Coyote Blog

The amount I know about Belgium could probably be written on a post card (except for its role in military history, which is substantial due to its location and its famously brave stand against Germany in the opening act of WWI).  So this article about the tremendous split developing between French (Wallonia) and Flemish (Flanders) Belgium was new to me.  In particular, I noted this:

Every year 6.6% of Flanders' GDP is spent on welfare in Wallonia.
The money has not helped the Walloons but turned them into welfare
addicts. Belgium is a case study of how socialist redistribution
schemes lead to economic perversions.

It appears that 60% of Wallonians are either unemployed or on the government payroll (roughly the same thing in Europe), vs. just 28% in Flanders.  And this despite the fact that Brussels and the EU HQ are in Flanders.

Well, thanks a hell of a lot, mainstream media, for doing such a good job of delivering the facts.   QandO, in discussing the issues behind my earlier post on testing for mad-cow disease (BSE) helpfully includes this link to the EU's BSE testing site (the home of the testing program supposedly so much more enlightened than ours):

No method will detect BSE early in the infection. BSE has an average incubation period of 4-6 years. Therefore the EU testing programmes are targeted at animals over 30 months. The PrPres has not been detected in bovine brain or other nervous tissue very early in the disease and infectivity has not been shown either. In experimental infection where very high doses were administered, infectivity has been found in the ileum, part of the intestine. This has not been detected in natural infections.

Robert Fulton, via QandO, supplies the one other missing fact:  Most US cows are slaughtered as two-year-olds.  So they can't have BSE, because you can't have a five-year incubation disease in a 2-year-old animal.  And further, even if the animal has latent BSE infection, which has never been shown to harm humans, it can't be detected by current technology!  Even those superior Euros only test at 30 months.  This is an issue for aging dairy cows sent to slaughter, not for most of the US beef supply.

Well, those facts certainly would have been good to know, though in reading at least 20 mad cow articles in the MSM over the years, I have never seen it mentioned.  And it certainly hasn't been mentioned in the current testing brouhaha. 

I stand by my statement that private companies should be allowed to compete on full testing if they wish.  Hell, most of the stuff that is labeled "organic" and sells at a premium price is probably no safer than normal stuff, but companies are welcome to try to profit from the public's perceived need for organic stuff.

Assuming this is the reason behind the administration's decision to test only 1%, for which they have been chastised for years, it is yet another example of Bush's ham-handedness on communication.  Why not change the policy from "1% of all steers" to "100% of all beef from cattle over 36 months old." The latter would not represent much more testing, but would sure calm people a lot more than the other statement.

The EU has an odd definition of the term "free trade."  Apparently, low taxes, in the EU's world, are irreconcilable with free trade.

In a move that is both remarkable and disturbing, the European
Commission plans to file a complaint - and threaten protectionist trade
barriers - because attractive Swiss tax policies are supposedly a
violation of a free-trade accord. The bureaucrats in Brussels are not
arguing that Switzerland is imposing barriers against EU products.
Instead, the Commission actually is taking the position that low taxes
are attracting businesses that might otherwise operate in high-tax
nations. The implications of this radical assertion are
breathtaking. It certainly is true that a nation with more
laissez-faire policy will attract economic activity from neighbors with
more burdensome levels of government. But if this migration of jobs and
investment is a "distortion" or trade, then the only "solution" is
complete and total harmonization of all taxes (and regulations,
spending, etc). If the Euro-crats succeed with this argument at the
European level, it will be just a matter of time before similar cases
are filed at the World Trade Organization.

As a strong libertarian, I have all kinds of problems with the government in this country.  However, I always scratch my head when people try to make the case that certain European countries are more free and open than the US.  The facts just don't bear this out.  First, the US at least has a written Constitution that make some attempt to define government's purpose as the protection of individual rights.  Now, our government fails at this all the time, but at least there is something there in writing we can try to hang on to;  European countries have nothing like it.

In particular, Europe has never had the strong tradition of free speech that we have in the US.  Often folks in the US, particularly on the left, confuse Europe's receptiveness to leftish comments by Americans with general openness to free speech.  In fact, just the opposite is true:

People who question the official history of recent
conflicts in Africa and the Balkans could be jailed for up to three
years for "genocide denial", under proposed EU legislation.

Germany,
current holder of the EU's rotating presidency, will table new
legislation to outlaw "racism and xenophobia" this spring.

