Coyote Blog

How can you resist that title?  I took this from Stephen Ambrose's wonderful Citizen Soldiers:

Patton entered the town [of Bitburg, Germany] from the south while the fighting was still going on at the northern edge of town.  "In spite of the fact that the shells were falling with considerable regularity, I saw five Germans, three women and two men, re-roofing a house.  They were not even waiting for Lend-Lease, as would be the case in several other countries I could mention [including France]."   Dozens of GIs make the same point:  in Italy and France, the residents left the rubble in the streets, waiting for someone else to clean it up, while in Germany the residents were cleaning up as soon as the battle passed their villages.

Does this make anyone else think of Katrina and New Orleans?  I guess they don't call it the French Quarter for nothing.

Economics have a concept called the "broken window fallacy" that many of the media to this day do not understand.  Here is an example:  Every hurricane season, the media always writes a "silver lining" story about how recovery from a devastating hurricane spurred the local economy.  One might assume from this reasoning that it is good to go around breaking windows, since one will make a lot of work for glaziers and boost the economy.  The problem is what is not measured.  What would the money that was spent on window replacement have been spent on instead?  It is a safe presumption that had they not had to repair storm damage, they would have spent the money on something more productive  (test:  if this were not true, everyone would be breaking their own windows).  Advocating the broken window fallacy is a bit like saying that stealing money from banks would increase the savings rate, since people would have to deposit even more money to replace that which was stolen.

Anyway, I bring this example up because today I saw the most amazing example of the broken window fallacy I have ever seen, via Kevin Drum and Business Week:

 Business Week's cover story in their current issue tells us that healthcare inefficiency is what's keeping the American economy afloat:

The
very real problems with the health-care system mask a simple fact:
Without it the nation's labor market would be in a deep coma.  Since 2001, 1.7 million new jobs have been added in the health-care sector, which includes related
industries such as pharmaceuticals and health insurance. Meanwhile, the
number of private-sector jobs outside of health care is no higher than
it was five years ago.

.... The U.S. unemployment rate is 4.7%, compared with 8.2% and
8.9%, respectively, in Germany and France. But the health-care systems
of those two countries added very few jobs from 1997 to 2004, according
to new data from the Organization for Economic Cooperation &
Development, while U.S. hospitals and physician offices never stopped
growing. Take away health-care hiring in the U.S., and quicker than you
can say cardiac bypass, the U.S. unemployment rate would be 1 to 2
percentage points higher.

....Both sides can agree that more spending on information
technology could reduce the need for so many health-care workers. It's
a truism in economics that investment boosts productivity, and the U.S.
lags behind other countries in this area. One reason: "Every other
country has the payers paying for IT," says Johns Hopkins' Gerard
Anderson, an expert on the economics of health care. "In the U.S. we're
asking the providers to pay for IT" "” and they're not the ones who
benefit.

Let's go back to slow-motion instant replay.  What was that first line?

Business Week's cover story in their current issue tells us that healthcare inefficiency is what's keeping the American economy afloat

I am not seeing things, am I?  Did he really write that it is the inefficiency of one of the largest and most ubiquitous and perhaps most important industries in the country that is propelling the economy?  Do I really have to state the obvious?  Do you really think that if all those people were not hired to push paper around in health care they would be sitting unemployed today?  What about all the money either consumers or corporations would be saving from more efficiency -- would that really not have been spent on something else?

In a way, I guess this is sort of consistent with Drum's position on Wal-Mart.  If Wal-Mart is detroying the economy (according to him) by bringing increased productivity to retail, I guess this argument that health care inefficiency helps the economy is at least consistent.  Maybe if we could get our state drivers' license agency folks to take over the whole economy, we would have a boom! And the old Soviet Union must have been an economic powerhouse!

This is some of the worst economics I have seen in a while.  Lefties like Drum often rail against conservatives for being anti-scientific in their opposition to teaching evolution or approving the morning-after pill, but for God sakes the most fundamentalist Bible-belt home schooled conservative Christian probably knows more about the science of evolution than journalists understand about the science of economics.

Not really forewarned about this social trend in advance, my family was surprised to find that many restaurants in smaller English towns would not let us in with our children.  I wrote about the strange Chitty-Chitty-Bang-Bang-esque reactions we got to our children here.

Reader Tom Van Horn sends in this update from Newsweek:

a recent British study showed a house's value drops by 5 percent if
neighbors move in with teenage kids. Hotels are catering to the
childless, too; Italy's La Veduta country resort promises, "Your Tuscan
holiday will not be shattered by the clamor of children." In Rome, many
restaurants make it clear that children are not welcome"”in some cases
by establishing themselves as "clubs," where members must be older than
18 to join.

*shrug*  There are times when my wife and I like to get away from kids too, and we have a couple of them.  I know a few couples who have chosen to remain childless and I can assure you they are sick and tired of being asked about their childlessness like it was some kind of disease.  I am sure they will welcome a sense of normalcy for their chosen way to live.  Combining this trend with my observation that Parisians will take their dog anywhere, it is probably not long before there are public places in Paris where dogs are welcome but kids are not.

