Month: January 2021

Linkage

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This is captivating:

Antitrust Smoking Gun

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It turns out that Google and Facebook colluded to keep Facebook out of the advertising market in exchange for preferential rates.

This is pretty much a slam dunk, and yes, both organizations should broken up in the long term (Other limits fail over time) and be prevented from acquiring any other companies in the short term:

In 2017, Facebook said it was testing a new way of selling online advertising that would threaten Google’s control of the digital ad market. But less than two years later, Facebook did an about-face and said it was joining an alliance of companies backing a similar effort by Google.

Facebook never said why it pulled back from its project, but evidence presented in an antitrust lawsuit filed by 10 state attorneys general last month indicates that Google had extended to Facebook, its closest rival for digital advertising dollars, a sweetheart deal to be a partner.

Details of the agreement, based on documents the Texas attorney general’s office said it had uncovered as part of the multistate suit, were redacted in the complaint filed in federal court in Texas last month. But they were not hidden in a draft version of the complaint reviewed by The New York Times.

Executives at six of the more than 20 partners in the alliance told The Times that their agreements with Google did not include many of the same generous terms that Facebook received and that the search giant had handed Facebook a significant advantage over the rest of them.

………

The disclosure of the deal between the tech giants has renewed concerns about how the biggest technology companies band together to close off competition. The deals are often consequential, defining the winners and losers in various markets for technology services and products. They are agreed upon in private with the crucial deal terms hidden through confidentiality clauses.

Google and Facebook said that such deals were common in the digital advertising industry and that they were not thwarting competition.

………

The Wall Street Journal had reported on aspects of the draft complaint earlier.

………

“This idea that the major tech platforms are robustly competing against each other is very much overstated,” said Sally Hubbard, a former assistant attorney general in New York’s antitrust bureau who now works at Open Markets Institute, a think tank. “In many ways, they reinforce each other’s monopoly power.”

Because maintaining a monopoly is more profitable than developing a superior product.

One need only look at the cost and speed of broadband in the US to know that this is true.
The agreement between Facebook and Google, code-named “Jedi Blue” inside Google, pertains to a growing segment of the online advertising market called programmatic advertising. Online advertising pulls in hundreds of billions of dollars in global revenue each year, and the automated buying and selling of ad space accounts for more than 60 percent of the total, according to researchers.

In the milliseconds between a user clicking on a link to a web page and the page’s ads loading, bids for available ad space are placed behind the scenes in marketplaces known as exchanges, with the winning bid passed to an ad server. Because Google’s ad exchange and ad server were both dominant, it often directed the business to its own exchange.

A method called header bidding emerged, in part as a workaround to reduce reliance on Google’s ad platforms. News outlets and other sites could solicit bids from multiple exchanges at once, helping to increase competition and leading to better prices for publishers. By 2016, more than 70 percent of publishers had adopted the technology, according to one estimate.

Seeing a potentially significant loss of business to header bidding, Google developed an alternative called Open Bidding, which supported an alliance of exchanges. While Open Bidding allows other exchanges to simultaneously compete alongside Google, the search company extracts a fee for every winning bid, and competitors say there is less transparency for publishers.

The threat of Facebook, one of the biggest ad buyers on the internet, supporting header bidding was a grave concern at Google. The draft of the complaint reviewed by The Times cited an email from a Google executive calling it an “existential threat” that required “an all hands on deck approach.”

………

Before Google and Facebook signed the deal in Sept. 2018, Facebook executives outlined the company’s options to Mark Zuckerberg, its chief executive, according to the draft of the complaint: hire hundreds more engineers and spend billions of dollars to compete against Google; exit the business; or do the deal.

………

Facebook disclosed that it had joined Google’s program in one line in a Dec. 2018 blog post. But it did not reveal that Google, according to the draft complaint, provided Facebook with special information and speed advantages to help the company succeed in the auctions that it did not offer to other partners — even including a guaranteed “win rate.”

In this market, where fractions of a second count, a speed advantage was decisive. Facebook had 300 milliseconds to bid for ads, according to court documents. But the executives at Google’s partner companies said they usually had just 160 milliseconds or less to bid.

Facebook had yet another advantage: Direct billing relationships with the sites where ads would appear, according to the court documents. For most other partners, Google controlled pricing information, effectively putting up a wall between Open Bidding participants and site owners and hiding how much of winning bids sites end up receiving, the executives at other companies said.

………

Facebook promised to bid on at least 90 percent of auctions when it could identify the end user and committed to spending a certain amount of money — as much as $500 million a year by the fourth year of the agreement, according to the draft of the complaint. Facebook also demanded that data about its bids not be used by Google to manipulate auctions in its own favor, a level playing field not explicitly promised to other Open Bidding partners.

Perhaps the most serious claim in the draft complaint was that the two companies had predetermined that Facebook would win a fixed percentage of auctions that it bid on.

“Unbeknown to other market participants, no matter how high others might bid, the parties have agreed that the gavel will come down in Facebook’s favor a set number of times,” the draft complaint said. A Google spokeswoman said Facebook must make the highest bid to win an auction, just like its other exchange and ad network partners.

While both companies said that the deal is not an antitrust matter, they included a clause in the agreement that requires the parties to “cooperate and assist” each other if they are investigated for competition concerns over the partnership.

