This week, I have been mostly reading:

• Open Letter: Rethinking the Role of Banks in Economics Education — Rethinking Economics: As research from the Bank of England, Bundesbank and numerous academics has shown, banks are not intermediaries channelling pre-existing funds from savers to borrowers. Commercial banks create the vast majority of money in circulation. Unlike other financial institutions, they create money when they extend loans to borrowers. In the process of extending a loan, banks do not move pre-existing funds from any other account but newly ‘invent’ the money by crediting the borrower’s account. Therefore, banks’ lending is constrained by borrowers’ demand, profitability considerations and financial regulations, not by pre-existing funds (i.e people’s savings) nor by central bank reserves. This reality is in line with the credit creation or endogenous money theory, which is absent from most current economics textbooks and teaching. Commercial banks also determine where money is directed in the economy. Around 80% of new money created in countries like the US and UK currently goes towards existing property and financial markets, rather than the ‘real’ or productive economy, leading to soaring house and land prices, and housing crises. In the Global South, 33 major global banks poured $1.9 trillion into fossil fuels since the 2015 Paris Climate Agreement, directly influencing the trajectory of economies that will be hit first and hardest by climate change. The power of banks to create money therefore has enormous implications for the shape and stability of our economy. Yet, in an overwhelming number of cases, economics textbooks and courses do not teach this to the economists of tomorrow.
• False Idol — Why the Christian Right Worships Donald Trump — Alex Morris in Rolling Stone: By creating a narrative of an evil “deep state” and casting himself — a powerful white man of immense generational wealth — as a victim in his own right, Trump not only tapped into the religious right’s familiar feeling of persecution, but he also cast himself as its savior, a man of flesh who would fight the holy war on its behalf. “There’s been a real determined effort by the left to try to separate Trump from his evangelical base by shaming them into, ‘How can you support a guy like this?’ ” Jeffress tells me. “Nobody’s confused. People don’t care really about the personality of a warrior; they want him to win the fight.” And Trump’s coming to that fight with a firebrand’s feeling, turning the political stage into an ecstatic experience — a conversion moment of sorts — and the average white evangelical into an acolyte, someone who would attend rallies with the fever of revivals, listen to speeches as if they were sermons, display their faithfulness with MAGA hats, send in money as if tithing, and metaphorically bow down, again and again, at the altar of Donald Trump, who delivers the nation from its transgressions.
• I Personally Don’t Believe Solutions Are the Answer to Our Problems — in McSweeney's Internet Tendency, Chas Gillespie manages to wring the last little bit of satire out of the new normal: On a whole range of issues — from racism to anti-Semitism to gun violence to global warming — there is a strange and quite frankly dangerous tendency among certain people to think that solutions are the answer to our problems. And sure, maybe in a place like California or Massachusetts, solutions might fly as solutions to problems. But for the rest of the country? I don’t think so.
• All of America’s 607 Billionaires Must Run for President — Jon Schwarz at the Intercept: With Michael Bloomberg, the ninth richest man on earth, apparently running for president, Americans are asking themselves some tough questions. Like, why did we ever allow nonbillionaires to run for the highest office in the land? And why aren’t all the other billionaires jumping into the race? After all, for all intents and purposes, the United States is already run by its billionaires. They should care about us enough to make things official. If you like America, you should put a ring on it! There’s no possible downside here. We already have a guy who calls himself a billionaire as president, and that’s going great. Things could only get better with more of this billionaire magic.
• Bizarro — by Wayno and Piraro:
  
