No end to regulation

• Kanye West constructed four "Star Wars"-inspired structures on his property in Calabasas, California, which were intended to house the homeless. The dwellings were supposed to be temporary prototypes, but a Los Angeles county inspector said they had concrete bases so they looked permanent. Instead of securing the necessary permits, West opted to tear the homes down.
• The huts are crazy and the regulator is crazy. Find the difference with a central European country ruled by a would-be architect dictator who levels the houses he does not like? 

I thought vital Saudi installations were protected by the US

I was wrong. No one was watching no one saw anything. No one even knows from where the attackers came from and why.

P.S.: Two days after the attack, I can't find a declaration by Saudi authorities. Missing are the typical Arab war harangues swearing vengeance. Their silence is mystery.

Apparently no human was hurt, it was a surgical drone attack. Iran says they were not them. The Yemenis assumed responsibility but the attack came from the north and they are too far to target four (see pic) tanks with such precision. My take: Someone is trying to provoke a war against Iran, probably the Ayatollahs themselves.  From Kever Benjamin city, it looks like Iran understood that its efforts to attack Israel are met with strong resistance, while Saudi has no military resources. Its protector, the USA, wants to avoid war at all costs. Trump said: Iran is guilty but I don't want war. As if war was something one wants or does not want. Like in poker, pass (*).

The winter is coming and Europe needs heating oil.  Europe has even less desire to protect militarily the oil flow. Iran and other "rogues" have been saying for ages that the West has lost its mojo and is a "paper tiger". Now they seem to believe in it. Not good.

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(*)  What is a pass in poker? Pass - To refrain from calling or betting when it is your turn to act. To “pass" is to indicate that one is folding when facing a bet which don't intend to call.

Reading Japan, understanding China

中原よ。

地球は冬で寒くて暗い。

ぢゃ。

さやうなら。

  

Nakahara, friend!

The earth is wintry, cold and dark.

Well then, good-bye.

I am reading Reischauer's history of Japan. Surprising that the Japanese use a supremely difficult writing system, worse than the Chinese. Europeans also used difficult systems in the past, like writing in Latin. But it was abandoned, the Japanese stuck with it. I also understood that the Chinese Communist Party is following the Japanese model of modernization, only that the Japanese were lucky to have the Americans to impose on them what they longed to do. For example, democracy and agrarian reform. The Chinese know that the dictatorship of the proletariat does not fit them, but they cannot find the way to wiggle out of the format and dissolve the Communist Party and reform in two or three competing parties. The West should not fear China. It is fated to become wealthy as Japan and South Korea, and then, stagnate. BTW, Nakahara was a poet, died at age thirty. 

Paris Unfit for Human Habitation

460 tons of lead tiles of the Notre Dame Cathedral vaporized last month and Parisians are breathing it in the poisoned air. This is a long term quite untreatable problem. The metal fallout formed a dust that has settled on the city and contaminated the soil and is stuck in air conditioning ducts. Measured lead concentrations  in areas close to the cathedral were between 10 and 20 grams per kilogram.

10 to 20 grams lead per kilogram equals 20,000 milligram/kg that is 20,000 ppm. About 10 to 50 ppm (parts per million) lead occurs naturally in soils, and more in urban areas. Universally, soil lead levels are associated with elevated blood levels in humans. Studies show high blood Pb levels are linked to  environmental conditions;  dry weather results in more suspended soil dust, which is breathed in by the population.

The Environmental Protection Agency allows concentrations of 400 ppm Pb in soils where children play and 1200 ppm in other areas of bare soil. The EPA doesn't have specific standards for a safe level of soil lead, but various organizations and researchers have attempted to come up with a number - somewhere between 300 and 600 ppm.  No doubt, the soil around the Cathedral is toxic and the place should be closed to tourists, or maybe, tourists allowed for short visits while protected by face-masks with anti-dust filter. Maybe Parisians should start to wear industrial dust-masks in the street, like the inhabitants of Beijing.  Left: Graph showing the concentration of lead particles in the air and the weather, in Detroit. Dry weather allows dust to contaminate the air and children's blood. All the soil in Paris and its buildings are contaminated and until decontaminated, unfit for human habitation.

One more reason for young Jews with children to move to Ashdod on the Mediterranean.

I think I'll buy TEVA

There is a worldwide shortage of cheap remedies, and the main producers are Mylan and Teva. They have been suffering from low prices dictated by the regulators, who never think about what are doing. Teva is very cheap, I bet it will survive the oxycontin issue and repay its debts, and become profitable again.

PS next day: TEVA continues to drop on TASE. In politics I am "oficialista" (always vote for the party in power) and in the bourse, contrarian. 

Mango Harvest

This summer we had a good yield in the mango plantation of Ramat HaShavim. Some mangoes were so low on the trees that even Arbel harvested a big one. 

Why there is no progress? Inelastically Supplied Jews

An academic paper confirms what I had long suspected: the factor impeding progress is the scarcity of what they call "genius" and "inelastically supplied superstar labor" and I call, with due modesty, "Jews". I mean real flesh-and-bone Jews, and also a close group of non-Jewish smart people. 

Digital versions of labor and capital can be reproduced much more cheaply than their traditional forms. This increases the supply and reduces the marginal cost of both labor and capital. What then, if anything, is becoming scarcer? We posit a third factor, ‘genius’, that cannot be duplicated by digital technologies. Our approach resolves several macroeconomic puzzles. Over the last several decades, both real median wages and the real interest rate have been stagnant or falling in the United States and the World. Furthermore, shares of income paid to labor and capital (properly measured) have also decreased. And despite dramatic advances in digital technologies, the growth rate of measured output has not increased. No competitive neoclassical two-factor model can reconcile these trends. We show that when increasingly digitized capital and labor are sufficiently complementary to inelastically supplied genius, innovation augmenting either of the first two factors can decrease wages and interest rates in the short and long run. Growth is increasingly constrained by the scarce input, not labor or capital. We discuss microfoundations for genius, with a focus on the increasing importance of superstar labor.