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Three Things: Erasing, Erased, Erasure

[NB: check the byline, thanks! /~Rayne]

There are so many more than three different items under this theme, I could write a book about this. But in the interest of time and resources, I’ll opt for simplicity.

You are being erased if you haven’t been already.

~ 3 ~

Writer and former business consultant Anand Giridharadas shared an excerpt yesterday from a financial adviser’s newsletter to clients.

Transcript:

[…] I just got a great leak that I want to share with you from someone’s financial adviser. You may have a financial adviser. This is a financial adviser trying to advise people what would happen to America if Elizabeth Warren was elected president. And by the way I think a lot of this would apply to Bernie Sanders if he was elected president as well. I think there’s a similarity. And so what would a Warren presidency do to markets. I just want to read some of this to you because it really is hilarious obviously in a way that these boring people did not intend.

And um, so they say, “We have been getting increasing inquiries to address the potential market of her policies as she has gained a lot of momentum over the last couple of weeks.”

And um, it says, “To be clear we do not get involved in political opinions.” To be clear. “So we did a surface level dive on her platform,” they say, “and our intention is to understand the market implications,” they say, and I quote, “Many of these policies are designed specifically to reduce corporate profits and earnings, and instead use those funds to benefit number one workers, number two the environment, number three those with lower incomes, and number four,” oh gosh,”women and minorities. It is important to understand that Warren’s policy goal is to reduce the retained earnings of businesses across multiple sectors and to benefit other parties as mentioned above. As such it is very reasonable statement that if Warren were elected and those policies were enacted it would likely be negative for the stock market because stock prices are an expectation of future earnings.” And so on and so forth.

“The policies would hurt corporate earnings universally,” it says, “although they would likely improve quality of life for many demographics at the expense of corporate profits. Whether that trade-off is positive or negative is not our place to say.” People, stocks, which is better? We don’t know. “We are simply focused on facts. Again, we do not get involved in political opinions,” it said. So now they break it down in case this is not obvious enough, good for people, bad for, for uh, stocks, in case that’s not obvious enough they break it down by policies. Let’s just go through that, shall we? Is that okay? You got time? I got time. I’m in a hoodie.

“Number one ban fracking. Warren wants to ban fracking for oil and gas based on environmental concerns.” Now they do a nice thing where they do who’s this negative for, who’s this positive for, super helpful. “Negative for energy companies and indices, positive for the price of oil/gasoline, supply would be reduced.” Uh, that’s interesting.

“Policy number two eliminate private prisons. Warren wants to end federal contracts to private prisons and withhold funding to make state and local governments do the same. Materially negative for private prison stocks,” ooh, that would be rough for them, yeah.

“Reinstate Glass-Steagall. Warren wants to reinstate the law that separated commercial banking and investment banking. Negative for the major investment banks — JPM, MS, BAC, GS, et cetera, as they would likely have to spin off retail banking operations.

Policy number four, increase taxes on the wealthy. Warren is advocating an ultra-millionaire tax on the 75,000 richest families in the U.S. along with other tax increases aimed at high earners. This could reduce disposable income. Negative for consumer discretionary retail sectors and lingerie stocks. She wants to double the national minimum wage,” they say, “from $7.25 to $15.00. Negative for the entire stock market, the entire stock market,” well, then maybe some more people would be able to buy stocks. “And small business margins. This would significantly compress corporate margins across industries and would result in a reduction of expected earnings for the S&P 500. Those negative effects would be some partially offset,” it goes on, “by more disposable income from minimum wage earners.

“Number six, Warren supports the Family Act, which would create paid national family and medical leave for up to 12 weeks. Negative for small businesses. For large corporations, not much of an impact.” Uh, you know, there we go.

“Number seven agribusiness, breaking up agribusiness.” In fact maybe even break up the word agribusiness into two separate words, agri and business. “Most of the country’s and world’s meat and agriculture production is concentrated in a few major companies. Warren wants to break up these vertically integrated agriculture and food companies. Negative for the agriculture sector, companies in the ag stocks as well as pesticide producers.” And so on and so on.

“The bottom line from a market standpoint is that these policies will be negative for stocks with some being downright negative for the broad markets. How negative would they be for stocks? No one knows exactly.” But this is where it gets interesting. “Again, this doesn’t mean these policies don’t have winners. These are policies designed to reduce retained corporate earnings in favor of other things Warren and her supporters deem more important. So voters will decide if they want to support that type of trade-off. Everyone has their hierarchy of what’s important.”

This is where it gets, we’re getting into Kant here, this is philosophy here in a financial advisor’s report. You gotta pay extra to get to this paragraph. “Everyone has their hierarchy of what’s important, and Warren is an unapologetic populist, who if in power would enact policies designed to reduce corporate earnings to benefit other stakeholders,” parentheses, “workers, the environment, et cetera.” So, I think like all people and the planet are (air quotes) other stakeholders.

“Regardless of your opinion of that strategy it is important to understand that investment accounts would likely be negatively affected under these policies, and if they become reality, we need to take steps to mitigate that damage. As we move closer to the election we’ll obviously be keeping close watch on the implications of the Democratic primary giving you market intelligence on what the headlines mean for stocks going forward.”

They also want to reiterate that this is not political.

It boggles the mind to think that workers, the environment, women and minorities are just sucking drains on the audience for which this opinion piece was written.

