Coyote Blog

Forget about the economy -- libertarians expect Democrats to be horrible statists in economic matters.  But we hope to get some protection of civil liberties in exchange.  But Obama has been simply awful in this area as well -- prosecuting marijuana sellers that are legal under state law, claiming assassination powers, the drone war, wiretapping, failure to address gay marriage, etc.

Here is but one example - the Orwellian defense of warrantless wiretapping.  You can't sue us unless we tell you there is a wiretap, and we are not going to tell you.

As part of its concerted campaign to prosecute whistleblowers and to classify state secrets, the Obama administration has taken a position in Clapper that makes the Bush administration pro-secrecy campaign seem pale in comparison: namely, that no one can challenge warrantless surveillance unless the government tells you in advance that you’re being surveilled—which national security interests prevent it from doing. When Bush administration offered milder versions of the same arguments, the civil liberties community rose up in protest. Verrilli, for his part, was met by vigorous skepticism from the Supreme Court’s liberal justices.

It’s unfortunate enough that the administration asked the Court to hear the surveillance case in the first place, after the U.S. Court of Appeals for the Second Circuit had ruledthat the plaintiffs —lawyers and human rights and media organizations whose work requires them to communicate with clients, sources, and victims of human rights abroad—had legal standing to bring the case. Although they couldn’t be 100 percent sure that their telephone communications were being monitored, the appellate held that there was a “realistic danger” that their telephone communications were being monitored under the FISA Amendments Act of 2008 (FAA), passed by Congress to codify some of the worst excesses of the Bush administration’s warrantless wiretapping program. This led the journalists and lawyers to suffer tangible injuries—such as having to fly to the Middle East to communicate with clients rather than talking by telephone, for example, or being more circumspect in talking to Middle Eastern sources, as journalists such as Naomi Klein and Chris Hedges alleged.

In his Supreme Court brief and in the oral argument yesterday, however, Verrilli alleged that these harms were too speculative to create legal standing to challenge the law, since the lawyers and journalists couldn’t be sure they were being surveilled under the FAA rather than under some other warrantless wiretapping authority. Essentially, the Obama administration was arguing that targets of surveillance could only challenge the law after they knew they were being surveilled, though the government would never tell them they were being surveilled before bringing a case against them.

I am sure we would all like a ruling that we cannot be sued unless we give the plaintiff permission to do so, essentially what the Obama Administration is claiming here.

Update:  From the Washington Times:

Bloomberg News reported on October 17 that Attorney General Eric Holder “prosecuted more government officials for alleged leaks under the World War I-era Espionage Act than all his predecessors combined, including law-and-order Republicans John Mitchell, Edwin Meese and John Ashcroft.” :

The Justice Department said that there are established avenues for government employees to follow if they want to report misdeeds. The agency “does not target whistle-blowers in leak cases or any other cases,” Dean Boyd, a department spokesman, said.“An individual in authorized possession of classified information has no authority or right to unilaterally determine that it should be made public or otherwise disclose it,” he said.

However, when leaks to the press benefit the administration, prosecutions from the Jusitce Department are absent. For example, AG Holder was not prosecuting anyone over who leaked information about the killing of Oasma bin Laden. The Justice Department has yet to charge anyone over leaking information regarding the U.S. involvement in cyberattacks on Iran as well as an al Qaida plan to blow up a U.S. bound airplane. In fact, the Justice Department ended up appointing one of two attorneys to the cyberattacks investigation who was an Obama donor.

Part of the problem is that if this (or any other) Administration has its way, information that embarrasses the Administration get's classified, on the dubious logic that embarrassing the Administration embarrasses America.  With this definition, all whistle-blowing becomes "espionage".

Update 2:  More on Wiretapping from the EFF

To the contrary, there’s no indication that the still-active warrantless wiretapping program—which includes a warrantless dragnet on millions of innocent Americans’ communications—has significantly changed from the day Obama took office. With regard to the FISA Amendments Act, the Obama Administration has actively opposed all proposed safeguards in Congress. All the while, his Administration has been even more aggressive than President Bush in trying to prevent warrantless wiretapping victims from having their day in court and hascontinued building the massive national security infrastructure needed to support it. ...

Some have suggested it’s possible when Obama said “safeguards” on the Daily Show, he is referring to some unspecified secret administrative rules he has put into place. Yet if these “safeguards” exist, they have been kept completely secret from the American public, and at the same, the administration is refusing to codify them into the law or create any visible chain of accountability if they are violated. But given the ample evidence of Constitutional violations since Obama took office (see: here, here, and here), these secret safeguards we don’t know exist are clearly inconsequential.

...awesome Star Wars apparel.

