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mostlysignssomeportents · 23 days

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How to shatter the class solidarity of the ruling class

I'm touring my new, nationally bestselling novel The Bezzle! Catch me WEDNESDAY (Apr 11) at UCLA, then Chicago (Apr 17), Torino (Apr 21) Marin County (Apr 27), Winnipeg (May 2), Calgary (May 3), Vancouver (May 4), and beyond!

Audre Lorde counsels us that "The Master's Tools Will Never Dismantle the Master's House," while MLK said "the law cannot make a man love me, but it can restrain him from lynching me." Somewhere between replacing the system and using the system lies a pragmatic – if easily derailed – course.

Lorde is telling us that a rotten system can't be redeemed by using its own chosen reform mechanisms. King's telling us that unless we live, we can't fight – so anything within the system that makes it easier for your comrades to fight on can hasten the end of the system.

Take the problems of journalism. One old model of journalism funding involved wealthy newspaper families profiting handsomely by selling local appliance store owners the right to reach the townspeople who wanted to read sports-scores. These families expressed their patrician love of their town by peeling off some of those profits to pay reporters to sit through municipal council meetings or even travel overseas and get shot at.

In retrospect, this wasn't ever going to be a stable arrangement. It relied on both the inconstant generosity of newspaper barons and the absence of a superior way to show washing-machine ads to people who might want to buy washing machines. Neither of these were good long-term bets. Not only were newspaper barons easily distracted from their sense of patrician duty (especially when their own power was called into question), but there were lots of better ways to connect buyers and sellers lurking in potentia.

All of this was grossly exacerbated by tech monopolies. Tech barons aren't smarter or more evil than newspaper barons, but they have better tools, and so now they take 51 cents out of every ad dollar and 30 cents out of ever subscriber dollar and they refuse to deliver the news to users who explicitly requested it, unless the news company pays them a bribe to "boost" their posts:

https://www.eff.org/deeplinks/2023/04/saving-news-big-tech

The news is important, and people sign up to make, digest, and discuss the news for many non-economic reasons, which means that the news continues to struggle along, despite all the economic impediments and the vulture capitalists and tech monopolists who fight one another for which one will get to take the biggest bite out of the press. We've got outstanding nonprofit news outlets like Propublica, journalist-owned outlets like 404 Media, and crowdfunded reporters like Molly White (and winner-take-all outlets like the New York Times).

But as Hamilton Nolan points out, "that pot of money…is only large enough to produce a small fraction of the journalism that was being produced in past generations":

https://www.hamiltonnolan.com/p/what-will-replace-advertising-revenue

For Nolan, "public funding of journalism is the only way to fix this…If we accept that journalism is not just a business or a form of entertainment but a public good, then funding it with public money makes perfect sense":

https://www.hamiltonnolan.com/p/public-funding-of-journalism-is-the

Having grown up in Canada – under the CBC – and then lived for a quarter of my life in the UK – under the BBC – I am very enthusiastic about Nolan's solution. There are obvious problems with publicly funded journalism, like the politicization of news coverage:

https://www.theguardian.com/media/2023/jan/24/panel-approving-richard-sharp-as-bbc-chair-included-tory-party-donor

And the transformation of the funding into a cheap political football:

https://www.cbc.ca/news/politics/poilievre-defund-cbc-change-law-1.6810434

But the worst version of those problems is still better than the best version of the private-equity-funded model of news production.

But Nolan notes the emergence of a new form of hedge fund news, one that is awfully promising, and also terribly fraught: Hunterbrook Media, an investigative news outlet owned by short-sellers who pay journalists to research and publish damning reports on companies they hold a short position on:

https://hntrbrk.com/

For those of you who are blissfully distant from the machinations of the financial markets, "short selling" is a wager that a company's stock price will go down. A gambler who takes a short position on a company's stock can make a lot of money if the company stumbles or fails altogether (but if the company does well, the short can suffer literally unlimited losses).

Shorts have historically paid analysts to dig into companies and uncover the sins hidden on their balance-sheets, but as Matt Levine points out, journalists work for a fraction of the price of analysts and are at least as good at uncovering dirt as MBAs are:

https://www.bloomberg.com/opinion/articles/2024-04-02/a-hedge-fund-that-s-also-a-newspaper

What's more, shorts who discover dirt on a company still need to convince journalists to publicize their findings and trigger the sell-off that makes their short position pay off. Shorts who own a muckraking journalistic operation can skip this step: they are the journalists.

