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Minority Report: Ukraine as Bugbear

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[NB: Note the byline; I began writing this as one of my Minority Report pieces; it’s been in my Work In Progress folder for nearly two years, and an unfinished draft here at emptywheel for 18 months. I left off work on it well before the final Special Counsel’s Report was published. This post’s content has become more relevant even if it’s not entirely complete, needing more meat in some areas, and now requiring the last two-plus years of fossil fuel-related developments and events related to the U.S.-Ukraine-Russia triangle after the 2016 U.S. general election. /~Rayne]

This post looks at the possibility that the hacking of U.S. election system and events affecting the election’s outcome are part of a much larger picture — one in which NATO figures large, and the future of energy figures even larger.

One could attribute Russian attempts at hacking and influencing the 2016 general election to retaliation for the CIA’s involvement in Ukraine, or to a personal vendetta against former Secretary of State Hillary Clinton with regard to Ukraine ahead of the Maidan revolt, or to rousing anti-Putin sentiment in Russia:

… Five years ago, he blamed Secretary of State Hillary Clinton for the anti-Kremlin protests in Moscow’s Bolotnaya Square. “She set the tone for some of our actors in the country and gave the signal,” Putin said. “They heard this and, with the support of the U.S. State Department, began active work.” (No evidence was provided for the accusation.) …

But after looking at the mission and history of NATO, the integral role of natural gas to Europe’s industry and continuity, Ukraine’s role as a conduit for Russian gas to European states, one might come to a very different conclusion.

Especially given the death of Alexander Litvinenko on UK soil by radioactive poisoning and the downing of Malaysian Air flight 17, a passenger plane carrying passengers who lived across several NATO countries.

Has the U.S. been asked to provide protection to European NATO members’ supply of fossil fuels transiting Ukraine? Has the U.S. been asked during the last two administrations to push back on Russia because of incursions related to energy?

What makes Ukraine so different from Belarus, Georgia, Lithuania, and Moldova, which also have pipelines carrying Russian gas and experienced price disputes — is it the percentage of energy supplied to EU states crossing Ukraine in comparison? Of these four countries, only Lithuania is a NATO member.

How does tiny Montenegro, the newest NATO member state, fit into this picture?

NATO

In 1949, twelve North American and European countries signed a treaty creating an intergovernmental military alliance, the North Atlantic Treaty Organization (NATO). They pledged a collective system of mutual defense against external forces attacking any one or all of its member states. The alliance has grown over the years to 29 nation-states with Bosnia and Herzegovina, Georgia, North Macedonia and Ukraine having expressed interest in joining. Each member state commits to spending at least 2% of its GDP on defense spending to support the organization’s mission.

It’s critical to note NATO members agreed under the treaty’s Article V that an ‘armed’ attack against any member in North America or Europe would be considered an attack against all of them. Response to an attack upon a NATO member does not require armed or military force. Over time, threats to NATO states were not limited to armed attacks; they were economic in the case of fuel pipeline shutdowns.

In the digital age, what is an armed attack, especially if both sides call it “cyber warfare” or “information warfare”?

FOSSIL FUELS

Like the U.S., Europe has been entirely too reliant on fossil fuels. It has been far too lax in governance when it comes to resulting pollution let alone political and economic volatility related to fossil fuel use. Volkswagen’s Dieselgate scandal and the EU’s slow response to VW’s fraud and resulting air pollution offer a perfect example.

While Europe has made substantive headway to reduce fossil fuels and replace them with alternatives — Germany, for example, drew 30% of its energy from non-fossil fuel alternatives in 2014 — until the EU has completely eliminated fossil fuels including natural gas it will be vulnerable to pressure by Russia and other fossil fuel-rich countries. It has been too easy for Russia to threaten the EU and Ukraine alike by simply throttling the flow of natural gas through Ukraine’s major pipelines originating in Russia.

But this is not the only front; the “long war” (pdf) across the middle east and northern Africa is also driven by competition for fossil fuels. So, too, is much of the instability in South and central America, and increasingly in North America as the population rejects fracking, shale extraction, and related pipeline installation.

There is only one true solution to socio-economic volatility caused by fossil fuels: development and implementation of alternative energy resources which are not reliant on extraction, nor limited tightly by resource location (ex: cobalt (from DRC), lithium (South America), uranium (Australia, Canada, others)). The amount we have spent on warfare to preserve fossil fuel’s status quo would have paid for this many times over, and we might have had better education and health care along with it. NATO’s EU states could not be threatened by the loss of natural gas from Russia if it could rely entirely on renewable alternatives produced inside the EU.

Magnitsky Act and retaliation

One other key question arises from this timeline. In addition to all the other tension and conflicts between the U.S. and its NATO allies and Russia, note the passage of  the U.S. Magnitsky Act  of 2012 and the Russians’ corresponding retaliatory sanction which stopped all further adoptions of Russian children by U.S. parents. If the adoption issue is itself a retaliatory sanction and reversing or changing this Russian sanction requires changing or lifting the U.S. Magnitsky Act, didn’t Donnie Jr.’s June 9 talk during the campaign season with Natalia Veselnitskaya about resuming adoptions under a Trump presidency mean Donnie Jr. conspired or negotiated with a foreign government in a dispute with the U.S. — a violation of the Logan Act? Wasn’t the issue of adoptions merely cover — a coded alternative term — for negotiating Magnitsky Act and other Russian sanctions prior to the election?

Timeline: NATO and Ukraine

1949 — North Atlantic Treaty signed.

1982-1984 — Urengoy-Uzhgorod-Germany pipeline constructed; it provides transcontinental transport of gas from Western Siberia to Western Europe. The Reagan administration did not support this pipeline, preventing U.S. companies from selling construction materials to the Soviets partly in protest against the Soviets’ policies toward Poland and partly due to the perceive imbalance of trade the pipeline would create in Europe’s energy market. European countries did not respect the U.S.’ boycott of the pipeline, resulting in sanctions against some European companies.

15-DEC-1983 — A fire broke out at a compressor station in Urengoy, USSR in western Siberia. Construction of the pipeline was still underway. (Cause of the fire not clear from available resources.)

1985 — Vladimir Putin was stationed by KGB to Dresden — located north of the western end of the Uzhgorod-Waidhaus pipeline — after Urengoy-Uzhgorod-Germany pipeline began operation.

