Quotulatiousness

August 14, 2010

China’s petroleum producers make more sense than the US government

Filed under: China, Economics, Environment, USA — Tags: — Nicholas @ 01:01

Not everybody has bought into the “ethanol as a clean alternative to petroleum” bullshit: China’s petroleum producers are asking the Chinese government to stop subsidizing the corn-to-ethanol project (similar to the US government’s subsidy program).

[. . .] to enjoy the subsidy of 1880 Yuan per ton of alcoholic gasoline for vehicles and the tax-exemption policy for the corn-to-ethanol project, some plants in China began a wave of buying corn, causing the severe shortage of corn for animal feed and the rapid increase of corn prices.

“In the first half year of this year, China imported 78 million tons of corn, mainly due to the higher domestic corn price than overseas. In July, the average corn price in northeast China was 1845 Yuan per ton, rising by 15.7% year on year” said Zhang Jianbo, a market analyst with Distribution Productivity Promotion Center of China Commerce…

Of course the US has also been criticized for this insane subsidy of corn ethanol as well and blamed for dramatic price increases in corn based products in Mexico, and South/Central America.

The bottom line is corn ethanol makes no economic sense, never did, and when the total environmental impact end-to-end from dirt farm to tailpipe is considered, its even worse than ordinary gasoline. Its always been a lose/lose proposition all the way around, and many of the environmental groups have started to cool on their enthusiasm for it as the real cost/impacts manifested themselves.

Even if you’re not a whole-hearted “green”, this kind of market-rigging by government intervention should be greeted with derision: it’s not “green” to consume more resources to produce a less energy-intensive end-product and pretend it’s a viable substitute. This is another case where the government would produce better environmental results by burning the dollar bills rather than using them to subsidize corn production for ethanol.

August 10, 2010

Free flight in Indian helicopter? No, thanks, I’ll walk.

Filed under: India, Military, Politics — Tags: , , , — Nicholas @ 07:51

Strategy Page would recommend that you think twice before climbing aboard an Indian helicopter:

The Indian Air Force is being criticized for mismanaging its fleet of over 300 helicopters. It gets worse when you realize that this is not enough helicopters for all of the needs of the Indian armed forces. But despite that, over ten percent of those helicopters are diverted to UN peacekeeping operations and for transporting VIPs (senior government officials). In addition, it’s been publicized that helicopters are often assigned to fly the wives of senior air force officials. That, and maintenance problems, mean that only about 60 percent of the helicopter fleet is available for military needs.

It gets worse. Despite needing a third more helicopters, the helicopters are dying of old age. As in 78 percent of current choppers have exceeded their design life. The aging equipment was no secret, but the navy only began obtaining new helicopters in the last three years (and for the five years before that obtained none.)

August 6, 2010

QotD: Nuclear weapons

Filed under: History, Japan, Military, Quotations, WW2 — Tags: , — Nicholas @ 12:05

Sixty-five years ago today: “On Monday, August 6, 1945, the nuclear weapon Little Boy was dropped on Hiroshima by the crew of the American B-29 bomber Enola Gay, directly killing an estimated 80,000 people. By the end of the year, injury and radiation brought total casualties to 90,000-140,000. Approximately 69% of the city’s buildings were completely destroyed, and 6.6% severely damaged.” – Hiroshima

“Little Boy,” the aptly named 16 kiloton bomb that took out Hiroshima, was — in comparison to the nuclear devices in the world’s arsenals — sort of a light field artillery shell. There was, at the time, a second bomb called “Fat Man.” Weighing in at 21 kilotons it would put paid to Nagasaki on August 9, 1945. With the erasure of Nagasaki, the world was fresh out of nuclear weapons. It was only a temporary lapse. Today we’ve got about 25,000 of these little items of discipline scattered about.

The largest nuclear bomb ever detonated in the atmosphere was The Soviet Tsar Bomba , or “Big Ivan” which at 50 Megatons was very harmful to every living think on Novaya Zemlya Island (located above the arctic circle in the Arctic Sea) in October of 1971. Whatever else you might think about them, you can’t deny those Soviets dreamed BIG dreams.

