Jokers To The Right

The Daily Escape:

Stormy night, Portland, OR – March 2024 photo by Mitch Schreiber Photography

“Democrats want to do something for you. Republicans want to do something to you.” – Tom Sullivan

Super Tuesday is in the rearview, and Nikki Haley announced her exit Wednesday. Haley was a useful person for the Democrats for as long as she was campaigning against Trump. Think about the picadors in bull fighting: Their primary role is to weaken the bull by piercing its neck muscles and tissues, making it easier for the matador to ultimately kill the bull.

That was Nikki, weakening Trump for the past few months. Wrongo reported that Haley overperformed in the GOP primaries:

“We’re seeing Trump consistently underperform the polls by 7-8 points. Worse for Trump, Fox News’ John Roberts talked about an alarming exit poll finding that 59% of Haley voters in South Carolina last night (equal to 40% of the electorate) would not vote for Trump in the general election.”

Depending on the state, between 25%-40% of Republican and conservative independents voted for her.

But now she’s left the ring, ceding the Republican nomination to Trump. You know, the guy who drove the American economy into a ditch, mismanaged a pandemic resulting in hundreds of thousands of excess American deaths, was found guilty of both sexual assault and fraud in two American courts, and is currently facing charges for mishandling national secrets and fomenting a coup.

Haley earned the votes of millions of Republican voters in her brief time in the spotlight. But she’s made a business decision to try and remain relevant to the MAGA world in case Trump cannot go forward with his campaign. JVL reports Haley said this:

“It is now up to Donald Trump to earn the votes of those in our party who did not support him, and I hope he does. This is now his time for choosing.”

Sounds good, right? But JVL calls Haley out about the above:

“If there’s been a more cowardly statement over the last year, I can’t think of it. Haley refuses to acknowledge that she was supported by a broad coalition of voters—Republicans, independents, and Democrats. She claims that she is rooting for Trump to win over only the Republican voters who supported her. And instead of leading and standing for the Constitution, she fobs off all questions of agency to Trump. It’s not time for Nikki Haley to choose.

She believes that she’s preserving her political viability by seeming to put Trump in a box, making winning her supporters Trump’s job to succeed or fail to do. It won’t be long before Haley endorses Trump, becoming just another useful tool for MAGA world.

Biden on the other hand immediately invited Haley supporters to join his campaign. From The Hill:

“It takes a lot of courage to run for President — that’s especially true in today’s Republican Party, where so few dare to speak the truth about Donald Trump….Nikki Haley was willing to speak the truth about Trump: about the chaos that always follows him, about his inability to see right from wrong, about his cowering before Vladimir Putin.”

“Donald Trump made it clear he doesn’t want Nikki Haley’s supporters. I want to be clear: There is a place for them in my campaign…”

Then there’s the hot steaming pile of Mitch McConnell. From the WaPo:

“It is abundantly clear that former President Trump has earned the requisite support of Republican voters to be our nominee for President of the United States…It should come as no surprise that as nominee, he will have my support.”

From Norm Orenstein:

“…McConnell, once again, demonstrates a level of moral cowardice that is destructive and pathetic. He was responsible for letting Trump off the hook and having him as the Republican nominee when he deep sixed impeachment trial. Now he endorses the vicious autocrat. Shame.”

Why do these Republican hacks support a guy who has attacked their wives? Mitch does it, Cruz did it. Trump attacked Haley’s husband. She’ll most likely endorse him as well.

Finally, there’s Elon Musk who jetted to Mar-a-Lago to meet with Trump. From Judd Legum:

“On Tuesday…Musk told his 175 million followers on X that President Biden had committed “treason” by “secretly” flying “320,000 illegal immigrants” from Latin America to US airports:

Nearly everything said above by Musk is a lie. Then Trump said that Biden “flew in 325,000 immigrants” into the country.

Musk was retweeting Collin Rugg who references a report by the Center for Immigration Studies (CIS) about a program expanding humanitarian parole for Cubans, Haitians, Nicaraguans, and Venezuelans. CIS is a notorious anti-immigrant think tank.

Nothing about the expanded humanitarian parole program is “secret.” Biden announced it in a White House speech on January 5, 2023.

“…Today I’m announcing that my administration is going to expand the parole program for people not only from Venezuela but from Cuba, Nicaragua, and Haiti.”

The program was then detailed in a White House press release. The release specifies that the program allows:

“…up to 30,000 individuals per month from these four countries.” To qualify, individuals must have an  “eligible sponsor and pass vetting and background checks.”

