Quotulatiousness

July 19, 2022

Drawing the proper lessons from the massive Rogers outage earlier this month

Filed under: Business, Cancon, Government, Media, Technology — Tags: , , , , — Nicholas @ 05:00

In The Line, Matt Gurney explains the really important lesson that seems to have escaped a lot of the critics who covered the Rogers internet/cell/TV outage that took a third of the country offline for 24 hours or more:

Most of the conclusions reached after the Rogers telecommunication outage two weeks ago are wrong. Millions of people lost home internet, television and cellphone service for the better part of a day (some for much longer). For those who had all their services bundled with Rogers, this meant being entirely cut off, including from access to emergency services. It was a big deal, both in terms of lost economic productivity and for those Canadians who needed help and could not access it.

The problem isn’t with Rogers, though. The problem is with everyone else.

I don’t want to be misunderstood. Rogers is bad. It did have a big problem. I am not a fan. Their customer service is generally awful. Their reliability and performance is decidedly meh and the meh costs a fortune. So don’t take this column as some sort of apologia for Rogers. I am one of their customers, but I’m only one of their customers because none of the other options are much better.

But still. The lesson of two Fridays ago shouldn’t be that Rogers is bad. It also shouldn’t be that the CRTC is bad or that our politicians are spineless and that our regulators are thoroughly captured. All of those things are true, but they’re not the lesson. That wasn’t the failure of two Fridays ago. The failure of two Fridays ago was that when one of our telecom companies went down, a pretty horrifying cross-section of Canadian society had no back-up plan.

Let’s imagine an alternate universe where things in Canada simply functioned better. Close your eyes and just dream it up. You’re in a different Canada now. The CRTC is awesome. Our politicians are terrific. Rogers is an incredibly good company that is masterful at delivering services that are overwhelmingly reliable and affordably priced. Even in this increasingly far-fetched parallel timeline, no telecom company is going to bat a thousand. You will never have 100 per cent service reliability. This alternate Canada still has outages — maybe they’re rare and brief, but they’re not unheard of or impossible.

And that’s why we can’t look at what happened two weeks ago as a failure at Rogers. Obviously Rogers failed. But the real failure was a failure of imagination and planning on the behalf of millions of individuals, and a worryingly diverse set of institutions, that did not have a back-up plan.

July 11, 2022

Canadians deserve better than “core network maintenance problems” for critical cell phone and internet services

Filed under: Business, Cancon, Government, Technology — Tags: , , , , — Nicholas @ 05:00

Our internet service provider, Rogers, suffered a major network failure early on Friday morning, taking down not just wired internet services, but also cable TV, and cell phone services and causing knock-on issues that utterly disrupted many emergency 911 services, government websites, banks (including ATM and point-of-sale terminals) and many more. I subscribe to both Rogers internet and Rogers cell phone services, but fortunately my wife has a different wireless phone provider so we weren’t completely offline all of Friday and most of Saturday. Michael Geist and his family weren’t as lucky:

Like many Canadians, I spent most of the massive Rogers outage completely offline. With the benefit of hindsight, my family made a big mistake by relying on a single provider for everything: broadband, home phone, cable, and wireless services on a family plan. When everything went down, everything really went down. No dial tone, no channels, no connectivity. Work was challenging and contact with the kids shut off. It was disorienting and a reminder of our reliance on communications networks for virtually every aspect of our daily lives.

So what comes next? We cannot let this become nothing more than a “what did you do” memory alongside some nominal credit from Rogers for the inconvenience. Canada obviously has a competition problem when it comes to communications services resulting in some of the highest wireless and broadband pricing in the developed world. Purchasing more of those services as a backup – whether an extra broadband or cellphone connection – will be unaffordable to most and only exacerbate the problem. Even distributing the services among providers likely means that consumers take a financial hit as they walk away from the benefits from a market that has incentivized bundling discounts. Consumers always pay the price in these circumstances, but there are policy solutions that could reduce the risk of catastrophic outages and our reliance on a single provider for so many essential services.

First, there is a need to better understand what happened and why. Rogers CEO says the problem lies with maintenance to the core network, which caused some routers to malfunction. But that’s just tech talk. Canadians deserve answers that explain not only how this happened, but how we find ourselves in a position where malfunctioning routers at one company cause a nationwide payment system to go down, government services to be taken offline, and emergency services to be rendered inaccessible. It is one thing for my household to make a mistake, but another for Interac to do so. That means conducting an open CRTC process into this outage alongside a Parliamentary hearing on the broader issues since this is a matter that requires both regulatory and political response. There is no need to wait: these hearings must happen this month with the goal of identifying the scope and source of the problem along with potential policies that might mitigate future harms.

Neither the CRTC nor the current government has shown much inclination to challenge the big telcos. CRTC Chair Ian Scott has reversed years of a consumer-focused Commission into one more comfortable supporting the big providers, while the government has been far more interested in sabre rattling or shaking down Internet companies than taking on big telecom. Yet as we were reminded on Friday, the linkage to the availability of essential services – payments, health care, government services – runs through the telcos, not the Internet companies.

This is the second object lesson in concentrated power in a small number of government-approved hands this year. Our first wake-up call was when the government prompted chartered Canadian banks to cut off some of their customers from all financial services even though no crimes had been committed and no charges were laid. It’s not clear how many people were affected, but arbitrarily denying people access to their bank accounts and credit cards should have rung alarm bells for many people. Now, we’ve been shown how dangerous it can be to allow a very small number of companies to divide the mobile phone and internet service market between them and use the power of government to keep out potential competitors. Will enough Canadians notice?

