Year: 2016

It Appears That There Never Was a Barter Society

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One of the historical tropes that we we are taught is that money developed after barter societies became unmanagable.

It turns out that there there is no evidence that suggests that a barter society ever existed:

In the beginning, there was barter. Then, and forever after, there was money

That’s the myth every student of economics learns, that money grows out of barter. The idea is that monetary exchange solves the problem of the double coincidence of wants—that a person who is interested in trading needs to find someone who wants what they have and has what they want. Money makes trade much easier, so the story goes, and thus becomes a remarkable example of both human ingenuity and economic progress. The fact is, as Ilana E. Strauss [ht: ja] explains, the story is false. Human beings did not invent money to solve the difficulties of barter exchange. Barter turns out to be a historical myth.

various anthropologists have pointed out that this barter economy has never been witnessed as researchers have traveled to undeveloped parts of the globe. “No example of a barter economy, pure and simple, has ever been described, let alone the emergence from it of money,” wrote the Cambridge anthropology professor Caroline Humphrey in a 1985 paper. “All available ethnography suggests that there never has been such a thing.”

 Humphrey isn’t alone. Other academics, including the French sociologist Marcel Mauss, and the Cambridge political economist Geoffrey Ingham have long espoused similar arguments.

 When barter has appeared, it wasn’t as part of a purely barter economy, and money didn’t emerge from it—rather, it emerged from money. After Rome fell, for instance, Europeans used barter as a substitute for the Roman currency people had gotten used to. “In most of the cases we know about, [barter] takes place between people who are familiar with the use of money, but for one reason or another, don’t have a lot of it around,” explains David Graeber, an anthropology professor at the London School of Economics.


 ………

 And there are many other examples in the historical and anthropological record of forms of exchange that precluded money—centralization and redistribution, gifts, potlatch, trade at the edges of and between non-monetary societies, and so on. But there was no original barter economy, which was then surpassed by the use of money.And there are many other examples in the historical and anthropological record of forms of exchange that precluded money—centralization and redistribution, gifts, potlatch, trade at the edges of and between non-monetary societies, and so on. But there was no original barter economy, which was then surpassed by the use of money.

 ………

Instead, what mainstream economics offers starting with Smith, and continues to offer studies today, is a story about the mythical—not real, historical—origins of capitalism.

It does put the entire academic endeavor of economics in a different light.

Nothing to See Here, Move Along

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Is anyone surprise that the guests on Chris Matthews’ show Hardball have given over 75 thousand dollars to his wife’s campaign?

It’s an interesting racket:

One day last June, MSNBC’s Chris Matthews opened his show with some news: His wife, Kathleen Matthews, a former local news anchor and Marriott hotel executive, had announced a run for Congress, seeking to replace Chris Van Hollen in Maryland’s 8th District. Matthews enthusiastically endorsed his wife’s candidacy, and vowed to “offer Kathleen whatever help I can.”

The longtime host of Hardball added: “As a journalist, I also know how important it is to respect certain boundaries on my support for her both in my public role and here on MSNBC. And while most of you know that our show doesn’t typically cover congressional races, I will continue to fully disclose my relationship with her as part of MSNBC’s commitment to being transparent and fair in our coverage.”

In the ensuing months, Kathleen’s name has rarely come up on Hardball. But many of the guests on the show have become generous donors to her campaign. And the transparency Matthews promised has not extended to mentioning that to his audience.

Using Federal Election Commission data and Hardball transcripts, The Intercept has identified 48 frequent guests of Matthews’s program who have made donations to the Kathleen Matthews for Congress campaign. These individuals, their spouses, or their political action committees donated $79,050 as of December 31, 2015 — about 5 percent of the $1.5 million Matthews had raised as of that time.

Some of the guests made the donations after they were on the show — in some cases, long after. But in at least 11 of these cases, the Hardball guests appeared on the program after Kathleen Matthews announced her candidacy, and without any disclosure of the donations. And in at least three of those cases, the donations came within days of the MSNBC appearance.

As Atrios would say, “Time for another blogger ethics panel.”

