Bitcoin Update

Bitcoin cashes in as its first ATM opens in Vancouver

Virtual currency takes another step towards the mainstream as easy-to-use machine opens in Canadian coffee shop

theguardian.com, Wednesday 30 October 2013 08.23 EDT

A silver and blue ATM, perched up next to the espresso bar in a trendy Vancouver coffee shop, could launch a new era for the virtual currency bitcoin, offering an almost instant way to exchange the world’s leading virtual money for cash.

The value of a bitcoin soared from $13 in January to a high of $266 in April as more businesses and consumers used them to buy and sell online. Some investors are also treating bitcoins like gold, using them to hedge against currency fluctuations and speculating on their rise.

The kiosk, which looks like the average ATM but with hand and barcode scanners, opened for business on Tuesday and by mid-morning people were lined up to swap their bitcoins for cash, or to deposit cash to buy more bitcoins.

“It’s as easy as walking up to a machine, scanning your hand, entering some cash and buying bitcoin,” said Jordan Kelley, chief executive of Las Vegas-based Robocoin, the company that builds the ATMs. “With this, it’s a 2-minute process. For any online exchange, it’s at least two days.”

Bitcoins, currently worth about $210 each, can be transferred without going through banks or clearing houses, thereby cutting fees. Users can buy products and services online or in a handful of stores, including the Waves coffee shop where the ATM is located.

With the bitcoin ATM, users scan their hand to confirm identity, then funds move to or from a virtual wallet on their smartphone. The system limits transfers to $1,000 a day, in an effort to curb money laundering and other fraud.

Bitcoiniacs, the local dealer that operates the ATM, will roll out four other kiosks across Canada in December. Robocoin said Canada was the ideal place to launch the kiosk due to a critical mass of users and less stringent oversight than in the US, where the bitcoin trade is monitored by anti-money laundering regulators.

“We think the Vancouver market is enormous and we’re excited to be here,” said Kelley. “By the end of 2013, we’ll be all over Canada. By the end of 2014, we’ll be all over the world, including the US.”

Bitcoin is not a recognised currency in Canada, so Ottawa’s anti-money laundering watchdog, the Financial Transactions and Reports Analysis Centre, does not monitor its trade.

However, Bitcoiniacs’ founders say they are working with the agency to be ready for when Canada does start regulating them.

“We’re already being proactive in our business,” said Bitcoiniacs co-founder Mitchell Demeter. “We abide by any guidelines they would impose – which includes the ‘know your customer’ laws and anti-money laundering laws.”
Going mainstream

Bitcoins were launched in 2008 and are traded within a global network of computers. They are not backed by a single company or government, but their release is tightly controlled, mimicking a central banking system’s control over the minting of money.

Bitcoins can be bought with near anonymity, which supporters say lowers fraud risk and increases privacy. But critics say that also makes bitcoins a magnet for drug transactions, money-laundering and other illegal activities.

The currency’s reputation took a hit this month, when US regulators shut down Silk Road, an online marketplace used to buy and sell illegal drugs, and seized $3.6m (£2.3m) in bitcoins.

But the virtual currency is gaining hold among businesses and consumers, a key step to a bigger role.

“I think it’s definitely going mainstream,” said Demeter. “I think as things progress, and the infrastructure is built, it will become easier for people to buy and sell, and so more people will start using it.”

In Vancouver, for example, dozens of people attend weekly bitcoin meet-ups and a member co-op is promoting the currency to a growing list of local retailers.

At Waves, Vancouver resident Chung Cheong used bitcoin to pay for his mug of tea and was happy to mull over the future of the digital currency.

“It’s been said that we’re at the stage where email was in 1992,” he said. “Is it risky? Sure. But look at how the internet and email changed the world.”

My Mother Used to Say the Same Thing About Home Designers; She was Right

We Need More Women in Tech: The Data Prove It
Male dominance in the field is bad for women, and bad for the industry, as well.

DEREK KHANNAOCT 29 2013, 3:52 PM ET

CEOs Steve Ballmer of Microsoft, Stephen Elop of Nokia, and Ralph de la Vega of AT&T Mobility at the 2012 Consumer Electronics Show in Las Vegas (Reuters)
Across the technology sector there is a major disparity between men and women.

While 57 percent of occupations in the workforce are held by women, in computing occupations that figure is only 25 percent. Of chief information officer jobs (CIOs) at Fortune 250 companies, 20 percent were held by a woman in 2012.

Unfortunately, this is not merely a temporary blip, as this disparity is present at the college level. In 2010, although 57 percent of undergraduate degree recipients were female, but only 14 percent of the computer science degrees at major research universities. Incredibly, this number has actually fallen in recent years: In 1985, 37 percent of undergraduates degree recipients in computer science were women. Today, just 0.4 percent of female college freshmen say they intend to major in computer science—an astoundingly low number.

Looking to the data from high schoolers, the disparity is still extreme. While 56 percent of Advanced Placement test-takers were female, only 19 percent of test-takers on the AP Computer Science test were. At the Intel International Science and Engineering Fair (Intel ISEF), one of the world’s largest pre-college sciences competitions with more than $4,000,000 in awards, only 17 percent of 2011 finalists in computer science were young women.

This is Bad for Tech

This disparity hurts the technology companies themselves.

First, if half of the users of technology products and websites are women, then one would think that having women not just on staff, but in positions of leadership to define future directions for the company, is in their direct pecuniary interest. According to a recent study by Delloite:

Research shows that [women’s] choices impact up to 85 percent of purchasing decisions. By some analyses, they account for $4.3 trillion of total U.S. consumer spending of $5.9 trillion, making women the largest single economic force not just in the United States, but in the world.

