Townhall
Finance...
9
Things to Say Goodbye To, Including
Privacy and Free Speech
by Mike Shedlock
December 20, 2011
Editor’s
note: Long but worthy of your
time, this column expands on an email that you’ve likely seen in your
mailbox
over the last couple of years...
Changes
are coming. Many things we
know and love will soon be gone, just as happened to the 8-track
player, the
buggy whip, and MS DOS. Unfortunately, we are also losing some things
we cannot
afford to.
In
an article written about a year
ago, Rense says Changes Are Coming - Things We’ll Be Saying Goodbye To.
I added
one key item to the list.
Things
We’ll Be Saying Goodbye To
1.
The Post Office. Get ready to
imagine a world without the post office. They are so deeply in
financial trouble
that there is probably no way to sustain it long term. Email, Fed Ex,
and UPS
have just about wiped out the minimum revenue needed to keep the post
office
alive. Most of your mail every day is junk mail and bills.
2.
The Check. Britain is already
laying the groundwork to do away with checks by 2018. It costs the
financial
system billions of dollars a year to process checks. Plastic cards and
online
transactions will lead to the eventual demise of the check. This plays
right
into the death of the post office. If you never paid your bills by mail
and
never received them by mail, the post office would absolutely go out of
business.
3.
The Newspaper. The younger
generation simply doesn’t read the newspaper. They certainly don’t
subscribe to
a daily delivered print edition. That may go the way of the milkman and
the
laundry man. As for reading the paper online, get ready to pay for it.
The rise
in mobile Internet devices and e-readers has caused all the newspaper
and
magazine publishers to form an alliance. They have met with Apple,
Amazon, and
the major cell phone companies to develop a model for paid subscription
services.
4.
The Book. You say you will never
give up the physical book that you hold in your hand and turn the
literal
pages. I said the same thing about downloading music from iTunes. I
wanted my
hard copy CD. But I quickly changed my mind when I discovered that I
could get
albums for half the price without ever leaving home to get the latest
music.
The same thing will happen with books. You can browse a bookstore
online and
even read a preview chapter before you buy. And the price is less than
half
that of a real book. And think of the convenience! Once you start
flicking your
fingers on the screen instead of the book, you find that you are lost
in the
story, can’t wait to see what happens next, and you forget that you’re
holding
a gadget instead of a book.
5.
The Land Line Telephone. Unless you
have a large family and make a lot of local calls, you don’t need it
anymore.
Most people keep it simply because they’ve always had it. But you are
paying
double charges for that extra service. All the cell phone companies
will let
you call customers using the same cell provider for no charge against
your
minutes.
6.
Music. This is one of the saddest
parts of the change story. The music industry is dying a slow death.
Not just
because of illegal downloading. It’s the lack of innovative new music
being
given a chance to get to the people who would like to hear it. Greed
and
corruption is the problem. The record labels and the radio
conglomerates are
simply self-destructing. Over 40% of the music purchased today is
“catalog
items,” meaning traditional music that the public is familiar with.
Older
established artists. This is also true on the live concert circuit. To
explore
this fascinating and disturbing topic further, check out the book,
“Appetite
for Self-Destruction” by Steve Knopper, and the video documentary,
“Before the
Music Dies.”
7.
Television. Revenues to the
networks are down dramatically. Not just because of the economy. People
are
watching TV and movies streamed from their computers. And they’re
playing games
and doing lots of other things that take up the time that used to be
spent
watching TV. Prime time shows have degenerated down to lower than the
lowest
common denominator. Cable rates are skyrocketing and commercials run
about
every 4 minutes and 30 seconds. I say good riddance to most of it. It’s
time
for the cable companies to be put out of our misery. Let the people
choose what
they want to watch online and through Netflix.
8.
The “Things” That You Own. Many of
the very possessions that we used to own are still in our lives, but we
may not
actually own them in the future. They may simply reside in “the cloud.”
Today
your computer has a hard drive and you store your pictures, music,
movies, and
documents. Your software is on a CD or DVD, and you can always
re-install it if
need be. But all of that is changing. Apple, Microsoft, and Google are
all
finishing up their latest “cloud services.” That means that when you
turn on a
computer, the Internet will be built into the operating system. So,
Windows,
Google, and the Mac OS will be tied straight into the Internet. If you
click an
icon, it will open something in the Internet cloud. If you save
something, it
will be saved to the cloud. And you may pay a monthly subscription fee
to the
cloud provider.
