Virgin Galactic Gets FAA OK on Air Traffic Control, Only 1 Bazillion More Regulatory Hurdles Left

virgin galacticYesterday was a big one for the private
spaceflight industry.

While SpaceX
was busy whisking sheets off of space capsules
 to ferry
humans back and forth to the International Space Station, their
colleagues/competitors at Virgin Galactic got some
good news
from the Federal Aviation Administration (FAA) about
their efforts to launch commercial tourist flights to the edge of
space from Spaceport America in New Mexico.

Headlines like this one in the Daily Mail overstate the
case a bit: 


Virgin Galactic gets the green light: US aviation authorities
approve Branson’s space flights for launch later this year

This one from (an otherwise
accurate) Mashable article is off the mark as
well, and not just because the design of Virgin’s SpaceShipTwo
means that there really isn’t a blast-off from the spaceport in the
sense that we are accustomed to from NASA’s shuttles—it’s more like
a take-off:

You’re
Cleared for Blast-Off: Virgin Galactic Gets FAA Approval

The FAA and other federal regulators will still have a lot say
about what Virgin can and cannot do. But the space tourism company
founded by ultrarich entrepreneur Richard Branson did manage to
reach an agreement with the FAA about how flights out of the
heavily taxpayer
subsidized Spaceport America
will interact with terrestrial air
traffic control authorities in Albuquerque.

Here’s the
company’s “thank you and please don’t screw us in the future,
regulators” boilerplate press release

“Our team is working hard to begin routine and affordable space
launches from Spaceport America and this agreement brings us
another step closer to that goal,” Virgin Galactic Chief Executive
George Whitesides said in a statement. “We are grateful to the FAA
and New Mexico for their partnership to achieve this
milestone.”

More from Reason on the FAA as a roadblock to space
tourism
here
.

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The New Republic’s Lame Attack on Libertarian Constitutionalism

Cass Sunstein, the liberal
Harvard law professor and former Obama administration official
recently haunted by the specter of
“paranoid libertarianism,”
has penned a
lengthy review
in The New Republic of
The Classical Liberal Constitution
, the latest book
from pioneering libertarian law professor Richard Epstein. Titled,
“The Man Who Made Libertarians Wrong About the Constitution,” it
is, unsurprisingly, not a rave review.

“If the Supreme Court agreed with [Epstein], our constitutional
law, and our nation, would be altogether different,” Sunstein
writes. “We would be a lot closer to what he calls a system of
laissez-faire, with a far weaker national government and a more
robust set of rights against federal and state interference with
private property and contract.” What’s more, Sunstein says, even if
Epstein is correct to view the Constitution as a classical liberal
document, that still does not mean the rest of the legal world
should follow suit. As Sunstein puts it,

even if we did accept [Epstein’s libertarian] creed, we would
have to ask whether federal judges, with their limited place in our
constitutional order, should insist on it. Consider in this regard
the cautionary words of Oliver Wendell Holmes Jr.: “If my fellow
citizens want to go to Hell I will help them. It’s my job.”

Unhappily for Sunstein, his own allies on the left are already
guilty of disregarding Justice Holmes’ legal advice when it comes
to such things as gay rights and abortion, two areas of the law
where progressives have no problem with federal judges assuming a
less limited place in our constitutional order and striking down
democratically enacted statutes.

And why would they follow Holmes’ advice? According to Holmes,
who sat on the Supreme Court from 1902 to 1932, “a law should be
called good if it reflects the will of the dominant forces of the
community even if it will take us to hell.”

That deferential standard led Holmes to vote in favor government
action in all sorts of troubling contexts, from a state law

forbidding
a private school teacher from instructing young
children in a foreign language to the state of Virginia’s desire to
forcibly
sterilize
a teenage girl who had been raped and impregnated by
the nephew of her foster mother. “We have seen more than once that
the public welfare may call upon the best citizens for their
lives,” Holmes wrote in that latter case, known as Buck v.
Bell
. “It would be strange if it could not call upon those
who already sap the strength of the State for these lesser
sacrifices.” Thanks to Holmes, the state’s eugenics law was upheld
and the sterilization procedure was performed.

Sunstein’s mileage may vary, but I’ll take Epstein’s system of
laissez-faire over Holmes’ submission to state power any day.

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What Else Has Steve Ballmer Overpaid For?

