Quotulatiousness

March 23, 2011

Latest outlet for excess Chinese investment money: Bordeaux wineries

Filed under: China, Economics, Europe, France, Wine — Tags: — Nicholas @ 07:53

Running out of interesting investment opportunities? Some Chinese investors are moving into French wineries:

Walking among the ancient vines at Château de Malle, De Bournazel said many families struggled to make ends meet. “Nobody sells for pleasure, but you would struggle to find a chateau that wouldn’t sell for the right price. It’s sad, but I’d rather see families sell to the Chinese than tear themselves apart trying to keep a property.”

Rather than being viewed as conquerors, Chinese wine buyers are seen as saviours of the region — last year China overtook both Germany and the UK to become Bordeaux’s biggest customer, with exports growing by 67%. Bernard Farges, president of the Conseil Interprofessionnel du Vin de Bordeaux (CIVB), the body representing its wine growers and buyers, said Chinese investors buying vineyards would boost exports further.

“These are businessmen who believe in their investment, who are opening doors to a new market and ploughing money into properties to make great wine,” he said.

Others argue that the Chinese are simply the latest in a long line of foreign investors — including the Dutch, the English and the Danes — in Bordeaux.

That last part is certainly true: although you may not realize it, many of the wineries in the Bordeaux region have been foreign-owned for generations. The nationality of the foreign owners may change, but the principal is the same.

Of course, regardless of ownership, if the investors don’t maintain the property, they risk ruining their chances of benefitting from the purchase:

Not everyone is supportive of this new breed of Bordelais. Patrick Etineau recently sold Château de la Salle to a Chinese investor amid a storm of acrimony. “I found them very condescending,” he said. “They have the money and they think we are in penury.”

He says since the chateau was sold in January the vines have been left largely untended. “I was happy to sell, because I couldn’t maintain the property, but now I have the impression that they don’t care at all. We used to make beautiful wine, but this year I fear it will only be fit for the pigs.”

Middlesbrough hopes for low tax designation

Filed under: Britain, Economics, Government — Tags: , — Nicholas @ 07:42

My old home town has been struggling pretty much my entire life, as its original prosperity was built on industries which have been declining for decades. The Guardian says there’s a chance that Middlesbrough will be one of the new designated “low-tax enterprise zones”:

George Osborne does not know it, but Wednesday’s “budget for growth” could change much more than the lives of ponies now grazing quietly on a grassed-over industrial site in the heart of Middlesbrough. It seems all but certain that the chancellor will designate the Tees valley one of 10 new low-tax enterprise zones. If so, one of the local options will be to set up a precision-engineering cluster on the old ironmasters site — relic of the days when “Made in Middlesbrough” was stamped on countless bridges, including Sydney harbour’s.

In September 1987, Margaret Thatcher famously took her “walk in the wilderness” across a similar derelict site five miles upstream in Stockton, where as local MP in the 30s Harold Macmillan once preached the economic “middle way” she rejected. Stockton’s enterprise zone eventually became a business park, supporting 4,500 jobs at its peak. But this is a region that has long struggled to diversify its coal-and-ships, chemicals-and-steel economy, its hard-won gains always at risk — from global conditions as well as government policy and the region’s own mistakes.

[. . .]

So an enterprise zone will generate good headlines in the Middlesbrough Gazette and Northern Echo. But in deciding exactly how to proceed, disrupting ponies will be the least of it. The five unitary authorities that make up the sub-region of Tees Valley – Hartlepool, Redcar, Stockton, Darlington and Middlesbrough – must agree which of their local plans will make most long-term impact for all of them in terms of inward investment, skills upgrades and job creation along the supply chain. Spread the opportunity too thinly and it may be wasted. It has happened here before.

