Coyote Blog

Ivy League schools are broken, at least to the extent they are true to their word that they are trying to serve mankind and not simply their own prestige.  Consider this from the WSJ:

Harvard hit a new low this year—in terms of its acceptance rate.

The university admitted 4.6% of applicants, or 1,962 students for the class set to begin this fall. Last year, it admitted 5.2% of applicants.

The eight campuses making up the Ivy League notified applicants on Wednesday evening about who will make up their first-year undergraduate class come fall. Seven of the eight posted record-high application numbers, while Dartmouth had its highest number in five years; seven recorded their lowest-ever acceptance rates, as Yale tied with its prior record.

Many of the applicants looked perfect on paper. At Princeton, more than 14,200 of the 35,370 applicants had a 4.0 grade point average. Brown boasted that 96% of its admitted students are in the top 10% of their high school classes, while at Dartmouth that rate hit 97%.

Yale admissions officers were “impressed and humbled” by the volume of qualified candidates, said Jeremiah Quinlan, dean of undergraduate admissions and financial aid. That school tied its record-low 6.3% admission rate this year.

The WSJ has an article today about digital dashboards in cars, focusing on how software glitches are making cares undriveable, the motoring version of the blue screen of death.  I have no particular comment on the reliability issue, but the article reminds me that for a while I have wanted to post a rant about modern car electronics.

Specifically, my issue is with the user interface, and that user interface sucks.  I have a 2007 model car and am in no hurry to replace it in large part because I cannot find a car with a user interface for the sound and climate systems that I can tolerate.   I will illustrate this with a look at my wife's car, a Mercedes that is a couple of years old.  Her radio still has 10 preset buttons (actual physical buttons, thank god for small favors) but for them to work, her radio has to be in radio preset channel mode.  So let's say it is there and I get in the car and want to listen to Sirius channel 80 (ESPN).  That is not one of her presents,  I have to get out of preset mode and get into satellite radio mode.  To do that I have to hit the back button, then with this dial thing I have to bump the dial up to get the top menu, turn the dial to get audio options, click the dial to select audio options, then turn the dial again to select satellite radio (vs. other choices like FM or AM) and then click the dial to select.  Now I am in satellite radio mode and I can twirl the dial to go up and down the stations.  I have to do similar contortions navigating layers of menus to get into navigation mode or pull up a map.  All while I am trying to drive.

Compare this to my 2007 car.  If I am in some other radio mode, I jam the physical button marked "sat" and I am in satellite radio mode.  No layers of menus to navigate.  I can hit the FM or AM buttons to immediately reach those.  If I want the map, I hit the physical button marked "map" or the button marked "nav".  No navigating through layers of windows while I am trying to drive.  Some of the rental cars I get are even worse.  They have integrated systems that cover not just the sound system and navigation system but the climate control.  It is incredibly irritating and distracting to have to try to navigate layers of menus just to change the fan speed on the A/C.  My wife and I have had whole trips where we never discovered how to do certain things in the car because we couldn't figure out the obtuse interface.

So this is what I don't understand.  If car designers are getting rid of physical buttons in favor of multilayered menu systems because it saves them a bunch of money, fine.  Bad trade-off in my mind, but there is at least a reason.   But if they are getting rid of physical buttons because they think that modern users prefer navigating multiple screens to access commonly used functionality, this is simply insane.  No one can top me for pure technophilia, but technical wizardry should not come at the expense of reduced usability.

Postscript:  And don't tell me "well, you can use voice commands."  The voice interface in my wife's Mercedes is still unreliable and results in her yelling at it a lot.  And while they have a lot of upside, most voice interfaces still have the same problem that Alexa has, which is that you have to memorize a syntax for each command.  You can't say natural language, "Alexa I need lights" or "turn the lights on Alexa" it has to be "Alexa, bedroom lights on."  Sort of the verbal equivalent of WordPerfect, where users had to memorize what cntl-alt-shift-R does.