It’s Bank Failure Friday!!!

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We have the first commercial bank failure of the year:

  1. North Milwaukee State Bank, Milwaukee, WI

Full FDIC list

The failures of credit unions continue apace (actually from last week, sorry):

  1. Education Associations Federal Credit Union, Washington, DC

Here is the Full NCUA list.

No graph pr0n, it would be kind of silly with only one commercial bank failure.

Not clear why credit union failures are outpacing commercial bank failures.

She Said What?!?!?!?!

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In an interview with Andrea Mitchell Hillary Clinton praised Nancy Reagan’s “Low key activism” on HIV/AIDS.

While I fully understand the desire not to diss the Nancy on the day of her funeral, this bit of “Can’t we all just get along,” historical revisionism is completely repulsive:

In an interview conducted at Nancy Reagan’s funeral today, Hillary Clinton recounted a version of history that didn’t happen, lauding the former first lady’s “low key advocacy” for the cause of HIV/AIDS awareness. “Low key” is one way of putting it. In fact, the Reagan White House is infamous for its lengthy, deadly silence on the epidemic.

 Clinton’s remarks came after an extended explanation of Nancy Reagan’s efforts to expand stem cell research after her husband was diagnosed with Alzheimers. Then, in a bizarre turn, Clinton began talking about AIDS in the 1980s, a topic anyone looking to remain civil and complimentary would go far out of their way to avoid at the funeral of Nancy Reagan:

“It may be hard for your viewers to remember how difficult it was for people to talk about HIV/AIDS in the 1980s. And because of both President and Mrs. Reagan, in particular, Mrs. Reagan, we started national conversation when before no one would talk about it, no one wanted to do anything about it, and that too is something that really appreciated, with her very effective, low-key advocacy, but it penetrated the public conscience and people began to say ‘Hey, we have to do something about this too.’”

It’s almost tempting to interpret this as withering, devastating sarcasm—the Reagans “started a national conversation about AIDS” in the same sense that George W. Bush “started a national conversation” about Iraq.

 In reality, the Reagans were infamously, disastrously silent on AIDS—as President, Ronald Reagan spoke more about UFOs than HIV, and didn’t even say the word in a public address until 1987, by which point it had killed tens of thousands of Americans. The virus was quite literally a joke inside the Reagan White House. Whatever “advocacy” of Nancy’s Clinton is dreaming up here must’ve been low-key to the point of non-existence—just last year it was reported that she ignored her Hollywood friend Rock Hudson’s pleas for help as he himself died from AIDS. It’s hard for one ugly episode to stand out among so many ugly aspects of the Reagan administration, but Nancy and Ronald’s deliberate silence on one of the defining public health crises of the era is surely near the top of any list. What Clinton is saying isn’t just untrue, but erases the deadly legacy of the Reagan era.

The most charitable way to describe the Reagan administration’s behavior on the AIDS crisis is as an atrocity.

Once this blew up, Clinton walked it back, but this comment is indefensible:

Hillary Clinton’s statement on her comments about the Reagans’ record on HIV and AIDS: pic.twitter.com/RtIs0zpJfk

— Hillary Clinton (@HillaryClinton) March 11, 2016

I can’t figure out whether this is a moment of mind-boggling stupidity, or if she was trying to pander to the right in the hope of picking up a few votes.

In either case, particularly when juxtaposed with her late to the game support of gay marriage, this is a major f%$# up.

For anyone interested in LGBT issues who is still on the fence, this is a push to Bernie Sanders.

A Lesson That We Should Learn from Russia

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They know how to properly hate on mercenaries:

On Jan. 28, the Duma began discussing the possibility of legalizing private military companies in Russia. The law, which counts influential vice prime minister Dmitry Rogozin as a supporter, has one major goal — to ensure that Iraqi oil fields where Russian firms Rosneft and Gazprom operate no longer come under the protection of British or American security companies.

Back in April 2012, Russian president Vladimir Putin pointed out the need for Russia to pass contractor-friendly legislation. Putin praised private military companies as “instruments to further national interests without the direct involvement of the government.”

