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What a bunch of emo idiots

The JournoLister reaction to Obama’s election. It’s an amusing exercise in competitive moral posturing between white progressives… it would appear black rule is the goal towards which they wish to progress because it’s worked so well everywhere from Atlanta to Zimbabwe.

DAVID ROBERTS, GRIST: It’s all I can do not to start bawling.

LUKE MITCHELL, HARPER’S: I’m picturing something like VJ Day in Times Square. Seriously!

JOHN BLEVINS, SOUTH TEXAS COLLEGE OF LAW: It’s all I can do to hold it together.

MOIRA WHELAN, NATIONAL SECURITY NETWORK: I’m looking across the street at my polling place, and the line is wrapped around the block. I nearly burst into tears when I saw it. I’m feeling like today is closing the door on a terrible era, and opening another. I’m glad you started this thread because I was feeling kind of like I was the only one who is deeply emotional today.

HENRY FARRELL, GEORGE WASHINGTON UNIVERSITY: I had to close my office door yesterday because I was watching YouTube videos of elderly African Americans saying what this meant to them and tearing up.

JOSH BEARMAN, LA WEEKLY: 11 months ago I burst into tears by myself on a plane while watching Hardball when my mind wandered to the image of President Obama being sworn in. I’ve been fighting it ever since.

EZRA KLEIN, AMERICAN PROSPECT: OHIO!

ALEC MCGILLIS, WASHINGTON POST: If you need further proof that VA is looking to go blue, check out what’s going on in VA-5 in deepest Southside Virginia, where Tom Perriello, my college roommate and a very good guy, is now up .06 percentage points — 2,000 votes — against Virgil Goode with 88 percent reporting.

GREG ANRIG, THE CENTURY FOUNDATION: This is really happening.

ADELE STAN, THE MEDIA CONSORTIUM: At last I can breathe.

SPENCER ACKERMAN, WASHINGTON INDEPENDENT: YES WE DID!

STEVEN TELES, YALE UNIVERSITY: I’m not sure why, but this part of the Battle Hymn of the Republic came to me . . . . Glory! Glory! Hallelujah! Glory! Glory! Hallelujah! Glory! Glory! Hallelujah! Since God is marching on.

SPENCER ACKERMAN: [quoting Obama] “…we may not get there in one year or in one term, but America I promise you, we as a people will get there.”

HOLY. FUCKING. SHIT.

MICHAEL TOMASKY, THE GUARDIAN: I’m just jelly. Lord!

HAROLD POLLACK, UNIVERSITY OF CHICAGO: I am awed by the responsibility we have taken on. Tomorrow a desperately ill African-American woman will present at my university hospital for care, and she will be turned away.* She will expect us to live up to what we feel tonight. So we’ve got a lot to live up to.

All this for an incompetent and probably ineligible half-negro who is doing his clueless best to turn America into a bankrupt Detroit. No wonder they’re so bitter about his rapid political implosion. As I see it, the only fitting end for them would be to have their hearts torn out at sunrise and offered to Quetzalcoatl by Aztlan separatists on the UCLA campus as part of the celebrations accompanying the first Rodriguez inauguration in 2020.

Yeah, they’ll get there. They won’t like it when they do, but they’ll get there. The problem is that they’ll take you with them.

*Special bonus humor. Michelle Obama was responsible for instituting this patient-dumping program at this very hospital.

Already a lame duck

This is why Obama won’t be on the ballot in 2012:

A year after President Barack Obama’s political honeymoon ended, his job approval rating has dropped to a negative 44 – 48 percent, his worst net score ever, and American voters say by a narrow 39 – 36 percent margin that they would vote for an unnamed Republican rather than President Obama in 2012, according to a Quinnipiac University poll released today.

Of course, if the pollsters had asked about any Disney cartoon character, Obama would have fared even worse. While I have no doubt that the Republicans would like to do their utmost to throw the election by nominating a RINO in the Dole/McCain vein, they’re going to be far too busy attempting to discredit Ron Paul and co-opting the Tea Party to pay much attention to laying down for Obama. The real threat to Obama comes from within the Democratic Party; the Lizard Queen has been remarkably quiet for the last eighteen months and I don’t believe for a second that she has abandoned any of her presidential ambitions.

