Monday, February 28

Chimerica or Chindia: Who Will Dominate the 21st Century?

A good read from Evans-Pritchard which covers several of the main issues which will determine which nation(s) will prosper the most in the 21st century.

Some of the key pieces of data highlighted in the article:
  • Demographic trends (e.g., China's 1.2 males/female ratio suggest social instability)
  • China’s workforce peaks in absolute terms in four years
  • Birth rates: Beijing and Shanghai are 1.0, Korea is 1.1, Singapore 1.2, Germany 1.3, Poland 1.3, Italy 1.4, Russia 1.4 with the U.S. coming in around the population replenishment rate of 2.1
  • Environmental catastrophe: China's growth rate of 10% is outstripped by 13.5% in GDP equivalent eco-damage)

Inside Job Takes Home Oscar for Best Documentary!

Inside Job Director Charles Ferguson
"Three years after a horrific financial crisis, not a single financial executive has gone to jail — and that's wrong" said Director Charles Ferguson during his Academy Award acceptance speech.

Bravo!

Sunday, February 27

University of Revolution

Good read on the Serbian-based organization CANVAS, which provided some inspiration for the April 6 Egypt revolutionaries, here.

Video: Revolution in Cairo (Frontline PBS)

Superb footage of the revolution in Cairo. If you live outside the U.S. and are unable to view this video check out this link for quick and easy way to watch it.



The Frontline website contains some additional videos, articles and links on this topic that are worth your time.

Podcast: The Immortalization Commission - Science and the Strange Quest to Cheat Death

Link to podcast here.

During the late nineteenth century and early twentieth century science became the vehicle for an assault on death. The power of knowledge was summoned to free humans of their mortality. Science was used against science and became a channel for faith.

John Gray is most recently the acclaimed author of Black Mass: Apocalyptic Religion and the Death of Utopia, and Straw Dogs: Thoughts on Humans and Other Animals. Having been Professor of Politics at Oxford, Visiting Professor at Harvard and Yale and Professor of European Thought at the London School of Economics, he now writes full time. His selected writings, Gray’s Anatomy, were published by Penguin in 2009. The Immortalization Commission: Science and the Strange Quest to Cheat Death is published in February 2011.

Friday, February 25

Chart of the Day - Why Might NATO Intervene in Libya?

Is the reason NATO's heartfelt concern over the rising Libyan death toll? 

Courtesy of CNN, that appears to be the television sound bite to be dished out by NATO member politicians. Here's Simon Henderson (a senior fellow at the Washington Institute for Near East Policy) on the rationale for NATO intervention in Libya:
"What's an acceptable number of civilian deaths? I don't know. Choose your figure," Henderson said. "At the very least, instead of having a casualty list certainly in the hundreds, possibly in the thousands, we don't want a casualty list numbering in the tens of thousands, or 100,000 or so."
With all due respect, Simon, here's a figure for you: not-so-long ago NATO couldn't be bothered to lift a finger when approximately one million people were slaughtered in nearby Rwanda.

The below chart illustrates the real reason Libya's civil war matters more to the NATO powers that be than nearby Rwanda's:

(click to enlarge)

Source: Economist

Podcast: A Palestinian-Israeli Grand Bargain is Off (For Now)

A conversation led by Henry Siegman, president of the U.S./Middle East Project, on how current events in North Africa and the Middle East will impact the Israeli-Palestinian peace effort.

There is also a discussion of the recent U.S. veto of the United Nations resolution on Israel, which closely conformed to President Obama's policy on Israeli settlements in disputed territory. The U.S. stood alone on the Security Council with this veto.

An unfortunate likely consequence of a further delay in advancing Israeli-Palestinian negotiations is more violence.

Henry Siegman is president of the U.S./Middle East Project, an initiative focused on U.S.-Middle East policy and the Israel-Palestine conflict, launched by the Council on Foreign Relations in 1994. The organization was established as an independent policy institute in 2006 under the chairmanship of General Brent Scowcroft. 

Thursday, February 24

The Vital Question on Every Fleeing Dictator's and Oligarch's Mind

Preferred getaway vehicle
Is whether to pack gold, cash or something else entirely (i.e., diamonds, bearer bonds, highly enriched uranium) into your getaway airplane?

