- On The Decline In US Strategic Thinking And The Creation Of False Stereotypes
On The Decline In US Strategic Thinking And The Creation Of False Stereotypes
Authored by Leonid Savin via OrientalReview.com,
In early January 2020, the RAND Corporation published its latest research report on Russia entitled “Russia’s Hostile Measures. Combating Russian Gray Zone Aggression Against NATO in the Contact, Blunt, and Surge Layers of Competition”.
The report is made up of four chapters:
1. Russian hostile measures in every context;
2. The evolution and limits of Russian hostile measures;
3. Gray zone cases and actions during high-order war; and
4. Deterring, preventing, and countering hostile measures.
There are also two appendices:
1) An evolutionary history of Russia’s hostile measures; and
2) Detailed case studies of Russia’s use of hostile measures.
By the headings alone, it is possible to gauge the kind of psychological effect that the authors of the monograph wanted it to have. They clearly wanted to say that Russia as a political entity is aggressive – it has been that way throughout history and it will continue to be so in the future – and it is therefore vital to prevent such aggression in a variety of ways.
It is also stated that the report was sponsored by the US Army as part of the project “Russia, European Security, and ‘Measures Short of War’” and that the research and analysis was conducted between 2015 and 2019. The purpose of the project was “to provide recommendations to inform the options that the Army presents to the National Command Authorities to leverage, improve upon, and develop new capabilities and address the threat of Russian aggression in the form of measures short of war.” In addition, the report was reviewed by the US Department of Defense between January and August 2019, and the RAND Corporation conducted seminars in European NATO member countries as part of the project. Notably, one of the first events was held in February 2016 at Cambridge University, which has become a kind of hub for visiting experts from other countries.
From a scientific perspective, the report’s authors adhere to the classical American school – Kremlinologist George Kennan and his concepts are mentioned, as is Jack Snyder, who coined the term “strategic culture” on the basis of nuclear deterrence. The sources referred to in the footnotes are also mostly American, with the exception of a few translated texts by Russian authors (both patriots and liberal pro-Westerners) and official government bodies. But, on the whole, the report is of rather poor scientific value.
Two interrelated topics are discussed in the first chapter that, over the last five years, the West’s military and political communities have steadfastly associated with Russia – the grey zone and hybrid warfare. It is clear that these phrases are being used intentionally, as is the term “measures”, since Western centres are trying to use the terminological baggage of the Soviet past alongside their own modern concepts, especially when it refers to military or security agencies (the term “active measures” was used by the USSR’s KGB from the 1970s onwards). It is noted that NATO officially began to use the term “hybrid warfare” with regard to Russia following the events in Crimea in 2014.
Examples given of active measures during the Cold War include: assassination (the murder of Stepan Bandera); destabilisation (training Central and South American insurgents with Cuba in the 1980s); disinformation (spreading rumours through the German media that the US developed AIDS as a biological weapon; disseminating information about CIA sabotage efforts); proxy wars (Vietnam, Angola); and sabotage (creating panic in Yugoslavia in 1949).
Although America’s involvement in such techniques was more sophisticated and widespread (from establishing death squads in Latin America and supporting the Mujahideen in Afghanistan by way of Pakistan to the Voice of America radio programmes and governing remotely during riots in Hungary and Czechoslovakia) and certain facts about the work of Soviet intelligence agencies are well known, the examples cited of measures taken by the USSR are not backed up by authoritative sources.
Russia’s hostile measures in Europe
Other methods for influencing the report’s target audience are noticeable, and these have been used before to create a negative image of Russia. These include a comparison with the actions of terrorist organisations: “the shock and awe generated by the blitzkrieg-like success of Russia in Crimea and the Islamic State in Iraq generated considerable analytic excitement. A few early accounts suggested that Russia had invented a new way of war” (p. 6).
According to the authors, the West had already clearly decided what to call Russia’s actions in 2016. With that in mind:
“– Gray zone hostilities are nothing new, particularly for Russia.
– Russia will continue to apply these tactics, but its goals and means are limited.
– Deterring, preventing, or countering so-called gray zone behavior is difficult” (p. 7).
The report also states that many articles on the subject written in 2014 and 2015 contained overly exaggerated value judgements, but, in 2017, analyses of the grey zone and hybrid warfare shifted towards a balanced and objective view of Russian power.
This should also be queried, because a relatively large number of reports and papers on similar topics have been published since 2017. Even the US national defence and security strategies had a blatantly distorted view of both Russia and other countries.
The only thing one can possibly agree with is the coining of the new term “hybrid un-war”, which emerged from debates in recent years. It’s true that Russia is employing certain countermeasures, from modernising its armed forces to imposing counter sanctions, but many of these are in response to provocative actions by the West or are linked to planned reforms. Evidently, the authors understand that it will be difficult to make unfounded accusations, so they are covering themselves in advance by choosing a more suitable word. Against the general backdrop, however, the reference to an “un-war” seems rather vague.
It should be noted that the first appendix contains a list of academic literature on Soviet and Russian foreign policy that supposedly backs up the authors’ opinions on the methods of political warfare being carried out by Russia (and the USSR before it). Among the most important sources are declassified CIA reports and assessments, along with similar files from the US National Security Archive that were posted online by staff at George Washington University. Needless to say, the objectivity of documents like these is rather specific.
The section on the institutionalisation and nature of Russian hostile measures is interesting. The authors point out that Russia has an existential fear of NATO and the West as a whole because it has been threatened by external invasion for centuries. The timeline begins in the 13th century with the Mongol invasion that ended with the destruction of Moscow, and it finishes with Germany’s invasion of the USSR and the deaths of 20 million Russians. Interestingly, the 20th century also includes the North Russia intervention by the US and its allies. Such selectivity is surprising, as if there had been no aggression from the Teutonic Order or other wars prior to the 13th century. The 18th century is excluded from the list entirely, yet it was a pivotal era for the Russian state (the Great Northern War, the wars with the Persian and Ottoman empires, the Russo-Swedish War and so on), when numerous external challenges had to be met.
But the report then mentions NATO’s expansion to the East and America’s use of soft-power methods, including the organisation of colour revolutions in the post-Soviet space, where there were Russian client governments. Although it says in justification that NATO never threatened Russia, it emphasises that NATO’s physical infrastructure and military capabilities forced Moscow to include it on its list of national security threats.
In addition to this, the RAND experts point out Russia’s worry over internal revolt. The report once again provides a selective timeline that includes the Decembrist revolt, colour revolutions in the post-Soviet space, and even the war in Syria, which is described as “a long-standing Russian client state” (p. 15).
It then goes on to paraphrase Dmitri Trenin, director of the Carnegie Moscow Centre, who said that the Kremlin fears US intervention and the Russian General Staff fears NATO intervention. It therefore follows that “[t]he perception of a threat influences behavior, even if the perceived threat is overblown or nonexistent. Whether or not one believes that worry, or even paranoia, is the primary driver behind current Russian actions in the gray zone and its preparations for high-order war, this essential element of Russian culture demands an objective and thoughtful accounting” (p. 16).
Following this is a description of the security apparatus that carries out hostile measures. A line is drawn between the NKVD, KGB and FSB, and these are also joined by the SVR, for some reason. The armed forces are considered separately, with a focus on the GRU and special forces. And that’s it. There is no mention of the police, the public prosecutor’s office and the investigative committee or even the FSO. It is even a bit strange not to see “Russian hackers” and private military companies, which are a regular feature of such reports. It is also noted that current actions are nothing other than a “continuity of the Brezhnev Doctrine” (p. 21), which only exists in the imaginations of Western experts. The authors themselves acknowledge further on that this is how speeches by Brezhnev and Gromyko, quoted in Pravda in 1968, were interpreted by Western observers.
On the next page, it claims that neo-nationalism is an ideological tool for Russian foreign policy! And there is another rather interesting passage further on, when the authors of the report confuse former Russian Foreign Minister Igor Ivanov with former Russian Defence Minister Sergey Ivanov. Although they mention Igor Ivanov’s name in the context of grand strategy, foreign policy and neo-nationalism in Russia, they then refer to “Ivanov’s own 2003 military doctrine and reform plan” (p. 23). And this is given as confirmation of the aggressive neo-nationalist strategy that, according to the authors, is associated with Igor Ivanov! If the authors had been more attentive, they would have discovered that, at that time, Igor Ivanov was serving as the head of the foreign ministry, while the defence minister was Sergey Ivanov. Especially as they make reference to an article by a Western author, who, in 2004, analysed the Russian defence ministry’s reform and uses the right name (Matthew Bouldin, “The Ivanov Doctrine and Military Reform: Reasserting Stability in Russia,” Journal of Slavic Military Studies, Vol. 17, No. 4, 2004). It seems that, when compiling the report, they simply copied an additional footnote to lend extra weight, but it was the wrong one.
It goes without saying that such a large number of errors undermines the entire content of the report. And this raises a logical question: what was the authors’ intention? To earn their money by throwing a bunch of quotes together or to try and understand the issues that exist in relations between Russia and the West?
Judging by the number of mistakes and biased assessments, it was most probably the former. There are also traces of a clear strategic intent, however.
This can be seen in the description of the grey zone where Russia is actively operating, because the case studies provided as examples of Russia’s activities in the grey zone are its bilateral relations with Moldova (1990–2016), Georgia (2003–2012), Estonia (2006–2007), Ukraine (2014–2016), and Turkey (2015–2016). According to the authors, then, the grey zone is independent sovereign states, including NATO members! And virtually all of them, with the exception of Turkey, are former post-Soviet countries that are in the sphere of Russia’s natural interests.
As for the methods that Russia allegedly employs, these are all heaped together in a big pile: economic embargoes, which have been imposed by Moscow for various reasons (the ban on wine imports from Moldova and Georgia, for example), support of certain political parties, compatriot policies, and diplomatic statements and sanctions (in relation to Turkey, for example, when a Russian plane was shot down over Syria).
Eventually, the report states: “Our five cases may not stand alone as empirical evidence, but they are broadly exemplary of historical trends. […] Russia applies hostile measures successfully but typically fails to leverage tactical success for long-term strategic gain” (p. 49).
From this, the report concludes that:
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Russia consistently reacts with hostile measures when it perceives threats.
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Both opportunism and reactionism drive Russian behavior.
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Russian leaders often issue a public warning before employing hostile measures.
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Short- and long-term measures are applied in mutually supporting combination.
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Diplomatic, information, military, and economic means are used collectively.
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Russia emphasizes information, economic, and diplomatic measures, in that order.
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All arms of the government are used to apply hostile measures, often in concert.
In their description of Russia’s actions, the RAND experts even go so far as to include resistance to the Wehrmacht in occupied Soviet territories during the Second World War, including the partisan underground, as an example of “Soviet hostile measures”, when “Soviet agents aggressively undermined the German economic program […] in the western occupied zone”! (p. 53). The report then goes on to say: “By the time the Soviets shifted to the counteroffensive, they had generated a massive, multilayered hostile-measures apparatus tailored to complement conventional military operations” (p. 53) and “[f]ull-scale sabotage, propaganda, and intelligence operations continued apace throughout the war” (p. 54). Immediately after this ludicrous statement is a paragraph on the actions of the KGB and GRU against insurgents in Afghanistan. This is then followed by an attempt to predict what Russia will do in the future.
So, from the report we can draw the following conclusions.
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First, it is unclear why the “hostile measures” described in the report include fairly standard practices from international experience that are also used in the West as democratic norms.
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Second, the report contains a number of distorted facts, errors, incorrect assessments and conclusions that undoubtedly undermine its content.
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Third, such specific content with attempts to manipulate history is clearly intended to further tarnish Russia’s image, since it will be quoted by other researchers and academics in the future, including by way of mutual citation to reinforce credibility.
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Fourth, if the US command and NATO are going to perceive this mix of speculation, phobias and value judgements as basic knowledge, then it really could lead to a further escalation, although the hostile measures will be employed by the US and NATO.
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Fifth, the report clearly adheres to the methodology of the liberal interventionist school, which is somewhat strange for a study that claims to be a guide to action for the military, since the US military usually adheres to the school of political realism, in accordance with which the interests of other states must be respected. And since Russia’s sphere of interests is included in the grey zone, this suggests attempts to deny Russia its geopolitical interests.
Tyler Durden
Sat, 02/01/2020 – 23:30 -
- Japan Set To Release 1.2 Million Tons Of Radioactive Fukushima Water Into Ocean, Causing "Immeasurable Damage"
Japan Set To Release 1.2 Million Tons Of Radioactive Fukushima Water Into Ocean, Causing “Immeasurable Damage”
Just in case a global viral pandemic, whose sources are still unclear and apparently now include human feces, wasn’t enough, the global outrage meter is about to go “up to eleven” with Japan now set to flood the world’s oceans with radioactive water.
In a move that will surely prompt a furious response from Greta Thunberg’s ghost writers (unless of course it doesn’t fit a very narrow agenda), a panel of experts advising Japan’s government on a disposal method for the millions of tons of radioactive water from the destroyed Fukushima nuclear plant on Friday recommended releasing it into the ocean. And, as Reuters notes, based on past practice it is likely the government will accept the recommendation.
Tokyo Electric, or Tepco, has collected nearly 1.2 million tonnes of contaminated water from the cooling pipes used to keep fuel cores from melting since the plant was crippled by an earthquake and tsunami in 2011. The water is stored in huge tanks that crowd the site.
Tepco expects the wastewater storage tanks at the Fukushima Daiichi nuclear plant to run out of capacity around 2022 The panel under the industry ministry came to the conclusion after narrowing the choice to either releasing the contaminated water into the Pacific Ocean or letting it evaporate – and opted for the former, even though it means that Japan’s neihgbors will now have to suffer the consequences of the biggest nuclear disaster since Chernobyl.
Previously the committee had ruled out other possibilities, such as underground storage, that lack track records of success. At the meeting, members stressed the importance of selecting proven methods and said “the government should make clear that releasing the water would have a significant social impact.”
Japan’s neighbor, South Korea, has for much of the past decade retained a ban on imports of seafood from Japan’s Fukushima region imposed after the nuclear disaster and summoned a senior Japanese embassy official last year to explain how the Fukushima water would be dealt with. They will soon have a very unsatisfactory answer.
The build-up of contaminated water at Fukushima has been a major sticking point in the clean-up, which is likely to last decades, especially as the Olympics are due to be held in Tokyo this summer with some events less than 60 km from the wreck plant and the Fukushima seclusion zone which will remain uninhabitable for centuries. According to Reuters, athletes are planning to bring their own radiation detectors and food to the Games.
In 2018, the plant operator, TEPCO, apologized after admitting it lied about the cleanup efforts and that its filtration systems had not removed all dangerous material from the water – and the site was running out of room for storage tanks. Among the ludicrous proposals concocted to contain the radioactive water was an idea straight out of Game of Thrones – an underground ice wall. It did not work.
As a result, having given up on any containment approaches, Tokyo will now literally flood the world with radioactive water. Perhaps in an attempt to mitigate the angry outcry from a world that is suddenly obsessed with a clean environment, Japan said it plans to remove all radioactive particles from the water except tritium, an isotope of hydrogen that cannot be effectively removed with current technology. While it is unclear just how Japan plans on “filtering” out radiation, we with them the best of luck with that particular PR campaign.
Radioactive water at the Fukushima Daiichi nuclear power plant in Fukushima prefecture. Picture taken January 15, 2020/Reuters “Compared to evaporation, ocean release can be done more securely,” the committee said, pointing to common practice around the world where normally operating nuclear stations release water that contains tritium into the sea.
Needless to say, even the locals disagree: releasing treated water into the ocean would do “immeasurable damage” to a fishing sector that has tried hard to get back to work, an industry source in the Fukushima Prefecture city of Iwaki said. The evaporation proposal has fueled similar worries in farming and ranching circles, according to a source in the rice-growing business.
“The central government should understand the situation on the ground” and thoroughly consider its response, the source said. Even so, it appears that despite “considereding the situation on the ground”, the government is still set to go ahead with the discharge anyway.
Why? The reason may also be the simplest one – money. According to the Nikkei, discharging the water into the Pacific is generally seen by experts as the most logical option. Evaporation was successfully used for cleanup after the 1979 Three Mile Island disaster in the U.S. But releasing water into the sea would cost less and, by ministry estimates, cut radiation exposure by more than half compared with evaporation. Of course, this is the same ministry which for months lied about the full extent of the fallout caused by the Fukushima disaster. Surely this time they are telling the truth.
The recommendation needs to be confirmed by the head of the panel, Nagoya University Professor Emeritus Ichiro Yamamoto, and submitted to the government at a later date, which has not been set, but a hard deadline looms as the government is running out of time to make a decision. The roughly 1,000 tanks on the Fukushima Daiichi site held 1.18 million tons of water as of Dec. 12, not far from the total capacity of 1.37 million. Plant operator Tokyo Electric Power Co. Holdings expects to run out of space around 2022.
Even before then, the most important task in decommissioning the plant – removing spent nuclear fuel – is set to begin in 2021 at reactor No. 2. The tanks take up space that will be needed for this work.
