Crossposted from The Stars Hollow Gazette

I wonder how many ‘the Emperor has no clothes’ moments we’re going to have to go through before Mr. Market finally realizes he’s nude?  The big news about the Euro is that nothing has changed at all, except to get worse.

What the pieces I’ve selected make clear is that governments in the Euro Zone can’t afford to pay off the banksters crap assets at anything near their notional balance sheet value.  The European Central Bank (ECB) is the only one who can print Euros and impose investor haircuts through asset inflation and they can’t lend directly to governments, only to banks.  Any country that follows the Irish example of paying off their vampire bank failures is committing economic suicide.

What they don’t highlight, but which is none the less true, is that the ECB balance sheet is running out of room without a looser monetary policy (i.e. ‘printing’) AND that the assets it’s accepting as collateral are, even under the relaxed standards, made acceptable only through Credit Default Swap ‘Insurance’ issued by the self same banks that don’t have the reserves to cover their primary obligations.

Like AIG these ‘counter parties’ have absolutely no intention of paying off and no ability to do so even if they did.

‘House of Cards’ hardly begins to describe the tissue thin fictional fig leaf these insolvent banksters are trying to hide their behinds behind.

Eurocrats

Crossposted from The Stars Hollow Gazette

A Profile in Fracking: How One Tiny Hamlet Could Be Devastated by Gas

By Molly Oswaks, The Atlantic

Dec 7 2011, 10:02 AM ET

Hancock is home to four bait-and-tackle shops, three beauty salons, six churches, ever more vacant and dilapidated-looking homes, one video rental thrift store hyphenate, and one funeral parlor. The stateliest establishment in this otherwise decidedly unstately community is the Hancock House Hotel; here you will find Honest Eddie’s Tap Room, a dimly lighted wood-paneled bar named for the major league baseball player John Edward “Honest Eddie” Murphy, who was born in Hancock in 1891. The food menu at Honest Eddie’s includes items like “They’re Smothered!” (thick-cut fries blanketed in a melty cheese sauce) and “The Deep-fried Pickle” (which is exactly what it sounds like). There is also an off-menu rice pudding, which they serve in a tall bevelled glass sundae cup and garnish with a dollop of whipped cream. The pudding has no spice.

…

Here, some 9,000 feet below traversable ground, lies a particularly profitable piece of the Marcellus Shale, a 400-million year old formation of marine sedimentary rock rich with reserves of untapped natural gas. Shale gas reserves are extracted by means of a multi-step process called hydraulic fracturing, or fracking. Chemical fracking fluid is pumped into a targeted borehole drilled deep into the ground; sand is then introduced into the fluid to maintain the integrity of the fracture. The pressure and depth at which this is executed produces a subterranean climate porous and permeable enough for shale gas to be recovered profitably: this is a “frack job.”

For a cash-strapped community like Hancock, fracking would seem a high-yield stimulus plan millennia in the making: there is, of course, the economic appeal of home-sourced natural gas, but there are also land royalties to be reaped by residents and money to be made from all the supplies and sandwiches sold in town to the fracking crew itself. Not to mention jobs.

…

It’s difficult to predict whether Hancock’s soil and water will, in fact, be poisoned once the drilling begins. Various assessments of the environmental impact of fracking have been conducted, at both state and national levels. The second-hand damage is much easier to forecast.

The roads and highways that run through town will experience a significant surge in traffic, with large trucks and heavy machinery traveling to and from the drill sites, and all the accompanying noise pollution. The bucolic natural landscape, which has long drawn lucrative hunting and camping tourism at peak season, will be cut up and and cordoned off for pipes and drills and gas collection.

It’s a paradox: The town needs money to survive, but the money being offered comes at the expense of the town itself. It would seem, then, however ironic, that capitalism is killing the company town.

Actually, it’s not at all difficult to predict that “Hancock’s soil and water will, in fact, be poisoned once the drilling begins.”

Personally?  I think it’s just exactly as Serious as the Very Serious People.

And twice as classy.

