- Webb: How The CIA, Mossad, & "The Epstein Network" Are Exploiting Mass Shootings To Create An Orwellian Nightmare
Webb: How The CIA, Mossad, & “The Epstein Network” Are Exploiting Mass Shootings To Create An Orwellian Nightmare
Authored by Whitney Webb via MintPressNews.com,
Following the arrest and subsequent death in prison of alleged child sex trafficker Jeffrey Epstein, a little-known Israeli tech company began to receive increased publicity, but for all the wrong reasons. Not long after Epstein’s arrest, and his relationships and finances came under scrutiny, it was revealed that the Israeli company Carbyne911 had received substantial funding from Jeffrey Epstein as well as Epstein’s close associate and former Prime Minister of Israel Ehud Barak, and Silicon Valley venture capitalist and prominent Trump backer Peter Thiel.
Carbyne911, or simply Carbyne, develops call-handling and identification capabilities for emergency response services in countries around the world, including the United States, where it has already been implemented in several U.S. counties and has partnered with major U.S. tech companies like Google. It specifically markets its product as a way of mitigating mass shootings in the United States without having to change existing U.S. gun laws.
Yet, Carbyne is no ordinary tech company, as it is deeply connected to the elite Israeli military intelligence division, Unit 8200, whose “alumni” often go on to create tech companies — Carbyne among them — that frequently maintain their ties to Israeli intelligence and, according to Israeli media reports and former employees, often “blur the line” between their service to Israel’s defense/intelligence apparatus and their commercial activity. As this report will reveal, Carbyne is but one of several Israeli tech companies marketing themselves as a technological solution to mass shootings that has direct ties to Israeli intelligence agencies.
In each case, these companies’ products are built in such a way that they can easily be used to illegally surveil the governments, institutions and civilians that use them, a troubling fact given Unit 8200’s documented prowess in surveillance as a means of obtaining blackmail and Israel’s history of using tech companies to aggressively spy on the U.S. government. This is further compounded by the fact that Unit 8200-linked tech companies have previously received U.S. government contracts to place “backdoors” into the U.S.’ entire telecommunications system as well as into the popular products of major American tech companies including Google, Microsoft and Facebook, many of whose key managers and executives are now former Unit 8200 officers.
Israeli Prime Minister Benjamin Netanyahu has made it no secret that placing Unit 8200 members in top positions in multinational tech companies is a “deliberate policy” meant to ensure Israel’s role as the dominant global “cyber power”, while also combating non-violent boycott movements targeting Israel’s violations of international law and stifling the United Nations’ criticisms of Israeli government policy and military operations abroad.
As Jeffrey Epstein’s links to intelligence in both the United States and Israel — the subject of a recent four-part series exclusive to MintPress — began to be revealed in full, his financing of Carbyne came under scrutiny, particularly for the company’s deep ties to Israeli intelligence as well as to certain Americans with known connections to U.S. intelligence. Ehud Barak’s own role as both financier and chairman of Carbyne has also added to that concern, given his long history of involvement in covert intelligence operations for Israel and his long-standing ties to Israeli military intelligence.
Another funder of Carbyne, Peter Thiel, has his own company that, like Carbyne, is set to profit from the Trump administration’s proposed hi-tech solutions to mass shootings. Indeed, after the recent shooting in El Paso, Texas, President Trump — who received political donations from and has been advised by Thiel following his election — asked tech companies to “detect mass shooters before they strike,” a service already perfected by Thiel’s company Palantir, which has developed “pre-crime software” already in use throughout the country. Palantir is also a contractor for the U.S. intelligence community and also has a branch based in Israel.
Perhaps most disturbing of all, whatever technological solution is adopted by the Trump administration, it is set to use a controversial database first developed as part of a secretive U.S. government program that involved notorious Iran-Contra figures like Oliver North as a means of tracking and flagging potential American dissidents for increased surveillance and detention in the event of a vaguely defined “national emergency.”
As this report will reveal, this database — often referred to as “Main Core” — was created with the involvement of Israeli intelligence and Israel remained involved years after it was developed, and potentially to the present. It was also used by at least one former CIA official on President Reagan’s National Security Council to blackmail members of Congress, Congressional staffers and journalists, among others.
Given recent reports on the Trump administration’s plan to create a new government agency to use “advanced technology” to identify “neurobehavioral signs” of “someone headed toward a violent explosive act” using data collected by consumer electronic devices, the picture painted by the technology currently being promoted and implemented under the guise of “keeping Americans safe” is deeply Orwellian. In fact, it points directly to the genesis of a far-reaching surveillance state far more extensive than anything yet seen in American history and it is being jointly developed by individuals connected to both American and Israeli intelligence.
Demystifying Carbyne
Carbyne911, which will be referred to simply as Carbyne in this report, is an Israeli tech-startup that promises to revolutionize how calls are handled by emergency service providers, as well as by governments, corporations and educational institutions. Not long after it was founded in 2014 by veterans of Israeli military intelligence, Carbyne began to be specifically marketed as a solution to mass shootings in the United States that goes “beyond the gun debate” and improves the “intelligence that armed emergency responders receive before entering an armed shooter situation” by providing video-streaming and acoustic input from civilian smartphones and other devices connected to the Carbyne network.
Prior to Jeffrey Epstein’s arrest in July, Carbyne had been receiving high praise from U.S. and Israeli media, with Fox News hailing the company’s services as the answer to the U.S.’ “aging 911 systems” and the Jerusalem Post writing that the company’s platform offers “hi-tech protection to social workers and school principals.” Other reports claimed that Carbyne’s services result in “a 65% reduction in time-to-dispatch.”
Carbyne’s call-handling/crisis management platform has already been implemented in several U.S. counties and the company has offices not only in the U.S. but also in Mexico, Ukraine and Israel. Carbyne’s expansion to more emergency service provider networks in the U.S. is likely, given that federal legislation seeks to offer grants to upgrade 911 call centers throughout the country with the very technology of which Carbyne is the leading provider. One of the main lobby groups promoting this legislation, the National Emergency Number Association (NENA), has a “strong relationship” with Carbyne, according to Carbyne’s website. In addition, Carbyne has also begun marketing its platform for non-emergency calls to governments, educational institutions and corporations.
Yet, what seemed like the inevitability of Carbyne’s widespread adoption in the U.S. hit a snag following the recent arrest and subsequent death of sex trafficker and pedophile Jeffrey Epstein, who exploited underage girls for the purpose of obtaining “blackmail” on the rich and poweful, an operation that had clear ties to intelligence. Epstein, after his first arrest and light sentence for soliciting sex from a minor in 2007, was tapped by former Israeli Prime Minister and former head of Israeli military intelligence Ehud Barak, to become a key financial backer of Carbyne.
Ehud Barak, center, poses with Carbyne co-founders Alex Dizengof, Amir Elichai and Lital Leshem. Photo | Yossi Seliger
As a result of increased scrutiny of Epstein’s business activities and his ties to Israel, particularly to Barak, Epstein’s connection to Carbyne was revealed and extensively reported on by the independent media outlet Narativ, whose exposé on Carbyne revealed not only some of the key intelligence connections of the start-up company but also how the architecture of Carbyne’s product itself raises “serious privacy concerns.”
MintPress detailed many of Carbyne’s main intelligence connections in Part III of the investigative series “Inside the Jeffrey Epstein Scandal: Too Big to Fail.” In addition to Barak — former Israeli prime minister and former head of Israeli military intelligence — serving as Carbyne’s chairman and a key financer, the company’s executive team are all former members of Israeli intelligence, including the elite military intelligence unit, Unit 8200, which is often compared to the U.S. National Security Agency (NSA).
Carbyne’s current CEO, Amir Elichai, served in Unit 8200 and tapped former Unit 8200 commander and current board member of AIPAC Pinchas Buchris to serve as the company’s director and on its board. In addition to Elichai, another Carbyne co-founder, Lital Leshem, also served in Unit 8200 and later worked for Israeli private spy company Black Cube. The only Carbyne co-founder that didn’t serve in Unit 8200 is Alex Dizengof, who previously worked for Israel’s Prime Minister’s office.
As MintPress noted in a past report detailing Israeli military intelligence’s deep ties to American tech giant Microsoft, Unit 8200 is an elite unit of the Israeli Intelligence corps that is part of the IDF’s Directorate of Military Intelligence and is involved mainly in signal intelligence (i.e., surveillance), cyberwarfare and code decryption. It is frequently described as the Israeli equivalent of the NSA and Peter Roberts, senior research fellow at Britain’s Royal United Services Institute, characterized the unit in an interview with the Financial Times as “probably the foremost technical intelligence agency in the world and stand[ing] on a par with the NSA in everything except scale.”
Notably, the NSA and Unit 8200 have collaborated on numerous projects, most infamously on the Stuxnet virus as well as the Duqu malware. In addition, the NSA is known to work with veterans of Unit 8200 in the private sector, such as when the NSA hired two Israeli companies, to create backdoors into all the major U.S. telecommunications systems and major tech companies, including Facebook, Microsoft and Google. Both of those companies, Verint and Narus, have top executives with ties to Israeli intelligence and one of those companies, Verint (formerly Comverse Infosys), has a history of aggressively spying on U.S. government facilities. Unit 8200 is also known for spying on civilians in the occupied Palestinian territories for “coercion purposes” — i.e., gathering info for blackmail — and also for spying on Palestinian-Americans via an intelligence-sharing agreement with the NSA.
Unlike many other Unit 8200-linked start-ups, Carbyne also boasts several tie-ins to the Trump administration, including Palantir founder and Trump ally Peter Thiel — another investor in Carbyne. In addition, Carbyne’s board of advisers includes former Palantir employee Trae Stephens, who was a member of the Trump transition team, as well as former Secretary of Homeland Security Michael Chertoff. Trump donor and New York real-estate developer Eliot Tawill is also on Carbyne’s board, alongside Ehud Barak and Pinchas Buchris.
Yet, privacy concerns with Carbyne go beyond the company’s ties to Israeli intelligence and U.S. intelligence contractors like Peter Thiel. For instance, Carbyne’s smartphone app extracts the following information from the phones on which it is installed:
Device location, video live-streamed from the smartphone to the call center, text messages in a two-way chat window, any data from a user’s phone if they have the Carbyne app and ESInet, and any information that comes over a data link, which Carbyne opens in case the caller’s voice link drops out.” (emphasis added)
According to Carbyne’s website, this same information can also be obtained from any smartphone, even if it does not have Carbyne’s app installed, if that phone calls a 911 call center that uses Carbyne or merely any other number connected to Carbyne’s network.
Carbyne gathers data points from users’ phones as well as a myriad of other web-connected devices.
Carbyne is a Next-Generation 9-11 (NG911) platform and the explicit goal of NG911 is for all 911 systems nationwide to become interconnected. Thus, even if Carbyne is not used by all 911 call centers using an NG911 platform, Carbyne will ostensibly have access to the data used by all emergency service providers and devices connected to those networks. This guiding principle of NG911 also makes it likely that one platform will be favored at the federal level to foster such interconnectivity and, given that it has already been adopted by several counties and has ties to the Trump administration, Carbyne is the logical choice.
