Coyote Blog

Just six months ago, governments were criticizing ratings agencies for letting threats by debt security issuers cow them into keeping ratings for bad debt higher than they should be (emphasis added)

Moody’s and Standard & Poor’s, Wall Street’s two largest credit rating agencies, were roundly criticized in the Levin-Coburn Senate reportfor betraying investors’ trust and triggering the massive mortgage-backed securities sell-offs that caused the 2008 financial crisis.

Credit rating agencies are supposed to provide independent, third-party credit assessments to help investors understand the risks in buying particular securities, debts and other investment offerings. For example, securities that have earned the highest ‘AAA’ rating from Standard & Poor’s (S&P) should have an “extremely strong capacity to meet financial commitments” or have “a less than 1% probability of incurring defaults.” Investors would use the ratings to help evaluate the securities they’re seeking to buy.

However, the standard practice on Wall Street is fraught with conflicts of interest. In reality, the credit rating agencies have long relied on fees paid by the Wall Street firms seeking ratings for their mortgage-backed securities, collateralized debt obligations (CDOs), or other investment offerings. The Levin-Coburn report found the credit agencies “were vulnerable to threats that the firms would take their business elsewhere if they did not get the ratings they wanted. The ratings agencies weakened their standards as each competed to provide the most favorable rating to win business and greater market share. The result was a race to the bottom.” Between 2004 and 2007, the “issuer pay” business model fostered conflicts of interest that have proven disastrous for investors.

I have no problem with this analysis.  But it’s ironic in contrast to the very same governments’ reactions to their own downgrades over the last 6 months.  In fact, the general government reaction from Washington to Paris has to be to … wait for it … threaten the agencies in order to keep their ratings up.  And these threats go farther than just loss of business – when the government issues threats, they are existential.  It’s hard to see how the US or French government’s behavior vis a vis downgrades has been any different than that of banks or bond issuers that have faced downgrades.

In general, the tone of government officials has been “what gives them the right to do this to us?”  The answer to that question is … the government.  These self-same governments were generally responsible for mandating that certain investors could only buy certain securities if they are rated.  And not just rated by anyone, but rated by a handful of companies that have been given a quasi-monopoly by the government on this rating business.

This is a pretty interesting interview with Eric Schmidt of Google.  I am running out the door and don’t have time to excerpt it, but in short, Schmidt is quite critical of the ability of government to intelligently regulate technology.

His solution is telling.  There is nothing here about reducing the power and scope of government, despite his clear and concise description of its consistent structural failures.  His solution:  more power for my guys.  That way, when Washington plays its game of sacrificing the less connected in favor of the well connected, we will do OK.

I am working on this concept for my next Forbes column vis a vis the Occupy Wall Street movement.  The OWS folks seem incoherent to us, because, in short, they complain about people having unfair power over them and then their solution is … to give other people more power.   I have reconciled this in my mind with a cold war analogy.  Everyone accepts the arms race as a fact, and so the only way to survive is to have more nukes than the other guy.  The only way to deal with power, is to get more power for my side.

Frankly, its time for disarmament.  As a retailer, I get irritated with credit card processors, but I understood when Congress was considering regulation of interchange fees that giving the Feds the power to set credit card terms, rather than the banks, was not going to make things any easier, just shift the costs from more to less favored constituencies (and consumers are always the least favored constituency).

More later as I sort this out in my head.

So here is an interesting local story giving us a window into race relations.    First, a black comedian named Katt Williams (I never heard of him either) called a Mexican man a “nigga” and told him to go back to Mexico.   Then a Hispanic woman created a profanity-laced 6-minute video calling Katt Williams “a white supremacist.”

Outstanding.  Actually, I think that this has little to do with race relations and more to do with a post-modernist view of language.  I am still working on writing about this phenomenon, wherein certain political phrases have become all-encompassing insults or descriptors of the opposition, wholly stripped of their original meaning.  Thus “Soros-funded” or “Koch-funded” become synonyms for being extreme left or libertarian, rather than actually being supported by any evidence of such funding.  My interest in this topic began with a comment on Kevin Drum’s site, where one sympathetic reader smacked Tea Partiers as merely mouthing Republican talking points, and the proceeded to repeat in now-standard terminology every Democratic talking point about the Tea Party.  The juxtaposition was so obvious I thought it might be performance art rather than a real comment.

Today in Forbes, I have an article bringing the layman up to speed on Henrik Svensmark and this theory of cosmic ray cloud seeding.  Since his theory helped explain some 20th century warming via natural effects rather than anthropogenic ones, he and fellow researchers have face an uphill climb even getting funding to test his hypothesis.  But today, CERN in Geneva has released study results confirming most of Svensmark’s hypothesis, though crucially, it is impossible to infer from this work how much of 20th century temperature changes can be traced to the effect (this is the same problem global warming alarmists face — CO2 greenhouse warming can be demonstrated in a lab, but its hard to figure out its actual effect in a complex climate system).

From the article:

Much of the debate revolves around the  role of the sun, and though holding opposing positions, both skeptics and alarmists have had good points in the debate.  Skeptics have argued that it is absurd to downplay the role of the sun, as it is the energy source driving the entire climate system.  Michael Mann notwithstanding, there is good evidence that unusually cold periods have been recorded in times of reduced solar activity, and that the warming of the second half of the 20th century has coincided with a series of unusually strong solar cycles.

Global warming advocates have responded, in turn, that while the sun has indeed been more active in the last half of the century, the actual percentage change in solar irradiance is tiny, and hardly seems large enough to explain measured increases in temperatures and ocean heat content.