PS1:  For some reason they STILL are not talking about doing the movie I think would be a layup to make awesome - Han and Chewie, the early years.  Meeting each other, smuggling, adventures, winning a starship from the only black man in the universe.

PS2:  The Star Wars prequel trilogy are really beautiful to watch, but horrendous as movies in large part because the dialog is so freaking awful.  I think someone should try to dub them with better dialog.

I continue to be dumbfounded by the Obama Administration's escalating drone war in Pakistan and other nations.  On the one hand, we have a President who argued persuasively that our war on terror, by its ham-handedness, was actually creating more terrorists than it eliminated by giving people more reasons to hate America.  On the other hand, we have the exact same administration  escalating Bush's drone war by a factor of six.  The same children of the sixties that likely marched against the bombings in Cambodia are now bringing random, robotic death from the sky to countries we have not actually declared war on.  

a Washington Postinvestigative report published last week raises questions about whether bureaucratic "mission creep" has cut the program loose from its original justification. "Obama has institutionalized the highly classified practice of targeted killing," the Post's Greg Miller writes, "transforming ad-hoc elements into a counterterrorism infrastructure capable of sustaining a seemingly permanent war." He reports "broad consensus" among Obama terror-warriors that "such operations are likely to be extended at least another decade."

I could be convinced to use drones to knock off a few top managers with irreplaceable impact on the war, sort of like taking out Patton or Rommel in WWII.  But now we are taking out corporals, or the terrorist equivalent.    And ever time we kill one (with a few innocents thrown in the mix, which Obama has relabeled as combatants by definition)  we are probably creating two new terrorists.

This targetted killing is an expansive and scary new power.  The Administration owes us a reckoning, a justification which demonstrates that these drone strikes are really having some sort of positive effect.  Right now, it is hard to see, with Libya, Mali, Egypt, Syria blowing up and Afghanistan no closer to peace than it was four years ago.  What are we getting in exchange for president taking on this dangerous new authority?

PS-  the report linked notes that the death toll from drone attacks is approaching 3,000.  What happened to the press, which was so diligent about reporting all these grim milestones under Bush.  It is just amazing how far the press and the Left have gone in the tank, against their stated ideals, for Obama.

Update:  Killing of 16-year-old American in drone strike blamed on his ... having a bad father.  It was his fault!

ADAMSON: You said it is important for the president to do what needs to be done in terms of members of al Qaeda and people who pose a threat. Do you think that the killing of Anwar al-Awlaki’s son who is an American citizen is justifiable?

GIBBS: I’m not going to get into Anwar al-Awlaki’s son. I know that Anwar al-Awlaki renounced his citizenship…

ADAMSON:…His son was still an American citizen…

GIBBS:…Did great harm to people in this country and was a regional al Qaeda commander hoping to inflict harm and destruction on people that share his religion and others in this country. And…

ADAMSON:…It’s an American citizen that is being targeted without due process, without trial. And, he’s underage. He’s a minor.

GIBBS: I would suggest that you should have a far more responsible father if they are truly concerned about the well being of their children. I don’t think becoming an al Qaeda jihadist terrorist is the best way to go about doing your business. [emphasis added]

And this practically qualifies as Nixonian:

ROBERT GIBBS, Obama advisor: This president has taken the fight to Al Qaeda.

LUKE RUDKOWSKI, We Are Change: Does that justify a kill list?

GIBBS: When there are people who are trying to harm us and have pledged to bring terror to our shores, we have taken that fight to them.

RUDKOWSKI: Without due process of law?

GIBBS: We have taken that fight to them.

Update 2:  here is an interesting quote

Counterterrorism experts said the reliance on targeted killing is self-perpetuating, yielding undeniable short-term results that may obscure long-term costs. 'The problem with the drone is it’s like your lawn mower,' said Bruce Riedel, a former CIA analyst and Obama counterterrorism adviser. 'You’ve got to mow the lawn all the time. The minute you stop mowing, the grass is going to grow back.'"

Up until now, I had never know that there was actually a theory, propounded by people with a straight face, that trapping people in neighborhoods and institutions (like public schools) is a positive because it promotes civic virtue.  

If you own your home, then a lot of your wealth is tied in with the quality of your neighborhood. In theory, this should motivate you to vote more carefully in local elections. On the other hand, if you are a renter, and the neighborhood goes downhill, you will simply leave.

Collectivists prefer to trap households within specific government service areas. Their thinking is that with the “exit” option foreclosed, households will be forced to exercise their “voice” option, to everyone’s benefit. This is an argument against private schools. It goes back at least as far as A.O. Hirschman’s classic book, Exit, Voice, and Loyalty.