Courtesy of commenter Greg S. at the Business Insider, here is the gold vs. cash calculation:
Greg figured a G-5 (a popular business jet) couldn't take off with 'tons of gold'. He estimated that $1 million fits in a small duffel bag and about 100 of those would fill a G5's overhead storage bins. Here's what he came up with:
"Business is slow here, so just for fun I calculated the dollar value of gold and currency that you can stuff into a G5 and still take off with 18 passengers. The useful load of a G5 is 6500lbs and the baggage compartment is listed at 226 cubic feet.
Gold in a G5: [6,500lbs - 18*165 lbs passengers]*16oz/lb*$1300/oz = $73.4 million worth of gold (with no passengers you can roughly double the amount of gold)
Currency in a G5: 226 ft3 * 1728 in3/ft3 / 0.06891 in3 * $100USD = $566.7 million USD (you could still put more in the cabin).
No surprise that it makes sense to leave the gold at home. If you figure that 10-15% of the volume is going to go toward the actual suitcases this means that the entire baggage compartment of that jet was packed full of US cash."
However, commenter Matland calculates that diamonds may be an even better call on a space/weight for value basis:
1 carat diamond = $1,000
1 carat weight about 200 milligrams
31,000 milligrams = 1 ounce
$155,000 worth of diamonds = 1 ounce
$500 million in diamonds = 3,225 ounces12 troy ounces = 1 pound
3,225 ounces =268.75 pounds 
$500 million in diamonds = 268.75 pounds

Just leave out the fat account and bring about four duffle bags of shiny stones.

Libyan Civil War: Tactical Military Assessment

Gaddafi maintains a sizable cache of chemical weapons
Today's NY Times provides some insight into the tactical situation in Libya, including force size, how Gadaffi has structured the military, clan loyalties, and other factors likely to prove crucial in Libya's unfolding civil war:
Colonel Qaddafi, who took power in a military coup, has always kept the Libyan military too weak and divided to do the same thing to him. About half its relatively small 50,000-member army is made up of poorly trained and unreliable conscripts, according to the Center for Strategic and International Studies.
Many of its battalions are organized along tribal lines, ensuring their loyalty to their own clan rather than to top military commanders — a pattern evident in the defection of portions of the army to help protesters take the eastern city of Benghazi.
Colonel Qaddafi’s own clan dominates the air force and the upper level of army officers, and they are believed to have remained loyal to him, in part because his clan has the most to lose from his ouster.
Other clans, like the large Warfalla tribe, have complained that they have been shut out of the top ranks, Professor Sullivan noted, which may help explain why they were among the first to turn on Colonel Qaddafi.
Untrusting of his officers, Colonel Qaddafi built up an elaborate paramilitary force — accompanied by special segments of the regular army that report primarily to his family. It is designed to check the army and in part to subdue his own population. At the top of that structure is his roughly 3,000-member revolutionary guard corps, which mainly guards him personally.
Then there are the militia units controlled by Colonel Qaddafi’s seven sons. A cable from the United States Embassy in Libya released by WikiLeaks described his son Khamis’s private battalion as the best equipped in the Libyan Army.
His brother Sa’ad has reportedly used his private battalion to help him secure business deals. And a third brother, Muatassim, is Colonel Qaddafi’s national security adviser. In 2008 he asked for $2.8 billion to pay for a battalion of his own, to keep up with his brothers.
But perhaps the most significant force that Colonel Qaddafi has deployed against the current insurrection is one believed to consist of about 2,500 mercenaries from countries like Chad, Sudan and Niger that he calls his Islamic Pan African Brigade.
Colonel Qaddafi began recruiting for his force years ago as part of a scheme to bring the African nations around Libya into a common union, and the mercenaries he trained are believed to have returned to Sudan and other bloody conflicts around Africa. But from the accounts of many witnesses Colonel Qaddafi is believed to have recalled them — and perhaps others — to help suppress the uprising.
And from the WSJ are details on Gaddafi's mustard gas and other chemical-weapons agents.

I'm wondering how many of the nearly 75% of U.S. $100 bills which circulate outside the U.S. are being handed out by Gaddafi to (among others) his Pan African Brigade?

Photos of the Day: Infamous Dictator-Democracy Handshakes

Outrage du jour

Former U.K. Prime Minister Tony Blair & Libyan Dictator Gaddafi 

Current French President Sarkozy and Gaddafi


Gaddafi and Current U.S. President Obama

Perhaps history's most ironic...


Meet Your (Future) Maker Moment: Donald Rumsfeld and Saddam Hussein

... and arguably the most infamous:

Appeasement: UK Prime Minister Neville Chamberlain and Nazi Führer Adolf Hitler

Tuesday, February 22

Preview: Niall Ferguson's Civilization - The West and the Rest

Niall Ferguson's new book, titled Civilization: The West and the Rest, will be released shortly on March 3. An accompanying six-part Channel 4 television series premieres on March 6 in the U.K.

