We are developing the social individualist meta-context for the future. From the very serious to the extremely frivolous... lets see what is on the mind of the Samizdata people.
Samizdata, derived from Samizdat /n. - a system of clandestine publication of banned literature in the USSR [Russ.,= self-publishing house]
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An agency of the US Federal Government, the Economic Development Administration, has as its stated aim:
To lead the federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy.
They also want to make, “Investments that promote job creation and economic prosperity through projects that enhance environmental quality and develop and implement green products, processes, places, and buildings as part of the green economy.”
After discovering malware on some computers, they started destroying all their IT equipment:
EDA’s CIO concluded that the risk, or potential risk, of extremely persistent malware and nation-state activity (which did not exist) was great enough to necessitate the physical destruction of all of EDA’s IT components. EDA’s management agreed with this risk assessment and EDA initially destroyed more than $170,000 worth of its IT components, including desktops, printers, TVs, cameras, computer mice, and keyboards. By August 1, 2012, EDA had exhausted funds for this effort and therefore halted the destruction of its remaining IT components, valued at over $3 million. EDA intended to resume this activity once funds were available. However, the destruction of IT components was clearly unnecessary because only common malware was present on EDA’s IT systems.
The cost of the entire episode, including hiring contractors and obtaining temporary replacement equipment was $2,747,000.
This figure will be added onto the USA’s GDP, of course. But we all know that this is not really an exception to the rule that government agencies do the exact opposite of their stated intentions.
See also coverage of this story at Forbes and The Register.
By the way, does it even make sense to attempt to promote both job creation and economic prosperity in the same breath?
Daniel Drezner – who like me, is a Salma Hayek fan – has an article up in the latest edition of the UK’s Spectator (behind a paywall), entitled, “America is Back: Why The superpower is beating the slump – and Britain isn’t.”
There is a lot of good in the article. Drezner contrasts the go-for-it approach to shale gas – “fracking” – in the US with the Green-induced obduracy of the UK government, although I suspect there might be changes here. He talks about the revival of US manufacturing, in part due to the issue of sharply falling energy costs. He notes that the US budget deficit, as a percentage of the national economy, has fallen.
Even so, the scale of the debt that the US has is huge; and it is far from clear to me that that country – or indeed other indebted Western nations – can look to recent US actions with much relief.
So what to make of this?
“The US system of government has been surprisingly nimble despite its perceived political paralysis. In the five years since the financial crisis, Congress has passed legislation that saved the US financial system, rescued the car-making sector, enacted the largest fiscal stimulus programme in the world (which contained substantial tax cuts), overhauled its financial regulation, passed ambitious health care legislation, and then took steps to control spending.”
Oh boy. Let’s take these in order. First of all, is it really the case that it was legislation that “saved the US financial system”? What happened was that the US taxpayer, at vast cost, bailed out the Citis, Goldmans, AIGs and the rest. While the subsequent return of TARP money may have happened at a profit, we ended up with a banking system more rigidly regulated than before under the vastly complex, and possibly, unconstitutional, Dodd Frank legislation. The US financial system is also far more concentrated than before: about half a dozen big – “too big to fail” – banks such as Wells Fargo, BoA and JP Morgan now have control of a big chunk of the total market. Is this sustainable?
Second, the “rescue” of the US car-making industry. I assume that Drezner is talking about the bailouts of GM (and done at the expense of bond-holders in GM and to the benefit of Obama-voting unions). It is the good fortune of the auto sector in the US that cheaper energy makes that industry more competitive against overseas rivals, but the Washington DC has precious little to do with that, other than the negative achievement of not messing it up, or at least not much.
The large fiscal stimulus programme: it is a case of “not proven” as to whether there was much of a clear, Keynesian multiplier effect to justify the enormous sums spent. Peter Suderman at Reason magazine suggested the impact was possibly actually negative a few months ago.
Financial legislation overhaul. Well, all I can say about Dodd Frank is that if this is an overhaul, goodness knows what a bad piece of legislation will look like. Again, a book from the Mercatus Center suggests that Dodd Frank may encourage further crises.
The health care legislation is “ambitious”. Well, instead of ambitious, one might want to say “downright reckless” or something else. The legislation takes the US closer, much closer, to the socialised medical regime that Britain has, with its decidedly mixed results, as shown by the Mid-Staffs scandal.
So yes, America is resilient, and yes, rumours of demise are greatly exaggerated; yes, it is not obvious that China is taking over the world and some of the more breathless boosters of Asia need to get a sense of perspective. That is all fair enough. But spare us too much gush the other way, even though annoying the America-bashers is always good fun.