Another cause for concern is how other countries have used platforms like Carbyne, which were first marketed as emergency response tools, for the purpose of mass surveillance. Narativnoted the following in its investigation of Carbyne:
In May, Human Rights Watch revealed Chinese authorities use a platform not unlike Carbyne to illegally surveil Uyghurs. China’s Integrated Joint Operations Platform brings in a much bigger data-set and sources of video, which includes an app on people’s phones. Like Carbyne, the platform was designed to report emergencies. Chinese authorities have turned it into a tool of mass surveillance.
Human Rights Watch reverse-engineered the app. The group discovered the app automatically profiles a user under 36 “person types” including “followers of Six Lines” which is the term used to identify Uyghurs. Another term refers to “Hajj,” the annual Islamic pilgrimage to Mecca. The app monitors every aspect of a user’s life, including personal conversations [and] power usage, and tracks a user’s movement.”
Such technology is currently used by Israeli military intelligence and Israel’s domestic intelligence agency Shin Bet to justify “pre-crime” detentions of Palestinians in the occupied West Bank. As will be noted in greater detail later in this report, Palestinians’ comments on social media are tracked by artificial intelligence algorithms that flag them for indefinite detention if they write social media posts that contain “tripwire” phrases such as “the sword of Allah.”
Carbyne’s platform has its own “pre-crime” elements, such as it’s c-Records component, which stores and analyzes information on past calls and events that pass through its network. This information “enables decision makers to accurately analyze the past and present behavior of their callers, react accordingly, and in time predict future patterns.” (emphasis added)
Concerns have recently been raised that “pre-crime” technology may soon become more widely adopted in the U.S., after President Trump stated that one of his planned solutions to mass shootings in the wake of the recent tragedy in El Paso was for big tech companies to detect potential shooters before they strike.
Israeli intelligence, Blackmail and Silicon Valley
Though many of the individuals involved in funding or managing Carbyne have proven ties to intelligence, a closer look into several of these players reveals even deeper connections to both Israeli and U.S. intelligence.
One of Carbyne’s clearest connections to Israeli intelligence is through its chairman and one of its funders, Ehud Barak. Though Barak is best known for being a former prime minister of Israel, he is also a former minister of defense and the former head of Israeli military intelligence. He oversaw Unit 8200’s operations, as well as other units of Israeli military intelligence, in all three of those positions. For most of his military and later political career, Barak has been closely associated with covert operations.
Prior to the public scrutiny of Barak’s relationship to Jeffrey Epstein, following the latter’s arrest this past July and subsequent death, Barak had come under fire for his ties to disgraced film mogul Harvey Weinstein. Indeed, it was Ehud Barak who put Weinstein in contact with the Israeli private intelligence outfit Black Cube, which employs former Mossad agents and Israeli military intelligence operatives, as Weinstein sought to intimidate the women who had accused him of sexual assault and sexual harassment. Former Mossad director Meir Dagan led Black Cube’s board until his death in 2016 and Carbyne co-founder Lital Leshem is Black Cube’s former director of marketing.
After Barak put him in contact with Black Cube’s leadership, Weinstein, according to The New Yorker, used the private spy firm to “‘target,’ or collect information on, dozens of individuals, and compile psychological profiles that sometimes focused on their personal or sexual histories.” In addition, The New Yorker noted that “Weinstein monitored the progress of the investigations personally” and “also enlisted former employees from his film enterprises to join in the effort, collecting names and placing calls that, according to some sources who received them, felt intimidating.”
Yet, more recently, it has been Barak’s close relationship to Epstein that has raised eyebrows and opened him up to political attacks from his rivals. Epstein and Barak were first introduced by former Israeli Prime Minister Shimon Peres in 2002, a time when Epstein’s pedophile blackmail and sex trafficking operation was in full swing.
Barak was a frequent visitor to Epstein’s residences in New York, so often that The Daily Beastreported that numerous residents of an apartment building linked to Epstein “had seen Barak in the building multiple times over the last few years, and nearly half a dozen more described running into his security detail,” adding that “the building is majority-owned by Epstein’s younger brother, Mark, and has been tied to the financier’s alleged New York trafficking ring.” Specifically, several apartments in the building were “being used to house underage girls from South America, Europe and the former Soviet Union,” according to a former bookkeeperemployed by one of Epstein’s main procurers of underage girls, Jean Luc Brunel.
Barak is also known to have spent the night at one of Epstein’s residences at least once, was photographed leaving Epstein’s residence as recently as 2016, and has admitted to visiting Epstein’s island, which has sported nicknames including “Pedo Island,” “Lolita Island” and “Orgy Island.” In 2004, Barak received $2.5 million from Leslie Wexner’s Wexner Foundation, where Epstein was a trustee as well as one of the foundation’s top donors, officially for unspecified “consulting services” and “research” on the foundation’s behalf.
In 2015, Barak formed a limited partnership company in Israel for the explicit purpose of investing in Carbyne (then known as Reporty) and invested millions of dollars in the company, quickly becoming a major shareholder and subsequently the company’s public face and the chairman of its board. At least $1 million of the money invested in this Barak-created company that was later used to invest in Carbyne came from the Southern Trust Company, which was owned by Jeffrey Epstein.
In July, Bloomberg reported that Epstein’s Southern Trust Company is identified in U.S. Virgin Islands filings as “a DNA database and data mining” company. Given Carbyne’s clear potential for data-mining and civilian profiling, Epstein’s investment in Carbyne using this specific company suggests that Carbyne’s investors have long been aware of this little advertised aspect of Carbyne’s product.
In a statement to the Israeli newspaper Haaretz, Barak asserted:
I saw the business opportunity and registered a partnership in my control in Israel. A small number of people I know invest in it…Since these are private investments, it wouldn’t be proper or right for me to expose the investors’ details.”
However, Barak later admitted that Epstein had been one of the investors.
MintPress’ recent series on the Jeffrey Epstein scandal noted in detail Epstein’s ties to CIA/Mossad intelligence assets, such as Adnan Khashoggi; CIA front companies, such as Southern Air Transport; and organized crime, through his close association with Leslie Wexner. In addition, Epstein’s long-time “girlfriend” and alleged madam, Ghislaine Maxwell, has family links to Israeli intelligence through her father, Robert Maxwell. While it appears that Epstein may have been working for more than one intelligence agency, Zev Shalev, former executive producer for CBS News and journalist at Narativ, recently stated that he had independently confirmed with two unconnected sources “closely connected to the Epstein story and in a position to know” that Epstein had “worked for Israeli military intelligence.”
Exclusive: We have two independent sources confirming Jeffrey Epstein worked for Israeli military intelligence. In each case the source is closely connected to the Epstein story and in a position to know. You can take it to the bank. @narativlive https://t.co/BdK1DrZEO6
— Zev Shalev (@ZevShalev) August 20, 2019
Notably, Epstein, who was known for his interest in obtaining blackmail through the sexual abuse of the underaged girls he exploited, also claimed to have “damaging information” on prominent figures in Silicon Valley. In a conversation last year with New York Times reporter James Stewart, Epstein claimed to have “potentially damaging or embarrassing” information on Silicon Valley’s elite and told Stewart that these top figures in the American tech industry “were hedonistic and regular users of recreational drugs.” Epstein also told Stewart that he had “witnessed prominent tech figures taking drugs and arranging for sex” and claimed to know “details about their supposed sexual proclivities.”
In the lead-up to his recent arrest, Jeffrey Epstein appeared to have been attempting to rebrand as a “tech investor,” as he had done interviews with several journalists including Stewart about technology investing in the months before he was hit with federal sex trafficking charges.
Jessica Lessin, editor-in-chief of The Information, told Business Insider that a journalist working for The Information had interviewed Epstein a month before his recent arrest because “he was believed to be an investor in venture capital funds.” However, Lessin claimed that the interview was not “newsworthy” and said the site had no plans to publish its contents. Business Insider claimed that the way the interviews with Epstein had been arranged “suggests that someone in Silicon Valley may have been trying to help Epstein connect with reporters.”
Though it is unknown exactly which Silicon Valley figures were most connected to Epstein and which tech executives were potentially being blackmailed by Epstein, it is known that Epstein associated with several prominent tech executives, including Google co-founder Sergey Brin, Facebook co-founder Mark Zuckerberg, Tesla CEO Elon Musk, Microsoft co-founder Bill Gates, and LinkedIn co-founder Reid Hoffman.
Last year, Epstein claimed to be advising Tesla and Elon Musk, who had been previously photographed with Epstein’s alleged madam Ghislaine Maxwell. A few years ago, Epstein also attended a dinner hosted by LinkedIn’s Reid Hoffman, where Musk had allegedly introducedEpstein to Mark Zuckerberg. Google’s Sergey Brin is known to have attended a dinner hosted by Epstein at his New York residence where Donald Trump was also in attendance.
Elon Musk with Epstein’s alleged madam Ghislaine Maxwell at an Oscars after-party on March 2, 2014. Kevin Mazur | VF14
These associations suggest that the person in Silicon Valley who was trying to boost Epstein’s image as a tech investor before his arrest may have been Peter Thiel, whose Founders Fund had also invested in Carbyne. Thiel was an early investor in Facebook and is still on its board, connecting him to Zuckerberg; he is also a funder of Elon Musk’s SpaceX and a former colleague of Musk’s through PayPal. In addition, Thiel has ties to Reid Hoffman and both Thiel and Hoffman are prominent backers of Facebook.
It is unknown whether Epstein’s “damaging information” and apparent blackmail on notable individuals in the American technology industry were used to advance the objectives of Carbyne, which recently partnered with tech giants Google and Cisco Systems — and, more broadly, the expansion of Israeli intelligence-linked tech companies into the American tech sector, particularly through the acquisition of Israeli tech start-ups linked to Unit 8200 by major U.S. tech companies.
The latter seems increasingly likely given that the father of Ghislaine Maxwell — one of Epstein’s chief co-conspirators in his intelligence-linked sexual blackmail operation involving minors — was a Mossad operative who helped sell software that had been bugged by Israeli intelligence to government agencies and sensitive facilities around the world, including in the United States.
As will be noted later in this report, Israel’s Prime Minister Benjamin Netanyahu — to whom all of Israel’s intelligence agencies answer by virtue of his position — has stated on more than one occasion that the acquisition of Israeli intelligence-linked start-ups by foreign tech giants, especially in Silicon Valley, is a current and “deliberate policy” of the state of Israel.
Carbyne’s ties to U.S. intelligence
While Epstein and Barak are the two financiers of Carbyne whose ties to intelligence are clearest, another funder of Carbyne, Peter Thiel, has ties to U.S. intelligence and a history of investing in other companies founded by former members of Unit 8200. Thiel co-founded and still owns a controlling stake in the company Palantir, which was initially funded with a $2 million investment from the CIA’s venture capital fund In-Q-Tel and quickly thereafter became a contractor for the CIA.