May 6, 2022

“Canadians might not know their constitutional history or even the text of the Charter, but they know in their bones that these orders were unconstitutional”

Long before the Freedom Convoy protests earlier this year, I’d been somewhat skeptical of the value of the Canadian Charter of Rights and Freedoms — not that I thought it was a bad thing to have a clear enumeration of Canadians’ rights, but in the degree to which those rights could be ignored or abrogated whenever the government found it convenient to do so. The invocation of the Emergencies Act proved that lacking strong and effective absolute rights, the Charter was merely a bit of tissue paper. In The Line, Josh Dehass shows he’s not as cynical as I am about the value of the Charter and provides some history predating the current document:

In a Boston courtroom in 1761, lawyer James Otis Jr. made one of the most consequential legal arguments of all time.

Otis was challenging the legality of “writs of assistance”, a form of general warrant giving unfettered discretion to customs agents to force their way into people’s homes to search for and seize smuggled goods, and to require the “assistance” of bystanders.

“It appears to me (may it please your honours) the worst instrument of arbitrary power, the most destructive of English liberty, and the fundamental principles of the constitution, that ever was found in an English law-book,” Otis inveighed.

John Adams later described that day in court as “the first scene of the first Act of opposition to the Arbitrary claims of Great Britain. Then and there the Child Independence was born. Every Man of an immense crowded Audience appeared to me to go away, as I did, ready to take Arms against Writs of Assistants.”

This hard-won right to be secure against unreasonable searches and seizures, affirmed by Section 8 of the Canadian Charter of Rights and Freedoms, is the reason so many of us felt queasy about the Emergency Economic Measures ordered by the Liberal cabinet under the Emergencies Act in February to quell the trucker protests. Canadians might not know their constitutional history or even the text of the Charter, but they know in their bones that these orders were unconstitutional.

The emergency measures required financial institutions to search their records for customers suspected of “directly or indirectly” engaging in a “public assembly that may reasonably be expected to lead to a breach of the peace”, or “directly or indirectly” using their money to facilitate such protests, and then seize their accounts.

That’s a classic general warrant, a writ of assistance in fact, enlisting banks to help King Trudeau and Queen Freeland hunt down their political enemies without going before a judge to prove reasonable grounds that a specific offence had been committed by a specific person. Section 8 is designed to keep us secure against unreasonable searches and seizures by the executive, and the only way for individuals to maintain this security is by requiring specific warrants from an independent judiciary, barring exigent circumstances.

This profound assault on our section 8 right will hopefully be raised during Justice Paul Rouleau’s inquiry into the use of the Emergencies Act, despite Trudeau’s attempt to focus the inquiry on the truckers themselves. Even if section 8 doesn’t get examined during the inquiry, the Canadian Civil Liberties Association expects to raise it in Federal Court if they’re successful in convincing a judge to review the decision to declare the protests a national emergency.

I don’t expect anything useful to come out of this inquiry process, otherwise Trudeau wouldn’t have let it get started in the first place.

May 4, 2022

From “merely” censoring your words to seizing your funds

Filed under: Business, Liberty, Media, USA — Tags: , , , — Nicholas @ 03:00

Matt Taibbi on PayPal’s recent moves to quash independent media reporting that disagrees with or contradicts the “official story”:

In the last week or so, the online payment platform PayPal without explanation suspended the accounts of a series of individual journalists and media outlets, including the well-known alt sites Consortium and MintPress. Each received a variation of the following message:

Unlike many on the list, Consortium editor Joe Lauria succeeded in reaching a human being at the company in search of details about the frozen or “held” funds referenced in the note. The PayPal rep told him that if the company decided “there was a violation” after a half-year review period, then “it is possible” PayPal would keep the $9,348.14 remaining in Consortium‘s account, as “damages”.

“A secretive process in which they could award themselves damages, not by a judge or a jury,” Lauria says. “Totally in secret.”

Consortium, founded by the late investigative reporter Robert Parry, has been critical of NATO and the Pentagon and a consistent source of skeptical reporting about Russiagate, as well as one of just a few outlets to regularly cover the Julian Assange case with any sympathy for the accused. Ironically, one of the site’s primary themes involves exploring disinformation emanating from the intelligence community. The site has had content disrupted by platforms like Facebook before, but now its pockets are being picked in addition.

This episode ups the ante again on the content moderation movement, toward the world hinted at in the response to the Canadian trucker protests, where having the wrong opinions can result in your money being frozen or seized. Going after cash is a big jump from simply deleting speech, with a much bigger chilling effect. This is especially true in the alternative media world, where money has long been notoriously tight, and the loss of a few thousand dollars here or there can have a major effect on a site, podcast, or paper.

As MintPress founder and executive director Mnar Adley points out, the current era of content moderation — characterized by private platforms either overtly or covertly working with government to identify accounts for censure — really began with PayPal’s historic decision in 2010 to halt donations to Wikileaks. In that case, PayPal acted after receiving a letter from the State Department claiming the site’s activities were illegal.

“PayPal banning donations from WikiLeaks really set up the blueprint for today’s censorship”, Adley says.

March 21, 2022

For some reason, Canadians’ interest in alternative currencies has risen substantially since February

Filed under: Cancon, Economics, Government, Technology — Tags: , , , , — Nicholas @ 03:00

I’m far from alone in taking the Canadian government’s absurd over-reaction to the Freedom Convoy 2022 political protest in February as a reason to be concerned about the Canadian banking system. Until then I’d paid very little attention to alternative currency options like Bitcoin and the like, but I now understand that they may be a key element in future financial planning. At Quillette, Jonathan Kay explains that he realized at the same time he needed to know much more about crypto:

“Bitcoin – from WSJ” by MarkGregory007 is licensed under CC BY-NC-SA 2.0

On February 15th, following weeks of anti-vaccine-mandate protests in downtown Ottawa, Justin Trudeau lurched from complete inaction to absurd overreaction by declaring a national emergency. One effect of this was that banks were suddenly authorized to freeze the personal assets of citizens linked with the protests, civil liberties be damned. Around the same time, moreover, hackers acquired and published identifying information associated with thousands of people who’d donated money to the protest movement. Rather than denounce this apparent criminal data breach, many public figures — including Gerald Butts, who’d been Trudeau’s right-hand man before resigning amid scandal in 2019 — actually celebrated this doxxing. Some media outlets even tried to mine the dox information for clickbait before being stung by a public backlash. While I hadn’t donated to the Freedom Convoy movement, I was sufficiently appalled by these developments that I started educating myself about how one might donate to a similar cause without government officials and social-media hyenas exploiting these transactions as a pretext to attack my assets and reputation.

