Energy Policy – Page 5 – The Wrongologist

Climate Talks

The climate is speaking to us, but is anybody listening? Here is what the climate is telling us:

50% of Forest Bird species will go extinct in 50 years
99% of Rhinos gone since 1914
97% of Tigers gone since 1914
90% of Lions gone since 1993
90% of Sea Turtles gone since 1980
90% of Monarch Butterflies gone since 1995
90% of Big Ocean Fish gone since 1950
80% of Antarctic Krill gone since 1975
80% of Western Gorillas gone since 1955
60% of Forest Elephants gone since 1970
50% of the Great Barrier Reef gone since 1985
40% of Giraffes gone since 2000
40% of ocean phytoplankton gone since 1950
70% of Marine Birds gone since 1950
97% – Humans & Livestock are now 97% of land-air vertebrate biomass, while 10,000 years ago humans were just 0.01% of land-air vertebrate biomass
1,000,000 – The number of humans, net, that are added to earth every 4½ days

But, you gotta admit, antibiotic resistant germs are doing really, really well!

Now, maybe you accept climate change as a reality. Or, you may be a climate change skeptic, or a climate change denier, but no one should misunderstand what the climate is telling us. Slowly, the world is seeing more greenhouse gases being emitted into the atmosphere, destroying ecosystems and encouraging global warming. The greenhouses gases can be caused by many different things, however, a lot of the earth’s greenhouses gases comes from various industrial businesses that burn hydrocarbon fuels. Some of these businesses have been asked to pay carbon tax as a result. The money from this tax gets contributed towards fighting climate change. Hopefully, more businesses will realize the impact they are having on the world and will look to lower the amount of carbon dioxide that they emit.

And, given the above, shouldn’t activists on all sides be discussing what can be done to stop the decline in flora and fauna? There cannot be a more important global problem that needs solving. Even Mr. Market should be working to help solve the die-off of species. Yet, we haven’t heard any ideas from him.

Here’s an idea: Getting human population growth and global GDP growth under control must be job one. Income inequality shouldn’t automatically prompt politicians to make calls for ever higher GDP growth, so that trickle-down will help the masses, since growing our way out of the die-off of species isn’t a viable long-term strategy.

You’d think politicians and economists would be asking: “Do we need to rethink our entire conceptual framework about population and economic growth?” Well, they aren’t interested in that thought.

They offer the same old thinking, just rearranged. If you want a Thanksgiving metaphor, your dinner plate is filled with turkey, dressing, mashed potatoes, and cranberry sauce. And you take your fork and mix them all up, but they’re still the same. Even when you put gravy over all of it, it’s still not new. But it looks new, if somebody doesn’t think too carefully about what’s behind the new analysis.

Here is a view of the political divide on global warming in the US from The Economist:

And the NYT reported that on Tuesday, Republicans undercut Mr. Obama’s pledge at the Paris Climate Summit by approving two measures that Obama is sure to veto. The vote was largely along party lines. After the votes, Sen. John Barasso, (R-WY) said: (brackets by the Wrongologist)

While the president is at this climate conference, the American people [believe] that [his pledge] has a very, very low priority…

When Republicans in the Senate think the American people see climate change as a low priority when the poll above says they actually think its a pretty big deal, you know why we can’t get at solutions to the die-off of species.

Isn’t it curious that intelligent, educated conservatives denigrate climate change and its consequences, as some kind of phony science? They must see that there are plenty of business opportunities, and fortunes to be made as a result of climate change. This would normally have their hearts all aflutter at the chance to put their money behind a few disruptive innovations. But they have no interest, and are simply standing pat on the problem.

They are not alone. The Economist says the climate change just ain’t a big issue globally: (emphasis by the Wrongologist)

A giant opinion-gathering exercise carried out by the UN finds that people in highly developed countries view climate change as the tenth most important issue out of a list of 16 that includes health care, phone and internet access, jobs, political freedom and reliable energy. In poor countries-and indeed in the world as a whole-climate change comes 16th out of 16.

It’s beginning to look like a few billion lemmings are just gonna follow their reproductive organs off a cliff.

And even if a few of today’s lemmings think they’re doing something new, for all of them together, well, things look grim.

Shouldn’t Democrats Be Doing Better?

Wrongo watched the first half hour of the Republican Debate. If you feel you must, a transcript of the whole debate is here. The focus was supposedly on the economy. Perhaps the funniest thing was that the media password for WiFi was “stophillary”.

