Between 2010 and 2012, Gécamines and other state companies sold stakes in several of Congo’s most valuable mines for at least $1.36 billion less than their market value, …
Some $750 million due to Gécamines by corporate partners between 2011 and 2014 could not reliably be traced to the company’s accounts, the Carter Center also found. The anticorruption watchdog Global Witness said that more than $750 million in mining revenues paid to Congolese state entities were lost between 2013 and 2015.
The front page lead-in to this story is “Why isn’t Cobalt Making Congo Rich?”
The journalists apparently never considered the question “What if we divide these numbers by 87 million?” (Congo estimated 2019 population, which the CIA says is growing at a rate of 2.3 percent annually)
Suppose that we accept the worst case analysis in the NYT article. A total of $2.1 billion has been stolen from the people of Congo. How “rich” would they have been if not for this theft? That works out to $24 per person.
Readers: What accounts for the reluctance of the media to admit that, even in a perfectly administered situation, a large population cannot get rich off a handful of cobalt mines?
Bad Blood, the authoritative book on the rise and fall of Theranos, describes American- and British-born engineers and scientists being fired for saying “the goal is too ambitious” or quitting when realizing this. Who replaced them? According to the book, almost all immigrants from India, either folks who’d recently completed a degree in the U.S. or coming over on H-1B visas, all managed by Ramesh Balwani, Elizabeth Holmes’s boyfriend.
During the “grand fraud” stage of Theranos, therefore, it was a primarily immigrant show except for the young impresaria.
The money to fuel the craziness of Theranos seems to have been all domestic. Walgreen’s kicked in $100 million(!) as an “innovation fee” and then loaned the company another $40 million, according to the book. The credulous yet imperial CEO Steve Burd (Wikipedia shows him hanging out with Barack Obama) drained huge amounts of Safeway shareholder cash to help Theranos. The idea in both cases was that Theranos devices were supposed to be placed in these retailers’ stores.
If the end result is a tech staff that is mostly Indian, I wonder if the Silicon Valley location makes sense. Why not have all of the engineers and scientists work from Bangalore or Delhi? Instead of 8 people sharing a two-bedroom apartment in Menlo Park, each of those 8 workers can enjoy his or her own comfortable house (rent for a 3BR apartment in the center of Bangalore is about $570/month (source), 1/10th the price of Menlo Park (source)). What’s the advantage of bringing H-1B slaves over to toil on a Silicon Valley plantation compared to running the tech farm in India?
(Another interesting aspect of the book is learning just how much room there is for human error in traditional medical lab tests, e.g., in the handling of reagents. Elizabeth Holmes was not wrong in thinking that a fully automated process could potentially be more reliable.)
Last October, following the assassination of journalist Jamal Khashoggi, I asked Associate Provost Richard Lester, who oversees MIT’s international activities, to reassess MIT engagements with Saudi entities.
The report explores the full range of competing factors to consider, including faculty autonomy, the social and scientific value of the work we undertake with Saudi people and entities, the challenge of working in a nation so out of step with our commitment to inclusion and free expression, and our community’s deep sense of revulsion at actions of the Saudi regime.
Ultimately, the report concludes that if MIT faculty wish to continue their current engagements with colleagues, students, and public and private research sponsors in Saudi Arabia, they should be free to do so, as long as these projects remain consistent with MIT policies and procedures and US laws and regulations.
Nothing of substance changes, in other words. In the long run, however, virtue as defined by MIT will prevail:
The present moment is testing that position. When I agreed to host the Saudi state delegation at MIT last spring, I shared the hope of many in the US and around the world that the visit and official engagement were an important part of an ongoing process of reform and modernization.
Saudi Arabia needs to be “reformed” and modernized, in MIT’s official opinion. It is just a temporary setback that some of these Saudi state officials went straight from learning about MIT’s commitment to inclusion and free expression to planning the murder of the unfortunate Mr. Khashoggi?
Saudi Arabia faces an unusual demographic moment: More than half of Saudi citizens are younger than 30
How is this relevant to the question of whether MIT works with governments that assassinate the inconvenient? The killing of Mr. Khashoggi should be ignored because he was 59 years old and can be readily replaced by folks who are half his age? (And his intended bride, for whom he ran the risk of entering the Saudi consulate to gather some divorce documents (BBC), was 36 years old, so also outside of the demographic that MIT considers important.) The killing of Mr. Khashoggi would have to be taken a lot more seriously if the median age in Saudi Arabia were 40 (as it is in Singapore)?
