Experts Gone Wild | ZeroHedge
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Experts Gone Wild | ZeroHedge

Authored by Mike Scanlon via RealClearDefense.com,

An ability to win hearts and minds has long been seen by America’s leadership as essential to domestic and international politics and security.  For much of the Pax Americana, our government and intelligentsia have poured time, effort, and money into studying how to persuade everyone from allies to enemies and, conversely, how to counter an opponent’s influence campaigns. 

But something essential has changed since the rise of President Donald Trump as a political force. 

During the Cold War, President Dwight Eisenhower spoke up against censorship and for lay readers in the wake of an attempt by Senator Joseph McCarthy’s henchmen to eradicate communist books from libraries:

Don’t join the book burners.  Don’t think you are going to conceal faults by concealing evidence that they ever existed.  Don’t be afraid to go in your library and read every book . . . .

How will we defeat communism unless we know what it is, and what it teaches, and why does it have such an appeal for men, why are so many people swearing allegiance to it?  . . .

And we have got to fight it with something better, not try to conceal the thinking of our own people.  They are part of America.  And even if they think ideas that are contrary to ours, their right to say them, their right to record them, and their right to have them at places where they are accessible to others is unquestioned, or it isn’t America.

These days, America’s most educated have grown distrustful of non-experts and their ability to process dangerous ideas

Our elites have launched a campaign to protect the undereducated from themselves. 

That crusade is not going well. 

As Martin Gurri has pointed out time and time again, America’s thought leaders and information curators are on the ropes.  Academics, think tankers, pundits, and policymakers no longer can hide the fact that they often either have no clue what they are doing or are all too willing to oversell their case—and will purposefully obfuscate or outright lie from time to time to get their way.  

Yet most experts are more than happy to pretend as if nothing were wrong as they claw their way up the professional ladder.  Some insist on singing paeans to themselves while demanding ever-greater protection from open competition and even outside criticism.

Take, for instance, the authorities advocating a muscular foreign policy or demanding robust countermeasures against domestic extremism.  The Global War on Terror was not America’s finest hour.  We lost Afghanistan.  It would be difficult to claim victory in Iraq.  The great hopes of the Arab Spring came to naught

But repeated failures did not cause self-doubt to creep into the minds of credentialed militarists of any stripe.  Most continued to insist that the next war would go our way.  Some have even been trying to expand their territory, such as the counterinsurgency specialists who tout their experience in (wildly unsuccessful) campaigns against international extremism and propaganda when marketing themselves as would-be, should-be leaders of the war against domestic extremism and disinformation. 

There was never any reason to assume that the pro-war clique would fare any better if provided yet another opportunity.  And failures have piled on missed opportunities in the Ukraine to the point where security specialists are, once againscrambling to protect the foreign policy establishment by blaming its most recent fiasco on a lack of American commitment to winning what may always have been an unwinnable war.   

The crisis afflicting much of America’s expert class is less that the internet has made it easier for the public to push back, and more that the elite’s preferred models just don’t work.  For instance, many disinformation experts justify censorship with a model positing that malevolent information drives malevolent acts.  Similarly, some domestic terrorism experts justify increased surveillance with a model positing that terrorists broadcast their “terrorist intent” before engaging in acts of terrorism. 

But, even if most people who commit violent acts were exposed to disinformation or made some announcement of terrorist intent, notably lacking is substantial evidence that a significant percentage of the people exposed to disinformation or of the individuals articulating terrorist intent go on to commit violent acts.  In other words, many of our leading domestic security experts seem unwilling or unable to differentiate between a hypothesis and a theory.  This is suboptimal. 

Worse, the smarter-than-thou crowd continues to push for surveillance and censorship despite the glaring problems with their firmly held beliefs about causality and causation.  The proposition that bad ideas lead to bad acts has been “disproven over and over again.”  And even many of the authorities seeking to elevate their profiles by fearmongering about “stochastic terrorism” must admit that the hateful speech in the establishment’s targets is unregulatable under American law.  Unlike “a call to lynch someone when a mob has gathered nearby,” the “use of mass media to provoke random acts of ideologically motivated violence that are statistically predictable but individually unpredictable” just isn’t “advocacy . . .  directed to inciting or producing imminent lawless action and . . . likely to incite or produce such action.”  It can’t meet the standard required for the government to forbid or punish inflammatory speech.