She’s reinvented herself as a moderate in comparison with Obama, and now that the first black president is a failure, she can still hope to break new ground as the first female president. And she won’t be the only Democrat to challenge Obama, in fact, she probably won’t even be the first. Once a fringe challenger begins to look capable of upsetting Obama’s primary nomination, the party elders will begin putting pressure on him to stand down in favor of a more popular, more moderate Democrat, like the Secretary of State.

One more thing. If you look at Obama, does he look like a man who enjoys being president? I think he knows he’s in way over his head and might even welcome the chance to get off the hot seat.

TARP rape

In case you were wondering where those record financial industry profits are coming from:

Increased housing commitments swelled U.S. taxpayers’ total support for the financial system by $700 billion in the past year to around $3.7 trillion, a government watchdog said on Wednesday. The Special Inspector General for the Troubled Asset Relief Program said the increase was due largely to the government’s pledges to supply capital to Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) and to guarantee more mortgages to the support the housing market.

It’s a brilliant business plan.

1) Gamble billions of dollars.  If you win, gamble more.  If you lose, go to step 2.
2) Ask the government to pay you trillions of dollars to prevent you from going bankrupt.  Otherwise cats and dogs will start living together!  Tanks on the streets!
3) Profit!

PS – Don’t forget to pay yourself millions of dollars in bonuses for your incredible and irreplaceable business acumen.

This is nothing less than financial rape by politics. It amounts to locking up one-quarter of the economy to guarantee the continued operation of the financial sector, which somehow can’t survive on only one-third of all American profits.

If you want to understand how America threw away its post-WWII economic advantage over the rest of the world, just look at that chart.  And notice how the fall in financial profits corresponded with the nation’s climb out of the 1970s economic malaise.  Profits are the economy’s lifesblood, but diverting those profits to the financial sector has the same effect as a vampire draining the blood out of a human body.  When the historians of the future write the history of America’s decline and fall, you can be sure that the Congress-assisted TARP rape will be marked as a significant event in that process.

Breaking the Army

As if there wasn’t enough reason to stop occupying Iraq and Afghanistan:

For those of us working in the US military it was clear that by the surge in 2007 the US forces were in terrible shape. By 2007, the repeated deployments resulted in an estimated 30 per cent of the US Army with some degree of post traumatic stress disorder. Every indicator of morale showed problems. Divorce and suicide were way up. Officers leaving the service after repeated deployments meant that the promotion selection of those remaining rose to 100 per cent. Before the Iraq and Afghanistan Wars lower performing officers were weeded out on the promotion lists from captain to major and major to lieutenant colonel. Competition for promotions ensured high standards in the officer corps. Normally only about 60 per cent of majors were selected for promotion to lieutenant colonel and those not promoted retired.

Yet by 2007 officer retention was so low that virtually all officers below full colonel were being selected for promotion to the next higher rank. The joke in the US Army was that the new standard for promotion was “fogging a mirror.” This also means that a lot of incompetent officers are moving higher in rank. This means big trouble now and even more in the future.

The absurd thing about these occupations, as with the Korean occupation, is that they have absolutely NOTHING to do with national security except to threaten it. Meanwhile, the southern border is being invaded on a daily basis. And both political parties are culpable.

Plus ça change, plus c’est la même chose

“While [the King of Sweden and Norway and former Marshal of France] Bernadotte was in Paris I saw him every day. He but faintly disguised from me the hope he had entertained of ruling France; and in the numerous conversations to which our respective occupations led I ascertained, though Bernadotte did not formally tell me so, that he once had strong expectations of succeeding Napoleon…. Bernadotte expressed to me astonishment at the recall of the Bourbons, and assured me that he had not expected the French people would so readily have consented to the Restoration. I confess I was surprised that Bernadotte, with the intelligence I knew him to possess, should imagine that the will of subjects has any influence in changes of government!”
– Louis Antoine Fauvelet de Bourrienne, The Memoirs of Napoleon

A technocrat doubts the future of technocracy

David Brooks sounds uncharacteristically immoderate:

When historians look back on this period, they will see it as another progressive era. It is not a liberal era — when government intervenes to seize wealth and power and distribute it to the have-nots. It’s not a conservative era, when the governing class concedes that the world is too complicated to be managed from the center. It’s a progressive era, based on the faith in government experts and their ability to use social science analysis to manage complex systems.

