February 2015 archive

The Breakfast Club (Chicken Heart)

breakfast beers photo breakfastbeers.jpgSo this is a story I’ve told before but not with such detail and outrage.

The essence of the scientific method is that theories are disprovable (by contradictory experimental results) and that experiments are replicable.  The reason I call Economics no more than Shamen dancing around a corpse shaking rattles is that the theories are not disprovable (for the most part, since like all social sciences experiments to test the conclusion are impossible to arrange and only observation is feasable) and when examining the results of natural experiments (oh, say austerity in Greece) they are shown to be in direct contradiction of the predicted results.

It’s worse than that he’s dead Jim, Dead Jim, DEAD!

Not that this keeps the Shamen from shaking their rattles and dancing.  It’s FAITH you see and when we’re talking about WASP Christianity the firm belief that the elect, favored by God and predestined before birth to sit at his side on the big rock candy mountain in the sky by and by, display the benefits of God’s grace even in this mortal coil.

That’s why the rich are rich you know.  They deserve it.  And all you all expecting divine justice like some kind of after-life lottery don’t really understand that ‘so above as it is below’ and the opiate of justice is merely to numb your pain as you suffer and die for the benefit of your betters.

You think God wants to hang with you?  You wouldn’t know a pickle fork (two tines) from a dessert fork (three) unless a servant laid them out in the correct order (always good to wait until you can see what your host uses).

Which brings us to the Chicken Heart.  This is why I’m conflicted about Cosby.

My dear readers, you may disagree with my opinions, object to my theories, but when I talk about science I insist that my experiments are reproducible and consistent.

What pushes scientists to lie? The disturbing but familiar story of Haruko Obokata

John Rasko and Carl Power, The Guardian

Wednesday 18 February 2015 08.30 EST

The man in the middle of it all was Alexis Carrel, a brilliant and rather dapper Frenchman working at the Rockefeller Institute in New York. Carrel discovered that, if you remove some cells from the body, sit them in a nutritious broth and handle them correctly, they can not only survive, but thrive and multiply. Also, if you take some cells from one culture, you can start a new one and, with that, a third, and so on. The importance of this technique – know as cell “passaging” – can’t be overstated. With it, Carrel literally opened a new era in cell research. Unfortunately, he did so with an experiment that, while earning him international superstardom, proved to be a complete and utter train wreck.

On 17 January 1912, Carrel removed a chick embryo from its egg and cut out a small fragment of its still-beating heart with the aim of keeping it alive as long as possible. He had hardly begun this experiment when he announced to the world that his chicken heart culture was immortal, that immortality belonged potentially to all cells, and that death was only the consequence of how cells are organised in the body. In other words, the secret of eternal life is within us all, an attribute of our basic biological building blocks. It captured the public’s imagination and was soon accepted by the scientific community.

Carrel and his assistants kept – or claimed they had kept – that culture alive for 34 years, which is five times longer than the average chicken. For many years, around 17 January, journalists wrote birthday stories on the chicken heart and wondered how large it would have grown had Carrel nurtured every one of its ever-multiplying cells. (According to calculations, it swiftly dwarfed the Earth and filled up the entire solar system.)

The problem was, no one else could keep a cell culture alive indefinitely. Lab after lab tried and failed, decade after decade. Because Carrel was a giant in the field of cell research and a Nobel Prize winner, few dared to doubt him. Scientists blamed themselves when their cells died. They assumed that they lacked the master’s skill, that his lab had higher standards than they could reach, that they had somehow exposed their cells to infection or failed to keep them properly nourished. We now know that the reverse was true. Other researchers probably couldn’t duplicate Carrel’s results because they weren’t incompetent or dishonest enough.

It was only in the mid-60s – half a century after Carrel established his chicken heart culture – that the dogma of cell immortality came crashing down. That’s when Leonard Hayflick, an ambitious young researcher at the Wistar Institute in Philadelphia, discovered that ordinary body cells have a finite life span – or, more precisely, an average number of times they can multiply in vitro. This is their Hayflick number. For chickens, it is 35. In other words, a population of chicken cells can double about 35 times before they die, which usually takes several months.

