Friday, March 15, 2019

College Admissions: Revisiting Affirmative Action


Revisiting Affirmative Action

The breaking scandal of corrupt college admissions has exposed the role of  money in college admissions. It is also a chance to revisit the idea of college affirmative action and the importance of access to higher education. Access to education has been a point of friction and social division in America since its founding. When elite schools began to set aside spots for Black students and other minority groups, a political movement grew in opposition. Affirmative action found opposition in all of its forms- business programs, federal contracting and so forth.

In higher education, individual plaintiffs stepped forward to claim their rights to the chairs set aside for poor, disadvantaged, and other classes of applicants. In all of that, I don’t remember the lawsuit that challenged the seats set aside for the sons and daughters of wealthy donors.  Some say, those seats were not restricted by race—and, most remarkable of all,  they said it with straight faces. In this current edition of money preferred admissions, there is a sense of corruption that unites all sides—when they cheat to win, we can all agree it is bad and we should stop it.
- Tolerance for the Rich
It appears that the primary complaint of many white plaintiffs in the 90’s and later that sued schools for affirmative action was more misguided than previously seen. We were always aware of the subjective nature of college admissions. Using names like development scholars, prestigious universities and colleges admitted thousands of unqualified applicants or poorly qualified applicants. By a simple definition, these students would not have been admitted but for some financial or other advantages to the school.
To be fair, some schools might have admitted a child of Dr. King or Malcolm, or Robert Kennedy- some fallen hero within our democratic and social environments. The advantage would not have been financial, but reputational and reflecting goodwill. Some schools admit children or relatives of major donors. Give a building and your kids, grand kids will be Yale-ies or Harvard-ites etc. The context of plum, legacy, or developmental admissions sheds a poor light on the lawsuits in which white applicants claimed that their rightful places were taken by students selected for race or diversity.
- Higher Education is a National Resource
The nation needs educational excellence. The quality of higher education is the special advantage that the US enjoys in a world of rising competition.  The US fails by many measures of learning beginning with the Early Childhood stages; the US is the indisputable leader in advanced education.  US research universities are the envy of friends and foes alike; and institutions of higher education have turned the tide in critical moments such as the University of Chicago and development of atomic energy and weaponry near the end of WWII—that was a race against the evil of  Nazism that also reached for a weapon that could dominate the world.  
Reverse Discrimination, Really?
Reverse Discrimination was always a sketchy point of view; it assumed all of the mistakes built in to the system were normative-  wealthy schools vs poor urban schools, communities with resources vs communities that made life dangerous- the reverse discrimination point of view only looked at test scores and determined that white’s were at a disadvantage when schools reached beyond the testing standards to enrich their student populations. This was a sketchy  theory in fact and in deed.
Education admissions have never been fair. Higher education began in Western Europe and then in the US as a male-only thing for rich white males. US public education became a ladder for the masses but only when the industrialists needed workers that could read and write and build technical things. Higher education today remains tilted towards white males—and so we have the bold efforts for women and STEM for example. Historically, women and peoples of color have made enormous contributions to education and through education.
Green Discrimination-
Socialism for the rich has never drawn a loud complaint- until lately when the energy of the 98 percent has begun to galvanize. Turning educational merit on its head to suit the children of people whose wealth can be quite suspect- became a norm that has rolled downhill gathering like a snowball since the period before founding of the Nation. At least, the schools tended to benefit and get stronger. Today’s brand of corruption  is more than socialism for the rich; corrupt admissions simply weakens the educational system and cheats the society.
In the past and continuing to this day, the society seems to accept that schools can reward generous patrons with plaques, and halls, and admissions for their children and families. We seem to accept that the schools benefit, and the donations can be publicly disclosed.  While in the end, the taxpayer pays for it all through tax deductions for the wealthy donors, the practice still passes the societal test for fair play.
The revelation of massive criminal corruption in the admissions process  has shocked the nation. The undisclosed generations of money-influenced admissions essentially meant that wealthy people could directly  or indirectly buy their way into prestigious schools. The current and past levels of corrupt admissions requires a new look at Affirmative Action.

Corrupt admissions suggests  that the white Reverse Discrimination  plaintiffs that claimed their seats went to minority applicants were oh—so mistaken.  Their seats were taken, but not by the disadvantaged, Black, Brown, or Golden skinned people, but rather by the green people—the people with lots of green to ensure their dreams.

Friday, August 31, 2018

Lives of Truth


My recent birthday celebration came, and, in some ways, I barely noticed- there was news—affecting news, causing a distraction. We lost the presence of Senator McCain and Aretha Franklin. In the days that followed through today the nation, writ large, experienced a celebration of these lives; they were lives distinguished by their embrace of truth.

