Posts tagged ‘media’

The DRM Genie Just Won't Go Back into the Bottle

Another milestone has been reached in DRM lameness:  Western Digital, which I considered, at least until today, to be the clear leader in the hard drive wars, has instituted DRM on its hard drives:

Western Digital's 1TB MyBook external hard drives won't share media files over network connections (UPDATE: Don't install the "required" client software! See workaround below). From the product page:

"Due to unverifiable media license authentication, the most common
audio and video file types cannot be shared with different users using
WD Anywhere Access."

It doesn't matter what
the files are: If you try to share these formats over a network,
Western Digital assumes not just that you're a criminal, but that it is
its job to police users. You see, MP3, DivX, AVI, WMV and Quicktime files are copy-protected formats.

Here is the list of 30 file extensions the hard drive won't let you share.  It does not matter if those mp3 files are just dictation files you created yourself using an MP3 recorder -- you still can't share them.  Really lame.  Why WD feels the need to get into the business of policing this stuff is beyond me.  Can you imagine the product meeting.  Gee, I think we should jump into the DRM fray, even though we don't receive a dime from the media companies and it will really piss all of our customers off.  Corry Doctorow also comments.

Bloggers are Tehwable

Sports columnist Stephen A. Smith fires off an over-the-top rant at bloggers:

"And when you look at the internet business, what's dangerous about it
is that people who are clearly unqualified get to disseminate their
piece to the masses. I respect the journalism industry, and the fact of
the matter is ...someone with no training should not be allowed to have
any kind of format whatsoever to disseminate to the masses to the level
which they can. They are not trained. Not experts."

Despite its wackiness, we can still draw some useful observations:

  • Yet again, we have an industry incumbent calling for some sort of professional licensing, nominally to protect consumers, but in actuality to protect the incumbent's position in the industry.  Smith himself couldn't be more explicit about this:

"Therefore, there's a total disregard, a level of wrecklessness that
ends up being a domino effect. And the people who suffer are the common
viewers out there and, more importantly, those in the industry who
haven't been fortunate to get a radio or television deal and only rely
on the written word. And now they've been sabotaged. Not because of me.
Or like me. But because of the industry or the world has allowed the
average joe to resemble a professional without any credentials
whatsoever."

He can't even complete the sentence with the window dressing justification that this is for the consumers before he gets to the real people he is trying to protect, ie traditional media personalities like himself.  You know, trained professionals.   You could subsititute attorneys, doctors, nurses, real estate agents, funeral directors, massage therapists, hair braiders, fishing guides and any other licensed or unionized professional and find the same speech given somewhere at some time.

  • People called me crazy when I said that the next step in the media wars with bloggers was a call for licensing (and here) Whose crazy now?
  • McCain-Feingold sent us a long way down this horrible path by establishing that there are such things as "journalists" who can be trusted to speak in public before elections, and everyone else, who cannot be so trusted.  This was the first time the debate over whether bloggers are journalists turned heated, because there was a legislated cost associated with not being a journalist.
  • Note the implicit disdain for the consumer, or in this case, the viewer or reader.  The unstated assumption is that the consumer is a total idiot, a dupe who mindlessly keeps tuning in to inferior news reports from untrained bloggers rather than watching pros like Stephen A. Smith as they should be
  • Finally, and this may be unfair because I am only partially familiar with Mr. Smith's work, but I will observe that he is an African-American who brings a kind of street style to his reporting.  A style that I might guess that a crotchety sports reporter from thirty years ago might easily have defined then as unprofessional.  Mr. Smith's career has benefited in part because he has differentiated himself with new style and approach, but now he wants to slam the door on others trying to similarly bring innovation and new approaches to the sports world.  Unfortunately, all too typical of professionals of all stripes, particularly since the government has set the expectation over the last 100 years that it is open to using its coercive power to enforcing professional standards in even the most trivial of professions.

I end such a discussion, as always, with Milton Friedman:

The justification offered [for licensing] is always the same: to protect the consumer. However, the reason
is demonstrated by observing who lobbies at the state legislature for
the imposition or strengthening of licensure. The lobbyists are
invariably representatives of the occupation in question rather than of
the customers. True enough, plumbers presumably know better than anyone
else what their customers need to be protected against. However, it is
hard to regard altruistic concern for their customers as the primary
motive behind their determined efforts to get legal power to decide who
may be a plumber.

New Unified Field Theory

Albert Einstein's dream is now a reality.  We have a new unified field theory:  Global Warming causes everything bad.   Via Tom Nelson and American Thinker, comes this list by Dr. John Brignell of links to articles in the media attributing various bad things to Global Warming.  Currently, his list has over 600 items!  Some excerpts:

Agricultural
land increase
, Africa
devastated,
  African
aid threatened
, Africa
hit hardest,
air
pressure changes
, Alaska
reshaped
, , Alps
melting
, Amazon
a desert
, American
dream end
amphibians
breeding earlier (or not)
ancient
forests dramatically changed
, animals
head for the hills,
Antarctic
grass flourishes
, anxiety,
algal
blooms
, archaeological
sites threatened,
Arctic
bogs melt
, Arctic
in bloom
, Arctic
lakes disappear
, asthma,
Atlantic
less salty
, Atlantic
more salty
...


itchier poison ivy
, jellyfish
explosion
, Kew
Gardens taxed
, kitten boom,
krill
decline
, lake
and stream productivity decline
, lake
shrinking and growing
, landslides, landslides
of ice at 140 mph
, lawsuits
increase
, lawsuit successful,
lawyers'
income increased (surprise surprise!)
, lightning
related insurance claims
, little
response in the atmosphere
, lush
growth in rain forests
, Lyme
disease
Malaria,
malnutrition,  mammoth
dung melt
, Maple syrup
shortage
...

wheat
yields crushed in Australia
, white
Christmas dream ends
, wildfires, wind
shift
, wind
reduced,

wine - harm
to Australian industry
, wine
industry damage (California)
,
wine industry disaster (US)
,
wine - more
English
, wine
-German boon
, wine
- no
more French
winters
in Britain colder
, wolves
eat more moose
, wolves
eat less,
workers laid
off
, World
bankruptcy
, World
in crisis
, World
in flames
, Yellow
fever
.

All I can say is:

Dont_panic_earth_300w

A Window into the Reality-Based Community

Dont_panic_earth_160wKevin Drum links to a blog called Three-Toed Sloth in a post about why our climate future may be even worse than the absurdly cataclysmic forecasts we are getting today in the media.  Three-Toed Sloth advertises itself as "Slow Takes from the Canopy of the Reality-Based Community."  His post is an absolutely fabulous example how one can write an article where most every line is literally true, but the conclusion can still be dead wrong because one tiny assumption at the beginning of the analysis was incorrect  (In this case, "incorrect" may be generous, since the author seems well-versed in the analysis of chaotic systems.  A better word might be "purposely fudged to make a political point.")

He begins with this:

The
climate system contains a lot of feedback loops.  This means that the ultimate
response to any perturbation or forcing (say, pumping 20 million years of
accumulated fossil fuels into the air) depends not just on the initial
reaction, but also how much of that gets fed back into the system, which leads
to more change, and so on.  Suppose, just for the sake of things being
tractable, that the feedback is linear, and the fraction fed back
is f.  Then the total impact of a perturbation I is


J + Jf + Jf2 + Jf3 + ...