According to a report by Parks Associates, more women than men are downloading movies and music; women do the majority of game-playing across some platforms; and women have higher “purchase intentions” than men do when it comes to some electronics.

To be clear, this is not to say that every women in a technology company is an expert in how to create products for women—that is absurd—but certainly technology companies could benefit from an understanding of the perspectives and needs of the “largest single economic force” in the world.

Further, there have been several empirical studies finding that “people with more diverse sources of information generated consistently better ideas.” Walmart, not a technology company, has explained, “Diverse teams often outperform teams composed of the very best individuals, because this diversity of perspective and problem-solving approach trumps individual ability.”

Facebook’s COO, Sheryl Sandberg, and Yahoo’s CEO, Marissa Meyer, have demonstrated that women can be a driving force for innovation and ideas in technology.

This Is Bad for Women

According to research from the Kauffman Foundation, increasing numbers of jobs are coming from the high-tech sector.

The Kauffman report found that during the past three decades, the high-tech sector was 23 percent more likely than the economy as a whole to witness a new business formation. And the information and communications technology (ICT) sector was 48 percent more likely. High-tech firm births were 69 percent higher, and for ICT 210 percent higher, in 2011 as compared with 1980.

While older and larger firms are a major source of employment, the report found that it is “new and young businesses that are the primary sources of net new jobs.” In fact, outside of new businesses, job creation in the United States has been negative over the past three decades. As of 2012, U.S. tech employment totals 5.95 million.

And these are good, high-paying jobs. The tech industry pays an annual wage of $93,800 (as of 2012), which is 98 percent more than the average private sector wage. In some states like California and Massachusetts, it’s significantly higher, with $123,900 and $116,000, respectively. There are expected to be 1.4 million job openings for computer specialists by 2020. One would hope that women would be eligible for more than 25 percent of these future high-paying job openings.

The computing industry is one of the fastest-growing industries in the U.S., and in the past year there was a 3.5 percent increase in software services jobs, vastly outpacing population growth of 0.9 percent. There are so many open jobs in the technology sector that many technology companies are unable to fill current openings. They worry about expanding in the future and being able to fill future needs. At current graduation rates, only 30 percent of the jobs created by 2020 can be filled with U.S. computing graduates.

How Do We Fix It?

There are many theories on why there are not more woman in the technology sector. It is likely that many woman haven’t considered a career in technology to begin with. In one study, a market research firm asked teenagers whether they’d consider a career in technology—and 63 percent said they hadn’t even considered it. This data point on teenagers overall is likely particularly on-point for women. One of Microsoft’s vice presidents, Cindy Bates, explains that “we need to do a better job of exposing women to technology-related jobs.”

Harvey Mudd’s president, Maria Klawe, compiled her own research and concluded:

We’ve done lots of research on why young women don’t choose tech careers and number one is they think it’s not interesting. Number two, they think they wouldn’t be good at it. Number three, they think they will be working with a number of people that they just wouldn’t feel comfortable or happy working alongside.

Each of these issues can be addressed.

More from the Great Americans of the Tea Party

GOP Precinct Chairman Says Voter ID Will Hurt “Lazy Blacks,” Then Resigns

By David Weigel
169643319 Daily Show correspondent Aasif Mandvi is one suave scooper.

Interloping out-of-state reporters have been irritating North Carolina all year, by visiting the state to write about the effects of its new, Republican-backed voter laws. The Daily Show sent Aasif Mandvi down to do a segment similar to the ones Rachel Maddow had been doing, focusing on one of the liberal cities (Asheville) where young blacks and college students expected to be hurt by the law. Mandvi sat down with Don Yelton, a GOP precinct chairman who’d tangled with his own party before. A perfect source who revealed himself to be better than perfect.

Yelton has resigned, after one short day of trying to spin away his comments. They were, according to the Buncombe County party chairman, “offensive, uniformed and unacceptable of any member within the Republican Party.”

They’ll also have a long tail. I covered the 2012 legal battle over Pennsylvania’s new voter ID law. One of the stronger pieces of evidence for the plaintiffs was House Majority Leader Mike Turzai’s on-camera admission that the law would “allow Gov. Romney to win the state of Pennsylvania.” The most damaging thing Yelton says in this tape isn’t the line about “lazy blacks,” but the line about how the law will be de facto bad for Democrats.

David Weigel is a Slate political reporter. You can reach him at daveweigel@gmail.com, or tweet at him @daveweigel.

Fracking Update

Europe Taking a Pass on Shale Revolution?
By Daniel J. Graeber | Tue, 22 October 2013 22:00 | 0

U.S. supermajor Chevron last week halted work on an exploration well in the Romanian town of Pungesti after protesters rallied in opposition of hydraulic fracturing. The company had only secured the rights to explore in three areas near the Black Sea earlier this year, just months after a fracking moratorium was lifted. Romania, like many of its neighbors in Eastern Europe, may have enough natural gas locked in shale deposits to meet domestic demand for more than 100 years. The European Union said it was mindful of the shale natural gas phenomenon in the United States but needs to remain committed to its long-term goals of a future less dependent on fossil fuels.

Chevron suspended plans to look for natural gas in eastern Romania last week. Romania, like many others in the region, is looking for a way to become more self-reliant in an energy sector dominated for years by Russian energy company Gazprom.
Select the reports you are interested in:
Who Will be the Big Winners in the Coming LNG Bonanza
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Related article: Saudi Arabia to Use Shale Gas for Domestic Power Generation

A study of the shale natural gas potential outside the United States by the U.S. Energy Information Administration found Romania holds 51 trillion cubic feet of technically recoverable reserves. A moratorium on shale exploration ended in December though concerns over fracking may cloud the country’s immediate natural gas future.

