Minor Thoughts from me to you

Quotation of the Day…

Quotation of the Day… →

I love this. From Don Boudreaux.

… is from page 162 of Tom Bethell’s 1998 volume, The Noblest Triumph (original emphasis):

The great blessing of private property, then, is that people can benefit from their own industry and insulate themselves from the negative effects of others’ actions. It is like a set of invisible mirrors that surround individuals, households or firms, reflecting back on them the consequences of their acts. The industrious will reap the benefits of their industry, the frugal the consequences of their frugality; the improvident and the profligate likewise. They receive their due, which is to say they experience justice as a matter of routine. Private property institutionalizes justice.

Key task force not convened during Benghazi consulate attack

Key task force not convened during Benghazi consulate attack →

It's crystal clear to me that President Obama is definitely the right man to lead our national security apparatus. #sarcasm

CBS News has learned that during the Sept. 11 attack on the U.S. Mission in Benghazi, the Obama Administration did not convene its top interagency counterterrorism resource: the Counterterrorism Security Group, (CSG).

"The CSG is the one group that's supposed to know what resources every agency has. They know of multiple options and have the ability to coordinate counterterrorism assets across all the agencies," a high-ranking government official told CBS News. "They were not allowed to do their job. They were not called upon."

Information shared with CBS News from top counterterrorism sources in the government and military reveal keen frustration over the U.S. response on Sept. 11, the night ambassador Chris Stevens and 3 other Americans were killed in a coordinated attack on the U.S. consulate in Libya.

... Absent coordination from Counterterrorism Security Group, a senior US counterterrorism official says the response to the crisis became more confused. The official says the FBI received a call during the attack representing Secretary of State Hillary Clinton and requesting agents be deployed. But he and his colleagues agreed the agents "would not make any difference without security and other enablers to get them in the country and synch their efforts with military and diplomatic efforts to maximize their success."

Another senior counter terrorism official says a hostage rescue team was alternately asked to get ready and then stand down throughout the night, as officials seemed unable to make up their minds.

... The Administration also didn't call on the only interagency, on-call, short notice team poised to respond to terrorist incidents worldwide: the Foreign Emergency Support Team (FEST). FEST's seasoned experts leave within four hours of notification and can provide "the fastest assistance possible."

FEST Teams deployed immediately after al Qaeda bombings of US embassies in East Africa in 1998, and the USS Cole in 2000, but were not used for Benghazi, to the chagrin of some insiders. It's likely that the CSG task force, if contacted, would have recommended FEST aid.

"First a tactical response was needed," says a senior U.S. counterterrorism official, "and while that was being implemented, the holistic response could have been developed and deployed within hours" which could have allowed the FBI investigate safely on site well ahead of the "24 days it took."

New Details on Benghazi

New Details on Benghazi →

On the night of the 9/11 anniversary assault at the U.S. diplomatic mission in Benghazi, the Americans defending the compound and a nearby CIA annex were severely outmanned. Nonetheless, the State Department never requested military backup that evening, two senior U.S. officials familiar with the details of military planning tell The Daily Beast.

In its seventh week, discussion about what happened in Benghazi has begun to focus on why military teams in the region did not respond to the assault on the U.S. mission and the nearby CIA annex. The only security backup that did arrive that evening were former special-operations soldiers under the command of the CIA—one from the nearby annex and another Quick Reaction Force from Tripoli. On Friday, Fox News reported that requests from CIA officers for air support on the evening of the attacks were rejected. (The Daily Beast was not able to confirm that those requests were made, though no U.S. official contacted for this story directly refuted the claim either.)

... But military backup may have made a difference at around five the following morning, when a second wave of attackers assaulted the CIA annex where embassy personnel had taken refuge. It was during this second wave of attacks that two ex-SEALs working for the CIA’s security teams—Glenn Doherty and Tyrone Woods—were killed in a mortar strike.

Normally it would be the job of the U.S. ambassador on location to request a military response. But Stevens likely died in the first two hours of the attack. The responsibility for requesting military backup would then have fallen to the deputy chief of mission at Benghazi or officials at the State Department in Washington.

“The State Department is responsible for assessing security at its diplomatic installations and for requesting support from other government agencies if they need it,” a senior U.S. Defense official said. “There was no request from the Department of State to intervene militarily on the night of the attack.”

The president, however, would have the final say as to whether or not to send in the military.

'Troubling' Surveillance Before Benghazi Attack

'Troubling' Surveillance Before Benghazi Attack →

More evidence of crappy security in Benghazi.