By the time Hayflick proved this, Carrel was long dead and his “immortal” chicken cells discarded. Which means that we know Carrel’s most famous experiment was a sham, but not why. If it was fraud, it was one of the most outrageous cases in the history of science. However, the cause may have been carelessness rather than dishonesty. Carrel and his staff used “embryonic juice” as a culture medium and, if they prepared it badly, it might have contained live chick cells. In that case, instead of just feeding their culture, they re-seeded it. It’s an easy enough mistake, but to make it consistently enough to keep their chicken heart cells alive for 34 years suggests an astonishing degree of negligence.

Reproducibility is one of the cornerstones of modern science. Unless an experiment can be repeated again and again by different researchers, each time yielding similar results, it can’t be said to prove anything much. At least that’s the theory. Carrel’s chicken heart experiment shows how far science can stray from the scientific method. And the fault doesn’t just lie with Carrel and his laboratory. The entire scientific community shares some of the blame because it upheld the dogma of cell immortality for more than 50 years despite the fact that it was based on a single, sensational, irreproducible experiment.

Tha-thump.  Tha-Thump!  THA-THUMP!

So why is credibility so important to you ek?

I write pseudonymously.  I don’t delude myself that it protects me from various initialed government agencies, that’s not the point.  What it has done (so far) is keep my mail relatively spam free and save me from random strangers who want me to help them and people who fiercely disagree with me and would like to burn a cross on my lawn (kerosene just ruins the grass, you have to re-sod).

I can not expect you to accept my assertions merely on the basis of my expertise and reputation.  Test them yourself!

The law that entropy always increases holds, I think, the supreme position among the laws of Nature. If someone points out to you that your pet theory of the universe is in disagreement with Maxwell’s equations – then so much the worse for Maxwell’s equations. If it is found to be contradicted by observation – well, these experimentalists do bungle things sometimes. But if your theory is found to be against the second law of thermodynamics I can give you no hope; there is nothing for it but to collapse in deepest humiliation.

Sir Arthur Stanley Eddington, The Nature of the Physical World (1927)

Science News and Blogs

Science Oriented Video

Obligatories, News and Blogs below.

On This Day In History February 19

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 19 is the 50th day of the year in the Gregorian calendar. There are 315 days remaining until the end of the year (316 in leap years).

On this day in 1942, U.S. President Franklin D. Roosevelt signs Executive Order 9066, authorizing the removal of any or all people from military areas “as deemed necessary or desirable.” The military in turn defined the entire West Coast, home to the majority of Americans of Japanese ancestry or citizenship, as a military area. By June, more than 110,000 Japanese Americans were relocated to remote internment camps built by the U.S. military in scattered locations around the country. For the next two and a half years, many of these Japanese Americans endured extremely difficult living conditions and poor treatment by their military guards.

The Order

The order authorized the Secretary of War and U.S. armed forces commanders to declare areas of the United States as military areas “from which any or all persons may be excluded,” although it did not name any nationality or ethnic group. It was eventually applied to one-third of the land area of the U.S. (mostly in the West) and was used against those with “Foreign Enemy Ancestry” – Japanese.

The order led to the internment of Japanese Americans or AJAs (Americans of Japanese Ancestry); some 120,000 ethnic Japanese people were held in internment camps for the duration of the war. Of the Japanese interned, 62% were Nisei (American-born, second-generation Japanese American and therefore American citizens) or Sansei (third-generation Japanese American, also American citizens) and the rest were Issei (Japanese immigrants and resident aliens, first-generation Japanese American).

Japanese Americans were by far the most widely affected group, as all persons with Japanese ancestry were removed from the West Coast and southern Arizona. As then California Attorney General Earl Warren put it, “When we are dealing with the Caucasian race we have methods that will test the loyalty of them. But when we deal with the Japanese, we are on an entirely different field.” In Hawaii, where there were 140,000 Americans of Japanese Ancestry (constituting 37% of the population), only selected individuals of heightened perceived risk were interned.