“The word ‘antitrust’ is mentioned no less than 20 times” throughout the agreement, the draft complaint said.

Seriously, this is not just unlawful, this is an actual criminal offense.

Executives used to be jailed for this sort of crap, at least until the 1980s, when Reagan gutted antitrust enforcement.

I’d like to see Sundar Pichai, Sergey Brin, Larry Page, Mark Zuckerberg and Sheryl Sandberg frog marched out of the corporate offices in handcuffs.

Homophobic When It Suits Them

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I am referring, of course, to the Massachusetts Democratic Party, which unleashed an orgy of gay bashing innuendo when Holyoke Mayor Alex Morse challenged Richard Neal (D-CIGNA) in the primary.

UMASS, which is very much a part of the Democratic Party establishment (There is no Democratic Party establishment) in Massachusetts has bent over backwards to avoid embarrassment, but you cannot put lipstick on a pig:

A recently released report by the University of Massachusetts at Amherst has added new evidence of the state Democratic Party’s involvement in the public attack on Alex Morse just ahead of his primary against Rep. Richard Neal. It also found that Morse, formerly an adjunct professor at the school, did not violate university policies, yet the report still delved deeply into Morse’s private dating life with other adults.

In early August, just a few weeks prior to the election against Neal, chair of the powerful House Ways and Means Committee, a number of college students made vague accusations of impropriety against Morse, the youngest and first openly gay mayor of Holyoke.

The involvement of state party officials, who coordinated with the Massachusetts College Democrats to accuse Morse of sexual impropriety, was first revealed by The Intercept and later confirmed by an internal review by the Massachusetts Democratic Party. The new report, however, includes emails and text messages indicating that party attorney Jim Roosevelt took a more active role in the dissemination of the smear than previously known. It also reveals that party leaders were more involved in walking students through media and legal strategies than they had previously admitted. In an interview with The Intercept, Roosevelt denied the allegations; Mass Dems Executive Director Veronica Martinez implied in an email that the new report exonerated party leadership.

………

Investigators made a detailed exploration into the psychology of the students who ultimately launched the attack on Morse, saying that a key figure in the scandal did not find his interactions online with Morse remotely problematic until other students convinced him in hindsight that they were. A second student also told investigators that he considered his interactions platonic and innocent but that they took on a different connotation when put in the context of rumors being spread by other students.

The report’s authors included trivial information they had collected. “Witness Three reports that he was later told by other students that Morse gave him a ‘look’ when he entered the [October] event (indicating romantic or sexual interest). Witness Three did not observe anything of that nature,” the report found fit to inform the public.

Matt Walsh, a member of the Massachusetts Democratic State Committee and a board member of the Bay State Stonewall Democrats, said the exoneration of Morse is welcomed, but that in his view, the manner in which the report was written lingered on salacious details and sensationalized the mayor’s private life.

“I expected an official investigative report by a state university to be an objective assessment of facts, not a tabloid-style gossip piece,” said Walsh. “I’m glad UMass cleared Morse of wrongdoing, but they could have done so without legitimizing homophobic tropes that paint gay men as ‘creepy’ for engaging in consensual relationships.”

………

The Intercept’s previous reporting revealed that some students had planned to entrap and expose Morse in order to do political damage to the mayor and secure themselves internships with Neal. Neal has denied any involvement in the scheme. Campaign spokesperson Peter Panos told The Intercept in an email that the latest report makes the congressman’s innocence clear.

“This report confirms what Chairman Neal has always said, that he and his staff had nothing to do with these allegations,” said Panos. “We commend the University for their thorough investigation into the facts.”

The report doesn’t conclude anything either way on Neal’s involvement, but does note that there is no evidence of it.

………

The report makes clear that at least some of the allegations against Morse that later went public were rumor-driven group think, as is often the case in a college setting.

………

Those concerns extended beyond the school’s group. Student A, a student at UMass, said a friend of hers had had sexual contact with Morse and later felt uncomfortable because of the “power dynamic.” Witness One described her to investigators as “especially adamant that the group needed to go public with what they knew.”

Student A wanted to take the statement to Twitter in July and went so far as to work with Witness One to draft a statement to post to the site, though she ultimately declined to do so.

According to The Intercept’s previous reporting, the report produced for the Mass Dems by attorney Cheryl Jacques, and the emails and text messages reproduced in the new UMass report, the leadership of the UMass College Democrats and the College Democrats of Massachusetts took their allegations against Morse to the state party. College Democrats of Massachusetts President Hayley Fleming reached out to Massachusetts Democrats Chair Gus Bickford and Executive Director Veronica Martinez for guidance as the group prepared to bar Morse from future meetings.

………

Evidence in the new UMass report implicates Roosevelt in the writing of a letter for the College Democrats to send out to chapters. As one student said in a text on July 29 to other members of the CDMA executive board, Roosevelt advised the students through Bickford and Martinez that “if we want to move forward on leaking it to the press, someone would contact BLANK and tell him (on the record but unattributable so that their name doesn’t get published) that the CDMA eboard voted on this and sent it to the CM.” The full message exchange is attached to the report.

