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Vladimir Putin and the Limits of Thuggishness

Mother Jones

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A lot of American hawks have displayed a barely disguised admiration for Russia’s Vladimir Putin this year. Oh, he’s a thug and a bully all right, but at least he fights for his country’s interests—and wins. The appeaser-in-chief could learn a thing or two from him.

Not so fast, says Dan Drezner. Exhibit A in Putin’s 2013 display of statecraft was negotiating a deal for Syria to give up its chemical weapons, and Exhibit B was his strong-arming of Ukraine to reject membership in the EU’s Eastern Partnership and instead join Russia’s planned Eurasian Union. Victory goes to the thuggish! Except, not so much:

It turns out that a lot of Ukrainians were not happy about this turn of events, and have engaged in eleven days of massive protests. Even Yanukovich’s allies are now talking about reconciling with the domestic political opposition….The New York Times reports that “the anger over Russia’s role has made it all but impossible for Mr. Yanukovich to take the alternative offered by the Kremlin — joining a customs union with Russia, Belarus and Kazakhstan”….Furthermore, as the Economist points out, the way Russia has lost is even more damning. Rather than EU pressure, it is domestic discontent that has stayed Yanukovich’s hand: “It is far better for the EU that the backlash against Mr Yanukovych comes from the streets of Kiev rather than from Brussels.”

As for that Syrian chemical weapons deal, it turns out that (a) Obama and John Kerry had a lot more to do with that than we knew at first, and (b) regardless of the opposition of hardliners in Israel and Saudi Arabia, it’s worked out pretty well for the United States. The truth is that Putin hasn’t gotten a lot out of that deal, but we have.

Bottom line: Maximum belligerence isn’t the answer to every foreign policy problem. Obama’s approach might be messy, but over time it doesn’t look so bad after all.

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Vladimir Putin and the Limits of Thuggishness

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BP, Shell, Statoil accused of fixing oil prices

BP, Shell, Statoil accused of fixing oil prices

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Rob Wilson

Have we been paying too much for gas?

The good folks at BP, Shell, and Statoil would never break the law and screw over their customers in a quest for inflated profits, surely.

Yet that is the very accusation coming out of Europe, where the industry giants are suspected of colluding to fix prices for crude, biofuel, and refined oil products at artificially high levels, allowing them to reap greater profits than the laws of supply and demand would dictate in a truly competitive economy.

Offices of the companies were raided last week by European Commission officials, and the Justice Department is being urged to investigate whether the alleged price fixing spilled over onto American shores.

From The Hill:

The Senate Energy and Natural Resources Committee Chairman aired his concerns about the recent probe by EU officials into potential oil price manipulation in a Friday letter to Attorney General Eric Holder.

[Sen. Ron Wyden (D-Ore.)] said price fixing in commodity markets “has been an area of abuse within the U.S. in the past,” noting the Enron power market scandal.

“It is critically important to determine whether or not similar efforts have been made to manipulate U.S. oil indices by these firms or others,” he added.

EU investigators raided the European offices of Statoil, BP and Shell earlier this week. The officials are looking into whether the firms submitted false information to Platts, a price-reporting organization owned by McGraw-Hill Financial.

The Economist puts the scale of the growing scandal in some perspective:

The volumes of oil and products linked to these benchmark prices [submitted to Platts] are vast. Futures and derivatives markets are also built on the price of the underlying physical commodity. At least 200 billion barrels a year, worth in the order of $20 trillion, are priced off the Brent benchmark, the world’s biggest, according to Liz Bossley, chief executive of Consilience, an energy-markets consultancy. The commission has said that even small price distortions could have a “huge impact” on energy prices. Statoil has said that the commission’s interest goes all the way back to 2002. If it is right, then the sums involved could be huge, too.

If true, the accusations wouldn’t just mean that motorists have been paying too much at the pump. Energy prices affect everything from food to consumer goods. From The Telegraph:

Ed Davey, the [U.K.] Energy Secretary, has promised companies will face the “full force of the law” if their behaviour is found to have “driven up” petrol prices.

However, his Department of Energy and Climate Change also acknowledged the impact of oil market rigging could be bigger than simply affecting petrol prices.

It said manipulation of the oil price could have driven inflation and pointed out that the market is an important benchmark for many financial transactions.

High oil prices also feeds through to bigger bills for food, clothes and other essentials because it pushes up the cost of transport and manufacturing.

A high oil price will also fuel inflation, which erodes the value of people’s savings, and can stifle economic growth, by pushing up businesses’ costs.

John Upton is a science fan and green news boffin who

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BP, Shell, Statoil accused of fixing oil prices

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Thinking, Fast and Slow – Daniel Kahneman

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Thinking, Fast and Slow

Daniel Kahneman

Genre: Psychology

Price: $9.99

Publish Date: October 25, 2011

Publisher: Farrar, Straus and Giroux

Seller: Macmillan / Holtzbrinck Publishers, LLC


Major New York Times bestsellerWinner of the National Academy of Sciences Best Book Award in 2012Selected by the New York Times Book Review as one of the best books of 2011A Globe and Mail Best Books of the Year 2011 TitleOne of The Economist ’s 2011 Books of the Year One of The Wall Street Journal 's Best Nonfiction Books of the Year 2011 In the international bestseller, Thinking, Fast and Slow , Daniel Kahneman, the renowned psychologist and winner of the Nobel Prize in Economics, takes us on a groundbreaking tour of the mind and explains the two systems that drive the way we think. System 1 is fast, intuitive, and emotional; System 2 is slower, more deliberative, and more logical. The impact of overconfidence on corporate strategies, the difficulties of predicting what will make us happy in the future, the profound effect of cognitive biases on everything from playing the stock market to planning our next vacation—each of these can be understood only by knowing how the two systems shape our judgments and decisions. Engaging the reader in a lively conversation about how we think, Kahneman reveals where we can and cannot trust our intuitions and how we can tap into the benefits of slow thinking. He offers practical and enlightening insights into how choices are made in both our business and our personal lives—and how we can use different techniques to guard against the mental glitches that often get us into trouble. Winner of the National Academy of Sciences Best Book Award and the Los Angeles Times Book Prize and selected by The New York Times Book Review as one of the ten best books of 2011, Thinking , Fast and Slow is destined to be a classic.