Americans of Italian and German ancestry were also targeted by these restrictions, including internment. 11,000 people of German ancestry were interned, as were 3,000 people of Italian ancestry, along with some Jewish refugees. The Jewish refugees who were interned came from Germany, and the U.S. government didn’t differentiate between ethnic Jews and ethnic Germans (jewish was defined as religious practice). Some of the internees of European descent were interned only briefly, and others were held for several years beyond the end of the war. Like the Japanese internees, these smaller groups had American-born citizens in their numbers, especially among the children. A few members of ethnicities of other Axis countries were interned, but exact numbers are unknown.

Secretary of War Henry L. Stimson was responsible for assisting relocated people with transport, food, shelter, and other accommodations.

Opposition

FBI Director J. Edgar Hoover opposed the internment, not on constitutional grounds, but because he believed that the most likely spies had already been arrested by the FBI shortly after the Japanese surprise attack on Pearl Harbor. First lady Eleanor Roosevelt was also opposed to Executive Order 9066. She spoke privately many times with her husband, but was unsuccessful in convincing him not to sign it

Post World War II

Executive Order 9066 was rescinded by Gerald Ford on February 19, 1976. In 1980, Jimmy Carter signed legislation to create the Commission on Wartime Relocation and Internment of Civilians (CWRIC). The CWRIC was appointed to conduct an official governmental study of Executive Order 9066, related wartime orders, and their impact on Japanese Americans in the West and Alaska Natives in the Pribilof Islands.

In December 1982, the CWRIC issued its findings in Personal Justice Denied, concluding that the incarceration of Japanese Americans had not been justified by military necessity. The report determined that the decision to incarcerate was based on “race prejudice, war hysteria, and a failure of political leadership.” The Commission recommended legislative remedies consisting of an official Government apology and redress payments of $20,000 to each of the survivors; a public education fund was set up to help ensure that this would not happen again (Public Law 100-383).

On August 10, 1988, the Civil Liberties Act of 1988, based on the CWRIC recommendations, was signed into law by Ronald Reagan. On November 21, 1989, George H.W. Bush signed an appropriation bill authorizing payments to be paid out between 1990 and 1998. In 1990, surviving internees began to receive individual redress payments and a letter of apology.

No Shame

CFAA == Computer Fraud and Abuse Act.

Nominee For Attorney General Tap Dances Around Senator Franken’s Question About Aaron Swartz

by Mike Masnick, Tech Dirt

Wed, Feb 18th 2015 11:31am

While there have been many egregious CFAA cases, one of the most high-profile, of course, was that of activist Aaron Swartz, who was arrested for downloading too many research papers from JSTOR from the computer network on the MIT campus. The MIT campus network gave anyone — even guests — full access to the JSTOR archives if you were on the university network. Swartz took advantage of that to download many files — leading to his arrest, and a whole bunch of charges against him. After the arrest, the DOJ proudly talked about how Swartz faced 35 years in prison. Of course, if you bring that up now, the DOJ and its defenders get angry, saying he never really would have faced that much time in prison — even though the number comes from the DOJ’s (since removed) press release.

Swartz, of course, tragically took his own life in the midst of this legal battle, after facing tremendous pressure from the DOJ to take a plea deal as a felon, even as Swartz was sure he had done nothing illegal or wrong. Since then, there have been a few attempts to update the CFAA to block this kind of abuse, but they have been blocked at every turn by a DOJ that actually wants to make the law even worse. This includes the White House’s latest proposal for CFAA reform, which would actually make more things a felony under the CFAA, and could drastically increase sentencing for things that many of us don’t think should be a crime at all — such as tweeting out a list of worst passwords on the internet.

Outgoing Attorney General Eric Holder has done his best to ignore or downplay any suggestion that his Justice Department abused the CFAA in going after Swartz. And it looks like his likely replacement is trying to do the same.

Senator Al Franken questioned nominee Loretta Lynch about Swartz and the CFAA (.pdf) and got back a response that is basically her avoiding the question. She doesn’t say anything about Swartz, but goes off on some FUD about the dangers of malicious hackers and how the DOJ needs the tools to fight spyware. She then claims that the newly proposed CFAA changes are okay because they only increase the possible maximum sentences, but not the minimums, leaving things up to the discretion of judges (and prosecutors).