I would argue just the opposite, that this creates state monopolies ripe for abuse, and besides, is disastrous for labor mobility and thus the healthy functioning of labor markets.  People keep arguing that this recession is long because recessions after financial bubbles are always long.  I am not sure that is proven out by history.

I would argue a big reason this recession is long is that the nature of this bubble, being in housing markets, short-circuited one of the ways we get out of recessions, which is labor mobility.   Trapped in homes the government encouraged them to buy but now they cannot sell, people can't move to find new regional opportunities.  Where are the mass migrations to the North Dakota oil fields?

Just the other day I was making the point that reimporting pharmaceuticals from other countries where they are sold cheaper is not any sort of long-term solution to bringing down US drug costs.  Sure, it's frustrating that the US pays almost all of the fixed cost of drug development while other countries get these drugs closer to marginal cost.  But there is no solution to this that has everyone paying marginal cost -- unless, that is, we are willing to give up on all future drug development by sending the signal that these costs can no longer be recovered in market pricing.   All drug reimportation will do is raise the overseas cost of pharmaceuticals and hurt millions of poorer people.

I always find it ironic that drug reimportation is a favorite solution of many liberals, who are absolutely offended at paying higher costs in the US than what is paid in other countries.  Well, welcome to being rich.  You may think you are safely not-rich when you are advocating various soak-the-rich tax policies, but on an international scale, even many of America's bottom quartile would be considered well-off in poorer nations.  Compared to the US, even countries like France are substantially less wealthy.

Anyway, this was all brought to mind by this useful analysis of re-importation by Megan McArdle, though in this case it is in the context of textbook prices.

For all you hipster large and small towns in the northeast who have taken great pride in banning big box stores like Wal-Mart and Home Depot, good luck rebuilding after the storm.  I am sure you are going to be really happy that you banned retail establishments with worldwide logistics resources and that have developed special skills in routing supplies needed for post-storm cleanup.  Good luck getting a generator from that boutique hardware store you have been protecting.

I know what you are thinking -- in this post title Coyote has engaged in some exaggeration to get our attention.  But I haven't!  Felix Salmon actually says this, in reaction to a group of CEO's who wrote an open letter to the feds seeking less deficit spending.

There are lots of serious threats out there to the economic well-being and security of the United States, and the national debt is simply not one of them.  Nor is it growing. The chart on the right, from Rex Nutting, shows what’s actually going on: total US debt to GDP was rising alarmingly until the crisis, but it has been falling impressively since then. In fact, this is the first time in over half a century that US debt to GDP has been going down rather than up.

So when the CEOs talk about “our growing debt”, what they mean is just the debt owed by the Federal government. And when the Federal government borrows money, that doesn’t even come close to making up for the fact that the CEOs themselves are not borrowing money.

Money is cheaper now than it has been in living memory: the markets are telling corporate America that they are more than willing to fund investments at unbelievably low rates. And yet the CEOs are saying no. That’s a serious threat to the economic well-being of the United States: it’s companies are refusing to invest for the future, even when the markets are begging them to.

Instead, the CEOs come out and start criticizing the Federal government for stepping in and filling the gap. If it wasn’t for the Federal deficit, the debt-to-GDP chart would be declining even more precipitously, and the economy would be a disaster. Deleveraging is a painful process, and the Federal government is — rightly — easing that pain right now. And this is the gratitude it gets in return!

I seldom do this, but let's take this apart paragraph by paragraph:

There are lots of serious threats out there to the economic well-being and security of the United States, and the national debt is simply not one of them.  Nor is it growing. The chart on the right, from Rex Nutting, shows what’s actually going on: total US debt to GDP was rising alarmingly until the crisis, but it has been falling impressively since then. In fact, this is the first time in over half a century that US debt to GDP has been going down rather than up. 

So when the CEOs talk about “our growing debt”, what they mean is just the debt owed by the Federal government.

Duh.  Of course they are talking about the government deficit and not total deficit.   But he is setting up the game he is going to play throughout the piece, switching back and forth between government debt and total debt like a magician moving a pea between two thimbles.  We can already see the game.  "Look folks debt is not a threat, it is going down", but it is going down only at this total public and private debt number.  The letter from the CEO's made the specific argument that rising government debt creates current and future issues (see: Europe).  Just because all debt may be going down does not mean that the rise of one subset of debt is not an issue.

Here are two analogies.  First, consider a neighborhood where most all the residents are paying down their credit card debt except for Fred, who is maxing out his credit cards and has just taken out a third mortgage.  The total debt for your whole neighborhood is going down, but that does not mean that Fred is not in serious trouble.

Or on a larger scale, take consumer debt.  Most categories of consumer debt are falling in the US.  But student debt is rising alarmingly.  Just because total consumer debt may be falling doesn't change the fact that rising student debt is a serious threat to the well-being of a subset of Americans.