You will be inundated with expert opinion about what was said and who the “winners” were, but none of that is important. All you need are the Wrongologist’s observations: First, the moderators couldn’t be trusted to offer a reality-based picture of the world, any more than the candidates. Maria Bartiromo asked Jeb about unemployment, saying that almost 40% of Americans are without a job and are not even looking. Really? Media Matters checked, and her number included children, retirees, college students, and stay-at-home parents.

Yep, Republican policies will get those kids and retirees into the workforce.

Regarding the candidates:

• There was oratory, little of which sounded informed
• Most denied basic facts about economic and jobs growth
• Most candidates agreed that nobody needs a minimum wage, much less a higher minimum wage
• They agreed we need a small government, but one that still can dominate the world

When a Republican says “small government,” they really mean making the government’s legal and regulatory arm ineffective enough to allow businesses to do whatever the Hades they want until something bad happens. Then Congress can say: “who could have imagined” like the morons they are, and ask the taxpayers to clean up the mess.

You would think that the debate performance by Republicans, and their relative lack of political experience, opens up a window for Democrats in 2016. It should, but Democrats may not be in a position to take advantage. Since the Reagan era, they have deserted the world view and policies that gave them an upper hand politically. They have left the New Deal and Great Society behind, and failed to replace them with anything that anyone thinks is worth getting excited about.

They have morphed into “Republican Lite.” Republicans don’t like Democrats because they won’t agree to the GOP’s fringe ideas on guns, climate change and gutting the Voting Rights and Civil Rights Acts.

Most of the rest of the country just doesn’t care about these new Dems. Some detest their support of abortion and gay and transgender rights. Democrats aren’t doing better because it is obvious that they have become what we used to call moderate Republicans, and why should right-of-center voters settle for the imitation flavor?

A pundit said last week that Barack Obama is only slightly to the left of Richard Nixon. Judge for yourself: Nixon instituted national price controls, ended convertibility of the dollar into gold, signed legislation that started the EPA, and endorsed the failed Equal Rights Amendment. Would Obama we know today have done all of those things?

Since 2008, Democrats have lost the electoral argument in the states. Republicans now control both houses in 31 state legislatures, and have gained 900 seats in those state legislatures on Obama’s watch.

That doesn’t sound like Democrats are following a winning strategy.

Bernie Sanders is attempting to help the Democratic Party rediscover who they once were. However, that re-discovery is not widespread, and may be occurring too late to be of service in this election cycle. If the re-awakening does not occur in this cycle, there is reason to believe that the oligarchs will have all the votes they need both in Congress and on the Supreme Court to ensure a semi-permanent reign.

So Democrats, the choice is yours: You can endorse centrist, middle-of-the-road issues, or you can represent the issues that the American people actually care about. If you go middle of the road, know that you’re putting the millennial vote in play, since they are a generation that, for the most part, remains politically independent.

This strategy may lead to Hillary taking the White House, but it will make taking back the Senate harder, and it will not reduce the Republican majority in the H0use.

Democrats need to do better.

Monday Wake Up Call – September 21, 2015

Are you familiar with the “Bad Bank” strategy? It is a new bank set up to buy the bad loans of a bank that has a significant amount of nonperforming assets. Those assets are purchased at market prices. If the assets remained on the original bank’s books, they would be forced to take big write-downs. So, the “good bank” sells the assets to the bad bank, and clears their balance sheet.

And the “bad bank” goes off to fail, be recapitalized, or liquidated. The shareholders and bondholders of the “bad bank” stand to lose money from this solution but its depositors will be bailed out by the government.

Occidental Petroleum (OXY) made a similar deal last November by spinning off California Resources, (CRC) and since then, most investors that bought into the deal got burned.

CRC held OXY’s oil-and-gas exploration assets in California. CRC is CA’s largest natural gas producer and its largest oil-and-gas acreage holder with operations in Los Angeles, San Joaquin, Ventura, and Sacramento. OXY was the big player in the Monterey Shale formation, which had been hyped as the largest reserves of oil in the US. But, in 2014, the US Energy Information Administration (EIA) downgraded the amount of OXY’s known reserves in CA. From Wolf Richter: (emphasis and brackets by the Wrongologist)

The LA Times spilled the beans last week [May 2014] that the EIA is set to severely downgrade the Monterey Shale in California in an upcoming report. Once thought to hold 13.7 billion barrels of technically recoverable oil, the EIA now believes only about 600 million barrels are accessible. Slashing technically recoverable estimates by 96% could be enough to kill off the shale revolution in California.