And thus the debate stood, until a Danish scientist named Henrik Svensmark suggested something outrageous — that cosmic rays might seed cloud formation.  The implications, if true, had potentially enormous implications for the debate about natural causes of warming.

When the sun is very active, it can be thought of as pushing away cosmic rays from the Earth, reducing their incidence.  When the sun is less active, we see more cosmic rays.  This is fairly well understood.  But if Svensmark was correct, it would mean that periods of high solar output should coincide with reduced cloud formation (due to reduced cosmic race incidence), which in turn would have a warming effect on the Earth, since less sunlight would be reflected back into space before hitting the Earth.

Here was a theory, then, that would increase the theoretical impact on climate of an active sun, and better explain why solar irradiance changes might be underestimating the effect of solar output changes on climate and temperatures.

I go on to discuss the recent CERN CLOUD study and what it has apparently found.

For some reason I do not fully understand, there are two worlds of gaming – the Wal-Mart/Target/Toys R Us world of Monopoly and Risk, and the geeky world of strategic gaming.

It used to be that the strategic gaming world was just too complicated and arcane for prime time.  I once spent a whole summer playing through a game called “War in Europe” from SPI.  It had a 42-square foot map of Europe, thousands and thousands of counters, hundreds of pages of instructions, and simulated WWII in weekly turns.

However, there is now a whole slew of games in the strategic arena, mostly from Europe, that are very accessible.   A number are not much harder to learn than Risk but are more fun and play a lot faster.  Unfortunately, few of these have migrated to mainstream stores, so you may be missing them.  Here are a few my family plays that are excellent places to start.  I have put them in approximate order of complexity, from low to high.

[By the way, don't have a family or friends?  Your in luck!  At least 3 of the games below have very high quality iPad game apps with good to very good AI competitors]

1. Ticket to Ride. Very easy to learn.  Even visiting kids get the idea immediately.  This is a railroad line building game.  Start with the original North American version, it is the least complicated.  Also, if you have an iPad, there is a very good game app port of this game.
2. Small World. This is an absolute freaking classic. Totally fun, pretty easy to learn, fast to play.  Sort of a wargame ala Risk but it doesn’t feel like Risk.  Very repayable because the army or race (e.g. dwarves, elves, giants, etc) you play changes each game as special powers are mixed and matched.  As important to taking territories will be recognizing when your race has become senescent and when it is time to start a new race.  If you have an iPad, there is an awesome Small World game app I heartily recommend.
3. 7 Wonders. A new game that has quickly become a favorite.    This game is typical of many modern strategy games — there are many ways to score and you only have a limited number of actions, so the trick is figuring out your priorities.  The play rules of this game are dead simple.  The complicated part is deciding what action to take among many alternatives, since the scoring is complicated.  Here is my advice on this game and for many of these games that follow.  Just play the game once.   This is what my kids and I did with 7 Wonders.  They yelled at me at scoring time that they hadn’t understood that such and such scored so well or poorly, but they understood it better with one play-through than by any number of times parsing the rules.  This is our current favorite.  Interesting dynamic here as after each card play, everyone passes his or her whole hand to their neighbor.
4. Dominion.  Similar to 7 Wonders in that it is a card game building to victory points.  There is a constant tradeoff of getting victory points now or building up “infrastructure” that will allow more scoring later.  It is more complex than 7 wonders as it has even more options and paths.  I play it with my family but both this and the next game fall out of what are typically called “family” games.
5. Race for the Galaxy.  Again, similar to 7 Wonders and Dominion, just more complicated.  A planet development game.

Here are some other family accessible games I can’t recommend as much

1. Settlers of Catan. This is a popular strategy classic, and is simple to learn.  My kids think its kind of meh.  It has a diplomacy negotiating element that does not seem to work well in my family for games
2. Cargo Noir. I have only played this once, so I can’t say how it wears.  My kids liked it better than I did.  It is easy to learn, but I thought the strategic options were a bit thin.
3. Carcasonne.  There are very few games I don’t care for, but I have tried this game several times and it just does not click for me.  But it is wildly popular, so what do I know?  A game where you add tiles of roads and cities to try to score based one where you have put your mini people (meeple in euro-game speak).   There is a high quality port of this game on iPad.

Here are some games I really love but are not appropriate for the entry level family

1. Twilight Struggle – replay the cold war.  My son and I played this and it was awesome, but it took some time to learn and was pretty wonky.
2. Agricola – one of the reigning kings of hard-core Euro-style strategy games, this game is fairly complicated to learn (not helped by instructions that really need a re-write) and very complicated to master.   The concept — trying to keep a medieval family alive – bored the hell out of my kids but it is similar to many of the games above in that there are far more ways to score than one can pursue in a turn, and it has a very strong element of balancing immediate returns against investments in the future.   I have never played Puerto Rico but my sense it is in a similar genre.

The Boardgame Geek website is a great place to learn about these games (I have just listed a few of the most popular of literally thousands of games).  Their ranking of top family games is here.  To give you an idea, Monopoly is rates #781 in family games and #7148 overall by their readers (though there is some geek snob factor in this, it really is not a very good game), so you probably have some good games to discover.

PS- Most all of these are on Amazon.

This is awesome, and the only real argument is which one is the bigger piece of crap.  The drag race was particularly funny. Part 2 here

Update: Fixed the second link.  Forgot to give credit to reader Leith Kronenberg for the link, who, by the way, needs his own blog.

My column this week in Forbes is about the declining rate of entrepreneurship and startups in the US.