Tyler Durden
Sat, 02/01/2020 – 23:00 - How Government And Media Are Prepping America For A Failed 2020 Election
How Government And Media Are Prepping America For A Failed 2020 Election
Authored by Whitney Webb via MintPressNews.com,
As World War II drew to a close in Europe, British philosopher Bertrand Russell wrote that “neither a man nor a crowd nor a nation can be trusted to act humanely or to think sanely under the influence of a great fear.”
Though numerous examples in the post-World War II era have proven Russell’s point, perhaps one of the best examples was the U.S. public’s willingness to swallow lie after lie about Saddam Hussein’s Iraq due to the climate of fear that followed the September 11 attacks. Those lies, propagated by dubious intelligence, government officials and a compliant media, resulted in catastrophes – large and small, both abroad and at home.
Today, an analogous narrative is being crafted by many of the same players – both in media and government – yet it has avoided scrutiny, even from independent media.
Over the past several months and with a renewed zeal in just the last few weeks, anonymous intelligence officials, dubious “experts” and establishment media outlets have crafted a narrative about the coming “chaos” of the 2020 election, months before it takes place. Per that narrative, certain state actors will use specific technologies to target the “American mind” in order to undermine the coming presidential election. The narrative holds that those efforts will be so successful that the U.S. will never recover as a democracy.
Though these anonymous government sources and their stenographers have already named the countries who will be responsible and the technologies they will use, they also admit that no evidence yet exists to back up these claims, meaning they are — at best — pure speculation.
Headlines such as “Hackers Are Coming for the 2020 Election — And We’re Not Ready,” “Basically Every US National Security Leader Is Warning About Foreign Interference In The 2020 Election,” and “U.S. intel agencies: Russia and China plotting to interfere in 2020 election” have become increasingly common, despite no available evidence, as have warnings that the American public is defenseless against the old scourge of “fake news” and the new scourge of “deep fakes.” Some media reports have gone so far to say that actual foreign meddling isn’t even necessary as merely the fear of foreign meddling could be enough to upend the American political system beyond repair.
Historically, the goal of such fear-inducing narratives has been the trading of civil liberties for increased security, or rather, the appearance of increased security. Yet, when the need for security is felt due to a fear that is based on government-driven speculation and not on evidence, the goal of that narrative is not about protecting the public from a real, tangible threat but instead about the consolidation of power by the very groups responsible for crafting it — in this case, the intelligence community and other key players in the national security state.
However, what is particularly odd about this narrative surrounding imminent “chaos” and meddling in the upcoming 2020 election is the fact that, not only have the instruments of said meddling been named and described in detail, but their use in the election was recently simulated by a company with deep ties to both U.S. and Israeli intelligence. That simulation, organized and run by the Israeli-American company Cybereason, ended with scores of Americans dead, the cancellation of the 2020 election, the imposition of martial law and a spike in fear among the American populace.
Many of the technologies used to create that chaotic and horrific scenario in the Cybereason simulation are the very same technologies that U.S. federal officials and corporate media outlets have promoted as the core of the very toolkit that they claim will be used to undermine the coming election, such as deep fakes and hacks of critical infrastructure, consumer devices and even vehicles.
While the narrative in place has already laid the blame at the feet of U.S. rival states China, Russia and Iran, these very technologies are instead dominated by companies that are tied to the very same intelligence agencies as Cybereason, specifically Israeli military intelligence.
With intelligence agencies in the U.S. and Israel not only crafting the narrative about 2020 foreign meddling, but also dominating these technologies and simulating their use to upend the coming election, it becomes crucial to consider the motivations behind this narrative and if these intelligence agencies have ulterior motives in promoting and simulating such outcomes that would effectively end American democracy and hand almost total power to the national security state.
Media, intelligence foreshadow tech-powered doom for 2020
Even though the 2020 U.S. election is still months away, a plethora of media reports over the past six months (and even before then) have been raising concern after concern about how the U.S. election is still so vulnerable to foreign meddling that such meddling is essentially an inevitability.
Part of the reason for the recent pick-up in fear mongering appears to have been the release of a joint statement issued by key members of the Trump administration last November. That statement, authored by Attorney General Bill Barr, Defense Secretary Mark Esper, acting DHS Secretary Kevin McAleenan, acting Director of National Intelligence Joseph Maguire, FBI Director Christopher Wray, NSA Director Gen. Paul Nakasone, and Cybersecurity and Infrastructure Security Agency (CISA) Director Christopher Krebs, claimed that foreign interference in 2020 was imminent despite admitting that there is no evidence of interference having taken place:
Our adversaries want to undermine our democratic institutions, influence public sentiment and affect government policies. Russia, China, Iran, and other foreign malicious actors all will seek to interfere in the voting process or influence voter perceptions. Adversaries may try to accomplish their goals through a variety of means, including social media campaigns, directing disinformation operations or conducting disruptive or destructive cyber-attacks on state and local infrastructure.
While at this time we have no evidence of a compromise or disruption to election infrastructure that would enable adversaries to prevent voting, change vote counts or disrupt the ability to tally votes, we continue to vigilantly monitor any threats to U.S. elections (emphasis added).”
Despite the key caveat of there being no evidence at the time the statement was issued, media reports used the statement to claim that foreign interference in 2020 was imminent, such as in these reports from BuzzFeed, ABC News, and Newsweek.
In addition to the reports that have cast the involvement of state actors — namely Russia, Iran and China — as assured despite no evidence, other reports have made the claim that this allegedly imminent interference will inevitably be successful, largely due to claims that the tactics used will rely heavily on technology that the U.S. can’t hope to successfully counter. CSO Online, an online news outlets that provides news, analysis and research on security and risk management, recently warned that “fixing America’s voting and election infrastructure problems is a long-term proposition, one that won’t be fixed in time for the election in November” while the New York Times warned of imminent chaos and that “stealthier” malevolent foreign actors had already created the foundation for “an ugly campaign season marred by hacking and disinformation.” Wired claimed last year that U.S. election security “is still hurting at every level.”
A trainer holds a booklet during an exercise for local election officials to simulate 2020 election scenarios in Springfield, Va. Dec. 16, 2019. Alex Brandon | AP
In another example, Rolling Stone published an article earlier this month with the headline “Hackers Are Coming for the 2020 Election — And We’re Not Ready,” which claims that “the reality is that: “We’ve made progress since the last election — but we’re much less secure than we should be.” The article goes on to say that claim that the goal isn’t necessarily to hack voting machines or change results, but “to merely create the impression of an attack as a way to undermine our faith in the electoral process.”
It continues:
The target is the minds of the American people,” says Joshua Geltzer, a former counterterrorism director on the National Security Council. “In some ways, we’re less vulnerable than we were in 2016. In other ways, it’s more.” Nearly every expert agrees on this: The worst-case scenario, the one we need to prepare for, is a situation that causes Americans to question the bedrock of our democracy — free and fair elections.”
Well before this type of rhetoric made its way into the U.S. media, Israeli intelligence-linked tech firm Cybereason claiming in a release on its website that “messing with a voter’s mind” would have a bigger impact than changing vote totals, even before the 2016 election. That release, published by Cybereason prior to the last presidential election, was authored by the company’s CEO, Lior Div, who used to lead offensive hacking operations against nation-states for Israeli military intelligence.
Notably, of all of these media reports, there is a clear consensus that one of the main tactics that will soon be used to meddle in the coming U.S. election will be the use of so-called “deep fakes.” Deriving its name from a combination of “deep learning” and “fake,” deep fakes involve video and audio that has been manipulated using artificial intelligence (AI) to create media that appears to be authentic, but is not. Concern about its use in the upcoming election has spurred not only a wealth of media reports on the matter but has prompted both the U.S. military and Congress to take action to limit its potential misuse.
One thing that stands out about the media narrative regarding election meddling and deep fakes is that several news organizations have published articles that state that deep fakes will be used to undermine the 2020 election, as opposed to stating that they could be used or that they are a phenomenon worthy of attention (though some reports have taken this more measured approach).
The reason for this level of confidence may owe to statements made by prominent U.S. intelligence officials last year, including those made by Dan Coats, the former Director of National Intelligence (DNI), who claimed in the 2019 Worldwide Threat Assessment for the U.S. Intelligence Community that deep fakes and other hi-tech forms of fake media would be used to disrupt the 2020 election. Coats specifically stated:
Adversaries and strategic competitors probably will attempt to use deep fakes or similar machine-learning technologies to create convincing—but false—image, audio, and video files to augment influence campaigns directed against the United States and our allies and partners.”
Since Coats made the warning, numerous media reports have promoted the concern with little scrutiny, representing just one of the numerous times in U.S. history where narratives first authored by U.S. intelligence are subsequently promoted heavily by U.S. media, even when the claim made by intelligence officials is speculative, as it is in this case. Indeed, the narratives being promoted with respect to the 2020 election involve many of the same intelligence agencies (American and Israeli) and media outlets who promoted claims that were later proven false about “weapons of mass destruction” in Iraq prior to the 2003 invasion, among other pertinent examples.
Notably, deep fakes figured prominently and was the tool most used by malevolent hackers in Cybereason’s 2020 election simulation, which saw both video and audio-only deep fakes used to spread misinformation on national and local TV channels in order to impersonate police officers and election officials and to create fake bomb threats by posing as the terror group Daesh (ISIS). Cybereason also happens to be a partner of the organization funding the most well-known creator and producer of deep fakes in the world, an organization that — much like Cybereason itself — is openly tied to Israeli intelligence.
Aside from deep fakes, other technologies weaponized in Cybereason’s election simulation have also been the subject of several media reports, such as the hacking of Internet of Things (IoT) devices and appliances and even the hacking of vehicles that have some form of internet connectivity. In the Cybereason simulation, IoT hacks were used to cut power to polling stations and disseminate disinformation while vehicles were hacked to conduct terror attacks against civilians waiting in line to vote, killing several and injuring hundreds.
Most media reports have claimed that these technologies will be part of the coming “explosion” in cyber warfare in 2020 and do not specifically link them to imminent election meddling. Others, however, have made the link to the election explicit.
Naming the culprits in advance
In addition to the apparent consensus on how foreign meddling will occur during the 2020 election, there is also agreement regarding which countries will be responsible. Again, this is largely based on statements made by U.S. national security officials. For instance, the joint statement issued last November by the DOJ, DOD, DHS, DNI, FBI, NSA, and CISA regarding 2020 election security, states that “Russia, China, Iran, and other foreign malicious actors all will seek to interfere in the voting process or influence voter perceptions” before adding “at this time we have no evidence.”
Similarly, the 2019 Worldwide Threat Assessment for the U.S. Intelligence Community, written by then-Director of National Intelligence Dan Coats, names these same three countries in relation to imminent 2020 election interference and states that their interference in the 2020 election is “almost certain.” The assessment adds the following about each nation:
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Russia: “Russia’s social media efforts will continue to focus on aggravating social and racial tensions, undermining trust in authorities, and criticizing perceived anti-Russia politicians.”
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China: “China will continue to use legal, political, and economic levers—such as the lure of Chinese markets—to shape the information environment. It is also capable of using cyber attacks against systems in the United States to censor or suppress viewpoints it deems politically sensitive.”
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Iran: “Iran, which has used social media campaigns to target audiences in both the United States and allied nations with messages aligned with Iranian interests, will continue to use online influence operations to try to advance its interests.”
Coats’ assessment was enough to spawn numerous stories on the imminent threat that these three nations pose to the 2020 election, with headlines such as “U.S. intel agencies: Russia and China plotting to interfere in 2020 election.”
The vast majority of warnings regarding future election interference have come from U.S. intelligence officials with a dubious record of trustworthiness and a history of using the media to spread propaganda and disinformation, most famously through Operation Mockingbird. Most — if not all — of the recent and numerous articles on imminent interference rely heavily on claims made by the two aforementioned government documents, documents crafted by U.S. intelligence agencies for public consumption, as well as claims made by anonymous U.S. officials.
A screenshot from the 2019 National Threat Assessment lists Russia, China and Iran as primary threats to the United States
A recent New York Times article, for example, titled “Chaos Is the Point’: Russian Hackers and Trolls Grow Stealthier in 2020,” is based almost entirely on “interviews with dozens of officials and experts,” though the only government official named in the article is Shelby Pierson, the intelligence community’s election threats executive. The most quoted experts named in the article are Ben Nimmo, formerly of the hawkish, NATO-funded Atlantic Council and now with Graphika, and Laura Rosenberger, director of the neoconservative-created Alliance for Securing Democracy. The article nonetheless cites “American officials” and “current and former officials” several times to make claims about imminent election interference that paint a bleak picture of the current election season.
A recent article from The Hill relies on the acting head of DHS, Chad Wolf, as its only source, citing Wolf’s claim that “we fully expect Russia to attempt to interfere in the 2020 elections to sow public discord and undermine our democratic institutions” amid other warnings that Wolf gave about Chinese and Iranian cyber threats to U.S. elections. Other articles, including one titled “Russia, China plan to adjust their tactics to hack, influence 2020 elections” cite only Shelby Pierson of the U.S. intelligence community as its source for that headline’s claim. Another titled “Russia isn’t the only threat to 2020 elections, says U.S. intel” cites only anonymous U.S. intelligence officials, as the headline suggests.
Though Russia and China have consistently been named as the most likely election meddlers, reports have also been drumming up the likelihood that Iran will emerge as 2020’s foreign meddler of choice, especially in the months prior to and weeks after the killing of Iranian General Qassem Soleimani by the Trump administration. A recent “informal poll” conducted by the Washington Post asked hawkish think tank fellows, employees at companies like Raytheon and current and former federal officials if Iran would likely retaliate against the U.S. via cyberattack. The Post ran the results of the poll under the headline “Get ready for serious cyberattacks from Iran, experts say.”
Despite the media’s numerous warnings of imminent and “serious” cyber-retaliation from Iran, the only cyberattack attributed to the country after Soleimani’s death was the vandalism of the Federal Depository Library Program website, a rather benign act that was nevertheless blasted across headlines such as “US government website hacked with pro-Iranian messages, image of bloodied Trump.” The U.S. government is quoted in that article as saying that “At this time, there is no confirmation that this was the action of Iranian state-sponsored actors.”
Also notably absent from media reports is the fact that WikiLeaks revealed in 2017 that the CIA had stockpiled a library of “stolen” cyberattack techniques produced in other nations, including Russia and Iran. Those revelations, part of the Vault 7 release, revealed that the CIA’s UMBRAGE group was capable of “misdirect[ing] attribution [for cyberattacks actually done by the CIA] by leaving behind the ‘fingerprints’ of the groups that the attack techniques were stolen from.” In other words, the CIA was more than capable of conducting “false flag” cyber attacks and blaming them on foreign actors.
Notably, one of the viruses being blamed on Iran for cyberattacks targeting the U.S. ahead of the 2020 election — called Shamoon — was “stolen” by the CIA’s UMBRAGE and cited in the WikiLeaks release.
Conflict of interest-ridden Microsoft “defends democracy”
Last year saw the tech behemoth Microsoft join the effort to blame foreign state actors, specifically Iran, for cyberattacks against the U.S. This helped to bolster assertions that had largely originated with a handful of U.S. intelligence officials and hawkish, neoconservative-aligned think tanks as media reports on Microsoft’s related claims treated the company as an independent private sector observer.
Yet, as MintPress investigations have revealed, Microsoft has clear conflicts of interest with respect to election interference. Its “Defending Democracy” program has spawned tools like “NewsGuard” and “ElectionGuard” that it claims will help protect U.S. democracy, but — upon closer examination — instead have the opposite effect.
Last January, MintPress exposed NewsGuard’s neoconservative backers and how special interest groups were backing the program in an effort to censor independent journalism under the guise of the fight against “fake news.” Subsequent investigations revealed the risk that Microsoft’s ElectionGuard poses to U.S. voting machines, which it claims to make more secure and how the platform was developed by companies closely tied to the Pentagon’s infamous research branch DARPA and Israeli military intelligence Unit 8200.
ElecionGuard software has since been adopted by numerous voting machine manufacturers and is slated to be used in some Democratic Primary votes. Notably, the push for the adoption of ElectionGuard software has been spearheaded by the recently created Cybersecurity and Infrastructure Security Agency (CISA), which is the federal agency tasked with overseeing election security and is headed by Christopher Krebs, a former high level Microsoft executive.
In recent months, Microsoft has also been at the center of claims that Iran attempted to hack U.S. presidential campaigns ahead of 2020 as well as claims that Iran plans to target the U.S. power grid and other critical infrastructure with cyberattacks.
Last October, Microsoft penned a blog post discussing a “threat group” it named Phosphorus that they “believe originates from Iran and is linked to the Iranian government.” The post went on to claim that Phosphorus attempted to target a U.S. presidential campaign, which later media reports claimed was President Trump’s re-election campaign. Microsoft concluded that the attempt was “not technically sophisticated” and ultimately unsuccessful, but felt compelled to disclose it and link it to Iran’s government.
