I've Been Saying This for Years

For some time, I have argued that one of the ways to limit the damage that hedge funds and private equity can do is to reform bankruptcy laws to leave them on the hook for the consequences of their looting. (See here, here, here, here, here, here, and here, and this is only for the 2020s)

Nice to see that economist Dean Baker has reached the same conclusion.

The American Prospect had an excellent piece yesterday describing how taxpayers could end up being on the hook for bailing out bad loans to the AI industry even with no new actions by Congress or state legislatures. The mechanism is that life insurance companies have issued hundreds of billions of dollars of private loans to AI-related companies. (We can only speculate on the amount since many of the loans are issued by privately held companies, which don’t have to make detailed disclosures of holdings.) If these companies are unable to repay the loans, then one or more insurers could go bankrupt.

………

There is a simple way to reduce the likelihood of this sort of bailout on insurers’ bad AI investments. The bankruptcy laws can be changed to make private equity (PE) companies liable for the debts incurred by the companies they own and control. Senator Elizabeth Warren and Representative Mark Pocan proposed this change as part of their Stop Wall Street Looting Act in the last session of Congress.

This matters in the current context because many insurers have been bought by PE companies in recent years. While the insurers may be unable to repay their debts, the PE companies that own them may still have billions of dollars of assets.

Changing the law in this way not only prevents PE companies from walking away from the wreckage caused by the companies they drive into bankruptcy; it would also force the insurers they own to be more cautious with their lending. If the PE companies were themselves on the hook, they would discourage insurers from making too many high-risk loans.

Indubitably. 

A Good Start

In response to concerns about stability of the power grid, the Public Utility Commission of Texas has halted power connections for data centers,

Given the rather precarious state of Texas' power grid, this is good policy ……… In Texas ……… Will wonders ever cease?

Nowhere is the US data center boom bigger than in Texas. But less than a year after declaring Texas the “epicenter of AI development,” Governor Greg Abbott has declared a moratorium on all new power grid connections for data centers—at least until developers provide more information about their projects’ potential impacts on the grid and communities.

The Republican governor directed regulators in an August 3 announcement at the Public Utility Commission of Texas and the grid operators at the Electric Reliability Council of Texas (ERCOT) to perform a “comprehensive verification and audit of all data centers advancing through ERCOT’s interconnection process.” As an independent system operator, ERCOT oversees a power grid that operates separately from the rest of the United States and provides services to most of Texas.

………

Abbott also directed state regulators and grid operators to discover the extent to which data centers’ cooling systems and water usage may draw upon local water supplies needed by local communities. However, the governor’s directive does not mention the fact that data centers often use much more water through their power generation sources than directly through their cooling systems—a fact highlighted by researchers like Shaolei Ren at the University of California, Riverside.

First Tom Delay, and now this.  

Would someone find out what it is that they have been smoking in Texas recently, and have 20 grams sent to me. 

F%$#! I F%$#ing Agree With Tom F%$#ing Delay!

The longtime holder of the most unpleasant man in Congress title, at least until Ted Cruz was elected to the Senate, has mad a publicly stated that the FCC has no authority to roll back the regulations limiting local TV station ownership.

Well, I guess that it's a stopped clock thing.  ¯\_(ツ)_/¯

Tom DeLay, the Texas Republican who was House majority leader from 2003 to 2005, said the Federal Communications Commission has no legal authority to repeal the National Television Ownership Rule. Despite DeLay’s warning, the Trump FCC appears ready to eliminate the rule at its meeting this week.

DeLay wrote an op-ed describing how he helped write the law that prohibited any single broadcast station owner from reaching more than 39 percent of all TV households in the US. DeLay said that only Congress, not the Trump FCC, can change the cap because the 39 percent limit is specified in US law and wasn’t chosen by the commission.

DeLay gave his view in an op-ed for The Daily Wire yesterday, less than three weeks after FCC Chairman Brendan Carr announced a plan to eliminate the cap. The FCC is scheduled to vote on Carr’s proposal on Thursday.

 

 

Boo F%$#ing Hoo

It appears that the "Titans of Wall Street" and real estate developers has a sad because Zohran Mamdani is refusing to genuflect to them.

As opposed to putting these leaders on prestigious advisory panels and giving a tacit veto over policy, he's treating them like they are just another New Yorker. 

Imagine that.  He's delivering on another campaign promise.

New York City’s business elites are long accustomed to direct access to City Hall, where even Democratic mayors felt the need to court the city’s wealthiest and most influential corporate leaders.
That access is getting shredded by Mayor Zohran Mamdani. 

The mayor this week fired dozens of corporate leaders from the advisory board of a multimillion-dollar philanthropic fund called the Mayor’s Fund to Advance New York City. 

………

Mamdani said he is creating a new advisory board that will include appointees with the same background as previous members, “as well as those who oftentimes have not been at the heart of the conversations of how philanthropy can build upon the work of public goods and public dollars.”

The shake-up marked the latest effort by Mamdani, an avowed Democratic Socialist, to put distance between himself and the city’s traditional power brokers. 

“Twenty or 30 years ago, real estate in New York City could single-handedly stop something or make something happen,” said James Whelan, president of the Real Estate Board of New York and one of the board members who was dismissed from the Mayor’s Fund. But under Mamdani, “one has to consider whether he is looking for opportunities to pick fights to stir up the base.”

Or maybe, Mr. Whelan, he is just not willing to sell out to parasites who leverage public dollars for private profit.  (That's real estate everywhere, particularly in New York City)

………

And he brought in an antitrust crusader in Lina Khan to chair the city’s Economic Development Corp., the government body that the real estate community closely relies on to execute large-scale development projects.  

Merciful heavens!  He's not selling out for campaign donations!  It's barbarism, I tell you, absolute barbarism!

The real-estate industry is getting used to its new perch from the outside. Earlier this summer, in a hopeful sign of collaboration, the mayor’s office said it was briefing landlord groups on Mamdani’s “Rental Ripoff Report,” a collection of policy reforms responding to tenant complaints over the city’s housing conditions. 

But that exclusive briefing never came, at least not for REBNY, Whelan said. REBNY members saw the report for the first time in a press release, just like the rest of the public.  

Oh noes!  The Mayor is not handing out advance copies of inside information!

Check your privilege. 

 

Worse than a Crime, It Is a Mistake

There are reports that Arizona Governor Katie Hobbs, who is facing a close race again, will be picking a Republican as her Lieutenant Governor.

The Republican in question, former Mesa Mayor John Giles is allegedly a, "Moderate," but it is a stupid move, on par with Kamala Harris campaigning with Liz Cheney.

This does not look like being reasonable of reaching across the aisle.  

Instead, it looks like craven and unprincipled posturing for electoral advantage.

