Month: January 2012

And as SOPA/PIPA Goes Down, the Supreme Court Decides to F%$# the Concept of Public Domain

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The Supreme Court just ruled that the public domain can be taken away whenever Congress wants to:

We’ve been talking about the Golan case, and its possible impact on culture, for years. If you’re unfamiliar with it, it’s the third in a line of cases, starting with the Eldred case, to challenge aspects of copyright law as violating the First Amendment. The key point in the case was questioning whether or not the US could take works out of the public domain and put them under copyright. The US had argued it needed to do this under a trade agreement to make other countries respect our copyrights. Of course, for those who were making use of those public domain works, it sure seemed like a way to unfairly lock up works that belonged to the public. It was difficult to see how retroactively taking works out of the public domain could fit into the traditional contours of copyright law… but today, on the day of the big SOPA/PIPA protests… that’s exactly what happened (pdf).

The ruling is ridiculously depressing. The Justices basically just keep repeating the mantra they first set forth in Eldred, that as long as Congress says it’s okay — and that the “fair use” and the “idea/expression” dichotomy remain — all is just dandy. They also claim that since the very first copyright law took works from the public domain and gave them copyright protection, clearly there’s nothing wrong with removing works from the public domain. This decision reinforces why the Eldred decision was a complete disaster, and just keeps getting worse. The Eldred ruling basically ignored the fact that copyright had changed entirely in a way that went against the First Amendment… by retroactively granting copyright extension. Now that ruling is being used to take works out of the public domain as well.

First, as with Eldred (and the second case in the trilogy, the Kahle case), I believe that the Court is greatly mistaken in its analysis of copyright law. First it claims that there’s little fight between copyright and the First Amendment because the two things were put in place at about the same time. That’s a specious argument for a variety of reasons. First, the original copyright law was significantly limited in a way that it was unlikely to really come into conflict with the First Amendment. It was limited to just a few specific areas, and for a very short period of time. It’s only now that (1) copyright law has been totally flipped to make just about everything you create covered by copyright, (2) the law has been massively expanded in time and (3) changes in technology make us all create tons of “copyrighted” material all the time — things have changed an entirely. It’s hard to see how the Court can reasonably argue that the traditional contours of copyright law have not changed… but that’s exactly what it does. Stunningly, the majority decision here, written by Justice Ginsburg, seems to suggest that there’s no First Amendment issue here, because if people want to make use of the works that were previously, but are no longer, in the public domain, they can just buy those rights:

This ruling sucks wet farts from dead pigeons.

IP increasingly resembles the Enclosure Acts in England, with a similar outcome. The ordinary people get f%$#ed, and the nobility makes out like raped apes.

Needless to say, this does not serve, “To promote the Progress of Science and useful Arts,” as the constitution states.

Oh My F%$#ing Ghod!

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The Obama administration is floating Larry Summers as the next head of the World Bank:

President Barack Obama may put his mark on the World Bank by nominating Lawrence Summers, his former National Economic Council director, to lead the bank when Robert Zoellick’s term expires later this year, according to two people familiar with the matter.

While a Summers nomination may draw criticism from some Democrats who disagree with his past stances on deregulating the financial industry, he has support inside the administration from top officials, including Treasury Secretary Timothy Geithner and current NEC Director Gene Sperling, said one of the people.

Secretary of State Hillary Clinton is also being considered, along with other candidates, said the other person. Both spoke on condition of anonymity to discuss internal White House deliberations.

Larry Summers’ record was too toxic for Obama to nominate him as secretary of the treasury, and the parts of his record that aren’t rife with incompetence or corruption show that he is completely incapable of operating in an environment like the World bank, which requires consensus.

There is no eleventy dimensional chess.  This is just stupid and arrogant.

H/t Felix Salmon.

It’s Been the SOPA/PIPA Protest Day Today

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Click for full size


Wikipedia Went Dark

Well, it looks like the rent seekers who normally win this stuff (the “Mickey Mouse” Sonny Bono Copyright Act anyone?) are getting at least a temporary brush-back over their attempt to turn the internet into a gated community:

When the powerful world of Old Media mobilized to win passage of an online antipiracy bill, it marshaled the reliable giants of K Street — the United States Chamber of Commerce, the Recording Industry Association of America, and of course, the motion picture lobby, with its new chairman, former Senator Christopher J. Dodd, the Connecticut Democrat and an insider’s insider.