It’s clear that the Neal campaign knew that people who wanted jobs with him were engaging in vicious gay baiting, and would have been impossible for Nancy Pelosi not to know this as well when she pulled out all the stops to support the corrupt Ways and Means Chairman, but I guess those big dollar campaign donations from bad people don’t grow on trees.

Here is Hoping that the Lawsuit Succeeds

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The SEIU is suing to overturn Proposition 22, which was intended by Uber and the rest of the “Gig Economy” companies to keep their employees as peons.

Shame on them for pushing that plebiscite, and shame on the voters in California for voting yes: 

A group of rideshare drivers in California and the Service Employees International Union filed a lawsuit today alleging Proposition 22 violates California’s constitution. The goal of the suit is to overturn Prop 22, which classifies gig workers as independent contractors in California.

The suit, filed in California’s Supreme Court, argues Prop 22 makes it harder for the state’s legislature to create and enforce a workers’ compensation system for gig workers. It also argues Prop 22 violates the rule that limits ballot measures to a single issue, as well as unconstitutionally defines what would count as an amendment to the measure. As it stands today, Prop 22 requires a seven-eights legislative supermajority in order to amend the measure.

………

This suit is the latest in a long battle between gig workers and tech companies. Meanwhile, Uber and Lyft have their eyes on pursuing Prop 22-like legislation elsewhere. Given Uber and Lyft’s anti-gig-workers-as-employees stance, it came as no surprise when Uber and Lyft separately said they would pursue similar legislation in other parts of the country and the world.

The Gypsy cab companies and the rest of them figured that if they spent enough money, they could get the voters to approve their abomination, and that once it passed, they could continue to mistreat their employees.

If this gets overturned, it will be much harder to get a second bite at the apple, because they, and other companies, have taken the law as an opportunity to be evil, and people will not forget this.

Would Have Been Better to Address This Early

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It turns out that the FBI is conducting background checks on National Guardsmen in the Capitol for the inauguration to make sure that a right-wing terrorist is not embedded in the force.

White Nationalists and their Talibaptist Christian Dominionist brethren have been infiltrating the US State Security Apparatus, both the military (particularly the USAF) and law enforcement.

It comes as no surprise that they are concerned about a random soldier might choose the occasion to engage in assassination.

Getting these folks out of these institutions may be the most important national security issue of the next decade:

U.S. defense officials say the federal government is conducting insider-threat screening on the 25,000 National Guard troops who have begun flowing into the nation’s capital to secure the inauguration, as concerns intensify about extremism in the ranks.

The extra precaution comes after a number of pro-Trump rioters involved in storming the U.S. Capitol on Jan. 6 turned out to have military ties, raising questions about extremist sentiment within the armed forces. Dozens of people on a terrorist watch list were in Washington as the deadly riot unfolded.

A U.S. defense official, speaking on the condition of anonymity to discuss the sensitive preparations, said the Army is working with the FBI to vet all service members supporting the inauguration. The Army maintains awareness of threats but does not collect domestic intelligence itself, the official said. It was not immediately clear how extensive the FBI vetting of the military personnel would be.

As the great Walt Kelly noted, “We have met the enemy, and he is us.” 

It is going to take a very long time to fix this.

This Is the Best Thing I’ve Read This Year

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It appears that there are some women out there who are using dating apps to identify and report Capitol Hill insurrectionists.

The short version is that they change their political affiliation on the dating app, this story mentions Bumble, and when the guys start to brag to them, the screen shot the shit out of them, and then call the FBI: 

Women in Washington D.C. are taking matters into their own hands to obtain information on Capitol rioters.

After noticing an uptick in MAGA supporters on dating apps, women started wondering if the profiles could be useful to police.

“There are DOZENS of men on DC dating apps right now who were clearly here for the insurrection attempt,” Alia Awadallah tweeted. “Is that info useful at all for law enforcement?”

I know a friend of a friend who changed her preference on Bumble to Conservative. She’s matching with MAGA bros and they’re bragging and sending her pics and videos of them in the Capitol. She’s sending them to the FBI.

— Allison #FreeThemALL Norris (@allisonnorris) January 8, 2021

After multiple tweets about the “Bumble honeytrap” went viral, Bumble removed the politics filter in the United States to “prevent misuse.”

We have temporarily removed our politics filter in the U.S. to prevent misuse. Don’t worry; it will be reinstated in the future. 💛

— Bumble (@bumble) January 14, 2021

Because seditious racist dirt-bags and their racist sedition must be protected at all cost, because they are central to their business.

Internet apps have the ability to allow users’ personal bigotry with no liability to the platform.

That’s how it works with Uber, Lyft, AirBnB, and no, apparently, Bumble.

This May be the Worst Idea in Economics

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There is a lot not to like about Economics.

It seems that most streams of economics appear to be a means for justifying the existing power structure, with the benefit being that economists are given (relatively) high positions within that power structures.

Political economist Blair Fix makes a good argument that modern Human Capital Theory, which resembles a toxic mix of Social Darwinism, and emerged largely from the University of Chicago.

The short version, to use Ayn Rand pulp fiction (and pulpier philosophy) as an example, the investor who pays scientists to create “Reardon Metal” is responsible for all the value derived from this wondrous material.

The scientist who creates this material adds no value, neither does the army of workers who labor to manufacture this material and forge it into shape.