Regardless of their age, it turns out that some Saudis are “worthy” because they share MIT’s principles (the others are “worthless”?):
I hope we can respond to present circumstances in a way that does not suddenly reject, abandon or isolate worthy Saudi people who share our principles and are doing good work for themselves, their society and the world, particularly if MIT faculty wish to continue the engagement. … Are there further steps we can take to make sure that our engagements are not only in tune with but advance MIT’s values, including equality and free expression?
One of MIT’s principles, as previously articulated by President Reif, is to employ both a “Director and Assistant Director of LGBTQ Services”. So this puts MIT principles at odds with the law in Saudi Arabia (though maybe not the reality, according to this Atlantic article, which says “Sodomy is punishable by death in Saudi Arabia, but gay life flourishes there.”) The only “worthy” Saudi people, therefore, are those who reject traditional Islamic belief and align themselves with what a non-Muslim or apostate MIT administrator might believe? (speaking of apostasy, it is punishable by death in Saudi Arabia)
Is this letter essentially saying that coastal American values are superior to Saudi values as embodied in their laws? MIT must labor under a White Man’s Burden to engage with the Saudis until they agree to adopt our values? How is that consistent with a commitment to inclusion?
Received from a teacher by a parent of a local 7th grader:
We will be reading March together as a class for our next unit and additionally students will be working cooperatively in book clubs for books that are about and by People of Color.
I asked “So they can pick any book written by or describing a Virginia Democrat?”
It seems that the answer is “no.” The letter continues with
Today in class the students had the opportunity to preview the book club books and rank their top choices.
Government spending is often said to be beneficial to the economy, as the money disbursed is spent and re-spent, creating jobs, raising incomes, and generating tax revenues in the process. But usually if that same government money had remained in the hands of the taxpayers from whom it came, they too would have spent it, and it would still have been re-spent, creating jobs, raising incomes, and generating tax revenues in the process. This again is usually at best a zero-sum process, in so far as the transfer of money is concerned, and a negative-sum process in so far as high tax rates to finance government spending reduce incentives to do all the things necessary to generate economic activity and the prosperity resulting from it.
Poetry by Kanye West is presumably also excluded, though it might be interesting to hear a class discussion of “Gold Digger”:
Eighteen years, eighteen years She got one of your kids, got you for eighteen years [23 in Massachusetts] I know somebody payin’ child support for one of his kids His baby mama car and crib is bigger than his You will see him on TV any given Sunday Win the Super Bowl and drive off in a Hyundai She was supposed to buy your shorty Tyco with your money She went to the doctor, got lipo with your money She walkin’ around lookin’ like Michael with your money Shoulda got that insured, Geico for your money If you ain’t no punk Holla, “We want prenup! We want prenup!” (Yeah!) It’s somethin’ that you need to have ‘Cause when she leave yo’ ass, she gon’ leave with half [maybe closer to 0% after subtracting litigation costs?] Eighteen years, eighteen years And on the 18th birthday he found out it wasn’t his?!
The official list would also keep students from asking whether Chinese Nobelists such as Gao Xingjian and Mo Yan qualify as “of color” (of the wrong color?).
Readers: Does it help Writers of Color to put them in a February ghetto and tell students they can read books on white subjects by white authors the rest of the year?
Exciting Update: I got hold of the list! (Kanye West is not on it!).
The children’s section of our local bookstore in Cambridge, Massachusetts features books on the political issue that will have the biggest impact on young folks’ lives:
My high-level impression… Suppose that a dystopian science fiction novel published in the 1950s had imagined a city in which fabulously rich people lived in new gleaming towers, getting marijuana delivered to them by runners on electric skateboards. The rich people who work stroll on sidewalks that are half covered in tents in which the “homeless” (but not “tentless”) reside. When they get to work they’re in a bullpen that is packed tighter than a commodities trading pit. If they need to make a phone call while at work they’ll duck into a soundproof transparent pod.
People who read a book like that circa 1950 would have said “This author has a great imagination, but none of this could ever happen. Even in the Great Depression people didn’t simply pitch tents on downtown sidewalks. And an employer wouldn’t have valuable workers distracted by noise and crowding.”