Yet on Wednesday this formidable Old Guard was forced to make way for the new as Web powerhouses backed by Internet activists rallied opposition to the legislation through Internet blackouts and cascading criticism, sending an unmistakable message to lawmakers grappling with new media issues: Don’t mess with the Internet.

As a result, the legislative battle over two once-obscure bills to combat the looting of American movies, music, books and writing on the World Wide Web may prove to be a turning point for the way business is done in Washington. It represented a moment when the new economy rose up against the old.

“I think it is an important moment in the Capitol,” said Representative Zoe Lofgren, Democrat of California and an important opponent of the antipiracy legislation. “Too often, legislation is about competing business interests. This is way beyond that. This is individual citizens rising up.”

Legislation that just weeks ago had overwhelming bipartisan support and had provoked little scrutiny generated a grass-roots coalition on the left and the right. Wikipedia made its English-language content unavailable, replaced with a warning: “Right now, the U.S. Congress is considering legislation that could fatally damage the free and open Internet.” Visitors to Reddit found the site offline in protest. Google’s home page was scarred by a menacing black swatch that blotted out the search engine’s label.

Phone calls and e-mails poured in to Congressional offices against the Stop Online Piracy Act in the House and the Protect I.P. Act in the Senate. One by one, prominent backers of the bills dropped off.

It should be noted that the Republicans are walking away from this faster than the Democrats.

Even Orrin Hatch, the MPAA and RIAA’s bitch,* has withdrawn his support of the bill.

BTW, this debacle is largely the fault of the entertainment industry, because until now they have refused to meet with the tech companies to work out differences, though they are begging for that now.

Here’s a suggestion to the tech companies:  keep your boot on the MPAA’s.

You’ll be doing them a favor.  You might remember then MPAA chair Jack Valenti claiming that the VCR would destroy the studios, when the video rental revenues actually saved their bacon.

Here’s a thought to the unproductive leeches who are entertainment executives, whose business, after all is to rip off the artists who actually produce this stuff:  Do less cocaine, fire your worthless brothers-in-law, and invest in treating the actual creative people, and in producing better content.

*For which he has been richly paid through record contracts from the labels.

Like a Bad Penny

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Un-Dirty-Word Believable

She keeps coming back.

Sarah Palin has endorsed Newt Gingrich, and Newt Gingrich has said that Sarah Palin would have a “major roll” in his administration:

Newt Gingrich said Wednesday he would consider former Alaska Gov. Sarah Palin for a “major role” in his administration if he is elected president.

“Certainly, she’s one of the people I’d call on for advice. I would ask her to consider taking a major role in the next administration if I’m president,” Gingrich said on CNN. He added that he has not discussed the idea with Palin, who he called “a very good reform governor.”

Palin told Fox News on Tuesday that she would vote for Gingrich in South Carolina “in order to keep this thing going.”

Palin has not endorsed a candidate in the Republican race, and her comments Tuesday weren’t exactly an endorsement either, although Gingrich characterized them that way on CNN.

You see, Sarah Palin is saying that the problem is that in 2008, there was a candidate who was not properly vetted (@ about 1:10 in the vid), and she’s referring to Barack Hussein Obama, not Sarah Louise Heath Palin.

Who says that Irony is dead?

It’s A Start

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Love the mug shot

You know, it’s refreshing when a billionaire ignores a judge, and the judge throws his ass in jail:

The elderly billionaire owner of Detroit’s Ambassador Bridge has been jailed today for failing to meet court-ordered deadlines on a multimillion dollar construction project.

Manuel ‘Matty’ Moroun, along with company president Dan Stamper, has been sent to jail until his company complies with a 2010 court order to get the work on the $230m Gateway project done.

It is not yet clear how long the men will stay behind bars, but the work could take up to a year.

Well, were freed on appeal, so they only spent one night in the clink.