As Teesside University’s professor Tony Chapman puts it, the north-east has endured so many changes in Whitehall’s regional policies that someone could make a career in “the archaeology of regeneration”. Likewise, countless local government reorganisations have seen Anglo-Saxon “Mydilsburgh” change from a hamlet to an industrialised borough, become part of unloved Cleveland (1974-96), return as a borough, and now boast an elected mayor in ex-superintendent Ray “Robocop” Mallon.

Everyone agrees Middlesbrough has had its problems, some worse than its neighbours. Steel and chemicals have shrunk, as has the population of the town (bidding to become a Jubilee city) by 20,000 since the 60s to 140,000. “We have 200 teenage pregnancies a year,” says Mallon, who thinks a hardcore of families let the town down. But 16 wards out of 23 have high indices of deprivation, which cuts seem likely to intensify.

March 22, 2011

Starting election watch now

Filed under: Cancon, Economics, Government, Politics — Tags: , , , , , — Nicholas @ 17:55

With the opposition parties unified in their denunciations of the federal budget tabled today by Finance Minister Jim Flaherty, we’re now looking at the strong possibility of a May general election:

The minority Conservative government tabled a 2011 budget Tuesday that was quickly rejected by its political opponents for falling short in helping the middle class, setting the stage for an election campaign that could begin any day.

The leaders of the Liberals, Bloc Quebecois and NDP said they could not support the budget as presently written — even though Finance Minister Jim Flaherty tried to appease the left-wing party through a series of modest, symbolic initiatives.

“We’re forced to reject the budget and we are also forced to reject a government that shows so little respect for parliamentary democracy and our democratic institutions,” said Michael Ignatieff, the Liberal Leader.

Gilles Duceppe, Bloc Quebecois Leader, said his party “can’t support what has been offered here.”

And Jack Layton, head of the NDP and viewed as the person most likely to lend the government support, said the budget fell short of NDP expectations.

I have to admit that I’m surprised that the NDP and the Liberals appear to be ready to force an election at this moment: neither party has had much of a “bounce” in recent polls from government scandals (both real and imaginary). Perhaps they’ve got something held in reserve to release during the campaign that they think will cause voters to turn away from the Tories.

Rick Mercer: The Budget Lockup

Filed under: Cancon, Humour, Media — Tags: , , — Nicholas @ 12:36

QotD: The modern welfare state

Filed under: Bureaucracy, Economics, Government, Quotations — Tags: , , , — Nicholas @ 11:26

In past ages, the desire of kings and emperors to control the lives of their people was no less than it is now, but they simply lacked the means to substantially affect the average serf or peasant’s daily life. A tax collector or company of soldiers might come by occasionally, but it was the church and not the state that formed the polestar around which most lives revolved. But beginning in the late 19th century, technology allowed the governments of the industrialized nations to reach down into each city, town, and hamlet, and “adjust” things directly. In totalitarian regimes the impulse was malign, but in western nations the intentions were mainly good: to provide subsistence and aid for those in need of it.

But one thing has become clear in the western nations since the welfare-state started in earnest after World War II: it spreads like kudzu, it encompasses and infantilizes ever-larger percentages of the population, and it beggars even the richest and most powerful countries. Leave aside questions of morality and efficacy for the moment — it is dreadfully clear that the main problem with the welfare-state is that we can’t afford it. No one can, no matter how rich or powerful.

This is the paradox of the welfare state: it will surely ruin us if left to run unchecked, yet so many people now depend upon it that we can’t stop.

[. . .]

We have so successfully turned Americans into wards of the state that any significant change will (I fear) have to be imposed by fiat or by circumstance, because I don’t think it will ever take place at the political level. There is simply no way to get from here to there without making the kinds of wrenching changes that no democratic/republican form of government is good at. (If you doubt me, look at the protests in Greece, Ireland, and Portugal. Even when the writing is on the wall, the population does their best to ignore it.)