We’re roughly 75% of citizens and the entire natural physical world but we’re just an inconvenience drawing down on corporate profits.

We’re not 75% of human beings who’ve been driven over roughshod, had our labor stolen from us for compensation less than subsistence, and the steadily destroyed environment which all of us share and in which we live.

How easily we are erased from consideration by the plutarchy.

One upside: now we know with certainty the financial industry views Warren as both a serious contender for the Democratic nomination and a threat.

Downside: we know, too, that in spite of their B-school education the financial industry is still as dumb as a box of rocks, likely to trash the entire economy and the planet, because they can’t see outside of the rut they’ve been in forever, where only white men have capital and make economies. They are incapable of seeing the untapped promise for stock market growth and saving our planet, locked within more than two decades of stagnant wages, monopsonic job markets, and millennia of toxic colonization.

Note how health care wasn’t at all mentioned; the financial sector is incapable of seeing the benefits to the broader markets if businesses were freed of the burden of health insurance shopping and premium payments.

~ 2 ~

In 1986 I worked for a small machining business. My boss was a bigoted lecher, I’ll be frank. It wasn’t unexpected when he told me if I got pregnant while I worked for him he’d fire me. Fortunately having kids wasn’t yet in the cards for me and I could afford to ignore his misogyny though I couldn’t afford to quit.

In 1988 I applied for a job with a business that did custom manufacturing. I was offered the job but turned it down because their health insurance didn’t cover women’s reproductive care or maternity coverage and they didn’t expect to offer it any time soon, especially since I’d be only one of two women on staff. I took a job with a Fortune 100 company instead; their plan had women’s reproductive care and maternity coverage.

In 1989 my supervisor at that same employer told my older female co-worker he had a limited amount of money to offer his department staff of 10, two of which were male. “I have to give the boys raises because they have families to support.” Never mind that this older woman had teenagers at home, or that the rest of us junior female staff members assisted these two male staffers, or that we might have wanted families we couldn’t yet afford.

In 1993 I got pregnant the month the company fired my supervisor’s equally misogynist boss. I swear the egg waited to drop until I had a new female department head. She was understanding and considerate even though she’d never had any kids of her own.

In 1997 after three years in a new department, I became pregnant with my second child. My boss was itchy and weird throughout my pregnancy, increasingly so over time. You’d think a lawyer would know better than to ask every week during my seventh and eighth month when I was due and was I going to go on leave soon. I had to go to HR to ask for an intervention; I left a week before my scheduled delivery.

It’s not just my own experience; my sister ran into friction from her Fortune 500 employer while she was pregnant. Thankfully she had support from both HR and her union — just not the men she worked with. I can’t tell you how many female friends have likewise been harassed at work for being pregnant.

Don’t get me started about simple systemic problems. Ever tried to sit in one of these for several hours while eight months pregnant?

Academic Chair-Desk

When Elizabeth Warren said she was fired when her pregnancy became visible, I believed her. I am furious with news media outlets for entertaining the idea this was ever not true, or that this isn’t a continuing problem today.

[Let’s not forget the outlet which propelled the attack on Warren was the same one which was tasked with the original Trump dossier — Washington Free Beacon. Are they using material from a Warren dossier?

Let’s not forget, too, that outlets like CBS which continued to poke at Warren have had a wretched history of treating women poorly — or has everyone already forgotten Les Moonves and his nasty habits, including blackballing Janet Jackson for a wardrobe malfunction?]

Think back upon your education and work experience; how many times during K-12 education do you recall seeing a pregnant teacher? I never did any time between 1965 and 1978, and more than 85% of the teachers I saw were female, most of childbearing age. I don’t recall seeing a pregnant instructor during college at all.

How many times did you see a pregnant woman in the workplace? I didn’t until I was in my 30s and having kids myself.

And now my daughter has to put up with crap regarding reproductive health coverage, more than 30 years after I had to turn down a job for not having it as part of their benefits. Why has this not changed for the better? Why is it worse because our government  has now butted into the mix to make it worse rather than ensuring we all get the health care we need regardless of gender?

Why is the essential human fact that women need reproductive care or maternity coverage still something we must fight for against the plutocratic patriarchy which wants to deny it and erase us?

~ 1 ~

There’s a theory that stingy millennials are to blame for the sluggish economy, said financial news network CNBC, parroting investment firm Raymond James.

Are you fucking kidding me?

When 40% of Americans can’t muster $400 cash for an emergency, it’s not stinginess that they aren’t stimulating the economy.

When the reason so many Americans are strapped is because of debt, it’s not stinginess.

When 45 million American students and parents hold educational debt amounting to  ~$1.5 trillion — more than what Americans owe on their credit cards or auto loans — it’s not stinginess.

When minimum wage workers across the entire country can’t afford rent on 2-bedroom apartment, it’s not stinginess.

When 25% of Americans ages 18-64 report having problems paying medical bills, it’s not stinginess.

Somehow the financial sector including media dedicated to covering it have erased all the other reasons why millennials — Americans born between 1981-1996 (23-38 years old) — might not be able to fully participate in stimulating the economy.

Conveniently, the several hundred uber wealthy families represented at the far right of the interactive graphic in the tweet below don’t worry at all about erasure.


They own the erasers.

~ 0 ~

This is an open thread.