• The evidence from the sociologists against economic thinking is compelling — Bill Mitchell: When I was an economics student we were taught that unemployment, which in the real world is a major cause of poverty, was, in fact, a choice made by individuals who preferred ‘leisure’ to ‘work’ because the real wage they could access was not large enough to offset the utility they would gain from enjoying the leisure that arose from not working. There were elaborate technical analyses presented as I went through the years of study to show that if the government dared to introduce an income support payment for unemployment it would further distort the choice for leisure – the so-called ‘corner solution’ of the work-leisure model. We were also told that the real wage they faced was low because they had chosen not to invest in themselves to enhance their productivity through human capital accumulation (education and training). And the more insidious claims were that a class of impoverished people deliberately positioned themselves in this way (as a ‘utility maximising’ choice) because of categorical biases in the welfare systems.
• The Unlearning — George Monbiot: There are two stark facts about British politics. The first is that they are controlled, to a degree unparalleled in any other Western European nation, by a tiny, unrepresentative elite. Like almost every aspect of public life here, government is dominated by people educated first at private schools, then at either Oxford or Cambridge. The second is that many of these people possess a disastrous set of traits: dishonesty, class loyalty and an absence of principle. The current Prime Minister exemplifies them. What drives him? What enables such people to dominate us? We urgently need to understand a system that has poisoned the life of this nation for over a century. I think I understand it better than most, because there is a strong similarity between what might have been the defining event of Boris Johnson’s childhood and mine. Both of us endured a peculiarly British form of abuse, that is intimately associated with the nature of power in this country. We were sent to boarding school when we were very young.
• Classics for the people — Edith Hall in Aeon: Classical topics were included on the curricula of Mutual Improvement Societies, adult schools, Mechanics’ Institutes, university extension schemes, the Workers’ Educational Association, trade unions and the early Labour Colleges. These initiatives did much to counter the sluggish legislative response to workers’ demands for education: it was not until the Elementary Education Acts of 1870 and 1880 that even rudimentary instruction in literacy and numeracy, let alone access to classical culture, became universally and freely available to children under 13. But there had long been other ways to learn about the Greeks and Romans. Museums in Britain were visited by a far wider class cross-section than their Continental equivalents, where the admission of visitors to the princely galleries was closely monitored. There was a sense that art and archaeology somehow belonged to the nation rather than exclusively to wealthy individuals; free admission was customary. A Prussian traveller in London was disturbed to find in 1782 that the visitors to the British Museum were ‘various … some I believe, of the very lowest classes of the people, of both sexes, for as it is the property of the nation, everyone has the same right … to see it, that another has’. And classical sculptures such as the Parthenon frieze and the Venus de Milo were endlessly reproduced in forms accessible even to the poorest Briton: plaster reproductions in municipal museums across the nation, cheap self-education magazines such as Cassell’s Popular Educator, and volumes published by the Society for the Diffusion of Useful Knowledge, available in libraries of Mechanics’ Institutes. Lower-class visitors’ memoirs often imply that what they saw in museums nurtured an impulse towards self-education.
• Bolivian Coup Comes Less Than a Week After Morales Stopped Multinational Firm's Lithium Deal — Eoin Higgins at Common Dreams: The Sunday military coup in Bolivia has put in place a government which appears likely to reverse a decision by just-resigned President Evo Morales to cancel an agreement with a German company for developing lithium deposits in the Latin American country for batteries like those in electric cars. […] The Morales move on Nov. 4 to cancel the December 2018 agreement with Germany's ACI Systems Alemania (ACISA) came after weeks of protests from residents of the Potosí area. The region has 50% to 70% of the world's lithium reserves in the Salar de Uyuni salt flats. Among other clients, ACISA provides batteries to Tesla; Tesla's stock rose Monday after the weekend. […] ACISA told German broadcaster DW last week that the company was "confident that our lithium project will be resumed after a phase of political calmness and clarification."
• Machine Learning Captcha — xkcd by Randal Monroe:
  

This week, I have been mostly reading:

• Chemistry Nobel — xkcd by Randall Monroe:
  
• After Avoiding Safety Upgrades, PG&E Hired Lobbyists and Public Relations Instead — Lee Fang at the Intercept: Power shutoffs affecting more than 1 million residents, scheduled by PG&E this week throughout the San Francisco Bay Area and Northern California, have sparked a massive backlash, with many community members telling reporters that they are shocked that the company has not done more to upgrade its transmission lines. The decision to shut off the electricity services, a precaution over concerns about high winds, raises the question of precisely how PG&E has been spending its rate-payers’ money. And the answer isn’t pretty: While neglecting safety upgrades and investments in its aging infrastructure, PG&E has instead been lavishly rewarding shareholders and buying political influence. Over the last year, reporters have highlighted the large lobby spending and billions of dollars in dividend payments to investors by PG&E, while the company avoided necessary investments in its aging transmission towers — some of which are among the oldest in the world and were known to the company to be a potential fire hazard. The aging transmission lines caused the Camp Fire wildfires last November, the most destructive in California history, that left 86 dead, over a dozen injured, and caused at least $16 billion in damages.
• Saturday Morning Breakfast Cereal by Zach Weinersmith:
  
