succeeded in providing a quality and low-cost dining option; birthing the American love affair with chop-suey. This was not without resistance since these new exotic restaurants were siphoning away business from eateries owned and operated by native-born citizens. The American Federation of Labor affiliated, The Cooks’ and Waiters’ Union, was a staunch supporter of anti-Chinese legislation (p.33). Various food service unions boycotted Chinese Restaurants and advocated for laws to loosen their gripe on the restaurant industry.

After the boycotts failed to achieve the Union’s anti-competitive objectives, they decided to lean on the legislature’s pen to reclaim the market share lost by Caucasian restaurant proprietors. The unions had the perfect pretext for demanding regulation (p.13); that was the moral concern of white women. As detailed by Chin and Ormond:

“..Newspapers offered lurid reports that Chinese restaurants were fronts for opium dens, and that Chinese men used opium “as a trap for young girls.” The idea of white female victimization became a media trope. In 1899, King of the Opium Ring, by Charles E. Blaney and Charles A. Taylor, played at the Columbus Theater and the Academy of Music in New York. Later produced around the country, it featured a clown who rescues a young white woman from the balcony of a Chinese restaurant. Movies depicted similar scenes and renowned “realistic” artists painted Chinatown vistas… (p.34).

At the time, there was a profuse amount of propaganda suggesting that Chinese men would try to lure white women into their establishment and then take advantage of them. The upper-class habit of “slumming” made trips to Chinatown a popular destination. There remained a lingering fear that white women would be enticed by the food but would decline into exploitation and degeneracy. Organized labor capitalized on this perception of Chinese immigrants and utilized it to provide the pretext for creating laws that would derail the success of Sino-dining establishments. Most of these measures varied by state and municipality, the majority of these laws either restricting or barring white women from entering or being employed in Chinese restaurants (p. 34-37). The unions have since given up on these measures once Chinese restaurants no longer appeared to be a threat and have since moved on to other policy issues (p.37). This chapter in American history perfectly embodies the incentives and dynamics of Bruce Yandle’s Bootleggers and Baptists (1983) model of coalitions. Regardless of the veracity of the claims of Chinese men seducing white women, it is still a “moralistic” concern as it posits a normative motive for enacting such ordinances and state legislation. Some of the holy-rollers included missionaries who entered Chinese neighborhoods proselytizing Christianity, who purportedly witness this moral impropriety (p.34). It should be conspicuous who the Bootleggers are in this scenario, as a union in themselves are nothing more than glorified lobbyists whose pedigree of rent-seeking can be traced back to the medieval guilds.

Prisoner’s Dilemmas-IV: Having Sex with the Boss

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At the center of every social interaction is some variant of exchange. Whether it be friends trading pleasantries or vendors and clients exchanging money for goods; every social interaction is an exchange. For this very reason, it is perplexing how once money enters the picture the interaction has been ethically tainted. Surely, examples of bribery have many moral considerations to address. However, the disdain expressed for people who monetize a hobby is devoid of any justifiable logic.  In a sense, even the exchange of nonmonetary goods such as ideas and goodwill can be abstractly viewed as a form of commerce. Much like bartering goods and services, the trading of ideas tends to make people better off. Why should the exchange of ideas enjoy the moral high ground while trading tangible goods for money is treated with ethical inferiority? Odds are that will be a question for another day.

It should be noted that nonmonetary interpersonal exchange extends well beyond interchanging nontangible ideas.  It can also apply to displays of affection. One form of interpersonal exchange that seems to be most salient in the minds of people would be sexual intercourse. Outside of the deeply ingrained biological proclivity to crave sexual contact, such acts have been mystified by being shrouded in a mystique of societal taboo. Only serving to make anything about sex more alluring; sex being nothing more than “..forbidden fruit..”.  Especially when it is outside of the contexts in which is societal prescribed is being permissible. Irrespective of the context in which sexual intercourse takes place, if it is consensual, it is a form of exchange.

Even in instances where sexual relations are consensual, such interactions among co-workers operate in a moral grey area. Most Human Resource departments frown upon such conduct, but rather ever outright condemn it or impose disciplinary action. However, once the exchange is between various tiers of management and their subordinates any appeal to the morality of such an interaction becomes more dubious. Not fixate on equalitarian concerns, but there is an institutional asymmetry of power. An individual’s boss has quite a bit of authority over them. After all, having the power to sever someone from their ability to earn an income is a lot of power to wield. An individual’s boss can also influence the trajectory of one’s career. Introducing sex into the mix spells a recipe for calamity.