Biden’s Opposition to Medicare for All: It’s All About the Billionaires, Baby

[Editor’s Note – this is a guest post by a friend of ours here at the Emptywheel Blog, Bob Lord. Bob is a longtime tax and finance attorney with some very salient thoughts on why the centrist Democrats are pushing back so hard on Medicare For All. One other note, we here at Emptywheel have purposefully not engaged on behalf of any particular candidate in the primary process, but the issues in play are fair game.]

By Robert J. Lord

Joe Biden has lots of reasons why he opposes the Medicare for All plan favored by Bernie Sanders and Elizabeth Warren.

The cost runs too high, the former vice-president tells us. People will have to give up their private health insurance. People will lose the right to choose their health insurance provider.

The list goes on, but do these reasons reflect Biden’s actual worries? Surely, he’s seen the studies that show Medicare for All would drive costs down, not up, as removing health insurance company profits and administrative costs from American health care totally changes the system’s accounting dynamics. Yes, an expanded Medicare would require administrative expenses, but nowhere close to the expenses that our current system requires.

Biden also knows Americans would welcome the chance to swap their private health insurance for Medicare. Don’t believe me? Speak to someone between the ages of 60 and 64 who’s relatively healthy. Ten to one she has her fingers crossed hoping to make it to age 65 without a major health challenge, so she can qualify for Medicare and never have to confront the insufficiency of her wonderful private insurance plan.

And very few Americans, we must keep in mind, choose their health insurance provider. Most of us get insurance through our employers. Employers choose the least expensive plan for all employees collectively, without regard to the needs and desires of individuals.

Given that Joe Biden’s stated reasons for opposing Medicare for All don’t pass the smell test, what could be the real reason for his opposition?

Could Biden simply be beholden to the health insurance industry and Big Pharma? Perhaps, but I suspect that something larger — the overall wealth of our wealthy — may be at play. After all, it’s not like health insurers and pharmaceutical companies are going to have his back come general election time.

Consider the difference between how Joe Biden, on the one hand, and Bernie Sanders and Elizabeth Warren, on the other, view the billionaires and centimillionaires who make up America’s super rich. Sanders believes the greed of America’s billionaire class threatens the social fabric of our country and has proposed a significant increase in the federal estate tax on grand fortunes. Warren has proposed a 2 percent annual wealth tax on all fortunes in excess of $50 million.

Biden’s differences with Warren and Sanders go deep. He has assured his rich donors — at big-dollar fundraising events — that their lifestyles will not change if he’s elected. Biden, whose donor list includes at least 13 ten-digit fortunes, has made it clear that he doesn’t think billionaires bear any more responsibility for America’s woes than any of the rest of us.

Just this week, he voiced his opposition to policies that would make it harder to become a billionaire.

But why would billionaires and centimillionaires particularly care whether we have Medicare for All versus the Obamacare-with-a-public-option plan Biden favors?

To answer that question, consider the fundamental difference between Obamacare and Medicare for All: who pays. Under Obamacare, individuals pay for their health care, through the insurance premiums they pay and their out-of-pocket expenses for the charges their insurance policies don’t cover. The government subsidizes insurance for lower income Americans through Medicaid, but the bulk of health insurance costs are paid by individuals or their employers.

The public option, Biden’s proposed fix to Obamacare, won’t change any of this. Even if every American healthcare consumer chose the public option, putting the private health insurance industry out of business in the process, individuals still would be responsible for their own health care costs.

Medicare works differently. Under Medicare, the government insures healthcare costs directly. Individuals don’t pay premiums or co-pays. Instead, tax dollars fund the cost of the program.

All this means that the transition from Obamacare to Medicare for All would transfer the burden of health care costs from health care consumers, who share in costs based on how sick or healthy they happen to be, to taxpayers, who would share in costs based on their respective incomes and tax rates.

The great majority of Americans live their lives as both health care consumers and taxpayers. Under Medicare for All, they would see an elimination of both insurance premiums and out-of-pocket medical costs. They would also see a tax increase, but ordinary Americans would save substantially more in health care costs than they’d pay in increased taxes.

But those billionaires and centimillionaires on Joe Biden’s donor list? Their tax increases would dwarf any savings they see in personal healthcare expense. Some could see seven figure tax increases.

Viewed through the billionaire lens, Biden’s loud opposition to Medicare for All makes distinct political sense. He needs billionaires to fund his White House aspirations, which still drive him three decades out from his first presidential run in 1988. He’s not only convinced himself that his billionaire supporters pose no threat to our social fabric, he even seems to believe that any health care reform that puts the squeeze on billionaire fortunes does pose a threat.

All in all, a classic case of why ambition often blinds us. In a 2018 speech, just a sentence or two after saying the billionaires he’s courting aren’t a problem, Biden lamented that the income gap in America is yawning.

What Biden’s ambition won’t let him see: Billionaires don’t exist in isolation. We have approximately 700 billionaires today in the United States. We have a larger number of half-billionaires and a still larger deep-pocket cohort of centimillionaires. And so on. Which leaves our top 1 percent controlling close to half the country’s wealth and the country with an income gap that Biden openly recognizes is “yawning” and, obviously, a problem.

In other words, those billionaires Biden’s won’t let himself see as a worry really are inseparable from the yawning income gap that he knows is a problem.

Sanders and Warren, by comparison, are clear-eyed. They can see that when the gap is so yawning that treatable or preventable injuries and illnesses are killing Americans who can’t afford healthcare and bankrupting millions of others, the only answer is that society — through taxation — must assume the cost of healthcare. Other countries, like Canada, recognized this reality decades ago.

