The government wants to prevent companies from doing health checks on food?

From the AP (Hat Tip, Crunchy Con)……

The Bush administration on Friday urged a federal appeals court to stop meatpackers from testing all their animals for mad cow disease, but a skeptical judge questioned whether the government has that authority.

The government seeks to reverse a lower court ruling that allowed Arkansas City, Kan.-based Creekstone Farms Premium Beef to conduct more comprehensive testing to satisfy demand from overseas customers in Japan and elsewhere.

Less than 1 percent of slaughtered cows are currently tested for the disease under Agriculture Department guidelines. The agency argues that more widespread testing does not guarantee food safety and could result in a false positive that scares consumers.

Why Hizbollah wins and its opponents lose

Abu Muqawama is one of the the blogs that we go to for news on Lebanon. If you are at all interested in what is going on over there, you should read the posts from the last couple of days.

But if that is to much work, just go to this post and scroll to bottom where Abu Muqawama writes….

Tom Perry — friend to both Londonstani and Abu Muqawama — is now reporting for Reuters that Hizbollah/Amal has now taken control over most of Beirut. Oh, if only Abu Muqawama had a nickel for every time an M14 sympathizer swore to him this would never happen. A clue for why it happened might be found in all those pictures of gunmen holding their rifles at the hip, cowboy-style. Great shooting positions, boys!

Look at the picture that he posts next to those words. Then go to this post at Abu Muqawama and look at the picture.

Of course, it is unfair to judge the fighting styles of two different groups just by a couple of pictures. But those pictures back up what people from the region have been saying for a long time.

Economic News of Note

If you don’t read calculated Risk, here are some stories you missed this week…

From Bloomberg:

Consumer credit increased by $15.3 billion for the month to $2.56 trillion, the biggest monthly rise since November, the Federal Reserve said today in Washington. In February, credit rose by $6.5 billion, previously reported as an increase of $5.2 billion.

Again From Bloomberg:….

Vallejo, California, officials voted to file for bankruptcy because the San Francisco suburb isn’t able pay its bills after costs for police and firefighters soared and the housing market’s slide cut into tax revenue.

Pretty soon people are going to be complaining about how the rating agencies rated municipal debt.

From the Wall Street Journal…..

Fannie Mae announced plans to shore up its capital after recording a loss of $2.19 billion for the first quarter and warning that losses stemming from mortgage defaults are likely to be even worse next year.

The government-sponsored provider of funds for home mortgages expects to raise about $6 billion through the sale of common and preferred shares. Regulators have been prodding Fannie and its main rival, Freddie Mac, to bolster their capital to provide more protection against the growing costs of mortgage defaults.

The latest plan comes on top of $7 billion Fannie raised in December …

They are going to need a government bail out before long.

Poem of the Week: 5/4/08 – 5/10/08

All These Things That I’ve Done was a widely popular song when it was released in 2005. Many people still find it to be deeply meaningful. The writer of this blog would an example of the type of people who love it.

What does this say about the people who like the song?

Lots of You Tube videos of the song, but we are not posting any of them because we could not find one that we could stand.

Please note that “silver” refers to the color of the lining, and the actual material may be some other metal or metallic-appearing substance

I spent a considerable portion of the week angry, and in fact woke up angry Monday morning after dreaming about workplace injustices. I don’t care to revisit the details, but, like Western pioneers marking bad water, I will give a brief notice on these ill fortunes. Perhaps when some history has accumulated around these events Click Here to continue reading.

Don't question the Egyptologists

Some heretics have dared to suggest that some of the blocks in the Egyptian pyramids were cast in place with a kind of crude concrete. They are currently being rounded up and shot. You can read all about it in this Boston Globe article.

I am in no position to add anything intelligent to this argument, but this passage from the article really struck me….

Archeologists, however, say there is simply no evidence that the pyramids are built of anything other than huge limestone blocks. Any synthetic material showing up in tests – as it has occasionally, even in work not trying to prove a concrete connection – is probably just slop from “modern” repairs done over the centuries, they say.

This is either really bad reporting or the Archeolgoists have a really weak argument. How can you say out of one side of your mouth that there is no evidence for the opposing camp and out of the other side of your mouth that the evidence “probably” was caused by something else?

Other gems from the article…..

Nearly every prominent Egyptologist is adamant that the pyramids are made solely of giant blocks cut with crude copper or stone tools. They note that proponents of the concrete theory are chemists or materials specialists with little experience at ancient digs – lab researchers, not shovel-wielding field archeologists.

I am all in favor of people who get their hands dirty, but are archeologists really arguing that chemists or materials specialists have no special skills that archeologists do not? Do they really ignore the insights of all the other branches of science?

And one last gem…

Zahi Hawass, head of Egypt’s Supreme Council of Antiquities, minced no words in assailing the concrete idea. “It’s highly stupid,” he said via a spokesman. “The pyramids are made from solid blocks of quarried limestone. To suggest otherwise is idiotic and insulting.”

Now that is my style of arguing.

The US should drop the façade of auctioning off Treasuries

This from Brad Setser’s blog….

Incidentally, the $8.7b in average weekly purchases of Treasuries over the last 8 weeks would – if sustained — be enough to finance a $454b budget deficit without selling a single Treasury bond to private investors. Sometimes I think the US should drop the façade of auctioning off Treasuries and just negotiate private placements with the People’s Bank of China and the Saudi Monetary Agency.

What’s more, all this financing was provided more or less unconditionally, with the United States creditors taking on the risk of future dollar depreciation. Further dollar depreciation against the euro – and, perhaps more importantly, the risk of further dollar depreciation against their own currencies.

It goes without saying that this flow is far, far larger than the $30b or so sovereign funds committed to troubled US financial institutions in December and January ($40b if UBS is considered a US financial institution). Yet it has attracted far less attention.