The True History of Libertarianism in America: A Phony Ideology to Promote a Corporate Agenda

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Before Milton Friedman was earning plaudits as an economic genius, he was a shill for the real estate industry.

This is an adapted version of an article that first appeared on NSFWCORP. Published daily online and monthly in print, NSFWCORP is The Future of Journalism (With Jokes).

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Every couple of years, mainstream media hacks pretend to have just discovered libertarianism as some sort of radical, new and dynamic force in American politics. It’s a rehash that goes back decades, and hacks love it because it’s easy to write, and because it’s such a non-threatening “radical” politics (unlike radical left politics, which threatens the rich). The latest version involves a summer-long pundit debate in the pages of the New York Times, Reasonmagazine and elsewhere over so-called “libertarian populism.” It doesn’t really matter whose arguments prevail, so long as no one questions where libertarianism came from or why we’re defining libertarianism as anything but a big business public relations campaign, the winner in this debate is Libertarianism.

Pull up libertarianism’s floorboards, look beneath the surface into the big business PR campaign’s early years, and there you’ll start to get a sense of its purpose, its funders, and the PR hucksters who brought the peculiar political strain of American libertarianism into being — beginning with the libertarian movement’s founding father, Milton Friedman. Back in 1950, the House of Representatives held hearings on illegal lobbying activities and exposed both Friedman and the earliest libertarian think-tank outfit as a front for business lobbyists. Those hearings have been largely forgotten, in part because we’re too busy arguing over the finer points of “libertarian populism.”

In his early days, before millions were spent on burnishing his reputation, Friedman worked as a business lobby shill, a propagandist who would say whatever he was paid to say.  That’s the story we need to revisit to get to the bottom of the modern American libertarian “movement,” to see what it’s really all about. We need to take a trip back to the post-war years, and to the largely forgotten Buchanan Committee hearings on illegal lobbying activities, led by a pro-labor Democrat from Pennsylvania, Frank Buchanan.

What the Buchanan Committee discovered was that in 1946, Milton Friedman and his University of Chicago cohort George Stigler arranged an under-the-table deal with a Washington lobbying executive to pump out covert propaganda for the national real estate lobby in exchange for a hefty payout, the terms of which were never meant to be released to the public. They also discovered that a lobbying outfit which is today credited by libertarians as the movement’s first think-tank — the Foundation for Economic Education (FEE)— was itself a big business PR project backed by the largest corporations and lobbying fronts in the country.

The FEE focused on promoting a new pro-business ideology—which it called “libertarianism”— to supplement other business lobbying groups which focused on specific policies and legislation. It is generally regarded as “the first libertarian think-tank” as Reason’s Brian Doherty calls it in his book “Radicals For Capitalism: A Freewheeling History of the Modern Libertarian Movement” (2007). As the Buchanan Committee discovered, the Foundation was the best-funded conservative lobbying outfit ever known up to that time, sponsored by a Who’s Who of US industry in 1946.

A partial list of FEE’s original donors in its first four years— a list discovered by the Buchanan Committee — includes: The Big Three auto makers (GM, Chrysler and Ford); top oil majors including Gulf Oil, Standard Oil, and Sun Oil; major steel producers US Steel, National Steel, Republic Steel; major retailers including Montgomery Ward, Marshall Field and Sears; chemicals majors Monsanto and DuPont; and other Fortune 500 corporations including General Electric, Merrill Lynch, Eli Lilly, BF Goodrich, ConEd, and more.

The FEE was set up by a longtime US Chamber of Commerce executive named Leonard Read, together with Donaldson Brown, a director in the National Association of Manufacturers lobby group and board member at DuPont and General Motors.

That is how libertarianism in America started: As an arm of big business lobbying.

Before bringing back Milton Friedman into the picture, this needs to be repeated again: “Libertarianism” was a project of the corporate lobby world, launched as a big business “ideology” in 1946 by The US Chamber of Commerce and the National Association of Manufacturers. The FEE’s board included the future founder of the John Birch Society, Robert Welch; the most powerful figure in the Mormon church at that time, J Reuben Clark, a frothing racist and anti-Semite after whom BYU named its law school; and United Fruit president Herb Cornuelle.

The purpose of the FEE — and libertarianism, as it was originally created — was to supplement big business lobbying with a pseudo-intellectual, pseudo-economics rationale to back up its policy and legislative attacks on labor and government regulations.

This background is important in the Milton Friedman story because Friedman is a founding father of libertarianism, and because the corrupt lobbying deal he was busted playing a part in was arranged through the Foundation for Economic Education.

According to Congressional hearings on illegal lobbying activities 1946 was the year that Milton Friedman and his U Chicago cohort George Stigler arranged an under-the-table deal with a Washington lobbying executive to pump out covert propaganda for the national real estate lobby in exchange for a hefty payout, the terms of which were never meant to be released to the public.

The arrangement between Friedman and Stigler with the Washington real estate lobbyist was finally revealed during a congressional review of illegal lobbying activities in 1950, called the Buchanan Committee. Yes, there was something called accountability back then. I only came across the revelations about Friedman’s sordid beginnings in the footnotes of an old book on the history of lobbying by former Newsweek book editor Karl Schriftgiesser, published in 1951, shortly after the Buchanan Committee hearings ended. The actual details of Milton Friedman’s PR deal are sordid and familiar, with tentacles reaching into our ideologically rotted-out era.