More than six weeks after the shocking assault on the U.S. consulate in Benghazi -- and nearly a month after an FBI team arrived to collect evidence about the attack - the battle-scarred, fire-damaged compound where Ambassador Chris Stevens and another Foreign Service officer lost their lives on Sept. 11 still holds sensitive documents and other relics of that traumatic final day, including drafts of two letters worrying that the compound was under "troubling" surveillance and complaining that the Libyan government failed to fulfill requests for additional security.

When we visited on Oct. 26 to prepare a story for Dubai based Al Aan TV, we found not only Stevens's personal copy of the Aug. 6 New Yorker, lying on remnants of the bed in the safe room where Stevens spent his final hours, but several ash-strewn documents beneath rubble in the looted Tactical Operations Center, one of the four main buildings of the partially destroyed compound. Some of the documents -- such as an email from Stevens to his political officer in Benghazi and a flight itinerary sent to Sean Smith, a U.S. diplomat slain in the attack -- are clearly marked as State Department correspondence. Others are unsigned printouts of messages to local and national Libyan authorities. The two unsigned draft letters are both dated Sept. 11 and express strong fears about the security situation at the compound on what would turn out to be a tragic day. They also indicate that Stevens and his team had officially requested additional security at the Benghazi compound for his visit -- and that they apparently did not feel it was being provided.

One letter, written on Sept. 11 and addressed to Mohamed Obeidi, the head of the Libyan Ministry of Foreign Affairs' office in Benghazi, reads:

"Finally, early this morning at 0643, September 11, 2012, one of our diligent guards made a troubling report. Near our main gate, a member of the police force was seen in the upper level of a building across from our compound. It is reported that this person was photographing the inside of the U.S. special mission and furthermore that this person was part of the police unit sent to protect the mission. The police car stationed where this event occurred was number 322."

The account accords with a message written by Smith, the IT officer who was killed in the assault, on a gaming forum on Sept. 11. "Assuming we don't die tonight. We saw one of our ‘police' that guard the compound taking pictures," he wrote hours before the assault.

... It is not clear whether the U.S. letters were ever sent, and if so, what action was taken before the assault on the evening of Sept. 11. But they speak to a dangerous and uncertain security environment in Benghazi that clearly had many State Department officials worried for their safety.

Fox News Finds Benghazi Smoking Gun, Raises Serious Questions

Fox News Finds Benghazi Smoking Gun, Raises Serious Questions →

James Carafano builds off of Fox New's recent report and asks five good questions.

The cable concluded that the consulate could not withstand a “coordinated attack.” Further, the cable identified terrorist groups that were operating in the area. The existence of this document raises some serious questions.

  1. Why was the cable kept secret for so long?

  2. How could anyone rule out a terrorist attack? In the days following the attack, some senior Administration officials insisted the assault on the embassy was a spontaneous act. This assessment, they claim, was based on the view of the intelligence community. How could intelligence agencies not have access to this cable? If they did, how could they rule out the possibility of a terrorist attack? It just doesn’t add up.

  3. Why didn’t the Administration provide any interim findings of their investigation into the Benghazi attack?

  4. Why wasn’t a coordinated rapid response force ready to go? Given this assessment, it is difficult to understand why an appropriate response force for exactly the kind of attack that happened wasn’t ready to launch at a moment’s notice—and if there was such a capability, why it wasn’t used.

  5. How long do we have to wait to get answers to obvious questions? Nothing the Administration has said to date adequately addresses the issues raised by this cable. The Administration has had more than a month to reflect on this evidence. They ought to be able to comment on it and explain how it squares with what Administration officials have said in the last weeks—and they ought to be able to do it right now.

Classified cable warned consulate couldn't withstand 'coordinated attack'

Classified cable warned consulate couldn't withstand 'coordinated attack' →

The U.S. Mission in Benghazi convened an “emergency meeting” less than a month before the assault that killed Ambassador Chris Stevens and three other Americans, because Al Qaeda had training camps in Benghazi and the consulate could not defend against a “coordinated attack,” according to a classified cable reviewed by Fox News.

Summarizing an Aug. 15 emergency meeting convened by the U.S. Mission in Benghazi, the Aug. 16 cable marked “SECRET” said that the State Department’s senior security officer, also known as the RSO, did not believe the consulate could be protected. “RSO (Regional Security Officer) expressed concerns with the ability to defend Post in the event of a coordinated attack due to limited manpower, security measures, weapons capabilities, host nation support, and the overall size of the compound,” the cable said.

According to a review of the cable addressed to the Office of the Secretary of State Hillary Clinton, the Emergency Action Committee was also briefed "on the location of approximately ten Islamist militias and AQ training camps within Benghazi … these groups ran the spectrum from Islamist militias, such as the QRF Brigade and Ansar al-Sharia, to ‘Takfirist thugs.’” Each U.S. mission has a so-called Emergency Action Committee that is responsible for security measures and emergency planning.

