Year: 2017

Facebook Post of the Day

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Mitchell Robinson

 April 11 at 11:33pm · Okemos, MI ·

The best argument yet for public schools…

 Donald Trump, Kew-Forest School and New York Military Academy, private

 Betsy DeVos, Holland Christian Schools, religious

 Sean Spicer, Portsmouth Abbey School, private

 Steven Mnuchin, Riverdale Country School, private

 Mick Mulvaney, Charlotte Catholic High School, religious

 Wilbur Ross, Xavier Prep High School, private

 Alex Acosta, Gulliver Schools, private

 Jared Kushner, Frisch School, religious

 Ivanka Trump, Chapin School, private

H/t Diane Ravitch.

OK, this is a Big F%$#ing Deal

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Recently revealed tape recordings indicate that the Bank of England actually ordered some of the illegal manipulation of the LIBOR rates:

A secret recording that implicates the Bank of England in Libor rigging has been uncovered by BBC Panorama.

The 2008 recording adds to evidence the central bank repeatedly pressured commercial banks during the financial crisis to push their Libor rates down.

Libor is the rate at which banks lend to each other, setting a benchmark for mortgages and loans for ordinary customers.

………

The recording calls into question evidence given in 2012 to the Treasury select committee by former Barclays boss Bob Diamond and Paul Tucker, the man who went on to become the deputy governor of the Bank of England.

………


In the recording, a senior Barclays manager, Mark Dearlove, instructs Libor submitter Peter Johnson, to lower his Libor rates.

He tells him: “The bottom line is you’re going to absolutely hate this… but we’ve had some very serious pressure from the UK government and the Bank of England about pushing our Libors lower.”

Mr Johnson objects, saying that this would mean breaking the rules for setting Libor, which required him to put in rates based only on the cost of borrowing cash.

Mr Johnson says: “So I’ll push them below a realistic level of where I think I can get money?”

His boss Mr Dearlove replies: “The fact of the matter is we’ve got the Bank of England, all sorts of people involved in the whole thing… I am as reluctant as you are… these guys have just turned around and said just do it.”

………

Banks have been fined more than £6bn for allowing submitters to be influenced by requests from traders or bosses to take into account the bank’s commercial interests, such as trading positions.

Central bank independence, and central bank secrecy have led to corruption, as evidenced by the this incident, as well as the resignation of the resignation of Richmond Federal Reserve President Jeffrey Lacker for leaking insider information to Medley Advisors,  a so-called “Expert Network”.  (An expert network is basically a cut out to supply inside information to speculators, most notoriously by Steve Cohen).

It is the inevitable result of how this organizations are structured:  When you combine extreme power with a complete lack of accountability, corruption follows.

Pull All of His Security Detail, and Let Market Forces Rule

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Scott Pruit, environment hating wingnut and current head of the Environmental Protection Agency, is requesting a round the clock security detail in his next budget.

It appears that in addition to being a corrupt stooge of the energy industry, he’s also an abject coward:

The administrator of the US Environmental Protection Agency, historically, has had some measure of government-funded personal security detail. Agents routinely picked Gina McCarthy from the airport, for example, or accompanied her on site visits during her time as EPA administrator from July 2013 to Jan 2017. But Scott Pruitt, the new EPA chief, wishes to be guarded 24/7.

………

The Times calls it a first for an EPA chief, and notes that the 10 additional agents would more than double the agency’s current security staff, which has hovered between six and eight agents in recent years. Similarly, security detail for education secretary Betsy DeVos has reached unprecedented levels: Typically, the secretary of education is guarded by about six agents from within the Department of Education. Since her contentious confirmation, DeVos has been under the protection of the US Marshals Service, costing $8 million over eight months.

What security menace is Pruitt guarding against? According to Myron Ebell, who led Trump’s EPA transition team but is no longer employed by the administration, Pruitt is at risk from his own employees—and “the left.”

Seriously, the wingnuts spend their days soiling their pants in abject terror.

This is Brilliant

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Over at Pando, they have a positively brilliant take-down of Rachel Whetstone’s exit from Uber.

The short form is that the senior vice-president of communications and public policy for Uber is a rat, and knows when a ship is sinking, and this is brilliantly brutal:

Okey dokey.

As regular Pando readers will know, the idea that Whetstone would leave Uber to avoid drama is so far beyond laughable that it has travelled the entire circumference of the globe and returned back to laughable again. Rachel Whetstone started out in Westminster — where she and her husband Steve “I support Donald Trump” Hilton helped reinvent the UK’s “nasty” conservative party as the friendly, lovable, electable party that regained power and brought the world… Brexit.

Having left London, for a variety of dramatic reasons, she then headed to Google where she is most famous for picking a very public and highly dramatic fight with (her old pal) Rupert Murdoch. Finally she ended up at Uber where she immediately began bringing even more drama to the already dramatic company, starting with the infamous dinner at which Emil Michael pledged to spend a million dramatic dollars dramatically smearing Pando’s own Sarah Lacy.