And when America’s billionaires, with Joe Biden as one of their many mouthpieces, stand in the way of that process because they don’t want their taxes to increase, their greed tears at the fabric of American society.

Joe Biden can’t see that. His two leading rivals sure do.

[Robert J. Lord, a tax lawyer and former Congressional candidate, is an associate fellow at the Institute for Policy Studies. Bob previously served as an adjunct faculty member at the Arizona State University School of Law. Bob’s work focuses on the relationship of tax law to inequality. He contributes to both the Inequality.org website and to OtherWords, the Institute’s national syndicated editorial service. Bob also is a staff member at Blog For Arizona, the leading political blog in Arizona.]

Here for Misogyny’s Ratio

[NB: Not Marcy, check the byline, thanks! /~Rayne]

This tweet is a flaming POS and the ratio of Comments to Likes reflects a similar collective sentiment (currently running 7-to-1 Comments to Likes:

Wipe the shocked look off your face, Andrew. Believe it or not, secondary education instructors often have day jobs, and professionals often have instruction gigs.

Those day jobs ensure they are more qualified to speak about their field than instructors who teach on the subject directly out of school.

Best classes I ever took were taught by adjunct professors because they had real life experience to use as examples. (My favorite was my business ethics class taught by a local judge.)

This isn’t restricted to the law, either; pick a field from humanities to STEM and you’ll find instructors who are working in their profession while teaching.

But Andrew Kaczynski isn’t the only problem. The article he retweeted has a problem smack in the middle of it which gives me pause — it’s so bad I have to wonder how much of the rest of this report by Washington Post journalists Elise Viebeck and Annie Linskey may need vetting.

This bit:

One of her most controversial clients was Dow Chemical, which she advised in the mid-1990s. A subsidiary that manufactured silicone gel breast implants faced hundreds of thousands of claims from women who said their implants caused health problems. Dow Chemical denied that it played a role in designing or making the implants and sought to avoid liability as its subsidiary, Dow Corning, declared bankruptcy.

“In this case, Elizabeth served as a consultant to ensure adequate compensation for women who claimed injury from silicone breast implants who otherwise might not have received anything when Dow Corning filed for bankruptcy,” Warren’s list of cases read. “Thanks in part to Elizabeth’s efforts, Dow Corning created a $2.35 billion fund to compensate women claiming injury from Dow Corning’s silicone breast implants.”

The Post could not immediately verify this figure.

Emphasis mine. It took me less than 30 seconds to Google “dow corning $2.35 billion fund” and come up with In re Dow Corning Corp., 280 F.3d 648 (6th Cir. 2002):

And I didn’t have access to resources like the Washington Post’s team — cripes, WaPo probably reported on this case. It’s probably in their archives. What else in this article picking through Elizabeth Warren’s work history is just as thinly researched?

We have a malignant narcissistic lifelong scofflaw in office because the media was unwilling to do adequate research into his background before 2016. They focused to excess on the leading female candidate who had already been heavily researched during her tenure as First Lady, junior senator from New York, and Secretary of State.

Now we see slapdash research pushed misogynistically, to the detriment of a candidate who has also served in public office and proven her work history has informed her work as a senator and her policy proposals.

Imagine it: a corporate lawyer who, after working as a lawyer for corporate clients, decides they need more oversight like the Consumer Financial Protection Bureau and corporations’ owners need to pay more taxes.

But the media wants you to take away from their coverage that she’s been paid by corporations you may not like while teaching at the same time.

Wait until they figure out she’s a mother, too. OMFG!!1! What kind of being can possibly do all that — parent two kids, teach, and bill out at $675 an hour?

Give me a fucking break.

Reporters: Stop this goddamned double standard immediately. Do a better job of reporting, stay focused on what’s relevant and quit making sensation out of nothing.

Readers: Be more skeptical of everything you read, and when you read, do so carefully. Don’t rely on stupid white men’s tweets to tell you the truth. Demand better quality reporting.

This is an open thread.

The Future of Regulation in the Perma-Cyber-Infowar

[NB: Check the byline, thanks! /~Rayne]

Looks like we could use an open thread to discuss all the stuff not directly related to the Trump-Russia investigation.

I do want to toss out a topic we should visit given the transition of power in the House from one political party to another and the sea change over the last several years in public awareness about information security.

Most regular readers here have been aware of the dynamic tension between civil liberties and national security, individuals’ rights to privacy and autonomy too frequently falling victim to the state’s efforts to surveil and control.

This site has wrestled with the threats to privacy and security posed by hardware (like cell phones and servers) and software (like vulnerabilities, ransomware, cyberweapons).

But how do we address the threats social media and other information platforms pose? Can we really ignore that Facebook has been weaponized against its country of origin let alone other host nations from the U.K. to Myanmar? Does Sen. Elizabeth Warren’s proposal to break up the largest social media platforms and label them ‘platform utilities’ under a new regulatory structure adequately address users’ privacy rights, information security, and national security?

How far should we push for disclosure of proprietary intellectual property like the platforms’ algorithms? How do we regulate the operation of these without jeopardizing their viability?

Do we need a mandatory ethical standard to which startups must build and existing platforms must comply? Facebook’s iffy interpretation of user consent to use in academic research, for example, was key to its weaponization. What regulatory standard would have prevented the abuse of users’ trust and their data?