As reported yesterday, Former Microsoft CEO Steve Ballmer appears set to be the new owner of the LA Clippers, or Clippys as they are now known, paying the record-shattering price for a basketball team of $2 billion, which is the second largest price ever paid for a US team second only to the $2.1 billion paid for the Dodgers. Considering recently Forbes estimated the value of the same team at $575 million, Ballmer appears set to overpay massively, with a premium that matches any of the ridiculous social networking deals we have seen in recent months. But is this the first time that Ballmer, either as an individual or as a CEO, has overbid? Hell no. In fact, as the following list by WSJ’s Paul Vigna shows, the only question when analyzing Ballmer’s horrendous track record at estimating fair value of underperforming assets is “where does one begin.

From the WSJ, here is a sampler of the most grotesque examples:

Let’s take a look at some of the more notable deals of the Ballmer era:

 

aQuantive. In August 2007, Microsoft acquired aQuantive, a online ad agency, for $6.3 billion cash, and 85% premium. At the time, it was Microsoft’s largest deal. “This deal takes our advertising business to a new level,” the company’s COO, Kevin Johnson, said at the time. How’d it work out? Microsoft took a $6.2 billion write-off on the business in 2012. “The acquisition did not accelerate growth to the degree anticipated,” the company said.

 

Skype. In May 2011, Microsoft acquired Skype for $8.5 billion in an unsolicited bid “even though there were no signs of other serious bidders,” as we wrote at the time. The price tag was three times what the company had gone for just 18 months prior, as the company was scrambling to catch up in the mobile and Internet markets. How’d it work out? Microsoft doesn’t break out Skype revenue, so it’s hard to really know. But the service is popular, and they just unveiled a gee-whiz “Star Trek” like universal translator service.

 

Nokia. In September 2013, Microsoft acquired Nokia’s handset business, for $7.2 billion in cash. “It’s a bold step into the future – a win-win for employees, shareholders and consumers,” Mr. Ballmer said at the time. How’d it work out? You could argue, if you like, that it’s too soon to say; the deal closed only in April. But Microsoft controls less than 4% of the U.S. smartphone market. Moreover, whether it’s a win-win for employees, shareholders, and consumers, it was a definite loser for Mr. Ballmer: the Nokia deal was apparently the deal-breaker for him, and the internal fight over it led to his ouster.

 

Yahoo. Of all the deals Microsoft did do, it’s the one that it didn’t do that may be the most instructive. In February 2008, Microsoft offered $44.6 billion for Yahoo, a 62% premium to the company’s stock, in an attempt to merge two struggling search businesses. It was a huge deal in the high-tech world, and it was a huge, public, messy battle that Microsoft eventually lost in one way, and won in another. Yahoo ultimately rejected the deal, although angry shareholder would later boot founder Jerry Yang over it. Yahoo’s stock, which was in the $30 range when the deal was announced, would soon sink into the single digits, and would languish in the teens range for years after.

 

Not exactly a sterling record, no pun intended, and we didn’t even mention Microsoft’s stock, which went from $58 when Mr. Ballmer took over in 2000 to $40 and change today.




via Zero Hedge http://ift.tt/1oDmm8I Tyler Durden

WH Speaker Jay Carney Says “Short Russia”; Russia Says “Goodbye Carney”

Having failed dismally in his global macro forecasts, the White House’ press secretary Jay Carney is stepping down…

  • *OBAMA SAYS SPOKESMAN JAY CARNEY STEPPING DOWN
  • *OBAMA SAYS JOSH EARNEST TO BECOME PRESS SECRETARY

Perhaps it is time for him to take a role on Wall Street? His accuracy makes him a shoe-in.

 

Caption Contest…

 

Watch Carney’s last presser…




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“Pervasive, Pre-Criminal Surveillance Where the Government Wants To Watch What You’re Doing Just to See What You’re Up To …”

When NBC’s Brian Jennings interviewed Ed Snowden in Moscow last week, one of Snowden’s most interesting statements was left on the cutting room floor.

Specifically, the following statement was cut from NBC’s broadcast Wednesday night:

Now, we have a system of pervasive, pre-criminal surveillance where the government wants to watch what you’re doing just to see what you’re up to, to see what you’re thinking, even behind closed doors.

 

 

Indeed, a government expert told the Washington Post that the government “quite literally can watch your ideas form as you type.” (And see this.)  And British and U.S. intelligence agencies have been recording millions of webcam videos … many of them nude videos from inside people’s homes. Indeed, the government is spying on virtually everything we do.

Moreover, the NSA  is working on building a “pre-crime” computer system that uses artificial intelligence and massive amounts of data to try to predict how every thinks and what everyone is likely to do.

