Category: Corruption

They Can Find it In Their Couch

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Apple was just assessed a €13 billion ($14.4 B) fine tax delinquency for using Ireland as a tax haven. Essentially the European Commission ruled that Apple received tax breaks from Ireland that amounted to an illegal subsidy to the computer and phone maker:

Apple has warned that future investment by multinationals in Europe could be hit after it was ordered to pay a record-breaking €13bn (£11bn) in back taxes to Ireland.

The world’s largest company was presented with the huge bill after the European commission ruled that a sweetheart tax deal between Apple and the Irish tax authorities amounted to illegal state aid.

The commission said the deal allowed Apple to pay a maximum tax rate of just 1%. In 2014, the tech firm paid tax at just 0.005%. The usual rate of corporation tax in Ireland is 12.5%.

“Member states cannot give tax benefits to selected companies – this is illegal under EU state aid rules,” said the European competition commissioner, Margrethe Vestager, whose investigation of Apple’s complex tax dealings has taken three years.

Here is where it gets weird: Ireland, which stands to benefit to the tune of €2800 for every man, woman, and child in the country is fighting this, as is the US Treasury department, which one would expect to fight this sort of illegal tax scheme:

Vestager’s ruling prompted an angry response from Apple and from Ireland and is likely to spark a political row between the US and the EU. The US Treasury said the ruling threatened to damage “the important spirit of economic partnership between the US and the EU”.

………

The commission said Ireland’s tax arrangements with Apple between 1991 and 2015 had allowed the US company to attribute sales to a “head office” that only existed on paper and could not have generated such profits.

………

The Irish government, however, wants the ruling reversed because it wants to preserve its status as a low-tax base for overseas companies.

Ireland’s finance minister, Michael Noonan, said Dublin would appeal against the ruling. He said: “The decision leaves me with no choice but to seek cabinet approval to appeal. This is necessary to defend the integrity of our tax system, to provide tax certainty to business and to challenge the encroachment of EU state aid rules into the sovereign member state competence of taxation.”

This was money laundering, pure and simple.

And this won’t really hurt Apple:

Apple, which changed its tax arrangements with Ireland in 2015, should easily be able to pay the huge tax bill because it has a cash mountain of more than $230bn (£176bn) of cash and securities, mostly held outside the US. The tech group keeps the money outside the US because it would be forced to pay US tax charges if it repatriated the money.

It’s pocket change for them, but hopefully this will make further Irish tax shenanigans less common.

I would hope that we would see some more movement in this direction, but the Obama administration, in the person of Jacob Lew, seems determined to prove that only little people pay taxes.

I Am Not Sure What This Means

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ITT Educational Services, you’ve probably seen their ads for ITT Technical Institute, has been prohibited from enrolling new students using any federal aid

It sounds like a big deal, but the educational chain has been circling the drain for a while, so it’s not like the Depoartnebt if Education went after a major going concern.

It has been showing signs of financial distress for some time, and its accreditation has been problematic as well:

The federal Department of Education imposed strict new rules on Thursday on one of the nation’s largest for-profit education companies, ITT Educational Services, barring it from enrolling new students who use federal financial aid and ordering it to pay $153 million to the department within 30 days to cover student refunds if its schools close down.

John B. King Jr., the secretary of education, said the department took action to protect both ITT’s students and the taxpayers who are on the hook for losses when students default on their federal aid. “Looking at all of the risk factors, it’s clear that we need increased financial protection and that it simply would not be responsible or in the best interest of students to allow ITT to continue enrolling new students who rely on federal student aid funds,” Mr. King said in a statement.

 The action threatens the viability of the beleaguered company, which like most for-profit education entities relies heavily on government financial aid programs for students to fund its operations. As of June 30, according to a regulatory filing, ITT had only $78 million in cash on its balance sheet.

Dead School Walking.

ITT operates 137 campuses in 39 states, providing career-oriented programs to 43,000 students at ITT Technical Institute and Daniel Webster College locations. ITT was once a highflying stock, trading above $75 a share in 2012. On Thursday, its shares closed at $1.40.

Ouch.

The company has been under increased scrutiny by the Education Department since 2014 and has been accused by both federal and state regulators of misleading students about the quality of its programs and their employment potential upon graduation. The Consumer Financial Protection Bureau filed a lawsuit against ITT two years ago, accusing the college chain of predatory student lending.