The infinite series of tail-biting feedback terms is in fact
a geometric
series
, and so can be summed up if f is less than 1:


J/(1-f)

So far, so good.  The math here is entirely correct.  He goes on to make this point, arguing that if we are uncertain about  f, in other words, if there is a distribution of possible f's, then the range of the total system gain 1/(1-f) is likely higher than our intuition might first tell us:

If we knew the value of the feedback f, we could predict the
response to perturbations just by multiplying them by 1/(1-f) "”
call this G for "gain".  What happens, Roe and Baker ask, if we do not
know the feedback exactly?  Suppose, for example, that our measurements are
corrupted by noise --- or even, with something like the climate,
that f is itself stochastically fluctuating.  The distribution of
values for f might be symmetric and reasonably well-peaked around a
typical value, but what about the distribution for G?  Well, it's
nothing of the kind.  Increasing f just a little increases
G by a lot, so starting with a symmetric, not-too-spread distribution
of f gives us a skewed distribution for G with a heavy right
tail.

Again all true, with one small unstated proviso I will come back to.  He concludes:

In short: the fact that we will probably never be able to precisely predict
the response of the climate system to large forcings is so far from being a
reason for complacency it's not even funny.

Actually, I can think of two unstated facts that undermine this analysis.  The first is that most catastrophic climate forecasts you see utilize gains in the 3x-5x range, or sometimes higher (but seldom lower).  This implies they are using an f of between .67 and .80.  These are already very high numbers for any natural process.  If catastrophist climate scientists are already assuming numbers at the high end of the range, then the point about uncertainties skewing the gain disproportionately higher are moot.  In fact, we might tend to actually draw the reverse conclusion, that the saw cuts both ways.  His analysis also implies that small overstatements of f when the forecasts are already skewed to the high side will lead to very large overstatements of Gain.

But here is the real elephant in the room:  For the vast, vast majority of natural processes, f is less than zero.  The author has blithely accepted the currently unproven assumption that the net feedback in the climate system is positive.  He never even hints at the possibility that that f might be a negative feedback rather than positive, despite the fact that almost all natural processes are dominated by negative rather than positive feedback.  Assuming without evidence that a random natural process one encounters is dominated by negative feedback is roughly equivalent to assuming the random person you just met on the street is a billionaire.  It is not totally out of the question, but it is very, very unlikely.

When one plugs an f in the equation above that is negative, say -0.3, then the gain actually becomes less than one, in this case about 0.77.  In a negative feedback regime, the system response is actually less than the initial perturbation because forces exist in the system to damp the initial input.

The author is trying to argue that uncertainty about the degree of feedback in the climate system and therefore the sensitivity of the system to CO2 changes does not change the likelihood of the coming "catastrophe."  Except that he fails to mention that we are so uncertain about the feedback that we don't even know its sign.  Feedback, or f, could be positive or negative as far as we know.  Values could range anywhere from -1 to 1.  We don't have good evidence as to where the exact number lies, except to observe from the relative stability of past temperatures over a long time frame that the number probably is not in the high positive end of this range.  Data from climate response over the last 120 years seems to point to a number close to zero or slightly negative, in which case the author's entire post is irrelevant.   In fact, it turns out that the climate scientists who make the news are all clustered around the least likely guesses for f, ie values greater than 0.6.

Incredibly, while refusing to even mention the Occam's Razor solution that f is negative, the author seriously entertains the notion that f might be one or greater.  For such values, the gain shoots to infinity and the system goes wildly unstable  (nuclear fission, for example, is an f>1 process).  In an f>1 world, lightly tapping the accelerator in our car would send us quickly racing up to the speed of light.  This is an ABSURD assumption for a system like climate that is long-term stable over tens of millions of years.  A positive feedback f>=1 would have sent us to a Venus-like heat or Mars-like frigidity eons ago.

A summary of why recent historical empirical data implies low or negative feedback is here.  You can learn more on these topics in my climate video and my climate book.  To save you the search, the section of my movie explaining feedbacks, with a nifty live demonstration from my kitchen, is in the first three and a half minutes of the clip below:

Wow, Media Sees Dumb Lawsuit for What it Is

In the earlier days of this blog, I used to post links to a lot of insane lawsuits.  The lawsuits just keep coming, but I have lost the energy to keep posting such stupidity.  And besides, Overlawyered does such a good job and seems to have infinite patience. 

But it was worth noting a silly shareholder suit that the media actually seems to have sniffed out for what it is:  Pure garbage.  For those who are not aware, there are a group of law firms who immediately file suit against any company whose stock drops by more than a few percent.  Bill Lerach, soon to be taking up residence in jail, used to keep a whole bullpen of folks on a sort of retainer to hold shares in numerous companies, so he instantly had someone close at hand who could file suit when any stock drops.  And since stocks go up and down, often in ways that the company itself has no control over, this leads to a lot of lawsuits.

Recently, the maker of Crocs sandles apparently had an IPO, had its stock price shoot up, and then had its stock price fall back when the company could not sustain its previous torrid growth pace.  Al Lewis of the Denver Post takes it from there:  (HT Overlawyered, of course)

Anybody who purchased stock in
Niwot-based Crocs Inc. between July 27 and Oct. 31 should not join the
class-action shareholders lawsuit that was recently filed against the
company and its stock-dumping executives.

Instead, they should look themselves in the mirror and admit two things:

      

I look ridiculous in these plastic shoes.

      

Anybody
who would pay an average of more than $60 a share for a company that
makes ugly plastic shoes deserves to take a hit in the stock market.

He continues:

Crocs and its officers also allegedly
misrepresented or failed to disclose their distribution problems in
Europe and their rising inventory levels, the lawsuit alleges. They
also failed to disclose that sales of their hole-riddled plastic clogs
were suddenly becoming more of a seasonal item. Imagine that! Sandals
seasonal? Who knew?

By the way, if you really want your head to explode, take a minute a think about shareholder lawsuits.  A group of shareholders are suing the company for a fall in the stock price.  Who do you think pays?  Why, current shareholders!  Though I do not accept the "logic" of these suits, if one were to accept their logic, then the most guilty party is the stockholder who sold the plaintiffs their stock just before the drop.  But these folks are exactly who will NOT owe any money on the suit.  They are no longer owners.  The people who will pay will be the owners of the stock at whatever time the suit settles, likely many people who bought in after the plaintiffs did.  The only real winner when the shareholders pay themselves such a verdict are the lawyers, who rake off 30%.  More on this bizarre situation here.

Update:  I will have to think about this more, but it kind of reminds me of a prisoners dilemma game in which the prosecutor gets a monetary bonus that increases with longer prison terms.

When They Finally Do the Study the Right Way

Over the last few years, there has been a lot of arguing back and forth about income mobility.  Typically, folks, particularly on the left, look at changes in median incomes and declare that since median incomes aren't moving much, there is not income mobility.  I have criticized this approach to the problem on a number of occasions.  For example, I have argued that median income numbers are skewed downwards because tens of millions of low-skill new immigrants have entered the job market over the last several decades.  As I wrote here,

If you really want to know what the current median wage is on an apples
to apples basis back to 1970, take the current reported median wage and
count up about 10 million spots, and that should be the number -- and
it will be much higher.

What you really have to do is take the same people, and follow their progress through tax returns or whatever data is available.  What this type study finds, time and again, is that income mobility remains high in this country.  And what happens, time and again, is the media and politicians ignore the study in favor of the more flawed approaches that support their narrative better.

Well, the study has been performed again, and the results are the same:  Income mobility remains high in this country, especially for the poorest 20%.

Incomechangesopinionjournal

They say a picture is worth a thousand words, and in one chart 60% of the hot air in the Democratic Presidential debates is refuted.

