Showing posts with label Cohen. Show all posts
Showing posts with label Cohen. Show all posts

Thursday, May 10, 2018

AT&T says it cooperated with Russia probe special counsel in Cohen case

WASHINGTON (Reuters) – Telecommunications giant AT&T Inc, which paid President Donald Trump’s personal attorney Michael Cohen at least $200,000, said on Wednesday it had cooperated fully with the special counsel in the Russia probe.


“When we were contacted by the Special Counsel’s office regarding Michael Cohen, we cooperated fully, providing all information requested in November and December of 2017,” the company said in a statement.


Via Reuters

Featured Image: Mike Mozart/Flickr

The post AT&T says it cooperated with Russia probe special counsel in Cohen case appeared first on Intellihub.

Wednesday, December 13, 2017

John Lennon Was Right: The Government Is Run By Maniacs For Maniacal Means

Authored by John Whitehead via The Rutherford Institute,


Not much has changed in the 37 years since John Lennon was gunned down by an assassin’s bullet.


All of the many complaints we have about government today - surveillance, corruption, harassment, political persecution, spying, overcriminalization, etc. - were used against Lennon, who never refrained from speaking truth to power and calling for social justice, peace and a populist revolution.


Little wonder, then, that the U.S. government saw Lennon as enemy number one.


A prime example of the lengths to which the U.S. government will go to persecute those who dare to challenge its authority, Lennon was the subject of a four-year campaign of surveillance and harassment by the U.S. government (spearheaded by FBI Director J. Edgar Hoover), in an attempt by President Richard Nixon to have him “neutralized” and deported. As Adam Cohen of the New York Times points out, “The F.B.I.’s surveillance of Lennon is a reminder of how easily domestic spying can become unmoored from any legitimate law enforcement purpose.”


Years after Lennon’s assassination, it would be revealed that the FBI had collected 281 pages of surveillance files on him. As the New York Times notes, “Critics of today’s domestic surveillance object largely on privacy grounds. They have focused far less on how easily government surveillance can become an instrument for the people in power to try to hold on to power. ‘The U.S. vs. John Lennon’ … is the story not only of one man being harassed, but of a democracy being undermined.”


Such government-directed harassment was nothing new.


The FBI has had a long history of persecuting, prosecuting and generally harassing activists, politicians, and cultural figures, including Martin Luther King Jr.


In Lennon’s case, the ex-Beatle saw that his music could mobilize the public and help to bring about change. Yet while Lennon believed in the power of the people, he also understood the danger of a power-hungry government. “The trouble with government as it is, is that it doesn’t represent the people,” observed Lennon. “It controls them.”


By March 1971, when his “Power to the People” single was released, it was clear that Lennon was ready to participate in political activism against the U. S. government, the “monster” that was financing the war in Vietnam.


The release of Lennon’s Sometime in New York City album, which contained a radical anti-government message in virtually every song, only fanned the flames of the government’s war on Lennon.


In 1972, Nixon had the ex-Beatle served with deportation orders “in an effort to silence him as a voice of the peace movement.” Despite the fact that Lennon was not plotting to bring down the Nixon Administration, as the government feared, the government persisted in its efforts to have him deported. Equally determined to resist, Lennon dug in and fought back. Finally, in 1976, Lennon won the battle to stay in the country. By 1980, the old radical was back and ready to cause trouble.


Unfortunately, Lennon’s time as a troublemaker was short-lived.


Mark David Chapman was waiting in the shadows on Dec. 8, 1980, just as Lennon was returning to his New York apartment building. As Lennon stepped outside the car to greet the fans congregating outside, Chapman dropped into a two-handed combat stance, emptied his .38-caliber pistol and pumped four hollow-point bullets into Lennon’s back and left arm.


John Lennon was pronounced dead on arrival at the hospital.


Much like Martin Luther King Jr., John F. Kennedy, Malcolm X, Robert Kennedy and others who have died attempting to challenge the powers-that-be, Lennon had finally been “neutralized.” 


Yet Lennon’s legacy lives on in his words, his music and his efforts to speak truth to power.


Even so, his work to change the world for the better is far from done.


As I make clear in my book Battlefield America: The War on the American People, peace remains out of reach. Activists and whistleblowers continue to be prosecuted for challenging the government’s authority. Militarism is on the rise, all the while the governmental war machine continues to wreak havoc on innocent lives. And those who do dare to speak up are labeled dissidents, troublemakers, terrorists, lunatics, or mentally ill and tagged for surveillance, censorship or, worse, involuntary detention.


As Lennon shared in a 1968 interview:


I think all our society is run by insane people for insane objectives…


 


I think we’re being run by maniacs for maniacal means.


 


If anybody can put on paper what our government and the American government and the Russian… Chinese… what they are actually trying to do, and what they think they’re doing, I’d be very pleased to know what they think they’re doing.


 


I think they’re all insane. But I’m liable to be put away as insane for expressing that. That’s what’s insane about it.”



So what’s the answer?


Lennon had a multitude of suggestions.


“If everyone demanded peace instead of another television set, then there’d be peace.”


 


“Produce your own dream. If you want to save Peru, go save Peru. It’s quite possible to do anything, but not to put it on the leaders….You have to do it yourself.”


 


“Peace is not something you wish for; It’s something you make, Something you do, Something you are, And something you give away.”


 


“War is over, if you want it.”



In other words, fighting the evil of the American police state can only come about by way of conscious thoughts that are put into action.


Do you want an end to war? Then stop supporting the government’s military campaigns. Do you want government violence against the citizenry to end? Then demand that your local police de-militarize. Do you want a restoration of your freedoms? You’ll have to get the government to recognize that “we the people” are the masters in this relationship and government employees are our public servants.


The choice is ours.


The power (if we want it), as Lennon recognized, is in our hands.


“The people have the power, all we have to do is awaken that power in the people,” concluded Lennon. “The people are unaware. They’re not educated to realize that they have power. The system is so geared that everyone believes the government will fix everything. We are the government.”



For the moment, the choice is still ours: slavery or freedom, war or peace, death or life.


The point at which we have no choice is the point at which the monsters—the maniacs, the powers-that-be, the Deep State—win.


As Lennon warned, “You either get tired fighting for peace, or you die.”









Tuesday, December 5, 2017

SEC Wins Injunction Against ICO Organized By Financial Fraudster

The Securities and Exchange Commission is stepping up its long-overdue crackdown on shady initial coin offerings that are churning out suckers at a record clip with one simple promise: Invest in our coin and you, too, can receive an astronomical IRR just like your savvy cousin who bought a handful of bitcoins back in 2011 and decided to hold on for dear life.


In an enforcement action that, as far as we can tell, is the first of its kind anywhere, the SEC just won an emergency asset freeze to stop an initial coin offering that the agency said has defrauded investors by promising a 13-fold profit in less than a month.


While such an outrageous guarantee should immediately set alarm bells ringing in the minds of any experienced investor, bitcoin’s 1,000%-plus return so far this year has inspired many lazy would-be crypto millionaires to throw caution to the wind and approach every new ICO with a level of credulity that’s totally unjustified. But anybody who actually reads the “white papers” that many of these companies release will realize that they typically comprise hypertechnical gibberish designed to convince investors that there is no problem in the world today that can’t be solved with a blockchain and thousands of monetized tokens.



According to Bloomberg, the asset freeze was granted after the SEC sued Dominic Lacroix and his company PlexCorps in federal court in Brooklyn. The firm and Lacroix, described by the SEC as a recidivist securities-law violator (a status that’s not uncommon among so-called “entrepreneurs” in the massively fraudulent world of ICOs), have raised $15 million since August marketing and selling a product called PlexCoin.