That being said, I want Wayne County Judge Prentis Edwards on the Supreme Court.

Ha Ha!

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The latest PPP (pp)polling, Rick Perry is in third place in Texas.

Normally, even in losing a Presidential primary contest, one tends to pick up a bit of stature both locally and nationally, in the case of Rick Perry, I think that it may very well have destroyed his future prospects in the state.

Rick Perry has three big problems: Collapsing poll numbers, worse debate performance than J. Danforth Quayle, and … let’s see … I can’t … The third one, I can’t … Oops.

And in the Further Adventures of Walker Wisconsin Asshole

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They turned in the petitions for his recall.  They needed 540,208, and were hoping for about 750K.

They got more than one million!

That’s more than ¼ of all registered voters.

The wind is blowing in from Wisconsin, and I smell toast ………… My bad that’s Scott Walker, who smells a lot like toast right now.

BTW, it’s not just Walker”

Democrats and union members also collected about 850,000 signatures to recall Republican Lieutenant Governor Rebecca Kleefisch and 20,600 names to recall [Republican] Senator [Leader] Scott Fitzgerald, about 4,200 more than necessary. Also targeted are Senators Pam Galloway, Terry Moulton and Van Wanggaard.

So, where was the Governor when this was all going on? He was in New York, raising money with Maurice “Hank” Greenberg at a $2500 a plate fundraiser.

Why was he raising large chunks of out of state cash from one of the prime architects of the AIG fiasco, whose bailout continues to cost taxpayers billions of dollars?

Why because those pesky lefties are flooding Wisconsin with masses of out of state dirty money.

Who says irony is dead?

Well, Damn! This is Interesting

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William Cohan, Bloomberg Columnist and former investment banker unloads on Mitt Romney with both barrels:

By bidding high early, Bain would win a coveted spot in the later rounds of the auction, when greater information about the company for sale is shared and the number of competitors is reduced. (A banker and his client generally allow only the potential buyers with the highest bids into the later rounds; after all, you can’t have an endless procession of Savile Row-suited businessmen traipsing through a manufacturing plant if you want to keep a possible sale under wraps.)

For buyers, the goal in these auctions is to be one of the few selected to inspect the company’s facilities and books on-site, in order to make a final and supposedly binding bid. Generally, the prospective buyer with the highest bid after the on-site due-diligence visit is selected by the client — in consultation with his or her banker — to negotiate a final agreement to buy the company.

This is the moment when Bain Capital would become especially crafty. In my experience — which I heard echoed often by my colleagues around Wall Street — Bain would seek to be the highest bidder at the end of the formal process in order to be the firm selected to negotiate alone with the seller, putting itself in the exclusive, competition-free zone. Then, when all other competitors had been essentially vanquished and the purchase contract was under negotiation, Bain would suddenly begin finding all sorts of warts, bruises and faults with the company being sold. Soon enough, that near-final Bain bid — the one that got the firm into its exclusive negotiating position — would begin to fall, often significantly.

Of course, some haggling over price is typical in any sale, and not everything represented by sellers and their bankers is found to be accurate under close examination. But Bain Capital took the art of negotiation over price into the scientific realm. Once the competitive dynamics had shifted definitively in its favor, the firm’s genuine views about what it was willing to pay — often far lower than first indicated — would be revealed.

And then there is the closing line:

I have no idea how Romney might behave in office. I do believe, however, that when he was running Bain Capital, his word was not his bond.

This guy has clearly been waiting for years to unload on Romney, and this take-down is truly a thing of beauty.

H/t The Shrill One.

A “Black Door” to Co-Opting Occupy Wall Street?

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Glen Ford’s thesis is that the recent involvement of prominent African American clergy is an attempt by the Democratic Party powers that be to co-opt the movement, and I am inclined to agree:

The Occupy Wall Street movement has, to date, “been effective in warding off cooptation by Democratic Party fronts such as Rebuild The Dream and MoveOn.org.” But OWS’s recent alliance with Black clergy-based (and Russell Simmons-backed) Occupy The Dream raises serious questions in this election year. “It appears that Occupy Wall Street’s new Black affiliate is also in ‘lock-step’ with the corporate Democrat in the White House.”