Yet that imagined future has been fully implemented by San Franciscans today! What are people saying as they live and visit this unusual place? Some miscellaneous sentiments gathered from around the Bay Area during a recent trip…
A friend has been complaining about unfairly low tax rates (“you didn’t build that”) since Bill Clinton left office. He and his wife said that they wanted to see a big tax rate increase on “the rich.” This trip was my first opportunity to talk to him since the late 2018 tax law change. Due to the fact that this couple can’t deduct their California state income tax (13.3 percent max rate) or the property tax on their $4 million home from their income for federal tax purposes, he believes that his effective tax rate has actually gone up. This is his dream of higher tax rates fulfilled? Apparently not since he is hopping mad about it!
In response to my saying that I’d finished a book on naval battles of World War II, friends in Berkeley said that they considered the U.S. to be the world’s most evil nation currently, committing acts comparable to what the Germans and Japanese did during the very darkest parts of World War II. What exactly was the U.S. doing? Separating children from one or both parents during the migration/asylum process. What about the fact that their neighbors, in availing themselves of California family law‘s no-fault divorce and winner-take-all custody provisions, regularly separated children from the loser parent? “That’s different. Children don’t need two parents. Trump is separating children from both parents.”
Folks in the suburbs and exurbs complained about the poor condition of the highways, which were indeed rough (therefore noisy) and potholed. “There is no frost here,” a friend in Napa noted. Gasoline in the suburbs was almost exactly 2X the cost that I had paid in Bentonville, Arkansas:
Complaints about Trump were ubiquitous. One knock against the dictator was that he lied (previous American politicians were paragons of truth!) and therefore the U.S. was no longer a role model to nations around the world.
Expressed concern for the environment was high, but nearly every buildable surface in Silicon Valley is covered. See this photo from the XNA-SFO flight just before landing (incidentally, if you want to know how to run an enterprise with H-1B visa holders, the Bentonville to San Francisco flight holds all of the folks that you need to talk to).
Do folks in the Bay Area actually have valuable lessons to teach the rest of the nation (and the world!) on how to live in harmony with Mother Earth? Bentonville certainly seemed like a place where the Earth was still in some sort of recognizable condition, e.g., with a lot of farms growing hay.
Expressed concern for the homeless and/or “vulnerable” is high. And expressed support for increased immigration is high, including low-skill undocumented immigration. Yet one drives by homeless encampments in Berkeley on the way to $20 per-person diner breakfast. One common explanation for this apparent contradiction is that homeless people are mentally ill. But for their mental illness, they would be commuting 4 hours round-trip each day to a job and using the money earned to pay for a modest exurban apartment. Would they then support screening immigrants for mental illness? “Of course not!”
Expressed faith in the virtue of higher minimum wage was universal. It will get people off welfare. Taxpayers won’t be subsidizing evil low-wage employers with Medicaid, welfare, public housing, and other means-tested programs for which low-income folks may qualify. In 2018, the income limit for government-allocated “inclusionary” public housing was $236,800 for a family of four in San Francisco, $165,800 for a single person. Thus, based on a 40-hour week, minimum wage for a childless worker would have to be more than $80/hour before he or she wouldn’t be entitled to welfare subsidies.
[If a higher minimum wage is the silver bullet for cutting welfare expense, why wouldn’t at least one of the 50 states deploy it in a serious way? If the Bay Area minimum wage believers are correct, a state could set minimum wage to $25 or $50 per hour, for example, and enjoy massive savings and robust economic growth. I don’t think that the answer is “It can only work at a national scale because otherwise it is too easy for employers to move to another state” because, due to NAFTA, at the national scale it would be almost as easy for employers to move a factory to Mexico or Canada.]
Enthusiasm for a gynecocracy remains undimmed despite Hillary Clinton’s defeat. From the (Fairmont) hotel gift shop:
You and Me will be doing great… as long as we both identify as female.
Partly due to my passions for art museums and dim sum, I still like San Francisco as a place to visit, though I’m noticing that the entire northeast quadrant is essentially without parks or other greenspace. It is a concrete jungle like Lower Manhattan. A lot of the folks with whom I talked have grown to hate the city and try to minimize their time in San Francisco itself. One 30-year-old work colleague will go so far as to stay in a hotel in Daly City and commute in. No 30-year-old guy in the 1980s would have preferred to be in Daly City!