High-profile protests against Cuadrilla Resources earlier this year brought the European shale debate to the forefront of the discussion over Europe’s energy future. Cuadrilla’s Chief Executive Officer Francis Egan stressed there were understandable environmental concerns associated with fracking but said the benefits of shale exploration would soon become “crystal clear.”

Janez Potocnik, European commissioner for the environment, said at a Monday conference on shale natural gas in London, however, that the long-term verdict wasn’t yet determined.

“New sources of gas, such as from shale, are attractive,” he said. “But we should not forget that shale gas is a fossil fuel and that our ultimate goal is a carbon-free society, which will require the development and support of renewable energies.”

Related article: Investment Opportunities Arise as Majors Rush to Invest in Canadas LNG Potential

Potocnik said that, while member states like Romania have a right to determine their own energy mix, they’ve also agreed to joint policies for the European future. By 2020, member states need to cut CO2 emissions, increase the share of renewables and increase energy efficiency by 20 percent against a 1990s benchmark. To avoid dramatic increases in temperature over the long term, the commissioner said EU members needs to cut their CO2 emissions by as much as 95 percent by 2050. Though some countries are doing better on specific benchmarks, no member is within site of the 2020 goalpost, however.

“Whether shale gas becomes a success story in Europe or not, whether it is profitable or not, we need to remain consistent with our long term strategy of a low carbon, resource-efficient economy,” he said. “Just as we must do everything necessary to sustain and improve our global European competitiveness, we must also do everything necessary to live within the limits of our planet.”

By. Daniel J. Graeber of Oilprice.com

Finally Something Good from a Telecom Company

WHY A.T. & T. IS TALKING ABOUT TEXTING AND DRIVING
POSTED BY IAN CROUCH

The thirty-five-minute documentary “From One Second to the Next,” directed by Werner Herzog and released online by the four largest mobile carriers in the United States, opens with an image of an empty hand. It belongs to a young woman whose brother, Xzavier, was struck by a car driven by someone who, absorbed in a text message, ran through a four-way stop. Xzavier was paralyzed from the neck down, and now must use a ventilator to breathe. In another scene, a young man with startling blue eyes tells the camera, “This was the last text message I sent before I caused an accident that killed three people.” The words “I love you” flash on the screen. He was texting his girlfriend when he accidentally ran down an Amish buggy on the side of the road in Indiana.

The film is gentle to the people whose stories it tells, whether they are victims or perpetrators. Above all, it expresses a skepticism about the value of technological connectedness. “It’s just nuts, it’s crazy,” says a truck driver who hit a car that was pushed into his lane by another texting driver, about the popularity of sending messages from behind the wheel. And then, in the film’s final line: “I don’t know why people don’t want to talk to each other, anyway.”

That is a jolting takeaway for a public-service announcement funded by companies that sell texting services and data plans. The film is as much a critique of American culture as it is an imperative to exercise restraint on the road. Herzog’s involvement, and the powerful ideas he explores, has given the documentary credibility. It has also brought attention to an industry-wide corporate social-marketing campaign called It Can Wait, which was launched by A.T. & T. in 2010 and, in 2012, attracted the support of Sprint, T-Mobile, and Verizon. The campaign has worked to keep people in their teens and early twenties from texting while driving by using national advertising, celebrity testimonials, and demonstrations in schools across the country, and social-media tools like a no-texting Facebook pledge and a designated hashtag on Twitter. The goal of the program, Marissa Shorenstein, the president of A.T. & T.’s New York office, told me, is to “get to the point where texting and driving is as unacceptable as drinking and driving.”

Texting—or e-mailing, tweeting, or Web surfing—while driving causes thousands of accidents a year, though it is hard to determine a precise number. The National Highway Transportation Safety Administration put the number of accidents caused by what it calls “distracted driving”—which includes talking on the phone, fiddling with the radio, putting on makeup, etc.—at three hundred and eighty-seven thousand in 2011, the most recent year for which these statistics have been compiled. Some percentage of this distraction is caused by texting; a recent study by the University of Washington that captured images at intersections found that half of distracted drivers were seen sending texts or otherwise typing on their phones.

Texting while driving is not only manifestly dangerous; in forty-one states, it is also illegal. But it is difficult to monitor, police, and punish. In study after study, an overwhelming majority of people say that they know it is irresponsible and dangerous, yet do it anyway. According to figures from a 2011 study by the Centers for Disease Control and Prevention, thirty-one per cent of adults have admitted to texting and driving. (Other surveys have put that figure higher, and because of the stigma attached to it these self-reported numbers are probably low.)

A cell phone or a mobile network is not, in itself, a dangerous thing. And yet the nation’s wireless carriers have reason to be concerned about texting and driving, from an ethical and a business standpoint, because their networks carry our messages and enable our compulsion to be constantly reachable. Every news story about a traffic fatality caused by texting, and every image of mangled cars or flashing ambulance lights, reminds consumers about the device at the accident’s center.

Still, when we go looking for people to blame, the search ends pretty quickly: it seems that many of us believe the responsibility lies with those using their phones at the wheel and no one else. Lawsuits by accident victims or their families against mobile carriers or device makers have gained little traction in the judicial system, which may reflect a wider cultural sentiment: few of us would be inclined to blame these accidents on Apple or Samsung or Verizon or A.T. & T. the way we draw connections between, for instance, cigarette producers and victims of lung cancer or kids with asthma. That’s because, unlike cigarettes, there is a safe way to use cell phones and mobile networks.

And yet, rather than distancing themselves from the dangers of distracted driving, or waiting for pressure to mount from outsiders, the major national carriers, led by A.T. & T., have become the loudest and most coherent voices on the issue. And so, when we think about texting and driving, we think of them.