If this sounds non-sensical, note how this is identical to the justification for paying obscene remuneration to founders and CEOs.

The little people just don’t mater:

If there was an award for the most pernicious scientific idea ever, what theory should get first prize? I would vote for eugenics, a theory that claims we can ‘improve’ humanity through selective breeding.

If there was a second prize, I’d give it to human capital theory. I think of human capital theory as ‘eugenics light’. It purges the idea that abilities are innate (and that we should selectively breed the ‘fit’). But human capital theory keeps the Nietzschean idea that humanity’s success can be attributed mostly to gifted übermensch.

Among us, human capital theory claims, walk individuals who are unfathomably productive. These übermensch produce more in an hour than most of us do in a week. Take just 1% of these top individuals, and you’ll find that they outproduce the bottom half of society!1 According to human capital theory, then, we could do away with half of society with no great loss to economic output. Of course, few human-capital theorists advocate such atrocities. But my point is that their theory contains the seeds of eugenics … even Nazism.

The ethical problems with eugenics and human capital theory are easy to spot. But what about the scientific problems? These are more difficult to tease out. Eugenics is based on the hard truth that many traits are heritable. Similarly, human capital theory is based on the reality that some people earn hundreds of times more income than others. Where both theories go wrong, however, is that they misunderstand humanity’s social nature.

Yes, many individual traits are heritable. But it is a fallacy that traits that are good for individuals are also good for society. That’s the core scientific flaw in eugenics. And yes, it’s true that some people earn far more than others. But it’s a fallacy that this income is caused by traits of the individual. In reality, income is a social trait.

My goal in this post is not to rigorously debunk human capital theory. (I’ve done that here.) Instead, I’m going to chart its rise and speculate about its eventual fall. I’ll do so by looking at the rise and fall of eugenics. What’s ominous is that the theory that debunks eugenics is today still more obscure than eugenics itself. In a century, will something similar hold for the theory that debunks the idea of human capital?

He then compares this to experiments in animal and human eugenics:

In the 1990s, geneticist William Muir conducted experiments on chickens to see what would improve egg-laying productivity. In one trial, he did exactly what the eugenicists recommend — he let only the most productive hens reproduce. The results were disastrous. Egg-laying productivity didn’t increase. It plummeted. Why? Because the resulting breed of hens was psychopathic. Instead of producing eggs, these ‘uber-hens’ fought amongst themselves, sometimes to the death.

The reason this experiment didn’t work is that egg-laying productivity is not an isolated property of the individual hen. It is a joint property of the hen and her social environment. In Muir’s experiment, the most productive hens laid more eggs not because they were innately more productive, but because they suppressed the productivity of less dominant chickens. By selecting for individual productivity, Muir had inadvertently bred for social dominance. The result was a breed of bully chicken that couldn’t tolerate others.

The lesson here is that in social animals, traits that can be measured among individuals (like productivity) may not actually be traits of the individual. Instead, they are joint traits of both the individual and their social environment. Here’s evolutionary biologist David Sloan Wilson reflecting on this fact:

Muir’s experiments … challenge what it means for a trait to be regarded as an individual trait. If by “individual trait” we mean a trait that can be measured in an individual, then egg productivity in hens qualifies. You just count the number of eggs that emerge from the hind end of a hen. If by “individual trait” we mean the process that resulted in the trait, then egg productivity in hens does not qualify. Instead, it is a social trait that depends not only on the properties of the individual hen but also on the properties of the hen’s social environment.

—(David Sloan Wilson in When the Strong Outbreed the Weak)

A key problem with eugenics is that it neglects the social nature of human traits. It assumes that productivity is an innate trait of the individual, and that breeding for this trait would lead to a better society. It’s a seductive idea that is deeply flawed. In all likelihood, selectively breeding people for productivity would, like chickens, lead to a psychopathic strain of human.

This sounds a lot like the sociopaths who are in the top 1% of the 1%, doesn’t it? 

Jamie Dimon seems to be the apotheosis of such a process. doesn’t he?

The ground work for human capital theory was laid just as eugenics fell out of favor. In the 1950s, economists at the University of Chicago tackled the question of individual income. Why do some people earn more than others? The explanation that these economists settled on was that income resulted from productivity. So a CEO who earns hundreds of times more than a janitor does so for a simple reason: the CEO contributes far more to society.

The claim that income stems from productivity was not new. It dated back to the 19th-century work of John Bates Clark and Philip Wicksteed, founders of the neoclassical theory of marginal productivity.3 Clark and Wicksteed, though, were concerned only with the income of social classes. What the Chicago-school economists did was expand productivist theory to individuals.

  Doing so required inventing a new form of capital. The idea was that individuals’ skills and abilities actually constituted a stock of capital — human capital. This stock made individuals more productive, and hence, earn more income. Figure 3 shows key papers that initiated human capital theory.

………

The idea that skills constituted ‘human capital’ was initially greeted with skepticism. For one thing, the term itself smacked of slavery. (Capital is property, so ‘human capital’ implies human property.) For another, human capital theory overtly justified inequality. It implied that no matter how fat their incomes, the rich always earned what they produced. Any attempt (by the government) to redistribute income would therefore ‘distort’ the natural order. During the 1950s and 1960s, there was little tolerance for such views. It was the era of welfare-state expansion, driven by Keynesian-style thinking. Yes, big government may have been ‘distorting’ the free market — but society seemed all the better for it.

