Antiusurpation and the road to disenshittification
THIS WEEKEND (November 8-10), I'll be in TUCSON, AZ: I'm the GUEST OF HONOR at the TUSCON SCIENCE FICTION CONVENTION.
Nineties kids had a good reason to be excited about the internet's promise of disintermediation: the gatekeepers who controlled our access to culture, politics, and opportunity were crooked as hell, and besides, they sucked.
For a second there, we really did get a lot of disintermediation, which created a big, weird, diverse pluralistic space for all kinds of voices, ideas, identities, hobbies, businesses and movements. Lots of these were either deeply objectionable or really stupid, or both, but there was also so much cool stuff on the old, good internet.
Then, after about ten seconds of sheer joy, we got all-new gatekeepers, who were at least as bad, and even more powerful, than the old ones. The net became Tom Eastman's "Five giant websites, each filled with screenshots of the other four." Culture, politics, finance, news, and especially power have been gathered into the hands of unaccountable, greedy, and often cruel intermediaries.
Oh, also, we had an election.
This isn't an election post. I have many thoughts about the election, but they're still these big, unformed blobs of anger, fear and sorrow. Experience teaches me that the only way to get past this is to just let all that bad stuff sit for a while and offgas its most noxious compounds, so that I can handle it safely and figure out what to do with it.
While I wait that out, I'm just getting the job done. Chop wood, carry water. I've got a book to write, Enshittification, for Farar, Straus, Giroux's MCD Books, and it's very nearly done:
Compartmentalizing my anxieties and plowing that energy into productive work isn't necessarily the healthiest coping strategy, but it's not the worst, either. It's how I wrote nine books during the covid lockdowns.
And sometimes, when you're not staring directly at something, you get past the tunnel vision that makes it impossible to see its edges, fracture lines, and weak points.
So I'm working on the book. It's a book about platforms, because enshittification is a phenomenon that is most visible and toxic on platforms. Platforms are intermediaries, who connect buyers and sellers, creators and audiences, workers and employers, politicians and voters, activists and crowds, as well as families, communities, and would-be romantic partners.
There's a reason we keep reinventing these intermediaries: they're useful. Like, it's technically possible for a writer to also be their own editor, printer, distributor, promoter and sales-force:
But without middlemen, those are the only writers we'll get. The set of all writers who have something to say that I want to read is much larger than the set of all writers who are capable of running their own publishing operation.
The problem isn't middlemen: the problem is powerful middlemen. When an intermediary gets powerful enough to usurp the relationship between the parties on either side of the transaction, everything turns to shit:
A dating service that faces pressure from competition, regulation, interoperability and a committed workforce will try as hard as it can to help you find Your Person. A dating service that buys up all its competitors, cows its workforce, captures its regulators and harnesses IP law to block interoperators will redesign its service so that you keep paying forever, and never find love:
Multiply this a millionfold, in every sector of our complex, high-tech world where we necessarily rely on skilled intermediaries to handle technical aspects of our lives that we can't – or shouldn't – manage ourselves. That world is beholden to predators who screw us and screw us and screw us, jacking up our rents:
(Maybe this is a post about the election after all?)
The difference between a helpmeet and a parasite is power. If we want to enjoy the benefits of intermediaries without the risks, we need policies that keep middlemen weak. That's the opposite of the system we have now.
Take interoperability and IP law. Interoperability (basically, plugging new things into existing things) is a really powerful check against powerful middlemen. If you rely on an ad-exchange to fund your newsgathering and they start ripping you off, then an interoperable system that lets you use a different exchange will not only end the rip off – it'll make it less likely to happen in the first place because the ad-tech platform will be afraid of losing your business:
Interoperability means that when Amazon rips off audiobook authors to the tune of $100m, those authors can pull their books from Amazon and sell them elsewhere and know that their listeners can move their libraries over to a different app:
But interoperability has been in retreat for 40 years, as IP law has expanded to criminalize otherwise normal activities, so that middlemen can use IP rights to protect themselves from their end-users and business customers:
https://locusmag.com/2020/09/cory-doctorow-ip/
That's what I mean when I say that "IP" is "any law that lets a business reach beyond its own walls and control the actions of its customers, competitors and critics."
