Coyote Blog

Fortunately, Suze Orman and Jim Cramer are on the case.   Because why do we have a government if not to keep asset bubbles inflated as long as possible?

I am in Europe for a little bit.  I have not blogged because I either had a good Internet connection, but no time, or vice versa.  I am now on Lake Maggiore at a little town called Gerra for a few days, and watching the rain on the lake (perhaps this is disappointing for other travelers, but for Phoenicians watching a cold rail fall is a treat).  This area is an odd one, barely inside Switzerland.  Most of the folks are bilingual in German and Italian but most speak Italian day to day and most of the road signs are in Italian.  But they price their services in Swiss Francs, so they are no fools.  It all seems to work fine and be a source of pride for local residents.

Here are a few notes so far from our trip:

• T-Mobile's rock-bottom international roaming rates appear to be the real deal.  I have gotten service everywhere we went and free (if sometimes slow) data.  The only problem so far is I can't send or receive MMS (SMS is fine) so I can't send my kids the usual picture travel-log I like to send.
• Until today, XCom Global's European roaming wifi hotspot was great.  It worked in Switzerland, Austria, and Germany but failed me in Austria when the separate Austrian unit they sent me turned out to have a bad sim card.  They claim the other unit that works everywhere else will work in Austria as well -- we shall see, but if that is true, why did they send me a separate Austrian unit?
• The Mercedes plant tour at Sindelfingen, Germany is great.  I could have stayed all day.  I have been on a lot of plant tours, and some have been very intimate with the machinery.  But those tended to be private tours.  This is the most up-close and personal I have ever gotten on a public tour.  The tour covered a large stamping plant and a final assembly line.  We took the 1:00 English tour, which I think is the most complete one.
• I have never been to Baden Baden, Germany before.  A beautiful town with a 19th century vibe, we stopped there only because we needed to stop somewhere not far from Stuttgart.  We ate an incredible meal at the Michelin one-star Brennar's Park Hotel Restaurant.  Lichtentaler Allee was one of the most beautiful and peaceful public parks I have ever walked.
• Last night we went to the opera at Bregenz (you may have seen it in Quantum of Solace, or you can google the amazing stages).   I thought the performers were from meh to fine, but not outstanding.  The staging though was gorgeous, probably the most beautiful stage production I have ever seen.

Apparently Alexa ranks Coyoteblog 181 among "Conservative" and center-right news and opinion sites sites.  I am not sure how a web site that supports gay marriage, legalized narcotics, and legalized prostitution can be "Conservative" but I understand that there are those who group everyone who is not socialist under the "conservative" moniker.  Honestly, in the age of RSS feeds and twitter and many other ways to read a site, I am not sure if this means anything.  Particularly since I see no possible way we have more readers than Volokh.  But there you go.  Thanks for the link from Maggies Farm, who aces us out at 159.

Vox shares what is perhaps the greatest achievement in human history, the continuing disappearance of absolute poverty:

Readers of this blog will likely  have seen this before (though it may well be new to Vox readers).  Here is the amazing thing about the Vox article:  It never once mentions capitalism, trade, economic freedom, or any synonym.  Here is a sampling of the tone of the accompanying article:

There's still much work to be done: 14.4 percent of the world amounts to 1 billion people who still need to be lifted out of extreme poverty. And making sure everyone's making at least $1.25 a day isn't the end of the fight either. The world's median income is still only $3 to $4 a day. By comparison, the poverty line in the US for a family of four is $16.61 per person per day. Once under-$1.25-a-day poverty is eradicated, the world needs to set about eradicating under-$15-a-day poverty, which will be a substantially harder task.

Vox is treating this like it is the result of some top-down effort, using the same language one might use to describe the eradication of Yellow Fever in Panama.  As if this resulted (and as if future progress depended on) some all-hands-on-deck technocratic government program.

No one "set about" eradicating poverty.  It happened because governments, at least to some extent, got out of the way and didn't stop it.  China is a great example.  Mao "set about" trying to eliminate poverty using many of the approaches likely favored by the Vox staff, and killed a few tens of millions of people in the process.

Here is my theory of the world's accelerating wealth formation that I have written on a number of times before.  This chart largely results from:

• There was a philosophical and intellectual change where questioning established beliefs and social patterns wentfrom being heresy and unthinkable to being acceptable, and even in vogue. In other words, men, at first just the elite but soon everyone, were urged to use their mind rather than just relying on established beliefs and appeals to authority.
• There were social and political changes that greatly increased the number of people capable of entrepreneurship. Before this time, the vast vast majority of people were locked into social positions that allowed them no flexibility to act on a good idea, even if they had one. By starting to create a large and free middle class, first in the Netherlands and England and then in the US, more people had the ability to use their mind to create new wealth. Whereas before, perhaps 1% or
  less of any population really had the freedom to truly act on their ideas, after 1700 many more people began to have this freedom.