19-NOV-1990 — Treaty on Conventional Armed Forces in Europe was signed, setting limits of weaponry between North Atlantic Treaty Organization (NATO) and the Warsaw Pact states.

26-DEC-1991 —  USSR was dissolved; the Commonwealth of Independent States (CIS) formed in its wake from some of the former Soviet Union’s members. The  Baltic states of Estonia, Latvia and Lithuania elected not to join CIS.

1992-1994 — Russia suspended natural gas to Ukraine for non-payment several times over the course of two years.

XX-SEP-1993 — (into November 1994) Ukrainian companies diverted natural gas from pipelines several times. The reasons for the diversions are not clear; was gas diverted in lieu of transit tariffs, topping off reserves, or due to local shortages?

XX-SEP-1993 — Russia’s Boris Yeltsin offered a deal to Ukraine’s Leonid Kravchuck: Ukrainian debts would be forgiven in exchange for control of the Black Sea Fleet and Ukraine’s nuclear arsenal. The deal is scrapped after negative feedback from Ukrainian politicians. (pdf, pg 19)

XX-MAR-1994 — Tentative agreement made that Russia could acquire a 51% state in the Ukraine pipeline system.

1995 — Early in the year, Russia and Ukraine agreed to form a joint venture, Gaztransit, which would operate pipeline system in exchange for write down of Ukraine debt to Russia.

XX-NOV-1995 — Ukraine’s parliament banned privatization of oil and gas assets. The agreement for Gaztransit was never implemented nor was debt forgiven.

1997 — Hungary, the Czech Republic, and Poland were invited to join NATO.

1998 — A new contract between Gazprom and Naftohaz was written linking gas prices and transit tariffs but did not resolve pre-existing gas debts. Later the same year, Gazprom claimed Ukraine diverted gas and owed USD$2.8 billion, suspending oil and gas exports to Ukraine for 1999.

1999 — Hungary, the Czech Republic, and Poland became NATO members (pdf).

2000 — Ukraine’s Deputy Prime Minister Oleh Dubyna acknowledged that 7-8 billion cubic meters of Russian natural gas were diverted from pipelines before export that year. (pdf, pg 22)

04-OCT-2001 — 2001 Transit Agreement signed, settling the debt between Ukraine and Russia. (pdf, pg 22)

2002 — Estonia, Latvia, Lithuania, Slovenia, Slovakia, Bulgaria, and Romania were invited to join NATO.

2004 — (April?) Estonia, Latvia, Lithuania, Slovenia, Slovakia, Bulgaria, and Romania became members.

XX-JUL-2004 — Ukraine’s debt of USD$1.25 billion for gas was settled with Gazprom and NAK Naftogaz. Ukraine may have been importing more gas from Turkmenistan.

22-NOV-2004 — Orange Revolution began.

23-JAN-2005 — Orange Revolution ended; Ukraine was one of three Commonwealth of Independent States to experience a “color revolution” between 2003-2005.

24-JAN-2005 – Yulia Tymoshenko takes office as Ukraine’s 10th prime minister; she is a proponent of Ukraine joining the EU and NATO.

08-SEP-2005 – President Viktor Yushchenko fires Tymoshenko and her government; observers believe this is political trumpery targeting Tymoshenko.

01-NOV-2006 — Former FSB officer Alexander Litvinenko was poisoned with radioactive PO-210 and died a few weeks later on 23-NOV. Litvinenko met former KGB members Andrei Lugovoy and Dmitry Kovtun at the Millennium Hotel in London’s Grosvenor Square where it is believed he drank tea containing the poison. Multiple byzantine theories about Litvinenko’s death arose.

28/29-NOV-2006 — Energy security was a key topic at NATO’s Riga, Latvia summit. Efforts aimed at a bilateral discussion with Vladimir Putin on the topic of energy security during this summit fell through. From RFERL on the joint summit declaration:

The Riga summit declaration breaks new ground with a reference to energy, saying the alliance recognizes its security can be affected “by the disruption of the flow of vital resources.” NATO undertakes to study the risks and identify areas where it could “add value” to its members’ relevant security interests.

07-MAY-2007 — Urengoy-Uzhgorod-Germany pipeline exploded near Boyarka in central Ukraine, just west of Kyiv/Kiev. Gazprom said the 30-meter break in pipe would not cause a disruption in gas delivery.

22-MAY-2007 — UK determined Andrei Lugovoy should be charged and tried for Litvinenko’s murder, then asked Russia to extradite Lugovoy in relation to Litvinenko’s death.

05-JUL-2007 — Russia refused to extradite Lugovoy due to the terms of its constitution. This perceived lack of cooperation may have discouraged relations between UK and Russia.

02-OCT-2007 — ‘Gazprom may cut gas to Ukraine‘ due to debt of USD$1.3B

08-OCT-2007 — ‘Ukraine settles Russian gas row‘

18-DEC-2007 — Yulia Tymoshenko takes office as Ukraine’s 13th prime minister.

05-JAN-2008 — ‘Gazprom threatens Ukraine gas cut‘; Gazprom said it would throttle gas on 11-JAN if USD$1.5B still not paid.

12-FEB-2008 — ‘Russian, Ukraine gas deal averts crisis’ reported after Putin and Yuschenko announce an agreement in which Ukraine would pay for Nov-Dec 2007 gas and USD$179.5/1000cm would be maintained through 2008. They also announced the formation of new energy intermediary companies as a JV between Gazprom and Ukraine’s Naftohaz.

04-APR-2008 — Accession of Croatia and Albania addressed at Bucharest summit in April. NATO pledges Georgia and Ukraine will someday become members but are not invited to this summit. Czech Republic agrees to the installation of a U.S. missile defense radar tracking system. Installation of 10 interceptor missiles in Poland remains in negotiation.

18-AUG-2008 — Georgia exited the Commonwealth of Independent States as a result of the five-day Russo-Georgian War in early August.

XX-APR-2009 — Croatia and Albania become NATO members.

27-JUN-2010 — Illegals Program spy ring broken with arrest of 10 Russian spies including Anna Chapman.

09-JUL-2010 — All 10 Illegals Program spies arrested in US were swapped in Vienna for four Russian nationals. Two other spies had left the US before they could be arrested.