 In addition to the enrollment restrictions imposed by the Education Department, ITT is also prohibited from awarding raises to employees, paying bonuses to its executives or paying special dividends without department approval. In recent years, ITT has not paid bonuses to its executives. Still, Kevin Modany, its chief executive, received total compensation of $1.4 million last year, the company’s proxy statement shows.

 The Education Department also required ITT to develop “teach-out” plans for current students, allowing them to finish their programs at other colleges if ITT shuts down.

 ITT, based in Carmel, Ind., must also inform its students that its accreditor, the Accrediting Council for Independent Colleges and Schools, has determined that the institution is not in compliance with its criteria. That determination was made this month. Earlier this year, ITT said it believed its schools were in compliance, but it also acknowledged that if the schools lost the accreditation, they would no longer have access to government loan programs.

 Those programs are the lifeblood of ITT and other for-profit education companies. Federal aid accounted for almost 70 percent of ITT’s $850 million in revenues last year, the Education Department said.

It would be nice if it happened when predatory for profit schools were not already in a death spiral.

This Explains Why College Costs So Much

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Here is a little sample of the corruption and self dealing that is increasingly at the heart of elite colleges.

The attached link is a series of vignettes, but read the penultimate paragraph, and then read the rest:

So, what we’ve got here is an NYU President handing a New York apartment, meant for faculty, to his son, and what looks rather like powerful faculty members feathering their own nests with cheap housing; we’ve got a Baylor President not wanting to cross a powerful and wealthy football team, even to the extent of failing to handle a rape scandal; and at Penn State we’ve got a President who’s a member of the “innovation cult,” when it’s not at all clear this will benefit the student body as a whole. Have any of these institutions learned from these experiences? No. Are these college Presidents personally responsible for corruption at their universities — for converting a public institution to serve private purposes? Sexton and Start, yes. For Barron, the jury is still out.

Go read.

Those Old Family Ties

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Bummer of a Birth Mark, Jim

One of the stories floating around right now is that Mylan Pharmaceuticals jacked up the price of EpiPens by over 400% over the past few years.

Given the state of the American pharmaceutical industry, we’ve seen something similar from the 3 manufacturers of insulin colluding on price hikes,  it’s not a particularly surprising or unique state of affairs.

What is news however is that Heather Bresch, the company’s CEO, is the daughter of Senator Joe Manchin (D-WV), and Mylan is one of the most generous donors to him.

In fact, a former Mylan lobbyists, Michael Garrison, appointed  president of the University of West Virginia by Manchin when he was governor had to resign in disgrace when he bent the rules to give Heather Bresch an unearned MBA.

So now this linkup is hitting the mainstream news:

The growing congressional scrutiny of pharmaceutical giant Mylan over the high cost of EpiPens could prove awkward for Sen. Joe Manchin.

 The West Virginia Democrat’s daughter, Heather Bresch, is chief executive of the company, which appears to have hiked the price of the epinephrine auto-injector by 400 percent since 2007. The device, which is used to treat severe allergic reactions, now costs more than $600 per dose.

 This price increase has become a public relations disaster for Mylan and at least four of Manchin’s Senate colleagues are either pressing the company to reduce the cost of EpiPens, asking it to explain the price increase or requesting federal regulators to investigate the matter. Manchin is not a member of the Senate Judiciary Committee, which has shown the most interest in probing Mylan’s pricing practices, and so far the senator is not discussing the issue.

Manchin has spent his time in the Senate being a Joe Lieberman Democrat, so I have absolutely no sympathy for the fact that he is getting jammed up by this.

And the Infection Spreads

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The Wheels bus system in northern California has decided to start subsidizing Lyft and Uber:

In a first for California, a public transit agency next month plans to begin subsidizing fares of people who take private Uber and Lyft cars to local destinations rather than riding the bus.

Passengers ordering Uber or Lyft car trips within two test areas of Dublin will be eligible to get door-to-destination service at a big discount under a partnership between the ride-hailing companies and the Wheels public bus system in Dublin, Alameda and Pleasanton.

The Livermore Amador Valley Transit Authority, which operates Wheels, said the one-year pilot project could help pave the way for changes in how public transit agencies in the United States serve suburban areas hampered by far-flung bus routes, few riders and little money from fares.