Tesla agreed to give Elon Musk what is potentially the richest executive compensation package ever.  I will give my (*gasp*) cynical reason why I think they did this.  I can show you in one chart (Tesla Model 3 production, from Bloomberg):

I would argue that Elon Musk is the only one in the world who can run a company with so many spectacular failures to meet commitments and still have investors and customers coming back and begging for more.  A relatively large percentage of Teslas get delivered with manufacturing defects and their customers sing their praises (even while circulating delivery defect checklists).  Tesla keeps publishing Model 3 production hockey sticks (apparently with a straight face) and consistently miss (each quarter pushing back the forecast one quarter) and investors line up to buy more stock.  Tesla runs one of the least transparent major public companies in this country (so much so that people like Bloomberg have to spend enormous efforts just to estimate what is going on there) and no one is fazed.  Competitors like Volvo and Volkswagon and Toyota and even GM have started to push their EV technology past Tesla and actually sell more EV's than does Tesla (with the gap widening) and investors still treat Tesla like it has a 10-year unassailable lead on competition.

All because Elon Musk can stand up at a venue like SXSW, wave his hands, spin big visions, and the stock goes up $3 billion the next day.   Exxon-Mobil has a long history of meeting promises, reveals its capital spending plans in great detail, but misses on earnings by a few cents and loses $40 billion in market cap.  GE lost over half its market value when investors got uncomfortable with their lack of transparency and their failures to meet commitments.   Not so at Tesla, in large part because Elon Musk is PT Barnum reincarnated, or given the SpaceX business, he is Delos D. Harriman made real.

Disclosure:  I don't currently have any position in TSLA but over the last 2 years I have sold short when it reaches around $350 (e.g. after Elon Musk speaks) and buy to cover around $305 (e.g. when actual operational or financial data is released).  Sort of the mirror image of BTFD.

I really love this blog about visual effects, particularly various forms of matte painting, in movies before CGI.

A reader sent this to me:  Train enthusiasts' ashes put on tiny coal wagon so he can trundle around miniature railway he spent 40 years creating

Ace of Spades writes, in response to a NYT article on the death of a homeless woman:

In Sunday’s NYT there is a long article about a homeless woman who lived on a grate near Grand Central Terminal. She was seemingly intelligent, a Williams grad, and had a promising future snuffed out by mental illness....

What is ironic is that the majority (probably all) of the people involved and interviewed probably support the deinstitutionalization craze that has gripped America since the 1970s. I wonder whether a firm public policy of forced commitment would have helped this woman. My suspicion is that it would have. That is not to say that our institutions were wonderful, but an all-or-nothing approach makes no sense. We have moved the mentally ill out of sometimes awful psychiatric facilities into the revolving door of the street, prison and an early death.

I was among those who has opposed forced institutionalization.  The practice used to be rife with abuse, and when it was really being challenged in the 1970's it was with recent knowledge of how institutionalization for supposed mental health issues had been used in the Soviet Union as a tool against dissent.  And in a world where political partisans still routinely assign negative mental health diagnoses to their political enemies and have even suggested using mental health diagnosis-from-a-distance to unseat the current President, there is still a lot of possibility for abuse.  But seeing that most of those who would have been in state mental hospitals are now in prison or living (and dying) on the streets, I am open to having made a mistake.   I am still not sure, though, who advocates for such people who are without friends and family and would help guard against their abuse.

This article about pronouns on campus embodies all that is wrong with social justice warriors today, but perhaps not for the reason you might guess.

I personally have no particular problem if you want to identify as a male or a female or gender 6 or a zebra.  But here is the real problem:  When I write about you, I don't know how you self-identify.  And when I write about a random hypothetical person, gender is effectively meaningless.  I want one simple third person pronoun that can be applied to everyone.  I currently use "they" even for the singular, rather than the more awkward "he or she" or just picking a random one each time, though this usage is still controversial.  I don't care what the damn word is, just let's agree on one.   The shift in the 1970's from using Mrs. and Miss to just using Ms. was awesome -- if you have ever struggled with trying to guess gender from a name like "pat", think about what a pain in the butt it was to try to guess marital status before addressing someone.   The only thing that would be an improvement would be to just go to M. for everyone, male or female.

But the proposal in the article has, at my count, 11 different third-person pronouns.  Ack.  This is going in exactly the wrong direction.  It is the same thing that social justice warriors have done on race.  Twenty years ago, perhaps even 10, most everyone would have agreed the ideal goal was to have post-racial or race-blind society.   Sure, celebrate your ethnicity and cultural uniqueness, but when dealing with each other we should think of each other first and second and third as humans, with race being as relevant to how we react to people as hair color.   But of course we have gone in the opposite directly, with Progressives actually arguing for more and more separation and barriers between the races.  So now we are doing the same thing on gender.