This is such a total braindead law enforcement view of things: that if only there were greater punishment it would scare the “bad people” out of doing what they’re going to do. That’s never really worked, and especially not in this area, where the law is being abused to go after people who don’t think they’re actually doing anything wrong.

Second, it just plays up the FUD that “bad stuff is happening” so “something must be done.” But it ignores how vague the law is and how it’s wide open to abuse. A good law enforcement official would ask for clearer laws that more narrowly target actual bad behavior, rather than celebrating a broad and vague law that can be, and is, widely abused just to rack up more DOJ headlines and “victories.”

Dispatches From Hellpeckersville-On Valentines And Vanilla Extract

Ah, Valentine’s Day at chez triv, it has never really been candlelight and chocolate covered strawberries if you know what I mean. From our first date when Cleetus told me I was “surprisingly” attractive, to his over the top romantic marriage proposal (not right now, but sometime before the end of the year, so I can take you off on my taxes!) we just aren’t hearts and flowers kind of people. He usually gets me flowers, a card, we order take out, so that I don’t have to cook, and we’re fine with that. Anything more is too much pressure, sets expectations too high, then people wind up disappointed, crying and fighting, and who needs that? Not me, baby!

Punting the Pundits

“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.

Wednesday is Ladies’ Day.

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

Follow us on Twitter @StarsHollowGzt

Katrina vanden Heuvel: Europe’s Ideologues of Austerity Stand in Way of Reforms

“Things fall apart; the centre cannot hold; Mere anarchy is loosed upon the world”

William Butler Yeats

Yeats’s poem “The Second Coming” captures reality in Europe these days, although surely not in the sense the poet intended. In Germany, the popular press is captivated by the face-off of the stern German Finance Minister Wolfgang Schäuble, clad in black suit and tie and white shirt, against the “charismatic,” “heartthrob,” new Greek Finance Minister Yanis Varoufakis, bald head, dress shirt unbuttoned and untucked, scarf draped for effect. Only the appearances are deceiving. The buttoned-up Schäuble is the ideologue, with doctrine blinding him to reality. The rakish Varoufakis is the pragmatist, seeking a sensible way out of a catastrophe. [..]

This week, the showdown between Syriza and the Troika will play out in meetings of European finance ministers and of the European Central Bank’s governing board. Most assume that some kind of short-term agreement will be cobbled together to buy time.

The Troika apparently believes that Syriza will sober up as the pressure builds. But time is not on the Troika’s side. Across Europe, more and more people and parties are revolting against an establishment that seems intent on destroying Europe in order to save it. The ideologues of the center have the power to crater the Greek banks and force Greece out of the eurozone. But the beatings cannot continue for long. If the common sense of the so-called radicals fails to reverse the current policies, far more ominous, nationalist, racialist, right-wing forces are gathering in the wings.

Zoë Carpenter: A Texas Judge Just Put Millions of Immigrants in Limbo

For the immigrant rights movement, Wednesday was supposed to mark a victory: the first day that thousands of undocumented immigrants brought to the US as children could apply for work permits and a temporary reprieve from deportation under an executive order that President Obama issued last fall.

But late on Monday a federal judge in Texas blocked the implementation of those orders, taking the side of 26 states suing the Obama administration over the deferred action programs. Homeland Security secretary Jeh Johnson said Tuesday that the administration would appeal immediately to the Fifth Circuit Court of Appeals, but will suspend its plans to accept applications until that ruling.

The ruling casts a shadow of uncertainty on people who have waited months for the orders to take effect. A delay will immediately impact up to 290,000 immigrants who are newly eligible for the expanded Deferred Action for Childhood Arrivals program (DACA), which was supposed to begin accepting applications on February 18. Another 3.7 million were expected to be able to start applying for work permits under Deferred Action for Parents of Americans program (DAPA) later this spring.

Laura Flanders: Uber Wants to Reorganize the Economy? Workers, Too, Can Play at that GameUber Wants to Reorganize the Economy? Workers, Too, Can Play at that Game

The global newswire Associated Press announced this January that it will no longer refer to the app-based cab-hail service Uber as “ride-sharing.”