The easiest way to get into the crypto market, I learned, is simply to open an account at an exchange platform such as Coinbase or Wealthsimple. But while they’re easy to use, exchange platforms also generally require clients to supply government-issued ID when they secure their accounts, and transactions are traceable by authorities. To assure myself of real anonymity and theft-protection, my tutor instructed me, a better (if more complex) option is “cold storage”. This is a real physical device — in my case, something called a Ledger — that acts as a personal crypto wallet.

My Ledger (which looks like a large USB key drive) contains the data required to generate the “private keys” (which look like long passwords, though that isn’t quite what they are) that allow me to send my crypto to other people. And that spending can be done only in those moments when the device is connected to the Internet, after which it can be relegated to a drawer or safe (thus the metaphorical concept of “cold storage”). On the other hand, I can receive money even if the Ledger is offline, so long as the sender has my public key, which (unlike a private key) is generally safe to give to others (such as, say, a prospective donor to any charitable cause that I might establish).

Bitcoin’s basic mechanics were set out in 2009 by the much-mythologized pseudonymous author (or collective) known as “Satoshi Nakamoto”. In a legendary white paper titled Bitcoin: A Peer-to-Peer Electronic Cash System, Satoshi describes the newly conceived electronic coin as consisting of a chain of digital signatures (a blockchain) that build one upon the next through a mathematical mechanism known as a cryptographic hash function — a one-way function whose output doesn’t expose the original private key to reverse-engineering. So once a bitcoin transaction is recorded and added in verified form to the blockchain by everyone — this being the “public distributed ledger” that bitcoin users are part of — the transaction can’t be erased or reversed (with one important theoretical exception, described later on).

Image contained in Bitcoin: A Peer-to-Peer Electronic Cash System, demonstrating the use of public and private keys to verify and sign bitcoin transactions.

Of course, you don’t need to understand how this cryptography works to use cryptocurrency. But it is worth getting your head around an important concept that fundamentally separates crypto from conventional assets such as, say, money that sits in a bank account. Your bank account number doesn’t have any value in and of itself: It’s just an institutional convenience that tells you and your bank where your actual money’s been filed (which is why that account number sits in plain sight on every physical check you sign, assuming you still use checks). But in the case of bitcoin, a private key basically is money — in the sense that anyone with access to such a key can spend the associated funds. And so if you lose your private-key information, or it gets stolen by a thief, there’s no 1-800 helpdesk number. It’s gone forever.

March 12, 2022

Governments hate Bitcoin and other alternative currencies because they hate competition

Filed under: Bureaucracy, Business, Government, Liberty, Technology — Tags: , , , , — Nicholas @ 03:00

Fifteen to twenty years ago, someone put together a funny-but-disturbing presentation on ordering pizza in the future, where the linked and integrated databases of health, banking, insurance, police, etc. are all available even to the order-taker at a pizza delivery place (the earliest example I found was this one). It was unsettling enough in the early oughts, but as N.S. Lyons illustrates, it’s far closer to reality than to fiction today:

You awake to find that today is special: it’s Stimmie Day! When you roll over and check your phone, you see a notification from your FedWallet app letting you know that another $2,000 in FedCoins has just been added directly to your account by the U.S. Federal Reserve.

To be honest, part of you would love to save that money for the long term, given that things have been getting rather uncertain and actually kind of crazy lately, what with the war and the economy and all… But you can’t, since these FedCoins are coded as usable for consumer purchases only, and will expire and vanish in seven days. So you’d better spend em while you’ve got em!

The latest PlayBox it is then. Everyone says Elden Ring 3 is the hottest VR game on the Metaverse right now, and you’ve really wanted to join in. Since you’re stubbornly old fashioned, you decide to check it out at BezosMart on the way home from work today before you get it delivered by drone to your tiny apartment.

But first you begin your day as you always do, with a quick stop at the local Starbrats’ automated, no-contact drive-through latte dispensary. Opening your FedWallet app and vaguely waving your smartphone at the machine is enough to complete the transaction. $14 in FedCoins are instantly deleted from your digital account at the Fed and recreated in Starbrats’ corporate account, well before the sweet, coffee-flavored milk beverage is deposited into your eager, grasping hands.

Your morning starts to go downhill quickly, however, when you realize that your SUV is almost out of gas. You pull the old clunker, with its antiquated combustion engine, into the nearest open station you can find – it looks pretty run-down – and roll up to the pump. A dull-eyed teenager in a facemask inserts a nozzle into your vehicle and waits for you to pre-pay. You wave your phone at the pump. Nothing happens. You try again. Your phone buzzes, and you look at it. There’s a message from the Fed: “You have already spent more than the $400 maximum weekly limit on fossil fuels specified in the FedWallet User Agreement. Your remaining account balance cannot be used to purchase non-renewable energy resources. Please make an alternative purchase. Have you considered a clean, affordable New Energy Vehicle? Thank you for doing your part to build a more just and sustainable world!”

You have in fact considered purchasing a clean, affordable New Energy Vehicle. But they still aren’t very affordable for you, what with the supply chain shortages. Despite the instant credit the Fed would add to your balance when buying an electric car – plus the permanent ten percent general subsidy you automatically receive on every purchase as a BIPOC individual thanks to the Fed’s Reparations Alternatives for Comprehensive Equity (RACE) program – the down payment on a new car would still be more than you can afford, even with your new stimmie coins.