By the way, it is worth noting the drop in income of the top 1%, because it helps to point out a flaw in the usual income distribution numbers we see.  In 2002, I showed no income on my 1040 (because I was starting a new business).  In the income distribution numbers for 2002, my family and I showed up in the bottom 20%, living on less than a $1 a day.  Of course, that is an absurd characterization.  On the opposite end of the scale, imagine a small business owner plugging along making $80,000 or so a year, comfortably middle class, and then in one year sells his business for $1 million.  In that year's statistics, he is rich.  The next year when his capital gains go away, it looks like he has gotten poorer, when no such thing happened.

Of course, some are still struggling, though my suspicion is that this is less related to structural issues in the economy or availability of opportunity than with cultural issues.

Anatomy of A False Panic

I am trying to keep most of my long climate posts off this site and over at Climate Skeptic.  However, I have cross-posted this one because it is a good example for laymen of just what crap gets put forward in the media today about global warming.  It demonstrates the gullibility of the media, the gross exaggerations that exist in nearly every climate catastrophe article, and, as an added bonus, demonstrates the scientific incompetence of the man who leads the UN, the organization that has taken onto itself the role of summarizing the state of climate science. 

OK, here is a great example of the media blithely accepting panicky catsrophism where none is warranted (Link HT to Maggies Farm)

Scientists
welcomed Ban Ki Moon to Antarctica with a glass of Johnny Walker Black
Label served "on the rocks" with 40,000-year-old polar ice. But the
researchers delivered an alarming message to the UN Secretary-General
about a potential environmental catastrophe that could raise sea levels
by six metres if an ice sheet covering a fifth of the continent
crumbles.

The polar experts, studying the effects of global warming on the icy
continent that is devoted to science, fear a repeat of the 2002
collapse of the Larsen B ice shelf. The 12,000-year-old shelf was 220
metres (720ft) thick and almost the size of Yorkshire.

"I was told by scientists that the entire Western Antarctica is now
floating. That is a fifth of the continent. If it broke up, sea levels
may rise as much as six metres," Mr Ban said after being briefed at the
Chilean, Uruguayan and South Korean bases during a day trip to King
George Island, at the tip of the Antarctic Peninsula. ...

Eduardo Frei Montalva Air Force Base, a year-round settlement of
corrugated-iron cabins belonging to Chile, lies in one of the world's
worst "hot spots" "“ temperatures have been rising 0.5C (0.9F) a decade
since the 1940s.

I don't even know where to start with this.  So I will just fire off some bullets:

  • Over the last 30 years, satellites have found absolutely no warming trend in Antarctica  (from UAH via Steven Milloy):

South_pole_temperatures

  • The tail is measuring the dog.  The Korean station
    couldn't possibly be more irrelevent to measuring Antarctic
    temperatures.  It is on an island labelled 26-34 north of the tip of the Antarctic Peninsula in the map below.  One might as well declare she is measuring temperatures in the continental US from Key West.

Antarcticastationsmap1s

  • It is well known that the Antarctic Penninsula,
    representing 2% of Antactica's area, is warming while the other 98% is
    cooling.  I discussed this more here.
    Al Gore took the same disingenuous step in his movie of showing only
    the anomolous 2%.  The Antarctic Penninsula in the first graph below shows
    warming.  The rest of Antarctica shows none  (click to enlarge)

Antarc35_2 Antarc34 Antarc33_2

  • The IPCC (run by the Secretary General and his organization) predicts that with global warming, the
    Antarctic penninsula will see net melting while the rest of Antarctica
    will see net increases in ice.  The penninsula is affected more by the
    changing temperatures of sea currents in the surrounding seas than in
    global climate effects.  For most of Antarctica, temperatures will
    never concieveably warm enough to melt the ice sheets, since it is so
    cold even in the summer, and ice sheets are expected to expand as
    warming increases precipitation on the continent.
  • Scientists studying Antarctica have been there at most a few
    decades.  We know almost nothing about it or its histroy.  We certainly
    don't know enough about "what is normal" to have any clue if activities
    on the Larson B ice shelf are anomolous or not.
  • The UN Sec-gen said that this ice shelf represented a fifth of
    the continent.  Here, in actuality, is the Larsen ice shelf.  The red
    box below greatly exaggerates Larsen's size, and Larsen-B is only a portion
    of the entire Larsen shelf.

Antarctic_map_larson_b

  • The statement that the entire Western Antarctic is floating is
    just absurd.  God knows what that is supposed to mean, but even if we
    ignore the word "floating", we can see from the map above we aren't
    even talking about a significant portion of the Antarctic Pennninsula,
    much less of Western Antarctica.  Here are actual pictures of the 2002 event.  (by the way, if ice is really "floating", presumably in sea water, then it's melting will have zero effect on ocean levels)
  • Such a feared collapse already happened 5 years ago, and sea levels did not budge.  But
    the next time it happens, sea levels are going to rise 20 feet??  Even
    the UN's IPCC does not think sea levels will rise more than 8-12 inches
    in the next century due to their overblown temperature forecasts.

As always, you can consult my my book and my movie (both free online) for more details on all these topics.

Joe Arpaio and Abuse of Power

Here in Phoenix we have a sheriff named Joe Arpaio.  Sheriff Joe, as sensitive to building his media image as he is to fighting crime, has built himself a reputation among the majority of voters that he is a tough-on-crime code-of-the-west kind of guy.  As the Phoenix New Times describes his image:

While voters lapped up the sheriff's harsh approach to inmates in his
jails "” from forcing them to wear pink underwear, to feeding them
oxidized, green bologna, to working them in chain gangs, to housing
inmates in tents "” New Times
writers pointed out that the cruelty and violence in Arpaio's lockups
prompted Amnesty International's first investigation in America.

I, however, see Sheriff Joe as a shameless self-promoter, uncaring about basic civil rights, and a serial abuser of government power.  A number of Phoenix New Times (our free alt-weekly) reporters have been on Arpaio's ass for years, dogging him in the best tradition of American media trying to hold public officials accountable.

In 2004, during an election cycle, reporter John Dougherty found that Arpaio had over a million dollars of investments in commercial real estate parcels.  Dougherty asked the question, how does a lifetime public official making $78,000 a year have so much real estate?  Arpaio could have replied that his family was independently wealthy or that he had parlayed his real estate investment from rags to riches.  Instead, Arpaio used an obscure law aimed at protecting the home addresses of government officials to remove access to any public records of his commercial real estate transactions at the same time he removed his home address from these data bases.  Instead of explaining where the money came from, he used his power to cover his tracks.

The cool thing about alt-weeklies is that they are feisty in a way that major newspapers used to be but are no longer.  The paper responded by publishing Arpaio's home address in an editorial.  Ill-considered?  Perhaps, but the paper pointed to several public web site where Arpaio's home address was already published, including several government sites.  Their point:  Arpaio's concern about his home address was a smokescreen to mask the fact he was really trying to remove the records of his real estate investments.  If he had really been concerned about his home address being public, he would have removed it from all the other sites it appeared on, not just the data base he wished to purge of his commercial investments.  [update:  the law apparently bars publishing the address on the Internet, but not in other media.  The New Times is legally OK for publishing it in their print edition, but technically broke the law by having that print edition also appear on the web]

Joe Arpaio is never one to just "move on."  In response to the paper's editorial, Joe Arpaio used the full force of his public office to form a grand jury to investigate the Phoenix New Times.  Via the grand jury, his prosecutor-buddy has slapped a really amazing subpoena on this small newspaper.  This first part is bad enough:

In a breathtaking abuse of the United States Constitution, Sheriff Joe
Arpaio, Maricopa County Attorney Andrew Thomas, and their increasingly
unhinged cat's paw, special prosecutor Dennis Wilenchik, used the grand
jury to subpoena "all documents related to articles and other content
published by Phoenix New Times newspaper in print and on the Phoenix
New Times website, regarding Sheriff Joe Arpaio from January 1, 2004 to
the present."