For example, there's a pernicious law 1998 US law that I write about all the time, Section 1201 of the Digital Millennium Copyright Act, the "anticircumvention law." This is a law that felonizes tampering with copyright locks, even if you are the creator of the undelying work.
So Amazon – the owner of the monopoly audiobook platform Audible – puts a mandatory copyright lock around every audiobook they sell. I, as an author who writes, finances and narrates the audiobook, can't provide you, my customer, with a tool to remove that lock. If I do so, I face criminal sanctions: a five year prison sentence and a $500,000 fine for a first offense:
In other words: if I let you take my own copyrighted work out of Amazon's app, I commit a felony, with penalties that are far stiffer than the penalties you would face if you were to simply pirate that audiobook. The penalties for you shoplifting the audiobook on CD at a truck-stop are lower than the penalties the author and publisher of the book would face if they simply gave you a tool to de-Amazon the file. Indeed, even if you hijacked the truck that delivered the CDs, you'd probably be looking at a shorter sentence.
This is a law that is purpose-built to encourage intermediaries to usurp the relationship between buyers and sellers, creators and audiences. It's a charter for parasitism and predation.
But as bad as that is, there's another aspect of DMCA 1201 that's even worse: the exemptions process.
You might have read recently about the Copyright Office "freeing the McFlurry" by granting a DMCA 1201 exemption for companies that want to reverse-engineer the error-codes from McDonald's finicky, unreliable frozen custard machines:
Under DMCA 1201, the Copyright Office hears petitions for these exemptions every three years. If they judge that anticircumvention law is interfering with some legitimate activity, the statute empowers them to grant an exemption.
When the DMCA passed in 1998 (and when the US Trade Rep pressured other world governments into passing nearly identical laws in the decades that followed), this exemptions process was billed as a "pressure valve" that would prevent abuses of anticircumvention law.
But this was a cynical trick. The way the law is structured, the Copyright Office can only grant "use" exemptions, but not "tools" exemptions. So if you are granted the right to move Audible audiobooks into a third-party app, you are personally required to figure out how to do that. You have to dump the machine code of the Audible app, decompile it, scan it for vulnerabilities, and bootstrap your own jailbreaking program to take Audible wrapper off the file.
No one is allowed to help you with this. You aren't allowed to discuss any of this publicly, or share a tool that you make with anyone else. Doing any of this is a potential felony.
In other words, DMCA 1201 gives intermediaries power over you, but bans you from asking an intermediary to help you escape another abusive middleman.
This is the exact opposite of how intermediary law should work. We should have rules that ban intermediaries from exercising undue power over the parties they serve, and we should have rules empowering intermediaries to erode the advantage of powerful intermediaries.
The fact that the Copyright Office grants you an exemption to anticircumvention law means nothing unless you can delegate that right to an intermediary who can exercise it on your behalf.
A world without publishing intermediaries is one in which the only writers who thrive are the ones capable of being publishers, too, and that's a tiny fraction of all the writers with something to say.
A world without interoperability intermediaries is one in which the only platform users who thrive are also skilled reverse-engineering ninja hackers – and that's an infinitesimal fraction of the platform users who would benefit from interoperabilty.
Let this be your north star in evaluating platform regulation proposals. Platform regulation should weaken intermediaries' powers over their users, and strengthen their power over other middlemen.
Put in this light, it's easy to see why the ill-informed calls to abolish Section 230 of the Communications Decency Act (which makes platform users, not platforms, responsible for most unlawful speech) are so misguided:
If we require platforms to surveil all user speech and block anything that might violate any law, we give the largest, most powerful platforms a permanent advantage over smaller, better platforms, run by co-ops, hobbyists, nonprofits local governments, and startups. The big platforms have the capital to rig up massive, automated surveillance and censorship systems, and the only alternatives that can spring up have to be just as big and powerful as the Big Tech platforms we're so desperate to escape:
This is especially grave given the current political current, where fascist politicians are threatening platforms with brutal punishments for failing to censor disfavored political views.
Anyone who tells you that "it's only censorship when the government does it" is badly confused. It's only a First Amendment violation when the government does it, sure – but censorship has always relied on intermediaries. From the Inquisition to the Comics Code, government censors were only able to do their jobs because powerful middlemen, fearing state punishments, blocked anything that might cross the line, censoring far beyond the material actually prohibited by the law:
We live in a world of powerful, corrupt middlemen. From payments to real-estate, from job-search to romance, there's a legion of parasites masquerading as helpmeets, burying their greedy mouthparts into our tender flesh:
But intermediaries aren't the problem. You shouldn't have to stand up your own payment processor, or learn the ins and outs of real-estate law, or start your own single's bar. The problem is power, not intermediation.
