Archive for 2008

Duh

A reader pointed me to this article about a really amazing piece of government science:

A strong and deadly
earthquake is virtually certain to strike on one of California's major
seismic faults within the next 30 years, scientists said Monday in the
first official forecast of statewide earthquake probabilities.

They calculated the probability at more than 99 percent that one or
more of the major faults in the state will rupture and trigger a quake
with a magnitude of at least 6.7.

Uh, okay.  Next up:  California demonstrates more than a 99% chance that I will be dead in 100 years.  I would also give them the false precision award:

An even more damaging quake with
a magnitude of 7.5 or larger, the earthquake scientists said, is at
least 46 percent likely to hit on one of California's active fault
systems within the next three decades.

Are they really sure that its not 46.1%?

"The report's details should
prove invaluable for city planners, building code designers, and home
and business owners who can use the information to improve public
safety and mitigate damage before the next destructive earthquake
occurs," said geophysicist Ned Field of the Geological Survey, who
headed the Working Group on California Earthquake Probabilities, which
developed the forecasts.

Really?  How?  They should have given me the money and I would have written a two sentence report:  "You are going to have an earthquake in the future -- duh, its California.  Plan for it."

Update: A reader notes that this was funded by some insurance companies or trade group, and the whole point is the unspoken message "insurance rates are going up."  You guys are so cynical.

America's Worst Sheriff

I am working on a longer post on Sheriff Joe Arpaio's sweeps through Hispanic neighborhoods to round up the usual suspects (Mayor Phil Gordon has asked the feds to investigate these practices, which I hope they will do).

But this one is just weird.  Apparently Phoenix tax money is being used by Arpaio to train Honduran police, in a program that makes sense (from a Phoenix point of view) to no one.  Sheriff Joe watchers will enjoy his numerous nonsensical explanations, though the last one probably is the correct one.  For those outside of Phoenix, sit back and enjoy the weirdness -- its the only consolation we here in Arizona get for having the worst and most abusive sheriff in the country.

Explanation One:  Arpaio looks to small Latin American countries as models for his police force

Sheriff's officials told the county Board of Supervisors that the
Honduran National Police possess the "intelligence data, knowledge and
cultural experiences to benefit the Maricopa County Sheriff's Office."

Explanation Two:  We can't tell you, because it would endanger Sheriffs' lives (this is an Arpaio oldie but goodie):

discussing efforts in Honduras could endanger the lives of law-enforcement officers in both countries....revealing details could put lives at risk

Explanation Three:  Honduras supplied millions of photos for Arpaio's facial recognition software (yeah, I know non-Phoenicians, this is weird)

The sheriff's facial-recognition software program is supposed to be among the biggest beneficiaries of the Honduras engagement....When Arpaio was first confronted about the department's trips to
Honduras, he said the agency had received "millions" of photos from
Honduran officials.

Explanation Four:  Its a RICO thing, so we can't tell you (at least, it uses RICO funds)

The agency has spent more than $120,000 on Sheriff's Office employee
salaries in Honduras, and an additional $30,000 in RICO funds seized
from criminals. And some of the trips occurred during a time period
where the Sheriff's Office overspent its overtime budget by nearly $1
million.

Explanation Five:  We can't talk about it, because that would open up public officials to scrutiny for their actions:

The Sheriff's Office will not grant interviews to explain how and why
the program was started and what the benefits are to Maricopa County,
because officials say discussing the program fuels criticism

On Honest Engineering Discourse

TJIC links to this great story about the engineer for the Citicorp building who realized, after the building was erected and occupied, that he had made a mistake that could make the building unsafe in high wind loads.  He raised his hand, called a penalty stroke on himself, and got the thing fixed when many others might have rationalized away taking action.  Fortunately, he was respected for doing so:

Before the city officials left,
they commended LeMessurier for his courage and candor, and expressed a
desire to be kept informed as the repair work progressed. Given the urgency
of the situation, that was all they could reasonably do. "It wasn't a case
of 'We caught you, you skunk,'" Nusbaum says. "It started with a guy who
stood up and said, 'I got a problem, I made the problem, let's fix the
problem.' If you're gonna kill a guy like LeMessurier, why should anybody
ever talk?"

I continue to worry, though, that we are actively aligning incentives against having a quality, open engineering dialog.  In any engineering discussion, I don't think there has been a good safety dialog unless someone takes the position that the design (or drug, or whatever) is still unsafe.  Someone needs to advocate the position that the plan is unsafe even if that position is a straw man.  An open process encourages everyone to raise potential issues, even if these issues turn out not to be problems.

Unfortunately, in court, the very existance of such a discussion is used as evidence of liability.  Plaintiff's lawyers wave internal memos at juries showing them that concern existed about safety.  The very healthy definition of a good safety engineering process - a concern and discussion about safety - is turned into evidence of its lack.  More here.

You've done worse than let Haldeman slip away: you've got people feeling sorry for him. I didn't think that was possible.

I would never have thought it possible to position Hillary Clinton as the down-to-earth joe sixpack candidate, but somehow Obama managed it.

Post title from here.

The End is Near

For at least the last thousand years, western society has always had a hard core of doom-sayers who like to climb to the rooftops to shout that the end of the world is close at hand.  I am not a good enough student of history to know if this is a predictably human trait, or if it is uniquely tied to western religions like Christianity.  Certainly the Medieval millenarian streak was tied closely to the prophesies of Christianity.

Whether initially Christian or not, end-of-the-worldism is now the provenance of many fringe secular groups, not the least of which are the environmentalists.  In fact, the current global warming panic fits right into a long history of end-of-the-worldism, though I also think it has strong elements of socialism and youth culture guilt and lacks the optimism of Christian millenarianism.

