Authors Guild Hates Change, Attacks the Writers It’s Says It Wants to Protect

Former Reason editor Virginia Postrel has a

great piece
at Bloomberg View about how the Authors
Guild (est. 1912) is attacking an upstart group, the Authors
Alliance, and teh Internet BECAUSE COPYRIGHT!

It’s only a little more complicated than that. The Authors Guild
sued Google for daring to digitize books, thus allowing potential
readers to discover them online (the Guild lost its case).

On the Guild’s official blog, a member attacked the Author’s
Alliance as “an astroturf organization” tailored to “academics and
hobbyists” rather than real writers. The alliance bills itself as
support for “authors who write to be read.” 

Postrel neatly dissects what’s wrong with the Authors Guild’s
attempt to hold back the march of time, technology, and a rival
advocacy group.

The Internet has unquestionably made it more difficult to make a
living as a writer. But the problem isn’t copyright infringement.
It’s competition. We’ve gone from a world in which reading material
was relatively scarce and expensive to one in which it’s
overabundant and nearly free. And it’s much, much harder to get
readers to hear about your book. Reviews and excerpts get lost in
the vast sea of online content. Online retailers haven’t found good
substitutes for bookstore browsing. Scanning books to make them
searchable doesn’t hurt sales. It gives those works a prayer of
being found.

It also saves books from
“digital oblivion.” For increasing numbers of readers, a book that
doesn’t show up in a Google search or can’t be linked to in some
way online might as well not exist. The scanning the Authors Guild
wants to block rescues old titles from the memory hole. Going
forward, it means that today’s new titles will have a chance of
enduring, at least as searchable files, for as long as the websites
are preserved by the Internet Archive. Do you want your latest book
to be as easy to discover in 10 years as one of today’s cat videos
or Buzzfeed listicles? Or do you want it to go down the memory hole
unless you post it online for free?

Postrel notes that there is a “perverse logic” to the Guild’s
stance. Its members who are writing new books benefit if older ones
are not as easy to find (even as that makes it harder to write
well-researched new books). But this is bad thinking, especially
from folks who typically talk about how important it is to be
grounded in history and tradition. Fact is, the publishing
establishment and certainly those who are well compensated under
the status quo publishing world hate change and the general
leveling that’s been made possible via the Internet. If you’re,
say, Erica Jong (a
critic
of the Authors Alliance and anything that threatens a
system that has rewarded her handsomely), it’s easy to understand
why you fear change. But for the rest of us trying to make a living
putting pixel to page? Not so much.


Whole Postrel piece here
.

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How ISM’s Data Manipulation Resulted In A 150 Point Swing In Japanese Stocks

US equities dipped after the initial ISM data (and construction spending miss) as did USDJPY but soon after things began to levitate in their new normal manner as bad news is clearly pent-up good news in the future. By the time the ISM admitted its error – the US equity markets had recovered back to unchanged from 10ET’s initial print. But what was really moving – since in our new normal world, a shift in the butterfly’s wings of US ISM (seasonally adjusted) causing a hurricane (or Tsunami) in stock markets across the world, Japan’s Nikkei 225 swung from low to high by over 150 points as the carry-trading algo monkeys reacted to every conflicting headline (and broke BATS).

 

The Dow had quite a day of selling, magical levitation and then stability…

 

But the Japanese stock market really shone on its high-beta muppetry…

 

Meanwhile – bonds have not given back their losses (yet) on the weaker than expected final ISM data…

 

Charts: Bloomberg




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U.S. Reiterates $18 Million Aid to Ukraine After 400-Man Border Attack

Pro-Russian militants staged a predawn
400-man attack near Ukraine’s eastern border today, prompting the
U.S. government to reaffirm its support for the unstable
nation.

The Associated Press (AP) reports
on the battle, which took place at a border guard base and
persisted into the afternoon:

Serhiy Astakhov, the spokesman for the border guard service,
[said] that a preliminary assessment indicated that five rebels
were killed and eight wounded in the attack on the walled compound
on the western fringes of Luhansk, a major city not far from the
Russian border. He also said seven servicemen were wounded, three
seriously. …

An AP reporter saw at least one dead rebel soldier about a
kilometer (half-mile) away from the base. Fellow fighters
approached and broke into tears as they viewed the body. One
insurgent said the dead man was a leading rebel commander.

