Quotulatiousness

March 16, 2013

More on the Cyprus banking situation

Filed under: Business, Economics, Europe — Tags: , , , , — Nicholas @ 11:44

At Forbes, Tim Worstall explains why the mandatory levy on bank accounts is an epic facepalm:

There’s nothing particularly bad about making depositors carry some of the load of a bank failure. Indeed, it has something to recommend it: if it happens occasionally then people will take more care over where they put their money and what the banks do with it.

However, there’s a very great difference between allowing depositors without government insurance to take losses and actually reneging on the previously promised government insurance. And it’s that second that they’re actually doing here. [. . .]

Under the system until yesterday all depositors in Cypriot banks were insured up to the value of €100,000 with any one bank. Today that solemn and governmental promise has been shown to be false. And not even the European Union nor the European Central Bank are going to make them stick to it. Indeed, very much the other way around. The EU and ECB are insisting that the Cyprus authorities breach this deposit insurance provision.

As I say, there’s nothing wrong with making uninsured depositors take some of the pain. Certainly nothing at all wrong with making those with large deposits take a haircut. The problem is when government has said “we’ll insure this” and when push comes to shove they say “err, no, we won’t”. And the problem with this is that it makes all future EU deposit insurance worth that much less.

The Cyprus “rescue” includes nasty haircut for savings held in consumer banks

Filed under: Economics, Europe — Tags: , , , , — Nicholas @ 11:23

The BBC reports on the way Cypriot bank accounts are being levied as part of the “rescue”:

Cyprus may be one of the eurozone’s tiniest economies — its third smallest — but for the next 48 hours or so, it may be the single currency area’s most important.

The point is that there could be serious repercussions for other financially over-stretched economies, such as Spain’s and Italy’s, from the nature of Cyprus’s 10bn-euro (£8.7bn) bailout — which includes, for the first time in any eurozone rescue, losses imposed directly on depositors in banks.

These losses, running to almost 6bn euros, stem from an emergency levy of 9.9% on bank deposits over 100,000 euros (£86,600) and 6.75% below that.

The levy serves as a caution to lenders to banks that they should take care where they place their funds and avoid banks which overstretch themselves — as Cypriot banks did.

But precisely the same arguments — for what is known as a “bail-in” by private-sector creditors — were put by liberal-market purists at the peak of the banking crises in Ireland and Spain.

In the end, eurozone governments were terrified that if lenders to Spanish and Irish banks were punished, there would be a devastating domino effect of withdrawals of funds from banks in other weaker economies — a domino effect that would jeopardise the survival of the eurozone.

So, reckless lenders to Spanish and Irish banks were not punished.

There’s a strong possibility that savers in other European countries with weakened banking systems to draw the correct conclusion quickly … and start pulling their money out of the banking system. And also expect the EU to react with draconian currency restrictions. It’s a potential banking sauve qui peut.

March 15, 2013

Britain’s class system may have changed, but the snobbery is still all-pervasive

Filed under: Books, Britain, Food, Media — Tags: , , , , — Nicholas @ 09:06

Tim Black reviews Consumed: How Shopping Fed the Class System, by Harry Wallop.

In short, class has stopped being the basis for a political identity; it has become a form of identity politics. As Wallop puts it: ‘Class is no longer what we do with our hands nine to five, it is what we do with our wallets at the weekend. How that money arrives in our wallets must play a part, but how we define ourselves and how others view us mostly comes down to the weekly drive to the local retail park, rather than the daily trudge to the factory.’

Consumed is a snarking and sniping attempt by Wallop, a consumer affairs writer at the Daily Telegraph, to anatomise these new consumerist class identities. At the upper end are the super-rich Portland Privateers, named after the private Portland Hospital in central London, where pregnancies come to fruition with the obligatory C-section at the cost of several grand and the toiletries are Molton Brown. Then in descending order come: the Rockabillies, defined by their love of a British holiday, ideally in the Cornish town of Rock; the Wood-Burning Stovers, who love a wood-burning stove almost as much as they love the Guardian; the Middleton Classes, who – like Carole Middleton, the Duchess of Cambridge’s mother – have vaulted up the social ladder, usually taking in a grammar school en route; the Sun Skittlers, a resolutely old-school working-class identity devolving upon reading the Sun, playing skittles, and earning enough to have bought one’s own home; the Asda Mums, who spend wisely, but take safety in big, well-known brands; and the Hyphen-Leighs, whose much sneered-at social aspiration is marked out by the unusually spelled double-barrelled names and the commitment to high-status brands, from Burberry to Paul’s Boutique. Other monikers crop up throughout, but these are the main ones.

If Consumed sounds rife with all forms of snobbery, from the inverse to the outright, that’s because it is. And this ought to be expected, too. In a society in which how you consume has been allowed to determine your identity, then snobbery, which was always a vice of the consuming class par excellence, the non-productive aristocracy, is bound to flourish. It allows groups to include initiates and to exclude the vulgar. Hence, as Wallop relentlessly details, the consumption choices of other people (and it is always other people) have now become objects of mockery and often condemnation.

[. . .]

As Wallop records, eating out in the 1950s was for many limited to Lyons Corner Houses or fish-and-chip shops. And it wasn’t just the high-cost of restaurants that deterred many; the arcane rituals of the hotel dining experience were equally off-putting. This is why, argues Wallop, the British embraced the classless, ritual-free environs of the fast-food joint, first in the form of Wimpy and latterly in the shape of McDonald’s or Burger King. ‘Of course, eating out in fast-food places, or indeed any places, never became a classless activity’, writes Wallop. ‘Classless merely became a euphemism for working class. No more so than with fast food, which over time took on a demonic quality, at least in the eyes of those who refused to eat it. Junk food for the junk classes.’

Junk food for the junk classes. In that one sentence, Wallop touches upon the crucial conflation of the object of consumption with those consuming. When Wood-Burning Stovers complain about McDonald’s, they are really complaining about the type of people that eat there.

March 13, 2013

Argentinian president derides Falkland Islanders as “squatters”

Filed under: Americas, Britain — Tags: , , — Nicholas @ 08:24

I figured the Argentine government would brush off the overwhelming result of the Falkland Islands referendum once it became clear that the result would not flatter Argentinian egos:

In her first public comment on the referendum, the outspoken president dismissed the vote as a “parody” and thanked Argentinians for their “monolithic opposition”.

She said the referendum, where residents voted in favour of remaining a British overseas territory, was “as if a group of squatters had voted on whether to continue to occupy a building”.

Speaking at an event at the Presidential Palace in Buenos Aires, she added: “We reaffirm our commitment to dialogue in accordance with the UN.

“To achieve a solution that also included the interests of those who live on our Malvinas islands.”

She quoted British Foreign Office minister Hugo Swire as saying that the referendum result didn’t change the situation “from a legal point of view”.

The vote wasn’t even close, with only three votes for the “No” option out of 1,517 total votes cast.

March 11, 2013

Best comment on the EU move to penalize Microsoft over web browser choice

Filed under: Europe, Humour, Law, Technology — Tags: , , , — Nicholas @ 09:06

From “Purp” at Ace of Spades H.Q.:

In other news, the EU plans to fine Microsoft $700M dollars because European users are apparently too stupid to figure out they can download other browsers for free. Porn and bootleg software? Mad skilz baby, mad skilz. Browsers? Not so much…huh? what? where am I? what is this thing, why does it beep? Help, I’ve fallen down and can’t get up.

The fine works out to around $50 for each machine in violation that was shipped by OEM’s. The EU says they’re cutting Microsoft a bargain cuz they could have been fined $7B, or $500/machine. Either way, its a pretty harsh shakedown caused by Euro-users (apparently) being lemming like incompetent imbeciles who are unaware other stuff exists. Its truly a wonder they manage to find the power switch…or maybe the EU sends out specially trained techs to turn on computers for people?

March 10, 2013

British Tories float the notion of leaving the European Convention on Human Rights

Filed under: Britain, Europe, Government, Law — Tags: , , , , — Nicholas @ 09:45

It’s not a declared aim — yet — but when a senior government minister even mentions this as an option, you have to assume it’s being discussed:

The Conservatives would consider leaving the European Convention on Human Rights if they won the 2015 election, the home secretary has said.

Theresa May told an event organised by the ConservativeHome site the party would also scrap the Human Rights Act.

She said it restricted the UK’s ability “to act in the national interest”.

A private poll by ex-party treasurer Lord Ashcroft, meanwhile, suggested the party would lose 93 marginal seats to Labour if the election was held now.

The BBC understands Mrs May was putting forward ideas for the next Conservative manifesto, and such a move was not current government policy.

[. . .]

Mrs May told the gathering she was sceptical whether the convention limited human rights abuses in other countries and suggested it restricted Britain’s ability to act in its own interests.

“When Strasbourg constantly moves the goalposts and prevents the deportation of dangerous men like Abu Qatada, we have to ask ourselves, to what end are we signatories to the convention?” she said.

“Are we really limiting human rights abuses in other countries? I’m sceptical.”

She said that “by 2015, we’ll need a plan for dealing with the European Court of Human Rights”.

“And yes, I want to be clear that all options — including leaving the convention altogether — should be on the table.”

March 9, 2013

More on EU proposal to ban all forms of pornography

Filed under: Europe, Liberty, Media, Politics — Tags: , , , — Nicholas @ 10:37

In the Telegraph, Bruno Waterfield follows up on yesterday’s story (linked here):

Controversy has erupted over next Tuesday’s European Parliament resolution “on eliminating gender stereotypes in the EU”, meant to mark international women’s day, after libertarian Swedish MEPs from the Pirate Party spotted the call for a ban in the small print.

While not legally binding, the vote could be the first step towards European legislation as the EU’s assembly increasingly flexes its political muscle within Europe’s institutions.

The proposal “calls on the EU and its member states to take concrete action on discrimination against women in advertising… [with] a ban on all forms of pornography in the media”.

Kartika Liotard, a Dutch left-wing feminist MEP, is seeking “statutory measures to prevent any form of pornography in the media and in advertising and for a ban on advertising for pornographic products and sex tourism”, including measures in the “digital field”.

The MEPs are also demanding the establishment of state sex censors with “a mandate to impose effective sanctions on companies and individuals promoting the sexualisation of girls”.

Dinner at world’s top restaurant: 200 Euros. Vomiting and diarrhea: no extra charge

Filed under: Europe, Food, Media — Tags: , — Nicholas @ 10:31

Naharnet on the unfortunate experiences of diners at a top restaurant in Denmark:

Diners who forked out for a top-notch meal in a Danish restaurant dubbed the world’s best eatery got more than they bargained for when dozens came down with a nasty case of food poisoning.

The two-Michelin-star Noma restaurant in Copenhagen prides itself on dishes like pike perch and cabbages or wild duck and pear but in February its delights left 63 punters and some staff members vomiting or suffering from diarrhea, health officials said Friday.

The diners at Noma, which grabbed the number one spot in Restaurant magazine’s prestigious annual ranking in 2010, 2011 and 2012, fell sick over a five-day period and the outbreak may have come from a sick kitchen staff worker, inspectors said in a report which can be seen on the eatery’s website.

March 8, 2013

EU politicians perform modern day King Canute act

Filed under: Europe, Liberty, Media, Politics — Tags: , , , , — Nicholas @ 09:55

Yup. They’re standing up for equality on the internet by calling for a ban on online porn:

MEPs are being urged to back a non-binding resolution that calls on the European Parliament to, in effect, ban pornography from the internet. A group of Euro politicos hope the web filth block will bring about a “genuine culture of equality” online.

A motion was tabled this week by the EU’s committee on women’s rights and gender equality. A report titled Eliminating Gender Stereotypes in the EU urged all members of the European Parliament to support the draft resolution.

The panel stated that a policy to put an end to stereotypes portrayed in the media would “of necessity involve action in the digital field”. The committee added that the EU would be required to coordinate action to develop a “genuine culture of equality on the internet”.

March 7, 2013

Food safety “churnalists” strike again: processed meat will kill you!

Filed under: Britain, Food, Health, Media — Tags: , , , — Nicholas @ 10:21

In sp!ked, Rob Lyons explains why the most recent food flap in Britain is no more worth paying attention to than the last couple of dozen:

‘Processed meat blamed for one in 30 early deaths’, declares the Daily Telegraph. ‘Processed meat “is to blame for one in 30 deaths”: scientists say a rasher of cheap bacon a day is harmful’, says the Daily Mail in the true spirit of ‘churnalism’, while the addition of ‘cheap’ to the headline is surely designed to confirm the prejudices of its snobbier readers.

The BBC, which has made a veritable full English breakfast of this story this morning, summed it up as follows: ‘Sausages, ham, bacon and other processed meats appear to increase the risk of dying young, a study of half-a-million people across Europe suggests. It concluded diets high in processed meats were linked to cardiovascular disease, cancer and early deaths.’

However, the reality is that the methods used in such studies are so crude that drawing sweeping conclusions from this evidence is fraught with difficulties.

As so many times before, the actual link between the reported data and the eye-catching headlines is not particularly strong or likely to be a cause of worry for most people.

There is a lot of guesstimating going on here. Even after all this, the size of the effect is small. Previous claims about processed meat have focused on cancer, but here the increased risk of cancer was just 11 per cent. The bigger, all-cause mortality figure of 44 per cent was mostly due to cardiovascular disease, a risk which even the researchers suggest may be overstated.

Claiming that such a small effect can therefore be the basis of sound dietary advice is just nonsense — but it is nonsense that is repeated all too frequently. The result is to create unnecessary fear about perfectly good food and confirm the prejudices of those who think that processed food is only fit for the masses.

March 6, 2013

Magnificent Machines – The Golden Age of the British Sports Car

Filed under: Britain, History — Tags: — Nicholas @ 00:01

March 5, 2013

The Daily Mail Song

Filed under: Britain, Humour, Media — Tags: , — Nicholas @ 10:39

Hello everyone. Me & Dan have written a song about The Daily Mail (a British newspaper).

We’re aware this video won’t mean an awful lot if you’ve never heard of The Daily Mail, but on the plus side, you’ve never heard of The Daily Mail.

H/T to John Lennard for the link.

David Friedman reviews The Birth of the West by Paul Collins

Filed under: Books, Europe, France, Germany, History, Media, Religion — Tags: , , , — Nicholas @ 10:21

David Friedman on the recent book The Birth of the West: Rome, Germany, France, and the Creation of Europe in the Tenth Century, by Paul Collins.

Take five or six soap operas set in central and western Europe in the 10th century. Chop in pieces, stir, and glue together more or less at random. You now have something reasonably close to the picture that emerges from The Birth of the West, 427 pages of 10-century history as presented by the Australian author and broadcaster Paul Collins. The reader is left wondering whether the chaos is a bug or a feature, a failure of the author to shape his material into a coherent story or a deliberate attempt to show the reader the chaos of the period.

[. . .]

The most interesting thing about the book may be what it implies about how much we do not know. Thus, for instance, Collins offers a lurid account of Theodora and Marizia, a mother and daughter heavily involved in papal politics. (Marizia was supposedly the mistress at age 14 of an 80-year-old pope.) He then mentions that his source was writing 50 years after the events he describes, that another source presents a much more attractive picture, and that both have axes to grind. But he goes on to treat the first account as accurate. He offers a glowing portrait of Theophano, a Byzantine princess who became the wife of Otto II and mother of Otto III, dismissing a much more critical picture from a contemporary source. A historian with a different set of biases could have given us an equally convincing version in which some of the good guys and bad guys switched hats.

[. . .]

Collins presents the conventional view of the dominant role of religion in medieval Europe, cites several books by the French medievalist Georges Duby, but not the one in which Duby argues that the picture is badly distorted by the fact that almost all of our sources are clerical. The point is relevant for modern sources as well: Collins himself spent much of his life as a Catholic priest before resigning over a dispute with the Vatican and taking up a second career as writer and broadcaster.

None of that means that the story he tells is wrong. The modern reader inclined to take any single historical view as gospel might consider how much disagreement there is on issues for which we have enormously better information — the Vietnam War, say, or the evaluation of controversial political figures such as FDR, Reagan, or Thatcher. It does not even mean that the book should have been written differently. The story Collins tells is confusing enough as is; it would be far more confusing if he had tried to keep all of the alternative narratives going at once. And, to his credit, while he tells a single story, he makes it clear that alternatives exist — almost all of my critical comments are based on information he himself presents. I would not recommend the book as light reading, but it does provide a vivid picture of the century.

March 4, 2013

Solar power in a dark German winter

Filed under: Economics, Environment, Europe, Germany — Tags: , , — Nicholas @ 13:44

The German government is having to pay a lot of money in subsidies to solar power generators, but is also having to scramble to buy power from other European sources as the solar output is falling far below current demands:

The Baedeker travel guide is now available in an environmentally-friendly version. The 200-page book, entitled “Germany – Discover Renewable Energy,” lists the sights of the solar age: the solar café in Kirchzarten, the solar golf course in Bad Saulgau, the light tower in Solingen and the “Alster Sun” in Hamburg, possibly the largest solar boat in the world.

The only thing that’s missing at the moment is sunshine. For weeks now, the 1.1 million solar power systems in Germany have generated almost no electricity. The days are short, the weather is bad and the sky is overcast.

As is so often the case in winter, all solar panels more or less stopped generating electricity at the same time. To avert power shortages, Germany currently has to import large amounts of electricity generated at nuclear power plants in France and the Czech Republic. To offset the temporary loss of solar power, grid operator Tennet resorted to an emergency backup plan, powering up an old oil-fired plant in the Austrian city of Graz.

Solar energy has gone from being the great white hope, to an impediment, to a reliable energy supply. Solar farm operators and homeowners with solar panels on their roofs collected more than €8 billion ($10.2 billion) in subsidies in 2011, but the electricity they generated made up only about 3 percent of the total power supply, and that at unpredictable times.

Are we approaching the end of the aircraft carrier era?

Filed under: Europe, Italy, Military — Tags: , , — Nicholas @ 10:31

At the Thin Pinstriped Line, “Sir Humphrey” looks at Spain’s all-but-certain exit from the ranks of carrier-equipped navies:

In Spain for instance the veteran carrier Principe De Asturias (PDA) has finally been paid off after some 25 years service as part of budget cuts. It is perhaps ironic to consider that she was originally conceived in the early 1980s as a cheap ‘Sea Control Ship’ solution originally looked at by the US Navy to provide cheaper carriers. Intended to put ASW helicopters to sea as a replacement for the Delado, she represented the closest any nation has perhaps come to a truly ‘austere’ carrier, with minimal support facilities for the airwing. Optimised in the first for ASW, with a very limited fixed wing capability using the Harrier (although never to the same level of development as the UK with the mixed FA2 / GR7 airwing), the PDA was an example in the 1980s of how smaller ‘harrier carriers’ could be built for emerging middle tier navies, providing them with airpower at relatively small cost. In reality she remained the sole of her class built around the world, with the closest other example being a Thai vessel optimised for EEZ protection and to act as a Royal Yacht.

Although the Spanish have built a large LPH, with carrier facilities (the Juan Carlos) as a second platform relatively recently, she is not an aircraft carrier in the conventional sense, and with the Spanish economic crisis deepening, it seems likely that PDA will not be directly replaced by another ‘proper’ aircraft carrier.

Similarly, with the emphasis on Juan Carlos as an assault ship, it seems likely that the small fleet of Spanish harriers (less than 15 airframes) will be increasingly vulnerable to defence cuts in an economy which is desperately struggling. The chances of seeing a credible Spanish fixed wing aviation capability beyond the next few years seem slim, and at a time when they are struggling to afford sustaining a relatively small buy of Eurofighters, it seems hard to envisage introduction of the JSF too.

So, Spain is perhaps the first carrier casualty of the economic crisis, although Italy is also looking increasingly vulnerable. The Guissepe Garibaldi is now nearly 30 years old, and again is unlikely to be directly replaced. Mindful of the recent cuts to the Italian Navy which will see a near 20% cull in manpower, and significant loss of hulls across the fleet, it again seems less and less likely that a credible carrier aviation capability can be sustained in a single hull (the Cavour). Having seen both these nations enter the ‘Carrier Club’ in the 1980s, one cannot help but wonder if they will be leaving it as full time members in the not too distant future?

Spanish navy's Juan Carlos and Principe de Asturias
Juan Carlos and Principe De Asturias

Update: BBC News is reporting that the US Navy is planning a new class of UAV carriers:

The new project has been dubbed Tern (Tactically Exploited Reconnaissance Node) after a sea-bird known for its endurance.

Darpa programme manager Daniel Patt, said: “Enabling small ships to launch and retrieve long-endurance UAVs on demand would greatly expand our situational awareness and our ability to quickly and flexibly engage in hotspots over land or water.”

He added: “It is like having a falcon return to the arm of any person equipped to receive it, instead of to the same static perch every time.”

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