A recent study by the Beauru of Labor Statistics confirmed a potentially disturbing trend — that the number of new startup businesses in the United States has declined since 2006, and the number of jobs created by those startups has been in decline for over a decade.

This is not just a result of the recent recession.  These declines pre-date the current recession, and besides, startup activity has always held up well in past recessions as unemployed workers try entrepreneurship as a path back to prosperity.

There are likely a myriad of economic and demographic reasons for this decline, but certainly the growth of government power in the economy must be seen as a major contributor.  Government intervention in commerce nearly always favors large companies over small, even if that was not its specific intent, for a couple of reasons:

1. Increasingly complex and pervasive regulations on everything from labor practices to salt content tend to add a compliance cost burden that is more easily born by larger companies
2. Large, entrenched competitors are becoming more facile at manipulating government to create barriers to competition from upstart companies with different business models.

The role of government in throttling entrepreneurship has been evident for years, in the enormous differentials between US and European business startup rates.  Historically, the US has had entrepeneurship rates 3-4 times higher than in the large European industrial countries, due in large part to the barriers these latter countries place in the way of business creation.  But the US, with its current bi-partisan drive towards a corporate state, may soon be engaged in a race to the bottom with these other countries.

I go on to discuss each of these two points in more depth.

Last week in the race around New England colleges I missed a milestone of sorts – Coyote Blog crossed over 5 million visits.  I say “of sorts” because with feed readers, many readers of the blog do not hit the visit counter.  In fact, with over 2,000 feed subscribers who check this feed each day, that equates to about 3/4 million visits a year that don’t hit the counter.

Nevertheless, all these numbers, however flawed, are far higher than I ever thought I would reach here (way back on September 29, 2004).  Thanks for the support.

PS-  Here was that first scintillating post 6-1/2 years ago:

This blog will often touch on the insanity that is the current American tort system. I don’t think there is any greater threat to capitalism, due process, or democracy than the growing power of the litigation bar.

Via Overlawyered.com, which should be an essential part of your daily blog browsing, comes this story. Apparently, after being sued by Okaloosa County for making defective police cars, Ford refused to sell the county any more of this type car. The County sued again, this time to force Ford to sell it more cars of the type it is suing Ford for being defective:

One of Morris’ attorneys, Don Barrett, has said the sheriff firmly believes the Police Interceptors are defective but he wants to buy new ones to replace aging cars because seeking other vehicles would be more costly.

lol. Unfortunately, in the service business, it is legally more difficult to exclude customers from the premises. We have several well-known customers who come to our campgrounds (plus Wal-mart and any other private retail establishment) desperately hoping to slip and fall and sue. In a future post, I will tell the story of a Florida campground that is being sued by a visitor for sexual dysfunction after the visitor allegedly stepped on a nail in their facility.

So the Republicans in Wisconsin eliminated collective bargaining for public unions except on wages.  The Democratic Secretary of State, fully within the law, is delaying making the law official for 10 days.  This 10 days is giving us a great picture of the problem with public unions.

Why?  Because the 10 days was explicitly to allow cities and counties to cut new deals with unions, since all deals before the law is passed are grandfathered.  The fact that many city and county governments are rushing to take advantage of this window just proves that public collective bargaining is broken — no one is looking after the taxpayers.  I have argued that public unions are basically on the same side of the table with governments in bargaining sessions.  What could be better proof?  If government officials really cared about the taxpayer or their fiduciary responsibility, why in the world would they be rushing to cut above-market deals with government employees when they won’t have to do so in just 10 days?  Government officials are colluding with unions to race to transfer more wealth from taxpayers to workers before the window for such subsidies shuts.

For the last three weeks, I have been writing about the information, incentive, and rent-seeking issues that will doom Obamacare — for example, how its impossible for a centralized board to set prices, and why a complete end to individual shopping will doom us to both rising prices and increasing frivolous demand.

I really didn’t have to bother, though, because it is unnecessary to hypothesize — we can just look at Massachusetts, which embarked on a proto-Obamacare several years ago.  John Calfee has a great column in the WSJ today.  Some excerpts

• On costs

Massachusetts reformers deferred cost control to the vague prospect of a “Round 2″ of reform—much as congressional Democrats did a year ago when they passed ObamaCare. Meanwhile, economists John Cogan, Glenn Hubbard and Daniel Kessler reported in the Forum for Health Economics & Policy (2010) that insurance premiums for individuals (alone or in employer-sponsored group plans) increased 6% to 7% beyond what they would have without the reform. For small employers, the increases are about 14% beyond those in the rest of the nation. Four years after reform, Massachusetts still has the highest insurance premiums in the nation, and the gap is getting wider.

In 2010, insurance firms announced premium increases of 10% to 30% in the individual and small-group market. Gov. Patrick, on the verge of a tough re-election race, had the state insurance commissioner deny the higher rates.

• On frivolous demand

But the number of emergency room visits, which everyone expected to drop once people had to purchase insurance, is still going up. Surveys show roughly half the visits are unnecessary. Surveys also indicate that finding a primary care physician is becoming more difficult.