The case is the first brought by a new SEC unit created in September to focus specifically on ICOs.


“This first Cyber Unit case hits all of the characteristics of a full-fledged cyber scam and is exactly the kind of misconduct the unit will be pursuing,” said Robert Cohen, head of the SEC’s Cyber Unit.


 


“We acted quickly to protect retail investors from this initial coin offering’s false promises."



According to the SEC, Lacroix and PlexCorps violated securities laws by failing to register the offering and not disclosing Lacroix’s involvement with probes by Canadian authorities, the SEC said. The agency also sued and froze the assets of Sabrina Paradis-Royer, described as Lacroix’s romantic partner. The suit seeks fines and disgorgement from Lacroix and Paradis-Royer, as well as a ban on their participation in offerings of digital securities.



The SEC fired its warning shot in July when its ruling on an investigation into the collapse of the DAO - a sort of proto-ICO that went bust after hackers stole $50 million worth of ethereum tokens (of course, the total value of the tokens stolen has massively inflated in the interveneing period) - officially declared ICOs to be securities that must be registered with the SEC. In August, the regulator warned investors to exercise extreme caution before investing in ICOs, warning that many are classic pump-and-dump schemes obscured by a new techno-veneer.


Even the most successful ICOs are on the verge of collapse. The 800 or so ICOs that have launched this year have raised nearly $4 billion. Yet the market has been astonishingly devoid of success stories.


Yesterday, we reported how frustrated investors in Tezos, which raised more than $230 million in an ICO over the summer, have filed a spate of class action lawsuits against the company alleging that its founders intentionally defrauded investors. The company, which had little more than a white paper to its name when it completed its offering, has yet to produce the digital tokens it promised investors.



Meanwhile, the ethereum and bitcoin that it accepted as payment during its crowdsale have appreciated massively in the intervening months.


But for those investors who still insist on invest in the ICO market - where founders fool investors with nonsensical business plans that they pass off as “too complicated” for the average layperson to grasp - one 16-year-old math whiz has created a product that will reportedly allow investors to invest in a “tranche” covering the entire ICO market.


As the press release explains, the answer is simple:


In a nutshell: We’re going to take a position in each ICO, then wrap those up into their own ICO and then you can buy tranches of that ICO depending on your “risk tolerance” i.e. how strong a person you are.


 


Basically, it’s all a question of how RICH YOU WANT TO BECOME. The bottom tranche is so safe that you can basically put your entire life savings in and earn a fat return.



The notion that diversification can help investors avoid losses in a massively fraudulent market is, of course, a canard. At the end of the day, it"ll be the investors - not the offering"s organizer - left holding the bag once the entire market goes to zero.
 









Wednesday, November 15, 2017

House Democrats Introduce Five Articles Of Impeachment Against Trump

Just days after Democrat Rep. Luis Gutiérrez (D-Ill.), became the third House Dem to file articles of impeachment, joining Trump antagonists Brad Sherman (Calif.) and Al Green (Texas) who both filed similar articles earlier this year, on Wednesday morning several House Democrats introduced five articles of impeachment targeting President Trump, claiming that Trump has violated the Constitution.


Following through on their threats, Democratic representatives Steve Cohen, Luis Gutierrez, Brad Sherman and Al Green were among those at a press conference, saying the five articles of impeachment come out of concern for the country"s national security. The articles focus on Trump"s firing of former FBI Director James Comey, perceived violations of the Emoluments Clause, as well as actions "undermining" the judiciary and freedom of the press.


"We believe that President Trump has violated the Constitution, and we"ve introduced five articles of impeachment," Cohen said at a press conference.



Gutierrez posted a picture of the official articles of impeachment from his Twitter account Wednesday morning.



 Michael Ahrens RNC spokesman, issued the following statement in response:








“House Democrats lack a positive message and are completely unwilling to work across the aisle, so instead they’ve decided to support a baseless radical effort that the vast majority of Americans disagree with. Republicans are focused on issues the middle class actually cares about, like cutting taxes and growing the economy.”



As a reminder, here"s what an impeachment would look like, courtesy of Statista.










Saturday, November 11, 2017

Are You Still Here?

The last few weeks of disgusting exposés from various so-called celebrities have proven one thing for sure - you cannot trust a single one of them... But then we knew that a year ago when half the liberal media world declared they would leave if Donald Trump was elected President... They didn"t!


As a reminder, Canada’s immigration website crashed from heavy traffic as it looked increasingly likely that Trump would win.



Here is a list of some of the celebs who claimed they would move out of the U.S. under a Trump administration. (via The Hill)


Actors


Bryan Cranston said he hopes he doesn’t have to pack his bags, but would “definitely move” if Trump won. “Absolutely, I would definitely move,” the “Breaking Bad” star said on “The Bestseller Experiment” podcast. “It’s not real to me that that would happen. I hope to God it won’t.”


Samuel L. Jackson slammed Trump for running a “hate”-filled campaign and said he would move to South Africa if he wins. “If that motherf---er becomes president, I’m moving my black ass to South Africa,” the movie star quipped to Jimmy Kimmel.


Lena Dunham told Andy Cohen at the Matrix Awards that “I know a lot of people have been threatening to do this, but I really will. I know a lovely place in Vancouver.” The star and creator of HBO’s “Girls” has been a vocal advocate for Hillary Clinton, the Democratic nominee.


Neve Campbell, an actress on the political drama “House of Cards,” vowedto move back home to Canada, while “Orange is the New Black” actress Natasha Lyonne said she would hightail it to a mental hospital.


Singers


Cher tweeted this summer that if Trump gets elected, “I’m moving to Jupiter.”


Miley Cyrus wrote in an emotional Instagram post in March that tears were running down her cheek and she was unbelievably scared and sad. “I am moving if he is president,” the young pop star said. “I don’t say things I don’t mean!”


Barbara Streisand, a vocal Clinton supporter, told “60 Minutes” that “I’m either coming to your country if you’ll let me in, or Canada.”


Ne-Yo told TMZ last month that he’d move to Canada and be neighbors with fellow R&B singer Drake if the country elected Trump.


Comedians


Comedian Amy Schumer said in September that Spain would be her destination of choice. “My act will change because I will need to learn to speak Spanish,” Schumer said in an appearance on the BBC’s “Newsnight.” “Because I will move to Spain or somewhere. It’s beyond my comprehension if Trump won. It’s just too crazy.”


Chelsea Handler said she already made contingency plans months ago. “I did buy a house in another country just in case,” the comedian and talk show host said during an appearance on “Live with Kelly and Michael” in May. “So all these people that threaten to leave the country and then don’t — I actually will leave that country.”


Former “Daily Show” host Jon Stewart said he would consider “getting in a rocket and going to another planet, because clearly this planet’s gone bonkers” if the real estate mogul wins.


Whoopi Goldberg, co-host of the “The View”, said on an episode of the talk show earlier this year that if the country elects Trump, “maybe it’s time for me to move, you know. I can afford to go.”


Keegan-Michael Key said he would flee north to Canada. “It’s like, 10 minutes from Detroit,” the comedian told TMZ in January. “That’s where I’m from; my mom lives there. It’d make her happy too.”


Hispanic comedian George Lopez said Trump “won’t have to worry about immigration” if he takes the White House because “we’ll all go back.”


Political Figures


Supreme Court Justice Ruth Bader Ginsburg joked in an interview with The New York Times in July that it’d be time to move to New Zealand if Trump were to win. “Now it’s time for us to move to New Zealand,” she said quoting her husband who died in 2010. “I can’t imagine what the country would be with Donald Trump as our president. For the country, it could be four years. For the court, it could be — I don’t even want to contemplate that.” Ginsburg later apologized for her comments, calling them “ill-advised.”