There's a way in which this is sheer genius. Well-funded shorts who don't care about the news per se can still be motivated into funding freely available, high-quality investigative journalism about corporate malfeasance (notoriously, one of the least attractive forms of journalism for advertisers). They can pay journalists top dollar – even bid against each other for the most talented journalists – and supply them with all the tools they need to ply their trade. A short won't ever try the kind of bullshit the owners of Vice pulled, paying themselves millions while their journalists lose access to Lexisnexis or the PACER database:

https://pluralistic.net/2024/02/24/anti-posse/#when-you-absolutely-positively-dont-give-a-solitary-single-fuck

The shorts whose journalists are best equipped stand to make the most money. What's not to like?

Well, the issue here is whether the ruling class's sense of solidarity is stronger than its greed. The wealthy have historically oscillated between real solidarity (think of the ultrawealthy lobbying to support bipartisan votes for tax cuts and bailouts) and "war of all against all" (as when wealthy colonizers dragged their countries into WWI after the supply of countries to steal ran out).

After all, the reason companies engage in the scams that shorts reveal is that they are profitable. "Behind every great fortune is a great crime," and that's just great. You don't win the game when you get into heaven, you win it when you get into the Forbes Rich List.

Take monopolies: investors like the upside of backing an upstart company that gobbles up some staid industry's margins – Amazon vs publishing, say, or Uber vs taxis. But while there's a lot of upside in that move, there's also a lot of risk: most companies that set out to "disrupt" an industry sink, taking their investors' capital down with them.

Contrast that with monopolies: backing a company that merges with its rivals and buys every small company that might someday grow large is a sure thing. Shriven of "wasteful competition," a company can lower quality, raise prices, capture its regulators, screw its workers and suppliers and laugh all the way to Davos. A big enough company can ignore the complaints of those workers, customers and regulators. They're not just too big to fail. They're not just too big to jail. They're too big to care:

https://pluralistic.net/2024/04/04/teach-me-how-to-shruggie/#kagi

Would-be monopolists are stuck in a high-stakes Prisoner's Dilemma. If they cooperate, they can screw over everyone else and get unimaginably rich. But if one party defects, they can raid the monopolist's margins, short its stock, and snitch to its regulators.

It's true that there's a clear incentive for hedge-fund managers to fund investigative journalism into other hedge-fund managers' portfolio companies. But it would be even more profitable for both of those hedgies to join forces and collude to screw the rest of us over. So long as they mistrust each other, we might see some benefit from that adversarial relationship. But the point of the 0.1% is that there aren't very many of them. The Aspen Institute can rent a hall that will hold an appreciable fraction of that crowd. They buy their private jets and bespoke suits and powdered rhino horn from the same exclusive sellers. Their kids go to the same elite schools. They know each other, and they have every opportunity to get drunk together at a charity ball or a society wedding and cook up a plan to join forces.

This is the problem at the core of "mechanism design" grounded in "rational self-interest." If you try to create a system where people do the right thing because they're selfish assholes, you normalize being a selfish asshole. Eventually, the selfish assholes form a cozy little League of Selfish Assholes and turn on the rest of us.

Appeals to morality don't work on unethical people, but appeals to immorality crowds out ethics. Take the ancient split between "free software" (software that is designed to maximize the freedom of the people who use it) and "open source software" (identical to free software, but promoted as a better way to make robust code through transparency and peer review).

Over the years, open source – an appeal to your own selfish need for better code – triumphed over free software, and its appeal to the ethics of a world of "software freedom." But it turns out that while the difference between "open" and "free" was once mere semantics, it's fully possible to decouple the two. Today, we have lots of "open source": you can see the code that Google, Microsoft, Apple and Facebook uses, and even contribute your labor to it for free. But you can't actually decide how the software you write works, because it all takes a loop through Google, Microsoft, Apple or Facebook's servers, and only those trillion-dollar tech monopolists have the software freedom to determine how those servers work:

https://pluralistic.net/2020/05/04/which-side-are-you-on/#tivoization-and-beyond

That's ruling class solidarity. The Big Tech firms have hidden a myriad of sins beneath their bafflegab and balance-sheets. These (as yet) undiscovered scams constitute a "bezzle," which JK Galbraith defined as "the magic interval when a confidence trickster knows he has the money he has appropriated but the victim does not yet understand that he has lost it."

The purpose of Hunterbrook is to discover and destroy bezzles, hastening the moment of realization that the wealth we all feel in a world of seemingly orderly technology is really an illusion. Hunterbrook certainly has its pick of bezzles to choose from, because we are living in a Golden Age of the Bezzle.