Does the likely permanence of cyber warfare as well as information warfare require more or less than Warren has proposed?

Hash it out here in comments. Bring all the stray dog-and-cat issues as well.

Let Them Eat (Starbucks’ Coffee) Cake

A couple of older billionaire white dudes have been shooting off their mouths. One of them is partially clued in. The other one apparently lives on a different planet where the sky is a groovy coffee-colored plaid.

I’m sure I’m preaching to the choir when I point out these facts:

The links above include scolding by financial experts who say Americans need to do a better job of saving. But…

Don’t get me started on what college tuition and subsequent debt does to Americans’ ability to save.

We all know that health care costs have not improved and remain the leading cause of bankruptcy in the U.S. even though more Americans have health insurance under ACA.

And rich older white dudes are completely, utterly, hopelessly out of touch about the financial facts of life for nearly half of Americans let alone the next 2-3 deciles.

Like Wilbur Ross — our Commerce Secretary who lied about his assets and clearly knows nothing about Americans’ daily commerce — struggled to comprehend why federal employees might need to use a food bank after missing a paycheck.

Just get a loan, Ross thinks. Sure, sure, banks give signature loans to people without any collateral let alone a source of income all the time. Come on, Wilbur: would you invest in a bank offering those kinds of terms to the average Joe/Josephine off the street?

And then there’s Trump, who thinks we can just ask the grocer to extend some credit for an unspecified period of time. Right — a nationwide grocery chain clearing 1-3% a year in profits can afford to extend credit.

So goddamned clueless he is. I’m only surprised he didn’t tell furloughed federal workers he’d give them a 5% discount to play golf at one of his courses during their free time.

76-year-old billionaire Michael Bloomberg, who thinks he’s still young enough to run for president in 2020, trashed Sen. Elizabeth Warren’s wealth tax proposal as “probably unconstitutional,” thereby revealing his brain’s atrophy. If taxing higher levels of income wasn’t unconstitutional under Hoover, Roosevelt, Truman, Eisenhower, Kennedy, Johnson, Nixon, Carter, then it probably isn’t unconstitutional.

And then Seattle coffee magnate Howard Schultz popped off at Rep. Alexandria Ocasio-Cortez’ proposals to increase marginal tax rates on the uber-wealthy, calling her “a bit misinformed” and her proposal “un-American.”

Except the U.S. had higher tax rates on the wealthy, for most of the 20th century. The country could afford to build more infrastructure; it built a successful public school system and went to the moon. How nice for Schultz that he could grow up and become a young entrepreneur in that economic environment.

(Put a pin in here for future reference, as a reminder that Schultz not only called AOC “un-American” but Sen. Kamala Harris, too. It’s as if he has a problem with women of color…)

Schultz thinks he has become a billionaire all on his own, as if the increasingly fascist political system with its active suppression of younger, marginalized citizens played no role in his wealth accumulation.

As if the last two decades of stagnant wages due to employment monopsony, repressive Federal Reserve policies, and the real estate market haven’t helped line his pockets by assuring low-wage workers get locked in and unable to move to better paying jobs.

Schultz has been able to accumulate massive amounts of wealth on the backs of people who aren’t being paid living wages, out of the wallets of those whose limited resources allows them to buy a coffee but not a house or health care. He’s rolling in a sea of cash because minimum wage workers are living in little more than indentured servitude.

You know what’s really un-American?

An ungrateful and narrow-minded billionaire white dude who doesn’t think living wages and health care for everyone are fair, who thinks that higher taxes after his first $50 million are theft.

A purveyor of luxury beverage products unable to grasp the unselfish commitment it will take to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty for all the people.

At least Bloomberg sees the danger Schultz’s presidential candidacy poses to this country.

But Schultz isn’t in it for the country’s benefit. He’s in the race for himself. It’s clear he’s done the number crunching and determined that it’s cheaper to run for POTUS even if he were to cause Trump to win re-election. (I’ll bet he’s even figured out how to write off his exploratory trips around the country as a business expense.)

Because the campaign expenses are less than the cost to his personal wealth if he were taxed at a higher rate and if he were also forced to pay living wages to his workers.

What a pity Schultz hasn’t calculated how much more overpriced, excessively roasted coffee minimum wage workers can buy if they didn’t have to worry about health care expenses on top of their rent.

 

Treat this as an open thread.

Nevertheless, She Persisted

One of the most disgusting events recorded in U.S. Senate history occurred last night while Senate Democrats held the floor to debate Jeff Sessions’ nomination as U.S. Attorney General.

Senate Leader Mitch McConnell used a gag rule to stop Elizabeth Warren from reading Coretta Scott King’s 1986 letter to the Senate Judiciary Committee about Jeff Sessions’ efforts to suppress African American voters and his fitness to serve as a federal judge.

This is breathtakingly offensive.

A Senator denied a First Amendment right, unable to participate in speech and debate in their role on behalf of constituents.

The suppression of an historic written statement by an historic figure, presented decades ago to the Senate.

A woman Senator prevented from speaking as part of a governmental body whose composition is 79% men.

The quashing of fact regarding a cabinet nominee’s racist behavior as a former member of law enforcement, germane to their unsuitability as U.S. Attorney General.

