“Anyone is a potential target.”
- Julian Sanchez

The award for the most bald-faced lie on the House floor Friday, however, goes to Speaker Nancy Pelosi (D-CA), who insisted that the bill “does not allow warrantless surveillance of Americans.” She is wrong. It does.

… The bill … allows the government to conduct “vacuum cleaner” surveillance — sweeping up international traffic willy-nilly — then filter it for anything that looks interesting. Indeed, many believe that licensing such surveillance is precisely the point of this legislation. If so, “warrantless surveillance of Americans” could well become routine, whether or not they are the formal “targets” of eavesdropping.

- Julian Sanchez @ American Prospect (June 25, 2008): Link.

Via Boing Boing: Link.

See also Obama’s support for the FISA “compromise”.

Wikipedia: Foreign Intelligence Surveillance Act

“If anyone expects President Obama to roll back Bush’s illegally-gained dictator powers, they are smoking rope.”
- Mark Frauenfelder

Salon’s Glenn Greenwald reports:

It is absolutely false that the only unconstitutional and destructive provision of this “compromise” bill is the telecom amnesty part. It’s true that most people working to defeat the Cheney/Rockefeller bill viewed opposition to telecom amnesty as the most politically potent way to defeat the bill, but the bill’s expansion of warrantless eavesdropping powers vested in the President, and its evisceration of safeguards against abuses of those powers, is at least as long-lasting and destructive as the telecom amnesty provisions. The bill legalizes many of the warrantless eavesdropping activities George Bush secretly and illegally ordered in 2001. Those warrantless eavesdropping powers violate core Fourth Amendment protections. And Barack Obama now supports all of it, and will vote it into law. Those are just facts.

- Glenn Greenwald @ Salon: Link.

From the comments:

What really rubbed me the wrong way was how Obama in his statement says essentially trust me with these powers, I’ll use them responsibly.

- Hume’s Ghost: Link.

Via Boing Boing: Link.

Speaking of Barack Obama:

“Obama’s campaign, which could spend as much as $500 million ….”

Breaking an earlier vow, Senator Barack Obama announced that he will opt out of the public campaign-finance system, in order to be able to spend unlimited amounts of money in the last two months of his presidential campaign, rather than merely $84 million, the amount to which Senator John McCain will be limited under public-funding laws. “It’ll be like George Steinbrenner’s Yankees in the 90s,” Democratic consultant Chris Lehane said of Obama’s campaign, which could spend as much as $500 million, “against the 90s Kansas City Royals.”

- Harper’s Weekly Review: Link.

Via Boing Boing: Link.

SlashDot reports:

“The Senate mortgage bill proposed by Sen. Chris Dodd (who was the recipient of a sweetheart deal on his mortgage from Countrywide, one of the beneficiaries of the bill) includes an attempt to sneak into law a requirement that all electronic payment processors send detailed transaction data to the federal government. The proposed law contains an exception for businesses with fewer than 200 transactions or a total value less than $10,000. Quoting FreedomWorks chairman Dick Armey (former House majority leader) from the article: ‘This is a provision with astonishing reach, and it was slipped into the bill just this week. Not only does it affect nearly every credit card transaction in America, such as Visa, MasterCard, Discover, and American Express, but the bill specifically targets payment systems like eBay’s PayPal, Amazon, and Google Checkout that are used by many small online businesses. The privacy implications for America’s small businesses are breathtaking.’”

- StealthyRoid @ SlashDot: Link.

See Also

“Senate Housing Bill Requires eBay, Amazon, Google, and All Credit Card Companies to Report Transactions to the Government”
@ FreedomWorks: Link.

Thought for today:

“To the biologist the problem of socialism appears largely as a problem of size. “

To the biologist the problem of socialism appears largely as a problem of size. The extreme socialists desire to run every nation as a single business concern. I do not suppose that Henry Ford would find much difficulty in running Andorra or Luxembourg on a socialistic basis. He has already more men on his pay-roll than their population. It is conceivable that a syndicate of Fords, if we could find them, would make Belgium Ltd. or Denmark Inc. pay their way. But while nationalization of certain industries is an obvious possibility in the largest of states, I find it no easier to picture a completely socialized British Empire or United States than an elephant turning somersaults or a hippopotamus jumping a hedge.