After the success of its contract with the CIA, Palantir became a contractor for a variety of federal agencies, including the FBI, the Defense Intelligence Agency (DIA), the National Security Agency (NSA), the Department of Homeland Security(DHS) and the military’s Special Operations Command, among others. Last year, it won a contract to create a new battlefield intelligence system for the U.S. Army. Palantir is also in demand for its “pre-crime technology,” which has been used by several U.S. police departments. According to the Guardian, “Palantir tracks everyone from potential terrorist suspects to corporate fraudsters, child traffickers and what they refer to as ‘subversives’… it is all done using prediction.”
Thiel has gained attention in recent years for his support of President Trump and for becoming an adviser to Trump following the 2016 election, when he was “a major force in the transition,” according to Politico, and “helped fill positions in the Trump administration with former staff.” One of those former staffers was Trae Stephens, who is also on Carbyne’s board of advisers. Thiel also has business ties to Trump’s son-in-law and influential adviser, Jared Kushner, as well as to Kushner’s brother Josh. A senior Trump campaign aide told Politico in 2017 that “Thiel is immensely powerful within the administration through his connection to Jared.”
Thiel has also backed some prominent Israeli tech start-ups connected to Unit 8200, such as BillGuard, which Thiel funded along with former Google CEO Eric Schmidt and other investors. BillGuard was founded by Raphael Ouzan, a former officer in Unit 8200, who serves on the board of directors of Start-Up Nation Central (SUNC) alongside neoconservative American hedge fund manager Paul Singer, neoconservative political operative and adviser Dan Senor, and Terry Kassel, who works for Singer at his hedge fund, Elliott Management.
Peter Thiel greets Netanyahu during a 2017 meeting in Israel. Photo | Israel PM
SUNC is an organization founded by Paul Singer, who has donated heavily to both President Trump and Israeli Prime Minister Netanyahu. Since it was founded in 2012, SUNC has sought to integrate Unit 8200-connected Israeli tech start-ups into foreign companies, primarily American companies, and has helped oversee the shift of thousands of high-paying tech jobs from the U.S. to Israel.
Another Carbyne-connected individual worth noting is the former head of the Department of Homeland Security, Michael Chertoff, who serves on Carbyne’s board of advisers. In addition to Chertoff’s ties to DHS, Chertoff’s company, The Chertoff Group, employees several prominent former members of the U.S. intelligence community as principals, including Michael Hayden, former director of the CIA and former director of the NSA; and Charles Allen, former assistant director of Central Intelligence for Collection at the CIA, who worked at the agency for over 40 years.
The Chertoff Group has a long-standing and lucrative contract with the company OSI Systems, which produces full-body scanners and markets itself as a solution to mass shootings and crisis events, not unlike Carbyne. While Chertoff’s company was advising OSI Systems, Chertoff went on a media blitz to promote the widespread use of the machines produced by OSI Systems and even called on Congress to “fund a large-scale deployment of next-generation systems.” Chertoff did not disclose his conflict of interest while publicly promoting OSI’s full-body scanners.
Some have also alleged that Chertoff’s mother, Livia Eisen, had links to Israeli intelligence. According to her 1998 obituary, cited by both researcher/author Christopher Bollyn and journalist Jonathan Cook, Eisen participated in the Mossad operation code-named “Magic Carpet” while working for Israel’s El Al Airlines. Both Bollyn and Cook have suggested that Eisen’s participation in this covert Israeli intelligence operation strongly indicates that she had ties to the Mossad.
Melding into Silicon Valley
Beyond its troubling connections to Silicon Valley oligarchs, Israeli military intelligence and the U.S.-military industrial complex, Carbyne’s recent partnerships with two specific technology companies — Google and Cisco Systems — raise even more red flags.
Carbyne announced its partnership with Cisco Systems this past April, with the latter announcing that it would begin “aligning its unified call manager with Carbyne’s call-handling platform, allowing emergency call centers to collect data from both 911 callers and nearby government-owned IoT [Internet of Things] devices.” A report on the partnership published by Government Technology magazine stated that “Carbyne’s platform will be integrated into Cisco Kinetic for Cities, an IoT data platform that shares data across community infrastructure, smart city solutions, applications and connected devices.” The report also noted that “Carbyne will also be the only 911 solution in the Cisco Marketplace.”
As part of the partnership, Carbyne’s President of North American Operations Paul Tatro told Government Technology that the Carbyne platform would combine the data it obtains from smartphones and other Carbyne-connected devices with “what’s available through nearby Cisco-connected road cameras, roadside sensors, smart streetlamps, smart parking meters or other devices.” Tatro further asserted that “Carbyne can also analyze data that’s being collected by Cisco IoT devices … and alert 911 automatically, without any person making a phone call, if there appears to be a worthy problem,” and expressed his view that soon most emergency calls will not be made by human beings but “by smart cars, telematics or other smart city devices.”
A few months after partnering with Cisco Systems, Carbyne announced its partnership with Google on July 10, just three days after Carbyne funder Jeffrey Epstein was arrested in New York on federal sex trafficking charges. Carbyne’s press release of the partnership described how the company and Google would be teaming up in Mexico “to offer advanced mobile location to emergency communications centers (ECCs) throughout Mexico” following the conclusion of a successful four-week pilot program between Carbyne and Google in the Central American nation.
Google Executive Chairman Eric Schmidt meets Netanyahu at his Jerusalem office. Israel PM | YouTube
The press release also stated:
Carbyne will provide Google’s Android ELS (Emergency Location Service) in real time from emergency calls made on AndroidTM devices. Deployment for any ECC in the country won’t require any integration, with Carbyne providing numerous options for connection to their secure ELS Gateway once an ECC is approved. The Carbyne automated platform, requiring no human interaction, has the potential to save thousands of lives each year throughout Mexico.”
The reason Carybne’s partnerships with Cisco Systems and Google are significant lies in the role that Cisco and former Google CEO Eric Schmidt have played in the creation of a controversial “incubator” for Israeli tech start-ups with deep ties to Israeli military intelligence, American neoconservative donor Paul Singer, and the U.S.’ National Security Agency (NSA).
This company, called Team8, is an Israeli company-creation platform whose CEO and co-founder is Nadav Zafrir, former commander of Unit 8200. Two of the company’s other three co-founders are also “alumni” of Unit 8200. Among Team8’s top investors is Schmidt, the former CEO of Google, who also joined Peter Thiel in funding the Unit 8200-linked BillGuard, as well as major tech companies including Cisco Systems and Microsoft.
Last year, Team8 controversially hired the former head of the NSA and U.S. Cyber Command, Retired Admiral Mike Rogers, and Zafrir stated that his interest in hiring Rogers was that Rogers would be “instrumental in helping strategize” Team8’s expansion in the United States. Jake Williams, a veteran of NSA’s Tailored Access Operations (TAO) hacking unit, told CyberScoop:
Rogers is not being brought into this role because of his technical experience. …It’s purely because of his knowledge of classified operations and his ability to influence many in the U.S. government and private-sector contractors.”
Team8 has also been heavily promoted by Start-Up Nation Central (SUNC). SUNC prominently features Team8 and Zafrir on the cybersecurity section of its website and also sponsored a talkby Zafrir and an Israeli government economist at the World Economic Forum, often referred to as “Davos,” that was attended personally by Paul Singer.
SUNC itself has deep ties to Israeli military intelligence, with former Unit 8200 officer Raphael Ouzan serving on its board of directors. Another example of SUNC-Unit 8200 ties can be seen with Inbal Arieli, who served as SUNC’s Vice President of Strategic Partnerships from 2014 to 2017 and continues to serve as a senior adviser to the organization. Arieli, a former lieutenant in Unit 8200, is the founder and head of the 8200 Entrepreneurship and Innovation Support Program (EISP), which was the first start-up accelerator in Israel aimed at harnessing “the vast network and entrepreneurial DNA of [Unit] 8200 alumni” and is currently one of the top company accelerators in Israel, alongside Team8. Arieli was the top executive at 8200 EISP while working at SUNC and several other top SUNC staffers are also connected to Israeli military intelligence.
Thus, Google and Cisco’s connections to Team8 suggests that their partnerships with another Israeli military intelligence-connected firm like Carbyne is a deepening of those two companies’ links to the growing bi-national security state that is uniting key players in the U.S. military-industrial complex and Israeli intelligence.
Mossad-backed Panic Buttons, coming to a school near you
Carbyne is hardly the only Israeli intelligence-linked tech company marketing itself in the United States as a solution to mass shootings. Another Israeli start-up, known as Gabriel, was founded in 2016 in response to a shooting in Tel Aviv and the Pulse Nightclub shooting in the United States, which took place just days apart.
Created by Israeli-American Yoni Sherizen and Israeli citizen Asaf Adler, Gabriel is similar to Carbyne in the sense that elements of its crisis response platform require installation on civilian smartphones as well as devices used by crisis responders. The main difference is that Gabriel also installs one or a series of physical “panic buttons,” depending on the size of the building to be secured, that also double as video and audio communication devices connected to the Gabriel network.
As with Carbyne, the ties between Gabriel and Israeli intelligence are obvious. Indeed, Gabriel’s four-person advisory board includes Ram Ben-Barak, former deputy director of the Mossad and former director-general of Israel’s intelligence ministry; Yohanan Danino, former chief of police for the state of Israel; and Kobi Mor, former director of overseas missions for the Israeli intelligence agency Shin Bet. The only American on the advisory board is Ryan Petty, the father of a Parkland shooting victim and friend of former Florida Governor Rick Scott.
Gabriel’s only disclosed funder is U.S.-based MassChallenge, a start-up accelerator non-profit. Gabriel is funded by MassChallenge’s Israel branch, which was opened six months prior to Gabriel’s creation and is partnered with the Israeli government and the Kraft Group. The Kraft Group is managed by Robert Kraft, who is currently embroiled in a prostitution scandal and is also a close friend of President Trump.
Notably, one of MassChallenge Israel’s featured experts is Wendy Singer, the executive director of SUNC, the organization created and funded by neoconservative Trump backer Paul Singer with the explicit purpose of promoting Israel’s tech start-ups and their integration into foreign, chiefly American, businesses. As was noted in a recent MintPress report on SUNC, Wendy Singer is the sister of neoconservative political operative Dan Senor, who founded the now-defunct Foreign Policy Initiative with Robert Kagan and Bill Kristol, and was previously the director of AIPAC’s Israel office for 16 years.
Gabriel’s founders have been quite upfront about the fact that the uptick in shootings in the U.S. has greatly aided their company’s growth and success. Last November, Sherizen told The Jerusalem Post that new mass shootings in the U.S. not only increased U.S. demand for his company’s product but also were opportunities to show the effectiveness of Gabriel’s approach:
Unfortunately every month there seems to be another high-profile event of this nature. After the Vegas shooting, we were able to show [that] our system would have managed to identify the location of the shooter much quicker.”
The Jerusalem Post noted that Gabriel is set to make considerable profits if concern over mass shootings continues to build in the U.S., writing:
With more than 475,000 soft targets across the US and amid increasing security fears, the potential market for Gabriel is huge. The company could gain revenues of almost $1 billion if only 10% of soft targets were to invest around $20,000 in its alert systems.”
Sherizen told the Jerusalem Post:
Our starter kit costs $10,000. Depending on the size and makeup of the community building, it would cost between $20-30,000 to fully outfit the location. We have made it very affordable. This is a game-changer for the lock-down and active shooter drills that are now a standard part of any child’s upbringing in the States.”