The militia was armed with rocket-propelled grenades. Whether or
not they were part of a larger, coordinated offensive is unknown,
but in another city, Sloviansk, rebels apparently laid landmines
around power plants and in yet another, Donetsk, they kidnapped a
local newspaper editor.

Assistant Secretary of Defense for International Security
Affairs Derek Chollet said at a press
conference today that the Luhansk attack is “a further example of
the destabilizing activities that we believe are supported by
Russia in the east.” He reiterated at a press conference this
morning that the U.S. has pledged $18 million toward “strengthening
our long-term defense cooperation, especially in helping Ukraine
build a highly effective armed force and strengthening its defense
institutions.” The State Department maintains that the funding,
which was first announced
in May, will only be spent on “non-lethal security assistance.”

According
to the Kyiv Post, though, Chollet also
hinted that the U.S. may provide “more aggressive help” to Ukraine
after today’s attack.

On Wednesday, President Obama will meet with President-Elect
Petro Poroshenko, who has
requested
direct military aid to rebuff the forces.

For its part, Russia offered “humanitarian aid” to
eastern Ukraine last week. The Ukrainian government rejected this
and maintains that Russia is engaged in “undisguised aggression”
against Ukraine. The situation increasingly looks like an all-out
war. Rebels recently shot down a military helicopter, and although
Russia officially denies it, some militants
claim
themselves to be part of a Chechen “savage unit” on
official orders. One Russian official shrugged this off saying, “We
can’t control where our citizens go.”

Here
is a video of a fighter seemingly dragging himself to safety.
Below is
a video allegedly from the early hours of today’s attack:

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Obama’s EPA Carbon Rationing Plan: Cost Effective or Just Costly?

CO2

Back in 2009 at the Copenhagen UN climate change conference
President Barack Obama promised to cut by 2020 U.S. planet-warming
carbon dioxide emissions by 17 percent below the level emitted in
2005. Today, the Environmental Protection Agency has announced the
president’s
Clean Power Plan
that aims to cut carbon dioxide emissions by
2030 at existing electric power generation plants by 30 percent
overall. Each state will be given a specific goal and be
responsible for figuring out how to achieve its mandated reduction
goal using a mixture of policies that include switching from coal
to natural gas, building more wind and solar power, and/or pricing
emissions in carbon markets.

The EPA has crunched the numbers and assures the American public
that benefits of implementing this program will hugely outweigh its
costs. In its
regulatory impact analysis
, the EPA calculates the global
climate benefits using the social cost of carbon derived from a
controversial Interagency Working Group report. That analysis found
that social cost of carbon in 2020 ranged over $13, $46, $68, and
$137 per metric ton of CO2 emissions (2011 dollars) depending on
the discount rate picked by the analysts. The discount rates used
were 5, 3, and 2.5 percent. The Working Group derived a high-end
figure of $137 per ton in 2020 by looking at the worst 5 percent of
the distribution, i.e., the less likely but possibly catastrophic
damages using a 3 percent discount rate. 

With regard to deriving a social cost of carbon, the EPA’s
regulatory impact analysis does caution that …

…any assessment will suffer from uncertainty, speculation, and
lack of information about (1) future emissions of greenhouse gases,
(2) the effects of past and future emissions on the climate system,
(3) the impact of changes in climate on the physical and biological
environment, and (4) the translation of these environmental impacts
into economic damages.

Other than that, everything is evidently OK.

Depending on the discount rate selected, the global climate
benefits (not the climate benefits to the U.S.) from implementing
this 30 percent reduction in power plant carbon dioxide emissions
in 2020 will amount to $4.9 billion, $18 billion, $26 billion, or
$52 billion. By 2030, the global benefits would rise to $9.5
billion, $31 billion, $44 billion, or $94 billion. These are just
the benefits from lowering future increases in global average
temperatures. The vast majority of the benefits have nothing
directly to do with cutting carbon dioxide emissions by 30
percent.