That doesn't mean that everyone shares my willingness to let folks live in peace like they choose.  Certain politicians around Europe seem to want to intervene (and isn't that why people become politicians in the first place -- to force other people into making choices that they would not have made for themselves?)

Politicians and religious leaders warn darkly of an "epidemic" of
childlessness that saps the moral fiber of nations; they blame the
child-free for impending population decline, the collapse of pension
systems and even the rise in immigration. In Japan, commentators have
identified the "parasite single" who lives off society instead of doing
his duty to start a family

In Germany, where the childless rate is the
highest in the world, at 25 percent, the best-seller lists have been
full of tomes forecasting demographic doomsday. In "Minimum," the
conservative commentator Frank Schirrmacher describes a "spiral of
childlessness," where a declining population becomes ever more
reluctant to have kids. Media reports have stigmatized the "cold career
woman""”one such recent article came with mug shots of childless female
celebs"”accusing them of placing their jobs before kids. Never mind that
Germany trails its neighbors in the availability of child care, or the
amount of time men spend helping around the house.

From
Germany to Russia, there is increasing talk of sanctions against the
childless. In Slovakia, a leading adviser on the government's Strategic
Council on Economic Development proposed in March to replace an
unpopular payroll tax with a levy on all childless Slovaks between the
ages of 25 and 50. In Russia, where the birthrate has dropped from 2.3
in the 1980s to 1.3 today, a powerful business lobby has called for an
income-tax surcharge on childless couples. In Germany, economists and
politicians have demanded that public pensions for the childless be
slashed by up to 50 percent"”never mind that such pensions were invented
as an alternative to senior citizens' having to depend on their
offspring.

Not being much of a pro soccer fan, I have been surprised to find that the sport can be compelling, at least in stretches.  For example, the 30 minutes of overtime between Italy and Germany was quite exciting.

However, I think the sport should be ashamed at the state of affairs in its refereeing.  In any one game, you might see players rolling around on the ground faking injuries as many as 15 or 20 times.  It became a source of immense amusement for my son and I to see not only how much faking was going on, but how often the faking involved holding a body part that seemed unrelated to any contact  (e.g. holding their head as if they received a concussion when they were accidentally tripped).  If these were all real injuries, the field would look like Omaha beach by the end of the game.

Why do they do it?  Because the referees reward them for it, of course.  It was pretty clear that on many occasions acting and injury-faking turned accidental falls into penalties and minor penalties into yellow and red cards.  It's disgraceful.  I know refereeing is hard given the speed of today's athletes, but for god sakes soccer has got to be an order of magnitude easier to referee than say basketball or particularly American football. 

Even more, I wonder why fans tolerate the pretend injuries?  Can you imagine Pittsburgh Steelers fans fondly embracing a wide receiver that faked ankle injuries two or three times a game to try to get an interference call?

Most all the regulation goals in later games of the world cup have been
scored on penalty kicks.  It seems that the game has devolved into
lofting the ball into the box and then hoping to draw a penalty, sort
of like a hail Mary play at the end of a football game.  I would love
to see the game opened up a bit to allow more scoring of real goals in
regulation -- how about eliminating the offsides penalty?

Per the NY Times:

As he left the soccer field after a club match in the eastern German
city of Halle on March 25, the Nigerian forward Adebowale Ogungbure was
spit upon, jeered with racial remarks and mocked with monkey noises. In
rebuke, he placed two fingers under his nose to simulate a Hitler mustache and thrust  his arm in a Nazi salute.

In April, the American defender Oguchi Onyewu, playing for his
professional club team in Belgium, dismissively gestured toward fans
who were making simian chants at him. Then, as he went to throw the
ball inbounds, Onyewu said a fan of the opposing team reached over a
barrier and punched him in the face....

Players and antiracism experts said they expected offensive behavior
during the tournament, including monkey-like chanting; derisive
singing; the hanging of banners that reflect neofascist and racist
beliefs; and perhaps the tossing of bananas or banana peels, all
familiar occurrences during matches in Spain, Italy, eastern Germany
and eastern Europe.

I am sure many American black athletes still have stories to tell about encountering racism, but didn't we at least climb out of this kind of pit of overt racism forty years ago or so?  While European sophisticates have looked down their noses at US racial problems, European monocultures seem now not to be ahead of us but behind us in dealing with ethnic diversity.  Though there do seem to be plenty of Americans who long to take our country back to being a monoculture.