Included in the draft EU directive are plans to outlaw Holocaust denial, creating an offence that does not exist in British law.

But
the proposals, seen by The Daily Telegraph, go much further and would
criminalise those who question the extent of war crimes that have taken
place in the past 20 years.

For years, I and most free speech advocates in this country have criticized the holocaust-denial laws as the mother of all slippery slopes.  Holocaust deniers should have the same speech rights as any other moonbat out there.  Now, you can see the EU starting to slide down this slope, as more speech is criminalized.  The article goes on:

If agreed by EU member states, the legislation is likely to declare
open season for human rights activists and organisations seeking to
establish a body of genocide denial law in Europe's courts.

Who needs jackbooted government dictators when we have "human rights activists" available to muzzle our speech. 

New numbers for US vs. European CO2 growth have been making the rounds, based on a Wall Street Journal article today.  Jonathon Adler at Volokh has the key numbers for CO2 growth rates:

	U.S.	E.U.
1990-1995	6.4%	-2.2%
1995-2000	10.1%	2.2%
2000-2004	2.1%	4.5%

The Wall Street Journal tries to make the point that maybe the US somehow has a better approach to CO2 reduction.  Here is the reality:  Neither the US or the EU has done anything of substance to really reduce CO2 production, because at the end of the day no one can tolerate the political and economic costs associated with severe reduction using current technology.

But there is a story in these numbers.  That story goes back to the crafting of the Kyoto treaty, and  sheds an interesting light on what EU negotiators were really trying to achieve.

The Kyoto Treaty called for signatories to roll back CO2 emissions to 1990 levels.  Since Kyoto was signed in the late nineties, one was immediately led to wonder, why 1990?  Why not just freeze levels in place as they were currently?

The reason for the 1990 date was all about counting coup on the United States.  The date was selected by the European negotiators who dominated the treaty process specifically to minimize the burden on Europe and maximize the burden on the US.  Look at the numbers above.  The negotiators had the 1990-1995 numbers in hand when they crafted the treaty and had a good sense of what the 1995-2000 numbers would look like.  They knew that at that point in time, getting to 1990 levels for the EU was no work -- they were already there -- and that it would be a tremendous burden for the US.  Many holier-than-thou folks in this country have criticized the US for not signing Kyoto.  But look at what we were handed to sign - a document that at the point of signing put no burden on the EU, little burden on Japan, no burden on the developing world, and tremendous burden on the US.  We were handed a loaded gun and asked to shoot ourselves with it.  Long before Bush drew jeers for walking away from the treaty, the Senate voted 99-0 not to touch the thing until it was changed.

But shouldn't the European's get some credit for the 1990-1995 reduction?  Not really.  The reduction came from several fronts unrelated to actions to reduce CO2:

• The European and Japanese economies were absolutely on their backs, reducing economic growth which drives CO2 growth.  I have not looked up the numbers, but the 1990s are probably the time of the biggest negative differential for the European vs. US economy in my lifetime.
• The British were phasing out the use of carbon-heavy domestic coals for a variety of reasons unrelated to carbon dioxide production.
• German reunification had just occurred, so tons of outdated Soviet inefficient and polluting industrial plant had just entered the EU, and was expected to be shut down and modernized for economic reasons over the 1990's.  The negotiators went out of their way to make sure they picked a date when all this mess was in their base number, making it easier to hit their target.
• The 1990 also puts Russia in the base.  Since 1990, as the negotiators knew, the Russian economy had contracted significantly.
• At the same time the American economy was going gangbusters, causing great envy among Europeans.

Kyoto was carefully crafted to make America look like the bad guy.  The European's goal was to craft treaty responsibilities that would require no real effort in Europe, with most of the burden carried by the US.  But times change, and the game is catching up with them.

I could spend all day discussing the follies of anti-trust law.  But one of the memes that still seems to hang on is that anti-trust was designed as a form of consumer protection, with the government protecting consumers from the monopoly power of consolidated enterprises.

I am not enough of a business historian to comment on whether anti-trust has ever been used for consumer protection, but it is clear that it is not any more.  That has been one very expensive lesson we can all learn from the Microsoft anti-trust cases, both in the US and Europe. 

If you remember the US cases, Sun, Netscape, Oracle and other Microsoft competitors, having failed to best Microsoft in the marketplace, went running to the FTC to get them to sit on Microsoft for them.  And they were successful, with a series of high-profile settlements.  Nowhere was there even a hint that these cases were about the consumer -- in fact, the settlement demanded was to remove functionality and free add-on components from the Windows OS, making it less attractive to consumers.

