NYRoB—Light on the Dark Side
A Meaningful Life
by L.J. Davis, with an introduction by Jonathan Lethem
One Manhattan mid-morning in the spring of 1967, I heard the crack of a gun going off below, along the broad reach of Central Park West. I jumped up from the table where I was working on my second novel and looked down five stories to the street, on the other side of which breathed the quiet greenery of Central Park. What I saw was a man lying in the middle of the street attempting to raise himself up from the waist, like a seal, collapsing, trying again, then falling flat.
NYRoB—Israel & Palestine: Can They Start Over?
The idea of Israeli-Palestinian partition, of a two-state solution, has a singular pedigree. It has been proposed for at least eight decades. Jews first accepted it as Palestinians recoiled; by the time Palestinians warmed to the notion in the late 1980s, Israelis had turned their backs. Still, its proponents manage to portray it as fresh, new, and capable of leading to peace. International consensus on a two-state agreement is, today, stronger than ever. Meanwhile, interest among the two parties most directly concerned wanes and prospects for achieving it diminish.
NYRoB—With Berlusconi in the Soup
It is a measure of the ineptitude--or is it a death wish?--of Italy's major opposition party, the Partito Democratico (Democratic Party), that it has spent the entire season of Prime Minister Silvio Berlusconi's discontent wrangling over the election of its own party secretary--only to be caught, on the eve of the October 25 vote (its winner was Pier Luigi Bersani, a sensible former minister in several left-wing administrations), by a veritable Vesuvius of erupting bimbos. The day before, Piero Marrazzo, the Democratic governor of the region of Lazio (approximately equivalent to a state in the US, and the region that contains Rome), confessed to having been blackmailed by a gang of four corrupt carabinieri who had tracked his wild times with transgendered Brazilian prostitutes (filming an encounter with a certain 'Natalie'). His sexual tastes were of no juridical importance, but the same could not be said about his use of an official car for these appointments, or his payment of outrageous sums of money (whose?) for ministrations laced with cocaine and silicone curves. He resigned on October 27.
NYRoB—In Evin Prison
My Prison, My Home: One Woman's Story of Captivity in Iran
by Haleh Esfandiari
Extraordinary events in Iran over the past six months have brought us images, voices, and narratives until recently unimaginable; they reveal, among other things, how little we understand about quotidian life in that country since the revolution. In the United States, we are nevertheless aware, with a dark tremor, of Tehran's notorious Evin Prison, the black hole of the hard-liners' repressive system. Emblematic of the regime, it is a site of torture and interrogation, of isolation, and of emotional as well as physical violence. It is a prison for the breaking of souls.
NewAmerica Events—Inheriting the World
12/02/2009 - 12:15pm
NYT Opinions—Op-Ed Contributor: Animal, Vegetable, Miserable
NYT Opinions—Op-Ed Contributor: My Chocolate Meltdown
NYT Opinions—Op-Ed Contributor: Avoidance by the Numbers
NYT Opinions—Op-Ed Contributor: Who Created Major Hasan?
Hindu - Open Page—On the wrong side of the road
Hindu - Open Page—For a friendly EMI
Hindu - Open Page—Acid attack, the most horrendous crime
Hindu - Open Page—A woman’s perspective on sexual harassment
Hindu - Mag—On high voltage
Hindu - Mag—What's in style
Hindu - Mag—Paneer party
Hindu - Mag—Window glossing
RazaRumi—Sub-Continent’s Berlin Wall
Politico—Lincoln on board, 60 in hand
EconomistsView—The Fed in a Corner
Over the years, I have warned a seemingly countless number of undergraduates that Fed's hold on monetary independence was tenuous at best. Independence is not guaranteed by the Constitution. Congress made the Fed, and Congress can unmake the Fed. The Fed could only maintain the privilege of independence if policymakers pursued policy paths that fostered maximum, sustainable growth. Deviating from such paths would have consequences.
The Fed is quickly learning the extent of those consequences, as Congress launches an assault on the Fed's independence.
