02/17/2014 archive

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

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Paul Krugman: Barons of Broadband

Last week’s big business news was the announcement that Comcast, a gigantic provider of cable TV and high-speed Internet service, has reached a deal to acquire Time Warner, which is merely huge. If regulators approve the deal, Comcast will be an overwhelmingly dominant player in the business, with around 30 million subscribers.

So let me ask two questions about the proposed deal. First, why would we even think about letting it go through? Second, when and why did we stop worrying about monopoly power? [..]

t’s time, in other words, to go back to worrying about monopoly power, which we should have been doing all along. And the first step on the road back from our grand detour on this issue is obvious: Say no to Comcast.

Robert Kuttner: Overcoming the Six Year Jinx

Juan Cole: More Solar Workers in US than Coal Miners, and Solar doesn’t Poison Drinking Water

Rick Bernardo: Cigarette smoking is an addiction, not a habit

Jimmy Carter: The Arab Spring is not over

Danny Schechter: Does the Media Hate the Poor?

Kim Hightower: Shouldn’t Natural Foods Actually be Natural?

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

February 17 is the 48th day of the year in the Gregorian calendar. There are 317 days remaining until the end of the year (318 in leap years).

On this day in 1904,  Giacomo Puccini’s opera Madame Butterfly premieres at the La Scala theatre in Milan, Italy.

The young Puccini decided to dedicate his life to opera after seeing a performance of Giuseppe Verdi’s Aida in 1876. In his later life, he would write some of the best-loved operas of all time: La Boheme (1896), Tosca (1900), Madame Butterfly (1904) and Turandot (left unfinished when he died in 1906). Not one of these, however, was an immediate success when it opened. La Boheme, the now-classic story of a group of poor artists living in a Paris garret, earned mixed reviews, while Tosca was downright panned by critics.

Madama Butterfly (Madame Butterfly) is an opera in three acts (originally two acts) by Giacomo Puccini, with an Italian libretto by Luigi Illica and Giuseppe Giacosa. Puccini based his opera in part on the short story “Madame Butterfly” (1898) by John Luther Long, which was dramatized by David Belasco. Puccini also based it on the novel Madame Chrysantheme (1887) by Pierre Loti. According to one scholar, the opera was based on events that actually occurred in Nagasaki in the early 1890s.

The original version of the opera, in two acts, had its premiere on February 17, 1904, at La Scala in Milan. It was very poorly received despite the presence of such notable singers as soprano Rosina Storchio, tenor Giovanni Zenatello and baritone Giuseppe De Luca in the lead roles. This was due in large part to the late completion and inadequate time for rehearsals. Puccini revised the opera, splitting the second act into two acts and making other changes. On May 28, 1904, this version was performed in Brescia and was a huge success.

The opera is set in the city of Nagasaki. Japan’s best-known opera singer Tamaki Miura won international fame for her performances as Cio-Cio San; her statue, along with that of Puccini, can be found in Nagasaki’s Glover Garden.

Butterfly is a staple of the standard operatic repertoire for companies around the world and it is the most-performed opera in the United States, where it ranks as Number 1 in Opera America’s list of the 20 most-performed operas in North America.

“The banks own the place.” Sen. Dick Durban said that back in 2009 when he was trying to get 60 votes lined up for bankruptcy reform. at the time he was referring to Congress.

“And the banks — hard to believe in a time when we’re facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. And they frankly own the place,” he said on WJJG 1530 AM’s “Mornings with Ray Hanania.” Progress Illinois picked up the quote.

The banks have now gone beyond just financing. According to Matt Taibbi at Rolling Stone, in their most devious scam yet, ” Banks are no longer just financing heavy industry. They are actually buying it up and inventing bigger, bolder and scarier scams than ever”

Most observers on the Hill thought the Financial Services Modernization Act of 1999 – also known as the Gramm-Leach-Bliley Act – was just the latest and boldest in a long line of deregulatory handouts to Wall Street that had begun in the Reagan years. [..]

