Anonymity in broadband and cryptocurrency

The U.S. Supreme Court issued an opinion in Timothy Carter v. United States (No. 16-4012) on the question of whether there was a reasonable expectation of privacy where cellphone information stored by a wireless carrier is shared with the government without a warrant issued on the basis of probable cause. The court ruled last Friday that using third-party cell storage location information to track the physical movements of a citizen requires a warrant less the Fourth Amendment of the U.S. Constitution be violated. The Fourth Amendment provides the following:

“The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by the oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.”

This opinion is pretty narrow and by that, I mean that the court’s holding in this case may not hold when the issue does not involve seizing information documenting an individual’s movement over a long period of time or the involuntary sharing of such information with a third party.

I admit that on the surface, this case may have nothing to do with the transmission of digital information in the form of currency given its narrow meaning. Cryptocurrency is still in its infant stage. Unlike a cellphone that generates continuous cell site location information, I doubt at this stage of crypto growth that you will have a consumer making 127 straight days of transactions such that miners are continuously verifying a consumer’s transaction blocks. It may be another matter for vendors that accept cryptocurrencies that are accepting crypto every day.

What cryptocurrency does have in common with the case is the threat to anonymity. While the general description of cryptocurrency includes anonymity, anonymity is, like the information transmitted by a cellphone, not guaranteed.  In a piece for CoinDesk.com, writer Adam Ludwin describes how cryptocurrency transactions can be “deanonymized.”  While anonymous, Bitcoin transactions, for example, are not private. Transactions are recorded in a distributed ledger called a blockchain. Anonymity is more a function of the Bitcoin protocol, but during a user loses anonymity when their identities are linked to their initial Bitcoin currency purchases, whether done via a digital wallet or via an exchange.

Mr. Ludwin describes how anonymity can be gained by buying Bitcoin from a private holder or buying from an exchange.  But just like a mobile broadband communications network can betray a subscriber’s identity, so to can a cryptocurrency network, whether via the public nature of Bitcoin’s transactions ledger or via the IP addresses of the computers originating Bitcoin transactions.

 

As HR 5709 meanders through the U.S. House, FCC targets a pirate station serving Brooklyn’s Haitian community

On 13 June 2018, the Federal Communications Commission issued a notice of unlicensed operation to Reginald Simeon, an operator of a radio station in Brooklyn, New York. The Commission alleges that Mr. Simeon’s station, operating from a residential property on East 49th Street in Brooklyn, may be operating on the 88.5 Mhz frequency without a license.  The unlicensed operation is, according to the Commission, a violation of section 301 of the Communications Act of 1934.  The Commission also alleges that power emissions from Mr. Simeon’s station violated Part 15 of the Commission’s rules as to allowed field strength of signals at 250 micro-volts per meter for three meters.

While there is the legal and regulatory issue of whether or not Mr. Simeon’s station operated without a license and whether the signal strength was too strong, there is, too me, the more important issue of whether the Commission is about to deny the Haitian community another outlet for receiving news pertinent to the community’s members.

Section 301 of the Communications Act of 1934 requires any person that owns or operates an apparatus that transmits energy, communications, or signals by radio must have, subject to certain exceptions, a license to do so. Mr. Simeon has 30 days to answer the Commission’s complaint and make a showing as to whether he or not section 301 applies to his operations.

The Commission has made “pirate radio” (a derogatory term in my opinion) a priority lately. Arguments against pirate radio include interference with licensed broadcasts; interference with public safety broadcasts; and potential health effects from unregulated radiation. Besides, some critics of pirate radio may argue, if radio operators want to avoid getting a license without getting in trouble why not simply stream their broadcasts via the internet?

Part of the answer to the streaming question may lie in the preferences of the culture. As Justin Strout pointed out in a 2009 article on Prometheusradio.org when discussing pirate radio and Haitian communities:

“For different communities, radio stations are the best way to reach people,” offers Brandy Doyle, a regulatory policy associate for the Prometheus Radio Project, a Philadelphia-based nonprofit advocacy group for low-power communications. The organization forms coalitions to push Congress to reform the rules and regulations that prohibit people from gaining access to the airwaves. “We find that even in the age of the Internet, people still want radio stations,” says Doyle. “In Florida, many of the unlicensed stations are operated by Haitian communities and other Caribbean communities that [have] immigrants who come from places where radio is really vital and important. They come to the U.S. and they can’t get a radio station license. They’re trying to reach the Haitian community in Miami, for example, where it’s really local. In many parts of the world, radio is much more central to daily life than it is in the U.S.”