Every small business probably has stories about vendors who are particularly difficult to work with.  Let me describe my most difficult and irritating vendor, someone who sells me products that we resell in our stores:

• Most vendors try to set your retail price for you, but are seldom successful.  Only in countries like Germany that make retail discounting illegal are such attempts universally successful.  However, this one vendor is always successful at setting my retail price.
• Most vendors allow me a retail gross margin of at least 30-50% of sales to help me to make money on the sale of their product.  They like me to make money, since that gives me the incentive to sell more of their product.  However, this one particular vendor only allows me a 5% gross margin.  Ironically, this products is on of the most difficult and time-consuming for our stores to sell, requiring ten minutes of sales time to gather all the necessary customer information and complete the transaction.  Every single one we sell is a dead loss to us.
• Every small business has some vendors it struggles with on credit terms.  I usually have to fill out a detailed credit application, and as the owner have to personally guarantee the company's payment on the account.  Sometimes vendors will require a few orders be consummated COD so we can develop a history before they will go to a 30-day invoicing approach.  However, this particular vendor goes even further.  I had to set up a dedicated bank account into which I deposit funds for this vendors products every week.  In addition, I had to obtain a $4000 bond to cover any non-payment in the account, and I have to hold the bond as long as I want to do business with this vendor -- in other words, there is no credit given for a long track record of performance on the account.
• This particular vendor has an "in" with the State of Colorado, which protects it by allowing no other competitive product to be sold in the state.

Give up?  Well, most of you have probably guessed that this vendor is... the government!  Or specifically, the Colorado Department of Wildlife and the specific product discussed is fishing licenses.  That is why this particular vendor can get away with practices that no company that actually has to compete in the market place would ever attempt, and, in a couple of cases, gets aways with practices that would be illegal for a private company.

When I bought this company, we used to sell fishing licenses at many of our locations.  I have pared this down to only the bare minimum number of locations, like marinas, where customers absolutely expect me to be able to sell them a license.

Groups like the NAACP are actively pursuing claims for compensation from both corporations and governments for slavery in the United States 140 or more years ago (that's 7+ generations in the past).  The particular article linked is on seeking reparations from corporations, but many efforts exist to extract compensation from taxpayers, e.g. you and I.

Lets forget for a minute why I owe money for what my great-great-great-great-great grandfather did to your great-great-great-great-great grandfather.  Lets even forget that my great-great grandparents and all preceding generations of my family did not even live in this country.  Forget even about whether a statute of limitations has been exceeded by waiting 140+ years and seven or more generations to file a claim.

Lets however ask the question of what damages are incurred by the current generation of African-Americans who are decedents of American slaves.  Clearly the slaves themselves were irreparably harmed by slavery, but lets talk about the people who are actually bringing the suit.

If it were not for slavery, then many African-Americans today would be ... in Africa.  And in Africa, they would very, very likely be in horrible mind-numbing poverty (see Live8).  Its hard to pin down a number, but estimates of average incomes in Sub-Saharan Africa are between $600 per year and $1,770 per year.  By comparison, the average income of an African American was $14,397 in 1999 and is certainly higher today, since black incomes are growing rapidly in this country and actually falling in Africa.  And African American life expectancies, which still have some catching up to do with whites in the US, are nevertheless 10-25 years longer than their counterparts in the old country.  Everything from AIDS survival rates to education levels to VCR ownership and Internet access are far superior for American blacks than blacks in Africa.  So in this context, how does one demonstrate economic damages from slavery?

If I were an African American, I would give thanks every day that my ancestors endured the torture and humiliation and horror of slavery so that today my family could live, despite frustrations that sill exist for blacks, in relative wealth and prosperity and good health instead of some sub-Saharan shit-hole.

One Note:  I have certainly gotten some interesting emails on this one, including at least one "you will roast in hell" offering.  One comment I have gotten several times is "But there is no statute of limitations on murder, so how can there be on slavery?"   To which I answer - yes, there is not statute of limitations on murder, BUT, if we fail to catch a murderer in his lifetime, we don't throw his kids or grandkids in jail in his stead, nor do we ask his grandkids to pay reparations for his murders.  If we suddenly could absolutely prove the identity of Jack the Ripper, would we track down all his descendants and sue them for his actions? 

The second comment I get, presumably from African-Americans by the pronouns "I" and "we" used in the emails, is "we had our heritage ripped away".  I will confess that I may have a blind spot on this loss-of-heritage issue.  My great-grandparents were forcibly exiled from Germany about a century ago, and I don't shed any tears for my lost heritage, particularly given Germany's atrocious actions during the twentieth century.  I am thrilled to be an American and reject or at least ignore my German heritage.  I am not at all saddened my disconnectedness from the Kaiser or Hitler, and am not sure in turn that if I was black I would feel a loss from not being closer to Robert Mugabe or any of a zillion other repressive African regimes. 

By the way, in terms of being disconnected from one's heritage,  I have no way to prove it or get the numbers, but I would be willing to be that there are more college students right now studying black and/or African history in the US than in the whole of Africa.

I am a little late linking this, but the world is in the midst of one of those pure, tightly controlled experiments to demonstrate the true price of socialism.  And, as usual, no one will learn from it.  Via Jane Galt:

It is depressing to look back at history and see how regularly the same
nice-sounding idea--"let's take the land from the rich people who unjustly own
it and give it to those who need it"--turns into tragedy for everyone. It's even
more depressing to realise that despite the seeming predictibility of the
result, lots of people want to do it anyway.

