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]

Of on-line music and competing mafias

The article by one of our contributors yesterday about Russian on-line music business allofmp3.com raises all manner of fascinating issue that I think should be pondered.

It has been argued by some of the commentariat that “whether you approve of the morality of the western music business or not, the goods belong to them and the artists” and thus as “one of the driving principles of this site [Samizdata.net] is respect for property rights, not glorifying those who steal, whether it be the state or someone else”, presumably we should be more critical of this. These are reasonable positions to take and certainly I would not want anyone to think Samizdata has anything less than complete enthusiasm for private property rights. However I also think with regard to this (which is to say the sale of music on-line in a manner which is against the wishes of the businesses who own/created the music) the view that property rights are being violated is not correct.

In fact I would say that notion is exactly the wrong way around. Like it or not, music is now a commodity that is traded by weight in an international market and therefore the creator has only residual rights to how that commodity is subsequently resold. The model allofmp3 uses does indeed pay something to the creators of the music and refusing to acknowledge that things have changed and that recorded music is no long a physical good is pointless.

It may not be the business model originally envisaged by the music creators but that is the only viable one that remains to them. The market price for their product is now about 12¢ a track and if that (or their cut of that) is not enough for the music’s creators, well I guess they should stop producing music and go find something else more profitable to do, just as if the price of diamonds falls too low, De Beers should feel free to stop digging them up in Namibia. What they (and De Beers) should not feel free to do is demand governments force the price of music (or diamonds) up by insisting they can only be sold a certain way via approved technologies at higher prices. One of the driving principles behind Samizdata.net is trying to develop theories about the world that reflect reality. I am willing to hear other theories but it seems to me that the market has spoken (loudly) and using the state to prop up a business model that technology has made nonsensical is not really serving the cause of liberty.

Another issue raised by the commentariat is that companies like allofmp3.com are all involved with the ‘Russian Mafia’. As no evidence has been offered, clearly that is baseless supposition. However it does raise some other interesting issues: I would say even if it was true that allofmp3 is paying ‘protection’ to the Russian Mafia and/or using their political influence to shield their business model, the Russian Mafia fulfils certain roles that in other countries are filled by governments and lobbyists to much the same effect, thus I am not sure it makes a company like allofmp3 any different to a company (say Sony) using the force of the state to enforce its business model.

There is really not that much difference and if you do not believe me, I suggest you try telling the state you no longer wish to follow their regulations and wish to make your own arrangements for ‘protection’ and therefore intend to withhold a portion of your taxes… and then see what happens to you.

The future of the music business is here

I have been poking around AllofMP3.com, a Russian music site with a huge catalogue and an excellent interface and even better prices (a typical track can be downloaded typically for around 12¢). The way the system works is you pay ‘by weight’ of the music file: the tracks are coded-to-order to your exact specifications via a vast CD jukebox, thus if you download an mp3 file with a bit rate of 192 (excellent sound quality), you will pay more than if you download the same file in smaller size at a bit rate of 64 (fairly crappy sound quality). The system can be accessed either via a web front-end or an excellent browser application.

It occurred to me that I more or less stopped buying music CD’s about eight years ago and went from someone who maybe once dropped $2000 per year on music to someone who spent pretty much nothing. Yet in the last month, I have spent $70 at AllofMP3.com because the service is good (and secure: they use Chronopay who are totally above board), the interface is intuitive and the price per download makes hunting around fly-by-night peer to peer networks simply not worth the hassle. I have no pecuniary interest in this operation (sadly) but I cannot recommend them highly enough.

This is the future of the music business and it does not matter a damn whether or not Sony or BMG like it. It is here and it works really well.

Music business: adapt or die… music buyers: enjoy like never before!

The party of liberty?

I have been a bit more tolerant than my Samizdatista comrades about the populist postures adopted by nice Mr Cameron. And being a Conservative Party member, it is me that has to be tolerant, after all. A certain sainted editor has been consistent in urging people not to vote for a long, long time, so a Tory leader really need not care what Perry thinks…

But this has brought me up short. OK, it is speculative bluster about what might be considered by a working party. But how are the ‘liberal values’, that Cameron has made so much of, served by forced labour?

Samizdata quote of the day

And another thing – the argument that we can all support Cameron’s leftward lurch because it’s all an act and he doesn’t really mean it – he is lying pretty low. I might be prepared to give someone the benefit of the doubt on the grounds that they are telling the truth, but to give someone the benefit of the doubt in the hope that they are lying through their teeth?
Wolfie

Thoughts on China’s future

I have been wandering through the fascinating nation of China of late, so I have not had much time to peruse the blogosphere – I guess this means that for a month I had a life. I was fortunate enough to spend a few days in the beautiful city of Lijiang in Yun’nan province. This mid-sized Chinese town is famed for its wonderfully restored ‘old city’, a cobbled and confusing maze of shops, traditional inns with gorgeous courtyards and a grid of small canals filled with luminous fish and gushing clean water. A beautiful place to while away a few days, but Lijiang is not really known for its nightlife. So on the evening of the 25th of December, I got trawling through some of the past articles on Samizdata. Reading through the comments section on this post, I noticed that an article I wrote early in 2005 got a mention. It was a pity I was not around a computer regularly, because a debate raged in the comments section that I would have very much liked to have been a part of. For all my appreciation of China, I am one of the few Sino sceptics.