The move follows criticism that services like Uber and Lyft are very far from sharing; to the contrary, they are taking more than they’re giving.

That’s certainly the view of Bhairavi Desai co-founder and director of the National Taxi Worker’s Alliance. Desai told GRITtv this week that while it characterizes itself as an innovative disruption, Uber’s more like Walmart on wheels. They’re not democratizing the workplace, she said, they’re de-regulating it or rather, re-regulating it, to the benefit of app-owning bosses and the detriment of drivers.

Jessica Valenti: Why is bearing children seen as more important than surviving pregnancy?

There is nothing selfish about wanting to live – it’s the most simple, instinctive, human desire there is. Still, most of us – men and women – feel we would lay down our lives for our children; there’s an instinct in that, too.

But there is something about the spectacle of anti-abortion advocates celebrating women who die trying to save their unborn babies that feels a bit too gleeful – they’re shockingly unabashed in their pushing the idea that the lives of adult women aren’t nearly as important as their ability to bring children into the world. [..]

Why must the best mothers be dead mothers?

I am scared for women who have been taught to believe that the most important, beautiful thing they can do is perish. There are already so many ways in which women jump through hoops in order not to exist: we silence ourselves, making sure we’re quiet and unobtrusive; some of us starve ourselves, getting smaller and smaller as to not take up too much space. And this noble disappearing act has become so commonplace that there mere act of being alive – making our voices heard, taking up space, choosing to live – is seen as a disruption of natural order.

Lindy West: Could we please not forgive Sarah Palin? She is an unrepentant nightmare

Conservative pundit Sarah Palin made a cute, sporting little cameo on Saturday Night Live’s 40th anniversary show this weekend – winking at her own disastrous 2008 vice-presidential run, which was memorably skewered at the time by SNL’s Tina Fey. In the bit on Sunday night, Palin piped up during a Q&A with Jerry Seinfeld to ask, “Just curious, Jerry, how much do you think [SNL producer] Lorne Michaels would pay me if I were to run in 2016 with Donald Trump as my running mate?”

“I don’t think there’s a number too big,” Seinfeld replied.

Har har. Cute! See, Fey’s Palin impression was a big hit for the show back in 2008, got marvellous ratings, and will long be remembered as a seminal SNL moment – but not, as one might think, because Sarah Palin was some wacky, harmless goofball destined to be a delightful footnote in the annals of election history. No. Nope.

No. People loved those Tina Fey/Sarah Palin sketches because Sarah Palin is a terrifying, anti-intellectual, anti-choice, gun-toting ideologue who came within a hair’s breadth of one of the most powerful political offices in the world, a dystopian potentiality that could have tangibly affected the lives of literally billions of people. Watching her being flawlessly lampooned – her hypocrisy and pomposity laid bare with a clarity that only comedy can achieve – felt like a gossamer lifeline of hope and sanity to which we could all cling.

In short: Fey’s Palin impression wasn’t important because Palin is trivial and amusing. It was important because Palin is anything but. And we need to remember that.

Jess Zimmerman: Everything you need to know about the social media you’re too old to use

I’m going to assume that you already know how to use Facebook, Twitter, and Instagram: I’m sure you laughed at the commercial with the old lady and her “Facebook wall”; television has made the existence of Twitter unavoidable; and Instagram’s no-nipple-or-pubes policy is designed to be friendly for the elderly, like us. But people my age (including me; what the hell’s Yik Yak?) have a habit of dealing with new social networking options by gleefully, defensively declaring our ignorance. We don’t need to do that. Keeping up isn’t that hard – for now.

TBC: Morning Musing 2.18.15

I have 3 articles – 2 longer ones – but all 3 good reads.

