From The Annals Of CIA Incompetence

Dexter Filkins highlights an example – the gross mishandling of “Asset X”, the mysterious figure who eventually led the CIA to KSM:

Asset X was willing to help, for a price, the e-mail said. Then something went wrong. The C.I.A. agent who was meeting Asset X recommended that Asset X be paid a certain amount of money for his help, but the request was denied. Asset X disappeared. … Nine months later, the C.I.A. found Asset X, and he was still willing to help. Then something went wrong again: Asset X’s original C.I.A. handler had been transferred, and his replacement didn’t know Asset X’s real value. The replacement agent wrote several cables to C.I.A. headquarters seeking guidance and got no response. His cables were “disappearing into a ‘black hole’,’’ the agent later recalled.

With nothing to go on, the C.I.A. officer prepared to terminate his relationship with Asset X. While he was explaining his dilemma to a colleague, another C.I.A. officer—this one visiting from out of town—overheard him and explained that Asset X in fact was extremely valuable. Shortly thereafter, with no advance warning and no C.I.A. permission, Asset X travelled to Pakistan and unexpectedly met [Khalid Sheikh] Mohammed. Asset X went into a bathroom and sent a text message to his C.I.A. handler: “I M W KSM. Within hours, the C.I.A. and Pakistani intelligence agents stormed the Rawalpindi compound and captured Mohammed.

After which KSM, of course, was tortured over and over again, with “no information provided by [him leading] directly to the capture of a terrorist or the disruption of a terrorist plot.” However, as Judith Levine reminds us, it shouldn’t ultimately matter whether torture “worked” or not:

“No one shall be subjected to torture or to cruel, inhuman or degrading treatment or punishment,” pronounces Article 4 of the Universal Declaration of Human Rights.  No one. That’s the thing about human rights. Everybody has them—civilian, combatant, citizen, stateless migrant, innocent or criminal. Eichmann had human rights. Osama bin Laden had them. You can’t even waive your human rights. They are inalienable.

To torture is to strip a person not only of rights but of the humanity to which they attach. Dehumanization is torture’s definition, its prerequisite.

Is torture effective? The question is akin to asking if slavery is good economic policy or forced sterilization is an effective means of slowing population growth. Even if torture does work, it is still wrong. And the minute we start considering it as a tool to select to get the job done—like a wrench or a pliers to turn a bolt, a spade or pickax to dig a hole—then we do not only dehumanize those we torture, we cease to be human ourselves.

Will The FDA Ever Get Over Its Hemo-phobia? Ctd

A gay physician writes in:

Your reader estimates that under new FDA rules there might be two additional cases of HIV infection each year – and then concludes that this “unacceptable.” But where was the calculation of how many lives might be saved because of the new available blood? An entire side of the equation is missing.

Almost every decision in medicine involves judging risks versus benefits. Your reader appears to feel that for blood transfusions, our overriding principle must be that the “risk of giving a patient contaminated blood is as low as humanly possible.”  That would make sense if every hospital in the country was replete with usable donated blood.  However, last time I checked, the Red Cross was describing an “urgent need” for more donations.

A vivid recollection from my intern year: a middle-aged man with cirrhosis in the intensive care unit suddenly ex-sanguinating from his GI tract at two o’clock in the morning.  He likely would have died without massive blood transfusions. In that moment, the benefit of having available blood clearly outweighed any minuscule risk of contracting HIV.

Another expert weighs in:

I have written about biomedical research and policy for more than two decades. Even accepting that your writer’s assumptions and math are correct, what the comment lacks is a context.

Blood transfusion, like life, does carry risk. The FDA reports that 65 people died from blood transfusions in 2013. Often human error is a significant factor in those deaths. About 2-3 HIV infections occur each year in the US through blood transfusions, and that might increase by 1-2 if the policy is changed. But other serious and often fatal infections – sepsis, Hepatitis B, Hepatitis C, West Nile Virus – also are transmitted through transfusion, and at significantly higher rates. More about that issue here.

