Indy Telecom & Industrial Media

Judge Posner recently had a blog post on twisting manipulating existing copyright laws to help the dying Fourth Estate corporations.

The following was my short (albeit visibly angry) response:

“I’ve been reading the Becker-Posner blog for a very long time, and while I’ve often read things here that I’ve disagreed with, this is the first time that I’ve felt particularly uncomfortable with anything posted here.

Others far better than I have highlighted the fallacies and flaws in your argument, Judge Posner. However, I must add that it almost seems surreal that a great legal mind such as yours has such a limited grasp of technology, and would suggest something that goes against the very fundamental nature of the Internet, and more importantly, free speech.

Our freedom of speech is not going to die at the hands of the government — it is going to be at the hands of the media cartels and copyright czars, aided by folks such as yourself. The road to hell, as they say, is paved with good intentions.

The idea behind a disruptive technology is that it is disruptive. You can try to stop its march the same way defenders of horse buggies rallied against the rise of the first motorcars – but we all know how that ended. This is the same tactic that folks like the RIAA employ to stop technologies from spreading, but get this – information wants to be free. You can try restricting it, you can try to draft laws to stop it from reaching the intended audience and you can be afraid of it. But no matter what you do, there is no denying the fact that there will always be workarounds. This fundamental and inalienable truth is something that folks have time and again failed to grasp, and it is almost saddening to see you, Judge Posner, fall into the same trap.

Trying to twist existing laws to help such corporations survive is laughable – and I would be laughing hard, if it were not coming from a legal emeritus such as yourself. In this case, I am shocked and saddened by your lack of understanding in grasping the very technology that powers your blog.

Newspapers are struggling and the fourth estate is hitting a hard spot? Well, tough luck. It is not the duty of the government to determine what companies live on and what do not. If their business model is flawed, well then it is quite unfortunate for them.

But more importantly, I see this as an opportunity for citizen bloggers and amateur journalists to step in. It is already happening, across the world. And it is only a matter of time before it becomes more widespread. The best thing about the Internet is that it empowers people. By trying to maliciously enforce copyright laws (which are in themselves quite antiquated) in ways that go against the very fundamental idea of free speech, you are trying to take away that empowerment.

If the big corporate newspapers die, then citizen Joe will have the power to be a journalist. Why should only people from AP and Reuters get Press badges to be at a White House conference? Why can’t bloggers and individuals who want to pursue journalism do the same thing? If anything, I find this to be a great way to level the playing field in favor of individuals.

Yes, please go ahead and spread the idiocy of copyright laws even more – and we, sir, will fight tooth and nail to let information be free for all to use. Copyleft, Judge Posner, is here to stay.”

So, Joe Carnevale gets an idea in class, makes a barrel monster for pedestrian amusement, and gets charged with larceny by the witless cops.

The irony of course is that the barrel owning company does not want to press charges (in fact, the company’s president is amused), wants the monster back, and has asked Joe to make a T-rex barrel monster. And the cops refuse to drop the charges.

I’m quite sure that amusing pedestrians with barrels is a far more serious crime that warrants all this attention, given the fact that Raleigh’s crime rates for robbery, aggravated assault, violent crime, burglary, larceny, and property crimes are all higher than the national average. Then again, we are talking about cops here.

(And anyone else notice that 3 barrels cost $365? Screw bailouts, I’m going into the barrel business.)

Fascinating piece by Barry Ritholtz comparing the bailout versus historic expenses after adjusted for inflation.

• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

TOTAL: $3.92 trillion in 206 years.

BAILOUT TOTAL: ~$15 trillion and counting.

Of course, there are a few caveats. A very significant amount of that money (including the wars and the bailout) have been “borrowed” from the future. Truth be told, the only way we are ever going to pay back those amounts if by inflating our way through it. Not that it makes them any less real, but it brings about some interesting questions on the “true” value of such a cost.

In fact, one cannot even call the bailout a “cost” since that money hasn’t necessarily been “lost”. It has basically been invested in commercial paper — now, some of that may not be very good commercial paper, but that does not necessarily make it a sunk cost.

And while we we’re on that topic, I would much rather prefer commercial debt (and all that it entails) than what passes for treasury bonds (especially given the folks we’re beholden to). The only reason bond valuations are where they are is because of the wonderful job our treasury has been doing to make sure it stays that way.

Secondly, that figure does not include World War II. Or World War I.

The only single American event in history that even comes close to matching the cost of the credit crisis is World War II: Original Cost: $288 billion, Inflation Adjusted Cost: $3.6 trillion

The $4.6165 trillion dollars committed so far is about a trillion dollars ($979 billion dollars) greater than the entire cost of World War II borne by the United States: $3.6 trillion, adjusted for inflation (original cost was $288 billion).

Of course, one could always argue that the Louisiana purchase got us good music, great food and the French Quarter.

Apparently, something like this:

I’m surprised at how little coverage this has received in the US. Recently, two (supposedly) Japanese men were caught with $143 billion worth of bonds (yes, that’s a b) on the border between Italy and Switzerland.

In their luggage and riding a blue-collar train in suits, no less.

Zero Hedge has a rather interesting take on it. You simply cannot make this stuff up.

Excellent article in the WSJ on Amherst Holdings’ recent transaction which outwitted some of the biggest banks out there in their own game.

To quote BPSK, it’s like buying life insurance from me for your uncle knowing he has cancer and will die within a year, while I secretly go and invest in a company that has invented the cure for cancer. He is cured, but you are pissed.

The bonds were paid off, but the CDS contracts are now worthless. Ah the irony.