And most horrifically, the use of a gag rule circa 1836, instituted by white supremacist members of Congress who prevented abolitionists from speaking about ending slavery.

The Party of Lincoln is dead. It is a zombie animated by hatred, intent on hurting any who pose a threat to its continued grasp on power. It doesn’t take seriously its oath of office, instead resurrecting archaic nonsense to deprive the people of their rights while encouraging corruption.

In summoning Rule XIX and cementing his wretchedness into Senate record, McConnell said about Warren, “She was warned. She was given an explanation. Nevertheless, she persisted.”

She will, indeed, persist, Senator McConnell. She and millions of Americans will persist in their rejection of white supremacy and fascism which relies on it. You have generously offered a rallying cry for our resistance.

And when your body finally relinquishes the venal energy which moves it daily, know that whatever memorial is mounted for you will be visited for the next hundred years by women and minorities who’ll paste it with mementos which read, “Nevertheless, she persisted.”

Surrogating the 2016 American Presidency

Tonight was the opening of the Democratic National Convention. It was a rather stunning difference from the scenes on the street yesterday and today, where there were minimal and well behaved cops in Philly as contrasted with the warrior cop oppressive stormtrooper presence in Cleveland. From my reporter friends from the Arizona Republic, the food is totally better in Philly too. Hey, armies move on food, and cheesesteaks rule.

Is everything coming up roses? Nope. There was the whole Debbie Wasserman Schultz thing. She was well advised by our friend David Dayen to stay away and excommunicate herself from the convention podium. But, crikey, the rest simply looks beautiful. Sanders supporters marching in the streets for change, mostly unfettered and unoppressed, other voices being heard, and all relative delegates meeting and co-existing in the halls. This ain’t the dysfunctional RNC bigoted shit show. That, in and of itself, would be worth this post. There is more.

Don’t let cable coverage and the relentless yammer of their panels of self interested toadies fool you, the few true camera pans at the RNC showed more than a few empty seats and a far smaller crowd (especially in the upper decks) than displayed tonight at the DNC.

The real tell, in difference, was in the quality of the speakers and presentation. The only lasting memory from the RNC’s opening night was the embarrassing plagiarism in Melania Trump’s speech. Honestly, my bet is that is not on her, but the understaffed and idiot handlers her narcissistic, yet bumbling, husband provided. That said, it was a res ipsa loquitur deal and, in the end, spoke for itself. What else do you remember from that night other than Tim Tebow did not appear? I got nuthin.

The first night of the DNC in Philly, however, came with a litany of decent and well presented folks presented to a full and energetic hall. Emphasis on full. The dynamics in staging and presentation were stark. As were the quality and mental coherence of the speakers. The first electric moment came when Sarah Silverman, who along with Al Franken, was doing a bit and intro to Paul Simon singing (a geriatric, albeit mesmerizing) Bridge Over Troubled Water. Silverman and Franken had to kill an extra 120 seconds or so and she blurted out some hard, and real, truth that her fellow Bernie Sanders supporters who refuse to help Clinton defeat Trump are flat out “being ridiculous”. Truer words have never been spoken.

But soon came Michelle Obama to the podium. I am not sure I have the words to describe how good Michelle was. As a convention speaker, a surrogate, a leader, a mother and as a First Lady embodying all of the above. Michelle Obama killed it. She blew the joint up. I don’t know how else to describe it, but if you did not witness it live, watch the video up at top. Just do it.

Frankly, at the conclusion of Michelle Obama’s speech, it was hard to see how the last two key speakers, Elizabeth Warren and Bernie Sanders, could possibly top the moment. Sadly, they could not. Liz Warren gave a great, and often in depth, speech. One that absolutely slayed Donald Trump in nearly every way. On its own, it would have been noteworthy. But sandwiched between the brilliance of Michelle Obama and Sanders, with his acolytes cheering and hers still reeling, it seemed good, but not great.

Bernie Sanders caught a little more fire, but mostly because of his yuuge contingent of supporters. And that is not just a good thing, it is a great thing. Sanders did everything, and more, he should have done in this speech by ginning up the classic points and issues his campaign, and its followers, were built on…and then transferring them to Clinton.

It did not work perfectly, but this will be a process up until the election date on November 8. Bernie went a long way, gracefully and patiently, tonight. And, while the cheering crowd appeared to be much more than just the “Sandernistas”, all of the hall seemed to get on board. That, along with Sarah Siverman telling holdout Bernie Busters to wake up and not be ridiculous, were giant steps in unifying support for Clinton over Trump.

Listen, I have been around the block a few times, and know I am supposed to lead with the headline. Sorry, this one worked up to it, and here it is. The RNC and Trump got their lousy bounce because the media, once again, cravenly portrayed what happened in Cleveland as normal, and tit for tat, with what is happening, and will happen, in Philadelphia. That is simply a ratings and craven click germinated lie. The difference is stark.

Nowhere is it more stark than in the picture painted as to the surrogates who will come out of the respective conventions to campaign for their respective candidate between now and November 8.

Um, let’s see, for the GOP we have Newt, Carson, Melania, Thiel, Flynn, Joe Arpaio and Chachi Baio. I excluded Ivanka because she might actually be competent. Seriously, that is basically it for Trump surrogates. From the whole convention. Even Clint Eastwood’s chair took a pass in this, the year of the Orange Faced Short Fingered Vulgarian Bigot.