And when the Federal government borrows money, that doesn’t even come close to making up for the fact that the CEOs themselves are not borrowing money

What??  Whoever said that the role of the Federal government is to offset changes in corporate borrowing?  In his first paragraph, he already called the rise in total debt "alarming", and I get the sense that both CEO's and consumers agree and so they have been trying to reduce their debts.  So why should the Feds be standing athwart the private unwinding of an "alarming" problem?    And how does he know CEO's and their corporations are part of this deleveraging?  I see no evidence presented.  Corporate debt is but a small part of total US debt.  Corporations may be a part of this, or not.

In fact, they are not.  Corporate borrowing in the securities market has increased almost every quarter since 2008, such that total corporate bond debt is about 10-15% higher than in 2008 (see third chart here).  And here is total debt to GDP broken down by component  (this is for non-financial sectors) source.

Government debt is basically offsetting the consumer deleveraging.  Since consumers have to eventually pay this government debt off, as they are taxpayers too, then the government is basically flipping consumers the bird, forcing them to take on debt they are trying to get rid of.  Hard working consumers think they are making progress paying off debt, but the joke is on them - the feds have taken the debt on for them, and the bill will be coming in future taxes for them and their kids.

He might argue, "this is Keynesianism."  But is it?  If corporations are actually deleveraging, we still don't know how.  Is it through diverting capital investment to debt repayment (as I think Salmon is assuming) or are they raising capital from other sources and rejiggering the right side of their balance sheets?  And even if this deleveraging is coming at the expense of corporate investment, I thought Keynesians virtually ignored investment or "I" in their calculations  (you remember, don't you, from macro: C+I+G+X-M?).  In fact, if I remember right, "I" is treated as an exogenous variable in the famous multiplier "proof".

Money is cheaper now than it has been in living memory: the markets are telling corporate America that they are more than willing to fund investments at unbelievably low rates. And yet the CEOs are saying no. That’s a serious threat to the economic well-being of the United States: it’s companies are refusing to invest for the future, even when the markets are begging them to.

This is the real howler -- that "markets" are sending a low-interest signal.  Markets are doing nothing of the sort.  The Federal Government, via the Fed, is sending this signal with near-zero overnight borrowing rates and $30-$40 billion a month in money printing that is used to buy up government debt from the market.  If any signal is being sent at all, it is that the Federal Government is main economic priority is continuing to prop up the balance sheet and profitability of major US banks.

Investment is also not solely driven by the price of funds.  There must be opportunities where businesses see returns that justify the spending.  Unlike the Federal government, which is A-OK blowing billions on companies like Solyndra, businesses don't invest for the sake of spending, they invest for returns.  A soft economy combined with enormous government driven uncertainties (e.g. what will be our costs to comply with Obamacare) are more likely to affect investment levels than changes in interest rates.

 Instead, the CEOs come out and start criticizing the Federal government for stepping in and filling the gap. If it wasn’t for the Federal deficit, the debt-to-GDP chart would be declining even more precipitously, and the economy would be a disaster. Deleveraging is a painful process, and the Federal government is — rightly — easing that pain right now. And this is the gratitude it gets in return!

This is where economic thinking has ended up in 2012:  To Salmon, it does not matter where the Federal government spends this money, so long as it is spent.  He never even tries to justify that the government is running up debt in a good cause, because what it spends money on does not matter to him.  For him, the worst possible thing for the economy is for people to spend their money paying down debt.  Spend it on more drone strikes or more Solyndras or more squirrel research -- it does not matter to Salmon as long as the money is used for anything other than to pay down debt.

Here is the bottom line:  Businesses and individuals are trying to reduce their debt.  And many hard-working people think they are being successful at this.  But the joke is on them.  The government is running up trillions in debt in their name, thwarting American's desire to de-leverage.  Mr. Salmon wants us to thank the government for this.  Hah.

All-in-all, this is an awful argument to try to justify Congressional and Presidential fecklessness vis a vis  the budget.

It is interesting to me that the government has chosen to subsidize the least desirable actions

via Zero Hedge

For a while now I have argued that if people really are attached to Medicare as it is today, then premiums need to triple.

Along comes this analysis from Robert Dittmar via Hit and Run.  He argues almost all the current federal deficit is created almost entirely by the difference between the cost of government medical services and the premiums it charges.

