Sunday, July 25, 2010

Reading List: Foreign Influence

Thor, Brad. Foreign Influence. New York: Atria Books, 2010. ISBN 978-1-4165-8659-3.
Thanks to the inexorable working of Jerry Pournelle's Iron Law of Bureaucracy, government agencies, even those most central to the legitimate functions of government and essential to its survival and the safety of the citizenry, will inevitably become sclerotic and ineffective, serving their employees at the expense of the taxpayers. The only way to get things done is for government to outsource traditionally governmental functions to private sector contractors, and recent years have seen even military operations farmed out to private security companies.

With the intelligence community having become so dysfunctional and hamstrung by feel-good constraints upon their actions and fear of political retribution against operatives, it is only natural that intelligence work—both collection and covert operations—will move to the private sector, and in this novel, Scot Harvath has left government service to join the shadowy Carlton Group, providing innovative services to the Department of Defense. Freed of bureaucratic constraints, Harvath's inner klootzak (read the book) is fully unleashed. Less than halfway into the novel, here's Harvath reporting to his boss, Reed Carlton:

“So let me get this straight,” said the Old Man. “You trunked two Basque separatists, Tasered a madam and a bodyguard—after she kicked your tail—then bagged and dragged her to some French farmhouse where you threatened to disfigure her, then iceboarded a concierge, shot three hotel security guards, kidnapped the wife of one of Russia's wealthiest mobsters, are now sitting in a hotel in Marseille waiting for a callback from the man I sent you over there to apprehend. Is that about right?”
Never a dull moment with the Carlton Group on the job!

Aggressive action is called for, because Harvath finds himself on the trail of a time-sensitive plot to unleash terror attacks in Europe and the U.S., launched by an opaque conspiracy where nothing is as it appears to be. Is this a jihadist plot, or the first volley in an asymmetric warfare conflict launched by an adversary, or a terror network hijacked by another mysterious non-state actor with its own obscure agenda? As Harvath follows the threads, two wisecracking Chicago cops moonlighting to investigate a hit and run accident stumble upon a domestic sleeper cell about to be activated by the terror network. And as the action becomes intense, we make the acquaintance of an Athena Team, an all-babe special forces outfit which is expected to figure prominently in the next novel in the saga and will doubtless improve the prospects of these books being picked up by Hollywood. With the clock ticking, these diverse forces (and at least one you'll never see coming) unite to avert a disastrous attack on American soil. The story is nicely wrapped up at the end, but the larger mystery remains to be pursued in subsequent books.

I find Brad Thor's novels substantially more “edgy” than those of Vince Flynn or Tom Clancy—like Ian Fleming, he's willing to entertain the reader with eccentric characters and situations even if they strain the sense of authenticity. If you enjoy this kind of thing—and I do, very much—you'll find this an entertaining thriller, perfect “airplane book”, and look forward to the next in the series. A podcast interview with the author is available.

Posted at 20:36 Permalink

Thursday, July 22, 2010

Reading List: Intellectuals and Society

Sowell, Thomas. Intellectuals and Society. New York: Basic Books, 2009. ISBN 978-0-465-01948-9.
What does it mean to be an intellectual in today's society? Well, certainly one expects intellectuals to engage in work which is mentally demanding, which many do, particularly within their own narrow specialities. But many other people perform work which is just as cognitively demanding: chess grandmasters, musical prodigies, physicists, engineers, and entrepreneurs, yet we rarely consider them “intellectuals” (unless they become “public intellectuals”, discussed below), and indeed “real” intellectuals often disdain their concern with the grubby details of reality.

In this book, the author identifies intellectuals as the class of people whose output consists exclusively of ideas, and whose work is evaluated solely upon the esteem in which it is held by other intellectuals. A chess player who loses consistently, a composer whose works summon vegetables from the audience, an engineer whose aircraft designs fall out of the sky are distinguished from intellectuals in that they produce objective results which succeed or fail on their own merits, and it is this reality check which determines the reputation of their creators.

Intellectuals, on the other hand, are evaluated and, in many cases, hired, funded, and promoted solely upon the basis of peer review, whether formal as in selection for publication, grant applications, or awarding of tenure, or informal: the estimation of colleagues and their citing of an individual's work. To anybody with the slightest sense of incentives, this seems a prescription for groupthink, and it is no surprise that the results confirm that supposition. If intellectuals were simply high-performance independent thinkers, you'd expect their opinions to vary all over the landscape (as is often the case among members of other mentally demanding professions). But in the case of intellectuals, as defined here, there is an overwhelming acceptance of the nostrums of the political left which appears to be unshakable regardless of how many times and how definitively they have been falsified and discredited by real world experience. But why should it be otherwise? Intellectuals themselves are not evaluated by the real world outcomes of their ideas, so it's only natural they're inclined to ignore the demonstrated pernicious consequences of the policies they advocate and bask instead in the admiration of their like-thinking peers. You don't find chemists still working with the phlogiston theory or astronomers fine-tuning geocentric models of the solar system, yet intellectuals elaborating Marxist theories are everywhere in the humanities and social sciences.

With the emergence of mass media in the 20th century, the “public intellectual” came into increasing prominence. These are people with distinguished credentials in a specialised field who proceed to pronounce upon a broad variety of topics in which their professional expertise provides them no competence or authority whatsoever. The accomplishments of Bertrand Russell in mathematics and philosophy, of Noam Chomsky in linguistics, or of Paul Erlich in entomology are beyond dispute. But when they walk onto the public stage and begin to expound upon disarmament, colonialism, and human population and resources, almost nobody in the media or political communities stops to ask just why their opinion should be weighed more highly than that of anybody else without specific expertise in the topic under discussion. And further, few go back and verify their past predictions against what actually happened. As long as the message is congenial to the audience, it seems like public intellectuals can get a career-long pass from checking their predictions against outcomes, even when the discrepancies are so great they would have caused a physical scientist to be laughed out of the field or an investor to have gone bankrupt. As biographer Roy Harrod wrote of eminent economist and public intellectual John Maynard Keynes:

He held forth on a great range of topics, on some of which he was thoroughly expert, but on others of which he may have derived his views from the few pages of a book at which he happened to glance. The air of authority was the same in both cases.
As was, of course, the attention paid by his audience.