The Democratic Party may have entered the Occupy Wall Street movement through the “Black door,” in the form of Occupy The Dream, the Black ministers’ group led by former NAACP chief and Million Man March national director Dr. Benjamin Chavis and Baltimore mega-church pastor Rev. Jamal Bryant. Both are fervent supporters of President Obama.

Occupy The Dream’s National Steering Committee is made up entirely of clergy, as are its Members at Large, but its secular inspiration comes from media mogul (and credit card purveyor) Russell Simmons, who was a frequent visitor to Manhattan’s occupied Zuccotti Park. Simmons is co-chairman, with Dr. Chavis, of the Hip Hop Summit Action Network, whose website is now mainly dedicated to the Occupy The Dream project. It is through Simmons that the ministers hope to attract entertainers and athletes to Occupy The Dream events.

………

Far from tamping their Obama fervor, the OWS brand equips the “Dream” ministers (and Simmons’ entertainment assets) to accomplish a special mission: to insulate the president from the Occupy movement and the national conversation on economic equality – or, better yet, to make him appear to be part of the solution. If they so choose.

………

We do, indeed, face a test in 2012: Will the Democratic Party be enabled to swallow up the Left – as it does every four years – including the fragile and tentative structures of the Occupy Wall Street movement? And, will the Democrats enter through the Black door?

Let’s be clear, if Obama’s campaign political operatives are not trying to co-opt OWS, they are incompetent, and this seems to be a low risk-high payoff tactic to accomplish this, so I’m inclined to believe that Plouffe’s or Axelrod’s finger prints are on this.

H/t Yves Smith.

Only In America

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There’s a deli near where I work, the Charwood Deli.

It’s a little shop located in an industrial park.

It has the full range of deli sandwiches, along with hot sandwiches like cheese steaks, and their fries are very nice.

The proprietors are Korean, and they have about a dozen Korean and Korean inspired items which are quite good.

Well today, I got a Gyro, the Greek lamb based wrap.

Greek ethnic food cooked up for me, and done quite well, by Korean immigrants.

This is a microcosm of the immigrant experience in the United States, and something to be admired.

Another Gem From Matt Taibbi

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His latest is called, “Wall Street: Everything You Need to Know.”

The nickel tour is that this is about one Jeffrey Verschleiser, who went beyond what Obama calls, “Immoral but not illegal.” He engaged in what was pretty much black letter fraud, and not only has he not been called to the dock, he is flush enough to buy all 94 rooms in an Aspen hotel for his daughter’s Bat Mitzvah.

This is a guy who was at the core of Bear Stearns’ corrupt financial transactions that took down the firm, and he was telling his associates that he was “putting lipstick on a pig”, and some of his actions appear to be straight out embezzlement.

Why he is not facing criminal prosecution is beyond me.

Read Taibbi’s piece. It puts it all in context.

You Know It’s an Election Year, Because ………

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The Obama administration has come out against the most draconian measures in the rent seeking anti-piracy bills in the House and Senate:

The Obama administration won’t back legislation to combat online piracy if it encourages censorship, undermines cybersecurity or disrupts the structure of the Internet, three White House technology officials said.

Their statement, posted yesterday on the White House website, was a response to online petitions on legislative proposals to combat online piracy. The movie and music industries support such measures as a means of cracking down on theft.

“While we believe that online piracy by foreign websites is a serious problem that requires a serious legislative response, we will not support legislation that reduces freedom of expression, increases cybersecurity risk or undermines the dynamic, innovative global Internet,” Aneesh Chopra, Victoria Espinel and Howard Schmidt wrote in a blog post.

The statement marks the administration’s most significant foray into a fight between content creators and Internet companies that has been playing out in Congress. The Senate is scheduled to hold a procedural vote Jan. 24 on starting debate on an anti-piracy bill.

The first thing to note is that this is a very tepid condemnation.

They didn’t make a Friday night release of this blog post, it was around noon on a Saturday when it was competing with the NFL playoffs, and Obama himself has not made a comment here.

That being said, I think that this is the first time that the Obama administration has come out against rent seekers as versus the general public.

