Prioritize The Populism

Out of nowhere, the Obama Administration and its federal agencies have started to crack down on speculation and monopolies, while improving individual safety. These populist positions deserve pride of place from the White House; they should talk a lot more about them.

Hold a press event about stopping oil speculation:

In a big departure from the hands-off approach to market regulation of the last two decades, the chairman of the Commodity Futures Trading Commission, Gary Gensler, said his agency would consider new limits on the volume of energy futures contracts that purely financial investors would be allowed to hold.

The agency also announced that it would pull back part of the veil on the oil and gas markets, publishing more detailed information about the aggregate activity of hedge funds and traders who arbitrage between domestic and foreign energy prices.

....Oil prices have swung wildly in the last year, hitting about $145 a barrel last summer, then plunging to $33 in December before rising to about $70.

....A growing number of critics have blamed some of the extreme volatility on the role of purely financial investors — those who are simply betting on the direction of energy prices, as opposed to those who actually use such products, like airlines....Non-commercial traders accounted for almost a fifth of the activity in several major oil and gas products for the week that ended June 30, according to data compiled by the commodities agency.

Matt Taibbi, in his great story on Goldman Sachs, writes about how last year, "a barrel of oil was traded 27 times, on average, before it was actually delivered and consumed." That's just unconscionable, and the CFTC has a role to play in dialing that back.

Furthermore, the President should deliver a live speech on telecom monopolies:

The U.S. Justice Department has begun looking at big telecom companies to try to determine if they have abused their market power, the Wall Street Journal reported in its online edition Monday.

The journal, which cited people familiar with the matter, said that the Antitrust Division's review was in its very early stages and was not official.

Lawmakers have recently raised questions about whether large wireless carriers were hurting smaller rivals by entering exclusive agreements with the makers of popular phones.

I think they could reel in a lot of people by telling them they shouldn't have to change carriers to use an iPhone.

Finally, rather than a fact sheet and a webcast, how about a prime-time special on food safety?

The Food and Drug Administration (FDA) is issuing a final rule to control Salmonella contamination of eggs during production. This rule is estimated to reduce the number of foodborne illnesses associated with consumption of raw or undercooked contaminated shell eggs by approximately 60%, or 79,000 illnesses every year, and will generate annual savings of over $1 billion [...]

Stepped Up Enforcement in Beef Facilities: FSIS is issuing improved instructions to its workforce on how to verify that establishments handling beef are acting to reduce the presence of E. coli. Also, FSIS is increasing its sampling to find this pathogen, focusing largely on the components that go into making ground beef.

Preventing Contamination of Leafy Greens, Melons, and Tomatoes: By the end of the month, FDA will issue commodity-specific draft guidance on preventive controls that industry can implement to reduce the risk of microbial contamination in the production and distribution of tomatoes, melons, and leafy greens. These proposals will help the Federal government establish a minimum standard for production across the country. Over the next two years, FDA will seek public comment and work to require adoption of these approaches through regulation [...]

Building a National Traceback and Response System: A system that permits rapid traceback to the source of foodborne illness will protect consumers and help industry recover faster. Yet despite the dedicated efforts of food safety officials across the country, our current capacity to traceback the sources of illness suffers from serious limitations [...]

Improving Organization of Federal Food Safety Responsibilities: Building a more effective safety system requires federal agencies to improve management of their food safety responsibilities and coordinate more effectively with each other.

I hear that the President's approval rating is sinking in Ohio. They are experiencing a terrible economy like the rest of the country, but they also see bank bailouts without the same attention paid to the auto industry, and think they're getting the shaft. Maybe if they knew that their government was trying to stop oil speculation to lower the price of their gas, stop the phone companies from ripping them off, and stop food manufacturers from making them sick, they'd have a little more comfort that their President is on their side.

Pretty Darn Cool

Obama's campaign created an iPhone app. That's very leading edge. Not only that, but as an iPod Touch user, I really appreciate that they modified it for that device as well. We get the short end of the stick on apps.