Intellectuals, even when pronouncing within their area of specialisation, encounter the same “knowledge problem” Hayek identified in conjunction with central planning of economies. While the expert, or the central planning bureau, may know more about the problem domain than 99% of individual participants in the area, in many cases that expertise constitutes less than 1% of the total information distributed among all participants and expressed in their individual preferences and choices. A free market economy can be thought of as a massively parallel cloud computer for setting prices and allocating scarce resources. Its information is in the totality of the system, not in any particular place or transaction, and any attempt to extract that information by aggregating data and working on bulk measurements is doomed to failure both because of the inherent loss of information in making the aggregations and also because any such measure will be out of date long before it is computed and delivered to the would-be planner. Intellectuals have the same conceit: because they believe they know far more about a topic than the average person involved with it (and in this they may be right), they conclude that they know much more about the topic than everybody put together, and that if people would only heed their sage counsel much better policies would be put in place. In this, as with central planning, they are almost always wrong, and the sorry history of expert-guided policy should be adequate testament to its folly.

But it never is, of course. The modern administrative state and the intelligentsia are joined at the hip. Both seek to concentrate power, sucking it out from individuals acting at their own discretion in their own perceived interest, and centralising it in order to implement the enlightened policies of the “experts”. That this always ends badly doesn't deter them, because it's power they're ultimately interested in, not good outcomes. In a section titled “The Propagation of the Vision”, Sowell presents a bill of particulars as damning as that against King George III in the Declaration of Independence, and argues that modern-day intellectuals, burrowed within the institutions of academia, government, and media, are a corrosive force etching away the underpinnings of a free society. He concludes:

Just as a physical body can continue to live, despite containing a certain amount of microorganisms whose prevalence would destroy it, so a society can survive a certain amount of forces of disintegration within it. But that is very different from saying that there is no limit to the amount, audacity and ferocity of those disintegrative forces which a society can survive, without at least the will to resist.
In the past century, it has mostly been authoritarian tyrannies which have “cleaned out the universities” and sent their effete intellectual classes off to seek gainful employment in the productive sector, for example doing some of those “jobs Americans won't do”. Will free societies, whose citizens fund the intellectual class through their taxes, muster the backbone to do the same before intellectuals deliver them to poverty and tyranny? Until that day, you might want to install my “Monkeying with the Mainstream Media”, whose Red Meat edition translates “expert” to “idiot”, “analyst” to “moron”, and “specialist” to “nitwit” in Web pages you read.

An extended video interview with the author about the issues discussed in this book is available, along with a complete transcript.

Posted at 22:11 Permalink

Saturday, July 17, 2010

Reading List: Extreme Measures

Flynn, Vince. Extreme Measures. New York: Pocket Books, 2008. ISBN 978-1-4165-0504-4.
This is the ninth novel in the Mitch Rapp (warning—the article at this link contains minor spoilers) series and is perhaps the most politically charged of the saga so far. When a high-ranking Taliban commander and liaison to al-Qaeda is captured in Afghanistan, CIA agent Mike Nash begins an interrogation with the aim of uncovering a sleeper cell planning terrorist attacks in the United States, but is constrained in his methods by a grandstanding senator who insists that the protections of the Geneva Convention be applied to this non-state murderer. Frustrated, Nash calls in Mitch Rapp for a covert and intense debrief of the prisoner, but things go horribly wrong and Rapp ends up in the lock-up of Bagram Air Base charged with violence not only against the prisoner but also a U.S. Air Force colonel (who is one of the great twits of all time—one wonders even with a service academy ring how such a jackass could attain that rank).

Rapp finds himself summoned before the Senate Judiciary Committee to answer the charges and endure the venting of pompous gasbags which constitutes the bulk of such proceedings. This time, however, Rapp isn't having any. He challenges the senators directly, starkly forcing them to choose between legalistic niceties and defeating rogue killers who do not play by the rules. Meanwhile, the sleeper cell is activated and puts into motion its plot to wreak terror on the political class in Washington. Deprived of information from the Taliban captive, the attack takes place, forcing politicians to realise that verbal virtuosity and grandstanding in front of cameras is no way to fight a war. Or, at least, for a moment until they forget once again, and as long as it is they who are personally threatened, not their constituents.

As Mitch Rapp becomes a senior figure and something of a Washington celebrity, Mike Nash is emerging as the conflicted CIA cowboy that Rapp was in the early books of the series. I suspect we'll see more and more of Nash in the future as Rapp recedes into the background.

Posted at 15:20 Permalink

Friday, July 2, 2010

Reading List: The Big Short

Lewis, Michael. The Big Short. New York: W. W. Norton, 2010. ISBN 978-0-393-07223-5.
After concluding his brief career on Wall Street in the 1980s, the author wrote Liar's Poker, a memoir of a period of financial euphoria and insanity which he assumed would come crashing down shortly after his timely escape. Who could have imagined that the game would keep on going for two decades more, in the process raising the stakes from mere billions to trillions of dollars, extending its tendrils into financial institutions around the globe, and fuelling real estate and consumption bubbles in which individuals were motivated to lie to obtain money they couldn't pay back to lenders who were defrauded as to the risk they were taking?