Musk was amazed that the Biden administration was able to keep the program secret when it involved chartering thousands of planes, flying to dozens of airports. Wrong again. The reason why no one noticed all the planes chartered by the Biden administration is that they didn’t charter planes.  The parole program requires the individuals to purchase their own flights to the US.

Musk says that this program constitutes “treason”. But it is fully within Biden’s legal authority. Every president has used parole authority since it was established in 1952, except Trump. Somebody in Washington ought to look into what the consequences should be when a major defense contractor like Musk says the Commander-In Chief is committing treason.

The silly season is upon us.

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Musk Is A Putin Pawn

The Daily Escape:

Organ Pipe Cactus National Monument, AZ – September 2023 photo by Bob Miller

Back in the 1950s, lefties were often called “fellow travelers” with Communists or the Soviet Union by Republicans.

Here’s a thought experiment: Elon Musk owns Starlink. He helped Ukraine take on the Russians using his constellation of satellites and transmit/receive terminals on the ground. When SpaceX started providing Starlink internet service to Ukraine after Russia’s invasion, it created a lifeline for the country when its communications systems had largely been knocked out.

Musk got great PR for helping America’s plucky little friend in their war against the Russian invaders. But as the war ground on, Kyiv began to fear that Musk was becoming increasingly ambivalent toward assisting them. Then, just as they are on the verge of a decisive blow that might shape the direction of the war, he turned off the network, thereby saving the Russian fleet from a Ukrainian sneak attack. From the WaPo:

“The armed submarine drones were poised to attack the Russian fleet….[but] the drones lost connectivity and washed ashore harmlessly.”

Ukrainian and American officials instantly scrambled to get service restored, appealing to Musk directly. After it was too late to continue the mission, Musk eventually agreed. His reasoning for torpedoing Ukraine’s torpedo mission has been well-reported over the past few days. According to the WaPo, Musk had second thoughts:

“How am I in this war? Musk asked….Starlink was not meant to be involved in wars. It was so people can watch Netflix and chill and get online for school and do peaceful things, not drone strikes.”

Later, when the Sevastopol operation was to begin, Musk remembers this:

“There was an emergency request from government authorities to activate Starlink all the way to Sevastopol. The obvious intent being to sink most of the Russian fleet at anchor….If I had agreed to their request, then SpaceX would be explicitly complicit in a major act of war and conflict escalation.”

Musk says he was afraid of being responsible for a Russian nuclear escalation. Moscow had publicly stoked such fears throughout the Ukraine war, but Western intelligence agencies say there’s no sign they were or are serious. There is zero evidence that tactical nuclear weapons were being prepped for use.

Nothing like what Musk feared happened.

From Timothy Snyder:

“The voiced concern is that Russia could “escalate.”  This argument is a triumph of Russian propaganda. None of Ukraine’s strikes across borders has done anything except reduce Russian capacity. None has led Russia to do things it was not already doing. The notion of “escalation” in this setting is a misunderstanding. In trying to undo Russian logistics, Ukraine is trying to end the war.”

It’s curious that according to Ronan Farrow in a New Yorker article, around this time, Musk held conversations with Vladimir Putin (Musk denies speaking to Putin) – which seems to have had an effect on Musk’s change of position regarding Ukraine.

So this is the thought experiment: Is Musk naïve, or has he become a fellow traveler with Putin? He seems to have not only bought Moscow’s propaganda about nuclear escalation but acted on it. In either case, his “I was for helping Ukraine before I was against it” is a moral failure, and it’s a crime of providing material assistance to ours and Ukraine’s enemy.

He’s a fellow traveler.

We’ll never know if the war has been extended because the Sevastopol attack was aborted. We do know that since then, thousands of Ukrainians have died, and $ billions of Ukrainian assets have been destroyed.

This is a reminder of how Musk has amassed enormous influence through his dizzying pace of innovation that has left his competitors in the dust. It has also left governments (like our own), tip-toeing in their relationships with SpaceX in particular.

Wrongo thinks that US policymakers were happy to tolerate Musk’s early involvement in Ukraine because it saved money and solved an immediate tactical communications problem. But how wise was that in hindsight? There are reasons why diplomacy and international relations are left to elected governments in the West, and not put in the hands of one tech bro.