Crossposted from The Stars Hollow Gazette

Breaking News: Feds Falsely Censor Popular Blog For Over A Year, Deny All Due Process, Hide All Details…

by Mike Masnick, Tech Dirt

Thu, Dec 8th 2011 8:29am

Imagine if the US government, with no notice or warning, raided a small but popular magazine’s offices over a Thanksgiving weekend, seized the company’s printing presses, and told the world that the magazine was a criminal enterprise with a giant banner on their building. Then imagine that it never arrested anyone, never let a trial happen, and filed everything about the case under seal, not even letting the magazine’s lawyers talk to the judge presiding over the case. And it continued to deny any due process at all for over a year, before finally just handing everything back to the magazine and pretending nothing happened. I expect most people would be outraged. I expect that nearly all of you would say that’s a classic case of prior restraint, a massive First Amendment violation, and exactly the kind of thing that does not, or should not, happen in the United States.

…

The Dajaz1 case became particularly interesting to us, after we saw evidence showing that the songs that ICE used in its affidavit as “evidence” of criminal copyright infringement were songs sent by representatives of the copyright holder with the request that the site publicize the works — in one case, even coming from a VP at a major music label. Even worse, about the only evidence that ICE had that these songs were infringing was the word of the “VP of Anti-Piracy Legal Affairs for the RIAA,” Carlos Linares, who was simply not in a position to know if the songs were infringing or authorized. In fact, one of the songs involved an artist not even represented by an RIAA label, and Linares clearly had absolutely no right to speak on behalf of that artist.

Despite all of this, the government simply seized the domain, put up a big scary warning graphic on the site, suggesting its operators were criminals, and then refused to comment at all about the case. Defenders of the seizures insisted that this was all perfectly legal and nothing to be worried about. They promised us that the government had every right to do this and plenty of additional evidence to back up its claims. They promised us that the government would allow for plenty of due process within a reasonable amount of time. They also insisted that, after hearing nothing happening in the case for many months, it meant that no attempt to object to the seizure had occurred. Turns out… none of that was true.

…

Under the seizure laws, the government has 60 days from seizure to “notify” those whose property it seized (imagine having the government swoop in and take away your property, and not even being told why for two whole months). Once notified, the property owner has 35 days to file a claim to request the return of the property. If that doesn’t happen, the government can effectively just keep the property, so it tends to rely on intimidation and threats towards anyone who indicates plans to ask for their property back (usually in the form of threatening to file charges). However, if such a claim is filed, the government then has 90 days to start the full “forfeiture” process, which would allow the government to keep the seized property and never have to give it back. If the claim to return the property is filed and the government does not file for forfeiture, it is required to return the property. Thus seizures are supposedly used as a temporary part of the investigation, to stop criminal activity or to prevent the destruction of evidence. However, that’s not how things always play out in real life.

As we’d heard with a number of domain names that had been seized, the government began stalling like mad when contacted by representatives for domain holders seeking to get their domains back. ICE even flat out lied to the public, stating that no one was challenging the seizures, when it knew full well that some sites were, in fact, challenging. Out of that came the Rojadirecta case, but what of Dajaz1?

After continuing to stall and refusing to respond to Dajaz1’s filing requesting the domain be returned, the government told Dajaz1’s lawyer, Andrew P. Bridges, that it would begin forfeiture procedures (as required by law if it wanted to keep the domain). Bridges made clear that Dajaz1 would challenge the forfeiture procedure and seek to get the domain name back at that time. Then, the deadline for the government to file for forfeiture came and went and nothing apparently happened. Absolutely nothing. Bridges contacted the government to ask what was going on, and was told that the government had received an extension from the court. Bridges, quite reasonably, asked how that was possible without him, as counsel for the site, being informed of it or given a chance to make the case for why such an extension was improper.

He also asked for a copy of the the court’s order allowing the extension. The government told him no and that the extension was filed under seal and could not be released, even in redacted form.

He asked for the motion papers asking for the extension. The government told him no and that the papers were filed under seal and could not be released, even in redacted form.

He again asked whether he would be notified about further filings for extensions. The government told him no.