Most descriptions of the financial crisis which erupted in 2007 and continues to play out at this writing gloss over the details, referring to “arcanely complex transactions that nobody could understand” or some such. But, in the hands of a master explainer like the author, what happened isn't at all difficult to comprehend. Irresponsible lenders (in some cases motivated by government policy) made mortgage loans to individuals which they could not afford, with an initial “teaser” rate of interest. The only way the borrower could avoid default when the interest rate “reset” to market rates was to refinance the property, paying off the original loan. But since housing prices were rising rapidly, and everybody knew that real estate prices never fall, by that time the house would have appreciated in value, giving the “homeowner” equity in the house which would justify a higher grade mortgage the borrower could afford to pay. Naturally, this flood of money into the housing market accelerated the bubble in housing prices, and encouraged lenders to create ever more innovative loans in the interest of “affordable housing for all”, including interest-only loans, those with variable payments where the borrower could actually increase the principal amount by underpaying, no-money-down loans, and “liar loans” which simply accepted the borrower's claims of income and net worth without verification.

But what financial institution would be crazy enough to undertake the risk of carrying these junk loans on its books? Well, that's where the genius of Wall Street comes in. The originators of these loans, immediately after collecting the loan fee, bundled them up into “mortgage-backed securities” and sold them to other investors. The idea was that by aggregating a large number of loans into a pool, the risk of default, estimated from historical rates of foreclosure, would be spread just as insurance spreads the risk of fire and other damages. Further, the mortgage-backed securities were divided into “tranches”: slices which bore the risk of default in serial order. If you assumed, say, a 5% rate of default on the loans making up the security, the top-level tranche would have little or no risk of default, and the rating agencies concurred, giving it the same AAA rating as U.S. Treasury Bonds. Buyers of the lower-rated tranches, all the way down to the lowest investment grade of BBB, were compensated for the risk they were assuming by higher interest rates on the bonds. In a typical deal, if 15% of the mortgages defaulted, the BBB tranche would be completely wiped out.

Now, you may ask, who would be crazy enough to buy the BBB bottom-tier tranches? This indeed posed a problem to Wall Street bond salesmen (who are universally regarded as the sharpest-toothed sharks in the tank). So, they had the back-office “quants” invent a new kind of financial derivative, the “collateralised debt obligation” (CDO), which bundled up a whole bunch of these BBB tranche bonds into a pool, divided it into tranches, et voilà, the rating agencies would rate the lowest risk tranches of the pool of junk as triple A. How to get rid of the riskiest tranches of the CDO? Lather; rinse; repeat.

Investors worried about the risk of default in these securities could insure against them by purchasing a “credit default swap”, which is simply an insurance contract which pays off if the bond it insures is not repaid in full at maturity. Insurance giant AIG sold tens of billions of these swaps, with premiums ranging from a fraction of a percent on the AAA tranches to on the order of two percent on BBB tranches. As long as the bonds did not default, these premiums were a pure revenue stream for AIG, which went right to the bottom line.

As long as the housing bubble continued to inflate, this created an unlimited supply of AAA rated securities, rated as essentially without risk (historical rates of default on AAA bonds are about one in 100,000), ginned up on Wall Street from the flakiest and shakiest of mortgages. Naturally, this caused a huge flow of funds into the housing market, which kept the bubble expanding ever faster.

Until it popped.

Testifying before a hearing by the U.S. House of Representatives on October 22nd, 2008, Deven Sharma, president of Standard & Poor's, said, “Virtually no one—be they homeowners, financial institutions, rating agencies, regulators, or investors—anticipated what is occurring.” Notwithstanding the claim of culpable clueless clown Sharma, there were a small cadre of insightful investors who saw it all coming, had the audacity to take a position against the consensus of the entire financial establishment—in truth a bet against the Western world's financial system, and the courage to hang in there, against gnawing self-doubt (“Can I really be right and everybody else wrong?”) and skittish investors, to finally cash out on the trade of the century. This book is their story. Now, lots of people knew well in advance that the derivatives-fuelled housing bubble was not going to end well: I have been making jokes about “highly-leveraged financial derivatives” since at least 1996. But it's one thing to see an inevitable train wreck coming and entirely another to figure out approximately when it's going to happen, discover (or invent) the financial instruments with which to speculate upon it, put your own capital and reputation on the line making the bet, persist in the face of an overwhelming consensus that you're not only wrong but crazy, and finally cash out in a chaotic environment where there's a risk your bets won't be paid off due to bankruptcy on the other side (counterparty risk) or government intervention.

As the insightful investors profiled here dug into the details of the fairy castle of mortgage-backed securities, they discovered that it wouldn't even take a decline in housing prices to cause defaults sufficient to wipe out the AAA rated derivatives: a mere stagnation in real estate prices would suffice to render them worthless. And yet even after prices in the markets most affected by the bubble had already levelled off, the rating agencies continued to deem the securities based on their mortgages riskless, and insurance against their default could be bought at nominal cost. And those who bought it made vast fortunes as every other market around the world plummeted.

People who make bets like that tend to be way out on the tail of the human bell curve, and their stories, recounted here, are correspondingly fascinating. This book reads like one of Paul Erdman's financial thrillers, with the difference that the events described are simultaneously much less probable and absolutely factual. If this were a novel and not reportage, I doubt many readers would find the characters plausible.