• Australia’s “Fair Go” Is a Lie — Jeremy Poxon from the Australian Unemployed Workers’ Union in Jacobin: According to a recent survey conducted by the Australian Council of Social Service, 84 percent of Newstart recipients skip meals in order to survive on the entitlement. Colloquially, low-income Australians refer to this as “the Newstart diet.” Unsurprisingly, this level of deprivation is psychologically debilitating. Being unemployed in Australia means experiencing depression, stress, anxiety, and loneliness on a daily basis. In a recent survey, the Australian Unemployed Workers’ Union (AUWU) found that 98 percent of its members experienced significant social isolation. Increasingly, Australia’s unemployed cannot afford to put fuel in their cars, pay for public transport, or meaningfully engage with their friends and communities.
• Where’s Your Football, Lucy? — Ted Rall:
  
• Assange in Court — Craig Murray: Until yesterday I had always been quietly sceptical of those who claimed that Julian’s treatment amounted to torture – even of Nils Melzer, the UN Special Rapporteur on Torture – and sceptical of those who suggested he may be subject to debilitating drug treatments. But having attended the trials in Uzbekistan of several victims of extreme torture, and having worked with survivors from Sierra Leone and elsewhere, I can tell you that yesterday changed my mind entirely and Julian exhibited exactly the symptoms of a torture victim brought blinking into the light, particularly in terms of disorientation, confusion, and the real struggle to assert free will through the fog of learned helplessness. I had been even more sceptical of those who claimed, as a senior member of his legal team did to me on Sunday night, that they were worried that Julian might not live to the end of the extradition process. I now find myself not only believing it, but haunted by the thought. Everybody in that court yesterday saw that one of the greatest journalists and most important dissidents of our times is being tortured to death by the state, before our eyes. To see my friend, the most articulate man, the fastest thinker, I have ever known, reduced to that shambling and incoherent wreck, was unbearable. Yet the agents of the state, particularly the callous magistrate Vanessa Baraitser, were not just prepared but eager to be a part of this bloodsport.

This fortnight, I have been mostly reading:

• Break up the Dem Party — Michael Hudson: The problem facing the Democratic National Committee today remains the same as in 2016: How to block even a moderately left-wing social democrat by picking a candidate guaranteed to lose to Trump, so as to continue the policies that serve banks, the financial markets and military spending for Cold War 2.0. DNC donors favor Joe Biden, long-time senator from the credit-card and corporate-shell state of Delaware, and opportunistic California prosecutor Kamala Harris, with a hopey-changey grab bag alternative in smooth-talking small-town Rorschach blot candidate Pete Buttigieg. These easy victims are presented as “electable” in full knowledge that they will fail against Trump. Trump meanwhile has done most everything the Democratic Donor Class wants: He has cut taxes on the wealthy, cut social spending for the population at large, backed Quantitative Easing to inflate the stock and bond markets, and pursued Cold War 2.0. Best of all, his abrasive style has enabled Democrats to blame the Republicans for the giveaway to the rich, as if they would have followed a different policy.
• Bizarro — by Wayno and Piraro:
  
• Superblocks: Barcelona’s car-free zones could extend lives and boost mental health — Anupam Nanda from the University of Reading in the Conversation: Congestion, pollution and a lack of community spaces have become major drags on people’s aspirations and experiences of urban living. In response, cities must manage their resources and priorities to create sustainable places for visitors and residents, and foster innovation and growth. Enter Barcelona – the capital of Catalonia, in Spain – where a bold stroke of urban planning first introduced “superblocks” in 2016.
  