Rightwing Republicans have been pushing privatization without regulation for decades. Now that Musk has done just that with satellites and SpaceX, politicians and the mainstream media are shocked to find that the Ultra-Wealthy entrepreneurs don’t really believe in democracy.

Who could have known?

And think about it: Russia under Putin started this war. We’re involved because our national security interests in Europe are under attack by the Russian Federation. That constitutes a war, whether we choose to recognize it or not. Musk’s inaction must be viewed through that lens.

Our forces are not engaging in combat with Russian forces; that’s Russian propaganda. But we have history vs. Russia: We fought against Russian fighter pilots in the Korean war. They had advisors on the ground in Vietnam. We fought a Wagner force in Syria when they attacked our troops.

And Wagner isn’t a rogue mercenary organization. They are an irregular Russian force operating outside the norms of international law.

Musk and quite a few House Republicans need to understand the true nature of this war. We didn’t attack Russia. NATO didn’t attack Russia. And Ukraine didn’t attack Russia. Russia attacked Ukraine with a full scale invasion.

While Putin and his thugs are guilty of aggression, many Americans are guilty of being naĂŻve. They fail to understand what failing in this fight will mean.

Whew! That’s enough for this week, it’s time for our Saturday Soother, where we try to find a place of calm and then gather ourselves for another week of polycrisis without end.

We’re aerating the lawns on the fields of Wrong, but only overseeding a small portion of it, since a 50 lb. bag of quality grass seed costs $225 vs. the $75 it was in the before times. Whip Inflation Now!

We’re likely to have thunderstorms for the next few days. So grab a chair by a large south-facing window and watch and listen to Playing For Change’s version of the Grateful Dead’s “Ripple”. It features the Dead’s drummer Bill Kreutzmann along with a host of performers, including the late Jimmy Buffett and David Crosby. Jerry Garcia lent his slide guitar to CSN’s “Teach Your Children” years ago, and Crosby returns the favor here. Time to listen to some feel-good music.

Robert Hunter wrote this song for the Dead in 1970. He was inducted into the Rock and Roll Hall of Fame with the Grateful Dead in 1994 and is the only non-performer to be inducted as a member of a band. Hunter was a lyricist:

 

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Sunday Cartoon Blogging – July 9, 2023

You’ve all heard about Zuckerberg’s Meta taking on Musk’s Twitter. Meta’s product is called Threads. It’s a simple app that looks almost exactly like Twitter. Because it is linked to users’ Instagram accounts, it was immediately adopted by about 50 million people who have posted on the platform some 95 million times. It’s become the most rapidly downloaded app of all time.

That also eclipsed several other Twitter wanna-be’s like BlueSky (which has a million users), Mastodon (10+ million), Post, and Notes, all of which have been up and running for a few months but together, haven’t reached Threads’ 50+million users.

What Threads’ place in the social mediaverse will look like is anybody’s guess. But there are things we know right now, with certainty:

  • Meta is a for-profit social media businesses. Its business model relies on selling ad space based on targeted markets and selling users’ information.
  • Meta has been operating under a consent decree issued by the FTC in 2011 after it violated users’ privacy. Then it violated that agreement, resulting in a $5 billion fine which it has fought against paying.
  • Meta’s track record on privacy isn’t great. It includes the non-consensual collection of personal data that was later used by Cambridge Analytica/SCL and may have been involved in influence operations during the 2016 election.

Wrongo joined Threads to see what the fuss is all about. It does look a lot like Twitter, and at the moment has a wild west feel. From Kyle Tharp:

“The social internet is in the midst of a massive upheaval right now, and no one really knows how it’s going to impact our politics next year. Americans’ social media diets are becoming more distributed and less trackable….I obviously think the internet will still have a major role to play next year, but predicting the future is harder than ever.”

If Threads has staying power, it will present both new opportunities and challenges for Meta. Facebook has been withdrawing its investments in news and politics over the past few years, which included killing its news partnerships division and deprioritizing political content in users’ Facebook feeds.

If Meta is going to become the online place for news consumption and political debate, it will face the same questions that Twitter and Facebook had to face: How will it handle content moderation and the spread of false or misleading content? How will fact-checking work on the platform? How much money is Meta willing to spend on that, especially after cutting those same investments in policy and integrity at Facebook? Will they allow political ads? On to cartoons.

Will Twitter unravel?

We’re melting:

Supremes add to their must carry rules:

Supremes have redefined their branch of government:

They’ve also redefined property ownership:

The Supremes say they’re ending racism:

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Musk Buys Twitter

The Daily Escape:

High tide, Bandon, OR – April 2022 photo by Bobbie Shots Photography

The Boston Globe is reporting that Musk is purchasing Twitter.