There are many lessons to be learnt here. The first is that the human animal, and therefore the financial markets in which they interact, frequently mis-estimates and incorrectly prices the risk of outcomes with low probability: Black Swan (January 2009) events, and that investors who foresee them and can structure highly leveraged, long-term bets on them can do very well indeed. Second, Wall Street is just as predatory and ruthless as you've heard it to be: Goldman Sachs was simultaneously peddling mortgage-backed securities to its customers while its own proprietary traders were betting on them becoming worthless, and this is just one of a multitude of examples. Third, never assume that “experts”, however intelligent, highly credentialed, or richly compensated, actually have any idea what they're doing: the rating agencies grading these swampgas securities AAA had never even looked at the bonds from which they were composed, no less estimated the probability that an entire collection of mortgages made at the same time, to borrowers in similar circumstances, in the same bubble markets might all default at the same time.

We're still in the early phases of the Great Deleveraging, in which towers of debt which cannot possibly be repaid are liquidated through default, restructuring, and/or inflation of the currencies in which they are denominated. This book is a masterful and exquisitely entertaining exposition of the first chapter of this drama, and reading it is an excellent preparation for those wishing to ride out, and perhaps even profit from the ongoing tragedy. I have just two words to say to you: sovereign debt.

Posted at 21:08 Permalink

Tuesday, June 29, 2010

Recipes: Fourmilab Can't Fail Potato Salad

Ingredient Quantity
New boiling potatoes 1 kg
Red onion 1 medium
Hard boiled eggs 4 medium
Mayonnaise to taste
Salt to taste
Coarse ground pepper to taste

The potatoes should be of the “waxy”, “firm”, or “boiling” variety, not starchy baking potatoes. If you use small, “new” potatoes, you can leave the skin on. Potatoes sold for raclette are ideal, and usually come in a one kilogram bag, just what you need.

As a passionate believer in division of labour, I buy “pique-nique” eggs already hard boiled. These often run to the small side, and if they're seriously dinky, you might want to use five instead of four. If you prefer to boil your own eggs, here are foolproof instructions.

After washing the potatoes, if necessary, place them in a pan and cover with cold water, then bring to a boil. After the water is boiling, reduce the heat until it's just barely boiling, cover the pan, and allow to cook for between 15 and 30 minutes depending upon the size of the potatoes. To check whether the potatoes are done, poke one of the larger ones with a fork; if there's no hard centre, it's done.

Pour the cooked potatoes into a colander and allow to drain, dry, and come to room temperature. Slice the potatoes into chunks about half a centimetre thick. If you're using large potatoes, cut the slices into bite-sized pieces. Place the sliced potatoes into a salad bowl. Peel the eggs and wash and dry, if necessary, to get rid of any lingering bits of shell. Slice the eggs with an egg slicer like this one. I slice each egg, then rotate the slices 90° and slice again to make little cubical bits. If you prefer larger slices, just use the original slices. Add the eggs to the potatoes in the bowl. Peel and chop the onion and add to the bowl. I will often add between five and seven red radishes (depending on their size), finely chopped, for zest and crunchiness, but they are not canonical.

Mix everything well with a large spoon, cover, and refrigerate. I prefer to store potato salad this way (it will keep for several days in the frigo) and add mayonnaise, salt, and pepper to taste when it is served. That way each person can decide for themselves how much lubrication and seasoning they desire.

Seasoning at the table allows individual experimentation with zesty options. Things you might want to try include a little dollop of Dijon mustard, paprika, cayenne pepper (don't overdo it!), chopped fresh chives, and bacon salt. All are yummy additions, but not all at the same time!

Posted at 00:39 Permalink

Saturday, June 26, 2010

Reading List: To Save America

Gingrich, Newt with Joe DeSantis et al.. To Save America. Washington: Regnery Publishing, 2010. ISBN 978-1-59698-596-4.
In the epilogue of Glenn Beck's The Overton Window (June 2010), he introduces the concept of a “topical storm”, defined as “a state in which so many conflicting thoughts are doing battle in your brain that you lose your ability to discern and act on any of them.” He goes on to observe that:

This state was regularly induced by PR experts to cloud and control issues in the public discourse, to keep thinking people depressed and apathetic on election days, and to discourage those who might be tempted to actually take a stand on a complex issue.

It is easy to imagine responsible citizens in the United States, faced with a topical storm of radical leftist “transformation” unleashed by the Obama administration and its Congressional minions, combined with a deep recession, high unemployment, impending financial collapse, and empowered adversaries around the world, falling into a lethargic state where each day's dismaying news simply deepens the depression and sense of powerlessness and hopelessness. Whether deliberately intended or not, this is precisely what the statists want, and it leads to a citizenry reduced to a despairing passivity as the chains of dependency are fastened about them.

This book is a superb antidote for those in topical depression, and provides common-sense and straightforward policy recommendations which can gain the support of the majorities needed to put them into place. Gingrich begins by surveying the present dire situation in the U.S. and what is at stake in the elections of 2010 and 2012, which he deems the most consequential elections in living memory. Unless stopped by voters at these opportunities, what he describes as a “secular-socialist machine” will be able to put policies in place which will restructure society in such as way as to create a dependent class of voters who will reliably return their statist masters to power for the foreseeable future, or at least until the entire enterprise collapses (which may be sooner, rather than later, but should not be wished for by champions of individual liberty as it will entail human suffering comparable to a military conquest and may result in replacement of soft tyranny by that of the jackbooted variety).

After describing the hole the U.S. have dug themselves into, the balance of the book contains prescriptions for getting out. The situation is sufficiently far gone, it is argued, that reforming the present corrupt bureaucratic system will not suffice—a regime pernicious in its very essence cannot be fixed by changes around the margin. What is needed, then, is not reform but replacement: repealing or sunsetting the bad policies of the present and replacing them with ones which make sense. In certain domains, this may require steps which seem breathtaking to present day sensibilities, but when something reaches its breaking point, drastic things will happen, for better or for worse. For example, what to do about activist left-wing Federal judges with lifetime tenure, who negate the people's will expressed through their elected legislators and executive branch? Abolish their courts! Hey, it worked for Thomas Jefferson, why not now?