The real bang for the buck comes in the form of health
co-benefits arising from cuts in air pollutants like sulfur
dioxide, ozone, mercury, and particulates. In fact, more than 70
percent of the health co-benefits apparently result from reductions
in sulfur dioxide emissions.

The EPA calculates that the maximum cost for implementing the
new regulations amounts to $7.5 billion in 2020, while the maximum
net climate and health benefits range from $27 to $50 billion at a
3 percent discount rate or $26 to $46 billion at a 7 percent
dicount rate. On it’s face, that sounds like a pretty good deal.
But as I reported last August in my article, “The
Social Cost of Carbon: Garbage In, Garbage Out
,” anyone can
pretty much conjure whatever number one wants when it comes to
cranking out the social cost of carbon through integrated
assessment models that combine econometric and climate
prognostications.

Another interesting feature is that the Obama administration’s
social cost of carbon estimate is for global benefits,
although the rules from the regulatory oversight agency, the Office
of Management and Budget specify that benefits and damages of
proposed regulations should be reported in terms of domestic
impacts, with global impacts being optional. The domestic social
cost of carbon would likely hover around $2 per metric ton which
suggests that the domestic climate benefits from the proposed EPA
regulations could actually amount in 2020 to as little as $700
million a worst case of $7.8 billion. Compare those benefits with
an estimated cost of $7.5 billion to implement them.

Finally, as the New York Times helpfully points out
today, the goal of the new EPA mandates is not to save the climate
but to “reclaim
leadership on climate change
.”

More analysis of the impacts of the new Clean Power Plan to
come.

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Ecuador Transfers Half Its Gold Reserves To Goldman Sachs In Exchange For “Liquidity”

Submitted by Mike Krieger of Liberty Blitzkrieg blog,

This is a great example of how the game works. In a world in which every government on earth needs “liquidity” to survive, and the primary goal of every government is and always has been survival (the retention of arbitrary power at all costs), the provider of liquidity is king. So what is liquidity and who provides it?

In the current financial system (post Bretton Woods), the primary engine of global liquidity is the U.S. dollar and dollar based assets generally as a result of  its reserve currency status. Ever since Nixon defaulted on the U.S. dollar’s gold backing in 1971, the creation of this “liquidity” has zero restrictions whatsoever and is merely based on the whims and desires of the central planners in chief, i.e., the Federal Reserve. As the primary creator of the liquidity that every government on earth needs to survive, the Federal Reserve is thus the most powerful player globally in not only economic, but also geopolitical affairs.

The example of the so-called sovereign nation of Ecuador relinquishing its gold reserves to Goldman Sachs for “liquidity” which can be conjured up by the Fed on a whim and at zero cost tells you all you need to know about how the world works (read my post: Why Fiat Money is Immoral).

Now from Bloomberg:

Ecuador agreed to transfer more than half its gold reserves to Goldman Sachs Group Inc. for three years as the government seeks to bolster liquidity.

 

The central bank said it will send 466,000 ounces of gold to Goldman Sachs, worth about $580 million at current prices, and get the same amount back three years from now. In return, Ecuador will get “instruments of high security and liquidity” and expects to earn a profit of $16 million to $20 million over the term of the accord.

 

“Gold that was not generating any returns in vaults, causing storage costs, now becomes a productive asset that will generate profits,” the central bank said in the statement. “These interventions in the gold market represent the beginning of a new and permanent strategy of active participation by the bank, through purchases, sales and financial operations, that will contribute to the creation of new financial investment opportunities.”

This isn’t the first South American country we’ve heard about sending their gold to Goldman. Recall my post from late last year: Is Venezuela Selling Gold to Goldman Sachs?

This gold is headed straight to China or Russia. Good luck every getting that back amigos. Just ask Germany.

Full article here.




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Ecuador to Transfer More Than Half its Gold Reserves to Goldman Sachs in Exchange for “Liquidity”

Screen Shot 2014-06-02 at 10.45.48 AMThis is a great example of how the game works. In a world in which every government on earth needs “liquidity” to survive, and the primary goal of every government is and always has been survival (the retention of arbitrary power at all costs), the provider of liquidity is king. So what is liquidity and who provides it?