The center-left A Just Russia Party proposed a draft of the PMC bill in November 2014, but the Duma defense committee rejected it. Members of parliament returned with a revised text in December 2014, which the committee again turned down, deeming it “inarticulate,” “useless” and “irrelevant.” The FSB security agency and the Ministry of Defense both voiced concern of one day seeing “tens of thousands of uncontrollable Rambos turning their weapons against the government.”

It seemed Russian authorities had not forgotten the chaotic 1990s, a time when countless unpaid military officers sold their services to the highest bidder.

For some reason, the US government, and our poodles in London, continue to be all in on employing mercenaries, even though the corrosive effects of their activities both on our military and on the countries where they operate.

Didn’t Expect This to Appear in Fortune Magazine

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This essay eviscerates the claims by the finance industry that it needs to cheat its customers to function:

There’s a horrendous lie being told by the brokerage industry and its army of lobbying groups. It goes something like this:

“Middle-class Americans are not worth serving if we can’t charge them egregious fees and sell them products that they do not need.”

They’re not using that exact language, but this is precisely what they’re saying. This message disgusts me personally and I’m in a unique position to comment on it professionally. As I documented in my book Backstage Wall Street, the business model of selling investment products to investors is hopelessly rife with conflicts.

………

In other industries, higher-priced products are typically superior in both quality and efficacy—think luxury watches and cars, or the difference between a roadside motel and the Ritz-Carlton. With financial services products, however, it works in exactly the opposite way. Virtually every single piece of academic research ever produced on the topic says that the less you pay for an investment product, and the simpler it is, the better off you’ll be over the long-term. 

Wall Street knows this for a fact. It’s undeniable that high fees and excessive trading costs damage the long-term potential of a retirement account and work against investors. Unfortunately, the brokerage business is predicated on selling the higher cost solutions because that’s where the profit margins are. The incentives paid by fund companies to brokerage firm sales forces across the country are a cancer that must be rooted out. This built-in conflict between advisor and client is partially responsible for the nation’s looming retirement crisis. It also plays a role in the finance industry’s almost universally negative perception among Americans.

………

The logic here is astounding. The argument is literally that some people need to be taken advantage of in order for them to be worthwhile clients. I believe Ryan is on the wrong side of this issue and on the wrong side of history. But more than that, his argument—that somehow conflicted advice is better than none at all—is wrong for at least two reasons.

It’s a righteous rant.  I suggest that you read the rest.

Lawmakers in West Virginia Pass a Bill Legalizing Raw Milk, and Toast their Success With Raw Milk………

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Then they proceed to make the state house resemble the sets in The Wild Bunch if the film had been directed by John Waters instead of Sam Peckinpah:*

In West Virginia, farmers and fans of raw milk celebrated this week as the governor signed a bill that, among other things, legalizes the sale of raw milk to consumers. Some delegates celebrated by drinking cups of raw milk from a local farm, or at least tasting it. Some of them are now sick with a mysterious gastrointestinal illness. Is it a coincidence or deep irony?

 ………

 Cadle himself was out with a stomach bug on Monday, but he and others point out that a similar illness had been circulating around the state capitol building for weeks. “It ain’t because of the raw milk,” he told the Charleston Gazette-Mail. “With that many people around and that close quarters and in that air and environment, I just call it a big germ.” The illness includes diarrhea, vomiting, and a fever, and sounds like our old fast-spreading pal norovirus.

………

 Health officials are investigating the milk incident.

This is just too perfect.

*Not my bon mot. I adopted this from Paul T. Riddell essay, The Attack of the Mad Sh%$ter.

India Can Go Cheney Itself

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India is taking the US to the WTO over the increase in fees for H1B visas:

India has complained to the World Trade Organisation (WTO) about the United States’ decision to increase visa application fees.

The USA last year doubled the fee required to apply for an H1-B visa, a class of temporary visa for skilled workers. Fees rose to US4,000 per application.