First, a great piece on ACC and the Pentagon:

The Pentagon & Climate Change: How Deniers Put National Security at Risk

Rear Adm. Jonathan White, the Navy’s chief oceanographer and head of its climate-change task force, is one of the most knowledgeable people in the military about what’s actually happening on our rapidly heating planet. Whenever another officer or a congressperson corners White and presses him about why he spends so much time thinking about climate change, he doesn’t even try to explain thermal expansion of the oceans or ice dynamics in the Arctic. “I just take them down to Norfolk,” White says. “When you see what’s going on down there, it gives you a sense of what climate change means to the Navy – and to America. And you can see why we’re concerned.”

Jump!

On This Day In History February 18

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 18 is the 49th day of the year in the Gregorian calendar. There are 316 days remaining until the end of the year (317 in leap years).

On this day in 1885, Mark Twain publishes his famous, and famously controversial, novel The Adventures of Huckleberry Finn.

Considered as one of the Great American Novels, the Adventures of Huckleberry Finn is among the first in major American literature to be written in the vernacular, characterized by local color regionalism. It is told in the first person by Huckleberry “Huck” Finn, a friend of Tom Sawyer and narrator of two other Twain novels (Tom Sawyer Abroad and Tom Sawyer, Detective).

The book is noted for its colorful description of people and places along the Mississippi River. Satirizing a Southern antebellum society that had ceased to exist about twenty years before the work was published, Adventures of Huckleberry Finn is an often scathing look at entrenched attitudes, particularly racism.

The work has been popular with readers since its publication and is taken as a sequel to The Adventures of Tom Sawyer. It has also been the continued object of study by serious literary critics. It was criticized upon release because of its coarse language and became even more controversial in the 20th century because of its perceived use of racial stereotypes and because of its frequent use of the racial slur “nigger”, despite that the main protagonist, and the tenor of the book, is anti-racist. According to the January 20, 2011 Chase Cook/The Daily article, The Adventures of Huckleberry Finn novel will be released in a new edition. Two words will be changed throughout the whole book, “injun” and “nigger” to “indian” and “slave”. The book is being changed as quoted in the article, “only to make it viable to the 21st century”.

The Notorious RBG: “The Best and Hardest Job I’ve Ever Had”

Supreme Court Justice Ruth Bader Ginsburg, aka The Notorious RBG, sat down for an exclusive interview with MSNBC’s Irin Carmon. During the interview she spoke on numerous subjects including the dysfunctional congress, abortion, marriage equality, sexism, retirement and tattoos.



Full transcript can be read here

CARMON: So I know that you have no intention of retiring, and correct me if I’m wrong, anytime soon. But I’m wondering what you want your successor to look like?

GINSBURG: My successor will be the choice of whatever president is sitting at that time. But I’m concerned about doing the job full steam. And I’ve said many times, once I sense that I am slipping, I will step down. Because this is a very intense job. It is by far the best and the hardest job I’ve ever had. And it takes a lot of energy and staying power to do it right. So that is when I will step down, when I feel I can no longer do the job full steam.

Bad Agreements

How Trade Deals Boost the Top 1% and Bust the Rest

Robert Reich

Monday, February 16, 2015

Suppose that by enacting a particular law we’d increase the U.S.Gross Domestic Product. But almost all that growth would go to the richest 1percent. 


The rest of us could buy some products cheaper than before. But those gains would be offset by losses of jobs and wages.

This is pretty much what “free trade” has brought us over the last two decades.

I used to believe in trade agreements. That was before the wages of most Americans stagnated and a relative few at the top captured just about all the economic gains.



The fact is, trade agreements are no longer really about trade. Worldwide tariffs are already low. Big American corporations no longer make many products in the United States for export abroad.



To the extent big American-based corporations any longer make stuff for export, they make most of it abroad and then export it from there, for sale all over the world – including for sale back here in the United States.



In fact, today’s “trade agreements” should really be called “global corporate agreements” because they’re mostly about protecting the assets and profits of these global corporations rather than increasing American jobs and wages. The deals don’t even guard against currency manipulation by other nations.

According to Economic Policy Institute, the North American Free Trade Act cost U.S. workers almost 700,000 jobs, thereby pushing down American wages.

Since the passage of the Korea-U.S. Free Trade Agreement, America’s trade deficit with Korea has grown more than 80 percent, equivalent to a loss of more than 70,000 additional U.S. jobs.