The Atlantic, which she quote in a follow up post, has more detail:

Mugabe decided on what he called "fast-track land reform" only in February of
2000, after he got shocking results in a constitutional referendum: though he
controlled the media, the schools, the police, and the army, voters rejected a
constitution he put forth to increase his power even further. A new movement was
afoot in Zimbabwe: the Movement for Democratic Change"”a coalition of civic
groups, labor unions, constitutional reformers, and heretofore marginal
opposition parties. Mugabe blamed the whites and their farm workers (who,
although they together made up only 15 percent of the electorate, were enough to
tip the scales) for the growth of the MDC"”and for his humiliating rebuff.

So he played the race card and the land card. "If white settlers just took
the land from us without paying for it," the President declared, "we can, in a
similar way, just take it from them without paying for it." In 1896 Africans had
suffered huge casualties in an eighteen-month rebellion against British pioneers
known as the chimurenga, or "liberation war." The war that brought Zimbabwean
blacks self-rule was known as the second chimurenga. In the immediate aftermath
of his referendum defeat Mugabe announced a third chimurenga, invoking a valiant
history to animate a violent, country-wide land grab...

The drop-off in agricultural production is staggering. Maize farming, which
yielded more than 1.5 million tons annually before 2000, is this year expected
to generate just 500,000 tons. Wheat production, which stood at 309,000 tons in
2000, will hover at 27,000 tons this year. Tobacco production, too, which at
265,000 tons accounted for nearly a third of the total foreign-currency earnings
in 2000, has tumbled, to about 66,000 tons in 2003.

Mugabe's belief that he can strengthen his flagging popularity by destroying
a resented but economically vital minority group is one that dictators elsewhere
have shared. Paranoid about their diminishing support, Stalin wiped out the
wealthy kulak farming class, Idi Amin purged Uganda's Indian commercial class,
and, of course, Hitler went after Jewish businesses even though Germany was
already reeling from the Depression. Whatever spikes in popularity these moves
generated, the economic damage was profound, and the dictators had to exert
great effort to mask it.

Overall, the country has gone from a net exporter of food to outright famine.  For this particular experiment, I am happy to live in the control group.  Stay tuned, as this show is likely to hit the road soon and move to Venezuela. 

GWB seems to have riled lots of folks up over his reference in a recent speech to Yalta.  If you have read any of the comentary from the left, you might be imagining he said all kinds of wild things.  I read much of the commentary before I ever read Bush's words, so I was prepared for a real gaffe.  After reading his speech, I was left wondering if those attacking Bush heard the same speech.  Here is the key paragraph:

As we mark a victory of six days ago -- six decades ago, we are
mindful of a paradox. For much of Germany, defeat led to freedom. For
much of Eastern and Central Europe, victory brought the iron rule of
another empire. V-E Day marked the end of fascism, but it did not end
oppression. The agreement at Yalta followed in the unjust tradition of
Munich and the Molotov-Ribbentrop Pact. Once again, when powerful
governments negotiated, the freedom of small nations was somehow
expendable. Yet this attempt to sacrifice freedom for the sake of
stability left a continent divided and unstable. The captivity of
millions in Central and Eastern Europe will be remembered as one of the
greatest wrongs of history.

I am not sure how you can disagree with this.  I think the US owes Eastern Europe a big appology for selling them out at Yalta.  Now, one can argue that we had some reasons for our actions at Yalta.  First and foremost, we were exhausted from the worst war in history, and no one had the energy to gear up for a new confrontation.  Also, one can argue that it may be 20/20 hindisght that causes us to be more aware of Soviet hegemonic intentions than the actors at the time might have been (though certainly Churchill was fully cognizant of the dangers).  But, no matter how you cut it, small countries like Latvia were wiped out of existance and handed over to the Soviet Union by the Yalta agreement, and Bush's audience was made up of people still stung by this.  I think the comparison to Munich is very apt - the US post-WWII was exhausted and was more than ready to suspend disbelief and hope that appeasing Soviet territorial ambitions would head off a fresh confrontation no one had the will to fight.  Reason's hit and run has a nice roundup and further analysis.

The only explanation I can come upfor the uproar is that FDR, like Reagan and Kennedy, has an incredibly powerful though informal legacy protection society that leaps into action at even the smallest attempt to besmirch his historical halo.  In this case, Bush rightly does not even mention FDR; however, since FDR was the main advocate for pandering to Stalin at Yalta (against Churchill's vociforous but ultimately ignored objections), his defense forces feel the need to jump into action.  I would have hoped that with 3 generations separating us from FDR, we could finally look at him objectively.  He fought a fabulous war, in some sense carrying the whole free world on his shoulders for four years.  But he fumbled the peace, though, and screwed up at Yalta.

