{ Death penalty costs California $184 million a year, study says. That’s more than $4 billion on capital punishment in California since it was reinstated in 1978, or about $308 million for each of the 13 executions carried out since then. | LA Times }
{ Novelist Edward Docx had to know what it feels like to be lost—truly lost—in the Amazon. So he went to Brazil and hired some men to leave him in the jungle. | Prospect | full story }
photo { Sally Mann }
It is clear that the heavy burden of private and public debt in a number of periphery countries— Greece, Ireland, Portugal—is so large that a debt restructuring and reduction will eventually have to occur, thus imposing—slowly or sharply—a capital loss on these periphery agents’ foreign creditors (mostly financial institutions in the core).
So, how can competitiveness be restored and growth resume in the periphery?
One way would be for the euro to sharply fall in value toward—say—parity with the U.S. dollar. But with Germany being uber-competitive, the core running current-account surpluses and the ECB always more hawkish than the Fed, there is little chance that the euro would fall sharply enough to restore the competitiveness of the PIIGS.
A second solution would be to take the German reform approach: Accelerate structural reforms to increase productivity growth and keep a lid on wage growth below productivity growth to reduce unit labor costs. But this will not work: Structural reforms show their gains only in the medium term—in the short run, they can actually reduce growth as you shed labor and capital from declining firms and sectors; also, it took 15 years for Germany to reduce unit labor costs by keeping wage growth below productivity growth; if Greece, Portugal, etc. start today, the benefit in terms of competitiveness and growth will occur only in a decade, too late to be politically acceptable.
A third option is deflation: If the PIIGS could reduce prices and wages by 5% per year for five years, you would get the necessary cumulative compound fall of 30% in nominal prices/wages to restore competitiveness. The problem with the deflation route to a real depreciation is twofold.
First, deflation is associated with persistent recession and no social or political body could accept another five years of recession to reduce prices/wages by 30%; Argentina tried the deflation route to a real depreciation, but after three years of an ever-deepening recession gave up and decided to default and exit its currency board peg.
Second, even if by some miracle deflation was feasible and successful, the real value of the already-high private and public debts would rise sharply (a balance-sheet effect), forcing even-larger defaults and debt reductions. (…)
If the euro is not going to fall sharply, if reducing unit labor cost takes too long to restore competitiveness and growth and if deflation is unfeasible or (if achieved) self-defeating, there is only one other way for the PIIGS to restore competitiveness and growth: Leave the monetary union, go back to national currencies and thus achieve a massive nominal and real depreciation. (…)
Scenarios that are inconceivable today might not be so far-fetched five years from now. (…) Debt reduction will not be sufficient to restore competitiveness and growth. So, unless the latter can be achieved in other ways, the option for PIIGS of exiting the monetary union will become dominant as the benefits of staying in will be lower than the benefits of exiting, however bumpy or disorderly that exit may end up being.
Messy marriages lead to messy divorces, but if the marriage doesn’t work, even the threat of a messy divorce cannot keep couples together that are not a long-term match.
{ Nouriel Roubini via John Mauldin | Continue reading }
In the coming decades, Europe’s influence on affairs beyond its borders will be sharply limited, and it is in other regions, not Europe, that the 21st century will be most clearly forged and defined. (…)
The current euro zone financial crisis should not obscure the historic accomplishment that was the building of an integrated Europe over the past half-century. The continent is largely whole and free and stable. Europe, the principal arena of much 20th-century geopolitical competition, will be spared such a role in the new century — and this is a good thing.
photo { Walker Pickering }
It was 1985. I was 12 and standing next to my mother in a police station in Greenwich Village. She was a pretty red-haired gal in her late 30s, but the three police officers she was talking to weren’t looking at her. They were looking at the bag of crack vials she had in her hands, confused about what they were. I wasn’t confused. We had a lot of crack vials in our apartment at that point. Hundreds of them. My brothers and I played with them in Washington Square Park. We carried them around in our pockets the way other kids carried marbles.
I didn’t know then that this encounter would inspire a movement; that a group of local mothers would decide to do what the befuddled police would not: reclaim Washington Square Park from the drug dealers. (…)
My parents moved into our apartment at 32 Washington Square West in 1975. Over the next decade we watched as an army of dealers and their customers took over the heart of Greenwich Village. As a kid, I knew you didn’t ride your bicycle into the park, because a junkie would take it from you. The park’s arch, built as an imitation of the Arc de Triomphe, was covered in graffiti. When the city painted over it in 1981, Mayor Ed Koch applied the last stroke of white paint, then remarked, “That’ll last about an hour.”
artwork { Kathe Kollwitz, Death and a Woman Struggling for a Child, 1911 }
The normal human ratio is around 105 boys for every 100 girls, a natural evolutionary ratio that takes into account the fact that more boys tend to die before reaching adulthood. But in China today, the ratio is 121 boys for every 100 girls; in India the ratio is 112 boys for every 100 girls. (…)
In her thorough and compelling new book, Unnatural Selection, Hvistendahl explains why these trends will have far-reaching effects. She argues that the sex imbalance could prove devastating to social stability across the developing world, sparking crime, human trafficking, and - if history is any guide - even war.
photo { Sally Mann }
After the U.S.-led invasion of Iraq in March 2003, the George W. Bush administration flooded the conquered country with so much cash to pay for reconstruction and other projects in the first year that a new unit of measurement was born.