Today's humorous does of doom comes right here from Arizona, via professor Guy McPherson of the University of Arizona.  Incredibly, our local media treats this interview straight up, without even the snark they would bring to, say, the article they wrote about me and other local climate skeptics.

First, let me explain Empire: We exploit humans and resources, often
with extreme violence, to provide Americans with indulgences beyond
belief to most people.

Had we started the project of powering down at least 30 years ago,
there might still be time. At this point, I cannot imagine any steps
that could allow us to avoid a meltdown of the economy or a relatively
rapid transition into the post-industrial Stone Age. We depend on
abundant, inexpensive oil for delivery of food, water, shelter, and
health care. The days of abundant, inexpensive oil are behind us. The
American Empire will soon run its course.

I am hopeful we can save a few tens of millions of Americans. But
we will need to make massive changes in our entire way of life,
starting immediately. We must abandon the project of globalization and
its attendant indulgences, for example, and focus on saving lives.

Yes, oil production will indeed peak at some point, and may even be peaking now (though I doubt it).  But the rest of this is just ignorant. 

Rewriting History

I was watching the History Channel last night and watching a show on the nuclear arms race.  Interestingly, they described the abortive Bay of Pigs invasion of Cuba as happening before JFK took office, and then discussed the Cuban Missile Crisis as JFK's first interaction with Russia.  I find this to be really odd revisionism, and if it were not for Coyote's Law, I would ascribe this to the ongoing Kennedy family effort to polish JFK's historical legacy.  But, having written Coyote's Law, I will just assume the show's producers were ignorant.

Update: I take the point that the Bay of Pigs invasion was a CIA plan in the Eisenhower presidency.  However, JFK was deeply involved in the planning and decision to go ahead, and in fact he and his advisers actually modified the plan, including the invasion site, in ways that hurt the probability of success (if there ever was any).

Obama's Campaign Against Individualism

I am becoming convinced that the frequent discussion of "diversity" among the leftish elite is really a mask for the fact that true diversity is in fact what they want to avoid.  By defining diversity along the least meaningful lines - e.g. skin color and type of genitalia - they mask the fact that what leftish technocrats hate the most is variation in thought.  After all, why have we been spending all that money on government schools all these years if it wasn't to generate such conformity? 

Michael Young sees Obama's recent anti-flyover-country snobbery in the same light:

While Obama is indeed engaging in spin, there is a far more
disturbing aspect to his interpretation. He misses the essential nature
of modern culture. People don't end up focusing on issues like the
right to bear arms, gay marriage, faith-based and family-based issues,
and the like, because of bitterness against Washington or a sense that
they can't effect change there. People focus on these issues because
modern American political culture is, effectively, about subcultures,
variety, pursuing parochial aims, and shaping one's identity and
personal agendas independently of the state. 

What Obama
implicitly regards (in both his statements) as signs of disintegration,
as reflections of popular frustration, are in fact examples of a
thriving culture. Exceptions to this, of course, are anti-immigration
sentiment and bigoted protectionism, both of which Obama conveniently
dropped in his Indiana comments. Yet Obama's approach betrays a very
suffocating vision of the state as the be-all and end-all of
political-cultural behavior. Outside the confines of the state there is
no salvation, only resentment. This is nonsense, but it also partly
explains why Obama is so admired among educated liberals, who still
view the state as the main medium of American providence.

Progressives Support Markets?

It may really be a new era, when markets rather than command-and-control government allocations and restrictions are advocated by progressives to allocate scarce resources.  In this case, the argument is especially surprising, since it is arguing for more open water markets.  For some reason, water is the last place anyone seems to want to apply pricing signals, something I have written on many times.

There are clear gains from having an active market in water rights. It
would help solve the problems posed by current water shortages in the
West, and it would provide the flexibility necessary to confront the
impact of climate change on water supplies in the coming decades. It
would be, in a word, fluid.

Senior Government Official Using His Position to Presure Textbook Publishers

Anthony Watt has an interesting story of a senior NASA official using his government position to pressure textbook manufacturers to change their books to reflect his view of the world.

Dumbest Thing I Have Read Today

I agree with Kevin Drum, this is the dumbest thing I have read today:

There is a solution to the rising cost of oil, but it is a painful
one. Let's say there is a lot of $20-a-barrel oil in the world "”
deep-sea oil, Canadian tar sands. But who would look for $20-a-barrel
oil if someone else (Saudi Arabia) has lots of $5-a-barrel oil? The
answer is: no one.

Basically, American taxpayers have to guarantee potential producers
that the price in the future will not fall below $20 a barrel and that
they will not lose their investments.

This is easy to do. The U.S. needs to guarantee that it will buy all
of its oil at $20 a barrel before buying anything from OPEC. This
forces the price of oil down to $20 a barrel, but it eliminates the
possibility that it will ever go back to $5 a barrel.

The implication that no one will add capacity if there is anyone at all to the left of them on the supply curve is just silly, and defies history in any number of industries, including oil.  By this argument, no one would be building super-deep water oil platforms today.  The reason there is not more oil exploration today in certain areas of North America is that there are formal and informal government restrictions that make it hard and/or impossible.  And to the extent that oil companies are treating current oil prices as a bubble that will inevitably fall, all I can say is, bring it on. 