UPDATE:  Professor Bainbridge has this nice quote from Latvian President Vaira Vike-Freiberga a few days before Bush's speech:

In Latvia ... the
totalitarian occupation ... of Nazi Germany was immediately replaced by
another "“ that of Stalinist totalitarian communist Soviet Union and was
one that lasted a very long time. The day we shall be commemorating
does have double significance and by coming to the Baltic States
President Bush is, I believe, underscoring this double meaning of these
historic events. 60 years ago when the war ended it meant liberation
for many, it meant victory for many who could truly rejoiced in it.

But for others it meant slavery, it meant occupation, it meant
subjugation, and it meant Stalinist terror. For Latvia the true day of
liberation came only with the collapse of the Soviet Union as it did
for our neighbours Lithuania and Estonia.

Sounds a lot like what Bush said.  Seems like Bush is in pretty good touch with the sentiments of the Latvian people he is speaking to.

There is a widespread notion that the Scandinavian countries somehow have crafted for themselves the highest standard of living in the world.  This never made much sense to me, since I just couldn't believe their socialist economies could really create the wealth needed to support this alleged standard of living.  As it turns out, they can't and don't, and owe their reputation more to PR than reality:

THE received wisdom about economic life in the Nordic countries is
easily summed up: people here are incomparably affluent, with all their
needs met by an efficient welfare state. They believe it themselves.
Yet the reality - as this Oslo-dwelling American can attest, and as
some recent studies confirm - is not quite what it appears....

All this was illuminated last year in a study by a Swedish research
organization, Timbro, which compared the gross domestic products of the
15 European Union members (before the 2004 expansion) with those of the
50 American states and the District of Columbia. (Norway, not being a
member of the union, was not included.)

After adjusting the
figures for the different purchasing powers of the dollar and euro, the
only European country whose economic output per person was greater than
the United States average was the tiny tax haven of Luxembourg, which
ranked third, just behind Delaware and slightly ahead of Connecticut.

The next European country on the list was Ireland, down at 41st
place out of 66; Sweden was 14th from the bottom (after Alabama),
followed by Oklahoma, and then Britain, France, Finland, Germany and
Italy. The bottom three spots on the list went to Spain, Portugal and
Greece.

Alternatively, the study found, if the E.U. was treated
as a single American state, it would rank fifth from the bottom,
topping only Arkansas, Montana, West Virginia and Mississippi. In
short, while Scandinavians are constantly told how much better they
have it than Americans, Timbro's statistics suggest otherwise. So did a
paper by a Swedish economics writer, Johan Norberg.

So Europeans, in terms of being well-off, rank right up there with... Appalachia.  "Jimmy, you have to finish that liver - you know there are starving kids in Norway that would love to have that food."

Anyway, if this topic interests you, of true comparisons of US vs European economies, income distribution, work weeks, etc., Cowboy Capitalism is a good place to start.  (hat tip Instapundit)

For years I have called groups like the Center for Science and the Public Interest the health or food Nazis for their continuing desire for the government to interfere with all of our individual decision-making.  They have even been google bombed with that term, it appears, so I will help -- Food Nazis!

Anyway, Reason has an interesting post linking to a study of Nazi Germany:

In a brief BMJ article, George Davey Smith describes Nazi Germany's pioneering campaigns against smoking, drinking, overeating, and other unhealthy habits. (Robert N. Proctor's 1999 book The Nazi War on Cancer explores this topic in more detail.) "It may seem paradoxical that the robust identification of one of the most important environmental causes of disease of the 20th century occurred in a totalitarian state," Smith writes, referring to Nazi research on the link between smoking and lung cancer.

Uh, no it doesn't seem paradoxical at all that totalitarians would try to micro-manage individual decision-making.

I am reading Olaf Gersemann's book Cowboy Capitalism and enjoying it immensely.  He points out that of the top 20 largest publicly traded companies in the US in 1967, only 11 are even in the top 60 today, much less the top 20.  In contrast, he points out that of the 20 largest German companies in 1967, today, thirty-five years and nearly two generations later, 19 are still in the top 60 and 15 are still in the top 20.

We think of European fascism as having been defeated in 1945, but, at least in terms of fascist economic ideas like the corporate state, it is alive and well in old Europe.  Take France for example.  France is run by an elite group from a couple of universities who circulate and criss-cross paths between government, large corporations, unions, and the military.  This group is loyal to each other first, and to ideology second.  What the US Government stands accused of doing to support Haliburton (forget what actually happened - just take the wildest accusations) happens routinely and as a matter of policy between the French Government and their largest corporations.

Though the US has from time to time made mistakes in this regard (e.g. Chrysler bailout), their actions are nothing compared to the total support that French and German corporations get.  In many industries, the government has gone so far as to fix current business models in place by law, effectively outlawing alternative business approaches (e.g. discounting is illegal in German retailing).  In addition, these countries make entrepreneurship extraordinarily difficult, helping to prevent competition from new upstarts.  For example, Gersemann points out that the cost of organizing a new business entity in the US costs an entrepreneur about a week's pay;  In France and Germany, it costs 4 months pay or over 20x more.