False, whitewashed history is as much a part of the Milton Friedman mythology as it is the libertarian movement’s own airbrushed history about its origins; the 1950 Buchanan Committee hearings expose both as creations of big business lobby groups whose purpose is to deceive and defraud the public and legislators in order to advance the cause of corporate America.

The story starts like this: In 1946, Herbert Nelson was the chief lobbyist and executive vice president for the National Association of Real Estate Boards, and one of the highest paid lobbyists in the nation. Mr. Nelson’s real estate constituency was unhappy with rent control laws that Truman kept in effect after the war ended. Nelson and his real estate lobby led what House investigators discovered was the most formidable and best-funded opposition to President Truman in the post-war years, amassing some $5,000,000 for their lobby efforts—that’s $5 million in 1946 dollars, or roughly $60 million in 2012 dollars.

So Herbert Nelson contracted out the PR services of the Foundation for Economic Education to concoct “third party” propaganda designed to shore up the National Real Estate lobby’s legislative drive — and the propagandists who took on the job were Milton Friedman and his U Chicago cohort, George Stigler.

To understand the sort of person Herbert Nelson was, here is a letter he wrote in 1949 that Congressional investigators discovered and recorded:

I do not believe in democracy. I think it stinks. I don’t think anybody except direct taxpayers should be allowed to vote. I don’t believe women should be allowed to vote at all. Ever since they started, our public affairs have been in a worse mess than ever.

It’s an old libertarian mantra, libertarianism versus democracy, libertarianism versus women’s suffrage; a position recently repeated by billionaire libertarian Peter Thiel — who was Ron Paul’s main campaign funder in his 2012 presidential campaign.

So in 1946, this same Herbert Nelson turned to the Foundation for Economic Education to manufacture some propaganda to help the National Association of Real Estate Boards fight rent control laws. Nelson chose to work with the FEE because he knew that its founder, Leonard Read, agreed with him on a lot of important issues. Such as their mutual contempt for democracy, and their disdain for the American public.

Read argued that the public should not be allowed to know which corporations donated to his libertarian front-group because, he argued, the public could not be trusted to make “sound judgments” with disclosed information:

The public reporting would present a single fact—the amount of a contributor’s donation—to casual readers, persons having only a cursory interest in the matter at issue, persons who would not and perhaps could not possess all the facts. These folks of the so-called public thus receive only oversimplifications or half-truths from which only erroneous conclusions are almost certain to be drawn. If there is a public interest in the rightness or wrongness of corporate or personal donations to charitable, religious or education institutions, and I am not at all ready to concede that there is, then that interest should be guarded by some such agency as the Bureau of Internal Revenue, an agency that is in a position to obtain all the facts, not by Mr. John Public who lacks relevant information for the forming of sound judgments…Public reporting of a half-truth is indeed a significant provocation

So in May 1946, Herbert Nelson of the real estate lobby, looking for backup in his drive to abolish federal rent control laws on behalf of landlords, contacted Read with an order for a PR pamphlet “with some such title as ‘The Case against Federal Real Estate Control’,” according to Karl Schriftgiesser’s book The Lobbyists.

What happened next, I’ll quote from Schriftgiesser:

They were now busily co-operating on the new project which the foundation had engaged Milton Friedman and George J. Stigler to write. It was to be called Roofs and Ceilings and it was to be an outright attack on rent controls. When Nelson received a copy of the manuscript he wrote Read to say, “The pamphlet…is a dandy. It is just what I wanted.

The National Association of Real Estate Boards was so pleased with Milton Friedman’s made-to-order propaganda that they ordered up 500,000 pamphlets from the FEE, and distributed them throughout the real estate lobby’s vast local network of real estate brokers and agents.

In libertarianism’s own airbrushed history about itself, the Foundation was a brave, quixotic bastion of libertarian “true believers” doomed to defeat at the all-powerful hands of the liberal Keynsian Leviathan and the collectivist mob. Here is how libertarian historian Brian Doherty describes the FEE and its chief lobbyist:

[Read] would never explicitly scrape for funds… He never directly asked anyone to give anything, he proudly insisted, and while FEE would sell literature to all comers, it was also free to anyone who asked. His attitude toward money was Zen, sometimes hilariously so. When asked how FEE was doing financially, his favorite reply was, “Just perfectly.”… Read wanted no endowments and frowned on any donation meant to be held in reserve for some future need.

And here is what the committee’s own findings reported—findings lost in history:

It is difficult to avoid the conclusion that the Foundation for Economic Education exerts, or at least expects to exert, a considerable influence on national legislative policy….It is equally difficult to imagine that the nation’s largest corporations would subsidize the entire venture if they did not anticipate that it would pay solid, long-range legislative dividends.

Or in the words of Rep. Carl Albert (D-OK): “Every bit of this literature is along propaganda lines.”

The manufactured history about libertarian’s origins, or its purpose, parallels the manufactured myths about one of big business’s key propaganda tools, Milton Friedman. As the author of The Lobbyists, not knowing who Milton Friedman was at the time, wrote of Friedman’s collaborative effort with Stigler:

“Certainly [the FEE’s] booklet, Roofs or Ceilings, was definitely propaganda and sought to influence legislation….This booklet was printed in bulk by the foundation and half a million copies were sold at cost to the National Association of Real Estate Boards, which had them widely distributed throughout the country by its far-flung network of local member boards.”

There’s no idealism here. The notion that libertarian ideas have captured the political imagination of millions in this country is a root problem: if we’re going to escape the corporate oligarchy that is running this country–their ideas can’t possibility be the alternative solution. This movement has to be recognized for what it is.