• On the end game of a centralized price-control regime

Last month Round 2 arrived. Gov. Patrick introduced a bill that will impose de facto price controls on everyone from solo primary care doctors to prestigious academic hospital systems. An 18-member board will decide how and how much providers should be paid, and the bill gives regulators the power to force private insurers to accept these fiats. Some 30 states experimented with such rate-setting in the 1970s and ’80s. Except for Maryland, all of them—including Massachusetts—deregulated in the 1990s because costs rose even as quality and choice declined

• On politicization of decision-making

Insurance firms protested that they increased premiums because they had to deal with entrenched providers, especially hospitals, most notably the academic giants of Boston and Cambridge. Then the state prepared to introduce highly intrusive price controls over those providers—only to discover that this would provoke formidable political opposition while encountering myriad practical difficulties

To the last point, what happens to prices when providers know that a) consumers aren’t shopping any more; b) consumers will take the service at any price, because they aren’t paying; and c) insurance companies have to pay the bill, not matter how high, based on government rules.  Of course prices go up, because the entire price-discovery mechanism has been eliminated by government fiat.  Then the government has to step in with a doomed-to-failure price-setting plan.  In the end, those with political connections get the prices they want, and those who do not get throttled to make up the difference.

http://ktar.com/category/local-news-articles/20110215/Arpaio-leads-in-poll-for-Senate-race/

The early returns are in, and right now it would seem Maricopa County Sheriff Joe Arpaio has the early edge in replacing Jon Kyl.

According to Roll Call, Arpaio led a field of potential Republican candidates by 21 percent in a poll of likely GOP primary voters.

Though this makes us feel better, a little

Maricopa County’s self-proclaimed “toughest sheriff in America,” Joe Arpaio, says he’s considering running for the U.S. Senate seat being vacated by Senator Jon Kyl.

That said, New Times guaran-damn-tees he won’t actually run.

“The issue is whether I want to leave this office and go to Washington and try to make a difference there, which I would do if I run and win,” the 78-year-old Arpaio tells The Hill. “I think I could do that job.”

Sorry, Joe, we’ve heard it all before.

As you may recall, Arpaio pulled a similar stunt last year when he claimed to be considering running for governor. And he did the same thing four years earlier, when he also claimed he was mulling over a run for the governorship.

In neither case did Arpaio actually run.

You see, Arpaio seems to get off on seeing his name in the headlines, and what better way to make that happen than to continually fuel speculation about potentially running for office — and a poll showing he’s the front-runner certainly doesn’t help things.

Update: This was an interesting post about how TV has become far more accepting of police and proprietorial abuse in its heroes, comparing quasi-terrorist Steve McGarrett from the current incarnation of Hawaii 5-0 with the respectful and conscientious Jack Lord version.  Next up, the new show Arpaio 4-8?

Glenn Reynolds mentions an article on racial tests in Hawaii.  I blogged about a similar Hawaiian program several years ago, where $1 a year land leases are granted by the state to native Hawaiians

Qualifying for the program requires that the recipient pass a strict racial test, which the HHL web site says is “50% or greater native Hawaiian blood“.  Setting eligibility for a government program based on racial tests is pretty outlandish in and of itself, but it gets worse.  People taking advantage of the program need to think carefully about the race of their mate before they decide how much to invest in their home.  A 75% Hawaiian who marries a full-blooded Hawaiian will be able to pass the improvements on to their children (since the children will be more than 50% Hawaiian), and thus can justify a large home investment.  The same person who marries a full-blooded Japanese or African or Anglo-Saxon will not be able to pass their home on to their kids, since their kids will fail the race test.  So, not only is there a race-test for a government program, but the government is providing strong financial incentives not to “dilute” a certain race.  Hawaii uber alles.

Just when I was climbing on top of any number of issues at work, and was ready to start blogging again in earnest, Civ 5 was released yesterday.  Yes, it has all the time destruction potential of its older versions.  Some quick thoughts from a few hours of play

• Beautiful interface.
• The things that were removed (ie religions) are not missed
• The only thing I don’t like about the interface is that the new way of showing armies makes it harder to distinguish what type of troops they are.
• Love the new combat system and the elimination of absurd stacks.  The new city defense system is a nice add as well.
• More barbarians on the loose in the early game, but if they attack you no combat units (workers, settlers) they drag them back to their encampment and you can go and free the hostages
• Early game very different — not a headlong race to settle open space.  Early game city states change the early dynamics, for the better I think.
• I like not having to build transports to send armies overseas.  This certainly will make oceans a less formidable barrier to conquest, which I think is good.
• Can’t comment yet about balance or unbalanced strategies, not far enough along, but am very happy so far.

This is pretty interesting — OK Cupid did a phrase-frequency count in its online dating ads and were able to sort them by race and gender, and then identify those phrases that the particular race-gender combination used most uniquely.  Its kind of amazing just how much the analysis might fit your stereotyped guesses.  Among many others, horseback riding, baths, and Jodi Picoult for white women, with Tom Clancy, Harleys and Soundgarden for white men.  Check it out here.  (hat tip Flowing Data)

Read this story, and then imagine if the facts had been reversed:

“A sports conference that always scheduled weekday basketball doubleheaders in which women’s teams played the first game — letting the men play in the later time slot — has altered the practice, after an anonymous sex discrimination complaint charged that this made the women’s games appear to be a “warm-up” act for the men’s games.

Now, hoping to avoid possible gender equity suits, other athletic conferences are considering similar scheduling changes.  Last month, the Great Lakes Intercollegiate Athletics Conference announced that it would alternate from season to season the order in which men’s and women’s teams would play in doubleheaders. The men will play first this season, and the women will play first next season.

Dell Robinson, the conference commissioner, said the decision was made after the league received an inquiry in March from the U.S. Department of Education’s Office for Civil Rights. An anonymous complaint filed with the agency argued that the negative connotation conveyed by always having women’s teams play first in these doubleheaders was detrimental to women’s athletics.”