Here's a preview:
If in the year 1411 you had been able to circumnavigate the globe, you would have been most impressed by the dazzling civilizations of the Orient. The Forbidden City was under construction in Ming Beijing; in the Near East, the Ottomans were closing in on Constantinople. 
By contrast, England would have struck you as a miserable backwater ravaged by plague, bad sanitation and incessant war. The other quarrelsome kingdoms of Western Europe – Aragon, Castile, France, Portugal and Scotland – would have seemed little better. As for fifteenth-century North America, it was an anarchic wilderness compared with the realms of the Aztecs and Incas. The idea that the West would come to dominate the Rest for most of the next half millennium would have struck you as wildly fanciful. And yet it happened. What was it about the civilization of Western Europe that allowed it to trump the outwardly superior empires of the Orient? 
The answer, Niall Ferguson argues, was that the West developed six “killer applications” that the Rest lacked: competition, science, democracy, medicine, consumerism and the work ethic. The key question today is whether or not the West has lost its monopoly on these six things. If so, Ferguson warns, we may be living through the end of Western ascendancy. Civilization takes readers on their own extraordinary journey around the world – from the Grand Canal at Nanjing to the Topkapi Palace in Istanbul; from Machu Picchu in the Andes to Shark Island, Namibia; from the proud towers of Prague to the secret churches of Wenzhou. It is the story of sailboats, missiles, land deeds, vaccines, blue jeans and Chinese Bibles. It is the defining narrative of modern world history.
May 1st Update: Just finished watching the full six-part television series, which you can view for a few more days here. It was excellent and I highly recommended it.

I did spot one perhaps small nit: in episode six on 'Work', Ferguson describes American inventor Thomas Edison as the "alternating current (AC) king" of electricity. Whether or not this was another nickname for the "The Wizard of Menlo Park", it was fellow inventor Nikola Tesla (along with perhaps George Westinghouse) who can lay proper claim to being the true AC King. Edison was a fierce opponent of AC in favor of his own alternative (and inferior) direct current (DC) system.

To associate Edison with AC as Ferguson does is at best historically incomplete, or worse perhaps misleading.

Revolutionary Tipping Points: Is This 1989, 1968, 1848 or NOTA?

Revolution and the Muslim World
By George Friedman, STRATFOR

The Muslim world, from North Africa to Iran, has experienced a wave of instability in the last few weeks. No regimes have been overthrown yet, although as of this writing, Libya was teetering on the brink.

1848 Europe
There have been moments in history where revolution spread in a region or around the world as if it were a wildfire. These moments do not come often. Those that come to mind include 1848, where a rising in France engulfed Europe. There was also 1968, where the demonstrations of what we might call the New Left swept the world: Mexico City, Paris, New York and hundreds of other towns saw anti-war revolutions staged by Marxists and other radicals. Prague saw the Soviets smash a New Leftist government. Even China’s Great Proletarian Cultural Revolution could, by a stretch, be included. In 1989, a wave of unrest, triggered by East Germans wanting to get to the West, generated an uprising in Eastern Europe that overthrew Soviet rule.

Each had a basic theme. The 1848 uprisings attempted to establish liberal democracies in nations that had been submerged in the reaction to Napoleon. 1968 was about radical reform in capitalist society. 1989 was about the overthrow of communism. They were all more complex than that, varying from country to country. But in the end, the reasons behind them could reasonably be condensed into a sentence or two.

Some of these revolutions had great impact. 1989 changed the global balance of power. 1848 ended in failure at the time — France reverted to a monarchy within four years — but set the stage for later political changes. 1968 produced little that was lasting. The key is that in each country where they took place, there were significant differences in the details — but they shared core principles at a time when other countries were open to those principles, at least to some extent.

The Current Rising in Context

In looking at the current rising, the geographic area is clear: The Muslim countries of North Africa and the Arabian Peninsula have been the prime focus of these risings, and in particular North Africa where Egypt, Tunisia and now Libya have had profound crises. Of course, many other Muslim countries also had revolutionary events that have not, at least until now, escalated into events that threaten regimes or even ruling personalities. There have been hints of such events elsewhere. There were small demonstrations in China, and of course Wisconsin is in turmoil over budget cuts. But these don’t really connect to what is happening in the Middle East. The first was small and the second is not taking inspiration from Cairo. So what we have is a rising in the Arab world that has not spread beyond there for the time being.

The key principle that appears to be driving the risings is a feeling that the regimes, or a group of individuals within the regimes, has deprived the public of political and, more important, economic rights — in short, that they enriched themselves beyond what good taste permitted. This has expressed itself in different ways. In Bahrain, for example, the rising was of the primarily Shiite population against a predominantly Sunni royal family. In Egypt, it was against the person of Hosni Mubarak. In Libya, it is against the regime and person of Moammar Gadhafi and his family, and is driven by tribal hostility.

Why has it come together now? One reason is that there was a tremendous amount of regime change in the region from the 1950s through the early 1970s, as the Muslim countries created regimes to replace foreign imperial powers and were buffeted by the Cold War. Since the early 1970s, the region has, with the exception of Iran in 1979, been fairly stable in the sense that the regimes — and even the personalities who rose up in the unstable phase — stabilized their countries and imposed regimes that could not easily be moved. Gadhafi, for example, overthrew the Libyan monarchy in 1969 and has governed continually for 42 years since then.