Here is another piece by Dan D, “Who’s your economic hegemon now?”
Meanwhile, it would be good if the US could wake up to the annoyance caused abroad by such things as the FATCA legislation, which is and remains an awful piece of regulation, although I suspect it will be moderated and changed over the years.
We need to get people of all races, colours, and creeds to come together and agree with Sharon Kyle.
– Jim Treacher is not impressed by the Netroots Nation 2013 version of “diversity”.
David Thompson also likes the bit with this sentence in it.
How many here remember the discussions early in the previous decade about Admiral Poindexter and his Total Information Awareness concept? If one were to apply neural network techniques to VISA transactions, then a system might learn to identify subtle patterns that matched known terrorist events and might be usable to detect precursors to as yet unknown plots. The more data and the more different sources, the better the chance of training such networks to find patterns. Of course the numbers of false positives would be huge at first… and although it would go down over time, it would still remain fairly large as there is just too much noise in real world data and real terrorists would try to randomize their behavior after a few got caught.
I believe the concept is sound, the only problem is… it is utterly Orwellian. No, it is worse than Orwell imagined. It is the Holy Grail and wet dreams of the Checka, the KGB, the Stasi, the Gestapo and every other secret police system of the last century. The sad thing is that this has come to pass not in one of the many tyrannical states of the world… they are too incompentent to pull it off… but here, in our formerly free United States.
After much thought I have come to believe that Poindexter’s system was not rejected for funding and laughed out of congress as we thought at the time. That was nothing but a cover story as the whole thing slipped into the black world.
If this is TIA Black, we had better start challenging VISA, AMEX and all the others who process financial transactions. I predict that nearly every credit and debit card transaction in the US is being fed in along with the phone records and the google files and facebook pages and private email.
It is a virtual certainty. This isn’t 1984. It is much worse because as the techniques improve it becomes Skynet starring as Big Brother.
Not everyone is an entrepreneur. Still, everyone should try—if only once—to start a business. After all, it is small and medium enterprises that are the key to job creation. There is also something uniquely educational about sitting at the desk where the buck stops, in a dreary office you’ve just rented, working day and night with a handful of employees just to break even. As an academic, I’m just an amateur capitalist. Still, over the past 15 years I’ve started small ventures in both the U.S. and the U.K. In the process I’ve learned something surprising: It’s much easier to do in the U.K. There seemed to be much more regulation in the U.S., not least the headache of sorting out health insurance for my few employees. And there were certainly more billable hours from lawyers.
– Niall Ferguson.
I am not quite sure about his assertion about the UK being so much freer, but I get the general point. By the way, I have just returned from a week in Singapore, and the pro-capitalist vibe there is so strong you could almost put in a bottle. (Actually they do: you go to the bar at Raffles Hotel, natch.)
Facebook, Google etc are falling over themselves to deny that they have given the US espionage organisation the NSA direct access to their servers and customer information.
And to put it bluntly, there is simply nothing they can say that would make me believe them.
Why? Three reasons:
Firstly, it is very much in their commercial interest for customers not to take the view that their personal information can be browsed pretty much at will by American civil servants for whatever reason they can contrive.
Secondly, very few people within Facebook and Google would actually be privy to any involvement with PRISM, so much of the shock being expressed will no doubt be genuine (I know some quite highly placed technical people within both Google and Facebook and I would totally believe them if they told me to my face they found this all hard to believe, but then none of them are at board level, so unless they needed to know…).
Thirdly and most importantly, the court orders giving blanket access include threats if they reveal they are cooperating with the court order. In short, they are required by law to lie about their cooperation if asked.
IT IS FURTHER ORDERED that no person shall disclose to any other person that the FBI or NSA has sought or obtained tangible things under this Order, other than to: (a) those persons to whom disclosure is necessary to comply with such Order; (b) an attorney to obtain legal advice or assistance with respect to the production of things in response to the Order; or (c) other persons as permitted by the Director of the FBI or the Director’s designee.
So it really does not matter what Facebook and Google et al says, does it?
UPDATE: This is a very interesting suggestion… in short, once they got Verizon (i.e Tier One) they actually did not need much cooperation from the people downstream. Fascinating stuff. I wonder to what extent that is actually true.
From a security point of view, the trouble with cloud-based applications and closed source software in general is that you can never tell whether there are flaws that will leak your information or even back doors put there deliberately to allow third parties to get at it.
Open source software gives you many advantages.