I should explain. I am not a sceptic of the aspirations of the billions of Chinese people who sense greatness in the Chinese identity. After all, I’m mentioning a deeply rich culture backed up by a vast talent pool on the mainland and in the diaspora that has the capacity to change the world radically in the future. I am, however, deeply pessimistic about China in its current nominally Communist incarnation, for reasons I have outlined in a previous post. I will not go into specifics; if you’re curious, please read my rationale here.

Some interesting developments have taken place between now and then, however. These merit further analysis. One or two of the commenters in the mentioned Samizdata piece stated that they were keeping abreast of banking developments in the Middle Kingdom. In 2002, Chinese officials admitted that 25% of the loans written by the state owned banks were non-performing. Standard and Poors and a number of others said it was closer to 50%, and possibly more. Within the space of four years, the Chinese administration has revised its estimation of the rate of non-performing loans down to an average of about 12%. How can this be done so fast? I’m not really sure. We are, of course, talking about the writing down or otherwise accounting for of many hundreds of billions of dollars of bad loans. I assume that it’s due to the fact that most or all of the bad loans have been transferred to special “asset management” companies set up by the government. I suspect that the banks have been able to revise their non-performing loans (NPL) ratio down so quickly by performing a debt-to-equity swap with these holding companies. The article linked to immediately above believes the asset management companies have taken a chunk of the banks’ loans and issued them with 10 year bonds in return. → Continue reading: Thoughts on China’s future

Mr. Abramoff went to Washington

For those of you that have enjoyed your Festive break and have not been keeping up with political happenings ‘over the pond’, there has been an eye-opening little scandal going on in Washington.

A member of the Most Honourable Order of Washington Lobbyists, Jack Abramoff, has pleaded guilty to the heinous crimes of fraud, bribery and tax evasion. In a plea bargain deal, Abramoff will face nine to eleven years of penal servitude in exchange testifying against the sundry Congresscritters that may face prosecution.

Clearly, Mr. Abramoff is a menace to society:

Among the allegations in the court documents is that Abramoff arranged for payments totaling $50,000 for the wife of an unnamed congressional staffer in return for the staffer’s help in killing an Internet gambling measure. The Washington Post has previously reported that Tony Rudy, a former top aide to DeLay, worked with Abramoff to kill such a bill in 2000 before going to work for Abramoff.

An internet gambling measure? Not surprisingly, it turns out that Mr. Abramoff was getting a large part of his money from Native American tribes who have a large stake in gambling operations in the United States outside of Las Vegus.

Abramoff’s appearance in U.S. District Court came nearly two years after his lobbying practices gained public notice because of the enormous payments — eventually tallied at $82 million — that he and a public relations partner received from casino-rich Indian tribes. Yesterday, he admitted defrauding four of those tribal clients out of millions of dollars.

As you can imagine, that part of the Washington elite that has emerged from their Holiday cheer is agog with the news. Wonkette, for example, took time out from promoting her book to pass comment on the latest news, which is that Republican politicians are falling over themselves to ‘return’ money that Abramoff donated to them. Starting at the top, President Bush is returning the $6,000 that he donated to his re-election campaign. Abramoff was a generous soul; 24 figures from both political parties in Washington have announced that they are following the President’s lead. Oddly enough, a leading Democrat Senator, Harry Reid, is declining to return his $47,000 booty, saying that it is basically a Republican problem.

I was bemused that there was no follow-up from the media on that point. It would seem that it is okay for Democrats to take money from a crook, but not Republicans. It must be that ‘liberal media’ that they talk about over there. → Continue reading: Mr. Abramoff went to Washington

Congestion charging goes north

The Swedish city of Stockholm – in which I spent an enjoyable short stay last year – has introduced congestion charges, much like those which now operate in central London. The supposed aim (supposed being the key word) is to reduce car use and get people to use public transport. Public transport is said to be very good in Sweden and I found it to be so, though it comes with a heavy tax bill.

The congestion charge issue is an interesting one because on one level, free marketeers can see a lot of merit in the idea of treating use of a road just like any other commodity. However, in today’s world, road tolls tend to be more of a revenue-raising device than part of a free market approach to transport. Roads are not built with the consent of other property owners, but mostly built at the behest of public authorities using compulsory purchase powers (what is called eminent domain in the United States). So the idea of road pricing, nice though it may sound in some sort of capitalist utopia, is in reality bound to operate in a monopolistic environment.

And as the British police have found, the C-Charge has brought certain unintended consequences. Not a great surprise.