As we reported last year:

The government is currently testing systems for use in public spaces which can screen for “pre-crime”. As Nature reports:

Like a lie detector, FAST measures a variety of physiological indicators, ranging from heart rate to the steadiness of a person’s gaze, to judge a subject’s state of mind. But there are major differences from the polygraph. FAST relies on non-contact sensors, so it can measure indicators as someone walks through a corridor at an airport, and it does not depend on active questioning of the subject.

CBS News points out:

FAST is designed to track and monitor, among other inputs, body movements, voice pitch changes, prosody changes (alterations in the rhythm and intonation of speech), eye movements, body heat changes, and breathing patterns. Occupation and age are also considered. A government source told CNET that blink rate and pupil variation are measured too.

 

A field test of FAST has been conducted in at least one undisclosed location in the northeast. “It is not an airport, but it is a large venue that is a suitable substitute for an operational setting,” DHS spokesman John Verrico told Nature.com in May.

 

Although DHS has publicly suggested that FAST could be used at airport checkpoints–the Transportation Security Administration is part of the department, after all–the government appears to have grander ambitions. One internal DHS document (PDF) also obtained by EPIC through the Freedom of Information Act says a mobile version of FAST “could be used at security checkpoints such as border crossings or at large public events such as sporting events or conventions.”

The risk of false positives is very real. As Computer World notes:

Tom Ormerod, a psychologist in the Investigative Expertise Unit at Lancaster University, UK, told Nature, “Even having an iris scan or fingerprint read at immigration is enough to raise the heart rate of most legitimate travelers.” Other critics have been concerned about “false positives.” For example, some travelers might have some of the physical responses that are supposedly signs of mal-intent if they were about to be groped by TSA agents in airport security.

Various “pre-crime” sensing devices have already been deployed in public spaces in the U.S.

 

The government has also worked on artificial intelligence for “pre-crime” detection on the Web. And given that programs which can figure out your emotions are being developed using your webcam, every change in facial expression could be tracked.

While the government pretends that such pre-crime monitoring is meant to prevent terrorism, the fact is that it is instead being used to crush dissent.




via Zero Hedge http://ift.tt/1mRlkmu George Washington

CEO Confidence Tumbles To 2014 Lows

Q1 GDP growth in the US was simply abysmal – its worst in 3 years – but that does not matter as hope springs eternal that Spring is sprung and it’s all green shoots from here. However… that’s not what we are seeing in personal spending data (biggest miss in over 4 years in April) and now Bloomberg’s Orange Book which implicitly tracks CEO Confidence via their comments has dropped back to the year’s lows – not what we are being told by the talking-heads who promulgate the hockey-stick faith in our central planners.

 

 

Perhaps Campbell’s Soup CEO summed it up best:

Campbell Soup [CPB] Earnings Call 5/19/14: “I’m disappointed that we failed to deliver the sales growth that we anticipated in the third quarter.

 

We believe this is in part a reflection of the persistence of an exceptionally challenging consumer environment.

 

As many others in the industry have noted, consumers are suffering from continuing underemployment, reductions in the SNAP program and rising home, fuel and healthcare costs. In combination, these factors are significantly affecting purchasing behavior, pressuring the performance of a number of our key customers and constraining growth across the industry, particularly in center store categories.”




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When Drug Warriors Burn a Baby, Who’s the Terrorist?

Habersham
County, Georgia, Sheriff Joey Terrell feels bad that his deputies

horribly burned a toddler
by tossing a “distraction device”
(a.k.a. a “flash bang” grenade) into his crib during a drug raid on
Wednesday morning. “The baby didn’t deserve this,” Terrell concedes in
an interview with AccessNorthGa.com. “The family didn’t deserve
this. This family was displaced from another home down here and
apparently just moved in with her.” If his deputies had known there
were children in the home, he says, they would not have used the
grenade. But given what they knew, Terrell insists, they acted
appropriately:

We keep asking ourselves, “How did this happen?” No one can
answer that. You can’t answer that. You try and do everything
right. Bad things can happen. That’s just the world we live in. Bad
things happen to good people. 

But it turns out Terrell does have an answer:

The person I blame in this whole thing is the person selling the
drugs. Wanis Thonetheva, that’s the person I blame in all this.
They are no better than a domestic terrorist, because they don’t
care about families—they didn’t care about the family, the children
living in that household—to be selling dope out of it, to be
selling methamphetamine out of it. All they care about is making
money. 

They don’t care about what it does to families. It’s domestic
terrorism and I think we should treat them as such. I don’t know
where we can go with that, but that’s my feelings on it. It just
makes me so angry! I get so mad that they don’t care about what
they do, they don’t care about the families or the people they’re
selling to.