This is going to end in a morass of corruption and incompetence.

See my post on the city of Arlington, VA considering the same here.

Charter School Fail

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In a bit of news that should surprise no one, it turns out that charter school students do slightly worse later in life than public school students:

Charter school boosters have many arguments in favor of fostering a publicly-financed, privately run parallel education system. But at the end of the day, their model should help kids learn more, perform better, get good jobs and earn a higher salary than they might have otherwise, right?

By that metric, it appears that Texas’ charter schools have failed, according to a large-scale study of kids from the K-12 system through early adulthood.

The analysis was conducted by Will Dobbie, an assistant professor at Princeton, and Roland Fryer, the Harvard economist who in recent years helped Houston ISD adopt charter school methods (you might also remember his name from research on Houston’s police-involved shootings). It uses data from Texas state agencies that tracks student achievement and demographics from primary school, through college, and on to the labor market.

Texas is the ideal laboratory for this kind of study. It introduced charter schools way back in 1995, and they now enroll 3.5 percent of the public school population. The schools have thus had time to refine their methods and work out some kinks, while their students have had time to test their mettle in the labor market.

< The findings: On average, charter schools have no meaningful effect on test scores or employment, and actually have a slight negative impact on earnings. The results are slightly better for so-called “no excuses” charters, which feature stricter discipline and extended instructional hours — they increased test scores and four-year college enrollment and had no effect on earnings. Regular charter schools boosted two-year college enrollment, but depressed test scores, four-year college enrollment, and earnings.

The idea behind charter schools has always been that unleashing the market on education will create amazing result.

It has been about as effective as the idea of “Unleashing Chiang” (Kai Shek) on the communists in mainland China was.

You can read the full study here.

Pass the Popcorn

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First, we have Trump’s campaign manager turfed out in large part because of his lobbying dealings with the former President of the Ukraine.

Now we have a The Podesta Group, founded by Clinton campaign manager John Podesta, and run by his brother Tony Podesta, lawyering up over their involvement with the same corrupt dirtbag:

A prominent D.C. lobbying firm has hired outside counsel over revelations that it may have been improperly involved in lobbying on behalf of pro-Russian Ukrainian politicians who also employed former Donald Trump campaign chairman Paul Manafort.

As first reported by BuzzFeed, the Podesta Group announced Friday that it has retained law firm Caplin & Drysdale to investigate whether or not the lobbying firm unwittingly did work for the pro-Russian political party in Europe that also hired Manafort.

“Unwittingly” my ass.

………

Working on behalf of the European Centre for a Modern Ukraine, the Podesta Group lobbied in Washington for positions favored by the pro-Russian political party, of which deposed former President Viktor Yanukovych was a member. The lobbying work ended in 2014 after Yanukovych fled Ukraine for Russia, where he remains in exile.

The problem here, as it often is in the world of lobbying, is not what is illegal, but what is legal.

Manafort and Podesta are peas in a pod that only differ in their client list.

Wait ……… Who is Calling the EpiPen Manufacturer Vultures?

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The manufacturer of the EpiPen, Mylan pharmaceuticals, has been raising the price of the pens by 15% every 6 months for years.

It’s gotten so bad that pharmaBro Martin Shrelki has just called the company vultures:

A growing chorus is calling on the Mylan pharmaceutical company to justify its price hikes on EpiPens, a potentially life-saving medication for children and others facing fatal allergies that has little real competition.

In 2007, a two-pack of the epinephrine-filled devices went for $56.64 wholesale, according to data gathered by Connecture, a health insurance data specialist. Now it’s jumped to $365.16, an increase of 544.77 percent. Since the end of 2013, the price has gone up by 15 percent every other quarter.

Doctors, parents, patients, and a former presidential candidate are speaking out on social media — and negative comments are filling up Mylan’s Facebook page following an NBCNews.com story Wednesday.

………

Even Martin Shkreli, the disgraced former chief executive of Turing Pharmaceuticals, has weighed in.

“These guys are really vultures. What drives this company’s moral compass?” he told NBC News in a phone interview.

In 2015, Shkreli famously jacked up the price of Turing’s malaria and HIV medicine Darapim overnight, from $13.50 to $750, a move that earned him a grilling by the House Committee on Oversight and Government Reform in February — and the nickname “Pharma Bro” for his seemingly carefree attitude toward affordable medication.