………

We can see the scientific flaws by returning to William Muir’s chicken experiment. I’ve already told you about his psychopathic chickens, created by breeding the most productive hens. But I haven’t told you about his alternative trial. In it, he bred the most productive group of chickens. The result was an astonishing increase in egg-laying productivity.

The reason this group selection worked is that chickens are social animals. That means productivity is influenced by the social environment. By selecting productive groups, Muir selected for egg-laying ability, but also for sociality. The resulting social hens flourished together.

Something similar holds true for humans. The abilities of individuals cannot be separated from the social environment in which they occur. For this reason, any selective breeding based on individual traits is likely to have unintended consequences. If Muir’s chicken experiment is any indication, breeding übermensch wouldn’t create an uber-productive society. It would create a psychopathic one.

The reason comes down to the unit of selection. As social animals, humans have been strongly shaped by the selection of groups. This group selection has tended to suppress selfish tendencies that are otherwise beneficial for individuals.

The bottom line is this:

Human capital theory supposes that income stems from productivity, and that this productivity is an isolated trait of the individual. This thinking, when taken to the extreme, is ludicrous. It implies that an Egyptian Pharaoh was thousands of times more productive than his slaves. Moreover, because this productivity was embodied in the Pharaoh, he could do away with his slaves and still retain his wealth. It gets worse. According to the logic of human capital theory, the Pharaoh’s slaves were actually a burden on the kingdom’s per capita productivity. If the Pharaoh exterminated them, per capita productivity would skyrocket.

Idiocy.

We are run by a bunch of psychopathic hens.

Well, psycho chickens makes a fuck-load more sense than that whole QAnon lizard people thing.

Pass the Popcorn

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Given that Trump has less than 48 hours left in office, I find that NY prosecutors are talking with Michael Cohen about possible tax evasion and fraud, and Atlanta prosecutors appear to be moving toward an investigation toward a Trump prosecution on election meddling, to be amusing and satisfying.

I really hope that Trump goes to jail and is reduced to penury:

New York prosecutors conducted an hours-long interview on Thursday with Michael Cohen, Donald Trump’s former attorney, asking a range of questions about the president’s business dealings, according to three people familiar with the meeting.

The interview focused in part on Trump’s relationship with Deutsche Bank, his biggest and longest-standing creditor, according to the people, who spoke on condition of anonymity.

The interview, at least the second with Cohen by the Manhattan district attorney, comes amid a long-running grand jury investigation into Trump’s business dealings.

………

The Republican president also faces a civil investigation, led by the New York attorney general, Letitia James, a Democrat, into whether his company lied about the value of its assets to get loans or tax benefits.

Cohen is cooperating with that inquiry too. He previously told Congress Trump often inflated the value of his assets when dealing with lenders or potential partners, but deflated them when it benefited him for tax purposes.

………

Cohen, serving the remainder of a federal prison sentence on home confinement, has been asked by investigators to examine Trump Organization documents and provide other details about its corporate structure, the people familiar with the matter said.

Cohen pleaded guilty to evading taxes, lying to Congress and facilitating campaign finance crimes.

Deutsche Bank continued to do business with Trump even after he defaulted in 2008 on a loan for his Chicago hotel and condo development and sued the bank and others he blamed for his inability to repay.

But Deutsche Bank’s private banking division continued to lend to Trump, including $125m to finance the purchase and renovation of his Doral golf resort in 2012, according to previous disclosures.

And as to Atlanta prosecutors: 

Prosecutors in Georgia appear increasingly likely to open a criminal investigation of President Trump over his attempts to overturn the results of the state’s 2020 election, an inquiry into offenses that would be beyond his federal pardon power.

The new Fulton County district attorney, Fani Willis, is already weighing whether to proceed, and among the options she is considering is the hiring of a special assistant from outside to oversee the investigation, according to people familiar with her office’s deliberations.

At the same time, David Worley, the lone Democrat on Georgia’s five-member election board, said this week that he would ask the board to make a referral to the Fulton County district attorney by next month. Among the matters he will ask prosecutors to investigate is a phone call Mr. Trump made in which he pressured Georgia’s secretary of state to overturn the state’s election results.

Jeff DiSantis, a district attorney spokesman, said the office had not taken any action to hire outside counsel and declined to comment further on the case.

Some veteran Georgia prosecutors said they believed Mr. Trump had clearly violated state law.

I am really hoping that we see some prosecutions and convictions, but I fear that this will be yet another case of getting off using the “affluenza” defense.

Why I Don’t Think That Biden Will Reign in Big Tech

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Notice How Many People Started in the Obama Admin

Year over year Google to Admin

The revolving door between big tech and the Obama administration spun so fast that it created a shock wave during the Obama administration, and Biden is heavily relying on old Obama hands.

The corruption and hypocrisy of the Obama administration is likely to be carried forward into a Biden administration.

Notice the important thing here, a shit load more people went to Google for the FIRST time after serving in the Obama administration, meaning that they received a delayed payoff for being friendly to the tech giant’s needs.

These people will not produce meaningful regulation.  