In my article "60 Second Refutation of Socialism, While Sitting on a Beach", I pointed out that wealth is created when people are free to use their mind to envision new things, AND free to pursue this vision without undue barriers.  Europe, in killing entrepreneurship and dynamism, is killing this second criteria for wealth creation.  Propping up aging basic industries, four day work weeks, 8 week vacations, immense public sector employment, and unlimited unemployment benefits may feel good for a while, but they destroy wealth.  Old Europe is like a retired person spending their investment principle:  Quality of life may be good today, but future income and wealth is at risk.

UPDATE

Marginal Revolution has been running a series on some small steps Germany may be taking to change itself.

First, Scrappleface reports:

After a week of tough negotiating by France, Germany and Britain, the Islamic Republic of Iran has conceded to reduce the size of nuclear warheads it will use in the eventual bombing of Paris, Berlin and London.

I might have thought this was humor until I read this line, which seems all too real:

Iran has pledged to stop enriching uranium, while retaining 20 operating centrifuges, and continuing to process plutonium

LOL.  Even better, Scrappleface also reports that CBS is considering emulating recent moves by the Ukraine press to abandon bias:

Inspired by a public pledge from Ukrainian TV journalists to provide unbiased reporting from now on, CBS News has launched an internal investigation to assess the potential impact of such a move.

Go read it all.

For years, a number of more conservative groups have been warning that the messages given by Islamic leaders and holy men in English for world consumption were far different than the messages given to their own people in Arabic.  And indeed, their translations of Arabic speech aimed at Muslims can be pretty scary.  Few Westerners believed or wanted to believe these warnings, preferring to hope that most arabs were like themselves, basically peaceful and supportive of democracy and plurality. 

For years, I was skeptical of these claims.  I felt like it would require extraordinary laziness and incompetance on the part of the media to just digest the English statements of Islamic leaders without ever checking out what they were saying in Arabic.  However, over the past couple of years, I have lost all faith in the work ethic, intelligence, and dilligence of the western media, and have come to believe that it would be enitrely possible for Arab leaders to manipulate Western media in this way.

For this reason, a part of this article (hat tip LGF) about German reactions to Musilm violence in the Netherlands is interesting to me.  It seems that, after the recent violence, the media finally had the idea to actually listen in on what some Islamic religeous leaders are saying in Arabic:

"These Germans, these atheists, these Europeans don't shave under their arms and their sweat collects under their hair with a revolting smell and they stink," said the preacher at the Mevlana Mosque in Berlin's Kreuzberg district, in the film made by Germany's ZDF public TV, adding: "Hell lives for the infidels! Down with all democracies and all democrats!"

Beyond the bizarre body hair reference, this is NOT what the media has been saying that Islam is teaching here in the west (I don't imply this represents the majority, but the media has essentially claimed it does not exist at all).

By the way, the proposed "solotions" strike me as nuts, and should also be enlightening to anyone in the US who looks up to Continental Europe as a counter-weight to percieved creeping fascism with the Bush Administration.  I may not be a fan of the Patriot Act, but nobody in the Bush administration, with far more provocation, has suggested anything as loony as making all religeous ceremonies English-only.

This is the second part of a two part post. Part 1, with more general background on my libertarian point of view on the environment, is here.

Because hell is freezing over today, and because the Russions just ratified the Kyoto Treaty, apparently putting it over the top for it to get started, I wanted to talk more specifically about the Global Warming and the Kyoto Treaty.

First, recognize that, whatever one's views are of Global Warming, Kyoto is a flawed treating from the United State's perspective. Leaving out the validity of global warming or the cost-benefit issues (which we will discuss below) the Kyoto treaty is a thoroughly anti-American document, crafted by other countries to put the vast vast majority of the cost on the US.

Why? Well, first, and most obviously, the entire developing world, including China, SE Asia, and India, are exempt. These countries account for 80% of the world's population and the great majority of growth in CO2 emissions over the next few decades, and they are not even included. If you doubt this at all, just look at what the economic recovery in China over the past months has done to oil prices. China's growth in hydrocarbon consumption will skyrocket over the coming years.

The second major flaw is that European nations cleverly crafted the treaty so that among developed nations, it disproportionately affects the US. Rather than freezing emissions at current levels or limiting growth rates, it calls for emissions to be rolled back to 6-8% below 1990 levels. Why 1990? Well, a couple of important things have happened since 1990, including:

a. European (and Japanese) economic growth has stagnated since 1990, while the US economy has grown like crazy. By setting the target date back to 1990, rather than just starting from today, the treaty is effectively trying to roll back the economic growth in the US that other major world economies did not enjoy. This difference in economic growth is a real sore spot for continental Europeans.
b. In 1990, Germany was reunified, and Germany inherited a whole country full of polluting inefficient factories from the old Soviet days. Most of the factories have been closed in the last decade, giving Germany an instant one-time leg up in meeting the treaty targets, but only if the date was set back to 1990, rather than starting today.
c. Since 1990, the British have had a similar effect from the closing of a number of old dirty Midlands coal mines and switching fuels from very dirty coal burned inefficiently to more modern gas and oil furnaces.
d. Since 1990, the Russians have an even greater such effect, given low economic growth and the closure of thousands of atrociously inefficient communist-era industries.