Our model of pharmaceutical production and research and development is fundamentally broken.

We have expanded IP protections on drugs over the past 40 years, and what we have seen is that drugs have become less affordable, and efforts of the drug companies have moved from cures to finding ways to evergreen those IP protections.

A Good Start

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The Department of Justice has announced that it will be ending its use of private prisons:

The Justice Department plans to end its use of private prisons after officials concluded the facilities are both less safe and less effective at providing correctional services than those run by the government.

 Deputy Attorney General Sally Yates announced the decision on Thursday in a memo that instructs officials to either decline to renew the contracts for private prison operators when they expire or “substantially reduce” the contracts’ scope. The goal, Yates wrote, is “reducing — and ultimately ending — our use of privately operated prisons.”

 “They simply do not provide the same level of correctional services, programs, and resources; they do not save substantially on costs; and as noted in a recent report by the Department’s Office of Inspector General, they do not maintain the same level of safety and security,” Yates wrote.

Note that this only applies to federal prisons run by the DoJ, not state and local prisons or immigrant detention facilities maintained by the Department of Homeland Security.

As to whether this policy will move quickly enough, my guess is that we’ll have to wait for the next President.
Memo after the break.

WalMart Doesn’t Just F%$# the Taxpayer Over Welfare, Medicaid, and Foodstamps

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It also deliberately avoids engaging in actions that might reduce drime so as to put the load on the local police as well:

………

 Police chiefs and their officers on the ground say that’s just not so. Ross likes to joke that the concentration of crime at Walmart makes his job easier. “I’ve got all my bad guys in one place,” he says, flashing a bright smile. His squad’s sergeant, Robert Rohloff, a 34-year police veteran who has to worry about staffing, budgets, and patrolling the busiest commercial district in Tulsa, says there’s nothing funny about Walmart’s impact on public safety. He can’t believe, he says, that a multibillion-dollar corporation isn’t doing more to stop crime. Instead, he says, it offloads the job to the police at taxpayers’ expense. “It’s ridiculous—we are talking about the biggest retailer in the world,” says Rohloff. “I may have half my squad there for hours.”

 Walmart knows police departments are frustrated. “We absolutely understand how important this is. It is important for our associates, it is important for our customers and across the communities we serve,” says Judith McKenna, Walmart’s chief operating officer for the U.S. “We can do better.”

 But when? That’s what law enforcement around the country wants to know. “The constant calls from Walmart are just draining,” says Bill Ferguson, a police captain in Port Richey, Fla. “They recognize the problem and refuse to do anything about it.”

 There’s nothing inevitable about the level of crime at Walmart. It’s the direct, if unintended, result of corporate policy. Beginning as far back as 2000, when former CEO Lee Scott took over, an aggressive cost-cutting crusade led many stores to deteriorate. The famed greeters were removed, taking away a deterrent to theft at the porous entrances and exits. Self-checkout scanners replaced many cashiers. Walmart added stores faster than it hired employees. The company has one worker for every 524 square feet of retail space, a 19 percent increase in space per employee from a decade ago.

 ………

 Police departments inevitably compare their local Walmarts with Target stores. Target, Walmart’s largest competitor, is a different kind of retail business, with mostly smaller stores that tend to be located in somewhat more affluent neighborhoods. But there are other reasons Targets have less crime. Unlike most Walmarts, they’re not open 24 hours a day. Nor do they allow people to camp overnight in their parking lots, as Walmarts do. Like Walmart, Target relies heavily on video surveillance, but it employs sophisticated software that can alert the store security office when shoppers spend too much time in front of merchandise or linger for long periods outside after closing time. The biggest difference, police say, is simply that Targets have more staff visible in stores.

 “Target doesn’t have these problems,” says Ferguson. “Part of it may be the lower prices at Walmart or where Walmart is located, but when I walk into Target I see uniformed security or someone walking around up front. You see no one at Walmart. It just seems like an easy target.” A Target spokeswoman declined to comment on the two companies’ security policies.