Civil rights activist Al Sharpton told a reporter earlier this year that he’s “reserving my ticket out of here if [Trump] wins.”


*  *  *


One year later... and they"re all still here.


Perhaps the lesson is those who "virtue signal" the most, are often the most lack in virtue.









Tuesday, October 31, 2017

Crypto Mania - Why "It Is Currently Rational To Be Irrational"

Following JP Morgan CEO, Jamie Dimon’s, now infamous rant about Bitcoin being a fraud, a great product for criminals and having no value, Adam Ludwin, CEO of Chain.com, wrote “A Letter to Jamie Dimon”, which received some coverage in the financial media for its balanced discussion regarding the outlook for cryptocurrencies.


In his letter, Ludwin noted...


In short: there’s a lot of noise. But there is also signal.


 


To find it, we need to start by defining cryptocurrency. Without a working definition we are lost. Most people arguing about cryptocurrencies are talking past each other because they don’t stop to ask the other side what they think cryptocurrencies are for.  


 


Here’s my definition: cryptocurrencies are a new asset class that enable decentralized applications. If this is true, your (Jamie Dimon’s) point of view on cryptocurrencies has very little to do with what you think about them in comparison to traditional currencies or securities, and everything to do with your opinion of decentralized applications and their value relative to current software models. Don’t have an opinion on decentralized applications? Then you can’t possibly have one on cryptocurrencies yet…And since this isn’t about cryptocurrencies vs. fiat currencies let’s stop using the word currency. It’s a head fake. It has way too much baggage and I notice that when you talk about Bitcoin in public you keep comparing it to the Dollar, Euro, and Yen. That comparison won’t help you understand what’s going on. In fact, it’s getting in the way.



Back in your box, Jamie.


As Forbes reports, Ludwin was invited to speak at a recent SEC meeting...


The Securities and Exchange Commission Investor Advisory Committee held a public meeting regarding blockchain and distributed ledger technology earlier this month, and one of the individuals who was invited to participate in the meeting was Chain CEO Adam Ludwin. During his opening remarks, Ludwin shared his perspective on the entire blockchain ecosystem (both public and private models), but the most compelling part of his appearance may have been when he shared his views on the current price mania around cryptocurrencies and initial coin offerings (ICO).


 


“I think you have to look at it from the perspective of the buyer and the seller mentality,” Ludwin said of the current digital asset market. “In essence, it is currently rational to be irrational as a buyer [or] a seller in this market.



In Ludwin’s opinion, the buyers of ICOs are either people who made tons of money in Bitcoin/Ethereum or people who missed Bitcoin/Ethereum, because they didn’t understand them, so have resorted to buying tokens they don’t understand either.


When discussing the kinds of people who are participating in ICOs and token crowdsales during his appearance at the public meeting, Ludwin was quick to point to those who have already made large sums of cash by speculating on the prices of bitcoin and ether over the past few years. “On the buyer side, there are many, many people who invested early in bitcoin, made a tremendous amount of money and now have, effectively, a house money effect weighing on them where it’s found money — it’s a windfall — and they’re diversifying into every new project that comes along because: Why not?” explained Ludwin.


“If you’ve made money, you might as well say, ‘I’ll keep going.’” Ludwin also pointed to those who sat on the sidelines while bitcoin and ether went up a hundredfold or more because they didn’t understand the technology as probable buyers of new digital assets.


 


“Now, you almost have this inverted mindset where you tell yourself, ‘Alright, I have to look for things I don’t understand, and the more confusing it is, the better investment it probably is,’” said Ludwin. “It’s a very perverse mentality, obviously.”



As for the sellers of ICOs, Ludwin explains why it’s even crazier than the dot.com boom.


From Ludwin’s perspective, the irrational exuberance from the buy side of the market has led to the creation of many new projects willing to meet that demand. The Chain CEO shared three reasons as to why it’s extremely tempting for individuals and teams to create, issue, and sell new cryptocurrencies. “Number one, there’s no dilution (it’s not equity in the traditional sense) and there’s no debt — you don’t have to pay it back,” said Ludwin.


 


“People are buying for the appreciation expectations. It’s really free financing; it’s a remarkable instrument. [Secondly], there’s a belief out there that, by selling tokens, you’re creating evangelists for your project and they will tell their friends [about it]. And the truth is that’s probably right. People are interested in spreading the news about a new token in order for their tokens to go up in price and the sellers do have a kind of product/market fit. Of course, the thing that people are buying is a dream of making money, not interest in the underlying service usually. Finally, there’s an ability now by issuing these tokens to actually exit before you start. Normally, when you build a company, the exit comes at the end (and that’s why it’s called the exit). Here, if you issue a token and you can clear tens of millions of dollars before your project even launches, it’s an even better deal than we had in the 90s [dotcom bubble].”



Forbes comments on how many ICOs are merely exploiting Ethereum’s ERC-20 standard. 


The perfect example of the inability for some companies or projects to resist the urge to do their own ICO might be messaging app Kik’s Kin token. According to CoinJournal, Kik CEO Ted Livingston admitted that they were essentially launching the token because they had no other way to compete with Facebook. Kik was able to raise nearly $100 million in their token distribution event — money that comes with all of the benefits mentioned by Ludwin. Ethereum’s ERC-20 token standard has also made it extremely easy for anyone to launch a new digital asset with the click of a button. BitTorrent creator Bram Cohen discussed the ease with which tokens can be launched on top of Ethereum at the Blockstack Summit earlier this year.


 


“A lot of what people are doing now are these like ERC-20 tokens and stuff on Ethereum for their ICOs mostly because they don’t possess the skills to roll out an actual altcoin for the most part, which is not confidence inspiring,” said Cohen. “As a general rule, if you don’t possess the skills to roll out an altcoin, you probably shouldn’t be doing an ICO.” In the past, those who wanted to launch a new, tradeable token needed to create their own blockchain from scratch and convince exchanges to take the time to add it to their platform. The ERC-20 standard has made the process of adding a new token to an exchange much simpler because many of the new tokens follow the same general structure.



In the opening section of his letter to Jamie Dimon, Ludwin stated....


It’s easy to believe cryptocurrencies have no inherent value. Or that governments will crush them. It’s also becoming fashionable to believe the opposite: that they will disrupt banks, governments, and Silicon Valley giants once and for all. Neither extreme is true. The reality is nuanced and important. Which is why I’ve decided to write you this briefing note. I hope it helps you appreciate cryptocurrencies more deeply.


Let me start by stating that I believe:


  • The market for cryptocurrencies is overheated and irrationally exuberant

  • There are a lot of poseurs creating them, and some scammers, too

  • There are a lot of conflicts of interest, self-serving hype, and obfuscation

  • Very few people in the media understand what’s going on

  • Very few people in finance understand what’s going on

  • Very few people in technology understand what’s going on

  • Very few people in academia or government understand what’s going on

  • Very few people buying cryptocurrencies understand what’s going on

  • It’s very possible I don’t understand what’s going on

Also:


  • Banks and governments aren’t going away

  • Traditional software isn’t going away

Ludwin argues that all asset classes exist to allocate resources to a specific form of organization.


Despite the myopic focus on trading crypto assets recently, they don’t exist solely to be traded. That is, in principle at least, they don’t exist for their own sake. To understand what I mean, think about other asset classes and what form of organization they serve:


  • Corporate equities serve companies

  • Government bonds serve nations, states, municipalities

  • Mortgages serve property owners

And now:


  • Crypto assets serve decentralized applications

If you haven’t read Ludwin’s letter, you’d probably assume that he argues for the superiority of decentralized application over centralized applications, but you’d be wrong. He explains.