Additionally, a true risk/benefit calculation would have to factor in the impact of not having blood, particularly rare types, available for trauma victims and surgery. While the cost may be small, as with HIV transmission, it does exist. The discriminatory policy has negatively affected the ability to collect blood on college campuses. A growing body of research points to “young” blood as being more beneficial than that of an older person.

The experts who deal with transfusion medicine on a daily basis have studied these issues for many years and have concluded that lifting the gay blood ban is more cost-effective to society than keeping it in place. I trust their judgment more than I do that of some reader who cherry-picks issues and makes back-of-the-envelope calculations.

Another piles on:

Your reader argues that two additional deaths per year “simply for going to the hospital” is an unacceptably high risk.  He might be alarmed to know that, according to CDC estimates,  1 in 25 patients who simply walk into a hospital will contract an infection during the course of their stay, adding up to 722,000 infections in 2011.  About 75,000 patients with such health care associated infections die while in the hospital, although the presumably some of the patients might have died anyway.  Perhaps we should ban hospitals?  Or perhaps we should weigh benefits in addition to risks.

And another:

The math this reader laid out completely ignores the entire social context of this issue. The problem here is that the guidelines assume there is no way to make distinctions between gay men when it comes to risk of blood-bourne illnesses.  If you start from the presumption that there is no screening technique that could possibly give a more accurate picture than “any gay man who has had any sex in the last year is a potential disease vector,” then sure, that math makes sense.  By the same token, this map notes high incidence of HIV diagnosis (at least 428 per 100,000) among residents of NY, CT, NJ, DE, MD, DC, FL, SC, GA, and LA.  That’s almost a quarter of the US population.  In the absence of a ban on the residents of these states giving blood, we can assume (by the same very rough math used by that reader) that about 0.1% of donated blood is HIV positive.  The reason we don’t ban entire states from donating blood is that there are very simple questions we can ask that are only tangentially related to their place of residence which much more efficiently assess risk.

One more reader zooms out:

I think that one of the really wonderful things about the gay rights movement at this point in time is that the world is sort of opening up so quickly that everyone can be somewhat patient, and have faith in the progress to come.  It’s not necessary to dig in, and it’s easier not to get angry.  Your debate about the FDA guidelines is a great example.  If there is a bias in the blood donation policy, we can sort of unpack it and think about it clearly. I think it’s a pretty unusual place to be in a struggle for civil rights.

Rewriting The Story Of Selma

Selma, the new MLK film, has been criticized for its inaccurate depiction of LBJ. Last week, Yglesias defended the movie:

Both a Politico article by LBJ Library Director Mark Updegrove and a Washington Post article by former senior Johnson aide Joseph Califano charge the movie with serious historical inaccuracies. Like any biopic, Selma does condense and somewhat depart from the actual historical record. But Califano’s charge that the movie “should be ruled out this Christmas and during the ensuing awards season” goes well beyond standard-issue nitpicking.

But when you read these pieces closely, it seems that the big problem they have with the film is that it doesn’t cast LBJ as the hero of the Voting Rights Act. But the fact that Selma doesn’t do this is part of what makes it important. Hollywood too often gives us films about race in America where the real heroes are conveniently white. Selma doesn’t.

Bouie argues along the same lines:

[I]t’s wrong to treat nonfiction films—even biopics—as documentaries. Instead, it’s better to look at deviations from established history or known facts as creative choices—license in pursuit of art. As viewers, we should be less concerned with fact-checking and more interested in understanding the choices. …

Selma, simply put, is about the men and women who fought to put voting rights on the national agenda, and it engages history from their perspective. By hardening Johnson—and making him a larger roadblock than he was—DuVernay emphasizes the grass roots of the movement and the particular struggles of King and his allies. In the long argument of who matters most—activists or politicians—[filmmaker Ava] DuVernay falls on the side of the former, showing how citizens can expand the realm of the possible and give politicians the push—and the room—they need to act.