The details in the cable seemed to foreshadow the deadly Sept. 11 attack on the U.S. compound, which was a coordinated, commando-style assault using direct and indirect fire. Al Qaeda in North Africa and Ansar al-Sharia, both mentioned in the cable, have since been implicated in the consulate attack.

In addition to describing the security situation in Benghazi as “trending negatively,” the cable said explicitly that the mission would ask for more help. “In light of the uncertain security environment, US Mission Benghazi will submit specific requests to US Embassy Tripoli for additional physical security upgrades and staffing needs by separate cover.”

They never received that extra security.

CIA operators were denied request for help during Benghazi attack

CIA operators were denied request for help during Benghazi attack →

Fox News has learned from sources who were on the ground in Benghazi that an urgent request from the CIA annex for military back-up during the attack on the U.S. consulate and subsequent attack several hours later on the annex itself was denied by the CIA chain of command -- who also told the CIA operators twice to "stand down" rather than help the ambassador's team when shots were heard at approximately 9:40 p.m. in Benghazi on Sept. 11.

... they called again for military support and help because they were taking fire at the CIA safe house, or annex. The request was denied. There were no communications problems at the annex, according those present at the compound. The team was in constant radio contact with their headquarters. In fact, at least one member of the team was on the roof of the annex manning a heavy machine gun when mortars were fired at the CIA compound. The security officer had a laser on the target that was firing and repeatedly requested back-up support from a Spectre gunship, which is commonly used by U.S. Special Operations forces to provide support to Special Operations teams on the ground involved in intense firefights.

CIA spokeswoman Jennifer Youngblood, though, denied the claims that requests for support were turned down.

"We can say with confidence that the Agency reacted quickly to aid our colleagues during that terrible evening in Benghazi," she said. "Moreover, no one at any level in the CIA told anybody not to help those in need; claims to the contrary are simply inaccurate.

Hhhm. If no one "in the CIA" told anybody not to help those in need, who did? I notice that Ms. Youngblood didn't say that there was no order to stand down. Merely that the CIA didn't give the order.

The Three Benghazi Timelines We Need Answers About

The Three Benghazi Timelines We Need Answers About →

James Rosen, writing in the Wall Street Journal.

Any coverup is attended by competing timelines: the acts of transgression, and the subsequent efforts to conceal or mislead or delay knowledge regarding those events. A famous theme of the Watergate hearings was the quest of investigators into the coverup to find out, as the saying became, what did they know and when did they know it?

The Benghazi episode is best viewed as a series of three timelines. When fully exposed, the facts of the "pre" period before the attacks will tell us how high up the chain, and in which agencies, fateful decisions were made about security precautions for the consulate and annex in Benghazi. We also stand to learn how the planning for the attacks could have been put in motion without being detected until too late.

Assistant Secretary of State Charlene Lamb, who oversees diplomatic security, testified before the House on Oct. 10 that she and her colleagues had placed "the correct number of assets in Benghazi at the time of 9/11 for what had been agreed upon." While not the stuff of a perjury charge, this testimony cannot be true, given the known outcome of the Sept. 11 attack on the consulate and the pleas for enhanced security measures that we now know Foggy Bottom to have rebuffed.

The second Benghazi timeline encompasses the five or six hours on the evening of Sept. 11 when the attacks transpired. A State Department briefing on Oct. 9 offered an account that was riveting but incomplete. When all of the facts of these hours are compiled, we will have a truer picture of the tactical capabilities of al Qaeda and its affiliates in North Africa. We will also learn what really happened to Amb. Stevens that night, and better appreciate the vulnerabilities with which our diplomatic corps, bravely serving at 275 installations across the globe, must still contend.

The third and final Benghazi timeline is the one that has fostered charges of a coverup. It stretches eight days—from 3:40 p.m. on Sept. 11, when the consulate was first rocked by gunfire and explosions, through the morning of Sept. 19, when Matthew G. Olsen, director of the National Counterterrorism Center, publicly testified before the Senate that Benghazi was a terrorist attack.

Mr. Olsen's testimony effectively ended all debate about whether the attacks had grown out of a protest over an anti-Islam video. Three days before Mr. Olsen put a stop to the blame-YouTube storyline, U.N. Amb. Susan Rice, echoing Mr. Carney, had gone on five Sunday TV chat shows and maintained that the YouTube video has spurred the violence.

If the Obama White House has engaged in a coverup in the Benghazi case, the ostensible motivation would bear some similarity to that of all the president's men in Watergate. Mr. Obama faces a rendezvous with the voters on Nov. 6, and in a race much tighter than the Nixon-McGovern contest of 1972. In such a circumstance, certain kinds of disclosure are always unwelcome.