Some find the loss of support for the Fed puzzling. Brad DeLong, for example, notes that Bernanke & Co. are doing exactly what they should have done:
First of all, from the day after the collapse of Lehman Brothers, the policies followed by the U.S. Treasury and the U.S. Federal Reserve and the U.S. administrations have been very helpful. They have been good ones. The alternative--standing back and watching the markets deal with the situation--would have gotten us a much higher unemployment rate than we have now. Credit easing by the Fed and support of the banking system by the Fed and the Treasury have significantly helped the economy: have kept things from getting much worse.
The Fed earns accolades from academics for its handling of the crisis, in particular since the Lehman failure. Fair enough; I have few quibbles with policy since last fall. But what about the years before Lehman, when the crisis was building? Where was the Fed then? Did they abdicate regulatory responsibility? How did banks develop such incredible exposure to off-balance sheet SIV's? How could the Fed ignore increasingly predatory lending in the mortgage market? What exactly was Timothy Geithner, then president of the all important New York Fed, regulating and supervising? Clearly not Citibank.
To be sure, there were plenty of other regulatory failures along the way, but the Fed - an independent Fed - should have been in a much better position to raise regulatory and supervisory roadblocks during the debt build-up compared to other, more politically susceptible agencies. The Fed's independence should have allowed it to be a leader, not a follower. Ideological objections to regulation, apparently, prevented the Fed from looking for problems in their own backyard. Rapid debt creation was justified as a response to asset appreciation, with little concern that the connection might just be a bit more self-reinforcing.
The resulting crisis left the Fed struggling to keep the ship afloat - and in that struggle the Fed stepped too deep into the realm of fiscal policy in an effort to keep the trains running on time. But that mission creep was simply incompatible with the Fed's desire for secrecy. This was all to predictable: Like it or not, you cannot commit literally billions of dollars of taxpayer money and in the process secretly funnel money through AIG to the investment banking community without expecting just a little blowback. The last I checked, this was still a democracy.
Worse now for the Fed is the impression that monetary authorities work first and foremost for Wall Street. Of course, Fed officials see this a bit differently - they see supporting Wall Street as their mechanism for supporting Main Street. Ultimately, without the former, the latter is locked out of capital markets, and economic chaos follows. The purpose of Wall Street is supposed to be to channel investment funds into Main Street. But most Americans no longer view Wall Street as ultimately working in their best interests - maybe correctly. This is the same Wall Street that aggressively pushed garbage loans onto the American people as policymakers praised the wonders of financial innovation. When did the purpose of finance evolve into simply a mechanism to enrich the relative few at the expense of many? And when did policymakers embrace this view? As Paul Krugman has noted, the Fed cannot envision a world not dominated by the magic of structured finance. Yet this is a world that failed us completely.
Ultimately, can you really blame Americans if they have lost their faith in the supposedly omnipotent Federal Reserve?
Now the Fed's relationship with the public is a mess. And I suspect it is going to get much worse. Free Exchange succinctly identifies the new challenge:
An independent central bank is crucial. Political control of monetary policy must inevitably lead to accelerating inflation and long-run economic instability. But at the moment, the American economy could use an increase in expected inflation. And a real threat to Fed independence would almost certainly deliver it, either because markets would anticipate increased political influence on monetary policy ever after, or because the Fed would seek to fend off pressure from Congress by easing further, which amounts to the same thing. But we don't actually want there to be a real threat to Fed independence, because that way uncontrolled inflation lies.
The Fed has made it clear that unemployment is expected to remain unacceptable high in the medium run while disinflationary pressures persist. Yet policymakers have also made it clear that they believe they have done all they can, or are willing, to do to combat unemployment. They equate credibility with maintaining a 1.7-2% inflation target. Couldn't credibility be consistent with a 4% inflation target? And wouldn't such a target be more appropriate in a zero interest rate world? But alas, challenging the Fed now with their independence at stake will only convince policymakers to dig in their heels more aggressively.