As we set out to build a new, good internet (with a lot less help from the US government than seemed likely as recently as last week), let's remember that lesson: the point isn't disintermediation, it's weak intermediation.
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:
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TOMORROW (Sept 24), I'll be speaking IN PERSON at the BOSTON PUBLIC LIBRARY!
Terminal-stage capitalism owes its long senescence to its many defensive mechanisms, and it's only by defeating these that we can put it out of its misery. "The Shield of Boringness" is one of the necrocapitalist's most effective defenses, so it behooves us to attack it head-on.
The Shield of Boringness is Dana Claire's extremely useful term for anything so dull that you simply can't hold any conception of it in your mind for any length of time. In the finance sector, they call this "MEGO," which stands for "My Eyes Glaze Over," a term of art for financial arrangements made so performatively complex that only the most exquisitely melted brain-geniuses can hope to unravel their spaghetti logic. The rest of us are meant to simply heft those thick, dense prospectuses in two hands, shrug, and assume, "a pile of shit this big must have a pony under it."
MEGO and its Shield of Boringness are key to all of terminal-stage capitalism's stupidest scams. Cloaking obvious swindles in a lot of complex language and Byzantine payment schemes can make them seem respectable just long enough for the scammers to relieve you of all your inconvenient cash and assets, though, eventually, you're bound to notice that something is missing.
If you spent the years leading up to the Great Financial Crisis baffled by "CDOs," "synthetic CDOs," "ARMs" and other swindler nonsense, you experienced the Shield of Boringness. If you bet your house and/or your retirement savings on these things, you experienced MEGO. If, after the bubble popped, you finally came to understand that these "exotic financial instruments" were just scams, you experienced Stein's Law ("anything that can't go forever eventually stops"). If today you no longer remember what a CDO is, you are once again experiencing the Shield of Boringness.
As bad as 2008 was, it wasn't even close to the end of terminal stage capitalism. The market has soldiered on, with complex swindles like carbon offset trading, metaverse, cryptocurrency, financialized solar installation, and (of course) AI. In addition to these new swindles, we're still playing the hits, finding new ways to make the worst scams of the 2000s even worse.
That brings me to the American health industry, and the absurdly complex, ridiculously corrupt Pharmacy Benefit Managers (PBMs), a pathology that has only metastasized since 2008.
On at least 20 separate occasions, I have taken it upon myself to figure out how the PBM swindle works, and nevertheless, every time they come up, I have to go back and figure it out again, because PBMs have the most powerful Shield of Boringness out of the whole Monster Manual of terminal-stage capitalism's trash mobs.
PBMs are back in the news because the FTC is now suing the largest of these for their role in ripping off diabetics with sky-high insulin prices. This has kicked off a fresh round of "what the fuck is a PBM, anyway?" explainers of extremely variable quality. Unsurprisingly, the best of these comes from Matt Stoller:
Stoller starts by pointing out that Americans have a proud tradition of getting phucked by pharma companies. As far back as the 1950s, Tennessee Senator Estes Kefauver was holding hearings on the scams that pharma companies were using to ensure that Americans paid more for their pills than virtually anyone else in the world.
But since the 2010s, Americans have found themselves paying eye-popping, sky-high, ridiculous drug prices. Eli Lilly's Humolog insulin sold for $21 in 1999; by 2017, the price was $274 – a 1,200% increase! This isn't your grampa's price gouging!
Where do these absurd prices come from? The story starts in the 2000s, when the GW Bush administration encouraged health insurers to create "high deductible" plans, where patients were expected to pay out of pocket for receiving care, until they hit a multi-thousand-dollar threshold, and then their insurance would kick in. Along with "co-pays" and other junk fees, these deductibles were called "cost sharing," and they were sold as a way to prevent the "abuse" of the health care system.
The economists who crafted terminal-stage capitalism's intellectual rationalizations claimed the reason Americans paid so much more for health care than their socialized-medicine using cousins in the rest of the world had nothing to do with the fact that America treats health as a source of profits, while the rest of the world treats health as a human right.