You can understand exactly what the software will do when run. Strictly speaking you can understand what any software does, but source code written in a high level language serves the purpose of both telling the computer what to do and telling humans what the program is intended to do. This is because classes, functions and variables in the program are given English names. Programmers may even write comments in the source code to annotate it. The names and comments may be misleading but this becomes apparent when you look at what code does as a whole. If you can not personally understand the program, you can be reasonably sure others do. One thing that gives me confidence is that previous flaws have been found and fixed.
You can be sure you are running the same software you have gone to the trouble of understanding because you can compile it yourself. You can compile the user applications, libraries, operating system kernel, drivers and even the compiler yourself if you want. More usually you will entrust most of this work to others such as Linux distributions. Programs downloaded from such sources are cryptographically signed. Becuase the source code is available anyone can check that the source code produces the same program that is provided pre-compiled.
So there is little likelihood of a back door in open source software. Linus’s Law states that many eyes make bugs shallow. This means that bugs in open source software, especially the most important and most widely used open source software, get fixed quickly. In The Cathedral and the Bazaar, Eric Raymond described how the Linux style of development leads to superior code quality. All this means there is less likelihood of accidental leakage of your secret information.
Should they decide they do not like us encrypting our files or obscuring our online activity, it would be very hard for authorites to take open source software away. The nearest they have got is the Consumer Broadband and Digital Television Promotion Act which was intended to protect music companies who wanted to put DRM into music by making trusted computing compulsory. The idea was that computers would be required to have a special chip that would only let them run programs that would be cryptographically signed by some authority. You would not be able to run your own programs.
The bill got nowhere and such laws are unlikely to because open source software is so ubiquitous. It runs the Internet. Samizdata runs on a computer running the Linux kernel using GNU libraries and uses an open source web server, database and blogging software written in languages compiled by open source compilers and interpreted by open source interpreters. So do everyone else’s web sites. Most of the electronic gadgets in the world that have any software at all have open source software in them, including phones and TVs. None of this is going away.
As much as Google and Microsoft have brands to protect, if the government makes laws big companies have to follow them. Governments have no such hold over open source programmers who are geographically, organisationally and ideologically dispersed.
The people who write GNU Privacy Guard or OpenSSL are not going to put a back door in their software. If they did it would be spotted and someone could simply fork the project.
It is possible that certain algorithms have mathematical back doors and that the NSA has hired all the people clever enough to find them. It is possible that the NSA tried this with a cryptographic random number generator and were caught out. We can be somewhat confident that the NSA can not break AES encryption. There are other encryption algorithms available.
Nothing is certain, but open source software gives us some control over our computers and some defense against governments that closed corporate software never can.
The media and blogosphere are abuzz with the astonishing info-grab by the US government…
The National Security Agency is currently collecting the telephone records of millions of US customers of Verizon, one of America’s largest telecoms providers, under a top secret court order issued in April.
The order, a copy of which has been obtained by the Guardian, requires Verizon on an “ongoing, daily basis” to give the NSA information on all telephone calls in its systems, both within the US and between the US and other countries.
The document shows for the first time that under the Obama administration the communication records of millions of US citizens are being collected indiscriminately and in bulk – regardless of whether they are suspected of any wrongdoing.
I assume the Guardian got this information because someone inside Verizon said “fuck this” and leaked it. I also hope the Guardian has the ghoolies to well and truly protect their source.
The formula to determine how much each employee gets to keep for living expenses is called “the tax code,” and those who contribute to the national product are called “taxpayers.” The managers deciding how the pile is spent are “politicians,” who are chosen every two years in a shareholders’ meeting called an “election.” This system worked pretty well for quite a long time – until recently. It is only within the last few years that something remarkable happened: The number of contributing “taxpayers” in the country for the first time has fallen to approximately 50% of the population. Meanwhile, the number of unemployed, retired, disabled or indigent citizens grew, as did the number of citizens who earned so little in part-time or low-paying jobs that they paid no taxes, as did the number of people labouring in the untaxed underground economy, as did the number of bureaucrats.
The end result of this epochal demographic and economic shift is that for the first time in American history, the people who actually work for a living and contribute to the common good – the “proletariat” in Marx’s version, and the “taxpayers” in ours – no longer control the company. Vote-wise, the scales have tipped in favour on the non-contributors and the bureaucrats, and suddenly they are the ones making the decisions about what to do with our collective gigantic pile of money – while those who actually created the pile through their work and tax contributions have become powerless. It is outrage over this very power shift that spawned the Tea Party, which is essentially a movement of taxpayers angry that they no longer get to determine how their taxes are spent. Historically speaking, the Tea Party movement can be accurately defined as a workers’ revolution.