 ………

 Dennis Buckley found a way to get Walmart moving faster on crime: shaming and threats. A blunt former fire chief, Buckley is the mayor of Beech Grove, Ind., an Indianapolis suburb with a population of 14,000. He’d been swamped with complaints from his police chief about the daily calls to Walmart. He demanded action from Walmart’s local lawyer, as did the City Council. Nothing happened. Then, in June of last year, Buckley reached his limit. He received news that a local woman had been killed and her grandson seriously injured in a car crash caused by a Walmart shoplifter fleeing police. Later that day, he learned his town had become a laughingstock. A YouTube video of a fight at the Beech Grove Walmart was going viral. It showed two women, one riding a motorized scooter, the other accompanied by a 6-year-old boy, in a furious fistfight that turned into a profane wrestling match in the shampoo aisle. The video also contained glimpses of jeering bystanders recording the action on their phones. By the time Buckley saw the video, it had been viewed millions of times.

 Enraged by the circus atmosphere around the video, he denounced Walmart on Facebook and in the local media. “The Beech Grove Walmart is NOT a good corporate partner,” he posted. The YouTube video “was embarrassing to the City of Beech Grove and the people who live in our beautiful city. Walmart should be ashamed of itself once again for failing to control the people who enter their store.”

 Regional Walmart executives asked for a meeting with Buckley and Craig Wiley, the city attorney. “You could tell by their body language that they came to the meeting with a very conciliatory tone, and they were going to get their arms around the problem,” Wiley says. Walmart promised to hire security and extend a fence on the rear of its property, which barred an easy exit for shoplifters into a retirement community. It said it would skip calling the cops for first-time offenders shoplifting merchandise valued below $50 if the shoplifter completes the company’s theft-prevention program.

 Buckley was pleased. But in the weeks following the meeting, Walmart dragged its heels. Buckley went public again, this time appearing on national cable news. “Walmart Beech Grove is draining our police resources,” he told Fox Business Network. “It’s the string of terrible events that have been occurring down there over the past two months that have led me to instruct our police chief to declare the Walmart a public nuisance.”

 That meant the threat of a $2,500 fine for every call to the police. Walmart now pays for off-duty police to man the store, and the pressure on the local police has eased. A year later, Buckley is pleased, but it still irks him that he had to go to such measures to get Walmart to act. “Cities really need to put their thumb down and get them to the table,” he says. “It’s taken a long time, but they can really be good partners if they want to be.”

(emphasis mine)

Yet another reason to avoid the stores.

For many years their business model has been to suck the marrow out of society for profit, and I do not see this changing.

H/t Naked Capitalism.

How Many Times Does This Lie Have to Be Disproved?

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Time and time again, when arguing for outsourcing and skill based immigration programs like H1B and L1A programs, business argue that there are simply not enough skilled workers in the US.

Time and time again, these claims have proved to be complete fabrications:

For years, employers, pundits and policymakers alike have bemoaned the lack of qualified workers available to fill vacant manufacturing jobs in the U.S.

Despite the prominence of the skills-gap debate, a new paper co-written by a University of Illinois expert in labor economics and workforce policy finds that the demand for higher-level skills in U.S. manufacturing jobs is generally modest.

Three-quarters of U.S. manufacturing plants show no sign of hiring difficulties for open positions, says new research from Andrew Weaver, a professor of labor and employment relations at Illinois.

“Not a week goes by without someone declaring that a huge skills gap exists in the U.S. workforce,” he said. “A lot of ink has been spilled on this topic, but it’s frequently without evidence. The popular sentiment encourages people to think that employers have high skill demands, but U.S. workers just aren’t up to snuff, and that’s why manufacturing work is being outsourced overseas.”

However, the results show that U.S. manufacturers are generally able to hire the skilled workers they seek.

“We estimate an upper bound of job vacancies due to a potential skills gap of 16 to 25 percent of manufacturing establishments – a finding that sharply contrasts with other surveys that have reported figures of more than 60-70 percent,” Weaver said.

It’s not that business cannot find appropriately skilled employees, it’s that they don’t want to pay them a fair market wage, and so they try importing workers and exporting jobs.

Metadata Fail

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California State Assemblyman Adam Gray demanded an expensive and potential paralyzing audit of the California Air Resources Board, in what was a blatant attempt to hamstring the organization.

Environmentalists, and anyone with two brain cells to rub together, suggested that he was doing the bidding of lobbyists.

Mr. Gray denied that he was carrying water for the fossil fuel industry, but it turns out that not only was he metaphorically carrying their water, he was literally carrying their letter.

