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How does this bombshell affect what we think about global warming?

It certainly does not negate the threat of a long-term global temperature increase. In fact, McIntyre and McKitrick are careful to point out that it is hard to draw conclusions from these data, even with their corrections. Did medieval global warming take place? Last month the consensus was that it did not; now the correct answer is that nobody really knows. Uncovering errors in the Mann analysis doesn’t settle the debate; it just reopens it. We now know less about the history of climate, and its natural fluctuations over century-scale time frames, than we thought we knew.

If you are concerned about global warming (as I am) and think that human-created carbon dioxide may contribute (as I do), then you still should agree that we are much better off having broken the hockey stick. Misinformation can do real harm, because it distorts predictions. Suppose, for example, that future measurements in the years 2005-2015 show a clear and distinct global cooling trend. (It could happen.) If we mistakenly took the hockey stick seriously--that is, if we believed that natural fluctuations in climate are small--then we might conclude (mistakenly) that the cooling could not be just a random fluctuation on top of a long-term warming trend, since according to the hockey stick, such fluctuations are negligible. And that might lead in turn to the mistaken conclusion that global warming predictions are a lot of hooey. If, on the other hand, we reject the hockey stick, and recognize that natural fluctuations can be large, then we will not be misled by a few years of random cooling.

A phony hockey stick is more dangerous than a broken one--if we know it is broken. It is our responsibility as scientists to look at the data in an unbiased way, and draw whatever conclusions follow. When we discover a mistake, we admit it, learn from it, and perhaps discover once again the value of caution.