Though it provided no evidence for the hack or its reasons for “believing” that the attack originated from Iran, media reports treated Microsoft’s declaration as proof that Iran had begun actively meddling in the 2020 election. Headlines such as “Iranian Hackers Target Trump Campaign as 2020 Threats Mount,” “Iran-linked Hackers Target Trump 2020 Campaign, Microsoft says”, “Microsoft: Iran government-linked hacker targeted 2020 presidential campaign” and “Microsoft Says Iranians Tried To Hack U.S. Presidential Campaign,” were blasted across the front pages of American media. None of the reports scrutinized Microsoft’s claims or noted the clear conflict of interest Microsoft had in making such claims due to its efforts to see its own ElectionGuard Software adopted nationwide.
Microsoft CEO Satya Nadella discusses 740 alleged infiltration attempts by nation-state actors at a conference in Seattle, May 6, 2019. Elaine Thompson | AP
Media reports also left out the fact that Microsoft is a major government contractor for the U.S. intelligence community and the Pentagon. Notably, the Trump campaign, which Microsoft said was the target of this attack, was later identified as the only major presidential campaign using Microsoft’s “AccountGuard” software, part of its dubious “Defending Democracy” program that also spawned NewsGuard and ElectionGuard. AccountGuard claims to protect campaign-linked emails and data from hackers.
Microsoft surfaced not long after, again claiming that Iran was maliciously targeting the United States’ civilian infrastructure. This subsequent claim was first published by Wired and later covered by other outlets. Those reports cite a single person, Microsoft security researcher Ned Moran, who claimed that an Iran-backed hacking group called APT33 was targeting the U.S. “physical control systems used in electric utilities, manufacturing, and oil refineries.”
“They’re trying to deliver messages to their adversaries and trying to compel and change their adversaries’ behavior,” Moran told Wired. Moran also stated that “Microsoft hasn’t seen direct evidence of APT33 carrying out a disruptive cyberattack rather than mere espionage or reconnaissance, it’s seen incidents where the group has at least laid the groundwork for those attacks (emphasis added).”
Cybereason helps craft the narrative
While U.S. intelligence officials and media outlets alike have been largely responsible for setting the narrative that imminent meddling will be conducted by Russia, China and Iran, key components of that narrative, particularly with respect to China and Iran, have been laid by Cybereason, a company that recently ran 2020 doomsday election simulations and that has close ties to the intelligence communities of both the U.S. and Israel.
We’re three days into 2020, and the world is already on high alert from last night’s airstrike in #Baghdad. Read our latest blog to learn more about their history of #cyber retaliation and what could be in store. https://t.co/GktqUa4iaf
— Cybereason (@cybereason) January 3, 2020
Shortly after the killing of Iranian General Qassem Soleimani earlier this month, an operation conducted in concert with Israeli intelligence, Cybereason warned that Iran could imminently retaliate with a cyber threat and quoted its own employees who explained what and how Iran would likely target in retaliation. Cybereason’s CSO Sam Curry, who actively participated in the firm’s 2020 doomsday election simulations, stated:
This means that Iran’s “forceful revenge” response is likely to be less about the flash and all about the bang. If you have connected systems that are responsible for kinetic world effects, like ICS systems and critical infrastructure around water, energy or vital services, it’s time to pay attention. Iran and the US are engaged in Cyber brinksmanship, which means that the gloves are off as Iran picks it’s targets (emphasis added).”
Cybereason also quoted visiting fellow for the National Security Institute and former advisor to the U.S. Secret Service (which participated in Cyberaeson’s election simulations), Anne Marie Zettlemoyer, who claimed that Iran could soon target Wall Street and critical U.S. infrastructure like the power grid:
An attack against the financial systems can be devastating economically and weaken the confidence and viability of markets. However, we cannot ignore the physical consequences and manifestations that can come from a cyberattack, particularly against critical infrastructure like energy and industry control systems.”
Cybereason’s claims regarding Iran’s interest in “critical infrastructure” systems likely originated with Microsoft, the claims were then parroted by the media in several reports, many of which quoted Cybereason’s Sam Curry. Curry is also a contributor to major news outlets like Forbes where he writes about Iran’s cyber warfare capabilities.
The Iranian hacking group, APT33, has been targeting industrial control systems used by power grids, manufacturing and oil refineries. Read CSO, @samjcurry‘s take on the group’s focus in @ForbesTech. https://t.co/gAl3abUvlg
— Cybereason (@cybereason) November 21, 2019
Notably, in Cybereason’s recent allegations against Iran, it states that “it’s clear that Iran has been preparing for future geopolitical conflict by gaining access to critical infrastructure and other important operations in the United States.” It backs these claims by citing an article authored by Curry for Forbes. Following Soleimani’s death, numerous media reports, including in the UK’s The Independent and ABC News, have cited Curry as an “expert” source in claiming that Iran would retaliate with cyberattacks.
Microsoft’s claims about foreign hackers and meddling — the evidence for which have never been made public but has been parroted as fact nonetheless — are frequently supported by Cybereason.
Last August, Microsoft claimed to have foiled Russian attempts at hacking two Republican-affiliated think tanks and, despite providing no evidence, Cybereason’s then-senior director of intelligence services Ross Rustici was quoted as an expert in several media reports as saying that such behavior was to be expected from Russia. In one such report, Rustici stated:
We’re very good at fighting the last war, but the Russians are very good at evolving their game. I suspect if they’re going to do a psychological operation around the elections, the way they do it will be different than what they did in 2016. How effective the defenses we’ve built for what they did in 2016 will be for those attacks is yet to be seen.”
None of the media reports quoting Rustici mentioned Cybereason’s ties to Israeli intelligence, referring to tech firms only a “Boston-based cybersecurity company” and similar variants. Cybereason’s Intelligence Group is stuffed with former and active members of U.S. and Israeli intelligence services and has released several reports about nation-state hacking with a focus on Russia and China.
Cybereason has also been at the forefront of claims that China has been engaged in aggressive cyberattacks against multinational companies that have also seen widespread coverage in U.S. media, despite the untransparent nature of the evidence for Cybereason’s claims.
In a story that received major coverage from outlets such as Fox News, Reuters, CNBC and others, Cybereason unveiled what it called “Operation Soft Cell,” an operation that stole mass troves of data from several global telecommunications companies. In each story, Cybereason is the sole source of the claim and declined to provide the name or location of any of the affected companies. The firm also claimed to have determined that the attack was likely perpetrated by someone “backed by a nation state, and is affiliated with China.” It further claimed to have debriefed and coordinated responses with U.S. intelligence.
In an article for Reuters, Cybereason stated that “this time as opposed to in the past we are sure enough to say that the attack originated in China” while Cybereason separately told CyberScoop that it had “found hacking tools such as a modified web shell and a remote access trojan that are commonly associated with, but not unique to, Chinese hackers.” Despite the incongruity, media reports laid the blame squarely on China, as seen in headlines such as “Chinese spies have been sucking up call records at multinational telecoms, researchers say.”
Prior to uncovering Operation Soft Cell, Cybereason had warned on its blogs in the months and years prior that China would imminently target U.S. companies. The revelation of Operation Soft Cell — which originated exclusively with Cybereason — has been used to build the case that China is openly engaged in cyberwarfare against its rival states, like the United States, and targeting “democracy itself.”
Best Known Deep Fake Creator is Funded by Israeli Intelligence
While the media, and even Cybereason itself, have helped lay the foundation to blame specific state actors for 2020 election meddling well ahead of the fact, it is worth revisiting Cybereason’s “Operation Blackout” election simulation and the tactics used by the “bad actors” in that scenario.
That simulation, discussed in detail in the first installment of this series, saw the weaponization of specific technologies, namely deep fakes, hacks of Internet of Things (IoT) devices and hacks of vehicles, in order to target the 2020 U.S. election, resulting in the cancellation of the election and the imposition of martial law.
Given the current narrative regarding what state actors are likely to meddle in the 2020 election — namely Russia, China and Iran — and the tactics they will allegedly use, it is important to explore the sources of the technologies weaponized per that narrative as well as in “Operation Blackout.”
Indeed, if there is any clear overlap between the creators of those technologies and the state actors being blamed in advance for their imminent use, it would certainly lend credibility to the claims promoted by U.S. intelligence, the media and companies like Microsoft and Cybereason.
Yet, upon closer examination, it becomes clear that the companies and state actors most involved in developing these technologies are the very ones claiming that Russia, China and Iran will use them to undermine the 2020 election.
Take for instance the use of deep fakes. Not only have numerous media reports focused on how deep fakes will be used to meddle in the 2020 elections, but Cybereason’s doomsday election simulation saw “bad actors” rely heavily on their use to spread disinformation and even make fake bomb threats. While much has been said of the coming election and deep fakes, remarkably few reports have bothered to look at the company best known for creating viral deep fakes.
Canny AI has garnered considerable media attention over the past few years for its persuasive deep fake videos that have frequently gone viral. In the last year alone, the tech firm’s viral deep fakes have included a controversial video of Mark Zuckerberg where the Facebook co-founder appears to be saying “Imagine this for a second: One man, with total control of billions of people’s stolen data, all their secrets, their lives, their futures,” as well as a video showing Richard Nixon giving a speech he never actually gave. More recently, Canny AI was behind the viral videos immediately prior to the 2019 U.K. general election that appeared to show Jeremy Corbyn and his rival Boris Johnson endorsing each other and another video that showed world leaders singing John Lennon’s “Imagine”:
Oddly, many of the media reports that discuss these viral videos fail to mention the role of Canny AI in creating these viral deep fakes and instead only mention the organization or artists with whom Canny AI partnered to create them. For instance, the Corbyn-Johnson videos were reported to have been produced by the group Future Advocacy and artist Bill Posters, but it was actually Canny AI that created those videos for that group. Similarly, the Nixon Speech deep fake was reported by several outlets as having been solely created by MIT’s Center for Advanced Virtuality. However, the Boston Globe noted that “the [MIT] team worked with Canny AI, an Israeli company that does Video Dialogue Replacement, and Respeecher, a Ukrainian startup specializing in speech-to-speech synthetic voice production” to create the video.
The Zuckerberg deep fake that Canny AI created led to lots of positive press for the company, with several media reports dubbing them as the company using “deep fakes for good” and that uses the controversial technology “responsibly.” The Zuckerberg deep fake has been cited as one of the main drivers behind Facebook’s new “deep fake” policy, which only bans some deep fake videos and has been criticized by U.S. lawmakers as insufficient. Notably, neither Facebook nor Facebook-owned Instagram ever took down Canny AI’s deep fake of Zuckerburg.
Given the concern over deep fakes in relation to the coming election and Canny AI standing out as the main producer of deep fakes that have gone viral over the past year, it is important to point out that Canny AI has ties to a state actor with a history of election meddling: the state of Israel.
Indeed, Canny AI is 100 percent funded by an Israeli start-up accelerator called Xcelerator, a joint venture between Tel Aviv University and Israeli intelligence agency Shin Bet (sometimes called Shabak). According to Start Up Nation Central, the Paul Singer-created organization that promotes Israeli technology start ups, Xcelerator-funded “start-ups participating in the program benefit from close mentoring from content and technology experts from the Shabak, experts from Tel Aviv University, and industry leaders. The connection to the Shabak also provides the entrepreneurs with ways to test the capabilities of their technologies and cooperation opportunities (emphasis added).”
In addition, Xcelerator is partnered not only with Israeli intelligence directly, but also with Cybereason, the very company that explored the use of deep fakes in the 2020 U.S. presidential election that saw the election cancelled and martial law declared as well as a company that itself has deep ties to Israeli intelligence. Other notable partners of Xcelerator include NEC Corp, which has intimate ties to top Cybereason investor Softbank; Check Point Technologies, which has ties to Israeli military intelligence Unit 8200; and the Israeli start-up accelerator Team8. In previous reports published by MintPress, Team8 was discussed in detail, particularly their recent hire of former director of the NSA and former head of U.S. Cyber Command Mike Rogers, and their close ties to Paul Singer’s Start Up Nation Central, which itself has deep ties to U.S. neoconservatives.
It is also worth noting that Xcelerator also backs an “anti-fake news” start-up called Cyabra, which has direct ties to Israel’s Mossad and offers its AI-driven “disinformation protection” to government agencies as well as politicians, particularly during election seasons. Two of Cyabra’s co-founders previously co-founded Psy-Group, which attempted to interfere in the 2016 U.S. election by weaponizing “fake news” and social media and later closed down its operations after U.S. government scrutiny into its activities began as part of the Mueller investigation.
Psy-Group also engaged in doxxing campaigns targeting Palesintian rights activists in the U.S. which were planned in conjunction with Ram Ben-Barak, the former deputy director of the Mossad who now advises Cyabra. Given that much of the concern ahead of the next election is related not only to deep fakes but also “fake news,” Cyabra’s rise and its clear ties to Mossad and the now defunct Psy-Group are important to note.
Furthermore, in examining the other technologies weaponized during Cybereason’s 2020 election simulation and cited in the aforementioned media narrative regarding 2020 meddling, a pattern similar to that of Canny AI emerges.
Indeed, the other technologies linked to these “bad actors” and foreign meddlers — namely hacking IoT devices and hacking vehicles — are also pioneered by companies with deep ties to Israeli military intelligence, specifically Unit 8200, and Israeli tech companies that have aggressively spied on U.S. government institutions in collusion with Israeli intelligence in the past, namely Comverse (now Verint) and Amdocs.
Hacking the Internet of Things
In Cybereason’s doomsday election simulation, another of the tactics used was the hacking of devices and appliances connected to the internet, often referred to as the Internet of Things (IoT) and which includes everything from smartphones to power grid infrastructure to city traffic lights.
While most reports on IoT hacks to date have focused on “lone wolf” or non-state-aligned actors, one company has stood out for its efforts to create a tool that would allow governments and intelligence agencies to hack these devices with ease. That company, called Toka, announced in 2018 that it planned to offer “a one-stop hacking shop for governments that require extra capability to fight terrorists and other threats to national security in the digital domain,” with “a special focus on [hacking] the so-called Internet of Things (IoT), covering tech like Amazon Echo, Nest connected home products, as well as connected fridges, thermostats and alarms.”
The Israel-based company, which raised $12.5 million within months of launching, has since been busy marketing its services to governments around the world, most recently France where it described its product portfolio as “empower[ing] governments, Intelligence, and law enforcement agencies to enhance Homeland Security with groundbreaking cyber-intelligence and operational capabilities” during an exposition in Paris last November.
Even though Toka openly markets the ability to hack private consumer devices to governments and law enforcement agencies around the world, the clear threat to privacy has gone ignored by media outlets as the company has garnered nearly no media attention since it launched nearly two years ago.
Yet, Toka is not only notable for what it offers but also for its founders and investors. Indeed, the co-founders of Toka have been described as an “all-star” team, largely because of the role of former Israeli Prime Minister and former head of Israeli military intelligence, Ehud Barak. Barak, in addition to co-founding the company, serves as its director and is also the chairman of the board of the controversial Israeli company Carbyne911, which markets software to emergency call centers in the United States. Interestingly, Cybereason’s 2020 doomsday election simulation also dealt with the hacking and weaponization of 911 call centers. Also of note is the fact that another of Carbyne911’s leadership team, former Unit 8200 commander Pinchas Buchris, is an adviser to Cybereason.
Toka’s top brass is a who’s who of former Israeli military and intelligence officials
In addition to Barak, Toka was co-founded by retired Brigadier General Yaron Rosen, former Chief of the IDF’s cyber staff, where he was “the lead architect of all [IDF] cyber activities” including those executed by Israeli military intelligence Unit 8200. Rosen, who now serves as Toka’s CEO, has stated that Toka’s technology will only be sold to countries allied with the U.S. and Israel, telling Forbes that “Russia, China and ‘other enemy countries’ would never be customers.”
Toka’s leadership and software architects are similarly tied into Israel’s national security state. Several — including the “architect” of its hacking software — previously worked for Israel’s Prime Minister’s Office and developed “offensive technologies” for Israel’s head of state and other top Toka employees and executives share numerous connections to Unit 8200, other divisions of Israeli military intelligence and Unit 8200-connected tech companies like Check Point Technologies.
Though Toka’s leadership team makes its ties to Israeli military intelligence abundantly clear, important connections also appear in examining Toka’s investors. One of the major investors in Toka is Dell technologies, one of the world’s largest technology companies that was founded by Michael Dell, a well-known pro-Israel partisan who has donated millions of dollars to the Friends of the IDF and one of the top supporters of the so-called “anti-BDS” bills that prevent publicly employed individuals or public institutions from supporting non-violent boycotts of Israel, even on humanitarian grounds. It goes without saying that a major technology company investing in a company that markets the hacking of that very technology (computers, IoT, smartphones, etc.) should be a red flag.
With a major foot in the door through its connections to Dell, whose products are used by the private and public sectors around the world, other investors in Toka again reveal its ties to Israel’s military intelligence and the same controversial Israeli tech companies that have aggressively spied on the U.S. government in the past — Amdocs and Comverse. For instance, Entrèe Capital, a venture capital fund that is one of Toka’s main investors, is managed by Aviad Eyal and Ran Achituv. The latter, who manages Entrée’s investment in Toka and sits on Toka’s board of directors, is the founder of the IDF’s satellite-based signals intelligence unit and also a former senior Vice President at both Amdocs and Comverse Infosys (Verint).