- J.B.S. Haldane
“On Being the Right Size” in the (1928) book “Possible Worlds”
Link @ Wikiquote

“John Burdon Sanderson Haldane FRS (November 5, 1892 – December 1, 1964), known as Jack (but who used ‘J.B.S.’ in his printed works), was a British geneticist and evolutionary biologist. He was one of the founders (along with Ronald Fisher and Sewall Wright) of population genetics.”

- Wikipedia: Link.

Thought for Today:

We want one class of persons to have a liberal education and we want another class of persons, a very much larger class of necessity, to forgo the privileges of a liberal education and fit themselves to perform specific difficult manual tasks.

- Woodrow Wilson
From an address to The New York City High School Teachers Association
Jan. 9th, 1909: Link.

Thought for today ….

Under capitalism, man exploits man. Under communism, it’s just the opposite.

- John Kenneth Galbraith

“This recession is going to be a bad one.”
- Gary North

Mises’ theory of the business cycle:

The central bank inflates. This creates a boom. This creates sectoral bubbles. Then the central bank ceases to inflate. The bubbles will pop. The economy will go into a recession.

… This recession is going to be a bad one …. I think your first line of self-defense is your job. If you lose your job, you are in big trouble. You will have to sell your assets in a fire sale economy.

You need to do whatever it takes to increase your value to your employer.


- Gary North @ LewRockwell.com: March 22, 2008: Link.

Thanks, EB.

“A group of 10 people within a large organization is a kind of fake tribe. The number of people you interact with is about right. But something is missing: individual initiative.”
- Paul Graham

Paul Graham on the anthropology of big companies versus small companies:

What’s so unnatural about working for a big company? The root of the problem is that humans weren’t meant to work in such large groups.

Another thing you notice when you see animals in the wild is that each species thrives in groups of a certain size. A herd of impalas might have 100 adults; baboons maybe 20; lions rarely 10. Humans also seem designed to work in groups, and what I’ve read about hunter-gatherers accords with research on organizations and my own experience to suggest roughly what the ideal size is: groups of 8 work well; by 20 they’re getting hard to manage; and a group of 50 is really unwieldy.

Whatever the upper limit is, we are clearly not meant to work in groups of several hundred. And yet — for reasons having more to do with technology than human nature — a great many people work for companies with hundreds or thousands of employees.

Companies know groups that large wouldn’t work, so they divide themselves into units small enough to work together.

… Each group tries its best to work as if it were the small group of individuals that humans were designed to work in. That was the point of creating it. And when you propagate that constraint, the result is that each person gets freedom of action in inverse proportion to the size of the entire tree.

… A group of 10 people within a large organization is a kind of fake tribe. The number of people you interact with is about right. But something is missing: individual initiative. Tribes of hunter-gatherers have more freedom. The leaders have a little more power than other members of the tribe, but they don’t generally tell them what to do and when the way a boss can.

… The restrictiveness of big company jobs is particularly hard on programmers, because the essence of programming is to build new things. Sales people make much the same pitches every day; support people answer much the same questions; but once you’ve written a piece of code you don’t need to write it again. So a programmer working as programmers are meant to is always making new things. And when you’re part of an organization whose structure gives each person freedom in inverse proportion to the size of the tree, you’re going to face resistance when you do something new.

… Working for oneself, or at least for a small group, is the natural way for programmers to live. Founders arriving at Y Combinator often have the downtrodden air of refugees. Three months later they’re transformed: they have so much more confidence that they seem as if they’ve grown several inches taller. Strange as this sounds, they seem both more worried and happier at the same time. Which is exactly how I’d describe the way lions seem in the wild.

- Paul Graham, March 2008: Link.

Via NewsVine: Link.

“Backing paper money with mortgages is nothing new. The French tried it in the late 18th Century, and it lead to hyperinflation.”
- Peter Schiff


Peter Schiff makes some interesting — and alarming — observations about the mortgage crisis in America:

This week, as the financial sector began to give way under the unbearable weight of bad mortgage debt, the Federal Reserve stepped in to save the day. At least that’s what it says in the script.