I asked Marissa Shorenstein why A.T. & T. had decided to create an initiative that, at least indirectly, highlights the position of wireless companies in the problem. Had A.T. & T. been compelled by outside forces to address the issue? “There was no pressure on the company,” she said. “Wireless technology is relatively new, and we had noticed over several years that texting had become increasingly abused in terms of driving. We felt strongly that it was our responsibility as an industry leader to insure that our devices are being used safely and properly.” Shorenstein makes an important distinction: texting while driving is not a natural result of constant connectedness but a misuse of cell phones.

A.T. & T. has introduced DriveMode, an app for Android and BlackBerry devices (though not iPhones) that sends an automatic-reply message if the driver receives a text or e-mail when travelling at more than twenty-five miles an hour, the idea being that users want to appear present to their contacts rather than seeming to ignore them. When the car slows below twenty-five miles an hour for five minutes, the app shuts off. (There are also other third-party apps that either block outgoing texts or send similar auto replies.)

Shorenstein said the anti-texting campaign has become the company’s second biggest social-action project, after its grant program for high-school education. She didn’t offer an exact figure, but told me that the company had spent millions of dollars on it over the past four years. Recently, Verizon, Sprint, and T-Mobile have signed on, as well—but the campaign is still most closely associated with its creator. A.T. & T. handles press and is using its connections with schools to distribute the Herzog documentary. A Google search for the phrase “It Can Wait” mostly returns results for A.T. & T.-sponsored pages, and the videos on the campaign’s home page feature the company’s logo in the top-right corner. This summer, many stories about the Herzog documentary failed to mention the other mobile carriers at all.

Is It Can Wait working? It remains to be seen whether the campaign can convince drivers to keep their hands on the wheel and their eyes on the road. For years, government agencies and transportation-safety groups have tried a combination of awareness campaigns and stricter laws to compel drivers to slow down or wear their seat belts. But this kind of behavior modification is tough to pull off, and many psychologists have argued that people require more tangible incentives to make these kinds of changes—for example, rewards system similar to the lowered insurance rates offered by State Farm to young drivers who submit a driving log, or by Geico to customers willing to take a defensive-driving course. A plea to stop texting may be emotionally powerful, but it might not be enough.

Another question is whether the campaign has been good for A.T. & T.’s business. That, too, is difficult to judge. The campaign certainly connects A.T. & T. with personal responsibility and safety. And by focussing the program on teens, A.T. & T. has made early brand connections with young people while also appealing to concerned parents, who are often the ones paying the cell-phone bills. It Can Wait has attracted wide and positive press coverage, too. In August, the Times published an editorial about the Herzog documentary, writing that “the project sets a high standard for how corporations can educate the public.”

The effect on consumer attitudes toward A.T. & T. is harder to gauge. Since the inception of the program, in 2010, A.T. & T.’s ranking on Fortune’s annual list of the most admired companies has held mostly steady, showing no sign of a spike in goodwill from consumers. There is a long history of survey-based evidence that an association with charitable causes can improve a brand’s image among consumers. Cone Communications, a Boston-based P.R. company, has been tracking this for twenty years; in its 2013 report, it noted that eighty-nine per cent of respondents to an online survey said that they would be “likely to switch brands to one associated with a cause, given comparable price and quality.” (The Cone study, like ones performed other marketing firms, asked broad questions and defined cause-marketing in extremely positive terms—as “companies changing their business practices and giving their support to help address the social and environmental issues the world faces today”—which may have influenced respondents’ answers.)

Peer-reviewed academic studies in which subjects were asked to talk about brand preferences in a lab setting have also shown that people will rate a brand engaged in social causes more favorably, especially if those consumers identify closely with the cause itself. A 2012 study by Sean Blair and Alexander Chernev, at the Kellogg School of Management, found that test subjects who were told that a winemaker donated part of its profits to charity rated that wine more favorably, on average, than another group of similar consumers who did not receive that information.

It is less clear, however, whether this positive feeling translates to financial returns. In the second quarter of 2013, A.T. & T.’s share of the American wireless market shrunk to 26.5 per cent, down from 28.4 per cent in the same period last year, according to Kantar, a global market-research company. The It Can Wait campaign isn’t likely to have hurt A.T. & T.’s market share, but it also doesn’t appear to have helped it enough to make up for other challenges to the company. A 2013 study, also from Kellogg, found that companies spend more on social-cause campaigns than they earn back in increased profits.

And there is another question, which relates to the “fit” of a particular campaign. One might assume that consumers respond most positively to social-marketing efforts that seem related to a company’s business: the outdoor-clothing manufacturer Timberland’s ongoing campaign to plant five million trees, for example, or Budweiser’s flying a blimp with the words “Designate a Driver” across the country this summer. But, in a 2006 experiment, researchers found no evidence that this is the case. In fact, they argued, a too-obvious association might spark suspicion among consumers of corporate self-interest.

Maybe this matters less to A.T. & T. than the cynics among us might expect. Shorenstein said the company is only trying to make sure people use their devices properly. By corralling competing mobile carriers under the It Can Wait umbrella, A.T. & T. has ceded some control of the campaign that it pioneered, suggesting that it views solving the problem as more important than being seen as the sole problem-solver. Meanwhile, A.T. & T.’s message seems to be catching on. A few weeks ago, New York Governor Andrew Cuomo unveiled a new anti-texting initiative for the state’s major highways. Rest stops and commuter parking areas will be rebranded as “texting zones,” where drivers can pull off the road to respond to messages. At the announcement, on a large, blue highway sign behind Cuomo, were the words: “IT CAN WAIT—TEXT STOP 5 MILES.”

Being a First Born, I Could Have Told Them This Without a Study

First Children Are Smarter—but Why?
One mysterious finding—and seven theories

Derek Thompson Oct 21 2013, 11:19 AM ET

“Those born earlier perform better in school”—and according to a new study, it’s because of the parents.