Well, you’re not going to be able to make it to work at the warehouse on what you have in the tank. How could you be so foolish? You’re going to have no choice but to park here and blow a bunch of money on hailing one of those sleek, incredibly expensive self-driving electric cabs to take you there instead. But, as you’re about to tap the screen to do so, you notice there’s a classic fast-food joint next door. Might as well head there first to unload a little stimmie money. Nothing makes you feel better like a greasy breakfast sandwich.

Entering the establishment and sidling up to the old touchscreen kiosk, you order a McKraken with extra bacon. But when you wave your phone to pay, an error message pops up again. “You have exceeded your weekly purchase limit for complex animal protein, as stipulated in the FedWallet User Agreement. Have you considered purchasing a delicious vegan or mealworm alternative? Thank you for doing your part to build a more just and sustainable world!”

This is a sandwich too far for you during an especially hard week. “Ugh FedWallet is so fucking lame!” you post on Twatter as you idle hungrily in front of the kiosk. “Your message has been flagged for review,” says an immediate notification. “As a reminder, using ableist hate speech may impact your ESG score and future financing opportunities. Thank you for doing your part to build a more just and inclusive world!”

“Omg this is absurd, life was so much better before FedCoin, when we still had cash!” you post again to Twatter, unable to control yourself. “Your account has been locked pending national security review,” says a notification from FedWallet. “As a reminder, the proliferation of false or misleading narratives which sow discord or undermine public trust in government institutions is classified as a potential domestic terrorism offence by the Department of Homeland Security. We value your feedback.”

[Updated because I forgot to link to the original post.]

March 11, 2022

Donate money to a legal, peaceful protest and be deprived of your rights on a governmental whim. Welcome to Canada!

Filed under: Cancon, Government, Law, Liberty — Tags: , , , , , — Nicholas @ 05:00

In First Things, Craig A. Carter recaps the events of February here in Canada after the government suddenly decided to treat non-violent protests as existential threats to the regime:

A Toronto Sun editorial cartoon by Andy Donato during Pierre Trudeau’s efforts to pass the Canadian Charter of Rights and Freedoms. You can certainly see where Justin Trudeau learned his approach to human rights.

Last month, Canadian Prime Minister Justin Trudeau’s cabinet used special powers under the Emergencies Act to freeze the bank accounts of Canadian citizens who supported Freedom Convoy protests against vaccine mandates. The government partnered with banks and other businesses to “de-bank” Canadians, circumventing due process and normalizing a dangerous, undemocratic policy. Canada has since revoked the Emergencies Act and instructed banks to unfreeze the targeted bank accounts, but this action set a dangerous precedent.

On February 22, the House of Commons Finance Committee questioned Department of Finance Assistant Deputy Minister Isabelle Jacques about the details of these financial measures. The government revealed that more than 206 accounts were frozen. Exactly how many “more” was not indicated. Trudeau revoked the Emergencies Act on February 23. But we still do not know how many accounts were frozen. No judicial review is permitted of the actions of banks under the Emergencies Act.

The government targeted not only protest participants, but also those who merely donated to the protesters. A reporter asked Jacques if a person who donated to a crowdfunding platform with no further involvement in protests could have their bank account frozen. The answer was “Yes.” Some people were punished without being formally charged with a crime at all.

In some cases, the right to a trial and the presumption of innocence were discarded. The Royal Canadian Mountain Police (RCMP) has stated that they provided the names of Freedom Convoy donors to financial institutions. The RCMP claimed that these individuals were major influencers in the protests or truck drivers who refused to leave the area. This might be the case, but we have no way of knowing for sure. Normally, when the RCMP conducts an investigation, they charge an individual with a specific crime and then give evidence to the Crown prosecutor, who decides if the person should be tried in court. If the person is found guilty after trial, then the judge sentences the person, and the sentence is carried out. However, in this situation, the whole process was reversed. The RCMP determined guilt and imposed a punishment before conducting a proper trial for explicit charges. And because this was done under the Emergencies Act, citizens do not have the ability to sue the bank or the RCMP for mistakes — cases of mistaken identity, for example. There was no incentive against carelessness.

There has also been controversy over whose accounts were frozen. The Globe and Mail reports that the RCMP told the House of Commons Finance Committee on March 7 that a “small number” of additional accounts were frozen under the Emergencies Act based on the banks’ own “risk-based” reviews and were not on a list of names provided by the RCMP.

February 21, 2022

Trudeau government intends to keep (some of) the powers seized through illegitimate use of the Emergencies Act

The Canadian government under Justin Trudeau took advantage of a peaceful protest in the streets of Ottawa to invoke the Emergencies Act, the modern-day successor to the War Measures Act (which itself had only ever been used three times). Nothing the police have done in Ottawa since the emergency was declared required the powers enabled under the legislation, but apparently the protest was just a pretext to let the government do what it really wanted to do anyway:

The regular weekly round-up from The Line was delayed until Saturday as the events in Ottawa were far too fast-moving to summarize at that point. Here’s part of the later newsletter:

As the protest in Ottawa winds down, your Line editors are beginning to ask themselves, perhaps too optimistically: what happens after the emergency is over?

The Liberal government has arrogated to itself enormous powers through the Emergencies Act: the most notable among them, the ability to freeze assets of protest participants without any kind of prior judicial approval or warrant. It’s not entirely clear to us what would constitute an offence that the government would consider serious enough to justify using this power.

If someone gave $500 to the protest movement three weeks ago, would that merit freezing a bank account? Is the number $5,000? Or $50,000? Would this act apply to independent media livestreaming the protests?

Complicating matters, on Wednesday, Justice Minister David Lametti gave an interview with CTV’s host Evan Soloman. Solomon asked whether ordinary people who donated to the trucker convoy should be worried about the provisions in the Emergencies Act. Lametti responded:

“If you are a member of a pro-Trump movement who is donating hundreds of thousands of dollars, and millions of dollars to this kind of thing, then you ought to be worried,” said Lametti.