So today's wealth, and everything that goes with it (from shorter work hours to longer life spans) is the result of more people using their minds more freely.

I need to try to be fair to Yelp.  A reader sends me some second-hand comments from an ex-employee at Yelp:

He absolutely believes that there is no way for Yelp to hide or promote reviews just based on who the company is. This doesn't mean that they're not, of course. What my colleague says, though, is that the overriding criterion that they use to determine if a review should be "recommended" is if they can verify that the writer is a real person.

There are a couple ways you can do this, but two that will actually cause all of your past reviews to suddenly become recommended:

1) Work for Yelp--not really helpful, I know. I am told that Yelp will instantly fire anyone who leaves reviews while working there. But, once you leave, all of your reviews will always be recommended.

2) Connect your Yelp account to your Facebook, then connect with 100 friends.

There are other ways to have past reviews always come up recommended. If you post a review or several reviews, and, in aggregate, you get four interactions (they are marked as funny, cool, or useful), this will happen.

So I went back and looked.  To see if one's reviews are in the non-recommended purgatory, you have to log out (Yelp will pretend to you that you are recommended until you log out**).  Sure enough, all my 9 reviews seem to be in purgatory.  In other words, any effort I expended on reviews has been wasted, because Yelp does not show them.  I tend to write longer reviews, so apparently writing fewer more detailed reviews is not a practice Yelp wants to promote.  Do they prefer folks who spam lots of short reviews?  I can see how that may be, since more reviews bulk up Yelp's numbers.

I don't know what to make of this feedback.  At one level, it seems right and makes sense.  There are a lot of not recommended reviews where the review has just that one review.  But not always.  For example, for this store, reviewers with no picture, no name (just initials), just 2 total reviews and no friends are recommended, but someone who has a picture, a real name, 1 friend and 31 reviews is not.   I have to say that either their algorithm has some purposely random element (to defeat reverse engineering) or else there are other factors involved than just the ones listed above.  Also, some of the advice above simply has to be wrong.  For example, the last sentence makes no sense since it is impossible to upvote or favorite reviews in not-recommended purgatory (they don't even give you the buttons to do so).

I will post some more reviews over time to see if I get pulled out of spam status by their computer, or if I am permanently exiled based on a corporate complaint.

** By the way, this could be the subject of a gripe in and of itself.  It should not be so opaque that one's posts are all getting sent to the Yelp spam folder.  It is kind of insulting to invest this effort and then find out later Yelp is trashing everything I write.

The people behind all of this were frightened of Muskie and that's what got him destroyed. They wanted to run against McGovern. Look who they're running against.

-- Deep Throat, in the movie "All the President's Men"

This is not the most amazing story I have ever heard told about political machinations, but it is perhaps the most amazing told by a sitting politician about her own actions.  How Democratic Senator Claire McCaskill (proudly) manipulated the GOP primary to get the incredibly weak opponent she wanted.  As told by ... Claire McCaskill.

It was August 7, 2012, and I was standing in my hotel room in Kansas City about to shotgun a beer for the first time in my life. I had just made the biggest gamble of my political career—a $1.7 million gamble—and it had paid off. Running for reelection to the U.S. Senate as a Democrat from Missouri, I had successfully manipulated the Republican primary so that in the general election I would face the candidate I was most likely to beat. And this is how I had promised my daughters we would celebrate.

 

Update:  This post may be unfair, as discussed here.  I am not fully convinced, though.

I won't repeat what I wrote before, but several months ago I wrote a long article about my suspicions that Yelp was using its review recommendation system to disappear reviews its corporate sponsors and their attorneys did not like.   My evidence was based on my actual experience writing a detailed, fact-based negative review of an insurer, only to have it disappear from the site and be left out of the insurer's overall score.