As with the Watergate conspirators, who were eager to conceal earlier actions that related to the Vietnam War, the Obama team is determined to portray its pre-9/11 conduct, and particularly its dovish Mideast policies, in the most favorable light. After all, no one wants to have on his hands—even if resulting from sins of omission and not commission—the deaths of four American patriots.

Who knew the truth about the attack? When? And who decided to try to obfuscate the fact that it was a terrorist attack?

What's the big deal about Benghazi, anyway?

What's the big deal about Benghazi, anyway? →

Come on, you guys. It’s only an American ambassador and three other Americans who served their country, murdered by Islamic terrorists on the anniversary of 9/11. In a country our president invaded unilaterally and, arguably, illegally.

And our government only ignored the copious warnings of an impending terrorist attack on the consulate in Benghazi, and actually reduced security there, despite the since-murdered ambassador’s entreaties.

And our president has only been lying about it for over a month because it reflects very badly on his self-evidently disastrous foreign policy.

It’s not like it was a hotel break-in.

Ouch.

Who's Responsible for Benghazi?

Three weeks ago, I was predicting that Mr. Obama and Mrs. Clinton would fight to the death, trying to pin Benghazi on each other. For instance, What Happened In Benghazi

The State Department has released a transcript of a briefing that two high-ranking department officials gave to a number of reporters via conference call on October 9 (Tuesday). I am not certain about this, but I believe the transcript was only made public today. You should read it in its entirety; it is the most detailed description I have seen of the events in Benghazi on September 11.

While this is by no means clear, it appears that the State Department may have released the transcript as part of the escalating conflict between Barack Obama and Joe Biden and the Secretary of State, Hillary Clinton. In their desperation to avoid responsibility for the Benghazi debacle, Obama and Biden have pointed fingers in two directions: at the intelligence community for reporting incorrectly that the incident was a protest over a YouTube video clip, and at the State Department for not providing adequate security for the Ambassador.

But then, Mrs. Clinton took responsibility for the event.

Clinton: I’m responsible for diplomats’ security – CNN Security Clearance - CNN.com Blogs

"I take responsibility" for the protection of U.S. diplomats, Clinton said during a visit to Peru. But she said an investigation now under way will ultimately determine what happened in the attack that left four Americans dead.

Clinton said President Barack Obama and Vice President Joe Biden are not involved in security decisions.

"I want to avoid some kind of political gotcha," she added, noting that it is close to the election.

After thinking about it for a few hours, I saw one possible motivation for this: make the the President look bad by showing up his attempts to duck responsibility. It's possible that the President agreed.

Obama Camp: On Libya, President ‘Takes Absolute Responsibility’

Yesterday, Hillary Clinton said, “I take responsibility” in reference to the Benghazi attacks. But in an interview today, Obama campaign spokesperson Jen Psaki stressed President Obama accepted responsibility.

“President Obama takes responsibility for the safety and security of all diplomats serving overseas,” Psaki told Fox News Channel’s Studio B with Shepard Smith. “Secretary Clinton, of course, has a great amount of responsibility as Secretary of State and she was doing interviews yesterday as she often does on the first day of a foreign trip and said look we do own, the State Department does own decisions around funding for diplomats.”

But there's something else to notice: Mrs. Clinton took responsibility for the safety of the diplomats. She didn't say anything at all about the ensuing "it was the video!" cover-up attempt. She's more than happy to let the President explain that one himself. What's more damaging, when it comes to politics: the lapse or the cover-up? Mrs. Clinton may be betting that it's the cover-up.

U.S. description of Benghazi attacks, at first cautious, changed after 3 days

U.S. description of Benghazi attacks, at first cautious, changed after 3 days →

McClatchy analyzed all of the government's statements following the Libya attack. They have some interesting findings. It looks like someone realized that an attack in Libya might cast doubt on President Obama's foreign policy and decided to try to deflect attention from that policy.

In the first 48 hours after the deadly Sept. 11 attacks on U.S. diplomatic outposts in Libya, senior Obama administration officials strongly alluded to a terrorist assault and repeatedly declined to link it to an anti-Muslim video that drew protests elsewhere in the region, transcripts of briefings show.

The administration’s initial accounts, however, changed dramatically in the following days, according to a review of briefing transcripts and administration statements, with a new narrative emerging Sept. 16 when U.S. ambassador to the United Nations Susan Rice asserted in a series of TV appearances that the best information available indicated that the attack had spun off from a protest over the video.

... The story, however, began to change the next day, Sept. 14.