The whole point of the pronoun things seems to be not to get us to some sort of harmony but just the opposite, to create new opportunities to shame and abuse people.  After all, if we launch tidal waves of outrage at people for picking the wrong pronoun out of two choices, imagine how much vitriol we can vent with 11 choices to get wrong.

Pigouvian taxes are taxes meant to help markets and prices better account for certain externalities that wouldn't otherwise be priced in.  A good example is that to the extent one thinks that CO2 is having a deleterious effect on the environment, a carbon tax would be a pigouvian tax.  This brief note at Cato discusses some problems with Pigouvian taxes.  This note reminded me of another issue:  in real life, Pigouvian taxes are more likely to reflect biases and faulty assumptions and virtue signalling of politicians rather than real science and economics.  Here are two situations that come to mind, presented without comment:

I am a long-time model railroader (yes, I need to post an update soon) but the hobby is basically dying.  It is just not relevant to young people any more.

Maybe it's because no one produces awesome starter train sets any more like these from the 1980's.

I love Mark Perry's blog but I think he missed an opportunity to point out something awesome in this chart:

We spend a lot of time discussing how Uber and its app-based peers are upending the traditional taxi monopoly.  And no one enjoys seeing a government enforced crony monopoly overturned more than I.  But let's not miss the other story here, which is the tremendous increase in customer well-being and mobility.  Forget the mix for a second and add the two lines.  Monthly passenger rides, which were stuck in the 12-13 million a month range for years, have almost overnight doubled to about 25 million rides with the advent of ride-hailing and the entry of many ordinary folks without taxi medallions into the drive-for-hire business.  This is amazing!

I continue to marvel at the nearly 100% positive press Elon Musk gets for his Hyperloop project.  For those who do not know, that is his concept for a high speed transportation system that can achieve high speeds in part because it is in a vacuum sealed tube.  Here is an update on the project and a picture of a prototype below:

So here is the story so far:  We know that the main barrier to high speed rail projects is that they are astonishingly expensive to build and maintain given the high cost of the right-of-way acquisition and building track to the very high standards necessary to support safe high speeds.   See for example California high speed rail, which is following some sort of crazed Moore's law where the cost estimate doubles every 18 months.

So we are going to fix the cost problem by ... requiring that the "track" be a perfectly smooth sealed pressure vessel under vacuum that is hundreds of miles long?  What about this approach isn't likely an order of magnitude more expensive than rail?  The prototype above which allows only one way travel cost about a billion dollars per mile to build.  And with a lot less functionality, as current prototypes envision 10-20 person sleds, one step beyond even the worst airline middle seat in terms of likely claustrophobia, and less than half the capacity of a bus.  It would take 15-20 of these sleds just to move the passengers from a typical aircraft.   Not to mention the fact that there is no easy way to do switching and a return trip requires a second parallel track.  All to reach speeds perhaps 20% higher than air travel.

Sure, I can be wrong.  For example, if the hyperloop handled grades better than a train, that would reduce costs somewhat.   But why does no one seem to ask obvious questions like this?   It's like Musk exudes some sort of skepticism dampening field around him (look at Tesla:  the company is fraught with issues and the stock price was falling until Musk did one of his hand-waving presentation specials at SXSW and the stock goes back up 30 points).  But if you read carefully, most of the hyperloop progress in the article linked is for getting handouts from government (something Musk excels at) including money for scoping studies of lines that will never exist and money for new buildings and workshops.

Jeff Skilling was convicted of fraud and fined $50 million dollars and given 20+ years in jail.  Elizabeth Holmes -- for fraud that is way more obvious and for which she is clearly directly accountable -- will get no jail time, a fine of a half million dollars, loss of some voting shares in the company, and a ten year moratorium on being a director or officer of a public company.  From the SEC press release:

The complaints allege that Theranos, Holmes, and Balwani made numerous false and misleading statements in investor presentations, product demonstrations, and media articles by which they deceived investors into believing that its key product – a portable blood analyzer – could conduct comprehensive blood tests from finger drops of blood, revolutionizing the blood testing industry.  In truth, according to the SEC’s complaint, Theranos’ proprietary analyzer could complete only a small number of tests, and the company conducted the vast majority of patient tests on modified and industry-standard commercial analyzers manufactured by others.

The complaints further charge that Theranos, Holmes, and Balwani claimed that Theranos’ products were deployed by the U.S. Department of Defense on the battlefield in Afghanistan and on medevac helicopters and that the company would generate more than $100 million in revenue in 2014.  In truth, Theranos’ technology was never deployed by the U.S. Department of Defense and generated a little more than $100,000 in revenue from operations in 2014.