In fact, on almost every dimension, decentralized services are worse than their centralized counterparts:


  • They are slower

  • They are more expensive

  • They are less scalable

  • They have worse user experiences

  • They have volatile and uncertain governance

And no, this isn’t just because they are new. This won’t fundamentally change with bigger blocks, lightning networks, sharding, forks, self-amending ledgers, or any other technical solutions. That’s because there are structural trade-offs that result directly from the primary design goal of these services, beneath which all other goals must be subordinated in order for them to be relevant: decentralization.


Here’s the important bit about crypto assets for Ludwin.


Thus, bitcoin, for example, isn’t best described as “Decentralized PayPal.” It’s more honest to say it’s an extremely inefficient electronic payments network, but in exchange we get decentralization. Bottom line: centralized applications beat the pants off decentralized applications on virtually every dimension. EXCEPT FOR ONE DIMENSION. And not only are decentralized applications better at this one thing, they are the only way we can achieve it. What am I referring to? Censorship resistance. This is where we come to the elusive signal in the noise. Censorship resistance means that access to decentralized applications is open and unfettered. Transactions on these services are unstoppable. More concretely, nothing can stop me from sending Bitcoin to anyone I please. Nothing can stop me from executing code on Ethereum. Nothing can stop me from storing files on Filecoin. As long as I have an internet connection and pay the network’s transaction fee, denominated in its crypto asset, I am free to do what I want. (If Bitcoin is capitalism distilled, it’s also a kind of freedom distilled. Which is why libertarians can get a bit obsessed.)



Here are his “big picture” thoughts from the letter on the challenge for cryptos.


Given how different they are from the app models we know and love, will anyone ever really use decentralized applications? Will they become a critical part of the economy? It’s hard to predict because it depends in part on the technology’s evolution but far more on society’s reaction to it. For example: until relatively recently, encrypted messaging was only used by hackers, spies, and paranoids. That didn’t seem to be changing. Until it did. Post-Snowden and post-Trump, everyone from Silicon Valley to the Acela corridor seems to be on either Signal or Telegram. WhatsApp is end-to-end encrypted. The press solicit tips through SecureDrop. Yes, the technology got a little better and easier to use. But it is mainly changes in society that are driving adoption. In other words, we grew up in the rainforest, but sometimes things change and it helps to know how to adapt to other environments. And this is the basic argument that the smart money is making on crypto assets and decentralized applications: that it’s simply too early to say anything. That it is a profound change. That, should one or more of these decentralized applications actually become an integral part of the world, their underlying crypto assets will be extremely valuable.



Despite his use of words like “irrational” and “perverse”, Forbes notes that Ludwin’s view on the outlook for cryptocurrency prices is positive.


Although Ludwin took part of his time to address the obvious (some would call) bubble in the cryptocurrency market, he still sees a bright future for this new asset class. “Despite what probably sounds like a bit of cynicism here on cryptocurrencies and the fact that it’s obvious, I think, to every fair observer that we’re witnessing a mania that will have a correction . . . you should not bet against cryptocurrencies in their long term sustainability or viability and the reality that they are a new asset class, that they’re enabling a fundamentally new and important segment, and I think [they] will only increase globally in value over time,” said Ludwin.


 









Sunday, October 8, 2017

Russiagate Is More Fiction Than Fact

Authored by Aaron Mate via TheNation.com,


From accusations of Trump campaign collusion to Russian Facebook ad buys, the media has substituted hype for evidence...



In her new campaign memoir, What Happened, Hillary Clinton reveals that she has followed “every twist and turn of the story,” and “read everything I could get my hands on,” concerning Russia’s role in the 2016 presidential election. “I do wonder sometimes about what would have happened if President Obama had made a televised address to the nation in the fall of 2016 warning that our democracy was under attack,” she writes.


Clinton has had a lot to take in. Since Election Day, the controversy over alleged Russian meddling and Trump campaign collusion has consumed Washington and the national media. Yet nearly one year later there is still no concrete evidence of its central allegations. There are claims by US intelligence officials that the Russian government hacked e-mails and used social media to help elect Donald Trump, but there has yet to be any corroboration. Although the oft-cited January intelligence report “uses the strongest language and offers the most detailed assessment yet,” The Atlantic observed that “it does not or cannot provide evidence for its assertions.” Noting the “absence of any proof” and “hard evidence to back up the agencies’ claims that the Russian government engineered the election attack,” The New York Times concluded that the intelligence community’s message “essentially amounts to ‘trust us.’” That remains the case today.


The same holds for the question of collusion. Officials acknowledged to Reuters in May that “they had seen no evidence of wrongdoing or collusion between the campaign and Russia in the communications reviewed so far.” Well-placed critics of Trump - including former DNI chief James Clapper, former CIA director Michael Morrell, Representative Maxine Waters, and Senator Dianne Feinstein - concur to date.


Recognizing this absence of evidence helps examine what has been substituted in its place.


Shattered, the insider account of the Clinton campaign, reports that “in the days after the election, Hillary declined to take responsibility for her own loss.” Instead, one source recounted, aides were ordered “to make sure all these narratives get spun the right way.” Within 24 hours of Clinton’s concession speech, top officials gathered “to engineer the case that the election wasn’t entirely on the up-and-up.… Already, Russian hacking was the centerpiece of the argument.”


But the focus on Russia has utility far beyond the Clinton camp. It dovetails with elements of state power that oppose Trump’s call for improved relations with Moscow and who are willing to deploy a familiar playbook of Cold War fearmongering to block any developments on that front.


The multiple investigations and anonymous leaks are also a tool to pacify an erratic president whose anti-interventionist rhetoric—by all indications, a ruse—alarmed foreign-policy elites during the campaign. Corporate media outlets driven by clicks and ratings are inexorably drawn to the scandal. The public is presented with a real-life spy thriller, which for some carries the added appeal of possibly undoing a reviled president and his improbable victory.



These imperatives have incentivized a compromised set of journalistic and evidentiary standards. In Russiagate, unverified claims are reported with little to no skepticism. Comporting developments are cherry-picked and overhyped, while countervailing ones are minimized or ignored. Front-page headlines advertise explosive and incriminating developments, only to often be undermined by the article’s content, or retracted entirely. Qualified language—likely, suspected, apparent—appears next to “Russians” to account for the absence of concrete links. As a result, Russiagate has enlarged into a storm of innuendo that engulfs issues far beyond its original scope.


The latest two stories about alleged Trump campaign collusion were initially received as smoking guns. But upon further examination, they may actually undermine that narrative.


One was news that Trump had signed a non-binding letter of intent to license his name for a proposed building in Moscow as he ran for the White House. Russian-born developer Felix Sater predicted to Trump lawyer Michael Cohen that the deal would help Trump win the presidency. “I will get Putin on this program and we will get Donald elected,” Sater wrote, believing that voters would be impressed that Trump could make a real-estate deal with the United States’ “most difficult adversary.” The New York Times describes the outcome:





There is no evidence in the emails that Mr. Sater delivered on his promises, and one email suggests that Mr. Sater overstated his Russian ties. In January 2016, Mr. Cohen wrote to Mr. Putin’s spokesman, Dmitri S. Peskov, asking for help restarting the Trump Tower project, which had stalled. But Mr. Cohen did not appear to have Mr. Peskov’s direct email, and instead wrote to a general inbox for press inquiries.