Monty, “She Walks in DOOM! Like the Night…”, Ace of Spades HQ, 2011-03-22

Explaining why President Obama didn’t consult congress over Libya

Filed under: Africa, France, Media, Military, USA — Tags: , , — Nicholas @ 09:46

I think Gabriel Malor has the gist of it right here:

People are overthinking the whole question of whether the President should have gone to Congress to authorize the Libya war. They’re especially overthinking why he chose not to.

It’s quite simple. The President didn’t go to Congress because he never thought he’d need to go to Congress. Obama spent three weeks dithering and then almost a full week telegraphing his intent not to intervene. But when the time came to announce his decision, he flinched and made a last-second gut decision to go to war.

The decision to commit the United States to war wasn’t out of any sudden change of heart about the value of Libyan lives. Nor did the President suddenly discover U.S. national interests in North Africa. He did it because he was getting internationally embarrassed by the French and by Secretary Clinton. He did it because he was looking bad and after three and a half weeks of polling his numbers were looking worse.

So, having failed to make any effort at all to reach out to Congress on the issue because he never expected that he would have to and with his Brazil vacation imminent, there simply wasn’t any time left to get Congressional authorization. Yes, he could have gotten it, in the sense that I’m absolutely sure the votes are there. But it would have taken a few more days and not even the MBM could pretend that he was “leading” on the Libya issue at that point.

The thought that the French would start referring to Americans as “burger-eating surrender monkeys” may have clinched it.

Why nobody takes conservative promises too seriously

Filed under: Cancon, Economics, Government, Politics — Tags: , , , , — Nicholas @ 09:37

Today is budget day, when federal Finance Minister Jim Flaherty will be introducing the Conservative budget for 2011. Unless something has suddenly changed in the government’s philosophy, don’t expect anything daring:

First and foremost, the budget should contain a plan for reducing federal spending in real terms over the next four or five years. Mr. Flaherty’s 2010 budget outlined how the federal government intended to restore balance to the federal books by 2015 by holding the line on spending increases to just over 1% a year while praying for a return to robust annual revenue increases. In fact, merely planning to hold the line on spending is never going to be enough. For one thing, the Conservatives have never proven themselves capable of pulling it off. Despite coming to power in 2006 on a message of fiscal restraint, the Tories raised federal program spending by an average of 6% in each of their first three budgets before the worldwide finance crisis of 2008. Since then, they have added $100-billion to the national debt, in large part thanks to stimulus spending of dubious worth.

According to the Canadian Taxpayers Federation, as of last Friday, Canada’s debt stood at nearly $563-billion. This means the debt repayments made over the 11 years before the recession began have been wiped out, and that the federal treasury is back to where it was before the Liberals’ then-finance minister Paul Martin brought down his austerity budget in 1995.

Since the Tories took power five years ago, program spending has expanded by nearly 40% and the federal civil service has grown by nearly 20%. We’re sorry, but we just don’t trust a government with a track record like the Tories’ to be able to regain budget balance simply by holding the line on new spending.

They can promise all sorts of things, but what they seem best at doing is pretending not to be “conservative” at all.

The government may fall, as the opposition are calling for even higher spending on “universities, home care, daycare, unemployment, seniors and Quebec”. This may work to the Conservatives’ advantage as they’re (temporarily) riding high in the opinion polls, so they might be able to win a majority if an election is forced on them over this budget. Of course, the opposition can read the polls too, so they may not be as eager to throw Stephen Harper an opportunity to win an easy victory.

Update: Well, the budget was tabled in the House, the opposition parties all rejected it “as it stands”, and the prime minister has stated they will not accept any amendments. For Thursday’s performance in the Ottawa Little Theatre, the budget will get first reading, which means the first opportunity for the government to be defeated . . . which means a May general election.