The old-style trade agreements of the 1960s and 1970s increased worldwide demand for products made by American workers, and thereby helped push up American wages.

The new-style global corporate agreements mainly enhance corporate and financial profits, and push down wages.

That’s why big corporations and Wall Street are so enthusiastic about the upcoming Trans Pacific Partnership – the giant deal among countries responsible for 40 percent of the global economy.

That deal would give giant corporations even more patent protection overseas. It would also guard their overseas profits.

And it would allow them to challenge any nation’s health, safety, and environmental laws that stand in the way of their profits – including our own.



Global deals like the Trans Pacific Partnership will boost the profits of Wall Street and big corporations, and make the richest 1 percent even richer.

But they’ll bust the rest of America.

How Third Way Trade Agreements Study Distorts Via Omission to Pave Way for TTP and TTIP

By Kenneth Thomas, Naked Capitalism

Posted on February 17, 2015

Third Way (h/t TPM), a Democratic pro-trade think tank, has released a new study, “Are Modern Trade Deals Working?” It examines the various “free trade” deals the U.S. has signed since 2000 to conclude that 13 of 17 have led to an improvement in our goods (not including services; see more below) trade balance with the countries involved, giving a net improvement over the 17 agreements studied of $30.2 billion per year.

I did a similar analysis of this very question (though in less detail than the Third Way study) in 2012. Unlike the Third Way report, my post included all U.S. free trade agreements (rather than starting in 2001 like Third Way) as well as the effect of the 2000 agreement for Permanent Normalized Trade Relations (PNTR) with China. So, compared to the Third Way study, my post includes the FTAs with Israel, Canada, and Mexico, but did not consider the Panama FTA, which had not yet come into effect when I posted. My conclusion was essentially the same as Third Way’s, that the effects of the agreements on our trade in goods were usually positive, but of small size (the effect of the Israel FTA was also small). Because the Third Way study begins in 2001, however, it omits the impacts of NAFTA and PNTR with China. However, as my post showed, they are the most important by far.

This fact is not lost on opponents of the Trans Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP). Lori Wallach of Public Citizen Global Trade Watch told the Associated Press that “studies such as Third Way’s make a big deal out of modest trade improvements with countries like Panama, and gloss over huge trade deficits with major trading partners such as South Korea, Mexico and Canada.” She’s right.

In 1993, the year before NAFTA went into effect, the United States had a surplus with Mexico on trade in goods of $1.7 billion. In 1995, it went to a deficit of $15.8 billion, and in 2014 the goods trade deficit was $53.8 billion, down from 2007′s peak of $74.8 billion. This was in sharp contrast with the analysis of Gary Hufbauer and Jeffrey Schott, who predicted trade surpluses on the order of $9-12 billion through the 2000s, even as they admitted that the peso was overvalued (it collapsed in value in the December 1994 “Tequila crisis”).

Meanwhile, the balance of trade in goods with Canada went from a deficit of $10.8 billion in 1993 to $34.0 billion in 2014. Note that the U.S. had a peak deficit of $78.3 billion in 2008, which collapsed to  $21.6 billion in 2009.

In 2000, the year PNTR was adopted, the United States had an $83.9 billion goods trade deficit with China. In May of that year, the International Trade Commission (h/t David Cay Johnston) released a report estimating that the trade balance would worsen by a further $4.3 billion. According to the article, the U.S. Trade Representative and the White House both criticized this study strongly. And in fact, the 2001 deficit fell to $83.1 billion. However, in 2002 it was $103.1 billion, an increase more than four times the ITC prediction, and by 2014 it had grown to $342.6 billion.

By including trade in goods but not trade in services, Third Way is admirably the stacking the deck against its own position. It points out that the U.S. has a global surplus in trade in services of $232 billion in 2014, including a $45 billion surplus with Canada and Mexico. However, it doesn’t mention that the U.S. goods trade deficit was $737 billion in 2014, or that the country’s overall 2014 trade deficit was $505 billion, up from $477 billion in 2013.