The project never got government permits or financing, and died weeks later.



Peskov has confirmed he ended up seeing the e-mail from Cohen, but did not bother to respond. The story does raise a potential conflict of interest: Trump pursued a Moscow deal as he praised Putin on the campaign trial. But it is hard to see how a deal that never got off the ground is of more importance than actual deals Trump made in places like Turkey, the Philippines, and the Persian Gulf. If anything, the story should introduce skepticism into whether any collusion took place: The deal failed, and Trump’s lawyer did not even have an e-mail address for his Russian counterparts.


The revelation of Sater’s e-mails to Cohen followed the earlier controversy of Rob Goldstone offering Donald Trump Jr. incriminating information on Hillary Clinton as “part of Russia and its government’s support for Mr. Trump.” Goldstone’s e-mail was more fruitful than Sater’s in that it yielded a meeting, albeit one that Trump Jr. claims he abandoned after 20 minutes. Those who deem the Sater-Goldstone e-mail chains incriminating or even treasonous should be reminded of their provenance: Sater is known as “a canny operator and a colorful bullshitter” who has “launched a host of crudely named websites—including IAmAFaggot.com and VaginaBoy.com… to attack a former business partner.” Meanwhile, Goldstone is a British tabloid journalist turned music publicist. One does not have to be an intelligence expert to doubt that they are Kremlin cut-outs.


Then there is Facebook’s disclosure that fake accounts “likely operated out of Russia” paid $100,000 for 3,000 ads starting in June 2015. The New York Times editorial board described it as “further evidence of what amounted to unprecedented foreign invasion of American democracy.” A $100,000 Facebook ad buy seems unlikely to have had much impact in a $6.8 billion election. According to Facebook, “the vast majority of ads…didn’t specifically reference the US presidential election, voting or a particular candidate” but rather focused “on amplifying divisive social and political messages across the ideological spectrum—touching on topics from LGBT matters to race issues to immigration to gun rights.” Facebook also says the majority of ads, 56 percent, were seen “after the election.” The ads have not been released publicly. But by all indications, if they were used to try to elect Trump, their sponsors took a very curious route.


The ads are commonly described as “Russian disinformation,” but in the most extensive reporting on the story to date, The Washington Post adds multiple qualifiers in noting that the ads “appear to have come from accounts associated with the Internet Research Agency,” itself a Kremlin-linked firm (emphasis added).


The Post also reveals that an initial Facebook review of the suspected Russian accounts found that they “had clear financial motives, which suggested that they weren’t working for a foreign government.” Furthermore, “the security team did not find clear evidence of Russian disinformation or ad purchases by Russian-linked accounts.” But Russiagate logic requires a unique response to absent evidence: “The sophistication of the Russian tactics caught Facebook off-guard.”


The Post adds how Russian “sophistication” was overcome:





As Facebook struggled to find clear evidence of Russian manipulation, the idea was gaining credence in other influential quarters.



In the electrified aftermath of the election, aides to Hillary Clinton and Obama pored over polling numbers and turnout data, looking for clues to explain what they saw as an unnatural turn of events.



One of the theories to emerge from their post-mortem was that Russian operatives who were directed by the Kremlin to support Trump may have taken advantage of Facebook and other social media platforms to direct their messages to American voters in key demographic areas in order to increase enthusiasm for Trump and suppress support for Clinton.



These former advisers didn’t have hard evidence that Russian trolls were using Facebook to micro-target voters in swing districts—at least not yet—but they shared their theories with the House and Senate intelligence committees, which launched parallel investigations into Russia’s role in the presidential campaign in January.



The theories paid off. A personal visit in May by Democratic Senator Mark Warner, vice-chair of the Senate Intelligence Committee, “spurred the company to make some changes in how it conducted its internal investigation.” Facebook’s announcement in August of finding 3,000 “likely” Russian ads is now an ongoing “scandal” that has dragged the company before Congressional committees.


Other election threats loom. A recent front-page New York Times article linking Russian cyber operations to voting irregularities across the United States is headlined, “Russian Election Hacking Efforts, Wider Than Previously Known, Draw Little Scrutiny.” But read on and you’ll discover that there is no evidence of “Russian election hacking,” only evidence-free accusations of it. Voting problems in Durham, North Carolina, “felt like tampering, or some kind of cyberattack,” election monitor Susan Greenhalgh says, and “months later…questions still linger about what happened that day in Durham as well as other counties in North Carolina, Virginia, Georgia and Arizona.” There is one caveat: “There are plenty of other reasons for such breakdowns—local officials blamed human error and software malfunctions—and no clear-cut evidence of digital sabotage has emerged, much less a Russian role in it.”


The evidence-free concern over Russian hacking expanded in late September when the Department of Homeland Security informed 21 states that they had been targeted by Russian cyber-operations during the 2016 election. But three states have already dismissed the DHS claims, including California, which announced that after seeking “further information, it became clear that DHS’s conclusions were wrong.”


Recent elections in France and Germany saw similar fears of Russian hacking and disinformation—and similar results. In France, a hack targeting the campaign of election winner Emmanuel Macron ended up having “no trace,” of Russian involvement, and “was so generic and simple that it could have been practically anyone,” the head of French cyber-security quietly explained after the vote. Germany faced an even more puzzling outcome: Nothing happened. “The apparent absence of a robust Russian campaign to sabotage the German vote has become a mystery among officials and experts who had warned of a likely onslaught,” the Post reported in an article headlined “As Germans prepare to vote, a mystery grows: Where are the Russians?” The mystery was so profound that The New York Times also explored it days later: “German Election Mystery: Why No Russian Meddling?”


Following this evidentiary praxis, Russia can be blamed for matters far beyond Western elections. After the recent white-supremacist violence in Charlottesville, foreign-policy consultant Molly McKew issued a widely circulated appeal on Twitter: “We need to have a conversation about what is happening today in Charlottesville & Russian influence, and operations, in the United States.” (McKew recently testified at a US government hearing on “The Scourge of Russian Disinformation.”)


Writing for CNN, Yale Law School’s Asha Rangappa asserted that Charlottesville “highlighted again the problem of Russia.” Sure, Rangappa concedes, “there is no evidence to date that Russia is directly supporting extreme right groups in the United States.” But Russian government ties to the European far-right “when viewed through the lens of Trump’s response to Charlottesville, suggests an opening for Russian intelligence to use domestic hate groups as a vehicle for escalating their active measures inside the United States.”


Linking Russia to right-wing American racists contrasts with just a few months prior, when it was fashionable to tie Russia to the polar opposites. In March, intelligence-community witnesses soberly testified to Congress that Russia’s “21st-century cyber invasion” has “tried to sow unrest in the U.S. by inflaming protests such as Occupy Wall Street and the Black Lives Matter movement.” The evidence presented for this claim was that both movements were covered by the Russian state-owned television network RT.


Russian-linked tweets about NFL players kneeling during the national anthem to protest racial injustice show the Russians “trying to push divisiveness in this country,” says Republican Senator James Lankford. A Russian-linked ad about Black Lives Matter aimed at audiences in Ferguson and Baltimore “tells us…that the Russians who bought these ads were sophisticated enough to understand that targeting a Black Lives Matter ad to the communities…would help sow political discord.… the goal here was really about creating chaos,” says CNN reporter Dylan Byers.


But this story might actually tell us a lot more about the attitudes of pundits and lawmakers towards their audiences. On top of the 3,000 ads identified by Facebook, Twitter has now informed Congress of around 200 accounts “linked to Russian interference in the 2016 election.” Twitter has 328 million users. To suggest 200 accounts out of 328 million could have had an impact is as much an insult to common sense as it is to basic math. It also suggests Black Lives Matter protesters in places like Ferguson and Baltimore were unwitting foreign agents who needed Russian social-media prodding to march in the streets. To protest racism is not to sow “chaos” and “political discord,” but to protest racism.