Ann Hornaday joins the debate:

The correct question isn’t what “Selma” “gets wrong” about Johnson or King or the civil rights movement, but whether we are sophisticated enough as viewers and thinkers to hold two ideas at once: that we’re not watching history, but a work of art that was inspired and animated by history. That we’re having an emotional and aesthetic experience, not a didactic one. That the literalistic critiques of historians and witnesses can co-exist — fractiously, but ultimately usefully — with the kind of inspiration, beauty and transformative power that the very best cinema such as “Selma” can provide.

But Josh Zeitz finds the film wanting:

[F]or a film about a pivotal moment in MLK’s life, it obscures too much of King’s political and personal genius. The events at Selma stood at the juncture of every theological and practical dilemma that King grappled with in his public career: The limits and utility of nonviolence. The balance between civil disobedience and civil society. How an activist stays politically relevant. Selma skims the surface of these questions, but it never gets to the core.

Gary May calls Selma “a flawed film”. However:

DuVernay has partly succeeded in presenting a more human King, warts and all. But ironically, this only increases King’s stature, making us admire him all the more for overcoming the political and personal problems that would have defeated a lesser man. Selma becomes a biopic in which the hero shines while those who worked beside him are overlooked or relegated to the sidelines. This is especially important because, as King often said, the essence of the civil rights movement was not one man’s actions but collective action, the work and sacrifice of many.

Prospero found it “hard to watch the film without thinking not just of the lead-up to the 1965 Voting Rights Act, but also of the unrest that followed recent fatal police actions in Ferguson, Missouri, and New York City.” National Review editor Rich Lowry rejects that comparison:

The protesters who faced off against the police in Selma didn’t shout abuse, although they would have been amply justified; they didn’t burn down local businesses; they didn’t randomly fire guns, or throw rocks or stones. The difference between demonstrators in Selma and Ferguson is the difference between dignity under enormous pressure in a righteous cause and heedless self-indulgence in the service of a smear (that Officer Darren Wilson shot Michael Brown as he surrendered).

Weigel puts Lowry’s criticisms in historical context:

This is a risky subject for National Review. William F. Buckley, the magazine’s founding editor, did not respond to the Selma marches by calling for universal voter rights. He wondered if immediately giving the vote to all black Alabamans would lead to racist vengeance, and cited Egypt, Ghana, and Algeria as despotisms “life for the dissenter is far worse than life for the Negro in Selma, if only because he has hope.” He also asked whether, if universal suffrage wasn’t possible, it made more sense to limit the franchise by education instead of race—to people with high school diplomas, possibly. …

From the vantage point of 2015, Selma looks like “as clear a conflict between right and wrong as we get” and a “righteous cause.” In the spring of 1965, it wasn’t so clear to everyone. Selma doesn’t do much with the doubters, though; it portrays the violence against the marchers as so heinous that it serves the Southern Christian Leadership Conference’s purpose in pushing the Voting Rights Act to the front of the national agenda. Critics of the march, such as Governor George Wallace, are shown to be obviously, humiliatingly defeated.

That’s the history everyone has come to prefer, even the people arguing that no current “civil rights” cause should be compared to Selma.

Palestine Ups The Pressure, Ctd

Israel has responded to the Palestinian Authority’s bid to join the International Criminal Court with predictable harshness:

In an initial response over the weekend, Israel said it had frozen 500 million shekels (more than $125 million) in tax funds collected for the Palestinians. The monthly transfers are a key source of revenue for the cash-strapped Palestinian government. Netanyahu’s government minister for strategic affairs, Yuval Steinitz, said Israel could take even tougher action. “If the Palestinian Authority continues to attack us, I assume we will consider other steps,” he said, without elaborating.

The Israeli government is also planning to petition Congress to cut off American aid to the PA. In an editorial, Ha’aretz slams these retaliatory measures as “perverse revenge”:

The Palestinian application to the ICC is uncomfortable for Israel. But those who fear it now should have considered the implications before they pushed Abbas into a corner.