As a thought experiment, let’s suppose that medical expenditures had been self-financed since the inception of government health care in the 1960s. What would our debt and deficit look like today? To answer this question, I simply added the medical care expenditure deficit back into the total government deficit. The result is depicted in [the figure below[ and is astounding (at least to me). Outside of medical expenditures and revenues, the Federal government sometimes ran a surplus and sometimes ran a deficit from 1966 until 1980. Starting in 1980, and lasting until 1994, the government consistently ran a deficit outside of medical spending, but from 1995 until 2010, it consistently ran a surplus. In 1994, the cumulative excess spending would have reached a bit over $1 trillion. But by 1999, debt due to sources other than medical spending would have been completely eliminated by surpluses! The government wouldn’t have needed to borrow again until 2011.

Of course, this is not entirely a Medicare issue.  Almost by definition, Medicaid and VA benefits are always going to be in deficit, since there are no premiums associated with these.

My normal response would be that the government not do this stuff.  But that is clearly a political impossibility.  We libertarians like to ignore realities like that, but it is true.  As such, I think two things will both be necesary

• Substantial hikes in Medicare premiums
• Some sort of system-wide cost reduction

To his credit, I suppose, Obama recognizes the need for the latter.  Unfortunately, he goes about it in exactly the wrong way.  His approach is to federalize the entire health care system and impose the same type of government-set rates on the rest of the health care system that obtain in Medicare.   But this does nothing to solve the government's cost problem.  In fact, it is likely to do the opposite.  To the extent that Medicare gets rates today that are subsidized by higher rates on non-Medicare customers, then forcing the entire health care system onto Medicare reimbursement rates will force an increase in Medicare rates, or a vast exit of health care capacity, or both.

If Medicare is going to continue to be a government program, we need to shift to a system that encourages price discovery and price shopping by medical consumers in the market end of the system.  We should be encouraging high-deductible health insurance plans rather than effectively banning them.

It was an amazing spectacle.  Two men fighting for 90 minutes to stand on the same patch of ground.  None of the issues I care about -- escalating drone strikes, rendition, indefinite detainment, Presidential kill lists, warrant-less wire-tapping -- were discussed because both men supported all of the above.  Somehow in just 11 years since 9/11, all of these issues seem to be beyond debate.  Amazing.   I have the third party debate Tivo'd, and I hear these issues got more play.  By the way, here I am in my debate gear

PS-  I am increasingly coming to the counter-intuitive conclusion that if one cares about ending these abuses of Executive power associated with the never-to-end-because-it-is-so-useful-to-politicians war on terror, then one should be rooting for Romney to win.  Not because he will end these practices -- no, I would expect him to enthusiastically embrace them.  But because the natural opponents of these practices on the Left will finally start to speak up and oppose them once they are not being practiced by their guy.  Right now, these practices are being expanded in a vacuum with almost no push-back.

you make the call -- mushroom cloud atom bomb cake for some sort of military function in 1946.

Update:  I looked at it again.  Someone please tell me this is not their wedding cake.

Greek Olympic venues.  I am sure that baseball field gets a lot of use.  And that state-of-the-art man-made kayaking course and associated stadium sure seem to be contributing a lot to GDP.

The whole world patted Greece on the back for completing this boondoggle when in fact we were just enabling an alcoholic, congratulating Greece for, in effect, driving home safely after drinking a fifth of tequila.

Glenn Greenwald has shown an admirable willingness to call out "his guy" to frequently criticize Obama's claim to be able to order Americans killed at his say-so, "without a whiff of due process, transparency or oversight".  In a recent article, he is flabbergasted that Congresswoman Debbie Wasserman Schulz, who is also head of the DNC, does not seem to have heard of the policy.

I am less surprised than he at the ignorance and mendacity of politicians.  But I did like the question Wasserman Schulz was asked:  did she trust Romney (ie her political bête noire) with such power.  This is a question that everyone should always ask at proposed expansions of government, and particularly Executive, power.  Choose the politician you least trust and/or disagree with the most.  Are you comfortable giving this power to that person?

So many of the Left (Greenwald being one of the few exceptions) have ignored this story, I think because they trust Obama.  Fine, but are you really going to trust the next guy in power?  Because now that you have established that this power is A-OK with a Democrat-Progressive child of the sixties, it is highly unlikely the next Republican in office is going to eschew it.  Wouldn't folks have been a bit more careful about giving this a pass had George Bush claimed the power.  (There is a sort of domestic policy parallel in this, in Republicans rolling over for Medicare part D when Bush was in office when they never would have done so for Clinton).

Unbelievable.  We will be burning witches next.

Six Italian scientists and an ex-government official have been sentenced to six years in prison over the 2009 deadly earthquake in L'Aquila.

A regional court found them guilty of multiple manslaughter.

Prosecutors said the defendants gave a falsely reassuring statement before the quake, while the defence maintained there was no way to predict major quakes.

The 6.3 magnitude quake devastated the city and killed 309 people.

It took Judge Marco Billi slightly more than four hours to reach the verdict in the trial, which had begun in September 2011.