Gerard Vanderleun, “Nukes: Time for a Live Demo”, American Digest, 2010-07-06

August 3, 2010

Japan’s centenarians are going missing

Filed under: Bureaucracy, Health, Japan — Tags: — Nicholas @ 07:36

After the discovery that the oldest man in Tokyo had actually been dead for years, it should come as no surprise that the oldest woman in Tokyo has apparently been missing for decades:

Fusa Furuya, aged 113, had been registered as living with her daughter.

But the daughter says she has not seen her mother since the 1980s.

According to government data, there are more than 40,000 centenarians in Japan. But the discoveries in Tokyo have cast doubt on the accuracy of the figures.

Despite being reputed to be Tokyo’s oldest woman, it appears no-one had bothered to check that Mrs Furuya was still alive — until now.

Local council officials have been visiting the very elderly after the body of Sogen Kato, thought to be Tokyo’s oldest man, was found last week.

The police believe he had been dead for more than 30 years.

When officials went to Ms Furuya’s home, they discovered that she had been missing for decades.

Unlike the earlier case, where the man’s family had continued to collect his pension, the family of Fusa Furuya don’t appear to have been involved in pension fraud . . . although you do wonder why they hadn’t noticed her being missing all this time.

July 26, 2010

The unwillingness to disbelieve

Filed under: China, Economics, India, Media — Tags: , , , , , — Nicholas @ 15:03

Mike Elgan debunks the latest “mind-crogglingly cheap computer for the masses” announcement:

“India unveils $35 computer for students,” says CNN.com. “India unveils prototype for $35 touch-screen computer,” reports BBC News. “India to provide $35 computing device to students,” says BusinessWeek.

Wow! That’s great! Too bad it will never exist. That this announcement is reported straight and without even a hint of skepticism is incomprehensible to me.

[. . .]

India itself doesn’t build touch screens. They would have to be imported from China or Taiwan. The current price for this component alone exceeds $35. Like touch screens, most solar panels are also built in China. But even the cheapest ones powerful enough to charge a tablet battery are more expensive to manufacture than $35.

Plus you need to pay for the 2GB of RAM, the case and the rest of the computer electronics. Even if you factor in Moore’s Law and assume the absolute cheapest rock-bottom junk components, a solar touch tablet with 2GB of RAM cannot be built anytime soon for less than $100.

More to the point, no country in the world can build a cheaper computer than China can. The entire tech sector in China is optimized for ultra-low-cost manufacturing. All the engineering brilliance in India can’t change that.

There’s also the point that government bureaucracies and university engineering departments are not designed for or experienced in the mass production techniques that any of these “ultra-cheap but powerful” computing initiatives all require. Have you ever heard of a government that could keep their hands (and political priorities) out of the critical decision of where this wonder device would be assembled, tested, packed, and distributed? The “industrial policy” wonks would need to get intensely involved in such a decision and the location would have to meet diverse electoral and financial requirements (note that the economics of the project won’t even make the top five priorities in the process).

Awarding the contract to just one area would be unthinkable: the benefits must be seen to be helping areas that elected the current government and emphatically not going to opposition ridings. The horsetrading over that alone would consume any possible price advantage such a scheme might have over ordinary computers and software bought commercially.

July 19, 2010

Canada well known to Afghan would-be refugees

Filed under: Asia, Cancon, Economics, Military, USA — Tags: , , — Nicholas @ 12:01

Strategy Page updates the story about the 17 Afghan military trainees who disappeared from their assigned quarters in Texas while on a language training course:

Now the air force has carefully checked their records and found that at least 46 foreign troops had walked away from their training courses in the last five years. All but two (one from Iraq, another from Djibouti) were Afghan.

These men had disappeared from a U.S. Air Force language school, where they learned enough English so they could attend U.S. military training courses. The media coverage implied that some of these guys could be terrorists, who joined the Afghan military, qualified for training in the United States, and then disappeared once you got there, so they could carry out attacks. But it appears the reason behind the disappearances was economic, rather than ideological or religious.