McCain Believes in Nothing

I am increasingly convinced that John McCain believes in nothing, or at least believes in nothing strong enough that he can't turn a 180 on the issue if the polling numbers move the meter hard enough

The plan would retire old
loans that homeowners no longer can pay and replace them with less
expensive, 30-year, fixed-rate mortgages that are federally guaranteed.
McCain said families would gain "the opportunity to trade a burdensome
mortgage for a manageable loan that reflects the market value of their
home."

In line with
his concern about bailing out speculators, McCain's proposal would
apply only to homeowners who took out sub-prime mortgages after 2005
for homes that are their main residence. They would need to have proved
they were credit-worthy at the time of the loan.

I hope everyone else is enjoying the notion of "sub-prime mortgages" where the borrowers were "credit-worthy at the time of the loan." 

If You Had Plans for the Property, You Should Have Bought It

Don't buy property in Paradise Valley (a suburb of Phoenix, near Scottsdale) if you actually expect the property to be fully your own.  Even the smallest revisions of your home can require multiple appearances in front of the town council.  By some odd statistical anomaly, property owners with friends in the city government seem to get these changes approved more readily than those without such influence. 

Anyway, things just get worse if you own a lot of land in PV

A residents group is preparing to launch a voter referendum against the
planned Ritz-Carlton, Paradise Valley Resort, claiming the project's
residences are too dense....

Scottsdale-based Five Star Development wants to build a 225-room resort
hotel, 15 1-acre home sites, 46 luxury detached homes and 100 patio
homes on about 105 acres northwest of Scottsdale Road and Lincoln Drive.

This really isn't very high density, but this can be a very flaky town.  One thing you have to realize is that I can't remember the last new home I saw go up in PV that was less than 5000 sq ft and 10,000+ sq ft is not at all unusual.  This may be one of the few cases where a town is trying to keep out the Ritz Carlton because its customers will bring down the neighborhood, lol, but that is exactly what is at work here, in part. 

Now I know you think I am exaggerating when I say the locals are worried about a Ritz-Carlton bringing down the neighborhood by attracting the unwashed, but here is the Zillow sales page for the area -- the vacant lot in the lower right is the property in question.

Zillow_pv

This piece of land has been empty and zoned for a resort for years.  I know it was zoned for a resort long before this sale because I was stuck in traffic court all day and had nothing to stare at but the town zoning map  (don't ever speed when crossing PV).  The buyers purchased this land several years ago (I think from the Wrigley family) after ensuring the zoning was solid.  If the town's residents wanted something else on the lot, they should have bought it themselves.  But it is ever so much cheaper to instead use your political influence to tell other people what they can and can't do with their property.

Another thought:  It is nearly an article of faith among libertarians that devolving government to the smallest possible unit enhances freedom.  Well, here is an example where it does not.  Not state or even city would pass a ballot resolution to change the zoning on one small piece of land.  But it is entirely possible this could pass in a town of just a few thousand people.

Cargo Cult Economics

The Democratic party, which so often accuses others of adopting superstition over science, are themselves pursuing Medieval economics:

The Democratic Party's protectionist make-over was completed yesterday,
when Nancy Pelosi decided to kill the Colombia free trade agreement.
Her objections had nothing to do with the evidence and everything to do
with politics, but this was an act of particular bad faith. It will
damage the economic and security interests of the U.S. while trashing
our best ally in Latin America.

The Colombia trade pact was signed in 2006 and renegotiated last year
to accommodate Democratic demands for tougher labor and environmental
standards. Even after more than 250 consultations with Democrats, and
further concessions, including promises to spend more on domestic
unemployment insurance, the deal remained stalled in Congress.
Apparently the problem was that Democrats kept getting their way.

I am sure the Columbians, who for years have been told by the US to export something other than cocaine, are scratching their heads at this rebuff when they actually try to do so.  My sense is that the Democrats are reacting to this ugly picture of US manufacturing output post NAFTA:

Manufacturing

We can see that since the passage of NAFTA in the mid-1990s that US manufacturing output has, uh, has.... can that be right?

Wherein A Libertarian Argues For Regulation Enforcement

I got to thinking today about regulation and its enforcement in this imperfectly government-dominated world after reading this Jon Stewart quote as relayed by Kevin Drum:

With this administration, if a passenger blows up a plane, it's a
failure in the war on terror. But if the plane just blows up on its own
"” eh, it's the market self-regulating.

What struck me that I had not thought of before is the question of whether non-enforcement of a published regulatory regime was the same as letting a market self-regulate.  And my answer was:  No, at least not in the short to medium term.

The reason is that the government regulatory regime crowds out private mechanisms that might attempt to achieve the same goals.  What do I mean by crowding out?  For example, if the government published car reliability metrics and regulation for all cars, no matter how imperfect, would JD Power and Consumer Reports bother with the investment to do the same?  For decades, insurance companies wrote de facto building codes and performed fire inspections of their insured structures.  They no longer do so, because the government has taken on that role (arguably less well than the insurance companies, who had the reputation of being tigers on such inspections).  Would Moody's exist to rank bond risks if the government had regulations in place that theoretically forced all securities to (I don't know how) have the same risk?  My marina liability insurer conducts occasional inspections of my marinas.

As a result, insurers don't inspect airlines, nor do manufacturers enforce inspection and replacement regimes (as automobile companies do, to some extent, to protect their warranty).  Third parties rate airlines for customer service but not for safety.  The whole private evaluation regime for airlines exists on the assumption that the government has regulatory program X and Y in place that is enforced.  In the long term, if the government were to abandon enforcement, and this lasted long enough for that expectation to exist in the market, new private regulatory methods would arise [arguments would most certainly exist between libertarians and others whether these new regimes were as effective as the old regime, but almost undoubtedly something would emerge].  But in the near term, we don't have a self-regulating market or even the expectation of one. 