This progressive era is being promulgated without much popular support. It’s being led by a large class of educated professionals, who have been trained to do technocratic analysis, who believe that more analysis and rule-writing is the solution to social breakdowns, and who have constructed ever-expanding networks of offices, schools and contracts….

This progressive era amounts to a high-stakes test. If the country remains safe and the health care and financial reforms work, then we will have witnessed a life-altering event. We’ll have received powerful evidence that central regulations can successfully organize fast-moving information-age societies. If the reforms fail — if they kick off devastating unintended consequences or saddle the country with a maze of sclerotic regulations — then the popular backlash will be ferocious.

The so-called “reforms” will fail. The entire Progressive Era dating back to Woodrow Wilson is in the process of coming to an end and there is absolutely no doubt about it. We can be assured they fail, beyond any shadow of a doubt, because centralized planning always fails in the end. The more complicated the latest iterative attempt to repair the incipient failure is, the faster the next failure arrives. The Misean concept of central information deprivation – not to be confused with F.A. von Hayek’s later refinement – first foresaw and explained this certain failure not long after the Progressive era began, in a monograph entitled Economic Calculation In The Socialist Commonwealth, published in 1920.

And yet, 90 years later, the technocrats still believe that this time, they’ll somehow be able to get it right. They won’t. The elites are still caught up in their fantasy that 2+2 can equal 5 if they can only come up with just the right bureaucratic incantation. But they never, ever will. What the technocrats keep failing to understand is that no amount of technological assistance in information gathering can resolve the problem, because in replacing the supply and demand mechanism of the market, the central planners have removed the very engine that produces the necessary information.

Let me explain. A computer can theoretically keep track of how many people wear tennis shoes, their usage patterns, and when those shoes are likely to wear out and require replacement. But what it cannot track or simulate for even a single individual is the marginal utility of a pair of new shoes to that individual in comparison with all of the various competitive options, which, it should be kept in mind, are not limited to footware. Nor can it even begin to calculate the way in which all of the possibilities and preferences of all of the individuals in the economy will interact, thus preventing it from being able to tell the planners how many pairs of tennis shoes or how much electricity must be produced next year.

As I wrote in RGD, the Story of the Pencil only tells half the story. It is a supply-side story that ignores the more important demand-side one, which is the story of the myriad assignments of subjective value assigned to a pencil made by the tens of millions of potential pencil-buyers who could have bought pencils but elected not to buy them at the available price. Until a computer can correctly calculate the statistical probability of events that never happened, technology cannot even begin to help central planners solve the economic calculation problem.

A bit off

Ireland’s debt is downgraded:

Credit agency Moody’s has downgraded Ireland’s government bond ratings to Aa2, blaming banking liabilities, weak growth prospects and a substantial increase in the debt to GDP ratio…. The general government debt-to-GDP ratio was at 64 per cent at the end of last year, up from 25 per cent before the financial crisis took hold, and is continuing to rise.

I had Ireland, Spain, and the Baltic countries as the first to be downgraded. Instead, it was Greece, Spain, and Portugal that kicked off the sovereign debt spiral earlier this year. But it was only a matter of time before Ireland joined the party.

For those who are interested, here is a debt specialist’s opinion on what will happen in the Great Depression 2.0 scenario that I have been predicting: “Here is the Really Bad scenario. It’s not a worst possible scenario. It is more like the Long Depression or the Great Depression reoccurring under 2010 conditions. In the Really Bad scenario, 45% of the countries with large outstanding sovereign debts are in default within a 2-3 year period.”

Sex, lies, and trophy shirts

But apparently not everyone lies about sex. Or perhaps, as I tend to suspect, they are lying about not lying about it.

Research shows that, perhaps unsurprisingly, there is a split between the genders when it comes to answering the potentially embarrassing question. Around a third of women give a false response – and 64 per cent of these reduce the number. Half lie because they ‘feel ashamed’ of the number, while a further 19 per cent don’t want to be seen as promiscuous. A fifth of women would be dishonest about their number of sexual partners if their new partner had slept with fewer people than them.

A higher proportion of men – 43 per cent – lie to their new partner. In these cases, around 60 per cent increase the amount.