Let’s compare that with what came out of the Democratic Convention’s first night. Sarah Silverman, Al Franken, Paul Simon, Eva Longoria, Corey Booker and, then, the big three…Michelle Obama, Liz Warren and Bernie Sanders. That is just the first night folks.

See a bit of a dichotomy in personality and credibility there?

Then picture that Clinton’s road warrior surrogates will include not just the above, but also Joe Biden, President Barack Obama and the Big Dog himself, Bill Clinton.

Elections are won in the trenches. Say what you will about Hillary Clinton, and I will probably join you on many negatives, but the Clintons do have a ground operation. And their surrogates are like the 1927 Yankees compared to the Bad News Bears for Trump and the RNC. How will Trump bolster his bench, by bringing in Roger Ailes to molest the women of America? Is there another ground plan for the Trump Juggalos?

Sure, Clinton can still muck it up and lose. She, and the DNC, have been beyond pathetic in how they have treated nearly half their party, and much of their activist base, during the primaries and aftermath. Not just ugly, but stupid. They deserve any hell they get for that, whether it comes from appropriately enraged Sanders supporters or from press reporting on hacks (THE RUSSIANS ARE COMING, THE RUSSIANS ARE COMING!!!)

Bottom line is this: Which set of surrogates would you think would do a better job spreading out over the country: Crazy Newt, Racist Flynn, Bigot Arpaio and Chachi, …. or Michelle Obama, Liz Warren, Bernie Sanders, Barack Obama and Joe Biden?

Think I will go with the latter, and I think they will reach a heck of a lot more voters who will actually engage than will the trite and petty bigots Trump will have on the public offer.

And the Dems have a laundry list of other quality surrogates who will stand up. Trump has apparent Klan worthy members like Jeff Sessions, felons like Don King and Mike Tyson, and people who seek to be them.

Who you gonna call when it comes time to vote?

Seems like an easy decision, especially when you consider that the next 30 to 35 years of ideological control of the Supreme Court hang in the balance.

Cy Vance Calls It In Dumbly on Smart Phones

There are two things Cy Vance (writing with Paris’ Chief Prosecutor, the City of London Policy Commissioner, and Javier Zaragoza, Spain’s High Court) doesn’t mention in his op-ed calling for back doors in Apple and Google phones.

iPhone theft and bankster crime.

The former is a huge problem in NYC, with 8,465 iPhone thefts in 2013, which made up 18% of the grand larcenies in the city. The number came down 25% (and the crime started switching to Samsung products) last year, largely due to Apple’s implementation of a Kill Switch, but that still leaves 6,000 thefts a year — as compared to the 74 iPhones Vance says NYPD wasn’t able to access (he’s silent about how many investigations, besides the 3 he describes, that actually thwarted; Vance ignores default cloud storage completely in his op-ed). The numbers will come down still further now that Apple has made the Kill Switch (like encryption) a default setting on the iPhone 6. But there are still a lot of thefts, which can not only result in a phone being wiped and resold, but also an identity stolen. Default encryption will protect against both kinds of crime. In other words, Vance just ignores how encryption can help to prevent a crime that has been rampant in NYC in recent years.

Bankster crime is an even bigger problem in NYC, with a number of the worlds most sophisticated Transnational Crime Organizations, doing trillions of dollars of damage, headquartered in the city. These TCOs are even rolling out their very own encrypted communication system, which Elizabeth Warren fears may eliminate the last means of holding them accountable for their crimes. But Vance — one of the prosecutors that should be cracking down on this crime — not only doesn’t mention their special encrypted communication system, but he doesn’t mention their crimes at all.

There are other silences and blind spots in Vance’s op-ed, too. The example he starts with — a murder in Evanston, not any of the signees’ jurisdiction — describes two phones that couldn’t be accessed. He remains silent about the other evidence available by other means, such as via the cloud. Moreover, he assumes the evidence will be in the smart phone, which may not be the case. Moreover, it’s notable that Vance focuses on a black murder victim, because racial disparities in policing, not encryption, are often a better explanation for why murders of black men remain unsolved 2 months later. Given NYPD’s own crummy record at investigating and solving the murders of black and Latino victims, you’d think Vance might worry more about having NYPD reassign its detectives accordingly than stripping the privacy of hundreds of thousands.

Then Vance goes on to describe how much smart phone data they’re still getting.

In France, smartphone data was vital to the swift investigation of the Charlie Hebdo terrorist attacks in January, and the deadly attack on a gas facility at Saint-Quentin-Fallavier, near Lyon, in June. And on a daily basis, our agencies rely on evidence lawfully retrieved from smartphones to fight sex crimes, child abuse, cybercrime, robberies or homicides.

Again, Vance is silent about whether this data is coming off the phone itself, or off the cloud. But it is better proof that investigators are still getting the data (perhaps via the cloud storage he doesn’t want to talk about?), not that they’re being thwarted.

Like Jim Comey, Vance claims to want to have a discussion weighing the “marginal benefits of full-disk encryption and the need for local law enforcement to solve and prosecute crimes.” But his op-ed is so dishonest, so riven with obvious holes, it raises real questions about both his honesty and basic logic.

Gang of Transnational Crime Organizations Roll Out Own Encrypted Communication System

When Michael Chertoff made the case against back doors, he noted that if the government moved to require back doors, it would leave just the bad guys with encrypted communications.