No, the actual root of America's health industry's problems was the moral defects of Americans. Because insured Americans could just go see the doctor whenever they felt like it, they had no incentive to minimize their use of the system. Any time one of these unhinged hypochondriacs got a little sniffle, they could treat themselves to a doctor's visit, enjoying those waiting-room magazines and the pleasure of arranging a sick day with HR, without bearing any of the true costs:
"Cost sharing" was supposed to create "skin in the game" for every insured American, creating a little pain-point that stung you every time you thought about treating yourself to a luxurious doctor's visit. Now, these payments bit hardest on the poorest workers, because if you're making minimum wage, at $10 co-pay hurts a lot more than it does if you're making six figures. What's more, VPs and the C-suite were offered "gold-plated" plans with low/no deductibles or co-pays, because executives understand the value of a dollar in the way that mere working slobs can't ever hope to comprehend. They can be trusted to only use the doctor when it's truly warranted.
So now you have these high-deductible plans creeping into every workplace. Then along comes Obama and the Affordable Care Act, a compromise that maintains health care as a for-profit enterprise (still not a human right!) but seeks to create universal coverage by requiring every American to buy a plan, requiring insurers to offer plans to every American, and uses public money to subsidize the for-profit health industry to glue it together.
Predictably, the cheapest insurance offered on the Obamacare exchanges – and ultimately, by employers – had sky-high deductibles and co-pays. That way, insurers could pocket a fat public subsidy, offer an "insurance" plan that was cheap enough for even the most marginally employed people to afford, but still offer no coverage until their customers had spent thousands of dollars out-of-pocket in a given year.
That's the background: GWB created high-deductible plans, Obama supercharged them. Keep that in your mind as we go through the MEGO procedures of the PBM sector.
Your insurer has a list of drugs they'll cover, called the "formulary." The formulary also specifies how much the insurance company is willing to pay your pharmacist for these drugs. Creating the formulary and paying pharmacies for dispensing drugs is a lot of tedious work, and insurance outsources this to third parties, called – wait for it – Pharmacy Benefits Managers.
The prices in the formulary the PBM prepares for your insurance company are called the "list prices." These are meant to represent the "sticker price" of the drug, what a pharmacist would charge you if you wandered in off the street with no insurance, but somehow in possession of a valid prescription.
But, as Stoller writes, these "list prices" aren't actually ever charged to anyone. The list price is like the "full price" on the pricetags at a discount furniture place where everything is always "on sale" at 50% off – and whose semi-disposable sofas and balsa-wood dining room chairs are never actually sold at full price.
One theoretical advantage of a PBM is that it can get lower prices because it bargains for all the people in a given insurer's plan. If you're the pharma giant Sanofi and you want your Lantus insulin to be available to any of the people who must use OptumRX's formulary, you have to convince OptumRX to include you in that formulary.
OptumRX – like all PBMs – demands "rebates" from pharma companies if they want to be included in the formulary. On its face, this is similar to the practices of, say, NICE – the UK agency that bargains for medicine on behalf of the NHS, which also bargains with pharma companies for access to everyone in the UK and gets very good deals as a result.
But OptumRX doesn't bargain for a lower list price. They bargain for a bigger rebate. That means that the "price" is still very high, but OptumRX ends up paying a tiny fraction of it, thanks to that rebate. In the OptumRX formulary, Lantus insulin lists for $403. But Sanofi, who make Lantus, rebate $339 of that to OptumRX, leaving just $64 for Lantus.
Here's where the scam hits. Your insurer charges you a deductible based on the list price – $404 – not on the $64 that OptumRX actually pays for your insulin. If you're in a high-deductible plan and you haven't met your cap yet, you're going to pay $404 for your insulin, even though the actual price for it is $64.
Now, you'd think that your insurer would put a stop to this. They chose the PBM, the PBM is ripping off their customers, so it's their job to smack the PBM around and make it cut this shit out. So why would the insurers tolerate this nonsense?
Here's why: the PBMs are divisions of the big health insurance companies. Unitedhealth owns OptumRx; Aetna owns Caremark, and Cigna owns Expressscripts. So it's not the PBM that's ripping you off, it's your own insurance company. They're not just making you pay for drugs that you're supposedly covered for – they're pocketing the deductible you pay for those drugs.
