http://technologyreview.com/articles/04/10/wo_muller101504.asp

That discovery hit me like a bombshell, and I suspect it is having the same effect on many others. Suddenly the hockey stick, the poster-child of the global warming community, turns out to be an artifact of poor mathematics. How could it happen? What is going on? Let me digress into a short technical discussion of how this incredible error took place.

In PCA and similar techniques, each of the (in this case, typically 70) different data sets have their averages subtracted (so they have a mean of zero), and then are multiplied by a number to make their average variation around that mean to be equal to one; in technical jargon, we say that each data set is normalized to zero mean and unit variance. In standard PCA, each data set is normalized over its complete data period; for key climate data sets that Mann used to create his hockey stick graph, this was the interval 1400-1980. But the computer program Mann used did not do that. Instead, it forced each data set to have zero mean for the time period 1902-1980, and to match the historical records for this interval. This is the time when the historical temperature is well known, so this procedure does guarantee the most accurate temperature scale. But it completely screws up PCA. PCA is mostly concerned with the data sets that have high variance, and the Mann normalization procedure tends to give very high variance to any data set with a hockey stick shape. (Such data sets have zero mean only over the 1902-1980 period, not over the longer 1400-1980 period.)