Any regime dominated by a small group of people over time will see that group use their position to enrich themselves. There are few who can resist for 40 years. It is important to recognize that Gadhafi, for example, was once a genuine, pro-Soviet revolutionary. But over time, revolutionary zeal declines and avarice emerges along with the arrogance of extended power. And in the areas of the region where there had not been regime changes since after World War I, this principle stays true as well, although interestingly, over time, the regimes seem to learn to spread the wealth a bit.

Thus, what emerged throughout the region were regimes and individuals who were classic kleptocrats. More than anything, if we want to define this wave of unrest, particularly in North Africa, it is a rising against regimes — and particularly individuals — who have been in place for extraordinarily long periods of time. And we can add to this that they are people who were planning to maintain family power and money by installing sons as their political heirs. The same process, with variations, is under way in the Arabian Peninsula. This is a rising against the revolutionaries of previous generations.

The revolutions have been coming for a long time. The rising in Tunisia, particularly when it proved successful, caused it to spread. As in 1848, 1968 and 1989, similar social and cultural conditions generate similar events and are triggered by the example of one country and then spread more broadly. That has happened in 2011 and is continuing.

A Uniquely Sensitive Region

It is, however, happening in a region that is uniquely sensitive at the moment. The U.S.-jihadist war means that, as with previous revolutionary waves, there are broader potential geopolitical implications. 1989 meant the end of the Soviet empire, for example. In this case, the question of greatest importance is not why these revolutions are taking place, but who will take advantage of them. We do not see these revolutions as a vast conspiracy by radical Islamists to take control of the region. A conspiracy that vast is easily detected, and the security forces of the individual countries would have destroyed the conspiracies quickly. No one organized the previous waves, although there have been conspiracy theories about them as well. They arose from certain conditions, following the example of one incident. But particular groups certainly tried, with greater and lesser success, to take advantage of them.

In this case, whatever the cause of the risings, there is no question that radical Islamists will attempt to take advantage and control of them. Why wouldn’t they? It is a rational and logical course for them. Whether they will be able to do so is a more complex and important question, but that they would want to and are trying to do so is obvious. They are a broad, transnational and disparate group brought up in conspiratorial methods. This is their opportunity to create a broad international coalition. Thus, as with traditional communists and the New Left in the 1960s, they did not create the rising but they would be fools not to try to take advantage of it. I would add that there is little question but that the United States and other Western countries are trying to influence the direction of the uprisings. For both sides, this is a difficult game to play, but it is particularly difficult for the United States as outsiders to play this game compared to native Islamists who know their country.

But while there is no question that Islamists would like to take control of the revolution, that does not mean that they will, nor does it mean that these revolutions will be successful. Recall that 1848 and 1968 were failures and those who tried to take advantage of them had no vehicle to ride. Also recall that taking control of a revolution is no easy thing. But as we saw in Russia in 1917, it is not necessarily the more popular group that wins, but the best organized. And you frequently don’t find out who is best organized until afterwards.

Democratic revolutions have two phases. The first is the establishment of democracy. The second is the election of governments. The example of Hitler is useful as a caution on what kind of governments a young democracy can produce, since he came to power through democratic and constitutional means — and then abolished democracy to cheering crowds. So there are three crosscurrents here. The first is the reaction against corrupt regimes. The second is the election itself. And the third? The United States needs to remember, as it applauds the rise of democracy, that the elected government may not be what one expected.

In any event, the real issue is whether these revolutions will succeed in replacing existing regimes. Let’s consider the process of revolution for the moment, beginning by distinguishing a demonstration from an uprising. A demonstration is merely the massing of people making speeches. This can unsettle the regime and set the stage for more serious events, but by itself, it is not significant. Unless the demonstrations are large enough to paralyze a city, they are symbolic events. There have been many demonstrations in the Muslim world that have led nowhere; consider Iran.

It is interesting here to note that the young frequently dominate revolutions like 1848, 1969 and 1989 at first. This is normal. Adults with families and maturity rarely go out on the streets to face guns and tanks. It takes young people to have the courage or lack of judgment to risk their lives in what might be a hopeless cause. However, to succeed, it is vital that at some point other classes of society join them. In Iran, one of the key moments of the 1979 revolution was when the shopkeepers joined young people in the street. A revolution only of the young, as we saw in 1968 for example, rarely succeeds. A revolution requires a broader base than that, and it must go beyond demonstrations. The moment it goes beyond the demonstration is when it confronts troops and police. If the demonstrators disperse, there is no revolution. If they confront the troops and police, and if they carry on even after they are fired on, then you are in a revolutionary phase. Thus, pictures of peaceful demonstrators are not nearly as significant as the media will have you believe, but pictures of demonstrators continuing to hold their ground after being fired on is very significant.

A Revolution’s Key Event

This leads to the key event in the revolution. The revolutionaries cannot defeat armed men. But if those armed men, in whole or part, come over to the revolutionary side, victory is possible. And this is the key event. In Bahrain, the troops fired on demonstrators and killed some. The demonstrators dispersed and then were allowed to demonstrate — with memories of the gunfire fresh. This was a revolution contained. In Egypt, the military and police opposed each other and the military sided with the demonstrators, for complex reasons obviously. Personnel change, if not regime change, was inevitable. In Libya, the military has split wide open.