Six months later, OXY exited CA shale by spinning off 80.5% of CRC to OXY’s shareholders. CRC’s shares began trading on the NYSE on December 1, 2014. As part of the spinoff, CRC paid OXY a special dividend of $6 billion. To fund the dividend, CRC issued bonds totaling $5 billion and leveraged loans for the remainder. This debt now costs CRC about $330 million a year in interest.

Back in 2014, hedge funds were clamoring for energy spinoffs. They’d buy a big stake in the parent company and push the board to do a spinoff that entailed loading the spinoff up with debt to fund a fat special dividend back to the parent.

“Unlocking value,” is the Wall Street term for this kind of financial engineering. Wall Street then made sure that there were enough unwitting or yield-desperate buyers for the bonds. The hedge funds made their money, and moved on.

Then CRC reported its second quarter earnings, which showed a net loss of $68 million on revenues that had plunged 45% to $609 million. And on September 15, Moody’s slashed CRC’s corporate rating from Ba2 to B1, and the bonds from Ba2 to B2. All of it with “negative outlook”. Moody’s described CRC’s relatively high costs of production and interest costs totaling $31.71 per barrel of oil equivalent. It pointed to low oil prices that it didn’t expect “to improve materially in 2016.”

So in 2014, no investor realized that CRC’s reserves had been cut by 96%? Or, that their break-even cost per barrel was $31+?

This Cali deal is Straight Outta Enron.

Now the question is can CRC survive without having to resort to a debt restructuring, bankruptcy, and a total shareholder wipe-out?

These kinds of deals are best pulled off in a credit bubble. Low interest rates force some investors to chase yield, and the unwitting buyers that have these fruits of Wall Street’s labor in their portfolios are the ones who feel the pain. Wall Street will tell you that the dividend and spinoff were disclosed in advance, so it’s not “fraud” by the company. It’s just “stupidity” by yield-hungry investors.

Why do you care? These securities could easily be in your 401k, or in an ETF that you own directly, assuming that you are among the 48% of Americans that have investment accounts.

So it is time for We the People to wake up to Wall Street’s financial engineering and what masquerades as legalized robbery. To help with the wake up, here is John Lennon’s “Power to the People”:

You will note the nearly completed Twin Towers at the end of the video. For those who read the Wrongologist in email, you can view the video here.

Union-Busting at Pantex

Never heard of Pantex? It is the nation’s only nuclear weapons plant. The full name of the company is Consolidated Nuclear Security (CNS) Pantex. CNS is a combination of a who’s who of major defense contractors, including Lockheed Martin, Bechtel, and Booz Allen Hamilton. CNS took over Pantex in March, 2014.

The company assembles, disassembles, and tests nuclear weapon components for the US military. They also manage the storage and surveillance of plutonium pits. (Plutonium Pits? In Texas?)

Pantex is a union shop, and on August 29, more than 1,100 workers went on strike over CNS Pantex’ demand for health care concessions. CNS is also seeking the elimination of defined benefit pensions for new union members. In a statement, Council President Clarence Rashada said:

Wages are not the issue. Benefits, sick leave, medical coverage, prescription drugs, those are the issues.

Since work at Pantex involves exposure to dangerous chemicals and substances, the union is pushing back hard against CNS who is also seeking to shift greater health care costs onto its retirees.

The strike is the first in 45 years at Pantex, and it comes 18 months after CNS took over.

Let’s remember that Texas is a right-to-work state, so the union left one entry gate to Pantex free of picketers to allow managers and other employees to enter the plant without any commotion.

This is right up Scott Walker’s alley. The union-busting Republican governor of Wisconsin is on the campaign trail talking about preventing federal workers from collectively bargaining, creating a national right-to-work law and eliminating the National Labor Relations Board (NLRB).

And the Pantex union-busting is abetted by the Department of Energy (DOE). The union blames the DOE, arguing that a DOE rule capping worker benefits has put CNS and Pantex employees in untenable positions. By rule, CNS can’t offer employee benefits that would exceed the industry average by 5%. However, the industry baseline also includes manufacturers of cell phones and car parts, so the DOE is comparing labor costs on consumer goods and nuclear weapons, probably an Apple™ to warheads comparison.

Effectively shutting down Pantex over a labor rule that only affects 10% of DOE contractors also speaks volumes about leadership and priorities at the National Nuclear Security Administration (NNSA), which supervises Pantex and CNS.