I had to attend an aviation event this evening and then proceed to the gym for my annual workout. So I missed the Trumpenfuhrer’s speech at the Reichstag. How was it?
Are people who didn’t vote for Trump shocked and horrified by his continuing failure to do the stuff that they want him to do? I found that in Manhattan last week. My elite (either through wealth or education) friends there continued to express their shock that Trump was doing X, Y, or Z. I would point out that they hadn’t voted for him and therefore wouldn’t it make more sense for Trump to instead do the stuff that he promised to the people who did vote for him? Answer: NO! The elite point of view is so obviously correct that they expect Trump by now to have come around to adopting it!
Update: Boston Sports Club was showing professional wrestling and State of the Union on adjacent TVs (a friend pointed out that Trump has a history with WWE).
We experimented this year with a winter escape to a part of Florida that is a little cooler than Miami, but a lot less packed with both locals and tourists. Here’s a report…
Jacksonville Beach was a huge hit with the kids. A beachfront hotel with a pool is about $200/night and will keep everyone entertained all day. Atlantic Beach and Neptune Beach are lower density. The One Ocean hotel in Atlantic Beach is a good place to start. We stayed at the Hampton Inn in Jacksonville Beach, which is okay, but the room-to-room sound transmission makes earplugs essential. The adjacent Marriott looked newer and might be better. All of these places have wide firmly packed beaches (partly due to the miracle of dredging and “beach replenishment), ideal for long walks. The beaches are also dog-friendly all winter all day, so bring the family dog.
The killer breakfast option is Maple Street Biscuit Company, a small local chain. Metro Diner is more traditional/conventional, but also excellent. We enjoyed V Pizza for lunch. This is strictly wood-fired and presided over by a fanatical Albanian who spent 10 years in Italy. (St. Augustine has Pizza Time, for which people wait in line for 45 minutes, but it is boring electric-oven pizza that you could get on any street corner in NYC.) Atlantic Beach has a bunch of elegant dinner spots with outdoor tables. They’re all pretty good, but service suffers when they’re busy (the future of U.S. restaurants, I’m pretty sure, is Panera-style order-at-the-counter; Maple Street works this way and so does V Pizza; it doesn’t make sense to buy health care at the world’s highest prices for a waiter when it is easy enough to get up and grab one’s own dish). Kazu Sushi Burrito in Jacksonville Beach and Tokyo Ramen in a strip mall in Atlantic Beach were both good breaks from the burgers.
St. Augustine was so packed in the days before and just after New Year’s that it wasn’t pleasant. Make sure to book a hotel right in the center of town (i.e., in the historical walking area) because traffic and parking are murderous. Most of the sights are best for kids 7 or older, I would say. Younger children will be happier at Jacksonville Beach. Consider a day trip from Jacksonville Beach to St. Augustine, though it needs to be a 12-hour day if you’re going to see the main sights. There is an awesome playground right next to the main parking structure in St. Augustine.
If you brought a light airplane, Sky Harbor at KCRG is a great FBO. Zip down to KTIX (about 45 minutes) to the Valiant Air Command warbird museum (park on their ramp after calling ahead). We stumbled into a tour by a retired USMC F-4 pilot. See also the B-52 cockpit below!
A 10-minute ride from KTIX is the Kennedy Space Center’s visitor theme park. This is privately run and keeps chugging along despite any government shutdowns. The only interaction with official Feds is when guards (armed with the assault rifles that the government assures us no reasonable person actually needs) board the tourist bus (to make sure nobody is planning an armed takeover of NASA’s launchpad?).
(Here’s a good image for flight instructors:
“They made it to the moon with a paper flight plan and you need a phone app to go on a 50 nm cross country?”)
The Cummer Museum in Jacksonville is a good escape from the kids (see https://philip.greenspun.com/blog/2019/01/23/the-art-of-victimhood/). The Jacksonville Zoo is awesome. The Museum of Contemporary Art in downtown Jacksonville had some interesting exhibits. Don’t forget the candy factory across the square!