Which is why I titled my new novel The Bezzle. It's a tale of high-tech finance scams, starring my two-fisted forensic accountant Marty Hench, and in this volume, Hench is called upon to unwind a predatory prison-tech scam that victimizes the most vulnerable people in America – our army of prisoners – and their families:

https://us.macmillan.com/books/9781250865878/thebezzle

The scheme I fictionalize in The Bezzle is very real. Prison-tech monopolists like Securus and Viapath bribe prison officials to abolish calls, in-person visits, mail and parcels, then they supply prisoners with "free" tablets where they pay hugely inflated rates to receive mail, speak to their families, and access ebooks, distance education and other electronic media:

https://pluralistic.net/2024/04/02/captive-customers/#guillotine-watch

But a group of activists have cornered these high-tech predators, run them to ground and driven them to the brink of extinction, and they've done it using "the master's tools" – with appeals to regulators and the finance sector itself.

Writing for The Appeal, Dana Floberg and Morgan Duckett describe the campaign they waged with Worth Rises to bankrupt the prison-tech sector:

https://theappeal.org/securus-bankruptcy-prison-telecom-industry/

Here's the headline figure: Securus is $1.8 billion in debt, and it has eight months to find a financier or it will go bust. What's more, all the creditors it might reasonably approach have rejected its overtures, and its bonds have been downrated to junk status. It's a dead duck.

Even better is how this happened. Securus's debt problems started with its acquisition, a leveraged buyout by Platinum Equity, who borrowed heavily against the firm and then looted it with bogus "management fees" that meant that the debt continued to grow, despite Securus's $700m in annual revenue from America's prisoners. Platinum was just the last in a long line of PE companies that loaded up Securus with debt and merged it with its competitors, who were also mortgaged to make profits for other private equity funds.

For years, Securus and Platinum were able to service their debt and roll it over when it came due. But after Worth Rises got NYC to pass a law making jail calls free, creditors started to back away from Securus. It's one thing for Securus to charge $18 for a local call from a prison when it's splitting the money with the city jail system. But when that $18 needs to be paid by the city, they're going to demand much lower prices. To make things worse for Securus, prison reformers got similar laws passed in San Francisco and in Connecticut.

Securus tried to outrun its problems by gobbling up one of its major rivals, Icsolutions, but Worth Rises and its coalition convinced regulators at the FCC to block the merger. Securus abandoned the deal:

https://worthrises.org/blogpost/securusmerger

Then, Worth Rises targeted Platinum Equity, going after the pension funds and other investors whose capital Platinum used to keep Securus going. The massive negative press campaign led to eight-figure disinvestments:

https://www.latimes.com/business/story/2019-09-05/la-fi-tom-gores-securus-prison-phone-mass-incarceration

Now, Securus's debt became "distressed," trading at $0.47 on the dollar. A brief, covid-fueled reprieve gave Securus a temporary lifeline, as prisoners' families were barred from in-person visits and had to pay Securus's rates to talk to their incarcerated loved ones. But after lockdown, Securus's troubles picked up right where they left off.

They targeted Platinum's founder, Tom Gores, who papered over his bloody fortune by styling himself as a philanthropist and sports-team owner. After a campaign by Worth Rises and Color of Change, Gores was kicked off the Los Angeles County Museum of Art board. When Gores tried to flip Securus to a SPAC – the same scam Trump pulled with Truth Social – the negative publicity about Securus's unsound morals and financials killed the deal:

https://twitter.com/WorthRises/status/1578034977828384769

Meanwhile, more states and cities are making prisoners' communications free, further worsening Securus's finances:

https://pluralistic.net/2024/02/14/minnesota-nice/#shitty-technology-adoption-curve

Congress passed the Martha Wright-Reed Just and Reasonable Communications Act, giving the FCC the power to regulate the price of federal prisoners' communications. Securus's debt prices tumbled further:

https://www.govtrack.us/congress/bills/117/s1541

Securus's debts were coming due: it owes $1.3b in 2024, and hundreds of millions more in 2025. Platinum has promised a $400m cash infusion, but that didn't sway S&P Global, a bond-rating agency that re-rated Securus's bonds as "CCC" (compare with "AAA"). Moody's concurred. Now, Securus is stuck selling junk-bonds:

https://www.govtrack.us/congress/bills/117/s1541

The company's creditors have given Securus an eight-month runway to find a new lender before they force it into bankruptcy. The company's debt is trading at $0.08 on the dollar.