With images of besieged U.S. missions in the Middle East still leading the evening news, White House Press Secretary Jay Carney became the first official to back away from the earlier declaration that the Benghazi assault was a “complex attack” by extremists. Instead, Carney told reporters, authorities “have no information to suggest that it was a preplanned attack.” He added that there was no reason to think that the Benghazi attack wasn’t related to the video, given that the clip had sparked protests in many Muslim cities.

“The unrest that we’ve seen around the region has been in reaction to a video that Muslims, many Muslims, find offensive,” Carney said.

When pressed by reporters who pointed out evidence that the violence in Benghazi was preplanned, Carney said that “news reports” had speculated about the motive. He noted again that “the unrest around the region has been in response to this video.”

Carney then launched into remarks that read like talking points in defense of the U.S. decision to intervene in last year’s uprising against Libyan leader Moammar Gadhafi: that post-Gadhafi Libya, he said, is “one of the more pro-American countries in the region,” that it’s led by a new government “that has just come out of a revolution,” and that the lack of security capabilities there “is not necessarily reflective of anything except for the remarkable transformation that’s been going on in the region.”

Are We Arming Syrian Jihadists?

Two recent articles illustrate the dangers in getting involved in the Middle East—especially the dangers of using intermediaries to do the dirty work.

Jihadists Receiving Most Arms Sent to Syrian Rebels - NYTimes.com

Most of the arms shipped at the behest of Saudi Arabia and Qatar to supply Syrian rebel groups fighting the government of Bashar al-Assad are going to hard-line Islamic jihadists, and not the more secular opposition groups that the West wants to bolster, according to American officials and Middle Eastern diplomats.

That conclusion, of which President Obama and other senior officials are aware from classified assessments of the Syrian conflict that has now claimed more than 25,000 lives, casts into doubt whether the White House’s strategy of minimal and indirect intervention in the Syrian conflict is accomplishing its intended purpose of helping a democratic-minded opposition topple an oppressive government, or is instead sowing the seeds of future insurgencies hostile to the United States.

“The opposition groups that are receiving the most of the lethal aid are exactly the ones we don’t want to have it,” said one American official familiar with the outlines of those findings, commenting on an operation that in American eyes has increasingly gone awry.

The United States is not sending arms directly to the Syrian opposition. Instead, it is providing intelligence and other support for shipments of secondhand light weapons like rifles and grenades into Syria, mainly orchestrated from Saudi Arabia and Qatar. The reports indicate that the shipments organized from Qatar, in particular, are largely going to hard-line Islamists.

Syrian Rebels Get Missiles - WSJ.com

Some Syrian rebel factions have obtained advanced portable antiaircraft weapons, according to rebels and regional officials, a development that could alter the Syrian war's trajectory and fan U.S. concerns that such weapons could end up in the hands of anti-Western Islamist militias.

Video footage uploaded to the Internet earlier this week appears to show rebels in Aleppo using weapons that military experts and rebels say are heat-seeking, shoulder-fired missiles, the first documented instance in the conflict. Versions of the weapons—also known as man-portable air defense systems, or Manpads—have been smuggled into the country over the past two months through Turkey and to a lesser extent Lebanon, according to Syrian rebels and those who supply them arms through an "operations room" coordinated by regional governments.

"Northern Syria is awash with advanced antitank and antiaircraft weapons. The situation has changed very quickly," a Syrian involved in coordinating weapons procurement with regional states said. The Manpad transfers weren't sanctioned by the regional states that have armed and financed Syria's rebels since early this year, he added.

The rebels in Aleppo who are depicted in the footage uploaded to the Internet this week are identified as members of the al-Salam and Hamza battalions, two of the relatively unknown divisions in a mushrooming insurgency. Rebels with the two largest fighting factions in Aleppo couldn't identify the battalions in the videos, though they confirmed that Manpads acquired over the past two weeks had made their way into the city.

I hope that the “unknown battalions” with the ManPADS aren’t jihadists. Because that would really, really stink. It would also call into question this entire foreign policy strategy of “leading from the rear” and being the arsenal of democracy to the people that we hope are actually democratic.

Cuba Almost Became a Nuclear Power in 1962

Cuba Almost Became a Nuclear Power in 1962 →

This is a fascinating piece of history, from Svetlana Savranskaya.

Long after the world thought the Cuban Missile Crisis had ended, with Soviet leader Nikita Khrushchev's withdrawal of his medium-range nuclear missiles announced on October 28 -- and two days after President John F. Kennedy announced the lifting of the quarantine around Cuba -- the secret crisis still simmered. Unknown to the Americans, the Soviets had brought some 100 tactical nuclear weapons to Cuba -- 80 nuclear-armed front cruise missiles (FKRs), 12 nuclear warheads for dual-use Luna short-range rockets, and 6 nuclear bombs for IL-28 bombers. Even with the pullout of the strategic missiles, the tacticals would stay, and Soviet documentation reveals the intention of training the Cubans to use them.