XX-OCT-2011 — Litvinenko’s widow Marina won the right to an coroner’s inquest in London; the inquest is delayed repeatedly. She insisted her deceased husband had worked with UK’s MI6 after fleeing to the UK in 2000.

24-FEB-2012 — ‘Russia threatens Ukraine over gas‘ after a shortfall of gas to EU through Ukraine during a severe cold snap. It’s not clear what caused the shortfall; Russia may try to run around Ukraine by way of the South Stream pipeline to avoid future disruptions blamed on Ukraine’s state oil and gas company, Naftogaz Ukrainy. The conflict could be a head fake to mask Gasprom’s inability to respond to rapid short-term uptick in gas demand in Europe.

19-JUL-2012 — Magnitsky Act was introduced in  the House.

14-DEC-2012 — President Obama signed the Magnitsky Act into law.

XX-MAY-2013 — (into JUL-2013) Coroner decided a public inquiry into Litvinenko’s death would be better than an inquest. Ministers rule out the request for an inquiry.

11-FEB-2014 — UK’s High Court rules Home Office in the wrong to decided against a public inquiry into Litvinenko’s death.

18/23-FEB-2014 — Protests erupt in the Maidan Nezalezhnosti (Maidan Square) in Kyiv.

01-MAR-2014 — Russia’s parliament approved the use of troops in Ukraine.

01-APR-2014 — (Related/unrelated?) Russia’s GLONASS satellite location system is offline beginning at midnight and not fully back up for 12 hours. No initial cause reported though some months later the outage its blamed on software update.

14-MAY-2014 — An alleged terrorist attack blamed for a gas pipeline explosion near Ivano-Frankivsk, Ukraine.

17-JUN-2014 — Urengoy-Uzhgorod-Germany pipeline exploded near Poltave in central Ukraine, located ~240 miles northwest of Donetsk and ~210 miles southeast of Kyiv/Kiev.

17-JUL-2014 —  Malaysia Air flight MH17 downed over eastern Ukraine by a missile.

01-DEC-2014 —  Vladimir Putin cancels the South Stream pipeline project running from Russia through the Black Sea to northern Bulgaria. (Recall Bulgaria became a NATO member in 2004.)

01-DEC-2014 —  Gazprom signed signed a Memorandum of Understanding with Turkish BOTAŞ for construction of a new gas pipeline running beneath the Black Sea from Russia to the Turkey-Greece border. Part of the deal includes providing Russia gas to Turkey with the rest shipping to the European market.

26-JAN-2015 — Evgeny Buryakov was arrested for acting as an unregistered foreign agent and conspiracy; his counterparts Victor Podobnyy and Igor Sporychev had already fled the country.

27-JAN-2015 — A public inquest began into the death of Alexander Litvinenko.

21-JAN-2016 — UK public inquest into the death of Alexander Litvinenko concluded it was an FSB operation likely approved by Putin.

11-MAR-2016 — Evgeny Buryakov pleaded guilty to begin a 30-month sentence.

28-MAR-2016 — Paul Manafort joins the Trump campaign.

06-JUN-2016 — Donnie Trump Jr. meets with Russian attorney Nataliya Veselnitskaya ostensibly to discuss Russia’s ban on adoptions of Russian children by Americans.

10/18-JUL-2016 — In the run up to Trump’s nomination at the Republican National Convention, the Republican Party’s platform on Ukraine was ‘softened’; the final wording said the U.S. would provide “appropriate assistance” to Ukraine and “greater coordination with NATO defense planning” instead of “lethal” assistance. The wording was changed to coordinate with Trump’s position, in contrast with that of the original proposed by an RNC delegate.

Three Things: Killing Oil, Too Money, Kaspersky’s World

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Too much going on here today but the existing threads are getting too deep and a couple are drifting off-topic. Here’s three quick things to chew on and an open thread.

~ 3 ~

The marketplace will bring death to oil long before the government. (Bloomberg). But will governments — US and oil-producing countries alike — get in the way of alternative energy in spite of the market demanding more alternatives to fossil fuels? With this trend away from combustion engines pressing on them, fossil fuel producers are shifting toward increased LNG for use in electricity production; this only shifts CO2 creation from vehicles to power plants. Will the market put an end to that, too?

~ 2 ~

There’s too much money out there if Delta can order multiple planes configured for all-first class service. I just spoke with a friend earlier today about round-trip fares from a major Midwest airport to major cities in Europe; they were quite high even with a departure date more than a month out, and higher than they had seen in a while. Fuel prices haven’t increased that much over the last year; low oil prices are threatening pipelines as financing construction costs more than the return on oil. Somewhere between slack fuel prices, firm fares and demand, Delta’s making enough money to build these let-them-eat-cake planes.

One could argue that if buyers have the money they can have whatever they want — except that taxpayers finance the infrastructure including essential safety regulatory system which will now protect the few and not the many while increasing congestion. Too money — somebody needs to pay more taxes to support the infrastructure they’re using.

~ 1 ~

Kaspersky Labs is releasing around the globe a free version of their antivirus software (Reuters). It won’t replace the paid version of their AV software, providing only very basic protection. I’m not using it, though, for two reasons: if it’s like Kaspersky’s existing free tool, it will send messages back to the parent company about infections it finds — and possibly more. Congress and the U.S. intelligence community may have concerns about Kaspersky Lab’s vulnerability to the Russian government; I’m more concerned about Kaspersky Lab having been breached at least once in 2015, compromising data in their systems. Your mileage may vary; use under advisement.

~ 0 ~

That’s it for now. This is an open thread. Behave.

P.S. The fight against attacks on the health care system isn’t over. Call your senator at (202) 224-3121. Other tools for your use in this post.

Death of the Car(go) Cult(ure)

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I had an epiphany recently. It sneaked up on me, right about the time I let go of my comfortable illusion of middle-class security and embraced the fact I may be faced with more than $26,000 per year in health care premiums and untold thousands in out-of-pocket deductibles and medication expenses. It could be more than my household income, forcing me to draw down on retirement savings nearly ten years prematurely.

Ticking off monthly expenses — what things could be reduced or eliminated in my household to make up for the additional health care expenses if some mutant abomination of AHCA passes — I came to an abrupt conclusion.

I don’t need a car anymore.

It costs more to own a car at my personal disposal than calling a car-for-hire, whether Uber or Lyft or local cab service.