The Project on Government Oversight (POGO) reports that in the run-up to the government’s award of the Pantex contract to CNS, CNS claimed it could save taxpayers over $3 billion by cutting redundancies and consolidating management, but NNSA never validated the claim. POGO quotes from a GAO report about the NNSA’s evaluation of the CNS bid:

Did not clearly or completely describe expected benefits and costs…lacked key analyses and assumptions for cost savings estimates…[and] was also missing a description of the unquantified benefits CNS management might or might not offer.

So, maybe it’s a matter of “screw the government” by contractors big and experienced enough to know better. POGO says a series of recent reports have found that NNSA is skimping on upkeep for old buildings, using obsolete fire safety equipment at weapons sites, and relying on broken security sensors to protect uranium stockpiles.

CNS also runs the Y-12 facility at Oak Ridge TN, former home of the Manhattan Project. Y-12’s primary mission today is providing secure storage of nuclear material for both the US and other governments. The Bulletin of Atomic Scientists calls Y-12 a “Poster child for a dysfunctional nuclear weapons complex”, noting that although Y-12 has not produced weapons for 25 years, its annual budgets have increased by nearly 50% since 1997, to more than $1 billion a year.

POGO reported that the NNSA spent $50 million on new security systems at Y-12 but couldn’t find a way to get security guards and security sensors working in sync. The overhaul was a result of a July 2012 incident in which a then-82-year-old nun and two others broke into Y-12 to protest the production of nuclear weapons. They made it into the building where most of the US stockpile of highly enriched uranium is stored. The DOE Inspector General found:

Troubling displays of ineptitude in responding to alarms, failures to maintain critical security equipment, over reliance on compensatory measures, misunderstanding of security protocols, poor communications, and weaknesses in contract and resource management.

Follow-on security tests found that the guard force at Y-12 was cheating on evaluations.

You would think that if there’s one place where this cutting corners on safety and security would not be tolerated, it’s with nuclear weapons. CNS has demonstrated in its Y-12 and Pantex situations that competent nuclear weapons handling and security at nuclear weapons facilities should be governmental functions.

They are far too important to be left to a private contractor’s business decision.

Monday Wake Up Call – June 29, 2015

Mylan, a generic drug maker based outside Pittsburgh, abandoned its status as a US corporation, gaining tax advantages by moving its headquarters to the Netherlands. The move reduced the taxes the company pays on profits from sales of drugs overseas, but Mylan continues to maintain most of its operations in Pennsylvania.

Mylan was viewed by some in Congress and the Obama administration as a symbol of corporate greed when they undertook a corporate inversion that placed profits above any commitment to its home country.

But now, Mylan is demanding that the US Federal Trade Commission (FTC) protect it from a hostile takeover bid by an Israeli company, Teva Pharmaceuticals. Mylan asked the FTC to examine Teva’s purchase of Mylan stock for possible violation of the requirement that large purchases of stock of US firms must be reviewed by antitrust authorities, because Mylan is still listed on the NYSE. The company claims that its principal office remains in Pennsylvania, which makes it a “US issuer” of stock for federal anti-trust purposes.

The irony of this is not lost in Washington. Rep. Chris Van Hollen (D-MD), the senior Democrat on the House Budget Committee said:

Mylan is trying to have its cake and eat it too…It is an intolerable abuse of a loophole when US corporations pretend they are based overseas in order to get out of paying their fair share and duck their responsibilities to the United States. It’s just plain hypocrisy when one of those same inverted companies claims that it is actually a US company because it needs the special protections US law gives to American companies.

Mylan may have a case. Its plea for help from the US government could pass legal muster but, the optics of a company that abandoned its US citizenship in order to pay less in federal taxes, and then seeking the protection of a federal agency is problematic.

Compounding the farce, Mylan is attempting its own hostile takeover of Perrigo, in order to stave off Teva.

Mylan’s unabashed lack of shame is impressive. Maybe the FTC’s decision-making on this case should take quite a while.

So, wake up Congress, and deal conclusively with corporate inversions! Our wake-up calls for the next few weeks will be songs about summer. We start with the Lovin’ Spoonful’s only #1 hit, “Summer in the City”:

For those who read the Wrongologist in email, you can view the video here.

Monday’s Hot Links:

The return trip often seems shorter than the initial trip, even though the distance traveled and the actual time spent traveling are identical. This is called the “return trip effect”. Two studies say it is real, but you already knew that.

Trucker jobs will be the first casualty of driving robots. Trucker salaries average $40,000/year. Most truck accidents are due to user error: Driving too fast, driving while tired, or driving while intoxicated. Robots don’t drink, don’t get tired, and won’t drive unsafely in order to get to a destination faster. Drivers will still be needed for inner-city driving (at least initially), but most long-haul operations will quickly vanish as soon as licensing is complete in most states.