That does make a lot of sense, from their point of view: going from one of the poorest countries in the world to one of the richest, the temptation to stay must be considerable. Of interest to Canadians:

After the first 17 missing Afghans was revealed, American immigration officials went looking for them. They soon reported that they had tracked down at least eleven of the missing Afghans, using just Facebook. These men had gone to Canada, using the military ID the U.S. provided them while in the United States. It’s easier to claim asylum in Canada, a fact widely known in Afghanistan (and often exploited by those leaving the country for a better life in the West.) U.S. officials believed they had located all but two or three of the missing seventeen Afghans, and expected to track down the rest soon.

In spite of the fears of pacifists in Canada, apparently our “warmongering” hasn’t seriously damaged our pre-existing reputation as a soft-touch for refugee claimants.

July 15, 2010

Reasons not to get angsty over China’s growth

Filed under: China, Economics, Government, USA — Tags: , , , — Nicholas @ 10:02

The ever-sensible and highly entertaining Monty points out that Americans fretting over the growth of the Chinese economy are bothered over (comparatively) minor issues:

The angst over China’s economic ascent continues to smell rather strongly of the same panic the US felt over Japan in the 1980’s. I respond to this panic in two ways: 1) I am happy for the average Chinese citizen, who is finally seeing some benefit from their labor after 400 years of failure and ineptitude — they deserve any success that comes their way; and 2) America is in the enviable position of being able to worry about unlikely hypotheticals because we are the world’s largest economy and will continue to be so for much of the 21st century and perhaps beyond. We face severe problems — public spending being #1 among them — but our competitors also have problems, in many cases more dire than our own. We as a people have a habit of overestimating our own problems and underestimating those of our adversaries. Don’t begrudge the Chinese people some measure of success; just hope that they can cast off their Communist government and move towards being a freer people. There may come a time when the US and China square off as enemies rather than just competitors, but that outcome is not inevitable.

Fitch agrees with me about taking the whole “China is taking over the world” thing with a grain of salt. The Chinese are hiding an enormous amount of bad debt. If China hopes to succeed beyond their export-driven economy, their finances are going to have to become more transparent. And when/if this happens . . . look out below. That crash is going to make our little economic vacation of the past couple of years look mild in comparison.

I know that it may appear that I’m anti-Chinese based on some of my past economic postings, but that’s not true. I’m actually quite positive about China in the long term — once they manage to get rid of the last trappings of authoritarian government and overcome the huge dead hand of army-controlled crony capitalism. Most Chinese markets are not yet free, but they’re in most cases far more free than they were a decade ago. That’s wonderful, both for ordinary Chinese people and for the rest of the world. China has immense untapped resources of skills, talents, and ideas that can’t be accessed in a controlled economy. If-and-when their economy becomes as free as typical western markets, sit back and watch all that human ingenuity go to work.

On the down side, while China is becoming a bit more free, many western countries are becoming less so: piling on regulations and creating additional barriers to economic growth (Canada, for the most part, has not been doing this . . . it’s a significant factor in Canada’s escape from recession). If these trends continue, perhaps the worriers-about-China will see the Chinese economy vault into first place as the American government tries to control everything.

June 21, 2010

China’s latest currency move

Filed under: China, Economics, USA — Tags: , , , , — Nicholas @ 10:31

The always entertaining Monty has a few thoughts that are worth considering:

BNP Paribas forecasts parity (and below!) for the poor, unloved Euro. The Euro is like the easy girl in every town: popular enough when she was young and cute, but now that she’s looking like nine miles of bad road, no one wants to be seen with her or has a kind word to say about her.

After insisting for months that they weren’t keeping the Yuan artificially devalued via the dollar-peg, the Chinese lift the peg, shout Squirrel!, and run away.

Meanwhile, a floating Yuan may not work out quite the way the US thinks it will. This happens to be my view — I think the export-driven Chinese economy is a lot weaker than they’re letting on (or may even realize themselves), and they have severe internal economic problems that the authoritarian government has been papering over for years. There will be a huge banking crisis in China at some point when the huge numbers of bad loans come to light — they can’t hide them forever. Further, the recent labor troubles in China may be only the leading edge of a big wave.

Of course, if you’ve been following Quotulatiousness for any time, you’ll know that I’m fully in agreement with Monty about the Chinese economy. In the long term, I’m quite hopeful about China and their ongoing liberalization and modernization, but in the short- to medium-term I think there are many problems that need to be resolved and that will cause a great deal of upheaval and disturbance.