What if the only way to get the Fed to do the right thing is to strip them of their independence? It is a real possibility, although disastrous in the long-run. Yet look at the dithering from the Bank of Japan, still faced with a deflationary environment years and years after they pushed to zero rates:
It was no coincidence that the new government of Yukio Hatoyama chose the day when the Bank of Japan (BoJ) was holding a rate-setting meeting to make a lot of noise on the issue. Both the deputy prime minister and finance minister made concerned comments. Their unspoken message to the BoJ was clear: remove monetary-stimulus measures at your peril. At the end of its two-day meeting, the BoJ left its policy rate unchanged at 0.1%, and continued to use other measures, such as buying government bonds, that it believes make monetary policy “extremely accommodative.”
But the BoJ does not give the impression it is particularly concerned about prices. It believes there are not yet clear signals of a deflationary mindset in corporations or the public at large, and that a recovery in private demand will eventually pull the economy out of its slump.
Good Lord, we have been talking about pulling Japan out of its slump for TWO DECADES! Fear of inflation combined with a perception that acquiescing to a higher inflation target would be akin to losing monetary independence has kept BoJ policy constrained for years, ensuring the citizens of Japan ongoing pain. Is the Fed headed to the same place? Maybe.
I don't think the Fed can regain the trust of the public while at the same time protecting the secrecy of their actions to save Wall Street (moreover, it is not clear that such secrecy is now needed in any event). The relationship between policymakers and financiers is now seen as far too cozy from the perspective of the public. I think the Fed needs to make clear that they work for the people, not for Wall Street. A strong statement by Federal Reserve Chairman Ben Bernanke that a firm that is too big too fail is simply too big - that we should no longer tolerate the expansion of financial firms to the point that they pose systemic risk - would be a good start. Simply put, Bernanke's choice set is dwindling - either risk losing independence, or step up to the regulatory and policy plate like you intend to hit one out of the park. If Wall Street is no longer working for Main Street, it is time to side with Main Street.
HarpersMag—Arendt on the Political Lie
HendryFlood—Homeward Bound
UTLibs—Fine Arts Library hosts African art performance, installation
AUSTIN, Texas (November 20, 2009) — The Fine Arts Library is hosting an art performance and installation in recognition of World AIDS Day.
Alafia, a performance and installation of African art by Issa Nyaphaga and University of Texas Art History faculty Moyo Okediji, will take place from 5-6 p.m. on Tuesday, December 1.
UTLibs—Libraries' Human Rights Documentation Initiative Launches Website
AUSTIN, Texas —The Human Rights Documentation Initiative, a project of the University of Texas Libraries, has launched its website.
The Human Rights Documentation Initiative (HRDI) website provides archived web resources for distance research, highlights human rights related archival materials at UT, informs the public on HRDI’s current documentation partnerships and promotes human rights events and research occurring at The University of Texas at Austin. The site also features a blog to document participant perspectives, project trips, and experiences regarding the work being done to advance the project. The HRDI has concurrently launched a Twitter feed to provide real-time project updates, event reminders and human rights related news.
VQR—Sixty Hours of Terror: “By the Grace of Allah”
VQR—Sixty Hours of Terror: “No Hostages Should Remain Alive”
Charlie Rose—“Broken Embraces” with Penelope Cruz and Pedro Almodóvar
Charlie Rose—Thomas L. Friedman, The New York Times
Charlie Rose—Assessement of President Obama's trip to China
Charlie Rose—An appreciation of James Lilley
RazaRumi—SOUTH ASIA: The Ties that Bind: Artists, Writers Forge Peace
The Cable—Briefing Skipper: Iran, Honduras, India, Hyderabad
In which we scour the transcript of the State Department's daily presser so you don't have to. Here are the highlights of Friday's press briefing by Deputy Department Spokesman Robert Wood.