To the extent that America still cares about freedom of speech or other civil libertiesthe surveilandcensor hacks should be laughed off the stage.  Yet the grandees of the so-called “Censorship-Industrial Complex” are overplaying an incredibly weak hand based on what appears to be little more than blind faith that the public isn’t qualified to question the elite.  This is silly; the emperor has no clothes

The collected academic expertise of the anti-disinformation movement proved itself worthless in the real world because disinformation specialists were incapable of preventing the Biden Administration’s Disinformation Governance Board from falling victim to—of all things—a disinformation campaign.  Given the anti-disinformation crowd’s admitted inability to effectively contest disinformation with speech and counter-speech in open competition, the public has every right to question whether the Biden Administration’s “Ministry of Truth” was meant to institute a de facto censorship regime where progressive- or establishment-led media and social media companies would collude with like-minded state actors to suppress populist voices.  

The disinformation that touched off the anti-disinformation crusade—propaganda propounded by the Russian government during the 2016 and 2020 presidential elections—either appears far too ham-handed to be persuasive or seems all but indistinguishable from arguments and assertions made by America’s most highly esteemed progressive identitarians Given the anti-disinformation cult’s penchant for announcing causation rather than proving it, the public has every right to question whether disinformation specialists operate in a fantasy world of just-so stories where fancy academic degrees and enviable job titles can magically transform an “and” (the Russian government tried to interfere with the 2016 presidential election, and Donald Trump won) into a “so” (the Russian government tried to interfere with the 2016 presidential election, so Donald Trump won). 

The social media-based disinformation campaigns initiated by America’s enemies during the ongoing Trump era seem to be as ineffective as the failed social media-based information campaigns launched by America during the Global War on Terror.  Given how disproportionate the elite’s highly publicized panic over disinformation is to the actual threat from disinformation, the public has every right to question whether our leadership is conjuring up sham crises to exert tighter control over a nation that has grown largely unimpressed by even the shiniest of shiny credentials.

Although the stage has been set for a complete collapse of expert rule, it will be difficult for the current crop of experts to save themselves from—of all things—themselves.  The traditional authority system is almost uniquely unfit to deal with the very public failure of conventional models. 

The incentive structure of America’s credential-granting institutions is out of whack.  Expert careers are advanced by appealing to recognized authorities and representatives of wealthy benefactors  or powerful state actors in a more-or-less closed system, which the establishment zealously protects from outside interference

  • Freedom from open competition allows diplomas and job titles to trump the substance of arguments and the abilities of individuals in the cloistered world of experts.  Authorities can take the ostrich defense or declare victory when faced with a threat to their position, so experts often decry dissent while studiously avoiding anything resembling critical engagement with critiques of their work advanced by deplorables or members of the great unwashed. 

  • The need to appeal to recognized authorities stifles innovation.  Up-and-comers are best advised to avoid heterodox approaches, which are liable to offend a patron, and to adopt whatever orthodox approach happens to be favored by their most powerful backer, regardless of the merit of that approach.  Established experts can use the failed experiment that is peer review to prop up their favorite disproved theory, to advance a fashionable narrative, or to snuff out groundbreaking work capable of challenging the orthodoxies upon which their reputations rest.  

  • The authority system even incents experts to exaggerate.  To draw attention in crowded fields or obtain grant money from activist sources, specialists commonly conflate advocacy with analysis, make overly dire predictions, then demand radical measures to avert the impending crises.  And very rarely are experts punished for getting things wrong.  It is therefore reasonable for specialists to stake out the most aggressive position possible, rather than the most accurate or defensible one. 

The expert system has broken down and requires structural reform.  For example, it is as if academia—the crown jewel of the authority system—were designed to be as unfair and inefficient as possible.