We can see this again in the recent decision by an EU court, which seems very happy to use anti-trust law to step on an American competitor in favor of local companies (my emphasis added).

Microsoft was fined $357 million, on top of the record $613 million
fine it paid in the original order. It also faces new penalties of
$3.82 million a day beginning July 31....

The commission has said that it is concerned about Vista's Internet
search capabilities and method of managing digital rights. Regulators
also are worried about the implications for competitors of a new
technology for saving documents that is similar to the Portable
Document Format developed by Adobe Systems Inc.

Microsoft's chief crime is not doing enough to help competitors compete against them:

The fines announced Wednesday come after the EU told Microsoft to
supply "complete and accurate technical specifications" to developers,
so they could make software for servers that help computers running
Windows, printers and other devices on a network talk to each other. It
accused Microsoft of using its monopoly position with Windows to elbow
into the server software market.

Kroes said Microsoft's earlier efforts had not come even close to a readable manual developers could use.

Again, settlements are taking the form of defeaturing the product consumers get:

Smith said Microsoft had suggested various ways it could offer Vista in
Europe, to address concerns about XPS. One option is to ship Vista
without it, while another is to include ways for PC makers or others to
either remove certain XPS utilities or make them invisible.

And, by the way, this certainly gives one a lot of confidence in the due process the courts in Europe are going to give you as an American:

"In some ways, these fines are only partially about complying with the
... prior case, and half about sending a message to Microsoft that the
European Commission is not going away,"

You get that?  It sounds like a mafioso beating someone up because they didn't show him enough respect.

By the way, I am frustrated with Microsoft and their pricing as well.  Rather than run to the government, though, I have employed this and this and this.

Silflay Hraka has a nice post on Kyoto and Global warming.  I expressed many of the same thoughts here and here, though Hraka is much more concise and eloquent about it.  However, I missed this bit on Russia:

Europe as a whole may be able to meet its goals thanks to huge potential market in emissions trading brought about by the unprecedented collapse of heavy industry in the former nations of the Warsaw Pact and Soviet Union--graphically portrayed in this pdf from the Guardian--but actual levels of European CO2 output will not fall at all.

That's one reason it was so important for the EU for Russia to ratify Kyoto. Ratification of Kyoto allows that nation to enter into the emissions market, where the EU desperately needs it.

This makes a lot of sense.  I explained here how the Kyoto protocols, and particularly the 1990 date, were carefully structured to slam the US and make meeting targets relatively easy for Europe.  In short, 1990 was the beginning of a massive economic expansion for the US and a decade-long slump for Japan and Europe.  In addition, 1990 marked the date of German reunification and the fall of the Soviet Union -- since this time, thousands of horribly inefficient pollution-producing Soviet industries have shut down, giving Europe a huge reduction credit with no work.  Switch-over from coal to North Seas oil and gas has done the same for Britain.

Europe has never had the strong tradition of or protection of free speech and press that we enjoy in the US.  For years, I have criticized the use of libel laws in Europe to stifle speech -- similar things are attempted in the US, but seldom get very far in the courts.

Now comes this proposal (courtesy of Captains Quarters):

The Council of Europe has called on its 46 member-states to introduce legislation on the right of reply to correct false information on online media.

It said the Committee of (Foreign) Ministers, executive of the European human rights watchdog body, had adopted a recommendation on the right to reply for online Internet media.

This recommended that members consider introducing legislation on the "right of reply or any other equivalent remedy, which allows a rapid correction of incorrect information in online or off-line media......"

Fortunately, our government does not have any legal or constitutional right of reply in any media, though the implications for the Internet are interesting since about 20% of my readers are in Europe, if you can trust my referral logs.  So lets give it a test:  the EU is a bureaucratic, statist nightmare.  There, lets see if that gets a response.

Back in Texas in the 1980's, a number of large tottering banks merged, in an attempt at survival.  The result was called two drunks propping each other up, and it seldom worked.  The classic example is the Pennsylvania-New York Central railroad merger which ended in one of the most catastrophic bankruptcies of all time, and the largest industry nationalization in US history.

It was exactly these precedents that occurred to me today when I heard that Sears and Kmart are merging.  Scrappleface apparently was thinking the same thing, but is much funnier than I am.

UPDATE:

Other good examples in the comments.  I fell over laughing at "the EU".