Securus's major competitor is Viapath (prison tech is a duopoly). Viapath is also debt-burdened and desperate, thanks to a parallel campaign by Worth Rises, and has tried all of Securus's tricks, and failed:

https://pestakeholder.org/news/american-securities-fails-to-sell-prison-telecom-company-viapath/

Viapath's debts are due next year, and if Securus tanks, no one in their right mind will give Viapath a dime. They're the walking dead.

Worth Rise's brilliant guerrilla warfare against prison-tech and its private equity backers are a master class in using the master's tools to dismantle the master's house. The finance sector isn't a friend of justice or working people, but sometimes it can be used tactically against financialization itself. To paraphrase MLK, "finance can't make a corporation love you, but it can stop a corporation from destroying you."

Yes, the ruling class finds solidarity at the most unexpected moments, and yes, it's easy for appeals to greed to institutionalize greediness. But whether it's funding unbezzling journalism through short selling, or freeing prisons by brandishing their cooked balance-sheets in the faces of bond-rating agencies, there's a lot of good we can do on the way to dismantling the system.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/04/08/money-talks/#bullshit-walks

Image: KMJ (modified) https://commons.wikimedia.org/wiki/File:Boerse_01_KMJ.jpg

CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0/deed.en

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turtleblogatlast · 3 months

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Leo frowns at his phone.

Or more specifically, at the test on his phone.

Around him, he hears the sound of his brothers tapping their own devices, much faster than he is. Looking up just makes Leo feel worse about his own progress - or lack-thereof.

Mikey’s the fastest, speeding through the test like nobody’s business. He’d been the one to make them all do this stupid test in the first place, so it makes sense that he’s having a blast.

Raph’s slower than Mikey is, but he’s still clearly answering the questions at a steady pace. Sometimes he looks unsure, but he powers through anyway.

Donnie often looks frustrated, which relieves Leo somewhat because at least someone is struggling like him. But that “struggle” isn’t nearly as big as his own, considering that Donnie is answering about as fast as Raph is.

Leo turns his gaze back down to his own test. He’s still near the beginning, he thinks.

He’d put the same answer for the past seven questions - the middle of the road answer, neither a “yes” or a “no.” Then, whenever he does come across one that is more one direction than the other, he second guesses himself and restarts the test!

Sure, there are a few he could definitely give a yes or a no to, but…never the “strongly agree” or “strongly disagree” that the test seemed to want from him.

He eyes his twin sitting nearby, the softshell absorbed in the test. Maybe Leo should copy what Donnie put for some of these…

“DONE!” Mikey’s shout makes Leo freeze in place just as he started to lean over.

“What?” Donnie squawks, “No way you’re already finished, you must’ve been cheating!”

“It’s a personality test, Dee!” Mikey stuck his tongue out, “You can’t cheat at those!”

…

Leo settles back into his seat.

Ignoring Donnie’s mutterings about how it was “just because it’s not an academic test” that he didn’t finish first, Raph smiles encouragingly at Mikey.

“Hey, good job! So what’d you get, Mike?”

Mikey looks back down at his test, reading aloud, “Says that I got the “Campaigner”!”

“What’s that mean?” Leo asks, his phone screen going dark.

“Apparently, I’m an “enthusiastic, creative, and sociable free-spirit”.” Mikey reads, smiling at them, “You think it fits?”

“Oh, to a T, bro!” Leo laughs, giving Mikey a thumbs up, making Mikey’s smile grow larger.

Inside, Leo was feeling a lot more mixed about this. He has no idea how Mikey knew himself so well. Maybe Donnie was right and Mikey did cheat, because how could he answer those questions so easily?

Leo’s phone burns in his hand. He keeps it locked.

“Wow, that really is you.” Raph says, his eyes flitting back and forth between his own test and Mikey, “Do you think it fits?”

“I guess? It’s fun to see at least!” Mikey shrugs with a grin.

“Hold on, I think…” Raph makes a noise of satisfaction, “Okay, done!”

“Sigh, now I’m relegated to the straggler group.” Donnie grumbles, his thumbs moving faster as he tries rushing through the questions.

“Ooh, what’d you get Raph?” Mikey asks, practically bouncing in curiosity.

“Says, uh…I got something called the “Consul”?” He squints his eyes to read more, “Uh, “caring, social, and community-minded.””

“Sounds about right to me.” Leo nods. Can’t be more “community-minded” than being a hero.

“Yeah, no one’s more caring than you, Raphie!” Mikey says, moving to lean across Raph’s shell.

“You do put the community in mind, that’s for sure.” Donnie states, not looking up.

Raph chuckles, a bit embarrassed, “Aw, thanks. It’s just some test, but it feels kinda good to hear that.”