When that happens, you have reached a branch in the road. If the split in the military is roughly equal and deep, this could lead to civil war. Indeed, one way for a revolution to succeed is to proceed to civil war, turning the demonstrators into an army, so to speak. That’s what Mao did in China. Far more common is for the military to split. If the split creates an overwhelming anti-regime force, this leads to the revolution’s success. Always, the point to look for is thus the police joining with the demonstrators. This happened widely in 1989 but hardly at all in 1968. It happened occasionally in 1848, but the balance was always on the side of the state. Hence, that revolution failed.

It is this act, the military and police coming over to the side of the demonstrators, that makes or breaks a revolution. Therefore, to return to the earlier theme, the most important question on the role of radical Islamists is not their presence in the crowd, but their penetration of the military and police. If there were a conspiracy, it would focus on joining the military, waiting for demonstrations and then striking.

Those who argue that these risings have nothing to do with radical Islam may be correct in the sense that the demonstrators in the streets may well be students enamored with democracy. But they miss the point that the students, by themselves, can’t win. They can only win if the regime wants them to, as in Egypt, or if other classes and at least some of the police or military — people armed with guns who know how to use them — join them. Therefore, looking at the students on TV tells you little. Watching the soldiers tells you much more.

The problem with revolutions is that the people who start them rarely finish them. The idealist democrats around Alexander Kerensky in Russia were not the ones who finished the revolution. The thuggish Bolsheviks did. In these Muslim countries, the focus on the young demonstrators misses the point just as it did in Tiananmen Square. It wasn’t the demonstrators that mattered, but the soldiers. If they carried out orders, there would be no revolution.

I don’t know the degree of Islamist penetration of the military in Libya, to pick one example of the unrest. I suspect that tribalism is far more important than theology. In Egypt, I suspect the regime has saved itself by buying time. Bahrain was more about Iranian influence on the Shiite population than Sunni jihadists at work. But just as the Iranians are trying to latch on to the process, so will the Sunni jihadists.

The Danger of Chaos

I suspect some regimes will fall, mostly reducing the country in question to chaos. The problem, as we are seeing in Tunisia, is that frequently there is no one on the revolutionaries’ side equipped to take power. The Bolsheviks had an organized party. In these revolutions, the parties are trying to organize themselves during the revolution, which is another way to say that the revolutionaries are in no position to govern. The danger is not radical Islam, but chaos, followed either by civil war, the military taking control simply to stabilize the situation or the emergence of a radical Islamic party to take control — simply because they are the only ones in the crowd with a plan and an organization. That’s how minorities take control of revolutions.

All of this is speculation. What we do know is that this is not the first wave of revolution in the world, and most waves fail, with their effects seen decades later in new regimes and political cultures. Only in the case of Eastern Europe do we see broad revolutionary success, but that was against an empire in collapse, so few lessons can be drawn from that for the Muslim world.

In the meantime, as you watch the region, remember not to watch the demonstrators. Watch the men with the guns. If they stand their ground for the state, the demonstrators have failed. If some come over, there is some chance of victory. And if victory comes, and democracy is declared, do not assume that what follows will in any way please the West — democracy and pro-Western political culture do not mean the same thing.

The situation remains fluid, and there are no broad certainties. It is a country-by-country matter now, with most regimes managing to stay in power to this point. There are three possibilities. One is that this is like 1848, a broad rising that will fail for lack of organization and coherence, but that will resonate for decades. The second is 1968, a revolution that overthrew no regime even temporarily and left some cultural remnants of minimal historical importance. The third is 1989, a revolution that overthrew the political order in an entire region, and created a new order in its place.

If I were to guess at this point, I would guess that we are facing 1848. The Muslim world will not experience massive regime change as in 1989, but neither will the effects be as ephemeral as 1968. Like 1848, this revolution will fail to transform the Muslim world or even just the Arab world. But it will plant seeds that will germinate in the coming decades. I think those seeds will be democratic, but not necessarily liberal. In other words, the democracies that eventually arise will produce regimes that will take their bearings from their own culture, which means Islam.

The West celebrates democracy. It should be careful what it hopes for: It might get it.


Revolution and the Muslim World is republished with permission of STRATFOR

Saturday, February 19

Why Isn't Wall Street in Jail?

Good question!

Weekend reading from Matt Taibbi in Rolling Stone here on why so few prosecutions have been brought by the Obama administration against 'main stream' Wall Street. This has left over-the-top ponzi crook Bernie Madoff as the only high-profile financial villain serving time in the pokey.

Johny Depp in Blow
Speaking of Madoff, fellow ponzi-schemer 'Sir' Allen Stanford was recently moved into Madoff's digs at Butner prison. Will the two get a chance to compare notes?