A third flaw is that Kyoto refused to accept increases in CO2 absorption as an offset to CO2 emissions. For example, increasing the amount of forest cover in a country can have the same effect as reducing emissions, since the forests lock up atmospheric carbon. The only logical reason for disallowing this in Kyoto is that it is an area where North America has a real advantage. Contrary to what most people might guess given all the doom and gloom environmental talk about sprawl and deforestation, the acres of forested land in the US has been steadily increasing since the 1920s.

It is flabbergasting that US negotiators could allow us to get so thoroughly hosed in these negotiations. Does anyone really want to roll back the economic gains of the nineties, while giving the rest of the world a free pass? Anyway, as a result of these flaws, and again having little to do with the global warming argument itself, the Senate voted 95-0 in 1997 not to sign or ratify the treaty unless these flaws (which still exist in the treaty) were fixed Note that this vote included now-candidate John Kerry and previous enviro-candidate Al Gore.

These gross and obvious flaws in Kyoto could let us off the hook from arguing the main point, which is, does global warming justify some sort of international action like Kyoto. So lets assume that Kyoto was all nice and fair and some reasonable basis was arrived at for letting countries share the pain. Should we be doing something?

To see if a treaty like a modified-to-be-fair-Kyoto makes sense to sign and adhere to, one must evaluate at least five questions:

1. Has the world been warming, and is this due to man's activities and specifically CO2(rather than natural cycles)
2. Do increasing CO2 levels lead to global warming in the future
3. Are man-made actions substantially increasing CO2 levels, and what kind of temperature increase might this translate into
4. How harmful will the projected temperature increases be
5. How much harm will CO2 limitations create and how do these stack up against the harms of global warming.

Continue reading ‘Libertarianism, the Environment, and Kyoto: Part 2’ »

Back some years (decades, eek!) ago when I was in college, I used to really burn hot in political arguments. I could not let any statement go from anyone without an argument. And, being a libertarian, I could always find something to disagree with someone about. Since then I have mellowed a lot, and can let a lot of things pass.

Today, its hard to resist arguing about the war in Iraq, but I often find myself in the odd position of opposing the war in Iraq but disagreeing with most of the premises and assumptions of other people I meet who are opposed to the war. Though I oppose the war, I find myself sharing assumptions about the world that are more prevalent among proponents of the war. This might have made me uncomfortable at one point of my life, but as a small-government individual-rights libertarian you get used to this kind of thing, after seeing everyone argue if the government should be in the boardroom (Democrats and increasingly Republicans) or the bedroom (Republicans and some Democrats) or both (Pat Buchanan).

Over time, I have devised a couple of tests to get at these conflicting assumptions. These tests have evolved over time but they seem to retain their power to sort out people who are operating in an alternate reality.

Here are the two tests, in their current form (though longer for this print edition). In each case, choose either A or B, based on which seems more correct to you. Elements of both A and B will have been true from time to time and in isolated incidents. Try to choose which represents the fundamental truth to you.

Continue reading ‘Before We Argue - Lets See If We Are Living In The Same Universe’ »

In part 1 of this series, I didn't talk much about the "global test" but rather spent some time giving my views on the war in Iraq. In brief, I opposed this war, but for reasons very different than that of most anti-war activist. I appreciate the need for the US to use force in the world from time to time, not the least for the quite salutary effect it can have on other miscreants who foresee that they might meet with the same fate (e.g.m see "Lybia").

One argument that I did not ever find compelling was the fact that we did not have enough allies or a large enough coalition. First, those putting forward this argument tend to go so overboard that they tend to insult those who did join us as "coerced" or "bribed". I think we owe a lot more to countries like Great Britain, Australia, Poland, Italy, and Spain (v1.0) than to intimate that they were suckers to join us. And what's with the strategy of saying that we did not have a large enough coalition, then actively trying to reduce it?

My hypothesis from day 1 of the war was that France was an ally of Iraq, and never going to join us, but that it didn't matter one way or another because alliances in the Muslim world would be much more important than with countries of fading glory in Western Europe. Therefore, the rest of this post will address two issues:

1. How realistic or unrealistic it was to expect help from our "traditional allies" and
2. Our mixed record of success with the allies that may matter more

Germany and Japan

Germany and Japan spent much of the 20th century unsuccessfully attempting to export totalitarianism to their neighbors by force. Both countries are rightfully reluctant to send their forces on cross-border adventures (in fact, Japan in prohibited in doing so by the constitution the US wrote for it). I have no problem with both countries taking a 100-year or so timeout on foreign adventurism.