Pretty broad scope, huh?  If the case were really about whether the paper broke any laws by publishing his address, they would just subpoena that particular editorial.  But this case appears to be about a lot more, specifically a chance by Sheriff Joe to finally punish the New Times for years of critical reporting.  But the subpoena goes even further, into total la-la land:

The subpoena demands: "Any and all documents containing a compilation
of aggregate information about the Phoenix New Times Web site created
or prepared from January 1, 2004 to the present, including but not
limited to :

A) which pages visitors access or visit on the Phoenix New Times website;

                                       

B) the total number of visitors to the Phoenix New Times website;

                                       

C) information obtained from 'cookies,' including, but not limited to,
authentication, tracking, and maintaining specific information about
users (site preferences, contents of electronic shopping carts, etc.);

D) the Internet Protocol address of anyone that accesses the Phoenix New Times website from January 1, 2004 to the present;

                                       

E) the domain name of anyone that has accessed the Phoenix New Times website from January 1, 2004 to the present;

                                       

F) the website a user visited prior to coming to the Phoenix New Times website;

                                       

G) the date and time of a visit by a user to the Phoenix New Times website;

                                       

H) the type of browser used by each visitor (Internet Explorer,
Mozilla, Netscape Navigator, Firefox, etc.) to the Phoenix New Times
website; and

I) the type of operating system used by each visitor to the Phoenix New Times website."

I am sorry to do this to you, but if you clicked through to the Phoenix New Times site via the links in this story, any personal information that is recoverable about you is now subject to this subpoena. 

For years I have argued against special privileges like shield laws for the press.  My point has always been that we should not create a special class of citizen with more or less rights.  And this case does not change my mind, for this reason:  We all should have protection against this kind of abusive and intrusive probing by a public official, not just the press.  The Phoenix New Times should not have to divulge the details of its readership, but neither should my blog or Jane Doe's MySpace page.  This kind of prosecutorial fishing expedition against a critic of a government official is not wrong because it is directed at the press; it is wrong because it is directed at any American.

Update:  I didn't get into all the really weird stuff.  For example, Joe Arpaio argued that publication of his home address was damaging because groups were out to assassinate him:

A Mexican drug cartel acting on behalf of the Minutemen through the
intercession of a pro-immigration rights radio talk show host intended
to assassinate Arpaio, according to a sheriff's office investigation
detailed on the front page of the Sunday, October 7, edition of the Arizona Republic.

                                       

Now just think about this for a second. The Minutemen hate Mexicans
sneaking across the border. They are even less fond if the Mexicans are
smuggling drugs.

And we are supposed to believe that the Minutemen, seldom associated
with unexplained stashes of bling, agreed to a $3 million assassination
fee and put 50 percent down?

And that this was brokered by Elias Bermudez, a talk radio host, former
mayor of Mexican border town San Luis Rio Colorado in Sonora, and an
outspoken critic of Sheriff Arpaio "” and, obviously, no fan of the
Minutemen?

And a key linchpin in this comic book farce was a teenage girl in a
prep school in Hartford, Connecticut, who was an exchange student at
one point in San Luis. If the drug cartel needed to contact the
Minutemen "for any reason," they could use a particular e-mail address
. . . which, as the officers discovered, belonged to a kid in a private
school.

And from the Arizona Republic, our mainstream paper that usually fawns over Arpaio:

The Maricopa County Sheriff's Office spent an estimated $500,000
during the past six months protecting Joe Arpaio from an assassination
that supposedly was designed to cause a furor in the United States over
illegal immigration.

The convoluted plot, reported to police by a paid informant,
purportedly involved members of the Minuteman border group hiring a hit
squad from a Mexican drug cartel and using an outspoken
immigrant-rights advocate as their intermediary.

Sheriff's officials now acknowledge that virtually none of the information supplied by the source panned out.

I'm sorry, but the person who dreams this stuff up has a huge burden of proof to even argue that he is sane, much less should be our sheriff.  The Minutemen love Sheriff Joe -- they are peas in a pod.  They believe many of the same things.  The odds they would be trying to assassinate him are ZERO.  By the way, this is not the first time Arpaio dreamed up an assassination plot:

in 2003 ... prosecutors took hapless James Saville to trial for
"plotting" to kill Arpaio. Jurors wound up deciding that deputies set
up the assassin, coaxing and entrapping him. Saville was acquitted ("The Plot to Assassinate Arpaio," August 5, 1999).

                                     
Then there was the time Arpaio identified a threat upon his life that
turned out to be an art student's sculpture of a spider left upon his
lawn.

Update:  Joe Arpaio has arrested the owners of the Phoenix New Times paper for revealing the contents of the subpoena.

Gas Pricing Thought for the Day

Today I was working on a bid for a retail concession in a county park in California.  In these bids we usually promise a set percentage of sales as rent in exchange for the concession and use of certain fixed assets.  One of our standard clauses is to exempt gasoline sales (if there are any) from this rent calculation, because gas sales are so horribly low margin.  Considering the licensing, environmental, and safety issues, gasoline is always a money loser for us that we offer either a) because it is expected, as in the case at large marinas or b) because it gets people in the door to buy other stuff.  And I sell gas in rural areas where I have less price competition than in cities.

It is for this reason that I am always flabbergasted at how much time and attention the government and media tend to pay to retail gasoline pricing.  The portion of my business that is clearly the worst, most unprofitable piece, so much so I have to make special contract provisions for it, gets all the attention for price gouging.   It's like the FEC dedicating most of its labor to investigating Mike Gravel's campaign donations.  I mean, why bother, there's nothing there.

More Anti-Consumer Regulation

We seem to be getting these stories in batches lately (others here and here) but leave it to the EU to trump even San Francisco in anti-consumer stupidity:

Microsoft lost its appeal of a European antitrust order Monday
that obliges the technology giant to share communications code with
rivals, sell a copy of Windows without Media Player and pay a $613
million fine - the largest ever by EU regulators.

The EU
Court of First Instance ruled against Microsoft on both parts of the
case, saying the European Commission was correct in concluding that
Microsoft was guilty of monopoly abuse in trying to use its power over
desktop computers to muscle into server software.

It also said regulators had clearly demonstrated that selling media software with Windows had damaged rivals.

"The
court observes that it is beyond dispute that in consequence of the
tying consumers are unable to acquire the Windows operating system
without simultaneously acquiring Windows Media Player," it said.

"In
that regard, the court considers that neither the fact that Microsoft
does not charge a separate price for Windows Media Player nor the fact
that consumers are not obliged to use that Media Player is irrelevant."

Yes, you are reading it correctly.  Microsoft is being penalized for giving the consumer too much value by bundling in additional features and programs for free into its OS.  And just to make sure that you understand that this has nothing to do with the consumer, but is purely a complaint of large competitors that can't keep up, they make it clear that they want the bundling stopped even if it does not change the price of the OS one penny (pfennig or whatever the Euro equivalent is).  They want the product stripped down and are deliberately trying to reduce its value to customers.

Gwynnie at Maggie's Farm has a funny comment, saying, "Microsoft is guilty of succeeding while American."