Published daily online and monthly in print, NSFWCORP is The Future of Journalism (With Jokes). For more features, or to subscribe, click here.

DIGITAL MUSIC NEWS

Attorneys In Apple Antitrust Lawsuit

Must Find New Plaintiff By Tuesday

 

Justice      After slogging through years of legal tussles, the antitrust class action lawsuit against Apple Inc. encountered another hiccup this week when the presiding judge removed the last remaining “named plaintiff” from the suit. U.S. District Judge Yvonne Gonzalez Rogers scolded Marianna Rosen and her attorneys on Monday (Dec. 8) for not providing more complete information about the iPods Rosen had purchased. That move came after Apple lawyers successfully argued that the devices Rosen bought were not among those affected by the lawsuit.

Judge Rogers also quickly rejected Apple’s argument that the case should be dismissed because it’s too late to name a new plaintiff. She ordered the attorneys suing Apple to identify a new lead plaintiff by Tuesday (Dec. 16).

As reported by Billboard, a class-action suit must identify at least one person as a “named plaintiff” who suffered the losses or injuries alleged in the case. Rosen had previously said she purchased several iPods that qualified, but Apple attorneys produced evidence that those devices either had the wrong software or were purchased outside the time frame of the lawsuit. Rosen and her attorneys said she had purchased two other iPods in 2008, but Apple lawyers were able to produce records that showed they were purchased with a credit card issued to her husband’s law firm. Apple attorney William Isaacson argued that meant she was not legally the purchaser. A series of pretrial rulings had narrowed the case to covering just 19 months between September 2006 and March 2009.

Both sides estimate 8 million people bought iPods that were potentially covered by the lawsuit. The plaintiffs claim Apple used restrictive software that prevented iPods from playing music purchased from competitors of Apple’s iTunes store, and maintain that amounted to unfair competition. Apple was able to sell iPods at inflated prices because the software froze makers of competing devices out of the market, plaintiffs’ attorneys argue. They also say Apple is liable for $350 million, an amount that would be tripled if a jury finds the company violated federal antitrust rules. 

Lawyers: Apple Secretly Deleted

Competitors’ Downloads From iPods

 

     Before the antitrust suit against Apple was delayed while attorneys search for a new lead plaintiff (see story, above), lawyers presented evidence that the company deleted music that some iPod owners had downloaded from competing music services without telling them. According to the Wall Street Journal, when a user who had downloaded music from a rival service in the period between 2007 and 2009 tried to sync an iPod to the user’s iTunes library, Apple would display an error message and instruct the user to restore the factory settings. Attorney Patrick Coughlin said that, when the user restored the settings, the music from rival services would disappear.

“You guys decided to give them the worst possible experience and blow up” a user’s music library, Coughlin said in U.S. District Court in Oakland.

Apple insists the moves were legitimate security measures, and Apple security director Augustin Farrugia testified the company did not offer a more detailed explanation because, “We don’t need to give users too much information. We don’t want to confuse users.” Farrugia told the court that hackers with names like “DVD Jon” and “Requiem” made Apple “very paranoid” about protecting iTunes. Updates that deleted non-Apple music files were intended to protect consumers from those system break-ins, he said, explaining, “The system was totally hacked.”

Apple declined to comment to the Journal outside of the court testimony. 

Time Spent Listening To Pure-Play

Streams Increases While AM/FM Slips

 

     Satisfaction and time-spent with digital streaming of broadcast (AM/FM) radio is slipping and soon could be overtaken by such on-demand pure-play companies as Pandora, Spotify, and iTunes. That’s the word from Bridge Ratings President Dave Van Dyke, who said in a LinkedIn post that time spent with broadcast simulcast online streams five years ago (2009) was 2-1/2 half hours a day, while pure-play time spent was just under 1-1/2 hours. Furthermore, until 2012 broadcast online listening and pure-play listening continued to increase.

That all changed in 2013, Van Dyke says, as time spent per day with online broadcast streaming dropped while pure-play time spent continued to increase. “At Bridge Ratings, our first thought was that this could be an anomaly,” he observes. “The perception was that all internet streaming behavior was increasing. [But] trends do not support this thinking.”

In fact, a new year-end analysis from Bridge Ratings suggests that, since 2012, broadcast radio online daily time spent listening (TSL) has fallen 9.4% (2.65 to 2.40 hours per day) while pure-play online listening has increased 65% (1.7 to 2.35 hours per day). “By this time next year, online pure play time spent will have surpassed broadcast radio’s online simulcast TSL,” Van Dyke says. “And if broadcast radio streaming content remains more or less the same as it is, we project this trend will continue on out to at least 2017 with a large gap favoring pure play internet listening.” 

Grooveshark Offers New Digital

Music App In Plan to “Go Legit”

 

     After suffering a string of legal setbacks over the last few years, Grooveshark has developed a new app designed to set the company on a legitimate path to digital music streaming. As CNET reports, the new Broadcasts app lets users create customized radio stations without running afoul of the record companies. The app, expected to launch next month, lets customers build and access custom radio stations and text fellow users as they listen to music. Designed for iOS and Android users, the app will cost 99 cents a month and be commercial-free. The online stations will be developed directly by users rather than generated by Grooveshark.

One of the primary objectives behind the new app is to create a business model that will keep the company out of the court system. Grooveshark currently offers websites both for PCs and mobile devices in which users can search for and stream an unlimited number of songs produced by major record labels. That system led several record labels to sue the company, arguing Grooveshark lacked the necessary rights to upload the copyrighted songs. Back in September a federal judge in New York ruled that Grooveshark’s co-founders had uploaded almost 6,000 songs for which they had no licenses, and subsequently destroyed evidence of the uploads.