Another notable investor in Toka is the venture capital firm Andreesen Horowitz, which is advised by former Secretary of the Treasury Larry Summers, a close friend of the infamous pedophile Jeffery Epstein, whose own ties to Israeli military intelligence have been discussed in several MintPress reports. Epstein was also a close friend of Ehud Barak, co-founder and director of Toka, and invested at least $1 million in another company with close ties to Barak, Carbyne911. The remaining investors in Toka are Launch Capital, which is deeply tied to the Pritzker family — one of the wealthiest families in the U.S. with close ties to the Clintons and Obamas as well as the U.S.’ pro-Israel lobby, and Ray Rothrock, a venture capitalist who spent nearly three decades at VenRock, the Rockefeller family venture capital fund.
Unit 8200 – From Hacking Cars to Protecting Them?
Arguably the most disturbing aspect of Cybereason’s “Operation Blackout” election simulation was the hacking of vehicles that were then rammed into civilians waiting in line to vote at polling stations. In the simulation, this led to scores of dead Americans and hundreds of injuries.
As was the case with other technologies used to undermine the 2020 election in the simulation, this technology — the hacking of vehicles — is the bread and butter of an Israeli cybersecurity firm called Upstream Security that specializes in automobiles and boasts deep ties to the country’s military intelligence service.
Though vehicle hacking seemed out of left field when the 2020 election simulation took place last November, media reports about the imminent dangers of “car hacking” began to emerge just a month after the exercise took place, most of which cited a December 2019 report created by Upstream. Some of those reports have warned that car hacking could be used to undermine the coming U.S. election.
One report titled “Car Hacking Hits the Streets,” cites only Upstream’s report to claim that “In 2020, the connected-car market will reach a tipping point, with the majority of vehicles already connected to the Internet when sold in the United States, representing a large base of potential targets for attacks.” Another report, titled “New study shows just how bad vehicle hacking has gotten,” uses Upstream’s report (i.e. study) to claim that hacks of regular vehicles have exploded since 2016 and that most of the cars on U.S. roads today are vulnerable to hackers and that over 80 percent of those hacks occur remotely.
Neither report noted Upstream’s ties to Israeli military intelligence. Equally notable is the fact that both reports that covered the Upstream-written study say that only manufacturers can address the problem by partnering with a company like Upstream.
A screenshot from an Upstream promotional video
Lucky for Upstream, they have already partnered with a slew of auto manufacturers, including Hyundai, Volvo, Renault and even U.S. auto insurance giants like Nationwide, who now number among Upstream’s most important investors. The company’s original investors are Charles River Ventures, one of Cybereason’s first investors, and Israeli venture capital firm Glilot Capital.
Glilot Capital’s interest in Upstream is telling given the firm’s deep ties to Israel’s Unit 8200. Glilot was founded by two former Israeli military intelligence officers and has “a heavy focus on the cyber sector and the entrepreneurs who emerge from the elite Unit 8200,” according to the Jerusalem Post. Even the name of the firm is an homage to Unit 8200, as the unit’s main base is located in Glilot, near Herzliya.
“It’s as if Americans called a VC Fort Meade Capital [the US Army base in Maryland where the National Security Agency and the United States Cyber Command are headquartered], some VC names are meant to be symbolic, as in our case. Glilot is the home of several of the best intelligence and technology units in the IDF, it’s where we came from and it is where we find our best entrepreneurs,” Glilot Capital co-founder Arik Kleinstein told the Jerusalem Post in 2016.
Upstream is certainly the type of company that Glilot Capital is used to investing in. It was founded by two Israelis who both served in the IDF, with one of them serving in an elite intelligence unit. Upstream’s co-founders, Yoav Levy and Yonathan Appel, met while working at Check Point Technologies, the Unit 8200 alumni-founded company with deep ties to Israel’s military intelligence and military-industrial complex as well as the IoT hacking company Toka. Notably, Upstream recently partnered with the Japanese company Fujitsu, a longtime partner with Softbank — Cybereason’s main investor.
Softbank has also invested heavily in another Unit 8200-founded vehicle security start-up called Argus Cyber Security, a firm known for its numerous demonstrations showing how easy it is to hack vehicles. Argus is also backed by Nadav Zafrir, the former Unit 8200 commander who now runs Team8. Argus’ CEO Ofer Ben-Noon, a former captain in Unit 8200, told Forbes in 2014 that “Everything will be hacked in every single [car] brand. It will take time, it might be weeks, months, or a couple of years, but eventually it will happen.”
Since then, Unit 8200 alumni from Argus, Upstream and other Israeli automobile cybersecurity firms have shown media outlets around the world how much easier hacking vehicles has become in the years since Ben-Noon first made the claim. One such report from VICE includes a vehicle hacking demonstration, courtesy of a Unit 8200 alumni, and notes that “most cars today are susceptible to hacker attacks.”
Of course, Unit 8200 isn’t the only intelligence agency known to be experts at hacking vehicles. Indeed, in 2017, WikiLeaks revealed that the CIA was capable of hacking vehicles and exploring their use in committing “undetectable assassinations.”
“Bring down nations to their knees”
At the Tel Aviv Cybertech Conference in 2017, Israeli Prime Minister Benjamin Netanyahu stated the following:
Today warfare has changed dramatically…With a click of a button, you can bring down nations to their knees very rapidly if you so desire and if you’re willing to take the risks, because every system can be hacked. Our hospitals, our airplanes, our cars, our banks. The most important word here is our data banks, they can be hacked.”
Media reports and even members of the Israeli public and private sector have openly acknowledged that Israel’s intelligence apparatus — from Unit 8200 to the Mossad — remains directly linked to many of the private technology companies founded by its former members, especially in the field of cybersecurity. Though reports on the matter often praise this merging of Israel’s public and private spheres, they rarely acknowledge the documented corruption within Unit 8200, the unit’s dark past in recruiting felons and even pedophiles to join its ranks, or the danger posed by having companies directly linked to foreign intelligence being given access to the U.S. government’s most classified and sensitive systems and data.
The last omission is particularly troubling given that Israeli intelligence has not only been caught aggressively using private tech companies to spy on U.S. federal agencies and networks, but also intercepting the private communications of at least two U.S. presidents and using a notorious pedophile to sexually blackmail American politicians.
As was mentioned in the first installment of this series, Cybereason’s CEO Lior Div offers a clear example of this worrisome bridge between Israel’s public and private sector, as Div has openly stated that he views his work at Cybereason as a “continuation” of his service to Israeli military intelligence, where he led offensive cyberattacks against other nations.
Given Div’s past statements and his company’s clear ties to both Israeli and U.S. intelligence, Cybereason’s simulation of the 2020 U.S. election — which involved terrorist attacks and led to the election’s cancellation and the imposition of martial law — is highly concerning. This is particularly so considering that Cybereason’s investors have direct ties to individuals who would benefit from the election’s cancellation and also considering the clear narrative that has emerged in recent months regarding how the coming election will inevitably fall victim to tech-driven “chaos” in coming months.
The clear overlap between Cybereason’s simulation and the intelligence-driven media narrative is clear cause for concern, especially considering that the technologies that they highlight as ultimately upending the election are dominated by the very same intelligence agencies simulating and crafting that narrative.
The keyword that has been used to describe the end result of both Cybereason’s simulation and the prevailing media narrative regarding the 2020 election is “chaos,” chaos so imminent, widespread and unruly that it will shake American democracy to its core.
What has been left unsaid, however, is that a government’s solution to “chaos” is always the imposition of “order.” This means that — whatever “chaos” ultimately ensues prior to or on election day — will result in a government response that will do much more to crush freedom and undermine democracy than any act of foreign meddling has, be it real or imagined.
Tyler Durden
Sat, 02/01/2020 – 22:30 -
- Mayor Of City With 6 Million People Next To Wuhan Warns Of "Significant Increase" In Coronavirus Cases This Weekend
Mayor Of City With 6 Million People Next To Wuhan Warns Of “Significant Increase” In Coronavirus Cases This Weekend
One month into the worst viral pandemic in decades, China appears woefully unprepared to respond appropriately and decisively to a disease that has infected over 12,000 around the globe. This became obvious after several Chinese officials recently had media interview mishaps, in which their lack of knowledge about measures to contain the coronavirus were on full display, The Epoch Times reported.
On Jan. 29, the Beijing government sent a working team to Huanggang, a city with over 6.3 million people located just 30 miles east of the coronavirus epidemic in Wuhan in the Hubei province.
The team held a meeting with Tang Zhihong, chief of the city’s health commission, and Chen Mingxing, director of the city’s Center for Disease Control and Prevention (CDC). State broadcaster China Central Television (CCTV) accompanied the working team and recorded the meeting. When prompted with questions by the experts from Beijing, Tang couldn’t answer.
In the CCTV video, the Beijing experts asked the current capacity of hospitals in the city. Tang kept silent. When pressed again, Tang answered: “We have an official who is in charge of this issue.”
The experts asked what was the current number of confirmed cases in Huanggang. Tang first said it was “more than 200,” but Chen chimed in and said: “118.”
It quickly went downhill from there: the team also asked, “How many patients are being treated in the hospitals?” Both Tang and Chen didn’t answer. This angered Chinese netizens, who commented on the news segment on social media.
The next day, the Huanggang government announced that Tang has been dismissed from her position.
Then, in response to the rising wave of public outrage, on January 30 the Huanggang government announced new lockdown measures.
According to the new rule, all roads in the Huanggang municipal area would be closed at midnight Jan. 31, with physical barriers and checkpoints. No vehicles can use the roads except “those for outbreak prevention and control, medical rescue, basic needs, and emergency rescue,” while taxis will only be allowed for expectant mothers, patients of severe illness, with only a certain number of taxis are allocated to each neighborhood.
Unfortunately, these long-overdue measures are coming too late, especially in light of recent news that up to 5 million potential carriers had already left Wuhan before the city was put under quarantine.
This was confirmed by Hubei governor Wang, who said at a Jan. 29 press conference that the number of confirmed cases are quickly increasing in Huanggang and three other nearby cities—Xiaogang, Jingmen, and Xianning. He added that he was worried “Huanggang could become another Wuhan.”
Echoing this dire warning, on Friday the mayor of Huanggang said that there will be a significant increase in confirmed novelcoronavirus infection cases on Saturday and Sunday in the city, as some 600-700k people returned from Wuhan to Huanggang before the Wuhan lockdown.
And at a Jan. 30 press conference, Zhang Wenhong, leader of the outbreak response team in Shanghai, said: “Based on the current situation, this coronavirus will spread more broadly. I’m responsible for my words here and I can tell you the estimation of overseas experts are correct,” he said, without naming which experts he was referring to.
Chinese authorities only began updating the outbreak death toll since Jan. 22. But experts from the UK and Hong Kong have estimated that the true figure of infections could reach 250,000 people in Wuhan alone by Feb. 4.
All of this could have been prevented if it wasn’t for China’s notorious desire to preserve secrecy – as it did during the 2003 SARS epidemic – and avoid disclosing the facts of any adverse situation to avoid alarming the population.
The outbreak was first reported by Chinese authorities on Dec. 31, 2019, but the disease first emerged in the city of Wuhan in early December. It has since spread to all Chinese provinces and regions, as well as more than 20 countries around the world. And with over 12,000 confirmed infections as of Saturday morning, Liu Yingzi, director of the Hubei health commission, said on Jan. 29 that there were more than 170,000 medical staff working on the frontlines treating coronavirus patients.
Meanwhile, doctors from Hubei hospitals told state-run media that they lack the human resources to treat patients. Some of them have worked for more than 24 hours straight. On Jan. 22, state-run Jiangsu Television reported that an Wuhan doctor was infected with the coronavirus after treating patients for 11 days. He was under self-quarantine and told his family members that he had worked 26 hours straight, as there were too many patients at the hospital.
On Jan. 29, Zeng Guang, the chief scientist of epidemiology at China’s CDC, made a rare candid admission about why Chinese officials cannot tell people the truth, in an interview with the state-run tabloid Global Times.
And then there’s this, from SixthTone’s David Paulk: “The 8 people detained in Wuhan for “spreading rumors” — who we wrote about in a Jan. 2 article that was censored — were doctors trying to raise the alarm about a new SARS-like virus.”
This is one of the more infuriating sentences I’ve written on Twitter:
The 8 people detained in Wuhan for “spreading rumors” — who we wrote about in a Jan. 2 article that was censored — were doctors trying to raise the alarm about a new SARS-like virus. https://t.co/CAb1Z6YMRU https://t.co/qleiKpWlMU
— David Paulk 波大卫 (@davidpaulk) January 31, 2020
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We leave the last word to Zeng, the chief scientist at China’s CDC: “The officials need to think about the political angle and social stability in order to keep their positions,” he said, which is all one needs to know about any “facts” coming out of China.
Tyler Durden
Sat, 02/01/2020 – 22:00 - The Super Bowl Is A Grift Of Epic Proportions
The Super Bowl Is A Grift Of Epic Proportions
Authored by Dave Zirin via The Nation,
The Super Bowl is like prom for the 1 percent. When the big game comes to town, it’s accompanied by private jets, parties, and nonstop bottle service. That should be enough, but it never is. The bacchanalia also comes festooned with public funds for the NFL, an overwhelming police presence, and the removal of the poor. It’s a world of fun on our TVs, but it’s a wrecking ball for local communities.
This year the game is in Miami, and the scams are starting to seep into public consciousness. As the Miami Herald is reporting, the NFL booked 1 million dollars’ worth of rooms at the J.W. Marriott Marquis hotel and Aventura’s Turnberry resort for the Kansas City Chiefs and San Francisco 49ers players and coaches—and sent the city the bill.
Even though the NFL is a gargantuan corporate operation and both teams are owned by billionaires, Miami (where 27 percent of children live below the poverty line) is on the hook for the hotel accommodations. This is just part of a $4 million welfare package with which the city has gifted NFL Commissioner Roger Goodell, who makes 10 times that amount in yearly salary. That $4 million does not include the costs of the police and security presence required to host the game. Rodney Barreto, the chairman of Miami’s Host Committee, said to the Herald, “These are basically things we have to do to get them to come. If we’re not doing it, another city is.”
The police presence will be “an extraordinary deployment of law enforcement assets, even by recent standards, in keeping with heightened global tensions and fears of home-grown violence.” According to Reuters, Super Bowl LIV “is a so-called SEAR 1 event, affording it the highest level of federal resources, including explosive detection canine teams, cyber risk assessments and air security. Coordinated by the U.S. Secret Service, the security force includes operations by the U.S. Coast Guard, FBI, and Department of Homeland Security.”
In addition, Miami police will lead “lead a massive ground operation with thousands of officers… on foot, horseback, in boats, and in the air.”
While the police roam the city and public dollars flow into the NFL’s coffers, the league is engaging in Kabuki theater charity: its spoonful of sugar to help the poison go down, showy presentations so it won’t look like a parasite. The league donated $100,000 to a homeless shelter that will house those displaced from Bayfront Park by the Super Bowl. This sounds nice, but the donation will actually help facilitate their removal from the streets so they’re not an eyesore, or worse, a reminder of the human costs of economic inequality. In addition, Dak Prescott, quarterback for the Dallas Cowboys, is being praised for donating 100,000 bowls of Campbell’s Chunky Soup (Prescott’s sponsor) to local homeless shelters. This is the synthesis of commercialism and philanthropy that the NFL adores.
Yet there won’t only be police and soup. There will also be protest. Residents of the historic Miami Gardens neighborhood along with the Miami-Dade NAACP will be protesting on game day at the site of the Super Bowl, HardRock Stadium, in a fight to stop Formula 1 racing on public streets. The racing circuit has been invited to Miami Gardens by HardRock Stadium and Dolphins owner Stephen Ross. F1 racing has been rejected by numerous communities because of environmental impact and traffic concerns. Ross doesn’t have such concerns about the residents in Miami Gardens, so they will be using the platform of the Super Bowl to fight back.
They won’t be alone. While private planes will be incoming in great numbers, airport workers in Miami will be protesting low wages and expensive health insurance costs with a Super Bowl week hunger strike. They are demonstrating against their employer, the airline catering subcontractor Sky Chefs. Sky Chefs works with, among other entities, American Airlines. Their Union, Unite Here, is currently in negotiations with Sky Chefs for a living wage. One worker, Ibis Boggiano, said to the Herald, “We are sacrificing our health so that they will hear us.”
The demonstration is called “Fast for Our Families.” On Monday, the workers were joined at a press conference by NFL Players Association Executive Director DeMaurice Smith, who said, “Dr. Martin Luther King Jr. said that all labor has dignity. Let’s remember, as hundreds of thousands of people descend onto Miami this week, that behind every Super Bowl party and celebration, there are men and women doing the work behind the scenes to be able to feed their families. The NFLPA is proud to stand in solidarity with airline catering this week, and shame on American Airlines for not taking action to make sure they are provided a living wage.”