Congress, however, seems keen on making operating a radio station without a license more expensive. HR 5709, the Preventing Illegal Radio Abuse Through Enforcement Act, provides the following:

“Any person who willfully and knowingly violates this Act or any rule, regulation, restriction, or condition made or imposed by the Commission under authority of this Act, or any rule, regulation, restriction, or condition made or imposed by any international radio or wire communications treaty or convention, or regulations annexed thereto, to which the United States is or may hereafter become party, relating to pirate radio broadcasting shall, in addition to any other penalties provided by law, be subject to a fine of not more than $100,000 for each day during which such offense occurs, in accordance with the limit described in subsection (a).” The limit described in subsection (a) is $2 million.

As a consumer, I do not care for internet radio. It is a costly tie-up of bandwidth. Also, during power outages, connecting to news and information is more difficult online versus via radio. All I need is a supply of batteries to keep my radio charged.

Policy wise, I do not see the Commission or the aforementioned Congress pursuing some type of middle ground policy that would keep small stations serving Caribbean communities alive. With Democrats and Republicans supporting the bill (it has been forwarded to the U.S. House Committee on Energy and Commerce), I see eventually passage by the full House and the U.S. Senate.

Morgan Freeman finds out that the internet has turned millions of Americans into lawyers, prosecutors, and jurors

The only thing missing from today’s internet charge, trial, and conviction of actor Morgan Freeman on allegations of sexual harassment at a workplace are the digital eyewitnesses like the ones that caught Al Franken play-fondling Lauren Tweeden’s breasts.  In Mr Freeman’s case, the eyewitnesses were human. The prosecutors, lawyers, and jurors, however, are mostly digitized and charges and convictions merge and rapidly go viral in a globe that is increasingly connected.

My title implies that the number of arm chair attorneys and jurors has increased. Check your Twitter and Facebook timelines and observe your followers and friends opining on allegations by eyewitnesses (allegations not yet entered into any legal record) and an apology issued by Mr Freeman (questionable as to whether it is admissible as evidence and probably meaningless since he admitted to nothing). As to whether the number of commenters contributed significantly to the degree of virility, I would answer that while there was some contribution, the number of commenters was not the significant contributor. The main contributor is the number of online editors or gatekeepers.  There are more people today that are giving a “thumbs up” to posting a story.

If you lived in Charlotte Amalie, U.S. Virgin Islands in the 1970s, you had one newspaper and two television stations providing you news. That meant three editors deciding what local news got broadcasted and back then local TV news coverage was sparse, in my opinion.  Today the internet has changed that.  Alternative online news sites and blogs mean that a non-story to one editor is a scoop to another. It is not that the same level of information is spreading faster. Viral means to increase the amount of available information that gets to more consumers via digital means.

The increase in the amount of information reported is compounded by an enlarged forum within which the public is exchanging ideas. Some net neutrality advocates would call an enlarged forum an example of the openness of the internet where more media consumers can be heard. Hence the millions of armchair lawyers and jurors.

How valuable are these opinions? In a court they don’t mean much. Judges and attorneys would not want juror assessment tainted by uninformed opinion, meaning these days they would have to look under a rock to find people outside an earshot of a podcast on the matter.  To a social scientist the public exchanges online provide some data on attitudes toward the tawdry behavior Mr Freeman is accused of, but as an experiment, as a measure of opinion the public exchanges don’t provide the best data because the collection is not subject to the best controls.

Probably the only benefit that matters is that people can claim that while they are not a lawyer, they slept at a Holiday Inn and the ability to vent support, denial, anger, or frustration en mass is benefit enough.

For the individual, the political economy is micro.

Individuals have to act like foragers even in this technology dependent society. By forager I don’t mean having to grope around in the soil looking for roots, climbing trees for fruit, or hunting for fresh game. I mean that the approach to obtaining and using resources should be a microeconomic approach versus a macroeconomic approach.

The media especially persuades individuals that attention should be paid to the macroeconomy, whether domestic or global. Is national gross domestic product improving? How many millions were employed last month? How many more people applied for unemployment benefits? Did the President’s latest tweeted announcements lead to an uptick in the financial markets?

On the ground, particularly within the black population, I don’t hear chatter about the illusionary macroeconomy. The chatter is about the nominal prices faced by a shopper, whether the costs of food fits their budget, whether an employer has reduced a consumer’s work hours, and whether a family member can help out with a few extra bucks. People are preoccupied with managing the resources that are actually on hand.