As a result, I come to the conclusion that while deregulation may be needed, the absolute wrong way to do it is via non-enforcement of existing regulations.  So there you have it, a libertarian calls for better enforcement.  Comments?  I am just starting to think about this and would appreciate feedback.

On Presidential Power

While I find the torture recommendations in John Yoo's memos awful, they worry me less than the general assumptions embodied in them about presidential power.  After all, the issue of allowable tortures is a narrow issue that can be dealt with efficiently through Congressional legislation, and is almost certainly something to be disavowed by the next administration.

Based on historical precedent, what is less likely to be disavowed by the next administration are the broader definitions of presidential power adopted by GWB.  It is in this enhanced theory of presidential power where the real risk to the nation exists, and, unfortunately, there are all too few examples since George Washington's declining to run for office a third time of president's eschewing power.  Already, folks on the left are crafting theories around using the imperial presidency to address their favored issues, such as the University of Colorado's proposal for implementing greenhouse gas controls by executive fiat.

Support Canadian Free Speech (Because These Same Tactics Are Being Tested in the US)

Via Five Feet of Fury:

Richard "The Boy Named Sue" Warman has finally filed his statement of claim.

Canada's busiest litigant, serial "human rights" complainant and -- the guy Mark Steyn has called "Canada's most sensitive
man" -- Richard Warman is now suing his most vocal critics -- including me.

The suit names:

"¢    Ezra Levant (famous for his stirring YouTube video of his confrontation with the Canadian Human Rights
tribunal after he published the "Mohammed Cartoons")

"¢    FreeDominion.ca (Canada's answer to FreeRepublic.com)

"¢    Kate McMillan of SmallDeadAnimals.com

"¢    Jonathan Kay of the National Post daily newspaper and its in-house blog

"¢    and me, Kathy Shaidle of FiveFeetOfFury.com

Richard Warman used to work for the notorious Human Rights Commission, which runs the "kangaroo courts" who've charged Mark
Steyn with "flagrant Islamophobia."

Richard Warman has brought almost half these cases single-handledly, getting websites he doesn't like shut down, and making
tens of thousands of tax free dollars in "compensation" out of web site owners who can't afford to fight back or don't
even realize they can.

The province of British Columbia had to pass a special law to stop Richard Warman from suing libraries because they
carried books he didn't approve of.

Richard Warman also wants to ban international websites he doesn't like from being seen by Canadians.

The folks named in his new law suit are the very bloggers who have been most outspoken in their criticism of Warman's
methods.

She includes a paypal link to accept donations for their legal defense  (or is it defence in Canadian?)

Subprime Loan Proposal, Plus Some Thoughts on Brand

I am just fine with prosecuting mortgage brokers for fraud  who deliberately misrepresented the payments and risks of the loan products they were selling.  However, to be fair, we must then also prosecute borrowers and home buyers who deliberately misrepresented their assets and income to lenders, actions that are equally fraudulent.

Or, we could just let the whole foreclosure and bankruptcy system sort everything out and let bygones by bygones. 

Interestingly, it seems to be advocates for borrowers who want to stir the whole fraud thing up and are reluctant to just let the system play itself out.  I find this odd, for a couple of reasons:

  • Fraud by lenders will be hard to prove, since they all are covered by written disclosures that I am sure reveal all the terms of the loan.  The government itself has designed a number of written disclosures lenders must use  [by the way, if reformers want to start somewhere, they might begin with these government disclosures.  My experience is that they are silly and uninformative, and were put together by someone in the government who does not actually understand loans].  Fraud by borrowers, on the other hand, should be dead-easy to discover - they signed their name to an income statement and list of assets and liabilities which are quite easy to check.
  • The current foreclosure and bankruptcy system is pretty fair to borrowers.  In particular, in the case of subprime loans where the borrower has little equity, foreclosure costs almost nothing in current dollars - all the loss is on the bank, with absolutely no come-backs on the borrower in the future.  The borrower must endure years of difficult credit and rebuilding trust in the system, but that is the kind of minimum cost we should expect a foreclosure or bankruptcy to carry.  We always seem to get worked up about foreclosures, because we have this picture of someone losing a home they have lived in 20 years and losing all their equity.   But in these subprime cases, where the buyer has been in the home only a few months and put in virtually no equity, I think our mental picture of the costs, at least to the borrower, of foreclosure are overblown.

As an aside, I am easily convinced that there were many mortgage brokers offering their customers atrociously bad deals and rates.  I can't imagine personally not shopping around for mortgage rates from multiple suppliers, but there are clearly people who want to walk into one guy's office and buy something from that first person.   And a number of these people chose to do business with firms that gave them really poor service (if service is defined as getting the best possible loan for the buyer).  Which gets me to the subject of branding.

I know that there are a lot of folks, particularly on the left, who hate large corporations and national brands, but to a large extent the uneven and unpredictable quality of mortgage brokers may be due to a lack of national players and national brands in mortgage brokering. 

Mortgage brokers, stock brokers, and real estate brokers are all licensed by the government.  By statist thinking, that should be enough to ensure quality.  But while stock brokers and real estate brokers can be independent, most of them have organized themselves into groups under a brand name (e.g. Merrill Lynch or Century 21).  Few such national brands, if any, exist in mortgage brokering.