Pentagon officials determined that one giant C-130 Hercules cargo plane could carry $2.4 billion in shrink-wrapped bricks of $100 bills. They sent an initial full planeload of cash, followed by 20 other flights to Iraq by May 2004 in a $12-billion haul that U.S. officials believe to be the biggest international cash airlift of all time.
This month, the Pentagon and the Iraqi government are finally closing the books on the program that handled all those Benjamins. But despite years of audits and investigations, U.S. Defense officials still cannot say what happened to $6.6 billion in cash.
Is Pole Dancing Art? Court Rules No.
Nite Moves, a Latham, New York-based adult dancing club that features pole- and couch-dancing, had been seeking to argue that erotic dances counted as “dramatic or musical arts performances,” thereby qualifying for a tax exemption. A Tribunal had rejected that claim.
This means that Nite Moves must pay up on a $125,000 tax bill dating back to 2005 — though the club is appealing the ruling. (…)
To distinguish erotic dancing from, say, ballet, the court finds that real art requires you to go to school. In other words, stripping — or at least, the stripping that goes down at Nite Moves — doesn’t count as art because anyone can do it.
photo { Shomei Tomatsu }
The Obama administration is leading a global effort to deploy “shadow” Internet and mobile phone systems that dissidents can use to undermine repressive governments that seek to silence them by censoring or shutting down telecommunications networks.
The effort includes secretive projects to create independent cellphone networks inside foreign countries, as well as one operation out of a spy novel in a fifth-floor shop on L Street in Washington, where a group of young entrepreneurs who look as if they could be in a garage band are fitting deceptively innocent-looking hardware into a prototype “Internet in a suitcase.”
Financed with a $2 million State Department grant, the suitcase could be secreted across a border and quickly set up to allow wireless communication over a wide area with a link to the global Internet.
image { via Create Build Destroy | Thanks Cole! }
Times change, and with them what, where, and how people eat. In fifteenth-century London a man could be hanged for eating meat on Friday. An ancient Roman was expected to wear a wreath to a banquet. The potato in sixteenth-century Europe was believed to cause leprosy and syphilis. As of two years ago, 19% of America’s meals were being eaten in cars.
photo { Holly Andres }
related { Biscuit Embossing }
In 1846, an Irish immigrant named Alexander Turney Stewart opened a store in New York City unlike any that Americans had seen before. Located downtown, on the east side of Broadway, what became known as the Marble Dry Goods Palace was a huge emporium that offered luxury and everyday items alike. Stewart’s innovations as a retailer were numerous: He introduced what are believed to have been the first in-store fashion shows in America. He lavishly appointed his interiors, in striking contrast to the merely functional look of shops up to that point. And he was the first in the nation to use the street-level plate-glass windows as a display for merchandise.
Then there was A. T. Stewart’s most important innovation: His products came with price tags. At that time, in most stores, prices were set by haggling. The result was a frustrating dance between customer and salesperson, who parried back and forth until they managed to arrive at (in the words of one retail historian) “a price which neither party to the transaction considered robbery.” Stewart saw that this experience left buyers feeling taken advantage of, and it encouraged salespeople to squeeze the most from every transaction rather than build long-term relationships with customers. So he marked each product with a fixed price.
Customers embraced the new “no haggling” policy, and the Marble Palace became an enormous success. Sixteen years after the store’s debut, Stewart opened an even bigger one, the Cast Iron Palace at Broadway and 10th Street, which occupied a full city block and at the time was reputedly the largest retail establishment in the world. Stewart’s success—and his idea—did not go unnoticed by other merchants, and soon a plethora of other large stores, from Gimbels to Macy’s to Wanamaker’s in Philadelphia, abandoned haggling and adopted fixed prices. Within a generation, the price tag became ubiquitous; by the late 19th century, fixed prices seemed inseparable from the retail experience.
Almost a century and a half after Stewart’s innovation, a man named Pierre Omidyar opened another store unlike any that Americans had seen before: eBay.
