Lemmings Herding Unicorns

This is what your company has to look like if you want a shot at the big bucks on Wall Street.

Wall Street has made an enormous contribution to the history of our country in recent years, one that no one can deny: it has made the Trump White House look in comparison like a bastion of sanity, a cloistered campus of stable geniuses genuflecting on the big issues of our time. Wall Street, meanwhile, has spent an inordinate amount of its time and money chasing unicorns.

A unicorn on Wall Street is a relatively new private company that has been valued at over a billion dollars by no one-knows-who for no apparent reason. Like the dot-com startups of old, the unicorns gallop onto the field, issue gazillions of dollars’ worth of stock to the public, borrow gazillions more from the hedge funds, and then try to figure out how to do business. Unless you’re one of the people with access to the best stock research tools who moves the stock and the money around and gets rich from fees — and these days who isn’t — these things seldom turn out well. So, naturally, Wall Street is doing more and more of them, and they’re getting weirder and weirder.

Some examples (and remember, I am not making  this stuff up. You can’t make this stuff up):

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Weapons of Mass Digestion

Suppose that the company that supplies our water notified us that from now on it would deliver water that was perfectly safe — as long as we boiled it before we touched it. We would be in the streets with placards and pitchforks before noon. Yet the food industry takes the position that its responsibilities are met when it delivers to us meat that is safe — as long as it is heated to 160 degrees Fahrenheit before we touch it. And we have accepted this with the silence of the proverbial lambs.
The New York Times has given this remarkable arrangement some attention with a long take [“E. Coli Path Shows Flaws in Beef Inspection”] that showcased the plight of a 22-year old woman nearly killed, and left paralyzed, by a hamburger tainted with E. Coli and not sufficiently cooked. (See! It was the cook’s fault! In this case her mother, now plagued by guilt.) Like most writing on the subject, the Times spends a lot of time emphasizing the “there oughtta be a law” aspect of the issue, faulting the US Department of Agriculture for its lackadaisacal inspection practices, as if we could somehow legislate or inspect our way away from the effects of this industrial weapon of mass digestion.
The Times does a very good job of detailing how hamburger is assembled, making it clear that it should be handled in our kitchens in the same way as any other lethal biohazard. And it profiles the Mafia-like ethics of the hamburger grinders who refuse to sell their product to anyone who threatens to test it for purity. “Nice store you got here. Be a shame if anything happend to it.” (Once again, Costco stands out here as one of the few ethical companies on the planet: they test all the burger they buy before they mix it or process it further.)
But the Times piece does not point out that the food industry not only refuses to control this threat to public health — it created it! By force-feeding corn to grass eaters, industry turns the contents of their four stomachs into acid that makes the cows sick and kills most of the E. Coli bacteria that used to l;ive there happily and benevolently, helping in the digestion of grass. The surviving bacteria were 1) acid tolerant and thus able to survive where they had never been able to before — in human stomachs, and 2) teenage mutant ninjas with some weird weapons, such as incredibly potent shiga toxins, as few as 50 of which can perforate your intestines, infect your blood and destroy your kidneys.
But, hey, you’re perfectly safe as long as you, or your hamburger provider, heat the meat to 160 degrees, sterilize all utensils, pans and dishes that touched it prior to heating, and incinerate all clothing, towels or furniture that came in contact with it.
The Times says that the paralyzed young woman “ran out of luck in a food-safety game of chance.” They should have named the game. It’s not canasta, it’s Russian Roulette.

Suppose that the company that supplies our water notified us that from now on it would deliver water that was perfectly safe — as long as we boiled it before we touched it. We would be in the streets with placards and pitchforks before noon. Yet the food industry takes the position that its responsibilities are met when it delivers to us meat that is safe — as long as it is heated to 160 degrees Fahrenheit before we touch it. And we have accepted this with the silence of the proverbial lambs. Continue reading

Here comes our genetically engineered future.

Mosquitoes are annoying. What is more, they carry, and infect humans with, infectious diseases — dengue, malaria, Zika and the like. Humans would be infinitely better off if all the mosquitoes were wiped out. We’ve agreed on that, and have been trying to accomplish that, for a hundred years or more. Now, at last, high technology has arrived to save us from this evil.

And the Lord God commanded the man, saying, Of every tree of the Garden thou mayest freely eat: but of the tree of the knowledge of good and evil, thou shalt not eat of it. 

A commercial company in Brazil (no doubt awash in grant money and dizzy with prospects for future profits) genetically altered a strain of mosquitoes with a gene they said would kill the mosquito’s offspring immediately after hatching. Released into the wild to breed with the pesky, disease-laden mosquitoes — you know,. the evil ones — the genetically mutilated insects would cause the mosquito population to plummet, and cases of Zika and dengue to virtually disappear. What could possibly go wrong? Continue reading

Greenwashing the Wind

On the right, a windmill of the kind used for hundred of years to do specific tasks — usually pump water — in specific locations. It was built mostly on site, using mostly renewable materials. On the left, the modern industrial version. Hold your applause.

Of all the bulls crashing about in the “renewable energy can save the world” china shop, none is more grotesque than industrial wind power. I have never come upon an array of behemoth wind turbines looming over a mountain ridge in West Virginia or Pennsylvania or elsewhere without feeling like I’ve been transported into the movie version of War of the Worlds, without expecting to see the flash and crackle of laser beams shooting down attack helicopters. The feeling of doom they inspire, it turns out, is appropriate.