Since then, Grooveshark has created dedicated iOS and Android apps for its streaming service, but both of those apps were taken down following complaints from the record labels. The new Broadcasts app means Grooveshark will pay government-mandated performance fees set by the Copyright Royalty Board rather than negotiate directly with the recorded music companies. 

Pandora Releases New User

Interface For Mobile Listening

 

Pandora Mobile      Pandora this week released a beta version of a refreshed mobile user interface that includes new station personalization features and functionality. According to a company statement, the update currently is available to only 3% of iPhone and Android smartphone users, but will roll out to all mobile and tablet listeners over the coming months.

“For more than a decade, our engineering team has worked to perfect the personalized radio listening experience and unleash the infinite power of music for our listeners,” Pandora Chief Technology Officer Chris Martin said in standard PR-speak. “With our users logging more than 1.65 billion listening hours in September alone, we were extremely mindful in the way we made adjustments to the [user interface] so as to enhance and simplify the experience.”

Major changes include enhanced station personalization capabilities and improved artist discovery. The redesigned interface also is reported to be simpler to use and clearer to the ear. “Listeners are given a different sense of place and navigation with the new transitions from the ‘station list’ to the ‘now playing’ screen, and can view comprehensive thumb history and adjust thumb feedback for old tracks listened to,” the company said. [Read more: Company statement]

 

 

A publication of Bunzel Media Resources © 2014

Neglecting the Lessons of Cypherpunk History

 

Over the course of the Snowden revelations there have been a number of high profile figures who’ve praised the merits of encryption as a remedy to the quandary of mass interception. Companies like Google and Apple have been quick to publicize their adoption of cryptographic countermeasures in an effort to maintain quarterly earnings. This marketing campaign has even convinced less credulous onlookers like Glenn Greenwald. For example, in a recent Intercept piece, Greenwald claimed:

“It is well-established that, prior to the Snowden reporting, Silicon Valley companies were secret, eager and vital participants in the growing Surveillance State. Once their role was revealed, and they perceived those disclosures threatening to their future profit-making, they instantly adopted a PR tactic of presenting themselves as Guardians of Privacy. Much of that is simply self-serving re-branding, but some of it, as I described last week, are genuine improvements in the technological means of protecting user privacy, such as the encryption products now being offered by Apple and Google, motivated by the belief that, post-Snowden, parading around as privacy protectors is necessary to stay competitive.”

So, while he concedes the role of public relations in the ongoing cyber security push, Greenwald concurrently believes encryption is a “genuine” countermeasure. In other words, what we’re seeing is mostly marketing hype… except for the part about strong encryption.

With regard to the promise of encryption as a privacy cure-all, history tells a markedly different story. Guarantees of security through encryption have often proven illusory, a magic act. Seeking refuge in a technical quick fix can be hazardous for a number of reasons.

Stirring portrait of aging drag queens at the last gay bar in the Tenderloin

12.08.2014


Donna

San Francisco has changed both rapidly and radically over recent years. As it’s become more appealing both for cosmopolitan urbanites and the exploding tech sector, gentrification has blessed The City by the Bay with the most expensive one-bedroom apartment in America, even surpassing New York. Many mourn the loss of an earlier San Francisco and its formerly affordable counterculture and queer subculture, while San Francisco documentary photographer and filmmaker James Hosking manages to actually catch some of the twilight.

For his series, Beautiful by Night, Hosking documents the lives of three senior drag queens Donna Personna, Collette LeGrande and Olivia Hart, performers at aunt Charlie’s Lounge, the very last gay bar in San Francisco’s Tenderloin district. The notoriously seedy Tenderloin has managed to mostly resist gentrification on the merits of its reputation and a concerted effort by inhabitants. Still, without the surrounding culture of a former San Francisco to sustain it, the once vibrant queer scene has faded.

Hosking’s photographs are intimate and unflinching, but the mini-documentary is also an amazing portrait of three drag foremothers. Their reflections and reminiscing are complex but disarmingly at peace, and their performances and beauty rituals are (as expected) hypnotic.


Olivia


Collette LeGrande


Olivia


Collette


Olivia talks to shopkeeper


Gustavo at home


Gustavo/Donna


Gustavo/Donna


Collette performs Ke$ha’s “Tik-Tok”


Donna backstage between sets


Via Feature Shoot

 

http://dangerousminds.net/comments/stirring_portrait_of_aging_drag_queens

NSA tapping vast majority of cell phone networks worldwide

By Thomas Gaist
5 December 2014

Electronic surveillance programs run by the US National Security Agency have compromised the great majority of the world’s cell phone networks, according to newly released NSA documents leaked by Edward Snowden and published on The Intercept.

The NSA’s operation AURORAGOLD, exposed by the new Snowden documents, has already established an institutional and technological framework through which the spy agency can achieve direct access to all data traversing the world’s cellular networks.

Run by at least two secret NSA spy units, referred to in the documents as the Wireless Portfolio Management Office and the Target Technology Trends Center, AURORAGOLD encompasses a range of surveillance and electronic infiltration activities against cell phone networks on every continent.

The agency had established some level of electronic surveillance presence within 701 of the estimated 985 global cell phone networks as early as May 2012, the leaked documents reveal.