These are only the highlights of the many, many repeated knowingly grossly fraudulent statements made by Holmes over a span of several years, and this does not even include her harassment of whistle blowers who tried to go public with the fraud.  This isn't a case of creating an offshore JV that shifted some debt off the balance sheet -- its the case of lying blatantly about the company's technology and financials for years and years.

Update:  6/15/2018 Holmes criminally indicted for fraud.  I should have listened to Ken White at Popehat -- he always says that the wheels of justice in the US Attorney's office grind slowly, but they do eventually make progress.

Don Boudreaux and and Mark Perry have been doing a great job making the case against Trump's trade sanctions.  But it is always a danger only to learn about opposing views from those who disagree with you, so in the spirit of Bryan Caplan's "Ideological Touring Test" I wanted to address directly some of the arguments in support of Trump's sanctions.

I followed several links to this article by Spencer Morrison.  After reading the whole thing, I fear I have made the intellectual error of choosing a poor representative of the opposing side's argument, but I am committed now, so here goes.

Consider that China steals more than half a trillion dollars in American intellectual property every single year. This is one of the reasons America’s trade deficit with China is so massive. For example, in 2010 Chinese companies stole high-speed rail designs from American firms, thereby depriving them of hundreds of billions in potential revenues. Such theft occurs in nearly every industry, whether it’s software programs or branded consumer goods. And the worst part? We let it happen.

I find the author's figure absurd, and likely untrustworthy given his example.  Following his high-speed rail design "theft" link one quickly finds that 1) Americans were not involved at all, which is not surprising since we really don't have high-speed rail manufacturing industry or expertise in this country; 2) the technology seems to have been acquired or copied legally; and 3) the real competitive issue for non-Chinese companies seems to be that the Chinese have extended and improved the technology.

This one paragraph essentially summarized the theme of the article, that technology is the key to increased well-being and that the US is poorer when they cannot monopolize the best technology.  The first is true, the second is dead wrong and flies in the face of 200 years of history.

I won't spend time on the mass of the article where describes the economy in very production-based terms which I don't totally agree with, but his basic point is one I can partially accept -- that real economic growth over time comes from  productivity growth.  I agree that technology is part of the productivity equation, but unlike the author I also see other drivers such as trade (which he calls "noise").  Trade is a critical factor in productivity improvement as specialization and comparative advantage greatly increase productivity.

But where I think he really goes off the rails is to say that because technology is wealth-creating, we need to monopolize that technology in the US.

The core issue remains: we continue to  offshore our advanced industries at an alarming pace, which will only increase the likelihood that the “next big thing” will be invented abroad. If we do not reverse this trend, we will soon be on the outside looking in.

It would be entertaining to discuss the origins of the American textile industry in the late 18th and early 19th century with the author, which were largely based on spinning jenny and powerloom designs that were literally stolen from manufacturers in the UK (countries don't own technologies, only individuals and their companies do).  The UK at the time had strict technology export restrictions of which I am sure the author would have been approving.

So did the UK suddenly become poorer as America built a lively cloth industry?  No, in fact the UK boomed along with the US.  It turns out that spreading new technology and productivity techniques around more widely made everyone richer.  This only makes sense.  Would the West really be wealthier if they had kept all technology from spreading, and thus were surrounded by countries dominated by subsistence farming and medieval crafts?  A skeptic might argue that the UK did eventually become poorer relative to the US and upstart Germany, but Andrew Carnegie could have told you why at the beginning of the 20th century.  He went back and toured manufacturers in his old home and was horrified at how little they reinvested in new technology.

Which brings me back to Chinese high speed rail, the example he started with.  Clearly the Chinese have a growing high-speed rail manufacturing industry, and they DIDN'T invent the technologies originally in China.  This is what trade is all about.  Rather than keep technologies locked up in a secret underground bunker in the Rockies, as the author seems to prefer, it spreads technologies around the world.  Production then shifts around the world based on a variety of factors such as comparative advantage in ways that are hard to predict, but seldom has a strong relationship to the country in which the technology was first invented.  One place production does NOT shift, though, is towards countries whose government has artificially raised critical raw material prices through border taxes on its consumers called tariffs.