These brands exist because they have proven themselves useful and valuable to consumers.  Presumably they communicate some form of quality or reliability or capability beyond the level that having a government license affords.  This is not necessarily a gaurantee of perfection, of course.  Certainly Merrill Lynch brokers, form time to time, have been accused of fraudulent behavior.  But Merrill has been very fast to act on these occasions, taking actions designed to save its brand from being tainted.  It is this incentive, plus the history such brands carry in the collective memory, that gives consumers extra confidence to use brokers with these brands rather than individual practitioners.

If I was a contrarian with a load of money and a knowledge of mortgage brokering, I might be thinking about building a Century 21 or Remax-type brand in mortgage brokering.

The Keystone Issue of Global Warming

Cross-posted from Climate Skeptic.  I believe this to be an extremely important issue.  Catastrophic global warming forecasts are driven not by greenhouse gas theory, but by the theory that the Earth's climate is dominated by positive feedback.  This post discusses these issues:

It is silly to argue whether CO2 in the atmosphere can cause global warming: It clearly does.  The issue is not "if" but "how much".  The warming from man's CO2 might be 8 degrees in a century, as Al Gore might argue, in which case man's CO2 would be incredibly disruptive.  Or it might cause just a few tenths of a degree of warming, which might be unnoticeable within the noise of natural climate variation.

Interestingly, the key to understanding this issue of the amount of warming does not actually lie in greenhouse gas theory.  Most scientists, skeptics and alarmists alike, peg the warming directly from CO2 at between 0.3 and 1.0 degrees Celsius for a doubling in CO2 levels  (this notion of how much temperatures would increase for a doubling of CO2 levels is called climate sensitivity).  If this greenhouse gas warming was the only phenomenon at work, we would expect man-made warming over the next century even using the most dire assumptions to be less than 1C, or about the same amount we have seen (non-catastrophically) over the last century.  Warming forecasts of this magnitude would not in any way, shape, or form justify the draconian economic impacts of many current government carbon reduction proposals.

The key, as I have written before (and here), lies not in greenhouse gas theory itself but in the theory that the earth's climate is dominated by positive feedback.  This theory hypothesizes that small changes in temperature from greenhouse gas increases would be multiplied 3,4,5 times or more by positive feedback effects, from changes in atmospheric water vapor to changing surface albedo.

Let me emphasize again:  The catastrophe results not from greenhouse gas theory, but from the theory of extreme climactic positive feedback.  In a large sense, all the debate in the media is about the wrong thing!  When was the last time you saw the words "positive feedback" in a media article about climate?

Christopher Monckton has an absolutely dead-on post at Roger Pielke's blog about this feedback theory that I want to excerpt in depth.

This chart is a good place to start.  It shows the changes in the IPCC's estimate for climate sensitivity to CO2 and how it has changed over the course of the reports.  More importantly, he splits the forecast between the amount due directly to Co2, and the amount due to the multiplicative effect of positive feedback.  The green bar is the direct contribution of Co2, and the pink is the feedback.

Fig3

We can observe a couple of things.  First, the IPCC's estimate of the amount of warming due to CO2 directly via the greenhouse gas effect has actually been going down over time.  (Note that there are those, like Richard Lindzen, who suggest these numbers are still three times too high given that we have not observed a difference in surface and lower troposphere warming that greenhouse gas theory seems to predict).

Second, you will see that the IPCC's overall forecasts of climate sensitivity have been going up only because their estimates of positive feedback effects have gone way up.  The IPCC assumes that feedback effects multiply warming from CO2 by three.  And note that the IPCC's forecasts of feedback effects trail those of folks like James Hansen and Al Gore. 

So how confident are we in these feedback effects?  Well, it turns out we are not even sure of the sign!  As Monckton writes:

The feedback factor f accounts for at least two-thirds of all radiative forcing in IPCC (2007); yet it is not expressly quantified, and no "Level Of Scientific Understanding" is assigned either to f or to the two variables b and κ upon which it is dependent....

Indeed, in IPCC (2007) the stated values for the feedbacks that account for more than two-thirds of humankind's imagined effect on global temperatures are taken from a single paper. The value of the coefficient z in the CO2 forcing equation likewise depends on only one paper. The implicit value of the crucial parameter κ depends upon only two papers, one of which had been written by a lead author of the chapter in question, and neither of which provides any theoretical or empirical justification for the IPCC's chosen value. The notion that the IPCC has drawn on thousands of published, peer-reviewed papers to support its central estimates for the variables from which climate sensitivity is calculated is not supported by the evidence.

Given the importance of feedback to their forecasts, the treatment in the latest IPCC report of feedback borders on the criminal.  I have read the relevant sections and it is nearly impossible to find any kind of discussion of these issues.  A cynical mind might describe the thousands of pages of the IPCC report as the magician grabbing your attention with his left hand to hide what is in his right hand.  And what is being hidden is that ... there is nothing there!  Feedback is the pivotal point on which the whole discussion of drastic carbon abatement should turn and there is nothing there. 

Monckton goes further, to point out that hidden in the IPCC numbers lies an absurdity:

if the upper estimates of each of the climate-relevant feedbacks listed in IPCC (2007) are summed, an instability arises. The maxima are -

Water vapor 1.98, lapse rate -0.58, surface albedo 0.34, cloud albedo 1.07, CO2 0.57, total 3.38 W m-2 K-1.

The equation f = (1 - bκ)-1 becomes unstable as b → κ-1 = 3.2 W m-2 K-1. Yet, if each of the individual feedbacks imagined by the IPCC is increased to less than the IPCC's maximum, an instability or "runaway greenhouse effect" is reached.