Excuse us, but … wtf?

Threatening people who are donating cash to anything that can be construed as a “pro-Trump” movement suggests that attempts to freeze assets aren’t directed toward criminal behaviour, but are rather politically motivated.

We asked Lametti’s office for response to his “pro-Trump” comments and this was his response:

    “We always ask our police forces as well as our prosecutors to act reasonably, where they’re going to work with the banks to ensure that they act reasonably. Obviously there are going to be judgment calls that will be made and serious contributors will be treated more seriously. But, as always, we’re going to leave it to law enforcement to work with the banks, as they already do in other areas that already exist. Such as in anti-terrorism financing and in other areas through FINTRAC.”

This is, frankly, not much of an answer. It amounts to “we will be reasonable. Trust us!”

Well, we don’t. We don’t trust NDP leader Jagmeet Singh to hold this government to account in Parliament. We don’t trust the left to clue into the fact that the tactics used against the convoy will be used against their causes in turn. We don’t trust conservatives to show more principle or restraint when in power.

David Sacks, posting at Bari Weiss’s Common Sense blog, says that the federal government’s moves to seize bank accounts is a clear sign that we’re having a Chinese-style “social credit” system imposed on us:

Last summer, I warned readers of Common Sense that financial deplatforming would be the next wave of online censorship. Big Tech companies like PayPal were already working with left-wing groups like the ADL and SPLC to define lists of individuals and groups who should be denied service. As more and more similarly minded tech companies followed suit (as happened with social media censorship), these deplorables would be deplatformed, debanked, and eventually denied access to the modern economy altogether, as punishment for their unacceptable views.

That prediction has become reality.

What I could not have anticipated is that it would occur first in our mild-mannered neighbor to the north, with the Canadian government itself directing the reprisals. It remains to be seen whether Canada will be a bellwether for the U.S. But anyone who cares about the future of America as a place where citizens are free to protest their government needs to understand what has just occurred and work to stop it from taking root here.

[…]

Trudeau escalated things further on Tuesday night, when he issued a new directive called the Emergency Economic Measures Order. Invoking a War on Terror law called the Proceeds of Crime and Terrorist Financing Act, the order requires financial institutions — including banks, credit unions, co-ops, loan companies, trusts, and even cryptocurrency wallets — to stop “providing any financial or related services” to anyone associated with the protests (a “designated person”). This has resulted, according to the CBC, in “frozen accounts, stranded money and canceled credit cards”.

Banks, according to this new order, have a “duty to determine” if one of their customers is a “designated person”. A “designated person” can refer to anyone who “directly or indirectly” participates in the protest, including donors who “provide property to facilitate” the protests through crowdfunding sites. In other words, a designated person can just as easily be a grandmother who donated $25 to support the truckers as one of the organizers of the convoy.

Because the donor data to the crowdfunding site GiveSendGo was hacked — and the leaked data shows that Canadians donated most of the $8 million raised — many thousands of law-abiding Canadians now face the prospect of financial retaliation and ruin merely for supporting an anti-government protest.

Hard to disagree with Jon Kay here:

Jordan Peterson discusses the catastrophe of Canada with Rex Murphy:

February 18, 2022

The “small fringe minority … holding unacceptable views” who can now have their bank accounts seized without recourse

Filed under: Cancon, Government, Politics — Tags: , , , , , , — Nicholas @ 03:00

Prime Minstrel Justin Trudeau invoked the Emergencies Act earlier this week, which gives the federal government the kind of powers previously reserved for wartime. Among other measures, it is claimed that the act gives the feds the power to have Canadian banks seize the accounts of Canadians holding unacceptable views. Even those of us who donated to the support of the trucker convoys in Ottawa and several border crossings are now “legally” able to be deprived of our property. This is far from the kind of free and democratic society most of us thought we inhabited before the public health crisis of the Wuhan Coronavirus somehow transmuted our country into a would-be dictatorship.

At Essays in Idleness, David Warren demands that we stop it now:

The idea that one has the right, under a “Charter”, to speak freely, demonstrate and protest, but not the right to occupy physical space and time, has long been apparent to persons of the cold-blooded, criminal disposition.

In this respect Justin Trudeau is hardly unique. Like, for instance, the New Zealish prime minister, Jacinda Ardern, he rose to his present eminence as the embodiment of an empathy, that was entirely fake. Indeed, he had no other skills or gifts, and like Miss Ardern, has only offered administrative incompetence. He is what we call “a nasty piece of work”.

He has now declared a national State of Emergency: because there are trucks parked illegally on Wellington Street in Ottawa. Had he been quicker with his proclamation, he could have mentioned a bridge in Windsor and border crossings in Manitoba and Alberta. But this would not have made his claim more plausible, as all the demonstrations were provocatively peaceful. The only chance of violence is to use force against them.

An economy is a controversial thing, for economic activity will often involve the use of space and time. For instance, truckers, and most others who are inclined to resist government “mandates”, are known to have bank accounts. They buy food to put in themselves, and fuel to put in their vehicles. By “freezing” these financial instruments, Trudeau vainly hopes to starve his opponents into panicked submission.

As Jen Gerson notes on Twitter, Canada is suffering a psychotic break. The technical term is “Bug Fuck Crazy”:

She continues:

I mean, perhaps this was inevitable. No country can be this uptight and stoic for so long without losing its collective bugfuck crazy mind eventually.

    @MacLeodKirk: Yeah, to be honest I’m rather tired of us measuring our level of excellence based on the batshit crazy happenings in the US.
    Perhaps we could aim just a tad bit higher?

The difference is that America can tolerate a certain baseline level of crazy. It’s like having an alcohol tolerance.

Canada, by comparison, is an 18-year-old Ontario girl crossing into Quebec and taking her first shot of Sourpuss right now. We can’t handle our shit.