Now, there's one more entity with power over the PBM that you'd hope would step in on your behalf: your boss. After all, your employer is the entity that actually chooses the insurer and negotiates with them on your behalf. Your boss is in the driver's seat; you're just along for the ride.
It would be pretty funny if the answer to this was that the health insurance company bought your employer, too, and so your boss, the PBM and the insurer were all the same guy, busily swapping hats, paying for a call center full of tormented drones who each have three phones on their desks: one labeled "insurer"; the second, "PBM" and the final one "HR."
But no, the insurers haven't bought out the company you work for (yet). Rather, they've bought off your boss – they're sharing kickbacks with your employer for all the deductibles and co-pays you're being suckered into paying. There's so much money (your money) sloshing around in the PBM scamoverse that anytime someone might get in the way of you being ripped off, they just get cut in for a share of the loot.
That is how the PBM scam works: they're fronts for health insurers who exploit the existence of high-deductible plans in order to get huge kickbacks from pharma makers, and massive fees from you. They split the loot with your boss, whose payout goes up when you get screwed harder.
But wait, there's more! After all, Big Pharma isn't some kind of easily pushed-around weakling. They're big. Why don't they push back against these massive rebates? Because they can afford to pay bribes and smaller companies making cheaper drugs can't. Whether it's a little biotech upstart with a cheaper molecule, or a generics maker who's producing drugs at a fraction of the list price, they just don't have the giant cash reserves it takes to buy their way into the PBMs' formularies. Doubtless, the Big Pharma companies would prefer to pay smaller kickbacks, but from Big Pharma's perspective, the optimum amount of bribes extracted by a PBM isn't zero – far from it. For Big Pharma, the optimal number is one cent higher than "the maximum amount of bribes that a smaller company can afford."
The purpose of a system is what it does. The PBM system makes sure that Americans only have access to the most expensive drugs, and that they pay the highest possible prices for them, and this enriches both insurance companies and employers, while protecting the Big Pharma cartel from upstarts.
Which is why the FTC is suing the PBMs for price-fixing. As Stoller points out, they're using their powers under Section 5 of the FTC Act here, which allows them to shut down "unfair methods of competition":
The case will be adjudicated by an administrative law judge, in a process that's much faster than a federal court case. Once the FTC proves that the PBM scam is illegal when applied to insulin, they'll have a much easier time attacking the scam when it comes to every other drug (the insulin scam has just about run its course, with federally mandated $35 insulin coming online, just as a generation of post-insulin diabetes treatments hit the market).
Obviously the PBMs aren't taking this lying down. Cigna/Expressscripts has actually sued the FTC for libel over the market study it conducted, in which the agency described in pitiless, factual detail how Cigna was ripping us all off. The case is being fought by a low-level Reagan-era monster named Rick Rule, whom Stoller characterizes as a guy who "hangs around in bars and picks up lonely multi-national corporations" (!!).
The libel claim is a nonstarter, but it's still wild. It's like one of those movies where they want to show you how bad the cockroaches are, so there's a bit where the exterminator shows up and the roaches form a chorus line and do a kind of Busby Berkeley number:
So here we are: the FTC has set out to euthanize some rentiers, ridding the world of a layer of useless economic middlemen whose sole reason for existing is to make pharmaceuticals as expensive as possible, by colluding with the pharma cartel, the insurance cartel and your boss. This conspiracy exists in plain sight, hidden by the Shield of Boringness. If I've done my job, you now understand how this MEGO scam works – and if you forget all that ten minutes later (as is likely, given the nature of MEGO), that's OK: just remember that this thing is a giant fucking scam, and if you ever need to refresh yourself on the details, you can always re-read this post.
The paperback edition of The Lost Cause, my nationally bestselling, hopeful solarpunk novel is out this month!
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:
I'm on tour with my new, nationally bestselling novel The Bezzle! Catch me in TUCSON (Mar 9-10), then San Francisco (Mar 13), Anaheim, and more!