Simply put, Rachel Whetstone hates drama like David Mamet hates drama, like Shakespeare hates drama, like Ru Paul performing Tom Stoppard at Devin Nunes High School For Thirteen-Year-Old Girls hates drama.

No, Rachel Whetstone didn’t leave Uber because she hates drama.

For Rachel Whetstone to leave Uber there can only be one reason: Uber is totally, irreversibly f%$#ed. So irreversibly f%$#ed that anyone left behind when the other shoe drops will be so irreparably damaged by association that THE PERSON WHO MADE THE TORIES ELECTABLE AGAIN doesn’t want the karma.

(%$# mine)

Paul Bradley Carr owes me a screen wipe.

Linkage

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Cats and leashes, not an optimal juxtaposition:

Quote of the Day

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And so, contrary to Hayek’s expectations, financial globalisation has proved that it is market fundamentalism, and not the regulatory state that is leading the world into an era of authoritarianism and totalitarianism – in the US, Eastern Europe, India and China.

—Ann Pettifor

This is not surprising the relentless concentration of power by monopolists has always had this effect. 

As an aside, Hayek in fact loved authoritarianism and totalitarianism, as shown by his full-throated support of the brutal Pinochet regime in Chile, and his only slightly more muted defense of the Apartheid regime in South Africa.

So not a Surprise

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Tesla is facing a unionization effort from employees who say that their manufacturing facility is abusive and dangerous:

Along Silicon Valley’s interlocking freeways, low-slung tech offices with obscure names like Way.com or Oorja are populated by fresh-faced technologists in badges and pleated slacks, striving to create the next great app. But off the I-880 in Fremont, a white colossus rises from the landscape, a 5.3-million-square-foot monster that stretches across two interchanges. The gray lettering is a full story high: TESLA.

Here, the company makes high-end, zero-emission vehicles, luxury cruisers for a climate emergency. Chief executive officer Elon Musk has cultivated a reputation as an economic visionary and has been hailed for solving the world’s great challenges with panache. Tesla’s Fremont factory brought hope to a blue-collar, racially diverse town with a manufacturing tradition. And this week, after reports of a 69 percent increase in first-quarter sales, the automaker passed Ford in market value. But though its products epitomize the future, workers like Richard Ortiz say Tesla’s labor conditions are mired in the past. Ortiz is a production associate in the closures department, assembling hoods, doors—“anything that opens or closes”—on Model S sedans and Model X SUVs. Though videos of the Tesla factory emphasize robotic automation, over 6,000 workers engage in intense manual labor to build the cars.

“I have an eight-pound rivnut gun,” Ortiz said, referring to a tool that installs rivet nuts. “I’m doing that all day long. I’m to the point where, if I pick something up with any weight, within 30 seconds I have to drop it. That scares me; I want to be able to use my arm when I retire.”

Tesla workers say circumstances like Ortiz’s are commonplace at a factory that prioritizes production goals over health and safety. Now they’re fighting back against low pay, hazardous conditions, and a culture of intimidation, seeking to unionize through the United Auto Workers. Tesla is the only U.S. automaker using nonunion workers at a stateside plant, and breaking through would give organized labor a foothold in the tech industry as well. Until then, the Tesla experience reveals that green jobs aren’t necessarily good jobs without worker power. “They want to make sustainable cars,” says Ortiz. “We need sustainable employment.”

………


But after originally describing Tesla as “union neutral,” Musk said on an earnings call in February that “there are really only disadvantages to someone to want the UAW here.” In a later email to workers, Musk delivered a point-by-point rebuttal to Moran’s Medium post, arguing that overtime had decreased and incident rates were below average. Instead of offering workers better wages and input on production, Musk promised “a really amazing party” for the launch of the Model 3, “free frozen yogurt stands” at the factory, and “a Tesla electric pod roller coaster” connecting the parking lots. “It’s going to get crazy good,” Musk concluded.

………

Labor historian Nelson Lichtenstein expressed horror at Musk’s rhetoric. “It was the worst kind of caricature of a capitalist, like it’s 1898,” he said. “They have these sophisticated systems of production and distribution, but their social arrangements are utterly retrograde.”

Mr. Lichtenstein may not know it, but his categorization of Musk’s rhetoric can be more broadly applied to the tech industry.

Until the drones at places like Tesla, Facebook, Uber, and Google come to understand that providing free frozen yogurt is not a sign of respect from their employers, but rather an indicator that management thinks that the employees are easily manipulated rubes, this situation will not improve.

The autoworkers are sharper than the Stanford educated programmers when they say about this attidude is that, “It’s insulting, it shows you what he thinks of us.”