Features

Call Friends: A great volunteering tool that lets you make a difference any time you want by talking to people you already know. Your contacts are prioritized by key battleground states, and you can make calls and organize results all in one place.
Call Stats: See nationwide Obama ‘08 Call Friends totals and find out how your call totals compare to leading callers.
Get Involved: Do more. Find and contact your local Obama for America HQ.
Receive Updates: Receive the latest news and announcements via text messages or email.
News: Browse complete coverage of national and local campaign news.
Local Events: Find local events, share by email and get maps and directions.
Media: Browse videos and photos from the campaign
Issues: Get clear facts about Barack Obama and Joe Biden’s plan for essential issues facing Americans.

You can download it here.

...I should also note here that some bloggers are doing a phonebanking party on Sunday. Check it out if you want, and get involved.

Ma Bell Returns

When the iPhone came out I said I'll wait a year or so until they release a new version that has better features and is substantially cheaper, and maybe, just maybe, is available with any cellular carrier instead of just AT&T. Sure enough, they released one this week that has expanded features, is indeed cheaper (although the more expensive service contract cancels out almost entirely the cost of the phone), but is still locked to AT&T. And according to Tim Wu, that's not changing.

If my iPhone were a motorcycle, she'd be a chopper. I'm the owner of an unlocked, jail-broken iPhone 1.3 that runs on the T-Mobile network, fortified with third-party apps (like Tap Tap Revolution), adorned with Death Star wall paper, and running a natty customized interface named "Manhattan." Sure, not everything works perfectly (recently, the clock went off by an hour or so, for no apparent reason). But that's part of the fun of iPhone-modding, a vibrant scene that resembles the Apple II culture of the 1980s.

Unfortunately, for me at least, it may all be coming to an end. After Monday's iPhone 2.0 debut, it's just a matter of time before I trade in my chopper phone for Apple's new 3G phone—and swallow that AT&T contract.

That may sound like trading a dune buggy for a Toyota Corolla. But like most such decisions, there is a depressing inevitability to the whole thing. As an ever-uncooler Steve Jobs (clad in atrocious jeans) made clear on Monday, the new iPhone pounds the hell out of the old one. Apple has rigged the thing with a better battery, GPS capabilities, and, most importantly, download speeds faster than the rate at which a man passes a kidney stone (at least if you live in a city, as David Pogue points out). I'm nostalgic but I'm not stupid—the new phone will be too handy not to have. But as Jobs neglected to mention, getting your hands on a new iPhone will mean signing, at the moment of purchase, a two-year AT&T contract. Tough news for the free iPhone movement.

The fact that someone like me is switching to AT&T is a sign of the times in the telephone world. The wireless industry was once and is still sometimes called a "poster child for competition." That kind of talk needs to end. Today, the industry is more like an old divorced couple; the bickering spouses are AT&T and Verizon, the two halves of the old Bell empire. (To its credit, the Bell company, in internal memos, proposed a wireless phone in 1915 and then spent 70 or so years deciding how to deploy it without hurting its wired-phone business.) While you can't blame this on the iPhone, nearly every non-Bell phone company is, in the long tradition of such firms, dying or being purchased. Sprint Nextel lost an astonishing $29.5 billion in a single quarter last year—a loss of nearly double the annual revenue of Google. Alltel, one of the last independents, is being bought by Verizon. The exception is T-Mobile, which, while healthy, simply doesn't have the spectrum to play with the bigs. By the end of this year, we may find that the wireless world, in industry structure at least, will be pretty close to where it was at the beginning of the 1990s, before "deregulation."

That's quite a shame. Wireless freedom is connected to the net neutrality movement, and the apparent loss of it is quite a shame. It's like if Zenith and RCA televisions would only work on DirecTV. I don't know how to pry open this monopolistic practice short of Congressional action.

Shorter Steve Jobs

Hey, sorry about that. Buy more of my crap!

I'm an Apple enthusiast, but the Cult of Jobs kind of creeps me out. And this is just insulting. $100 in store credit?