“ALL OF YOU ARE ACTING LIKE CRAZY PEOPLE” she screamed into the Internet abyss before throwing her wine glass at the wall and disappearing for three days.

Earlier this week, the government’s spokesgoons in the media made not-so-veiled threats against the children of truckers and other supporters. On Thursday, Ottawa officially threatened to dognap any pets at the protest … for their own good, of course. Interestingly, Thursday was also the day that workers began to install a fence around the Parliament buildings, in imitation of the fortifications at the American Congress.

Malcom Kyeyune calls it “Justin Trudeau’s phoney dictatorship”:

When Justin Trudeau invoked emergency powers to quell protests against mandatory Covid-19 vaccinations this week, it was another sign that for Western liberal democracy, business as usual is over. This is the first time Canada’s Emergencies Act has ever been called upon by a Prime Minister. Its predecessor, the War Measures Act, was used three times: once for World War One, once for World War Two, and once to deal with a violent campaign of bombing, kidnapping, and murder by Quebecois separatists in 1970.

Yet Trudeau’s invocation of the Emergency Act is also a bizarre moment. Consider that the law stipulates that the government can fine people violating the act between 500 and 5,000 dollars. On the face of it, these are not numbers that seem commensurate to punish violators of the most powerful emergency law in the Canadian state’s armoury. But the reason these numbers seem so strange is simple: the law hasn’t been updated to keep up with the times, or inflation.

The oddness doesn’t end there. A law that in a real sense was forgotten — and designed to handle the most extreme situations a nation state can find itself in — is now dredged up to deal with a fairly routine political protest. Trudeau, and his finance minister Chrystia Freeland, have also called on financial institutions to freeze or suspend any bank accounts without a court order if they are being used to fund the protests. They believe, as David Frum writes in The Atlantic, that the truckers represent a “form of performative intimidation”.

Compared to the mass burning and vandalism of Catholic Churches in Canada last summer — which Trudeau both denounced and sympathised with, calling the arsons “understandable” at one point — the truckers hardly represent a nadir of public order. Across the border in the United States, the rioting that occurred there in the summer of 2020 involved loss of life, and massive damage to property. Back then Kamala Harris’s response was markedly similar to that of Trudeau — hand-wringing, sure, but also sympathy with the motivations of those who rioted.

Perhaps buildings being burned down, sometimes with their occupants still inside them, is just part and parcel of living in a vibrant democracy. Meanwhile, a protest that has led to zero loss of life and no torched buildings is cast as a grave threat to democracy. Put up bouncy castles for kids to play in and have public barbecues, as the truckers have done? Then, in the words of the New York Times‘ editorial board, you are “far-Right”, and represent a “test of democracy” itself.

Or you will be accused of “sedition” by the usually phlegmatic Mark Carney. The former Bank of England governor may support Trudeau’s use of emergency powers, but by all indications it is a spectacularly ill-conceived move. Many provincial leaders are already openly rejecting the necessity of such extreme measures.

Kim du Toit responds to a rant by one of Sarah Hoyt’s contributors:

As I see it, most ordinary Americans — if faced with the choice — would rather go to war against our own government than against Canada, present company included.

And as Mr. Free Market put it to me during a semi-drunken phone call last night: how bad does the Canadian government have to be, to have pissed off the nicest, politest people on the planet?

They’re so nice that SoyBoy Trudeau is highly unlikely to have a Ceaușescu Moment, even though it could be argued that he deserves one

As always, Canadians love it when foreigners (especially Brits and Americans) call us “nice” and “polite” … it shows they don’t follow hockey or know many actual Canadians. Canadians are polite, generally, but it’s a kind of passive-aggressive niceness that can snap unexpectedly under sufficient provocation, then the gloves come off and there’s blood on the ice. That last bit is only sometimes metaphoric.

February 11, 2022

QotD: “By their proposals, shall ye know them”

Of politicians in power it might be said, “By their proposals, shall ye know them.” What they say they want to do is almost as significant as what they actually succeed in doing, for it offers an insight into their fundamental philosophy or state of mind. This is especially important, of course, when they seek to cling on to power by re-election or by some other means such as behind-the-scenes-influence.

That is why the proposal that the IRS should have access to the data of all bank accounts from which or into which more than $600 a year are paid (hardly a king’s ransom) is so important, despite the fact that it has not been enacted. The very fact that someone wanted to enact it, and thought it right that it should be enacted, is highly significant — and sinister — in itself, for the proposal demonstrates a totalitarian mindset.

The ostensible purpose of the proposal, of course, is the elimination of tax evasion. (Incidentally, I have noticed recently an increasing tendency, in the press and elsewhere, for the term tax avoidance to be used interchangeably with that of tax evasion, as if the difference between legality and illegality were of no real importance. This conflation is itself indicative of a totalitarian attitude, according to which a governmental end may be reached without the necessity for any law.)

The people who proposed that, in effect, every bank account should be routinely available for examination by the IRS, without any specific warrant for such an examination, thereby revealed that they thought that the gathering of tax so important that it superseded all other considerations.

Psalm 24 begins: “The earth is the Lord’s, and the fulness thereof, the world and they that dwell therein. For he hath founded it upon the seas, and established it upon the floods.”

A better version, according to the proposers, would be: Money is the government’s, and the fulness thereof, money and they that have any. For it hath founded it upon the printing press, and established it as legal tender.

I do not go as far as some economists of my acquaintance, who believe that tax evasion is a citizen’s civic duty: at least it is not in the circumstances prevailing in any western country, however unsatisfactory they may be. In my own case, I do not evade taxes and even my attempts to avoid them are rather feeble, for unfortunately there is so little at stake.

But I reject completely the idea that, morally, the first call on anyone’s money is the government’s, which in effect has the right to leave you pocket money by its grace and favor after you have paid your taxes at any rate that it likes. This is the very tyranny that the founders of America feared in majoritarian democracy, untempered by inalienable rights — inalienable even, or especially, by or to the government.