Headline of the Day

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What Is ‘Global Britain’? A Financier and Arms Merchant to Brutal Dictators

—Nick Dearden in an OP/ED in the Guardian

This is a pretty good description of what the UK’s global footprint these days.

For a very long time, the UK has aggressively moving away from productive work and toward a financialized economy which is little more than a vehicle for parasitism.

It is what is happening to the US as well, but it’s not moving quite as quickly, if just because our government is less centralized, and because our economy is so much bigger.

Well, Isn’t This Special

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It appears that the current poster child for corrupt corporate behavior, Uber, was using its software to cheat both drivers and passengers:

Uber has devised a “clever and sophisticated” scheme in which it manipulates navigation data used to determine “upfront” rider fare prices while secretly short-changing the driver, according to a proposed class-action lawsuit against the ride-hailing app.

When a rider uses Uber’s app to hail a ride, the fare the app immediately shows to the passenger is based on a slower and longer route compared to the one displayed to the driver. The software displays a quicker, shorter route for the driver. But the rider pays the higher fee, and the driver’s commission is paid from the cheaper, faster route, according to the lawsuit.

“Specifically, the Uber Defendants deliberately manipulated the navigation data used in determining the fare amount paid by its users and the amount reported and paid to its drivers,” according to the suit filed in federal court in Los Angeles. Lawyers representing a Los Angeles driver for Uber, Sophano Van, said the programming was “shocking, “methodical,” and “extensive.”

The first, and most obvious, point, is that sh$# like this is why we need aggressive and competent regulation.

The second point, and perhaps it’s just my inner pinko showing, is that if a company mistreats its employees, there is a pretty good chance that they will f%$# the customers as well.

Good News in Florids ……… Wait ……… What? Florida?

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Actually it is good news, not another Florida Man story.

A court in Florida has ruled that, unlike a physical examination of brakes and tires of a vehicle, authorities need a warrant to extract data from vehicle black boxes:

An interesting decision has been reached by the Florida Appeals Court as to Fourth Amendment protections for vehicle “black boxes.” The black boxes — which are a mandatory requirement in new vehicles — record a variety of data in the event of a crash. (h/t FourthAmendment.com)

Charles Worsham Jr. was the driver in a crash in which his passenger was killed. His vehicle was seized and impounded by police. Twelve days later, police accessed the data in the black box without obtaining a warrant. Worsham challenged the lawfulness of the warrantless search. The police maintained the black box was full of third-party records which required no warrant or consent from the vehicle’s owner.

The court sees the issue differently. In a relative rarity, the state Appeals Court decides [PDF] to get out ahead of the issue, rather than wait for precedential decisions to trickle down from the federal courts. It looks at the data harvested by the black box and suggests the amount gathered will only increase in the coming years. Rather than wait until then to make a call on the Fourth Amendment merits, it draws the line now.

Citing the Supreme Court’s Riley decision (which introduced a warrant requirement for cell phone searches), the court concludes the crash data contained in the black box has an expectation of privacy.

A car’s black box is analogous to other electronic storage devices for which courts have recognized a reasonable expectation of privacy. Modern technology facilitates the storage of large quantities of information on small, portable devices. The emerging trend is to require a warrant to search these devices.
[…]
Although electronic data recorders do not yet store the same quantity of information as a cell phone, nor is it of the same personal nature, the rationale for requiring a warrant to search a cell phone is informative in determining whether a warrant is necessary to search an immobilized vehicle’s data recorder. These recorders document more than what is voluntarily conveyed to the public and the information is inherently different from the tangible “mechanical” parts of a vehicle. Just as cell phones evolved to contain more and more personal information, as the electronic systems in cars have gotten more complex, the data recorders are able to record more information.

Also of importance is the difficulty of extracting the information from the black boxes.

Extracting and interpreting the information from a car’s black box is not like putting a car on a lift and examining the brakes or tires. Because the recorded data is not exposed to the public, and because the stored data is so difficult to extract and interpret, we hold there is a reasonable expectation of privacy in that information, protected by the Fourth Amendment, which required law enforcement in the absence of exigent circumstances to obtain a warrant before extracting the information from an impounded vehicle.

Not only that, but recent legislation (the Driver Privacy Act of 2015) specifically states that the contents of data recorders belong to the vehicle’s owner, not the manufacturer or any other third party.

Outstanding.

Son of a Bitch!

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I am not surprised that Republicans pulled the trigger on the nuclear option, but I am surprised that the Democratic caucus actually held together to sustain a filibuster.

I was wrong in my assessment of the Democratic caucus in the Senate,and (for once) they exceeded my (admittedly low) expectations:

Senators voted on Thursday to advance Judge Neil Gorsuch’s nomination to serve on the U.S. Supreme Court, setting up a final confirmation vote on Friday.