It took me a long time to find the review, along with dozens of others, in a purgatory of "not recommended" reviews reachable from a near invisible link that doesn't even look like a link.  I won't retype the whole post but my evidence was in part:

• Yelp says it is sending reviews to not-recommended purgatory because they are of lower quality or have reviewers with less reviewing history on Yelp.  But a scan of the reviews in my case showed no such pattern.  Not-recommended reviews were at least as (and arguably more) detailed than recommended reviews, and there was no discernible difference in reviewer experience.  The not recommended reviews were also no less moderate, as there was immoderate language (and horrible grammar) in accepted reviews while there were calm and reasoned reviews that were rejected.
• What the not-recommended reviews had in common was that they tended to be more negative on average than the recommended ones (which is hard to do because the recommended reviews average to about 1.5 stars)
• Looking at several local independent restaurants, I saw no or few not-recommended reviews and pages and pages of recommended reviews, a ratio that was reversed for the major insurer which presumably has far more resources to intimidate or buy off Yelp.  For the insurer, there were two not-recommended reviews for every one recommended one.
• I knew this insurer to be willing to litigate against bad reviews, since they have sued me for libel to remove my review.  Presumably, they would not hesitate to threaten Yelp as well.
• Yelp already has a review quality system driven by upvoting by customers based on the usefulness of the review.  So why the need for an entirely parallel review-rating system unless that rating system was for an entirely different purpose than quality control.

Yelp got a lot of grief a while back accusing it of deleting reviews, so its CEO has pledged on multiple occasions that it doesn't do so.  I believe them.  Instead, it looks like Yelp disappears reviews in a way that the CEO can truthfully say they were not deleted, but they are for all intents and purposes invisible to the public.

Anyway, all this was spurred by the following trailer sent to me with this article from a reader.  Apparently a film called Billion Dollar Bully is being made about Yelp, and from the hints in the trailer it appears that they will be taking on many of the issues I listed above and frankly have only been able to guess at rather than prove.  Brava!

Verizon's decision to stop subsidizing smartphone purchases in exchange for 2-year contract lock-ins is going to be a big change in the industry.  It will be interesting to see what happens to handset prices.  A while back someone I know had a Verizon iphone that they lost.  They were talking about going out and buying a new one to replace it.   I said, "uggh, an $800 hit."  They looked at me like I was crazy.  They said they had paid something like $300 for it.  I pointed out that that was likely with a 2-year contract lock-in, and that a replacement would go full price which can run over $800 depending on which version they had.

They did not believe me.  In fact they were almost indignant that I would suggest such a thing.  And went running off the the Verizon store with every confidence an iPhone 6 plus could be purchased for $200-$300.

This situation has obtained for a decade.  It will be interesting to see what happens to iPhone sales when customers are exposed to something closer to the true price.  Since most iPhones without contract go for more (substantially more in fact) than the laptops I am buying my employees, I can't help but think that iPhone revenues will suffer.  (Of course, the result could be everyone who wants a new iPhone switching to AT&T from Verizon  -- it is not at all clear Verizon's new no-subsidy rates are low enough to be a better net deal than the old rates+subsidy).

I use Verizon because my business operates in the boondocks and Verizon is almost always the last carrier standing when I drive out to our locations.  I wonder if Verizon will now be allowing unlocked phones?  I presume this will be the case -- T-Mobile is the other company that ended phone subsidies and I moved my unlocked Nexus to them.

By the way, the current T-Mobile $50 a month plan allows unlimited data and text when roaming in 120 countries, and $0.20 a minute international calls from any of these countries.  This is even better than you can do with the old method of buying an international sim card and switching when you land.   No other US carrier is even in the ballpark.  You have to pay Verizon $20 a month or so to get them to reduce international roaming text costs to 50 cents each with some paltry amount of data.  For international travelers, there is no other choice even close to T-Mobile among US carriers.

A reader sent me this:  A recent McKinsey study looked at large infrastructure projects (over $1 billion).  In the introduction they observe:

Rail projects, for example, go over budget by an average of 44.7 percent, and their demand is overestimated by 51.4 percent.

We actually can combine these two numbers and find that the total cost per user of these systems was over-estimated by 117%, meaning the cost per user was on averagemore than double what was promised when these projects are sold to the taxpayers.

At the end of the day, the first segment of the line cost $75,000 per round trip daily raider.  We could have bought every regular rider a prius and a lifetime of gas and still saved money.

I operate recreation areas in the US Forest Service and from time to time get criticized that my profit adds cost to the management of the facilities, and that the government would clearly be better off with a non-profit running the parks since they don't take a profit.  What they miss is that non-profits historically do a terrible job at what I do.  They begin in a burst of enthusiasm but then taper off into disorder.    Think about any non-profit you have ever been a part of.  Could they consistently run a 24/7/365 service operation to high standards?

Don Boudreaux has a great quote today that touches on this very issue

from page 114 of the 5th edition (2015) of Thomas Sowell’s Basic Economics:

While capitalism has a visible cost – profit – that does not exist under socialism, socialism has an invisible cost – inefficiency – that gets weeded out by losses and bankruptcy under capitalism.  The fact that most goods are more widely affordable in a capitalist economy implies that profit is less costly than inefficiency.  Put differently, profit is a price paid for efficiency.