Theodore Dalrymple, “Monitoring Bank Accounts Would Make the People of the Government, Not the Government of the People”, The Iconoclast, 2021-11-01.

November 25, 2021

QotD: Corporate coercion can be just as dangerous as state coercion

So many libertarians […] have a simplistic, dare I say dualistic notion about bad-things-done-by-private-business and bad-things-done-by-the-state. One is met with “so start up a rival company” the other with “an outrageous example of state overreach that must be opposed politically.”

And in an ideal world, yes, that makes sense. We do not live in anything resembling an ideal world.

In an era when three (two really) credit card companies and a handful of payment processors have an off-switch for pretty much any on-line business they take a dislike to (unless they are called Apple or Amazon), as more and more of the economy goes virtual, what we have is turn-key tyranny for sale to the highest bidder, and the highest bidder is always going to be a state. I am uncertain what the solution is, but as we do not live in a “free market”, not convinced “so go set up your own global credit card and payment processing network” adds anything meaningful to the discussion. It is a bit like saying when the local electric provider turns off the power in your office (or home) because they disapprove of what you are doing “so go set up your own electric supply company”, as if that would be allowed to happen.

Perry de Havilland, “This is what so many libertarians cannot understand …”, Samizdata, 2021-08-22.

October 12, 2021

Worthless Paper Money – German Hyper-Inflation Starts After WW1 I THE GREAT WAR 1921

The Great War
Published 8 Oct 2021

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The German post-WW1 economy was under pressure: the loss of territory, the war bonds issued during the war and the reparations under the Treaty of Versailles. All this lead to a downward spiral of rising inflation and living costs for German citizens.

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Grosch, Waldemar: Deutsche und polnische Propaganda während der Volksabstimmung in Oberschlesien 1919-1921. 2002.

Lewek, Peter: Arbeitslosigkeit und Arbeitslosenversicherung in der Weimarer republik 1918-1927. 1989.

Michalczyk, Andrezej: Celebrating the nation: the case of Upper Silesia after the plebiscite in 1921.

Neubach, Helmut: Die Abstimmung in Oberschlesien am 20. März 1921. 2002.

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August 9, 2021

The modern-day threat of being made an “unperson” is real and very dangerous

Sean Gabb explains why even libertarians need to consider the non-state power in the hands of corporations that can — and does — force people out of their jobs, their homes, and even deprive them of the ability to communicate or to access financial services merely for expressing unpopular opinions. As I said in a different venue, it’s a short step from “no fly lists” to “no eat lists”, especially when the enforcing entity is a nominally private organization:

John Stuart Mill (1806-1873)

The old pressures to conform were wrong. So are the new. And they are wrong simply because they are pressures to conform. I find myself at last appreciating a part of Mill’s essay On Liberty for which I never used to have much time. Until recently, I would insist that the only real oppression was by the State: all else was the working of private choice. If the authorities fined a man £5 for having sex with another man, that was outrageous tyranny. If his tastes became public knowledge, and he was unable to find work, that was merely unfortunate. This is, I still believe, essentially true. Indeed, I could argue that, without a State having centralised and corporatised powers of discrimination that ought to be widely distributed, there would be no problem — or there would be a problem that was bearable. But these powers were centralised and corporatised a long time ago. They are now being used to achieve a uniformity of opinion outside the home in which the formal organs of compulsion have no obvious part. This is not the “tyranny of the majority” that worried Mill. I find it inconceivable that anything close to a majority could believe the insane drivel pouring from the regime media. Neither, though, is it the kind of oppression against which liberal bills of rights have traditionally been written. Because of this —

    when society is itself the tyrant …, its means of tyrannising are not restricted to the acts which it may do by the hands of its political functionaries. Society can and does execute its own mandates: and if it issues wrong mandates instead of right, or any mandates at all in things with which it ought not to meddle, it practises a social tyranny more formidable than many kinds of political oppression, since, though not usually upheld by such extreme penalties, it leaves fewer means of escape, penetrating much more deeply into the details of life, and enslaving the soul itself. Protection, therefore, against the tyranny of the magistrate is not enough: there needs protection also against the tyranny of the prevailing opinion and feeling; against the tendency of society to impose, by other means than civil penalties, its own ideas and practices as rules of conduct on those who dissent from them …

    (J.S. Mill On Liberty, 1859, “Introductory“)

We need protection indeed. But the protection we need is not yet another law telling the police to leave dissidents alone. We already have a stack of these, and they are protections against a threat that largely does not exist. The answer, I suggest, is an amendment to the anti-discrimination laws to outlaw discrimination on the grounds of what may be loosely called political opinion.

I say hardly anyone read my original essay. Sadly, most of those who did read it stand in the more wooden reaches of the libertarian movement, and these set up a cry that I had become a Communist. I was suggesting that private organisations should be coerced in their choices of whom and whom not to employ, and even in their choices of customer and supplier. I had abandoned the non-aggression principle. Here, briefly expressed, is my answer to these claims.

I run the Centre for Ancient Studies. This provides a range of tuition services in Greek and Latin. It is a sole tradership. As such, I reserve the unconditional right to decide what services I offer and to whom. If I dislike the colour of your face, or the status of your foreskin, or your tastes in love, or anything else that I may think relevant, it should be my right not to do business with you. It may be that only a fool turns away customers with money to spend, and I am not that sort of a fool. Even so, I do claim at least the theoretical right, and I ground it on my right to do as I please with my own. But I claim these rights as a human individual. A limited company is not a human individual. Whatever entrepreneurship may exist in them, these companies are artificial persons and creatures of the State. Their owners have the privilege of limited liability. That is, they have the right, in the event of insolvency, not to pay the debts of a company if these are greater than the assets of the company. If this were not a valuable right, there would not be so many limited companies. There are almost no large companies, and none lasting more than a single generation, that do not have limited liability.