“He is kind of like a rock star, a nerdy professor, and your crazy uncle rolled into one”

Filed under: Economics, Liberty, Politics, USA — Tags: , , , — Nicholas @ 09:22

Andrew Foy tries to place Ron Paul in the context of the modern Republican Party:

In his recent editorial “The Fighters vs. the Fixers,” appearing on National Review Online, Jonah Goldberg discussed what I suspect is his crop of contenders for the upcoming election: Tim Pawlenty, Mitch Daniels, Mitt Romney, Sarah Palin, Newt Gingrich, and Mike Huckabee. Considering that Paul smoked all of these candidates in the 2011 CPAC straw poll, where he garnered 30% of the vote, it was an odd choice to leave him out, and even more so when you account for the fact that Goldberg’s recently edited book Proud to be Right: Voices of the Next Conservative Generation featured several essays in which the authors expressed strong libertarian points of view.

Ah, but that CPAC straw poll was explained away as “Paultards” packing the event, which no other candidate would ever do, so the poll result was therefore invalid. Oh, and lots of chatter that Paul supporters would not be welcome to the next CPAC.

. . . Paul is an outspoken advocate of Austrian economics. Without being an economist myself, I would say that this economic school of thought argues against econometric models, state planning, bailouts, economic stimulus, and the monetary policy of the Federal Reserve. One of the hallmarks of Austrian economics, for which Hayek won a Nobel Prize, is the view that central banks create asset bubbles and hence the business cycle. Austrian economics predicted the recent housing collapse and economic recession when the mainstream economists and politicians, to whom we’re still wedded, were telling us that everything was “A-okay.”

In a 2007 address to the American Economic Association, Bernanke proclaimed, “The greatest external benefits of the Fed’s supervisory activities are those related to the institution’s role in preventing and managing financial crises. In other words, the Fed can prevent most crises and manage the ones that do occur.” A year later, we were mired in the biggest financial collapse since the Great Depression. While the great majority of politicians today (Democrats and Republicans) are happy to heed the advice and inflationary policies of the Fed, such as QE2, Paul is a lone voice in the wilderness crying foul. Conservatives should welcome his dissent.

March 21, 2011

Colby Cosh: “is it quite all right for a news agency to have its own army?”

Filed under: Africa, Media, Middle East — Tags: , , — Nicholas @ 15:55

I was surprised to find that al-Jazeera’s coverage of the Egyptian uprising was of much higher quality than that of more traditional western news sources. Colby Cosh also thought al-Jazeera far exceeded the efforts of CNN and Fox News, among others:

. . . al-Jazeera seemed, for a moment, to be living up to its promise as a bridge between the Arab world and the West — if not transcending that promise and becoming something greater; a tribune of the Arab peoples and their neighbours; an influential, omnipresent witness of precisely the sort that the students in Tiananmen Square lacked; and, perhaps, one of the world’s essential institutions of news.

That potential is still there. The world is certainly a very much better place with al-Jazeera than without; it would be better still with five al-Jazeeras. But the time has come to raise a abstruse, nitpicky ethical point that reflects back on some of the Western journalists who have gone to work for al-Jazeera, and some of the Western leaders who have praised it so effusively. It’s this: is it quite all right for a news agency to have its own army?

I ask because it is a little difficult to disentangle al-Jazeera, which is owned by the Qatar Media Corporation, from the autocratic Qatari state. Sheikh Hamad bin Khalifa al-Thani is as nice as absolute dictators get — a man arguably in the tradition of the enlightened despots of Europe’s quite recent past, who shared outstanding personal qualities, a common commitment to education and equality, and a dedication to advancing liberal ideals, albeit by undemocratic means. It’s traditional, in enlightened autocracies, for the required oppression to officially be deemed temporary, and for this pretence of temporariness to be kept up at all costs. Official U.S. sources, keen on avoiding offence to an important ally, advance Qatar’s claim to already be a “constitutional monarchy”.