Much more than just a start-up
While it is certainly possible that numerous former officials and commanders of elite Israeli intelligence agencies may have no ulterior motive in advising or founding technology start-up companies, it is worth pointing out that top figures in Israel’s military intelligence agencies and the Mossad don’t see it that way.
Last March, Israeli media outlet Calcalist Tech published a report entitled “Israel Blurs the Line Between Defense Apparatus and Local Cybersecurity Hub,” which noted that “since 2012, cyber-related and intelligence projects that were previously carried out in-house in the Israeli military and Israel’s main intelligence arms are transferred to companies that in some cases were built for this exact purpose.” (emphasis added)
The article notes that beginning in 2012, Israel’s intelligence and military intelligence agencies began to outsource “activities that were previously managed in-house, with a focus on software and cyber technologies.” (emphasis added)
It continues:
In some cases, managers of development projects in the Israeli military and intelligence arms were encouraged to form their own companies, which then took over the project,’ an Israeli venture capitalist familiar with the matter told Calcalist Tech.”
Notably, Calcalist Tech states that the controversial company Black Cube was created this way and that Black Cube had been contracted, and is likely still contracted, by Israel’s Ministry of Defense. The private security agency Black Cube is known to have two separate divisions for corporations and governments. The firm was recently caught attempting to undermine the Iran nuclear deal — then also a top political objective of Israeli Prime Minister Benjamin Netanyahu — by attempting to obtain information on the “financial or sexual impropriety” (i.e., blackmail) of top U.S. officials involved in drafting the accord. NBC News noted last year that “Black Cube’s political work frequently intersects with Israel’s foreign policy priorities.” As previously mentioned, one of Carbyne’s co-founders — Lital Leshem, also a veteran of Unit 8200 — worked for Black Cube prior to starting Carbyne.
The entrance to Black Cube’s offices on the 26th floor of a Tel Aviv high rise, Feb. 8, 2019. Raphael Satter | AP
One of the main companies profiled in the Calcalist Tech report appeared to be a front for Israeli intelligence, as its registered owner was found not to exist: even high-level employees at the company had never heard of him; his registered addresses were for nonexistent locations in Israel’s capital of Tel Aviv; and the three people with that name in Tel Aviv denied any association with the business.
This company — which Calcalist Tech was unable to name after the Israeli military censor determined that doing so could negatively impact Israeli “national security” — was deliberately created to service the Israeli military and Israeli intelligence. It is also “focused on cyber technologies with expertise in research and development of advanced products and applications suitable for defense and commercial entities.” (emphases added) In addition, the company’s management consists largely of “veterans of Israeli military technology units.”
Notably, a former employee of this company told Calcalist Tech that “crossing the lines between military service and employment at the commercial outfit was ‘commonplace’ while he was working at the company.”
It’s not exactly clear why Israel’s military intelligence and other intelligence agencies decided to begin outsourcing its operations in 2012, though Calcalist Tech suggests the reasoning was related to the difference in wages between the private sector and the public sector, with pay being much higher in the former. However, it is notable that 2012 was also the year that Paul Singer — together with Netanyahu’s long-time economic adviser and former chair of the Israeli National Economic Council, Eugene Kandel — decided to create Start-Up Nation Central.
As MintPress noted earlier this year, SUNC was founded as part of a deliberate Israeli government effort to counter the nonviolent Boycott, Divest and Sanctions (BDS) movement and to make Israel the dominant global “cyber power.” This policy is aimed at increasingIsrael’s diplomatic power and specifically undermining BDS as well as the United Nations, which has repeatedly condemned Israel’s government for war crimes and violations of international law in relation to the Palestinians.
Last year, Netanyahu was asked by Fox News host Mark Levin whether the large growth seen in recent years in Israel’s technology sector, specifically tech start-ups, was part of Netanyahu’s plan. Netanyahu responded, “That’s very much my plan … It’s a very deliberate policy.” He later added that “Israel had technology because the military, especially military intelligence, produced a lot of capabilities. These incredibly gifted young men and women who come out of the military or the Mossad, they want to start their start-ups.”
Netanyahu again outlined this policy at the 2019 Cybertech Conference in Tel Aviv, where he stated that Israel’s emergence as one of the top five “cyber powers” had “required allowing this combination of military intelligence, academia and industry to converge in one place” and that this further required allowing “our graduates of our military and intelligence units to merge into companies with local partners and foreign partners.”
The direct tie-ins of SUNC to Israel’s government and the successful effort led by SUNC and other companies and organizations to place former military intelligence and intelligence operatives in strategic positions in major multinational technology companies reveal that this “deliberate policy” has had a major and undeniable impact on the global tech industry, especially in Silicon Valley.
Mossad gets its own In-Q-Tel
This “deliberate policy” of Netanyahu’s also recently resulted in the creation of a Mossad-run venture capital fund that is specifically focused on financing Israeli tech start-ups. The venture capital fund, called Libertad, was first announced by Israel’s Prime Minister’s Office and was created with the explicit purpose of “increasing the Israeli intelligence agency’s knowledge base and fostering collaboration with Israel’s vibrant startup scene” It was modeled after the CIA’s venture capital fund In-Q-Tel, which invested in several Silicon Valley companies turned government and intelligence contractors — including Google and Palantir — with a similar goal in mind.
Libertad declines to reveal the recipients of its funding, but announced last December that it had chosen five companies in the fields of robotics, energy, encryption, web intelligence, and natural language processing and text analysis. In regard to its interest in web intelligence, a Mossad employee told the Jerusalem Post that the intelligence agency was specifically interested in “innovative technologies for [the] automatic identification of personality characteristics – personality profiling – based on online behavior and activity, using methods based on statistics, machine learning, and other areas.” (emphasis added)
According to Libertad’s website, in return for its investment, now set at NIS 2 million (~$580,000) per year per company, “the Mossad will receive access to the IP [initial product] developed during R&D [Research and Development] while under contract, and a non-commercial, non-exclusive license to use it. Libertad’s contract with the company will not provide it with any additional rights.” In an interview with Calcalist Tech, Mossad Director Yossi Cohen told the paper that the Mossad’s partnership with civilian companies in Israel is “excellent” and that the agency will continue to strengthen those ties.
Israeli intelligence has a documented history in placing “backdoors” into technology products for the purpose of surveillance, with one well-known case being Israel’s repurposing of the PROMIS software, discussed in Part III of MintPress’ series on Jeffrey Epstein. Furthermore, given that U.S. intelligence, specifically the NSA, had “backdoors” placed into the products of major Silicon Valley companies (a service performed by Israeli intelligence-linked tech companies no less), Mossad may very well plan on doing the same with the technology products of companies it backs through Libertad.
Tim Shorrock, investigative journalist and author of Spies For Hire: The Secret World of Intelligence Outsourcing, told MintPress that the Mossad’s continuation of such practices through Libertad was definitely plausible, especially given what Shorrock described as the “unusual” choice of Libertad choosing not to release the identities of the companies in which it invests.
“The Mossad is trying to hide what they are investing in,” Shorrock stated, adding that Libertad’s secrecy “raises a lot of questions” particularly given that it was modeled after the CIA’s In-Q-Tel. Shorrock noted that In-Q-Tel and other venture capital funds with ties to U.S. intelligence or the U.S. military rarely, if ever, hide the identities of the companies they finance.
However, Libertad is merely the latest and most public expression of the Mossad’s interest in Israeli tech start-ups, the lion’s share of which are created by veterans of Unit 8200 or other Israeli intelligence agencies. Indeed, former Mossad Director Tamir Pardo stated in 2017 that “everyone” in the Israeli cybertechnology sector is an “alumni” of either Israeli intelligence, like the Mossad, or Israeli military intelligence, like Unit 8200. Pardo even went as far as to say that the Mossad itself is “like a start-up.”
Pardo himself, after leaving his post as Mossad director in 2016, dove straight into the world of Israeli tech start-ups, becoming chairman of Sepio Systems, whose two CEOs are former Unit 8200 officers. Sepio Systems’ advisory board includes the former chief information security officer of the CIA, Robert Bigman; former member of the U.S. Military’s Joint Special Operations Command (JSOC), Geoff Hancock; and former head of the Israel National Cyber Bureau and veteran of Israeli military intelligence, Rami Efrati. Sepio Systems’ cybersecurity software has been adopted by several banks, telecom and insurance companies, including in the U.S. and Brazil.
Pardo is not the only prominent figure in Israel’s intelligence community to compare Israeli intelligence agencies to tech start-ups. Shin Bet Director Nadav Argaman described Israel’s domestic spy agency in similar terms. “The Shin Bet is like an evolving start-up, with unmatched strength,” Argaman stated in a June 2017 speech, as he extolled the agency’s use of “pre-crime” technology to detain Palestinians based on their social media activity.
Argaman, at the time, claimed that more than 2,000 Palestinians, whom he described as “potential lone-wolf terrorists,” had been arrested as a result of these “breakthrough technological advances” that use artificial-intelligence algorithms to monitor the social media accounts of Palestinians, especially younger Palestinians, for the use of “tripwire” phrases that have been used by Palestinians who later committed acts of violence. In the case of those who use such terms, “their phones are tracked to see if they meet other suspects, or leave their districts to move towards potential Israeli targets. In such cases, security forces detain the suspect,” according to a 2017 report on the practice by The Economist.
The road to fascism, paved by a corrupted PROMIS
Though Israeli intelligence’s interest in tech companies goes back several years, there is a well-documented history of Israeli intelligence using bugged software to surveil and gain “backdoor” access to government databases around the world, particularly in the United States.
As was mentioned in Part III of MintPress’ Epstein series, a sinister yet cunning plan was executed to place a backdoor for Israeli intelligence into the Prosecutor’s Management Information System (PROMIS) software, which was then being used by the U.S. Department of Justice and was the envy of government agencies, particularly intelligence agencies, around the world. This bugged version of PROMIS — born out of the collusion between Earl Brian, Ronald Reagan’s then-envoy to Iran, and Rafi Eitan, then-director of the now-defunct Israeli intelligence agency Lekem — was seeded around the world by Brian’s company Hadron as well as by Mossad-linked media mogul Robert Maxwell, father of Jeffrey Epstein’s long-time girlfriend and alleged madam, Ghislaine Maxwell.
After this first PROMIS “backdoor” was discovered, Israel would again gain access to sensitive U.S. government communications, as well as civilian communications, thanks to the collusion between Israeli intelligence and Israeli telecom and tech companies, especially Amdocs and Comverse Infosys (now Verint), that were operating throughout the United States. Today, Unit 8200-linked start-ups appear to have taken up the torch.
While the PROMIS software is perhaps best known for offering Israeli intelligence a backdoor into as many as 80 intelligence agencies and other sensitive locations around the world for nearly a decade, it was also used for a very different purpose by prominent officials linked to Iran-Contra.
One key Iran-Contra figure — Lt. Col. Oliver North, then serving on the National Security Council — decided to use PROMIS neither for espionage nor for foreign policy. Instead, North turned PROMIS’ power against Americans, particularly perceived dissidents, a fact that remained unknown for years.
