Can Future Censorship Be Regulated?

The question at hand is, who decides what you find on the web? I recently read Regulating the Information Gatekeepers about search engines. This article focused mainly on commercial implications of search engines changing their rules, and the ongoing arms race between companies that sell the service of tweaking web pages and links and click farms to optimize search engine ranking positions, and the search engines trying to filter out such bare toadying in favor of actual useful pages. On my MrTitanium.com site, I ignore all those search engine games and just provide solid content and current items for sale. In 2002, MrTitanium was usually in the first dozen results when Googling for "titanium jewelry". In 2003, Google decided that the number of links to a page was the primary sign of its usefulness. Within days, link farms popped up, and my site dropped from view. I waited it out, and in 2004, Google changed the rules again, and MrTitanium reappeared in the top 30. Top five for "titanium earrings". But the real question is, should someone be regulating these gatekeepers of information? Who decides whether a search for "antidepressants" should feature vendors, medical texts, or Scientology anti-psychiatry essays? There are two ways to censor information: Try to block and suppress it, or try to bury it. The forces of disinformation and counterknowledge are prolific and tireless. A search engine could (intentionally or inadvertently) favor certain well represented but misleading positions (such as Truthers or anti-vaxxers) over proven science, and give all comers the impression of validity and authority to "bad" ideas. But the question of regulation is a dangerous one. The best access to information is open. But if a well meaning legislature decides that there needs to be an oversight board, this board could evolve into information police and be taken over by populist electors who choose to suppress good information. On the other hand, the unregulated and essentially monopolistic search industry began with great ideals, and so far has been doing a good job at a hard task. But it, too, could become malignant if there is no oversight. Another facet is, whose jurisdiction would this fall under? If the U.S. congress passes laws that Google doesn't like, they simply move offshore. There are designs for, and even prototypes of, data centers that float beyond any countries jurisdiction, powered by waves and sun, and connected via fibers and satellites. If the U.N. starts regulating, then whose rules apply? North Korea? Iran? China? And who could enforce it? The information revolution is just beginning: We do live in interesting times.

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What do Wall Street Banks do for society?

What do Wall Street Banks do for society? According to a New Yorker article called "What Good is Wall Street?," not much. Many people assume that most of the money made by Wall Street banks is associated with raising capital for fledgling businesses. Not true:

Wall Street’s role in financing new businesses is a small portion of what it does. The market for initial public offerings (I.P.O.s) of stock by U.S. companies never fully recovered from the tech bust. During the third quarter of 2010, just thirty-three U.S. companies went public, and they raised a paltry five billion dollars. Most people on Wall Street aren’t finding the next Apple or promoting a green rival to Exxon. They are buying and selling securities that are tied to existing firms and capital projects, or to something less concrete, such as the price of a stock or the level of an exchange rate. During the past two decades, trading volumes have risen exponentially across many markets: stocks, bonds, currencies, commodities, and all manner of derivative securities. In the first nine months of this year, sales and trading accounted for thirty-six per cent of Morgan Stanley’s revenues and a much higher proportion of profits. Traditional investment banking—the business of raising money for companies and advising them on deals—contributed less than fifteen per cent of the firm’s revenue. Goldman Sachs is even more reliant on trading. Between July and September of this year, trading accounted for sixty-three per cent of its revenue, and corporate finance just thirteen per cent. In effect, many of the big banks have turned themselves from businesses whose profits rose and fell with the capital-raising needs of their clients into immense trading houses whose fortunes depend on their ability to exploit day-to-day movements in the markets . . . Other regulators have gone further. Lord Adair Turner, the chairman of Britain’s top financial watchdog, the Financial Services Authority, has described much of what happens on Wall Street and in other financial centers as “socially useless activity”—a comment that suggests it could be eliminated without doing any damage to the economy. . . “Why on earth should finance be the biggest and most highly paid industry when it’s just a utility, like sewage or gas?” Woolley said to me when I met with him in London. “It is like a cancer that is growing to infinite size, until it takes over the entire body.”
Yet Wall Street is where great amounts of money exist, and that is why many of America's best and brightest are flocking there to engage in careers of . . . well . . . making money. A starting point for this article is that financial markets are grossly inefficient, and that instead of directing money into productive projects, Wall Street financiers follow trends and "surf bubbles."
These activities shift capital into projects that have little or no long-term value, such as speculative real-estate developments in the swamps of Florida. Rather than acting in their customers’ best interests, financial institutions may peddle opaque investment products, like collateralized debt obligations. Privy to superior information, banks can charge hefty fees and drive up their own profits at the expense of clients who are induced to take on risks they don’t fully understand—a form of rent seeking.