Which reminds me, if the problem is China "stealing" things like high-speed rail technology, then why in the hell are we imposing steel and aluminum tariffs?  What the heck does this have to do with technology transfer?  In fact, if the US really had a high-speed rail industry we were worried about, or if one were exclusively concerned with the auto industry, the author is essentially telling them "we are sorry you had your technology stolen so to help you out we going to substantially raise the prices of your two largest purchases (steel and aluminum) so that you can be even less competitive internationally."  Ahh, I can feel the economic growth from that already.

If the author wants better intellectual property protections for US companies and individuals, I am generally supportive of efforts to achieve this (as long as we don't over-specify intellectual property and end up again with endless patent troll suits).  For all its flaws, though, joining the TPP seems to be a better path to this end (it actually addresses, you know, intellectual property protections rather than just raise steel prices for consumers).

To conclude, I love this quote from his article because, despite being anti-trade, he in fact is echoing the pro-trade observation by Steven Landsburg.

Yet our trade policy does exactly the opposite. After the North American Free Trade Agreement took effect in 1994, U.S. corn exports surged, as did our imports of automobiles. The problem is that automobile manufacturing is much more likely to benefit from disruptive technology than is growing corn—under NAFTA, the preponderance of long-run benefits went to Mexico, not the United States. The same is true with America’s trade relationship with China: America’s advanced goods trade deficit with China now tops $120 billion. Meanwhile, our biggest export is soybeans.

Free trade is, quite literally, turning America into China’s mercantile resource colony: we buy their value-added, manufactured products, and we sell them raw materials.

This is freaking awesome!  We grow and sell soybeans and get back advanced technology products.  Brilliant!  No wonder we are the richest nation on Earth.

Postscript:  So to save the time clicking through to Steven Landsburg, here is a part of what he said (via Carpe Diem):

There are two technologies for producing automobiles in America. One is to manufacture them in Detroit, and the other is to grow them in Iowa. Everybody knows about the first technology; let me tell you about the second. First you plant seeds, which are the raw material from which automobiles are constructed. You wait a few months until wheat appears. Then you harvest the wheat, load it onto ships, and sail the ships eastward into the Pacific Ocean. After a few months, the ships reappear with Toyotas on them.

International trade is nothing but a form of technology. The fact that there is a place called Japan, with people and factories, is quite irrelevant to Americans’ well-being. To analyze trade policies, we might as well assume that Japan is a giant machine with mysterious inner workings that convert wheat into cars. Any policy designed to favor the first American technology over the second is a policy designed to favor American auto producers in Detroit over American auto producers in Iowa. A tax or a ban on “imported” automobiles is a tax or a ban on Iowa-grown automobiles. If you protect Detroit carmakers from competition, then you must damage Iowa farmers, because Iowa farmers are the competition.

The task of producing a given fleet of cars can be allocated between Detroit and Iowa in a variety of ways. A competitive price system selects that allocation that minimizes the total production cost. It would be unnecessarily expensive to manufacture all cars in Detroit, unnecessarily expensive to grow all cars in Iowa, and unnecessarily expensive to use the two production processes in anything other than the natural ratio that emerges as a result of competition.

That means that protection for Detroit does more than just transfer income from farmers to autoworkers. It also raises the total cost of providing Americans with a given number of automobiles. The efficiency loss comes with no offsetting gain; it impoverishes the nation as a whole.

Since I have not seen Marginal Revolution do this feature for a while, I will try to fill in.  "pie tops" -- sneakers with a button for ordering a pizza.

For years I have been critical of US Forest Service (USFS) fire suppression operations.  For those who are not familiar, because they own so much land in the very dry west, the US Forest Service is -- by far -- the largest firefighting agency in the country.  It spends billions of dollars a year on firefighting and employs tens of thousands for workers in doing so -- some specifically hired for fire, many others detailed from regular jobs to specific fires.  Basically, in the late summer, Forest Service offices are practically cleared out as everyone is off on fire detail, and those who are still around have no money to spend because it all has been swept into fire.

It is hard to publicly criticize firefighting operations for many of the same reasons that it is hard to criticize the police -- people will say that they are so brave and perform an indispensible service.   Granted.  But the USFS process for managing and funding firefighting is totally broken.  This is not solely the agency's fault -- Congress shares a lot of the blame.  But whatever the cause, firefighting has become (in my observation of the agency) a financial accountability-free zone.  There are no budgets for fire.  No competitive bidding for services and products.   All the rules are lifted, and the agency simply spends like crazy.  People have made small fortunes inventing things fire crews might need (e.g. portable shower buildings) and selling or renting them to the USFS for huge sums of money.  And USFS employees don't care because they understand it to be an environment where the normal rules do not apply.