…

…it would take half a generation – till now, basically – to understand the most explosive part of the bill, which additionally legalized new forms of monopoly, allowing banks to merge with heavy industry. A tiny provision in the bill also permitted commercial banks to delve into any activity that is “complementary to a financial activity and does not pose a substantial risk to the safety or soundness of depository institutions or the financial system generally.”

Complementary to a financial activity. What the hell did that mean?[..]

Today, banks like Morgan Stanley, JPMorgan Chase and Goldman Sachs own oil tankers, run airports and control huge quantities of coal, natural gas, heating oil, electric power and precious metals. They likewise can now be found exerting direct control over the supply of a whole galaxy of raw materials crucial to world industry and to society in general, including everything from food products to metals like zinc, copper, tin, nickel and, most infamously thanks to a recent high-profile scandal, aluminum. And they’re doing it not just here but abroad as well: In Denmark, thousands took to the streets in protest in recent weeks, vampire-squid banners in hand, when news came out that Goldman Sachs was about to buy a 19 percent stake in Dong Energy, a national electric provider. The furor inspired mass resignations of ministers from the government’s ruling coalition, as the Danish public wondered how an American investment bank could possibly hold so much influence over the state energy grid [..]

(B)anks aren’t just buying stuff, they’re buying whole industrial processes. They’re buying oil that’s still in the ground, the tankers that move it across the sea, the refineries that turn it into fuel, and the pipelines that bring it to your home. Then, just for kicks, they’re also betting on the timing and efficiency of these same industrial processes in the financial markets – buying and selling oil stocks on the stock exchange, oil futures on the futures market, swaps on the swaps market, etc.

Allowing one company to control the supply of crucial physical commodities, and also trade in the financial products that might be related to those markets, is an open invitation to commit mass manipulation. It’s something akin to letting casino owners who take book on NFL games during the week also coach all the teams on Sundays [..]

…

…The situation has opened a Pandora’s box of horrifying new corruption possibilities, but it’s been hard for the public to notice, since regulators have struggled to put even the slightest dent in Wall Street’s older, more familiar scams. In just the past few years we’ve seen an explosion of scandals – from the multitrillion-dollar Libor saga (major international banks gaming world interest rates), to the more recent foreign-currency-exchange fiasco (many of the same banks suspected of rigging prices in the $5.3-trillion-a-day currency markets), to lesser scandals involving manipulation of interest-rate swaps, and gold and silver prices.

But those are purely financial schemes. In these new, even scarier kinds of manipulations, banks that own whole chains of physical business interests have been caught rigging prices in those industries [..]

…When does the fun part start?

It would seem the “fun” has already begun for the banks while the pillaging continues under the watchful eyes of the congress, the Department of Justice and banking regulators.

This last week, in the comment section of the EnergyCollective, I saw the same myth that I have seen time and time again regarding wind power:

Fact 1: renewables are aleatorically intermittent, and so unreliable.

Fact 2: due to Fact 1, they cannot provide energy when it is needed, but only when and in the quantity they can

Fact 3: users have to get energy when they need it, not when it is aleatorically provided

Fact 4: to date, there is no storage system that can be useful for a complex industrial society

Fact 5: due to facts 1 to 4, renewables need to have a back up system that can cope with the needs of the users.

Fact 6: that back up system cannot be just stopped and then put to generation in a few seconds or minutes, and usually have to generate at low efficiency to maintain the back up at call point, generating added costs, besides the usuals as maintainance, lost profits, complex distribution grid, etc.

… not surprisingly ending with climate crisis denialism in “Fact” 8, since the name of the game here is clearly not arguing by starting with facts and seeing what conclusion you arrive it, but rather is myth creation and propagation in support of an already selected conclusion.

While many people don’t know what “aleatorically” means, many would actually share the misconception that windpower is an intrinsically intermittent resource. However, for wind power, the “Fact 1” is in many cases “Falsehood 1”. Even though individual wind turbines are intermittent, for many wind resource regions, it turns out that a substantial share of wind power is not intermittent at all, in either their “by chance (aleatorically) and unpredictable” component or their “by chance (aleatorically), though predictable” component.