“The economy is based on poor people,” said one local. His perspective was confirmed by the fact that the most impressive building in Jacksonville is the new 800,000 square foot Duval County Courthouse (more than $400 million including the land?). Billboards through the region feature personal injury and divorce lawyers (Florida offers permanent alimony, so plaintiffs have a strong incentive to litigate; for unmarried plaintiffs, the state also offers unlimited child support, assuming the defendant has sufficient income). The next tier of awesomeness in building is occupied by hospitals, including the Mayo Clinic. A young local couple on the beach with their Bernese Mountain Dog said that both worked in health care and that “all” of their patients were on either Medicaid or Medicare. At least they won’t be wiped out from buying gasoline…
Locals seemed surprised that anyone would want to come to this part of Florida for a beach vacation before April or after October. However, the lack of crowds is nice (except in St. Augustine between Christmas and New Year’s!). The ocean isn’t warm enough for swimming, but a typical daily high temperature is close to 70 degrees and walking around in a T-shirt is a luxury from this Bostonian’s perspective. Atlantic and Neptune beaches are built up only to a reasonable human scale:
Aviation enthusiasts should make sure that they arrive with full IFR currency. We had fog or a low-ish cloud layer over the coastal airports at least half of the time so there were plenty of instrument approaches to be done. Sky Harbor at Craig is a great FBO and Atlantic at SGJ is very welcoming as well.
How about New Yorkers and Californians relocating to Atlantic Beach to escape the new cruel taxation regime of the Trumpenfuhrer, in which their state income taxes (used by state Democrats only for the most virtuous purposes) are no longer deductible against Federal income tax? What if these well-meaning folks decide that they like the beach and don’t want to pay the higher effective tax rates that they’ve long been advocating? Zillow says that a nice 20-year-old 5BR house just one block back from the beach (will be beachfront soon enough!) is $950,000 and attracts property tax of $7,700 per year (barely raised since 2003).
Mike Busch, author of “the big book on piston engines,” has a helpful article in the Jan/Feb 2019 issue of COPA Pilot, the Cirrus owners’ group’s magazine. Busch explains why engines need to be run hard for a few initial hours and then offers a concrete procedure:
Break in the engine by running it as close to maximum continuous power as possible without allowing any CHT to exceed 420F for Continental cylinders or 440F for Lycoming cylinders. Run it this hard for an hour or two until you see the CHTs come down noticeably , indicating that the lion’s share of the break-in is complete.
This requires running at nearly full throttle at a low altitude (the engine won’t generate more than about 75 percent power after climbing to an ordinary cruising altitude of 6,000 or 7,000′ due to the lower density of air molecules up there).
This is timely for me because we’ll be breaking in a new engine for the Cirrus SR20. After 14 years and roughly 2,000 flight hours it seems prudent to swap out the engine, despite the fact that it hasn’t given any signs of ill health (this is contrary to Busch’s recommendation to wait until the engine tells you it is sick and then maybe only replace one cylinder).
Maintenance shops say that they hate dealing with Continental and love Lycoming, which might be one reason why Cirrus has switched to the Lycoming IO-360 engine for the more recent SR20s. Our little cluster of T-hangars also contains at least one story of a Continental engine that failed after a few hundred hours due to manufacturing defects and terrible support from Continental (instead of sending out a new replacement engine for the nearly new aircraft, the best that Continental would do is take the old engine back, try to fix it, etc. That would have resulted in months of downtime at a minimum. So far the wisdom of the shops has been proven correct. We had some issues with our order and couldn’t even get a return phone call from Ernesto Rodriguez, the customer support manager at Continental. I kind of like the idea of the 200 hp 6-cylinder Continental engine in the SR20 as offering greater smoothness than a 4-cylinder engine (what Cirrus is buying now from Lycoming), but one notable feature is that the per-mile cost of engine reserve actually becomes higher for the older SR20 compared to the SR22 (they both use 6-cylinder Continental engines and the cost of overhaul or swap-with-reman or swap-with-new prices are almost identical between the 200 hp SR20 engine and the 310 hp SR22 engine, as you might expect given that the mechanical configuration is pretty similar other than dimensions). To minimize interactions with Continental and save about $12,000, perhaps the smarter thing to have done would have been to wait for the engine to get sick and then ship it to one of Busch’s favorite field overhaul shops (see previous post: https://philip.greenspun.com/blog/2018/08/13/euthanasia-for-aircraft-engines/).
Why do engines need breaking in? Busch has some interesting figures showing the grooves in a new cylinder that are supposed to make the barrel “oil-wettable”. These have a spiky top that you want to grind down with hard usage to slightly flatter. Busch says that ordinary Philips 20W-50 “might be a better choice for break-in oil” than the traditional straight-weight Aeroshell W100.