Three years ago, Saudi Arabia announced a goal of building, by 2032, 41 gigawatts of solar capacity by 2032, slightly more than Germany has today. The Saudis burn about a quarter of the oil they produce—and their domestic consumption has been rising at 7% a year, nearly three times the rate of population growth. According to a British think tank, if this trend continues, domestic consumption could eat into Saudi oil exports by 2021 and make the kingdom a net oil importer by 2038.

Privail Diagnostics, has developed a simple, portable blood test that can detect the HIV virus (not antibodies) for the first time. That means an earlier diagnosis, and reduced infection rates. Privail’s at-home testing device is like a diabetes test, needing only one drop of blood. It shows the results in a color bar, like an at-home pregnancy test or digital output, like a diabetes meter. Invest at your own risk.

Hackers have apparently cracked the computer systems responsible for issuing flight plans to pilots of every airline. The apparent weak link? The flight plan-delivery protocol used by every airline. Ground computers calculate the appropriate flight plan for planes, and someone on ground approves the plan before distributing it to pilots. Pilots receive plans before taking off, as well as enroute, when a change occurs during a flight. Plans are uploaded to planes via a datalink. Once a hacker figures out those protocols, it is possible to issue a bogus flight plan. But, the industry says, not to worry.

Your thought for the week: Giving money to poor people is socialism, or even communism…..giving money to AIG or Goldman Sachs is capitalism, and that’s what made this nation grrrreat!!!

Maximizing Shareholder Value

The Guardian highlights a report by the International Monetary Fund (IMF) about the level of global subsidies paid by governments to the fossil fuel industry:

Fossil fuel companies are benefiting from global subsidies of $5.3tn (£3.4tn) a year, equivalent to $10m a minute every day, according to a startling new estimate by the International Monetary Fund.

That’s $5.3 trillion per year. The subsidy estimated for 2015 is greater than the total annual health spending of all the world’s governments. The subsidy is created by polluters not paying the many costs imposed on countries by the burning of coal, oil and gas. These include the harm caused by air pollution.

The IMF said that ending subsidies for fossil fuels would cut global carbon emissions by 20%. They argue that ending the subsidies would also slash the number of premature deaths from outdoor air pollution by 50%, or about 1.6 million lives a year.

It is difficult to get behind the IMF headline to the methodology that leads to their findings. They are basically estimating how much damage global warming is doing and listing that as a government subsidy. The benefits that fossil fuels have delivered to mankind are massive. The pro-fossil fuel argument is that if you could put a price on these things, it would outweigh the $5.3 trillion figure by many thousands of times.

That is true, but the argument misses the point. We need fossil fuels. We use fossil fuels. The issue is why are the costs socialized, while the profits are privatized?

This again highlights the moral and intellectual bankruptcy of the “Maximize Shareholder Value” movement in corporate governance. The 1970-era Clean Air and Water Acts and the 1980-era Superfund, TSCA, and RCRA Acts were among the first attempts to shift the costs of the socialized pollution costs back onto the corporate and municipality originators. Ironically, given today’s political environment, all of the major environmental acts (except the 1980 Superfund) were signed into law by Republican presidents Nixon and Reagan.

In the IMF report, China provided $2.3 trillion of the subsidies. The US was 2nd with $700 billion.

China will be focusing on reducing their pollution and other impacts as their society gets wealthier. Once people’s basic needs are met, they will be looking to improve their lot, and breathing in poisonous smog and living next to putrid water will not be high on their list of desires. As an example, it only took 25 years after the end of WW II for Americans to insist on an improved environment.

And all of the above ignores the costs of wars to keep the fossil fuel supply lines open, as well as the regular costs of our defense and intelligence establishments, and the destruction of democracy as necessary collateral damage.

All that for something we burn. Along with our tax dollars, that is.

Cartoon of the Day: The real truth about DC’s Think Tanks:
Links:

Hillary Clinton on Trade Agreement: “I have been for trade agreements, I have been against trade agreements.” Anybody want syrup with those waffles?

Is Japan becoming extinct? The Japan Times wonders what the projected drop in the country’s population says about its future. They cite a report, “Local Extinctions”, which says that that 896 cities, towns and villages throughout Japan are facing extinction by 2040. Factoid: In 2013, 8.2 million of the more than 60 million homes nationwide were empty, and 40% percent of the 8.2 million empty homes were not being offered for sale or rent.

Here’s how much of your life the United States has been at war. The link shows a ginormous chart of how many years of your life were in wartime. For the Wrongologist, it is 43.8% of his life.