Remember that even with the best good will in the world, China’s economy is still moving painfully from state-run to private enterprise, and the most common stop on that road is crony capitalism (that’s like capitalism without the rule of law but with private armies). The good news is that a greater proportion of the economy is adjusting to free(r) markets, but there’s still lots of zombie corporate entities set up and run by various branches of the government . . . and the army.

In the latest move, the exchange rate change may not be the panacea that too many American politicians are hoping for:

China’s decision to move away from its currency peg might mean the yuan weakens against the dollar instead of strengthens as Washington wants, Nouriel Roubini, one of Wall Street’s most closely followed economists, said Saturday.

China said Saturday it would gradually make the yuan more flexible after pegging it to the dollar for nearly two years, a move that the U.S. government and others around the world have long been calling for.

It won’t fix the underlying trade issues, even if the yuan moves in the “desired” direction, as the problem is much more rooted in American policy than in Chinese currency rates. As long as the American government insists on increasing the debt load, piling on additional regulatory regimes, and directly interfering in corporate decisions, the longer the economy will be unsettled. Stability is a key condition for economic recovery, yet the American government demonstrates a knee-jerk reaction against stability for every opportunity that arises.

Oh, and if you think the US banking system has bad loan issues, wait for the other shoe to drop:

China’s banking regulator warned Tuesday that the nation’s banking system faces risks from bad loans, particularly among those made to local governments and to the real-estate sector.

In its 2009 annual report, the China Banking Regulatory Commission urged banks to use cause and scientific risk analysis in their lending, and warned of dangers to the sector, both from lending in the past year and from development in the future.

June 18, 2010

The final word on the Air India atrocity?

Filed under: Bureaucracy, Cancon, India, Law, Religion — Tags: , , , , , — Nicholas @ 12:23

This National Post editorial summarizes the report on the bombing of Air India flight 182 twenty-five years ago:

Yesterday, former Supreme Court justice John Major delivered his report into the attack, and the bungled investigation that followed. It is a damning indictment of the performance of the police and the government which does not mince words in portraying officials as slow, disorganzied and curiously detached from the enormity of the attack, which killed all 329 passengers, most of them Canadians. The government was simply not prepared to deal with terrorism, he said, and the two major investigating forces — the RCMP and CSIS — became bogged down in turf wars, bureaucratic battles and alarming displays of investigative ineptitude.

It has long been argued that Canadians’ seeming indifference to the bombing derived from the fact most of the dead were of Indian background, a suspicion Mr. Major addressed directly. “I stress this is a Canadian atrocity,” he said. “For too long the greatest loss of Canadian lives at the hands of terrorists has somehow been relegated outside the Canadian consciousness.”

Prime Minister Stephen Harper met with relatives of some of the victims, calling the report a “damning indictment” and pledging to respond to Mr. Major’s call for compensation and an apology to the victims’ families.

Though it has been apparent for years that the police response to the tragedy was riddled with errors, the extent of the blundering as detailed in Mr. Major’s report is no less startling. While victims’ families clamoured for information and some form of justice against the killers, CSIS and the RCMP lost themselves in bureaucratic battles, treating one another more as rivals than as co-operative forces engaged in the same search for answers. Between them, he noted, there was ample intelligence to signal that Flight 182 was at high risk of being bombed by Sikh terrorists. Yet taken together, their performance at gathering, analysing and communicating information was “wholly deficient.

As I mentioned the other day, the RCMP has largely squandered their once sterling reputation, and Mr. Major’s report makes it clear that the rot has been long-established and festering. It’s up to the federal government to make some serious changes to save that organization — or to disband it and start over fresh. For historical reasons, I hope reform is possible, but I’m not betting on it.

The point that most Canadians didn’t see this atrocity clearly because the vast majority of the victims were of Indian origin is well made: Canadians, for all of our vaunted “multicultural values”, didn’t see all those innocent people as part of our nation. Racism isn’t pretty, especially for a country that pretends to be beyond such historical problems.