Docudrama filmmakers: there may be a fun movie here. I'm imagining a screenplay set in part at Butner, perhaps featuring Stanford and Madoff as cellmates, with flashbacks to their pre-arrest glory days ala the stylized cocaine caper, Blow.

Thursday, February 17

Review: TripIt, My New Favorite Time Saving Smartphone App (Video)

The key value add: being able to simply forward emails I receive from the airlines containing my flight details/confirmations to TripIt, and then TripIt does two things:
  1. automatically and instantaneously syncs all that info to my Google calendar
  2. stores it on my Nexus S TripIt app 
No more manually typing flight information into my calendar, and no more searching for emails to dig up a confirmation number.

And it does a couple other nifty things mentioned in the video below. Marvelous.

Wednesday, February 16

The 'Shoe Thrower's Index': Middle-East Interactive Country Profiles

Click here to toggle the BBC's profiles and data on the Middle Eastern countries currently experiencing unrest.


Based on the below 'Shoe Thrower's Index' Yemen takes the cake at 87% (100% = most unstable).


Michael Lewis on his FCIC 'dissent from the dissent from the dissent'

From Michael:
A surprising number of my fellow citizens appear to be unaware of my service these past 18 months as a member of the Financial Crisis Inquiry Commission. 
Thus it may come as news that I have declined to sign the report issued by the majority, or the dissent by the three- member minority, or even the dissent from their dissent, written by the now-immortal Peter J. Wallison. I hereby dissent from the dissent from the dissent. My dissent is different from all those other dissents, which is why I am dissenting.
Read Michael's full Bloomberg pieced titled 'All You Need to Know About Why Things Fell Apart' here.

The $625 Cookbook

47 pounds of recipes & tips
Is this the ultimate cookbook?

At a biblical 2,400 pages and for its whopping price it better be!

The WSJ dubs former Microsoft CTO Nathan Myhrvold's guide de gourmand a "game-changing cookbook" and claims it "upends everything you thought you knew about cooking".

And if you've ever wondered what it's like to eat a 30-course meal check out the feast at Chez Nathan's here (which includes pics of dishes).

P.S. Psst..the book only costs $467.62 on Amazon.com.

Podcast: Interview with Michael Lewis, 'Financial Disaster Tourist'

Link to NPR Planet Money podcast featuring Michael Lewis here.

A description of the interview and a few excerpts:
"At bottom, I'm not all that interested in money," Michael Lewis tells us on today's Planet Money. 
"It's peculiar that I've written financial books and worked on Wall Street. ... I'm interested in something else, and I guess that other thing is character and action and the general drift of societies. Money, because people care so much about it ... is this great prism through which to view people."

On the show, we talk about the long arc of Lewis's work. 
In the '80s, he wrote a book about the people who created mortgage-backed securities. Last year, he described people who bet against mortgage backed securities and got rich when they collapsed in the financial crisis. 
In his next book, he'll profile some of the places that got hit particularly hard in the crisis. 
"We're having this global financial crisis. The cause in the various countries is all basically the same thing: it's incontinent credit. It's money washing in at terms that shouldn't be offered, to people who should never be lent money in the first place. ... But in each place, the symptoms are completely different if you look closely."
"So I thought, here we have an opportunity to create a genre: financial disaster travel journalism. We are going to learn about the places through the prism of their financial affairs. They're all subjected to a temptation: a pile of money in a dark room. Do what you want with it. ... They want to do different things in different places. Those are social portraits. They're masquerading as financial pieces."

Monday, February 14

Video: Niall Ferguson on The Political Economy of the Cold War

18 October 2010 (Part 1 in the lecture series)

At its heart the Cold War was a competition between two economic systems. Despite having in common a "military-industrial complex", they were profoundly different in the degree of freedom they offered their citizens, the living standards they were able to achieve and the pace of technological innovation they could sustain. In this first lecture, Niall Ferguson compares and contrasts the United States and the Soviet Union in the Cold War and asks how far the outcome of the Cold War was economically determined from the outset. In particular, what role did commercial and financial globalization play in enhancing U.S. power in the world? And how serious a threat did inflation pose to the United States in the 1970s?

Video: Niall Ferguson on The Third World's War

24 November 2010 (Part 2 in the lecture series)

Although never a "hot" war between the superpowers, the Cold War was waged partly through a series of proxy wars in Third World countries from Guatemala to Korea to Vietnam. Although a great deal of attention has been devoted to a select number of U.S. Interventions in the Third World, there is an urgent need to see the "Third World's War" in perspective, showing how successful the Soviet Union was in pursuing a strategy of fomenting revolution and how consistently successive U.S. administrations behaved in response.