The seven - all members of the National Commission for the Forecast and Prevention of Major Risks - were accused of having provided "inexact, incomplete and contradictory" information about the danger of the tremors felt ahead of 6 April 2009 quake, Italian media report.

This is what I call the layman's "CSI" view of science, which assumes that certainty is possible in analyzing and forecasting complex systems.  I am not going to blame the victim here, but I will note that scientists have to some extent made this situation far worse by insisting that they have levels of certainty they do not have, particularly in highly charged political debates (e.g. economics and climate).

Harvard physicist Luboš Motl argues it will give scientists roughly the same incentives doctors have in areas with lots of malpractice suits:

The verdict de facto lionizes crackpots who were screaming that there had to be a large earthquake and they just happened to be right in that case – while isomorphic and sometimes the very same crackpots are wrong in 99.9% of other cases in which they cry wolf – and it condemns the scientific method. They are wrong in 99.9% of cases because their predictive framework has nothing to do with science – it's all about a psychopathological paranoia – but even a broken clock is right twice a day.

The lesson for the scientists is clear: If you are a scientist who is qualified in a discipline that has implications for the safety of people, you must always recommend precautionary measures to be taken even if you conclude that the probability that something bad will happen is tiny. Italy may expect much more hysteria in various similar science-related situations than it has had so far because a court has declared a war on everyone who is honest and balanced.

Can you imagine that this sick logic would be applied e.g. to surgeons? Surgeons could spend 6 years in prison after every death of a patient whom they or others were optimistic about. It's just insane. People sometimes die, natural catastrophes sometimes occur, and it's just impossible to identify a human culprit in most cases. Only if a professional makes a mistake in which he or she has demonstrably violated some established and functional rules to reduce the risk – and whether or not this was the case may only be determined by another expert – he or she could be considered co-responsible for the deaths.

MSNBC has worked hard to be the official TV channel of the "reality-based community" which so often lectures us skeptics on how we are all anti-science and stuff.     (source)

The author of XKCD has a site now that answers odd science questions.  Here is mine:  If, at a mass of over 200 pounds, Felix Baumgartner was indeed be accelerated faster than light and pointed at the Earth, what would happen?

Isaac Asimov has a short story mystery something like this, with a pool ball accelerated to light speed.

I drove through Indio / Palm Springs on Tuesday and was aggravated, as I always am, at just how few of the zillions of government-subsidized windmills are actually turning.  Saying that one in twenty were generating power would be generous.  I know the wind was blowing because a few of them were turning.

On Thursday I drove back through and tried to take a video, though all I had was my iPhone.

You have to squint to see all the dead windmills in the back of the first shot.  If you have never been to this site, you many not be able to comprehend just how far in the distance the dead masts go.  Here is another shot from several miles further down the site

Here is my proposal.  We make this whole area a National Park and call it "Corporate State Park."  It would be at least as educational as any other National Park.

Workers get tax money to play cards

Workers at LG Chem, a $300 million lithium-ion battery plant heavily funded by taxpayers, tell Target 8 that they have so little work to do that they spend hours playing cards and board games, reading magazines or watching movies.

They say it's been going on for months.

"There would be up to 40 of us that would just sit in there during the day," said former LG Chem employee Nicole Merryman, who said she quit in May.

"We were given assignments to go outside and clean; if we weren't cleaning outside, we were cleaning inside. If there was nothing for us to do, we would study in the cafeteria, or we would sit and play cards, sit and read magazines," said Merryman. "It's really sad that all these people are sitting there and doing nothing, and it's basically on taxpayer money."

Two current employees told Target 8 that the game-playing continues because, as much as they want to work, they still have nothing to do.

"There's a whole bunch of people, a whole bunch," filling their time with card games and board games," one of those current employees said.

Obama claims to have created more jobs than Reagan.  Republicans fire back with charts that say otherwise.

Here are the true numbers for private jobs created by these Presidents in office:

• Reagan:    zero
• Obama:     zero

Just once I would like to see a Presidential candidate answer:

"Why, I didn't create a single private job in office.  Anyone I hire is by definition a public employee.  The best I can do is to keep government out of the way, as much as possible, of the private individuals who do create new businesses and new products and new technologies that tend to lead to more private employment.  The worst thing I can do is to try to be investment-banker-in-chief.  Every dollar I hand to some company I like is money taken out of the hands of 300 million private individuals, who collectively know a hell of a lot more than I as to what makes for a better business investment  (and by the way they have far better incentives that I as well, since they are investing their own hard-earned money, and should I develop the hubris to play the stimulus game, I would be investing your hard-earned money."