Once again, I find myself arriving at the weekend with a giant backlog of links, triggering a linkump, the 15th such dumpage, a variety-pack of miscellany for your weekend. Here's the previous editions:
https://pluralistic.net/tag/linkdump/
Let's start with the latest incredible news from KPMG, the accounting and auditing giant that is relied upon as a source of ground truth for a truly terrifying share of the world's economy. KPMG has a well-deserved reputation for incompetence and corruption. They first came on my radar in 2001 when they sent a legal threat to a blogger for linking to their website without permission:
Don't miss the DJ remixes (and the Nokia ringtone!) that the internet thoughtfully provided when KPMG decided that it didn't want the world to know about "Our Vision of Global Strategy":
Now all this is objectively very funny, a relic of the old, good internet from one of its moments of glory, but KPMG? They were already enshittifying, even in 2001, and the enshittification only intensified thereafter. Nearly every accounting scandal of the past quarter-century has KPMG in it somewhere, from con-artists selling exhausted oil fields to rubes:
And they were behind Canada's dysfunctional covid contact-tracing app, which never worked, but generated tens of millions in billings to the government of Canada, who used KPMG to hire programmers at $1,500/day, plus KPMG's 30% commission:
KPMG's most bizarre scandal is literally stranger than fiction. The company bribed SEC personnel help its own accountants cheat on ethics exams. The corrupt officials were then given high-paid jobs at KPMG:
I mean it when I say this is stranger than fiction. I included it as a plot-point in my new finance crime novel The Bezzle (now a national bestseller!), and multiple readers have written to me since the book came out a couple weeks ago to say that they thought I was straining their credulity by making up such an outrageous scandal:
But all of that is just scene-setting (and a gratuitous plug for my book) for the latest KPMG scandal, which is, possibly, the most KPMG scandal of all KPMG scandals. The Australian government hired KPMG to audit Paladin, a security contractor that oversees the asylum seekers the country locks up on one of its island gulags (yes, gulags, plural).
Ever since, Paladin has been the subject of a string of ghastly human rights scandals – the worst stuff imaginable, rape and torture and murder of adults and children. Paladin made AU423 million on this contract.
And here's the scandal: KPMG audited the wrong company. The Paladin that the Australia government paid KPMG to audit was based in Singapore. The Paladin that KPMG audited was a totally different company, based in Papua New Guinea, who already had a commercial relationship with KPMG. It was this colossal fuckup that led to the manifestly unfit Singaporean company getting nearly half a billion dollars in public funds:
KPMG denies this. KPMG denies everything, always. Like, they denied creating "power maps" of decision-makers in the Australian government to target with influence campaigns in order to win contracts like this one. Who knows, maybe, this one time, they're telling the truth? After all, the company whose employees gather to sing lyrics like these can't be all bad, right?
The time is now to lead the way,
We share the same the idea
That may win by the end of the day.
Our strength is here to stay.
Identity, one energy,
One strategy, with sympathy.
These are the words that will lead us into a new world.
You may find it strange that I'm still carrying around the factoid that KPMG once threatened to crush a blogger for linking to its terrible corporate anthem, but that's just my "Memex Method," which helps me keep track of literally everything that seemed important to me through most of my adult life:
One of my favorite quips from the very quotable Riley Quinn is that "leftists are cursed with object-permanence" – that is, we actually remember what just happened and use it to think about what's happening now. The Memex Method is object permanence for 20+ years worth of stuff. A lot of those deep archives never see use, but there's a surprising number of leading indicators buried in the stuff that happened in years gone by.
Take James Boyle's 2014, XKCD-style comic about the experience of driving a notional Apple car:
Apple, it turns out, spent the next decade working on just such a car, and while that car has now been canceled, Boyle's comic correctly anticipates so much about the trajectory Apple's products took. It's uncannily accurate – real "don't invent the torment nexus"/"cyberpunk was a warning, not a suggestion" stuff:
https://knowyourmeme.com/memes/torment-nexus
But no matter how many times we insist that the torment nexus shouldn't be created, the boardrooms of end-stage capitalism continue to invent them. Take HP, the poster-child for enshittification, edging out even KPMG in the race to turn everything into a pile of shit. After years of tormenting people to punish them for wanting to print things, HP has announced a new service that so mustache-twirlingly evil that it lacks verisimilitude:
Here's the pitch: HP will sell you a printer that you don't own. In addition to paying a monthly fee for your ink – which you pay no matter whether you print or not – you will also pay a monthly fee just for having HP's printer on your premises. You are absolutely, positively forbidden from using third-party ink in this printer, and must use HP's own ink, which sells for about $10,000/gallon.