I think that the Obama administration has made a tactical decision that they will get plenty of money for the campaign, and so they it isn’t necessary at this time to sh%$ on a motivated and tech savvy part of the electorate.

Another Example Why the Credit Default Swap is the Toxic Waste of the Financial World

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On an article about how Greek government debt may take down the Euro, we find this little gem:

Lagarde’s demand for a larger haircut smacked into an onslaught of leaks from the bond-swap negotiations between the government and private sector bond holders. First, there were rumors that the banks had largely agreed on a deal. Then there were rumors that hedge funds that had acquired some of these bonds at a discount were refusing to go along with anything. They were betting that they could profit from a default because it would trigger CDS payouts. And if the majority agreed to the haircut, they would also profit because Greece would eventually redeem the bonds.

Now, there are rumors that the government wants to compel these hedge funds to join the bailout majority. Tool: retroactive “collective-action clauses”—if a majority of bondholders agrees to the deal, the recalcitrant minority could be forced to go along.

Of course, the question is how you can make money for this.

It comes down to the fact that there is something called the “naked” credit default swap.

The nickel tour is that a CDS is an insurance policy, you pay your premiums, and in the event of “something” happening, you get a payout for the “loss”.

The reason that I put “loss” in scare quotes is because unlike most forms of insurance, there is no requirement to hold an interest in the continued existence of whatever you are insuring.

This has been case since 1746 (!) when Parliament passed the Marine Insurance Act.

Basically, if I purchase a CDS on something risky, like Greek sovereign debt, I have to pay a lot of money, but let’s engage in a little mental exercise:

  • Assume a billion dollars in a specific debt issue.
  • Buy $1 million dollars in debt at a discount from someone who is scared, let’s say it’s 50¢ on the dollar. So you spend $500,000.
  • You purchase a CDS on the whole issue, let’s assume that it’s a 30% payment, or $300 million.
  • Refuse to accept a haircut, triggering a default, and a full payout on the CDS.
  • So, you spent $300.5 million, and get a $1 billion payout.

This is vulture capitalism at it’s worse.  You don’t just wait for something to die, you figure a way to pluck out the eyes to hasten the demise.

This is a microcosm for everything that is wrong with “Anglo Saxon” hyper-capitalism.

Good News on the Campaign Front

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On the Congressional side.

First, in Maryland’s 4th district, Donna Edwards will be running unopposed in the primary, former PG County States Attorney (DA) Glenn Ivey declined to run, which basically means that she will be reelected.

The primary was actually a matter of some concern, because the redistricting moved a lot of Montgomery County was moved out, and a lot Anne Arundel county moved in.

Because AA county is more Republican, it meant that PG County, and the (largely corrupt) PG County machine had a lot more influence over any primary contest, and Edwards is not a their friend, having taken down their golden boy, the then-incumbent Al Wynn in 2008.

Not only is she honest, but she is an unabashed liberal, so 2 snaps up.

Additionally, in the Massachusetts Senate race, Elizabeth Warren out-raised Scott Brown in 2011, $8.9 million for the year and $5.7 million for the quarter as versus $8.7 million and $3.2 million, though Brown still has about twice her cash on hand, $12.8 million versus $6 million.

Considering the fact that Brown is Wall Street’s favorite Senate candidate, this is surprising, and welcome, news.

Seriously, We Are Becoming Incapable of Develping New Weapons Systems

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We’ve seen this with the Future Combat Systems, EFV (the landing craft former known as the AAAV), the Comanche helicopter, DDG-10000, and the slow motion implosion of the LCS and the JSF.

We see that the programs start with over-ambitious requirements, which lead to protracted development schedules, escalating costs.

This leads changes to the requirements, leading to further schedule and cost slippage, rinse, lather, repeat.

I’m generally not to concerned about this, I’m of the belief that superior training, tactics, and situational awareness will win the day. The success of the F4F Wildcat versus A6M Rei-sen (Zero) is an example of this.