The main purposes of AURORAGOLD, the slides in the documents indicate, are:

* to “maintain data about international GSM/UMTS [cell phone] networks”

* to “forecast the evolution” of global cellular networks in support of the agency’s “imperative to Know the Future”

* to develop intelligence on and surveillance operations against “GSM/UMTS infrastructure,” “voice data convergence,” “technology migration,” and “technology deployments”

As part of AURORAGOLD, the slides show that NSA agents engage in:

* installing electronic backdoors in encryption systems deployed to protect cell phone networks

* gathering intelligence on and predicting the future development of cell phone security systems

* cracking new encryption technologies before they have even been deployed on live cellular networks

Information gathered by AURORAGOLD is widely shared within the intelligence agencies of the US and its allies, the slides show.

“Coincident beneficiaries of this mission are, among others, other NSA SIGDEV elements, protocol exploitation elements, and Five-Eyes Partner SIGDEV organizations,” one slide states. The Five Eyes network is comprised of the United States, Canada, Britain, Australia and New Zealand.

The leaked slides include a color-coded map showing that the NSA has tapped into 100 percent of existing cellular networks in numerous countries, including the majority of countries in Africa, as well as Mexico, Saudi Arabia, the Philippines, Venezuela, Poland and Indonesia.

The NSA has tapped a large majority of cell phone networks in China, Russia, Turkey, Iran and Spain, the map shows, and is running cellular network surveillance operations inside the US, the UK, Australia, New Zealand, Germany and France.

Making clear that the NSA is seeking to establish a regime of total information awareness even in relation to its corporate partners, one slide reads, “We monitor the industry” and demands “visibility into changing standards and practices for: Roaming, Signaling, Billing, Interoperability.”

The agency systematically spied on the content of emails sent from more than 1,000 email accounts run by key offices within the global telecommunications network.

One of the NSA’s main targets was a British-based global trade group called the GSM Association, which maintains ties to hundreds of telecommunications and tech companies around the world. NSA operations against GSM sought to intercept “IR.21 documents” passed between companies via GSM. The IR.21 documents contain information about cell phone networks that the NSA uses to penetrate their security systems.

The NSA and its British counterpart GCHQ worked together to crack the so-called “A 5/3” encryption algorithm as part of a program called WOLFRAMITE, the documents show.

The documents also shed light on the role of NSA in supporting the geopolitical machinations of US imperialism. One document shows that the NSA received orders to hack Libyan cellphone networks from the Pentagon’s Africa Command (AFRICOM) in March 2011.

“AFRICOM IKD-OPS requires information concerning the SMS Gateway domains for: Libyana mobile (libyans.ly) and Al Madar Al Jadid (almadar.ly),” one slide reads.

A slide boasting of the agency’s “Notable Successes” claims that the NSA has achieved “IR 21 collection from 67 high-priority networks,” including “recent IR 21s from Egypt,” and “IR 21 collection related to a possible new Chinese network.”

The latest documents make a mockery of the countless lies advanced by the Obama administration and the intelligence establishment in defense of the US government’s warrantless surveillance programs.

Rather than being limited to telephone metadata, or to “foreign intelligence” threats, the NSA’s surveillance machine has direct access to the bulk of cell phone traffic worldwide, including traffic that is supposedly protected by encryption.

Responding to the latest revelations, NSA spokeswoman Vanee Vines reassured the public that the spy agency “collects only those communications that it is authorized by law.”

In a sense, it is true that the surveillance programs have been “authorized by law.”

With the emergence of the Foreign Intelligence Surveillance Court in 1978, a secret surveillance judiciary has was established that presides over the development of a panoply of unconstitutional spying operations by the US intelligence establishment.

This process has complete support from the Republican and Democratic parties in Congress and the last several presidential administrations, which have adopted a series of executive orders authorizing mass surveillance.

The entire US government, including the Congress, has endorsed practices which clearly violate the Fourth Amendment to the US Bill of Rights. It is the military and intelligence agencies that call the shots in Washington, in alliance with Wall Street, not Senators, congressmen and even presidents, who serve as willing accomplices.

Defending the worldwide cell network tapping programs, NSA spokesperson Vines argued that the use by “terrorists” of cellular networks justifies total access by the US agency to global cellular data. “Terrorists, weapons proliferators, and other foreign targets often rely on the same means of communication as ordinary people,” Vines said.

These words express the fact that as far as the NSA is concerned, Internet and telephone users have no democratic rights. Under the pretext of spying on “terrorists” lurking in every corner of the globe, the NSA is aggressively pursuing its openly stated objectives: “Collect it All; Process it All; Exploit it All; Partner it All; Sniff it All; Know it All.”

Terrorists also breath the same air, drink the same water, eat the same food and travel the same roads as ordinary people. Apparently this brings every necessity of human life under the jurisdiction of the US military-intelligence apparatus.

The favorite arguments of right-wing dictatorships are now continually invoked by the leaders of the US bourgeois state. The NSA spokesperson’s comments are a textbook application of the authoritarian legal theories developed by Nazi jurists, which call for the executive power to free itself from all legal constraints in response to a “state of emergency.”

The Obama administration has fully embraced authoritarian legal doctrine that the government the government can spy arbitrarily on any target that its agents select.