Metadata from the document showed that it had been drafted by a lobbyist:

………

“I think the environmentalists are going to point you over here and say he’s taking oil money, he’s trying to block the program,” Gray said in an interview. “I’m not trying to block the program. I’m for fighting climate change.”

But in pushing for the audit, Gray got a big assist from the oil industry. The industry’s main lobbyist wrote the request.

Metadata in the Microsoft Word document in the draft request obtained by the Los Angeles Times shows that its author is Eloy Garcia. Garcia is the lead lobbyist for the Western States Petroleum Assn. or WSPA, which represents oil companies in Sacramento.



The letter that Gray and more than a dozen other lawmakers sent to the Joint Legislative Audit Committee on Aug. 4 was word for word the same as Garcia’s draft.

First, Adam Gray is completely, and most deservedly, owned.

Second, how many times does this have to happen before people get a clue? 

Information on removing the metadata is a quick Google search away.

Ka Ching!

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Guess what, despite the fact that the US spends more on defense than the next 7 nations, we still need to flush even more money down the toilet to combat coming Russian and Chinese technological superiority:

The fight against the Islamic State may get the headlines. But it’s the military threats from Russia and China that most worry top Pentagon officials — and are driving a new arms race to deter these great-power rivals.

This question of how to deal with Russian and Chinese military advances has gotten almost no attention in the 2016 presidential campaign. But it deserves a careful look. The programs begun in the waning days of the Obama administration could potentially change the face of warfare, in the United States’ favor, but they would require political support and new spending by the next president.

A drive to build exotic versions of conventional weapons may sound crazy in a world that already has too much military conflict. But advocates argue that strengthening U.S. conventional forces might be the only way to avoid escalation to nuclear weapons if war with Moscow or Beijing began.

Deputy Defense Secretary Robert Work argued for the new deterrence strategy in a presentation this month to the bipartisan Aspen Strategy Group, amplifying comments he made to me in an interview in February. The approach, awkwardly named the “third offset strategy,” would leverage the United States’ technological superiority by creating weapons that could complicate attack planning by an adversary.

The premise is that as Russia and China modernize their militaries, the United States must exploit its lead in high-tech warfare. In the world envisioned by Pentagon planners, the United States could field an array of drones in the sky, unmanned submarines beneath the seas and advanced systems on the ground that could overwhelm an adversary’s battle-management networks. Like the two previous “offsets,” battlefield nuclear weapons in the 1950s and precise conventional weapons in the 1970s, this one would seek to restore lost U.S. military dominance.

Those lucrative retirement gigs for Generals don’t pay for themselves.

The US military is looking at reducing the number of troops, to pay for the bling, which is exactly the wrong thing to do.

The markedly inferior Grumman F4F Wildcat achieved a 6.9:1 kill ratio over the Mitsubishi A6M Zero, an aircraft that could literally fly rings around it.

They did so because of superior tactics, superior situational awareness (better radar and radios), and a training regime that produced better trained pilots more quickly.

Technological superiority does not necessarily win wars.  Ask a Tiger tank commander in WWII about that.

From Libertarian Ubermensch to Sucking at the Taxpayer’s Tit

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The city of Arlington Virginia is looking at paying Uber to take people to metro stops:

Arlington County is looking to partner with transportation providers such as Uber and Lyft to offer residents rides from more remote residential areas of the county where bus service to Metro stations is limited.

The on-demand option would replace some fixed bus service in north Arlington.

“What we would be supporting is picking up residents in their neighborhood and taking them to one or two designated stops, most likely a transit station,” said Marti Reinfeld, the county’s interim transit bureau chief. “The county will subsidize that at some level.”

It could take a couple of years before such a program launches, but county transportation officials say they want to do so as soon as possible. Arlington joins a growing number of U.S. transit agencies that are exploring partnerships with the popular app-based companies to leverage their success and improve service to residents.

I guess that Uber is changing its business plan:  Instead of just abusing and endangering drivers and passengers, they will now also suck up taxpayer money that would otherwise go to providing decent mass transit.

This has “fail” written all over it.

My Next Computer is not Going to Be Windows 10

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The latest Microsoft operating system is a privacy horror show:

By default, Microsoft gets to see your location, keystrokes and browser history — and listen to your microphone, and some of that stuff is shared with “trusted [by Microsoft, not by you] partners.”