Moving Beyond Free-Market Minimalism

Moving Beyond Free-Market Minimalism →

The Foundation for Economic Education has an informative article out, regarding what's necessary for a "free market" to function. After I read it, I realized that it explains what I couldn't, regarding how and why markets and competition work.

In a free market, “Scrooge-like behavior” is certainly permissible as long as it doesn’t initiate violence or fraud. But where do the high quality, low price, and innovation we associate with the free market come from? Well, as most economists will tell you, much of it comes from the fear of competition. If you cut corners and charge consistently high prices, even though you may be within your rights to do so, many free-market advocates would rightly point out that free entry and hungry entrepreneurs will tend to keep you in line. That’s important, but it’s not the whole story; not by a long shot.

Honesty and fair play, trust and reciprocity, are principles that FEE has always upheld as crucial parts of the “foundation of economics.” They go far beyond the indispensable but bare minimum of private ownership of property, free trade, and individual self-seeking—or what one might call “free-market minimalism.”

... A chapter called “Murder, Reciprocity, and Trust” in Paul Seabright’s excellent book The Company of Strangers, proposes that we divide society into “calculators” and “reciprocators.” A pure calculator is the economic-man caricature who is ready to act opportunistically (with guile) at any moment. A reciprocator is someone who is going to repay what is done to her, good or bad, no matter what. If someone cheats a reciprocator, she’ll go to the ends of the earth to make him pay; if someone does her a favor, she’s going to return it, even at great inconvenience to herself. A reciprocator keeps her promises.

Seabright argues that even pure calculators would have to pretend to be reciprocators at least sometimes lest everyone, including other pure calculators, shun her. It’s people with a norm of reciprocity, an internalized rule to give tit-for-tat even when you don’t have to, who are critical to the free market.

Note also, however, that if B reciprocates and repays A, A must have first trusted that B would indeed repay her. Trust means here that A is willing to make herself vulnerable to B’s opportunistically not keeping his promise. Trust is the flip side of reciprocity.

But if A is too trusting, calculators will take advantage of her, which gives A an incentive to be a calculator at least part of the time. That’s why Seabright argues that in the real world people have an incentive to find the right balance between opportunism and trust/reciprocity.

... The free market is a great engine of discovery and development because the people in it have the opportunity and the willingness to take chances. Bringing many strangers together who have diverse knowledge, skills, and tastes—which we find markets doing around the world—presents the opportunity. Being willing to trust people we don’t know—new employers, suppliers, coworkers, customers, neighbors, and friends—enables us to take advantage of those opportunities.

Of course, sometimes trusting someone who turns out to be untrustworthy hurts us. But even those unpleasant experiences teach us something: we learn the circumstances under which people are trustworthy or not. That’s valuable knowledge we would never have learned if we were unwilling to trust in the first place.

If we are unwilling to trust when the opportunity arises, if we are mere economizing calculators, we shouldn’t expect the free market nor any other system to develop the complex division of knowledge and labor necessary to achieve real prosperity. The greatness of the free market, however, is that, more than any other system that we know, it enables us to learn and to grow, even as it allows us to flourish.

Paleo Diet Lawsuit Dismissed By Court in Blow to Free Expression

Paleo Diet Lawsuit Dismissed By Court in Blow to Free Expression →

Does your free speech extend to sharing your opinion or can state licensing boards tell you to shut up? A federal court decided not to even think about it.

A state licensing board in North Carolina tried to suppress a blogger who talked up and advised people on the health benefits of the "paleo" diet (that is, eating as we think cavement ate, no grains or processed foods), telling him directly what he could or could not say about his belief that the high-meat, low-carb diet helped him with his diabetes. The case was dismissed by a federal court late last week.

US may soon become world's top oil producer

US may soon become world's top oil producer →

This is exciting news.

U.S. oil output is surging so fast that the United States could soon overtake Saudi Arabia as the world's biggest producer.

Driven by high prices and new drilling methods, U.S. production of crude and other liquid hydrocarbons is on track to rise 7 percent this year to an average of 10.9 million barrels per day. This will be the fourth straight year of crude increases and the biggest single-year gain since 1951.

The boom has surprised even the experts.

"Five years ago, if I or anyone had predicted today's production growth, people would have thought we were crazy," says Jim Burkhard, head of oil markets research at IHS CERA, an energy consulting firm.