Millions of tiny spiders rained from the sky in Australia. Residents of Goulburn, Australia woke one day this month to find their town shrouded in silken webs, while millions of tiny spiders rained down from above. Apparently this is called “Spider rain.” It happens when large groups of arachnids migrate all at once, using a technique called “ballooning.” Creepy much?

After decades of maintaining a minimal nuclear force, China is re-engineering its long-range ballistic missiles to carry multiple warheads, or MIRVs. China has had the technology for decades, but the decision to put three or more warheads atop a single missile is recent. So far, China has declined to engage in talks with the US about their decision to deploy MIRVs. If America treats China like an enemy, then China WILL BE our enemy. Maybe that’s what the Pentagon and CIA want. They need something to justify their big budgets, and their secret slush funds.

See you on Sunday.

Exactly Who Does the FBI Work For?

The Keystone Pipeline has been off the radar for a few months, but The Guardian brought it back this week with an article describing the FBI’s bad behavior towards activists who are against Keystone:

The FBI breached its own internal rules when it spied on campaigners against the Keystone XL pipeline, failing to get approval before it cultivated informants and opened files on individuals protesting against the construction of the pipeline in Texas, documents reveal.

The documents connect the investigation of anti-Keystone activists to other “domestic terrorism issues” in the agency. The FBI files also suggest that the Houston part of the investigation was opened in early 2013, several months after a high-level strategy meeting between the agency and TransCanada, the company building the pipeline.

The Guardian hired Mike German, a former FBI agent, to help decipher the documentation. German said they indicated that the agency had opened a category of investigation that is known in agency parlance as an “assessment”. An “assessment” was an expansion of FBI powers after 9/11. Assessments allow agents to open intrusive investigations into individuals or groups, even if they have no reason to believe they are breaking the law. German, now a fellow at the Brennan Center for Justice, said:

It is clearly troubling that these documents suggest the FBI interprets its national security mandate as protecting private industry from political criticism

The Wrongologist wrote about this very issue in February 2015, making several points:

• The FBI was meeting with and surveilling anti-Keystone pipeline activists in the US.
• The FBI indicated publicly (and untruthfully) that they could only conduct investigations when they had reason to suspect criminal activity.
• The FBI failed to disclose that they had changed their mission statement. Instead of listing “law enforcement” as its primary function, as it had for years, the FBI fact sheet started listing “national security” as its chief mission.

At the time, we reported that the FBI was essentially doing pre-emptive security work for a Canadian corporation. From Charlie Pierce:

The FBI has no business dropping in on citizens who have not committed a crime, nor are they suspected of having committed one, and especially not at the behest of a private multinational concern.

That would be a foreign private concern. More from Pierce:

Names are going into a file…This never has worked out well in the area of political dissent in this country, and, given the fact that we now have a staggering network of covert domestic intelligence-gathering and a huge government law-enforcement apparatus, it’s unlikely to work out well in the future…

Finally, the new Guardian report states that the FBI said it was compelled to

take the initiative to secure and protect activities and entities which may be targeted for terrorism or espionage.

So, here we go. The FBI, never a friend of civil liberties, has once again violated the law by spying on activists in the absence of any reasonable suspicion that these pose a threat to life and/or property. They shouldn’t be in a position to conduct an unauthorized witch hunt and they shouldn’t be able to just say there is a threat of terrorism.

How convenient that the Houston FBI office didn’t seek approval in advance for their investigation. Plausible deniability for those up the chain of command preserves cushy government pensions.

Our security state says it requires all of this very intrusive information-gathering in order to protect us. Yet we read again and again that some terrorist or another was known to law enforcement prior to their criminal acts, just as the FBI missed clear opportunities to stop the Boston Bombers.

We could all learn from Al Swearengen in Deadwood:

I don’t like the Pinkertons. They’re muscle for the bosses, as if the bosses ain’t got enough edge.

There is a name for what happens when the government’s law-enforcement powers are put at the direct convenience of private corporations. Fascism.

See you on Sunday.

Monday Wake Up Call – April 6, 2015

Today’s Wake up is for the Republican Chicken Hawks who think that Iran is the Greatest Threat To America™. They are denouncing the possible nuclear Iranian deal because Bibi says, or because they think it takes the military option off the table, or they think that Iran got too good a deal, or all of the above.