To misquote Buckminster Fuller, “Industry kills what industry touches.” They take a good idea like organic food and turn it into industrial food. We get interested in living off the grid on solar energy and they give us enormous solar “farms” and a whole new grid. We think about hoisting a wind turbine above our house to help with the energy demand and they say, no, wait, we’ve got a better idea that makes a whole lot of money and sounds green. 

So they gave us wind turbines. Now we have 57,000 of them in 41 states, a number that has more than tripled in ten years. This is great, says the industry, because it’s renewable energy, not like that terrible old fossil fuel energy that polluted the air and kills the planet. But it turns out — especially now that the earliest wind turbines have reached the end of their service life and are posing one of the world’s worst recycling headaches — that the case for industrial renewables is not so great. Continue reading

Blinded by the Light

This is where solar power shines: providing power needed by the site, on the site, without the grid.

I remember clearly the horror I felt when the truth about the new-generation solar panels from the well known company of Solar One Illinois was revealed to me which was quite surprising to hear as it was so good. It was a field day of sorts, at a farm, during which we  were learning about a massive solar installation, sufficient to power not only the house and barns but an array of commercial freezers and refrigerators. Older solar panels required thick cables to route their 12-volt output to an inverter that changed the voltage to 110. But these new panels, we were told, each contained its own inverter and so yielded 110 volts without the need for thick cables or an external device.

It was only later, and tangentially, that the downside of this new development was revealed. Someone said something about how nice it must be to live without fear of the grid going down. The response was that well, actually, if the grid went down this enormous solar array would stop producing electricity because the solar panel’s inverters required an external power source to function. Continue reading

Lies, Damn Lies, and Statistics

When they finally saw how powerful the all-powerful Wizard really was, they were really surprised.

Two revelations in the last week about the economic statistics generated by the government revealed the breathtaking scope of the lies, damn lies and statistics that have been deployed to convince the American people that their economy is healthy when it is not. Scam number one, of course, is the claim that the president “manages” the economy. All you have to do is count the variables, and if you ever finish counting, you will see how preposterous this idea is. But the idea has been sold, and so every president — and all the minions who serve him — has to maintain the fiction that he’s in charge, and everything is swell. Continue reading

You Can Smell the Fear

Nothing to worry about. It will all blow over. Yes, I’m sure.

The world is siding into a recession that has no visible bottom. Globalism — the genius plan for exploiting the world’s poorest people to get cheap gadgets for the world’s richest people — has failed. Consumerism — the genius idea that if you just offer people cheap gadgets and credit cards they will keep spending forever and everything will be okay — has failed. Trickle-down economics — the theory that says all will be well so long as the very rich get very richer — has failed.  Quantitative easing — the notion that if you create money from nothing and give it to large corporations so they can buy other large corporations, prosperity will ensue — has failed.

And worse than any of these things, Bernie Sanders is closer to the presidency of the United States than he has ever been.  Continue reading

The Sublime Art of Doing Nothing About Everything

Being lazy is easy. Doing nothing about everything is a difficult profession aka politics.

The highest achievement possible for the typical American politician is a Zen-like state in which he or she appears to be in vigorous motion doing important things,when in fact he/she is completely still, doing nothing. This became the ultimate goal of politics shortly after the Reagan Revolution convinced all Republicans, most Democrats, and most people, that government action is not a solution for anything but is in fact the problem. 

Despite the enormity of the fraud involved in demonizing all government action while benefiting greatly from most of it, one cannot help but admire the artistry of those who maintain the illusion of trying to help people while not doing anything of the kind. Continue reading

Ethanol: Many Unhappy Returns

In the good old days (1929, here) a gusher like this paid you over a hundred times what you put into it. Today, not so much.

In the early part of the 20th Century, when a wildcatter struck oil, he got a return on his investment of 100 to one. For every unit of energy he used to find and bring the oil to market, he got 100 units back (money is simply a token for the energy, a marker of its value). On that EROI — energy return on energy invested — of 100:1, more than on any other single thing, rests the advent of the Industrial Age and the American Empire. When we discovered oil we won the lottery, a lump sum payment of enough cheap energy to do whatever we wanted to do, until it ran out. 

It hasn’t quite run out yet, but something else almost as serious has happened. Today, when an oil company extracts shale oil from rock by fracking (hydraulic fracturing) the EROI is five to one, one twentieth of what it used to be. From a well that costs many multiples of a standard oil well to build and operate, and that will be depleted in three years instead of the traditional 20 or more. This set of facts, more than any other, explains why the Industrial Age and the American Empire are in their final throes.   Continue reading

Putting Lipstick on the Dow

The day the Plunge Protection Team slept in: February 5, 2018, the worst day in stock market history.

You and I are not among those who think the soaring American stock market, whose Dow Jones Industrial Index just reached a new all-time high, signifies a soaring American economy. Like everything else Trump says, that is clearly a lie. You and I are aware that the stock market has become the favored casino of the One Percent, where they gamble with their unearned wealth, intent on getting more.

Meanwhile back in the real world:

  • When you add up all the profits of all the corporations in America for the past year, there aren’t any. As a group, they have been losing money for over a year;
  • retail store closings are expected to hit 12,000 by the end of this year, 50 per cent more than the previous record set two years ago;
  • global trade is slowing precipitously, while global debt is rising calamitously;
  • the stock-trading desks at the global mega-banks have had their worst half-year in a decade (and that is much of what banks do to make money these days — roll the dice in the Big Casino. Making loans to productive businesses is, like paying taxes, for the little people);
  • stocks are, by any rational measure, hideously over-priced and are being bought primarily by companies buying their own stock so that their earnings per share continue to rise even as their earnings continue to fall. 

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