Newt Gingrich seeks a “radical transformation” of U.S. society no less than does Barack Obama. Unlike Obama, however, his prescriptions, unlike his objectives, are mostly relatively subtle changes on the margin which will shift incentives in such a way that the ultimate goal will become inevitable in the fullness of time. One of the key formative events in Gingrich's life was the fall of the French Fourth Republic in 1958, which he experienced first hand while his career military stepfather was stationed in France. This both acquainted him with the possibility of unanticipated discontinuous change when the unsustainable can no longer be sustained, and the risk of a society with a long tradition of republican government and recent experience with fascist tyranny welcoming with popular acclaim what amounted to a military dictator as an alternative to chaos. Far better to reset the dials so that the society will start heading in the right direction, even if it takes a generation or two to set things aright (after all, depending on how you count, it's taken between three and five generations to dig the present hole) than to roll the dice and hope for the best after the inevitable (should present policies continue) collapse. That, after all, didn't work out too well for Russia, Germany, and China in the last century.

I have cited the authors in the manner above because a number of the chapters on specific policy areas are co-authored with specialists in those topics from Gingrich's own American Solutions and other organisations.

Posted at 21:19 Permalink

Thursday, June 24, 2010

Reading List: The Manchurian President

Klein, Aaron with Brenda J. Elliott. The Manchurian President. New York: WND Books, 2010. ISBN 978-1-935071-87-7.
The provocative title of this book is a reference to Richard Condon's classic 1959 Cold War thriller, The Manchurian Candidate, in which a Korean War veteran, brainwashed by the Chinese while a prisoner of war in North Korea, returns as a sleeper agent, programmed to perform political assassinations on behalf of his Red controllers. The climax comes as a plot unfolds to elect a presidential candidate who will conduct a “palace coup”, turning the country over to the conspirators. The present book, on the other hand, notwithstanding its title, makes no claim that its subject, Barack Obama, has been brainwashed in any way, nor that there is any kind of covert plot to enact an agenda damaging to the United States, nor is any evidence presented which might support such assertions. Consequently, I believe the title is sensationalistic and in the end counterproductive. But what about the book?

Well, I'd argue that there is no reason to occupy oneself with conspiracy theories or murky evidence of possible radical connections in Obama's past, when you need only read the man's own words in his 1995 autobiography, Dreams from My Father, describing his time at Occidental College:

To avoid being mistaken for a sellout, I chose my friends carefully. The more politically active black students. The foreign students. The Chicanos. The Marxist professors and the structural feminists and punk-rock performance poets. We smoked cigarettes and wore leather jackets. At night, in the dorms, we discussed neocolonialism, Frantz Fanon, Eurocentrism, and patriarchy.

The sentence fragments. Now, certainly, many people have expressed radical thoughts in their college days, but most, writing an autobiography fifteen years later, having graduated from Harvard Law School and practiced law, might be inclined to note that they'd “got better”; to my knowledge, Obama makes no such assertion. Further, describing his first job in the private sector, also in Dreams, he writes:

Eventually, a consulting house to multinational corporations agreed to hire me as a research assistant. Like a spy behind enemy lines, I arrived every day at my mid-Manhattan office and sat at my computer terminal, checking the Reuters machine that blinked bright emerald messages from across the globe.

Now bear in mind that this is Obama on Obama, in a book published the same year he decided to enter Illinois politics, running for a state senate seat. Why would a politician feigning moderation in order to gain power, thence to push a radical agenda, explicitly brag of his radical credentials and background?

Well, he doesn't because he's been an overt hard left radical with a multitude of connections to leftist, socialist, communist, and militant figures all of his life, from the first Sunday school he attended in Hawaii to the circle of advisers he brought into government following his election as president. The evidence of this has been in plain sight ever since Obama came onto the public scene, and he has never made an effort to cover it up or deny it. The only reason it is not widely known is that the legacy media did not choose to pursue it. This book documents Obama's radical leftist history and connections, but it does so in such a clumsy and tedious manner that you may find it difficult to slog through. The hard left in the decades of Obama's rise to prominence is very much like that of the 1930s through 1950s: a multitude of groups with platitudinous names concealing their agenda, staffed by a cast of characters whose names pop up again and again as you tease out the details, and with sources of funding which disappear into a cloud of smoke as you try to pin them down. In fact, the “new new left” (or “contemporary progressive movement”, as they'd doubtless prefer) looks and works almost precisely like what we used to call “communist front organisations” back in the day. The only difference is that they aren't funded by the KGB, seek Soviet domination, or report to masters in Moscow—at least as far as we know….

Obama's entire career has been embedded in such a tangled web of radical causes, individuals, and groups that following any one of them is like pulling up a weed whose roots extend in all directions, tangling with other weeds, which in turn are connected every which way. What we have is not a list of associations, but rather a network, and a network is a difficult thing to describe in the linear narrative of a book. In the present case, the authors get all tangled up in the mess, and the result is a book which is repetitive, tedious, and on occasions so infuriating that it was mostly a desire not to clean up the mess and pay the repair cost which kept me from hurling it through a window. If they'd mentioned just one more time that Bill Ayers was a former Weatherman terrorist, I think I might have lost that window.

Each chapter starts out with a theme, but as the web of connections spreads, we get into material and individuals covered elsewhere, and there is little discipline in simply cross-referencing them or trusting the reader to recall their earlier mention. And when there are cross-references, they are heavy handed. For example at the start of chapter 12, they write: “Two of the architects of that campaign, and veterans of Obama's U.S. senatorial campaign—David Axelrod and Valerie Jarrett—were discussed by the authors in detail in Chapter 10 of this book.” Hello, is there an editor in the house? Who other than “the authors” would have discussed them, and where else than in “this book”? And shouldn't an attentive reader be likely to recall two prominent public figures discussed “in detail” just two chapters before?