Because the ads may have originated in Russia, it is widely taken for granted that they were part of an alleged Russian government plot. Few have considered a different scenario, pointed out by the journalist Max Blumenthal, that the ads could have been like those from any other troll farm: clickbait to attract page views.


Some who focus on Russiagate may be acting from the real fear and disorientation that follows from the victory of the most unqualified and unpredictable president in history. But those who partake, particularly those in positions of privilege, should consider that Russiagate offers them a safe and anodyne way to “Resist.” For privileged Americans to challenge Trump mainly over Russia is to do so in a way that avoids confronting their own relationship to the economic and political system that many of his voters rebelled against. “If the presidency is effectively a Russian op, if the American presidency right now is the product of collusion between the Russian intelligence services and an American campaign,” to borrow a scenario posed by Rachel Maddow, then there is nothing else to confront.


But economic discontent, along with voter suppression, the Democratic Party’s failures to reach voters, and corporate media that gave endless attention to Trump’s empty promises and racial animus, are among the issues cast aside by the incessant focus on Russigate, as are the very real US-Russia tensions that do not fit the narrative.


Amid widespread talk of Putin pulling the strings, Trump has quietly appointed anti-Russia hawks to key posts and admitted a new NATO member over Russian objections. Trump’s top military commander, Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff, is backing an effort by the Pentagon and Congress to arm Ukraine with new weapons. President Obama had rejected a similar proposal out of fear it would inflame the country’s deadly conflict. Just before Russia’s recent war games with allied Belarus, the United States and NATO allies carried out their “biggest military exercise in eastern Europe since the Cold War” right next door.


These tensions only stand to worsen in a political climate in which diplomacy with Russia is seen as a weakness, and in which challenging it through sanctions and militarism is one of the few areas of bipartisan agreement. Conflict with a nuclear power may threaten the future annihilation of many, but it offers immediate benefits for some. “NATO concerns about Russia are seen as a positive for the defense industry,” the business press notes in reporting that military stocks have reached “all-time highs.” As have the ratings of MSNBC, the cable network that has pushed Russiagate more than any other.


Those unbound by Russiagate’s offerings need not succumb to them. Trump didn’t get to the White House via Russia, but by falsely portraying himself as a populist champion. The only con he will be undone by is his own.

Friday, September 1, 2017

Hurricane Harvey Is A Disaster For OPEC

Authored by Nick Cunningham via OilPrice.com,


The skies are clearing over Houston, but the damage from the remaining elements of Hurricane Harvey has spread east to Port Arthur and Lake Charles along the Texas-Louisiana border. That has knocked more refineries offline, including the largest refinery in the United States.


In the aftermath of the storm, the most serious threat to the energy industry is the extended outage of refineries and pipelines, according to Goldman Sachs. The problem actually looks worse than it did earlier this week as the deluge has shifted towards Port Arthur, another refining hub. Motiva, which runs the U.S.’ largest refinery in Port Arthur, began to completely shut down its 600,000 bpd facility on Wednesday.


Goldman says the refinery shut downs, as of August 30, have spiked to 3.9 million barrels per day (mb/d), although upstream oil production outages have dropped below 1 mb/d. More ports are now closed – in addition to Corpus Christi and Houston, the ports of Lake Charles, Beaumont, and Port Arthur have shut down.


These outages, the investment bank says, will mean that the “ongoing recovery in production will only be partial.” The refinery and pipeline closures are “leaving the oil market long 1.9 mb/d of crude vs. last Thursday, short 1.1 mb/d for gasoline and 0.8 mb/d for distillate.”


More worrying is that the recovery might not be quick. While most refineries had controlled shut downs, there are quite a few, especially in the Port Arthur region, that have been inundated with water, which means that the damage to them is still unknown. Based on the past major hurricanes of Rita and Katrina, Goldman speculates that about 10 percent of the 4 mb/d of refining capacity that has been disrupted will remain offline for several months.


Other analysts agree that the damage could result in lengthier outages than many had hoped. “I"m actually quite concerned about Beaumont-Port Arthur because they just got a huge amount of rain in 24 hours, and we"ve already seen flooding within the refineries themselves, so we don"t know exactly how bad it"s going to be,” Andy Lipow, president of Lipow Oil Associates, told CNBC. “If it is bad, you"re looking at six to eight weeks of outages over in Beaumont-Port Arthur.”


Ultimately, that could mean that upstream oil producers will be unable to return to full production. Damage to pipelines, storage and processing facilities will also inhibit a full recovery. "It will be a while before operations can return to normal and the U.S. refining industry is bracing itself for an extended shutdown," Stephen Brennock of PVM wrote in a research note.


The prospect of lasting damage to the energy industry is sinking in. “Back to normal is months, not weeks, for exports and for the industry and the region. We have to acknowledge that,” Barclays analyst Michael Cohen wrote.


While much of the focus is (rightly) centered on the effect on gasoline supply, the refinery outages could eat into crude oil demand for quite some time. In fact, on balance, Goldman says that the supply outages could be outweighed by the destruction of demand. Houston alone accounts for around 750,000 bpd of oil demand. Goldman Sachs estimates the region will see demand fall by about 0.7 mb/d in the first month after the storm.


That will make “it harder for OPEC to rebalance the market and maintain bullish sentiment," Barclays" analysts said. OPEC has been struggling to drain inventories for almost a year, but without a substantial portion of U.S. refineries online, inland crude oil storage facilities in the U.S. could fill up once again. And the dip in demand could mean OPEC’s time horizon for balancing gets pushed out a bit more into the future, just as the cartel was hinting that it might have to extend its production cuts anyway.


But the problem is more complex because U.S. data will be much “noisier and less useful as a high frequency indicator at the very time OPEC needs it most,” Barclays says. Storage might increase, refinery runs will bounce around, production figures will edge up slowly – in short, the trend lines that the market has become accustomed to will be all out of whack. And because the U.S. offers the most transparent data, closest to real-time as one can get, it has an outsized impact on market psychology. The data will be really messy for weeks to come, which will complicate OPEC’s strategy.

Friday, August 25, 2017

Sears Death Spiral Accelerates: Vendors Halt Shipments As Cost Of Default Insurance Soars

When we commented back in March on the unexpected "going concern" notice in Sears" 10-K which sent the stock crashing, we pointed out the immediate spin provided by Eddie Lampert"s distressed retailer which promised that its comeback plan may help alleviate the concerns, “satisfying our estimated liquidity needs 12 months from the issuance of the financial statements", to which however we added the footnote that "the question is what happens when vendors start demanding cash on delivery as concerns about SHLD."s liquidity concerns continue to grow."



Shortly after, we wrote "Sears Enters Death Spiral: Vendors Halt Shipments, Insurers Bail" in which we described that as Sears financial condition deteriorated, vendors were boosting their "defensive measures", such as reducing shipments and asking for better payment terms, to protect against the risk of nonpayment as the company warned about its finances.





The managing director of a Bangladesh-based textile firm said his company is using only a handful of its production lines to manufacture products for Sears" 2017 holiday sales. Last year, nearly half of the company"s lines in its four factories were producing for Sears. "We have to protect ourselves from the risk of nonpayment," said the managing director, who declined to be identified for fear of disrupting his company"s relationship with Sears.