Via the WSJ, the Solyndra scam continues

Having sold off its manufacturing plant, fired nearly 1,000 workers and proven the non-viability of its business model, Solyndra's only real assets are what the IRS calls "tax attributes." These are between $875 million and $975 million in net operating losses that can reduce future taxable income, which the IRS values as high as $350 million. Before it went toes up, Solyndra also accumulated $12 million in solar tax credits that can reduce tax liabilities dollar for dollar.

Tax-loss carry-forwards are routine but worthless if a company can't turn profits to pay taxes on. So Solyndra's owners are asking the court to liquidate the rest of the business and contribute a net $6.7 million to pay off creditors for pennies on the dollar. A holding corporation will then emerge from Chapter 11 that won't make products or employ workers, but it will get the Solyndra tax offsets.

The dummy company is owned by Argonaut Ventures I LLC, Solyndra's largest shareholder and the primary investment arm of the George Kaiser Family Foundation. Mr. Kaiser is a Tulsa oil billionaire who bundled campaign checks for Mr. Obama in 2008.

Wow, who could have predicted this?   Well, lots of folks, including me just over a year ago.   I actually underestimated the value, assuming the losses would be worth about $150 million in avoided taxes, not the $350 million the IRS now pegs them at.  If I can figure out this game, the Obama Administration had to know what was going on.

If the Administration allows this to happen (and remember that in the GM boondoggle,  Obama waived the traditional rules that have bankrupt companies losing their tax loss carryforwards, giving GM a multi-billion dollar tax subsidy almost no one counts in the bailout costs), this will make Kaiser's last cash investment in Solyndra one of the great crony deals of all time.

If you remember, Kaiser (via Argonaut) invested $75 million as Solyndra was going down the tubes.  No rational person could have thought that amount would have saved the company, and it didn't.  What it bought, we now know, is three things:

• Kaiser got the US Government to give up their lead creditor position to Kaiser, basically putting the US Government behind the Obama donor to get repaid and reducing the taxpayers' influence in the bankruptcy
• It gave Kaiser a few precious months to loot the company.  Between that $75 million investment and the bankruptcy, Solyndra sold off most of its liquid assets at a discount to .... Argonaut, the group controlled by Kaiser
• It looks like Kaiser will get nearly a billion dollars in tax losses that can be used to reduce its future taxes by $350 million.

The First Amendment is nearly the last portion of the Bill of Rights that courts seem to take seriously -- treating all the others as if the Founders were just kidding.  The 9th and 10th went early.  The 2nd has been nibbled away at.  The 4th has become a bad joke under the last several Administrations.  We abandoned the 6th somewhere out in Guantanamo Bay and the 5th has fallen victim to the drug war.  (The 3rd is still alive and well, though!)

But today freedom of speech is under fire by those who increasingly claim [some] people have a right not to be offended that trumps free speech.  Just who has this new right and who does not (certainly white males don't seem to have it) is unclear, as well as how one can ever enforce a standard where the victim has full discretion in determining if a crime has been committed, are left unexplained.

We have seen this theory of speech gaining adherents in Universities, for example, so while its continued gains are worrisome though not entirely unexpected.  The one thing I never saw coming in the increasingly secular west was how much momentum anti-blasphemy laws would gain, and how much these laws would be pushed by the Left**.

Jonathon Turley has a good article on this topic in the Washington Post, as linked by Reason

Ken at Popehat has a roundup of creeping ant-blasphemy law over the last year (it is hard for me to even write that sentence seriously, it sounds so Medieval)

**It is in fact insane that the Left has so many people coming out in favor of protecting Islam from blasphemy.  I know it is not everyone, but it is just amazing that a good number of people who call themselves liberal can excuse violence by a misogynist culture that is meant to suppress speech in the name of Gods and Churches.  We have actual children of the sixties arguing that threats of violence are sufficiently good reason to suppress speech and that a religion that basically enslaves women needs laws that protect it from criticism  (these  same children of the sixties that all protested the Christmas bombings of Cambodia are also launching drone strikes willy nilly on civilians and claiming that the President can assassinate Americans solely on his say-so, but those are different topics.)

This all goes to prove my long-time conviction that the political parties have very little foundation in any real morality, and that they tend to simply take positions opposite of the other party.  Since Conservatives staked out the anti-Islam position, the Left feels the need to find some way to be pro-Islam.  Weird, but I can't think of any other explanation.  The only exceptions to this rule are 1) expansions of Presidential power and 2) taking the drug war to new stupid extremes.  Both parties seem unified in supporting these two things, at least when their guy is in office.

Via Cafe Hayek, Paul Krugman says:

And surely the fact that the United States is the only major advanced nation without some form of universal health care is at least part of the reason life expectancy is much lower in America than in Canada or Western Europe.