Dynasty, Dallas, and the DA

The media has built an image through shows like Dynasty and Dallas of private companies being battlegrounds for petty feuds and revenge plots, all played out with little concern for the actual performance of the business.  While I suppose that such things do happen, I have worked in a lot of large companies and have seen a lot of stupid stuff, but I have never seen the pettiness you will find in the average government office:

In his first day as DA, Nifong had fired a longtime rival, Freda Black.
She quickly made clear her intent to run in 2006. Well-known from her
work in a high-profile murder trial, Black soon became the
front-runner. Nifong knew that Black would fire him, as he had fired
her, the first chance she got. His concern, he told his initial
campaign manager, Jackie Brown, was not that he cared about being DA;
he needed another three years in the Durham DA's office for his pension
to fully vest.

Ooh, I am in charge, now I can seek revenge on all the people I don't like.  How petty can you get?  Its absolutely assumed here that the first thing a newcomer will do is fire all the people who have rubbed them the wrong way over the years, without regard to performance or capability.  And we want to make these folks our masters?

Larry Craig

OK, I have resisted commenting on Larry Craig.  My reactions are:

  1. We are so off topic here it is unbelievable.  For Congress, exercising arbitrary powers over individuals in violation of the intent, if not the letter, of the Constitution:  OK.  Playing footsie in the bathroom: Not OK
  2. Are we really going to have a Congressman resign for tapping his foot in a public bathroom while a man who had $100,000 in cash bribe money found in his freezer still sits in office?
  3. Why is it that Democrats, against their political beliefs, feel the need to criticize Republicans for being gay while Republicans feel the need to criticize Democrats for having large homes and SUVs?
  4. Do we really pay police officers to sit on the toilet for hours and try to catch men who are soliciting consensual sex?  And if so, do they also pay female officers to patrol for the same thing among women?  This is a real threat to us?

David Bernstein has more.  Via TJIC.

Update:  A reader pointed out to me I had a fairly relevant passage in my novel BMOC, when the Senator is confronted with his $50,000 earmark nominally for a "women's consulting company" turned out to be directed at a house of prostitution [edited to remove the more raunchy terminology]:

Taking a deep
breath, [the Senator's aid] said, "Senator, there is a reason that this one is not going
away. I will spell it out: S-E-X. The press doesn't give a shit about a few billion dollars of waste. No one tunes in to the evening news if the
teaser is "˜Government pays too much for a bridge, news at eleven.' The Today Show doesn't interview the
contractors benefiting from a useless bridge."

"However, everybody and his dog will tune in if
the teaser is "˜Your tax dollars are funding call girls, film at eleven'. Jesus, do you really think the CBS Evening
News is going to turn down a chance to put hookers on the evening news? Not just tonight but day after day? Just watch "“ Dan Rather will be interviewing
hookers and Chris Mathews will be interviewing hookers and for God's sakes
Barbara Walters will probably have a weepy interview with a hooker."

"And you know
what?" Givens continued, his voice rising. "The whole act makes me sick. All
these media types are going to be piously turning up their nose at you and
those women, while at the same time making more money for themselves off those
prostitutes than those women ever made for themselves on their back. It's rank
hypocrisy but it's the facts of life in Washington,
and I shouldn't have to be explaining this to you."

"You guys in the
Senate can get away with a lot, as long as long as a) you don't get caught or
b) the scandal is so boring or complex that it won't sell newspapers. Hell, I saw a poll the other day that a
substantial percentage of Americans to this day don't understand or even
believe what Richard Nixon did wrong. But if you polled those same people, every freaking one of them would
say that they knew and believed that Bill Clinton [fooled around with] an intern. What's the difference? Sex. Bill Clinton was impeached and lost his law license, not because he did
or did not commit fraud with Whitewater Development Corp., but because he lied
about [sex with] a young girl."

The Perfect Political Bludgeon

I am often asked, "why, if the threat of global warming is really so overstated, does the issue have such legs with politicians, media, and activists?"

Answer:  Because it is the perfect political bludgeon.  One of the reasons I felt like high school debate really was broken (I don't know if it has been fixed since) was because every single debate eventually devolved into which side was more likely to cause a nuclear war.  It didn't matter if you were arguing about energy policy or the presidential primary system, no good debate case stopped short of blaming the other side for nuclear war.

Today, with nuclear weapons mostly forgotten (unfortunately not gone), global warming is the new nuclear war. It doesn't matter what you are arguing about:

There was Clare Short, a member of the British Parliament and Secretary
for International Development under Prime Minister Tony Blair until she
resigned in 2003 over the Iraq war. Claiming that Israel is actually
"much worse than the original apartheid state" and accusing it of
"killing (Palestinian) political leaders," Ms. Short charged the Jewish
state with the ultimate crime: Israel "undermines the international
community's reaction to global warming." According to Ms. Short, the
Middle East conflict distracts the world from the real problem:
man-made climate change. If extreme weather will lead to the "end of
the human race," as Ms. Short warned it could, add this to the list of
the crimes of Israel.

Why the NASA Temperture Adjustments Matter

NASA's GISS was recently forced to restate its historical temperature database for the US when Steve McIntyre (climate gadfly) found discontinuities in the data that seemed to imply a processing error.  Which indeed turned out to be the case (store here).

The importance of this is NOT the actual change to the measurements, though it was substantial.  The importance, which the media reporting on this has entirely missed, is it highlights why NASA and other government-funded climate scientists have got to release their detailed methodologies and software for scrutiny.  The adjustments they are making to historical temperatures are often larger(!) than the measured historical warming (here, here, here) so the adjustment methodology is critical. 

This post from Steve McIntyre really shows how hard government-funded climate scientists like James Hansen are working to avoid scientific scrutiny.  Note the contortions and detective work McIntyre and his readers must go through to try to back into what NASA and Hansen are actually doing.  Read in this context, you should be offended by this article.  Here is an excerpt (don't worry if you can't follow the particular discussion, just get a sense of how hard NASA is making it to replicate their adjustment process):

If I average the data so adjusted, I get the NASA-combined version
up to rounding of 0.05 deg C. Why these particular values are chosen is
a mystery to say the least. Version 1 runs on average a little warmer
than version 0 where they diverge ( and they are identical after 1980).
So why version 0 is adjusted down more than version 1 is hard to figure
out.

Why is version 2 adjusted down prior to 1990 and not after? Again
it's hard to figure out. I'm wondering whether there isn't another
problem in splicing versions as with the USHCN data. One big version of
Hansen's data was put together for Hansen and Lebedeff 1987 and the
next publication was Hansen et al 1999 - maybe different versions got
involved. But that's just a guess. It could be almost anything....It would be interesting to check their source code and see how they get this adjustment, that's for sure.

A basic tenant of science is that you publish enough information such that others can replicate your work.  Hansen and NASA are not doing this, which is all the more insane given that we as taxpayers pay for their work.

Hansen cites the fact that Phil Jones gets somewhat similar results as
evidence of the validity of his calculations. In fairness to Hansen,
while they have not archived code, they have archived enough data
versions to at least get a foothold on what they are doing. In
contrast, Phil Jones at CRU maintains lockdown anti-terrorist security
on his data versions and has even refused FOI requests for his data.
None of these sorts of analyses are possible on CRU data, which may or
may not have problems of its own.

Save the World -- Stop Recycling

My wife and I had our familiar recycling argument this weekend (Wife:  You need to put that stuff in the recycling;  Me:  Recycling makes zero sense for anything except scrap steel and aluminum, all the rest is just a liturgy of belief we perform for the church of the environment, where labor costs are assumed to be zero).

Anyway, thinking about it more, I have had a revelation.  If we define our biggest environmental problem as CO2 production,shouldn't we stop recycling of plastic and paper?  In the first case, we are burying hydrocarbons unburned, putting the carbon back underground.  Each bottle not recycled represent a few more hydrocarbon molecules that must be dedicated to plastics rather than fuel.  In the case of paper, if we don't recycle then we are using trees to sequester CO2 and bury it back in the ground as paper and cardboard.  Once trees hit their maturity, their growth slows and therefore the rate they sequester CO2 slows.  At this point, we need to be cutting more down, not less, and burying them in the ground, either as logs or paper or whatever.  Just growing forests is not enough, because old trees fall over and rot and give up their carbon as CO2.  We have to bury them.   Right?

