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 | http://www.gilder.com/ | Issue 293.0/May 4, 2007

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HEADLINES:

-  The Week / The Apocalypse Has Been Postponed
-  Friday Feature / Digg Encryption Uproar
-  Friday Blogger Bonus / The Optimists: Making Money
-  Readings /


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The Week / Good news, Mr. Gore, the Apocalypse has been postponed

George Gilder, Gilder Telecosm Forum (4/30/07): The following is an essay by my medical student daughter Mellie prompted by watching Gore's “An Inconvenient Truth.”

 

Mary Ellen Gilder: Good news, Mr. Gore, the Apocalypse has been postponed

You may have missed it, but April 22nd was National Day of Hope, Prayer and Reflection about Global Warming – presumably not by the edict of the current administration. In the political world Bush is becoming more and more isolated in his stance on this subject. Other public figures are acquiescing one by one. Even Arnold Schwarzenegger, who once seemed likely to be an unmovable bastion of big-business conservatism, has been converted and is on the cover of Newsweek, twirling a fragile and endangered world on his finger and announcing draconian measures to limit carbon emissions in California. He’s a believer.

Global warming has galvanized the developed world. Liberals sound the warning, Conservatives respond with gradually mounting enthusiasm. Clergy fall to their knees in prayer and repentance. Atheists find new purpose and a moral lodestone. Americans slap concerned bumper stickers on their SUVs and flock to “An Inconvenient Truth”. Hollywood swoons and bestows on Gore’s slideshow two Academy Awards. The scientific community churns out technical paper after paper in the journals reporting the mounting evidence.

Or do they?

Gore assures us of it, stating that there is no controversy. He refers to the multitudes of the world’s top scientists voicing unmitigated concern through the UN’s Intergovernmental Panel on Climate Change (IPCC) report. He cites a study of a random sample of 928 articles on global warming, none of which were found to express doubt. There is a consensus.


However, Michael Crichton (best known for his novels but also a graduate of Harvard Medical School and a former postdoctoral fellow at the Salk Institute for Biological Studies) warned his audience of the dangers of “consensus science” in a 2003 speech, Historically, the claim of consensus has been the first refuge of scoundrels; it is a way to avoid debate by claiming that the matter is already settled. Whenever you hear the consensus of scientists agrees on something or other, reach for your wallet, because you're being had.

Let's be clear: the work of science has nothing whatever to do with consensus.


Consensus is the business of politics. Science, on the contrary, requires only one investigator who happens to be right, which means that he or she has results that are verifiable by reference to the real world. In science consensus is irrelevant. What is relevant is reproducible results. The greatest scientists in history are great precisely because they broke with the consensus.

Think of Semmelweiss and puerperal fever. Think of Goldberger and pellagra. Even Gore’s favorite example of continental drift highlights the folly of the scientific consensus that mocked Alfred Wegener’s theory of Pangaea for half a century.

Al Gore Goes to Hollywood (but not to Caltech)

In his film Gore urges an auditorium full of students to “separate the truth from the fiction and the accurate connections from the misunderstandings”. In keeping with that exhortation I watched the An Inconvenient Truth with careful attention to the research on which its arguments were founded. At the time of my second viewing, I began to take notes and read the scientific literature.

Within the first half hour of the film it is clear that Gore does not see global warming merely as a future threat. He states, “Now we’re beginning to see the impact in the real world.” The example of this impact that made the biggest impression on me was that of Lake Chad in Northern Africa. Gore showed dramatic satellite images demonstrating the rapid shrinking of the once-giant lake to near dryness since the turn of the previous century. He suggested that this water shortage has brought on the conditions that have lead to the tragedy and mass violence in the bordering areas of Niger and Darfur. This made me listen. What would it take for a lake of such magnitude to dry up? The warming must be dramatic indeed. I decided to Google it…. Was he purposefully misrepresenting the evidence or had he really not done his homework even on the most basic level?

Read Mellie Gilder’s complete essay: http://blog.gildertech.com/

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Friday Feature /
Digg Encryption Uproar


Chris Maxcer, TechNewsWorld (5/4/07):
What Digg did and didn't do in response to a HD DVD encryption-cracking code on its site is the subject of much controversy. By the thousands, Digg members jumped on the freedom of speech bandwagon, which gets closer to the heart of the matter -- that there's some fundamental issues at stake in the form of a 32-digit number.

Keep reading: http://www.technewsworld.com/story/57225.html
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Adario Strange, Epicenter (5/02/07): The Digg CEO Jay Adelson Interview

 

The last 24 hours were historic for this thing we call Web 2.0 social media. As you can see, we've been all over the story today covering it from various angles. I finally managed to get Digg CEO Jay Adelson on the phone and he offered some insight into the recent controversy.