And the USFS employees love it.  The structure and schedules and requirements of their day jobs are lifted, with little danger except for a very few in the front line crews.  I have always described what I have seen as a cross between a summer camp and a fraternity outing.

And perhaps I was more correct than I knew.  Apparently, once the tone is set for a low-accountability environment -- even if the relaxed rules were really only supposed to apply narrowly to financial issues -- it can spread to other behaviors.

Michaela Myers said she was first groped by her supervisor after a crew pizza party last summer, shortly after starting a new job as a firefighter with the U.S. Forest Service. She was 22 and excited about the job. She had worked out diligently to prepare for the season, running and hiking with a heavy pack. She is from the Pacific Northwest, and had always loved the outdoors and a challenge.

She remembers her supervisor, a Forest Service veteran, offering her beers at a crew member’s house after dinner. He told her he was glad she was on the crew because she was “sexy” and had “a nice ass,” she said. According to her account, he led her to a couch, rubbed her butt as she sat down, and slid his hand between her legs. Myers was shocked and upset, but didn’t stop him. She had heard from other crew members that this manager could fly off the handle, and didn’t want to make a scene.

“You don’t feel like you can say ‘no’ loudly to your supervisor,” she said. “I keep looking back on it and wishing I could have just punched him or something.”

According to Myers, the harassment and groping continued for the rest of the summer. When she confided in a fellow crew member, he told her this was an unfortunate reality for a female firefighter. She had a choice, she recalls him saying: report it and face retaliation, or do nothing and stay in fire.

Updated:  The PBS report was changed after I first posted it, and I have edited the quote to match the current text.  PBS wrote below their article this update: "This story has been updated. The name of the Forest Service supervisor in Oregon has been removed. We stand by our reporting and thank the multiple women who went public for this story."

This is, plus or minus, a reprint of an article on trade policy written 12 years ago at our Chinese sister publication, Panda Blog.

Our Chinese government continues to pursue a policy of export promotion, patting itself on the back for its trade surplus in manufactured goods with the United States. The Chinese government does so through a number of avenues, including:

• Limiting yuan convertibility, and keeping the yuan's value artificially low
• Selling exports below cost and well below domestic prices (what the Americans call "dumping") and subsidizing products for export

It is important to note that each and every one of these government interventions subsidizes US citizens and consumers at the expense of Chinese citizens and consumers. A low yuan makes Chinese products cheap for Americans but makes imports relatively dear for Chinese. So-called "dumping" represents an even clearer direct subsidy of American consumers over their Chinese counterparts.  We Chinese send our resources, our capital, and the output of our most productive workers overseas to be enjoyed by American consumers, and what do we get in return?  A trillion dollars or so of foreign exchange surpluses that our government invests for 2% returns in US government bonds.  Yes, that's right -- not only are we subsidizing American consumers, but we are subsidizing their taxpayers by financing their government's debt at low interest rates.

This policy of raping the domestic market in pursuit of exports and trade surpluses was one that Japan followed in the seventies and eighties. It sacrificed its own consumers, protecting local producers in the domestic market while subsidizing exports. Japanese consumers had to live with some of the highest prices in the world, so that Americans could get some of the lowest prices on those same goods. Japanese customers endured limited product choices and a horrendously outdated retail sector that were all protected by government regulation, all in the name of creating trade surpluses. And surpluses they did create. Japan achieved massive trade surpluses with the US, and built the largest accumulation of foreign exchange (mostly dollars) in the world. And what did this get them? Decades of recession, from which the country is only now emerging, while the US economy happily continued to grow and create wealth in astonishing proportions, seemingly unaware that is was supposed to have been "defeated" by Japan.

We at Panda Blog believe it is insane for our Chinese government to continue to chase the chimera of ever-growing foreign exchange and trade surpluses. These achieved nothing lasting for Japan and they will achieve nothing for China. In fact, the only thing that amazes us more than China's subsidize-Americans strategy is that the Americans seem to complain about it so much. They complain about their trade deficits, which are nothing more than a reflection of their incredible wealth. They complain about the yuan exchange rate, which is set today to give discounts to Americans and price premiums to Chinese. They complain about China buying their government bonds, which does nothing more than reduce the costs of their Congress's insane deficit spending. They even complain about dumping, which is nothing more than a direct subsidy by China of lower prices for American consumers.

