You are here
Submitted by Scott Cleland on Wed, 2011-01-26 10:47
Clearly the FCC's preemptive bans, restrictions and economic/price regulation of competitive broadband providers based on scant and weak evidence of any real problem to solve, obviously place "an unnecessary burden on business" and the Administration should "fix them."
As I explained in my previous detailed post: "Why FCC's Net Regs Need Administration/Congressional Regulatory Review," the FCC's Open Internet order violates the President's pledge for regulations to:
Submitted by Scott Cleland on Mon, 2011-01-03 12:02
To promote "America's free market," President Obama today ordered a government-wide review of regulations that "make our economy less competitive," in order to take us "toward a 21st century regulatory system."
Here is the case for why the FCC's December Open Internet order deserves to be atop of the Administration's regulations to review for abolition.
First, the FCC's new Internet regulations violate the President's goal of a "21st century regulatory system" by applying "outdated" 19th century common carrier regulatory thinking and approaches to the previously un-regulated, and flourishing 21st century Internet. (Para 68)
Second, the FCC rules violate the President's goal of avoiding "excessive, inconsistent, and redundant regulation."
Submitted by Scott Cleland on Thu, 2010-10-21 17:38
We learned today that Google has the lowest foreign tax rate of the top five U.S. tech companies, an eyebrow-raising 2.4%, and that Google "cut its taxes by $3.1b in the last three years using a technique that moves most of its foreign profits through Ireland and the Netherlands to Bermuda," per an outstanding investigative expose by Jesse Drucker of Bloomberg.
This exceptional tax dodging feat, while reportedly technically legal, nonetheless raises some important questions that no one has yet asked Google.
Submitted by Scott Cleland on Wed, 2010-10-13 11:36
Google announced it is working on an economy-wide Google Price Index, but has not decided whether to make it public, per Google Chief Economist, Hal Varian, who spoke at the National Association of Business Economists conference this week.
I. Insider Trading
In March, Google CEO Eric Schmidt said: "One day we had a conversation where we figured out we could just try and predict the stock market... and then we decided it was illegal. So we stopped doing that."
Now any hedge fund (or market regulator not born yesterday) understands that if Google is actively working on a Google Price Index, Google has not stopped trying to use its uniquely comprehensive and timely, repository of sensitive market information to predict information highly useful to predicting the stock market.
Submitted by Scott Cleland on Mon, 2010-10-04 16:48
The SEC/CFTC report on the May 6th "Flash Crash" helps confirm that automated index trading technology was a contributing cause of the 2008 Financial Crisis and why recent financial reforms are not enough to address the ongoing destructive systemic vulnerability that automated index trading technology increasingly poses for financial markets going forward.
Submitted by Scott Cleland on Sun, 2010-09-12 21:29
The link is here to: "Googleopoly VI -- How Google is Monopolizing Consumer Internet Media and Threatening a Price Deflationary Spiral and Major Job Losses in a Trillion Dollar Sector" -- It is a 41 page PowerPoint presentation with 18 pages of pictorial analysis.
Below is the Executive Summary: (The PDF link is here.)
Googleopoly VI – Seeing the Big Picture: How Google is Monopolizing Consumer Internet Media
And Threatening a Price Deflationary Spiral & Major Job Losses in a $Trillion Sector
By Scott Cleland* President of Precursor LLC, September 13, 2010
Submitted by Scott Cleland on Sun, 2010-09-12 20:57
For Immediate Release -- September 13, 2010
Contact: Scott Cleland: 703-217-2407
First-Ever Study of Google’s Impact on Internet, Economy, Pricing & Jobs
How Googleopoly Threatens Economic Recovery & Jobs in 20+ Industries
Google Increasingly is the Internet for Most Consumers
MCLEAN, Va. – Today Precursor LLC released a first-of-its-kind research study on the impact of the largest and most powerful Internet company, Google Inc., on the Internet, economy, pricing and jobs. Google Inc. is expanding beyond its search monopoly to dominate other parts of the Internet at such an alarming rate that Google Inc. increasingly is the Internet for most consumers.
Submitted by Scott Cleland on Thu, 2010-01-28 15:51
If Congress and the Administration truly are focused on lowering unemployment and creating jobs, one of the easiest things they can do is tell the FCC to not kill potentially tens of thousands of jobs by preemptively regulating broadband Internet access to address a non-existent problem.
Kudos to the American Consumer Institute for an excellent study on the job-killing impact of a net neutrality industrial policy which would effectively chose competitive broadband companies as job losers and much smaller and less job-intensive netopolies as winners. (See summary of study here.)
It is amazing that with one hand, the FCC is working on a National Broadband Plan to allegedly help the nation advance economically, while its other hand is totally working at cross-purposes economically -- pushing proposed net neutrality regulations that would kill jobs.
We will learn in the coming weeks/months whether the FCC appreciates the real world around them, a fragile economy, persistent high unemployment and underemployment, and less investment, or whether they operate in a bubble imagining that their actions can only have positive effects on the economy and not negative ones.
We also will see if the FCC cares about the economy, jobs, and unemployment, or if they view themselves as independent of, and shielded from such real world concerns.
Submitted by Scott Cleland on Thu, 2010-01-21 16:03
To discern the real “root” causes of the financial crisis of 2008, one must probe beneath the surface and examine the health of the “root system” of our capital markets “forest.” The roots of the capital markets forest are sound economics; the natural market function of automatically equilibrating supply and demand and risk and reward, that is commonly appreciated as Adam’s Smith’s “invisible hand.” We generally assume that the natural market strength of the capital market forest’s root system ensures that all the trees are not in danger of being blown over in the crisis of a storm.
In the fall of 2008, we all were shocked to learn that the root system of our capital markets, that we had always assumed was healthy and strong, was actually frighteningly weak and brittle requiring the slapdash reinforcement of multi-trillion dollar emergency scaffolding of whatever material was close at hand, a TARP, bailout lifelines, capital sandbags, etc. -- to buttress the main market “trees” from toppling over, trees that the Government judged to big to be allowed to fall.
Submitted by Scott Cleland on Tue, 2009-09-08 10:27
How could American taxpayers get stuck with a multi-trillion dollar tab that they weren’t even aware that they were running up? How could that huge tab still be allowed to run up unchecked today? For the Financial Crisis Inquiry Commission, the sad answer is one of the biggest root causes of last fall’s devastating financial crisis and one of the biggest continuing systemic risks to the financial system and the economic recovery.
A decade ago, in what may prove to be the most expensive bipartisan legislative mistake in U.S. history, a bipartisan policy became law that effectively ensured that no Federal regulator had oversight or enforcement jurisdiction over derivative financial instruments. The Commodity Futures Modernization Act of 2000 (CFMA) created “legal certainty for excluded derivative transactions.” That law allowed a shadow derivative overlay system to be built literally on top of the public financial system, with none of the inherent accountability of the underlying financial system. In other words, a deliberate bipartisan U.S. government policy change a decade ago unwittingly created an unaccountable “black hole” market that sucked enormous value out of public markets, (Bear Stearns, Lehman, AIG, Fannie, Freddie, securitized sub-prime mortgages, etc.) while laundering the risk to the U.S. taxpayer.