The Super Bowl more than ever is a microcosm of this country. The super-wealthy will be oozing from one heavily guarded party to the next, while the hungry hope to be seen amid the flashing lights and heard above the ceaseless din.
Tyler Durden
Sat, 02/01/2020 – 21:30 - 2016 Redux: Kremlin Warns 'Chemical Provocation' Coming As New Fighting Erupts In Aleppo
2016 Redux: Kremlin Warns ‘Chemical Provocation’ Coming As New Fighting Erupts In Aleppo
Amid the ongoing Russian-Syrian military offensive to liberate Idlib province from the al-Qaeda linked Hayat Tahrir al-Sham, suburbs near Aleppo have been scene of intense fighting in recent days, despite government forces liberating the major northern city in December 2016, which marked a turning point in the war.
Turkish-backed Syrian rebels have in recent days and weeks mounted new insurgent attacks on the outskirts of the provincial capital city at a moment the Syrian Army has made huge gains into neighboring Idlib. A key reason Damascus has vowed to retake every inch of Idlib is that for years al-Qaeda has launched terrorist attacks on suburbs of Aleppo from there as civilians and the government attempt to rebuild the largely destroyed urban center.
Aleppo, AFP file image. This latest renewed fighting in Aleppo appears a concerted effort by Turkey to use its proxy forces to repel and distract the brunt of the Syrian Army offensive on Idlib, considering on Friday President Erdogan warned he’s ready to use military force if Assad doesn’t halt Idlib operations.
Syrian insurgents carried out at least three car bomb attacks against government forces west of Aleppo on Saturday and opened a new front northeast of the city, an attempted fight back after territorial advances by Damascus. — Jerusalem Post
“We will not allow the regime’s cruelty towards its own people, with attacks and causing bloodshed,” Erdogan said. Ankara has been alarmed that hundreds of thousands of civilians are now trying to flee the embattled province toward the Turkish border.
“Turkey with complete sincerity wants Syria’s stability and security, and to this end, we will not shy away from doing whatever is necessary, including using military force.”
Erdogan has also accused Russia of violating key agreements for a reduction in fighting in Idlib, while Moscow has cited ongoing attacks against its nearby Hmeimim airbase launched by HTS insurgents based in Idlib. Over the past years HTS and affiliate jihadist groups have also attacked civilian areas of western Aleppo.
Kremlin spokesman Dmitry Peskov responded to Erdogan’s charge by pointing out Idlib is a haven for terrorists who launch attacks on civilians as well as Russian and Syrian forces.
Turkey has lately said it is hosting over 3 million Syrian refugees and has demanded that Europe provide more support in the form of backing Erdogan’s ‘safe zone’ plan which seeks to establish a ‘refugee city’ using annexed northern Syrian territory (which the Turkish army has recently wrested from Syrian Kurdish forces backed by the US).
Erdogan has also recently threatened to “open the gates” of millions of refugees on Europe if it doesn’t received political support. Needless to say, we are headed toward the final Syrian war showdown over Idlib.
Just this week the Kremlin warned that anti-government militants in Idlib are planning a major alarming new ‘chemical provocation’ in order to draw in support from external powers like the United States.
Russia’s TASS reported not for the first time that “Terrorists are plotting new chemical attacks to claim once again that chemical weapons are being used on the Syrian territory, Russia’s UN envoy Vassily Nebenzia told the UN Security Council on Wednesday.”
“We would also like to draw attention to diplomatic notes by the Syrian Arab Republic’s permanent mission to the UN and to media reports about terrorists plotting to organize more provocations and staged chemical incidents in Syria,” the Russian diplomat said.
Tyler Durden
Sat, 02/01/2020 – 21:00 - Senator Tom Cotton Shreds China's Official Virus Story, Warns Of "Super Laboratory" Proximity
Senator Tom Cotton Shreds China’s Official Virus Story, Warns Of “Super Laboratory” Proximity
Authored by Jared Harris via WesternJournal.com,
A United States senator is casting major doubt on the Chinese government’s official story on the 2019 novel coronavirus outbreak, instead hinting that a biosafety laboratory working with the deadliest pathogens in the world could be the true source.
Republican Sen. Tom Cotton of Arkansas dismantled a claim from China’s communist regime Thursday that pinned the coronavirus outbreak on a market selling dead and live animals.
“China claimed — for almost two months — that coronavirus had originated in a Wuhan seafood market,” Cotton wrote on Twitter.
“That is not the case.”
In a video accompanying his post, Cotton explained that the Wuhan wet market (which Cotton incorrectly referred to as a seafood market) has been shown by experts to not be the source of the deadly contagion.
Cotton referenced a Lancet study which showed that many of the first cases of the novel coronavirus, including patient zero, had no connection to the wet market — devastatingly undermining China’s claim.
“As one epidemiologist said: ‘That virus went into the seafood market before it came out of the seafood market.’ We still don’t know where it originated,” Cotton said.
“I would note that Wuhan also has China’s only bio-safety level four super laboratory that works with the world’s most deadly pathogens to include, yes, coronavirus.”
Watch Cotton’s full comments below.
China claimed—for almost two months—that coronavirus had originated in a Wuhan seafood market. That is not the case. @TheLancet published a study demonstrating that of the original 40 cases, 14 of them had no contact with the seafood market, including Patient Zero. pic.twitter.com/PdgqgHjkGy
— Tom Cotton (@SenTomCotton) January 30, 2020
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Cotton appears to be referring to the Wuhan Institute of Virology, the country’s foremost virus research facility.
The Wuhan National Biosafety Laboratory, which is part of the institute, is located only 20 miles from the Wuhan wet market, the “official” source of the outbreak according to China.
Snakes, bats and other animals were identified as possible originators for the coronavirus in early investigations.
The rapid spread of the virus, which makes previous contagions like SARS and swine flu look benign by comparison, seems to lend weight to the theory that the novel coronavirus is a tailored bioweapon.
Ten days ago, China reported less than 300 had the virus. The country’s latest update now numbers the infected at over 11,000.
An additional 15,000 in China are suspected of having the virus, but a reported lack of test kits prevents the government from giving an accurate number.
When the number of infected was still low, China instituted a wide-reaching quarantine, sealing over 40 million inside cities.
Now, the world appears to be sealing China in.
Russia, Nepal, Mongolia and North Korea have all closed their borders with China. Even more countries are refusing Chinese nationals, including an unprecedented announcement from the administration of President Donald Trump barring entry into America for foreign nationals who have traveled to China.
While the virus has been found in several countries around the world including America, all eyes are now on China as the outbreak there shows no signs of slowing.
Tyler Durden
Sat, 02/01/2020 – 20:30 - Hillary Clinton For Vice President?
Hillary Clinton For Vice President?
Last week, Hillary Clinton dispelled rumors that she might toss her hat in the ring in a “brokered convention” to run against President Trump – telling Variety that while she has the “urge” to run, she’s “going to support the people who are running now and do everything I can to help elect the Democratic nominee.”
According to The Hill‘s Douglas MacKinnon, however, Clinton may be in negotiations with former Vice President (and current frontrunner) Joe Biden, former NYC Mayor Michael Bloomberg, or she may try to team up with whoever gets the Democratic nomination.
MacKinnon writes in a Saturday Op-Ed that Clinton “would add the gravitas, delegates and, eventually, millions of votes needed to get them over the finish line on Nov. 5. I am assured that Clinton is on every shortlist for that position,” adding “If I were in Trump’s world, this scenario would send chills down my spine.“
There is no doubt that the former first lady, New York senator and secretary of State once again is raising her profile and stepping back into the spotlight to reengage in political discussions.
One such spotlight was provided by the Sundance Film Festival in Park City, Utah. There, aside from commenting on her presidential “urge,” Clinton not only promoted the incredibly flattering four-part Hulu documentary about her, titled “Hillary” — which premiered, coincidently, just 10 days before the Iowa caucus — but she also attended the debut of a documentary about the murder of Washington Post columnist Jamal Khashoggi. –The Hill
Also noted is Clinton’s recent attacks on Sen. Bernie Sanders (I-VT), calling him “not a team player” and claiming that people ‘don’t like him’ (for which she was booed by Rep. Rashida Tlaib (D-MI) at a Sanders rally on Friday). Clinton also went after Facebook in lockstep with George Soros, who said that the Silicon Valley giant was conspiring with the Trump reelection campaign to win in November.
Speaking with The Atlantic from the Sundance Film Festival in Park City, Utah, Clinton said that Facebook CEO Mark Zuckerberg is an “authoritarian” who “intend[s] to reelect Trump.”
MacKinnon continues:
Beyond that, there is an ultra-positive X factor that Clinton would bring to the 2020 presidential election equation: Bill Clinton. Like him or not, approve of him or not, the former president retains one of the best political minds in the nation and would be a formidable tactician.
The obvious question in all this is: Given her ego, would Hillary Clinton settle for being vice president when she twice was within striking distance of being president? The answer, I’m told, is an emphatic yes. The main reason are as follows.
First, and most pressing, she wants to avenge her embarrassing loss to Trump in 2016. Becoming the running mate of the Democratic nominee would give her carte blanche to hammer the president from one corner of the nation to the other. It’s an assignment she clearly would relish.
Second, she still has a burning desire to make history by attaining a political “first.” If she were the nation’s first female vice president, then she could check that box — and it’s a title no one could ever take from her.
Third, I’m told that Clinton simply is not ready to “ride off into the sunset” and believes she still can make a positive difference, especially for women.
But most of all, her reasons are personal — with the wounds of 2016 still open. –The Hill
Will Clinton team up with Biden, or Bloomberg, or literally anyone to take one more bite at the apple? Only time will tell.
Tyler Durden
Sat, 02/01/2020 – 20:00 - Social Media Networks Vow To Censor "Misinformation" About Coronavirus
Social Media Networks Vow To Censor “Misinformation” About Coronavirus
Authored by Daisy Luther via The Organic Prepper blog,
Yesterday, social media giants like Facebook and Twitter, and search engine Google announced their intentions to censor – um, crack down on – so-called “misinformation” about the coronavirus that is spreading across the globe.
Before we get started here, admittedly, there’s some absolutely terrible advice out there about preventing or curing coronavirus. There are some really wild stories about the origin of the virus which may or may not be true. But the issue here is that social media networks are setting themselves up as the arbiters of truth, making it seem as though the rest of us are incapable of separating good information from bad information.
Facebook is taking action.
Kang-Xing Jin, Facebook’s head of health, wrote:
Our global network of third-party fact-checkers are continuing their work reviewing content and debunking false claims that are spreading related to the coronavirus. When they rate information as false, we limit its spread on Facebook and Instagram and show people accurate information from these partners. We also send notifications to people who already shared or are trying to share this content to alert them that it’s been fact-checked.
We will also start to remove content with false claims or conspiracy theories that have been flagged by leading global health organizations and local health authorities that could cause harm to people who believe them. We are doing this as an extension of our existing policies to remove content that could cause physical harm. We’re focusing on claims that are designed to discourage treatment or taking appropriate precautions. This includes claims related to false cures or prevention methods — like drinking bleach cures the coronavirus — or claims that create confusion about health resources that are available. We will also block or restrict hashtags used to spread misinformation on Instagram, and are conducting proactive sweeps to find and remove as much of this content as we can. (source)
So, don’t worry, friends. “Independent fact-checkers” from the Ministry of Truth will protect you from conspiracy theories and false claims.
Maarten Schenk from Lead Stories, a fact-checking organization working with Facebook, scoffed at some of the “conspiracy theories” he’s seen in a comment to CNN.
“It always has to be something sinister,” Schenk said of the conspiracy theorists’ misinformation, which includes false claims that the virus was the creation of a government.
Some people, Schenk said, are “not trusting the narrative about the numbers of deaths and infections.” (source)
To be perfectly honest, whenever someone refers to a particular view as “the narrative” I’m even less likely to trust it than I was before. And I haven’t trusted the numbers coming out of China from the very beginning, as I wrote here.
Google is pushing back “misinformation” in search results.
Google is bumping any site providing perceived “misinformation” back in the search results and putting “authoritative” sources on page one.
A Google (GOOGL) spokesperson pointed CNN Business to policy changes in recent years for Google and its video platform YouTube, which are designed to surface information from authoritative sources at the top of search results. Like Facebook, the company doesn’t wipe false claims from its platforms entirely. (source)
Having been bumped back by Google numerous times in the past, I can tell you, it’s a real blow to inbound traffic when this occurs. While you personally may not use Google, keep in mind that it is the most widely used search engine in the world, with 81.5% of the market share. If they are pushing back information – oh, of course, I mean misinformation – then most folks will never see it.
Twitter is showing people “official channels” first.
According to CNN, Twitter is providing people with the best possible information when they search the coronvirus hashtag.
On Twitter, users searching for “coronavirus”in the US and other countries, including Hong Kong, Brazil, and Australia, are first prompted to visit official channels of information about the virus. In the US, Twitter directs users to the Centers for Disease Control and Prevention, beneath a bold headline that reads: “Know the facts.”
A Twitter (TWTR) spokesperson told CNN Business on Tuesday that the company has not seen a coordinated increase in disinformation related to the coronavirus. In a blog post Tuesday, the company said it had seen over 15 million tweets about the coronavirus in four weeks. (source)
But of course, as always, it goes further than that.
Last night, Zero Hedge was quickly suspended by Twitter.
I’ve written repeatedly that the best coverage I have seen of the coronavirus has been on Zero Hedge. They’ve done a lot of no-holds-barred reporting and broken numerous stories about the virus and its possible origins. They’ve been careful to be extremely clear about whether something is a question or a statement, and they cite numerous sources for their work.
They’re also not afraid to be controversial.
And this got their account suspended from Twitter last evening.
Shortly after they posted an article about the extremely unusual makeup of this particular coronavirus (based on a scientific study that called the makeup “unlikely to be fortuitous,” their account was suspended. I immediately thought it was because of the article that suggested we could be dealing with a bioweapon, but according to Zero Hedge, it was something else entirely.
Twitter accused them of harassing a guy by posting his (already publicly posted) phone number and workplace. ZH reports:
What appears to have happened is that twitter received a complaint from the website best known for publishing the discredited Steele dossier when no other media outlet would touch it, and making cat slideshows of course, Buzzfeed, in which someone called Ryan Broderick writes that Zero Hedge “has released the personal information of a scientist from Wuhan, China, falsely accusing them of creating the coronavirus as a bioweapon, in a plot it said is the real-life version of the video game Resident Evil.” (source)
By all means, Twitter should certainly take the word of someone who works for a site best known for quizzes to help you figure out what kind of potato you really are to delete a news organization’s account.
It’s also important to note that ZH didn’t post anything personal that wasn’t already publicly made available by the subject of the article himself.
…we did not release any “personal information”: Peng Zhou (周鹏) is a public figure, and all the contact information that we presented was pulled from his publicly posted bio found on a website at the Wuhan Institute of Virology which anyone with access to the internet can pull from the following URL: http://sourcedb.whiov.cas.cn/zw/rck/201705/t20170505_4783973.html, which is also the information we used. (source)
So who do you want filtering information for you?
While I have seen a lot of terrible advice – drink bleach or a bottle of vinegar to “cure” coronavirus, use this essential oil and you’ll never get coronavirus, simply cut an onion in half and leave it in the room and it will absorb the coronavirus cooties, and much more quackery – I still don’t believe that social media networks and search engines should be able to filter what people see. We are (allegedly) free individuals who can think for ourselves.
Shouldn’t we be able to decide what we believe and what we don’t without information being engineered to fit a narrative? Shouldn’t we be able to base our pandemic preparedness plan on all the information out there?
Instead, we’re provided with “narratives” and biased information. That’s something we here at The Organic Prepper have warned about repeatedly. If you can’t trust your intel, it makes it difficult to make informed decisions.
This just makes it seem like there’s something to hide.
If anything, this crackdown on any alternative views, treatments, or theories makes me even more suspicious because it’s a clearcut case of Propaganda 101.
Propaganda is information that is used primarily to influence an audience and further an agenda, which may not be objective and may be presenting facts selectively to encourage a particular synthesis or perception, or using loaded language to produce an emotional rather than a rational response to the information that is presented.
Propaganda is often associated with material prepared by governments, but activist groups, companies, religious organizations, the media, and individuals can also produce propaganda. (source)
This is a technique that is as old as time.
Whenever you see some pop-up or some “correction of misinformation” the first thing you should do is ask yourself, is what are they trying to hide? It may legitimately be bad advice (like that whole drinking bleach thing) but it may also be something more sinister.
I don’t know about you, but now I’m even more curious and doubtful about the “narrative” than I was before. What is it, really, that they don’t want the rest of us to know?
Tyler Durden
Sat, 02/01/2020 – 19:30 - Super (Inflation) Bowl: Ticket Prices Soar To Highest In 5 Years
Super (Inflation) Bowl: Ticket Prices Soar To Highest In 5 Years
Tickets for this year’s installment of the Super Bowl played on Sunday in Miami are reselling at higher prices than last year. Still, as Statista’s Katharina Buchholz notes, tickets purchased on the secondary market for any Super Bowl Game come at a high premium, as data from vendor TicketIQ shows.