Here, from the Atlantic, are some specific details from Harvard’s Belfer Center for Science and International Affairs. The table below summarizes the new framework accord and analyzes differences between where Iran stood before negotiations, and where it will be, if, or when, the accord becomes reality:

By eliminating 12,000 centrifuges and five bombs’ worth of low-enriched uranium, the accord extends the breakout timeline for Iran to produce enough highly enriched uranium for a bomb to one year. By requiring the reconfiguration of Iran’s planned plutonium-producing reactor at Arak, the accord essentially closes the door to a plutonium-based Iran bomb. And by agreeing to establish a new mechanism that will allow unprecedented access for the International Atomic Energy Agency (IAEA) to suspicious nuclear sites anywhere in Iran, the accord makes it much more difficult for Iran to cheat.

It’s time to ask critics of the proposed deal, particularly those running for president in 2016, exactly where they stand, and what they would do if an agreement is reached.

Wouldn’t you think after Iraq, the American people would want to debate this, and emphatically say that war with Iran is such a stupid idea that no one advocating it should get within a mile of the White House, the State Department, or the Pentagon? Everyone, (Republican chicken hawks included) should want to negotiate peace as our default position.

But, it has been a whole twelve years since we started a war, and given the history of the last few decades, we’re past due. So who’s the big, brave Republican running on an Iran war platform? Everybody.

Wake up Chicken Hawks. Here to help rouse you from your neo-con wet dream, a song by The Lone Bellow, a Brooklyn NY-based group with three-part harmonies and great melodies. This is “Then Came the Morning” from their 2nd Album of the same name. Here they are on WFUV, Fordham University radio:

Sample Lyrics:
Take my words, breathe them out like smoke
Burn every single letter that I wrote
Let the pages turn to ash, I don’t want them back
Everything you always said to me

Monday’s Hot Links:

Tesla made an April fool’s announcement and investors were pissed:

PALO ALTO, Calif., April 1, 2015 – Tesla today announced a whole new product line called the Model W. As many in the media predicted, it’s a watch. That’s what the “W” stands for.

In the following minute, the stock jumped $1.50. Nearly 400,000 shares traded in that time, and it was the heaviest one minute of trading volume in the stock since the first minute after the IPO on Feb 12. Sadly, there is no watch. People bought the stock because they were introducing a thing called the Model W. They didn’t read beyond the headline, and thought whatever it was, would be big. Invest wisely, grasshopper.

The next two links contrast a big business solution to a big problem, with an open-source solution to a big problem. The big business solution is elegant, expensive and patented. The entrepreneurial solution is elegant, cheap and free:

The latest technology for removing salt from seawater, is developed by Lockheed Martin, and will be a game-changer. Desalination technology is all over the world, but it is inefficient, using lots of energy to force salt water through a filtration system. That makes it expensive. Lockheed has developed a special filter that doesn’t need as much energy to push water through the filter. Its made out of Graphene. If this scales up, where do we put the excess salt? Or, if you really are thinking, If Lockheed can strain salt ions out of water, then why not gold ions? Invest at your own risk.

Ever hear of Liter of Light? They are a charity that makes a skylight-type light using a used liter plastic bottle, filled with water and a little bleach that is placed through tin roofs in the 3rd world. They then added an LED light and a 1 watt solar collector, for light at night. All of this started in the Philippines. Liter of Lights now has chapters in 53 countries, and has installed 350,000 daytime lights and around 15,000 night lights. Watch a video here. Please, you won’t regret it.

According to UNESCO, more than 1.5 billion people around the world currently have no access to electric light, and around 1.3 billion of them must spend up to half their income to light their homes at night. The fact that the technology is not patented, or owned by a large, multinational corporation, like Lockheed, who owns the Graphene filter, makes this a sweet place to send some of your excess money, Wrongsters. Do not expect a financial return.

Monday Wake Up Call – March 9, 2015

Today’s Wake Up is for a few people and their terrible ideas. Sadly, they reflect the current state of our nation. The Selma march to Montgomery was about voting rights, voting rights that became codified into law in The Voting Rights Act of 1965. This photo taken during the march to Montgomery on March 25, 1965 shows a young black man in white face making the point about what it took to be a voter in Alabama in the 1960’s:
Charles Fentress Jr., The Louisville Courier-Journal

But, despite all of our progress, open (and covert) hostility to civil rights and minorities are still with us, even at the Selma commemoration. You have to look no further than South Carolina’s black GOP Sen. Tim Scott for proof. Sen. Scott (R-SC), was an honorary co-chairman of the Selma trip. He is the only African-American Republican in the Senate. He said voting rights and the commemoration of Selma should be “de-coupled”:

The issue of voting rights legislation and the issue of Selma, we ought to have an experience that brings people together and not make it into a political conversation…

We should “de-couple” civil rights from the struggle that necessitated it? He wants warm and fuzzy, because that’s the only way some lawmakers can stay busy disenfranchising whole groups of Americans, and still smile when they attend the commemoration of the Selma march.