It is also the "price" paid for innovation.

Governments have spent so much, to so little effect, to try to stimulate the current economy, I wonder where they will find the resources to spend more the next time?  Because you can be sure that despite the fact that we are likely near the top of a weak cycle, no one is paying back what was spent in the last recession or proposing to reduce central bank balance sheets.

This is a couple of years old, but tells the story pretty well:

The financial crisis that began in late 2007, with its mix of liquidity crunch, decreased tax revenues, huge economic stimulus programs, recapitalizations of banks and so on and so forth, led to a dramatic increase in the public debt for most advanced economies. Public debt as a percent of GDP in OECD countries as a whole went from hovering around 70% throughout the 1990s to almost 110% in 2012. It is now projected to grow to 112.5% of GDP by 2014, possibly rising even higher in the following years. This trend is visible not only in countries with a history of debt problems - such as Japan, Italy, Belgium and Greece - but also in countries where it was relatively low before the crisis - such as the US, UK, France, Portugal and Ireland.

So over a third of the debt that has been built up in all of history by Western nations was added in just a few years from 2007-2012.  At the same time, the central banks of these countries were adding to their balance sheets like crazy, essentially printing money in addition to this deficit spending.  In the US, the Fed's balance sheet as a percent of GDP hovered around 6% until the second half of 2008.   That had tripled to over 18% in 2012 (source).  At the same time, European central bank assets grew from about 7% to over 16% of GDP.

James Taranto has a regular feature named after a reporter named Fox Butterfield.  The feature takes statements such as "Despite Mary getting a PhD in Peruvian gender studies from Harvard, she has struggled to find a job" and argues that the "despite" should be replaced by "because".

This is certainly true of the statement that "despite record stimulus and Fed balance sheet expansion, the economy has remained sluggish".  That "despite" should be "because of".  The government continues to distort the allocation of capital and wonders why investment is sluggish and tends towards bubbles in certain assets.  Japan has stimulated for 25 years to absurd levels of debt and has gotten 25 years of sluggishness in return.

All this reminds me of a story in one of my favorite business books, "Barbarians at the Gate."  Back in the day, tobacco companies had a practice of jamming inventory into the channel just ahead of the semi-annual price increase.   They called this "loading."  The channel liked it because they got cheap product to sell at the new higher prices.  The tobacco companies liked it because it boosted quarterly revenues at the end of the quarter.  But that boost only happens once.  To show growth the next quarter, one must load even more.  Over time, they were jamming huge amounts of inventory into the channel.  I have never been a smoker, but apparently freshness is an issue with cigarettes and they can go stale.  Eventually, the company was loading so much their sales started to drop because everyone was buying stale cigarettes.

In find this a powerful metaphor for government interventions in the economy today.

Postscript:  I will give another example.  In Arizona, we are on a July-June fiscal year.  Years ago, some government yahoo had the bright idea to close a budget hole by passing a law that all businesses had to pre-pay their estimate of sales taxes due in July a month earlier in June.  For that one glorious year, politicians had 13 months of revenue to spend rather than 12.

But to set things aright the next year, they would have to live with just 11 months of revenue.  No way they were going to do that!  So they did the pull-forward thing again to get a full 12 months.  And they have done it every year since.  It has become an institution.  All this costs a ton of money to process, as the state must essentially process a 13th return each year, presumably paying overtime and temp costs to do it.  All for the benefit of one year where they got the use of one month of revenue early, we have been stuck with higher state operating costs forever.

My headline is probably the most accurate description of how China's devaluation of the yuan yesterday affects this country.  But I bet you will not see it portrayed that way in any other media.  What you are going to see, particularly as the Presidential election races heat up, are multiple calls to bash China in some way to punish it for being so generous to American consumers.  Why?  Because the devaluation of the yuan will negatively affect the bottom line of a few export sensitive companies.  And if we have learned anything from the Ex-Im battle, things that GE and Boeing like or hate are much more likely to affect policy than things that benefit 300 million consumers.  Make no mistake, protectionist measures are the worst sort of cronyism, benefiting a few companies and workers and hurting everyone else (look up concentrated benefits, dispersed costs).

By the way, aren't the worldwide competitive devaluation sweepstakes amazing?  If everyone is doing it, then devaluations have no substantive effect on trade (except to perhaps decrease its magnitude in total), which just adds to the utter pointlessness of the game.  And it is hilarious to me to see US elected officials criticizing China for "manipulating" its currency, as if the US Fed hasn't added several trillion dollars to its balance sheet over the last few years in a heroic attempt to manipulate the value (downwards) of our own currency.

