From: Tim May <tcmay@got.net>
Date: Fri, 10 Oct 1997 08:31:06 +0800
To: cypherpunks@Algebra.COM
Subject: America as a Shake Down Extortion State
In-Reply-To: <Pine.LNX.3.95.971009163000.425A-100000@is-chief>
Message-ID: <v03102800b063225382ff@[207.167.93.63]>
MIME-Version: 1.0
Content-Type: text/plain



At 3:36 PM -0700 10/9/97, Jim Burnes wrote:
>I know this is probably like preaching to the choir, but
>I remember Freeh recently saying that there were no
>significant losses of software exportation to foreign
>software companies.
>
>Well he is obviously ignorant or lying through his teeth.
>
>I'm about to recommend a software purchase from a foreign
>software company that might exceed #300k.  Is that
>on Freeh's radar yet?
>
>Mind you, I don't care where people get their software, but
>if Freeh is trying to calm the America Firsters by saying
>that crypto imports aren't important I think someone is
>congress ought to be informed.
>
>Declan?  You're still out there in the pit of vipers.  Why
>don't you tell them.  My congressman doesn't seem to listen
>to me.

What Freeh meant is that "no major political campaign contributors" are
losing business, at least not yet. What Netscape and Microsoft may be
losing, not to mention what smaller companies may be losing, is of little
concern to Clinton, Reno, Freeh, etc. Or even to the Republicans. Until
Netscape, Microsoft, RSA, PGP, and C2Net become major contributors, or at
least start showing proper respect to their Dons, they don't count.

The way an extortion state works is like this: pressure is applied to
various industries and groups to get them to contribute lobbyist money and
campaign contributions to the various sides. (It almost doesn't matter
which sides...) In most cases, the more absurd and ridiculous the law is,
the more the lobbyists are incentivized to get their funders to kick in
more bucks.

The debate over crypto almost certainly fits this pattern. If and when a
domestic ban on crypto is likely to pass and be signed, companies like RSA
and PGP will face extinction. This will then "incentivize" executives of
these companies to release funds, in the form of campaign
contributions--either directly or through back channels--to the Republican
and Democratic parties. Then a "compromise" will be found which lets RSA
and PGP, as examples, survive. And they may also be given government
business, with suitable GAK features made mandatory.

Such has it always been in "democracies" like the Extorted States of America.

So, in addition to the 40% of profits the high tech industry pays in taxes
to various governments who demand tribute, they are also expected to kick
in more bucks in campaign contributions, junkets to vacation spots, and so
on. Only then is there any chance that laws will be modified to suit the
highest bidder.

Face it, Amerika is basically a Mafia shake-down operation, with the power
of the State used to shake down protection money.

This is why I favor crypto anarchy: by concentrating on ignoring laws and
deploying technology, this extortion state system is bypassed. Also, the
tax evasion aspects are poetic justice.

--Tim May

The Feds have shown their hand: they want a ban on domestic cryptography
---------:---------:---------:---------:---------:---------:---------:----
Timothy C. May              | Crypto Anarchy: encryption, digital money,
ComSec 3DES:   408-728-0152 | anonymous networks, digital pseudonyms, zero
W.A.S.T.E.: Corralitos, CA  | knowledge, reputations, information markets,
Higher Power: 2^2,976,221   | black markets, collapse of governments.
"National borders aren't even speed bumps on the information superhighway."