Yet it is reliably inferred from palaeoclimatological data that no "runaway greenhouse effect" has occurred in the half billion years since the Cambrian era, when atmospheric CO2 concentration peaked at almost 20 times today's value

Positive feedback can be weird and unstable.  If there is enough of it, processes tend to run away (e.g. nuclear fission), which is what Monckton is arguing that some of the IPCC assumptions lead to.  Even when feedback is less positive, it still can cause processes to fluctuate wildly.  In fact, it is fairly unusual for long-term stable processes like climate to be dominated by positive feedback.  Most scientists, when then meet a new process, would probably assume negative feedback until proven otherwise.  This is a particular issue in climate, where folks like Michael Mann have gone out of their way to argue that the world temperature history over the last 1000 years before man began burning fossil fuels is incredibly stable and unchanging.  If so, how can this be consistent with strong positive feedback?

Anyway, there is a lot more numerical detail in Monckton's post if you want to dig into the equations.

I would add one thing to his analysis:  If you look at the last 100 years of history, the change in temperature given the observed change in CO2 levels comes no where close to a climate sensitivity of 3 or more, even when you assign all historical warming to CO2 rather than other effects like the sun.  In fact, as I showed in this analysis, climate sensitivity appears to be 1.2 when one assigns all past warming to CO2, and something well less than that if one accepts the sun and other effects also play a role.  These historical analyses would point to feedback that is either zero or negative rather than positive, more in line with what one would expect from complex natural systems.

You can see a discussion of many of these topics in the video below:

Will Mexico Follow Chavez?

As in Venezuela, the Mexican government is facing the problem of declining oil production in a state whose national government relies on oil revenues for much of its operating funds.  And, like Venezuela, this is a problem that is self-imposed. 

The ignorance with which most of the media writes about oil reserves is staggering.  Most writers fall in the trap of talking about oil reserves as if they are big pools underground that will eventually be sucked dry and have a fixed recoverable size.  The reality is that the amount of oil that can be pumped from any field depends greatly on how much capital investment one puts into the field.  In the short term, wells even in perfectly viable fields will start to fall off in production unless they are reworked every so often.  Longer term, addition of pumps, water/steam/CO2 injection, drilling deeper, etc. all can greatly extend the life of fields.  There are fields in Texas just as old as those in Mexico which continue to be reinvigorated by investment.  And we continue to find new fields in the US through exploration investment, and would find more if the government did not restrict the most promising areas from exploration.  (by the way, this is why much of the peak oil analysis is BS)

The problem, then, is not that Mexican oil reservoirs are going dry but that the amount of investment required to keep them producing is rising as they age (the converse of the law of diminishing returns is the law of increasing capital investment requirement).  And the Mexican government, like that in Venezuela, is committed to siphoning off oil revenues for short term political spending and to provide gas at below-market pricing rather than reinvest the money in the fields.  In this context, the Mexican government is seeking foreign investment to help bail them out of this problem, while the socialist elements want to keep foreign corporations out.

For once, I agree with the socialists.  I see no reason why US oil companies should venture back into a country that still celebrates as a holiday the day in 1938 when the Mexican government stole the assets of US oil companies.

Postscript: 
special recognition to the AZ Republic writer who gratuitously tried to justify nationalization of assets owned by US citizens by claiming that the US oil companies essentially asked for it by "evading Mexican taxes and paying meager salaries."  The entire history of the third world oil industry can be written as follows:
1.  US companies invest huge amounts of capital and know-how to build oil industry
2.  Once things are producing, local government steals it all
3.  Oil fields go into extended decline due to short-term focused and incompetent government management
4.  US companies invited back int to invest huge amounts of know-how and capital
5. repeat

Update: Here is a great example of why peak oil analysis is probably flawed -- such analysis assumes that the size of reserves are static.  But in fact they are not.  They can vary greatly with the price of oil, because the size of the recoverable reserves, as discussed above, depends on how much one is willing to invest in recovering them and that depends on price.

In the next 30 days the USGS (U.S. Geological Survey) will release
a new report giving an accurate resource assessment of the Bakken Oil
Formation that covers North Dakota and portions of South Dakota and
Montana. With new horizontal drilling technology it is believed that
from 175 to 500 billion barrels of recoverable oil are held in this
200,000 square mile reserve that was initially discovered in 1951. The
USGS did an initial study back in 1999 that estimated 400 billion
recoverable barrels were present but with prices bottoming out at $10 a
barrel back then the report was dismissed because of the higher cost of
horizontal drilling techniques that would be needed, estimated at
$20-$40 a barrel.

But We Didn't Mean For Those Laws to Apply to Us

Today's emails seem to be following the theme of government exempting itself from its own regulations.

In the first story, many California government employees (and their families!) are issued with license plates that effectively exempt them from traffic law violations.

In the second story, the town of Ann Arbor, Michigan sets out on a voyage of discovery in which they find out that minimum wages can drastically increase costs and that different people have different needs.  And so, they exempt themselves from the law.  I am particularly sensitive to this story because the reason the city claims it is unfair to apply the law to them exactly matches my business:

After several months of negotiation, Ann Arbor elected
officials Monday agreed to waive the city's
"living wage'' law for the Ann Arbor Summer
Festival.

What's been at issue is the application of the wage
law to the festival's temporary workers. Under the
living-wage law, groups that have contracts of $10,000 or
more with the city must pay above-minimum wages. That wage
level is now around $12 an hour for employees who don't
receive health benefits.

Because the increased wages would significantly add to the
costs of putting on the festival

Wow, who would have thought that artificially setting wage rates above the market clearing price would increase costs?  But to continue:

City Council Member Chris Easthope, who's promoted the
change, argues that the festival's seasonal employees -
almost all students - are not the kind of workers the wage
law was meant to protect.