When first I heard Aretha perform, I realized she was part of a long and brilliant tradition. Greatness in music, these Black Divas reached me and millions- something about the way they moved the air, moved human spirits. We could soar or mourn with equal depth, they involved us. She made us move our feet to the rhythm of her words; she also made us open eyes to see the ugliness of the world and that we are left to change it. I could chart phases of my life by Aretha’s albums, tapes, and CDs that I purchased and, in some cases, played until they were worn thin. When I wrote about her—I said a little prayer.

Senator McCain was often the rival of my political ideals, and just as often a champion of a cause with which I identified. He stood strong for decency and equality. Senator McCain lived his patriotism; he gave his body and spirit to his country. He championed the fights against forces that steal freedom; he knew they first stole truth. Truth is the first victim of evil. We honored Senator McCain as if he were a national leader—for in a leaderless time- we all looked to him, turned our yearning eyes to him.

Living in truth; it is the example of a way to live and a way to depart the world. Living in truth is the acceptance of the great gift of life and the great obligation that accompanies existence- we have a debt to eternity, to realize that life is all that we know, and to make it better for every other life.
We live in an age that tests truth- that bends the modern miracles of communication and technology to the pettiness of a long dead age. There is no truth to supremacy; there is greatness in gratitude, there is immortality in sacrifice, and there is love—as the only thing we can create in life and keep forever.

Friday, June 15, 2018

Greater Clarity on Cryptocurrency and Securities Regulation


Greater Clarity on Cryptocurrency and  Securities Regulation

The Securities and Exchange Commission has billowed  a fresh breath of life and clarity into the legal status of Ethereum, Bitcoin,  and other cryptocurrencies. The policy states that without more, they are not securities within the meaning of the Securities Act. 1/ The policy states that Bitcoin and Ethereum may not be regulated as a security when issued and used as a medium of exchange. In essence, the determination of whether an ICO or token is a security depends on the terms of  the issuance. It revolves around the question: would a reasonable investor rely upon a seller’s commitment to do some future act to gain profit on the investment? ( See the full remarks here  of William Hinman, Director of Corporation Finance, SEC, June 14, 2018)

The traditional test of a regulable instrument is similar( see e.g.  SEC v. Howey). It is based in the expectations created by the terms of the initial public offering. The question appears to be : whether the buyer or investor must rely upon the ICO issuer to perform some specific or general mission. If yes, then it may be a security, but if not, then it probably is not. Bitcoin and Ethereum are such generally circulated tokens that buyers do not appear to be motivated or enticed by any particular or general undertaking by the issuer.
The opinion notes that among the uses of cryptocurrency are  personal and commercial transactions in which the cryptocurrency is a simple medium of exchange. Some Asian issues have had this design- a currency meant for everyday usage to buy good and services, sell products, provide loan funds,  serve as an asset when a business seeks to borrow funds .

In an announcement at Yahoo Finance’s All Market Summit: Crypto in San Francisco on Thursday, the U.S. Securities and Exchange Commission Director of Corporate Finance William Hinman said that the commission would not be classifying ether or bitcoin as securities.2/

The keys to the SEC analysis include the nature of the blockchain that supports the currency.  The opinion seems to focus on Whether the blockchain structure is decentralized; presumably, this relates to the absence of  a central control by the issuer.  The logic of this position  is not readily apparent given the essential construct of the blockchain as a distributed ledger. The ruling is important to the future direction of cryptocurrency, the situation with currency exchanges may differ substantially in a regulated environment.

The SEC policy is  an opinion that will have legal effect in SEC proceedings; presumably federal and state courts  will rely upon the SEC’s administrative expertise and follow the advice when considering claims concerning regulation and investor rights in cryptocurrency.

<h3> The Lesson is in the Purpose</h3>
Many ICO’s will be regulated securities under the new SEC rule because they are tied to particular promises , projects, or themes. The investor would have a reasonable expectation of some further or continuing action by the issuer to affect the value of the coin. That expectation defines the classic area of securities regulation. The investment policy protects investors against offers that have big promises and no delivery. These empty promises leave investors adrift and diminish public confidence in the financial markets.

<h3>Greater Clarity? </h3>
If you are in the process of putting together an ICO, does the SEC announcement  provide guidance?- Can you now choose to shape a regulated or deregulated ICO?  You will likely still need a battery of high-priced legal and crypto experts to get the desired outcome. 

Liquidity is a prime consideration and a regulated currency issue may have greater liquidity among institutional investors that have begin shopping the cryptocurrency exchanges in greater numbers than before. A successful ICO might have to thread a needle between broad appeal and generating liquidity and narrow appeal to inspire participation. For example, a project aimed at environmental improvement might have to emphasize a generic effort rather a just some specific projects. On the other hand, some ICOs will more clearly leans towards regulation and the challenge will be to find exchanges that can provide liquidity for a regulated ICO and token.