More re-Volting details on GM’s electric car

Filed under: Economics, Politics, Technology, USA — Tags: , , , , — Nicholas @ 15:20

Patrick Michaels looks at the Chevy Volt:

. . . GM was desperate for customers for what they perceived would be an unpopular vehicle before one even hit the road. It had hoped to lure more if buyers subtracted the $7,500 from the $41,000 sticker price. Instead, as Consumer Reports found out, the car was very pricey. The version they tested cost $43,700 plus a $5,000 dealer markup (“Don’t worry,” I can hear the salesperson saying, “you’ll get more than that back in your tax credit!”), or a whopping $48,700 minus the credit.

This is one reason that Volt sales are anemic: 326 in December, 321 in January, and 281 in February. GM announced a production run of 100,000 in the first two years. Who is going to buy all these cars?

Another reason they aren’t exactly flying off the lots is because, well, they have some problems. In a telling attempt to preserve battery power, the heater is exceedingly weak. Consumer Reports averaged a paltry 25 miles of electric-only running, in part because it was testing in cold Connecticut. (My engineer at the Auto Show said cold weather would have little effect.)

But not to worry! They’ve found someone to buy half of the total Volt production:

Recently, President Obama selected General Electric CEO Jeffrey Immelt to chair his Economic Advisory Board. GE is awash in windmills waiting to be subsidized so they can provide unreliable, expensive power.

Consequently, and soon after his appointment, Immelt announced that GE will buy 50,000 Volts in the next two years, or half the total produced. Assuming the corporation qualifies for the same tax credit, we (you and me) just shelled out $375,000,000 to a company to buy cars that no one else wants so that GM will not tank and produce even more cars that no one wants. And this guy is the chair of Obama’s Economic Advisory Board?

Japan’s bifurcated power grid

Filed under: Health, History, Japan, Technology — Tags: , , , — Nicholas @ 10:00

Charles Stross points out something I was completely unaware of:

Western Japan and Eastern Japan do not share an electricity grid; because of an historical accident, in the 1890s when they were first getting electric lighting, Osaka, in the west, chose to run at 60Hz and Tokyo, in the east, picked 50Hz. Consequently there’s no grid interconnect between the two halves of the Japanese electricity supply system.

Eastern Japan has had 15 nuclear reactors scrammed by an an earthquake. Some of them may be checked out and approved to start delivering base load again over the coming months, but they all need a thorough inspection at this point — and we know for sure that at least three of them will never work again (not after they’ve had seawater pumped through their primary coolant circuit).

We are now heading into summer. And Tokyo doesn’t have enough electricity to maintain power everywhere even in spring.

Summer in Tokyo is savage: temperatures routinely top 35 celsius with 100% humidity. In a heat wave, it can top 40 degrees for days on end. Back when I visited in late August of 2008, the heat wave had broken and daytime temperatures were down under 37 degrees again — the week before it had been over 42, and joggers had been dropping dead in the street.

Greater Tokyo also has 30-million-odd people, of whom a large proportion — maybe 20% — are 75 years or older.

Elderly folks do not handle heat waves well; they get dehydrated easily and if they don’t have air conditioning they die in droves. Normally it’s not a problem in Tokyo because 80% of households have air conditioning, but with rolling blackouts and insufficient power it’s another matter.

It was bad in France, but the death toll among the elderly in Japan may be much higher.

The nuclear power industry’s technological lock-in

Filed under: Economics, History, Science, Technology — Tags: , , , — Nicholas @ 09:20

Leon Neyfakh looks at how light water reactors became the “default” choice of the nuclear power industry:

Japan’s reactors are “light water” reactors, whose safety depends on an uninterrupted power supply to circulate water quickly around the hot core. A light water system is not the only way to design a nuclear reactor. But because of the way the commercial nuclear power industry developed in its early years, it’s virtually the only type of reactor used in nuclear power plants today. Even though there might be better technologies out there, light water is the one that utility companies know how to build, and that governments have historically been willing to fund.