"This isn't an attempt to drop people below
living wage levels, but to recognize there are some
short-term events that struggle. I don't think that,
when it was adopted, the living wage was meant to have that
effect on a one-month event.''

Let's see.  I hire temporary seasonal workers in Michigan for about three months of the year.  And thought they are not students, most are retired people in their seventies who are also likely "not the kind of workers the wage law was meant to protect."  In fact, many of my workers are disabled and work slower, so I probably have a better argument than the city.  So where is my exemption? 

Global Warming / Biofuel Tragedy

Time, not always my favorite publication, hit on a couple of points I have made recently in an article called the Clean Energy Scam.  This article has been around for a few weeks but I am only just now getting to it.

First, I made the point just the other day that inordinate focus on global warming is crowding out other more important environmental issues, sucking the oxygen out of causes like private land trusts that are attempting to preserve unique areas.  As Time says:

The Amazon was the chic eco-cause of the 1990s, revered as an
incomparable storehouse of biodiversity. It's been overshadowed lately
by global warming

Much has been made of Brazil's efforts to reduce imported oil.  Too much credit has been given to ethanol -- most of Brazil's independence came from a number of domestic oil developments.  However, Brazil has been a leading promoter of ethanol through government policy, and this focus on ethanol has had a lot to do with deforestation in the Amazon, as rising crop prices due to biofuel mandates have spurred a rush to clear new land.  Now, US and European ethanol policies are just accelerating this trend:

This land rush is being accelerated by an unlikely source: biofuels. An
explosion in demand for farm-grown fuels has raised global crop prices
to record highs, which is spurring a dramatic expansion of Brazilian
agriculture, which is invading the Amazon at an increasingly alarming
rate.

it never made any sense that a fuel that requires more energy to produce than it provides could ever be "green," but only now are the politically correct forces accepting what I and others have been saying for years:

But several new studies show the biofuel boom is doing exactly the
opposite of what its proponents intended: it's dramatically
accelerating global warming, imperiling the planet in the name of
saving it. Corn ethanol, always environmentally suspect, turns out to
be environmentally disastrous. Even cellulosic ethanol made from
switchgrass, which has been promoted by eco-activists and eco-investors
as well as by President Bush as the fuel of the future, looks less
green than oil-derived gasoline.

The rest of the article is quite good.  I don't like to criticize where other people choose to spend their charitable dollars, but it is just amazing to me that environmentally-concerned people could give $300 million to Al Gore just to squander on advertising.  (By the way, Al Gore claims to have not only invented the Internet, but to have "saved" corn ethanol from government defunding).  I think about how much $300 million could have achieve in private land trusts trying to buy up and preserve the Amazon, and I could cry.  But all I can do is plug along and give what I can.  I donate to both the Nature Conservancy and World Land Trust.

Zimbabwe Puts Gippers in Circulation

Zimbabwe introduces a new 50,000,000 bank note.  And if you do not understand the post title, shame on you.  Go read this book immediately.

And the Winner Is...

Jeff Charleston, who went nearly wire to wire to win.  Here is the top ten, which yours truly finally managed to crack for the first time.  I picked the fewest correct games, by far, of anyone in the top 10 but got a lot of upset correct and thus scored a bunch of bonus points.  Memphis fans have to be squirming today.  I almost didn't watch the last 2 minutes of the game -- Memphis seemed to have it totally in hand.

Bracket Rank Points Correct Games Upset Risk % Tiebreaker Total Points (diff) Possible Games
Jeff Charleston 1 127 46 16.7 157 (14) 46
Bennett Johnsen 2 126 47 9.5 150 (7) 47
Keith Ehlers 3 115 44 16.7 188 (45) 44
Kevin Clary #2 4 115 42 13.8 176 (33) 42
Warren Meyer #2 5 115 41 21.4 125 (18) 41
Kelly McLean 6 114 47 6.0 135 (8) 47
Kevin Clary 7 113 42 13.7 174 (31) 42
Aj Dote 8 112 42 2.5 145 (2) 42
Steve Jones 9 109 45 11.4 157 (14) 45
Tom Kirkendall 10 108 45 5.2 142 (1) 45

The whole thing here.

Congrats to Jeff, and he can send me an email if he would like a free copy of either of my books.  And no, Bennett doesn't win 2 copies for being in second. 

Thanks, Government

The US Government requires that garage door openers include an electric eye system that prevents the door from closing if the beam is broken.  Unfortunately, given dirty garages, it is really easy for this beam to be blocked by dust and such.  Two years ago, the beam system caused my door to go back up without my knowledge (I just hit the button and went inside) and as a result our garage was robbed that night. 

This time of year is especially frustrating for us.  My garage faces south, so the low sun this time of year overwhelms the electric eye system in most garage doors and causes them to refuse to close.  It is hugely frustrating, and a real security issue.  I glued tubes around each eye to try to shade the sun, but it is still working erratically.  I spent much of last weekend trying to figure out how to bypass the system electrically but I could not make it work.  Finally, I have had enough.  I have spent ten times the cost of the garage door opener in stolen goods and my personal time fighting this stupid device.  Tonight I am going to remove the two eyes and just mount them facing each other on a wall so I don't have to worry about them any more.  Unless someone can come up with a better solution. 

In my mind this is a classic example of government technocracy -- someone decided for us that we should value a minuscule increase in safety over a substantial reduction in security.