– Zombie, these two paragraphs having already been picked out this morning by David Thompson as deserving of wider circulation and cogitation. The words Thompson uses to introduce them: “Where Marxism meets the Tea Party”.
We in the UK arrived at the situation described above in the late 1970s, and I have long suspected that the USA is now also having its Thatcher Moment, the Tea Party being Thatcher, and President Obama being Arthur Scargill.
Everyone in America who cares knows that President Obama has for years been encouraging his supporters within the governmental machine to use their governmental powers to harass his political opponents. You have to be deaf, dumb, blind, and living a lot further away from America than I do, not to have known about this for a long time. When it comes to IRS harassment of those he objects to, President Obama has been behaving absolutely as transparently as he promised he would.
To talk now of a “smoking gun” is like witnessing the Battle of Waterloo and saying: “Hah! A smoking gun! Over there!” True, but daft.
A serious defence of President Obama in this matter, from him or from anyone else, cannot be based on the claim that he has not been behaving as he has been behaving. The serious argument is about whether it matters how he has been behaving, and if it does matter, whether it is a good or a bad thing. To defend Obama, as his wiser supporters already realise, must mean defending what he has quite obviously and publicly been doing.
Which might well work, because it is also clear that a great many Americans do agree with what President Obama has been doing. They want big government, and they want the big government they already have to silence anyone who doesn’t want big government.
Nile Gardiner has this to say about the Obama administration:
This week, thanks to unprecedented levels of Congressional and mainstream media scrutiny of the actions of the Obama administration, the American people have been given a powerful insight into the way in which this presidency has operated. For far too long, the Obama administration has acted like an imperial court rather than a government that is accountable to the nation. The White House’s culture of arrogance and impunity, coupled with a deeply unpleasant vindictiveness, is increasingly there for all to see. Suppression of political dissent, a callous disregard for the loss of American life in Benghazi, and the relentless rise of big government – these will be three of the most of enduring images of Barack Obama’s imperial presidency.
In some ways, however, one could argue that the thuggery, deviousness and unpleasantness of this administration – and let’s not forget the Fast and Furious scandal, which is arguably the worst of all of them – in some ways shows that Barack Obama and his colleagues are not particularly crafty men (and women). If they were really as smart as some think, they would not have allowed some of these disasters to have seen the light of day. Perhaps what the stories suggest is that – as Brian Micklethwait suggested in a comment thread note the other day – that years of enjoying a placid, supine MSM meant that Obama and his colleagues got cocky. They probably thought that no matter how bad behaviour was, whether it was the ACORN episode, the blame-the-other-side nonsense over the budget impasse, Fast and Furious, Libya, insults to old friends (the UK, Poland), failure to shut down Gitmo (as promised), the IRS harassments, the AP phone record stories, etc, etc, that nothing would happen. Jon Stewart would continue to mock mostly Republicans. The MSM would, at most, treat these and other episodes as distractions. (At Reason magazine, here is an example, nicely dissected.) But I think what the administration failed to see is that even in a situation like this, cockiness will lead to a series of disasters and scandals so bad that even usual allies wake up. There is a certain inevitability. The passing of time means memories of how glamorous and appealing Obama seemed have faded.
Another point is that when Obama was elected, the expectation was enormous, although commentators at the time, such as Glenn Reynolds in the US and James Delingpole in Britain pointed out the gulf between the rhetoric, the image, and the reality. That gap has become so vast, and so difficult to ignore, that the media coverage of Obama is getting worse and worse. And all the while voters in the US are understanding that the sort of people who run the IRS will be running healthcare. Marvellous.
Eventually, even Andrew Sullivan will slag him off. Then it’s all over.
It’s not possible to prevent people, particularly people whose goal is power, from abusing it. All we can do is deprive them of it.
– This comes near the end of a very good piece by Rand Simberg about the IRS, what it did, why, and what to do about it.
Which is what our own Jonathan Pearce also said recently.
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Who Are We? The Samizdata people are a bunch of sinister and heavily armed globalist illuminati who seek to infect the entire world with the values of personal liberty and several property. Amongst our many crimes is a sense of humour and the intermittent use of British spelling.
We are also a varied group made up of social individualists, classical liberals, whigs, libertarians, extropians, futurists, ‘Porcupines’, Karl Popper fetishists, recovering neo-conservatives, crazed Ayn Rand worshipers, over-caffeinated Virginia Postrel devotees, witty Frédéric Bastiat wannabes, cypherpunks, minarchists, kritarchists and wild-eyed anarcho-capitalists from Britain, North America, Australia and Europe.
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