But while you aren't allowed to use this printer in ways that are bad for HP's shareholders, HP is absolutely free to use the printer in ways that are bad for you. When you click through the signup agreement, you grand HP permission to surveil every document you print – and your home wifi network more generally – and to sell that data to anyone and everyone.
What's more, HP reserves the right to discipline you with punitive credit-card charges if you disconnect this printer from the internet, on the basis that doing so makes it harder for them to spy on your printer.
I'm sorry, this is just more torment nexus shit, the kind of thing you'd expect to drop on Apr 1, not Feb 29, but I guess this is where we are. I can only conjecture as to whether HP's businesses strategists are directly taking direction from my novella "Unauthorized Bread," or whether they're learning about it second-hand from a KPMG consultant who converted it to Powerpoint form and charged $1,500/day for the work:
All of this cartoonish villainry is the totally foreseeable consequence of a culture of impunity, in which companies like HP and KPMG can rob, cheat, steal (and sometimes even kill) without consequence. This impunity is so pervasive that the exceptions – where a rich criminal faces real consequences – become touchstones: Enron, Arthur Anderson, Theranos, and, of course, FTX.
FTX was arguably the largest-scale corporate crime in world history, stealing more than $10 billion dollars, mostly from rubes sucked in by hype and Superbowl ads. When news that FTX founder and owner Sam Bankman-Fried was convicted of fraud and was in for a lengthy prison sentence made a huge stir, because criminals like SBF usually walk away from the wreckage with their hands in their pockets, whistling a jaunty tune.
One of the very best commentators on cryptocurrency scams generally and FTX/SBF in particular is Molly White, whose Web3 is Going Just Great feed is utterly indispensable. White's newsletter, "Citation Needed," dives deep into the wrangle of SBF's sentencing:
https://www.citationneeded.news/issue-52/
Bankman-Fried's parents – prominent law professors at top law schools – helped brief the court this week on their son's punishment. According to them, SBF faces 100 years in prison, but should be sentenced to 5.5-6.5 years at the most. Why? Because he is a vegan, who is not greedy, and feels remorse, and cares for individuals (recall that SBF presented himself as the avatar of the batshit "effective altruism" philosophy while privately admitting that he used this as a smokescreen).
The most bizarre note in the 100-page filing is SBF's mother declaring that her son is an "angel of mercy," apparently unaware of the grisly meaning of that term:
America's prisons are a travesty and I wouldn't wish them on anyone, but that's not the argument SBF's parents are making; rather, they're arguing that their special boy doesn't deserve the treatment America metes out to poorer, less white people who merely steal hundreds or thousands of dollars. A crook who steals ten billion should be handled the way a casino handles a whale – with concierge service.
The problem is, there are so many of these remorseless, relentless crooks that there's no way we could scale up that white-glove treatment when we finally round 'em all up and make them pay. Writing for The American Prospect, Maureen Tkacik tells us about the ransomware attack that shut down America's pharmacy system last month:
The attack brought down Change Healthcare, part of the monopolist Unitedhealth, which serves as the "pharmacy benefit manager" to a vast swathe of American pharmacies. PBM is one of those all-American finance scams, a middleman garlanded with performative complexity put there to make you feel stupid for asking why independent pharmacies all have to pay rent to this malicious, unaccountable – and now, manifestly incompetent – gang of crooks.
Tkacik's breakdown of this scam – and how it rendered Americans' ability to get the drugs they depend on to go on breathing – is characteristically brilliant. Tcacik is fast emerging as my favorite Explainer of Scams, a print version of John Oliver or Adam Conover. You may recall her work from my post last week on how private equity has taken a wrecking ball to America's hospitals:
I always try to finish these linkdumps with some upbeat news to carry you through the weekend, and this week brought two genuinely wonderful – and totally underreported – pieces of amazing news.
