UPDATED: Net Neutrality Odyssey

Business, Constitution, Fascism, Free Markets, Internet, Private Property, Technology

If they are not, the FCC’s new Net Neutrality rules sound awfully like price fixing, or a kind of Internet Civil Rights Act, where everyone must be allowed access to everything without discrimination based on, well, what and how much you purchase.

Ruled by regulators we certainly are.

Article I, Section 1, of the United States Constitution, provides that:

All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.

So what is the Federal Communications Commission (FCC) doing regulating the Internet? Nothing out of the ordinary is the answer. The FCC is just doing what all America’s extra-Constitutional government agencies do: manage all aspects of American life. Hence the term “The Managerial State.”

ROBERT M. MCDOWELL, a Republican commissioner of the Federal Communications Commission, calls the FCC’s unconstitutional power grab a “jaw-dropping interventionist chutzpah”; a bypasses of “branches of our government in the dogged pursuit of needless and harmful regulation.”

Let us not forget that the Net Neutrality odyssey began with that bastard Bush. As Wired reports, “In 2005, then-FCC chairman Michael Powell issued a set of principles, the so-called Four Freedoms, which said that internet users had the right to use the lawful software and services they want to on the internet, access their choice of content, use whatever devices they like, and get meaningful information about how their online service plan works.”

Note the Bush boy’s UN-like language: “Four Freedoms.”

This is important: “Both wireless and fixed broadband service providers will have to explain how they manage congestion on their networks. Cable and DSL companies will have to let you use the applications, online services and devices that you want to. Meanwhile, wireless companies will be prohibited from blocking websites and internet telephony services like Skype. Cable and DSL providers would be barred from ‘unreasonably’ discriminating against various online services.”

An Internet Civil Rights Act of sorts.

The one thing that bothers me is this: Is Comcast, for example, not a franchise (“a privilege or right officially granted a person or a group by a government”)? The kind of areal monopoly they enjoy and less-than-optimal service they provide in the market seems to suggest that possibility.

Franchise status might also explain why, as Wired observed, “There was one group … which seemed content with the new rules: the nation’s cable and telecommunications companies, including AT&T, Comcast and Verizon. They’ve been making the rounds in recent weeks signaling their support for Chairman Julius Genachowski’s compromise deal.”

UPDATE (Dec. 22): GREAT MINDS. Michelle Malkin also finds Civil Rights language to be the appropriate source of metaphor to describe the impetus of laws that’ll mandate equal Internet access to all irrespective of the cost of a product or service.

Under the FCC’s new regime, the market will be fattened and socialized and the price system sundered. This means worse service for all paying customers as the incentive to innovate are removed. When will Out “Overlords Who Art in DC” UNDERSTAND that the price and profit system is the key to prosperity? The correct answer is “never.”

VIA MICHELLE:

Undaunted promoters of Obama FCC chairman Julius Genachowski’s “open Internet” plan to expand regulatory authority over the Internet have couched their online power grab in the rhetoric of civil rights. On Monday, FCC Commissioner Michael Copps proclaimed: “Universal access to broadband needs to be seen as a civil right…[though] not many people have talked about it that way.” Opposing the government Internet takeover blueprint, in other words, is tantamount to supporting segregation. Cunning propaganda, that.

“Broadband is becoming a basic necessity,” civil rights activist Benjamin Hooks added. And earlier this month, fellow FCC panelist Mignon Clyburn, daughter of Congressional Black Caucus leader and Number Three House Democrat James Clyburn of South Carolina, declared that free (read: taxpayer-subsidized) access to the Internet is not only a civil right for every “nappy-headed child” in America, but essential to their self-esteem. Every minority child, she said, “deserves to be not only connected, but to be proud of who he or she is.”

Cultural Foot-And-Mouth Can Kill

Art, Music, Pop-Culture, Technology, The Zeitgeist

An abundance of flying objects and a minimalist script, as far as music and language go: This encapsulates the artistic tastes pervading the culture. “Sixty Minutes” correspondent Lesley Stahl, however, was enraptured by the sounds of a bad band called “The Edge,” collaborating with Bono, another three-chord wonder, to produce the “new musical ‘Spider-Man: Turn Off the Dark.'”

In order to better describe the audial effects he wanted to achieve, Bono told “The Edge”: “ta, ta, ta, tum; give me that John Lennon-kinda sound.” He can’t even read music. Neither could they, presumably. That was “the creative process in real time” to which Stahl treated her viewers.

About the pretentious director, Julie Taymor—without whom Bono said he would not have been willing to warble worthlessly—the media seem to be saying less since her set has started buckling under poor Super Man and his supporting crew. She must be a card-carrying liberal.

The show’s financial scaffolding is rickety too. It so happens that Taymor’s talents for entertaining are not commercially viable: she has been at this production longer than the Iraq war has been entertaining the political deadheads. Before its financial sponsors can break even, “Spider-Man: Turn Off the Dark” will have to run for decades. That is if it holds up.

UPDATED: Deadbeat States

Debt, Economy, States' Rights

Socialism is secondary to state squandering—and a consequence of it. America is a debtor nation. The defining characteristic of the Unites States is debt—public and private; macro and micro, federal and state.

I sincerely hope you are not invested in municipal bonds. The “$3 trillion municipal bond market, where state and local governments go to finance their schools, highways, and other projects,” is about to come crashing down.

“60 Minutes” (CBS): “By now, just about everyone in the country is aware of the federal deficit problem, but you should know that there is another financial crisis looming involving state and local governments.”

It has gotten much less attention because each state has a slightly different story. But in the two years, since the ‘great recession’ wrecked their economies and shriveled their income, the states have collectively spent nearly a half a trillion dollars more than they collected in taxes. There is also a trillion dollar hole in their public pension funds.

The states have been getting by on billions of dollars in federal stimulus funds, but the day of reckoning is at hand. The debt crisis is already making Wall Street nervous, and some believe that it could derail the recovery, cost a million public employees their jobs and require another big bailout package that no one in Washington wants to talk about.

‘The most alarming thing about the state issue is the level of complacency,’ Meredith Whitney, one of the most respected financial analysts on Wall Street and one of the most influential women in American business, told correspondent Steve Kroft.

Whitney made her reputation by warning that the big banks were in big trouble long before the 2008 collapse. Now, she’s warning about a financial meltdown in state and local governments.

‘It has tentacles as wide as anything I’ve seen. I think next to housing this is the single most important issue in the United States, and certainly the largest threat to the U.S. economy'” …

“…The problem with that, according to Wall Street analyst Meredith Whitney, is that no one really knows how deep the holes are. She and her staff spent two years and thousands of man hours trying to analyze the financial condition of the 15 largest states. She wanted to find out if they would be able to pay back the money they’ve borrowed and what kind of risk they pose to the $3 trillion municipal bond market, where state and local governments go to finance their schools, highways, and other projects.

‘How accurate is the financial information that’s public on the states? And municipalities,’ Kroft asked.

‘The lack of transparency with the state disclosure is the worst I have ever seen …’ Whitney said”

MORE.

UPDATE (Dec. 21): The Guardian (UK) has taken note: “US states have spent nearly half a trillion dollars more than they have collected in taxes, and face a $1tn hole in their pension funds. … American cities and states have debts in total of as much as $2tn.”