The publisher's description promises much, including “Obama's mysterious college years unearthed”, but very little new information is delivered, and most of the book is based on secondary sources, including blog postings the credibility of which the reader is left to judge. Now, I did not find much to quibble about, but neither did I encounter much material I did not already know, and I've not obsessively followed Obama. I suppose that people who exclusively get their information from the legacy media might be shocked by what they read here, but most of it has been widely mentioned since Obama came onto the radar screen in 2007. The enigmatic lacunæ in Obama's paper trail (SAT and LSAT scores, college and law school transcripts, etc.) are mentioned here, but remain mysterious.

If you're interested in this topic, I'd recommend giving this book a miss and instead starting with the Barack Obama page on David Horowitz's Discover the Networks site, following the links outward from there. Horowitz literally knows the radical left from inside and out: the son of two members of the Communist Party of the United States, he was a founder of the New Left and editor of Ramparts magazine. Later, repelled by the murderous thuggery of the Black Panthers, he began to re-think his convictions and has since become a vocal opponent of the Left. His book, Radical Son (March 2007), is an excellent introduction to the Old and New Left, and provides insight into the structure and operation of the leftists behind and within the Obama administration.

Posted at 22:42 Permalink

Saturday, June 19, 2010

Reading List: The Overton Window

Beck, Glenn. The Overton Window. New York: Threshold Editions, 2010. ISBN 978-1-4391-8430-1.
I have no idea who is actually responsible for what in the authorship of this novel. Glenn Beck is listed as the principal author, but the title page says “with contributions from Kevin Balfe, Emily Bestler, and Jack Henderson”. I have cited the book as it appears on the cover and in most mentions of it, as a work by Glenn Beck. Certainly, regardless of who originated, edited, and assembled the words into the present work, it would not have been published nor have instantaneously vaulted to the top of the bestseller lists had it not been associated with the high profile radio and television commentator to whom it is attributed. Heck, he may have written the whole thing himself and generously given credit to his editors and fact checkers—it does, indeed, read like a first attempt by an aspiring thriller author.

It isn't at all bad. Beck (et al., or whatever) tend to be a bit preachy and the first half of the novel goes pretty slow. It's only after you cross the 50 yard line that you discover there's more to the story than you thought, that things and characters are not what they seemed to be, and that the choices facing the protagonist, Noah Gardner, are more complicated than you might have thought.

The novel has been given effusive cover blurbs by masters of the genre Brad Thor and Vince Flynn. Still, I'd expect those page-turner craftsmen to have better modulated the tension in a story than we find here. A perfectly crafted thriller is like a roller coaster, with fear-inducing rises and terrifying plunges, but this is more like a lecture on constitutional government whilst riding on a Disneyland ride where most of the characters are animatronic robots there to illustrate the author's message. The characters just don't feel right. How plausible is it that a life-long advocate of liberty and conspiracy theorist would become bestest buddy with an undercover FBI agent who blackmailed him into co-operating in a sting operation less than 24 hours before? Or that a son who was tortured almost to death at the behest (and in the presence of) his father could plausibly be accepted as a minion in the father's nefarious undertaking? For the rest, we're going to have to go behind the spoiler curtain.

Spoiler warning: Plot and/or ending details follow.  
In chapter 30, Noah is said to have been kept unconscious for an entire weekend with a “fentanyl patch”. But fentanyl patches are used as an analgesic, not an anæsthetic. Although the drug was once used as a general anæsthetic, it was administered intravenously in this application, not via a transdermal patch.

The nuclear bomb “model” (which turns out to be the real thing) is supposed to have been purloined from a cruise missile which went missing during transport, and is said to weigh “eighty or one hundred pounds”. But the W-80 and W-84 cruise missile warheads weighed 290 and 388 pounds respectively. There is no way the weight of the physics package of these weapons could be reduced to such an extent while remaining functional.

The Mark 8 atomic bomb which comes on the scene in chapter 43 makes no sense at all. Where did it come from? Why was a bomb, of which only 40 were ever produced and removed from service in 1957, carefully maintained in secret and off the books for more than fifty years? Any why would the terrorists want two bombs, when the second would simply be vaporised when they set off the first? Perhaps I've missed something, but it's kind of like you're reading a spy thriller and in the middle of a gunfight a unicorn wanders through the middle and everybody stops shooting until it passes, whereupon they continue the battle as if nothing happened.

Spoilers end here.  

Apart from plausibility of the characters and quibbles, both of which I'm more than willing to excuse in a gripping thriller, the real disappointment here is that the novel ends about two hundred chapters before anything is actually resolved. This is a chronicle of the opening skirmish in a cataclysmic, protracted conflict between partisans of individual liberty and forces seeking to impose global governance by an élite. When you put the book down, you'll have met the players and understand their motives and resources, but it isn't even like the first volume of a trilogy where, regardless of how much remains to happen, there is usually at least the conclusion of a subplot. Now, you're not left with a cliffhanger, but neither is there any form of closure to the story. I suppose one has no option but to wait for the inevitable sequel, but I doubt I'll be reading it.

This is not an awful book; it's enjoyable on its own terms and its citations of real-world events may be enlightening to readers inattentive to the shrinking perimeter of liberty in this increasingly tyrannical world (the afterword provides resources for those inclined to explore further). But despite their praise for it, Vince Flynn and Brad Thor it's not.