Beginning in 1982, as part of the highly classified Continuity of Government (COG) program, North used the PROMIS software at a 6,100-square-foot “command center” in the Department of Justice, as well as at a smaller operations room at the White House, to compile a list of American dissidents and “potential troublemakers” if the COG protocol was ever invoked.
According to a senior government official with a high-ranking security clearance and service in five presidential administrations who spoke to Radar in 2008, this was:
A database of Americans, who, often for the slightest and most trivial reason, are considered unfriendly, and who, in a time of panic might be incarcerated. The database can identify and locate perceived ‘enemies of the state’ almost instantaneously.”
In 1993, Wired described North’s use of PROMIS in compiling this database as follows:
Using PROMIS, sources point out, North could have drawn up lists of anyone ever arrested for a political protest, for example, or anyone who had ever refused to pay their taxes. Compared to PROMIS, Richard Nixon’s enemies list or Sen. Joe McCarthy’s blacklist look downright crude.”
The COG program defined this “time of panic” as “a national crisis, such as nuclear war, violent and widespread internal dissent, or national opposition to a US military invasion abroad,” whereby the government would suspend the Constitution, declare martial law, and incarcerate perceived dissidents and other “unfriendlies” in order to prevent the government’s (or then-serving administration’s) overthrow.
This secretive database has often been referred to as “Main Core” by government insiders and, most troubling of all, it still exists today. Journalist Christ Ketcham, citing senior government officials, reported in 2008 that, at that time, Main Core was believed to contain the names of as many as 8 million Americans. Eleven years later, it is highly likely that the number of Americans included in the Main Core database has grown considerably.
Author and investigative journalist Tim Shorrock also covered other disturbing aspects of the evolution of Main Core back in 2008 for Salon. At the time, Shorrock reported that the George W. Bush administration was believed to have used Main Core to guide its domestic surveillance activities following the September 11 attacks.
Citing “several former U.S. government officials with extensive knowledge of intelligence operations,” Shorrock further noted that Main Core — as it was 11 years ago at the time his report was published — was said to contain “a vast amount of personal data on Americans, including NSA intercepts of bank and credit card transactions and the results of surveillance efforts by the FBI, the CIA and other agencies.”
Bill Hamilton, former NSA intelligence officer and the original creator of the PROMIS software, told Shorrock at the time that he believed that “U.S. intelligence uses PROMIS as the primary software for searching the Main Core database” and had been told as much by an intelligence official in 1992 and an NSA official in 1995. Dan Murphy, former deputy director at the CIA, had told Hamilton that the NSA’s use of PROMIS was “so seriously wrong that money alone cannot cure the problem.” “I believe in retrospect that Murphy was alluding to Main Core,” Hamilton had told Shorrock.
Though most reporting on Main Core, from the time its existence was first revealed to the present, has treated the database as something used by the U.S. government and U.S. intelligence for domestic purposes, MintPress has learned that Israeli intelligence was also involved with the creation of the Main Core database. According to a former U.S. intelligence official with direct knowledge of the U.S. intelligence community’s use of PROMIS and Main Core from the 1980s to 2000s, Israeli intelligence played a role in the U.S. government’s deployment of PROMIS as the software used for the Main Core domestic surveillance database system.
Israeli intelligence remained involved with Main Core at the time of the August 1991 death of journalist Danny Casolaro, who was investigating not only the government’s misuse of the stolen PROMIS software but also the Main Core database. This same official, who chose to remain anonymous, told MintPress that, shortly before his death, Casolaro had obtained copies of computer printouts from the PROMIS-based Main Core domestic surveillance database system from NSA whistleblower Alan Standorf, who was found murdered a few months before Casolaro’s lifeless body would be found in a West Virginia hotel room.
The source also stated that Main Core’s contents had been used for the political blackmail of members of Congress and their staff, journalists, and others by Walter Raymond, a senior CIA covert operator in psyops and disinformation who served on President Reagan’s National Security Council during and after Main Core’s creation. If used for this purpose by Raymond in the 1980s, Main Core has also likely been used by other individuals with access to the database for blackmailing purposes in the years since.
Given that Israeli intelligence was known to have placed a backdoor into the PROMIS software, before it was marketed and sold around the world by Earl Brian and Robert Maxwell, its role in the U.S. government’s decision to use PROMIS in the creation of Main Core suggests that Israeli intelligence likely advocated for the version of PROMIS containing this backdoor, thereby giving Israeli intelligence access to Main Core. Given that Reagan aides and officials colluded with Israeli “spymaster” Rafi Eitan in his efforts to create a backdoor into the software for Israeli military intelligence, the use of this version of PROMIS in the Main Core database is certainly plausible.
Furthermore, the fact that Israeli intelligence was known to be involved in Main Core nearly a decade after its creation suggests that Israeli intelligence may have played a role in certain aspects of the database, such as the criteria used to flag Americans as “unfriendly,” and — like Walter Raymond — may have used information in the database to blackmail Americans. In addition, the fact that the cooperation between U.S. and Israeli intelligence, particularly between Unit 8200 and the NSA, has only grown since 1991 further suggests that Israeli involvement in Main Core continues to the present.
While Main Core’s very existence is troubling for many reasons, the alleged involvement of a foreign intelligence service in the creation, expansion and maintenance of a database with personal details and potentially damaging information on millions of Americans targeted for detention or increased surveillance in times of crisis is chilling. It is especially so considering that the Trump administration’s latest proposals to prevent mass shootings before they occur are likely to use Main Core to flag certain Americans for increased surveillance or potentially detention, as was done by the George W. Bush administration following the September 11 attacks.
It appears that Main Core serves a dual purpose; first as a mass targeted surveillance system to crush dissent during times of “national crisis” — whether spontaneous or engineered — and, second, as a massive blackmail database used to keep every potential opponent in line during non-emergencies.
Peter Thiel’s Seeing Stone
As was mentioned earlier in this report, Palantir — the company co-founded by Peter Thiel — is set to profit handsomely from the Trump administration’s plans to use its “pre-crime” technology, which is already used by police departments throughout the country and also used to track Americans based on the company’s integrative data-mining approach. Palantir, named for the “seeing stones” in the Lord of the Rings novels, also markets software to foreign (and domestic) intelligence agencies that predicts the likelihood that an individual will commit an act of terrorism or violence.
Aside from its “pre-crime” products, Palantir has come under fire in recent years as a result of the company’s contracts with Immigration and Customs Enforcement (ICE), where it created an intelligence system known as Investigative Case Management (ICM). The IB Times describedICM as “a vast ‘ecosystem’ of data to help immigration officials in identifying targets and creating cases against them” and also “provides ICE agents with access to databases managed by other federal agencies.” ICM further gives ICE access to “targets’ personal and sensitive information, such as background on schooling, employment, family relationships, phone records, immigration history, biometrics data, criminal records as well as home and work addresses.” In other words, Palantir’s ICM is essentially a “Main Core” for immigrants.
Notably, part of Oliver North’s original intentions in “Main Core” was to track immigrants then coming from Central America as well as Americans who opposed Reagan era policy with respect to Central America. At that time, Main Core was believed to be controlled by the Federal Emergency Management Administration (FEMA), which is now part of the Department of Homeland Security (DHS).
VICE News reported in July that the Northern California Regional Intelligence Center, which is run by DHS, “serves around 300 communities in northern California and is what is known as a ‘fusion center,’ a Department of Homeland Security intelligence center that aggregates and investigates information from state, local, and federal agencies, as well as some private entities, into large databases that can be searched using software like Palantir. “ VICE further noted that this center alone used Palantir to surveil as many as 8 million Ameicans. There are many more such DHS “fusion centers” throughout the United States.
If the Trump administration moves forward with its proposal of employing technology to detect potential mass shooters before they strike, Palantir’s technology is set to be used, given that it has already been used by U.S. law enforcement and U.S. intelligence to determine which people run “the highest risk of being involved in gun violence,” according to an investigation of Palantir by The Verge. Furthermore, Palantir’s close ties to the Trump administration make the company’s role in a future nationwide “pre-crime” prevention system based on technology appear inevitable.
Palantir founder Peter Thiel listens to Trump during a meeting at Trump Tower in New York, Dec. 14, 2016. Evan Vucci | AP
Worse still is the apparent overlap between Palantir and Main Core. Palantir — which has obvious similarities to PROMIS — is already known to use its software to track potential terror threats, including domestic terror threats, and a category of people it refers to as “subversives.” Palantir’s tracking of these individuals “is all done using prediction.” Palantir’s close ties to the U.S. intelligence community suggest that Palantir may already have access to the Main Core database. Tim Shorrock told MintPress that Palantir’s use of Main Core is “certainly possible,” particularly in light of the company’s use of the term “subversive” to describe a category of people that its software tracks.
Palantir also has alleged ties to Israeli intelligence, as there have long been suspicions that Israeli intelligence has used Palantir as part of its AI “pre-crime” algorithms targeting Palestinians after Palantir opened a research and development (R&D) center in Israel in 2013. The current head of Palantir Israel, Hamultal Meridor, previously founded a brain-machine interface organization and was senior director of web intelligence at Verint (formerly Comverse Infosys), which has deep connections to Unit 8200, a history of espionage in the United States and was one of the two companies contracted by the NSA to insert a “backdoor” into the U.S. telecommunications system and popular products of major American tech companies.
Given the above, Peter Thiel’s 2018 decision to fund Carbyne, the Unit 8200-linked start-up that markets itself as a technological solution to mass shootings in the U.S., strongly suggests that Thiel has been anticipating for some time the now-public efforts of the Trump administration to employ “pre-crime” technology to track and target Americans who show signs of “mental illness” and “violent tendencies.”
A nightmare even Orwell could not have predicted
In early August, in the wake of the shooting at an El Paso Walmart, President Trump called on big tech companies to collaborate with the Justice Department in the creation of software that “stops mass murders before they start” by detecting potential mass shooters before they cnm act. Though Trump’s ideas were short on specifics, there is now a new proposal that would create a new government agency that will use data gathered from civilian electronic devices to identify “neurobehavioral” warning signs, thereby flagging “potential shooters” for increased surveillance and potentially detention.
This new agency, as proposed by the foundation led by former NBC Universal president and vice chairman of General Electric Robert Wright, would be known as the Health Advanced Research Projects Agency (HARPA) and would be modeled after the Defense Advanced Research Projects Agency (DARPA). Per the proposal, recently detailed by the Washington Post, the flagship program of HARPA would be “Safe Home” (Stopping Aberrant Fatal Events by Helping Overcome Mental Extremes), which would use “breakthrough technologies with high specificity and sensitivity for early diagnosis of neuropsychiatric violence,” specifically “advanced analytical tools based on artificial intelligence and machine learning.”
The program would cost an estimated $60 million over four years and would use data from “Apple Watches, Fitbits, Amazon Echo and Google Home” and other consumer electronic devices, as well as information provided by health-care providers to identify who may be a threat.