Moms and dads simply go easy on their later-born kids, according to data analyzed by economists V. Joseph Hotz and Juan Pantano, and as a result, first-born children tend to receive both the best parenting and the best grades.

The first thing to say about a study like this is that lots of readers will reflexively disagree with the assumption. With kids, as with anything, shouldn’t practice make perfect? Don’t parents get richer into their 30s and 40s, providing for better child-rearing resources? I’m a first child, myself, well-known within the family for being unorganized, forgetful, periodically disheveled, and persistently caught day-dreaming in the middle of conversations. For this reason, I’ve put stock in what you might call the First Pancake Theory of Parenting. In short: First pancakes tend to come out a little funny, and, well, so did I. And so do many first-borns.

But international surveys of birth orders and behavior (which might have offered me an empirical excuse to behave this way) aren’t doing me any favors. First borns around the world, it turns out, have higher IQs, perform better in school, and are considered more accomplished by their parents. Looking at parent evaluations of children from the National Longitudinal Survey of Youth in 1979, the researchers found that mothers are much more likely to see their first children as high-achievers. They regard their subsequent children as considerably more average in their class (see table and chart below).

Let’s briefly count off and nickname some of the leading older-kids-are-smarter theories reviewed by the economists, which push back against the principle of first pancakes.

1) The Divided-Attention Theory: Earlier-born siblings enjoy more time, care and attention than later-born siblings because attention is divided between fewer kids.

2) The Bad-Genes Theory: The strong evidence of higher IQs among first children leads some to believe that later kids are receiving diminished “genetic endowment.”

3) The I’ve-Had-It-With-Kids! Theory: Some parents decide to stop having more children after a difficult experience raising one. In that case, the poorer performance of later children isn’t genetic, so much as selection bias: Some parents keep having children until they have one that’s so problematic it makes them say “enough.”

4) The No-One-to-Teach Theory: This is the idea that older siblings benefit from the ability to teach their younger brothers and sisters. Building these teaching skills helps them build learning skills that makes them better in school.

5) The Divorce Theory: Family crises like divorce are far more likely to happen after the first child in born (first marriage, then divorce, then a first child is not a common sequence) and they can disrupt later kids’ upbringing.

6) The Lazy-Parent Theory: The general idea here is that first-time parents, scared of messing up their new human, commit to memory the first chapter of Battle Hymn of the Tiger Mother but by the second or third child, they’ve majorly chilled out.

Hotz and Pantano settle close to Theory (6). Parents are more likely to make strict rules (about, e.g., TV-watching) and be intimately involved in the academic performance of their first children, according to survey data. They’re also more likely to punish their first child’s bad grades. Hotz and Pantano say moms and dads start tough and go soft to establish a “reputation” within their household for being strict—a reputation they hope will trickle down to the younger siblings who will be too respectful to misbehave later on.

The theory is interesting but not entirely persuasive. First it seems nearly-impossible to test. The survey data is much better at showing that parents chill out as they have more kids than at showing that parents chill out *because* they’re explicitly establishing a reputation for strictness. Nothing in the paper seems to argue against the simpler idea that parents seem to go soft on later kids because raising four children with the same level of attention you’d afford a single child is utterly exhausting. What’s more, if later-born children turn out to be less academically capable than their older simblings, it suggests that the economists’ reputation theory is failing in families across the country.

Perhaps this Cat Could Replace John Boehner

Mayor of Alaskan Town Is a Cat
But With His Honor Less Frisky, Residents Ponder Succession

Jim Carlton
Updated Oct. 15, 2013 11:36 p.m. ET

The mayor of Talkeetna, Alaska, is a 16-year-old cat named Stubbs. And Stubbs has been through a lot. WSJ’s Jim Carlton reports.

TALKEETNA, Alaska—The mayor of this tiny village has been shot, fallen into a restaurant fryer, jumped off a moving truck and been mauled by a dog. Now the burning question around these parts is: Has Mayor Stubbs used up his nine lives?

Stubbs is a cat—but that didn’t stop residents of this unincorporated burg of 876 from naming him their mayor 16 years ago. “It’s an honorary position we gave him, and it just stuck,” says Lauri Stec, general manager of Nagley’s General Store, where Stubbs was adopted by the management as a stray kitten. “We don’t own him, he owns us,” she added, scratching his honor under the chin.

But townsfolk are being forced to contemplate regime change, after the golden-furred Manx mix was attacked by a dog in late August and left with 12 stitches, a punctured lung and fractured sternum. Stubbs spent nine days in a veterinary hospital before being released to his home in an upstairs room of the general store, where he is said to be recuperating slowly.

Lauri Stec with Mayor Stubbs at Nagley’s General Store in Talkeetna, Alaska. Talkeetna, with a population of 876, named Stubbs mayor 16 years ago. Jim Carlton/The Wall Street Journal

“We don’t know what we’d do without him, really,” says resident Leah Vanden Busch, 27, a fisheries biologist. But Peter Mathiesen, 54, an outdoors writer, says talk has already begun about a possible replacement. “There is great debate whether or not there will be an election, who will replace Stubbs,” Mr. Mathiesen says. “Who knows? It’s a great question.”

Talkeetna isn’t the first American town to name an animal as its mayor. A beer-drinking goat named Clay Henry presided over Lajitas, Texas, until his death in 1992, after which he was succeeded by two other goats, Clay Henry II and Clay Henry III. “Best mayor we ever had,” says Davis Odom, a local historian.

In Rabbit Hash, Ky., a Border Collie named Lucy Lou defeated 10 dogs, a cat, a possum, a jackass and even one human to become the town’s third animal mayor—all dogs—since 1998, says Bobbi Kayser, the current mayor’s owner. The community of about 100 began electing animals as a way to raise money for upkeep of its historic buildings, charging a dollar a vote for as many votes as people wanted to make. About $22,000 was raised in the last election in 2008.