They will serve their real master:

The Google Transparency Project has so fari identified 258 instances of “revolving door” activity (involving 251 individuals) between Googleii or related firms, and the federal government, national political campaigns and Congress during President Obama’s time in office.

That included:

  • 53 revolving door moves between Google and the White House. Those involved 22 former White House officials who left the administration to work for Google, and 31 Google executives (or from Google’s main outside firms) who joined the White House, or were appointed to federal advisory boards.
  • 28 revolving door moves between Google and government positions involving national security, intelligence or the Department of Defense. Seven former national security and intelligence officials and 18 Pentagon officials moved to Google; while three Google executives moved to DoD.
  • 23 revolving door moves between Google and the State Department during the Obama administration. Eighteen former State Department officials joined Google, while five Google officials took up senior posts at the State Department.
  • 9 moves between Google and its outside lobbying firms and the Federal Communications Commission, which handles a growing number of regulatory matters with a major impact on the company’s bottom line.

The analysis included Google affiliates such as YouTube, related firms like Civis Analytics (whose sole investor is Eric Schmidt), as well as key law firms and lobbyists representing Google. [Click here for a detailed description of how we conducted our analysis]

Google has hired from throughout the top echelons of the policymaking world in Washington, including high-level White House officials. It also enjoys the benefit of having former executives moving into top positions in the administration that set policy on issues crucial to the company. Those include the Chief Technology Officer, a former Google executive, and key slots at the Office of Science and Technology Policy (OSTP). Former Googlers also occupy key positions at the National Economic Council and the U.S. Digital Service, a part of the Executive Office of the President.

The company has strategically hired from government agencies that have the greatest impact on its business, like the Federal Communications Commission and Federal Trade Commission. Google, or its main law firms, have hired several people from the Federal Trade Commission, an agency that has conducted investigations into the company’s conduct on privacy and antitrust grounds.

Specific cases can be found if you go to the link and scroll down.  It is a veritable rogues gallery of influence peddling. 

This does not indict the Obama administration specifically as much as it does business as usual in Washington, DC.

It is unsustainable.

Consider the Source

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The International Monetary Fund, which has never found an austerity program it didn’t like, and has consistently argued for the emasculation of worker rights, has just issued a report saying that workers rights must be restored in the US.

Seriously, this is not something that I expected from this organization.

The IMF has been on the side of the banks and the oligarchs since its inception:

Systematic erosion of workers’ power relative to their employers has suppressed US wages

Politicians in both US political parties now acknowledge wage stagnation and have adopted narratives claiming that “the system is rigged.” Some focus on the number of immigrants and on what they see as unfair trade with China. Others focus on monopolies charging higher prices and reaping huge profits. There is, however, no agreement on what, and who, rigged the system.

In fact, as my new paper with colleagues Josh Bivens and Heidi Shierholz, “Explaining Wage Suppression” shows, wages have been kept low in the United States because workers have been systematically disempowered as a result of corporate practices and economic policies that were adopted—or reforms that were blocked—at the behest of business and the wealthy. This lack of worker power has caused wage suppression, increased wage inequality, and exacerbated racial disparities. The specific mechanisms behind this shift in power are excessive unemployment, globalization, eroded labor standards and their lack of enforcement, weakened collective bargaining, and corporate structure changes that disadvantage workers. To reestablish patterns of growth that benefit the vast majority requires new policies that center on rebuilding worker power.

Coming from someone like me, this would be considered pinko ranting, but from the IMF, even publishing this paper represents a shift.

 

Today in Political Weirdness

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Blue Demon Jr., the “adopted son” of the legendary luchador Blue Demon, is running for mayor of the Mexico City municipality of Gustavo A. Madero (GAM) as a progressive. He is anonymous, and says he will only reveal his identity to authorities if he wins https://t.co/i93MJ3dfWm

— Populism Updates (@PopulismUpdates) January 18, 2021

This is actually kind of reassuring.

It shows that the USA is not alone in the mishugas.

When a Prank Goes Awry

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Trippy

A coupole of podcasters decided that it would be fun to put an OAN tags on their microphones, and do interviews of people who they would later mock.

Instead, they found themselves in the middle of a violent lynch mob: 

Vloggers Walter Masterson and J.P. Scattini went undercover at the StopTheSteal rally to make what they thought was a comedy video, but it soon turned far darker and scarier in real time.

They put an OAN marker on their microphone, donned a Trump flag, Trump hats and flag masks, and started interviewing people. It didn’t take them long to realize they were on the edge of an angry, misinformed mob. By the time that mob had broken into the Capitol, they realized this was no ordinary rally, there wasn’t anything funny about it, and they needed to get the hell out of there.

They started off doing Borat, and they finished up doing Marie Catherine Colvin.

A Terrorist and His Mommy Arrested

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Remember this guy?

It turns out that  the only way he was allowed to go out and play with his friends was if his mommy came along. 

Man, this is lame:

A mother-son duo who wielded flex cuffs at the Capitol on Jan. 6 — and openly talked of a violent revolution — are facing conspiracy charges related to the assault on Congress last week, with the FBI describing a plot that may include others “known and unknown” to federal authorities.