The Washington Post reported that President Trump has reacted “very positively” to the proposal and that he was “sold on the concept.” The Post also noted that Wright sees the president’s daughter, Ivanka, as “the most effective champion of the proposal and has previously briefed her on HARPA himself.” Ivanka has previously been cited as a driving force behind some of her father’s policy decisions, including his decision to bomb Syria after an alleged chemical weapons attack in 2017.
Liz Fed — president of the Susan Wright Foundation, which is led by Robert Wright and created the proposal for HARPA and “Safe Home” — told The Post that the proposal emulated DARPA because “DARPA is a brilliant model that works. They have developed the most transformational capabilities in the world for national security…We’re not leveraging the tools and technologies available to us to improve and save lives.” Fed further asserted that DARPA’s technological approach had yet to be applied to the field of healthcare.
For anyone familiar with DARPA, such claims should immediately sound loud alarm bells, especially since DARPA is already developing its own solution to “mental health” issues in the form of a “brain-machine interface” as part of its N3 program. That program, according to reports, involves “noninvasive and ‘minutely’ invasive neural interfaces to both read and write into the brain,” help distance soldiers “from the emotional guilt of warfare” by “clouding their perception” and “to program artificial memories of fear, desire, and experiences directly into the brain.” Though N3 is intended to improve the prowess of American soldiers, it is also set to be used as a means of pursuing DARPA’s Systems-Based Neurotechnology for Emerging Therapies (SUBNETS) project, which aims to “to develop a tiny, implanted chip in the skull to treat psychiatric disorders such as anxiety, PTSD and major depression.”
Given that HARPA’s lead scientific adviser is Dr. Geoffrey Ling, former director and founder of DARPA’s Biological Technologies Office (BTO), which “merges biology, engineering, and computer science to harness the power of natural systems for national security,” it seems likely that DARPA’s neurological-focused research programs, like SUBNETS and N3, would be folded into HARPA’s portfolio, making the proposed agency’s approach to mental health very questionable indeed.
Aside from the dystopian nature of both DARPA and potentially HARPA’s approach to mental health, there is grave cause for concern regarding the Trump administration’s moves to address U.S. mass shooting events by implementing pre-crime technology based on artificial intelligence, data-mining and mass surveillance, technologies already laying in wait thanks to companies like Palantir and numerous Israeli tech start-ups led by former Unit 8200 officers.
With companies like Carbyne — with its ties to both the Trump administration and to Israeli intelligence — and the Mossad-linked Gabriel also marketing themselves as “technological” solutions to mass shootings while also doubling as covert tools for mass data collection and extraction, the end result is a massive surveillance system so complete and so dystopian that even George Orwell himself could not have predicted it.
Following another catastrophic mass shooting or crisis event, aggressive efforts will likely follow to foist these “solutions” on a frightened American public by the very network connected, not only to Jeffrey Epstein, but to a litany of crimes and a frightening history of plans to crush internal dissent and would-be dissenters in the United States.
Tyler Durden
Sun, 09/08/2019 – 00:00 - Americans Would Blame Trump For A Recession
Americans Would Blame Trump For A Recession
Propaganda works…
According to a recent poll by Harvard-Harris, 57 percent of Americans would blame President Trump if the U.S. slid into a recession in the next year. Additionally, as Statista’s Katharina Buchholz notes, only 33 percent said the Federal Reserve Bank, which influences the economy for example by setting the federal funds bank lending rate, would be to blame.
You will find more infographics at Statista
Asked who was at fault considering the recent economic turmoil, 35 percent of respondents still named Trump, while 30 percent blamed the U.S.-China trade tensions and tariffs, which were imposed by the Trump administration also.
More than 60 percent of participants said that they were concerned that a recession was going to hit the United States within six months. An about equal amount said they believed that the U.S.-China tariffs were hurting the U.S. more than they were hurting China.
Tyler Durden
Sat, 09/07/2019 – 23:30 - America Loses Asia-Pacific As Full Spectrum Dominance Continues To Fail
America Loses Asia-Pacific As Full Spectrum Dominance Continues To Fail
Authored by Matthew Ehret via The Strategic Culture Foundation,
Always working a little harder than most to stay a step below reality, US Secretary of Defense Mark Esper made especially candid remarks this week that America’s INF pullout was timed for a targeting of forces against China.
Speaking to Fox on August 21st, Esper said:
“We want to make sure that we, as we need to, have the capability to deter Chinese bad behavior… China is the number one priority for this department. It’s outlined in the national defense strategy, why we think it’s a long term strategic competitor and one that is pursuing a maximization campaign, if you will, throughout the indo-Pacific theater, whether its politically, economically or militarily…”
Echoing a little Dr. Strangelove, Esper stated that there is “a coming shift” from “low intensity conflict that lasts 18 years to high intensity conflicts against competitors such as Russia and China.”
While American military exercises in the Pacific have played out on China’s doorstep at an accelerating rate since the Pivot to Asia was announced in 2011 with the most recent US-Australia Talisman Sabre bi-annual exercise and US-South Korea Ulchi Freedom war games this month, China has not remained idle.
In response to America’s vast array of military infrastructure built up on China’s border, China has responded by the unveiling of cutting edge anti-ballistic missile technologies, including hypersonic weaponry to counteract the American threat. A large part of China’s defensive response includes the Russian S400 anti-missile system which is also being adopted by India, Turkey, Syria and the United Arab Emirates as a unified system which renders the American THAAD and ABM systems impotent and obsolete. Although unconfirmed, American generals have freaked out that China is building a joint China-Cambodia naval base in Preah Sihanouk Province that gives China easy access to coastal waters on the Gulf of Thailand and ready access to the South China Sea.
America’s military impotence when faced with the new cutting edge technologies unveiled by Russia and China was outlined in a recent report released by the US Studies Center at the University of Sydney which stated that “America no longer enjoys military primacy in the indo Pacific and its capacity to uphold a favorable balance of power is increasingly uncertain.” Referring to China’s advanced anti-aircraft weapons, the report says “Chinese counter-intervention systems have undermined America’s ability to project power in the Indo-Pacific region” which the authors say, could be rendered impotent within the first 8 hours of conflict.
Rather than use this information to propose a new security doctrine premised on cooperation and dialogue as China has offered on countless occasions, the report’s authors join the fantasy world of Esper calling instead for a “collective defense” strategy akin to a Pacific NATO, whereby all of America’s Pacific allies could join in an anti-Chinese military alliance together, and relieving America of the burden of carrying WWIII on its own.
We know that this Pacific NATO has been discussed for some time and was at the heart of recent Pacific Vanguard naval drills conducted between the USA, Australia, Japan and South Korea in May 2019 which saw the participation of 3000 soldiers, two Japanese destroyers, a South Korean destroyer and two Australian frigates in their first joint war game. This outlook was also behind the August naval drill played out by Malaysia, USA, New Zealand and Australia in Guam. The USA has 54 000 troops in Japan and 28 000 in South Korea.
When China and Russia conducted their first long range joint air patrol in the Asia Pacific in July 2019, South Korea and Japan scrambled jets to intercept the Chinese and Russian aircraft, with South Korea firing hundreds of warning shots. Backed up by the USA, both Asian countries screamed loudly (and without evidence) that their air space had been violated.
In response to the belligerent comments by Esper and the Australian report, the Chinese Foreign Ministry said “China is firmly on a path of peaceful development and our national defense policy is defensive in nature”. China has gone further by providing a cooperative framework under the Belt and Road Initiative which is built around the brilliant political agenda of providing diplomatic solutions to geopolitical points of tension through economic development strategies that enrich all participants. This approach has provided China great payback through the defusing of tensions with other nations claiming territory within the South China Sea- especially under the pro-BRI orientation of Malaysia’s Dr. Mahathir Mohammed and the Philippines’ President Duterte.
Not feeling at ease being caught in the crossfire of a nuclear exchange, Japan and South Korea have also gone so far as to create a new trilateral cooperation agreement with China on August 21 premised on “next generation exchange projects in three countries… We hope to discuss future-oriented partnerships and regional affairs, including North Korea.” The agreement also enables international join investment in all countries operating under the BRI framework. Together the three countries account for over a quarter of the world’s productivity and have everything to gain by working together.
Those American military officials promoting the obsolete doctrine of Full Spectrum dominance are dancing to the tune of a song that stopped playing some time ago. Both Russia and China have changed the rules of the game on a multitude of levels, and can respond with fatal force to any attack upon their soil with next generation weaponry beyond the scope of anything imagined by ivory tower game theorists in the west.
The ship of world history has changed course away from the rapids of war and economic collapse, as the Belt and Road Initiative has grown to proportions not imagined possible just a few years earlier and the coming months will be decisive as the west does some soul searching and decides which future it would like to have.
Tyler Durden
Sat, 09/07/2019 – 23:00 - New Algorithm Helps California Pot Felons Clear Their Name
New Algorithm Helps California Pot Felons Clear Their Name
After California voters approved reducing or eliminating pot-related crimes and wiping out past criminal convictions, identifying those who qualify for amnesty has proven difficult.
To help sift through an estimated 75,000 cannabis convictions, San Francisco-based nonprofit Code For America announced on Thursday that they are making computer algorithms available to all 58 California District Attorneys.
The software quickly finds eligible cases in court documents which may date back decades, according to NBC Los Angeles.
The computer program not only identifies eligible cases, but automatically fills out forms to file with the courts. It can analyze conviction eligibility for about 10,000 people per minute, instead of requiring county employees to dig through individual records.
District attorneys have until July to decide whether to dismiss sentences or fight reducing the convictions. –NBC Los Angeles
According to Code for America founder and executive director Jennifer Pahlka, their system “will open the door to relief for tens of thousands of Californians…who have been denied jobs, housing and other opportunities because of their criminal record.”
Tyler Durden
Sat, 09/07/2019 – 22:30 - 100 Years Ago Today, This Was The World's Most Disruptive Technology
100 Years Ago Today, This Was The World’s Most Disruptive Technology
Submitted by Nick Colas of DataTrek Research
The history of US consumerism starts with the Sears Roebuck mail order catalog. Yes, the very same Sears that is struggling to emerge from bankruptcy today. But 125 years ago the company was every bit the disruptive innovator. A brief summary of how that happened:
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Mail order became viable in the late 1800s because of the expansion of the US rail system, post office regulations that allowed for catalog mailers at 1 cent/pound, and Rural Free Delivery.
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The first Sears catalog was published in 1894 with the slogan “The Cheapest Supply House on Earth”.
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Its target audience was rural America, which in 1900 was 60% of the US population. This was a deeply underserved community, often with just a thinly stocked general store to supply all their needs.
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The 1903 catalog added the commitment of “Your money back if you are not satisfied”, reassuring customers that buying a product sight-unseen was a viable way to shop.
We recently bought a 1920 Sears catalog from an eBay seller. Printed in late 1919, it is a fascinating snapshot of American life 100 years ago. And, at 1,493 pages, it is a remarkably wide-angle view of that image.
In studying this early bible of the American consumer, three points struck us as particularly salient when comparing 1920 to 2019:
#1: The comparison to Amazon.
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Our catalog was published 25 years after Sears began its mail order business; Amazon is 25 years old today.