I had to sit down after that. For nearly fifty years I’ve thought I needed a car, that every American aspired to vehicle ownership, save for big city residents for whom cars would be unmanageable. My entrance to adulthood was marked by the ability to drive a car; my personal freedom hinged upon being able to get away in my own vehicle.

But now? I might be trapped by a car. My six-year-old grocery-getter Mom mobile cost me more than I invested in the stock market the year it was manufactured — it’s worth a fraction of its original value, while my stock is worth several times over. My investment in wheels won’t pay for my future health.

I thought about my kids and the reality they face; only four years separates these two siblings, but a massive cultural shift occurred between them. My 23-year-old daughter drove off like the wind when I gave her my car keys seven years ago; she saw her first vehicle as freedom, just as I did when I was her age. She just signed her first lease on a vehicle, though; after crunching the numbers on new cars, it didn’t make sense to buy one. Leasing a car would yield a lower total cost to operate than buying one. She’s also not stuck with trying to sell it in a couple years when an electric vehicle might be preferred.

This isn’t an earth-shattering shift, but it’s a tectonic move; no one in my family has ever leased a vehicle. We have always bought and owned them over the last four generations.

And now my son. One might assume he was a car buff living here in the backyard of the Big Three Automakers, the progeny of one family which made its fortunes in auto parts and spawn of another family in which two successive generations made a living engineering in automobile manufacturing.

But no — he dragged his feet for nearly three years getting his license. He just didn’t care to get it; the only reason he got a driver’s permit was that everyone else his age had done so. He had the public school bus to get him to class every day, and me to get him to every intramural event. Why should he bother when he had it so good?

Especially when it came to the annoying expense of having his own vehicle. Being in a high-risk group — male, 16-25, driving more than 25 miles a week — he might pay more in insurance each year than the purchase price of the car he would drive. And then gas, which was near $4.00/gallon when he got his permit. And car washes, tires, wipers, oil changes, other increasingly frequent car repairs, and so on…this was not freedom.

His sister had been fortunate to land an internship for the duration of her college career, which helped defray automobile expenses. This has not been the case for her brother because of their different academic pursuits. He works at a summer job, stashing as much of his paycheck away for the academic year while living on his tips during the season. The paycheck and tips combined from his summer service job do not equal the amount his sister made each year; he simply cannot afford a car of his own.

We don’t know how long this may be the case, either. His prospects are different from his sister’s given his field of study. He may need to pursue a master’s degree immediately after he gets his bachelor’s. Leads on internships for his junior year of college are good, but the pay may be less than his sister made at the same point in their studies. A car of his own is a very iffy prospect for years.

Let’s face it: my son’s life is closer to that of the overwhelming number of American’s his age than my daughter’s is to her cohort. This is the shift in our culture, one in which we begin to let go of personal and family automobiles as a norm.

The more I thought about it, the more disturbed I became. Both of my kids will leave college without any debt; I spent what should probably have been my retirement health care savings on their tuition and board. In contrast, my prospective son-in-law carries $40,000 in debt after his graduation this month. Thankfully he has a good job and can pay it down quickly, but what of all other college students in the U.S.? The overwhelming majority will be saddled with a similar or greater amount of debt and middling jobs. They’re part of nearly 50% of America which cannot muster $400 cash in the event of an emergency, perhaps part of the 53% participating in the stock market but still one of the precarious.

These youngsters will be hard pressed to juggle health insurance premiums and deductibles under AHCA with massive college tuition debt and rising rents.

They will be hard pressed to buy a car outright. Screw all of those idiotic “Millennials are killing everything!” opinion pieces; their parents and grandparents have done little to ensure college would not burden them as much or more than an automobile payment.

Or a mortgage. I realized, too, that I am financing and paying taxes on a garage and a driveway I rarely use. I must trek out and shovel tons of snow every year to keep that rarely-used driveway clean; when it’s too much to do by hand, I break out the gas-guzzling, exhaust-belching snowblower.

All in service to a rapidly depreciating fossil-fueled demi-god with a deteriorating finish and in need of an oil change. I’ve become an adherent of a cargo cult, who has for too long believed that possessing this object would yield some greater blessing from the great god of capitalism. Instead of throwing several handfuls of dollars per mile traveled into a gaping maw I should be riding my bike or taking a bus.

When the rest of the U.S. wakes up to this same reality, the real earth-shattering shift will begin. Perhaps it already has.

What happens to a people when they lose their religion? We’re about to find out.
__________
Food for thought:
U.S. automakers question possible excess capacity – but is the challenge too much manufacturing capacity or too little buyers’ capacity due to decades of stagnant wages?

If carmakers like Volvo are already committed to switching completely to electric while entire cities and countries are forcing fossil fuel’s phase out, are potential car buyers simply driving their gas guzzlers to death until the industry has completely migrated?

Or maybe the future isn’t on the road but in the air; will buyers save their pennies for a flying car?

Tuesday: Disinfowar Dust Up

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In this roundup: Disinfowar, fossil fuels’ finale, pipeline problems, and a longish short about evolving hope.

The embedded feature video here, Dust by Ember Lab, won a number of awards last year. It’s a gritty blend of real and fantasy, and the closest thing to a American feature film with an Asian lead (there were no true feature-length films with an Asian/Asian-American lead or co-lead last year). It’s a little exposition dense, but this is integral to the challenge of world-building for a sci-fi/fantasy story. I wouldn’t be a bit surprised to see this story extended into a true feature or a series.

Disinfowar
If you haven’t already read Marcy’s latest piece today, you should do so soon. We are now deep in disinfo slung by multiple parties.

The one thing that niggles at me about WikiLeaks’ involvement in this latest volley of disinfo: why didn’t WikiLeaks release the Podesta emails when they originally said they were going to do so?

Or was skanky political operative Roger Stone blowing more disinfo out his ass when he tweeted about the impending Wikileaks’ release?

And how does the concurrent “Trump pussy grab” video story interleave with the WikiLeaks’ disinformation? Let’s take a look at the timing.

Early September — WikiLeaks’ Julian Assange claims to have documents damaging to Hillary Clinton which would be released before the election.

30-SEP-2016 Friday — WikiLeaks cancels release of an info dump on Hillary Clinton due to alleged security concerns. The info dump has been framed by some as a potential ‘October surprise’.