Indian technology companies have complained long and loud about the cost of H1-B visas, arguing that they need to bring workers from India to the USA to grow their businesses. US businesses retort that Indian companies could hire locals with comparable skills, but prefer to import people who they pay lower wages.

………

India’s now formally complained to the WTO, which sets the clock ticking on a 60-day mediation process. If nothing can be resolved, the WTO can rule on the dispute.

If I had my druthers, I’d shut the whole program down.

It’s rife with abuse, and depresses wages in technical fields in the United States.

Don’t Call Him the 5th Beatle, He Hated That

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Legendary Beatles producer George Martin is dead at age 90:

George Martin, who produced much of the Beatles‘ classic catalog, has died. The cause of death has not yet been released. He was 90.

 Ringo Starr reported the news on Twitter. “God bless George Martin,” he wrote late Tuesday night. “Peace and love to Judy and his family, love Ringo and Barbara. George will be missed.” In another post, accompanied by a photo of Martin with the Beatles, Starr wrote, “Thank you for all your love and kindness.”

 Over the decades, many people have claimed to be the “fifth Beatle.” But the only person who can credibly hold that title was Martin. The producer not only signed the Beatles to their first record contract in 1962 but went on to work extensively with them on the vast majority of music they recorded over the next eight years, from “Love Me Do” to the majestic suite that wrapped up Abbey Road.

 ………

 One of the many remarkable things about Martin is that he managed to produce highly complex, layered pieces of music like Sgt. Pepper Lonely Hearts Club Band, using a mere four-track recorder. “I felt that was the album which turned the Beatles from being just an ordinary rock & roll group into being significant contributors to the history of artistic performance,” Martin wrote in his memoir. “It was the watershed which changed the recording art from something which will stand the test of time as a valid art form: sculpture in music, if you like.”

In 2011, Martin looked back fondly on his time with the Beatles. “I think they’re so damn good they’ll be with us for generations, into the middle of the next century,” he said. “They’re just great musicians and great writers, like Gershwin or Rodgers and Hammerstein. They are there in history, and the Beatles are there in history, too. They’ll be there in 100 years, too. But I won’t be.”

Also, read Paul McCartney’s tribute to Martin.

How to Deal With Blackmail

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Turkey is (rather successfully) attempting to blackmail Europe over their handling of the refugee crisis:

Shopping in a Turkish bazaar is never wise for the novice.

The EU learned that lesson the hard way when it discovered the carefully crafted refugee deal it believed it had sold to Turkish leaders in the run-up to Monday’s summit turned out to be little more than the beginning of the negotiation.

Turkey made Europe a counter offer early Monday that six months ago would have prompted EU negotiators to get up and walk out. To European eyes, the proposal Ankara put on the table read more like a ransom note: €3 billion in refugee aid in addition to the €3 billion already pledged, full-scale visa liberalization for Turkish citizens in the EU by June, an acceleration of Turkey’s application to join the bloc as well as a pledge to resettle many of the Syrian refugees Turkey takes in.

Turkey’s message to Europe was clear: You need us more than we need you.

That Europe is not just considering the Turkish proposal, but is likely to end up accepting most, if not all of it, is testament to the desperation of the Union and its largest member, Germany, to secure a deal to limit the flow of refugees and end a crisis that is testing EU solidarity like nothing in its history.

Seeing as how Erdogan is trying to turn Turkey into an theocratic dictatorship, you don’t want to do things like speed Turkey’s entry into the EU.

The way I see this, there are two options:

  • Roll over.
  • Start sending large numbers of Turks home to “make space for the refugees”, and  clamp down on remittances, which cripples the Turkish economy.

I recommend that the leaders of Europe choose the 2nd option.

Using Turkish gastarbeiters as human shields is not a particularly laudable thing, but the Turks are using the Syrian refugees as human shields as well, and Turkey continues to support ISIS and Al Qaeda affiliates driving the refugee flow in Syria.

The Turks won’t stop fomenting the civil war in Syria, nor trying to exploit and exacerbate the refugee crisis until the cost to them become prohibitive.