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The scope of the Sears offering in 1920 was every bit as vast as Amazon’s is today. The company offered everything from men’s/women’s/children’s clothing to furniture, appliances, jewelry, home entertainment, toys, and even entire houses and farm buildings.
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Sear’s merchandising method was exactly the same as what you see on Amazon’s website. Every item for sale had a picture, description, and price. The catalog is organized by the type of product offered for sale, something akin to “If you like this item, you might also like this…”
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One key difference: Sears offered credit on expensive items. If, for example, you wanted to buy a “New Freedom” coal/wood stove, you could pay $86.50 ($1,100 today) or make a first payment of $10 and then $7.50/month thereafter until you had paid $95.50. That’s a 7.1% annualized interest rate, in case you were wondering. Amazon, of course, takes credit cards.
Conclusion: Sears was actually a more ambitious business model than Amazon when it started. On day one, it was already selling a wide array of products – not just books. In terms of consumer offerings, Amazon now is right where Sears was in 1920. Yes, there are more SKUs on the website, but in terms of what people needed in 1920 the Sears catalog is remarkably complete.
#2: Early stage technology.
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The new technologies in 1920 were electric-powered appliances and phonograph players. Radio was still some years off – the only items in the 1920 catalog were Morse code transceivers.
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A 110-volt vacuum cleaner retailed for $57.50 – $68.00 ($740 – $870 today). For reference, a top-rated vacuum on Amazon goes for $70 today.
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A hand-crank record player went for $30 (basic tabletop) to $225 (solid wood standup), or $385 – $2,900 today. A Bluetooth speaker today goes for about $20.
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A basic bicycle sold for $53, or $680 in today’s dollars.
Our takeaway: the big difference between 1920s technology and today is how quickly prices come down as demand rises. Part of that is related to infrastructure; for example, in 1920 only 35% of American homes had electricity but by 1929 68% were wired for power. That, plus the disruption created by World War II, explains why vacuum cleaners remained expensive and adoption rates remained below 50% until the late 1940s. The rest, of course, is globalization, both in terms of supply and demand.
#3: A big idea can go a long way.
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Our 1920 catalog is a relatively early manifestation of a business that continued to prosper and grow for another +50 years. In 1974, at the height of its powers, Sears built the tallest building in the world in Chicago to house its home office.
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The company started opening retail stores in the 1920s, predominantly in urban areas to augment its rural business, and eventually had thousands of retail locations. It built its own brands like Craftsman tools, Kenmore appliances and DieHard automotive batteries.
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In 1931 Sears created Allstate Insurance and by 1934 it had agents in every store. In 1981 it added broker Dean Witter and real estate company Coldwell Banker. In 1985 it created the Discover credit card. It was even an early Internet adopter, developing the Prodigy system with IBM.
The lesson here: even if Sears is now a tiny shadow of its former self, it pays to remember this company had an almost 100 year run of success. It survived and prospered through 2 world wars and the Great Depression, living long enough to benefit from the post World War II boom. All from one big idea: a mail order catalog.
Tyler Durden
Sat, 09/07/2019 – 22:00 -
- Trump Canceled Secret Talks With Taliban At Camp David
Trump Canceled Secret Talks With Taliban At Camp David
It appears that Trump may have finally moved on from tweeting about Hurricane Dorian slamming Alabama, or maybe not:
…FAKE NEWS. I would like very much to stop referring to this ridiculous story, but the LameStream Media just won’t let it alone. They always have to have the last word, even though they know they are defrauding & deceiving the public. The public knows that the Media is corrupt!
— Donald J. Trump (@realDonaldTrump) September 7, 2019
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In any case, the US president has been busy, and as he revealed in a series of tweets on Saturday night, Trump abruptly called off peace negotiations with the Taliban after accusing them of seeking “false leverage” through a terrorist attack last week that killed 12 people, including a member of the American military.
In the tweets, Trump disclosed that a secret meeting with Taliban leaders, as well as the president of Afghanistan, had been set for Sunday at Camp David, the presidential retreat in Maryland, but was no longer happening.
Unbeknownst to almost everyone, the major Taliban leaders and, separately, the President of Afghanistan, were going to secretly meet with me at Camp David on Sunday. They were coming to the United States tonight. Unfortunately, in order to build false leverage, they admitted to..
— Donald J. Trump (@realDonaldTrump) September 7, 2019
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….only made it worse! If they cannot agree to a ceasefire during these very important peace talks, and would even kill 12 innocent people, then they probably don’t have the power to negotiate a meaningful agreement anyway. How many more decades are they willing to fight?
— Donald J. Trump (@realDonaldTrump) September 7, 2019
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Trump had been hoping to strike a deal with the Taliban as he heads into his presidential re-election campaign, allowing him to claim that he had ended 18 years of war and combat in Afghanistan, an achievement that eluded both George W Bush and Barack Obama.
“Unbeknownst to almost everyone, the major Taliban leaders and, separately, the President of Afghanistan, were going to secretly meet with me at Camp David on Sunday,” Trump tweeted.
The breakdown of talks marks a major setback for Trump’s ambitions of restoring peace in Afghanistan; the final, crucial stage revealed by Trump on Saturday had been a closely-held secret.
“They were coming to the United States tonight. Unfortunately, in order to build false leverage, they admitted to an attack in Kabul that killed one of our great great soldiers, and 11 other people. I immediately cancelled the meeting and called off peace negotiations. What kind of people would kill so many in order to seemingly strengthen their bargaining position?”
As the FT reports, senior US officials, led by veteran diplomat Zalmay Khalilzad, have been engaged in reconciliation talks with the Taliban for about a year, and had set this month as their goal for an agreement. Not only has that effort now been put in serious jeopardy, but Trump will also likely face severe criticism for inviting Taliban leaders to the US in the same week as the anniversary of the September 2001 terrorist attacks on New York and Washington.
The Taliban have so far refused to hold talks with the Kabul government, although the U.S. says the group must do so before any accord is final. The U.S. has proposed tying troop withdrawals to a pledge by the Taliban to prohibit terrorist groups like Islamic State and al-Qaeda from using Afghanistan to stage assaults.
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A successful conclusion to the talks with the Taliban has been high on Trump’s foreign policy agenda, prompting a rapprochement between the US and Pakistan in the hopes that Islamabad could help broker the deal. When Imran Khan, Pakistan’s prime minister, visited Washington in July, Trump had called America’s military presence in Afghanistan “ridiculous” and said he did not want the US to be a “policeman”.
According to the outline of the deal, which was negotiated in Qatar, the US would start pulling troops out of Afghanistan next spring, with more than 5,000 Americans returning home at that time. The withdrawal was only intended to be partial, however, with more than 8,000 remaining in the country for some time. On their side, the Taliban would commit to ensuring that Afghanistan would no longer be a “safe haven for terrorists”, according to a description of the mooted agreement by Mike Pompeo, the US secretary of state, in June.
The Afghan government, led by president Ashraf Ghani, has been anxious that an excessively rapid exit by US forces could further destabilise the country, undermining the goals of the deal.
The attack on Thursday that caused the talks between Mr Trump and the Taliban to collapse killed 10 civilians as well as two military service members, including one from the US and another from Romania.
At the time, Afghan President Ashraf Ghani decried the attack in the “strongest terms,” saying that making peace with Taliban militants who are still killing “innocent people is meaningless.”
Trump said in his tweet that he’d planned to meet separately with Taliban leaders and Ghani.
Secretary of State Michael Pompeo is scheduled appearances on five political talk shows on Sunday. The path to a peace agreement that could end what has become America’s longest war had been expected to be a major talking component of his interviews.
Tyler Durden
Sat, 09/07/2019 – 21:58 - America's 100 Largest Landowners… And Here Is What They Own
America’s 100 Largest Landowners… And Here Is What They Own
The 100 largest private landowners in the US own a combined 40 million acres, an area roughly the size of Florida.
But who are they, exactly?
In a recent interactive story, Bloomberg matches some of the largest landowning families with some of their flagship parcels of land.
According to BBG, the top 100 private landowners own property in 39 states. Their parcels suit a number of purposes, from investment, conservation, tax benefits or simply the bragging rights that come with owning large chunks of the US.
Below, all of the land owned by this rarefied group is highlighted in green.
The top ten landowning families control an area roughly equivalent in size to the state of West Virginia.
Their names are (units in acres):
John Malone: 2.20 million
Emmerson family: 1.96 million
Ted Turner: 1.92 million
Stan Kroenke: 1.38 million
Reed family: 1.33 million
Irving family: 1.25 million
Brad Kelley: 1.15 million
Singleton family: 1.10 million
King Ranch heirs: 0.93 million
Peter Buck: 0.93 millionMedia moguls John Malone and Ted Turner own more than 4 million acres in 12 states, much of it ranch-land out west. Turner owns a herd of 51,000 bison, the largest privately owned bison herd in the world.
In Maine, sometimes humorously referred to as “the Saudi Arabia of Water”, Malone, Subway co-founder Peter Buck and five other families have bought up so much forest land, that they collectively control one-quarter of the state’s land.
Maine is one of the most sparsely populated states in the union, though it boasts a thriving timber industry. And its abundance of water has made forest land a popular destination for doomsday preppers.
To be sure, some of the families’ holdings date back more than a century. The Pingree heirs’ own 800,000 acres of woodland in Northern Maine. Most of this land has been opened to the public for camping and hiking.
America’s second-largest landowner, the Emmerson family, owns 1.96 million acres of timber-land. Its value, according to the Bloomberg billionaires Index, is $4.2 billion. The Reed family also owns a large swath of timber-land in the area.
Another popular category among the largest property owners is ranch land, which represents 58% of the property owned by the top 100, or more than 23 million acres, mostly concentrated near the Texas-Mexico border.
King Ranch, a south Texas institution founded in 1835, is bigger than Rhode Island. More than 400 miles to the north is the country’s largest ranch behind a single continuous fence, belonging to LA Rams co-owner Stan Kroenke.
The Fanjul family, which owns a lucrative Florida Crystals business, claims to be the only organic sugar cane grower in the US. Just 3% of the top landowners’ holdings is farmland. Most of that is in Florida. This includes vast orange groves owned by the Collier family.
Louis Bacon, a billionaire hedge fund manager, owns some of the most “stunning vistas” in the country. He has conservation easements on much of his property. At least 20 of the top 100 have used these legal agreements, requiring them to preserve their properties in return for tax breaks.
Private land can be transformed into a massive playground for its owner. So it is for oil mogul Russell Gordy’s Montana hunting and cattle ranch.
The property features a hot springs that was a resort until 1932. The Holding family, the clan behind Sinclair Oil Corp., owns Sunlight Ranch, plus the Sun Valley and Snow basin resorts.
BBG’s ranking of the largest landowners comes from its annual land report, which is largely compiled based on interviews and publicly available information (or in some cases private documents) handed over by the landlords or their representatives.