You can turn this all off, of course, by digging through screen after screen of “privacy” dashboards, navigating the welter of tickboxes that serve the same purposes as all those clean, ration-seeming lines on the craps table: to complexify the proposition so you can’t figure out if the odds are in your favor.

Oh, and if you’ve already chosen to use Firefox as your default browser, Microsoft overrides your decision when you “upgrade” and switches you to the latest incarnation of the immortal undead monster formerly known as Internet Explorer.

See also here, where they note that you cannot shut the service off except by getting deep into dodgy operating system functions, and it listens to everything that you say.

A ain’t gonna go Mac though:  I hate walled gardens, so it’s probably some flavor of Linux for me next time around.

Once Again, We See Cooperation Working Better than Capitalism

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A rural cooperative in Mexico has gotten a permanent license, andit has delivered a service an order of magnitude cheaper than the private politically connected crony capitalists running most of Mexico’s cell phone services:

Until this month, Celia Pérez could only afford a brief weekly call to her husband, Rubén Martínez, who left left their remote rural community in Mexico two years ago to find a job in the United States.

Pérez, 25, was pregnant with their third child when Martínez headed north; he made it to New Jersey and regularly wires home money from his construction job, but the long separation and infrequent calls have been tough on everyone.

Now, a legal triumph by indigenous activists has cracked the monopoly enjoyed by Mexico’s powerful telephone magnates – including the world’s richest man, Carlos Slim – and opened the door to new services which will slash the cost of communication.

Indigenous Communities Telecommunications (TIC) last month won a long battle with the government to become the world’s first not-for-profit group to be granted a mobile phone concession.

………

A handful of public phone booths are hosted in the village’s few shops. Until recently, Pérez paid 15 pesos ($0.80) a minute to call her husband. Once a month, she would travel two hours to Tlaxiaco – the nearest town with mobile phone signal and 3G internet – to send him photos of their young children.

………

An experimental concession was awarded in May 2014, allowing affordable, community-owned telephone services to be installed in 16 communities in Oaxaca over the next two years.

In July 2016, TIC – which works alongside Rhizomatica – was granted the first-ever permanent licence.

………

Nuyoó is the first community to benefit from the July victory.

In all, it cost 180,000 pesos ($10,000) for the equipment and installation – a third of what one multinational provider wanted to charge.

Subscription is free, but each registered user must pay 40 pesos a month – 15 goes to TIC to cover overheads and serious repairs – and the rest stays in the community to cover the upfront running costs.

Calls within the network – which includes 17 communities so far – are free. International and national calls are cheap: one peso will buy five minutes to US.

My bad. It’s not an order of magnitude. It’s a factor of 75, so it’s 7½ times more than an order of magnitude.

Carlos Slim is the richest man in the world because he can charge 75 times the actual cost, and he has the concession because he is politically connected.

When people talk about the virtues of capitalism, they ignore this sort of corrupt reality .

The Reality of Private Internet Service Providers

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The DC Court of appeals just overturned the FCC ruling invalidating state bans on municipally owned internet service providers:

Federal regulators just suffered a major setback in their efforts to help cities build Internet services that compete with large providers such as Comcast and Time Warner Cable.

 In a federal-court decision Wednesday, the Federal Communications Commission was told that it doesn’t have the power to block state laws that critics say hinder the spread of cheap, publicly run broadband service.

Rather ironically, the feel good story of the day is how a cooperative of rural communities in Minnesota jsut put together their own high speed internet services.

These services are both better and cheaper than the commercial alternatives:

Seven years ago, Winthrop, Minnesota, population 1,400, decided it needed an internet upgrade.

Most local residents were served by companies like Mediacom, which Consumer Reports consistently ranked among the country’s worst internet providers. Slow connection speeds made work difficult in local schools and businesses, but farmers outside of town, who increasingly rely on connectivity to do business, experienced the worst of it.

Fourteen miles from Winthrop, in Moltke Township, population 330, one soybean- and wheat-farming family reported its sluggish DSL connection often made it impossible to upload reports to business partners.

Organizers in Winthrop knew they were too small to fund a major internet infrastructure-building project on their own, so they reached out to other neighbors, the town of Gaylord, population 2,305.

And the towns attracted 25 more municipal allies.