Adario Strange: Did you actually receive a legal cease and desist document regarding Digg’s content?

 

Jay Adelson: We did receive a legal notice, just not specific to that posting. We received it about a month ago.

 

Strange:  Can you address the seeming conflict between the fact that Kevin Rose has a show available for download (The Broken) that contains illegal hacks for DVDs, XBox games and CDs, but Digg removed a post from a user that contained information that would allow someone to hack an HD DVD?

 

Adelson: Revision3 is a content creator, not a content aggregator. There is no similarity between the two businesses. You are refering to a show where the two hosts played characters that are exaggerations. The intent is to be funny. Obviously they make jokes about pirating and hacking.

 

Strange:  What about the assertion that because Kevin’s show DiggNation had HD DVD as a sponsor this is somehow connected to the deletion of the HD DVD hack code on Digg.com?

 

Adelson: Diggnation is a show where they discuss their dissatisfaction with DRM. But there is no connection between the shows on Revision3 and Digg.com.

 

Strange: OK, but the show DiggNation is primarily based on posts listed on the Digg.com website. The content on Digg.com is the meat of the DiggNation show...

 

Adelson: In the case of HD DVD being a sponsor on Revision3, if Revision3 takes a call from an agency that wants advertising space on DiggNation, it is no way connected to anything that’s on Digg.com.

 

Strange: Is there a specific reason Revision3 stopped doing The Broken?

 

Adelson: Our intent is to produce it as a comical labor of love. We know that it has a big following, but our intent is to continue to produce the show on relatively rare occasions. Kevin is extraordinarily busy so it’s hard for him to do more than DiggNation …

 

Read the full interview:
http://blog.wired.com/business/2007/05/exclusive_the_d.html

____________________________________

 

Friday Blogger Bonus / The Optimists: Making Money

Russell Redenbaugh (4/27/07):
Here’s Jerry Bowyer’s excellent take on Dow 13,000 and the success of the supply-side over at NRO…

 

Question: What do Neil Cavuto and most of the folks over at Fox News; Steve Forbes, Rich Karlgaard, and much of the intellectual inventory over at Forbes magazine; Larry Kudlow, Art Laffer, Don Luskin, Brian Wesbury, and most of the other money types who pop up around 5 p.m. EST each weekday on CNBC; the crowd over at the Wall Street Journal editorial page; and the full complement of writers right here on NRO Financial have in common?

 

Answer: They stuck to their models when the financial world was awash in pessimistic hysterics, and reminded all who would listen that the underlying economy was strong, that the 2003 tax cuts would do their magic, and that smart investors and entrepreneurs would act accordingly and put their money to work. They were ridiculed. They were shouted down. They were attacked. And they were ignored by the vast hoard of pundits and talking heads. But in the end they were right.

 

Dow 13,000.

 

If you thought like the members of the optimistic club, you made a lot of money. And if you thought like their detractors, you got crushed.

 

That’s how it’s supposed to work: Markets are leadership evaluators. They assess the pronouncements of presidents and Fed chairmen. They appraise the decisions of CEOs. They prove or disprove the predictive power of financial forecasting models: Keynesian, Rubinomic, populist, Marxist, supply-side. Each model guessed at what was in store for investors and the economy all across the 2000-07 period. And only one model, the supply-side one that links growth and prosperity with low taxation and low regulation and free markets and a general environment of entrepreneurship and opportunity, consistently outperformed the rest.

I understand how hard it was for the optimists to hang in there. Four years ago, the received wisdom was so gloomy ….

Check our Russell Redenbaugh’s “Reading the World” blog:
http://www.readingtheworld.com/
____________________________________

Readings /

 

Yahoo! Jumps on Microsoft Talk
http://www.forbes.com/home/markets/2007/05/04/microsoft-yahoo-post-markets-equity-cx_af_0504markets07.html


Making Money with Ma Bell
http://www.forbes.com/home/personalfinance/2007/05/03/telecom-att-voip-pf-ii-in_sr_0503soapbox_inl.html

EZchip: 2007 should be a lot stronger than 2006
http://www.globes.co.il/serveen/globes/docview.asp?did=1000207728&fid=1724


The Weekly GTI
http://www.gtindex.com/

 

Kevin Rose AACS LOLGeek Mashup
http://blog.wired.com/gadgets/2007/05/kevin_rose_aacs.html

Wiretapping Woes
http://www.spectrum.ieee.org/may07/5047

 

Vonage is Dealt Setback in Patent Case
http://www.nytimes.com/2007/05/04/technology/04vonage.html?_r=1&ref=technology&oref=slogin
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FRIDAY LETTER STAFF

Editor: Mary Collins George / mcollins@gilder.com

Research: Sandy Fleischmann / sfleischmann@gilder.com

 

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