So let’s imagine a alternate world where women’s basketball games had always traditionally been played in the second game of the double-header, after men’s games.  Does anyone believe that the civil rights folks wouldn’t have filed a complaint saying

Having women’s games always played after men’s games makes them appear to be an after-thought to the main contest, positioning the game later in the prime social hours where potential student fans will be more likely to leave early and head to the bar instead of staying to watch.  The negative connotation conveyed by always having women’t teams play last in these doubleheaders is detrimental to women’s athletics.

See, its easy to be a race/gender advocate.

Apple’s response to their antenna / reception issues appears to be:  the other guys started it.  via Engadget

Update: I thought this was funny

Despite the issues, Mr. Jobs called the antenna design the “most advanced” ever on a smartphone. He said the rate of dropped calls for the iPhone 4 was only slightly more than on the previous version, the iPhone 3GS.

So the “most advanced” version performs worse than the old version.  How are we using the term “advanced” here?  No horse in this race personally, as I have a Motorola Droid.

I have had a bunch of people send me this article defending Arizona’s SB1070, our now infamous immigration law.  A couple of responses:

1.  I have never been wildly worked up by SB1070 after it  was amended a week or so after its initial passage.  I have used the debate around SB1070 to reiterate my case, particularly to Conservatives, for more open immigration.  Our immigration laws are prohibition redux, though in this case we are messing with people’s desire to work rather than drink.  As such, the laws to enforce the prohibition are less important to me than the fact of prohibition itself.   IOur immigration laws are an incredible restriction on commerce, free labor markets, and even private property (SB1070 redefines trespassing as not having the government’s, rather than the private owner’s, permission to be on a piece of property), and this is true with our without SB1070.

I would likely have dropped SB1070 coverage a while ago had it not been for the rhetoric that is used by SB1070 supporters.  When our governor is saying that the majority of Arizona’s 500,000 illegal immigrants are all drug mules, that none of them are really looking for honest work, and that all they do is cause crime up to and including beheadings in the desert, I get angry to hear the same stupid arguments that many of our grandparents heard about their ethnic groups (though the beheading thing seems to lack historical precedent).  (more on the immigration non-crime wave here).

2.  The language of SB1070 has never matched the arguments supporting it.  SB1070 mainly gives the police power to be more intrusive at certain traffic stops and harass day labor centers.  What in the heck does this have anything to do with drug cartels and armed paramilitary gangs on the border?  If, as our governor says, illegal immigrants are not really looking for legitimate work, then why is most of our enforcement via employers offering legitimate work?

3.  When Kris Kobach says “In four different sections, the law reiterates that a law-enforcement official ‘may not consider race, color, or national origin’ in making any stops or determining an alien’s immigration status,” he is ignoring reality.  The law asks police to make a determination (e.g. probable cause that one is an illegal immigrant) that is impossible for actual human beings to make without such profiling.  It’s like passing a law that says “police must drive their cars 30 miles a day but can’t drive their cars to do so.”  The reality on the ground here in Arizona is that, illegal or not, Sheriff Joe Arpaio has been using racial profiling to make arrest sweeps for years, and his officers have become masters at finding some pretext to pull over a Mexican they want to check out  (e.g. the broken tail light).   Words in this law about racial profiling are not going to change anything.

4.  Kobach makes much of the  revision of the law, post-passage, to narrow the circumstances under which police can stop and check for immigration status

But Section 2 of S.B. 1070 stipulates that in order for its provisions to apply, a law-enforcement officer must first make a “lawful stop, detention, or arrest . . . in the enforcement of any other law or ordinance of a county, city or town or this state.”

The original wording made reference to “lawful contact”; this was revised to “lawful stop, detention, or arrest” to make clear that officers could not stop someone simply on suspicion and ask for his papers.

There are folks, including most in the Obama administration, that are still criticizing the original “lawful contact” language and need to catch up.  However, this seems a thin branch for Kobach to stand on in lashing out at the law’s critics.  Because in fact this over-broad language did pass and get signed into law, and only the immediate and vociferous public backlash against the language caused it to be changed.  Kobach acts like it was changed based of some internal discussion or discovery of error, but in fact “lawful contact” was how Kobach himself helped write the law and wanted it to read, and was supporters like himself were forced to change it only after a lot of vocal opposition.  Its disingenuous to use the modified language as defense against critics when it was only due to the critics that the modified language was inserted.

At this point, I am done criticizing SB1070.  It is not a great law but it is not particularly worse, in its current form, than laws in some other states or federal law.  I don’t really anticipate that it will get struck down by the Supreme Court, though its enforcement may be enjoined through the hearing process.

However, I am not done criticizing our prohibitionist immigration regime nor am I done calling out those on the eliminationist side of the debate, like Jan Brewer, who are starting to show their true stripes as the debate proceeds.  I know some of you are tired of it and to some disagree with me, such that I have lost about half my readers over this.  But this debate has been an eye-opener to me.

For years I have taken many of the AZ politicians at their word that they had no problem with Mexicans per se but were concerned with the load on social services and other government budgets.  I understand how the intersection of immigration and the welfare state causes problems, and have proposed solutions to deal with them.  I am willing to have a friendly agree-to-disagree discussion with such folks.  But when our leaders are talking about 500,000 drug mules and mysterious beheadings and crime waves that somehow exist in a state with rapidly falling crime rates, its clear to me something more insidious is driving some of the folks in the debate.