An hourly employee having a sexual relationship with their boss is a prime example of a prisoner’s dilemma. Ideally, both parties or either individual would decline to engage in any sexual conduct. As we all know the world, we live in is far from ideal. Even if it were to happen, to not allow the incident to influence any aspect of their professional lives. Again, humans are emotional creatures.  When David Hume described the servile relationship between people and their passions, he was correct. Unfortunately, such an incident cannot remain neutral, almost always bleeds into other the work life. Regardless of whether the exchange occurs on or off company property.

It would be in the best interest of both individuals to move on from their regrettable tryst (or chronic series of amorous activities). That would defy human nature, even if it would be the rational course of action.  There is the ill-fated inclination of people to weaponize such situations for their interests.  Falling into the categorical definition of a Prisoner’s Dilemma.  The manager could threaten to demote their subordinate or even fire them if they tell anyone about their affair. The same penalties could also be applied if the subordinate decides that they are no longer interested in continuing the sexual relationship. Reciprocally the subordinate could also fight fire with fire. Deciding to use the sexual encounter as a point of leverage for either reprisal or career advancement. Opting to seize this opportunity and continue this unethical relationship with their boss. Even in some cases using past encounters as the focal point of an extortion or blackmail attempt. Either individual using their past rendezvouses in a manner that will harm the other is an unquestionable noncooperative strategy. The key factors of lacking trust and the institutional/moral disapproval of such engagements are conducive to defection. If you can’t rely on the other to be cooperative and work in everyone’s mutual interest, you might as well save yourself.

Is Fractional Reserve Banking Ethical -Part IV: The Defense of Fractional Reserve Banking

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Part I: Click here.

Part II: Click here.

Part III: Click here.

It is quite clear at this point that followers of Austrian economics view Fractional Reserve Banking as nothing more than a Ponzi Scheme. However, proponents of the Free Banking School (arguably an outgrowth of the Austrian School) believe that this practice is legitimate providing there isn’t any government interference in banking. Even the uninitiated observer will admit that this contingency is a highly unrealistic one. In the modern era, banking continues to be a heavily regulated industry. Free Bankers may have a relatively cogent ethical argument from a theoretical standpoint. After all, it is the responsibility of a mentally competent adult to be aware of the terms of service for any product or service they choose to receive. Ignoring the fine is not an exculpatory factor. Either from a legal standpoint or from an ethical perspective. Also, to be conceptually consistent one should scrutinize multi-level marketing schemes. Such a business model mirrors similarities to Fractional Reserve Banking. Hence why opponents liken it to a Ponzi scheme or pyramid scam.

Argument #1: It Isn’t Fraud.

From the Free Banking perspective, Fractional Reserve Banking is not a fraud. If the banking establishment makes it clear that the services provided constitute Fractional Reserve Banking, then the arrangement is legitimate. This is because the terms of the contract were not violated (p. 87). It would be problematic to present your services as 100 percent reserve banking if it encompasses the practices of the Fractional Reserve System. Fraud would entail a misrepresentation of the bank’s services. 

Taking any measures to prohibit this system of banking is antithetical to the principle of individual freedom. Any such interference would  be obstructing an existing contract between consenting parties. Doing nothing more than disturbing the economic liberty of freedom of contract, which is a pillar of private property rights (p. 87). Individuals who oppose the practice find the freedom of contract argument to be farfetched as few patrons have a firm comprehension of what Fractional Reserve banking entails (p. 88). The naivete of the consumer does not sully the legitimacy of the arrangement. Even Murray Rothbard himself has stated that historically banks have rarely retained a 100 percent reserve system (p.88). Why? Most likely because the banks clients preferred a Fractional Reserve system. If customers prefer an interest payment on their savings versus a maintenance fee for warehousing, so be it (p.88). The market for banking services has responded accordingly.