Taken to its limit, what Sen. Scott wants us to do is to now pretend Selma isn’t about voting, because that means the Voting Rights Act was unnecessary. And that makes the Supreme Court’s 2012 decision in Shelby County (Alabama) vs. Holder, which effectively gutted the main provisions of the Voting Rights Act, the right way to look at the state of voting rights in America today. Sadly, that’s all wrong.

An example of overt hostility was shown by a billboard, within sight of Mr. Obama and the Edmund Pettus Bridge where he spoke on Saturday. The billboard depicts KKK founder and Confederate General Nathan Bedford Forrest with the Confederate Flag in its background:

It is hard to see, but under the image of Forrest is his motto: “Keep the Skeer on ‘Em.”

Indeed. This brings home to us again the William Faulkner quote, “The past is not dead; it is not even past”. In fact, it is all too present. Time to wake up, America!

Here is Barenaked Ladies doing “Brian Wilson”. Many know that Wilson, the key singer-songwriter of the Beach Boys, had a nervous breakdown in the mid-1960’s at the height of the group’s fame. He later took to his bed for 3 years. Wilson had a psychiatrist, Dr. Eugene Landy, who took advantage of him and his money, and is mentioned in the Ladies’ song.

America, you are now “lying’ in bed just like Brian Wilson did”. Republicans are your Dr. Landy. Wilson said that he cured himself by trucking in sand to his house for inspiration. America, get your sand! Here is “Brian Wilson”:

Interestingly, Wilson later covered the song in 2000, on his album, “Live at Roxy Theater”.

Your Monday Hot Links:

Lockheed Martin claims it now has the ability to generate cheap energy from nuclear fusion with little waste or global warming. Lockheed calls this “Compact Fusion” and says it can build a reactor small enough to fit on a truck that could provide enough power for a city of up to 100,000 people. Invest at your own risk.

A Google research team is developing a model to measure the trustworthiness of a web page, rather than how many hits it gets. The system, not yet live, would count the number of incorrect facts within a page. The software works by tapping into the Knowledge Vault, the vast store of facts that Google has pulled off the Internet. Facts that the web unanimously agrees on are considered a reasonable proxy for truth. Web pages that contain contradictory information are bumped down the rankings. Searching for web sites based on their truthiness? We’ll see.

A cyber-attack in late December involved a smart refrigerator. C/NET reported that 100,000 devices sent upwards of 750,000 spam emails. Consumers have virtually no way to detect or fix infections when they do occur. So, your fridge could have spam two ways…

Like humans, apes make irrational economic decisions. New research suggests that choice biases, such as loss aversion, might be evolutionarily ancient. Oh, and they found that male apes were much more susceptible to bad decisions than were female apes. It’s not your fault, its evolution that’s to blame when you buy an RV without telling your wife.

New York’s Lincoln Center paid the heirs of Avery Fisher $15 million so they could name Avery Fisher Hall after David Geffen. Fisher’s family had threatened to sue if his name was removed, so Lincoln Center, looking to raise $500 million, really wanted to take Geffen up on a $100 million donation in return for naming rights. So, they paid up, and now there’s going to be a David Geffen Hall in New York.

Road Trip, Vol. I

Now sit right back and you’ll hear a tale, a tale of a fateful trip. Well, not really. We drove about 400 miles today, passing through DC and south in Virginia to Richmond, headquarters of the Confederacy during the Civil War. There isn’t a shooting war between the White House and Congress, but sometimes, it feels that way:

Maybe it just depends on your point of view:

Wednesday Links:

The University of Massachusetts at Amherst has banned Iranian nationals from admission to certain graduate programs that school officials say aligns its policy with US sanctions against Iran. Luckily, there are other engineering schools.

Boston is using prison labor to shovel snow for pennies. Unionized city workers and state prisoners cleared commuter rails of snow on Monday

The WaPo thinks House Speaker John Boehner is managing to combine legislative incompetence with PR incompetence. Well, Boehner believes the country is in grave danger because of Obama, and right after this latest three-week vacation, he’s going to get busy taking health insurance away from poor folks.

The trade in antiquities is one of ISIS’s main sources of funding. Most of the items are from excavations rather than thefts from museums.

The Wrongologist

Geopolitics, Power and Political Economy

Category: Energy Policy