Exclusionist Conservatives in Arizona are quick to defend themselves against charges of racism.  While I tend to be an pro-immigration hawk, I accept that there are issues, such as the conflict of immigration and the welfare state, where reasonable people can disagree as to solutions without any hint of racism charging the debate.  I really, really resist playing the race card on anyone.

However, if Conservatives really want to discourage charges of racism, they need to  stop playing on fears of immigrant crime as a main argument in their case (example from Expresso Pundit).  Such fears of minority group violence are part and parcel of every racist position in history.   The out-group is always vilified as criminal, whether it be blacks in the 60′s or Italians and Eastern Europeans earlier in the century or the Irish in the 19th century.

There is no evidence either recently or throughout history of immigrant-led crime waves, and in fact as I wrote the other day crime rates in Arizona are improving throughout this “invasion” at a faster rate than the US average. So when Conservatives grab a single example, such as the Pinal County shooting  (for which no suspects have been identified) as “proof” we need immigration reform, they are no different than Al Sharpton grandstanding based on the Tawana Brawley case  (and possibly these cases could be even more similar, update: or perhaps not).

Stop trying to manufacture a crime spree that does not exist.  Sure, illegal immigrants commit some murders.  So do every other group.  There is no evidence they commit such murders at a disproportionate rate.  And yes, I understand there are violent, paramilitary gangs roving Northern Mexico, which currently is in a state of chaos, that we really don’t want to spill over into Arizona.  But this has been a threat for years, and for all the fear, there is no evidence that they are somehow increasing their activities here.  And even if they were, laws that give Joe Arpaio additional power to harass day laborers in Phoenix are sure as hell not going to scare them off.

The most important news, I suppose, is that Arizona has made its new immigration law more palatable with a few changes.

The first concerns the phrase “lawful contact,” which is contained in this controversial portion of the bill: “For any lawful contact made by a law enforcement official or a law enforcement agency…where reasonable suspicion exists that the person is an alien who is unlawfully present in the United States, a reasonable attempt shall be made, when practicable, to determine the immigration status of the person…”  Although drafters of the law said the intent of “lawful contact” was to specify situations in which police have stopped someone because he or she was suspected of violating some other law — like a traffic stop — critics said it would allow cops to pick anyone out of a crowd and “demand their papers.”

So now, in response to those critics, lawmakers have removed “lawful contact” from the bill and replaced it with “lawful stop, detention or arrest.” In an explanatory note, lawmakers added that the change “stipulates that a lawful stop, detention or arrest must be in the enforcement of any other law or ordinance of a county, city or town or this state.”

“It was the intent of the legislature for ‘lawful contact’ to mean arrests and stops, but people on the left mischaracterized it,” says Kris Kobach, the law professor and former Bush Justice Department official who helped draft the law.  “So that term is now defined.”

The second change concerns the word “solely.”  In a safeguard against racial profiling, the law contained the phrase, “The attorney general or county attorney shall not investigate complaints that are based solely on race, color or national origin.”  Critics objected to that, too, arguing again that it would not prevent but instead lead to racial profiling.  So lawmakers have taken out the word “solely.”

“There were misstatements by the opponents of the law that this was written to permit some consideration of race in the enforcement of this law,” says Kobach, “and that’s not the case at all.”

It is hard for me to separate in my mind whether the problem I have with what remains is really with this law or with the individuals whom I know to be tasked with its enforcement.  Sheriff Joe Arpaio has a history of pulling over every Mexican he runs into with a broken tail light on his crime sweeps, so in actual practice, the requirement of there being some other crime involved doesn’t do much to make me fear profiling any less.  But its hard for me to say that checking immigration status of people arrested or detained is unreasonable, so it may be I am just uncomfortable with the overzealous enforcements and Sheriff Joe’s patented crime sweeps.  (I am still opposed to the socialist definition of property rights that conservatives have adopted in the law).

I thought Megan McArdle had an interesting point:

If the immigration problems in Arizona are really so serious that they merit deep intrusions upon the liberty of citizens who happen to resemble illegal immigrants, than they are serious enough to intrude on the liberty of everyone.  Don’t make the cops check the status of anyone who they “reasonably suspect” is illegal; make them check the status of everyone, no matter how blond-haired, blue-eyes, and fluent in standard American english they may be.  If you forget your license at home, the police detain you, just like they detain anyone of mexican descent, while someone fetches it.  If you can’t produce a birth certificate, passport, or similar, then you wait in the pokey until they can verify your legal status.  No police discretion.  No profiling.

We can illustrate McArdle’s point with an example, where our sheriff’s descended on a local business and zip-tied and detained anyone who looked Hispanic until they could produce proof of immigration status.  No Anglos at this location were treated the same way:

Deputies from the Maricopa County Sheriff’s Office raided a Mesa landscaping company early Wednesday morning, arresting nearly three dozen people suspected of being in the country illegally.

The raid on offices of Artistic Land Management, on Main Street just west of Dobson Road, happened about 4:30 a.m., according to one worker who was handcuffed and detained before being released when he produced documentation that he was in the country legally….

Juarez estimated about 35 workers were handcuffed with plastic zip-ties while deputies checked for documents. Those who could provide proof they were in the country legally were released, while others were put on buses and taken away.

This is something the bill supporters just don’t want to deal with — the ugly sight of all the brown skinned workers at a location separated out from their peers and zip-tied until they can produce the proper government papers.