Just a test. Right.

Leo unlocks his screen.

The test stares back at him.

Right. Okay. He can do this. He can.

The screen ends up going dark again.

Frustration builds up in Leo. Was he even halfway done with the test? At this rate, soon even Donnie will-

“FINISHED.”

Leo unlocks his phone.

“What’d you get, DonTon?” Leo asks as his thumb taps the top right of the screen.

Donnie puffs up proudly, a self sure grin on his face, “I got the result “Logician” which states that I, obviously, am an “innovative inventor with a thirst for knowledge.” Truly could not have described me better, if I do say so myself.”

“It is pretty accurate.” Raph agrees with a nod, “Even calls you an inventor, so extra accurate.”

“Super accurate.” Mikey jumps in, eyes shining.

“Yes, yes, almost like reading my own character synopsis.” Donnie’s grin had not dwindled since the word “innovative” had left his mouth.

Leo just nods along, eyes on his own screen as he skims the words. “Yeah, kinda creepy how close it got. Could have called you a nerd for extra accuracy, though.”

Donnie turns to him, eyes narrowing, “Have you even finished your test? I can think of a few words that’d describe you fairly well.”

“Test-y, huh?”

Before Donnie can strangle Leo, Raph cuts in.

“Ok, ok, calm it down, guys.” He rolls his eyes before turning to Leo. “But really, you’re not done yet?”

“Leo’s taking this self reflection seriously.” Mikey sports a faux intellectual expression as he gives a jokingly serious nod. “Maybe we all should’ve taken our time.”

“Says the one who sped through the whole thing in a record time.” Donnie mutters.

Leo waves them all off, “Nah, I finished it ages ago.”

He grins when Donnie immediately shoots him a suspicious glare. “Oh, you did, did you? Then what could you have possibly gotten, Nardo?”

“I’m glad you asked!” Leo clears his throat, “Neon Leon just so happens to be an “Entertainer.””

“Ah. That confirms it. This test is meaningless.” Donnie drones.

“Hey-“

“What’s an Entertainer like?” Mikey asks with a tilt of his head, still hanging off of Raph’s shell.

“Glad you asked, Miguel!” Leo exclaims, “It says that “life is never boring” around yours truly~”

He emphasizes this “result” of his by waving his phone with said “result” on screen.

It’s just an image he found of his chosen personality result, but they don’t need to know that.

Raph nods slowly, “Well, I guess that’s true…”

“”Never boring” is one way to put it.” Donnie hums.

“You are pretty fun, Leo!” Mikey says emphatically, because he’s great like that.

“Thank you, thank you, life of the party, right here.” Leo grins, pointing both thumbs at himself.

He’s careful not to go too overboard with it, or else it might tip someone off.

Not that it…really matters. It’s just a test. Like Raph said.

As the topic around him shifts to something else, jumping away from this brief activity as fast as any other among them, Leo finds himself unlocking his phone and pulling up the test again.

Unanswered questions stare at him. He knows what answers Lou Jitsu would pick. He knows what answers Jupiter Jim would pick. Hell, he knows exactly what answers his brothers would pick.

He doesn’t know what answers Leonardo would pick.

Leo stares at the test for a second longer, before he exits the site and throws himself into the conversation happening around him.

It’s just a stupid test, nothing to worry about.

Just a test…

#rottmnt #rise of the teenage mutant ninja turtles #rottmnt leo #rottmnt headcanons #rise leo #could not ignore this idea that hit my brain haha #if you disagree with me on what personality types I gave the boys that’s fine tbh #picked mbti since it was the first one I thought of but again it like most of these tests isn’t super worth putting stock into #these tests are kinda dumb anyway but they’re fun to take #for some #anyway I love thinking about Leo struggling with his sense of identity #and in turn struggling with what is a persona and what is HIM #how much is a mask how much is built from taking traits from others how much is real how much is fake #even he doesn’t know #protagonist is probably a good choice for leo but I’m also tied to him secretly being the introverted type as well so #bit more of an ambivert maybe #he’s got aspects of a lot of them hence the difficulty answering questions #well most of his difficulty comes from an uncertainty of who he really is #again what is him and what is his mask #or masks #what even is his true self if his self is someone he’s never bothered to meet #a lot of the little details of his personality - the parts of him that we see peek out throughout the series and often on his own -#- they align with personality types that you would never think of when looking at him and his masks at face value #that’s not to say it’s all masks - he’s a goofy guy at his core - but he’s more than he lets on and we’re made privy to that in subtle ways #though fr protagonist is prob Leo’s most likely result

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