The worst part is that it won't work.  (One only has to look at Harris' shambolic campaign)

Gov. Katie Hobbs of Arizona, a vulnerable Democrat running for re-election, plans to tap a longtime Republican and former mayor of a Phoenix suburb to serve as her running mate, according to two people familiar with the decision.

John Giles, a former mayor of Mesa, Ariz., is expected to be announced in the coming days as Ms. Hobbs’s lieutenant governor nominee. Neither Ms. Hobbs nor her campaign would confirm the choice, and nothing is final until an announcement.

But the apparent pick is a nod to bipartisanship in a campaign that will pit Ms. Hobbs, a low-key Democrat, against Representative Andy Biggs, a fiercely partisan Republican with President Trump’s endorsement.

Ms. Hobbs’s narrow victory four years ago was secured with the backing of moderate Republicans and independent voters who have recoiled against hard-line Republican nominees in each of the last two election cycles.

Biggs is a f%$#ing nut-job.  You need to call him a nut-job.

Playing nice and bipartisan against Attila the Hun just ends with your severed head on a sharp stake.

An Interesting Electoral Data Point from Kansas

Normally, I would not consider the Democratic Party gubernatorial primary in Kansas to be interesting, but considering that there has been a Democratic Governor in the state for the last 2 terms,  the nomination of Cindy Holscher is very interesting.

First, her opponent was endorsed by popular outgoing Democratic Governor Laura Kelly, and second, Holscher has made opposition to data centers a central part of her campaign.

I do not think that politicians understand just how ferociously the whole Artificial Intelligence/Data Center industrial complex is loathed by the American public right now.  

………

Kansas Democrats chose Sen. Cindy Holscher as their candidate for governor, declining in the Aug. 4 primary to send Gov. Laura Kelly's endorsed candidate through to the general election.

………

As of 9:25 p.m., Holscher, D-Overland Park, whose running mate is Rep. KC Ohaebosim, D-Wichita, received about 48% of the vote over Sen. Ethan Corson, D-Fairway, who gained around 40% of the vote with Decision Desk HQ and the Associated Press calling the race.

This sets up a general election matchup with Senate President Ty Masterson, R-Andover, who won the Republican primary.

Holscher has campaigned as an anti-establishment candidate. While she voted for legislation giving ⁠sales tax breaks to data centers and ⁠incentives for the Kansas City Chiefs, she has campaigned on ⁠opposing data centers and government subsidies. She has also spent more time than her opponents ⁠criticizing former Gov. Sam Brownback.

………

Corson ⁠led in both fundraising and major traditionally Democratic endorsements, ⁠including from Gov. Laura Kelly. He has campaigned on continuing Kelly's legacy while also ⁠promising to stand up to Trump. Corson's running mate was Salina Chamber president Renee Duxler.

I do believe that an anti-AI data center platform is a winner almost everywhere. 

Primaries Tonight

The obvious lede for tonight is the Democratic US Senate Primary between Abdul El-Sayed and Haley Stevens, this is less about the general election than it is about the internecine warfare between the Democratic wing of the Democratic Party and the Democratic Party establishment (There is no Democratic Party establishment).

The establishment is more than willing to lose the Senate seat by supporting the candidate from AIPAC (Stevens) than it is to accept El-Sayed, who supports Medicare for all and opposes Israel's actions.  

For much of the large Arab and Muslim community in Michigan, I think that it is likely that they will stay home rather than vote for Stevens.

We also had some interesting news in Missouri, where Amendment 4, an attempt to hamstring voter initiatives so that they can ban abortion, lost by a 4:1 ratio, and Amendment 5, an attempt to eliminate the state income tax by raising the sales tax, failed by an even larger margin.

Additionally, Wesley Bell beat Cori Bush by a comfortable margin in a rematch of the 2024 primary, where Bell ousted Bush.  (Again, another AIPAC candidate)

In terms of my disdain for AIPAC, this is not about support for the state of Israel, I remain a proud Zionist, it is rather than AIPAC and Netanyahu are clear and present dangers to the state of Israel, ones that I would consider more alarming that the possibility of a nuclear Iran.

Linkage

• Courage Before Greatness: The Albert Camus Story (Classic Literature) He was a serious badass.
• Sculptor Spends $100K on Charlie Kirk Statue, Struggles to Find Buyer (Art News) My heart bleeds for him.
• The earth has stopped being as shiny. Insurers are worried (Insurance Business) Anthropogenic climate change is now driving further climate change.
• Long COVID Brain Scans Reveal Damage to Dopamine Neurons (Sci Tech Daily) Wear your f%$#ing mask.
• Incredible Video Shows Chinese Rocket Get Hit by Lightning Mid-Launch  (Futurism) It survived, but why launch in such weather?
• The myth of medieval childhood (Works in Progress) Medieval parents loved their children too.
• The Math Behind The U.S. Defeat in Iran  (Forever Wars) Proof of the old adagage from Josef Stalin, "Quantity has a quality of its own."
• Rahm Emanuel’s Losing Record (The Nation) Making the obvious point, that Emanuel's history is one of failure.
• A fundamental flaw leaves LLMs strikingly vulnerable to attack (MIT Technology Review) Short version:  LLMs are broken in ways that are ineluctably tied to the basic model.
• AI slop pollutes the CVE pipeline with fake vulns (The Register) AI slop is just that, slop.

Cthulhu in the manner of Theodore Seuss Geisel:

Sub Hed of the Day

In an article noting that Iran seems to be spending a significant amount of resources attempting to blast Amazon warehouses and data centers off the map in the Middle East, we have the sub hed, the line between the headline and the byline saying, "That's one way to deal with data centers."

I like that framing.

There’s data center activism, fought with Facebook groups and petitions, and then there’s data center annihilation, fought with guided missile and suicide drones.

Recently, the Iranian military announced it had hit and damaged two Amazon data centers in the island country of Bahrain with a volley of cruise missiles.

After the attack, the Iranian state media outlet Tasnim published a partial statement from the Islamic Revolutionary Guard Corps, saying that the “IRGC Aerospace warriors… in response to the aggression and assault… by the child-killing American army on the under-construction and civilian facilities of DarKhoveyn, attacked and destroyed the central data infrastructure of the American company Amazon in Bahrain with several cruise missiles.”

Using images from the European Space Agency’s Sentinel-2 satellites, Bloomberg confirmed an attack on the data center campus had taken place, though noted it’s difficult to say how bad the damage is (Amazon refused to comment on Bloomberg‘s reporting.)

I do not approve of this war, nor do I approve of Iran's theocratic regime, but if they expanded their target list to include Flock Cameras, I would be more receptive to their ideas.

Just saying. 

I'm Calling Bullsh%$

So, Todd Blanche has announced that he will be canceling the Trump slush fund in order to get Republican votes for his nomination as US Attorney General, he also issued a related memo saying that the IRS amnesty will only apply to Trump, his businesses, and his immediate family.

Unsurprisingly, the Republicans have declared that this is enough.

Equally unsurprisingly, even though the one of the memos is signed by Todd Blanche. they mean nothing, because the "settlement" requires signatures from all parties to modify.

It's all bad legal theater. 

Texas Senator John Cornyn and North Carolina Senator Thom Tillis just caved to Donald Trump’s demands, paving the way for acting Attorney General Todd Blanche to move toward a full Senate confirmation.

The two Republican holdouts announced Monday that they had reached a deal with the Justice Department that they claimed satisfied their aims to end Trump’s $1.8 “anti-weaponization” fund.

“We are pleased that the Department of Justice has issued a formal order terminating the anti-weaponization fund,” the outgoing lawmakers said in a joint statement. “Additionally, the Department has acknowledged in a binding written order that the audit settlement is limited to the plaintiffs and the scope does not extend beyond the defendants in the lawsuit, the IRS and the Treasury, addressing concerns that multiple of our Republican colleagues share.”

………

On its face, Blanche’s note appeared to terminate the fund, specifying that the order was “rescinded and shall have no force or effect.” However, journalists were quick to comment that the language employed in the rest of Blanche’s memo not only suggested that the honey pot fund would be preserved in some form, but also failed to terminate Trump’s underlying IRS immunity arrangement.

This makes Neville Chamberlain waving a piece of paper after selling out Czechoslovakia look like a profile in courage.

The War Crimes Were the Purpose

I am not surprised that the Trump administration's program of targeted assassination in the Caribbean and the South Spear have not slowed drug shipments to the United States.

This is not a surprise.  The goal of this program was never to interdict drug shipments.  It's goal was to murder innocent fisherman for in order to generate the illusion of toughness.

The Trump administration’s deadly military strikes on alleged drug trafficking boats have not reduced the amount of cocaine entering the United States, but they’re prompting criminal organizations to develop new strategies and tactics and undermining traditional investigative methods, according to a previously unreported assessment by the Drug Enforcement Administration, a closed-door congressional briefing and interviews with current and former U.S. and foreign officials.

It's all posturing and politics and corrupt murder. 

Should Be Permanent

Professionally obnoxious Evangelelist Whitney Lynn has an signature bit of theological masturbation, she stands up and preaches onboard airline flights, which prevents people from walking away.

Well, Alaska Airlines just booted her from a flight, and her self-involved butt-hurt is a site to see.

Florida evangelist Whitney Lynn uses most of her flights as an opportunity to share her faith, a trend that was featured in a recent Washington Post article.

On Thursday, she said, her sermon got her kicked off a San Diego-bound jet before it even took off from Orlando International Airport. She documented the removal in a series of videos she posted on social media, one of which had racked up 3 million views on Instagram by Friday afternoon.

………

In another video, an airline employee can be seen telling Lynn to gather her things and follow him off the plane because the “crews don’t feel safe with you.”

………

In an emailed statement responding to questions about Lynn’s videos, Alaska Airlines said that the flight crew “became increasingly concerned” about a passenger’s behavior.

“The passenger was asked to deplane the aircraft for safety reasons,” the airline said in a statement. “For the foreseeable future, the guest will not be permitted to travel on our flights.”

Lynn, who said she had planned to attend a follower’s funeral in California, said she was able to rebook her flight but later got an email from the airline saying she was not allowed to travel on Alaska Airlines, Hawaiian Airlines or Horizon Air while reports about her recent travels were under investigation. She received a flight credit but said there is no way for her to use it now.

Nice to see someone who hypocritically uses religion as an excuse to express rudeness and passive aggression get what is coming to them.

You mess with the bull, you get the horns. 

Headline of the Day

Tesla Cybertruck Risks Becoming the Ford Edsel of the EV Era

—Bloomberg on the piss poor sales numbers for Musk's folly.

Elon's Swasticar is not selling well

Ford Motor Co. introduced a car almost 70 years ago widely viewed as the greatest automotive flop of all time. Tesla Inc.’s Cybertruck may well be on its way to claiming that title.

Ford’s Edsel, unveiled in 1957, was pitched as an entirely new kind of car, with an oval-shaped front grille likened to a horse collar. The company predicted it would sell 200,000 units in the model’s first year on the market. Ford ended up selling less than one-third of that target, and the Edsel’s design became the butt of jokes.

Tesla started delivering its unusually angular Cybertruck in 2023. Chief Executive Officer Elon Musk called it the company’s best product ever and estimated the carmaker might build more than 250,000 annually, depending on demand. Tesla sold less than one-sixth of that number in its first year, and the truck’s blocky looks became a punchline.

Edsel sales dropped each year the model was on the market, and Ford discontinued the car in 1959. Cybertruck sales are off to an even worse start. Only 7,133 have been registered in the US this year through May, according to S&P Global Mobility data provided to Bloomberg News. That count is buoyed by Musk’s other companies, with SpaceX building out a fleet of Cybertrucks.

 Even with the self-dealing and fraud, the tiny penis truck is not selling well.

Fraudy McFraud Face is a Fraud

And by, "Fraudy McFraud Face," I mean Flock Group Inc.

It turns out that the eponymous private surveillance firm provides little evidence that it reduces crime.

Gee, It's all a corrupt fraud?  Who do they think that they are, the Trump Org?

Since the launch of Flock Safety in 2017, the ACLU estimates the company installed some 100,000 automatic license plate readers throughout the United States. The dragnet comes with plenty of downsides to privacy and civil liberties: it’s ripe for abuse by crooked cops, powered by sweatshop labor, and nearly impossible to escape once it designates you a target.

But police officials insist it’s worth the trade off — because at it least it helps them catch the bad guys, right? Unfortunately, the reality isn’t quite that peachy.

Atlanta, Georgia has experienced far and away the largest influx of ALRPs in the country, with over 5,000 various Flock cameras now blanketing the city. Yet as bombshell data released by the FBI shows, the city’s massive web of surveillance has had virtually zero impact on the Atlanta Police Department’s ability to solve crime, with some clearance rates for offenses like homicide even experiencing a decline over the past few years as the cameras have proliferated.

First reported by the Atlanta Community Press Collective, the FBI data is a damning refutation of Flock’s primary claim: that ALPRs are necessary to help officers keep the public safe.

According to the ACPC, the rates at which the APD resolves crimes like homicide, robbery, miscellaneous larceny, and shoplifting have actually decreased between 2021 and 2025, when the city’s ALPR build-out hit its full stride.

For homicide, the numbers are especially embarrassing, with the FBI reporting case closures at just 48 percent in 2025, down from 53.4 percent in 2021. Meanwhile, rape remained flat year over year, holding steady at a pitiful 37.7 percent closure rate from 2021 to 2025, and dipping down to just 21.2 percent at its lowest point in that four-year span.

(emphasis original)

This might explain why Flock shrouds its marketing in secrecy and non-disclosure agreements.

It also explains why so many public officials involved in approving the camera deals end up getting payoff of various sorts from the company. 

Common Sense in the UK

Given the large number of applications for power connections for data centers that are either never built or delayed, the Office of Gas and Electricity Markets (Ofgem) is proposing a substantial fee for grid connection requests from data centers.

Given that these requests result in significant costs which are largely borne by the rate-payers, this makes a lot of sense.

Ofgem is seeking feedback on proposals to levy a fee on datacenter development projects at the time they apply for a grid connection.

The move aims to discourage companies from seeking approval for speculative applications that clog up the pipeline and cause connection delays, without ever resulting in finished datacenters.

The UK regulator for electricity and gas says connection applications for electrical supply have surged from 41 gigawatts (GW) to 125 GW in under a year, with datacenters accounting for at least 80 GW of the new demand.

………

Ofgem is proposing a Datacenter Commitment Fee paid by the developers of large server farm projects when accepting a grid connection offer. The fee would be refunded once the facility is drawing power, or forfeited if the project exits the queue early instead.

That refund bit I do not approve of.  Data center power provisioning levies large external costs on the grid, and the AI grifters should be made to pay for that.

To Know It Is to Hate It

In profoundly unsurprising news, a poll is showing that as people learn more about LLM artificial intelligence, the more they hate it.

This is not a surprise.  Except for some very limited edge cases (The Odysseus Google Maps video), there is little real benefit shown, and little benefit promised, by the technology.

For a time, it appeared as if AI would find broad acceptance among the American masses.

The peanut gallery on social media happily embraced early image generation models as researchers appeared to make significant breakthroughs with the aid of their newfound tools. On paper, surveys found public attitudes toward the tech continued to improve into 2025 — before sharply reversing.

In 2026, America’s honeymoon phase with AI seems to be quickly wearing off. According to a joint poll conducted by Bentley University and Gallup, the percentage of US adults who think AI does “more harm than good” is rising, from 31 percent in 2025 to 39 percent this year, while a piddling 9 percent still think the tech does “more good than harm.”

As outlooks sour, the Bentley-Gallup poll found that Americans’ familiarity with AI continues to grow. In 2026, 70 percent of those polled said they’re “somewhat or extremely knowledgeable” about AI, up 6 percent compared to 2024. The implication probably gives OpenAI Sam Altman a migraine: the more people learn about AI, the less they seem to want it in their lives.

The American public is smarter than most of our oligarchs think. 

It just takes them a while to examine complex issues like this, because they have bills to pay and lives to live. 

Well, It's a Start

Capital One has announced that it has closed Trump Organization accounts due to patterns showing money laundering.

What?  You mean that a mobbed up real estate developer from New York City might be laundering money?

Pshaw! 

Capital One Financial hit back on Friday against a lawsuit over its ⁠decision to close the Trump ⁠Organization’s bank accounts ​years ago, stating that it did so after a review by anti-money-laundering experts.

The disclosure marks the first time a bank has formally tied money-laundering concerns to Donald Trump’s family business. Capital One is seeking to dismiss the case by casting doubt on claims of illegally debanking – or denying services on religious or political grounds – the Trump Organization.

………

Capital One has never accused the Trump Organization of money laundering. ​But Friday’s filing argues that “documents and Plaintiffs’ own ‌allegations make clear that Capital One closed ‌Plaintiffs’ accounts for anti-money laundering (‘AML’) reasons.

“The closures were the result of months of analysis and a careful review by ‌Capital One’s AML team in accordance with bank policies and regulatory guidance.”

Capital One gave notice of its plans to close more than 300 Trump-affiliated bank accounts in March 2021.

300 accounts?!?!!?  

Nope, no money laundering there.

………

“The transaction patterns identified by Capital One are among the types of activity flagged by federal banking guidance,” the filing said.

Gee, ya think?

DoJ F%$#s Up Again

Their felony charge against David Hearn for touching the Washington, DC Reflecting Pool has been dropped, because it is obvious that the failure of the pool renovation, algae blooms and the coating peeling off, was as a result of piss poor execution by the by the Trump aligned contractor selected for the job.

Federal prosecutors on Friday said that contractors hired by the Trump administration had botched the renovation of the Lincoln Memorial Reflecting Pool, leaving behind “widespread damage” in the pool’s new blue lining, and that the Interior Department had then falsely blamed that damage on vandals.

In an extraordinary motion filed Friday evening, the U.S. attorney in Washington, Jeanine Pirro, said she was seeking to dismiss a felony charge against David Hearn, a former Olympic canoeist who was accused of pulling up a piece of the pool’s lining two feet square.

In doing so, Ms. Pirro — a longtime ally of President Trump’s — directly contradicted the president’s repeated claim that the Reflecting Pool’s peeling liner was caused by people slashing its coating with knives. Instead, she said, “the damage was the result of a botched installation and not vandalism.” 

Imagine that? 

Stupid Democratic Party establishment (There is no Democratic Party establishment) Tricks

Amy Acton is the Democratic Party nominee for Governor in Ohio.

She is also an anti-LGBTQ bigot, having referred to trans girls as boys and making a ban on TG athletes central to her campaign. 

In an attempt at damage control, her campaign scheduled a meeting with LGBTQ advocates.

Sounds like a good move, only Acton did not attend the meeting and excluded trans people from the meeting.

She sounds like a perfect candidate for the consultants busy sucking the marrow out of the Democratic Party. 

Amy Acton, Ohio Democratic Candidate for Governor, has seen her relationship with the state’s LGBTQ+ community go from bad to catastrophic. Weeks after Acton endorsed a transgender sports ban and called transgender girls “boys,” the fallout has been intense: the Ohio Democratic Party forced its own Progressive and Pride caucuses to delete their criticism and a meeting the campaign promised would begin repairing the damage instead further inflamed tensions. Inside sources who have gone public now say the “listening session” was a debacle. Acton did not show up, her campaign manager barred Arienne Childrey—Vice Chair of the party’s Pride Caucus, a transgender candidate for the Ohio House, and Ohio’s first openly trans city council member—from even entering the Zoom call. When another advocate demanded to know why Childrey was barred, she was ejected. The Chair of the Progressive Caucus, Kim McCarthy, was locked in the waiting room during the entire “listening session.” And in the end, the campaign ultimately refused to apologize for calling trans girls “boys,” refused to retract Acton’s support for a transgender sports ban, and ended the meeting with no plans for what come next.

………

According to notes obtained from a source who attended the meeting, the session opened with a blow: Dwayne Steward of Equality Ohio, reading what appeared to be a prepared statement, announced the organization was rescinding Acton’s “A” rating on its LGBTQ+ candidate scorecard. “This is not about punishment, but partnership,” Steward said. “Harm has been done. Attacking trans people isn’t just wrong, it is a losing strategy.” From there, the meeting devolved. Multiple attendees demanded to know why Childrey had been barred from an event about the LGBTQ+ community. Campaign manager Philip Stein responded only that the meeting was “mostly a space we want to listen to the folks that we picked here.” When pressed on why the event had been titled a “conversation” rather than a one-way listening session, Stein conceded that running this kind of meeting was “not his area of expertise” and that he could “only apologize for the way that the event was titled.” 