 

http://www.wsws.org/en/articles/2014/12/05/cell-d05.html

DIGITAL MUSIC NEWS

Steve Jobs’ Emails Used As Evidence

In $350 Million Apple Antitrust Case

 

Lawsuit      Opening statements began yesterday (Dec. 2) in the long-running class action lawsuit claiming Apple Inc. violated antitrust laws by restricting music purchases for iPod users to Apple’s iTunes digital store. The plaintiffs, a group of individuals and businesses who purchased iPods from 2006 to 2009, are seeking about $350 million in damages from Apple, which they allege unfairly blocked commerce from competing device makers. At the time, iPods only played songs sold in the iTunes Store, or those downloaded from CDs, and not music from competing online retailers. The suit claims customers had to stay with the iPod, and buy higher-priced ones rather than cheaper, alternative music players, in order to keep their music files. Apple has since discontinued this system.

Bonny Sweeney, an attorney for the plaintiffs, showed the 8-person jury in a federal courtroom in Oakland, CA, a series of emails from top Apple executives. These include messages from the late Steve Jobs discussing a challenge in the online music market from Real Networks, which had developed a rival digital song system that allowed music purchased on Real’s store to be played on iPods. “There was a concern by Apple that this would eat into their market share,” Sweeney told the jury.

She noted that in one email exchange, Jobs wrote to other Apple executives with a suggested press release about Real Networks. “How’s this?” Jobs wrote. “‘We are stunned that Real is adopting the tactics and ethics of a hacker and breaking into the iPod.'” Apple marketing chief Philip Schiller responded, “I like likening them to hackers.”

Apple eventually introduced a software update that barred RealPlayer music from being played on the iPod. Plaintiffs say that step discouraged iPod owners from buying a competing device when it came time to upgrade.

Apple attorney William Isaacson hit back, arguing the company had a right to improve iTunes to protect iPods from security threats, as well as from the damage caused by Real Networks software. “It posed a danger to the consumer experience and to the quality of the product,” he said.

Apple insists it did not possess monopoly power in the digital music player market, and that it has no legal duty to make its products compatible for competitors.

If the jury finds in favor of the plaintiffs, any monetary award would be automatically tripled under antitrust laws. [Read more: Reuters

Pandora’s Merlin Deal: “Pay For Play”

Or “Pay Less To Play More”?

 

Long Tail Money      As details of Pandora’s recent deal with Merlin and independent record labels leak to the public, music industry analysts are beginning to question if the arrangement doesn’t smack of legal payola. NPR last week reported the Merlin deal includes a provision that its artists receive more spins on Pandora’s advertising-supported streaming service, and Pandora pays less in royalties per track than it would if were giving those same spins to non-Merlin artists. Plus, Merlin-affiliated labels get to suggest “favorite” tracks for the service to play.

While there’s no law prohibiting this sort of practice within the scope of online radio, Georgetown University adjunct professor and copyright attorney Jim Burger told NPR this kind of deal would receive immense scrutiny if it were taking place on AM/FM radio. “If they were a terrestrial radio station and they were getting a discount on certain music as long as they played it more than other music, that would be considered illegal,” he said, noting that stations would have to announce such an arrangement upfront.

Pandora CEO Brian McAndrews disagrees, saying there’s no comparison between payola and what his company is doing. “Payola is where record labels pay radio stations to get airplay,” McAndrews said in an interview. “The opposite is what happens today. At Pandora, we pay the record labels and the artists to allow airplay. So it’s completely different. Every song will go through the Music Genome Project, and our listeners still retain the ability to personalize their stations the way they always have.”

Disclaimer: The author of this story once published a novel about payola titled “Pay For Play.” Limited pre-owned titles can be found here on Amazon. The author receives no compensation for these sales. 

Three Studies Suggest Link Between

Free Listening And Improved Music Sales

 

     Three consumer studies released in late November suggest listening to music on free streaming or download services has a positive effect on music purchases. As reported by Billboard, the timing couldn’t have been better, as Taylor Swift’s divorce from Spotify brought attention to that service’s business model – and opened a debate on whether digital streaming helps or hurts music sales. While not conclusive by any means, the three studies do provide some context to the issue:

  1. A study conducted by Pandora suggests a small “Pandora Effect” among its listeners. Using an “A/B” analysis that prevented listeners in some areas from hearing certain songs, Pandora was able to illustrate that listening to music on the streaming service has a positive effect on music sales. For both new releases and catalog music, listening to a song on Pandora provides a slight sales lift. Plus, this so-called “Pandora Effect” grows as a song is streamed more.
  2. A study by the Country Music Association found  streaming services such as YouTube or Spotify are three times better at driving music sales than AM/FM radio. About 25% of survey respondents purchased new music after streaming it compared to 8% of radio listeners. Of course, not all of this streaming is free, but Pandora and Spotify both have more “freemium” than paying users, and YouTube (thus far) is free, as well. So in the context of free music, the CMA survey’s takeaway is that free music provides a positive promotional benefit.
  3.  A new user study from BitTorrent says its users are more likely than average internet users to pay for a music subscription and buy digital music. As Billboard notes, the idea that people who engage in peer-to-peer downloads spend more than average people isn’t new. And while the purchase of music by BitTorrent users may simply show a shows correlation, not causation, it does point out that some active music consumers engaged in both paid and free options do buy music.

High-Fidelity Music: Are Consumers

Settling For Convenience Over Quality?

 

Music Business      As the recorded music industry increasingly turns its attention to digital streaming services as a major revenue stream, are listeners being forced to settle for poor audio quality? That’s the reasoning behind Neil Young’s new Pono service and the new high fidelity digital music system Apple reportedly is creating with the input of U2. But do consumers care enough about quality to pay the additional cost, and will the music industry get behind the companies that want to provide it?