Presidents and the Economy

There is very little that can make me go non-linear faster than when someone attributes economic growth to a politician, e.g. Reagan's economy or Clinton's economy.  So this post from Kevin Drum on the correlation between economic growth and the flavor of president in the Oval Office is just the kind of thing to make me lose it.  And not because I really care whether Team Coke or Team Pepsi looks better.

Larry Bartels says that Democratic presidents produce higher economic
growth than Republican presidents, and that the differences in average
growth rates for middle-class and poor families (but not affluent
families, apparently, who do well under both parties) are statistically
significant by conventional social-scientific standards.

OK, I have seen the analysis done different ways and accept the statistical conclusion.  You used to be able to get a really tight correlation between Washington Redskin football team performance and presidential election outcomes (via Snopes):

Sometimes one natural phenomenon supposedly
forecasts another, as in the belief that a groundhog's
seeing his shadow on February 2 portends another six weeks of
winter. In other instances the linkage is between affairs of mankind, as in the
superstition that the winner of football's Super
Bowl
augurs that year's stock market performance (or vice-versa).

A recent item of this ilk maintains that the results of the last game
played at home by the NFL's Washington Redskins (a football team based in
the national capital, Washington, D.C.) before the U.S.
presidential
elections has accurately foretold the winner of the last
fifteen of those political contests, going back to 1944. If the Redskins win
their last home game before the election, the party that occupies the White
House continues to hold it; if the Redskins lose that last home game, the
challenging party's candidate unseats the incumbent president. While we don't
presume there is anything more than a random correlation between these factors,
it is the case that the pattern held true even longer than claimed, stretching
back over seventeen presidential elections since 1936

What gets me is not the existence of a correlation, but the explanation:

In recent decades taxes and transfers have probably been more
important. Social spending. Business regulation or lack thereof. And
don't forget the minimum wage. Over the past 60 years, the real value
of the minimum wage has increased by 16 cents per year under Democratic
presidents and declined by 6 cents per year under Republican
presidents; that's a 3% difference in average income growth for minimum
wage workers, with ramifications for many more workers higher up the
wage scale. So, while I don't pretend to understand all the ways in
which presidents' policy choices shape the income distribution, I see
little reason to doubt that the effects are real and substantial.

I have three thoughts, of which the third is what really gets me:

  • It is funny that no one considers that this correlation may work in reverse.  Everyone assumes government drives short-term economic performance.  What if, to some extent, short-term economic performance drives changes in government?  If one assumes that, even without the public spirited and Herculean efforts of our presidents, economies are naturally cyclical, then why try to explain cycles on politics when we know cycles are going to exist anyway.  Why wouldn't a perfectly valid alternate explanation be that one political party tends to be elected if the economy is in one part of the cycle and the other gets elected if the economy is in another place?
  • The political brand names "Republican" and "Democrat" shift in meaning over time vis a vis economic policy recommendations, and individual presidents can diverge quite a ways from their party center line.  One can easily argue that Nixon was the most interventionist and economically ignorant president (think:  wage and price controls), despite the "Republican" brand name.  John Kennedy was more laissez faire than most Republicans are today.   Regulation, as measured by pages added to Federal Register, increased at a far faster pace under George Bush (I) than Bill Clinton.  Bill Clinton passed free market legislation, including NAFTA, that John McCain shys away from today, while George Bush passed an expansion of Medicare that Bill Clinton did not consider.  Oh, and when we discuss regulation and such, Congress sortof matter too.
  • The author's argument boils down to "the more governors and useless loads we add to an engine, the more strongly the engine will run."  It is just absurd.  None of these guys have the first clue what it takes to run a business day to day, nor how much of a business owner's time and effort is aimed not at service customers better, and not at being more productive, and not at making employees happier or better trainined, but at responding to the latest mass of government regulation, paperwork, liscensing, taxes, and other total crap.  Here is just one example I wrote up about what sits on my desk.

To this last point, take just two things on my desk this morning.  The first is a pile of tax returns and some licensing paperwork.  Last year, our company's total tax bill was not that large.  But the problem is that the government takes the taxes in so many bites, and every bite costs time on our part learning the process and filling out paperwork.  For example, if I take all the taxes and licensing fees we pay to federal, local, and state governments, and multiply times the number of months or quarters each requires a report, I get a number of over 400.  Four hundred individual bites, each with its own paperwork and overhead.

The other problem sitting on my desk is a snack bar I inherited on a lease in California at Lake Piru.  The snack bar is a dump.  It is designed wrong, it is set up to cook the wrong kinds of foods, and uses space in the building very inefficiently.  I want to lay the whole thing out differently, as a win-win for everyone.  We could sell more with fewer workers.  The customers would get more selection, including much healthier choices.  The operation would be safer, because we would eliminate most of the heavy cooking  (e.g. deep fat fryers).  And it would be cleaner, with less wastewater and cleaner wastewater because there would be less grease and oil.

Unfortunately, it is very clear that Ventura County, California is not going to allow me to make these changes, at least at any cost I can afford.  First, apparently I need to build a new wastewater treatment plant for the snack bar!  But I am reducing the waste water load, I argue.  Does not matter.  New code requires a plant.  So because of this environmental code, I am pushed to continue the current operation which is environmentally worse than my proposed alternative.  We have the exact same problem on fire suppression.  But I am removing the ovens and most of the cooking equipment!  It's safer!  Doesn't matter, if I make any change at all, I have to install a new fire suppression system.  And on and on.  this is the true face of government regulation.  We face this kind of thing ten times a day.   

Anyway, I could go on and on about this stuff, but that is what the blog is about, so I will refer you to my past (and future) posts.