...the President and his supporters sure make it hard.  In his speech last week at American University he said:

Just because Iranian hardliners chant “Death to America” does not mean that that’s what all Iranians believe. (Applause.) In fact, it’s those hardliners who are most comfortable with the status quo. It’s those hardliners chanting “Death to America” who have been most opposed to the deal. They’re making common cause with the Republican caucus. (Laughter and applause.)

That last part seems to have gotten the Conservatives in an uproar, and I suppose I can see why, though I am reluctant to join in the usual Internet rush to burn someone over what may have been a ham-handed joke.

It is actually the first sentence that floors me.  Either the President is straight-out being deceptive, or he is a total foreign policy naif.  Iran is not like the US.  People in Iran are not allowed to consistently chant messages with which the rulers do not agree.  As a minimum, they are met with violence and arrest (e.g. in 2009 with the Green movement).  So if anyone is chanting "Death to America" at public events, it is with the tacit approval of the nation's rulers.  It may very well be that the mass of Iranians don't agree with that message, but in Iran, what the mass of Iranians believe is largely irrelevant.

New York is proposing a $15 minimum wage for any fast-food restaurants that are part of a national chain with 30 or more stores.  How this survives any sort of equal protection test is beyond me -- if I own a restaurant and call it "coyote's place" I don't have to pay $15, but if I own a single restaurant where I pay franchise fees to McDonald's, I do.

Let's leave the inevitable court challenges on fairness aside.  Of all the possible industries, I wonder why the focus on just fast food and on just large franchises.  Some of it is obviously mindless Progressive soak the rich thinking, and some of it is a liberal distaste for any foods that are not kale.  Is it just because the fast food workers have been the most vocal?  If so, that is pretty lame the the government is merely focusing on the squeaky wheel, a real indictment of any pretensions technocratic politicians have to legislating intelligently.

But I wonder if it is something else.  Pick a progressive on the street, and in the unlikely event they can name any economic study, that study will probably be Card and Krueger's study of the effect of a minimum wage increase in New Jersey.   Sixty bazillion studies have confirmed what most of us know in our bones to be true, that raising the price of labor decreases demand for that labor.  Card and Krueger said it did not -- and that a minimum wage increase may have even increased demand for labor -- which pretty much has made it the economic bible of the Progressive Left.

What intrigues me is that Card and Krueger specifically looked at the effect of the minimum wage on large chain fast food stores.  In this study (I will explain the likely reason in a moment) they found that when the minimum wage increased for all businesses in New Jersey, the employment at large chain fast food restaurants went up.

So I wonder if the Progressives making this ruling in New York thought to themselves -- "we want to raise the minimum wage.  Well, the one place where we KNOW it will have no negative effect from Card and Krueger is on large fast food chains, so...."

By the way, there are a lot of critiques of Card & Krueger's study.  The most powerful in my mind is that when a minimum wage is raised, often the largest volume and highest productivity companies in any given business will absorb it the best.  One explanation of the Card & Krueger result is that the minimum wage slammed employment in small ma and pa restaurants, driving business to the larger volume restaurants and chains.  As a whole, in this theory, the industry saw a net loss in employment and a shift in employment from smaller to larger firms.  By measuring only the effect on larger firms, Card and Krueger completely missed what was going on.

John Scalzi tries to explain privilege to non-SJW-types by saying that being a white male is like playing life on "easy" difficulty.

I'll grant I benefited from a lot of things growing up others may not have had.  I had parents that set high standards, taught me a work ethic, taught me the value of education, had money, and helped send me to Ivy League schools (though the performance there, I would argue, was all my own).

Well, for those of you concerned about living down a similar life of privilege, I have a solution for you: start a business.  Doing so instantly converted me into a hated abused underclass.  Every government agency I work with treats me with a presumption of guilt -- when I get called by the California Department of Labor, I am suddenly the young black man in St. Louis called out on the street by an angry and unaccountable cop**.  Every movie and TV show and media outlet portrays me as a villain.  Every failing in the economy is somehow my fault.   When politicians make a proposal, it almost always depends on extracting something by force from me -- more wages for certain employees, more health care premiums, more hours of paperwork to comply with arcane laws, and always more taxes.

Postscript:  I will add an alternative for younger readers -- there is also a way to play college on a higher difficulty:  Try to be a vocal male libertarian there.  Write editorials for the paper that never get published.  Sit through hours of mindless sensitivity training explaining all the speech limitations you must live with on campus.  Learn how you can be charged with rape if your sex partner regrets the sex months later.  Wonder every time you honestly answer a question in class from a libertarian point of view if you are killing any chance of getting a good grade in that course.  Live every moment in a stew of intellectual opinion meant mainly to strip you of your individual liberties, while the self-same authoritarians weep and cry that your observation that minimum wage laws hurt low-skilled workers somehow is an aggression against them.