In
this virtual world, you can access
your music or your books, or your whatever from any laptop or handheld
device.
That’s the good news. But, will you actually own any of this “stuff” or
will it
all be able to disappear at any moment in a big “Poof?” Will most of
the things
in our lives be disposable and whimsical? It makes you want to run to
the
closet and pull out that photo album, grab a book from the shelf, or
open up a
CD case and pull out the insert.
9.
Privacy. If there ever was a
concept that we can look back on nostalgically, it would be privacy.
That’s
gone. It’s been gone for a long time anyway. There are cameras on the
street,
in most of the buildings, and even built into your computer and cell
phone. But
you can be sure that 24/7, “They” know who you are and where you are,
right
down to the GPS coordinates, and the Google Street View. If you buy
something,
your habit is put into a zillion profiles, and your ads will change to
reflect
those habits. And “They” will try to get you to buy something else.
Again and
again. All we will have that can’t be changed are memories.
Point-by-Point
Comments
1.
Delivery will not go away, but the
post office as we know it today will. Look for delivery to be
privatized and
for a big push to pay bills online. Here are a couple of links to
consider:
Facing Bankruptcy, US Postal Service Plans Unprecedented Cuts To First
Class
Mail. Also consider Do We Need the Postal Service.
2.
Good riddance to the check, and to
the penny as well. But it may be a number of years before check-writing
goes on
the ash-heap of history.
3.
Newspapers are surely dieing a slow
death, but will they go away totally?
4.
The bookstore dies before printed
books, but both have had it. It’s difficult to see how brick-and-mortar
bookstores with all their overhead can compete with Amazon. Eventually,
physical printing and all the overhead and costs will give way to
cheaper and
easier to read media. Those who try Kindle, love it.
5.
Land lines do not make sense for
most people. I have one because they offer a better connection for
podcasts
than mobile phones or skype.
6.
Music itself will not die even
though its distribution mechanism continues to evolve.
7.
Television will not die either even
though television as we know it will certainly evolve in seen and
unseen
ways. 3D projection
TVs and other
innovations will be more than enough to keep the media alive and well
for
decades. The idea the laptop computers and gaming will replace TVs is
silliness.
8.
I look forward to the time that
much of the software I run is not on my computer but rather in the
cloud. It
will happen.
9.
Loss of privacy with cameras
everywhere is sad and frightening.
Predator
Drone Spying
The
Mail Online reports Local cops
using Predator drones to spy on Americans in their own backyards
The
same unmanned drones that the CIA
and the American military uses to kill terrorists in Pakistan and
gather
intelligence on militants in Afghanistan are being deployed by local
cops to
spy on US citizens at home.
Increasingly,
the federal government
and local police agencies are using those drones to spy criminal
suspects in
America with sophisticated high-resolution cameras, heat sensors and
radar. All
of it comes without a warrant.
‘There
is no question that this could
become something that people will regret,’ former Rep Jane Harman, a
Democrat,
told the Los Angles Times.
Loss
of Free Speech
A
bill in Congress with an innocuous
title - Stop Online Piracy Act (SOPA) - threatens to do much more.
An
extremely technical, low-profile
bill that isn’t being covered by cable news, but has nearly 1,000
registered
lobbyists officially working on it: the Stop Online Piracy Act, or SOPA
-- a
bill with the power to fundamentally reshape the laws governing the
Internet.
SOPA
would imbue the federal
government with broad powers to shut down whole web domains on the
basis that
it believes them to be associated with piracy -- without a trial or
even a
traditional hearing. It would provide Hollywood with powerful new legal
tools
to stifle transactions with websites whose existence worries the movie
industry.
The
bill’s supporters, which also
include major record labels, trial lawyers and pharmaceutical giants,
call SOPA
a robust effort to curb piracy of American goods online.
Opponents,
however, have castigated it
as an unparalleled attack on free speech online. Civil liberties
advocates say
SOPA would give the U.S. government the same censorship tools used in
China.
Those in the technology sector warn that the bill creates enormous new
barriers
to entry for web startups, threatening innovation and job creation.
Farther
afield, librarians say that under the letter of the proposed
anti-piracy law,
they could be jailed for simply doing their jobs.
Leahy’s
bill would also empower
corporations to demand that payment processors, advertisers and search
engines
stop doing business with sites the companies believe to be dedicated to
infringement. A Hollywood studio could claim a website is “dedicated to
infringement,” and tell Google to stop registering the website in its
search
results. If Google protested, the company could haul Google into court.