It’s probably why macroeconomists sound so ivory tower, their policy proposals so pie in the sky. The average person in my population couldn’t relate to them if they tried because the positions of the macroeconomist sound so detached.

The late James Gapinski wouldn’t take kindly to hearing one of his former students writing off his branch of the economics profession so brusquely and being a fan of Diane Swonk (yes, some economists do have groupies), I cannot say that as people or professionals that macroeconomists don’t empathize with the everyday person. I believe most do. At best they present data about changes in the prices of commodities i.e. copper, corn, wheat, cocoa, oil, etc., that directly impact an individual’s microeconomy, but if global trade were curtailed would that mean the end of my existence or simply mean seeking alternative resources within closer proximity?

So where does the “foraging” come in? What do we mean by foraging? It is my term for self-sustainability. We should consider producing our own energy at a minimum, enjoying the benefit of less reliance on the grid along with lower costs per kilowatt hour of consuming electricity. Supplementing our food purchases with food that we can grow at home would provide an additional benefit of lower food costs.

The self-sustainable approach also makes us less susceptible to not only changes in the macroeconomy, but less susceptible to the transmission of macro rhetoric. Media and politicians would have less fear and uncertainty upon which to leverage their narratives and messaging. The political landscape would either be less noisy or we may see political packages that better align with the increased freedom garnered from self-sustainability.

The second scenario is less likely, unfortunately, because providing political packages that enhance personal freedom is out of sync with the goals of the State which is to create and maintain a dependent collective. Self-sustainability and certainty is a potent competitor to fear and uncertainty and the State would rather not aid the former.

Politicians need to familiarize themselves with the new face of labor new technology has created

Too many politicians have been emphasizing employment in the area of technology and not paying enough attention to how technology has changed society and, in some ways, contributes to further divides in society. Nor are politicians demonstrating an understanding of the basic technological platform that underlies the economy and how this platform is evolving in order to produce at increasing efficiencies and higher returns on capital.

The Third Industrial Revolution described by thought drivers such as Jeremy Rifkin encompasses an integration of communications, energy, and transportation networks running on top of the internet of things. The internet of things is a digital world where it is projected in 12 years that 100 billion devices will be connected not just to the internet but to each other.  But this revolution is more than connectivity; it is about productivity and explaining the impact of greater productivity to the voter will be the tricky part for incumbent politicians and new entrants alike.

For example, the Trump Effect post the 2016 general election where markets responded positively to Mr Trump’s election was based on expected deployment of new transportation, energy, and communications infrastructure along with increased gross domestic output and incomes. The technology sector has been an overall darling of the market and politicians have been quick to tout the low hanging fruit of innovative new technology as a potential driver of economic growth.  And the numbers seem to support technology’s prominence.

American Entrepreneurship reported last March that since 2010, employment in the technology sector has expanded by 200,000 jobs annually. Approximately 11.5 million workers are employed by the tech sector, contributing $1.6 trillion to United States gross domestic product. Demand for tech workers is outstripping supply.

But even as demand for technology workers remains strong, the manufacturing sector, the one Mr Trump touts a lot on the continuous campaign stump, is seeing less hiring and ironically increased productivity. Pew Research reports that real employment in manufacturing fell from approximately 17.5 million in 1987 to 12.4 million in 2017, a decrease of 29%. During the same period, the real productivity index for manufacturing increased 81%.

Should politicians spend time providing workers a more balanced picture of the economy by educating workers on the need to pursue skillsets necessary for higher paying tech jobs? Yes, especially if they want to distinguish themselves as more trustworthy and knowledgeable about the economy than their opponent.

Properly educating the American worker (and hopefully garnering more votes as a consequence) will require politicians to explain the “productivity paradox.” In an article posted on Vox.com, Timothy B. Lee explains why the increase in innovation is apparently accompanied by a decrease in productivity. As technology innovates rapidly, progress is made in producing cheaper versions of items that have existed for decades. These items become more abundant with the savings eventually spent on more personal services items, items that are produced in slower growth industries.  Ironically, wages in these personal services areas, such as health care, child care, education, consulting, etc., trend upwards. A smaller number of producers will provide the nation’s material goods while slow growth industries take up a larger share of the national economy.

So, although productivity in manufacturing is increasing, the former factory worker will have to start looking for jobs in the slower growth areas of health, education, child care, and other personal services.  Had Republicans been frank during the 2016 campaign about the changes new technology is creating in the labor market, they would have been able to better neutralize criticisms from the left that current policies from the Trump administration are hurting the very people who voted for him. It is probably too late to make corrections to the lack of messaging on technology to avoid losses in the upcoming midterms but adjusting the narrative right after the midterm elections would be wise.