The Energy Department forecasts that U.S. production of crude and other liquid hydrocarbons, which includes biofuels, will average 11.4 million barrels per day next year. That would be a record for the U.S. and just below Saudi Arabia's output of 11.6 million barrels. Citibank forecasts U.S. production could reach 13 million to 15 million barrels per day by 2020, helping to make North America "the new Middle East."

Coal-Eating Microbes Might Create Vast Amounts of Natural Gas

Coal-Eating Microbes Might Create Vast Amounts of Natural Gas →

More exciting news on the energy front.

Fracking technology has already made it practical to exploit previously inaccessible natural gas and oil in the United States (see "Natural Gas Changes the Energy Map"). Now several companies are demonstrating a way to use microörganisms that eat coal and excrete methane—the main ingredient in natural gas—as a possible means of extracting fuel from coal resources that had been too expensive to mine.

Many coal beds contain large amounts of methane that can be harvested by drilling wells. In recent decades, researchers have demonstrated that a large fraction of the natural gas found in the coal beds is produced by naturally occurring microörganisms that feed on coal, and they have found ways to stimulate the microbes to produce more methane. Luca Technologies, based in Golden, Colorado, is using this approach to increase production from coal beds with existing methane wells. Another company, Next Fuel, based in Sheridan, Wyoming, recently showed that it could use similar technology to produce methane from coal beds that didn't already have methane in them, raising the possibility that vast amounts of coal that's currently too expensive to mine could be converted into natural gas.

Though the idea of microbial production is not new, says Julio Friedmann, chief energy technologist at the Lawrence Livermore National Laboratory, the technology has taken great strides in recent years, in large part because researchers know more about the different microörganisms that work together to digest coal and produce methane. "I know a handful of companies working on those technologies that seem to have pretty good recovery of natural gas at pretty good cost," he says. That, he adds, creates a potentially significant market opportunity, and "I wouldn't have guessed that a couple of years ago."

It's incredible to think that we could turn America's coal reserves into natural gas reserves. Between natural gas and oil, America could become a major exporter of energy. Given how clean natural gas is, especially compared to coal, we could reduce our greenhouse gas emissions without needing to reduce our energy consumption.

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The driverless road ahead

The driverless road ahead →

From The Economist. I love this kind of potential for revolutionary change.

Now another revolution on wheels is on the horizon: the driverless car. Nobody is sure when it will arrive. Google, which is testing a fleet of autonomous cars, thinks in maybe a decade, others reckon longer. A report from KPMG and the Centre for Automotive Research in Michigan concludes that it will come “sooner than you think”. And, when it does, the self-driving car, like the ordinary kind, could bring profound change.

All these trends will affect the car business. But when mass-produced cars appeared, they had an impact on the whole of society. What might be the equivalent social implications of driverless cars? And who might go the same way as the buggy-whip makers? Electronics and software firms will be among the winners: besides providing all the sensors and computing power that self-driving cars will need, they will enjoy strong demand for in-car entertainment systems, since cars’ occupants will no longer need to keep their eyes on the road. Bus companies might run convoys of self-piloting coaches down the motorways, providing competition for intercity railways. Travelling salesmen might prefer to journey from city to city overnight in driverless Winnebagos packed with creature comforts. So, indeed, might some tourists. If so, they will need fewer hotel rooms.

Cabbies, lorry drivers and all others whose job is to steer a vehicle will have to find other work. The taxi and car-rental businesses might merge into one automated pick-up and drop-off service: GM has already shown a prototype of a two-seater, battery-powered pod that would scuttle about town, with passengers summoning it by smartphone. Supermarkets, department stores and shopping centres might provide these free, to attract customers. Driverless cars will be programmed to obey the law, which means, sadly, the demise of the traffic cop and the parking warden. And since automated cars will reduce the need for parking spaces in town, that will mean less revenue for local authorities and car-park operators.

When people are no longer in control of their cars they will not need driver insurance—so goodbye to motor insurers and brokers. Traffic accidents now cause about 2m hospital visits a year in America alone, so autonomous vehicles will mean much less work for emergency rooms and orthopaedic wards. Roads will need fewer signs, signals, guard rails and other features designed for the human driver; their makers will lose business too. When commuters can work, rest or play while the car steers itself, longer commutes will become more bearable, the suburbs will spread even farther and house prices in the sticks will rise. When self-driving cars can ferry children to and from school, more mothers may be freed to re-enter the workforce. The popularity of the country pub, which has been undermined by strict drink-driving laws, may be revived. And so on.