** OK, this is an exaggeration.  I won't likely get shot.  I don't want to understate how badly abused a lot of blacks and Hispanics are by the justice system.   I would much rather be in front of the DOL than be a Mexican ziptied by Sheriff Joe.  But it does give one the same feeling of helplessness, of inherent unfairness, of the unreasoning presumption of guilt and built-in bias.

I wanted to add something to my post on Hiroshima the other day.  The point of the post was not to argue for any comfort with atomic weapons or the killing of tens of thousands of civilians (mutual assured destruction has got to be the dumbest, scariest, craziest basis for international relations ever conceived).  The point was to argue that most arguments about Hiroshima are stripped of historical context, colored by our experience of the Cold War, and based on increasingly popular but incorrect assumptions about the rulers of Japan at the end of the war.

So as an adjunct to that post, I wanted to emphasize that I think civilian bombing (whether conventional or nuclear) to be the worst single new idea of the 20th century.  The absolute worst ideas of the 20th century were likely Marxism and genocide, but these were not new to the 2oth century.  But strategic bombing of civilian populations far to the rear of the front lines, whether convention or nuclear, by airplane or missile, was almost entirely new.  It was an awful, terrible idea that haunts us to this day.

It is in this context that I don't single out Hiroshima for particular opprobrium.  It was a change in technology in a horrendous program.  The worst of the lot in my mind was Arthur Harris.  Harris, head of the British strategic bombing effort through most of the war, did not even pretend to be targeting industries or factories.  He thought such precision bombing to be madness.  His very specific goal was to kill and "unhouse" as many civilians as possible, and he measured the British bombing effort in those terms.

Last year, when Congress did a 1-year renewal of legislation governing public recreation and fee policies (FLREA) they left out a tiny provision that discouraged government agencies from taking back tasks they had privatized.  With that gone, parts of the USFS immediately began to move to bring certain operations back in house, even when doing so required that they both spend more tax money AND reduce services levels to the public.  Such is the strength of incentives in any government bureaucracy to expand their scope, staffing, and budget, even when it makes no sense for the public.

This week in an article at PERC, I tell one such story in depth. Here is an excerpt:

Consider one example: The Tahoe National Forest in California recently took the operation of some of their parks out of private hands, ending a nearly 30-year partnership with one of our competitor companies.

Did the Forest Service do it to save money? The private concessionaire operated entirely with the user fees paid by visitors, using no taxpayer money, and even paid rent back to the government. The agency’s in-house operating plan for running these campgrounds requires at least $2 million in taxpayer money over the next five years to supplement user fees.

Did they do it to improve service? The private concessionaire employed more than 60 paid workers living on site, with managers who worked weekends and holidays. The Forest Service plan calls for half this number of paid employees, and none will live on site or work weekends—the busiest time for recreation.

Did they do it to address some egregious for-profit abuse? The agency is actually planning to replace dozens of paid private workers with volunteers. At the same time that the federal government is mandating higher minimum wages for campground concessionaires, the Forest Service is replacing paid workers with unpaid labor.

Did the Forest Service do it to keep user fees low? The original stated reason for kicking out the private operator was the concessionaire’s request to increase user fees in response to recent increases in California’s minimum wage. In the end, however, the Forest Service raised fees even higher than those proposed by the concessionaire.

This article on Saudi Arabia, shale oil, and oil prices was interesting throughout

Saudi Arabia is effectively beached. It relies on oil for 90pc of its budget revenues. There is no other industry to speak of, a full fifty years after the oil bonanza began.

Citizens pay no tax on income, interest, or stock dividends. Subsidized petrol costs twelve cents a litre at the pump. Electricity is given away for 1.3 cents a kilowatt-hour. Spending on patronage exploded after the Arab Spring as the kingdom sought to smother dissent.

The International Monetary Fund estimates that the budget deficit will reach 20pc of GDP this year, or roughly $140bn. The 'fiscal break-even price' is $106.

Far from retrenching, King Salman is spraying money around, giving away $32bn in a coronation bonus for all workers and pensioners.

He has launched a costly war against the Houthis in Yemen and is engaged in a massive military build-up - entirely reliant on imported weapons - that will propel Saudi Arabia to fifth place in the world defence ranking.