• Turns Out, Alexandria Ocasio-Cortez Is Huge in Iowa — Tim Murphy for Mother Jones: Sanders’ core identity is that he’s a man who doesn’t change—Ocasio-Cortez told the crowd Saturday night that she endorsed him because he had been fighting for people like her before she was born. The consistency is the thing; you hear it again and again. So much so that there is a frustration among supporters that other candidates have profited at his expense by simply appropriating aspects of his agenda. “Every candidate is saying what Bernie has been saying,” said Robin Ruetenik of Coralville. “It’s a coattail orgy.” But if this campaign turns out different from the last, it’ll be because of the subtle ways he and his movement have evolved. In 2016, Sanders was traveling around the country, promising a new day in America that you could only faintly begin to discern. In 2020, the revolution he promised isn’t quite so hard to imagine—she takes the stage right before him. That’s its own form of renewable energy.
• This Simple Structure Unites All Human Languages — David Adger in Nautilus: Human language is amazingly creative. If you make up a sentence of any complexity, and search for that exact sentence on the Internet, it’s almost never there. Virtually everything we say is novel. Yet at the heart of this capacity of ours lies an incredibly simple piece of mental technology: Merge. Merge takes two bits of language, say two words, and creates out of them another bit of language. It builds the hierarchical structures of language. Merge was proposed by Noam Chomsky in the early 1990s. He argued that this single piece of mental technology, plus language specific constraints that children could learn from their linguistic experiences, was enough to capture the syntax of all human languages.
• Stephen Miller’s Affinity for White Nationalism Revealed in Leaked Emails — Michael Edison Hayden for the Southern Poverty Law Center's Hatewatch blog: Hatewatch reviewed more than 900 previously private emails Miller sent to Breitbart editors from March 4, 2015, to June 27, 2016. Miller does not converse along a wide range of topics in the emails. His focus is strikingly narrow – more than 80 percent of the emails Hatewatch reviewed relate to or appear on threads relating to the subjects of race or immigration. Hatewatch made multiple attempts to reach the White House for a comment from Miller about the content of his emails but did not receive any reply. Miller’s perspective on race and immigration across the emails is repetitious. When discussing crime, which he does scores of times, Miller focuses on offenses committed by nonwhites. On immigration, he touches solely on the perspective of severely limiting or ending nonwhite immigration to the United States. Hatewatch was unable to find any examples of Miller writing sympathetically or even in neutral tones about any person who is nonwhite or foreign-born.

This week, I have been mostly reading:

• Food in the Bowl — The Oatmeal by Matthew Inman:
  
• Microeconomic success, macroeconomic failure — Dr Cameron K. Murray: When I teach macroeconomics, I use a dog and bone analogy to demonstrate that the macro-economy is not equivalent to just “adding up” the micro. Let’s see the analogy in action. In the dog and bone economy, ten dogs repeatedly try to find nine bones buried in the yard. Each round, at least one dog misses out. We think that this outcome is undesirable— we can’t have an economy with over 10% dog “bone poverty” and perpetual “dog unemployment”! Some astute dog economists notice that dogs that miss out on a bone are usually a little slower, or have some other traits that make them relatively poor performers. They reason that there is a “skills mismatch” that, if corrected, could solve the macro-economic problems in the dog economy.
• Devin Nunes and the Power of Keyword Signaling — Francesca Tripodi in Wired: When there is limited or no content available on a topic, it’s possible to game search engines to guarantee that certain keywords will be directed to content that includes these terms or is tagged accordingly. This is why conspiracy theorists were able to capitalize on the concept of a “crisis actor.” By producing a plethora of insidious content rife with the term and maximizing SEO, conspiracy theorists filled what Microsoft’s Michael Golebiewski and danah boyd referred to as a “data void.” Searches for “crisis actor” got conspiratorial results until other sources filled the void with more legitimate content debunking the theory.
• Alcohol really is no excuse for bad behaviour – research reveals you’re still the same person after a drink — Kathryn Francis, who writes about it in the Conversation, gave some people the trolley problem and some vodka. Because science!: While alcohol might have impaired the empathy of our participants, it didn’t have an effect on how they judged these moral situations or how they acted in them. If someone chose to push the person off the footbridge in order to save more lives while sober, they did the same thing when drunk. If people refused to sacrifice the person’s life in the same situation because they believed that killing was wrong regardless of the consequences, they also did the same when drunk. It turns out that while we might believe that alcohol changes our personalities, it doesn’t. You’re still the same person after a drink – your existing sense of morality left intact. So while alcohol might affect how we interpret and understand the emotions of other people, we can’t blame our immoral behaviours on alcohol.
• Bloom County 2019 — by Berkeley Breathed: