New BP jingle

A young heron sits dying amidst oil splattering underneath mangrove on an island impacted by oil from the Deepwater Horizon oil spill in Barataria Bay, along the the coast of Louisiana on Sunday, May 23, 2010. (AP Photo/Gerald Herbert)

Our own Chernobyl?

Dimtry Orlov, one of my favorite writers about the possible collapse of world economies (and especially the US economy) offers an interesting take on BP spill. Using his vantage point as a former citizen of the USSR, he notes the similarities between Chernobyl and the Deepwater Horizon.

Working with an outdated mental map is a big problem for anyone; for a leader, it may very well spell the end of the position of leadership. After the catastrophe at Chernobyl, the Soviet leaders attempted to operate, for as long as possible, with a mental map that included a relatively intact and generally serviceable nuclear reactor called “Chernobyl Energy Block No. 4″. “The reactor has been shut down and is being cooled,” went the official pronouncements from the Kremlin, “we are pumping in water to cool it.” After a while it became known that there is no reactor—just a smoldering, molten hole spewing radioactive smoke—and the coolant water, prodigious quantities of which were indeed pumped in and spilled in its general vicinity. It instantly boiled away into radioactive steam (which drifted downwind and eventually rained out, poisoning even more of the land). The rest of it leaked out, forming radioactive settling ponds and threatening to further leak into and poison the river that flows through Kiev. As you might imagine, that little episode turned out to be just a little bit embarrassing. Anyone who could think started to think: “Following these leaders is not conducive to survival. Let’s make our own plans.” Gorbachev went on with his usual long-winded blah-blahs, but the milk-milk-lemonade routine would have served him just as well.

More recently, we have been exposed to the spectacle of corporate leaders and public officials attempting to operate, for as long as possible, with a mental map that includes a blown-out but otherwise serviceable deep-water oil well in the Gulf of Mexico variously called “Deepwater Horizon” or “Macondo” or “MC252″. A number of unsuccessful attempts have been made to capture the oil and gas that have been escaping from it using at least three different techniques. BP—the well’s owner—is an oil company, and so their first reaction was to get and sell that oil no matter what. They tried to fit the well with a “top hat” to get all of the oil, but when their contraption didn’t work because it got clogged by methane hydrate crystals they stuck a smaller pipe into the leak, just to get and sell some of the oil, and when that worked it made them happy. But, coming under pressure to do something about all the oil leaking out and poisoning the environment, they finally decided to try shutting down the well by squiring various substances into it. The procedures they’ve tried, going by idiotic Top Gun names like “junk shot” and “top kill”—have all been to no avail. At some point it becomes clear that there is no oil well—just a large, untidy hole in the sea bottom with hydrocarbons spewing out of it, forming huge surface slicks and underwater plumes of oil that kill all they encounter and eventually wash up on land to continue the damage there, turning the Gulf Coast into a disaster area.

Chutzpah quote of the day

Israel is a sovereign state and cannot accept the undermining of its sovereignty. Israel has stopped ships in international waters before and when ships refuse to accede to warnings and obey instructions, we have the right to board them under international law.

– Israel’s Foreign Minister Avigdor Lieberman, defending the Israeli attack on humanitarian aid ships in international waters, resulting in the death of up to 20 9 aid workers.

Israel claims that their soldiers were defending themselves when they came under attack. Essentially, they are claiming self-defense. However, it is not self-defense when one breaks into the facility of another and then is attacked by the occupants. What are civilians supposed to do when boarded by one of the most effective militaries in the world. Who, as between the military and the civilians on their own craft in international waters, is engaging in self-defense? The poor defenseless commandos were brutalized by activists? And were entitled then to use deadly force?

How is a violent military attack on unarmed ships carrying humanitarian aid to Palestinians in Gaza in any way more defensible than an attack by the North Koreans on a South Korean military ship?  The position of the United States in clear in regard to sinking of a South Korean war ship by the North; we condemn it.

When will we flatly reject and unconditionally condemn a deadly attack on helpless civilian ships in international waters by Israel? How long will we remain Israel’s closest ally? When does this country wake up and realize that our support of Israel is both undeserved and unappreciated by Israel and counter to our own long term interest in the Muslim world.

2 Million

That’s right. Apple has just announced that they have now sold 2 million iPads. That is 2 million in just 59 days, or about 34,000 per day.  At an assumed average selling price of $650, that amounts to $1,300,000,000 in revenue.

Booming 101

The ongoing environmental disaster in the Gulf should trigger our curiosity about methods for mitigating the damage of the oil spill. To partially quench your thirst for information, you can’t do better than a posting by Fishgrease on (of all places) The Daily Kos.  Using salty language that may offend some and claiming first-hand experience in the oil industry, Fishgrease gives us the inside scoop on what works and doesn’t work in terms of booming spills. The detail he presents seems to indicate deep knowledge of the subject. Take a look and read the entire piece to learn more. It is this single best explanation of what is NOT being done by both BP and the Obama administration to minimize the damage.