It makes me angry too, but in a different way. It makes me angry
that Terrell thinks violence is an appropriate response to
consensual transactions in which someone exchanges methamphetamine
for money (provided that person is not a pharmacist and his
customer is not a patient with a prescription). It makes me angry
that Terrell sees nothing wrong with sending a heavily armed SWAT
team into a an alleged meth dealer’s home in the middle of the
night, which inevitably endangers not only the dealer but anyone
else who happens to be there. In Terrell’s mind, that is not an act
of aggression. It was Wanis Thonetheva who attacked first by
agreeing to sell speed to people who wanted it. Hence Thonetheva is
a “domestic terrorist,” harming an innocent child because all he
cares about is making money.

Terrorists, of course, are usually motivated by politics rather
than greed. And it was not Thonetheva who sent Alecia
Phonesavanh’s 19-month-old son, Bounkham, to the hospital
with severe burns. One of Terrell’s deputies did that, in service
of a political ideology that says people may not alter their
consciousness in ways that are not approved by the government. “He
is in a medically induced coma and he is paralyzed,” Phonesavanh

told
WSB-TV, the ABC affiliate in Atlanta. “I hope he’s
not going to remember this. I know his sisters, his mommy, and his
daddy will never forget this. Our kids have been through enough
this year. This is just more trauma that they didn’t need, and I
just wish there was something better I could do to make it better
for him. Wrong place, wrong time.”

That place is America, and that time is a period during which
police believe it is their duty to launch military-style assaults
on civilians who sell politically incorrect drugs, knowing full
well that they are bound to inflict “collateral damage” like this
from time to time. After Bounkham recovers from the injuries
inflicted by his government and becomes old enough to ask what
happened that night, is there any explanation that will make sense
to him?  

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Ed Krayewski Talking Drug War on the Scott Horton Show at 1:30p.m. ET

you can hear me on the radioIn a few minutes I’ll be on The Scott Horton Show, a radio
show that focuses on libertarian foreign policy, to talk about the
war on drugs and what effect, if any, this
tragic incident I wrote about this morning
and incidents like
it may have on the prosecution of an increasingly unpopular and
steadfastly violent war on drugs. Listen live here.

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Matt Welch on the Sad State of Free Speech on Campus

On March
4, in a designated “free-speech zone” at the University of
California, Santa Barbara (UCSB), associate professor of feminist
studies Mireille Miller-Young walked over to a 16-year-old
anti-abortion protester named Thrin Short and demanded that Short
take down a graphic sign showing pictures of aborted fetuses. When
Short refused, Miller-Young forcibly snatched the sign out of the
smaller girl’s hands, then handed it to her students and walked
away triumphantly. The rattled teen accurately accused Miller-Young
of being a “thief,” to which the professor implausibly retorted: “I
may be a thief, but you’re a terrorist!” Adding injury to insult,
Miller-Young then shoved the protester and barred her from entering
a campus elevator. Moments later, the professor and her students
cut the stolen poster to shreds.

Such scenes have become all too common, writes Reason
Editor-in-Chief Matt Welch. The University of California, and
American academia as a whole, is long overdue for a 21st century
free speech movement.

View this article.

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Are Republicans Abandoning Opposition to Obamacare?

Are Republicans backing off their staunch opposition to
Obamacare? That’s the question raised by a Washington Post
report today on the evolving way that GOP politicians and
candidates are talking about the health law now that its coverage
expansion has gone into effect. 

The Post‘s
report
follows a string of stories from GOP-watchers like the
Post’s Greg Sargent, who, for the last few weeks, have
been suggesting that the Republican party is beginning to bend, at
least a little, when it comes to the health law. This suggestion
rests heavily, though not exclusively, on statements from Scott
Brown, the former GOP Senator from Massachusetts who is running for
Senate in New Hampshire, and Senate Minority Leader Mitch McConnell
(R-Ky.), who just won a GOP primary and is now set to face off
against Democratic candidate Alison Grimes in November.

As Sargent has noted, Scott Brown’s statements on the health law
have
not exactly been

crystal clear
. At times, they are almost completely
indecipherable. For example, here’s what Brown
said
on radio station WMUR last month when asked about how he
would approach health policy, since he thinks Obamacare is a
disaster:

“I’ve always felt that people should either get some type of
health care options, or pay for it with a nice competitive fee.
That’s all great.  I believe it in my heart. In terms of
preexisting conditions, catastrophic coverage, covering kids —
whatever we want to do, we can do it. As a matter of fact, in New
Hampshire, I would encourage everybody to do a New Hampshire plan
that works for New Hamphsire, that deals with individual freedoms,
and doesn’t have mandates put on by bureaucrats in Washington….a
plan that is good for New Hampshire…can include the Medicaid
expansion folks who need that care and coverage.”