“It’s like politics anywhere, but we’re just more honest about it,” says Ms. Kayser, 55.

Eastsound, Wash., also began electing animals as a fundraiser five years ago, with proceeds going to a local learning center, the Orcas Island Children’s House. Dogs have won in every year except in 2011, when a dairy cow named April defeated four canines, a rabbit and cat, said Susan Anderson, executive director of the children’s learning center. A local newspaper column under April’s name addressed her supporters: “Thanks for your enthoosiasm and suppoort and remember, eat moore chicken!”

Mayor Stubbs

But few animal mayors have suffered more tumult than Stubbs, whose lifetime appointment began after employees of Nagley’s discovered him left on the front porch when just a few weeks old. “We wanted a store cat,” recalls Ms. Stec, 54.

In naming the kitten its mayor, Talkeetna hewed to a reputation for quirkiness. A hub for bush pilots to ferry climbers onto Mount McKinley, North America’s tallest peak, Talkeetna is also known for its Moose Dropping Festival, Wilderness Woman Contest and Bachelor Auction and Ball. The town served as an inspiration for the fictional town of Cicely, Alaska, in the 1990s television series “Northern Exposure,” says Trisha Costello, owner of the Talkeetna Roadhouse.

The pet politician added to Talkeetna’s allure, strutting around town like any mayor-for-life might do. He presided over Nagley’s and the adjoining West Rib Pub & Grill, catching voles and sipping water from a wine glass spiked with catnip. “Every once in a while someone will grab his glass and get a mouthful of catnip,” says bartender Brandon Nevarette.

Stubbs sauntered freely into other restaurants and shops, too—dining on scraps of king crab and salmon. “He likes to hang out in here, but we can’t let him, because we can’t sell cat hair shirts,” says Patti Callen, a clerk at the Mostly Moose Gift Shop.
Taking Over the Mayor’s Office, One Paw (or Hoof) at a Time
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In 2008, a border collie named Lucy Lou defeated 10 dogs, a cat, a possum, a jackass and one human to become third animal mayor of Rabbit Hash, Ky. Cindy Starr

There are no formal surveys, but the mayor’s approval ratings seem high. “He hasn’t voted for anything I wouldn’t have voted for,” says Peg Vos, 61, a retired schoolteacher. “Anything’s better than a human,” adds Gil Gunther, 46, owner of the Antler Outpost.

The mayor doesn’t say much, although he perked up when talk of a proposed river dam nearby came up in an interview with Ms. Stec. “He was just growling, so he doesn’t like it,” she said.

Not every constituent is enthralled, however. “My wife hates cats and gets totally creeped out eating at the pub with Stubbs,” Mr. Mathiesen, the outdoors writer, says.

Stubbs’s run of bad luck began about five years ago when some teenagers opened fire with a BB gun, leaving a pellet lodged in his hindquarters. Not long after, Stubbs hitched a ride on a garbage truck, prompting an all-points-bulletin on the local radio station. He managed to jump off on the outskirts of town and make his way home. Last year, he fell into the fryer of a restaurant—fortunately when the oil was cold—requiring an all-night cleansing with dish soap, Ms. Stec says.

Most recently, on the night of Aug. 31, the mayor was out making his rounds when he was attacked by a mixed-breed dog. Ms. Stec says she got a call about the incident at home, but couldn’t immediately locate Stubbs. When she found him bleeding on the ground, she wrapped him up and took him to a local vet. Stubbs survived, and upon his return to Nagley’s, was greeted like royalty.

Fans from around the world, who knew of the cat mayor from previous news coverage, sent get-well cards and left messages of support on a Facebook page. Like an even more well-known former mayor of Wasilla, Alaska, Sarah Palin, Stubbs’s star power has helped put Talkeetna on the map.

But with Stubbs’ recovery going slowly, talk inevitably has turned to succession plans. Exactly how—or whether—to replace Stubbs hasn’t been determined. Says Sassan Mossaner, owner of the Denali Brewing Co., “Those are difficult paws to fill.”

Write to Jim Carlton at jim.carlton@wsj.com

Potential Good News for Power Production

New Nuclear Reactor Claims to be Meltdown-Proof
By Joao Peixe | Mon, 14 October 2013 21:41 | 0

Benefit From the Latest Energy Trends and Investment Opportunities before the mainstream media and investing public are aware they even exist. The Free Oilprice.com Energy Intelligence Report gives you this and much more. Click here to find out more.

The nuclear power industry has faced a tough time since March 2011, when an earthquake and tidal wave hit the Fukushima nuclear power plant causing a meltdown in three of its reactors. Many countries have lost interest in nuclear power, whilst others have increased the safety regulations regarding nuclear power plants.

In order to improve the safety of nuclear reactors, and reduce the chance of a meltdown, people have been researching and inventing new designs for producing energy from nuclear fusion reaction.

The NY Times has written an article detailing one idea that could become popular, that of Jose N. Reyes, co-founder and chief technology officer at NuScale Power. Who has designed a nuclear reactor that is so small, that if any problems were to occur, then the core would be small enough to cool on its own, in a fairly in a short space of time.

Related article: California’s Nuclear Headache is Only Just Beginning

The reactor is basically just a mini version of reactors that are being built at traditional power plants across the US, which tower over 200 feet into the air and 120 feet in diameter. Reyes’ design, housed in a sealed container, would measure just 80 feet tall and 15 feet in diameter, producing approximately one twentieth of the power of normal reactors.

NuScale Power reactor
NuScale Power’s reactor design.

The compact size of the reactors allows them to be submerged in giant 10 million gallon tanks of water, which Reyes claims will reduce the chance of a meltdown to a thousandth of those of conventional reactors.