A small excerpt:

Fucking Nomenclature

Since this is your first day of DKos Booming school, you HAVE to fight lets go over some important definitions and oilfield grammar. Rope is not rope. It is fucking rope. All of it. Every yard of rope is fucking rope. Every section of boom is fucking boom. An anchor block is not an anchor block. It is a fucking anchor block. You get the idea. Later, when you’re accustomed to all of this, you can substitute “goddamed”, “motherfucking”, “piece-of-shit-c*nt” (never understood that one myself) or “cocksucking” for fucking. But for now, it’s all fucking.

Fucking Boom

Generally, boom is long and bright bright orange or yellow. It is not bright bright orange or yellow so you can see it, dear fledgling boomer, but so Governors, Senators, Presidents and The Media can see it. It has a round floaty part that floats, and a flat “skirt” that sinks. A RULE: the floaty part never floats high enough and the skirt never rides low enough. Some oil will ALWAYS go over the boom and some will ALWAYS go under it. Our task is to MINIMIZE both! We do that by fucking proper fucking booming.

Ballmer and Microsoft

Microsoft, under Steve Ballmer’s leadership, has stagnated.  That is, its profits (while huge) have not increased. Further, it has failed to effectively create new products beyond its long-standing Office, Windows, SQL franchises. As a result, despite its profits, Microsoft stock has languished for a decade under Balmer.

Jean-Louise Gassée has penned a detailed essay that, in effect, postulates that Steve Ballmer has failed as CEO. It is a pretty damning piece, and well worth a full read.

January 2000 was when Steve Ballmer was made CEO of Microsoft. Yes, we can discount the year 2000, that’s when the Internet Bubble burst causing most high-tech shares to collapse. Still, since the end of 2000, Microsoft stock has stagnated, hovering between $25 and $30.

This never appeared to faze Ballmer. While we joke about the Steve Jobs Reality Distortion Field, Microsoft shareholders ought to worry about Steve Ballmer’s own distortion, and about the self-inflicted effects of such a strong field.

We all remember Vista, it was a godsend for Apple. Did Ballmer acknowledge that there were problems? What about the Xbox 360 reliability nightmare? The apologies were left to underlings. Then Google comes out of nowhere to take 65% of the Search market, leaving Microsoft with an Apple-like market share (I’m referring to Macs, not iPods). In MP3 players, Microsoft failed again and again in its attempts to unseat the dominant (65% market share) iPod/iTunes combo. Social networks? A tiny investment (1.6%) in Facebook. And where is Microsoft in the Microblogging world, a.k.a Twitter? Nowhere, the old Microsoft Messenger is fading away.


Not the time to impose pain

Paul Krugman has a great op-ed piece in today’s New York Times. He notes the the conventional wisdom in economics circles is that the time has come to slash budget deficits in order to staunch anticipated inflation. The problem with this approach is that we have only started a recovery from the worst economic disaster since the Great Depression. The world economy is not yet strong enough to bear anti-growth cost-cutting.

When the financial crisis first struck, most of the world’s policy makers responded appropriately, cutting interest rates and allowing deficits to rise. And by doing the right thing, by applying the lessons learned from the 1930s, they managed to limit the damage: It was terrible, but it wasn’t a second Great Depression.

Now, however, demands that governments switch from supporting their economies to punishing them have been proliferating in op-eds, speeches and reports from international organizations. Indeed, the idea that what depressed economies really need is even more suffering seems to be the new conventional wisdom, which John Kenneth Galbraith famously defined as “the ideas which are esteemed at any time for their acceptability.”

The real risk right now, as reported in another article in today’s Times, is a risk of deflation.

If the European Central Bank has one monetary dragon it considers essential to slay, it is inflation.

Keeping inflation under control is the central bank’s primary legal responsibility, and as Europe struggles to overcome economic problems caused by the sovereign debt crisis, inflation has remained the bank’s primary focus.

But some economists say it has become a driving obsession that has blinded the bank to a potentially bigger threat to Europe: deflation.

The central bank’s doubters grew louder after it made a big show of taking measures to cancel out the supposed inflationary impact of the government bond purchases it began on May 10 to help keep Greece and several other euro zone countries from defaulting on their debts.

Many economists regard deflation as more dangerous than inflation, because it prompts consumers to delay purchases as they wait for lower prices, creating a downward spiral of lower demand and production. Deflation is also bad for debtors like Greece, because they may have to pay back money that would be worth more than it was when they borrowed it.

Unavoidable reality

The CEO of BP originally said that the oil spill in the Gulf was a modest problem.  What does he finally call it today? An “environmental catastrophe.”

Really? Ya think?

A young heron sits dying amidst oil splattering underneath mangrove on an island impacted by oil from the Deepwater Horizon oil spill in Barataria Bay, along the the coast of Louisiana on Sunday, May 23, 2010. (AP Photo/Gerald Herbert)

Oh, and check out this Twitter account: @BPGlobalPR.  It is a parody account, but it nonetheless sounds like it could be written by the tone-deaf flacks working for BP.

Political quote of the day

A “teacher” told my child in class that dolphins were mammals and not fish! And the same thing about whales! We need TRADITIONAL VALUES in all areas of education. If it swims in the water, it is a FISH. Period! End of Story.

–Comment submitted to the site America Speaking Out, operated by the GOP to solicit input from its voters, as reported in The Washington Post.