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What ultra-rich Americans want

In an article filled with statistics, Bernie Sanders explains that ultra-rich Americans will never be satisfied. They want "more, more, more." And they are on the verge of taking control of Congress in order to get it. Here's what about to happen: Republicans "want to add $700 billion to the national debt over the next 10 years by extending Bush's tax breaks for the top 2 percent." Here's where we are headed in the long run, unless the Democrats draw a line in the sand:

The billionaires and their supporters in Congress are hell-bent on taking us back to the 1920s, and eliminating all traces of social legislation designed to protect working families, the elderly, children and the disabled. No "social contract" for them. They want it all. They want to privatize or dismantle Social Security, Medicare and Medicaid and let the elderly, the sick and the poor fend for themselves. They want to expand our disastrous trade policies so that corporations can continue throwing American workers out on the street as they outsource jobs to China and other low-wage countries. Some also want to eliminate the minimum wage so that American workers can have the "freedom" to work for $3.00 an hour.

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Aftermath

I should probably wait a few days or weeks before writing my reaction to last night's national insanity exhibition. But I doubt I'll "level out" on what has happened. First off, what part of Mr. Obama's "fixing this will take a long time" did people not understand? Did anyone seriously expect all this mess to be cleaned up in two years? Or is it really just that people are only concerned about their own situation and everyone else can just---well, worry about their own situation? Let me say this slowly, so there can be no misunderstanding: we have been digging this hole for 30 years. It will take a bit longer than two years to climb out of it. Thirty years, that's right. Since Reagan. Dear Ronnie, so classically American in so many ways. Carter began the deregulation frenzy with oil, hoping the oil companies would plow their new profits into development of American resources in the aftermath of the first major OPEC embargo. Reagan was surrounded by the rest of the business community, who whispered into his ear, sweetly, oh so sweetly, "Take the restraints off, Ronnie, and we will build you that shining city on the hill all those Moral Majority types are going on about." So he did. And that started it. (Unlike others, I am inclined to believe that Reagan was naive about this. I think he was from that generation that actually trusted people of a certain stature, relied on native patriotism, and so was completely blindsided by the corporate vampires who talked him into deregulating damn near everything. I think he expected them to reinvest in America, not start the whole ugly off-shore account boom and the outsourcing of American jobs. Inclined, I say, but not willing to give him a complete pass. Because along with that, Reagan oversaw the foreign take over of hundreds of American businesses, many of which were involved in basic research and development and manufactured things vital to our national interest. Throughout the 80s, one company after another was bought by Japanese, British, German, French, and occasionally Korean interests and the result was a serious hemorrhage of expertise, know-how, and manufacturing capacity, not to mention the loss of good-paying, high-tech jobs as those businesses were all moved out of the United States and to their new host countries. Why did he do this? Because Reagan was a traditional conservative who believed government should have nothing to do with private sector business, either pro or con, and he refused to establish an "industrial policy" that would have protected these businesses. At the time there was a tremendous wave of sentiment opposed to protectionism, which smacked of a "liberal" or at least Democratic program, but in hind sight clearly was all about keeping international boundaries as open as possible for the multinationals that have presided over the disemboweling of our economy.) Deregulation has been the culture in Washington ever since. [More . . .]

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