Daniel Griswold of Cato offered what I thought was an excellent framework for thinking about immigration and immigration reform:

Requiring successful enforcement of the current immigration laws before they can be changed is a non sequitur. It’s like saying, in 1932, that we can’t repeal the nationwide prohibition on alcohol consumption until we’ve drastically reduced the number of moonshine stills and bootleggers. But Prohibition itself created the conditions for the rise of those underground enterprises, and the repeal of Prohibition was necessary before the government could “get control” of its unintended consequences.

Illegal immigration is the Prohibition debate of our day. By essentially barring the legal entry of low-skilled immigrant workers, our own government has created the conditions for an underground labor market, complete with smuggling and day-labor operations. As long as the government maintains this prohibition, illegal immigration will be widespread, and the cost of reducing it, in tax dollars and compromised civil liberties, will be enormous.

It turns out that after excoriating the Arizona law as being too intrusive, Democrats have responded with … something even more intrusive.

Sometimes I just love the Democrats.  After fomenting a near meltdown over the Arizona immigration law, with charges of nazism and cries of “show me you papers!” flying hither and yon, the Democrats introduce an immigration framework with what?

Improved papers, of course.

Yes, the Dems screwed the pooch and included a national ID card in their proposed legislation.  And a biometric one at that.   As someone characterized it, it’s a “super Social Security card”.  Remember when you were assured that your SS card/number was not for identification purposes and never would be.  Well Bunky, that was as true as most of the promises politicians make.

Democratic leaders have proposed requiring every worker in the nation to carry a national identification card with biometric information, such as a fingerprint, within the next six years, according to a draft of the measure.

As a final note, for years I have asked strong exclusionist conservatives how they square their opposition to immigration with their desire for freedom of contract and exchange.  After all, if commerce is free, do I not have the right to hire anyone I want for a job, no matter where that person was born.  Why do Conservatives want to require that all workers have government licenses before they can be hired?  It turns out that the ACLU makes the same point in response to the above proposal (from the link above, emphasis added):

“Creating a biometric national ID will not only be astronomically expensive, it will usher government into the very center of our lives. Every worker in America will need a government permission slip in order to work. And all of this will come with a new federal bureaucracy — one that combines the worst elements of the DMV and the TSA,” said Christopher Calabrese, ACLU legislative counsel.

Note to Conservatives– when the ACLU, founded by Marxists and which to this day resists recognizing property rights, gets out ahead of you on the rights to free exchange and commerce, you are in trouble.

Update:  More from Brad Warbiany and Matt Welch

I wrote a while back that I had a real hard time getting excited about either McCain or Hayworth in this year’ s AZ senate race.  But despite my disaffection from both candidates, I may have to suck it up and vote for one or the other.  Via Valley Fever:

Michael Moore Says He’s Not Coming Back to Arizona Until State “Elects a Democrat as Senator”

Moore is nothing if not able to suppress his beliefs when money is on the line, so I have a guess we will continue to see him at Sundance despite the lack of a Utah Democrat in the Senate.

I think my post from Inauguration Day one year ago holds up pretty well, though I caught a lot of grief for it at the time  [a few spelling errors fixed]

OK, I was really going to remain silent today, because no one seems to want to hear a rant about today’s imperial coronation.  But as I sit here watching the press coverage and waiting for John the Baptist to show up, and as I observe the general cultish hysteria and the swooning of normally serious adult people, I just can’t help myself.  For a libertarian like myself, its like watching people line up at 3am to be the first to be in the store when McDonald’s switches its fountain drinks from Coke to Pepsi.   Heck, I was creeped out by the cult following of Ron Paul this year, a politician I agree with a lot, so I certainly am going to get the willies from the love-fest for an admitted statist like Obama.

I am not enough of a historian to speak for much more than the last thirty years, but the popularity of non-incumbent political candidates has typically been proportional to 1) their personal charisma and 2) our lack of knowledge of their exact proposals.  Seriously, can you name any other difference (on the plus side) between Obama and Hillary other than these two?  We forget, but GWB was the unknown newcomer in 1992.  As was Clinton and Carter.  Reagan was an exception, but was running against an incumbent who really had a terrible four years, and Bush I was an exception as well, though he was running against one of the weakest candidates and campaigns the Democrats have fielded in 50 years.  Folks are excited about Obama because, in essence, they don’t know what he stands for, and thus can read into him anything they want.  Not since the breathless coverage of Geraldo Rivera opening Al Capone’s vault has there been so much attention to something where we had no idea of what was inside.  My bet is that the result with Obama will be the same as with the vault.

There is some sort of weird mass self-hypnosis going on, made even odder by the fact that a lot of people seem to know they are hypnotized, at least at some level.  I keep getting shushed as I make fun of friends’ cult behavior watching the proceedings today, as if by jiggling someone’s elbow too hard I might break the spell.  Never have I seen, in my lifetime, so much emotion invested in a politician we know nothing about.   I guess I am just missing some gene that makes the rest of humanity receptive to this kind of stuff, but just for a minute snap your fingers in front of your face and say “do I really expect a fundamentally different approach from a politician who won his spurs in …. Chicago?  Do I really think the ultimate political outsider is going to be the guy who bested everyone at their own game in the Chicago political machine?”

Well, the spell will probably take a while to break in the press, if it ever does — Time Magazine is currently considering whether it would be possible to put Obama on the cover of all 52 issues this year — but thoughtful people already on day 1 should have evidence that things are the same as they ever were, just with better PR.   For God sakes, as his first expenditure of political capital, Obama is pushing for a trillion dollar government spending bill that is basically one big pork-fest that might make even Ted Stevens blush, a hodge-podge of every wish-list of leftish lobbyists that has been building up for eight years.  I will be suitably thrilled if the Obama administration renounces some of the creeping executive power grabs of the last 16 years, but he has been oddly silent about this.  It seems that creeping executive power is a lot more worrisome when someone else is in power.