  • Despite our knowledge that the “Next Big Thing” tends to be hit upon by someone who is young or new to a discipline and often languishes until the then-dominant cohort of scholars loses control over the field, the tenure system concentrates power and authority in exactly the wrong hands—those of established professors. 

  • The deference afforded to tenured faculty within the American academy not only makes our colleges and universities incredibly hostile environments for truly innovative ideas, but also creates ideal conditions for alpha-sycophants valiant enough to kowtow their way to the top

  • Protecting academic authorities from the consequences of their actions over-incents “brave stands” (by rendering them bravery-free) and allows indefensible arguments to overrun the academy and occasionally leak into the wider world—often to the detriment of the very non-elites whom the scholarly elite purports to represent.

In short, despite all the exhortations by the Spencerians in the mainstream media and other establishment outlets about the need for academics to remain a self-regulating profession, the greatest threats to the advance of learning and to academic freedom come from within the academy and are, at minimum, exacerbated by a system that permits faculty self-governance. 

It’s high time for a round of creative destructionThe non-experts who oversee or fund America’s colleges and universities should consider doing away with tenure and exposing academics to the crucible of competition.  After all, pretty much everyone outside the Ivory Tower realizes that the fairest and most efficient way to deal with the replication crisis in the social sciences is an employment crisis among social scientists

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Originally Posted at; https://www.zerohedge.com//


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Key Battle On Election-Betting Market Heads To Appeals Court

Key Battle On Election-Betting Market Heads To Appeals Court

Key Battle On Election-Betting Market Heads To Appeals Court

Authored by John Haughey via The Epoch Times,

A legal battle over the future of a website’s election prediction market is set to continue on Sept. 19, when an appeals court hears the case of Kalshi v. CFTC, a decision that could reshape how Americans engage in political discourse.

The three-judge U.S. Court of Appeals for the District of Columbia Circuit will be considering whether individuals should be permitted to purchase contracts to participate in predictive markets that trade on the outcome of elections. If so, should these markets be regulated like other financial exchanges and commodity markets or as a form of gambling?

New York-based KalshiEx LLC argues that the elections market section of its website is a derivatives trading platform where participants buy and sell contracts based on projected outcomes of events, such as elections, and should be regulated no differently than grain futures that investors purchase as hedges against price fluctuations.

These markets provide a “public benefit” by gauging public sentiment in real-time, Kalshi maintains, a valuable guide for policymakers, politicians, and pundits in charting the public pulse.

The Commodity Futures Trading Commission (CFTC), which regulates the U.S. derivatives markets, argues that Kalshi’s platform blurs the line between commodity trading and gambling, and should not be viewed the same as futures contracts.

The commission maintains that Kalshi’s market puts it in a position to be a de facto elections regulator, which it is not designed to be. Such contracts provide no “public interest” and, in fact, pose a risk to electoral integrity and could potentially incentivize manipulation and fraud, the CFTC argues.

Those conflicting contentions are the core of what the appellate panel will deliberate on before it decides to lift or sustain its stay on U.S. District Judge Jia Cobb’s Sept. 6 ruling in favor of the platform. Judge Cobbs found that the defendant, CFTC, exceeded its statutory authority as a Wall Street regulator when it issued a September 2023 order stopping Kalshi from going online with its market because it is a “prohibited gambling activity.”

Judge Cobbs on Sept. 12 also denied CFTC’s motion for a stay while it mounts an appeal.

After the initial stay request was rejected, Kalshi wasted little time getting its market online. Attorneys for the CFTC were also busy, and within hours secured a stay from the appeals court, setting the stage for the 2 p.m. Sept. 19 hearing.

In the brief time before trading was paused “pending court process” late Sept. 12, more than 65,000 contracts had been sold on the questions, “Which party will control the House?” and “Which party will control the Senate?

The appellate panel will essentially be engaged in a technical legal debate over the definition of “gaming” and “gambling,” and how they would apply, in this case, to any potential regulation.

In its Sept. 13 filing calling for the stay to be lifted, Kalshi rejected CFTC’s definition that trading on election prediction markets is “gaming.”