The average price of a ticket is currently at US$8,264, up from “only” US$4,972 last year. Secondary ticket prices are expected to rise in price until game day.
You will find more infographics at Statista
Another year on record when resold tickets were especially pricey was 2015. According to TicketIQ, prices may vary depending on how many tickets are released to the public each year, whether competing teams come from wealthier cities and even on how easy it is for fans to reach the Super Bowl from their respective home towns. While 3,000 tickets were available on the market on Jan 29, those numbers were significantly lower in 2018, driving up prices.
But while ticket prices are soaring, we are reminded that last year’s Super Bowl had the lowest viewership since 2008…
You will find more infographics at Statista
We suspect this year may see that change (for the better).
Go Niners!
Tyler Durden
Sat, 02/01/2020 – 19:00 - Philippines Reports First Death Due To Coronavirus Outside China; 137,600 Under Observation In China
Philippines Reports First Death Due To Coronavirus Outside China; 137,600 Under Observation In China
Summary:
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Death toll tops 300, 14,550 cases reported globally
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First death outside China reported in Philippines
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Suspected case being tested in New York City
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8th US case confirmed in Massachusetts
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Vietnam, Japan, Australia limit travel to China
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Hong Kong health-care workers threaten to strike unless border to mainland closed
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Update (2200ET): The Philippines office of the World Health Organization has reported the first death of a coronavirus victim outside of China.
A 44-year-old male was confirmed as the second person with the 2019 novel coronavirus in the Philippines.
He passed away on February 1 2020.
A 44-year-old male is confirmed as the second person with the 2019 novel coronavirus acute respiratory disease (2019-nCoV) in the Philippines. He passed away on 1 February 2020. pic.twitter.com/5a5tPWtvpc
— World Health Organization Philippines (@WHOPhilippines) February 2, 2020
There are currently 114 cases worldwide (ex-China)…
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Update (1900ET): There were 45 new deaths reported in Hubei China, sending the global death toll to 304 as China’s CDC reports 2,589 new infections, bringing China’s total to 14,380 of which Hubei Province has reported 9,074 cases (including 4109 cases in Wuhan).
With another 173 outside the mainland, the new global total is 14,550 as of Sunday morning in China. Additionally, there were a total of 19,544 suspected case in China (up from 17,988 yesterday), and the total number of cases under observation is now a whopping 137,594, an increase of over 19,000 from 118,478.
And as the number of cases and deaths continues to grow almost geometrically, there was one silver lining: the number of discharged patients jumped to 328, for the first time surpassing the number of deaths by 24.
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Update (1645ET): The New York Times reports that NYC has yet another suspected case of the coronavirus. This is at least the third report of a suspected coronavirus patient in NYC or New Jersey.
The scares have made the sight of people wearing masks more common throughout the Five Boroughs.
The suspected patient is in their 40s and recently returned from China suffering from telltale symptoms including fever, cough and shortness of breath.
The suspected virus carrier is undergoing testing at Bellevue Hospital in Manhattan.
- NEW YORK CITY HEALTH DEPARTMENT TESTING PATIENT FOR CORONAVIRUS
- NYC HEALTH OFFICIALS SUSPECT A PATIENT HAS CORONAVIRUS: NYT
- NYC OFFICIALS AWAITING CONFIRMATION FROM FEDERAL AGENCY: NYT
- SUSPECTED NYC CORONAVIRUS PATIENT IS AT BELLEVUE HOSPITAL: NYT
City health officials have been bracing for a case given NYC’s large population of Chinese immigrants.
“An individual with a travel history to China felt unwell and sought help from a medical provider who promptly contacted the Health Department,” said the health commissioner, Dr. Oxiris Barbot.
NYC has already struggled with outbreaks recently, including an outbreak of measles in the ultra-orthodox Jewish community.
The first person in NYC has been identified for testing for the novel #coronavirus. This means they had recently traveled from China & presented with fever and cough or shortness of breath without another common cause, like influenza and other cold viruses, identified on testing.
— nycHealthy (@nycHealthy) February 1, 2020
The individual, who is under-40-years-old, has been hospitalized at NYC Health + Hospital/Bellevue and is in stable condition. Testing to determine whether this is a confirmed case of the novel #coronavirus will take a minimum of 36-48 hours and depends on CDC testing capacity.
— nycHealthy (@nycHealthy) February 1, 2020
There are now eight confirmed cases in the United States and over 12,000 worldwide. At least 259 people have died. The novel (new) #coronavirus is a strain of coronavirus that has not been previously detected in humans.
— nycHealthy (@nycHealthy) February 1, 2020
Testing at the CDC will take a minimum of 36 – 48 hours, depending on testing capacity.
That’s all we know for now.
* * *
Update (1400ET): The Global Times, a popular mouthpiece for the Chinese government, has acknowledged that the outbreak has reached a “critical” situation, and that many places in China would “extend” the ‘Spring Festival’ holiday.
Coronavirus outbreak is in a critical situation. People hope an inflection point will emerge in a week. By then direct impact of people who left Wuhan will be fully sapped. The next few days are very crucial. Many places in China extend Spring Festival holiday further.
— Hu Xijin 胡锡进 (@HuXijin_GT) February 1, 2020
Just another piece of faux-sympathy as the government pushes the “full transparency” angle.
* * *
Update (1255ET): According to officials with the Massachusetts Department of Public Health, the first case of novel coronavirus has been confirmed in the state on Saturday afternoon.
#BREAKING: Health officials announce the first case of the #coronavirus in Massachusetts. They say a #Boston man in his 20s tested positive. He recently traveled to Wuhan, China. He sought medical care soon after his return to MA & has been isolated since that time. #WBZ
— Anna Meiler (@AnnaMeiler) February 1, 2020
Boston health officials said the man is in his 20s, contracted the deadly virus after he returned from a trip in Wuhan, China.
The Boston Public Health Commission said the U.S. Centers for Disease and Control Prevention was notified about the lab results on Friday evening.
“He has been isolated since that time and will continue to remain isolated until cleared by public health officials,” the department said, adding that his few close contacts have been identified and are being monitored for any signs of symptoms.
“We are grateful that this young man is recovering and sought medical attention immediately,” said the state’s public health commissioner, Monica Bharel. “Again, the risk to the public from the 2019 novel coronavirus remains low in Massachusetts.”
Fortunately he is ‘recovering’.
BREAKING: 1st case of coronavirus in Massachusetts has been confirmed in a man returning from Wuhan, China who is in his 20s and lives in Boston, according to @MassDPH pic.twitter.com/BxXlrhPvN6
— Mike Saccone (@mikesacconetv) February 1, 2020
This is the eighth case of confirmed coronavirus in the US after the 7th was confirmed in the Bay Area on Friday afternoon.
Meanwhile, Australia’s flag carrier Qantas is the latest airline to cancel flights between China after that country cracked down on foreigners who have been to Hubei traveling in the country.
Though US has taken steps to stop foreigners who might be an infection risk from entering the country, airline employees are pushing for all American carriers to temporarily suspend all flights to and from China. The Association of Flight Attendants, representing 50,000 flight attendants at 20 airlines has called for “clear direction from our government to U.S. airlines to pull down all travel to China until the spread of coronavirus is contained,” in a statement shared by ABC News.
“It is critical that any crew potentially infected through travel to and from China not be assigned to any additional flights until safely through the fourteen-day incubation period,” the statement added.
Back in Wuhan, the government is dialing up the propaganda as public anger (which has been manipulated to focus on local officials who have been scapegoated by Beijing) crests.
Chinese propaganda poster in Wuhan:
“Today go home and stay indoors so tomorrow you can go outdoors and come home” pic.twitter.com/yVzZXbGm3z
— Jack Posobiec🇺🇸 (@JackPosobiec) February 1, 2020
There’s more where that came from.
* * *
Update (1230ET): Vietnam has become the latest country to strictly limit travel with China. SCMP reports that the country has banned all passenger plane traffic to and from mainland China, Taiwan, Hong Kong and Macau.
Apparently, Vietnam, which has confirmed several cases, including at least one instances of human-to-human transmission, doesn’t think much of the WHO’s assurances. Can’t say we blame them. Meanwhile, back in China, a citizen journalist took a video of a sea of unopened boxes allegedly containing medical supplies. We’ve reported in the past that the government is largely relying on ‘volunteers’ to open boxes and sort supplies, leading to massive backlogs.
全球捐的医用物资都被武汉红十字会露天堆积。只需一场大雨，就全不卫生了
所有物资必须经过红会，为什么？凭什么？各种网购渠道都有自己的派送系统，非常成熟，为什么非要用红会？
百姓生死攸关，也绝不放开高效的民间力量，因为红会不是民间组织，而是党的附属机构！
— 新闻大吐槽 (@TuCaoFakeNews) January 31, 2020
But of course Beijing has everything under control…just so long as you don’t leave your house/apartment/whatever.
* * *
Since our last update Friday evening, the situation on the ground in China has reportedly gone from bad to worse. The true extent of Beijing’s ‘quarantine’ has been exposed – and not just the ridiculously oppressive tactics exercised on sick people simply out trying to buy food so they don’t starve, but the even more bizarre notion that the WHO has decided to try and validate Beijing’s response when all evidence suggests that public relations is and always will be Beijing’s No. 1 concern.
By most recent count, total cases have eclipsed 12,000, while confirmed deaths inside China have hit 259. More than 100,000 people are still under observation, as we reported last night. The 46 new deaths announced last night (Saturday morning in China) was the largest daily death toll (that was the total from Friday) since the start of the crisis.
To that end, a report reportedly signed by hundreds of doctors blaming the Communist Party’s leadership for waiting a month to inform the Chinese public and the international community that the virus could spread from human-to-human contact. The leadership was apparently aware of this fact as early as mid-December, yet they actively concealed it until the situation started getting out of hand and cases were being confirmed in neighboring countries.
China’s finance ministry has finally announced that it’s going to lift import taxes on American-made medical products needed to help combat the outbreak (it’s interesting how it took them nearly – checks notes – two months since the start of the outbreak to lift the trade-war tariffs).
ABC News is the latest American media outlet to collect footage from Wuhan via drone. The haunting footage clearly shows the scope of the lockdown. An entire city as big as New York, with almost nobody outside or in the streets.
This is becoming an increasingly common sight across China.
We got some interesting corporate news overnight: Apple announced early Saturday that it would close all of its stores and offices in China at least through Feb. 9. Already, the factories of many of its suppliers (like Foxconn) have been impacted by holiday “extensions” that will keep them closed through at least early Feb.
As of midday on Saturday, at least 19 provinces, municipalities and regions have told businesses not to resume work before Feb. 10 at the earliest, according to CNBC, which also noted that Disney, Tesla several US airlines and myriad other American business have suspended operations in China. Hubei, the center of the outbreak, has reportedly extended its Lunar New Year holiday until Feb. 13.
Apple is closing ALL stores, corporate offices, and contact centers in China due to Coronavirus through Feb. 9, company says in statement. https://t.co/E5xGkgAkeS pic.twitter.com/bbpGN885n4
— Mark Gurman (@markgurman) February 1, 2020
On Saturday, Huanggang, a city of 6 million people near Wuhan, has banned residents from leaving their homes in an effort to stop the coronavirus. The ban states that 1 person per family can leave every other day to buy basic needs.
It’s the first city to declare a lockdown on par with Wuhan’s total ban of people leaving their homes. Meanwhile Huanggang’s mayor warned on Saturday that a “significant” increase in the number of confirmed cases on Saturday or Sunday.
Here’s a video of a doctor from Huanggang saying the media won’t dare report the true infection totals from Huanggang, adding that it’s almost as bad as Wuhan.
A doctor was filmed saying the media does not dare to report the true figures of infections in the city of Huanggang, which is near #Wuhan, repeating that 3 local hospitals were filled with patients presented with fever. pic.twitter.com/FYHjxRJLXG
— JASON CHEN (@ajasonchen) January 25, 2020
The scapegoating of local officials by Beijing continued on Saturday, when more than 300 party officials from Huanggang were punished for failing in their duty.
#Huanggang, a city neighboring #Wuhan, which records the second-largest number of #novelcoronavirus infections, punished 337 officials for slacking off from their duty in combating the #coronavirus. Six of them were dismissed from their positon. https://t.co/is5oRiUXAI pic.twitter.com/ViUPR7zwrU
— Global Times (@globaltimesnews) February 1, 2020
Though we’re hearing labels like these used far less often than we were just last week, it appears the “fearmongers” and “alarmists” were once again correct to be skeptical of the information coming out of Beijing. A few days ago, Zero Hedge was declared alarmists for discussing the possibility that nCoV could metastasize into a particularly deadly seasonal illness, like the flu. The mainstream press has now apparently decided to take the warnings of epidemiologists seriously.
Latest #coronavirus stats: 11,949 cases, 259 deaths. Still too early to gauge death rate, but this @businessinsider chart puts #CoronavirusOutbreak into perspective. The 2009 H1N1 flu eventually became one of the seasonal flu strains. It could happen to this one as well. pic.twitter.com/J0aw9hnh75
— Selina Wang (@selinawangtv) February 1, 2020
When the WHO first declared that travel restrictions on China simply weren’t necessary, even as Beijing quarantined more than 50 million of its own people, we wondered how the organization could possibly expect the world to listen, considering that Russia had already closed its border with China, and dozens of countries had already imposed some kind of restriction, while more than 40 airlines had suspended routes to China.
On Saturday morning, Australia joined the US in temporarily blocking all foreigners who have recently visited China. Japan said it would bar visitors who had been to Hubei in the last 2 weeks, or had passports issued in Hubei, according to the New York Times.
Then we heard Hong Kong Chief Executive Carrie Lam tell the people that complete shutdown of travel to China wouldn’t be necessary. Once again, Lam was doing the leadership’s bidding to the detriment of her local popularity. By doing so, Lam has handed the workers all the ammunition they need to successfully challenge, and defeat, the city government.
Carrie Lam
Thousands of Hong Kong doctors, nurses and hospital employees have voted for a strike which could begin as early as Monday. The reason? To pressure the city government to close all borders with mainland China. This isn’t the first bout of virus-related unrest to rock Hong Kong. Last week, a group of locals set fires and rioted in response to rumors that the government planned to transform a newly built housing project nearby into a quarantine, according to SCMP.
Reports that the Hong Kong government has found 49 people from Hubei after searching about 500 hotels has only ratcheted up public anxiety. The individuals are reportedly being moved to quarantine centers.
The pledge of action by thousands of nurses and hospital workers is picking up steam as more local unions are joining the movement. Pretty soon, Lam will have no choice but to close the border with China, which would be a major blow to global confidence in Beijing.
The alliance of health care workers have a few other demands: that the government make clear policies to ensure a supply of surgical masks, a halt on non-emergency services and an increase in the number of isolation wards at hospitals, as well as better support for medical practitioners and an open promise not to punish those who participate in the strike.
Back on the mainland, local authorities have taken to using drones to ‘name and shame’ anybody who disobeys the isolation orders. Here are a few examples:
Walking around without a protective face mask? Well, you can’t avoid these sharp-tongued drones! Many village and cities in China are using drones equipped with speakers to patrol during the #coronavirus outbreak. pic.twitter.com/ILbLmlkL9R
— Global Times (@globaltimesnews) January 31, 2020
Across China, drones are being loaded with disinfectant to spray public streets (another shock-and-awe measure with little real-world advantage).
Before we go, here’s a complete list of countries that have confirmed cases of the virus: Thailand, Japan, Hong Kong, Singapore, Taiwan, Australia, Malaysia, Macau, Russia, France, the United States, South Korea, Germany, the United Arab Emirates, Canada, Britain, Vietnam, Italy, India, the Philippines, Nepal, Cambodia, Sri Lanka, Finland and Sweden.
Meanwhile, Thailand, Taiwan, Germany, Vietnam, Japan, France and the US has confirmed human-to-human transmission involving at least one person who hadn’t been to China.
The timing of this outbreak could not be worse: China confirms a case of H5N1 bird flu in Hunan, prompting authorities to cull 17,828 chickens as a precaution. Though we doubt mainlanders will be seeing many stories about that.
Tyler Durden
Sat, 02/01/2020 – 18:55 -
- The Global Supply & Demand Shock Of The Coronavirus
The Global Supply & Demand Shock Of The Coronavirus
Our analysis of the impact of the Coronavirus is a work in progress and nobody knows the endgame. It is still the early days of the epidemic, and its dynamics will take time to understand. The scale of the impact will depend on how contagious and lethal it reveals itself.
There is a supply shock to global manufacturing as many factories in the world’s supply chain will be shuttered for longer, which shifts the global supply curve left, increasing-price and production pressures. Ergo component shortages, higher prices, and lower production.
The 2 percent decline in the U.S. stock market and collapse in bond yields are signaling a potential global aggregate demand shock that offsets the supply shock.