- Following today's meeting of the P5+1 countries on Iran, not a lot of good news to report. "Iran has not engaged in an intensified dialogue and in particular has refused to have a new meeting, before the end of October, to discuss nuclear issue," Wood said, "Iran has not responded positively to the IAEA-proposed agreement for the provision of nuclear fuel for its Tehran research reactor." The P5+1 countries will meet again "soon" to discuss what to do next, Wood said.
- Wood said no decision had been made on when to move to the "pressure track" and what the sanctions might be, but he said the P5+1 countries have "been of one mind" on the issue and the "window is not going to be open forever." "We're not at that point yet. But we will certainly let you know if and when we reach that point."
- The State Department welcomed the decision by Honduran de factor regime leader Roberto Micheletti to temporarily step down until the Honduran elections are over. "This will allow some breathing space for the process in Honduras to go forward. And so the announcement will also allow for the people of Honduras to focus on the elections."
- Wood wouldn't say that the Obama administration will announce support for India's permanent membership on the UN Security Council when Prime Minister Manmohan Singh comes to Washington next week (which isn't likely). "We'll just have to see how that goes."
- No direct comment on the alleged killing of Afghan civilians in a raid on the village of Hyderabad. "We certainly recognize that it's important to make sure that the civilian population is protected," said Wood, "But at the same time, we've got to make sure... that we counter this violent extremism as best we can, because that's a major cancer in Afghan society."
BLine -Opinion—Major changes for non-residents
BLine -Opinion—Discussion Papers
BLine -Opinion—Politics of religion in DTC
BLine -Opinion—Information overload
The Hindu - OpEds—Helping children is “the only thing to do” for future
The Hindu - OpEds—Sarah Palin and her double standards
The Hindu - OpEds—Considerations before Commonwealth
The Hindu - OpEds—Corrections and clarifications
The Cable—India summit sneak preview
When Indian Prime Minister Manmohan Singh comes to Washington next week, the Obama administration will be challenged to reassure India, and the Washington foreign-policy community, that the relationship is keeping up the momentum established during the Bush years.
The visit comes at a time when the Obama administration is making overtures to China and focused on Afghanistan and Pakistan, and the Indians are worried their rank on the White House priority list is falling. While U.S.-India relations are generally strong, in what is often seen as the zero-sum struggle for White House attention, New Delhi simply can't compete with Beijing and is increasingly worried about what that means for power politics in Asia.
"From the Indian point of view, they are very unhappy with Obama," said Stephen Cohen, senior fellow at the Brookings Institution, "Indians are really bent out of shape by what they see as a shift of American policy from India to China in Asia. This is complicated by America's dependence on Pakistan."
Administration critics saw Obama's joint statement with Hu Jintao in Beijing as an implicit downgrading of the U.S.-India relationship. The statement said the "two sides are ready to strengthen communication, dialogue and cooperation on issues related to South Asia and work together to promote peace, stability and development in that region."
"If China and America work together on South Asian issues, such as peace between India and Pakistan, then China is the great power while India is simply another South Asian country that needs help from others to solve its problems," wrote former Pentagon official Dan Blumenthal, "With the joint statement, Obama officially accorded India junior status in Asia."
Patrick Cronin, senior director of the Asia-Pacific security program at the Center for a New American Security, said that while "the relationship with India is clearly coming second," progress in the U.S.-China relationship indirectly benefits India.
"If the United States and China can't figure out a way to manage their strategic competition, then India and all of us lose," said Cronin. "They need to give the administration more space to try to put the U.S.-China relationship on the most positive trajectory possible."
Nevertheless, the Obama-Singh summit will stand in stark contrast to Singh's 2005 tête-à-tête with George W. Bush, when the two countries embarked on a "strategic partnership" that has taken the relationship far and paved the way for the U.S.-India nuclear agreement.
"Bush already capitalized on what you could from that relationship," said Cronin. "They picked already the low-hanging fruit."
The trip is likely to result in agreements to move forward on second-tier issues, such as an educational agreement, some new military sales to the Indians, or shared information on homeland security. But on big issues like Iran, moving forward with nonproliferation, and coming to terms on climate change, India hands expect little movement.