In a Saturday legal filing, the FBI indicated that Eric Munchel — who was seen masked and wielding the plastic cuffs inside the Senate chamber in a now widely circulated image — and his mother Lisa Eisenhart would face charges of conspiracy for their efforts to disrupt lawmakers’ efforts to certify the presidential election.

Munchel and Eisenhart are facing charges of “knowingly and willfully conspiring with persons known and unknown” to impede law enforcement, unlawfully entering a restricted building and violently forcing their way into the halls of Congress.

Munchel had been apprehended earlier in the week, but Eisenhart was arrested Saturday in Tennessee and the charges updated to include conspiracy.

………

Although Munchel was masked in the Senate image, the FBI relied on open-source information and distinct patches and symbols on his clothing, as well as surveillance footage and other video shot at the hotel where the pair were staying to identify them. They have since searched Munchel’s home and discovered the items seen in the Capitol picture, including “distinctive black in color Black Rifle Coffee Company hat with American flag and rifle logo, black boots, black camouflaged pants and shirt, and black tactical vest with patches to one of a Punisher logo.

It is reassuring that these losers’ operation security is so unbelievably poor.

I Am Amused

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A few days back, I offered a thoroughly insincere Thoughts and Prayers to the National Rifle Association over the revelations of fraud and self dealing, and their hypocritical attempts to dodge accountability via bankruptcy and relocating their incorporation location.

Now,  a major NRA donor will be filing a lawsuit to prevent the discharge of the debts, because debts incurred by criminal action (in this case fraud) are not subject to relief:

A major donor to the National Rifle Association is poised to challenge key aspects of the gun group’s bankruptcy filing, in an attempt to hold executives accountable for allegedly having defrauded their members of millions of dollars to support their own lavish lifestyles.

Dave Dell’Aquila, a former tech company boss who has donated more than $100,000 to the NRA, told the Guardian on Saturday he was preparing to lodge a complaint in US bankruptcy court in Dallas, Texas. If successful, it could stop top NRA executives discharging a substantial portion of the organisation’s debts.

It could also stop Wayne LaPierre, the NRA’s controversial longtime chief executive, avoiding ongoing lawsuits that allege he defrauded the pro-gun group’s members to pay for luxury travel to the Bahamas and Europe and high-end Zegna suits.

………

Dell’Aquila’s complaint, likely to be brought within the next few weeks, would use a provision of the bankruptcy code to prevent the NRA from sidestepping more than $60m of debt on grounds it was improperly incurred. The law stipulates that debts acquired through malfeasance can be deemed by the court to be an exception to bankruptcy arrangements.

Speaking from his home in Nashville, Tennessee, Dell’Aquila said: “We intend to invoke this provision. We are going to ask the judge to determine that our claim was incurred as a result of fraud and should be deemed non-dischargeable.”

The NRA declared bankruptcy in the Dallas court on Friday. The organization also said it would be relocating from New York, where it was founded in 1871, to Texas.

I’m hoping that LaPierre gets reduced to penury over this.

In addition to being an extremist who foments violence, he’s a crook.

Who Cares, There is Money to Be Made

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US System


Russian Kinzhal

A new report suggests that hypersonic weapons do not add any meaningful military capabilities. (Original paper)

This is not a surprise.

The Skybolt air launched ballistic missile showed how a conventional missile can achieve what they are attempting now in the 1960s,  the Pershing II missile demonstrated a maneuverable reentry vehicle and reached deployment in the 1980s.

This does not matter. 

The defense contractors get their vig, and retired generals get their comfortable sinecures, so it’s good for everyone ……… except the taxpayer, and the people who are told that there is no money to supply a basic social safety net:

Military experts call hypersonic warheads the next big thing in intercontinental warfare. They see the emerging arms, which can deliver nuclear or conventional munitions, as zipping along at up to five miles a second while zigzagging through the atmosphere to outwit early-warning satellites and some interceptors. The superfast weapons, experts say, lend themselves to surprise attacks.

………

Now, independent experts have studied the technical performance of the planned weapon and concluded that its advertised features are more illusory than real. Their analysis is to be published this week in Science & Global Security.

In an interview, David Wright, a physicist at the Massachusetts Institute of Technology and an author of the new analysis, called the superweapon a mirage.

“There’re lots of claims and not many numbers,” he said. “If you put in the numbers, you find that the claims are nonsense.”

Military officials called the paper insubstantial, saying it was based on outdated data. But they declined to disclose new findings.

“Due to the classified nature of hypersonics technologies, we are not at liberty to publicly discuss current capabilities,” Jared Adams, chief spokesman for the Defense Advanced Research Projects Agency, or Darpa, said in an email.

Of course they are.  They want their money. 

Claiming that it’s sooper sekrit knowledge has been a dodge used by the military-industrial complex since Truman was in the White House.

………

By definition, hypersonic vehicles fly at more than five times the speed of sound — or up to dozens of times faster than jetliners. The warheads rise into space atop a traditional long-range missile but then descend quickly into the atmosphere to bank, careen and otherwise maneuver. They’re basically stubby gliders. The curved upper surfaces of their wedge-shaped bodies give them some of the lifting power of an airplane wing.

Dr. Wright and Dr. Tracy based their analysis on the Hypersonic Technology Vehicle 2 — an experimental warhead developed by the Air Force and Darpa. Their findings, they say, also apply to other American prototypes, as well as devices being developed by China, Russia and other countries.