Sunday, February 13

Video: Niall Ferguson on The Grand Strategy of Détente

18 January 2011 (Part 3 in the lecture series)

'Nixon goes to China' shattered the façade of Communist unity and dug the United States out of the hole it found itself in at the end of the 1960s. Critics have seen Nixon and Kissinger's policy as morally compromised, but was it actually the key to America's victory in the Cold War?


Video: Atlas Shrugged Movie Trailer Disappoints



My first reaction: it has the look and feel of a Left Behind type film in terms of production quality (not good). And please don't ask how I know what a Left Behind movie looks like.

Second reaction: setting it in the modern world is a questionable call. It's easy to criticize Atlas Shrugged today, but it's important to remember the context and historical period in which it was written. Aesthetically, there's not enough art deco in this trailer, and it should be in black and white, preferably filmed in a Sky Captain and the World of Tomorrow grain. 

Also for such a long-winded story to have any chance of holding the attention of a general audience it probably needs A-Listers. While I'm not a huge fan of Angelina Jolie, perhaps she could pull off Dagny; maybe Antonio Banderas could play Francisco, etc.

Atlas Shrugged and its characters in particular captured my imagination when I was younger, but as I blogged previously Rand's ideas are (for starters) inconsistent.

Last word on the film adaptation of Atlas Shrugged goes to Tiger Beatdown:
I myself am greatly looking forward to the movie. Because the whole point of it – superior people make superior products and earn superior money because they're superior! – is going to be really complemented by the spectacle of this broke-assed movie made with former WB stars for like five cents.

Saturday, February 12

Video: Niall Ferguson on China's Fundamental Problem



More clips from Professor Ferguson's Big Think interview can be viewed here.

2045: The Year Science Makes Humans Immortal?

Ray Kurzweil
For my money it just doesn't get any more bleeding edge than the 'Singularity'.

A good read published in Time yesterday on this topic, and radical life-extension, featuring inventor and futurist Ray Kurzweil, Cambridge Professor Aubrey de Grey, investor Peter Thiel, and others at the forefront of this (for lack of a better term) movement.

From the article:
The more you read about the Singularity, the more you start to see it peeking out at you, coyly, from unexpected directions. Five years ago we didn't have 600 million humans carrying out their social lives over a single electronic network. Now we have Facebook. Five years ago you didn't see people double-checking what they were saying and where they were going, even as they were saying it and going there, using handheld network-enabled digital prosthetics. Now we have iPhones. Is it an unimaginable step to take the iPhones out of our hands and put them into our skulls? 
Already 30,000 patients with Parkinson's disease have neural implants. Google is experimenting with computers that can drive cars. There are more than 2,000 robots fighting in Afghanistan alongside the human troops. This month a game show will once again figure in the history of artificial intelligence, but this time the computer will be the guest: an IBM super-computer nicknamed Watson will compete on Jeopardy! Watson runs on 90 servers and takes up an entire room, and in a practice match in January it finished ahead of two former champions, Ken Jennings and Brad Rutter. It got every question it answered right, but much more important, it didn't need help understanding the questions (or, strictly speaking, the answers), which were phrased in plain English.
The idea of the Singularity first hit me like a lightning bolt a little over a decade ago when I read Sun Microsystem co-founder Bill Joy's alarming Wired article titled Why the Future Doesn't Need Us. I've been fascinated and trying to wrap my mind around the many potential implications of exponential technological development and living indefinitely ever since.

The Antithesis of Idle Chitchat

If you're looking for a way to spice up your next dinner party or bar conversation then I encourage you to trot out the idea of science making immortality a reality within your lifetime.

As noted by Kurzweil, people can more easily accept the idea of superhuman HAL-like computer artificial intelligence in the foreseeable future than banishing death. Based on limited anecdotal observations women in particular seem to have an almost viscerally negative, knee-jerk response when first confronted with the notion that the necessary technological advances could arrive in their lifetime.

In fact I have yet to encounter a single woman that responds positively at first blush to the idea of living forever. Perhaps the only thing this reveals is a homogeneity amongst my circle of female friends and acquaintances. But it has led me to wonder whether there is something fundamental to radical life extension which makes it more appealing to men?

Personally, I don't think so. Rather I think this is a case of a big, hard to fathom idea traumatically upending the perceived natural order of life's apple cart. Once you get passed initial concerns over things like quality of life (living long but as a gimp or vegetable) or what this means for romance (and concepts like soul mates) then some women soften up their initial distaste for life extension.

I for one love the idea of extending life indefinitely! There is so much I would love to learn, see, and do; to one day catch a sunrise on planet Mars and then climb Olympus Mons, a mountain almost three times as tall as Everest!

So far as I can imagine there is simply nothing else which would more profoundly alter life as we know it than the Singularity and radical life extension. However, their prospect raises tectonic moral, philosophical, socioeconomic, and security implications. Joy's concerns, which are shared by Kurzweil, must be addressed.

Below is a video of a 17-year old Kurzweil during his 1965 television appearance on I've Got a Secret, and here is a link to his most recent television interview on Charlie Rose where he describes the Singularity.