I was very surprised by this, because on every occasion I have been privy to accurate information about a female friend’s history and then heard her mention a number, she has lied. But then, it occurred to me that because higher numbers tend to devalue a woman’s relationship appeal, many women have no reason to lie. Consider the CDC report on anonymously reported female sexual history:

15+ partners: 9.4 percent
7-14 partners: 21.3 percent
2-6 partners: 44.3 percent
0-1 partners: 25 percent

Can you find “around a third of women” who might have an incentive to “give a false response”? The majority of the false reporting is almost surely from the 30.7% of women who fall into the Slutty and Frisky categories but are dishonestly claiming to be Normal. The average college-educated woman is disposed to believe that claiming 4-5 previous lovers is going to sound credible and not too promiscuous, (one high school boyfriend plus one fling per year of college), whereas no one is going to believe a claim of near-chastity. This is why a man should call BS on a woman who claims that moderate level of experience while simultaneously providing evidence that it is actually more extensive.

Now, it’s pretty easy for a woman to tell if a man is exaggerating about his experience, since he probably won’t know what he is doing. But how can a man tell if a woman is clever enough to avoid claiming complete inexperience and doesn’t give it away by breaking out bedroom gymnastics worthy of Cirque du Soleil? It’s quite easy if you happen to have access to her clothing drawer. Women attempt to steal status-branded t-shirts and sweatshirts whenever they have a fling with a man. It’s a bizarre form of competitive female trophy-hunting; a Harvard Hockey t-shirt trumps a nice, but generic University of Oregon sweatshirt.* So, you can be sure that every t-shirt advertising a college she never attended, a sporting event she never saw, a military service** to which neither she nor any family member are connected, or, if she actually went to that college, a sport she never played, represents a notch on her bedpost that she doesn’t report as a boyfriend. If she keeps around a few worn-out favorites of the sort she’d never buy in a million years but somehow keep managing to survive periodic wardrobe purges, you can be sure that they once belonged to other men.

And if she has a drawer full of t-shirts representing the entire SEC plus half the Big Ten, Notre Dame, and two Ivies, you had better run, not walk, to the nearest medical clinic.

Male dishonesty makes similar sense, albeit coming from the opposite angle. Because women place a negative value on men without sexual experience, men who lack it have an incentive to make themselves look more attractive via false preselection. And if 17% of men are lying to REDUCE their numbers, that gives some support to the 80/20 rule. Only the Alphas in the most successful quintile can afford to reduce their reported numbers without reducing their appeal to a prospective partner.

UPDATE – It occurs to me that women can find some use in the t-shirt test too. If you’re with a high value man you suspect of being haut alpha, check his t-shirt and sweatshirt collection. If he’s a former college athlete or graduated from an elite school, he should have no shortage of commemorative event t-shirts and team sweatshirts. If he doesn’t have any, then you can probably guess how they managed to walk out the door, one by one. If you want to amuse yourself, try asking him where they are. Most guys are so completely clueless about female trophy-hunting that he probably isn’t even aware they’re missing.

*If you ever feel like upending a woman’s applecart, note the trophy shirt X that she’s proudly sporting. Then, the next time you see her, ask her if she’s ever hooked up with X. While she’s wide-eyed and stammering in confusion, just smile and say, “Yeah, I thought you looked like the type.”

**thanks to AmyJ for reminding us of this one.

WND column

Matches for Arsonists

It is of paramount importance to every individual in a modern civilized community that banking credit should have the same solidity as coined money.
– Charles Connant, “Principles of Money and Banking,” 1905

In The Return of the Great Depression, I predicted that “the consensus scenario will gradually transform from Green Shoots into Jobless Recovery, which will remain the mainstream consensus until it begins to become apparent in the autumn of 2010 that even Jobless Recovery is too optimistic.”

It would appear I was somewhat too optimistic myself despite my frequent contentions that we are passing through the early stages of a large-scale economic contraction that will last more than a decade. It is only summer, and yet already the dread “double-dip” term is being regularly bandied about, while the last champion of Neo-Keynesian economics, Paul Krugman, has begun to hedge his bets by complaining that the two previous stimulus packages were too small and talking about “the third depression.”

The ending of America

This American Spectator article has been going around and is well worth reading. I’m posting the economic section here, but the bit on the difference between the ruling class’s interests and the rest of the country are arguably the most important part:

By taxing and parceling out more than a third of what Americans produce, through regulations that reach deep into American life, our ruling class is making itself the arbiter of wealth and poverty. While the economic value of anything depends on sellers and buyers agreeing on that value as civil equals in the absence of force, modern government is about nothing if not tampering with civil equality. By endowing some in society with power to force others to sell cheaper than they would, and forcing others yet to buy at higher prices — even to buy in the first place — modern government makes valuable some things that are not, and devalues others that are. Thus if you are not among the favored guests at the table where officials make detailed lists of who is to receive what at whose expense, you are on the menu. Eventually, pretending forcibly that valueless things have value dilutes the currency’s value for all.