Underlying the dynamic is a sense that the Obama administration has yet to really commit to a real plan for advancing the U.S.-India relationship. A State Department review is ongoing.
One issue is that there is no real powerful driver for India policy within the administration. Secretary of State Hillary Clinton is well versed on India, but too busy to address it day-to-day. That work has fallen to Under Secretary of State William Burns, but he too has a broad portfolio. Assistant Secretary of State Robert Blake is the highest identifiable official with a constant, determined focus on the relationship. Even at the National Security Council, India doesn't have a strong advocate yet.
India lobbied against having Richard Holbrooke, the special representative for Afghanistan and Pakistan, as its lead interlocutor, leaving the relationship without a specific manager.
Ashley Tellis, senior associate at the Carnegie Endowment for International Peace, is hoping the Obama administration will take the opportunity to announce its support for India to become a permanent member of the U.N. Security Council.
"Although it would have no short-term practical consequence, it would provide the benefits in ‘atmospherics' sought from Prime Minister Singh's visit," he wrote.
That's not likely, according to most observers, but many argue that Obama must make some show of commitment to actually advancing the relationship, not just maintaining it.
"Obama needs to show that we are trying to institutionalize what is the growing strategic relationship with India," said Cronin. "He can't have the prime minister go back to New Dehli without having a sense that we know where we are going together."
Cohen pointed out that the White House might also be frustrated that India hasn't come through in the one area that could really benefit U.S. interests right now: reducing tensions with Pakistan so that Pakistan can divert its attention and resources toward cracking down on terrorism and militancy.
"Where is their contribution to what's going in Afghanistan and what are they doing with respect to Pakistan that might make our problem there easier?" asked Cohen of the Pakistanis. "What have they done for Americans lately?"
JEWEL SAMAD/AFP/Getty Images
NPRMediaWatch—Online and Isolated? (On The Media: Friday, 20 November 2009)
NPRMediaWatch—Waiting for Info (On The Media: Friday, 20 November 2009)
NPRMediaWatch—Count Down (On The Media: Friday, 20 November 2009)
NPRMediaWatch—Obama In China (On The Media: Friday, 20 November 2009)
HarpersMag—SCOTT HORTON—Frost on the KSM Trial
HarpersMag—SCOTT HORTON—Grappling with Contractor Immunity
RazaRumi—The Alchemy of Identities
NewAmerica Articles—Not Serious -- This Time
Is the Palestine Liberation Organization (PLO) leadership, which is currently proposing to seek United Nations recognition of a Palestinian state along the pre-1967 border, about to shake up the Israeli-Palestinian paralysis in a game-changing way? The answer for now would appear to be "no." Both U.S. and EU officials were quick to distance themselves from the idea and label it premature. For their part, the Israelis took umbrage at this hint of Palestinian unilateralism. In case anyone
Sachin@Crincinfo—Tendulkar, Gambhir, dead pitch frustrate Sri Lanka
The Cable—On heels of Obama's Asia trip, new report details extent of Chinese censorship
President Obama's trip to China gave Chinese citizens a window into the views and vision of the new American leader, but it also gave the world a window into the censorship and information control still practiced every day by the Chinese Communist Party.
Obama's town-hall meeting with handpicked Shanghai students, during which he praised the free flow of information and citizens' right to open government, was not broadcast outside of Shanghai.
And Obama's interview with China's Southern Weekend newspaper, which has a reputation for pushing the boundaries and the buttons of the government censors, disappeared from both hard copies and electronic versions of the paper.
On Thursday, the U.S.-China Economic and Security Review Commission, which was established by Congress in 2000 to independently evaluate China, came out with a new report that lays out exactly how the Chinese government thinks and acts on Internet censorship and media control through its secretive but powerful "Propaganda Department."
The commission is recommending that Congress look into any agreement with American Internet companies that might give personal information to the Chinese government. The commission is also recommending that Congress investigate whether Chinese Internet censorship violates its obligations as a member of the World Trade Organization.