………

The political math of Acton's position doesn't add up. Republicans aren't going to reward her for baseline levels of transphobia—Ramaswamy will run ads against her on any number of transgender issues regardless. What Acton’s anti-trans turn does is depress turnout among Ohio’s LGBTQ+ voters and allies in a race separated by less than a single percentage point. And the campaign's response to that reality has been, at every turn, to punish the people telling her so. The demand of LGBTQ+ Ohioans still stands unanswered. Until it is met, Acton has given Ohio's LGBTQ+ community every reason to believe she would govern exactly the way her campaign has conducted itself—with the people she claims to represent locked in the waiting room. 

To quote (not) Tallyrand, this is worse than a crime, it is a mistake. 

It's Thursday ¯\_(ツ)_/¯

It's Thursday, and so time for the weekly unemployment report.  We have initial claims rising slightly and continuing claims falling slightly, along with a side dish of increased inflation and higher gas prices.

The number of Americans applying for unemployment benefits rose last week but layoffs remain in the historically healthy range of the past few years.

U.S. filings for jobless aid in the week ending July 25 rose by 9,000 to 197,000, the Labor Department reported Thursday. The previous week’s figure was revised up by 1,000 to 188,000 but remains the lowest in more than 50 years.

………

Following a 6.6% rise a day earlier, the price for a barrel of U.S. crude fell slightly more than 1% Thursday to $83.36 a barrel. Gas prices in the U.S. are also back up above $4 a gallon on average. Besides squeezing consumers’ budgets, it also hits businesses hard, especially those which are heavily dependent on fuel.

Also Thursday, the Federal Reserve’s preferred inflation metric, PCE, came in at 3.7%, still well above its 2% target. On top of that, the government reported Thursday that the U.S. economy grew at an unexpectedly sluggish 1.5% pace in the April-June quarter.

………

The Labor Department’s report Thursday also showed that the four-week moving average of weekly jobless claims, which softens some of the weekly volatility, fell by 5,000 to 202,750.

The total number of Americans filing for unemployment benefits for the previous week ending July 18 was 1.78 million, a decline of 7,000 from the previous week.

Not a clue as to what the f%$# is going on here.

Headline of the Day

Study Shows Corporate Subsidies Only Create Jobs for Lobbyists

—Boondoggle on a study showing that massive subsidies to business generate jobs in only one industry.

Yeah, this is kind of a, "Well, duh!" moment.

The promise of corporate “economic development” subsidies is that they will create new jobs. Indeed, elected officials, government agencies, and the corporate executives that receive them all defend these public dollars flowing to private interests in the same way: As investments in local job creation and economic growth.

Research shows that this promise routinely isn’t kept. But a new study suggests that one industry does, in fact, see meaningful job creation from such subsidies: The lobbying industry.

Researchers Russell Sobel, Gary Wagner, and Peter Calcagno tracked data from more than 40,000 lobbying firms, covering all 50 states from 1997 to 2019. They examined what happened in a state before and after it handed out an “extraordinarily large” incentive — defined as a subsidy thousands of times bigger than that state had ever given before — and compared that to states that never awarded such an extraordinarily large incentive.

The study found that in the years after a state hands out its first extraordinarily large incentive, lobbyist employment in that state rises 3.6 percent on average. The effect is sharper in the state capital: In the five years following the incentive, lobbying firms in the capital county see employment gains of 4.5 percent relative to capital counties in comparison states. Additionally, lobbying’s share of the capital county’s private-sector workforce grew by 5.8 percent.

………

Separate research has found that firms that put more resources into the political process are more likely to land these incentives in the first place, suggesting the lobbying isn’t just a side effect of winning a deal, but a key part of obtaining it in the first place.

All of this sits on top of decades of research showing that these incentive programs generally fail to produce the job growth, income gains, or tax revenue they promise. Yet, that has not stopped states from handing out more of them: State governments now spend more than $40 billion a year on these incentives — three times what they spent in 1990.

Subsidies have always been a sucker bat.

This is Literally Beyond Parody

So, the paper run by the Amazon sociopath just published an OP/ED titled, "Will Maine uproot Susan Collins? I went to a potato festival to find out."

The rest of the article is even worse. 

That's the hed printed at the top.  The title you would see on a news search would be, "Susan Collins faces a populist test in Maine Senate race," which is what the title tag is set to.probably to avoid widespread mockery.

No link, they don't deserve even the meager traffic that my sh%$#y little blog would send them.

Yeah, the author is a MAGAt, and yes, the Washington Post OP/ED page has gotten even worse than the travesty it was under the mismanagement of the late (and unlamented) Fred Hiatt. 

Where Can I Rent the World's Smallest Violin?

Because it looks like Todd Blanch's nomination to be US Attorney General likely not going to make it through the Judiciary Committee.

You have two Republican Senators demanding a written promise not to use the, "Weaponization fund,"
 nor preemptively pardon Trump and his family for Tax fraud.

As one of them is John Cornyn, and he lost the primary to Ken Paxton in large part because Trump endorsed the latter, and so has nothing to lose, I rather think that the nomination is as dead as the parrot in Monty Python's sketch. 

The Senate committee weighing Todd Blanche’s bid to become the next attorney general postponed a key vote on his nomination Wednesday, amid a standoff between the Trump administration and two Republican senators who have threatened to withhold their support.

The postponement was a high-profile setback for President Donald Trump, and a further indication that congressional Republicans are becoming more willing to stand up to him on key matters. It also leaves the fate of Blanche’s nomination uncertain after Sen. Chuck Grassley (R-Iowa), chairman of the Senate Judiciary Committee, announced the vote’s deferral just hours before it was set to take place at a 9 a.m. Thursday hearing.

Sens. John Cornyn (R-Texas) and Sen. Thom Tillis (R-North Carolina) had insisted that the Trump administration limit — in writing — central provisions of a controversial deal struck this spring between the Justice Department and the president to resolve a lawsuit he filed against the IRS over the leak of his tax returns. DOJ was not able to provide the senators sufficient assurances to win their agreement to support Blanche.

The senators have said their votes for Blanche’s nomination hinge on their requested changes to the deal. A “no” vote from either one of them would be enough to sink Blanche’s nomination at the committee stage, given the expectation that all Judiciary Committee Democrats will oppose Blanche’s confirmation.

Hopefully, soon I will be able to say, "This nomination is no more, it has ceased to be." 

Fed Stands Pat

The Federal Reserve held its benchmark interest steady today, but in a sign of growing concerns about inflation three members of the Board of Governors voted to hike rates, which is the most public split on the board in about a decade.