Thank You Readers!

SeekingAlpha Top 5 Opinion Leader on Forex*
Dear Reader,

Apologies for the garishness, but the Seeking Alpha designation is a nice occasion to say a long overdue and warm thank you. 

It's been great to see the number of site visitors steadily grow since my first post in May of last year on sovereign debt, currencies, and gold. And I'm especially excited to see more and more always welcome comments. My hope when I started was for two-way communication and the trends are encouraging.

Regretfully this past week was slow in terms of blogging productivity. This has been due to my needing to focus on an exciting opportunity. Long story made short, some amazing doors are opening which should translate into some even more interesting and original content for this site going forward.

Thank you for your continued interest, and keep the comments coming!

Sincerely yours,

The PolyCapitalist

*If you're interested in learning how Seeking Alpha constructs its Opinion Leader rankings they're based on page views by investment category (e.g., forex) over the past 90 days. Here's more info.

Thursday, February 3

Video: Niall Ferguson on Euro Optimism; Discusses Middle-East/Pakistani Upheaval

Link to Bloomberg video interview here.

Video: Michael Lewis Discusses His Personal Portfolio Strategy

Michael Lewis On Why Ireland Will Ultimately Default

Michael Lewis
Following up on his previous profiles of bankrupt Iceland and bailed out (for now) Greece, Michael Lewis has a new article titled 'When Irish Eyes Are Crying' in the March Vanity Fair.

I highly recommend carving out time to read the full article, but here are a few choice excerpts:
Not knowing why they were so suddenly so successful, the Irish can perhaps be forgiven for not knowing exactly how successful they were meant to be. They had gone from being abnormally poor to being abnormally rich, without pausing to experience normality. 
Ireland’s financial disaster shared some things with Iceland’s. It was created by the sort of men who ignore their wives’ suggestions that maybe they should stop and ask for directions, for instance. 
The journalists were following the bankers’ lead and conflating a positive outlook on real-estate prices with a love of country and a commitment to Team Ireland. (“They’d all use this same phrase, ‘You’re either for us or against us,’ ” says a prominent bank analyst in Dublin.)
The most obvious change in the country’s politics has been the role played by foreigners. The Irish government and Irish banks are crawling with American investment bankers and Australian management consultants and faceless Euro-officials, referred to inside the Department of Finance simply as “the Germans.” Walk the streets at night and, through restaurant windows, you see important-looking men in suits, dining alone, studying important-looking papers. In some new and strange way Dublin is now an occupied city: Hanoi, circa 1950. 
At the rate money currently flows into the Irish treasury, Irish bank losses alone would absorb every penny of Irish taxes for at least the next three years. 
A banking system is an act of faith: it survives only for as long as people believe it will. Two weeks earlier the collapse of Lehman Brothers had cast doubt on banks everywhere. Ireland’s banks had not been managed to withstand doubt; they had been managed to exploit blind faith.
If the Irish wanted to save their banks, why not guarantee just the deposits? There’s a big difference between depositors and bondholders: depositors can flee.
Now the Irish people finally caught a glimpse of the guy meant to be safeguarding them: the crazy uncle had been sprung from the family cellar. Here he was, on their televisions, insisting that the Irish banks were “resilient” and “more than adequately capitalized” … when everyone in Ireland could see, in the vacant skyscrapers and empty housing developments around them, evidence of bank loans that were not merely bad but insane. “What happened was that everyone in Ireland had the idea that somewhere in Ireland there was a little wise old man who was in charge of the money, and this was the first time they’d ever seen this little man,” says McCarthy. “And then they saw him and said, Who the fuck was that??? Is that the fucking guy who is in charge of the money??? That’s when everyone panicked.” 
Ireland’s 87 percent rate of home-ownership is among the highest in the world. There’s no such thing as a non-recourse home mortgage in Ireland. The guy who pays too much for his house is not allowed to simply hand the keys to the bank and walk away. He’s on the hook, personally, for whatever he borrowed. Across Ireland, people are unable to extract themselves from their houses or their bank loans. Irish people will tell you that, because of their sad history of dispossession, owning a home is not just a way to avoid paying rent but a mark of freedom. In their rush to freedom, the Irish built their own prisons. And their leaders helped them to do it.
"Financial-catastrophe tourism" is how Michael describes his visits to various European countries since the financial crisis began.

For more from Michael on his latest story check out the article's accompanying Q&A, where he predicts the Irish people, like the Greeks, will eventually say nach bhfuil níos mó (Gaelic for 'no more') and default:
(quote from Lewis' driver) "The problem with the Irish is that you can push them and push them and push them and they don’t do anything, then they snap and go whacko.” (Lewis' response) I think that’s going to happen. I think that you’re going to be surprised how much punishment they take, and then at some point they’re going to cease to take it. This may be years off; it may not be six months off. I think it’s a pretty slow-burning fuse.