"The propaganda system of the People's Republic of China (PRC) exercises control of information as a form of state power. It does not limit itself simply to monitoring and censoring news but instead has developed into ‘a sprawling bureaucratic establishment, extending into virtually every medium concerned with the dissemination of information,'" the report states.
The Communist leadership sends policy directives down through the Propaganda Department, which then lords over all sorts of entities, including newspapers, radio outlets, TV and film companies, and even artist and musicians' associations. Personnel appointments at all sorts of cultural and academic institutions have to be vetted through the Propaganda Department, which works hard to conceal its role.
"The Propaganda Department is both a highly influential and highly secretive body: it is not listed on any official diagrams of the Chinese party-state structure, its street address and phone numbers are classified as state secrets, and there is no sign outside the Propaganda Department's main office complex in Beijing."
Meanwhile, the Chinese government operates what the report calls the most extensive and sophisticated Internet control system in the world. A filtering system called the "Golden Shield Project" uses technologies sold to the China by U.S. firms such as Cisco to keep out anti-government information. An estimated 30,000 internet monitors scour the Chinese Web to find violations and a loose network of independent Internet users get paid small amounts for posting content favorable to the PRC in what's known as the "Fifty Cent Party."
Media, educational, and cultural professionals in China also self-censor under fear of fines, demotion, termination, and imprisonment, the USCC reported. Foreign journalists are not outside the reach of such threats and intimidation.
Although the technologies have advanced, the Chinese government's drive to drown out outside voices is not new, said the commission's vice chairman, Larry Wortzel.
Wortzel was an official escort to then Secretary of State Madeline Albright and then First Lady Hillary Clinton to a 1995 women's conference in Beijing. "When Albright began her speech, seven provincial Chinese women's bands began playing music that sounded like cats being castrated inside a garbage can and the microphones failed," he remembered. "These are just the sorts of roadblocks that are institutionalized when you deal with the Chinese."
"The reality is, it is still an authoritarian government that still maintains tight access to information, as tight control as they are able to maintain," said commission chairwoman Carolyn Bartholomew.
NLedger - Features—Negative Interest Rates, Fed Audits, and Geithner in the Dock
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Negative interest rates finally materialize, Tim Geithner falls on his face at Congress, and the House moves forward with their policy of gutting the Federal Reserve. That’s three big stories to talk about on today’s Coffee and Markets, a daily podcast from The New Ledger on politics, policy and the marketplace with Francis Cianfrocca, brought to you by BigGovernment.com.
You can subscribe to the podcast by following the links above, and if you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.
Related Links:
WSJ: House Attacks Fed, Treasury
MarketWatch: Panel Votes to Audit Fed Balance Sheet
WP: Threatening the Fed’s Independence
Bloomberg: Geithner Resignation Calls Increase
Ryan and Hensarling: Why No One Expects a Strong Recovery
The Cable—Briefing Skipper: Kabul, IAEA, Bosworth, Cuba, Honduras
In which we scour the transcript of the State Department's daily presser so you don't have to. Here are the highlights of Thursday's press briefing by Department Spokesman Ian Kelly:
- Secretary of State Hillary Clinton finished up her visit to Kabul Thursday, where she addressed Afghan government corruption. "I thought that the inaugural speech that President Karzai gave today set forth an agenda for change and reform. He was particularly strong on the steps that he intends to take regarding corruption, the idea that government officials will have to register their assets so that any money or other influence can be more easily tracked is a very bold proposal," Clinton said.
- Back in Washington, the State Department is conducting a "ministry by ministry" review of all U.S. aid going to different parts Afghan government, Kelly said, including dramatically increasing the USAID personnel monitoring aid projects. "If these agencies and ministries don't -- if we're not able to certify them as having open and accountable procedures, they simply won't receive the direct aid."
- No real objection to the news that German Minister of Defense Karl-Theodor zu Guttenberg said Germany won't send any more troops to Afghanistan, for now. "Every country has to decide what's in their own national interests, how they can best help in this effort," said Kelly.