This
new set of corporate liabilities
-- known as a “private right of action” -- prompted resistance from
Wall
Street. Both JPMorgan Chase, which operates a major global payment
processing
business, and the Financial Services Roundtable, a lobbying group
representing
the nation’s biggest banks, began pressing Congress to reject the bill,
arguing
that it was unfair to hold banks accountable for the sins of others.
Banks and
payment processors didn’t want to have Hollywood telling them who to do
business with.
The
government’s ability to shut down
sites would involve federal tampering with the domestic Domain Name
System -- a
basic Internet building block that links numerical addresses where
Internet
data is stored to alphabetical URL addresses that people actually type
into web
browsers. The Chinese government censors the Internet for its citizens
by
engaging in DNS blocking, restricting access to certain domains.
Tech
experts warn that giving the U.S.
government such powers could hinder the functionality of many web
applications,
severing the connection between domain URLs and numerical data
addresses that
many programs rely on. It would also hamper efforts to introduce a new
security
system known as DNSSEC, which national security programmers have been
developing for years.
“The
Act would allow the government to
break the Internet addressing system,” wrote 108 law professors in a
July
letter to Congress. “The Internet’s Domain Name System (“DNS”) is a
foundational building block upon which the Internet has been built and
on which
its continued functioning critically depends. The Act will have
potentially
catastrophic consequences for the stability and security of the DNS.”
Leahy’s
bill has whipped Internet
advocacy groups into a frenzy. Dozens of nonprofits, including the
Electronic
Frontier Foundation and The Center for Democracy and Technology, issued
strong
statements condemning the bill. Fifty venture capitalists sent a letter
to the
Hill warning lawmakers that Leahy’s bill could cripple tech startups
with
absurd legal fees prompted by Hollywood. ...
Americans
pay higher prescription drug
prices than the citizens of any other nation, a product of strict
intellectual
property rules for prescription drugs. So many among the elderly and
the
uninsured import the same drugs at lower prices from Canada to avoid
the
sticker shock, a strategy advocated by both Consumer Reports and
AARP.
Though
buying prescription drugs from
Canada is technically illegal, the Food and Drug Administration has
informally
tolerated the purchases for years, provided the medicine is approved by
prescription and is only for personal use.
SOPA
includes a host of provisions
designed to crack down on counterfeit medicine that are written broadly
enough
to encumber the importation of safe medicine from legitimate Canadian
pharmacies. Provisions that bar the importation of “mislabeled” drugs
would
block a great deal of unsafe pills from making their way to the U.S.,
but they
would also block all Canadian prescription drugs, because Canada’s drug
warnings don’t exactly match FDA warnings.
“Our
primary concerns are with the
fact that non-infringing content is going to be taken down in the
process of
taking down infringing content,” says Michael MacLeod-Ball, First
Amendment
counsel for the American Civil Liberties Union. “The way the bill is
set up, if
a site has infringing content on it ... their default reaction is going
to be
to take down the whole site.”
While
a judge has to review the
Attorney General’s request to take down a site, nobody from the site
being
targeted must be given a chance to defend themselves before the judge
grants
the AG’s request. The AG doesn’t ask a judge for a search warrant under
SOPA,
it requests to take down an entire website without a trial -- or even a
hearing.
Under
current law, any U.S. website
posting infringing content has to take the song or movie down at the
request of
whatever company owns the copyright. But under SOPA, companies could go
directly to web hosting companies and require them to take down the
entire
website -- not just individual songs and videos.
As
a result, SOPA creates a new
opening for corporate command of the Internet. Under SOPA, web hosting
companies that take down legitimate websites at the behest of copyright
holders
would be granted blanket immunity from any liability for losses caused
to those
legitimate sites.
“Congress
is on the verge of wrecking
the greatest engine of innovation and greatest platform for democracy
ever
known to human kind,” says David Segal, Executive Director of Demand
Progress.
“And for what? For the sake of propping up an ossified industry that
refuses to
change with the times, but happens to make a lot of campaign
contributions.”
My
site, ZeroHedge, Calculated Risk
can all be shut down if a newspaper or other cite thinks we went beyond
fair
use in quoting an article. Drug imports from Canada (something that
ought to be
legal), will be shut down as well.
This
bill’s real intent is not to stop
piracy, but rather to hand over control of the internet to corporations.
Mike
“Mish” Shedlock
Read
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