In any case, despite the embarrassment Israel is liable to suffer in The Hague, the application is still a nonviolent, political move, whose impact Israel can mitigate greatly if it conducts its own investigation into suspected war crimes. But over all this hovers the question of where the punishments imposed by Israel will lead. Does Israel want to see the PA collapse? Has it taken into account the impact its action will have on the PA’s faltering economy? Revenge and punishment aren’t a policy. And they most certainly aren’t a smart policy.

Emily Schaeffer Omer-Man points out that Israel would have nothing to fear from the ICC if it were more vigilant in investigating and punishing crimes within its own security apparatus:

What is beyond ironic here, and in fact cause for concern, is that the Palestinian bid to the ICC would pose no threat to Israel if the latter were to meet the complementarity requirement under the court’s statute. According to the Rome Statute, state actors over which the court has jurisdiction by virtue of the said state being a party to the treaty, or the complaint having been launched by a state party, may only be prosecuted if it can be shown that the same state is “unwilling or unable” to carry out a genuine investigation and prosecution of the alleged war crime. …

Under the Israeli military justice system the Military Advocate General both counsels the military on the law during operations and decides whether to investigate and indict those accused of violating it after the fact. Moreover, relevant Israeli criminal law does not define offenses that constitute war crimes as such, and thus they are not prosecuted and penalized with the appropriate gravity.

J.J. Goldberg, meanwhile, thinks through what charges Israel might face if the Palestinians’ move succeeds:

Israel would be far more vulnerable to war crimes charges for its settlement policies. Many friends of Israel find it ludicrous that building apartment houses could be considered a war crime, but international law is pretty unambiguous on the question. The legal text is the Fourth Geneva Convention, the international treaty adopted in 1949 in response to the Nazi atrocities. According to Article 49 of the convention, a nation that occupies another nation’s territory in the course of war may not “deport or transfer part of its own civilian population into the territory it occupies.”

Note that there’s noting illegal about one nation occupying another nation’s territory in the course of war. That’s what happens in war. The Fourth Geneva Convention defines how the occupied territory and its population must be treated during the course of the occupation. It says nothing about the fact of occupation itself except that it happens in war. So all the talk you hear about Israel’s “illegal occupation” is simply ignorant. An argument can be made that Israel illegally violates certain of its obligations as the occupying power. That’s what the court case will be about, if it ever reaches the court.

Juan Cole fantasizes about the court indicting Netanyahu:

While it is unlikely that this could happen, Israel’s leadership might not be able to visit most of Europe, which would isolate them and much reduce their influence. The European institutions in Brussels would take an ICC conviction seriously. … Over a third of Israeli trade is with Europe, and technology transfers from Europe are crucial to Israel. It could be kicked out of European scientific and technological organizations, where it presently has courtesy memberships. And Israeli leaders could end up being afraid to visit European capitals lest they be arrested, Pinochet style (even if governments ran interference for them, they could not be sure to escape lawsuits by citizen groups and could not be insulated from activist judges).

The world wouldn’t end for Israeli leaders if they were convicted, as it hasn’t ended for [Sudanese President Omar] al-Bashir. But the consequences would be real and unpleasant, and over time could have a substantial impact.

But Aaron David Miller deflates expectations that Palestine will accomplish much of anything by joining the court:

There are numerous issues relating to whether the Palestinian Authority can be recognized as a state for purposes of presenting charges to the Court; jurisdictional questions; and Palestinian vulnerabilities too that stem from Hamas’s own transgressions and alleged war crimes. And even if these can be overcome, there’s the matter of whether the ICC wants to get drawn into the politics of the Israeli-Palestinian problem. Having publicly indicted roughly three dozen individuals in 12 years, and all of those in Africa for crimes that variously involve willful murder, torture and rape, it would strain the ICC’S credibility should the Court decide to open cases against Israeli military commanders or senior politicians. That the ICC can’t indict the Middle East’s No. 1 war criminal , Bashar Assad, because Syria isn’t an ICC member and Russia would block any UNSC referral of the matter doesn’t do much for the court’s credibility. And prosecutors want to take cases they can win; and it’s by no means clear that the ICC wants to get itself in the middle of the Israeli-Palestinian conflict or that it believes that’s going to enhance its political reputation and credibility by doing so.

The PA’s move, Matthew Waxman adds, “is also very bad for the ICC”:

That Court, which faces major resource and management challenges, is already reeling from the collapse of its case against the Kenyan President and from lack of support among states to enforce its arrest warrants against Sudanese leaders. Palestinian membership will make the United States more hesitant to support the ICC generally, and may push the United States back to actively undermining it. More significantly, it thrusts the ICC into the fiery politics of the world’s most intractable diplomatic problem. There is nothing the ICC can do that will not bring upon itself tremendous criticism, from one side or the other: pursuing cases against Israel will end any U.S. support for the Court and produce another tense situation in which the court’s authority is powerfully resisted, while declining cases will lead to charges that the court is feckless.

Beyond short-term factional politics on both the Palestinian and Israeli sides, the effect of which is to drive them farther apart in seeking long-term solutions, there are no winners in this move.

Yishai Schwartz argues that Palestine’s ICC accession will help Netanyahu, and what’s more, Abbas knows it:

So even though he might personally prefer Livni to Bibi, he must also recognize that politically, a right-wing Israeli government is a diplomatic triumph. International support for Palestinians plummets when Israel is led by leftist leaders who make concrete offers. Palestinian rejections of Barak’s and Olmert’s offershowever reasonable or unreasonablecontributed to a public image of the Palestinians as unserious and recalcitrant. By contrast, an Israeli government led by the confrontational Netanyahu and staffed by figures explicitly opposed to Palestinian statehood is a gift to Palestinians. In the years since Netanyahu assumed power, Europe has grown increasingly fed up with Israeland as demonstrated by France and Luxemburg’s Security Council votes in favor of Palestinehave completely embraced Palestinian positions on the major issues.

Obama’s Approval Bump

Not of the fist variety – though there are probably a lot of those going around:

Obama Polling

Sam Wang measures it:

Since mid-December, President Obama’s net approve/disapprove numbers have shot up. This graph shows the median of the last 21 days of polling. The current level, a net disapproval of only 2%, reflects six pollsters (Gallup, Rasmussen, CNN, ARG, YouGov/Economist, and ABC/Post). These are his highest numbers since early 2013. What is going on?

He connects this uptick to Obama’s “newfound liberation from the pressures of the election cycle”

I’ll get out on a limb with a speculation: If this “real Obama” uptick lasts, it might demonstrate a benefit to Democrats if they act, with vigor, like Democrats. With a newly invigorated President and a Congress in full opposition, the coming year will be worth watching.

Meanwhile, Philip Bump notes that, “with the exception of a spike around the 2012 elections, President Obama’s approval rating has been unusually steady”:

If you look at the distribution of the most common approval ratings for presidents since Nixon (skipping Ford), you get a pattern that looks like this. The darker the bar, the more common that particular approval rating.

Approval

You’ll notice that the overall range of approvals for Obama has fallen in a fairly tight range — comparable to Presidents Reagan and Clinton. But that’s the total range. The most common approvals Obama has seen have been within a relatively narrow zone in the mid-40s.

He attributes this to consistent Republican disapproval:

By the end of his first year, Obama’s approval among Republicans had fallen to 16 percent; it’s rarely been above that since, settling into a general 7-15-point range. The fluctuations, then, have mostly been the result of Democrats embracing or ignoring the president — and independents getting more or less enthusiastic.

The 2014 Dish Award Winners!

More than five thousand readers have voted and the results are in. This year’s Malkin Award, given for noxious, divisive and hyperbolic commentary from the right, goes to Dinesh D’Souza offering his intemperate worst on the legacy of American slavery:

Did America owe something to the slaves whose labor had been stolen? I think so, but that debt is best discharged through memory, because the slaves are dead and their descendants are better off as a consequence of their ancestors being hauled from Africa to America.

And when it comes to the year’s best window views, this shot from Eilean Donan, Scotland took top honors:

2014’s Yglesias Award, given for criticizing one’s own side and thus risking something for the sake of saying what one believes, goes to Charles Krauthammer for his statement on the notorious rancher and conservative cause célèbre Cliven Bundy:

It isn’t enough to say I don’t agree with what he said. This is a despicable statement. It’s not the statement, you have to disassociate yourself entirely from the man. It’s not like the words exist here and the man exists here. And why conservatives, or some conservatives end up in bed with people who, you know, he makes an anti-government statement, he takes an anti-government stand, he wears a nice big hat and he rides a horse, and all of a sudden he is a champion of democracy …

Look, do I have the right to go in to graze sheep in Central Park? I think not. You have to have some respect for the federal government, some respect for our system. And to say you don’t and you don’t recognize it and that makes you a conservative hero, to me, is completely contradictory, and rather appalling. And he has now proved it.

Camels can graze wherever they want if they keep stealing selfies like 2014’s Face Of The Year:

For the first-ever Beard Of The Year competition, this magnificent piece of work won in a landslide:

IimgdL4

Meanwhile, Susan Elizabeth Shepard and Charlotte Shane have been crowned the year’s biggest poseurs for this pretentious mess:

69 confronts us with an unfortunate truth: it is a distinctly capitalistic, efficiency-emphasizing endeavor that erases the unique personhood of each participant by relying on a crude approximation of how human bodies fit together if human bodies are conceived of as identical, two-dimensional figures like the numbers of its name. … The position also echoes the service economy in its demand (mainly on women) of a convincing performance of pleasure. It’s not enough to simply be present and to competently do the job that’s asked of you by your lover, you must also appear to simultaneously enjoy said lover’s ministrations, regardless of the delicate balancing requiring to keep from suffocating him or breaking his nose. This is a form of emotional labor like that demanded from baristas, servers, and sex workers; not only do you have to do a good job, you have to like it.

Cattle weren’t the only ones to show up in support of 2014’s Mental Health Break Of The Year:

But a stoned Maureen Dowd might have considered that video a viral nightmare. She wins 2014’s top Hathos honors for her novel summary of what it was like to take too many edibles:

Then I felt a scary shudder go through my body and brain. I barely made it from the desk to the bed, where I lay curled up in a hallucinatory state for the next eight hours. I was thirsty but couldn’t move to get water. Or even turn off the lights. I was panting and paranoid, sure that when the room-service waiter knocked and I didn’t answer, he’d call the police and have me arrested for being unable to handle my candy. I strained to remember where I was or even what I was wearing, touching my green corduroy jeans and staring at the exposed-brick wall. As my paranoia deepened, I became convinced that I had died and no one was telling me. And then I wrote a column on Hillary.

According to the polls, more than 30% of you thought this powerful New Zealand PSA was the year’s Coolest Ad:

And Pavlina Tcherneva’s bar graph tracking America’s income growth disparity is the Chart Of The Year:

Finally, we also added maps to this year’s awards, and Dishheads chose Nik Freeman’s overview of where Americans don’t live as 2014’s best:

Thanks to everyone who took the time to channel their Dishness and vote. For our newer readers, you can find out more about how and why we nominate award candidates here. To recommend a new nominee, email us here.

The Price Tag On That New Year’s Resolution

It’s highly variable:

High-end gyms catering to individuals with intensity and ample disposable incomes are proliferating, particularly in urban markets. The infamous and fast-growing SoulCycle costs an eye-watering $34 a class. (If you buy a 30 pack, it works out to just $28.33.) Work out four times a week for a year, you’re facing a nearly $6,000 tab. Going to CrossFit looks cheap in comparison, at about $2,500 a year in Manhattan. Ditto for all those boxing gyms, Pilates and barre studios, and outfits offering massages and juice bars.

But amenity-lite, low-end gyms catering to budget consumers are proliferating too.

For the same price as a single one-off SoulCycle class, you could work out for a month and a half at a Blink Fitness outlet or for three whole months at the Planet Fitness in Brooklyn. “From 2010 to 2014, many small, low-cost gyms with few amenities and month-by-month contracts have fared well,” said an industry report by IBISWorld. “Poor economic conditions, coupled with many consumers continuing to be budget conscious over the period, have caused new trends to emerge.”

It is the middle that is growing more slowly, with some chains struggling to demonstrate their value to consumers — your Bally Total Fitness, now all but defunct, or Curves. It is the gyms with considerable but not intolerable monthly fees and decent amenities, but no sheen of luxury or promise of extraordinary results.

Welcome To The Eurozone … Now Empty Your Pockets

Screen Shot 2015-01-05 at 11.38.07 AM

The dubiously elite continental currency club admitted a new member over the holidays:

On Thursday, Lithuania became the 19th country to join the euro zone. The move made it the last Baltic nation to adopt the currency, and the timing was inauspicious—the euro looks more and more like an economic death sentence as depressions spread across the continent. Proving skeptics right, less than 24 hours later, the currency’s value dropped to a four-year low after European Central Bank President Mario Draghi seemed to suggest that the bank might start printing money to combat what he called “excessively low” inflation. The Financial Times noted that with the latest dip, the euro’s value “has fallen by 12 percent against the dollar in the past six months.”

Matt O’Brien calls Vilnius’s gambit “another reminder that the euro, which isn’t so much a currency as a doomsday device for turning recessions into depressions, has always been much more about politics than economics”:

In Lithuania’s case, those politics come down to four words: breaking free of Russia.

That, after all, sums up their last 100 years of history. … Indeed, it’s no coincidence that Lithuania’s support for joining the euro has gone from 41 percent in 2013 to 63 percent today in the wake of Russia’s incursion into Ukraine. Freedom, in other words, is worth a euro-induced depression. It’d better be, because that’s what Lithuania has gotten. It pegged its currency to the euro back in 2002, you see, so it’s been importing the euro-zone’s monetary policy for over 12 years now. And, like the other Baltics, that’s ended quite poorly for them. Lithuania went on a borrowing binge — its current account deficit reached a staggering 14 percent of GDP in 2007 — as rates that were too low for its still-catching up economy pushed housing prices if not into the stratosphere, at least into the lower level clouds.

At the same time, Mike Bird notes, the chances the Greece will take the heretofore unthinkable step of exiting the euro have increased:

That’s because Syriza, the radical leftist coalition that wants to tear up the country’s bailout rules, looks likely to win [the general election on Jan. 25]. That means a game of chicken with the EU institutions and International Monetary Fund. If either side refuses to back down, there could be market chaos, bank runs, and a forced exit from the euro. … It’s not Syriza’s official policy to leave the euro, but a solid portion of the group are happy that route, and others may join them — if pushed.

The Greeks’ disillusionment with the currency stems largely from the European Central Bank’s unwillingness to take steps to boost employment in peripheral countries at the risk of increasing inflation, which Germany (the eurozone hegemon) fears. However, David R. Kotok thinks that’s about to change:

The economies of Europe are on a very flat growth path. They have high unemployment, large structural impediments, no apparent inflation, and either extraordinarily low growth or actual shrinkage, depending on which country we examine. The tool of European fiscal policy is hampered by huge deficits and lots of unfunded social liabilities.

Monetary expansion is the only game in town. Interest rates have already fallen to levels below zero in some shorter-term instruments and near zero in others. We expect a large monetary stimulus to originate from the European Central Bank as early as the end of this month. Markets are building this expectation, which will mean a huge market disappointment if the ECB does nothing.

(Chart via xe.com)

Who Does Torrenting Hurt?

Freddie identifies “pro-torrenting cliches that need to die.” At the top of his list:

Studies say pirates pay for more content than people who don’t pirate. Those studies are old, small, and of dubious methodology, involving self-reported data. Of course, none of the people who constantly invokes them cares to look at them too closely. They are believed because they tell people what they want to hear. But even if this claim is true, it doesn’t prove what the people who say it think it proves. The question is, do these pirates pay enough to replace the revenues that are lost to the system, as a whole, from piracy? And given the way that the music industry’s revenues have cratered, and the ongoing slowdown in the movie industry, the answer appears to be no.