Also, the bond vigilantes were unimpressed:

The Federal Reserve on Wednesday kept interest rates unchanged despite growing divisions among policymakers to more directly tackle inflation after five years of overshooting the central bank’s 2 percent target.

The Fed voted 9-3 to maintain rates at 3.5 to 3.75 percent, a level that has been in place since January. Beth M. Hammack of the Federal Reserve Bank of Cleveland, Neel Kashkari of the Minneapolis Fed and Lorie K. Logan of the Dallas Fed dissented, voting instead for a quarter-point increase.

The divisions underscore the tough spot the Fed and its chairman, Kevin M. Warsh find themselves in as they grapple with new sources of price pressures that are threatening to compound an already complicated and longstanding inflation problem.

………

As Mr. Warsh spoke, longer dated Treasury yields rose sharply, with the 30-year bond closing in on its May peak of 5.2 percent. That was the highest level since 2007. The rise in the 30-year Treasury yield suggests some worry about Mr. Warsh’s ability to tackle inflation in the long run.

Googly-Eyed Chud Loses

In what is extremely unsurprising news, Kash Patel defamation lawsuit against Jim Stewartson for the latter calling him a "Googly Eyed Chud" has been thrown out of court.

And yes, the judge who issued the ruling used the phrase in the footnotes.

A federal judge Tuesday tossed FBI Director Kash Patel’s $10 million lawsuit against a blogger who called him a “googly-eyed Kremlin bitch.”

In his final order, Nevada Chief District Judge Andrew Gordon dismissed Patel’s lawsuit against Jim Stewartson, finding that he did not have “personal jurisdiction” over the internet commentator.

………

In June 2023, Patel filed a complaint that Stewartson was smearing him online by calling him a “blatantly incompetent chud” and a “Kremlin asset” who plotted to “overthrow the government” on January 6, 2021.

Initially, Stewartson didn’t respond to the lawsuit, which led to Patel winning a $250,000 default judgment in August 2025. Stewartson challenged the default judgment on the grounds that he had no meaningful ties to Nevada, where the case was filed, and declared that Patel was a “googly-eyed Kremlin bitch” and, again, a “chud.”

Stewartson celebrated the final order, which referenced his comment in a footnote. “I’d like to commend the judge for including ‘googly-eyed Kremlin bitch’ in his ruling,” Stewartson wrote on X Tuesday.

 No sanctions against Patel or his legal team, which is a bit of a bummer though.

OK, There is Some Good AI Slop Out There

This is fan-f%$#ing-tastic.

This is wicked smaht!

History Rhyming

We are seeing the financial merry go ground slowing down.

First, we have banks starting to call in loans from hedge funds as a result of concerns about the possible collapse of the AI bubble.

Wall Street banks have demanded more collateral from hedge funds in recent weeks as a rout in AI stocks accelerates and triggers heavy losses across several popular strategies.

Banks asked funds whose holdings are heavily concentrated in certain industries to provide additional collateral to keep their existing levels of leverage, according to four people familiar with the matter.

The collateral demands highlight the mounting fears on Wall Street about the scale and speed of the sell-off in AI stocks over the past fortnight, which has upended a rally in a sector favoured by many funds.

……… 

Banks build in protections when lending to hedge funds to make sure they do not incur losses in case the market turns negative. 

Meanwhile, on a slightly more personal scale, we are seeing a spike in the level of margin debt on the New York Stock Exchange.

When people start buying stocks with borrowed money at rates not seen since the dot-com bubble, someone usually gets hurt. Deutsche Bank is now waving the yellow flag.

The bank’s credit strategists, led by Steve Caprio, published a warning on July 24 that US margin debt has crossed the $1 trillion mark as of June 2025. That’s not just a round number for headlines. As a share of GDP, margin debt has now surpassed levels seen during the late-1990s tech mania and is closing in on the 2021 all-time high. 

The numbers behind the warning

Here’s what caught Deutsche Bank’s attention: NYSE margin debt jumped 18.5% from April to June 2025. That two-month sprint ranks as the fifth-fastest increase since 1998, a period that includes some of the most memorable market blowups in modern history.

Finally, and I'm going to quote the hed, "The bond market hasn’t been this calm since the dot-com bust and the financial crisis. History warns of a rude awakening." 

The spreads between high and low quality debt is shrinking, which tends to happen before a crash.

For all the current economic and geopolitical turmoil, the U.S. bond market is remarkably sanguine about the risks of a U.S. economic recession, even after oil’s big price jump.

To appreciate the bond market’s seemingly unconcerned behavior, consider the high-yield bond spread, which represents the additional compensation bond investors demand for incurring the extra risk that high-yield (“junk”) bonds represent relative to U.S. Treasurys.

The junk spread rises along with the risk of recession, when issuers of high-yield bonds become less likely to be able to repay, and it falls when the risk of an economic downturn is lower.

At the end of June, when a barrel of Brent crude was selling for $73, the junk spread stood at 2.75 percentage points. Currently, with Brent crude near $100 per barrel, the spread stands at 2.68 points. While a 7-basis-point decline is not in itself particularly meaningful, it is highly significant in light of the increased likelihood of economic distress to which the higher oil price leads.

In addition, we shouldn’t forget that oil’s recent spike comes on top of a private-credit market that has already been struggling. In its recent report on the state of private markets in 2026, MSCI writes that this market is facing problems even deeper than previously known: “Among loans in private-credit funds, 15.7% have been marked below 80% of principal — a rough threshold for distress — and more than 10% are now marked below 50% — a level typically associated with deep distress or risk of restructuring.”

MSCI’s report reflected the state of private markets at the end of 2025’s third quarter, the latest period for which data were available. Since then, conditions in the private-credit market have deteriorated even more, but the junk spread has narrowed rather than widened — to 2.68 percentage points from 2.80. 

Moreover, as you can see from the chart above, the junk spread is now lower than at any time since immediately prior to the 2008 global financial crisis. The only other time since 1997 that the spread was lower than today came near the top of the dot-com bubble. We don’t need to be reminded what happened after that. 

We are in for interesting times. 

Bummer

A federal judge has stayed the Minnesota law banning predictions markets.

This is temporary, so Minnesoto might still prevail, but the injunction is disappointing.

The bookies Kalshi and Polymarket, along with the Trump DoJ claimed that these were swaps, not betting.

It's not a surprise that Trump is a big supporter of this sort of gambling.  He and his family are deep into the so-called "Prediction Markets",  Also, there is compelling evidence that members of his administration are using the markets to insider trade.

Corruption is as corruption does.

As I have noted for well over a decade, swaps are basically just betting, not insurance, which should have been banned via a legal framework dating back to the Marine Insurance Act of 1746, which prevented people from doing the equivalent of getting paid for burning down their neighbors house.