I don’t know what that means. I doubt Scott Brown knows what it
means. That’s because it probably doesn’t really mean anything,
except that Scott Brown would like to be the Republican Senator
from New Hampshire, and he will say various things about health
care if that turns out to be part of the job. Brown added to the
incoherence of his non-position position by stating, during the
same interview, that he thought that Obamacare was a “disaster” but
also that he agreed with the philosophy behind the law.

This tells us plenty about Scott Brown, but I am not sure how
revealing it is about the Republican party. Brown has always been a
policy lightweight with little interest in the minutae of
government. The most generous way to put it is that he has always
claimed to stand for the interests of his constituents more than
for any policy agenda. A less generous way to put it is that he has
never seemed very interested in policy details, and never been very
good at describing his own policy positions when pressed.

At his first news conference after winning the Massachusetts
Senate seat in 2010, for example, he dodged virtually every policy
question by
claiming a lack of sleep
. I’m sure he really was tired, but
somehow he’d managed to run for Senate and win without developing
any particularly detailed positions on most major policy issues.
Win or lose, I suspect he will complete his current Senate campaign
with a similar level of effort.

A somewhat more interesting case of potential Republican
moderation on Obamacare comes from Kentucky, where Sen. Mitch
McConnell, arguably the country’s most powerful Republican has
argued that Obamacare was a “big mistake” that needs to be pulled
out “root and branch”—and also suggested that the state’s Obamacare
health exchange could perhaps be left in place.
Questioned this week about whether his desire to
completely undo Obamacare would also mean dismantling the state
exchange, he
said
, “I think that’s unconnected to my comments about the
overall question here.”

This is at least half a load of nonsense: The state’s health
insurance exchange, dubbed Kynect, was created explicitly in
response to Obamacare, and was funded with
about $250 million in federal grants made possible by the law
.
To the extent that Obamacare’s individual insurance market reforms
and private coverage expansion exists in Kentucky, it exists
through Kynect.

Still, it’s at least possible to imagine a future in which
Obamacare is repealed and Kentucky maintains and runs its own
health insurance exchange. That’s what Massachusetts did, with the
help of a deal to secure federal funding, and in the absence of
Obamacare, it’s conceivable that other states could negotiate
federal funding deals for their own exchanges. Yet even this
scenario suggests potential GOP support for state-run programs that
very much resemble Obamacare. (Which is maybe not that surprising
given that the Massachusetts system was, after all, passed under a
Republican governor who eventually became the GOP’s presidential
nominee.)

Do these and other episodes of GOP confusion about the law
represent a turning point in the party’s opposition to the law? I’m
not so sure. What McConnell’s awkward statements suggest is that
the Republican party has not solved its old problem when it comes
to health policy: The GOP knows clearly what it is against, but not
what it is for.

Yes, there are a handful of GOP-crafted alternative health
policy proposals in the waiting, but there’s little effort to
promote these plans or unite around them. When Republicans are
asked what they would do about health policy, they typically point
to Obamacare and say, “not that!” The law’s coverage expansion has
simply added to this problem, because Republicans, not really
knowing what they favor in health policy, have no clear idea what
to do about the people who are now receive coverage through the
law’s various provisions. 

That means the GOP is an awkward spot, but it doesn’t mean they
will or should reverse course. If you look at the polls, the GOP is
on the right track.
The health law is not popular
, never has been, and there’s
little indication that it is gaining in popularity now that its
coverage expansion—its biggest, most widely felt benefit—has kicked
in. Even the low-income cohort who ought to benefit most from the
law
believe
that their insurance options have not improved this
year. Just
14 percent of the public
thinks they’ve been helped by
Obamacare. And in perhaps the most telling sign that there’s no big
turning point in sight, House Minority Leader Nancy Pelosi says
that
Democrats won’t run on the health law this year
. Republicans
may not know quite how to talk about health policy, but Democrats
aren’t exactly sounding confident about their work on it
either. 

The public is clearly with Republicans in opposing the law in
its current form, and that’s why the GOP’s broad opposition is
likely to continue. Republicans don’t need to weaken their
opposition to Obamacare—they need to find something they would like
to do instead. 

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