The computer simulations drew on the physics of moving bodies and public disclosures about the Hypersonic Technology Vehicle 2 in order to model its most plausible flight paths. The team zeroed in on signature phases of hypersonic flight — when the vehicle zooms through the atmosphere and then plunges to hit a target.

The two experts say their computer modeling fills in public gaps on the weapon’s overall performance as well as its potential interactions with existing military systems for detecting and defeating weapons launched from distant sites.

In their paper, they see the weapon as essentially failing to outwit early-warning satellites and interceptors. For instance, current generations of space-based sensors, they report, will be able to track the weapon’s fiery twists and turns during most of its flight through the atmosphere.

And surprisingly, given the weapon’s speedy reputation, they say their analysis shows it will fly intercontinental distances more slowly than ballistic missiles and warheads fired on low flight paths known as depressed trajectories. In war, such tactics are seen as a good way for attackers to evade interceptors and lessen warning time.

Dr. Wright and Dr. Tracy conclude that the envisioned new weapon is, at best, “evolutionary — not revolutionary.”

Note that their criticisms are based on some pretty elementary physics, specifically that the lift/drag ratios of hyper-sonic bodies are pretty pathetic.

The Russian Systems, like the Kinzhal, and Chinese systems like the DF-21, are not the wedge shaped lifting bodies, they are simply missiles with improved guidance systems allowing for improved targeting and evasion of defenses.

What’s more, they are already in service in limited numbers.

The US system is more complex, more technically challenging, and doesn’t gain a whole bunch more.

Once again, the US is pursuing “dominance” at an unsustainable cost and a time frame of decades.

To quote Ike, “Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed.”

Because ……… Of Course They Are

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Have you heard the one about Facebook showing ads for military gear next to posts calling for an insurrection?

Nope, this is not a joke. 

Zuckerberg’s Horror is actually doing this.

The employees have flagged this since the lynch mob stormed the Capitol, and Facebook has done ……… Nothing:

Facebook has been running ads for body armor, gun holsters, and other military equipment next to content promoting election misinformation and news about the attempted coup at the US Capitol, despite internal warnings from concerned employees.

In the aftermath of an attempted insurrection by President Donald Trump’s supporters last week at the US Capitol building, Facebook has served up ads for defense products to accounts that follow extremist content, according to the Tech Transparency Project, a nonprofit watchdog group. Those ads — which include New Year’s specials for specialized body armor plates, rifle enhancements, and shooting targets — were all delivered to a TTP Facebook account used to monitor right-wing content that could incite violence.

Beginning last summer, the Mark Zuckerberg–led company banned pages, groups, and accounts belonging to US-based militant groups, “boogaloo” extremists, and those associated with the QAnon mass delusion. But members of those movements quickly found ways around the company’s policies by renaming their pages or using code names. They continue to proliferate, organize, and advertise on the social network.

These ads for tactical gear, which were flagged internally by employees as potentially problematic, show Facebook has been profiting from content that amplifies political and cultural discord in the US.

In related news, water is wet.

I don’t know how you regulate this sort of crap, but if there is a potential to profit from extremism, Facebook will be there.

Well, Shit (It’s Bank Failure Friday!!! )

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 Do you know that I did not expect to see?

Two credit union failures in the first two full weeks of the year.

Today, the Indianapolis’ Newspaper Federal Credit Union of Indianapolis, IN was placed under conservatorship.

An article at American Banker says that they were shut down for, “Unsafe and unsound practices at Indianapolis’ Newspaper FCU,” though no specifics are given. 

It does look like they were attempting something rather speculative, and ultimately unsuccessful, over the past 12 months though.

Announcing the Obvious

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The U.S. Cybersecurity and Infrastructure Security Agency has offered guidance to all Federal agencies suggesting that they install ad-blocking software, because it is a gaping security hole.

This revelation, and $6.95, will get you a small Starbucks decaf pour-over:

The U.S. Cybersecurity and Infrastructure Security Agency urged federal agencies on Thursday to deploy ad-blocking software and standardize web browser usage across their workforces in order to fend off advertisements implanted with malware.

“With many agencies greatly expanding telework options, agencies should increase attention on securing federal endpoints, including associated web browsing capabilities,” the Department of Homeland Security’s cyber arm said in a guide for agencies.

With the alert, CISA joins the National Security Agency, which in 2018 likewise urged agencies to adopt ad blockers in response to the threat from “malvertising” that can spread malware.

………

“Some browser extensions are known to accept payment from advertisers to ensure their ads are allowlisted from blocking,” the agency said, citing concerns that Sen. Ron Wyden, D-Ore. raised last year to the Federal Trade Commission.

Wyden nonetheless had urged the White House to use ad blockers, citing at least one media report of Russia using seemingly innocuous advertisements to target a state election agency.

The entire online ad space can be described as a toxic mix of fraud and security exploits. 

As I am writing about online ads, my standard disclaimer on any post about the aforementioned service applies:

Also, please note, this should be in no way construed as an inducement or a request for my reader(s) to click on any ad that they would not otherwise be inclined to investigate further. This would be a violation of the terms of service for Google™ Adsense™.