A federal judge on Monday blocked a Minnesota state law that would ban prediction markets days before it was set to go into effect, siding with a federal financial regulator and two companies that had sued to stop it.

In May, Minnesota became the first state to pass a law making it a felony for most prediction markets to locally operate and advertise. The Commodity Futures Trading Commission, a federal agency that oversees prediction markets, and the markets Kalshi and Polymarket sued, arguing that the platforms can be regulated only at the federal level.

On Monday, Judge Kate M. Menendez of the U.S. District Court for the District of Minnesota granted a preliminary injunction to halt the law from going into effect on Saturday, finding that the companies faced a threat of irreparable harm. The law will remain on hold until a final ruling is made in the case.

………

The agency has faced criticism for making what appear to be favorable decisions for prediction markets with ties to the Trump family. Donald Trump Jr. advises Kalshi and Polymarket, and he backs Polymarket financially.

President Trump has posted on Truth Social that the agency, not states, must have “exclusive authority” over prediction markets.

 

Some News You Can Use

Removing AI From Your Google Account.

This includes Gmail.

Just do it. 

Saying the Quiet Part Out Loud ……… Under Oath

In news that is surprising only because they admitted guilt, Trump and his Evil Minions™ have admitted that they cancelled grants because they came from states that did not vote for him.

Impeach Trump, Impeach Vance, jail the lot of them. 

When the Trump administration canceled more than $7.5 billion in Biden-era federal grants for clean energy projects in October, it framed the move as an urgent corrective to protect taxpayer funds from waste.

But it wasn’t true.

In little-noticed court documents, federal officials acknowledged this month that they had terminated the funding “based solely” on political criteria, targeting projects in states that were represented by Democrats and had voted for Kamala Harris, the party’s presidential nominee, in the 2024 election.

The admission showed how President Trump has weaponized the provision of federal education, energy, health, housing and infrastructure aid in his second term. Far from rooting out the sort of misspending that Mr. Trump sees as rife in Washington, the White House has instead sought to leverage the budget as a tool to assist its allies — or as a cudgel to hurt the president’s foes.

This is f%$#ed up and sh%$.

Wait, Wut?

New on the list of things we really don't need is a digital cassette tape simulator.

Because I guess some people's lives are so empty that they have to relive the era of using a pencil eraser to rewind tapes. (F%$#, I'm old)

If you have wistful longings for the days when your songs carried the subtle hiss of the cassettes you listened to, we have some reel good news. A new project takes modern music back to the analog era.

The project, available on GitHub, is called "Audio Cassette Simulation" and uses FFmpeg to transcode audio files to get that "wish I'd bought some decent tapes instead of the superstore's own-brand" sound.

The repository includes simulations of BASF LH Extra C90, Maxell UD C90, Sony CHF60 Type I Normal, Sony CHF90, TDK D90, and even Soviet MK-60 tape. Navigate to the appropriate cassette folder using bash, then run the conversion code (or use it to convert a live stream).

The output is dumped into a ./out folder for a bit of retro enjoyment.

According to the README, "This project simulates cassette tape audio profiles using ffmpeg.

"It applies tape noise, wow and flutter pitch modulation, bandwidth limits, and equalizer adjustments."

I know that I am lame, just ask my kids, but I take comfort in the fact that I am not THIS lame. 

Brazil Tells Trump to F%$# Off

There has been no small amount of tension between Brazil's Lula da Silva and Trump, but I never imagined that Brazil would simply refuse entry to US officials.

In this case, said officials were sent to create a false narrative about the upcoming Brazilian elections, so the denial is justified, but still this is unprecedented, at least as directed toward the US.

Brazil has denied visas to two senior State Department officials whom the Trump administration planned to dispatch on a mission to cast doubt on the fairness and integrity of the country’s electoral system before millions of Brazilians vote in a presidential election on Oct. 4, the Foreign Ministry said Saturday.

A U.S. State Department delegation, including Trump political appointees Riley M. Barnes, an assistant secretary, and Samuel Samson, a deputy assistant secretary, had planned to depart for Brasília, the capital, in coming days, according to a senior State Department official and three Brazilian officials, who spoke on the condition of anonymity to discuss sensitive diplomacy.

But Brazilian officials, apprised of the plans, denied the Americans permission to travel, the Foreign Ministry said. The U.S. officials applied for visas through the Brazilian consulate in Washington, saying they planned to hold “meetings with authorities involved in the electoral process,” Brazilian officials said.

………

Two senior Brazilian officials told The Washington Post on Thursday that they had recently learned of what they described as the American “ploy” and had vowed to block the U.S. officials from entering the country.

“It is a ploy that is completely incompatible with Brazilian democracy,” said one of the officials, who spoke on the condition of anonymity because he was not authorized to speak to the media. This official said the Brazilian government would move to “protect our voting system.”

The Brazilian officials said they suspected that the Americans’ goal was to meet with electoral skeptics and produce a report that could be used to delegitimize the nation’s electronic voting system. Samson in the past has produced department reports that critics say brought a partisan lens to human rights issues.

Trump was attempting a ret-f%$#ing, and Brazil was having none of this.

Clever

Alcorn State University professor Jason Gibson was concerned about students cheating on take-home exams by using ChatGPT.

His solution was elegant. He embedded a prompt about Madagascar in a white font in his midterm exam.

Given that the midterm exam was about the industrial revolution, responses invoking the African island would be a clear sign of major shenanigans.

Who could’ve guessed that students who use AI to cheat on their assignments are incredibly lazy?

Jason Gibson, a history professor at Alcorn State University in Mississippi, says that he used white font to hide a prompt telling an AI model to spew nonsense in the instructions for his mid-term.

Unfortunately, it ended up working a little too well.

“Thirty-two of my 35 students between two classes failed a portion of their midterm because they all used AI to generate their entire response,” he explained in a viral TikTok, sounding incredulous. “And apparently they didn’t proofread it.”

The hidden prompt told the AI to sneak in random digressions about Madagascar. The midterm, by the way, was about the Industrial Revolution. And apparently none of the indolent cheats put in the bare modicum of effort required to at least check if what the AI wrote made any sense at all. All they did was copy-paste the midterm instructions into a chatbot, then copy-paste the chatbot’s spiel back into the answer window.

32 of 35?  That's a 94% cheat rate.

Jackson in Maine

I do not know the specifics of his platform in detail, but the selection of Troy Jackson as the new Democratic Party nominee for US Senate appears to be a continuation of the Platner narrative.

I'm not sure how this all will shake out. 

Maine Democrats chose Troy Jackson, a progressive former state legislator, to replace Graham Platner as their Senate candidate at a convention on Saturday that followed weeks of internal turmoil in a key battleground state.

Mr. Jackson’s victory, a vote of 566 to 5, came on the first ballot of a pop-up state convention the Maine Democratic Party organized in the 17 days since Mr. Platner, who faced a rape accusation he denies, dropped out of the race.

