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The Almighty Buck

The Silicon Valley Paradox: One In Four People Are At Risk of Hunger (theguardian.com) 372

Zorro shares a report from The Guardian: One in four people in Silicon Valley are at risk of hunger, researchers at the Second Harvest food bank have found. Using hundreds of community interviews and data modeling, a new study suggests that 26.8% of the population -- almost 720,000 people -- qualify as "food insecure" based on risk factors such as missing meals, relying on food banks or food stamps, borrowing money for food, or neglecting bills and rent in order to buy groceries. Nearly a quarter are families with children. "We call it the Silicon Valley paradox," says Steve Brennan, the food bank's marketing director. "As the economy gets better we seem to be serving more people." Since the recession, Second Harvest has seen demand spike by 46%. The bank is at the center of the Silicon Valley boom -- both literally and figuratively. It sits just half a mile from Cisco's headquarters and counts Facebook's Sheryl Sandberg among its major donors. But the need it serves is exacerbated by this industry's wealth; as high-paying tech firms move in, the cost of living rises for everyone else.

The scale of the problem becomes apparent on a visit to Second Harvest, the only food bank serving Silicon Valley and one of the largest in the country. In any given month it provides meals for 257,000 people -- 66m pounds of food last year. Because poverty is often shrouded in shame, their clients' situations can come as a surprise. "Often we think of somebody visibly hungry, the traditional homeless person," Brennan said. "But this study is putting light on the non-traditional homeless: people living in their car or a garage, working people who have to choose between rent and food, people without access to a kitchen."

Government

Trump Signs Law Forcing Drone Users To Register With Government (thehill.com) 468

President Trump signed a sweeping defense policy bill into law on Tuesday that will allow the government to require recreational drone users to register their model aircraft. This comes after a federal court ruled in May that Americans no longer have to register non-commercial drones with the Federal Aviation Administration (FAA) "because Congress had said in a previous law that the FAA can't regulate model aircraft," reports The Hill. From the report: In December 2015, the FAA issued an interim rule requiring drone hobbyists to register their recreational aircraft with the agency. The rule -- which had not been formally finalized -- requires model aircraft owners to provide their name, email address and physical address; pay a $5 registration fee; and display a unique drone ID number at all times. Those who fail to comply could face civil and criminal penalties. While Congress directed the FAA to safely integrate drones into the national airspace in a 2012 aviation law, lawmakers also included a special exemption to prevent model aircraft from being regulated. A D.C.-based appeals court cited the 2012 law in its ruling striking down the FAA drone registry, arguing that recreational drones count as model aircraft and that the registry counts as a rule or regulation.
Businesses

Trump Signs Into Law US Government Ban on Kaspersky Lab Software (reuters.com) 140

President Donald Trump signed into law on Tuesday legislation that bans the use of Kaspersky Lab within the U.S. government, capping a months-long effort to purge the Moscow-based antivirus firm from federal agencies amid concerns it was vulnerable to Kremlin influence. From a report: The ban, included as part of a broader defense policy spending bill that Trump signed, reinforces a directive issued by the Trump administration in September that civilian agencies remove Kaspersky Lab software within 90 days. The law applies to both civilian and military networks. "The case against Kaspersky is well-documented and deeply concerning. This law is long overdue," said Democratic Senator Jeanne Shaheen, who led calls in Congress to scrub the software from government computers. She added that the company's software represented a "grave risk" to U.S. national security.
Bitcoin

SEC Shuts Down Munchee ICO (techcrunch.com) 43

The Securities and Exchange Commission has shut down Munchee, a company that built a $15 million token sale. According to TechCrunch, "The Munchee ICO aimed to fund the MUN coin, a payment system for restaurant reviews." However, the company "received a cease and desist from the SEC on December 11" because it constituted the offer and sale of unregistered securities. From the report: Within the SECs findings they noted that Munchee touted itself as a "utility" token which means that the company believed the MUN token would be primarily used within the Munchee ecosystem and not be used to fund operations. However, thanks to an application of the Howey Test (a Supreme Court finding that essentially states that any instrument with the expectation of return is an investment vehicle), the SEC found the Munchee was actually releasing a security masquerading as a utility. "Munchee offered MUN tokens in order to raise capital to build a profitable enterprise," read the SEC notice. "Munchee said that it would use the offering proceeds to run its business, including hiring people to develop its product, promoting the Munchee App, and ensuring 'the smooth operation of the MUN token ecosystem.'" The stickiest part? Munchee claimed that its coins would increase in value thanks to a convoluted process of growth.