{ Who Killed the Internet Auction? | Wired | Continue reading }
Our house in the western Catskills overlooks the Pepacton Reservoir, a 20-mile ribbon of water between Margaretville and Downsville. Maps on the Internet, depending on their scale and detail, will show you where the reservoir is in relation to nearby towns and roads. What they won’t show you, although every resident of the area knows about them, are the four towns — Arena, Shavertown, Union Grove and Pepacton — that were flooded in the middle ‘50s so that the reservoir could be constructed. (Today, after more than 50 years, resentment against New York City remains strong.) (…)
An apparently empirical project like geography is, and always has been, interpretive through and through. “The map has always been a political agent”(Lize Mogel), has always had a “generative power” (Emily Eliza Scott), and that power can only be released and studied by those who approach their work in the manner of literary critics.
related { Some maps contain deliberate errors or distortions, either as propaganda or as a “watermark” helping the copyright owner identify infringement if the error appears in competitors’ maps. The latter often come in the form of nonexistent, misnamed, or misspelled trap streets. | Wikipedia }
{ The newest Las Vegas Strip attraction isn’t another mega-resort or Cirque du Soleil show. Rather, it is a heavy equipment playground that lets visitors operate life-size Tonka toys. “Dig This” is a construction theme park developed by New Zealand-born Ed Mumm, who stumbled upon the idea while using a rented excavator to build his home in Steamboat Springs, Colo. After a couple of days of digging, he realized that operating machinery was a blast. | Engeenering News-Record | full story }
In the first years of the twenty-first century, New York City police officers had six different siren noises at their fingertips to alternate and overdub as they attempted to bore through stagnant traffic. The “Yelp” is a high-pitched, rapidly oscillating, jumpy sound that suggests a small dog with large teeth has hold of your thigh and is not about to let go. The “Wail” is the classic keening noise that the Furies might release while pursuing vengeance. The “Hi-Lo,” or “European,” is whiney, forlorn—prone to depression, but undeniably civilized. The “Air-Horn” is vulgarity incarnate—a burp, a rasp, an all-out bursty blast. The “Fast” or “Priority” resembles a hysteric who’s just mainlined crystal meth. The “Manual” is an outcast loner raising its rifle in a solitary low-to-high pulse.
The summer of 2007 saw the first broaching of the possibility that a seventh instrument might be added to the ensemble.
The Rumbler™.
{ Cabinet | Continue reading | NY Times | N.Y.P.D. Sirens | audio }
In recent years, nightlife has been increasingly recognized as an important resource for the enhancement of the post-industrial profile of the city and for the promotion of gentrification in derelict neighborhoods. It projects an image of a vibrant social and cultural life, considered particularly appealing to the young professional labour force of post-industrial sectors, the members of whom are particularly apt to consider moving to the city. However, the advocates of this ‘nightlife fix’ thesis ignore tensions that have emerged between residents in gentrifying neighborhoods and nightlife businesses due to the nuisance effects of the latter. Using the example of New York City, this paper examines how conflicts over nightlife in gentrifying neighborhoods have resulted in the gentrification of nightlife and have thus transformed the nature of the city’s nightlife itself.
video { Gil Scott-Heron died this afternoon in New York. He was 62. }
The number of violent crimes in the United States dropped significantly last year, to what appeared to be the lowest rate in nearly 40 years, a development that was considered puzzling partly because it ran counter to the prevailing expectation that crime would increase during a recession.
In all regions, the country appears to be safer. The odds of being murdered or robbed are now less than half of what they were in the early 1990s, when violent crime peaked in the United States. Small towns, especially, are seeing far fewer murders: In cities with populations under 10,000, the number plunged by more than 25 percent last year.
The news was not as positive in New York City, however. After leading a long decline in crime rates, the city saw increases in all four types of violent lawbreaking — murder, rape, robbery and aggravated assault — including a nearly 14 percent rise in murders. But data from the past few months suggest the city’s upward trend may have slowed or stopped.
Friday, August 12, 1988. On the sidewalk outside 57 Great Jones Street, the usual sad lineup of crack addicts slept in the burning sun. (…) In the months before his death, Basquiat claimed he was doing up to a hundred bags of heroin a day.
images { Odette England }
For the past 150 years, MIT has been leading us into the future. The discoveries of its teachers and students have become the warp and weft of modernity, the stuff of daily life that we now all take for granted. The telephone, electromagnets, radars, high-speed photography, office photocopiers, cancer treatments, pocket calculators, computers, the internet, the decoding of the human genome, lasers, space travel… the list of innovations that involved essential contributions from MIT and its faculty goes on and on.
And with that drive into modernity MIT has played no small part in building western, and particularly US, global dominance. Its explosive innovations have helped to secure America’s military and cultural supremacy, and with it the country’s status as the world’s sole superpower.
{ Guardian | Continue reading | video via copyranter }