Musk is one of the great entrepreneurs of the 21st Century. He’s redefining space travel with SpaceX. He’s revolutionized internet communication with his Starlink low-earth orbit satellites, having more than 2,000 satellites in orbit. And he’s made Tesla the global leader in Electric Vehicles. And that has made him very rich.

Now he’s using some of his Tesla money along with a lot of Other People’s Money (Morgan Stanley, Barclays, and Bank of America) to buy Twitter and take it private. Bloomberg says Musk’s pledging $21 billion of his own money. The Banks are going to lend him $12.5 billion, secured by an additional $62.5 billion of his Tesla shares.

The rest of the purchase price will be funded by $13 billion in debt that Twitter will take on. After the deal closes, Twitter will have about $1 billion in interest payments due on the new debt annually. Twitter’s cash flow is projected to be about $1.43 billion this year and $1.85 billion in 2023. So debt payments will now be a huge chunk of Twitter’s future cash.

Since this is America, it’s unlikely that any government agency will stand in the way of the sale, but there are two things wrong with it.

First is how Musk became so fabulously wealthy. As Ranjan Roy points out at Margins, his rapid ascent to wealth is due to his unusual compensation package at Tesla. The package set what appeared to be unrealistic goals for sales and profits.

In early 2018, when the comp package was agreed, there was plenty of doubt whether Tesla could scale its manufacturing capacity. Musk had repeatedly said Tesla was on the verge of bankruptcy, yet over the next few years, Tesla both stabilized and grew. It went from producing around 90k cars/quarter in 2018, to nearly 300k in the last quarter of 2021. Revenue grew from $12 billion to $54 billion. Tesla produced nearly 1 million cars in 2021.

At the same time, Tesla’s stock price went to the moon, making Musk the world’s richest human. Not incidentally, much of that was helped by Musk’s tweeting. Ranjan Roy says:

“…since the Spring of 2013, it was clear Tesla’s business results and Musk’s tweeting could have a self-reinforcing impact, and that…cycle…became more clear in recent years. Shortly after Musk signed his giant package, the really high-volume tweeting began, and the rest is wealth accumulation history.”

Musk realizes that he’s dependent on his Twitter marketing strategy. He has 80+ million Twitter followers, and unfettered access to his account is vital to his current and future business interests. Why? His current Tesla 10-year pay package has nearly hit its maximum targets in just four years.

Musk needs to think about where he gets his next giant gain in wealth.

This is the challenge of today’s capitalism: Boards with little real vision give stupendous compensation packages that turn out to be easily achievable. And the SEC allows entrepreneurs with media savvy to pump up their own stock at little personal risk.

Yes, Musk and Tesla have both paid fines to the SEC for stock manipulation. In a September 2018 settlement, Musk and the SEC agreed that he would step down as Tesla Chair and pay a $20 million penalty. Tesla also had to pay a $20 million fine.

But these were just minor costs of doing business compared to the personal wealth he’s created.

The second problem is that Musk, (and maybe a few on Twitter’s board) think that individual users should decide who and what gets seen and heard online. Musk says he wants Twitter to be an open playing field for competitive speech.

That may be peachy in the abstract. But we all know that every unmoderated platform goes to shit because it only takes a few bad-faith users to make it miserable for everyone.

For now, Twitter has decided that Trump can’t post on its platform. It decides whether to delete a post about vaccines if it deems the post to be misinformation. Most people don’t have the time to learn what’s real and reliable, and history shows how susceptible most are to harmful misinformation campaigns. Expect this to change after Musk buys Twitter.

Scott Galloway says:

“In an unmoderated online forum, all speakers do not play by the same rules or have the same tools. University of Maryland professor David Kirsch has found that automated pro-Tesla Twitter accounts are responsible for 20% of the tweets about Tesla, and that the launching of these bots correlates with increases in the company’s stock price.”

Rupert Murdoch transformed media in order to exercise greater influence over society. Does America need Musk to become another Murdoch? There’s a good chance one of his first acts as the Tweeter-in-Chief will be to re-instate Trump’s account, something that will have very serious political consequences.

Wrongo is a capitalist, but we’ve always needed rules to reign in the worst of the market’s players. And rules require umpires. Without umpires, anticompetitive and illegal acts go unpunished. Worse, today people insist, in the name of freedom, on their right to shout down all dissenting voices.