“An election is not a game. It is not staged for entertainment or for sport. And, unlike the outcome of a game, the outcome of an election carries vast extrinsic and economic consequences,” it maintains.

The CFTC said in its Sept. 14 filing that because “Kalshi’s contracts involve staking something of value on the outcome of elections, they fall within the ordinary definition of ‘gaming.’”

‘Horse Has Left the Barn’

Regardless of how the panel rules, “The horse has left the barn,” said data consultant Mick Bransfield, of Pittsburgh, Pennsylvania, who trades on Kalshi’s website and purchased a “Senate control” contract.

There are ample opportunities to place election wagers on offshore websites such as New Zealand-based PredictIt, which imposes strict spending limits; on websites such as Polymarket, a New York-based platform that cannot legally accept wagers from within the United States; or the American Civics Exchange, where businesses and high net worth individuals can purchase “binary derivative contracts” through proxies tied to policy and electoral outcomes as hedges against “unpredictable electoral, legislative, and regulatory events.”

Predictit.org/Screenshot via The Epoch Times

“Elections predictive markets have been around since 1988 in the United States,” Bransfield told The Epoch Times, adding that the issue is “more nuanced than people realize.”

That nuance, said Carl Allen, author of The Polls Weren’t Wrong, is that Kalshi’s platform would be the first federally regulated U.S.-based predictive elections market open to all individuals without spending limits.

“To me, the question is not should it be regulated, the question is how? I think that is where we are,” Allen, who writes about predictive markets on substack, told The Epoch Times.

“It’s challenging to get your arms around this because there are so many organizations involved with it,” he said. “We’re reaching a really interesting point with sports betting going from totally disallowed, except for in Vegas and a few brick-and-mortar [stores], to being everywhere; crypto currency drastically growing; ETFs [Exchange-Traded Funds] getting big;” and Kashi attempting to open a predictive market on election outcomes.

Prediction market trader and Kalshi community manager Jonathan Zubkoff, who also writes about predictive markets and wagering, said the CFTC’s claim that elections markets are betting websites is mistaken.

“It’s not the same as sports betting” where there is “a line posted and billions of dollars are traded against it across different time zones,” prompting the odds to fluctuate, he told The Epoch Times.

“If you are looking at a line [to bet] on a Friday night for a Sunday game, there’s no hedge whatsoever.”

In elections markets, “there actually is a hedge” that gives people an opportunity to put money where “their bias is,” Zubkoff said.

Coalition For Political Forecasting Executive Director Pratik Chougule said another difference between sports betting and other types of gambling and predictive elections markets is that “unlike many other forms of speculation, the wagering here has a real public interest benefit. These markets inform in a way that is very beneficial.”

In October 2023, Chougule told The Epoch Times that elections markets reflect predictive science, citing numerous studies documenting that political betting websites are better indicators of public sentiment than any other measure except the election results themselves, including a study by Professor David Rothschild of the University of Pennsylvania’s Wharton School of Business.

“Polling is very unreliable,” he said. “And so we basically believe that, in order to promote good forecasting for the public interest, we believe that political betting is one solution to that because, at the end of the day when you have people wagering their own money on the line, that creates incentives that are very hard to replicate through other ways.”

Chougule, who hosts the podcast Star Spangled Gamblers, believes that, while not always accurate, election predictive markets are the best gauge of public sentiment in real-time.

“When they make a prediction, they are putting their money on the line,” he said. “It’s a pretty clear barometer of how an election is going.”

‘Gray Area’ Needs Rules

Chougule said he was “pessimistic” that Kalshi’s elections market would be online by Nov. 5.

“I think when you look at the landscape at the federal and state level, at Congress, at federal agencies, [there is] fear and skepticism and concern about what widespread elections betting could mean for our democratic institutions,” he said. “I don’t agree but it’s a fact.”

Bransfield said he was surprised by Cobb’s ruling against the regulators. “It did not seem the district court would side with Kalshi after the oral arguments in May,” he said. “The judge referred to elections contracts as ‘icky.’ That gave me the assumption that it would be unpalatable to her.”