Posted at 20:58 Permalink

Tuesday, June 15, 2010

Reading List: Last Call: The Rise and Fall of Prohibition

Okrent, Daniel. Last Call: The Rise and Fall of Prohibition. New York: Scribner, 2010. ISBN 978-0-7432-7702-0.
The ratification of the Eighteenth Amendment to the U.S. Constitution in 1919, prohibiting the “manufacture, sale, or transportation of intoxicating liquors” marked the transition of the U.S. Federal government into a nanny state, which occupied itself with the individual behaviour of its citizens. Now, certainly, attempts to legislate morality and regulate individual behaviour were commonplace in North America long before the United States came into being, but these were enacted at the state, county, or municipality level. When the U.S. Constitution was ratified, it exclusively constrained the actions of government, not of individual citizens, and with the sole exception of the Thirteenth Amendment, which abridged the “freedom” to hold people in slavery and involuntary servitude, this remained the case into the twentieth century. While bans on liquor were adopted in various jurisdictions as early as 1840, it simply never occurred to many champions of prohibition that a nationwide ban, written into the federal constitution, was either appropriate or feasible, especially since taxes on alcoholic beverages accounted for as much as forty percent of federal tax revenue in the years prior to the introduction of the income tax, and imposition of total prohibition would zero out the second largest source of federal income after the tariff.

As the Progressive movement gained power, with its ambitions of continental scale government and imposition of uniform standards by a strong, centralised regime, it found itself allied with an improbable coalition including the Woman's Christian Temperance Union; the Methodist, Baptist and Presbyterian churches; advocates of women's suffrage; the Anti-Saloon League; Henry Ford; and the Ku Klux Klan. Encouraged by the apparent success of “war socialism” during World War I and empowered by enactment of the Income Tax via the Sixteenth Amendment, providing another source of revenue to replace that of excise taxes on liquor, these players were motivated in the latter years of the 1910s to impose their agenda upon the entire country in as permanent a way as possible: by a constitutional amendment. Although the supermajorities required were daunting (two thirds in the House and Senate to submit, three quarters of state legislatures to ratify), if a prohibition amendment could be pushed over the bar (if you'll excuse the term), opponents would face what was considered an insuperable task to reverse it, as it would only take 13 dry states to block repeal.

Further motivating the push not just for a constitutional amendment, but enacting one as soon as possible, were the rapid demographic changes underway in the U.S. Support for prohibition was primarily rural, in southern and central states, Protestant, and Anglo-Saxon. During the 1910s, population was shifting from farms to urban areas, from the midland toward the coasts, and the immigrant population of Germans, Italians, and Irish who were famously fond of drink was burgeoning. This meant that the electoral landscape following reapportionment after the 1920 census would be far less receptive to the foes of Demon Rum.

One must never underestimate the power of an idea whose time has come, regardless of how stupid and counterproductive it might be. And so it came to pass that the Eighteenth Amendment was ratified by the 36th state: Utah, appropriately, on January 16th, 1919, with nationwide Prohibition to come into effect a year hence. From the outset, it was pretty obvious to many astute observers what was about happen. An Army artillery captain serving in France wrote to his fiancée in Missouri, “It looks to me like the moonshine business is going to be pretty good in the land of the Liberty Loans and Green Trading Stamps, and some of us want to get in on the ground floor. At least we want to get there in time to lay in a supply for future consumption.” Captain Harry S. Truman ended up pursuing a different (and probably less lucrative career), but was certainly prescient about the growth industry of the coming decade.

From the very start, Prohibition was a theatre of the absurd. Since it was enforced by a federal statute, the Volstead Act, enforcement, especially in states which did not have their own state Prohibition laws, was the responsibility of federal agents within the Treasury Department, whose head, Andrew Mellon, was a staunch opponent of Prohibition. Enforcement was always absurdly underfunded compared to the magnitude of the bootlegging industry and their customers (the word “scofflaw” entered the English language to describe them). Federal Prohibition officers were paid little, but were nonetheless highly prized patronage jobs, as their holders could often pocket ten times their salary in bribes to look the other way.

Prohibition unleashed the American talent for ingenuity, entrepreneurship, and the do-it-yourself spirit. While it was illegal to manufacture liquor for sale or to sell it, possession and consumption were perfectly legal, and families were allowed to make up to 200 gallons (which should suffice even for the larger, more thirsty households of the epoch) for their own use. This led to a thriving industry in California shipping grapes eastward for householders to mash into “grape juice” for their own use, being careful, of course, not to allow it to ferment or to sell some of their 200 gallon allowance to the neighbours. Later on, the “Vino Sano Grape Brick” was marketed nationally. Containing dried crushed grapes, complete with the natural yeast on the skins, you just added water, waited a while, and hoisted a glass to American innovation. Brewers, not to be outdone, introduced “malt syrup”, which with the addition of yeast and water, turned into beer in the home brewer's basement. Grocers stocked everything the thirsty householder needed to brew up case after case of Old Frothingslosh, and brewers remarked upon how profitable it was to outsource fermentation and bottling to the customers.

For those more talented in manipulating the law than fermenting fluids, there were a number of opportunities as well. Sacramental wine was exempted from Prohibition, and wineries which catered to Catholic and Jewish congregations distributing such wines prospered. Indeed, Prohibition enforcers noted they'd never seen so many rabbis before, including some named Patrick Houlihan and James Maguire. Physicians and dentists were entitled to prescribe liquor for medicinal purposes, and the lucrative fees for writing such prescriptions and for pharmacists to fill them rapidly caused hard liquor to enter the materia medica for numerous maladies, far beyond the traditional prescription as snakebite medicine. While many pre-Prohibition bars re-opened as speakeasies, others prospered by replacing “Bar” with ”Drug Store” and filling medicinal whiskey prescriptions for the same clientele.