Laws and regulations nowadays are longer than ever because length is needed to specify how people will be treated unequally. For example, the health care bill of 2010 takes more than 2,700 pages to make sure not just that some states will be treated differently from others because their senators offered key political support, but more importantly to codify bargains between the government and various parts of the health care industry, state governments, and large employers about who would receive what benefits (e.g., public employee unions and auto workers) and who would pass what indirect taxes onto the general public. The financial regulation bill of 2010, far from setting univocal rules for the entire financial industry in few words, spends some 3,000 pages (at this writing) tilting the field exquisitely toward some and away from others. Even more significantly, these and other products of Democratic and Republican administrations and Congresses empower countless boards and commissions arbitrarily to protect some persons and companies, while ruining others. Thus in 2008 the Republican administration first bailed out Bear Stearns, then let Lehman Brothers sink in the ensuing panic, but then rescued Goldman Sachs by infusing cash into its principal debtor, AIG. Then, its Democratic successor used similarly naked discretionary power (and money appropriated for another purpose) to give major stakes in the auto industry to labor unions that support it. Nowadays, the members of our ruling class admit that they do not read the laws. They don’t have to. Because modern laws are primarily grants of discretion, all anybody has to know about them is whom they empower.

By making economic rules dependent on discretion, our bipartisan ruling class teaches that prosperity is to be bought with the coin of political support. Thus in the 1990s and 2000s, as Democrats and Republicans forced banks to make loans for houses to people and at rates they would not otherwise have considered, builders and investors had every reason to make as much money as they could from the ensuing inflation of housing prices. When the bubble burst, only those connected with the ruling class at the bottom and at the top were bailed out. Similarly, by taxing the use of carbon fuels and subsidizing “alternative energy,” our ruling class created arguably the world’s biggest opportunity for making money out of things that few if any would buy absent its intervention. The ethanol industry and its ensuing diversions of wealth exist exclusively because of subsidies. The prospect of legislation that would put a price on carbon emissions and allot certain amounts to certain companies set off a feeding frenzy among large companies to show support for a “green agenda,” because such allotments would be worth tens of billions of dollars. That is why companies hired some 2,500 lobbyists in 2009 to deepen their involvement in “climate change.” At the very least, such involvement profits them by making them into privileged collectors of carbon taxes. Any “green jobs” thus created are by definition creatures of subsidies — that is, of privilege. What effect creating such privileges may have on “global warming” is debatable. But it surely increases the number of people dependent on the ruling class, and teaches Americans that satisfying that class is a surer way of making a living than producing goods and services that people want to buy.

Beyond patronage, picking economic winners and losers redirects the American people’s energies to tasks that the political class deems more worthy than what Americans choose for themselves. John Kenneth Galbraith’s characterization of America as “private wealth amidst public squalor” (The Affluent Society, 1958) has ever encapsulated our best and brightest’s complaint: left to themselves, Americans use land inefficiently in suburbs and exurbs, making it necessary to use energy to transport them to jobs and shopping. Americans drive big cars, eat lots of meat as well as other unhealthy things, and go to the doctor whenever they feel like it. Americans think it justice to spend the money they earn to satisfy their private desires even though the ruling class knows that justice lies in improving the community and the planet. The ruling class knows that Americans must learn to live more densely and close to work, that they must drive smaller cars and change their lives to use less energy, that their dietary habits must improve, that they must accept limits in how much medical care they get, that they must divert more of their money to support people, cultural enterprises, and plans for the planet that the ruling class deems worthier. So, ever-greater taxes and intrusive regulations are the main wrenches by which the American people can be improved (and, yes, by which the ruling class feeds and grows).

I’ve been saying for years that America as we knew it is over. The incipient battle between the rulers and the ruled will determine what its replacement will be. Fortunately for the ruled, the economic meltdown combined with the ruling class’s dedication to macroeconomic guidance is adding a high degree of difficulty to their effort to finish reducing the citizenry to serfdom.