This entry was tagged. Cars Innovation

Starvation hormone markedly extends mouse life span, without need for calorie restriction

Starvation hormone markedly extends mouse life span, without need for calorie restriction →

A study by UT Southwestern Medical Center researchers finds that a starvation hormone markedly extends life span in mice without the need for calorie restriction.

"Restricting food intake has been shown to extend lifespan in several different kinds of animals. In our study, we found transgenic mice that produced more of the hormone fibroblast growth factor-21 (FGF21) got the benefits of dieting without having to limit their food intake. Male mice that overproduced the hormone had about a 30 percent increase in average life span and female mice had about a 40 percent increase in average life span," said senior author Dr. Steven Kliewer, professor of molecular biology and pharmacology.

... FGF21 seems to provide its health benefits by increasing insulin sensitivity and blocking the growth hormone/insulin-like growth factor-1 signaling pathway. When too abundant, growth hormone can contribute to insulin resistance, cancer, and other diseases, the researchers said.

FGF21 is a hormone secreted by the liver during fasting that helps the body adapt to starvation. It is one of three growth factors that are considered atypical because they behave like hormones, which are substances created by one part of the body that have effects in other parts, the researchers said.

"Prolonged overproduction of the hormone FGF21 causes mice to live extraordinary long lives without requiring a decrease in food intake. It mimics the health benefits of dieting without having to diet," said co-author Dr. David Mangelsdorf, chairman of pharmacology and a Howard Hughes Medical Institute (HHMI) investigator at UT Southwestern.

There was a slight downside though.

FGF21 overproducers tended to be smaller than wild-type mice and the female mice were infertile. While FGF21 overproducers had significantly lower bone density than wild-type mice, the FGF21-abundant mice exhibited no ill effects from the reduced bone density and remained active into old age without any broken bones, the researchers said.

Here's hoping that this offers some insights for how to manage weight in humans. I'm happy to hear about skinny mice, but I'd be happier to have hope for making it easy for me to stay (become) skinny.

This entry was tagged. Food Weight

We Don't Need to Hire More Teachers (The School Staffing Surge)

We Don't Need to Hire More Teachers (The School Staffing Surge) →

The Friedman Foundation for Educational Choice points out that America's education struggles have nothing to do with not hiring enough teachers. Contra to President Obama and Mr. Romney, we do not need to hire more teachers.

Between fiscal year (FY) 1950 and FY 2009, the number of K-12 public school students in the United States increased by 96 percent while the number of full-time equivalent (FTE) school employees grew 386 percent. Public schools grew staffing at a rate four times faster than the increase in students over that time period. Of those personnel, teachers’ numbers increased 252 percent while administrators and other staff experienced growth of 702 percent, more than seven times the increase in students.

... Compared to other nations’ schools, U.S. public schools devote significantly higher fractions of their operating budgets to non-teaching personnel—and lower portions to teachers. Meanwhile, the U.S. is one of the highest spending nations in the Organisation for Economic Co-operation and Development (OECD) when it comes to K-12 education.

... There is no evidence in the aggregate that the increase in public school staffing caused student achievement to improve. In a shocking finding, economist and Nobel laureate James Heckman and his co-author, Paul LaFontaine, found that public high school graduation rates peaked around 1970. Thus, as staffing was rising dramatically in public schools, graduation rates were not.

In addition, scores on the National Assessment of Educational Progress (NAEP) Long-Term Trend exam for 17-year-old students in public schools have not increased during the time period studied. Between 1992 and 2008, public schools’ NAEP reading scores fell slightly while scores in mathematics were stagnant. After the sizeable increase in the teaching force and the dramatic upsurge in the hiring of non-teaching personnel, student achievement in American public schools has been roughly flat or modestly in decline.

As more adults gain employment in public schools, there is no evidence their numbers are leading to improved academic outcomes for students. And this increase in staffing has a significant opportunity cost. If non-teaching personnel had grown at the same rate as the growth in students and if the teaching force had grown “only” 1.5 times as fast as the growth in students, American public schools would have an additional $37.2 billion to spend per year. This $37.2 billion in annual recurring savings could be used:

  • to raise every public school teacher’s salary by more than $11,700 per year;
  • to more than double taxpayer funding for early childhood education;
  • to provide property tax relief;
  • to lessen fiscal stress on state and local governments;
  • to give families of each child in poverty more than $2,600 in cash per child;
  • to give each child in poverty a voucher worth more than $2,600 to attend the private school of his or her parents’ choice;
  • or to support a combination of the above or for some other worthy purpose.

Schools absolutely need to stop hiring so many administrators. The growth in administrators, compared to the growth in students, is obscene. And, we probably need to focus more on what our teachers are teaching and how they're teaching and stop pretending that the solution is always more teachers.

This entry was tagged. Spending