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Thinking, Fast and Slow – Daniel Kahneman

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Drought is taking a toll on the Texas beef industry

Drought is taking a toll on the Texas beef industry

Where’s the beef? Well, it’s not in West Texas these days. It’s always been kind of dry and desolate, but the last two years of epic drought have taken a serious toll on the region, driving in tumbleweeds and driving out agriculture and related business.

Earlier this month, a West Texas Cargill cattle processing plant suspended operations, leaving about 2,300 residents of Plainview out of work, more than 10 percent of the town’s population. The company says it’s not a permanent closure, but let’s be real, Cargill: This is looking a lot like devastating dust-bowl economics, round two. From The New York Times:

Dozens of former plant workers have already moved, finding new jobs with the plant’s owner, Cargill, or other companies outside Plainview or outside the state, many pulling their children out of the town’s 12 public schools. When workers receive their last paychecks in three weeks, the question is whether they will stick around. And then, the more existential question, can the town survive without those who leave?

With fewer than 8,000 households in the city and hundreds of them set to leave (or already gone), schools could lose millions in funding, and the ghost-town effect could accelerate. The Amarillo Globe-News reports:

The shutdown and its ripple through the regional economy could mean an annual loss of $1.1 billion in economic activity, Texas A&M AgriLife Extension Economist Steve Amosson predicted in January when Cargill made the closure announcement.

American cow-eating is pretty terrible for the planet — arguably this Cargill plant is suffering to some extent by its own hand. But that’s no consolation to the workers who are now struggling to make it in an even more dry, more desolate Plainview. The Times reports that every Saturday, residents and laid-off Cargill employees walk in a circle around the closed plant, praying for a miracle. Soo I’ll hold off on celebrating.

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Did removing lead from gasoline cause crime rates to plummet?

Did removing lead from gasoline cause crime rates to plummet?

Researchers have proposed many theories to explain the huge drop in crime that started in the early 1990s. Some cite the legalization of abortion. Some think maybe it was cell phone use. Rudy Giuliani credits Rudy Giuliani.

At Mother Jones, Kevin Drum presents a strong case for another contender: lead.

stevendepolo

The biggest source of lead in the postwar era, it turns out, wasn’t paint. It was leaded gasoline. And if you chart the rise and fall of atmospheric lead caused by the rise and fall of leaded gasoline consumption, you get a pretty simple upside-down U: Lead emissions from tailpipes rose steadily from the early ’40s through the early ’70s, nearly quadrupling over that period. Then, as unleaded gasoline began to replace leaded gasoline, emissions plummeted.

Intriguingly, violent crime rates followed the same upside-down U pattern. The only thing different was the time period: Crime rates rose dramatically in the ’60s through the ’80s, and then began dropping steadily starting in the early ’90s. The two curves looked eerily identical, but were offset by about 20 years.

Mother Jones

Your first reaction to this may be similar to mine (and to Jess Zimmerman’s) — those graphs are a rough correlation, not a surefire link between lead and crime. Drum addresses that concern by citing research that isolated lead legislation and abatement, sometimes down to a city-block level.

Sure, maybe the real culprit [behind the crime drop] in the United States was something else happening at the exact same time, but what are the odds of that same something happening at several different times in several different countries?

[Economist Rick] Nevin collected lead data and crime data for Australia and found a close match. Ditto for Canada. And Great Britain and Finland and France and Italy and New Zealand and West Germany. Every time, the two curves fit each other astonishingly well. When I spoke to Nevin about this, I asked him if he had ever found a country that didn’t fit the theory. “No,” he replied. “Not one.”

Just this year, Tulane University researcher Howard Mielke published a paper with demographer Sammy Zahran on the correlation of lead and crime at the city level. They studied six US cities that had both good crime data and good lead data going back to the ’50s, and they found a good fit in every single one. In fact, Mielke has even studied lead concentrations at the neighborhood level in New Orleans and shared his maps with the local police. “When they overlay them with crime maps,” he told me, “they realize they match up.”

Drum then goes one step further, noting that the areas of the brain that lead affects are those that one might associate with criminal behavior: aggressiveness, impulsivity. With that, he rests his argument.

The argument isn’t a new one; we covered it in 2011. The argument presented by Drum is more robust, even if still not entirely persuasive.

The most important point comes last. Lead, in its various forms, is still a widely present pollutant, one that significantly impairs cognition and bone strength, particularly in pregnant women and young children. Regardless of how strong the link between crime and lead, there is a massive health benefit in reducing exposure. There’s an urgent need to curtail ongoing lead pollution.

A decade ago, I worked with a team that did lead abatement, repainting walls covered in lead paint and clearing the dust and chips that had flaked off. Even these small measures were considered to be crucial for the health of the often-low-income kids living in the homes.

Did cutting lead in gasoline spur a huge drop in crime? Possibly. Whether it did or not, there’s nonetheless huge value in removing lead from our environment.

Source

America’s Real Criminal Element: Lead, Mother Jones

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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Did removing lead from gasoline cause crime rates to plummet?

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