Economists call this problem “technological lock-in”: The term refers to the process by which one new technology can prevail over another for no good reason other than circumstance and inertia. The best-known example of technological lock-in comes from the 1970s, when VHS and Betamax, two different kinds of videotape, competed in the market until VHS gained a slight lead and then leveraged it to total domination. Whether the VHS format was actually superior to Betamax didn’t matter. After the lock-in, consumers no longer had a choice.

Much more is at stake in nuclear power. Some reactor designs are safer than others in an accident; some are more efficient than others in their use of fuel and produce less nuclear waste. The fact that the industry settled on light water over any number of alternatives was determined in the years after World War II, when the US Atomic Energy Commission and Navy Admiral Hyman Rickover made a series of hasty decisions that irreversibly set the course for how nuclear power plants around the world are built today.

“There were lots and lots of ideas floating around, and they essentially lost when light water came to dominate,” said Robin Cowan, a professor at the University of Strasbourg and the University of Maastricht who wrote a 1990 paper in The Journal of Economic History about the nuclear industry’s technological stagnation. “The market tends to choose a dominant design before it’s optimal, and it tends to under-explore.”

March 20, 2011

Visualizing radiation by xkcd

Filed under: Health, Science — Tags: , — Nicholas @ 12:09

Radiation dose chart
Click for full-size image

Note the warning at the bottom of the image:

If you’re basing radiation safety procedures on an internet PNG image and things go wrong, you have no one to blame but yourself.

Fuller explanation here.

Stilton cheese

Filed under: Britain, Bureaucracy, Europe, Food, Law — Tags: , — Nicholas @ 11:48

In the comments to a post at BoingBoing about something called a shooter’s sandwich (which itself sounds remarkably edible) was a link to Huntsman cheese. I’ve actually had Huntsman cheese, although I didn’t know it had a formal name: it’s Stilton and Double Gloucester cheeses in alternating layers (very tasty).

Having already made myself hungry — I got up late this morning and still haven’t had breakfast — I followed the link for Stilton cheese to discover the following little bit of EU nomenclature inanity:

Stilton is a type of English cheese, known for its characteristic strong smell and taste. It is produced in two varieties: the well-known blue and the lesser-known white. Both have been granted the status of a protected designation of origin by the European Commission, together one of only seventeen British products to have such a designation. Only cheese produced in the three English counties of Derbyshire, Leicestershire, and Nottinghamshire — and made according to a strict code — may be called “Stilton”. This means that cheese produced in Stilton, the village in Cambridgeshire for which the cheese is named, would not legally be allowed to be called Stilton Cheese.

Absurd, right? Well, for a change, there is actually a good reason for the restriction:

It is commonly believed that the pioneer of blue Stilton was Cooper Thornhill, owner of the Bell Inn on the Great North Road, in the village of Stilton, Huntingdonshire. Traditional legend has it that in 1730, Thornhill discovered a distinctive blue cheese while visiting a small farm near Melton Mowbray in rural Leicestershire — possibly in Wymondham. He fell in love with the cheese and made a business arrangement that granted the Bell Inn exclusive marketing rights to blue Stilton. Soon thereafter, wagon loads of cheese were being delivered to the inn. Since the main stagecoach routes from London to Northern England passed through the village of Stilton he was able to promote the sale of this cheese and the fame of Stilton rapidly spread. However, the first known written reference to Stilton cheese was in William Stukeley’s Itinerarium Curiosum, letter V, dated October 1722, and in his 1724 work A tour thro’ the Whole Island of Great Britain Daniel Defoe describes Stilton cheese as “famous”.

So the cheese called “Stilton” isn’t actually made in Stilton. However, the Bell Inn is still there, and you can indeed get a meal with Stilton cheese in the building that helped to make it famous. I’d dig out my photos of the building, but I was there in the pre-digital photography age, so I’m not at all certain where they are . . .

Graphic: History of Science Fiction

Filed under: Books, History, Media — Tags: , , , — Nicholas @ 11:18

It’s huge: click on the image to see the full-size version:

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