In the current financial system (post Bretton Woods), the primary engine of global liquidity is the U.S. dollar and dollar based assets generally as a result of  its reserve currency status. Ever since Nixon defaulted on the U.S. dollar’s gold backing in 1971, the creation of this “liquidity” has zero restrictions whatsoever and is merely based on the whims and desires of the central planners in chief, i.e., the Federal Reserve. As the primary creator of the liquidity that every government on earth needs to survive, the Federal Reserve is thus the most powerful player globally in not only economic, but also geopolitical affairs.

The example of the so-called sovereign nation of Ecuador relinquishing its gold reserves to Goldman Sachs for “liquidity” which can be conjured up by the Fed on a whim and at zero cost tells you all you need to know about how the world works (read my post: Why Fiat Money is Immoral).

Now from Bloomberg:

continue reading

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Summarizing The ISM Fiasco: Here Is The Original May “Data”, The Revised “Data”, And The Revised-Revised “Data”

Confused by the amateur hour at the ISM data manipulation office? Then this table summarizing the first May data release, the revised May data and the revised revised May data (which still missed expectations of a 55.5 increase, printing at 55.4 instead), should explain it all.

Remember: when manipulation data for “seasonal adjustments” you may at least want to fudge all of it, not just those cherry-picked components that help you goalseek a number that does not anger the gods of centrally-planned stock markets.




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Here Are The Cherry-picked ISM Revisions

While we still await for the ISM to figure out how to update its website with its fudged numbers, here is what happened and made the Institute of Supply Management the butt off all rigged economic data jokes today.

First of all, we wonder if when…

ISM’S HOLCOMB SAYS DROP MAY BE JUST A `SLIGHT PAUSE’

… this too will be seasonally retracted considering the revised data was not only not a drop but a spike?

And we certainly would love to see an explanation why survey responses need seasonal fudging. In any event, here is what the pre-fiasco numbers were, as well as post-fiasco. In their scramble to revise the data, ISM appears to have applied seasonal adjustments only to 5 of the 11 total indices.

We are eagerly looking forward to the ISM’s release of both adjusted adjusted number, as well as the baseline unadjusted numbers to which it applied the revision.




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Cleveland Cops Indicted For Car Chase That Started Over Nothing and Ended With a Fatal Police Shooting

shot by copsSix cops from the Cleveland Police Department
(CPD) were
indicted
on charges related to
a car chase
that began when a cop likely mistook the sound of
an engine firing for gun shots and ended with 13 cops firing 137
rounds into the car, killing Timothy Russell, the unarmed driver,
and Malissa Williams, his passenger.

Five of the cops were charged with dereliction of duty. Their
supervisors are accused of allowing the chase, which involved up to
104 of the 227 cops on duty at the time, to get out of control. The
sixth cop, Michael Brelo, was charged with manslaughter. He is
accused of standing on the hood of Russell’s car after the chase
and firing at least 15 shots through the windshield.
Sixty three cops
were suspended for up to ten days last year,
although that included none of the 13 cops involved in the actual
shooting, who were then under investigation. One supervisor was
eventually fired.

As an animation created by the Ohio attorney general’s office
showed, 12 other cops fired 122 shots at the car, with one cop
shooting 49 rounds, but none of them were indicted. The county
prosecutor explained that Brelo’s actions were “a stop-and-shoot—no
longer a chase-and shoot,” and that the “law does not allow for a
stop-and-shoot,” citing a recent Supreme Court decision that

found in favor
of cops using deadly force to end a car
chase.

In its report, the Associated Press
called
 Russell and Williams “suspects,” even though no
evidence was found that either of them had fired a weapon toward an
officer (the claim that began the deadly chase), nor even that
anyone had fired any gun in the vicinity of the cop who claimed he
heard it. They were neither suspected nor accused of any specific
crime by the gaggle of cops who pursued them—merely of trying to
elude them.

The city of Cleveland
asked
the U.S. Department of Justice to review police policies
after the chase and shooting. That review continues.

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