Three self-professed audiophiles – an audio journalist, a musician/sound engineer, and a music industry analyst – recently told International Business Times whether consumers really care about sound quality and whether or that interest will translate to dollars.

Steve Stone, a writer for Audiophile Review and The Absolute Sound, says the difference between MP3s and high-definition or high-resolution music is “the difference between a bottle of Trader Joe’s Two-Buck Chuck and a 50-year-old Châteauneuf-du-Pape. Full-resolution music is like looking out over a scene through optical glass vs. looking through a window that hasn’t been washed. [But] loss-y MP3s require your brain to do more work to fill in the spaces. It’s hard to get into.”

Noah Landis, Neurosis keyboardist and an audio engineer for the past 25 years, told IBT the sound of MP3s “isn’t horrible…just flatter-sounding than high-def” and says there’s definitely a place for high-definition streaming music for audiophiles at home, even if they have albums, CDs and great audio equipment.

Then there’s Paul Verna, senior analyst at eMarketer and former pro audio editor at Billboard, who says a market for high-quality sound exists, but he believes it’s niche rather than mass market. “I think the public at large probably does care about sound quality, but they don’t care enough,” he observes. “The days of marketing music on the virtue of sound quality ended in the late 1970s with Steely Dan and Pink Floyd. We’re seeing the triumph of convenience over quality.” 

U.K. Vinyl Music Sales Top 1 Million

Units For The First Time Since 1996

 

     While making up a minuscule slice of the entire music sales pie, vinyl continue to find its ways into the hearts – and onto the turntables – of audiophiles around the world. The latest example: More than 1 million vinyl records have been sold in the U.K. this year, the first time their sales volume hit that mark since 1996. Driven by the album “AM” by the Arctic Monkeys, the surge in sales also was powered by Pink Floyd’s first album in 20 years. The group’s “Endless River,” which became the fastest-selling vinyl release in Britain since 1997, tallied 6,000 sales in its first week.

“In an era when we’re all talking about digital music, the fact that these beautiful physical artifacts are still as popular as they are is fantastic,” Martin Talbot, managing director of the Official Charts Company, said in an interview with the BBC. “Only five years ago this business was worth around £3 million [$4.7 million] a year. This year it’s going to be worth £20 million [$31 million].”

As a result of this small but resurging market, U.K.’s Official Charts Company is planning to launch a weekly vinyl chart to track the category. [Read more: Hollywood Reporter]

 

A publication of Bunzel Media Resources © 2014

 

Amazon’s frightening CIA partnership

Capitalism, corporations and our massive new surveillance state

Hundreds of millions flow to Amazon from the national security state. It’s a kind of partnership we shouldn’t allow

Amazon's frightening CIA partnership: Capitalism, corporations and our massive new surveillance state
Jeff Bezos, Dick Cheney (Credit: AP/Reed Saxon/Manuel Balce Ceneta/Photo montage by Salon)

When Internet retailer and would-be 21st century overlord Amazon.com kicked WikiLeaks off its servers back in 2010, the decision was not precipitated by men in black suits knocking on the door of one of Jeff Bezos’ mansions at 3 a.m., nor were any company executives awoken by calls from gruff strangers suggesting they possessed certain information that certain individuals lying next to them asking “who is that?” would certainly like to know.

Corporations, like those who lead them, are amoral entities, legally bound to maximize quarterly profits. And rich people, oft-observed desiring to become richer, may often be fools, but when it comes to making money even the most foolish executive knows there’s more to be made serving the corporate state than giving a platform to those accused of undermining national security.

The whistle-blowing website is “putting innocent people in jeopardy,” Amazon said in a statement released 24 hours after WikiLeaks first signed up for its Web hosting service. And the company wasn’t about to let someone use their servers for “securing and storing large quantities of data that isn’t rightfully theirs,” even if much of that data, leaked by Army private Chelsea Manning, showed that its rightful possessors were covering up crimes, including the murder of innocent civilians from Yemen to Iraq.

The statement was over the top — try as it might, not even the government has been able to point to a single life lost due to Manning’s disclosures — but, nonetheless, Amazon’s capitalist apologists on the libertarian right claimed the big corporation had just been victimized by big bad government. David Henderson, a research fellow at Stanford University’s Hoover Institution, explained that those calling for a boycott of Amazon were out of line, as the real enemy was “megalomaniacal Senator Joe Lieberman,” who had earlier called on Amazon to drop WikiLeaks (and is, admittedly, a rock-solid choice for a villain).



“The simple fact is that we live in a society whose governments are so big, so powerful, so intrusive, and so arbitrary, that we have to be very careful in dealing with them,” Henderson wrote. That Amazon itself cited a purported violation of its terms of service to kick WikiLeaks off its cloud was “a lie,” according to Henderson, meant to further protect Amazon from state retribution. Did it make him happy? No, of course not. “But boycotting one of the government’s many victims? No way.”

But Amazon was no victim. Henderson, like many a libertarian, fundamentally misreads the relationship between corporations and the state, creating a distinction between the two that doesn’t really exist outside of an intro-to-economics textbook. The state draws up the charter that gives corporations life, granting them the same rights as people — more rights, in fact, as a corporate person can do what would land an actual person in prison with impunity or close to it, as when Big Banana was caught paying labor organizer-killing, right-wing death squads in Colombia and got off with a fine.