In short, Munchee was undone by two things: depending on the token sale as a vehicle to raise cash for operations and using the typically spammy and scammy marketing efforts most ICO floggers use now, tactics taken directly from affiliate marketing handbooks. Fortunately, Munchee was able to return all $15 million to the 40 investors that dumped their coins into scheme.

Bitcoin

SEC Warns 'Extreme Caution' Over Cryptocurrency Investments As Many People Take Out Mortgages To Buy Bitcoin (qz.com) 233

The head of the US Securities and Exchange Commission has warned bitcoin and other cryptocurrency investors to beware of scams and criminal activity in the sector. In the financial regulator's strongest statement yet, SEC chair Jay Clayton said: "If a promoter guarantees returns, if an opportunity sounds too good to be true, or if you are pressured to act quickly, please exercise extreme caution and be aware of the risk that your investment may be lost." The warning comes at a time when many people have begun to take out mortgages to buy bitcoin. From a report: Clayton's statement was also issued the same day the SEC took regulatory action to halt an initial coin offering (ICO). "Recognize that these markets span national borders and that significant trading may occur on systems and platforms outside the United States. Your invested funds may quickly travel overseas without your knowledge," he wrote, in a sentence that was in bold. Clayton's statement referenced some of the crucial debates that have swirled around the rise and regulation of crypto-assets like bitcoins. Are these currencies? Commodities? Or securities? The statement notes in a footnote that bitcoin in the US has been designated a commodity. But the broader answer seems to be that while it depends from case to case, initial coin offerings, at least, are more likely to be scrutinized and held to the same bar as securities offerings.
Businesses

Why Google and Amazon Are Hypocrites (om.blog) 245

Amazon earlier this month responded to Google's decision to remove YouTube from all Fire TV products and the Echo Show. Google says it's taking this extreme step because of Amazon's recent delisting of new Nest products (like Nest Secure and the E Thermostat) and the company's long-running refusal to sell Chromecast or support Google Cast in any capacity. Veteran journalist Om Malik writes: This smacks of so much hypocrisy that I don't even know where to start. The two public proponents of network neutrality and anything but neutral about each other's services on each other's platforms. They can complain about the cable companies from blocking their content and charging for fast lanes. The irony isn't lost on me even a wee bit. They are locked in a battle to collect as much data about us -- what we shop, what we see, what we do online and they do so under the guise of offering us services that are amazing and wonderful. They don't talk about what they won't do with our data, instead, they bicker and distract. So to think that these purveyors of hyper-capitalism will fight for interests of consumers is not only childish, it is foolish. We as end customers need to figure out who is speaking on our behalf when it comes to the rules of the Internet.
The Internet

129 Million Americans Can Only Get Internet Service From Companies That Have Violated Net Neutrality (vice.com) 143

An anonymous reader quotes a report from Motherboard: Based on the Federal Communications Commission's own data, the Institute for Local Self Reliance found that 129 million Americans only have one option for broadband internet service in their area, which equals about 40 percent of the country. Of those who only have one option, roughly 50 million are limited to a company that has violated net neutrality in some way. Of Americans who do have more than one option, 50 million of them are left choosing between two companies that have both got shady behavior on their records, from blocking certain access to actively campaigning against net neutrality.

Aside from being a non-ideal situation for consumers like me, this lack of competition is another dock against the FCC's plan to repeal net neutrality rules later this week. In arguing against net neutrality rules, FCC Chairman Ajit Pai has repeatedly cited a free market as just as capable of ensuring internet freedom as government regulations. "All we are simply doing is putting engineers and entrepreneurs, instead of bureaucrats and lawyers, back in charge of the internet," Pai said on Fox News's "Fox & Friends," in November. "What we wanted to do is return to the free market consensus that started in the Clinton administration and that served the internet economy in America very well for many years." But how can market competition regulate an industry when more than a third of the market has no competition at all, and even those that do have to choose between options that don't uphold net neutrality?

Education

France To Ban Mobile Phones In Schools (theguardian.com) 191

The French government is planning to ban students from using mobile phones in the country's primary, junior and middle schools. While children will be permitted to bring their phones to school, they will not be allowed to get them out at any time until they leave, even during breaks. The Guardian reports: Jean-Michel Blanquer, the French education minister, said the measure would come into effect from the start of the next school year in September 2018. It will apply to all pupils from the time they start school at age of six -- up to about 15 when they start secondary school. Blanquer said some education establishments already prohibited pupils from using their mobiles. "Sometimes you need a mobile for teaching reasons [...] for urgent situations, but their use has to be somehow controlled," he told RTL radio. The minister said the ban was also a "public health message to families," adding: "It's good that children are not too often, or even at all, in front of a screen before the age of seven." The French headteachers' union was skeptical that the ban could be enforced.

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