More Tory Blairism

The Tories continue to reinforce my view that they are just Labour-lite by saying they ‘believe’ in the socialist National Health Service. So presumably David Cameron will soon want to extend this wonderful thing that he ‘believes in’ to other areas of the economy. If command economics are the best way to provide something as important as healthcare, why is that not also the best way to build cars, run banks, make computers etc.? Surely if the Tory party believes socialism works, why are they not planning to introduce it more widely? Is this what comes next?

They talk in terms of how they can be trusted to ‘run’ the economy, as if the economy was something that requires politicians to function. And what is the ‘legacy of Thatcher’ if not the move away from a more command oriented economy? Well Cameron says he is breaking with that too.

So, if the Tories are a party which can appoint Michael ‘a touch of the night’ Howard as leader, probably the only man in British politics today even more authoritarian than David Blunklett, then clearly voting Tory to protect civil liberties from the predations of Blairism is utterly pointless (sort of like suicide for fear of death)…

…and now we see they are also a party which followed with a new leader who is promising to adopt Blairite economic policies, it does not really matter a whole lot which of those two parties actually end up in 10 Downing Street, does it?

Why vote for Tory Blairism when you can vote for the real thing, Tony Blairism?

Samizdata word of the day

Veisalgia– the medical term for the common or garden hangover. I suspect that there has been a slight epidemic of veisalgia in the ranks of Samizdata’s contributors and editors lately. A useful word to know when filling out sick leave application forms for work.

Landmineware

noun. Software or websites that has options checked default-yes when you sign up that, if you are not paying close attention, will do things you have ‘consented’ to that you probably would rather not be done (for example, giving them permission to give your e-mail address to spammers).

As landmineware relies on the fact that in the real world, people do not watch their every step and so do not read lengthy terms and conditions, privacy statements and disclaimers. They achieve their objective by preying on people’s unwary but typical behaviour.

(also landmine-ware)

(Coined by Perry de Havilland)

Goowy wants to make you a spammer!

There is an e-mail program called Goowy which is one of a species of software I call ‘landmine-ware’, which is to say during the sign up process, on one of those bits no one actually reads, there is a yes-by-default opt-in box that allows the software to do something very few people would agree to if they actually noticed what they were being asked to agree to.

A friend of mine just signed up for Goowy and as a result Goowy just imported her entire contacts list from Gmail and spammed them all (including me) with invitations to sign up for Goowy. Now as this was technically permitted by the default-yes selected check box, there is nothing clearly actionable about this. However as no one would usually agree to their entire email address book being spammed by a third party, it would be fair to say Goowy counts on people just not realising what they are ‘consenting’ to and thus relying on people’s natural tendency to not carefully watch every step they take (hence my description of Goowy as ‘landmineware’)

Now just to spare all the obsessive libertarians reading this from getting their knickers in a contractarian twist, just because something may not be immoral theft (i.e. Goowy did not ‘steal’ permission to spam in your name) it does not mean it should be socially respectable to trick people into doing something either. Yes, ideally we should all read every line of the disclaimer on every single thing we sign up for on the internet. Yet other than a few obsessives, no one actually does that in the real world as there is a general expectation that nowadays companies understand how much spammers are hated and what bad PR can be generated by acting like a spammer. Sadly Goovy suggests that this expectation is not quite as dependable as it should be.

At the very least, tricking people into in effect becoming spammers gets people like me writing nasty things about any company who would do that. In short, any company who resorts to abusing what is typical customer behaviour should not be trusted. Even if tomorrow Goowy announced it was going to make that option default-no rather than default-yes (i.e. permission to spam your entire address book of contacts), I would not allow them to be anywhere near my personal email and I suggest you do not either.

The Tory Party: New Labour lite

Now that David Cameron has revealed to all but the most blinkered that he is just another social democrat who shares 99% of Tony Blair’s beliefs, I look forward to seeing how this will be spun by his apologists. No doubt they will still say Cameron’s utterances are just a cunning plan to get the Tories into office by stealing Labour’s best ideas but really he will rescue us from encroaching regulatory statism and socialist monstrosities like the dismal National Health Service. Oh sure, and how will that work, exactly?

If your answer to my remarks is still “but we need to get them into office to replace the dreadful Blair”, tell me why that would make any difference even if it was true? What is the point in replacing Blair with someone who is so similar ideologically? Is trivial window dressing like removing Tory MEP’s from the preposterous EPP-ED grouping really enough to buy your vote when he is falling over himself to pledge his loyalty to regulatory interventionist government and expanding the role of the state?

If you want to oppose Blair via The System, for goodness sake stop thinking about the Tory party. If you cannot kick your addiction to democratic empowerment fantasies, at least vote UKIP or even LibDem (who at least are less authoritarian on alleged security issues), but please do not reward the Tory party for becoming NuLabour with a Henley accent if you ever want to see the end of Blair-ism and its poison legacy.