France and Russia

The evidence continues to flow in. France and probably Russia were active allies of Saddam and the Baathist dictatorship in Iraq. Period. No amount of diplomacy, short of maybe a nuclear threat, was going to cause them to support an invasion of Iraq. They were no more likely to join in on an attack on Iraq than Mussolini and Italy were likely to join the Allies in WWII against Germany. The evidence emerging includes:

1. France and Russia were given a deal not long before the war to split the development rights to all of the oil in Iraq. Though it was not known then, the Duelfer report shows this to have been a direct strategy of Saddam to gain their security council vetoes. MSNBC had an article BEFORE THE WAR discussing the deal with France and Russia. Incredibly, America Haters, and even the author of this article, spend more time talking about the US going to war in Iraq for the oil. There has never been a scrap of evidence that the US went in for the oil, and very clear evidence that France and Russia were given lucrative oil deals to prevent the invasion. So who was acting for the oil?
2. France and Russia were easily the largest arms suppliers to Iraq. We knew this before the war and we have confirmed it in spades today. Every day our troops get attacked by French weapons, most of which were shipped to Saddam AFTER the embargo was in place and many within months of the start of the war. Iraq is not the only place where this is happening. While the US has in the past been careless or outright irresponsible in some of the places its weapons have ended up, today France, China, and Russia are not the key arsenals of totalitarianism.
3. France and Russia were key enablers in the UN, both passively, by defeating safeguards, and actively, by playing a direct role, of Saddam Hussein's stealing billions of dollars from the oil for food program. This story is still unfolding, and at this point I will leave aside the payments of oil vouchers to individuals, because it is not clear whether these acted as bribes (though they sure look like them). However, even without this aspect, the rape of the oil for food program is a miserable story of corruption, as detailed in part here and here.

The Scotsman has been on top of this story, and has a couple of great articles here and here.

Other Nations?
What about other nations. China? Yeah, right, the boys from Tiananmen square love promoting democracy over totalitarianism. Their actions to protect the Sudanese government from criticism over the current genocide there (again, in part, to protect their oil rights) have shown their true colors. And who else is left? Send in the Peruvian Air Force? The answer is, no one who could really help. When people say that we did not have a coalition, they primarily mean France, and you can see how likely that would have been. As an aside, I find it incredible that liberals of all stripes want to align themselves with French Foreign policy, perhaps the most illiberal in the last 50 years of all the wester democracies and certainly the country most responsible for making colonialism a bad word.

Allies that Really Matter in this War

In attacking Afghanistan and Iraq, the allies that should really matter are its powerful neighbors. I would argue that Pakistan, Turkey, Saudi Arabia and Indonesia are all more important allies in these wars than France. So how have we done with these countries - the answer is a mix of successes and failures.

In Pakistan, we probably have had our greatest diplomatic success. Certainly, on 9/12, as we were trying to decide what to do next, Pakistan seemed to be more of a problem than part of the solution, and certainly their nuclear program was worrisome. But the Bush Administration has done a good job at turning Pakistan into an ally (at least in the near-term), with Pakistan agreeing to base troops and fighters in the country, agreeing to renounce ties to the Taliban, and, perhaps most amazing, agreeing to actually use its troops and security personnel to help hunt down hiding Taliban members. Without Pakistan on our side, defeat of the Taliban would have been impossible, with Pakistan acting as a safe harbor for terrorists much like Laos and Cambodia did in the Vietnam war. Even better, all this has been achieved without ruffling too many feathers in India, which is in itself a diplomatic victory, similar to wearing a Yankees shirt in Fenway Park and not starting a fight. I know that Pakistan still has a ton of problems, but we are getting as much as we could ever expect from them in the near-term (heck, even allying with Stalin made sense for a few years get reach some key goals).

In countries like Saudi Arabia and Indonesia, we probably reached about a diplomatic draw. Neither country would be highly enthusiastic about either an invasion of Afghanistan or Iraq, but both provided at least modest logistics support. Neither, however, have ceased being tremendous breeding grounds for terrorism or have done much to deter those in their countries supporting terrorism. Certainly a reckoning is coming sometime in the future with Saudi Arabia, but, for now, they have been about as supportive as necessary (and no more).

It is difficult to paint our diplomatic efforts with Turkey in the run-up to the war as anything but a failure. Turkey clearly had many concerns about the war, from negative economic impact to encouraging their own Kurdish minorities to get frisky should Iraq's Kurds gain their freedom. However, given our good relations with Turkey over the last half-century, we should have been able to find a diplomatic formula to secure their cooperation. Even more, our failure was particularly deep given that Turkey's support seemed to fall apart at the eleventh hour, when these type of things should already have been worked out.

In Summary

It still flabbergasts me that so many people run around worrying about France's participation in our alliance. It strikes me that France's participation was both stupendously unlikely as well as of little practical value (beyond their UN veto). Much more important was our success with Pakistan and failure with Turkey. A new type of war in different parts of the world will require different alliances than the European wars of the 20th century.

UPDATE

Interesting post from Captains Quarters about the complicated nature of our relationship with Pakistan and the change in Al-Qaeda strategy to try to drive Pakistan out of its alliance with the US.