Circling back to the issue of misrepresentation of services, even the hardline naysayers believe that such a banking system could be admissible under certain conditions. Most notably if there was the further elucidation of the specific details of fractional reserve services. A long-standing concern of economists such as Hans Hermann Hoppe and Walter Block being that such ambiguity makes the practice fraudulent. Creates categorical confusions between money and fiduciary media (p.20-28). Professor Block asserts that the redemption requirements need to be clarified to set aside the concerns of fraud (p. 89). Whereas Block’s counterpart Hoppe stresses that banking institutions should present a warning regarding the suspension of redemption. He analogizes this precautionary courtesy to an option clause. Unfortunately, this concern does not comport with the facts of history. As is evident by the Scottish period of Free-Banking in which specie payment was suspended for decades (p. 89-90).

Another argument that grapples with the question of whether FRB is fraudulent pertains to the ability of the banks to fulfill redemption obligations. Keeping low percentages of reserves on hand turns money redemption into a gamble. However, this concern is inconsequential. Historically even in the absence of government intervention few banks have failed to fulfill any redemption obligations to patrons (p.90). For one, solvent banks are not prone to bank runs. Even in the event, a solvent bank runs out of currency, they can issue an option clause to temporarily suspending redemption. Resolving the issue through contractual channels (p. 91).

Argument #2- The Concerns Over Third-Party Effects Are Not Substantial

The most salient third-party effect or “spill-over effect” confronting the practice of Fractional Reserve Banking is a decreased likelihood of successful redemption. Obviously, in a Fractional Reserve Banking system, the more money that is lent out the fewer reserves the bank will have on-hand. Resulting in adverse consequences for the individual demanding to withdraw money from their account. It should be noted that the depositor agrees to this argument upon opening a bank account. Therefore, by signing on the dotted line of the terms and services of the bank, they choose to assume the risk (p. 93). Despite the risks, bank patrons continue to bank with these institutions. Alone based upon the Rothbardian theory of Demonstrated Preference the individual bankers must benefit from this arrangement. After weighing the benefits concerning the costs (p.93). 

The spill-over effects of Fractional Reserve Banking are not solely confined to banking transactions. The practice has also been claimed to create other distortions throughout the economy. Through how loans are funded it compromises some say the credit structure is compromised. It should be noted that the risks are somewhat minimal. If anything it aides the economy by providing a larger stock of capital (p.94). The issue with this criticism is that much of the instability in the economy comes from the intervention of central banks and governments and not Fractional Reserve Banking. This form of banking is not prone to instability or “cylindrical over-expansion”(p.94). These claims underestimate the fact that the amount of “nominal money” issued offsets the “.. changes in the velocity of money..”. Fractional Reserve banking works to alleviate the disequilibrium and “ business cycle consequences”. Hoppe and the company also assert that any injection of fiduciary media will ultimately result in a business cycle. However, if the increase in fiduciary media is matched by demand a disequilibrium will not arise (p.101-103).

Argument #3: The Popularity of Fractional Reserve Banking.

The popularity of Fractional Reserve Banking is another factor to contend with. Banking customers have demonstrated their preference for FRB. Historically, few banks have remained a 100 percent reserve system. However, customers continued to do business with these institutions (p.95). Contributing to this popularity has been the incentive of banks paying interest on deposits versus requiring a warehousing fee (p.95). Banking patrons also held faith that their bank had sufficient funds to fulfill withdrawal demands. Bank runs were generally triggered by other factors signally insolvency to bank clients. Countries such as the United States with greater propensities towards bank insolvency tend to have many protective laws shielding the banks from market pressures (p.95-96). It should also be noted that back in the 1800s when banking legislation was being discussed in the press the banking system was openly described as a fractional reserve system (p.96). Not only fully informing the average constituent of the details of the Fractional Reserve system, even with this knowledge doing little to dampen its prevalence (p.96).

The use of Fractional Reserve Banking has never been compulsory. There has never been any laws or penalties compelling banking in the United States to levitate towards this specific banking system (p.97). Patrons voluntarily assume the risk of engaging in this variety of banking for the trade-off of being rewarded with an interest payment (p.97). The argument that clients are unwittingly tricked into patronizing an illusory form of banking is dismantled by the fact that banks compete for business. Nothing is stopping an enterprising individual from persuasively selling 100 percent reserve services (p.97).

Looking For Contributors


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Just letting everyone know that I am presently looking for contributors. Anyone interested in contributed content please contact me at  or respond in the comments section.


The criteria for submissions is relatively loose.  There are not any ideological prerequisites. In other words, you don’t have to agree with my views.


The only parameters are articles focused around: economics, philosophy, politics, logic, law, and social commentary.


Disclaimer: No conspiracy theories, please!!