In a surprise move, the Federal Reserve announced its intention to swap $200 billion of treasury debt for $200 billion of potentially worthless mortgage-backed securities. The Fed may have been partially spurred to take the step as a result of the rapid collapse of Carlyle Capital Corp. a publicly traded private equity firm that is a subsidiary of the Carlyle Group. The Dutch firm could not meet margin calls on its depreciating collateral of AAA-rated mortgaged-backed securities guaranteed by Fannie Mae and Freddie Mac. On Friday, the Fed then took the unusual step of providing emergency “non-recourse” funding to Bear Stearns, collateralized by that firm’s similarly worthless mortgage debt. Apparently the Fed now stands willing to assume any mortgage-related risk that no other private entity would touch.

… According to the Fed, its new plan does not amount to buying mortgages but simply accepting them as collateral for 28-day loans. However, will the Fed really return these ticking time bombs to their true owners in 28 days, inciting the very collapse its actions were originally designed to postpone? Why does the Fed believe that the mortgages will be marketable next month; or the month after that?

… The problem with these mortgages (other than the borrowers lacking any means or desire to repay them) is that the underlying collateral is worth a fraction of the face amount. With recent foreclosure recovery rates amounting to less than 50 cents on the dollar, it is no wonder that no one wants them. The real estate bubble allowed borrowers to leverage themselves to the hilt using inflated home values as collateral. However, now that the bubble has burst, mortgage balances far exceed current property values. It is a trillion dollar time bomb that no one can possible defuse.

Paper dollars are technically Federal Reserve Notes, which means they are liabilities of the Fed. When it puts newly minted notes into circulation it does so by buying assets, usually U.S. treasuries, which it then holds on its balance sheet to offset that liability. By swapping treasuries for mortgages, the Fed effectively alters the compilation of its balance sheet and the backing of its notes.

… Backing paper money with mortgages is nothing new. The French tried it in the late 18th Century, and it lead to hyperinflation. Assignats, which were first issued in 1790 to help finance the French revolution, were backed by mortgages on confiscated church properties. Although the stolen underlying collateral did have some value, the revolutionaries saw no reason to limit how many Assignats were printed, which resulted in massive depreciation. Within three years, price controls were introduced and failure to accept Assignats, initially an offence subject to six years in prison, was made a capital crime. By 1799 the currency was completely worthless.

- Peter Schiff @ For Sou 15 Mar 2008: Link.

- Prise de la Bastille by Jean-Pierre Houël: Link.

Global markets are “a voting machine. And they vote whether or not they believe in the value of this currency.”

“Think of the dollar as another commodity,” said [Chris] Farrell. “It’s worth less. Therefore you’re gonna try and charge more to make up for the decline of its value.”

… The global markets are operating on the fundamentals of the economy, but according to Farrell, they also operate on a psychological level.

“They’re a voting machine. And they vote whether or not they believe in the value of this currency. What we’re dealing with right now is we’re right on the edge where the international capital markets are saying, ‘We don’t trust this currency anymore, we don’t think it should be the world’s currency,’” said Farrell.

- Jason DeRusha @ wcco.com: Link.

Free market economy? Level playing field? I don’t think so:

• The US Trade Representative makes trade concessions to the European Union, related to internet gambling.
• The deal is not subject to Congressional scrutiny or approval.
• A US Congressman requests that the USTR disclose the concessions.
• USTR rejects the request, “claiming the agreement was classified for national security reasons.”

Congressman Calls for U.S. Trade Representative to Provide Details of WTO Internet Gambling Settlement

Congressman Peter DeFazio (D-OR) has requested the U.S. Trade Representative (USTR) disclose trade concessions made to foreign trading partners without Congressional approval. DeFazio’s inquiry raises the possibility of Congressional intervention to void new market access commitments granted by USTR to the European Union and other complainants as compensation for a United States trade violation regarding Internet gambling.

In a letter circulated to all members of Congress last week, DeFazio encouraged his colleagues to join him in calling for the USTR to provide a copy of the concession agreement between the United States and the European Union. The USTR had recently rejected a Freedom of Information Act request for the same document, claiming the agreement was classified for national security reasons. “There is a concern that the USTR may have been ambitious in its use of a ‘national security’ classification to avoid any publicity of which new business sectors are to be subject to the GATS (General Agreement on Trade in Services) treaty,” said DeFazio’s March 6 letter.