This being so, limited companies benefit from a grant of privilege from the State, and are legitimate subjects of regulation by the State for as long as they are receipt of this privilege. No doubt, some forms of state regulation are bad in their objects, or bad as regards the means to their objects. But regulation is not in itself an aggression by the State. It follows that, whether or not we can get it, libertarians should not feel barred from demanding laws to prevent limited companies from discriminating against their employees on the grounds of political opinion, and to require them to do business with customers and suppliers regardless of political opinion.

I appreciate that I am asking for more than the regulation of limited companies. The anti-discrimination laws we have make no distinction between incorporated and unincorporated associations. Even so, the extension of these laws to cover political opinion would mainly affect only the larger limited companies. At the same time, there is an obvious and overriding public interest in the protection of political opinion. People are now scared to speak their minds. Whether intended or just revealed, this is part of the strategy. The reason why the collapse of both freedom and tradition is gathering pace is because no one dares stand up and protest. In the absence of protest, everything will carry on as it is. Given a restored right of protest, there is a chance of stopping the collapse. The only way to lift the blanket of fear that now lies over all but approved opinion is somehow or other to get a law making it clear that no one who speaks his mind can be loaded with shadow punishments.

“Somehow or other!” In a sense, I am making a fool of myself. I am asking the politicians to make a law against what they themselves may not be doing, but that has no effect on their main reason for being in politics, which is to fill their pockets. I am asking them to take on the entire mass of the non-elected Establishment. I am asking a lot of these people. On the other hand, the politicians still need to be elected, and that was the weak point in the Establishment’s plan to stay in the European Union. We had to spend four years voting and revoting, but we did eventually get what we wanted. It is conceivable that, if enough of us call loudly enough for protection, some kind of protection will be granted.

Short of that, we are lost.

May 7, 2021

Scott Alexander reviews David Harvey’s A Brief History Of Neoliberalism

Filed under: Books, Economics, History, USA — Tags: , , , , , , — Nicholas @ 03:00

[Update: In the comments, “gunker” explains that this is another of Scott’s reader-contributed book reviews, not one of his own work. My apologies for the mistake.] After a quick rundown of the conventional explanation for the decline and fall of the comfortable post-WW2 US economy in the 1970s, Scott gives an overall appreciation of Harvey’s arguments:

… This treatment is almost the opposite of the way ABHoN describes events. Telling the story this way makes me feel like Jacques Derrida deconstructing some text to undermine the author and prove that they were arguing against themselves all along.

Harvey is an extreme conflict theorist. The story he wants to tell is the story of bad people destroying the paradise of embedded liberalism in order to line their own pockets and crush their opponents. At his best, he treats this as a thesis to be defended: embedded liberalism switched to neoliberalism not primarily because of sound economic policy, but because rich people forced the switch to “reassert class power”. At his worst, he forgets to argue the point, feeling it so deeply in his bones that it’s hard for him to believe anyone could really disagree. When he’s like this, he doesn’t analyze any of the economics too deeply; sure, rich people said something something economics, to justify their plot to immiserate the working classes, but we don’t believe them and we’re under no obligation to tease apart exactly what economic stuff they were talking about.

In these parts, ABHoN‘s modus operandi is to give a vague summary of what happened, then overload it with emotional language. Nobody in ABHoN ever cuts a budget, they savagely slash the budget, or cruelly decimate the budget, or otherwise [dramatic adverb] [dramatic verb] it. Nobody is ever against neoliberal reform — they bravely stand up to neoliberal reform, or valiantly resist neoliberal reform, or whatever. Nobody ever “makes” money, they “extract” it. So you read a superficial narrative of some historical event, with all the adverbs changed to more dramatic adverbs, and then a not-very-convincing discussion of why this was all about re-establishing plutocratic power at the end of it. This is basically an entire literary genre by now, and ABHoN fits squarely within it.

Harvey’s theses, framed uncharitably, are:

1. Embedded liberalism was great and completely sustainable. The global economic system collapsing in 1971 was probably just coincidence or something, and has no relevance to any debate about the relative merit of different economic paradigms.

2. Sure, some people say that the endless recession/stagflation/unemployment/bankruptcy/strikes of the 1970s were bad, but those people are would-be plutocrats trying to seize power and destroy the working class.

3. When cities, countries, etc, ran huge deficits and then couldn’t pay any of the money back, sometimes the banks that loaned them that money were against this. Sometimes they even asked those places to stop running huge deficits as a precondition for getting bailed out. This proves that bankers were plotting against the public and trying to form a dystopian plutocracy.

4. Since we have proven that neoliberalism is a sham with no advantages, we should switch back to embedded liberalism.

Let’s go through these one by one and see whether I’m being unfair.

November 25, 2020

Switzerland: Neutral or Nazi Ally? – WW2 Special

Filed under: Europe, Germany, History, Military, WW2 — Tags: , , , , — Nicholas @ 04:00

World War Two
Published 24 Nov 2020

After the fall of France in June 1940, neutral Switzerland found itself surrounded on all sides by a hostile expansionist power. The small nation would have been a valuable possession but the jaws of the Reich hesitated to swallow it. How did Switzerland manage to exit the conflict intact and largely unscathed?

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From the comments:

World War Two
1 hour ago
As we draw close to the end of 1941, it becomes clear that neutrality is not a guarantee of safety. Its utility as a diplomatic strategy has been discarded and is non-existent.

A total of 12 sovereign and neutral nations have been invaded by Allied or Axis powers since the beginning of the war — Denmark and Norway on 9 April 1940; Belgium, the Netherlands, Iceland and Luxembourg on 10 May 1940; Lithuania on 15 June 1940 and Latvia and Estonia on 17 June; Greece on 28 October 1940 and Yugoslavia in April 1941; Iran in August 1941. Even those that are spared are compelled to assist either the Allies or the Axis or both in financial and economic terms, such as Switzerland and Sweden. Others offer voluntary military assistance such as Portugal and Spain.

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