Furthermore, precisely as we predicted, Mark Cohen, the former CEO of Sears Canada and director of retail studies at Columbia Business School said vendors will keep a close eye on Sears" finances. "Whatever vendors continue to support them are now going to put them on even more of a short string. That means they’ll ship them smaller quantities and demand payment either in advance or immediately upon delivery."



He added: "Sears stores are pathetically badly inventoried today and they will become worse."



Fast forward five month when just after Sears reported another quarter of painfully bad results including an unexpected double-digit drop in same store sales, Reuters writes that the "worst case" scenario we envisioned for Sears is now accelerating, and that Sears is having trouble stocking shelves, "as some vendors have fled while others are demanding stricter payment terms because of difficulties hedging against default risk."


One reason why Sears" supply chain is in greater turmoil than ever - in addition to Sears" woeful financials of course - is due to the scarcity and high cost of a type of vendor insurance known as accounts receivable puts, which ensure a supplier will be paid even if the retailer files for bankruptcy. Think of them as CDS contracts vendors can buy on a counterparty, in this case their (increasingly insolvent) client, and just like CDS, the puts become prohibitively expensive the closer the underlying entity is to bankruptcy.


“It’s too expensive,” Michael Fellner, owner of Montreal-based women’s wear company Lori Michaels Apparel & Manufacturing Inc, told Reuters about the specialized vendor insurance. He also said he stopped shipping to Sears in March, when his insurer stopped providing coverage.





Two other small vendors told Reuters they stopped supplying Sears this year because they could not afford the insurance, whose cost spiked after Sears warned in March of “substantial doubt” over its ability to continue as a going concern. They asked not to be identified discussing confidential commercial arrangements.



Most concerning, however, is the discovery that Eddie Lampert himself appears to be throwing in the towel on the supply chain: as Reuters explains, Sears’ vendors had previously benefited from support from Sears CEO, billionaire Eddie Lampert, who owns almost half of the company’s shares and is also its largest lender.


Through his hedge fund, ESL Investments, Lampert invested in vendor insurance contracts worth $93.3 million in 2012, $234 million in 2013 and $80 million in 2014, according to SEC filings. Lampert"s implicit support of vendors however ended one year ago: filings show no investment by Lampert in vendor insurance contracts since 2015.





A Sears spokesman said the 55-year-old billionaire is not currently investing in these contracts and declined to say why.



In addition to Sears" top stakeholder dropping support, for whatever reason, other hedge funds such as Avenue Capital Group, and traditional credit insurance firms such as Euler Hermes Group, have also exited the insurance market, brokers and investors said. They did not specify the timing of their withdrawal.


Predictably, as the number of market participants in the receivables puts market collapse, the cost of insurance contracts surged as they became harder to come by, putting pressure on Sears’ ability to maintain a robust inventory of goods. As a result, merchandise inventory at Sears fell to $3.4 billion as of July 29 from $4.7 billion a year ago, the company disclosed on Thursday. Sears has attributed the inventory decline to its transformation to an online-oriented business from bricks-and-mortar stores.


“We continue to work to manage our vendor relationships in a constructive manner… we will continue to ensure that our vendors deliver on their obligations to Sears,” Sears said in its second-quarter earnings statement on Thursday. The reality is that it simply does not have as many suppliers as it once did.


Meanwhile, those who can find puts to buy are simply unable to afford them: brokers and investors said that Sears insurance contracts for vendors are currently quoted at more than 4 percent of the value of the vendor’s shipment per month, making them uneconomical for many suppliers whose profit margins are in the single digits. Three years ago, the contracts were being quoted at about 3 percent per month.





LG Electronics Inc, which makes Kenmore-branded washing machines and refrigerators as well as LG-branded appliances, told Reuters it has not bought vendor insurance in the past year because of the cost.



Instead, LG said it negotiated shorter payment schedules to minimize the risk of not being paid by Sears. It declined to say how short the payment period was. The typical payment schedule in the industry is close to 90 days, though it can vary by item.



Of course, the shorter the payment terms, the bigger the hit to Sears" working capital and, thus, liquidity, with the most dire option being cash on delivery in which vendors simply will not provide the much needed inventory unless they are paid on the spot. Here"s Reuters:





Sears has promised to pay some suppliers within 15 days, according to a source familiar with the matter who requested anonymity to discuss confidential commercial arrangements. Sears declined to comment.



A 15-day payment schedule gives a vendor priority for repayment in the event of a bankruptcy. This is because claims received within 20 days of a bankruptcy filing are typically repaid in full.



Some vendors are so keen for this protection, that they have offered Sears a small discount of around 5 percent on their merchandise, the source said.



As noted above, the increasingly shorter terms means a sharp erosion in working capital: William Danner, president of CreditRiskMonitor.com told Reuters that at the end of the second quarter, Sears would likely have used $587 million to boost working capital – mostly from asset sales – due to the decision by some vendors to not extend as much credit. Sears’ available liquidity at the end of July was $810 million.


“Even for a huge company like Sears, finding this much more capital is a burden. This apparent loss of confidence in Sears by its vendors is greater now than it was at the end of 2016,” he said. Should more vendors demand the same payment terms, there is a risk that Sears entire liquidity cushion could disappear.


Eddie Lampert, who has valiantly fought for years to delay Sears" inevitable bankruptcy, has complained on several occasions that vendors are trying to exploit Sears’ woes to negotiate better terms. He said last month that some of its vendors reduced their support, “thereby placing additional pressure” on Sears.





Sears took the issue to court in June, when it sued Ideal Industries Inc after the maker of Craftsman-branded tools declined to fulfill purchase orders because of Sears" "known fragile financial condition," according to court documents. Ideal Industries declined to comment.



And while Lampert may no longer be funding vendor insurance, he is still supporting Sears in more "brute force." He held about $1.7 billion in debt mainly backed by the company"s real estate and inventory as of April 29, according to regulatory filings.  The reason for this shift is that unlike secured debt, vendor insurance contracts are not backed by any collateral. Underscoring his "support", last month, Lampert extended a $200 million 151-day credit line to Sears at an annual interest rate of 9.75 percent.


To be sure, not everyone has thrown in the towel on Sears: at least one investment firm, Blackstone Group LP"s distressed credit arm GSO Capital Partners is backing Sears contracts through December although they did not disclose their value to Reuters.


However, it"s only a matter of time - in this case a few more quarters of declining same store sales - before virtually everyone gives up on Sears, forcing Lampert to decide between directly funding the company"s inventory or finally admitting defeat to the Jeff Bezos juggernaut, and pulling the plug.

Friday, August 18, 2017

"There Are No Good Klansmen" - Democratic Lawmaker Unveils Plan To Impeach Trump

We’re surprised it’s taken this long. As the national outpouring of disgust following President Donald Trump’s response to last weekend’s attack in Charlottesville, Va. continues, at least one Democratic lawmaker is calling for Trump to be removed from office.


Claiming that Trump has failed to provide “moral leadership,” Tennessee Rep. Steve Cohen told the Hill that he plans to introduce articles of impeachment against the president in defiance of the Democratic leadership, who worry that unsuccessful attempts to remove the president will make party look weak.






“Instead of unequivocally condemning hateful actions by neo-Nazis, white nationalists and Klansmen following a national tragedy, the President said "there were very fine people on both sides." There are no good Nazis. There are no good Klansmen,” Cohen said in a statement.”



“President Trump has failed the presidential test of moral leadership.”



However, Cohen will need to wait until next month before doing so because Congress is in recess until September. Assuming this whole controversy hasn’t been forgotten by then, Cohen will become the second Democrat after Rep. Brad Sherman to introduce articles of impeachment. So far, Rep. Al Green (D-Texas) is the only other Democrat to endorse Sherman’s resolution.