During a computer simulation, NuScale Power demonstrated that if a pump failed in the reactor and the water began to boil over, the steam would hit the walls of the container, which are kept permanently cool due to the giant water tank that it is submersed in, and then condense, and fall as water back down into the reactor chamber, cooling the reactor once more. They claim that this makes their reactor completely safe, and virtually immune to meltdowns.

Related article: How Our Inability to Calculate Risk Opened the Doors for Fukushima

NuScale Power has applied to the Nuclear Regulatory Commission (NRC) for a permit to begin production, one day hoping to begin commercial sales in the US. Unfortunately achieving a license to produce the reactors could cost as much as $1 billion.

Some critics have claimed that even with a license from the NRC, the designs may prove worthless. The tiny size of the reactors means that they produce far less power, so investors need to be convinced that this design will require less stringent containment structures, smaller evacuation zones, and fewer personnel to operate them. If not, then economies of scale suggest that building larger reactors will be more profitable.

By. Joao Peixe of Oilprice.com

Why We Need to Rein In Wall Street Mega Banks

BUSINESS NEWS 18 COMMENTS
Leading Economist Predicts a Bitcoin Backlash
Economist Simon Johnson says governments will feel the urge to suppress the crypto-currency Bitcoin.

By Will Knight on October 14, 2013

WHY IT MATTERS

A distributed, digital currency could allow new forms of online and mobile commerce—and perhaps challenge established financial systems.

Governments and established financial institutions are likely to launch a campaign to quash the decentralized digital currency Bitcoin, according to a leading economist and academic. Simon Johnson, a professor of entrepreneurship at MIT’s Sloan School of Management, expects Bitcoin to face political pressure and aggressive lobbying from big banks because of its disruptive nature.

“There is going to be a big political backlash,” Johnson said on stage at MIT Technology Review’s EmTech conference in Cambridge, Massachusetts, last Thursday. “And the question is whether the people behind those currencies are ready for that and have their own political strategy.”

The system of cryptographic software behind Bitcoin represents a significant technical advance, and the currency has inspired many cyber-libertarians (see “What Bitcoin Is and Why It Matters”). Mathematical and computer networking principles are used to underpin a system through which financial transactions can be made digitally, without the need for any central authority or financial institution.

The code that supports and regulates the Bitcoin network is built into the software needed to use the currency. It works in a distributed network across the Internet to confirm transactions and prevent counterfeiting. Adding to the mystique, the technical expert or experts who developed the Bitcoin protocol are still unknown.

After several years as a nerdy curiosity, the currency has recently gained momentum as a legitimate means of payment. Many Bitcoin-based businesses are springing up, some backed by major Silicon Valley venture capitalists (see “Bitcoin Hits the Big Time, to the Regret of Some Early Boosters”).

However, Johnson says that Bitcoin’s success will draw increased attention from governments and regulators, who are used to having tight control over currencies. He believes they will be egged on by established financial institutions, which will likely seek to quash the currency. Bitcoin enables very rapid, cheap transfers and payments that could compete with existing fee-based ways of moving money around. “Any bankers watching this should be very afraid,” said Johnson.

Bitcoin opponents could get ammunition for their campaign from the recent case of Silk Road, an online marketplace where bitcoins were traded for illicit drugs. The FBI arrested a man on suspicion of running the site and seized the servers that ran Silk Road. The site was hidden from the open Internet using the anonymous networking technology Tor.

Johnson suggested that this kind of controversial association could certainly put pressure on Bitcoin. “People care a lot about how monies are used,” he said. “They care about the various behaviors associated with monies.”

Indeed, it appears that Bitcoin is coming under increased scrutiny from lawmakers and politicians. Stephen Pair, cofounder and CEO of the Bitcoin payments company Bitpay, says his company has been contacted by state and national officials who have subpoenaed information about its activities.

Pair rejects any suggestion that the currency has any special association with illegal activities. “Just because you use Bitcoin and Tor doesn’t mean you can get away with breaking the law,” he says. “I would not advise people to see Bitcoin as a means of subverting the legal system.”

Johnson, who served as chief economist for the International Monetary Fund in 2007 and 2008, said he thinks supporters of the “crypto-currency” could head off opponents by persuading politicians and legislators that it represents an opportunity for international innovation. “They shouldn’t sit back and wait for other people to define them in terms of Silk Road or anything else,” he said in an interview after the conference. “They should be proactive and explain why this would be a great industry for the U.S. to develop, and why they should have appropriate regulation around that.”

He also said that some governments outside the U.S. may feel threatened by Bitcoin because it allows citizens and companies to sidestep restrictions on the movement of funds across their borders.

Interview with Alice Munro

On “Dear Life”: An Interview with Alice Munro
Posted by Deborah Treisman

munro-233.jpg

Your new collection of stories, “Dear Life,” which came out this month, includes several narratives in which women in some way shake off the weight of their upbringing and do something unconventional—and are then, perhaps, punished for it, by men who betray them or abandon them at their most vulnerable. It happens in “Leaving Maverley,” “Amundsen,” “Corrie,” “Train,” and other stories. Even the aunt in “Haven” pays a price for a seemingly minor rebellion against her husband’s dictatorship. Does that trajectory seem inevitable to you—at least in fiction?

In “Amundsen,” the girl has her first experience with a helplessly selfish man—that’s the type that interests her. A prize worth getting, always, though she ends up somewhat more realistic, stores him away in fantasy. That’s how I see it.

In “Leaving Maverley,” a fair number of people are after love or sex or something. The invalid and her husband seem to me to get it, while, all around, various people miss the boat for various reasons. I do admire the girl who got out, and I rather hope that she and the man whose wife is dead can get together in some kind of way.