You're All On Pins And Needles Waiting To Hear About My New Ipod

So I left my iPod on a plane about a month ago, and I was about to replace it when I got wind that a new product line would be coming out today. As you may know, they released what amounts to an iPhone without the phone part, with a touchscreen, wi-fi, 16 gigs of storage for audio, video and photos, etc., for about $200 less than what they were selling the iPhone for. Thinking this is a great deal, I jumped on it, only to find out minutes later that they also cut the iPhone price by $200, which is just beyond bizarre. Apparently, people at the product launch thought so too:

The decision to cut the price of its most expensive iPhone to $399 from $599 - and phase out an entry-level iPhone that had sold for $499 - was clearly a shocker. Barron's tech writer Eric Savitz, who was in SF for Apple's product announcement, said "this was a move that no one in the room expected; people were truly stunned; and I mean jaw-dropping, mouths agape, stopped in their tracks stunned. The news almost erased all the good feeling in the room from the day’s various product announcements, and replaced it with a sense of shock. You’d think a dementor had flown into the room." Why all the fuss? Well, how would you feel if you had spent hours, even days, waiting in line for a $599 iPhone just two months ago - and now find that it's being priced at $399?

Apparently the stock dropped on this news too. If I had an iPhone I'd be pissed. From what I heard, the phone was the worst thing about the iPhone; the plan is locked in to AT&T, the service is scattershot at best, and the plans are costly. Getting all of the features I wanted without having to deal with the phone is like the best of all possible worlds, and I kicked in for the extra memory to get 16 gigs (I only used about 10-12 gigs of my old 20Gb iPod; seriously, does anyone even KNOW 40,000 songs for the 160Gb model they released today?).

Maybe if they opened up the device to competition from other cellular networks, it wouldn't be seen as too expensive considering it doesn't work well. Making the device open would allow more people to keep their service and transfer it over, and would make the phone more attractive to those who like their plans. But Apple was stubborn, fell in line with the typical way things are done in the cell phone industry when they had the juice to be bold, and now they're paying the price in a big way.

Technology is like information; it wants to be free.

UPDATE: This is not the publicity any company desires:

Steve Jobs' casual announcement today that Apple (AAPL) was cutting the price of the 8GB iPhone by $200 is not going over well among customers who paid $599 for theirs. In fact, it has sparked an outright rebellion in the Apple support forums, where discussion threads filled with hate mail are piling up faster than Apple can delete them.

"The more the day goes by, the more furious I become," writes VSiskos in "1 Million People Slapped In The Face Today," one of the forums still standing.

"I CANNOT BELIEVE THIS!" adds graphicalliber425. " Somewhere in my heart I'm hoping, Apple's going to offer all of us an extended return policy, or a brand new iPod nano right?"

Under's Apple's standard return policy, customers who bought a product within 14 days of a price reduction can ask to be reimbursed the difference, and some Apple stores have reportedly done the same for iPhones purchased earlier than that. But those random acts of flexibility seem only to have further inflamed the wounded feelings of those who weren't extended the same courtesy.

"They told me to shove it," wrote tulanejosjh. "14 days or nothing."

"Same here," added jmolina1313. "The guy treated me like I was on drugs!"

Apple had to know that people would be furious about this. They obviously calculated that they would rather take that hit (and the loss of perhaps fifty million dollars in revenue, if a just a quarter of iPhone purchasers turn theirs in) than try to sell a lame product. They must be cursing AT&T something fierce right now.

Free the iPhone

I had the opportunity to play around with a friend's iPhone, and I have to say, it's pretty awesome. It's also the future of digital communication, with multiple devices merged into one box. Therefore, it is absolutely ridiculous that AT&T has an exclusive license to deliver their wireless service through it. It's like Comcast having an exclusive license for a Sony flat-panel TV. And much to my surprise, Congress has actually spoken up about this.

Bipartisan members of Congress spoke out today to free the iPhone and other next generation hand-held computers from the grip of phone incumbents like AT&T and Verizon.