When local government meets high tech sovereigns

Sometimes I think city government is sleeping at the wheel when it comes to technology and capital flows. During its lucid moments, government will fall back on its 1960s playbook of economic development by announcing plans to bring back manufacturing jobs that pay better wages than the service sector jobs that replaced factory work and eviscerated wages. This narrative may have worked in a locality that was created to take advantage of proximity to a local natural resource where factories could then convert the resources into goods for local and other markets, but for a city like a 21st century Atlanta, that narrative is disingenuous.

Atlanta’s “natural resource” today is information. Workers who know how to find, extract, organize, and distribute information are going to be the one’s who obtain employment and the higher wages that come along with work in the information sector. This demand for an information-centric political economy, I believe, is being driven by the changing tastes of capital. Capital wants its goods and services delivered conveniently and its production customized.

Information technology allows capital to target funds directly to high-value driven information entrepreneurs that can deliver a product that was designed, manufactured, packaged in, and delivered from multiple jurisdictions. Capital has no love for mass appeal. Why deal with crowded banks, malls, car dealerships, or grocery stores when extra minutes of leisure can be carved out by the manufacturing and service delivery efficiencies provided by Tesla, Uber, Grubhub, and Insta-cart.

Along with these efficiencies in product manufacturing and delivery come smaller work forces or work forces outside of the jurisdiction of local governments. Local governments have been the front line defense of investor capital from disgruntled labor. They regulate labor union speech during strikes. Where there is violence they arrest the rowdy. However, in an information age where there are a greater number of tech shops employing smaller numbers of non-unionized information workers versus a handful of large factories employing thousands of unionized lower-skilled workers, there is less demand for the police powers of local government. Disgruntled employees at today’s tech shops simply take their information knowledge somewhere else or create their own firm.

Eventually government starts tossing and turning in its sleep. It sees its “labor clamp down” requests severely diminished. Higher incomes start translating into reduced need for government services from garbage removal to security. Higher income earning citizens may consider pooling resources to support campaigns of candidates who agree to reducing tax burdens are, too the extreme, support carving out or “leasing sovereignty” to higher income communities.

Question is, how will those with no capital react to the erection of this wall of individual sovereignty?

The Earth is a frickin’ pancake and space is disease and death wrapped in darkness and silence, damn it.

The Earth is a flat, round, spinning pancake with the continents centered in the middle. Many argue that there is evidence that the Earth is round and that flat Earth theorists are wrong in their assessment. Since I am taking no sides in the debate, I will make these observations and move on from the subject.

First, for those vociferously arguing that the Earth is “round”, you should excuse yourself from the argument immediately. None of the broad categories of scientists you cite argue that the Earth is round, implying it to be a circle.

The Earth is more of an oblate sphere. If you keep arguing that it is round, then you open up yourself to an easy rebuttal by flat Earthers, one that would have them concede that the Earth, as I described earlier, is a flat, round, spinning pancake.

So, in short, shut the fuck up, because if you are going to accuse Flat Earth theorists of not understanding science, you are simply a kettle calling another black because you haven’t addressed a primary question of definition.

This leads to the second and most important point. Ninety-nine percent of those arguing that the Earth is round have no direct evidence of the Earth’s shape. They make the crucial error of relying on the value judgments of scientists that, for the most part, have only mathematical proofs supporting their arguments. The value judgments that spawned their arguments have never been directly challenged by you. You simply accept them because they speak a near incomprehensible language to describe an apparently complex subject and they have dazzled you with a long list of alphabet soup following their names.

Humans, especially Westerners who are significantly detached from nature, have not equipped themselves with the tools of analysis where they can draw their own conclusions. Most, especially within the atheist community, rely on the mathematical scriptures written by the high priests in the Church of Science. They are just as bad as your run-of-the-mill religious schlemiel.

The takeaway: stay in your fucking lane. Stop criticizing other people’s arguments unless you are thoroughly equipped with and appreciate the proper use of the tools of individual analysis. This includes each individual’s ability to see, smell, touch, hear…to perceive. You should be able to extract, study, organize, and package information for yourself and only pay an expert when you simply don’t have the time to do so. Most of you can cook but because of time constraints, you eat out. That still doesn’t excuse you from putting together the basics of a meal, including the use of appliances, utensils, and ingredients.

Learn to measure and understand what is right in front of you, and then you can expand.