As of Friday, 10,000 cases have been confirmed by China, surpassing the total from the 2002-2003 SARS epidemic. The new virus has killed 171 people in China.
The epicenter of the outbreak is Wuhan, one of China’s largest manufacturing centers. Foxconn and Pegatron have operations there, as do memory manufacturers such as XMC (nor flash) and Yangtze Memory Technologies Co. (non-volatile memory).
Auto producers, such as General Motors, Honda, Volkswagen, BMW and Daimler also populate the region.
The electronics industry is poised for a cascading disruption that could change industry growth forecasts for the year. Bill McLean, president of semiconductor research firm IC Insights, said the virus has exacerbated the economic unease that has stalled semiconductor capital investment.
“Brexit, trade issues and now the coronavirus are causing global uncertainty,” he said at a Boston-based forum. “Uncertainty causes [businesses and consumers] to freeze.” Worldwide, semiconductor capital spending is forecast to decrease by roughly 6 percent this year, from $103.5 billion in 2019 to roughly $97.6 billion.
Zhang Ming, an economist at government-backed think-tank the Chinese Academy of Social Sciences, warned that the virus could push China’s economic growth below 5 per cent a year in the first quarter, reported the Financial Times. Economic consensus currently puts China’s GDP growth at 5.7 percent. That average has steadily declined since 2018, according to McLean. — EE Times
More than 300 of the Global Top 500 companies have a presence in Wuhan, including Microsoft and Siemens. Wuhan is located in the Hubei Province.
Wuhan has 10 car factories, including those Honda, Renault, PSA and General Motors. The car industry represents around 20 percent of the city’s economy and employs 200,000 people directly and more than a million indirectly.
Here is a look at the main manufacturing regions in China.
-
China Manufacturing Distribution Breakdown
-
Electronic Industry: Mainly in Guangdong (33%), the rest in Yangtze River delta, Sichuan, Shaanxi Provinces.
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Textile Industry: Mainly in Zhejiang (18%) and Jiangsu (20%), the rest in Fujian, Guangdong, Shandong Provinces.
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Leather & Feather: South-East Coastal areas, Hebei, Henan, Chongqing and Ningxia provinces.
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Metal Product: Zhejiang, Guangdong, Jiangsu, Shandong, Hebei, Henan provinces.
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Glass: More in Hebei, Jiangsu, some in Shandong and Guangdong provinces.
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Ceramics: Jingdezhen in Jiangxi provinces
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Furniture: Mainly in Guangdong and Hebei province, the rest in Jiangsu, Zhejiang, Shanghai, Chengdu and Beijing.
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Construction: More in Shandong province, the rest in Hubei, Henan, Guangdong, Jiangsu, Beijing, Zhejiang.
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Household Appliance: Guangdong, Zhejiang, Shandong provinces.
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Artware & Stationary & Sporting: Zhejiang, Fujian, Guangdong, Hubei
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Papermaking & Printing: Guangdong, Zhejiang, Jiangsu, Shandong, Fujian
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Machinery Manufacturing: Dongbei Area, Hunan and Hubei provinces.
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Petrochemical Industry: Shandong (32%), Liaoning (21%), Guangdong (15%)
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Pharmaceutical Industry: Tianjin city, Xian city in Shanxi province
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Food & Beverage: Liaoning, Shandong, Jiangsu, Guangdong, Fujian, Hebei, Henan, Hunan, Hubei, Inner Mongolia
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Transportation Equipment:
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Motor & Bicycle: Taizhou city in Zhejiang province (40%)
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Shipping/Vessel: Yangtze River delta, Pearl River Delta, Bohai Bay Areas
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Automobile: Mainly in Jilin, Hubei, Shanghai and Yangtze River delta, the rest in Pearl River Delta, Beijing
-
Most factories lose about two weeks of production in total during the Lunar Holiday but more production will be lost as the holiday has been extended.
Tyler Durden
Sat, 02/01/2020 – 18:30 -
- Ukrainiain 'Son Of A Bitch Who Got Fired' Files Criminal Complaint Against Biden For Abuse Of Power
Ukrainiain ‘Son Of A Bitch Who Got Fired’ Files Criminal Complaint Against Biden For Abuse Of Power
The Ukrainian prosecutor who Joe Biden bragged about getting fired, Viktor Shokin, has filed a criminal complaint in Kiev against the former Vice President for abusing his power, according to French news outlet Les Crises (confirmed by multiple sources according to PJ Media).
Via Les Crises Shokin writes in his complaint:
During the period 2014-2016, the Prosecutor General’s Office of Ukraine was conducting a preliminary investigation into a series of serious crimes committed by the former Minister of Ecology of Ukraine Mykola Zlotchevsky and by the managers of the company “Burisma Holding Limited “(Cyprus), the board of directors of which included, among others, Hunter Biden, son of Joseph Biden, then vice-president of the United States of America.
The investigation into the above-mentioned crimes was carried out in strict accordance with Criminal Law and was under my personal control as the Prosecutor General of Ukraine.
Owing to my firm position on the above-mentioned cases regarding their prompt and objective investigation, which should have resulted in the arrest and the indictment of the guilty parties, Joseph Biden developed a firmly hostile attitude towards me which led him to express in private conversations with senior Ukrainian officials, as well as in his public speeches, a categorical request for my immediate dismissal from the post of Attorney General of Ukraine in exchange for the sum of US $ 1 billion in as a financial guarantee from the United States for the benefit of Ukraine.
* * *
Shokin says that due to “continued pressure from the Vice President of the United States Joseph Biden to oust me from the job by blackmailing the allocation of financial assistance, I, as the man who places the State interests above my personal interests, I agreed to abandon the post of Prosecutor General of Ukraine.“
* * *
In November, the State department released detailed accusations against the Bidens levied by Shokin and his successor, Yiury Lutsenko. In them, Shokin claims:
“He [Shokin] became involved in a case against Mr. Mykola Zlochevsky the former Minister of Ecology and Natural Resources of Ukraine. The case was opened as a result of Mr. Zlochevsky giving himself/company permits to drill for gas and oil in Ukraine. Mr. Zlochevsky is also the owner of Burisma Holdings.”
“Mr. Shokin stated that there are documents that list five (5) criminal cases in which Mr. Zlochevesky is listed, with the main case being for issuing illegal gas exploration permits. The following complaints are in the criminal case.
- Mr. Zlochevsky was laundering money
- Obtained assets by corrupt acts bribery
- Mr. Zlochevsky removed approximately twenty three million US dollars out of Ukraine without permission
- While seated as the Minister he approved two addition entities to receive permits for gas exploration
- Mr. Zlochevsky was the owner of two secret companies that were part of Burisma Holdings and gave those companies permits which made it possible for him to profit while he was the sitting Minister.
“Mr Shokin further stated that there were several Burisma board appointments were made in 2014 as follows:
- Hunter Biden son of Vice President Joseph Biden
- Joseph Blade former CIA employee assigned to Anti-Terrorist Unit
- Alesksander Kwasnieski former President of Poland
- Devon Archer roomate to the Christopher Heinz the step-son of Mr. John Kerry United States Secretary of State
“Mr. Shokin stated that these appointments were made by Mr. Slochevsky in order to protect himself.“
Shokin then details how in July 2015, “US Ambassador Geoffrey R. Pyatt told him that the investigation has to be handled with white gloves, which according to Mr. Shokin, that implied do nothing. On or about September 2015 Mr. Pyatt gave a speech in Odessa where he stated that the cases were not investigated correctly and that Mr. Shokin may be corrupt.”
“Mr. Shokin further stated that on February of 2016 warrants were placed on the accounts of multiple people in Ukraine. There were requests for information on Hunter Biden to which nothing was received.“
“It is believed that Hunter Biden receives a salary, commission plus one million dollars.”
“President of Ukraine Petro Poroshenko [who Joe Biden threatened to withhold $1 billion in US loan guarantees] told Mr. Shokin not to investigate Burisma as it was not in the interest of Joe and/or Hunter Biden. Mr. Shokin was called into Mr. Poroshenko’s office and told that the investigation into Burisma and the Managing Director where Hunter Biden is on the board, has caused Joe Biden to hold up one billion dollars in US aid to Ukraine.
“Mr. Shokin stated that on or around April of 2016 Mr. Petro Poroshenko called him and told him he had to be fired as the aid to the Ukraine was being withheld by Joe Biden. Mr. Biden told Mr. Poroshenko that he had evidence that Mr. Shokin was corrupt and needed to be fired. Mr. Shokin was dismissed in April of 2016 and the US aid was delivered within one and one half months.”
“On a different point Mr. Shokin believes the current Ambassador Marie L. Yovanovitch denied his visa to travel to the US. Mr. Shokin stated that she is close to Mr. Biden. Mr. Shokin also stated that there were leaks by a person named Reshenko of the Ukrainian State Secret Service about the Manafort Black Book. Mr. Shokin stated that there is possible deceit in the Manafort Black Book.”
Tyler Durden
Sat, 02/01/2020 – 18:00 - "Are You Humans Or Devils?" Chinese Woman Lashes Out At Authorities After Relatives Die From Virus
“Are You Humans Or Devils?” Chinese Woman Lashes Out At Authorities After Relatives Die From Virus
Authored by Olivia Li via The Epoch Times,
A local from Wuhan City videotaped herself lashing out at the Chinese Communist Party (CCP) for the way it handled the coronavirus outbreak that has killed scores of people in China, including her own relative(s). The video was recorded on Jan. 26 and has since gone viral on Chinese social media.
There are several similar videos circulating on Chinese social media, and this woman is so far the only one who eschewed wearing a mask despite the fact that revealing her face could compromise her identity. But she did not reveal her name in the video.
Wuhan, the capital city of Hubei Province, is the epicenter of the deadly novel coronavirus outbreak.
Speaking in a local dialect, she asked angrily, “Chinese Communist Party, when are you going to step down? You promised us that Chinese people will enjoy ‘moderate prosperity’ in 2020, but what have we attained [from you] so far? We lost our relative(s) [because of you]!”
Because there is no plural form in the Chinese language, it is difficult to determine if she has lost more than one relative.
The term “moderate prosperity” has been used in CCP propaganda since the 2000s, when Hu Jintao was leader of China. At the end of 2019, regime propaganda chief Wang Huning launched a nationwide campaign proclaiming that the country’s 2020 plan is to “secure a decisive victory in building a moderately prosperous society in all respects.”
“Tell me, what does it mean to achieve ‘moderate prosperity’?” the woman said. “What does ‘moderate prosperity’ mean to us when people have lost their lives? What on earth are you doing? What do we need such a government for? I beg you, please go away! Step Down! We need good leaders who can help us live a good life. We don’t need such a corrupt government.”
She pointed out that China’s economic prosperity is an illusion and the coronavirus outbreak could put more pressure on the economy. In fact, China’s GDP growth rate of 6 percent in the second half of 2019 was the slowest rate of growth since 1991.
“The soaring home prices and high cost of living have caused hardships for Chinese residents. And now so many people are dying. Everyone will get to see the economic bubble burst,” she said.
“You should bear the consequences of your actions. Do not implicate us ordinary folk. Now we are bearing the brunt of it, and we are being sacrificed for what you have been doing!”
She then asked, “What on earth are you? Are you humans or devils?”
Her video has been shared by many Chinese Twitter and Facebook users. Followers of her video highly praised her tirade. Some said they particularly liked her last question, saying “What a great question, asking Party officials if they are ‘humans or devils’—it is right to the point.”
Several followers commented, “Do not beg the CCP to step down. Overthrow the CCP.”
One of them said, “I heard people say the CCP is on the brink of collapse. Now I really believe it is true.”
Chinese Authorities’ Response to the Outbreak
The first group of whistleblowers of Wuhan pneumonia alerted their social media network on Dec. 30 and 31, revealing that hospitals in Wuhan had identified several cases of SARS-like viral pneumonia.
Wuhan police ordered those whistleblowers to meet with law enforcers at the local police department and forced them to sign an agreement that said they were “spreading rumors.”
Chinese medical authorities tried to downplay the severity of the outbreak and used statements such as “experts ruled out SARS,” “so far there is no clear evidence that the virus is transmitted by human-to-human contact.”
Even when the first explicit warning was issued on Jan. 20, China’s medical expert downplayed the situation by telling the public “limited human-to-human transmission” was confirmed.
Experts say the virus has a 14-day incubation period.
Between Jan. 1 and Jan. 20, the prime time for containing the coronavirus, residents of Wuhan were busy with holiday shopping and meeting with relatives and friends, in preparation for the Chinese New Year. Migratory populations in the city, nearly 5 million, mostly left Wuhan before Jan. 20 for the holiday.
As of now, the coronavirus has spread to all regions in China after Tibet recorded its first case on Jan. 30. Outside of China, more than 18 countries and regions have also reported confirmed cases of the coronavirus, including the United States, Italy, Germany, Canada, Finland, South Korea, Japan, Taiwan, and Hong Kong.
Tyler Durden
Sat, 02/01/2020 – 17:30 - Soros Goes All In Against Mark Zuckerberg With Trump-Facebook Conspiracy Theory
Soros Goes All In Against Mark Zuckerberg With Trump-Facebook Conspiracy Theory
Billionaire George Soros is blaming Facebook and Mark Zuckerberg for helping President Trump win the 2016 election – completely ignoring that Trump’s 2016 digital director (and 2020 campaign manager) Brad Parscale simply outmaneuvered Hillary Clinton’s team when it came to social media.
“Facebook helped Trump to get elected and I am afraid that it will do the same in 2020,” Soros writes in a Friday New York Times Op-Ed, recounting a private conversation he says he had last week at Davos in which he argued “here is a longstanding law — Section 230 of the Communications Decency Act — that protects social media platforms from legal liability for defamation and similar claims. Facebook can post deliberately misleading or false statements by candidates for public office and others, and take no responsibility for them.”
Soros then claims that there appears to be “an informal mutual assistance operation or agreement developing between Trump and Facebook” in which “Facebook will help President Trump to get re-elected and Mr. Trump will, in turn, defend Facebook against attacks from regulators and the media.“
The 89-year-old Hungarian-born billionaire then argues that Parscale’s statement that Facebook ‘helped Mr. Trump’ constitutes “the beginning of a special relationship.”
Parscale, of course, was talking about the Trump campaign’s use of Facebook – not the misleading conspiracy theory Soros is peddling. A quote from Soros’s linked ‘evidence’ reveals just that:
Parscale said the Trump campaign used Facebook to reach clusters of rural voters, such as “15 people in the Florida Panhandle that I would never buy a TV commercial for”.
“I started making ads that showed the bridge crumbling,” he said. “I can find the 1,500 people in one town that care about infrastructure. Now, that might be a voter that normally votes Democrat.” –The Guardian
Soros then points to Zuckerberg’s September, 2019 Oval Office meeting with Trump, and subsequent comments made by the president, as more evidence of collusion.
He then writes:
Facebook’s decision not to require fact-checking for political candidates’ advertising in 2020 has flung open the door for false, manipulated, extreme and incendiary statements. Such content is rewarded with prime placement and promotion if it meets Facebook-designed algorithmic standards for popularity and engagement.
What’s more, Facebook’s design tends to obscure the sources of inflammatory and false content, and fails to adequately punish those who spread false information. Nor does the company effectively warn those who are exposed to lies. -George Soros
Separate of his private conversation, Soros said last week at Davos that “Facebook will work to re-elect Trump and Trump will protect Facebook,” adding “It makes me very concerned about the outcome of 2020.”
Two days later, Hillary Clinton told The Atlantic (from the Sundance Film Festival) that Mark Zuckerberg is an “authoritarian” who “intend[s] to reelect Trump.”
In response to Facebook’s decision to remove a slowed-down video of Nancy Pelosi meant to make her appear drunk, Hillary says: “I said, ‘Why are you guys keeping this up? This is blatantly false. Your competitors have taken it down. And their response was, ‘We think our users can make up their own minds,'” Clinton told the magazine, adding that Facebook is “not just going to reelect Trump, but intend[s] to reelect Trump.”
Tyler Durden
Sat, 02/01/2020 – 17:00 - What If…?
What If…?
Authored by Sven Henrich via NorthmanTrader.com,
What if bears were right all along? What if it’s not different this time?
What if this Fed liquidity inspired rally produced precisely the kind of exuberant final thrust we often see at the end of business cycles? After all, people were really bullish in 2007, people were really bullish in 2000, both final rallies inspired by easy Fed liquidity. In 2000, the Y2k bug, in 2007 giving us the subprime mortgage crisis.
What if this latest rally has produced exactly the same conditions we’ve seen during prior tops?
Be clear: I’m not calling for a top here, that’s a fool’s errand. After all so far all we’ve seen is a minor pullback off of very overbought conditions. Heck, tech hasn’t even begun to correct yet.
But yields keep dropping like a brick, as does the Baltic Dry index, small caps, transports, the banking sector never confirmed new highs, equal weight indicators suggest a major negative divergence inside a market that appears entirely held up by tech, and perhaps by only 5-10 highly valued stocks that are massively technically extended and control more market cap in a few stocks than ever before. At the same time we have a market more extended above underlying GDP than ever and now suddenly a potential trigger nobody saw coming: The coronavirus.