Corporations are more properly understood not as victims of the state, but its for-profit accomplices. Indeed, Amazon was eager to help the U.S. government’s campaign against a website that — thanks almost entirely to Chelsea Manning — had exposed many embarrassing acts of U.S. criminality across the globe: the condoning of torture by U.S. allies in Iraq; the sexual abuse of young boys by U.S. contractors in Afghanistan; the cover-up of U.S. airstrikes in Yemen, including one that killed 41 civilians, 21 of them children. The decision to boot WikiLeaks was, in fact, one that was made internally, no pressure from the deep state required.

“I consulted people I knew fairly high up in the State Department off the record, and they said that they did not have to put pressure … on Amazon for that to happen,” said Robert McChesney, a professor of communication at the University of Illinois, in an appearance on “Democracy Now!.” “It was not a difficult sell.”

And it paid off. A little more than a year later, Amazon was awarded a generous $600 million contract from the CIA to build a cloud computing service that will reportedly “provide all 17 [U.S.] intelligence agencies unprecedented access to an untold number of computers for various on-demand computing, analytic, storage, collaboration and other services.” As The Atlanticnoted, and as former NSA contractor Edward Snowden revealed, these same agencies collect “billions and perhaps trillions of pieces of metadata, phone and Internet records, and other various bits of information on an annual basis.”

That is to say: On Amazon’s servers will be information on millions of people that the intelligence community has no right to possess — Director of National Intelligence James Clapper initially denied the intelligence community was collecting such data for a reason — which is used to facilitate corporate espionage and drone strikes that don’t just jeopardize innocent lives, but have demonstrably ended hundreds of them.

Instead of helping expose U.S. war crimes, then, Amazon’s cloud service could be used to facilitate them, for which it will be paid handsomely — which was, in all likelihood, the whole point of the company proving itself a good corporate citizen by disassociating itself from an organization that sought to expose its future clients in the intelligence community.

“We look forward to a successful relationship with the CIA,” Amazon said in a 2013 statement after winning that long-sought contract (following a protracted battle for it with a similarly eager tech giant, IBM).

If it were more honest, Amazon might have said “We look forward to a successful relationship with the [coup d’état-promoting, drone-striking, blood-stained] CIA.”

And if it were more honest, Amazon could have said the same thing in 2010.

So long as there are giant piles of money to be made by systematically violating the privacy of the public (the CIA and NSA together enjoy a budget of over $25 billion), corporations will gladly lie in the same bed as those who created them, which is, yes, gross. Protecting consumer privacy is at best an advertising slogan, not a motivating principle for entities whose sole responsibility to shareholders is to maximize quarterly profits. This isn’t an admission of defeat — and when companies fear state-sanctioned invasions of privacy will cost them customers in the private sector or contracts with foreign states, they do sometimes roll back their participation — but a call to recognize the true villain: If we desire more than just an iPhone with encryption, we must acknowledge the issue is not just a few individual megalomaniacs we call senators, but a system called capitalism that systemically encourages this behavior.

In the 1970s, following the resignation of President Richard Nixon, the Church Committee exposed rampant spying on dissidents that was illegal even according to the loose legal standards of the time. Speeches were made, reforms were demanded and new laws were passed. The abuses, it was claimed, were relegated to history. What happened next? Look around: The total surveillance we enjoy today, enabled by high-tech military contractors including AT&T and Googleand Verizon and every other nominally private tech company that capitalism encourages to value profits over privacy — a public-private partnership that grants those in power a means of spying on the powerless beyond the wildest dreams of any 20th century totalitarian. Sure, ostensibly communist states can of course be quite awful too, but the difference is that, in capitalist nations, the citizens actually place the eavesdropping devices in their own homes.

Now, whether the reforms of the 1970s were inadequate or were just plain ignored by those who were to be reformed is sort of beside the point; the status quo is what it is and, at least if one values privacy and the ability to organize and engage in political discussion and search the Internet without fear a spy agency or one of its contractors is monitoring it all in real-time, it sure isn’t good. So when groups such as the Electronic Frontier Foundation and progressive magazines such as The Nation call for “another Church Committee,” the question we ought to ask them is: “Fucking really?”

Abolishing capitalism is indeed a utopian goal, but when corporations routinely go above and beyond their legal duties to serve the state — granting police and intelligence agencies access to their customers’ data without so much as a judge’s rubberstamp on a warrant — expecting meaningful change from a few hearings or legislative reforms will only leave the reformers disappointed to find their efforts have just led to dystopia. So long as there’s money to be made serving the corporate state, that is what corporations will do; there’s no need to resort to conspiracy for it’s right there in their corporate. And that’s not to be defeatist, but to suggest we ought to try a different approach: we ought to be organizing to put a stop to public-private partnerships altogether.

Right-wing libertarians and other defenders of capitalism are absolutely right when they say that the profit motive is a mighty motive indeed — and that’s precisely why we should seek to remove it; to take away even just the prospect of a federal contract. If the demands of privacy advocates are limited by myopic concerns of what’s politically possible here and now, all they will have to show for their advocacy will be a false sense of achievement. The problem isn’t, as some imagine it, a state spying without appropriate limits, but the fact that capitalism erases the distinction between public and private, making it so non-state actors gleefully act as the state’s eyes and ears. This isn’t about just Google or the government, but both: the capitalist state. And until we start recognizing that and saying as much, the result of our efforts will be more of the same.

Charles Davis is a writer and producer in Los Angeles whose work has been published by outlets including Al Jazeera, The New Inquiry and Vice. You can read more of his writing here.

 

http://www.salon.com/2014/12/01/amazons_frightening_cia_partnership_capitalism_corporations_and_our_massive_new_surveillance_state/?source=newsletter