02-OCT-2016 Sunday — 12:52 am: Roger Stone tweets “Wednesday@HillaryClinton is done”.

03-OCT-2016 Monday — Unspecified time: Producer at an NBC entertainment outlet Access Hollywood remembers video of Trump with Billy Bush.

03-OCT-2016 Monday — 5:55 pm: AP publishes story, “‘Apprentice’ cast and crew say Trump was lewd and sexist.”

04-OCT-2016 Tuesday — Date of canceled WikiLeaks’ info dump.

Midweek (no date/day given) — Access Hollywood’s executive producer Rob Silverstein and team have reviewed the video. A script is prepared for airing of video, but it will not appear Friday evening before the next presidential debate on Sunday.

05-OCT-2016 Wednesday — No WikiLeaks’ info dump.

07-OCT-2016 Friday — First thing in the morning, Access Hollywood was still working on story; an NBC source said the story “wasn’t quite finalized.”

07-OCT-2016 Friday — Noon: Washington Post’s David Farenthold asks NBC for a comment on the Trump/Billy Bush tape which had been leaked to him by unnamed source(s).

07-OCT-2016 Friday — 2-4:00 pm (approximately, exact publication time to be confirmed): Washington Post runs Farenthold’s story, “Trump recorded having extremely lewd conversation about women in 2005.”

07-OCT-2016 Friday — 11:03 pm: WikiLeaks tweets link to “The #PodestaEmails Part 1.”

09-OCT-2016 Sunday — 9:50 pm: During the second presidential debate, Wikileaks tweets, “Hillary Clinton just confirmed the authenticity of our #PodestaEmails release of her paid speeches excerpts.”

10-OCT-2016 Monday — 9:36 am: WikiLeaks tweets link with “RELEASE: The #PodestaEmails part two: 2,086 new emails.“

A Google Trends snapshot of key words from these two stories also tells the story. To be fair, though ‘pussy’ spiked on Friday, it’s a pretty popular internet search term (in case this had not occurred to some of our readers).

[Source: Google Trends - compare terms:'wikileaks', 'hillary', 'podesta''pussy', 'billy bush']

[Source: Google Trends – compare terms:’wikileaks'(blue), ‘hillary'(red), ‘podesta'(yellow), ‘pussy'(green), ‘billy bush'(purple) – click to expand]

Really convenient timing, no matter the validity of the content in the emails.

Wheels

  • Germany’s upper house of parliament wants combustion engine cars off the roads by 2030 (Reuters) — This is one of the most important stories so far this year: one of the largest single nation economies in the world wants to end use of gasoline- and diesel-fueled vehicles within its borders inside 18 years. How will this impact Volkswagen Group, the largest automaker in EU? At least VW now has impetus to move completely away from its failed passenger diesel engines. Political parties across the Bundesrat, the upper house, support ending sales of combustion engine vehicles. What next steps Germany will take is unclear as is the next possible response by the EC in Brussels.
  • VW’s CEO Matthias Mueller knew nothing about passenger diesel vehicle scandal (Reuters) — Might be plausible that Mueller didn’t know anything about VW and Bosch tweaking engine control units to defeat emissions standards since Mueller was the head of Porsche before VW Group appointed him to replace Martin Winterkorn. And we all know Porsche isn’t the first brand you’d seek when shopping for either passenger diesel vehicles or fuel efficiency.
  • Fiat Chrysler and Canadian union Unifor avoid a strike (Detroit Free Press) — The deal includes updates to two plants and a restructuring of workers’ wage scale while working around the impending demise of the Chrysler 200 and Dodge Dart car models. No mention of self-driving/autonomous cars in FCA’s future lineup, if any.

Pipe meets face

  • Russian facial recognition software IDs 73% of people of of million-person database (Wall Street Journal) — This application developed by startup NTechLab beat Alphabet’s facial recognition software. This gives me the fecking creeps, especially considering the countries interested in buying this software.
  • Facial recognition app failed when used at pipeline protest (Indian Country) — A Crow Creek Tribe activist found he had been ‘identified’ as a pipeline protester by facial recognition software though he had been at a family event elsewhere during the time he was alleged to participate in the protest.
  • Pipeline construction work resumes after appeals court ruling against tribes (ABC News) — In a stunningly callous move, U.S. Court of Appeals for the D.C. Circuit issued a decision Sunday evening — before Columbus Day, the observation which offends Native Americans — denying Native American tribes’ request for an injunction to stop construction of the Dakota Access Pipeline. Work on the pipeline picked up again today, though the tribes vow to continue their protests. Protesters were arrested yesterday for trespassing, including actor Shailene Woodley. Woodley may have been selected in particular because of her high media profile and because she was streaming the protest online.

Longread: Asymmetry’s role in Trump’s rise
Worth reading NYU’s Jay Rosen on media’s inability to deal with asymmetry in the U.S. political system, and how this permitted Trump’s elevation as a presidential candidate. Personally I take issue with the concept that the “GOP has become an insurgent outlier in American politics.” In a two-party system where nearly half the population identifies with either one of these parties, neither of the two parties can be insurgent or an outlier.

Instead, this asymmetry — the departure from the past equivalency of either of these two major parties — results from the application of the Overton Window over decades to move nearly half the population toward a more conservative consensus. Applied too much, too often, and nearly half the population has adopted an ideology which is incompatible with the values espoused by a critical mass of this nation before the Overton Window was applied.

And the media, like meteorologists focusing on the day’s weather — is it cloudy or sunny? rain or shine? — missed the entire shift of the political climate toward fascism. Rather like the financial crisis of 2008, for that matter, when they failed to adequately look at the big picture before the entire economy went over the cliff.

That’s a wrap. Make sure you’re registered to vote as many states have deadlines today. Check in with housebound and with college students to see if they are registered and encourage use of absentee ballots where appropriate. Absentee voting has begun in some states.

Wednesday: If I Had a Heart

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Crushed and filled with all I found
Underneath and inside
Just to come around
More, give me more, give me more

— excerpt, If I Had a Heart by Fever Ray

Today’s featured single is from Fever Ray’s eponymous debut album ‘Fever Ray’, the stage name for Swedish singer, songwriter and record producer Karin Elisabeth Dreijer Andersson. If her work sounds familiar, it may be that she and her brother Olof Dreijer also performed as The Knife. Karin’s work is reminiscent of Lykke Li’s and Bjork’s electronic/ambient works, redolent with dark rhythms and layers of deep and high-pitched vocals — very Nordic feminine.