Superior tactics and situational awareness are largely function of effective communication, so to my mind the cancelation of the Joint Tactical Radio System (JTRS) is a bigger deal than most of the higher profile cancellations:

…

What tied them down was their radios: a forest of plastic and metal cubes sprouting antennae of different lengths and sizes. They had short-range models for talking with the reconstruction team; longer-range versions for reaching headquarters 25 miles away; and a backup satellite radio in case the mountains blocked the transmission. An Air Force controller carried his own radio for talking to jet fighters overhead and a separate radio for downloading streaming video from the aircraft

…

Almost fifteen years ago, the Army launched an ambitious program, the Joint Tactical Radio System [3], aimed at developing several highly-compatible “universal” radios. Together, the JTRS radios would replace nearly all older radios in the American arsenal, greatly simplifying communications and freeing up combat units “to tap into the network on the move,” according to Paul Mehney, an Army spokesman.

But JTRS, pronounced “jitters,” failed to live up to its promise. Overly ambitious, poorly managed and saddled by incompatible goals, the program burned through $6 billion dollars while producing little working hardware. Delays forced the Army to spend $11 billion more on old-style radios to meet the urgent demands of the Iraq and Afghanistan wars.

The Army eventually reduced the planned purchase of JTRS radios and cut the types of radios in development. In October, it canceled the vehicle-mounted version of JTRS, the most important of the new radios, which by then had grown to the size of a dormitory-sized refrigerator. For all practical purposes, JTRS is dead — at least in its original guise.

…

JTRS’ history is one of grand but naive technological ambition colliding with the unbending laws of physics and the unforgiving exigencies of modern warfare. After years of work, the Army discovered for itself what experts had been warning all along: It’s impossible for a single radio design to handle all the military’s different communications tasks.

The more capabilities that the Army and prime contractor Boeing packed into JTRS, the bigger, more complex and more expensive it became — until it was too bulky and unreliable for combat. In its relentless drive for conceptual simplicity, the Army found itself mired in mechanical complexity.

The Army wasn’t alone in its doomed pursuit of a technological pipe dream. The past decade has by many accounts been an era of grand ambition, flawed management and wasted treasure for all the military branches. A lengthy Harvard Business School study for the Pentagon concluded in April that despite many attempts at reform, “major defense programs still require more than 15 years to deliver less capability than planned, often at two to three times the planned cost.”

Unlike most of the high tech systems, which have next to no relevance in our current conflicts, there are very real shortcomings in the complex and frequently non-interoperable hodgepodge of communications equipment used by our forces. (The article linked above refers to one such situation in Afghanistan)

If our defense procurement and R&D system takes 15 years to take a radio system from concept through cancellation, we are completely f%$#ed.

Our own corrupt military-industrial complex appears ready to implode under the weight of its own dysfunction.

This is not the Best Newspaper Correction Ever

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Correction, New York Times, 30 December 2011

Yes, it’s an amusing correction, but it’s not the best ever.

The reigning champion, this year, as it has been for nearly 100 years, the Grauniad’s* Corrections and amplifications column.

The material there is extensive and voluminous, but I believe that the best correction of all time comes from their effort on 2 February 2009:

The absence of corrections yesterday was due to a technical hitch rather than any sudden onset of accuracy.

Seriously, corrections simply do not get any better than that.

*According to the Wiki, The Guardian, formerly the Manchester Guardian in the UK. It’s nicknamed the Grauniad because of its penchant for typographical errors, “The nickname The Grauniad for the paper originated with the satirical magazine Private Eye. It came about because of its reputation for frequent and sometimes unintentionally amusing typographical errors, hence the popular myth that the paper once misspelled its own name on the page one masthead as The Gaurdian, though many recall the more inventive The Grauniad.”

Your Friday Scott Walker Dump

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First, it looks like they will deliver something like ¾ of a million signatures to recall him, about a 50% buffer, some time next week.

What’s more it looks like a major scandal is brewing, we could see major revelations just in time for the recall elections.

First, we have 3 of his aids accused of embezzling from a veterans charity, and one of them was tied to his room mate’s trolling for child sex.

And finally, his 2010 campaign is charged with over 1,000 violations of campaign finance law, and faces over $½ million dollars in fines.

Pass the popcorn.