A “new chapter in U.S. history”

Filed under: China, Economics, Government, Humour, USA — Tags: , , , , , — Nicholas @ 10:23

Ron Hart congratulates President Obama for delivering on his promised change:

We are so in debt to China that President Obama had to visit their president in his first year in office. It was an important meeting between the most powerful communist leader in the world and the president of China.

Obama is so popular in China that a nightclub named after him opened in Beijing. In keeping with the Obama theme, the club opened with $10 trillion in debt. It will, hopefully, close in just four years with $15 trillion in debt and no apologies to its “hope-based” investors.

[. . .]

To sum up our situation just short of two years into this Obamanation of an administration: Our debt is much higher, an unwanted ObamaCare bill that will cost us at least $2 trillion more than predicted was rammed through Congress, more troops are in Afghanistan, unemployment is much higher even after a union handout “stimulus” bill, and the biggest tax increase in American history is coming in 2011. So yes, Mr. President, technically I guess you can say you have brought about “change.”

As for your assertion, Mr. Obama, that you are going to usher in a “new chapter in U.S. history,” it looks like you will make good on that too. Unfortunately, it will be Chapter 11.

H/T to Jon, my former virtual landlord.

June 4, 2010

Detroit has no monopoly on post-apocalyptic urban scenery

Filed under: Asia, China, History, Japan — Tags: , , — Nicholas @ 21:56

For example, check the images from Battleship Island (Gunkanjima) in Japan:

What’s now decay and rot once was bright and brilliantly full of hope: Who lived here? What were their lives like? What happened? How did it all come apart? How did it all crumble to almost nothing?

In the case of Hashima Island, or Battleship Island (Gunkanjima in Japanese) as it’s often called, hope and optimism became dust and decay because one black resource (coal) was replaced by a cheaper black resource (oil). Populated first in 1887, the island — which is 15 kilometers from Nagasaki — only began to really, and phenomenally, become populated much later, in 1959.

Even the nickname “Battleship Island” has a bit of history behind it.

H/T to Ace of Spades for the original link.

May 21, 2010

“Courageous Channel” exercise cancelled in South Korea

Filed under: Asia, Military, USA — Tags: , , , — Nicholas @ 09:07

Strategy Page reports that a regular exercise has been cancelled to avoid further raising tensions between North and South Korea:

In South Korea, the semi-annual American evacuation (for American civilians) exercise has been cancelled. This was because relations between North and South Korea are particularly tense. It was felt that this exercise, which involves setting up the 18 evacuation points and having 10,000 people actually go through some of the procedures involved during an evacuation, might make the unstable North Koreans do something rash. The tension is the result of North Korea torpedoing a South Korean warship two months ago, killing 46 sailors. The North Koreans officially denied they did it, although North Koreans have been congratulating each other about it, and the North Korean general in charge of such things was very publicly promoted for no particular reason. Recently, South Korea announced it was certain the ship was sunk by a North Korean torpedo. North Korea called that accusation an insult and threatened war.

Called Courageous Channel, the evacuation drill has been held twice every year (in the Spring and Fall) since 1996. That was when someone noticed that there a lot more U.S. citizens living in South Korea, particularly in and around the capital Seoul. This city contains a quarter of South Korea’s population, and is a primary target for any North Korean invasion. The city is within range over a thousand North Korean guns and rocket launchers. If there were an actual evacuation, some 140,000 American citizens (and some non-citizen dependents) would be moved south.

The report on the sinking of ROKS Cheonan was issued earlier this week.

May 20, 2010

Torpedo damage and the sinking of the Cheonan

Filed under: Asia, Military — Tags: , , — Nicholas @ 12:18

Geoffrey Forden posted information on likely causes of the sinking of the South Korean frigate Cheonan before the formal report was released:

One of the “mysteries” surrounding the sinking of the ROK’s warship, Cheonan, is that the explosion split the ship in half, a result our popular culture has trained us to forget. After all, World War II movies always show a torpedo strike in the same way: one or two white streaks quickly approaching the ship followed by a localized jet of water where the torpedo struck the hull. Sailors stream out of their bunks to jump over the side as the ship keels over, taking in water. Below the water line, jagged holes, punched by the explosive force of the warhead, let in sea water. Compartments quickly (or if dramatic effect is needed, slowly) fill with water, drowning all the bit players, uh, sailors trapped below.