The Saudi royal family is leading the Sunni cause against a resurgent Iran, battling for dominance in a bitter struggle between Sunni and Shia across the Middle East. "Right now, the Saudis have only one thing on their mind and that is the Iranians. They have a very serious problem. Iranian proxies are running Yemen, Syria, Iraq, and Lebanon," said Jim Woolsey, the former head of the US Central Intelligence Agency.

Money began to leak out of Saudi Arabia after the Arab Spring, with net capital outflows reaching 8pc of GDP annually even before the oil price crash. The country has since been burning through its foreign reserves at a vertiginous pace.

... but the images are pretty awesome.  via here.  Taken from the DSCOVR satellite orbiting a million miles away from Earth (my guess is that it sits at the Earth-Sun L1 Lagrange point, where the side of Earth it could see would always be in full sun and the back side of the moon would be fully illuminated as it passes Earth)

My guess is that there are no new cocktails under the sun, but I have not found anything similar out there so here is my current favorite homegrown concoction.  Call it a Coyote Cocktail if it has not been named yet.   I suppose it is sort of kind of like a Sidecar but I actually started from an Old Fashioned to get here:

• 2 parts Bourbon (I think a slightly sweeter one like Makers Mark works well)
• 1 part Cointreau
• 1 part fresh grapefruit juice (we have a tree so this is easy)
• a couple dashes of orange bitters

stir over ice.

A lot of restaurants in my area are serving slightly spicy tequila drinks, making Palomas or Spicy Margaritas with pepper-infused tequlia.  We have home-infused a bottle of tequila with peppers and really like it.  Our first try was a disaster -- we put 2 or 3 small dry peppers in bottle of tequila and let it sit for 5 days.  Mistake!  That is way too long.  A day is all that is needed for a good infusion and a nice level of spice.  We held onto the five-day flamethrower tequila.  It is fun to serve as a shot to friends who think they are manly for pounding Jagermeister.  Really gets their attention.

As an awful aside, apparently my son and his friends at college drink some concoction made of Jagermeister and Red Bull.  I am told this is a standard at clubs nowadays.  gahk.  Possibly even worse than the Schmidt Beer I drank occasionally at college when we were short on cash.

The interview is fairly short but covers the most common questions about Recreation PPP's and private operation of public parks.  It is on the World Bank blog here.

I am hoping this is fake given the joke name of the author. If not, I would point out that we (reluctantly) give TSA employees power to search our luggage solely for seeking out items that might endanger the aircraft or other passengers. We do not give this arguably extra-Constitutional power to TSA employees so they can write titillating articles on the web exposing our private stuff.

In operating campgrounds, I could create a blog with posts every day showing the goofy things that campers bring with them or try to do, or mistakes they make as novice campers. I do not, though, because hosting folks is a kind of trust. I would expect folks empowered to ransack my luggage to show even more discretion.

Problem: Long waits at the DMV

Solution: Triple the size of the waiting room

God forbid anyone would rethink an incredibly dysfunctional process.

When you hear that police pulled someone over for the totally BS charge of a "partially obscured license plate with only one light," can't you just assume the driver is probably black or Hispanic?

If I were a Mexican in Phoenix, I would do a full walk-around checking my vehicle before every trip.  A visiting friend once asked me if the fact that Hispanics all seem to drive so slow was a cultural thing and I said that more likely, they know they will get busted for going even a hair over the speed limit.

A few years ago I wrote vis a vis our infamous SB1070

When Kris Kobach says "In four different sections, the law [SB1070] reiterates that a law-enforcement official 'may not consider race, color, or national origin' in making any stops or determining an alien's immigration status," he is ignoring reality.  The law asks police to make a determination (e.g. probable cause that one is an illegal immigrant) that is impossible for actual human beings to make without such profiling.  It's like passing a law that says "police must drive their cars 30 miles a day but can't drive their cars to do so."  The reality on the ground here in Arizona is that, illegal or not, Sheriff Joe Arpaio has been using racial profiling to make arrest sweeps for years, and his officers have become masters at finding some pretext to pull over a Mexican they want to check out  (e.g. the broken tail light).   Words in this law about racial profiling are not going to change anything.

Update:  I forgot this story from 2008, which is a great example of what I am talking about here

Arrest records from crime sweeps conducted by the Maricopa County Sheriff's Office add substantial weight to claims that deputies usedracial profiling to pull Latino motorists over to search for illegal immigrants....

even when the patrols were held in mostly White areas such as Fountain Hills and Cave Creek, deputies arrested more Latinos than non-Latinos, the records show. In fact, deputies arrested among the highest percentage of Latinos when patrols were conducted in mostly White areas.

On the arrest records, deputies frequently cited minor traffic violations such as cracked windshields and non-working taillights as the reason to stop drivers.