The first is that Starbucks has sued for peace in the war against its workers' unions. Hundreds of Starbucks stores have unionized in recent years, but not one of them had a contract. Instead, Starbucks had waged dirty war on their own workers, from denying gender-affirming care to unionized employees to simply shutting down whole stores after they voted to unionize:
But the workers held fast and after years of this, Starbucks has caved, promising contracts for all unionized stores and an end to its campaign of terror against workers seeking to unionize more of its stores. In a postmortem for Jacobin, Eric Blanc rounds up "seven lessons from Starbucks workers' historic victory":
This is the kind of listicle I can get behind. According to Blanc, the Starbucks unions won by deploying worker-to-worker organizing, a tactic that many of the new unions that are shaking up formerly impossible-to-organize jobsites are using (Blanc has a book about this coming from UC Press called "We Are the Union: How Worker-to-Worker Unionism Can Transform America," so he should know).
Other tactics that made the difference for Starbucks unions: new digital training and support tools and partnering with established unions for support and infrastructure. Blanc also calls out the success of "salting" – the venerable but largely disused tactic of union organizers applying for a job at a non-union shop in order to organize it.
Blanc also mentions government policy, including the outstanding work of NLRB general counsel Jennifer Abruzzo, a shrewd and committed tactician whose understanding of the technicalities of labor law have let her push for bold measures. For example, in Thrive Pet Care, Abruzzo is arguing that when a company refuses to bargain in good faith for a contract with its union, she can step in and order them to honor the terms of a contract at comparable unionized competitors until they produce a contract of their own:
Abruzzo is one of several smart, competent tacticians in the Biden administration who are working to kneecap corporate power. Another is Rohit Chopra, chair of the Consumer Finance Protection Bureau, who just announced another bold, important initiative that will help Americans fight corporate corruption and get a fair deal:
Chopra is taking aim at credit-card comparison sites that purport to show you where you can get the best deal. If you're an affluent person who doesn't carry a balance, this might not matter to you, but if you're an average working stiff, high interest rates can gobble up a massive share of your paycheck. What's more, credit card margins are higher than they have ever been:
The most expensive credit cards come from the big, monopolistic banks, but you wouldn't know it from the leaderboards produced by Credit Karma, NerdWallet, LendingTree, and Bankrate. All of these sites take bribes from the big banks to list their credit cards above those offered by credit unions – who are typically 10% cheaper than the big banks' cards.
The new CFPB rule prohibits this fraudulent ranking, but the Bureau is going even further. They're using their administrative powers to force banks to report their rates to the Bureau, which will publish them on a publicly funded, neutral website – what David Dayen calls "a public option" for shopping for credit cards.
This policy makes a perfect bookend to the last CFPB initiative I wrote about here: a rule that forces banks to allow you to transfer your account to a rival with a couple of simple clicks, importing all your history, payees, and everything else you need to switch to a better bank:
Combine that ease of switching with reliable information on which banks will give you the best deal and you get something that will directly transfer millions and millions of dollars from giant, wildly profitable banks to low-income people who've been tricked into paying them punitive interest rates.
So that's it, this week's linkdump. I promised you I'd end on a high note, and I did it. The world may be full of all kinds of terrible things, but workers and regulators are scoring big, muscular victories in battles where the stakes are real and important. Have a great weekend – we've earned it.
And remember!
The time is now to lead the way,
We share the same the idea
That may win by the end of the day.
Our strength is here to stay.
Identity, one energy,
One strategy, with sympathy.
These are the words that will lead us into a new world.
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:
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➤ Goldman Sachs has launched a tokenized real estate fund on its proprietary blockchain platform (GS DAP), emphasizing regulatory compliance and efficiency for institutional investors.
➤ The article argues that this initiative represents traditional finance improving its existing infrastructure rather than opening real estate to broader access, highlighting the 'plumbing provider' strategy of Goldman Sachs.
➤ The contrast with Europe's interoperable approach is noted, suggesting the future of tokenization will be defined by proprietary vs. open-architecture models, with the true impact depending on GS DAP's adoption beyond Goldman's own deals.
Bitcoin 2026: cuando el problema no es el contenido, sino quién controla su distribución
Un documental premiado fue bloqueado por medios tradicionales y expone cómo Bitcoin permite distribuir contenido sin intermediarios.
➤ A documentary's distribution challenges highlight how Bitcoin can bypass traditional intermediaries for content access and financing.
➤ The article argues that Bitcoin's open protocols offer an alternative infrastructure for information circulation, empowering creators and audiences.
➤ Control over distribution channels, rather than just technology, will shape the future of information access, with Bitcoin emerging as a key player.