But there is reason to be deliberative, Bransfield said.

“We should always be concerned about the integrity of our elections but these elections contracts have been around for so long,” he said, noting that more than $1 billion in 2024 U.S. elections contracts have already been purchased in the United Kingdom alone. “All those concerns already exist and have for a long time.”

Certainly, Allen said, “there are a lot of downstream effects that we are going to see from this,” but some fears are unfounded.

Unlike a sports contest where one player can affect the outcome, it would take a widespread concerted effort to “fix” an election, he said. Nevertheless, there is “potential for unscrupulous actors to release a hot tip” that could affect predictive markets.

Allen cited speculation about when former South Carolina Gov. Nikki Haley would end her presidential campaign during the Republican primaries, whether Robert F. Kennedy would pull the plug on his independent presidential campaign, and who both parties would pick as their vice presidential candidates as examples.

“A handful of people knew about [vice president picks] before it was public. It would be financially beneficial for someone to throw a couple [of] thousand dollars into that market,” he said.

Prime Minister Rishi Sunak (C) and his wife Akshata Murty (in yellow) at the launch of the Conservative Party general election manifesto at Silverstone race track in Northamptonshire, England, on June 11, 2024. James Manning/PA

The CFTC, in its challenge, noted that bets had been placed on the July 4 British general election date before Prime Minister Rishi Sunak officially announced it in May.

“It is very hard to see this gray area without some rules,” Allen said.

“Claiming that betting in elections is going to lead to issues with democracy and election integrity is one of the most ridiculous things I ever heard,” Zubkoff said, calling them “elections integrity dog whistles.”

Critics “are sort of lashing out,” he continued.

“It is a total misunderstanding. As someone who has traded in these markets, I haven’t seen anything that remotely constitutes a threat” to election integrity.

Zubkoff said Kalshi “very clearly has the better arguments” and cited the Supreme Court’s Chevron repeal as momentum that “bodes well for the future” of predictive elections markets.

He believes the appellate court will deny CFTC’s motion to extend the stay, and placed the odds of Kalshi getting a “yes” to go online before November’s elections at 60 percent.

Zubkoff noted that just like predictive elections markets, those odds could change in real-time during the hearing. “I could give you much better odds while listening to the hearing just based on the questions the judges ask,” he said.

Allen said the odds are “better than 60-40” that Kalshi will win its case, before qualifying that prediction with the ultimate hedge: “I don’t know how much money I would put on that.”

Tyler Durden
Thu, 09/19/2024 – 09:30

Lebanon PM urges UN to take firm stance over Israel's 'technological war'

Lebanon PM urges UN to take firm stance over Israel’s ‘technological war’

Lebanon’s Prime Minister called Thursday for the United Nations to oppose Israel’s “technological war” on his country ahead of a Security Council meeting on exploding devices used by Hezbollah that killed 32 people. Najib Mikati said in a statement the UN Security Council meeting on Friday should “take a firm stance to stop the Israeli […]

The post Lebanon PM urges UN to take firm stance over Israel’s ‘technological war’ appeared first on Insider Paper.

Russia's Shadow Fleet Is A Ticking Geopolitical Timebomb

Russia’s Shadow Fleet Is A Ticking Geopolitical Timebomb

Russia’s Shadow Fleet Is A Ticking Geopolitical Timebomb

Authored by Antonio Garcia via OilPrice.com,

  • Despite Western sanctions and oil price caps, Russia continues to use an aging “shadow fleet” of tankers to circumvent restrictions, allowing for stable oil exports.

  • Russian oil is now primarily heading to ‘friendly markets’ like China, India, and Turkey.

In response to Russia’s full-scale invasion of Ukraine in February 2022, the European Union and several other Western countries imposed extensive sanctions on Russia, attempting to stop the trade of Russian oil. In December 2022, the G7 countries decided on an oil price cap. However, Russia has found ways to circumvent these sanctions, primarily through the creation of a “shadow fleet” of oil tankers.