………

Mr. Jackson, 58, carries much of the progressive politics that powered the movement that lifted Mr. Platner from political obscurity. A former logger who entered politics in the late 1990s organizing against Canadian workers crossing the border to work for lower wages than Americans, Mr. Jackson now faces perhaps the biggest challenge of his political career.

He is up against Ms. Collins, a moderate Republican seeking a sixth term in office. The race, seen as a central battleground in the fight for control of the Senate, features two longtime politicians who grew up in the same county in northern Maine.

Trust the New York Times to bury the lede, because in the very last paragraph, after extensive coverage of Collins talking points, they note this: 

………

Mr. Jackson said in that interview that he would not support Senator Chuck Schumer of New York, the minority leader, to remain in his post. Mr. Jackson also expressed reservations about receiving financial or other assistance from Mr. Schumer, whose allies oversee the super PAC devoted to electing Senate Democrats.

Running against Chuck Schumer is a winner.  

If he beats Collins, I hope that he sticks to this promise.

From a purely pragmatic perspective, disrupting things in the Senate would make Jackson's tenure in the Senate much more difficult. 

From the Department of, "But I Repeat Myself"

That is what I thought when I saw the headline, "Man Accused of Horrific Crimes Caught Hiding as Pharma Executive."

Rapist turned pharma executive?  How can you tell?

For over two decades, a notorious fugitive accused of horrible crimes in Rhode Island hid out in one of the places you’d most expect — the corner office of a Big Pharma company.

Reported by Stat News, a 70-year old chief medical officer at the California-based firm Immix Biopharma was found to be afugitive sex predator who disappeared during his 2005 trial. Though he went by Richard Graydon in the more than twenty years since, his real name turns out to be Ronald Fischer — an anesthesiologist accused of raping numerous women on his various yachts (yes, plural).

At least there is symmetry. 

He Hates it Because it Works

Paul Krugman (Yeah, I know) has a very interesting look at the Trump administration's hostility toward the Brazilian digital payments system PIX.

It's cheaper, more reliable, and more secure than anything that US payment providers offer, and so the White House is threatening sanctions.

Brazil introduced Pix, a digital payment system, almost 6 years ago. The system — which allows people to make payments on their phones, not very differently from Apple Pay or Google Pay, except that Pix payments are official currency rather than transfers from private companies — has been highly successful. The vast majority of Brazilians use it regularly, and by all accounts Pix — which is free for individuals, and cheap for businesses — is hugely popular.

On Wednesday — as it happens, on the first anniversary of an article I posted praising Pix and suggesting that it may represent the future of money — the Trump administration will try to punish Brazil for this success. It will do so by imposing tariffs on Brazilian exports under Section 301 of the 1974 Trade Act, which permits such tariffs to counter “unfair trade practices.”

………

Trump’s hostility towards Brazil’s Pix system is also an illustration of the same phenomenon we see in his energy policy: this administration is hostile to progress whenever that progress works against the interests and ideology of the oligarchs who have poured money into Trump’s campaigns and his pockets.

Krugman is wrong here when he characterizes this behavior as being unique to the Trump administration though, the Biden USTR was expressing "concerns" about PIX in 2022. (PDF).

This knee jerk support of predatory US financial institutions is something that widely supported by the US Polity, whether conservative or liberal.

 

This Applies to the US as Well

One possible reason for the EU underperforming is that the European Union and its member nations have structured their economies and societies to favor rent seeking over productive activity.

In addition to increasing inequality, rent seeking uses the power of the state to favor the already wealthy, it also crowds out productive activity, because the former is more lucrative.

To be fair, there is also the energy increases resulting from the cut off of cheap Russian natural gas as well.

Why is Europe falling behind in investment and growth compared with the US, let alone China and India?  In a new report, Labour Squeezed, Investment Stalled – the renowned economist Mariana Mazzucato and a team at the UCL Institute for Innovation and Public Purpose, financed by the European Trade Union Federation (SETU), reckon that the EU’s declining competitiveness is not the result of too much regulation or the lack of cheap credit as mainstream economists and Mario Draghi is his report for the EU Commission argued. 

Instead it is due to “falling investment and productivity caused by the hoarding of profits and higher payments to shareholders and CEOs rather than reinvested in production, innovation and good jobs”. The decline is the result of an emergence of a “capitalism of rent” in Europe, where income is increasingly captured not by producing anything, but by owning assets, financial positions and market power, and charging for access to them. Mazzucato concludes that Europe must switch from “an economy based on value extraction to one based on value creation”.

Mazzucato and and the IIPP show that headline profits have stayed healthy even as profitability in production have declined since 2000.  They claim that’s because profits have been captured through ‘financialisation’ ie non-financial corporations are increasingly make more money through financial investment rather than in production. In study of over 300 EU corporations, they find that around one in six firms surveyed now draw more than 10 percent of earnings from financial rather than productive activity. 

I think that the framing in the last paragraph is particularly important.

Stating that financial activity is not a productive activity is true, even if financial activity can aid in productive activity by allocating capital to business that need it.

Finance, as well as IP driven activity are profitable because they are fundamentally parasitic in nature when taken to extremes. 

It's why they are so hard to fight, they have excess profits that can be redirected to bribery in various forms to support their businesses. 

We're #1!!!

As The Register notes in an an article titles, "Google breaks Alibaba’s record for Europe’s largest DMA fine." Google has beaten the Chinese at something.

Alibaba’s reign as the worst offender under the European Union’s Digital Markets Act (DMA) lasted just four days, after the European Commission yesterday fined Google €890 million for breaches of the law –€340 million more than the Chinese e-commerce company will pay.

Europe even fined Google twice – once for treating its own services more favorably in search rankings and the second time for failing to properly inform users of its “Play” app store.

The search infractions attracted a fine of €460 million ($523.5m/£393m) and the Play offenses will cost the Chocolate Factory €430 million ($490m/£367.5m).

In US dollars, the fines total $1.013 billion – or one quarter of one percent of the $402 billion in revenue that Google’s parent company Alphabet won in its last full financial year. The Big G’s net income was $132 billion in the same year, making these fines less than one percent of its profits.

It's literally just a cost of doing business to them, so I expect them to repeat this. 

I Am So Going to See This

I know that I will probably be disappointed, because there is no way that this movie will meet my expectations.

I don't care.

I must see Coyote vs. Acme. 

Will This Get Me Banned from Ecch (Twitter)?

When I want the opinion of a drug addled bigot, I will beat it out of you, thank you very much.

— Not the Apartheid Emerald Heir Pedo Guy/MG Saroff (@40_Years) July 26, 2026

Original Ecch (Tweet)


Screenshot backup

I have made the decision that I will stay on Ecch (Twitter) until the motherf%$#ers ban me, because I'm childish and immature.

I guess that the question is if I am being childish and immature enough.

We shall see in the next 24 hours.