Yeah, I know it's silly, but is it any more silly than this:

In the last few months, bottled water "” generally
considered a benign, even beneficial, product "” has been increasingly
portrayed as an environmental villain by city leaders, activist groups
and the media. The argument centers not on water, but oil. It takes 1.5
million barrels a year just to make the plastic water bottles Americans
use, according to the Earth Policy Institute in Washington, plus
countless barrels to transport it from as far as Fiji and refrigerate
it. ...

Dave Byers, 65, from Silver Spring,
Md., discussed the issue with his wife, Pat, on the steps of the
Metropolitan Museum of Art on a 90-degree Saturday. "I think it should
be banned, actually," he said of bottled water.

If you care about the environment, I say buy more bottled water, and throw the bottle away.  You too can sequester some carbon.

Denier vs. Skeptic

We all know why Newsweek and many others (like Kevin Drum) choose to use the term "denier" for those of us who are skeptical of catastrophic anthropogenic global warming:  These media folks, who are hesitant to use the word "terrorist" because of its emotional content, want to imply that we skeptics are somehow similar to Holocaust deniers.

But beyond just the issues of false emotional content, the word denier is incorrect as applied to most skeptics, including myself, and helps man-made warming hawks avoid a difficult argument.  I try to be careful to say that I am a skeptic of "catastrophic man-made (or anthropogenic) global warming theory." 

  • So, does that mean I think the world is not warming?  In fact, the evidence is pretty clear that it is warming (though perhaps not by as much as shown in current surface temperature databases).
  • So does this mean that I think that human activities are not causing some warming?  In fact, I do think man-made CO2 is causing some, but not all the current 20th century warming trend.  I also think that man's land use  (urbanization, irrigated agriculture, etc) has effects on climate.

Where I really get skeptical is the next proposition -- that man's burning of fossil fuels is going to cause warming in the next century that will carry catastrophic impacts, and that these negative effects will justify massive current spending and government interventions (that will have their own negative consequences in terms of lost economic growth, increased poverty, and reduction in freedoms). 

Strong supporters of catastrophic man-made global warming theory do not usually want to argue this last point.  It is much easier to argue points 1 and 2, because the science is pretty good that the earth has warmed (though the magnitude is in question) and that CO2 greenhouse effect does cause warming (though the magnitude is in question).  That is why skeptics are called deniers.  It is in effect a straw man that allows greenhouse supporters to stay on 1 and 2 without getting into the real meat of the question.

Here is a quick example to prove my point.  Follow me for three paragraphs, then ask yourself if you have ever heard any of this in the media or on any RealClimate-type site's FAQ.

Anthropogenic global warming hawks admit that the warming solely from the CO2 greenhouse effect will likely NOT rise to catastrophic levels.  So how do they get such big, scary forecasts?  The answer is positive feedback.

Almost every process you can think of in nature operates by negative
feedback, meaning that an input to a system is damped.  Roll a ball, and eventually friction and wind resistance
bring
it to a stop.    Positive feedback means that an input to the system is multiplied and increased.  Negative feedback is a ball in the bottom of a bowl, always returning to the center; positive feedback is a ball perched precariously at the top of a
mountain that will run faster and faster downhill with a tiny push. Positive feedback
breeds instability, and processes that operate by positive feedback are
dangerous, and usually end up in extreme states -- these processes tend
to
"run away" like the ball rolling down the hill.  Nuclear fission, for
example, is a positive feedback process. 

Current catastrophic man-made global warming theory asserts that our climate is dominated
by positive feedback.  The last UN IPCC report posits that a small increase in
temperature from CO2 is multiplied 2,3,4 times or more by positive
feedbacks like humidity and ice albedo.   So a modest degree or degree and a half of warming from the greenhouse effect becomes a scary five or eight degrees of warming in the next century once any number of hypothesized positive feedbacks are applied.  Add to this exaggerated, sometimes over-the-top visions of possible negative consequences, and that is how global warming hawks justify massive government action.

OK, that is a very brief description of what I consider a sophisticated reason to be skeptical:  Most catastrophic warming forecasts depend on positive feedback loops, feedbacks for which we have little or no evidence and which don't tend to dominate in other stable systems.  So how many times have you seen this issue discussed?  Zero?  Yeah, its so much easier just to call us deniers.

If you are interested, here is slightly longer version of my skeptic's point of view.  Here is my much longer version.  Here is the specific chapter that discusses feedback loops.  Here is Roy Spencer discussing problems with studies trying to measure these feedbacks.

Postscript:  By the way, it is in this context that the discussions about restating temperatures and problems with historical surface temperature measurements are important.  Exaggerated historical warming numbers leave more room to posit positive feedback loops.  Lower historical numbers, or evidence past warming is driven by non-man-made sources (e.g. solar activity), leave less room to justify positive feedback loops.

Update:  RealClimate has posted their six steps to explain catastrophic warming from CO2.  Seems have buried the feedback issue.  Note that forcings mentioned here include feedbacks, they are not from CO2 alone but from CO2 + positive feedback.  Strange they didn't mention this.

Ethanol Get's Slammed

Finally, the blinders are coming off and the media is starting to
wake up to the absolute travesty that is the Congress's promotion of
ethanol.  From Rolling Stone(!) emphasis added.

This is not just hype -- it's dangerous, delusional bullshit.  Ethanol doesn't burn cleaner than gasoline, nor is it
cheaper. Our current ethanol production represents only 3.5 percent of
our gasoline consumption -- yet it consumes twenty percent of the
entire U.S. corn crop, causing the price of corn to double in the last
two years and raising the threat of hunger in the Third World. And the
increasing acreage devoted to corn for ethanol means less land for
other staple crops, giving farmers in South America an incentive to
carve fields out of tropical forests that help to cool the planet and
stave off global warming.

So why bother? Because the whole
point of corn ethanol is not to solve America's energy crisis, but to
generate one of the great political boondoggles of our time. Corn is
already the most subsidized crop in America, raking in a total of $51
billion in federal handouts between 1995 and 2005 -- twice as much as
wheat subsidies and four times as much as soybeans. Ethanol itself is
propped up by hefty subsidies, including a fifty-one-cent-per-gallon
tax allowance for refiners. And a study by the International Institute
for Sustainable Development found that ethanol subsidies amount to as
much as $1.38 per gallon -- about half of ethanol's wholesale market
price.

Hurrah!  Unfortunately, I fear we may be waking up too late.  Already, billions of dollars are being invested by politically connected companies
on the promises of subsidies and promotion of ethanol extending out to
the end of the universe.  At this point, ethanol may be as entrenched
as agriculture subsidies, the education department, and depression-era
alcohol regulation.  The government has no problem reneging on contracts with oil companies, but God forbid anyone deny Archer Daniels Midland the right to infinite subsidies.

Tautology (and Thoughts on Ward Churchill)

Todd Zywicki notes that Congress "has been on a binge diet of junk social science."  Is there another kind of social science?  Particularly in the media, I really think the main influence of social science has been to substantially lower the bar for scientific inquiry and skepticism thereof.