During the hearing of the House Subcommittee on Telecommunications and the Internet, representatives from both sides of the aisle called for a more open wireless system where new innovations aren't held hostage to the competition-killing carriers that control the network [...]

In what's been dubbed the "iPhone hearing" Chairman Ed Markey (D-Mass.) and "Chip" Pickering (R-Miss.) called for a different system - where wholesalers could compete and new applications and devices could be connected regardless of carrier.

"The iPhone highlights both the promise and the problems with the wireless industry today," Rep. Markey said holding up before other members his newly acquired iPhone. "On the one hand, it demonstrates the sheer brilliance and wizardry of wireless engineering. On the other hand, the advent of the iPhone raises questions about the fact that a consumer can't use this phone with other wireless carriers."

That Chip Pickering, a conservative Republican from Mississippi, jumped aboard this train is astonishing. This is the beginnings of making the telecom market much more open and free, to increase competition and to move this country onto a much better footing with regard to connectivity. We are one of the worst developed nations in broadband access and wireless connectivity in the world, and it's because we have this old guard system of delivering access that rewards big business at the expense of consumers and cripples innovation. The choice is between the telecom's wishes of putting gates up on the Internet where you only get proper access (as a consumer or as a Web content developer) if you pay more money; or the consumer's deep wish that the Internet and wireless networks are neutral, open and free.

Markey and Pickering spoke about the current dilemma in America's wireless system. The iPhone is shackled to AT&T and won't work on any other network. The reason? We have allowed carriers to exert almost complete gatekeeper control over all devices, services and content in the wireless sector.

This has left the U.S. generations behind other nations, a failure that prompted New York Times blogger David Pogue to call American carriers "calcified, conservative and way behind their European and Asian counterparts."

Here's Ben Scott from FreePress on the iPhone hearing (the rumor I heard is that the hearing came about because John Dingell got his iPhone and realized he was locked in to AT&T and he got super-pissed):



FreePress has also set up Free the iPhone, a website with action items to change this horrible, weird policy that only exists in the wireless market and not with any other consumer electronic device. You can sign the petition.

This is just one part of a fight over net neutrality and who controls communications in America in the 21st century. It's incredibly important.

No I'm Not In This Line

The scarcity of my posting today has nothing to do with this line of people outside a Cingular store in the San Fernando Valley waiting for a certain "best technology product in the history of man." Actually, I won't get an iPhone on principle because they're not allowing it beyond one cell service carrier, which happens to be the worst carrier for connectivity. Screw that noise.

Actually, I've just been on deadline.

What little I have heard today is that British police stopped a car bomb from exploding in London today. Once again, local law enforcement proves itself to be the best defense against crime, and that most of these free-lance would-be assassins have no basic understanding of science necessary to carry off a bombing attack that would do any kind of damage.

You know what you call a vehicle with 50 gallons of gas? A Cadillac Escalade. The media meltdown over this incident is simply shameful.

For starters, gasoline is not a high explosive. If we were talking 50 pounds of Semtex or the Al Qaeda standby, TATP, I would be impressed. Those are real high explosives with a detonation rate in excess of 20,000 feet per second. Gasoline can explode (just ask former owners of a Ford Pinto) but it is first and foremost an incendiary. If the initial reports are true, the clown driving the Mercedes was a rank amateur when it comes to constructing an Improvised Explosive Device aka IED. Unlike a Hollywood flick the 50 gallons of gas would not have shredded the Mercedes into lethal chunks of flying shrapenal.

As for the use of closed-circuit television, ubiquitous in Britain, to try and find the failed bomber (who could be IRA or a right-wing nut, for all we know), let's go ahead and try such a nanny-state scenario in the US, I'm sure those libertarians on the right will love being snooped upon at every waking moment. Heck, the Glenn Reynoldses of the world can't even stand traffic cameras. So watch the hypocrisy dance if the government decides to install a Big Brother-type system in the name of fighting terra terra terra.

Anyway, car bombs don't kill people, people kill people, right?