Debbie Wasserman-Schultz Needs to Be Fired ……… Out of a Cannon and into the Sun

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Among the audience members at the Democratic debate in Flint, was the Mayor of Warren.

He’s a Sanders supporter, and Debbie Wasserman-Schultz had him threatened by event security because he was a Bernie supporter:

After expressing vocal support for Bernie Sanders during Sunday night’s debate, the independent mayor of Michigan’s third largest city says security warned him that he would be booted from Sunday’s Democratic debate here if he did not quiet down.

Jim Fouts, the three-term independent mayor of Warren, told BuzzFeed News Monday that he attended both the Republican and Democratic debates in Michigan over the past week. The audience at the GOP debate at the Fox Theatre in Detroit Thursday was loud. But the mood in the Whiting Auditorium on the campus of the Flint Cultural Center, where Sanders and Hillary Clinton met in one of their sharpest-elbowed debates to date, was very different, he said.

“The Democratic debate is totally controlled by Hillarys [sic] good friend DNC Chair Debbie Wasserman Schultz,” Fouts wrote on Facebook Monday. “No commentary is allowed by the audience. Particularly if you are cheering Bernie Sanders. Persons who do not adhere to Hillarys [sic] rules are threatened with expulsion.”

Fouts has not officially endorsed Sanders, but he is a big fan. He told BuzzFeed News that if he does vote in Tuesday’s Democratic primary, “it’s going to be for Bernie Sanders.”

At the debate, Fouts sat in the center section of the hall, directly behind Wasserman Schultz, the DNC chair. Next to him was his longtime executive assistant. Fouts told BuzzFeed News that at multiple times during the beginning of the debate, he turned to his executive assistant, praised Sanders’ performance, and said the Flint debate — added to the calendar after the initial set were announced — proved that more debates were a good idea.

………

During an early commercial break, security confronted Fouts, roused him from his seat, and pulled him and his assistant off to the side of the hall. He was told there had been “complaints” about his behavior and that security had been ordered to throw him out.

“The sergeant at arms said, ‘The people that run this want you ejected, they don’t want you here,’” Fouts recalled. He said his assistant asked if the complainer was Wasserman Schultz.

“The security guy said, ‘don’t say I said it,” Fouts said.

Fouts was outraged by the evening. He called for Wasserman Schultz to step down in the Monday interview. After the conversation with security, Fouts said he returned to his seat and took extra care to be quiet.

Petty, paranoid, and stupid is no way to go through life, Ms. Wasserman-Schultz.

Well, This is a Surprise

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In the week leading up to the Michigan primary, Clinton was leading by in excess 20 points in the last few day’s polling.

Well, when polling places started running out of ballots for the Democratic primary, it was a sign that the polls might not be accurate.

As I am writing this, the Detroit Free Press has called Michigan for Bernie Sanders.

It appears that the Sanders got its get out the vote effort right tonight.

Headline of the Day

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Clowns Kicked out of Trans Pacific Partnership Roadshow.

It’s a real headline, and it does not refer to the people trying to sell that piece of unmitigated crap, it refers to actual clowns:

Four people dressed as clowns have been kicked out of the first stop of the Government’s Trans-Pacific Partnership information roadshow in Auckland.

The quartet were honking horns, blowing balloons and laughing, Newstalk ZB reported.

Master of Ceremonies Sean Plunket asked those also present at the roadshow to vote on whether they should be allowed to stay, before they were escorted out by police.

The 12-country agreement is designed to free up trade and investment between the countries, but has been a beacon for controversy for several years, mainly due to the secrecy of the deal, lack of public consultation and fears New Zealand’s sovereignty could be diminished. Widespread protests occurred when it was signed in Auckland a month ago, and traffic in the city was brought to a halt by protesters who blocked roads and motorway on and off-ramps.

I do understand why they were thrown out.

The real clowns are the people in suits trying to sell the deal.

Talk About Like a Lamb

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You know the old saying, “March comes in like a lion and goes out like a lamb.”
I’m getting lunch from the food truck, and the weather is magnificent.  (Ironically, I got the lamb.)
72 degrees without a cloud in the sky.