If I were a cynical person, I might think that the tortured and overly coy syntax of this statement is due to the fact that Krugman knows very well that the causation he is implying here is simply not the case.  Rather than rehash this age-old issue here on Coyote Blog, let's roll tape from a post a few years ago:

Supporters of government medicine often quote a statistic that shows life expectancy in the US lower than most European nations with government-run health systems.  But what they never mention is that this ranking is mainly due to lifestyle and social factors that have nothing to do with health care.  Removing just two factors - death from accidents (mainly car crashes) and murders - vaults the US to the top of the list.  Here, via Carpe Diem, are the raw and corrected numbers:

And so I will fire back and say, "And surely the fact that the United States is the only major advanced nation without some form of universal health care is at least part of the reason life expectancy related to health care outcomes is so much higher in America than in Canada or Western Europe.

And check out the other chart in that post from that study:

US cancer survival rates dwarf, yes dwarf those of other western nations.    Even black males in the US, who one would suppose to be the victims of our rapacious health care system, have higher cancer survival rates than the average in most western nations (black American women seem to have uniquely poor cancer survival rates, I am not sure why.  Early detection issues?)

All this data came originally from a post at Carpe Diem, which I refer you to for source links and methodologies.

Kudos to a reader who pointed this one out to me from the Mail online.  It is a favorite topic of mine, the use by the more-scientific-than-thou media of steam to illustrate articles on smoke and pollution.

Check out the captions - smoke is billowing out.  Of course, what they are likely referring to -- the white plumes from the 8 funnel-shaped towers -- is almost certainly pure water.  These are cooling towers, which cool water through evaporative cooling.  These towers are often associated with nuclear plants (you can see that in the comments) but are used for fossil fuel plants as well.  There does appear to be a bit of smoke in the picture, but you have to look all the way in the upper left from the two tall thin towers, and one can see a hint of emissions.  Even in this case, the plume from the nearer and smaller of the two stacks appears to contain a lot of water vapor as well.  My guess is the nasty stuff, to the extent it exists, is coming from the tallest stack, and it is barely in the picture and surely not the focus of the caption.

The article itself is worth a read, arguing that figures from the UK Met office show there has not been any global warming for 16 years.  This is not an insight for most folks who follow the field, so I did not make a big deal about it, but it is interesting that a government body would admit it.

... because it really annoys public officials when you don't vote for the candidates they have approved.

Every write-in entry must be verified with the list of legitimate write-in candidates for that election, by a three-member review team. In the August primary election, Maricopa County elections officials saw the biggest ratio of fake-to-legitimate write-in candidates in recent memory: Among 90,433 entries in write-in slots, 1,738 were votes for legitimate write-in candidates.

Each fake entry cost Arizona counties money and manpower and slowed down the tabulation process, said Maricopa County Recorder Helen Purcell, who oversees elections.

“They think they’re making some kind of a statement or being cute,” Purcell said.

The rise of write-in candidates - over 90,000 in one small-turnout primary election, strikes me as a very interesting untold story about the election and a metric of voter frustration with the whole process.

So don't be afraid to go off the board -- it is your right, no matter how much it irritates petty bureaucrats.  Mal Reynolds for President!

I saw this at Flowing Data -- this is apparently a chart prepared by some sustainability group at MIT to map solar potential of different sites in Cambridge, MA

Look at all the sites marked "excellent".  I have news for the brilliant folks at MIT.  Even the best, flattest roof facing south in Cambridge, MA still rates a "sucks" for solar potential. (source)

Even with massive state and Federal subsidies, those of us who live in the bright red areas find that roof-top solar PV is still an - at best - marginal investment with very long payback times.  We all hope to change this in the future, but there is no way a city like Cambridge with approximately half the solar insolation we get in AZ is going to have "excellent" roof top solar PV sites.

In 2010, Arizona v0ters passed proposition 100, a 1% "temporary" sales tax increase that was meant to help fill in the budget hole created by the recession.  The tax was only to last 3 years.

It is pretty clear that by the end of 2013, when the tax expires, the rationale for the temporary tax cut will have passed.  Already the state's finances are improving and all signs are that by 2014 the economy and real estate market should be greatly recovered.

But, having got taxpayers used to paying the higher tax, supporters of big government and public employees unions have put a proposition on the ballot this year (204)  to make the 2010 tax increase permanent.  The tax extension will go to a mish-mash of new programs.

This is how the government spending ratchet works.  A "temporary" tax increase is justified in a fiscal emergency to fill in a recession-created hole.  Government insiders decide they like having more money, and make the tax permanent.  The new money is used to create brand new programs.  Then, in the next recession, when all these brand new programs are now "essential" and "beyond the reach of even the worst austerity", a new, even higher "temporary" tax increase is necessary.