By a vote of to 55 to 45, all Republicans and three Democrats voted to proceed to final debate on the nomination of Gorsuch, 49, a Denver-based judge on the U.S. Court of Appeals for the 10th Circuit. If confirmed, Gorsuch would replace the late Supreme Court justice Antonin Scalia, who died unexpectedly last year, sparking a more than year-long feud among senators about the future makeup of the high court.

Gorsuch’s nomination advanced shortly after Republicans successfully voted to approve what is known as the “nuclear option,” changing Senate rules to allow the confirmation of Gorsuch and all other Supreme Court nominees by a simple-majority vote.

The long-anticipated change came after Democrats earlier blocked attempts to advance Gorsuch’s nomination. The change now means that all presidential nominees for executive branch positions and federal courts need only a simple-majority vote to be confirmed by senators.

But the change is also likely to make an already bitterly divided Senate even more partisan, with several senators warning in recent days that ending filibusters of presidential nominees could lead to the end of filibusters on legislation — effectively ending the Senate’s role as a slower, more deliberative legislative body.

First, the filibuster is, and always has been, an accident, and was never intended to be routine.

Secondly, the Senate is not a great deliberative body, it is a Petri dish for narcissistic sociopaths.

In the short term, the winners are the Republicans, and the losers are the American people, who will be subject to the Republican “ideas”, and the Democrats.

In the long term, the winners will be the Democratic Party, who can enact policies without watering them down to meaninglessness, and the American people, who can benefit  from those policies.

The long term losers are the Republicans, who will find it harder to obstruct, conservative Democrats, who can no longer use the filibuster as an excuse to water down policies to their base.

All in all, I think that this turned out as well as can be expected.

I would suggest that people remember the 4 disloyal Democrats, Donnelly, Heitkamp, Manchin, and Bennet.

These political careers need to be ended.

Meanwhile in Germany

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A court in Germany has ruled that family members must rat each other out or pay the fines themselves:

Copyright trolls are a plague spreading across the world, one which has received far too little social medicine for the taste of many. This virulent form of rent-seeking tends to put out some of the more despicable strategies, from flatout falsely accusing people of piracy, lying to international students about the punishment for copyright infringement, and threatening those that expose their actions.

But a case that was winding its way through German courts sees copyright trolls there now going even further, winning the argument over whether parents should have to serve their own children up to the courts for copyright trolls.

………

Levying responsibility for the failure to out one’s own family member is almost comically pernicious. That the court saw fit to route around local laws protecting families from this sort of thing in the name of copyright trolls seems doubly so.

Just f%$#ing lovely.

Way to enforce the stereotypes of the German people, German courts.

Matt Taibbi Agrees With Me

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He refers to the current hysteria over potential ties between the Trump campaign and Russia as, “Putin Derangement Syndrome.

I think that the major impetus for this is that no one likes to admit that they have screwed this badly, and anyone who supported the Clinton campaign in a meaningful way is using this as a way to avoid admitting that they completely screwed the pooch:

………

Perhaps it will come off just the way people are expecting. Perhaps Flynn will get a deal, walk into the House or the Senate surrounded by a phalanx of lawyers, and unspool the whole sordid conspiracy.

He will explain that Donald Trump, compromised by ancient deals with Russian mobsters, and perhaps even blackmailed by an unspeakable KGB sex tape, made a secret deal. He’ll say Trump agreed to downplay the obvious benefits of an armed proxy war in Ukraine with nuclear-armed Russia in exchange for Vladimir Putin’s help in stealing the emails of Debbie Wasserman-Schultz and John Podesta.

I personally would be surprised if this turned out to be the narrative, mainly because we haven’t seen any real evidence of it. But episodes like the Flynn story have even the most careful reporters paralyzed. What if, tomorrow, it all turns out to be true?

What if reality does turn out to be a massive connect-the-dots image of St. Basil’s Cathedral sitting atop the White House? (This was suddenly legitimate British conspiracist Louise Mensch’s construction in The New York Times last week.) What if all the Glenn Beck-style far-out charts with the circles and arrows somehow all make sense?

This is one of the tricks that keeps every good conspiracy theory going. Nobody wants to be the one claiming the emperor has no clothes the day His Highness walks out naked. And this Russia thing has spun out of control into just such an exercise of conspiratorial mass hysteria.

………

But when it comes to Trump-Putin collusion, we’re still waiting for the confirmation. As Democratic congresswoman Maxine Waters put it, the proof is increasingly understood to be the thing we find later, as in, “If we do the investigations, we will find the connections.”

But on the mass hysteria front, we already have evidence enough to fill a dozen books. And if it doesn’t freak you out, it probably should.

As I have noted before, I think that a lot of this is a desperate attempt by the Democratic Party intelligentsia to avoid any sort of introspection, which would otherwise reveal them to be complete prats.