It has been suggested by some that today is less a cultish coronation but a big victory party in the battle against racism.  Well, I am certainly willing to accept it on those terms.  I have been arguing for years that it is time to declare victory on the worst aspects of race and gender discrimination, and move on to problems of interest to all races (like individual freedom or giving kids options to escape crappy public schools).   Unfortunately, I fear that too many folks in power are dependent on the race/gender/class wars continuing, so you and I may think we are declaring victory, but those with power over our lives have not.

Via the Dallas Morning News:

A last-minute change in the federal health care bill ditched a proposed 5 percent tax on cosmetic medical procedures and replaced it with a 10 percent tax on indoor tanning services.

Goodbye Botox tax. Hello tan tax.

This seems really random.  Why should either of these businesses foot a special, disproportionate share of my health care bill?  Well, things that seem random to most of us make perfect sense in Congress.

The tan tax popped up in the health care bill last weekend after powerful medical lobbies – including the American Academy of Dermatology Association, American Medical Association, American Society of Plastic Surgeons and Botox-maker Allergan – persuaded Congress to remove a tax on cosmetic medical procedures and replace it with a 10 percent surcharge on indoor tanning services.

Lobbyists are very good at punching political hot-buttons.  Since they couldn’t argue that botox is “for the children,” and since it is generally used by rich white people they could not place the race or class card, they played the only card they had:

“Since 90 percent of cosmetic surgery patients are women, this would have been a very discriminatory tax,” said White, who opposed the cosmetic surgery tax.

Technocrats want to believe, and perhaps honestly believe themselves, that care guidelines in the new Federal health care system will be science-based.  What possible basis do they have for thinking that?  We have 50 state laboratories, where states specify must-carry rules on procedures, and not a single one of these lists are science based – they are loaded with special interest handouts.   I even show in this post how special interests give money to academia to produce studies whose entire conclusion is that certain procedures (performed by the special interest group funding the study) need to be in the minimum coverage laws.   The very first time out, when confronted with a science-based care recommendation (that women not receive breast cancer screening until after 50), the Congress specifically overrode it in the bill under a firestorm of public outcry.

But maybe the dermatologist guys are really looking after us?  After all:

The American Academy of Dermatology warns of significant health risks caused by indoor tanning.

But, as it turns out, it only sees health risks in the use of ultra-violet light by practitioners who are not members of their trade group.  I have bolded the key passage that gives away the game.

Indoor tanning industry groups note that dermatologists use tanning equipment in their offices for cosmetic skin conditions, such as eczema and psoriasis, in phototherapy treatments that cost up to $100 per visit billed to health insurance companies. In contrast, indoor tanning salons cost as little as $6 to $20 per session.

The tan tax would exempt phototherapy services performed by a licensed medical professional.

“This is like Coke being allowed to lobby the government to tax Pepsi, but that Coke be allowed to sell the same product and not be taxed for it,” International Smart Tan Network Vice President Joseph Levy said in a statement. “It’s unbelievable.”

I hardly know what to do with this.  When this is a pressing enough gender issue to demand NOW’s attention, perhaps it is time to declare victory and move on to weightier topics.

A couple of weeks ago, President Obama had members of his cabinet, as well as members of congress, including Flake, over to the White House for a game of hoops.

They were all men.

Sounds like the boys had some fun but If you ask the “Debby Downers” from women advocacy groups like the National Organization for Women, the games lack of estrogen is unacceptable.

“Relationships get built in those more informal settings,” NOW President Terry O’Neill told ABC News, “and the relationships have a huge impact on the influence an individual has. We know what happens when we segregated whether it by race or whether it by gender — you end up with 1st class citizens and you end up with 2nd class citizens.”

Fortunately we have moved beyond quotas.  Not.

“It’s extremely important, now especially, for the president to have as many women as men in his closest circle of advisors. … If women had been at the heads of the companies on Wall Street instead of these masters of the universe then we might not be in the predicament that we’re in today,” O’Neill says. “[The ratio of women to men] needs to be 50/50. Women are 52 percent of the voting public so obviously there needs to be 50/50 of any Cabinet.”

I will be counting the men at the next baby shower.

In the US last year, 754,224 people were arrested for possession (not dealing or production) of marijuana.  By the logic of US drug laws, all of these folks are better off with an arrest record and possible incarceration that they are from the nominal negative effects of smoking marijuana (FBI report here, via Radley Balko).  These numbers are just insane.  And while the report only gives race numbers for total drug arrests rather than for just marijuana offenses, a hugely disproportionate number are black (over 1/3 of arrests).

And speaking of equal protection, the arrest numbers for gambling are eye-opening (table 43).  75% of all people arrested for gambling last year in the US were black, including 90% of the arrests of those under 18 for this offense.  It seems it is A-OK for whites to play poker at home for money (I’m guilty) or to bet in Super Bowl pools (guilty again) or to clad themselves in polyester and head to the casino boat, but blacks who choose to compete with the state gambling/lottery monopoly will get arrested.  As an aside, I have always laughed at the government piously suing tobacco companies for targeting minorities with their advertising and then using the same techniques themselves to target minorities for their lottery sales.

Like Franken, I can freehand draw the US with all fifty states from memory.  But I start from the opposite corner, in Washington state.  But, I can also drink a beer while standing on my head, and used to (when I played rugby) race people saying I would drink one upside down in the time they drank two normally.