The ultimate question is whether TPP and TTIP are going to be more like the U.S.-Australia Free Trade Agreement, or more like NAFTA and PNTR. Considering that the TPP includes all the NAFTA countries, Australia, Chile, Japan, and six others, comprising “nearly 40 percent of global GDP,” I think it’s safe to assume that it will have a much bigger impact than the FTAs with Australia or Chile, for instance. Similarly, since the European Union has an economy about the same size as the U.S. economy, I believe the TTIP will also have big consequences.

Moreover, we have to remember that these are much more than trade agreements. Both of them have increased protections for investors, patents, trademarks, and other intellectual property, and in both of them the U.S. is advocating the inclusion of investor-state dispute settlement so companies can sue governments through arbitration rather than courts, something that has proven more favorable for companies vis-a-vis both governments and consumers. So, in addition to the negative effects on U.S. workers that we would expect on the basis of the Stolper-Samuelson Theorem, all signatory countries are likely to suffer from higher prices for medicine and assaults on their regulations through investor-state dispute settlement.

Tobacco Companies

In a 20 minute segment of HBO’s “Last Week Tonight,” host John Oliver lights up an industry giant, tobacco and how it uses the courts to suppress the laws of the poorest countries to restrict cigarette sales and inform their citizens of the health hazards of tobacco use. John also introduces a new mascot and a tee shirt, Jeff the Diseased Lung, for an adverting campaign

As Last Week Tonight host John Oliver notes early in his incredible, 20-minute examination of the global battle being fought over tobacco advertising, the smoking rate in the United States has dropped from 43 percent in 1965 to 18 percent today thanks to strict laws outlawing cigarette ads. With America largely kicking its smoking habit, the tobacco industry has been forced to make up the revenues abroad, leading to court battles in countries like Australia, Uruguay and Togo, one of the 10 poorest nations in the world.

Oliver’s takedown also focuses on the extreme lengths companies like Philip Morris International are going to place their products in the hands of the youth, including a Marlboro-sponsored kiosk outside an Indonesian school where teens can purchase a single cigarette for a dime.

Countries have responded to Big Tobacco’s unorthodox marketing with laws that allow government to place grotesque images of smoker’s lung and blackened teeth on cigarette packaging, but even those measures have resulted in threats of billion-dollar lawsuits from the tobacco giants in international court.

One such battle is being waged in Togo, where Philip Morris International, a company with annual earnings of $80 billion, is threatening a nation with a GDP of $4.3 billion over their plans to add the harsh imagery to cigarette boxes, since much of the population is illiterate and therefore can’t read the warning labels.

Last Week Tonight with John Oliver: Tobacco

The tobacco industry derives much of its legal power from treaties like the World Trade Organization

That’s right, a company was able to sue a country over a public health measure through an international court. How the f*ck is that possible?

Apparently, PMI had dug up a treaty from 1993 that stated that Australia couldn’t seize Hong Kong-based companies’ properties, so before it started litigation, it moved its Australia business to its Hong Kong-based division and then sued claiming the property being seized was its trademarks on its cigarette packages.

But it wasn’t just PMI who came after Australia. Three countries – Honduras, the Dominican Republic, and Ukraine – also filed complaints with the World Trade Organization against Australia’s plain packaging law. However, it turns out, Ukraine has zero trade with Australia of any tobacco products. [..]

Not surprisingly, these complaints are fully backed by PMI, who will even cover some of the legal costs. But Big Tobacco doesn’t just go after big countries; the small South American country of Uruguay was also a target. Oliver points out that it’s a country we think so little about that the audience didn’t even notice he was deliberately highlighting the wrong country on a map to prove his point.

It is treaties like the WTO that harm struggling counties and the poorest populations around the world. President Barack Obama would like to further that harm with even bigger “free trade” like the Trans-Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (TTIP). These treaties will cause job losses, lower wages, higher drug prices, endanger the environment and food supplies. The treaties also would give companies, like Phillip Morris International, even more power to sue governments if those governments’ policies cause a loss of profits, undermining democracy. They are being negotiated in secret and the public only knows about them because Wikileaks released drafts of some of the worst clauses that it had acquired.

Load more