- The IAEA's by Javier Solana will meet Friday with the P-5 plus one countries, to "talk about what the president said that we have to start turning our attention to. And that's developing a package of measures that will show to Iran the seriousness of the consequences of their noncompliance with the requirements of the international community," Kelly said. The deadline is the end of the year, Kelly added, "which is coming very quickly."
- Ambassador Stephen Bosworth will go to Pyongyang December 8 with a small interagency delegation, after which he will also visit Tokyo, Seoul, Bejing, and Moscow (not necessarily in that order). The U.S. is only interested in discussing top security issues, Kelly said, adding "It's pretty fair to say that we're going to go into this with our eyes wide open."
- Kelly responded to the Human Rights Watch report which said Cuba's treatment of political prisoners has not improved under Raul Castro, but said the U.S. is not ready to take further steps regarding Cuba past what has been done so far. "We are waiting to see Cuba take some concrete steps to show that they are also serious in opening up their society and opening up exchanges and interactions with the U.S.," Kelly said, "And I think that we need to see some more concrete steps before we take any actions like that."
- He also acknowledged, but didn't pledge any action, regarding accusations of abuses and media persecution by the Honduran de facto regime led by Roberto Micheletti. "The U.S. embassy in Tegucigalpa is closely monitoring the situation. It has reported back to us about a number of allegations of arbitrary arrests, disproportionate use of force and, in particular, restrictions on freedom of expression. So yeah, we are concerned about it," Kelly said.
FastCompany—Tequila Timeline: From Agave to the Worm
One tequila, two tequila, three tequila ... floor! Nothing can make a night -- or a year -- disappear quite like the agave-fueled Mexican liquor. Jose Cuervo is still No. 1 on the market, though Patrón has soared to No. 2 since its 1989 launch. On the occasion of spirit maker Diageo celebrating the 250th anniversary of Cuervo this November 2, one year late, we drink up its economic history.
1600
Don Pedro Sánches de Tagle, "the father of tequila," starts the first commercial tequila factory, in what was then called Nueva Galicia (now Jalisco).
1758
The King of Spain gives a land grant to Don Jose Antonio de Cuervo to grow agave.
1873
Don Cenobio Sauza exports three barrels to El Paso, Texas, the first tequila in the United States. Today, the U.S. is the No. 1 market for tequila. Mexico is second. Third? Greece.
1938
After Mexican distillers create mixtos, agave mixed with other sugars for a blander, sweeter taste -- tequila need contain only 51% agave to be labeled tequila -- the margarita is invented. It's now America's most popular cocktail; about 60% of all tequila sold in the U.S. goes into margaritas.
1971
The frozen-margarita machine is invented by Dallas restaurateur Mariano Martinez Jr., who sells 36,000 gallons of the concoction in its first year. His invention was added to the collection of the Smithsonian's National Museum of American History in 2005.
1977
Jimmy Buffett charts his only top-10 single, "Margaritaville." He later parlays the tune into a multimillion-dollar lifestyle-brand empire -- including a line of tequilas -- paving the way for musician-tequilapreneurs such as Sammy Hagar (Cabo Wabo) and Justin Timberlake (901).
1983
Entrepreneur Robert Denton begins importing the 100% agave Chinaco. He's credited with being the first to use sophisticated marketing and packaging to sell small-batch top-shelf tequila. In 2008, high-end and superpremium tequilas made up more than $600 million of the $1.6 billion U.S. market.
Early 1990s
A surprising surge in tequila's popularity leads to a shortage of agave. It can't be harvested for up to 10 years after planting, forcing growers to predict demand a decade ahead. This has led to boom-and-bust cycles in agave production and repeated predictions of an industry shakeout.
2009
Cuervo's 250 Aniversario ($2,250), with agave grown on King Carlos's original land grant, will be released on the 251st anniversary. "We needed more time," says a Cuervo spokesperson. Only a tequila drinker would understand.