Today, in this sparsely populated swath of Minnesota, a grassroots, member-owned cooperative spanning more than 700 square miles and four counties is poised to expand high-speed broadband access — without relying on federal funding. After seven years of development led by local leaders and volunteers, RS Fiber, now in its first phase of construction, is expected to deliver high-speed broadband internet to more than 6,000 rural households by 2021. And unlike companies like Mediacom, the co-op is owned by local customers who have a say in rates and how it’s operated.

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Once complete, the RS Fiber network is expected to match the 1 gigabit top speeds of cities like Cedar Falls, a milestone that would make southern Minnesota the envy of rural America. According to recent data, only 55 percent of rural residents have access to broadband internet faster than even 25 Mbps (compared to 94 percent of urbanites). Moreover, the investment already holds promise for boosting the local economy. In May 2015, the Minnesota College of Osteopathic Medicine announced plans to set up services in an old school building in Gaylord — a decision officials said was because of RS Fiber’s infrastructure investment.

US internet performance has been lagging since the 1990s because the mantra of unleashing the market has led to monopoly providers and monopoly rents, which in turn leads to higher prices and lack of investment in infrastructure.

From a business perspective, it makes sense for the ISPs to suck wet farts from dead pigeons.

From a societal perspective it is a disaster.

David Sirota Collects Another Scalp

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Last month David Sirota’s reporting revealed conflicts of interest in the review of the merger between Anthem and Cigna, resulting in regulatory and political push-back against the deal.

This month, his reporting of Chris Christie’s sweet heart deals with political contributor hedge funds has led to the New Jersey pensions backing away from the deals:

Governor Chris Christie’s pension officials on Wednesday signed off on a major divestment of hedge funds — a move that is expected to save taxpayers and retirees tens of millions of dollars in fees that had been flowing to Wall Street. The decision caps an intensifying campaign against the hedge fund investments by groups representing retirees.

 The campaign was prompted by an International Business Times investigative series that first spotlighted the skyrocketing fees.

 At a meeting of the Christie-controlled State Investment Council, pension officials cut in half the amount of state pension money that will be allocated to hedge funds, according to a press release from the New Jersey state AFL-CIO. That $3 billion reduction was part of an overall reduction of pension investments in higher-risk “alternative investments” that generate big fees, but whose returns have in many cases failed to keep pace with low-fee stock index funds. In all, the reduction in hedge fund investments is expected to save more than $120 million in fees next year, according to the labor federation, whose retiree members rely on the pension system.

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 After a decade of public pensions pumping more retiree money into alternative investments, new questions have recently been raised about the fees and returns generated by the strategy. Major pension funds in California and New York have reduced their investments in hedge funds.

Back in 2014, before the national debate over pension fees had intensified, IBT first began reporting on how Christie’s administration had significantly increased the amount of pension money flowing to high-fee alternative investment firms. The two-pronged year-long series explored the politics of pension investments as well as the revenue implications of the investment shift.

 Under Christie, pension investments flowed to politically connected firms whose employees had delivered campaign donations to Christie-linked political groups. IBT also documented how Christie’s political team was in contact with the governor’s top pension adviser. That adviser’s private firm concurrently invested in a fund he had directed public pension money into. The adviser subsequently resigned after the state’s largest labor federation filed an ethics complaint against him.

So, these Gaultian supermen on Wall Street have once again been proved to be, “parasites”, “looters”, and “moochers.”

We need to shut down this sort of unproductive rent seeking.

Not a Surprise………

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Three top officials at the Democratic National Committee are now former officials of the DNC:

Three top officials at the Democratic National Committee will leave their posts this week amid the controversy over the release of a cache of hacked emails from the committee.

Chief executive Amy Dacey, Chief Financial Officer Brad Marshall and Communications Director Luis Miranda will leave the DNC just days after a new leader took the helm.

A trove of nearly 20,000 emails were posted on WikiLeaks last month. They included some emails that raised questions about the faith of Democratic presidential nominee Hillary Clinton’s primary rival, Sen. Bernie Sanders (Vt.), and others that seemed to disparage donors.

This is not a surprise.

Dacey and Marshall had the now infamous email exchange about targeting Sanders on his religion, and Miranda was hired by Debbie Wasserman-Schultz and functioned primarily her personal publicist.

The organization needs to be fixed, and this will mean more than just getting rid of DWS toadies at the organization.