And, incredibly, the Americans complain that it is they that run a security risk with their current trade deficit with China! This claim is so crazy, we at Panda Blog have come to the conclusion that it must be the result of a misdirection campaign by the CIA-controlled American media. After all, the fact that China exports more to the US than the US does to China means that by definition, more of China's economic production is dependent on the well-being of the American economy than vice-versa. And, with well over a trillion dollars in foreign exchange invested heavily in US government bonds, it is China that has the most riding on the continued stability of the American government, rather than the reverse. American commentators invent scenarios where the Chinese could hurt the American economy, which we could, but only at the cost of hurting ourselves worse. Mutual Assured Destruction is alive and well, but today it is not just a feature of nuclear strategy but a fact of the global economy.

I have been a home theater hobbyist for years, though with projection TV's rather than LCD panel TV's.  However, from what I know, this appears to be a good list of things to do and not do in setting up your TV.  TV's have historically been set up to look good in very bright showrooms under fluorescent lighting, but this is not how you likely watch the TV at home.  In fact, the best thing you can do to improve the look of your picture for cinematic content actually has nothing to do with the TV -- darken your viewing room.  They key to a really good picture is in the dark areas of the picture, not the bright areas.  Tricks to up the contrast and brightness of the TV can kill the detail in the dark areas.  The only way to really see what is there is to watch in a dark room.

The hardest thing to do at first is to get the color temperature correct.  Thankfully, most TV's today generally have a color temperature setting that is correct (20 years ago one had to have a technician do a manual re-calibration).  The right color temperature is around 6500K but TV's and computer monitors often ship with color temperatures boosted way up above 9000K, well up into the blue range because this makes the TV appear brighter in a TV showroom (at higher temperatures a neutral grey will look bluer, at lower temperatures it will look redder).  Unfortunately, your eyes are used to looking at high temperature monitors and TVs and so when you first change to the correct setting things may look to red.  Live with it a while.

This morning on my short drive to work I heard a commercial that reminded me of the glory days of 2005.  First, it was a commercial for a home equity loan, a pitch that largely disappeared for a decade or so.  Second, though, the pitch said that you could take the money and put in in the stock market or -- I am not kidding on this, I think I got it word for word -- "buy the dip in the Bitcoin market".    There you have it:  Borrow against the theoretical unrealized price gain in your home and use it to market-time Bitcoin prices.  Take your paper gain in one bubble and apply it to a bigger bubble.  Nothing could go wrong there.

I have been watching the second season of Victoria on PBS (quite good, I think) and much of it has covered the famines of the 1840's and the debate over the Corn Laws.  At the time, it seems that average people understood that the British tariffs on imported food were in place solely to protect the agricultural profits of aristocratic (and by definition well-connected) landowners while hurting the country as a whole by raising food prices for every consumer and contributing to the famines that were sweeping Ireland and parts of England.

Trump's proposed tariffs are simply a disaster.  A lot of the media seems to believe the biggest reason they are bad is that they will incite retaliatory tariffs from other countries, which they almost certainly will.  But even if no one retaliated, even if the tariffs were purely unilateral, they would still be bad.  In case after case, they are justified as increasing the welfare of a certain number of workers in targeted industries, but they hurt the welfare of perhaps 100x more people who consume or work for companies that consume the targeted products.  Prices will rise for everyone and choices will be narrowed. This is Bastiat's classic seen and unseen -- the beneficiaries (say in the steel industry) are easy to identify, but the individual consumers who change their purchasing plans or industries that change their investment plans are frequently invisible.  It is the height of childish public policy to pretend those hurt by this don't exist merely because they can't easily be interviewed on TV.

Well, not completely invisible:

 A proposed expansion of an Exxon Mobil Corp oil refinery could be impacted by the Trump administration’s plan to place a 25 percent tariff on imported steel, a source familiar with the matter said on Thursday.

Exxon has been considering increasing its North American crude refining capacity since at least 2014, the company has said, but has not disclosed a final decision. An Exxon spokeswoman was not available for immediate comment.

 The nation’s largest oil producer has been weighing adding new processing capacity to its 362,000 barrel-per-day Beaumont, Texas, plant that could make it the nation’s largest. (Reporting by Erwin Seba Editing by James Dalgleish)