The second thing is that the really bad people are going to find apps and tools that are going to allow them to encrypt everything without a back door. These apps are multiplying all the time. The idea that you’re going to be able to stop this, particularly given the global environment, I think is a pipe dream. So what would wind up happening is people who are legitimate actors will be taking somewhat less secure communications and the bad guys will still not be able to be decrypted.

I doubt he had the Transnational Crime Organizations on Wall Street in mind when he talked about the bad guys “still not be able to be decrypted.”

But HSBC, JP Morgan Chase, Citi, Deutsche Bank, Goldman Sachs and the other big banks supporting Symphony Communications — a secure cloud based communications system about to roll out — are surely among the world’s most hard-core recidivists, and their crime does untold amount of damage to ordinary people around the globe.

Which is why I’m so amused that Elizabeth Warren has made a stink about the imminent rollout of Symphony and whether it will affect banks’ ability to evade what scant law enforcement might be thrown their way.

I have [] concerns about how the biggest banks use of this new communications tool will impact compliance and enforcement by the Department of Justice [Warren sent versions of the letter to 6 regulators] at the federal level.

My concerns are exacerbated by Symphony’s publicly available descriptions of the new communications system, which appear to put companies on notice — with a wink and a nod — that they can use Symphony to reduce compliance and enforcement concerns. Symphony claims that “[i]n the past, communication tools designed for the financial services sector were limited in reach and effectiveness by strict regulatory compliance … We’re changing the communications paradigm” The company’s website boasts that it has special tools to “prevent government spying,” and “there are no backdoors,” and that “Symphony has designed a specific set of procedures to guarantee that data deletion is permanent.”

Warren is right to be concerned. These are serial conspiracists on a global scale, and (as Warren notes elsewhere) they’ve only been caught — to the extent that hand slaps count as being caught — when DOJ found the chat rooms in which they’ve colluded.

That said, the banks, too, have real reason to be concerned. The stated reason they give for pushing this project is Bloomberg’s spying on them — when they were using Bloomberg chat — for reporting reasons, which was revealed two years ago. The reference to government spying goes beyond US adversaries, though I’m sure both real adversaries, like China, and competitors, like the EU, are keeping watch on the banks to the extent they can. But the US has spied on the banks, too. As the spy agency did with Google, the NSA spied on SWIFT even though it also had a legal means to get that data. I wouldn’t be surprised if the rise in bank sanctions violations in recent years stemmed from completely necessary spying if you’re going to impose sanctions, but spying that would compromise the banks, too. Remember, too, that the Treasury Department has, at least as of recently, never complied with EO 12333’s requirement for minimization procedures to protect US persons, which would include banks.

And there have even been cases of hacker-insider trader schemes of late.

So banks are right to want secure communications. And while these banks are proven crooks — and should be every bit the worry to Jim Comey as ISIS’s crappier encryption program, if Comey believes in hunting crime — the banks should be reined in via other means, not by making them insecure.

If we’re going to pretend — and it is no more than make-believe — that the banks operate with integrity, then they need to have secure communications. But without that make-believe, a lot of the important fictions America tells itself about capitalism start to fall apart.

Which is my way of saying that the 6 regulators need to think through how they can continue to regulate recidivist crooks who have their own secure messaging system, but that the recidivist crooks probably need a secure messaging system (though having their own might be a stretch).

If Jim Comey is going to bitch and moan about criminals potentially exploiting access to encrypted communications, then he should start his conversation with the banks, not Apple. If he remains silent about this gang and their secure communications, then he needs to concede, once and for all, that actual humans need to have access to the same privilege of secure communications.

On this topic, see also District Sentinel’s piece on this.

 

HUD Digs an Escape Tunnel for Jamie Dimon

The other day I dismissed US disdain for Mexico at its inability to keep Chapo Guzmán jailed. After all, I pointed out, we don’t even try to imprison our Transnational Crime Organization bosses.

At the Intercept yesterday, DDay pointed out another example. After JP Morgan Chase and Citigroup pled guilty to forex fraud, the Department of Housing and Urban Development “changed their form” for FHA insurance, so as to permit those TCOs to continue to have taxpayers insure their customers’ loans.

On May 20 of this year, JPMorgan Chase and Citigroup both entered a guilty plea on one felony count of conspiring to rig foreign currency exchange trades, the largest market on the globe.

Five days earlier, on May 15, HUD slipped a notice into the Federal Register, seeking to alter its standard loan-level certification form, known as HUD-92900-A. This form must be filled out for lenders to receive FHA insurance, which reimburses them if the homeowner falls into foreclosure.

On the current HUD-92900-A form, lenders must certify that their firm and its principals “have not, within a three-year period … been convicted of or had a civil judgment rendered against them” for a variety of crimes, including “commission of fraud … violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements or receiving stolen property.”

JPMorgan and Citi’s guilty plea would fall under the antitrust statute, and according to Brown, Warren and Waters’ reading of the certification, that would make them ineligible to obtain FHA insurance on their loans.

On the updated form, this language has been excised.

As Senators Sherrod Brown and Elizabeth Warren and Congresswoman Maxine Waters read it, this will eliminate what should have been one of the biggest impacts of the TCOs’ guilty plea.

Again, Jamie Dimon’s tunnel may not be so spectacular as Guzmán’s. But that’s partly because even more parts of government are helping him to escape any punishment for his TCO’s crimes.