When juxtaposed with the brutal winter that we’ve had, it is a bit surreal.

Posted via mobile.

First Civil Application will be on Car Bras

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A car bra

Researchers at Iowa State University claim to have developed a flexible skin that absorbs radar:

Iowa State University engineers have developed a new flexible, stretchable and tunable “meta-skin” that uses rows of small, liquid-metal devices to cloak an object from the sharp eyes of radar.

The meta-skin takes its name from metamaterials, which are composites that have properties not found in nature and that can manipulate electromagnetic waves. By stretching and flexing the polymer meta-skin, it can be tuned to reduce the reflection of a wide range of radar frequencies.

The journal Scientific Reports recently reported the discovery online. Lead authors from Iowa State’s department of electrical and computer engineering are Liang Dong, associate professor; and Jiming Song, professor. Co-authors are Iowa State graduate students Siming Yang, Peng Liu and Qiugu Wang; and former Iowa State undergraduate Mingda Yang. The National Science Foundation and the China Scholarship Council have partially supported the project.

“It is believed that the present meta-skin technology will find many applications in electromagnetic frequency tuning, shielding and scattering suppression,” the engineers wrote in their paper.

Dong has a background in fabricating micro and nanoscale devices and working with liquids and polymers; Song has expertise in looking for new applications of electromagnetic waves.

Working together, they were hoping to prove an idea: that electromagnetic waves – perhaps even the shorter wavelengths of visible light – can be suppressed with flexible, tunable liquid-metal technologies.

What they came up with are rows of split ring resonators embedded inside layers of silicone sheets. The electric resonators are filled with galinstan, a metal alloy that’s liquid at room temperature and less toxic than other liquid metals such as mercury.

Those resonators are small rings with an outer radius of 2.5 millimeters and a thickness of half a millimeter. They have a 1 millimeter gap, essentially creating a small, curved segment of liquid wire.

The rings create electric inductors and the gaps create electric capacitors. Together they create a resonator that can trap and suppress radar waves at a certain frequency. Stretching the meta-skin changes the size of the liquid metal rings inside and changes the frequency the devices suppress.

Galinstan is the metal in modern “Mercury” thermometers.

If this works, I expect to see covers on cars to absorb the radar frequencies used by speed radars.

Because these radars operate over a fairly narrow bands, it’s not a particularly demanding application, and radar absorbent car bras has been a kind of holy grail in the industry.

Bloomberg is Out

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No, we are not talking about his sexuality, we are talking about his running for President.

He’s not running for President:

Americans today face a profound challenge to preserve our common values and national promise.

Wage stagnation at home and our declining influence abroad have left Americans angry and frustrated. And yet Washington, D.C., offers nothing but gridlock and partisan finger-pointing.

………

Over the last several months, many Americans have urged me to run for president as an independent, and some who don’t like the current candidates have said it is my patriotic duty to do so. I appreciate their appeals, and I have given the question serious consideration. The deadline to answer it is now, because of ballot access requirements.

Many Americans who have the name “Michael Bloomberg”.  No one was clamoring for Bloomberg to run but Michael Bloomberg.

………

But when I look at the data, it’s clear to me that if I entered the race, I could not win. I believe I could win a number of diverse states — but not enough to win the 270 Electoral College votes necessary to win the presidency.

In a three-way race, it’s unlikely any candidate would win a majority of electoral votes, and then the power to choose the president would be taken out of the hands of the American people and thrown to Congress. The fact is, even if I were to receive the most popular votes and the most electoral votes, victory would be highly unlikely, because most members of Congress would vote for their party’s nominee. Party loyalists in Congress — not the American people or the Electoral College — would determine the next president.

As the race stands now, with Republicans in charge of both Houses, there is a good chance that my candidacy could lead to the election of Donald Trump or Senator Ted Cruz. That is not a risk I can take in good conscience.

He’s trying to cast this as a noble decision, but that’s crap.

He was indulging in onanistic narcissism, and now he is done.