"These are penny-ante offenses that (police) almost always ignore. This is telling you this is being used to get at something else, and I think that something else is immigration enforcement against Hispanic people," Harris said....

Well, its that time of year again and folks on the Left are out there with their annual rants against the bombing of Hiroshima as a great crime against humanity.

All war is a crime against humanity by those who start them.  And I am certainly uncomfortable that we let the atomic genie out of the steel casing in August of 1945.  But I think much of what is written about Hiroshima strips the decision to drop the bomb from its historical context.  A few thoughts:

1. We loath the Hiroshima bombing because we in 2015 know of the nuclear proliferation that was to follow and the  resulting cloud of fear that hung over the globe for decades as most everyone was forced to think about our new ability to destroy humanity.  But all that was in the realm of science fiction in 1945.  And even if they knew something of the Cold War and fear of the Bomb, would many have had sympathy, living as they were through a real war that represented possibly the worst self-inflicted catastrophe man has ever faced?
2. Several other bombing raids, notably the fire-bombing of Tokyo, took more lives than Hiroshima.  Again, we differentiate the two because we experienced the Cold War that came after and thus developed a special fear and loathing for atomic weapons, but people in 1945 did not have that experience.
3. The ex post facto mistake many folks make on Hiroshima is similar to the mistake many of us make on Yalta.  Lots of folks, particularly on the Right, criticize FDR for being soft on Stalin and letting him get away with Eastern Europe.  But really,what were they going to do?  Realistically, Russia's armies were already in Eastern Europe and were not going to leave unless we sent armies to throw them out.  Which we were not, because folks were absolutely exhausted by the war.  This war exhaustion also plays a big part in the decision at Hiroshima.  Flip the decision around.  What would have happened if a war-weary public later found out that the government had a secret weapon that might have ended the war but refused to use it?  They would have been run out of office.
4. I once heard a government official of the time say that it was odd to hear people talking about the "decision" to bomb Hiroshima because there was not a decision to make.  We were in a long, horrible, bloody war.  We had a new weapon.  It was going to be used.
5. The Japanese were not showing a willingness to negotiate.  Yes, some members of the Japanese state department were making peaceful overtures before Hiroshima, but they had no power.  None of the military ruling clique was anywhere in the ballpark of surrendering.  Even after Hiroshima, and Nagasaki, and the Russian declaration of war, the government STILL would not have voted for surrender except for the absolutely extraordinary and unprecedented  intervention of the Emperor.  And even then, the military rulers were still trying to figure out how to suppress the Emperor or even take him hostage to stop any peace process.
6. It is argued sometimes that the Hiroshima and Nagasaki bombs were irrelevant and that the Japanese surrendered when the Russians declared war.  The Russian declaration was certainly an important part of the mix, but I find it hard to believe the Emperor would have taken his unprecedented actions without the atomic bomb attacks.  Besides, even if the Russian declaration was critical, it could be argued the bombs played a huge role in that declaration.  After all, we had tried to get the Russians to make such a declaration for years, and it suddenly came coincidentally a couple of days after the atomic bombs start dropping?  I doubt it.  A better theory is that the Russians were waiting for signs that the war was nearly won so they could jump in and grab some costless booty from defeated Japan, and the bombs were that sign.
7. It is argued that the invasion of Japan would have cost fewer lives than the bomb.  This is a crock.  Sorry.  There is absolutely no way to look at military and civilian casualty figures from Iwo Jima and Okinawa and come to any conclusion other than the fact that the invasion of Japan would have been a bloodbath.
8. It is argued that we could have blockaded Japan to death.  This is possible, but it would have 1. Taken a lot of time, for which no one had any patience; 2. exposed US ships to relentless Kamikaze attacks and 3.  likely have cost more Japanese civilian lives to continued conventional bombing and starvation than the atomic bombs did.
9. It is argued that we dropped the bombs on Japan out of some sort of racial hatred.  We can't really test this since by the time the bombs were ready, Japan was our only enemy left in the field.  Certainly, as a minimum, we had developed a deep hatred of Japanese culture that seemed so alien to us and led to atrocities that naturally generated a lot of hatred.  For the soldier, the best simple description of this culture clash I ever heard (I can't remember the source) was a guy who said something like "for us, the war was about winning and going home.  For the Japanese, the war just seemed to be about dying."   In a time where racism was much more normal and accepted, I would say that yes, this cultural hatred became real racism.  But I would add that it was not like we entered the war with some sort of deep, long hatred of Asians.  If anything, we stumbled into the Pacific War in large part because Americans felt a special friendship and sympathy with China and would not accept Japan's military interventions there.