Apart from these dodges, the vast majority of Americans slaked their thirst with bootleg booze, either domestic (and sometimes lethal), or smuggled from Canada or across the ocean. The obscure island of St. Pierre, a French possession off the coast of Canada, became a prosperous entrepôt for reshipment of Canadian liquor legally exported to “France”, then re-embarked on ships headed for “Rum Row”, just outside the territorial limit of the U.S. East Coast. Rail traffic into Windsor, Ontario, just across the Detroit River from the eponymous city, exploded, as boxcar after boxcar unloaded cases of clinking glass bottles onto boats bound for…well, who knows? Naturally, with billions and billions of dollars of tax-free income to be had, it didn't take long for criminals to stake their claims to it. What was different, and deeply appalling to the moralistic champions of Prohibition, is that a substantial portion of the population who opposed Prohibition did not despise them, but rather respected them as making their “money by supplying a public demand”, in the words of one Alphonse Capone, whose public relations machine kept him in the public eye.

As the absurdity of the almost universal scorn and disobedience of Prohibition grew (at least among the urban chattering classes, which increasingly dominated journalism and politics at the time), opinion turned toward ways to undo its increasingly evident pernicious consequences. Many focussed upon amending the Volstead Act to exempt beer and light wines from the definition of “intoxicating liquors”—this would open a safety valve, and at least allow recovery of the devastated legal winemaking and brewing industries. The difficulty of actually repealing the Eighteenth Amendment deterred many of the most ardent supporters of that goal. As late as September 1930, Senator Morris Sheppard, who drafted the Eighteenth Amendment, said “There is a much chance of repealing the Eighteenth Amendment as there is for a hummingbird to fly to the planet Mars with the Washington Monument tied to its tail.”

But when people have had enough (I mean, of intrusive government, not illicit elixir), it's amazing what they can motivate a hummingbird to do! Less than two years later, the Twenty-first Amendment, repealing Prohibition, was passed by the Congress, and on December 5th, 1933, it was ratified by the 36th state (appropriately, but astonishingly, Utah), thus putting an end to what had not only become generally seen as a farce, but also a direct cause of sanguinary lawlessness and scorn for the rule of law. The cause of repeal was greatly aided not only by the thirst of the populace, but also by the thirst of their government for revenue, which had collapsed due to plunging income tax receipts as the Great Depression deepened, along with falling tariff income as international trade contracted. Reinstating liquor excise taxes and collecting corporate income tax from brewers, winemakers, and distillers could help ameliorate the deficits from New Deal spending programs.

In many ways, the adoption and repeal of Prohibition represented a phase transition in the relationship between the federal government and its citizens. In its adoption, they voted, by the most difficult of constitutional standards, to enable direct enforcement of individual behaviour by the national government, complete with its own police force independent of state and local control. But at least they acknowledged that this breathtaking change could only be accomplished by a direct revision of the fundamental law of the republic, and that reversing it would require the same—a constitutional amendment, duly proposed and ratified. In the years that followed, the federal government used its power to tax (many partisans of Repeal expected the Sixteenth Amendment to also be repealed but, alas, this was not to be) to promote and deter all kinds of behaviour through tax incentives and charges, and before long the federal government was simply enacting legislation which directly criminalised individual behaviour without a moment's thought about its constitutionality, and those who challenged it were soon considered nutcases.

As the United States increasingly comes to resemble a continental scale theatre of the absurd, there may be a lesson to be learnt from the final days of Prohibition. When something is unsustainable, it won't be sustained. It's almost impossible to predict when the breaking point will come—recall the hummingbird with the Washington Monument in tow—but when things snap, it doesn't take long for the unimaginable new to supplant the supposedly secure status quo. Think about this when you contemplate issues such as immigration, the Euro, welfare state spending, bailouts of failed financial institutions and governments, and the multitude of big and little prohibitions and intrusions into personal liberty of the pervasive nanny state—and root for the hummingbird.

In the Kindle edition, all of the photographic illustrations are collected at the very end of the book, after the index—don't overlook them.

Posted at 00:58 Permalink

Saturday, June 12, 2010

Recipes: Fourmilab Can't Fail Meatloaf

Ingredient Quantity
Lean ground beef 700 g
Ground pork 350 g
Chopped onion 1 cup
Eggs 2
Bread crumbs 1/2 cup
Worcestershire sauce 2 Tbsp
Oregano (dried) 2 tsp
Salt 1 1/2 tsp

Preheat the oven to 175°C in circulating air mode if available. Place the cracked eggs, oregano, salt, and Worcestershire sauce in a bowl and blend until well mixed. Put the ground beef, pork, chopped onion, bread crumbs, and mixed egg and spices glop into a large bowl and mix well—it should be a uniform goop when you're done. If you don't have stale bread for bread crumbs, crushed non-flavoured crackers work just as well.

Then mold into an aluminium baking pan and place in the preheated oven. If the pan is over-full, it may bubble over, so if you're worried, place a baking tin beneath the pan. Let it bake for 90 minutes; if you prefer going by core temperature, look for 72°C in the middle of the meatloaf.

Take it out and let it cool. If you indulge immediately, slices are prone to disintegrate as you remove them from the pan and presentation on the plate will be unaesthetic. If you let it cool a bit, you'll usually avoid this problem.

Fourmilab does not endorse glazing the top of meatloaf with catsup. This just carbonises that tasty condiment, which is best applied to the sliced delectation on the plate. Or, better still, mix the catsup with a bit of sriracha sauce to give it a little more kick.

This recipe makes about four servings. It's great as leftovers either cold or reheated, either straight-up or in a sandwich.

Posted at 17:39 Permalink