- Trend toward Regulation and Broader Markets
There have been some important cryptocurrency  developments and news in the area of the NYSE, Crypto-derivatives, CoinBase, and Gemini. These events move towards some greater acceptance of regulation and broadening the cryptocurrency markets to accommodate institutional investment and hedge funds. SEC clarification of the status of cryptocurrency will likely hasten those trends.

Note: Blockchain is not Bitcoin or any other currency, and blockchain technology has many uses outside of cryptocurrency. Bitcoin might be thought of as an application in an operating system. Blockchain is the system.

1. SEC announces cryptocurrency ether is not a security

2. SEC director says Ethereum does not fall under securities regulation

3. Bitcoin and ether are not securities, but some initial coin offerings may be, SEC official says




Saturday, October 14, 2017

Ukraine: Still at the Apex



Ukraine: Still at the Apex


Ukraine is still the epicenter of US International policy- the US appears tethered to Russia’s goals for global domination


From Crimea to North Korean Missiles

The Obama sanctions against Russia countered the bald aggression Putin’s government showed when invading Ukraine, fomenting civil war in the Don Bas region, and annexing the Crimean Peninsula. Russian military aggression depends on the banking and finance that make its government run, and the Obama sanctions put a devastating hole in the Russian economy.  

 At the height of the effects of the global oil crash and the sanctions, the Rouble fell to all-time lows. The military machine ground to a slow and halting state,  and the Russian population suffered severe disruptions and substantial deprivations.

In summer of 2017, the US Congress voted to extend sanctions and increased the severity of them in response to intelligence agency findings that Russia interfered with the national elections in November, 2016. The Trump administration opposed the sanctions and worked in the legislative buildup to reduce or eliminate them. There was no explanation for that strategy in the face of universal agreement from US and allied intelligence of the Russian election cyberwarfare. The Congress voted overwhelmingly to extend sanctions and impose additional costs; thus far, the Trump Administration has not acted as needed to carry them out.

Ukraine and Russia deja vu

In Dnipropetrovsk, Ukraine- a very nice city that I have visited and enjoyed- there is a mammoth government installation. It takes considerable time just to drive past it. As the walled areas make it difficult to grasp the scale of the place, it is the plant where generations of Soviet missiles and rockets were developed, designed, and constructed. 

Recently, North Korea made some surprising advances in rocketry- a new design and remarkably advance capabilities. North Korea can launch and effectively strike targets as far away as the continental United States The sudden advance?  Yes, they apparently came from models developed for Russia in the Ukraine, and in the sprawling facility in Dnipro. How they became property of the North Korean Dictator is as at yet unsolved mystery. Again, Ukraine and Russia at the center of US international policy.

The Pattern of Serving Russian Goals

In July 2016, there was a mysterious action taken at the GOP convention; an abrupt change in policy in the Platform to stop the sanctions, reduce participation in NATO, and accept the Russian Occupation of Crimea and the elections thereafter which international agencies have condemned as illegitimate.

The Russia investigations in the House and Senate each seek to establish whether there was some form of collusion between the Trump campaign and Russian leadership as the quid pro quo for Russia’s successful efforts to influence key parts of the US electorate.

Iran, Syria, and Russia

Again, the sanctions and the tilt towards doing Russia’s bidding occurs at the fulcrum of the most difficult international challenges.  In the spring of 2017, the Administration abruptly announced it would no longer seek regime change in Syria- consistent with Russia policy. A few days later, Assad gassed his own people again. The following day, the US advised Russia it would make a symbolic missile strike on a Syrian base. The TV cameras covered the missiles, and Syria moved its equipment in advance of the attack and sustained no damage or reduction of its ability to carry out attacks. 

Today, the US will begin to dismantle the Iran nuclear agreement. The refusal to certify Iran's compliance could free Iran's government to develop its nuclear program as well as continue its support of Assad in Syria. The US foreign policy continues to  align and contour itself to support Russian objectives and to do so when and if they damage US policies and traditional principles.

The word of a nation is important in its conduct of international relations. Ultimately, we would like to negotiate a nuclear deal with North Korea that could advance their stagnant and under served economy , improve the level of living there , and move them closer to normal relationships with other regional powers. Such agreements depend on the trust that other nations have in US commitments. 

The current administration as removed any semblance of trust or confidence in US policy or commitments. The chaotic messages come from Tweets, ill-advised public papers, news leaks, and public statements that often defy understanding. The confluence of these behaviors weakens America, diminishes our role in international events, and makes us increasingly subservient to Russian interests.  It is an odd pairing with an admitted enemy that currently points thousands of tons of nuclear explosives at us.