Fever Ray has been very popular with television programmers; the cut featured here is the theme song for History Channel’s Vikings series. It’s also been used in AMC’s Breaking Bad and WB’s The Following. Other songs by Karin as Fever Ray including Keep the Streets Empty for Me have been used by CBS’ Person of Interest and Canadian TV’s Heartbeats as well as a number of films. I’m looking forward to her next work, wondering if it will be just as popular TV and film industry.

Fossil feud

  • TransCanada approval hearing delayed due to protests (Reuters) — Not just U.S. and Native Americans protesting oil pipelines right now; Canada’s National Energy Board deferred this week’s hearings due to security concerns (they say). The board is scheduled to meet again in early October about the planned pipeline from Alberta to Canada’s east coast. There may be more than security concerns holding up these hearings, though…
  • Big projects losing favor with Big Oil (WaPo-Bloomberg) — The ROI on big projects may be negative in some cases, which doesn’t service massive debt Big Oil companies have incurred. They’re looking at faster turnaround projects like shale oil projects — except that these quick-hit projects have poorly assessed externalities which will come back and bite Big Oil over the long run, not to mention the little problem of fracking’s break-even point at $65/barrel.
  • Big Insurance wants G20 to stop funding Big Fossil Fuel (Guardian) — Deadline the biggest insurers set is 2020; by then, Big Insurance wants the G20 nations to stop subsidizing and financing fossil fuels including Big Oil because subsidies and preferential financing skew the true cost of fossil fuels (hello, externalities).
  • Standing Rock Sioux continue their protest against the North Dakota Access Pipeline (Guardian) — Video of the protest at that link. Calls to the White House supporting the Sioux against the DAPL are solicited. Wonder if anybody’s pointing out fracked shale oil is a losing proposition?

Zika-de-doo-dah

  • Adult mosquitoes can transmit Zika to their offspring (American Journal of Tropical Medicine and Hygiene) — Study looked at infected Aedes aegypti and albopictus mosquitoes and found the virus in subsequent larva. My only beef with this study is that Culex species were not also studied; they aren’t efficient carriers of Zika, but they do carry other flavivirus well and there are too many cases with unexplained transmission which could have been caused by infected Culex. Clearly need to do more about pre-hatch mosquito control regardless of species.
  • Three drugs show promise in halting Zika damage in humans (Johns Hopkins Univerity Hub) — Important to note some of the same researchers who demonstrated Zika caused damage in mice brain models earlier this year have now rapidly screened existing drugs to test against mice brain models. The drugs include an anti-liver damage medication (emricasan), an anti-parasitic (niclosamide), and an experimental antivirus drug. The limitation of this research is that it can’t tell how the drugs act across placenta to fetus and whether they will work as well and safely once through the placenta on fetuses. More research (and funding!) is needed.
  • Contraception no big deal, says stupid old white male GOP senator’s staffer (Rewire) — Right. If only McConnell and his staff could experience the panic of being poor and at risk of Zika. Not everybody in Puerto Rico has ready access to the “limited number of public health departments, hospitals, and Medicaid Managed Care clinics,” let alone other states like Texas which has such awful women’s reproductive care in terms of access and funding the maternal mortality rate has doubled in two years, up 27%. Pro-life, my ass. By the way, this lack of access to contraception affects men, too, who may unknowingly be infected with Zika and tranmit it to their sexual partners.

Longread Must-read: Super court
If you haven’t already done so, you need to read this investigative report by Chris Hamby at BuzzFeed. While it answers a lot of questions about the lack of perp walks, it spawns many more.

Hasta luego, compadres!

Wednesday: Heat of Passion

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Crazy stuff happens when there’s a full moon like last night’s. Crazier stuff happens under heat and pressure. Brace yourselves as the heat dome slides from the southwest to Midwest and east this week.

Hot wheels

  • A look at the whys behind Volkswagen’s Dieselgate scandal (DailyBeast) — Interesting read in which German and VW culture loom large as contributing factors behind the fraud that is ‘Clean Diesel’.
  • New York, Maryland, Massachusetts each file lawsuits against VW (Reuters) — Filings accuse VW of violating states’ enviromental laws. The suits claim VW’s executives knew ‘clean diesel’ technology would not meet states’ environmental standards, and that former VW CEO Martin Winterkorn knew about this failure since 2006. The suits also claim VW employees willfully tampered with evidence after they were told an order to freeze documents was impending. A DOJ criminal investigation is still underway.
  • VW set aside another $2.4B (BBC) — In addition to the previous $15.3B, the additional amount was set aside to address “further legal risks predominately arising in North America.” Hmm…was that about the states’ environmental lawsuits now popping up?
  • And yet VW’s stock price popped up because profits (TheStreet) — Uh-huh. Short-term churn, unsustainable, because VW hasn’t yet seen half of its legal exposures given the number of states’ lawsuits so far, let alone other countries’ claims. VW expects sales to lag over last year, too, not to mention all the other factors increasing market instability.
  • EU Competition Commission busts European truck cartel with $3.2B fine (Bloomberg) — Interesting push-pull inside this story: Scania AB, a Swedish truckmaker owned by Volkswagen, has been penalized after MAN SE, another Volkswagen subsidiary, squealed to the EU and got its $1.2B fine waived. Wonder if VW execs did the math on that in advance? Another interesting tidbit is Volvo’s reduction in production here in North America and abroad, blamed on stagnant market; this says something about consumption.
  • Mercedes’ self-driving buses pass 20-kilometer trip test (The Verge) — IMO, self-driving mass transport should have priority over passenger cars; there’s not much difference between a semi-autonomous bus on a scheduled route and a streetcar on a track like those in New Orleans or San Francisco, and we know they are successful. This distance test could mean a lot to cities the size of Detroit; now will U.S. transportation companies meet Mercedes’ challenge?

Miscellany

  • Feds seizing assets related to Malaysian theft, including Wolf of Wall Street (THR) — DOJ tracking down the $1B stolen from Malaysia; destinations of cash may suffer asset forfeiture including rights to artworks like recent pop music and films. Background on the 1MDb scandal here (not to be confused with Amazon’s subsidiary IMDb.com).
  • Oil bidness, part 1 — UK edition: Oil price crash plus Brexit accelerates capping of North Sea well heads (Bloomberg) — The uncertainty of UK’s future plans makes the country a good opportunity especially when the pound is low to shut down wells. It’ll only cost more to do the same when UK comes out of its funk, and the well heads must close eventually due to falling demand and a long-term glut expected. Oh, and Scotland. Don’t forget the risk of costly transition between a UK pound, the euro, and a possible Scottish pound in the future.
  • Oil bidness, part 2 — Russian edition: Oil price below $40/BBL will help Russia (Bloomberg) — Okay, this one made me laugh my butt off. Uh-huh, less cash is exactly what Putin wants in order to make Russia great again. Right. The real crux is and has been Russia’s access to cash for their defense (offense?), and it’s not Russia who wants less cash spent on that.
  • BEFORE meeting with UK’s PM May, Scotland’s FM Sturgeon suggested another indy ref vote next year (The Scotsman) — I think this is the match-up we’ll want to watch, the volley of words between Sturgeon and May as they jockey for best position. Sturgeon has the upper hand, period; she’d already had a chat with the EU about remaining in the community before May was named PM, though Spain was a sticking point (because of their own potential breakaway state, Catalonia).
  • Student researching WiFi brings center of Brussels to a screeching halt (Le Soir) — Good news, bad news story: Security took note of the young man wearing too long a coat for the day’s heat and halted traffic in the city’s center as counterterror teams were dispatched. Turns out the guy was just studying the city’s WiFi. Good that security wasn’t goofing off, bad that even looking odd while researching can stop a major city.

Stay cool — I’m considering popcorn for dinner at the local cineplex this evening until the sun sets and the temperature drops outside. Dinner tomorrow and Friday might be Jujubes and Good-and-Plenty.

Wednesday Morning: Meet Me on the Floor

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I admit it, I’ve betrayed my kind. I’ve been remiss in my responsibilities, haven’t been equitable.

To fix that, you need a dose of estrogen, stat. This morning’s medication is Veruca Salt’s Volcano Girls.

Feel better soon, eh?

Wheels
Mitsubishi’s Tetsuro Aikawa to leave, asks Nissan to name replacement (Bloomberg) — Announcement comes six days after Nissan announced it would buy a controlling interest in Mitsubishi. Nissan’s CEO Carlos Ghosn indicated he does not intend to subsume and phase out the Mitsubishi brand; this may have encouraged Aikawa he was leaving the company in good hands. I wouldn’t bet on some overlap between Nissan/Mitsubishi being eliminated.

Suzuki apologized for using the wrong fuel economy tests (Reuters) — Suzuki says it didn’t need to change its declared mileage data based on correct testing. I sure hope independent testing confirms this, though I suspect the same study which revealed Volkswagen’s cheat would have indicated additional validation needed.

Volkswagen says it will focus on profitability, pronto (Bloomberg) — Investors are restless and complaining about VW’s recalcitrance toward cost cutting in light of 16 billion euros it set aside for fixes and claims due to Dieselgate. Executives’ pay is on the butcher’s block. More than a little overdue as VW execs knew about the emissions controls defeat’s detection two years ago.

Forensic scientist reports to NHTSA Chevrolet’s dangerous cruise control problem (Zdziarski’s blog) — PAY ATTENTION TO THIS IF YOU’RE A LATE MODEL CHEVROLET OWNER. Read the linked post; Chevrolet’s response is deplorable, asking drivers to modify behavior rather than supply/fix product to work as documented and sold.

The (Fossil Fuel) Business
Goldman Sachs downgrades stocks to neutral while going bullish on oil (Bloomberg) — I like the subhead on this article: “Too many things to worry about.” ~LOL~ Excess valuation, lower growth, “a wall of stock market worries” encouraged the bear move. Things not explicitly mentioned: the U.S. and Australian elections and Brexit referendum outcome.

But…bullishness on oil out of whack (MarketWatch) — Another LOL-ish subhead today: “The fine print shows Goldman analysts believe oil will struggle to easily top $50.” So GS is telling its clients to reduce excess oil holdings while conditioning overall market to firm up what’s in their clients’ portfolios? ~smh~ Just as above, not mentioned in this take are any elections/referendums.

Note, too, that neither of these reports mentions Iran.

Anadarko Petroleum downgraded to neutral by Credit Suisse (Trade Calls) — You want another confusing take on fossil fuels? Read this article. Supports MarketWatch’s calling out GS on oil, though Anadarko also includes natural gas.

Total SA’s CEO Pouyanne pooh-poohs France’s ban on shale gas (Bloomberg) — Man, this dude is as arrogant as his predecessor. France could simply outlaw any imports without a certificate of origin, and force the industry to figure it out. Yet another article that doesn’t mention Iran, which sits on one of the largest natural gas reserves in the world. Pouyanne’s predecessor was cozy with Iran, too. So why all the attitude about North American shale gas imports?

Artificial Intelligence
Hedge fund used AI to pick through Fed Reserve’s minutes (Business Insider) — Using AI gleaned from a competition it hosted, Two Sigma fund analyzed the Fed Reserve. The app used Natural Language Processing and found some interesting trends. Wonder if the results would be different using Google’s SyntaxText open sourced this past week?

NSFWhut?
Cynically opportunistic marketing push promotes so-called ‘anti-Zika’ condoms (IBTImes-AU) — Pharmaco Starpharma Holdings and condom-maker Ansell will give Australia’s Olympians “Dual Protect” condoms lubricated with VivaGel for “almost 100-percent anti-viral protection” against Zika. Never let a perfectly good health crisis go to waste, right?

CDC says any condom will work against Zika (MarketWatch) — Yeah. That. I said this already: condoms are recommended for other viral STIs like herpes and HIV, will work fine for Zika, no special anti-Zika condom required. But you have to use the consistently and for at least six months after exposure to Zika since the virus can remain in men’s reproductive system for at least that long after infection.

ONE company will release condoms in 56 different sizes (Glamour) — Holy schnikes. This is a broader range of sizes than men’s off-the-rack suits. No excuses about not wearing condoms, there will be one bound to fit gents. Would be nice if ONE could hit the market with these in Brazil before the Olympics. (And don’t turn your nose up at Glamour. It’s one of the better articles I read today, includes some good links.)

There’s enough material to get you over the hump. Catch you in the morning tomorrow!

Ten Billion: A Kick in the Ass We’ve Needed

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[Note: You can join Professor Stephen Emmott for a @reddit AMA TODAY Friday 04-DEC-2015 at 4:00 pm (UK) / 11:00 am EST.]

If we learned a cataclysmic, extinction-level event was hurtling toward our planet, how would we respond? How should we respond if we know we can minimize the threat?

This is in essence the question asked of us by Ten Billion, a film based on Professor Stephen Emmott’s eponymous book. The film premieres this Saturday at 22:00 UTC on SkyTV.

I was fortunate to screen Ten Billion recently. Crafted by director Peter Webber, it deftly evokes Koyaanisqatsi (1982), its name based on the Hopi word for “life out of balance.” Ten Billion similarly shows us a world even more off kilter, its resources relentlessly consumed by humans. Where Koyaanisqatsi‘s Philip Glass score was reflective and elegiac, Ten Billion‘s Alex Heffes’ score underlines the mounting urgency of crises.

These crises are many, pegged directly to population growth and its corresponding rate of consumption. The film’s use of a timeline depicting past and future projections of population are effective, like watching the tipping point of a virus infecting its host.

Effective, too, are comparisons between recent and archival photos depicting the changes wrought by humans. Evidence of glaciation loss is horrific, as one example.

Photos of earth from the International Space Station remind us that we are all in this together. There is no escape, no way around this; this is home, and we must work together to save it.

My sole critique is about the diversity of “climate migrants” — so-called in the film, but we know now that many who flee political instability are really “climate refugees.” Ten Billion depicts the plight of peoples affected most by climate change. Most live closer to the equator, and are therefore darker skinned. They have been too easily ignored by light-skinned northern cultures. We see that now with the response to Syrian refugees, whose home country began to fall apart due to severe drought long before overt military action began against Bashar al-Assad’s regime and ISIS.

We also see the same blindness in western response to world-record typhoons Bopha, Haiyan, Hagupit, Koppu hitting the Philippines year after year; cyclone Pam nearly wiping away Vanuatu this past March; and the combination of severe drought and catastrophic flooding affecting Chennai, India even now. There is little if any news coverage here in the U.S., and a nominal amount in the U.K. and EU, as if Asians and Pacific Islanders don’t even exist though they number in the billions. We ignore our role in exporting not only manufacturing jobs but associated air pollution to India and China.

Ten Billion would have been more effective holding a mirror up to the pale faces of northern climes, forcing them to see they, too, are affected. Whites fled both New Orleans and the Gulf Coast ahead of hurricanes like Katrina. They fled the coast of New Jersey and New York after Hurricane Sandy — some who stayed and returned to the affected area are still dealing with post-storm damage years later. There will be more internal climate refugees again whenever the next Category 4 or 5 hurricane hits U.S.

And there will be refugees from drought, when the need for water in states like California finally exceeds the ability of other states to sell and ship enough to meet the shortfall. We are not prepared to deal with this generation’s version of the Okies fleeing a new Dust Bowl.

Until the west — especially the U.S. based on its consumption habits and political reach — realizes its own pale skin is invested in these crises, it may continue to look the other way while making idle greenwashed gestures like COP21 in Paris this week.

I am on the fence about Emmott’s understatement about his own background in this film. If he had been more explicit about his role as a scientist, would the public take his plea in Ten Billion more seriously?

It’s important to note this film may be part of a growing trend — scientists bypassing the suffocation of politicized corporate media, in order to reach the public.

We’ve seen this recently with the op-ed by NASA Jet Propulsion Laboratory/Caltech senior water scientist Professor Jay Famiglietti, warning California only had one year of water left in its reservoirs. Famiglietti didn’t wait for a report issued from either NASA or academia to filter its way into the stultifying news reporting process. He cut out the middle men and wrote an op-ed for the Los Angeles Times to convey urgency and effect immediate action.

Some will criticize this film as expository and hortatory, failing to provide solutions to the crises we’ve created. This is not that film. This is not meant to guide us toward help, when so many other scientists have already told us for decades what is wrong and what action we must take to minimize the threat to our planet and ourselves.

This film is meant to be a much-needed kick in the ass, to propel us to action appropriate to a cataclysmic, extinction-level event.

Because as Emmott says, in concise terms familiar to civilians and scientists alike, we’re fucked if do not take immediate, appropriate action.

You can join Professor Emmott for a @reddit AMA TODAY Friday 04-DEC-2015 at 4:00 pm (UK) / 11:00 am EST. Emmott also has an op-ed today in The Guardian.

Minority Report on Ukraine, or What’s Venezuela Got to Do with It?

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I freely admit to being the oddest of the quadruplets in the Emptywheel sensory deprivation pool, producing the quirky minority report from time to time.

Which may explain the following graphic with regard to current geopolitical tensions.

[Source: Google Trends and Google Finance]

[Source: Google Trends and Google Finance]

 As you can see, not every trending burp in the news about either Venezuela or Ukraine produced a corresponding bump in the fossil fuel market. Some trend-inducing news may have nothing at all to do with energy. It’s quite possible I may not have captured other key businesses as some of them don’t trade publicly, or are don’t trade in a manner readily captured by Google Finance.

But there are a few interesting relationships between news and price spikes, enough to make one wonder what other values may spike with increased volatility in places like Venezuela (which has the largest oil and natural gas reserves in the western hemisphere), and Ukraine (which lies between the EU and the largest natural gas deposits in the world, and the world’s eighth largest oil reserves).

Of course there’s an additional link between these two disparate countries. Both of them have already seen similar upheavals in which the U.S. played a role — Ukraine’s 2004 Orange Revolution, and the 2002 attempted coup in Venezuela.

When someone made noise about an Afghan Muslim being a key locus of the latest unrest in Ukraine, I couldn’t help but think of the Trans-Afghanistan Pipeline for natural gas which has yet to be realized, primarily for a lack of adequate political will among nation-states with a vested interest in its success.

It also made me think of news reports from this past summer when Turkmenistan, sitting on the fourth largest natural gas reserves in the world, expressed a readiness to export gas to Europe. This would cut into Russia’s sales, but not for a few years, requiring continuation of existing relationships for the next three to five years. Note the pipelines, existing and planned on the following U.S. State Department map (date unclear, believed to be post-2006).*