These movies have influenced our expectations for the damage caused by modern torpedoes even though there are much more efficient ways for a torpedo to destroy a surface ship. [. . .]

The second major effect damaging the hull, and probably the one that caused the vessel to break in half, was a jet of water blasting its way through the ship. This jet was formed as the gas bubble created by the initial explosion collapsed upon reaching the ship’s hull.

This is the way modern torpedoes sink ships. Everything about the Cheonan’s sinking is consistent with either a torpedo or submerged mine blowing up beneath the ship’s keel.

Fascinating though this is, the official report (as filtered through what was made available to international media) discounted this mechanism:

South Korean scientists at the Sound Engineering Research Lab of Soongsil University have performed an analysis of the acoustic signals (the media report mistakenly calls them seismic waves) associated with the sinking of the Cheonan. It would be very nice to see their actual analysis — and the data would be even cooler — but it appears on the face of it to be a very interesting result. Their main conclusion, again based solely on the media report of their findings, seems to be that the Cheonan was actually struck by a heavy torpedo. (The say the most likely candidate is the Chinese Yu-3 heavy torpedo with a 205 kg high explosive warhead.) According the article, the South Korean scientists believe the torpedo struck the hull of the Cheonan but since the explosive is significantly aft of the torpedo’s bow, the center of the explosion was a little over 2 meters away. They rule out the “kill mechanism” being a bubble jet.

Interestingly, a summary in New Scientist (which is where I found the link above), seems to have been written before the updated information was added to the original post, as it attributes the sinking to the “deadly bubble jet”.

April 15, 2010

QotD: Chinese espionage in Canada

Filed under: Cancon, China, Economics, Quotations — Tags: , , — Nicholas @ 12:39

China’s not buying our oil; it’s buying the reliable flow of Canadian corporate profits and our stable economic outlook.

Is it a national security risk to Canada?

No, again. It is true that, according to CSIS, the Chinese government represents the largest espionage threat to Canada, stealing the equivalent of $1-billion a month from our country in industrial secrets. (That’s more than our annual exports to China.)

But that espionage is done illegally by Chinese students, expats and other sympathizers, not through the legal ownership of share certificates. No doubt our high-tech energy secrets are being stolen and will continue to be stolen, but that is not happening because of a Wall Street deal. The central strategic value of the oil sands is not at risk.

Ezra Levant, “Pipeline to Asia”, National Post, 2010-04-15

Uninhabited islands could be flashpoint in Sino-Japanese conflict

Filed under: China, Japan, Military — Tags: , , , — Nicholas @ 07:35

A group of uninhabited islands south of Okinawa have the potential to increase tensions between China and Japan. The Senkaku island group is subject to overlapping claims from China, Taiwan, and Japan:

Japan reports that, for the third time in the past 18 months, Chinese warships have been spotted south of the Japanese Island of Okinawa. This time, it was two Chinese submarines, running on the surface. That had never been seen before, in the area near the Senkaku islands (which are claimed by China, Taiwan and Japan). The Senkakus are eight uninhabited islands, which in the past were only used occasionally by fishermen. The Senkakus are 220 kilometers from Taiwan, 360 kilometers from China and 360 kilometers from Okinawa (which is part of Japan).

[. . .]

Five years ago, a Chinese oil drilling platform, in disputed waters halfway between China and the Japanese island of Okinawa, began producing natural gas, despite ongoing negotiations over who owns what in that patch of ocean. The Chinese spent two years building that platform, in waters claimed by Japan. A second platform was later built, as well as an underwater oil pipeline for both platforms. China regularly sends groups of warships to patrol the area, to underline their belief that this bit of water is under Chinese control. Japan would probably win any naval war with China, but since China has nuclear weapons, and Japan does not (at least not right now), such a war could go seriously against Japan. This has been brought up in Japan before, and it is feared that the issue may lead to Japan secretly, or openly, building nuclear weapons (which it could certainly do, and quite quickly.)

I’m certainly hoping that this is just speculation on the part of Strategy Page (the bit about nuclear weapons), as territorial disputes over islands do have a way of getting out of hand (see Falkland Islands, for example).

« Newer Posts — Older Posts »

Powered by WordPress