Update: On a related note, these really low academic standards in the social "sciences" are the reason I think firing Ward Churchill is bogus, as I wrote here.  Academic standards for things like ethnic or gender studies are incredibly low, particularly for the "research" done in these departments.  As I pointed out before, Cal State Long Beach, for example, hired a paranoid schizophrenic who had served prison time for beating and torturing two women as the head of their Black Studies department.  It is almost impossible to imagine Ward Churchill fired for violating the academic standards of his discipline because his discipline tends to have none, and everyone knows it.  The University of Colorado fully knew what it was getting with Ward Churchill, but they hired him to check a politically correct racial/gender/ethnic box.  Everything UC supposedly fired him for were known to them or should have been known to them with the most minimal of due diligence when they tenured the guy.  Nothing has changed, except that he is no longer a PR asset for the university.  As I wrote previously:

I could go out tomorrow and find twenty tenured professors of
ethnic/racial/gender studies in state universities whose academic
credentials are at least as bad as Churchill's and whom no one would dare fire.  This has nothing to do with Churchill's academic work or its quality.  UC is getting exactly
what it expected when it tenured him.  This is about an attempt to fire
a tenured professor for the content of his speech, speech that has
embarrassed and put pressure on the university, and I can't support
that.

Even More:  Background from KC Johnson:

Churchill was hired through a "special opportunity" position, designed
by the university to help "recruit and hire a more diverse faculty." He
had an M.A. from little-known Sangamon State University and no Ph.D at
all. As documents from the time noted, his qualifications included only two items: strong lobbying from Evelyn Hu-DeHart,
the chair of the Ethnic Studies program, and the now-disputed fact that
"Ward is a Native American," meaning his hire would contribute "to
increasing the cultural diversity on campus."...

How, then, could his fellow academics have originally found Churchill's
scholarship acceptable? The outcome, alas, suggests that in politicized
fields such as African-American Studies, Women's Studies, and Ethnic
Studies, the message too often trumps quality. In this case, it appears
that Churchill's extremist arguments that the U.S. government engaged
in genocide against Native Americans blinded his academic reviewers to
the poor quality of his scholarship. Indeed, some Churchill
sympathizers, led by Cornell professor Eric Cheyfitz,
have continued to maintain that the former professor's writings
constitute appropriate scholarship for the field of Ethnic Studies.

I contend that Churchill was and is still exactly what UC thought he was, and his scholarship was and still does exactly conform to the (miserably low) standards of his discipline.

Mental Image of the Day

James Christopher via Kurt Loder via Cattalarchy:

After marveling at Moore's rosy view of the British health care system
in "Sicko," Christopher wrote, "What he hasn't done is lie in a
corridor all night at the Royal Free [Hospital] watching his severed
toe disintegrate in a plastic cup of melted ice.  I have."

The whole review is worth reading.  Many folks seem to think Michael Moore is brilliant until he makes a film about something with which they are actually familiar.  Which, come to think of it, encapsulates my entire view of the media, not just Michael Moore, as well.  Nothing will reduce your confidence in the media more than reading an article on a topic about which you have intimate knowledge.

Jane Galt on Immigration

Jane Galt takes on some of the more common anti-immigration talking points.  Just for example:

5. There were ethnic newspapers, but nothing like today's ethnic media.

This is just ridiculous. Immigrants in 1900 could get all the
entertainment that was then available in their own language; for
example, by 1918, New York City boasted 20 Yiddish theaters.
The idea that Latin American immigrants are somehow uniquely unable to
assimilate because they can now watch soap operas and the Venezuelan
version of Eurovision in their very own language seems to me
self-evidently absurd; an immigrant at home watching television in
Spanish is immersed in her own culture no more thoroughly than was the
typical resident of an ethnic neighbourhood who shopped, worked, went
to services, and partied entirely with their compatriots.

I am working on some research right now -- immigration opponents are claiming that "yes, immigration may have been OK in the past, but its different now."  I am in the process of putting together anti-immigration quotes from the late 19th and early 20th century that cover all of the same ground -- they're lazy, they breed too fast, they have disease, they don't integrate, they have divided loyalties -- but aimed at Irish and Italians.

China Continues to Subsidize Lower Prices for Consumers

From today's WSJ ($) online:

Turning aside growing congressional anger over low everyday prices, President George W. Bush's
administration today will reject demands that it formally accuse
Beijing of subsidizing lower prices for U.S. consumers.

With U.S. lawmakers gearing up to punish China for using Chinese funds to subsidize low U.S. consumer prices, Treasury
Secretary Henry Paulson is expected to use a semiannual currency
report, to be released today, to reinforce his calls for Beijing to
allow prices in the U.S. to rise faster....

OK, I confess I fibbed a bit.  The actual article reads:

Turning aside growing congressional anger over the
U.S. trade deficit with China, President George W. Bush's
administration today will reject demands that it formally accuse
Beijing of "manipulating" its currency to give Chinese companies an
edge over American businesses.

With U.S. lawmakers gearing up to punish China for
keeping the yuan artificially weak against the dollar, Treasury
Secretary Henry Paulson is expected to use a semiannual currency
report, to be released today, to reinforce his calls for Beijing to
allow the yuan to rise faster. But Mr. Paulson won't brand China a
currency manipulator despite congressional demands that he do so.

But it means the same thing as my version.  Thanks to Congress for looking after us consumers.  Our Chinese sister publication Panda Blog addressed these issues from the Chinese perspective a while back.  In short, the Chinese are wondering what we are complaining about:

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
  • Imposing strict capital controls that limit dollar reinvestment to low-yield securities like US government T-bills
  • 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.  And limiting
foreign exchange re-investments to low-yield government bonds has acted
as a direct subsidy of American taxpayers and the American government,
saddling China with extraordinarily low yields on our nearly $1
trillion in foreign exchange.   Every single step China takes to
promote exports is in effect a subsidy of American consumers by Chinese
citizens.

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?  Fifteen years 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 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 nearly 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.

Thanks for the Help, MSM

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.

Proletarianizing the Middle Class

I have been reading and studying Karl Marx in the last week as a part of a European History course I am taking that focuses on the 19th century.  In the context of Marx, it was interesting reading the NY Times recent article on income inequality (the newspaper is not comfortable unless it has visited this topic at least once every week or so).  You might think that I would latch onto this quote from the Times (HT: TJIC)

The top 0.1 percent of earners"¦ now brings in 11 percent of the
nation's total income, triple the share that they did just a generation
ago.

And indeed, I have written on the implied zero-sum fallacy any number of times, including just yesterday.  Implied in this one sentence from the Times is what I call the "bubbling spring" theory of wealth, where wealth and income just sort of magically appear, like a spring out of the ground, and the rich are all those piggy people up front taking more than their fair share of the water.  Of course this is ludicrous, because it implies that if the wealthy made less money, then the poor would make more.  In fact, the reality is that if the wealthy made less money, then the nation's total income would be lower.

But this is not what caught my attention.  What was new to me in my recent study of Marx was his writing on the tactics of socialist revolution.  Specifically, he spent a lot of time talking about the need to "proletarianize the middle class."  He knew that to have a successful socialist revolution, the middle class had to be made to feel marginalized and put upon by the system.  If he had lived long enough, he would have said that socialist revolution failed to occur in countries like Britain because the middle class became too large and too successful.

In this context, then, I found this quote from the Times most interesting:

There is now a big push in both Washington and state capitals to come
up with policies that can alleviate middle-class anxiety.

The author himself editorializes:

There is now a big push in both Washington and state capitals to come
up with policies that can alleviate middle-class anxiety. That's all
for the good. In fact, it is overdue.