In “Haven,” there’s a very obvious “ideal wife,” almost a caricature, urged by women’s magazines when I was young. At the end, she lets herself be tired of it. —God knows what will come of that.

“Train” is quite different. It’s all about the man who is confident and satisfied as long as no sex gets in the way. I think a rowdy woman tormented him when he was young. I don’t think he can help it—he’s got to run.

In your stories, there is often a stigma attached to any girl who attracts attention to herself—individualism, for women, is seen as a shameful impulse. Did it take a great effort to break through that in your own life, and put yourself forward as a writer? Was it normal for girls from rural Ontario to go to university when you did?

I was brought up to believe that the worst thing you could do was “call attention to yourself,” or “think you were smart.” My mother was an exception to this rule and was punished by the early onset of Parkinson’s disease. (The rule was for country people, like us, not so much for towners.) I tried to lead an acceptable life and a private life and got by most of the time O.K. No girls I knew went to college and very few boys. I had a scholarship for two years only, but by that time I had picked up a boy who wanted to marry me and take me to the West Coast. Now I could write all the time. (That was what I’d intended since I was at home. We were poor but had books around always.)

You’ve written so much about young women who feel trapped in marriage and motherhood and cast around for something more to life. You also married very young and had two daughters by the time you were in your mid-twenties. How difficult was it to balance your obligations as a wife and a mother and your ambitions as a writer?

It wasn’t the housework or the children that dragged me down. I’d done housework all my life. It was the sort of open rule that women who tried to do anything so weird as writing were unseemly and possibly neglectful. I did, however, find friends—other women who joked and read covertly and we had a very good time.

The trouble was the writing itself, which was often NO GOOD. I was going through an apprenticeship I hadn’t expected. Luck had it that there was a big cry at the time about WHERE IS OUR CANADIAN LITERATURE? So some people in Toronto noticed my uneasy offerings and helped me along.

“Dear Life” includes four pieces that you describe as “not quite stories … autobiographical in feeling, thought not, sometimes, entirely so in fact.” (One of them, the title piece, “Dear Life,” ran in The New Yorker as a memoir, not a story.) These pieces seem almost dreamlike—fragmentary, flashes of half-remembered, half-understood moments from your childhood. Are they based on diaries you kept at the time?

I have never kept diaries. I just remember a lot and am more self-centered than most people.

Your mother plays a role in all four pieces. You said in a 1994 interview in The Paris Review that your mother was the central material in your life. Is that still true?

My mother, I suppose, is still a main figure in my life because her life was so sad and unfair and she so brave, but also because she was determined to make me into the Sunday-school-recitation little girl I was, from the age of seven or so, fighting not to be.

I was surprised to see you characterize this section of the book as the “first and last” thing you had to say about your own life. It seems that many of your stories have used elements of your childhood and of your parents’ lives. Your 2006 collection, “The View from Castle Rock,” was based on your own family history, wasn’t it?

I have used bits and pieces of my own life always, but the last things in the new book were all simple truth. As was—I should have said this—“The View from Castle Rock,” the story of my family, as much as I could tell.

You discovered, when researching that book, that there had been a writer in every generation of your family. Did you have a sense of that legacy when you were becoming a writer yourself, or did you see your aspirations as sui generis?

It was a surprise that there were so many writers lurking around in the family. Scots people, however poor, were taught to read. Rich or poor, men or women. But oddly I had no sense of that, growing up. There was always a hounding to master the arts of knitting and darning (from my aunts and grandparents, not my mother). Once I shocked them mightily by saying that I would THROW THINGS OUT when I grew up. And I have.

When you were writing in the early days, were there other writers you consciously modelled your work on, writers you cherished?

The writer I adored was Eudora Welty. I still do. I would never try to copy her—she’s too good and too much herself. Her supreme book, I think, is “The Golden Apples.”

How did you settle on the short-story form—or did it settle on you?

For years and years I thought that stories were just practice, till I got time to write a novel. Then I found that they were all I could do, and so I faced that. I suppose that my trying to get so much into stories has been a compensation.

Often when I’m editing a story of yours I’ll try to cut something that seems completely extraneous on page 3, and then when I get to page 24 I suddenly realize how essential that passage was. The stories read as though you had written them in one long breath, but I’m betting that you spend a lot of time thinking about how and where to reveal what.

I do a lot of fooling around with stories, putting things here and there. It’s conscious in that I suddenly think, Oh, that’s all wrong.

Do you find writing difficult, as a rule? Has it got any easier over time?

I do and don’t find writing difficult. Nice bang away at the first draft, then agonizing fix-up, then re-insertions, etc.

A couple of times in the past decade or so you’ve said that you were going to give up writing. Then suddenly new stories have arrived on my desk. What happens when you try to stop?

I do stop—for some strange notion of being “more normal,” taking things easy. Then some poking idea comes. This time, I think it’s for real. I’m eighty-one, losing names or words in a commonplace way, so…

Though each of the stories in “Dear Life” has an openness—even a forgiving quality—the pile-up of regret and disorientation in your characters’ lives adds up to a slightly bitter conclusion. Few of these stories of women’s lives end without loss or sadness. I’m sure this is an irritating question, but do you consider yourself a feminist writer?

I never think about being a feminist writer, but of course I wouldn’t know. I don’t see things all put together in that way. I do think it’s plenty hard to be a man. Think if I’d had to support a family, in those early years of failure?

Is there a story in “Dear Life” that you have particular affection for? One that gave you more trouble than the others?

I’m partial to “Amundsen”—it gave me so much trouble. And my favorite scene is in “Pride,” the one where the little baby skunks walk across the grass. Actually, I like them all pretty much, though I know I’m not supposed to say so.

Photograph by Derek Shapton.