Despite robust US Treasury sanctions targeting the shadow fleet, Russia continues to expand it by incorporating new tankers, allowing for stable exports and further evasion of oil price caps. Only 36% of Russian oil exports were shipped by IG-insured tankers. For other shipments, Russia utilized its shadow fleet, which was responsible for exports of ~2.8 mb/d of crude and 1.1 mb/d of oil products in March 2024.

Kpler data shows that in April 2024, 83% of crude oil and 46% of petroleum products were shipped on shadow tankers. The shrinking role of the mainstream fleet fundamentally undermines the leverage of the price cap.

The shadow fleet is a collection of aging and often poorly maintained vessels with unclear ownership structures and lack of insurance. The number of old, outdated ships departing from Russia has increased dramatically. The EU has recently introduced legislation aimed at cracking down on the sale of mainstream tankers into the Russian shadow trade, but the problem persists. Russia managed to expand its shadow tanker fleet, adding 35 new tankers to replace 41 tankers added to OFAC’s SDN list since December 2023. These tankers, all over 15 years old, are managed outside the EU/G7. With 85% of the tankers aged over 15 years, the risk of oil spills at sea is heightened.

The shadow fleet poses a significant and rising threat to the environment. The aging and underinsured vessels increase the risk of oil spills, a potential catastrophe for which Russia would likely refuse to pay. The vessels can cause collisions, leak oil, malfunction, or even sink, posing a threat to other ships, water, and marine life. With estimates suggesting over 1,400 ships have defected to the dark side serving Russia, the potential for environmental damage is substantial. For instance, since the beginning of 2022, 230 shadow fleet tankers have transported Russian crude oil through the Danish straits on 741 occasions. Also, a shadow fleet tanker on its way to load crude in Russia collided with another ship in the strait between Denmark and Sweden. Last year, a fully loaded oil tanker lost propulsion and drifted off the Danish island of Langeland for six hours. Recovery after any potential oil spill could take decades.

Added to the environmental issue, seaborne Russian oil is almost entirely heading to the Asian markets, with India, China, and Turkey being the biggest buyers. In 2023, 86% of oil exports went to friendly countries compared to 40% in 2021, and 84% of petroleum product exports compared to 30% in 2021. This shift in export destinations highlights the changing geopolitical landscape of the oil market due to the sanctions and the rise of the shadow fleet.

Several measures have been proposed to address the challenges posed by the shadow fleet. These include stricter sanctions on individual vessels, increased scrutiny of financial institutions involved in Russian oil deals, and fines that would limit sales or decommission tankers. The G7 countries are taking measures to tighten control over the price cap and further pressure Russia. The US has introduced a series of sanctions against ships and shipowners suspected of violating the price cap. However, concerns remain that these measures could lead to higher energy prices and escalate tensions with Russia. The Danish foreign ministry has stated that “The Russian shadow fleet is an international problem that requires international solutions.”

The shadow fleet has allowed Russia to circumvent Western sanctions and continue profiting from its oil exports, but it has come at a significant cost. The environmental risks posed by these aging and poorly maintained vessels are alarming, and the shift in oil trade patterns is reshaping the geopolitical landscape. Addressing this complex issue will require concerted international efforts and a delicate balance between maintaining sanctions and ensuring stable energy markets. The situation is unsustainable, and the need for action is becoming increasingly urgent.

Tyler Durden
Thu, 09/19/2024 – 03:30

North Korea claims it tested ballistic missile with 'super-large' warhead

North Korea claims it tested ballistic missile with ‘super-large’ warhead

North Korea claimed Thursday that its latest weapons test had been of a tactical ballistic missile capable of carrying a “super-large” warhead, and a strategic cruise missile, state media reported. Leader Kim Jong Un “guided the test-fires”, the official Korean Central News Agency said, of the “new-type tactical ballistic missile Hwasongpho-11-Da-4.5 and an improved strategic […]

The post North Korea claims it tested ballistic missile with ‘super-large’ warhead appeared first on Insider Paper.