He then asked the US attorney to inform the court that, if the government made another request for an extension, the domain owner opposed the extension and would like the opportunity to be heard. The government would not agree.

And file further extensions the government did. Repeatedly. Or, at least that’s what Bridges was told. He sent someone to investigate the docket at the court, but the docket itself was secret, meaning there was no record of any of this available.

The government was required to file for forfeiture by May. The initial (supposed) secret extension was until July. Then it got another one that went until September. And then another one until November… or so the government said. When Bridges asked the government for some proof that it had actually obtained the extensions in question, the government attorney told Bridges that he would just have “trust” him.

Finally, the government decided that it would not file a forfeiture complaint — because there was no probable cause — and it let the last (supposed) extension expire. Only after Bridges asked again for the status of the domain did the government indicate that it would return the domain to its owner — something that finally happened today. Dajaz1.com is finally back in the hands of its rightful owner. This is really quite incredible, considering the “rush” with which it seized these domain names, claiming the urgency in stopping a crime in progress. But, of course, after realizing that it had no evidence to suggest a crime was ever in progress – there was absolutely no urgency to correct the error.

The level of secrecy in this case makes it sound like a terrorist investigation, not the censorship of a popular music blog. Normally, when there’s a lawsuit, the docket is available on PACER. Even in cases where things are filed under seal or everything is redacted, there’s at least a placeholder for them in PACER. This case does not exist anywhere that anyone can find. The docket was apparently kept hidden in a judge’s office in Los Angeles the whole time. No one knew this was going on, other than the US Attorney and the representatives of Dajaz1 (who still never saw the docket or the extension orders).

Let’s just take stock here for a second. We have the government clearly censoring free speech in the form of a blog that discussed the music world and was widely recognized for its influence in promoting new acts. The government seized the blog with no adversarial hearing and no initial due process. Then, rather than actually provide some sort of belated due process in the form of an adversarial hearing, it continued to deny any and all due process by secretly (even to Dajaz1’s own lawyer) extending the seizure without any way to challenge those extensions. All in all, the government completely censored a popular web site for over a year, when it had no real evidence for probable cause of infringement, as it had falsely claimed in the original rubber stamped affidavit.

(h/t DCblogger @ Corrente)

This weekend’s episodes are the last part of the Season 2 marathon opening on August 14, 2004.  There are 3 parts, one today and two tomorrow.

Crossposted from The Stars Hollow Gazette

Then mankind would have become as the Great Old Ones; free and wild and beyond good and evil, with laws and morals thrown aside and all men shouting and killing and revelling in joy. Then the liberated Old Ones would teach them new ways to shout and kill and revel and enjoy themselves, and all the earth would flame with a holocaust of ecstasy and freedom.

I’ve been following what purports to be a conversation with a libertarian over at Naked Capitalism and I hardly know how to characterize it except as pathological.  It’s faith based and factually wrong in addition to being illegal, immoral, and selfish.

I’m not making the claim that it accurately represents libertarian doctrine or practice, or even the viewpoint of a real human being and not a fictional straw man construct.

Frankly I don’t know what to think.  I was appalled and horrified reading it and draw your attention because of those qualities.

By Andrew Dittmer, who recently finished his PhD in mathematics at Harvard and is currently continuing work on his thesis topic. He also taught mathematics at a local elementary school. Andrew enjoys explaining the recent history of the financial sector to a popular audience.

Simulposted at The Distributist Review

• Journey into a Libertarian Future: Part I -The Vision
  
  Tuesday, November 29, 2011
• Journey into a Libertarian Future: Part II – The Strategy
  
  Wednesday, November 30, 2011
• Journey into a Libertarian Future: Part III – Regulation
  
  Thursday, December 1, 2011
• Journey into a Libertarian Future: Part IV – The Journey into a Libertarian Past
  
  Friday, December 2, 2011
• Journey into a Libertarian Future: Part V – Dark Realities
  
  Monday, December 5, 2011
• Journey into a Libertarian Future: Part VI – Certainty
  
  Tuesday, December 6, 2011

(h/t Think Progress)