What middle class anxiety?  The middle class is doing better than ever, except that there has been a concentrated media campaign by the Times and others, abetted by various politicians on the left, to try to make the middle class feel anxious and marginalized.  To the author's credit, he observes that while "Layoffs seem to happen more frequently than they once did," the actual evidence for increased volatility is really not there:

Only later do you come to the surprising part: there is the same
amount of variability now that there was in the 1980s and 1990s. In
journalism, this is known as burying the lead.

"Intuitively, you would think volatility is increasing," said Senator Charles E. Schumer, Democrat of New York, who along with Senator Jim Webb
of Virginia requested that the study be done. "But it isn't, which I
guess shows that the American economy has always been very flexible."

What the author does not explain is, if the increase in volatility is not real, then why do so many people believe it to be true?  The answer, of course, is that his employer, among others, have been pushing a PR campaign for years to convince the middle class that their lot sucks.  Why?  Well, read your Marx.

Anti-Trust is Anti-Consumer

This is part 158 or so of a series of posts on how anti-trust law is often portrayed as being pro-consumer, but whose effect in practice is usually just to politically powerful competitors rather than consumers.

I have written a couple of posts on the National Association of Broadcasters hypocritical opposition to the Sirius-XM satellite merger. Radley Balko takes on this same topic:

So when XM and Sirius announced a highly-publicized merger this
year, everything changed for the NAB. Clearly, the two startups it so
feared for so long were floundering. And with no other licensed
satellite providers around, the NAB's position on the merger became
clear: What's bad for satellite is good for the NAB. So the NAB would
oppose an XM-Sirius alliance.

Problem is, the only colorable
argument against the merger is that it would create a monopoly for
satellite radio. XM and Sirius cleverly (and probably accurately)
headed that objection off by noting that satellite radio competes with
a variety of technologies for the listener's ear. This put the NAB in
an awkward position. The lobby would have to argue that despite its
15-year effort to derail satellite radio, satellite radio was not a
competitor. Of course, the harder the NAB fights and the more money the
NAB spends to promote this message, the clearer it becomes that the NAB
fears the competition posed by an XM-Sirius alliance. In effect, the
more the NAB fights the merger, the more it undermines its own argument
against it.

But the NAB has a lot of clout, since it controls most of the media.  Here, for example, is the Boston Globe whoring for the NAB without mentioning that their parent company is a member of the NAB.

I Can Fix the Water "Shortage" in Five Minutes

Apparently the next "crisis" is that America is running out of water.  This is mostly an issue in the west, where growth is high and fresh water is rarer than in the east.  Here is one example of the brewing panic:

The growing human population is creating cities where desert or scrub
land used to be. Rainfall always has been and always will be in short
supply. Only so much water can be diverted from rivers to satisfy the
water needs of these desert dwellers. The aquifers are being drained.
Soon there will be demands to divert water from large inland lakes like the Great Lakes which would put those bodies of water in peril.

Oh my god, I can see it now - fish flopping on the muddy exposed bottom of Lake Michigan.

Look, the problem is not lack of water.  The problem is lack of market sanity.  Water in the west is regulated and sold in a hodge-podge of complex arrangements and negotiations.   The whole system is too complex to describe here, but at least one general conclusion can be safely drawn about the whole system:  Water is under-priced.   

For reference, lets look at my home city.  If building cities in the desert is the new evil, then I live in that great Satan called Phoenix.  And while my electricity charges are enough to get my attention (higher efficiency AC: check; compact fluorescent bulbs: check; solar: still too expensive), my water bill seldom grabs my focus.   

And now I know why.  Check out this analysis, conducted apparently by the city of Austin but which I found on the Portland Water Bureau's web site:

City Monthly cost for water service of 8,500 gallons
Memphis, Tennessee $14.16
Phoenix, Arizona $16.27
Charlotte, North Carolina $17.52
Dallas, Texas $20.04
Austin, Texas $23.15
Portland, Oregon $23.44
Louisville, Kentucky $23.47
Houston, Texas $26.49
Milwaukee, Wisconsin $27.86
East Bay MUD, Oakland, California $31.13
Atlanta, Georgia $33.60
San Diego, California $37.52
Seattle, Washington $39.75

Can you believe it?  We here in Phoenix, out in the middle of the largest desert on the continent, during a multi-year drought (yes you can still have a drought in the desert), while everyone laments that Lake Powell and other reservoirs are getting sucked dry, Phoenix has one of the lowest water prices of any city in the country.  Can you get over the irony of Seattle having some of the highest priced water in the country and Phoenix the lowest?

And you know what - I have not seen a single article in any of our local media that has once mentioned this fact.  Look here -- the articles blame global warming and lack of conservation and development and too many lawns and not enough low-flow faucets and talk about the need for government rationing, but never once mention PRICE.  We have the scarcest water in the country and one of the lowest prices for water.  Talk about ignoring the elephant in the room.  I should have just labeled this post "Duh!"

And these are the consumer water prices.  The situation actually gets worse when you look at agriculture.  In most of the southwest, farmers get water prices subsidized below the rates paid by ordinary consumers.  When you combine these water subsidies with massive subsidies already rich groups get for growing crops in the desert from farm programs, you get an enormous distorted incentive to grow water-hungry crops that are totally inappropriate for the desert.

So here is my five minute plan:  We may be a ways away from creating an actual market in water, but in the mean time, the quasi-governmental agencies providing it need to raise the prices (to everyone) up to a level that demand matches supply.  More conservation will occur, and marginal commercial, residential, and agricultural development will disappear.  If the price goes high enough, someone may even go out and find a new, innovative source of water for the area. 

Unfortunately, this is just too dang easy, and, from reading recent articles in the media, not even in the menu of options being considered.  Government bureaucrats are much more comfortable with rationing and limitations on development, because it gives them more power and creates a new set of winners and losers who will donate more to future political campaigns.

Update: Daniel Mitchell at Cato has similar thoughts, based on water shortages in Florida of all places:

So here we are, in the spring of 2007, with rain below
average, with a low lake level, little else in the way of reservoirs,
and a water shortage. What is the response? Well, a rational response
might be to price a scarce commodity such that people will use it only
as they need it, and not frivolously. "¦Instead, we get the response of
the local commissars. So, not allowing the market to work, and not
allowing prices to provide signals to the participants, they have
decided to run our lives for us.

"¦I live at an odd numbered address. That means that if I want to
water my lawn, I can only do it on Monday, Wednesday and Saturday
mornings, from four to eight AM. I can water my plants with a hose on
the same days, but only between five and seven PM. My neighbors across
the street, and behind my house on the next block, get Sunday, Tuesday
and Thursday.

"¦Over thirty years ago, in the first OPEC oil embargo, the
government, rather than allowing prices to rise to account for the
reduced supply, told people when they could purchase gas based on the
parity of their license plate "” even one day, odd the next. My
recollection was that this did nothing to alleviate the shortage "” the
lines remained. The problem was only solved when Nixon-era price
controls on oil were lifted, the market was allowed to work, and oil
prices eventually (and it didn't take all that long) fell to historical
lows.

"¦[H]ere's a radical concept. How about pricing the commodity to the
market? Maybe, if people had to pay more for water to water their lawn,
they'd use less of it? Yes, I know that it's hard to believe, but there
really are some people out there who buy less of something if the price
is higher.

Update #2: The more I think of it, the more this situation really ticks me off.  In their general pandering and populism, politicians are afraid to raise water prices, fearing the decision would be criticized.  So, they keep prices artificially low, knowing that this low price is causing reservoirs and aquifers to be pumped faster than their replacement rate.  Then, as the reservoirs go dry, the politicians blame us, the consumers, for being too profligate with water and call for ... wait for it ... more power for themselves, the ones whose spinelessness is the root cause of the problem, to allocate and ration water and development.