… The DeFazio request comes following a contentious trade dispute over Internet gambling, in which the Caribbean nation of Antigua successfully challenged the regulation of Internet gambling in the United States. The European Union announced earlier this week that it will open an investigation into a possible international trade violation by the US on this issue. The investigation is the result of a Trade Barriers Regulation complaint filed by the Remote Gambling Association (RGA), which represents the largest remote gambling companies in Europe. The RGA claims the US is in violation of international trade law by threatening and pursuing criminal prosecutions, forfeitures and other enforcement actions against foreign Internet gaming operators, while allowing domestic U.S. online gaming operators, primarily horse betting, to flourish.

- @ Eye on Gambling: Link.

Office of the United States Trade Representative @ Wikipedia: Link.

The $2 Trillion Nightmare

Because the administration actually cut taxes as we went to war, when we were already running huge deficits, this war has, effectively, been entirely financed by deficits. The national debt has increased by some $2.5 trillion since the beginning of the war, and of this, almost $1 trillion is due directly to the war itself … By 2017, we estimate that the national debt will have increased, just because of the war, by some $2 trillion.

- Joseph Stiglitz @ New York Times: March 4, 2008: Link.

Via Cassandra @ Newsvine: Link.

“There’s something perverse about a member of Congress having one of the people who is trying to persuade him what the right answer is raise $100,000 for his campaign.”
- Lawrence Lessig

Stanford professor Lawrence Lessig hates corruption. And he’s trying to do something about it:

I don’t want a world where there are no lobbyists — I think lobbyists are essential. I think the message of lobbyists and the training of lobbyists is essential. Just like I think that what lawyers do before the Supreme Court is essential. But just as I think everybody would think it weird if a lawyer before the Supreme Court would send $100,000 to the Justice Roberts Retirement Fund or $100,000 to the Renovate Justice Roberts’s Office Fund, I think we better recognize there’s something perverse about a member of Congress having one of the people who is trying to persuade him what the right answer is raise $100,000 for his campaign. That’s the link we’ve got to break.

- Lawrence Lessig, interview by Mark Hemingway @ National Review Online: March 7, 2008: Link.

Via Slashdot: Link.

Lawrence Lessig blog: Link.

Wikipedia states:

Lawrence Lessig (born June 3, 1961) is an American academic. He is a professor of law at Stanford Law School and founder of its Center for Internet and Society. He is founder and CEO of the Creative Commons and a board member of the Electronic Frontier Foundation and of the Software Freedom Law Center, launched in February 2005. He is best known as a proponent of reduced legal restrictions on copyright, trademark and radio frequency spectrum, particularly in technology applications.

At the iCommons iSummit 07 Lessig announced that he will stop focusing his attention on copyright and related matters, and will instead work on corruption in the political system.

- Wikipedia: Link.

The evolution of trickster stories among the dogs of North Park after the Change

Short fiction by Kij Johnson. Excerpt:

6. One Dog Invents Death.

This is the same dog. She lives in a nice house with people. They do not let her run outside a fence and they did things to her so that she can’t have puppies, but they feed her well and are kind, and they rub places on her back that she can’t reach.

At this time, there is no death for dogs, they live forever. After a while, One Dog becomes bored with her fence and her food and even the people’s pats. But she can’t convince the people to allow her outside the fence.

“There should be death,” she decides. “Then there will be no need for boredom.”

- Kij Johnson: Link.

Via Futurismic.

Interesting idea, nicely realized. The story is a finalist for the 2007 Nebula Award — best wishes Kij!

Reminiscent of The Author of the Acacia Seeds
And Other Extracts from the Journal of the Association of Therolinguistics by Ursula LeGuin, as well as Our Neural Chernobyl by Bruce Sterling.

William Frank Buckley, Jr.
November 24, 1925 – February 27, 2008
American author and conservative commentator.

As his smooth genial personality watched over the decades, Buckley observed conservatism in many flavors. There was ultimately nothing unusual about the moment when he called on George Bush to admit the war in Iraq was lost, since Buckley had consistently engaged virtually every social issue in the lifetime that preceded it.

- Lou Cabron @ 10 Zen Monkeys: Link.
February 28th, 2008

William F. Buckley @ Wikipedia