In America, underregulated economic winners have funded think tanks. Some have bought politicians. Some, newspapers and cable news stations. Musk is buying Twitter. They’re trying to convince us that the umpire is the enemy.

Musk wants you to live in a Wild West of speech and power. Are you ready for that?

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Smart Guys, Smart Power

When we think of entrepreneurs involved in renewable energy, usually just one name comes to mind, Elon Musk, a smart guy who has given Tesla a new meaning. He just merged Tesla with Solar City.

But smart entrepreneurs in solar are emerging. The NYT wrote yesterday about Nicholas Beatty, a former banker who has covered about 25 acres of his farm in England with solar panels. This isn’t a new phenomenon, lots of farms have solar arrays both in the UK and elsewhere, most of which also use Rooftop Solar Forecast software to plan and manage energy use around solar intermittency:

What’s new in Mr. Beatty’s field is a hulking 40-foot-long shipping container. Stacked inside, in what look like drawers, are about 200 lithium-ion cells that make up a battery large enough to store a substantial portion of the electricity the solar farm puts out.

The battery and its smart software give Mr. Beatty an advantage over other solar panel farmers. Power prices rise and fall depending on the supply and demand. The spread between the high and low price can be dramatic. By storing power in the battery, Mr. Beatty can feed it into the grid when prices are high:

The battery effectively takes power off the line when there is too much and puts it on when there is too little…

Farmers, business owners, and homeowners looking to install a solar power system for their own energy needs and uses may want to consider the services of Gietzen Solar to help set this up.
Improved industrial-sized batteries are a way of achieving that flexibility. Mr. Beatty’s battery storage system cost about $1 million, but could increase revenue for his solar farm by as much as $250k per year. Beatty is one of many entrepreneurs and businesses trying to play the fast-shifting electric power landscape. This is a capital-intensive business:

With about a dozen friends and family members…he spent ÂŁ6.5 million ($8 .1 million) to build the solar farm in 2014. The solar panels…generate about ÂŁ650,000 ($810k) in revenue a year…

Improved battery storage and its smart controlling software has been one of the two pillars required to make solar power competitive with non-renewable energy sources, you could definitely say that this is a case where the question Deep Cycle Versus Shallow Cycle Solar Batteries comes into play. The other is the cost of solar panels. Tesla has been working on both axis. They have built a solar demonstration project on the island of Ta’u in American Samoa that generates 1.4 megawatts of energy. The microgrid has 60 Tesla Powerpacks, the company’s large commercial battery with 6 megawatt hours of battery storage. These batteries can be fully charged with only 7 hours of daylight from 5,300 solar panels.

The microgrid facility can fully power the island of 600 residents for 3 days on battery power. It is expected to save the island 109,500 gallons of diesel per year or $8 million in fuel costs. Ta’u previously relied on diesel fueled generators for power.

Cost of solar energy per kilowatt or megawatt hour has been uncompetitive for a long time, but that is changing. And most countries and most US states now are willing to purchase power from independent generators, like Mr. Beatty in the UK. Many in the UK, including in locations like derby, are following suit and investigating how they can benefit from installing solar panels to their properties and harness the renewable power of the sun for themselves. The Economist has this chart of the relative costs of sources of energy:

price-of-solar

All of this means that American farmers could open a new revenue stream by becoming smart solar power generators. Farmers own large acreage in sunny locations. They have a deep understanding of farming, another capital-intensive business. They understand that farming is a climate-dependent enterprise, another factor in common with solar power generation.

A key factor is whether their state allows interconnection with the power grid, and whether the state’s program to pay the independent power generator for power sent to the grid at an economic rate.

Let’s hope that Donald Trump’s fascination with coal doesn’t lead to bad policy. The Economist reports that Trump has promised to make more public land available to miners; but access to coal reserves isn’t their problem. Coal employment peaked in the 1920s, and today, fewer electric utilities want to use coal. If he intervenes on behalf of coal, he will be actively handicapping renewables and natural gas. If Trump’s energy policy is focused on a few unprofitable coal-mines, China will take a commanding lead in batteries, solar panels and wind turbines. That wouldn’t be so smart.

We are at a time when the cost of solar energy has dropped dramatically, and with greater economies of scale, it will fall even further.

It is past time for a few smart entrepreneurs to take up the disruption of the fossil fuel industry and its fellow travelers, the electric utilities.

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