Tyler Durden
Sat, 09/07/2019 – 21:30 - In Saudi Shocker, Al-Falih Ousted As Energy Minister, Replaced By MbS' Half-Brother
In Saudi Shocker, Al-Falih Ousted As Energy Minister, Replaced By MbS’ Half-Brother
For years, Ali al Naimi was the most important person in the world of oil: the former CEO of Saudi Aramco ascended to the post of Saudi oil minister in 1995, and over the past 21 years had the power to send the price of oil soaring or plunging with one word. To be sure, for much of the period between 2014 and 2016, oil was mostly plunging because as is well-known, Saudi Arabia’s policy ever since the 2014 Thanksgiving OPEC meeting in which Saudi Arabia broke off from the rest of the petroleum cartel to pursue its intention of putting US shale and high cost OPEC production out of business.
Ali al-Naimi
Then things unexpected, and dramatically, changed in April 2016 when Bloomberg published a detailed interview on the present and future of Saudi oil policy, which however took place not with al Naimi but with a young man few had heard of at the time: Deputy Crown Prince Mohammed bin Salman, barely 30 years old, who just happened to be the favored son of Saudi Arabia’s new King Salman who took control in 2015 following the death of his half-brother, King Abdullah, and who quickly became the defacto new ruler of Saudi Arabia and the brains behind the oil-rich nation’s energy strategy.
Crown Prince Mohammed bin Salman
This sudden new power struggle came to a dramatic culmination on May 7, 2016 when Saudi Arabia announced it had fired its long-serving oil minister Ali al-Naimi, replacing him with Khalid al-Falih, then chairman of Saudi state oil giant, Aramco.
Khalid A. Al-Falih Al-Falih’s role, while secondary to that of the Crown Prince, or MbS as he became known, was to telegraph a radical departure from the previous Saudi strategy of sending oil prices plunging in hopes of putting shale out of business. When it emerged that that would not happen, largely thanks to cheap junk debt and private equity firms with tens of billions in dry powder able to sustain US shale companies for years even without a dollar in profitability or cash flow, Saudi Arabia flipped its strategy, and instead of a war of attrition with the US decided to send the price of oil as high as possible by restoring the OPEC cartel and severely limiting the output of its members (the fact that Venezuela’s economic catastrophe meant that the country with the world’s largest crude oil deposits could barely produce oil, or that Iran was the target of crippling oil sanctions by the US that virtually halted its exports, only helped the Saudi strategy… here some cite the oddly close friendship between MbS and Jared Kushner as the catalyst for the latter, but we digress). Al Falih was also one of the chief architects of the kingdom’s attempt in recent years to diversify its revenues away from oil.
This strategy worked for several years, until the summer of 2018, but then failed dramatically roughly around the time the US-China trade war escalated, and the price of oil resumed its decline amid fears of shale oversupply and sliding Chinese demand and/or a global economic recession.
And so, with Saudi Arabia facing another major overhaul to its oil strategy, and in keeping with the pattern of replacing the current energy minister scapegoat every time it does that, late on Saturday the Saudi King shocked the energy world when he named his son as energy minister, replacing Khalid al-Falih, who was in that role for just over three years.
While the new minister, industry veteran Prince Abdulaziz bin Salman, is a half-brother to Crown Prince Mohammed bin Salman, the pair according to Bloomberg aren’t believed to be close and are quite far apart in age.
AbS, or Abdulaziz bin Salman – not to be confused with MbS – has served in the energy ministry for decades – most recently as state minister for energy affairs – is seen as a capable and experienced technocrat: “Prince Abdulaziz is a very seasoned veteran of Saudi and OPEC policy-making. He won’t have a learning curve. I don’t expect any big rupture in current Saudi oil policy or relations with Russia,” Bob McNally, president of Rapidan Energy Advisors LLC, told Bloomberg.
Abdulaziz bin Salman Al Saud The countdown to Al-Falih’s exit started several days ago after he was stripped of his responsibility for overseeing industrial development and for chairing Saudi Aramco as the government prepares to sell shares in the state-owned oil company. On Sept. 4, Al-Falih said that he would be replaced at Saudi Aramco by Yasir Al-Rumayyan, head of the kingdom’s sovereign wealth fund, who’s an Aramco board member and a key adviser to the crown prince.
Still, few see any dramatic shifts in Saudi oil strategy following the latest personnel shift: this month’s decision to restructure the energy ministry was seen as having little or no immediate impact on Saudi oil policy. As the world’s largest crude exporter, the kingdom has continued to cut output to balance global market demand.
“The priority remains removing the lingering threat of another crude price swoon by preventing stock builds,” McNally said.
And while it remains unclear why Al-Falih fell out of favor, some speculate that it has to do with his inability to push the price of oil higher even though Saudi has substantially curbed its output in the past two years in hopes of provoking a supply shortage. Indeed, as Bloomberg confirms, “it has been speculated that there was dissatisfaction with the low price of oil as the vital Saudi Aramco IPO nears.”
Saudi Arabia has cut production to less than 10 million barrels a day as part of its agreement with the Organization of Petroleum Exporting Countries to limit output. Al-Falih helped broker the deal that brought other producers like Russia into the effort to balance markets by curbing production. The Saudis are doing the most to support the deal, pumping about 500,000 barrels a day less than they pledged.
And so AbS now has the unenviable task of sending oil price spiking, something which will be put to the test as soon as next week, when OPEC and OPEC+ are scheduled to meet on Sept. 12 in Abu Dhabi to review their strategy to shore up global oil markets. Oil traders will be waiting to see whether the change of ministers will mean a change in Saudi policy.
Alas, since the ongoing oil price weakness has little to do with supply and everything to do with declining global demand for oil, especially by China, not to mention an energy independent America, Abdulaziz bin Salman’s reign as Saudi energy minister may be the shortest yet as the prospect for sharply higher oil prices – absent a war in the Middle East of course – is virtually nil.
Tyler Durden
Sat, 09/07/2019 – 21:07 - China's Long Con: A Paper Tiger In A Fragile Economy
China’s Long Con: A Paper Tiger In A Fragile Economy
Authored by Andrew Moran via Liberty Nation,
We typically imagine the Chinese entrepreneur crunching numbers, working around the clock to boost the economy, and repeating Communist propaganda about the West being the supreme devil. But we might have it wrong. Considering that the major source of funding for tens of thousands of companies in China originates from the central bank’s printing press, the reality could be businessmen and employees getting plastered on baijiuand beating each other to death with Pokémon cards during office hours. Think of it as the Eastern version of The Wolf of Wall Street.
The Three Rs
The People’s Bank of China (PBOC) recently announced that it would inject $126.35 billion into the financial system by cutting the reserve requirement ratio – the number of reserves that financial institutions are mandated to hold. This represents the seventh reduction to the RRR in the last 18 months, totaling $510 billion in net liquidity.
According to the central bank, the RRR will be lowered by 50 basis points for all commercial banks, effective September 16. Smaller institutions will be given one additional percentage point. The RRR for larger organizations will be dropped to 13%. PBOC officials are attempting to spur lending, economic activity, and financial support as the world’s second-largest economy continues to slump amid its trade war with the US.
In a statement, the bank assured markets that it will maintain a conservative monetary policy and will not flood the economy with stimulus. However, officials did say that they will increase counter-cyclical adjustments and extend immense volumes of liquidity when necessary.
Even prior to the trade war, the Chinese government had employed a series of measures to reverse the slump. Thanks to the dispute with the Americans, Beijing’s growth prospects are bearish, projected to fall to a 30-year low of 6.2% in the second quarter of 2019. Because of this, analysts anticipate the PBOC will impose another 50-basis-point RRR decrease. In addition, observers prognosticate that the central bank could cut at least one of its key policy interest rates later this month. This would be the first time since 2015.
The routine intervention and stimulus have ostensibly metastasized the economy into an addict, reliant on its next fix. So, can the Chinese economy survive without the state?
Every Yuan Needs Debt
In the last five years, China’s M2 money supply – a measurement of the money supply that includes cash, checking deposits, and liquid assets – has ballooned 120%. Since the country is being paralyzed by the trade spat and other negative trends that threaten its foundation, China is not showing any signs that it is ready to hit the pause button on money-printing. In fact, judging by previous remarks by PBOC heads, Beijing might rev it up even more, especially if the downturn intensifies.
But can China print to infinity? It may have to because seemingly every area of the economy counts on being propped up by the Communists through cash injections, stimulus projects, and bailouts.
This past summer, several interesting reports shone a negative light on the Asian juggernaut.
Fitch Ratings warned that Chinese banks might not have enough capital to lend out in the event of a steep slowdown. Analysts noted that banks’ earnings have only been enough to sustain mandated capital levels. It then makes sense as to why the PBOC is approving many RRR cuts: Beijing is depending on the quasi-private sector to resuscitate the economy through lending.
When it was discovered that the nation’s smaller banking outfits were running into trouble, China absorbed a handful of these entities and merged many of these weaker banks. But the problem may be much worse than the local media and the government are letting on. Nearly two dozen major organizations have not published up-to-date financial reports, causing consternation in the finance industry – at home and abroad.
There are nearly 200,000 state-owned enterprises (SOEs) within China, all receiving some sort of support from the government. Many cheered when it was reported that these government-sponsored businesses posted record profits, despite the trade war and economic hiccups. But they should hold the applause because this process is comparable to passing money from your left hand and giving it to your right and declaring you’re rich.
President Xi Jinping has promised that China is seeking free-market reforms and will open its economy to the rest of the world. But many skeptics say that it would be impossible for several reasons: There are too many SOEs, there has been too much debt incurred, and a significant portion of the money printed and given to state-run banks are earmarked to keep these indebted SOEs open – they are in a coma and running on life support.
Consider this February 2019 Bloomberg report:
“In 2018, private enterprises missed payments on more than 7 percent of bonds issued, HSBC estimates. As early as 2015, even state-owned companies counted themselves among the list of defaulters. And yet not a single local government-affiliated issuer has defaulted, ever.”
Liberty Nation recently reported a new study that found if borrowing were eliminated most of the developed economies in the world would see a negative gross domestic product (GDP) per capita. The analysis concluded that China would be one of the few states to see a gain in a borrowing-free universe, mainly because of its immense currency and gold reserves. But if the market is running mostly on debt, then wouldn’t the economy be wiped out, too?
This could explain why China has been on a gold-buying spree in the last few years, acquiring billions of dollars worth of the yellow metal as a hedge against volatility and perhaps its own inevitable demise.
The Long Con
Guo Wengui, an exiled Chinese billionaire who is the Asian version of Peter Schiff and considered a man of mystery by the Western press, sat down with US hedge fund manager Kyle Bass. Wengui explained that the Chinese economy is fake and that the Communists cheated the world, citing a litany of data and problems to support his claims.
Put simply, the Chinese economy is one giant Ponzi scheme that depends on new investors to cover the bad debt, mask its weakness, and con the rest of the world. The revenues derived from the Ponzi are used to launder money for the nation’s leaders and well-connected elite. This is what modern-day communism looks like; forget the proletariat, Karl Marx, and Stalin-esque facial hair. It is about utilizing the power of the state, with a modicum of the enterprise system, to generate enormous wealth.
Yet, no matter how interconnected everything is, the rules of basic economics and finance will always intervene to blow down the house. Are we witnessing the fall of the international finance order? It was only a matter of time before the fiat hegemonic experiment blew up in everyone’s face.
Tyler Durden
Sat, 09/07/2019 – 21:00
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