Look, the track record on viruses and diseases over the past 20 years has been clear: Any market impact is temporary and/or minimal at best. Look at SARS in 2003, $SPX rallied over 20% in 2003. But the backdrop was different. The US just came out of a recession and markets had bottomed in 2002. Markets in 2003 were at the beginning of a new business cycle.
This cycle here is old, and one could argue was merely saved again by a Fed going into full easing mode in 2019.
But given the fact that the Fed failed to normalize in the lead up to 2018 and was stopped dead in its tracks because of a 20% market correction and was forced to go back into full easing mode the concern is that the Fed just wasted precious ammunition.
My concern:
Good thing the Fed has been prudent in preserving their ammunition to deal with a real crisis instead of blowing their wad with a bunch of rate cuts & a massive balance sheet expansion at the first sign of an earnings slowdown inspiring a big fat asset bubble in the process.
Oh.
— Sven Henrich (@NorthmanTrader) January 27, 2020
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These very concerns now suddenly very much echoed at Citi:
CITI: “What we find particularly troubling is the potential interaction between the shock from the virus, already stretched market valuations, and central banks approaching the local limits of their ability to prop up markets.”
(via @pattidomm)
— Carl Quintanilla (@carlquintanilla) January 31, 2020
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None of us can know how this plays out, we can’t know when this virus will be contained and subsides. What we do know is that the economic impact is already real, flights are canceled, businesses are shutting down in China, etc.. To the extend that this is all temporary for a couple of weeks, fine, to the extent it drags on for months and the virus spreads quickly in other countries as well it’s not hard to imagine that a vastly richly valued market finds itself in trouble and with it: The global economy.
Markets, except tech, pretty much gave up all their gains in January with many indices now in the red. The potential good news for investors: Markets are approaching oversold readings and could be setting up for a bounce, and a larger relief rally if the news on coronavirus shows improvement, the bad news: Tech hasn’t even begun to correct and technical patterns suggest more downside risks.
And if bears have been right all along on the macro front, then rallies may well remain selling opportunities. And so far, strength in January has proven to be a selling opportunity on the larger market.
For now it’s a ‘What if” and confirmation remains outstanding and won’t come easy. But clearly some of the major banks are starting to ask similar questions.
For the technical chart review please see the market video below:
Please be sure to watch it in HD for clarity.
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Tyler Durden
Sat, 02/01/2020 – 16:30 - 'Corpses Taken Directly To Crematorium' – New Accounts Detail Grisly Operation At Wuhan's Fifth Hospital
‘Corpses Taken Directly To Crematorium’ – New Accounts Detail Grisly Operation At Wuhan’s Fifth Hospital
Radio Free Asia (RFA) has tweeted a disturbing video on its Twitter account on Saturday morning detailing how those who died of coronavirus in Wuhan, the outbreak area in China, were loaded up on a bus and taken “directly to the crematorium.”
RFA said (in a translated tweet): “[Latest Situation of Wuhan Fifth Hospital] Some Wuhan citizens entered Wuhan Fifth Hospital on February 1st and found many patients who died of pneumonia. The corpses were packed directly to the crematorium. Paramedics are busy rescuing the dying patient.”
【武汉市第五医院最新情况】
有武汉市民2月1日进入武汉第五医院，发现多具因肺炎死亡的病人，尸体就地打包直接送去火葬场。医护人员忙于抢救垂死的病人。 pic.twitter.com/CzJN4wlRQj
— 自由亚洲电台 (@RFA_Chinese) February 1, 2020
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RFA’s video is in line with our report from Friday that said those who died of the deadly virus were hauled off to a crematorium in Wuhan by Chinese authorities.
DW News East Asia correspondent William Yang cited a report from the Chinese-language news outlet Initium, which said cremation facilities in Wuhan were receiving bodies directly from hospitals without proper identification and were excluded from the official record.
Just to add a bit more to what was mentioned in the show but I wasn’t able to elaborate on – #China’s state media has been reporting about building new hospitals dedicated to treating #Wuhanvirus patients in multiple provinces and cities, which I think reflect the … https://t.co/ibPqRjfaX0
— William Yang (@WilliamYang120) January 29, 2020
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Also, one thing that #China is hiding is the number of death caused by the virus. Credible Chinese media outlet @initiumnews interviewed people working at local cremation centers, confirming that many dead bodies were sent directly from the hospitals to the cremation centers…
— William Yang (@WilliamYang120) January 29, 2020
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“So, there are reasons to remain skeptical about what China has been sharing with the world because while they have been more transparent about certain things related to the virus, they continue to be sketchy and unreliable in other aspects,” said Yang.
So there are reasons to remain skeptical about what #Chins has been sharing with the world because while they have been more transparent about certain things related to the virus, they continue to be sketchy and unreliable in other aspects.
— William Yang (@WilliamYang120) January 29, 2020
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“Without properly identifying these patients, which means there are patients who died from the virus but not adding to the official record. That shows the current death toll of 133 that we are seeing is way too low,” he said.
… without properly identifying these patients, which means there are patients who died from the virus but not adding to the official record. That shows the current death toll of 133 that we are seeing is way too low.
— William Yang (@WilliamYang120) January 29, 2020
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The closest funeral home/ alleged crematorium is right down the street from Wuhan Fifth Hospital.
Bodies of #nCoV2019 victims should be cremated close by and immediately. Burials or transfer of the bodies not allowed. Funerals not allowed to avoid spread of the virus: National Health Commission (File Photo) pic.twitter.com/IsAHnuY4Rk
— Global Times (@globaltimesnews) February 2, 2020
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We noted Thursday night that over 100,000 Chinese had been placed under observation for suspected coronavirus.
The virus has uncontrollably spread across China, forcing the Trump administration on Friday to restrict entry into the US from the outbreak area.
Putting the coronavirus in the context of the deadly SARS epidemic, the coronavirus pandemic has now officially exceeded SARS in cumulative cases in just two weeks.
Tyler Durden
Sat, 02/01/2020 – 16:00 - The Supers Are Back: DNC Members Planning Move To Block Sanders… Again
The Supers Are Back: DNC Members Planning Move To Block Sanders… Again
In 2016, many of us objected to the concerted effect of the Democratic establishment and the Democratic National Committee to rig the primary for Hillary Clinton.
Later it was revealed that the Clintons had largely taken over the DNC by taking over its debt and the DNC openly harassed and hampered Sanders at every stage.
Despite this effort, Sanders came close to beating Clinton, who has never forgiven him for contesting a primary that she literally bought and paid for with the DNC.
The simmering rage was still evident recently in Clinton’s attack on Sanders and suggestion that she might not support him if he were the nominee (a suggestion that she later took back). She continued her attacks this week and it has served to remind voters, particularly younger voters, of the DNC interference with the primary election. After the scandal, the DNC pledged to reform itself and reduce the power of establishment figures and superdelegates at the convention.
Now, however, Politico is reporting that DNC members are again discussing changing the rules to stop Sanders. This follows the selection of Clinton allies to control the convention and a shocking level of anti-Sanders bias shown by CNN at the last debate.
In the meantime, the DNC has been criticized for clearing the way for Michael Bloomberg by changing its rules to help him make the debates.
Reportedly, a group of Democratic National Committee members are discussing ways to undermine Sanders and allow for a convention stop on his candidacy.
The plan centers around the superdelegates to reverse reforms and allow them to vote on the first ballot. In other words, the supers would be brought back in to keep Sanders out.
William Owen, a Tennessee DNC member, acknowledged the discussion and said that he does not support the effort. He noted that they agreed it could be “tough.” One would hope so. The plan would make a mockery of all of the prior statements of regret and reform after the rigged primary for Clinton. It would confirm in the mind of critics that the DNC is only interested in creating the appearance of democratic choice and only to the extent that the voters do what the establishment expects.
“There’s talk about somehow trying to change this rule at this convention — just casual conversation, and I have participated in it some,” said Don Fowler, a former DNC chairman from South Carolina who opposed the DNC’s decision in 2018 to strip superdelegates of much of their power in the presidential nominating process.
Fowler added, “I think it would be not in good faith if those of us who lost that fight in committee would somehow regenerate that fight in a national convention.”
If they did, he said it would result in “the most hellacious fight you’ve ever seen at the Democratic convention.”
In fairness to the DNC, the report only refers to a small group and it is unlikely to succeed. However, the fact that it is being discussed is alarming after the Clinton attack and the selection of Clinton allies to head the convention. The fear is that Sanders could win Iowa and come to the convention with the most votes. It would challenge the view that Biden is the unassailable nominee — just as he challenged the same view with Clinton.
These moves are likely to only strengthen the resolve of the surging Sanders supporters.
Lie, cheat, steal is still their way, huh? 🤔 https://t.co/4NhzfUQHZ3
— Killer Mike (@KillerMike) February 1, 2020
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Sanders is receiving the most support among young voters — an extraordinary accomplishment given his age and mainstream opposition. The Democratic Party is clearly not willing to move beyond the control and fealty extended to the Clintons. That could easily force a final reckoning at the convention over who controls the Democratic party.
Tyler Durden
Sat, 02/01/2020 – 15:35 - "If You're So Smart, Why Aren't You Rich?": Bridgewater's 'Principles' Don't Apply To Ray Dalio
“If You’re So Smart, Why Aren’t You Rich?”: Bridgewater’s ‘Principles’ Don’t Apply To Ray Dalio
Bridgewater founder Ray Dalio has been a fixture in the financial press for more than a year now as he has transitioned from running his firm to establishing himself as a media commentator and pseudo-prophet, loudly exhorting the public to heed his warnings about capitalism and its shortcomings. Economic inequality is an imminent threat to societal cohesion in the US, Dalio claims. And in a series of disorganized screeds published on LinkedIn and accompanied by charts that were presumably assembled on the fly by a team of Bridgewater analysts (since computers handle most of the actual investing at Bridgewater now), the billionaire has laid out his plan to repair the damage caused by decades of corporate greed (allegedly unleashed during the 1980s by Ronald Reagan’s free-market reforms).
Not only is Dalio’s plan hopelessly unworkable, and not only because it hinges on the emergence of a kind of mythical technocratic champion able to bend Congress to his or her will and push through a slate of reforms that would undoubtedly infuriate corporate America, all while preventing it from doing everything in its power to undermine the administration and its economic agenda in retaliation.
It’s unworkable because we tried all that. The answer to America’s ills isn’t more government giveaways – that’s what got us here. But politics aside, WSJ published a scathing deep dive in its weekend edition examining the turmoil at the top of Bridgewater, which has long been the subject of gossip and speculation in the industry. Dalio is 70 years old, but despite claiming that he’s not really responsible for the company’s day-to-day operations, WSJ reporters found that this isn’t true. Dalio is still very much in charge, and after a series of botched succession plans – which all fell apart because his handpicked executives eventually clashed with Dalio’s dictatorial style – it’s not exactly clear what Bridgewater’s plan is for the coming decades.
Ray Dalio caricature courtesy of WSJ
These questions are being posed at a difficult time for Bridgewater: the firm was recently the target of a harassment complaint filed by a former employee, and last year its flagship fund badly underperformed the market, during a year that was a bonanza for most investors.
Most recently, Eileen Murray, a co-CEO of Bridgewater along with David McCormick, has announced plans to leave the company at the end of Q1. Her decision, announced in December, followed reports that she was in talks to take the top job at scandal-scarred Wells Fargo. However, that job went to former BNY chief Charlie Scharf, and it’s unclear what Murray has in mind for her next move.
Since then, there’s reportedly been some bad blood with Dalio.
Mr. Dalio – who is co-chairman and co-chief investment officer – at age 70 isn’t giving up real control over the business that helped him amass a $19 billion fortune. His word nearly always wins out in debates at Bridgewater on topics from management, staffing and investments to compensation, personnel and the wisdom of meeting with an autocratic head of state, say current and former employees.
Mr. Dalio repeatedly overruled Ms. Murray on whom to hire, fire and promote, according to the current and former employees. She has told several friends she was exhausted and couldn’t do the job anymore.
Ms. Murray is still negotiating the terms of her exit; Mr. Dalio wants to cut the value of her stake in the firm, according to some of the current and former employees. Bridgewater bars employees from independently speaking with the press.
According to WSJ, it all goes to show that all of Dalio’s preaching about ‘radical transparency’ is just that. Talk – at least where Dalio is involved. And that’s why his senior managers never seem to pan out. Because employees at the firm, from the most junior to the most senior, understand that it’s extremely risky to challenge Dalio about anything, lest he respond thusly. Several witnesses told WSJ that Dalio mocked an underling when he objected to Dalio’s plan to meet with Russian President Vladimir Putin.
Several years ago, Mr. Dalio arranged a conversation with Russian President Vladimir Putin to discuss economic policy, said some of these employees. Employees expressed concerns about engaging with the autocratic leader, and Mr. Dalio told one that “if you’re so smart, why aren’t you rich?” according to people who heard the comment.
Mr. Dalio overruled the dissenters. Indeed, Mr. Dalio went on to meet with Mr. Putin several times in person, one of the people said. Other employees believed Mr. Dalio was right to discuss economic policies with Mr. Putin.
Representatives of Mr. Putin declined to comment, and Mr. Dalio declined to comment on the discussions. The company said it does not disclose “who Bridgewater people meet with.”
Would you look at that: Dalio, an ardent critic of President Trump, is a friend and routine business confidant of Putin. We’d be curious to see his FBI file.
Meanwhile, even the most senior employees like Dalio’s current co-CEO (who was just recently abandoned by Murray, his co-CEO) has reportedly complained about a kind of vindictiveness that Dalio displays toward departing employees that manifests in the form of frugality.
Dalio has reportedly worked to reduce senior employees ‘phantom equity’ to which they are entitled upon leaving the firm. However, the senior employees denied this to WSJ.
“He is so cheap,” Mr. McCormick told colleagues late last year, speaking about his boss, according to the contemporaneous notes of one person who heard the comment. “Not only did he want to sell the house but he wanted to get the nickels out of the couch.”
Mr. McCormick said the attempt to reduce his stake “did not happen and I did not make that comment.” He said he has a “terrific working and personal relationship” with Mr. Dalio. He also said “I never discussed a job at BlackRock.” A company spokesman added that Mr. McCormick “never discussed with Larry about leaving Bridgewater.”
Though as much as we might mock Dalio for his obvious hypocrisy and his laughably unimaginative plan to fix capitalism (hint, hint, hint: it involves raising taxes on the rich).
But there’s one thing about Bridgewater that nobody can dispute. The firm remains the world’s most successful hedge fund shop, with few qualified rivals for the crown. Surrounded by a sea of fakers, imitators and interlopers who together suffered some of their worst outflows in recent memory last year, Bridgewater continues to grow, and outperform, despite the flagship fund’s lackluster performance in 2019 (it outperformed by a wide margin the year before).
Since then, Bridgewater has delivered the biggest net gains of any hedge fund, according to a 2019 report from LCH Investments, a result due partly to Bridgewater’s large size. Its investors include endowments, public pension funds and sovereign wealth funds. It manages about $160 billion, making it the largest hedge-fund firm in the world.
But in recent years, Bridgewater has been less than impressive. The flagship hedge fund, Pure Alpha, barely made any money last year despite a banner year for assets of all stripes, according to data reviewed by The Wall Street Journal. It bets on and against markets world-wide in an effort to stay ahead of macroeconomic trends.
A smaller fund called All Weather that makes automated, computer-driven trades gained 16.6%. That lagged the 21.7% return of a Vanguard Group fund that uses a conventional mix of 60% stocks and 40% bonds.
Mr. Dalio has described the investment performance as embarrassing in meetings with staff, according to people familiar with the conversations. The company said in a statement that “we don’t know of any such comment.” It added that “while Bridgewater’s alpha last year was disappointing to Ray it was within the range of expectations.” Mr. Dalio said in a statement that “there is a waiting list to invest” in Pure Alpha, which he said made 10% in 2018 when “most assets were down.”
While we’re sure Dalio will blast the WSJ for fabricating its reporting (he does this every time WSJ writes about him), it’s worth noting that the genius comics behind 1990s sketch comedy “Mr. Show” came up with a name for Dalio’s professed money-based value system.
It’s called Worthington’s Law.
It was created by David Worthington – a truly great man. Quite simply, the law stipulates that an individual’s intelligence and overall value to society increases along with his or her personal fortune. By this logic, Jeff Bezos and Mark Zuckerberg are two of the smartest, most honorable and beloved individuals in all of America. So are Warren Buffett, and Bill Gates.
Oh, and Dalio, of course – but we have a feeling you figured that out already for yourself.
But the billionaire hedge fund founder took a major hit last year when he gave $100 million to the State of Connecticut to improve its schools, step 1 in his plan to save capitalism. But Dalio’s ‘philanthropy’ was a massive PR blunder, and his reputation took a serious hit.
Don’t be like Ray, kids. Hoard your money.
Tyler Durden
Sat, 02/01/2020 – 15:10
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