After being repeatedly told that Democrats need to offer something to the middle and working class white voters who put Trump in officer, Democratic leaders have imposed a ban on impeachment proceedings, reasoning that they just don’t have the votes to take Trump down. Instead, they are focusing on the mid-terms with a 2018 messaging campaign released last month that doesn’t mention Trump.


However, the party might want to rethink that plan if outrage over Trump reportedly condoning white supremacy continues to snowball.





“But last weekend’s violent marches in Charlottesville have sparked new levels of Democratic outrage against the president, whose initial response was to blame “many sides” for the bloodshed in Virginia; he has now doubled down on that contention. Speaking Tuesday from Trump Tower in New York City, the president condemned the “egregious display of hatred, bigotry and violence” of groups like neo-Nazis, but also accused the counterprotesters — the “alt-left,” by his term — of being “very, very violent” and contributing to the tragic events.



Apparently, support for impeachment is growing among Democrats.





“…Two House lawmakers — Reps. Gwen Moore (D-Wis.) and Jackie Spier (D-Calif.) — have called this week for his removal from office. Speier, in doing so, invoked the 25th Amendment, which outlines Congress’s impeachment powers, but stopped short of announcing plans to introduce her own articles of impeachment.”



Last month, Cohen introduced a resolution of no confidence in Trump. But following Trump’s response to the incident in Charlottesville, Cohen says he is “revolted” by the fact that Trump “couldn’t stand up and “unequivocally condemn Nazis.”





“As a Jew and as an American and as a representative of an African American district, I am revolted by the fact that the President of the United States couldn"t stand up and unequivocally condemn Nazis who want to kill Jews and whose predecessors murdered 6 million Jews during the Holocaust, and could not unequivocally condemn Klansmen whose organization is dedicated to terrorizing African Americans,” Cohen said.



“No moral president would ever shy away from outright condemning hate, intolerance and bigotry.”



Given that Republicans still have a strong majority in the House, any plan submitted by Cohen will probably never see the light of day. Trump is safe. And the all the triggered SJWs can feel like they"ve accomplished something. 
Looks like everybody wins.
 

Thursday, August 10, 2017

Krieger Asks: Is Google A Search Engine Or 'Deep State' Organ?

Authored by Mike Krieger via Liberty Blitzkrieg blog,


Today’s post should be read as Part 3 of my ongoing series about the now infamous Google memo, and what it tells us about where our society is headed if a minority of extremely wealthy and powerful technocratic billionaires are permitted to fully socially engineer our culture to fit their ideological vision using coercion, force and manipulation. For some context, read Part 1 and Part 2.


I struggled with the title of this piece, because ever since the 2016 election, usage of the term “deep state” has become overly associated with Trump cheerleaders. I’m not referring to people who voted for Trump, whom I can both understand and respect, I’m talking about the Trump cultists. Like most people who mindlessly and enthusiastically attach themselves to political figures, they tend to be either morons or opportunists.


Nevertheless, just because the term has been somewhat tainted doesn’t mean I deny the existence of a “deep state” or “shadow government.” The existence of networks of unelected powerful people who formulate and push policy behind the scenes and then get captured members of Congress to vote on it is pretty much undeniable. I don’t believe that the “deep state” is a monolithic entity by any means, but what seems to unite these various people and institutions is an almost religious belief in U.S. imperial dominance, as well as the idea that this empire should be largely governed by an unaccountable oligarchy of billionaires and assorted technocrats. We see the results of this worldview all around us with endless wars, an unconstitutional domestic surveillance state and the destruction of the middle class. These are the fruits of deep state ideology, and a clear reason why it should be dismantled and replaced by genuine governance by the people before they lead the U.S. to total disaster.


From my own personal research and observations, Google has become very much a willing part of this deep state, with Eric Schmidt being the primary driving force that has propelled the company into its contemporary role not just as a search engine monopoly, but also as a powerful and undemocratic tech arm of the shadow government.



One of the best things about all the recent attention on the Google memo, is that it has placed this corporate behemoth and its very clear ideological leanings squarely in the public eye. This gives us the space to shine light on some other aspects of Google, which I believe most people would find quite concerning if made aware of.


To that end, in 2014, Wikileaks published an extremely powerful excerpt from Julian Assange’s book, When Google Met Wikileaks. The post was titled, Google Is Not What It Seems, and it is an incredible repository of information and insight. If you never read it, I suggest you take the time. Below I share some choice excerpts to get you up to speed with what Google is really up to.


Let’s start with the intro to the piece, which sets the stage…





Eric Schmidt is an influential figure, even among the parade of powerful characters with whom I have had to cross paths since I founded WikiLeaks. In mid-May 2011 I was under house arrest in rural Norfolk, about three hours’ drive northeast of London. The crackdown against our work was in full swing and every wasted moment seemed like an eternity. It was hard to get my attention. But when my colleague Joseph Farrell told me the executive chairman of Google wanted to make an appointment with me, I was listening.



In some ways the higher echelons of Google seemed more distant and obscure to me than the halls of Washington. We had been locking horns with senior US officials for years by that point. The mystique had worn off. But the power centers growing up in Silicon Valley were still opaque and I was suddenly conscious of an opportunity to understand and influence what was becoming the most influential company on earth. Schmidt had taken over as CEO of Google in 2001 and built it into an empire.



I was intrigued that the mountain would come to Muhammad. But it was not until well after Schmidt and his companions had been and gone that I came to understand who had really visited me.



The stated reason for the visit was a book. Schmidt was penning a treatise with Jared Cohen, the director of Google Ideas, an outfit that describes itself as Google’s in-house “think/do tank.” I knew little else about Cohen at the time. In fact, Cohen had moved to Google from the US State Department in 2010. He had been a fast-talking “Generation Y” ideas man at State under two US administrations, a courtier from the world of policy think tanks and institutes, poached in his early twenties. He became a senior advisor for Secretaries of State Rice and Clinton. At State, on the Policy Planning Staff, Cohen was soon christened “Condi’s party-starter,” channeling buzzwords from Silicon Valley into US policy circles and producing delightful rhetorical concoctions such as “Public Diplomacy 2.0.”On his Council on Foreign Relations adjunct staff page he listed his expertise as “terrorism; radicalization; impact of connection technologies on 21st century statecraft; Iran.”



Now I’m going to skip ahead in the piece to the moment where Assange describes his attempt to make contact with the U.S. State Department in 2011 regarding cables Wikileaks was releasing.





It was at this point that I realized Eric Schmidt might not have been an emissary of Google alone. Whether officially or not, he had been keeping some company that placed him very close to Washington, DC, including a well-documented relationship with President Obama. Not only had Hillary Clinton’s people known that Eric Schmidt’s partner had visited me, but they had also elected to use her as a back channel. While WikiLeaks had been deeply involved in publishing the inner archive of the US State Department, the US State Department had, in effect, snuck into the WikiLeaks command center and hit me up for a free lunch. Two years later, in the wake of his early 2013 visits to China, North Korea, and Burma, it would come to be appreciated that the chairman of Google might be conducting, in one way or another, “back-channel diplomacy” for Washington. But at the time it was a novel thought.



I put it aside until February 2012, when WikiLeaks—along with over thirty of our international media partners—began publishing the Global Intelligence Files: the internal email spool from the Texas-based private intelligence firm Stratfor. One of our stronger investigative partners—the Beirut-based newspaper Al Akhbar—scoured the emails for intelligence on Jared Cohen.The people at Stratfor, who liked to think of themselves as a sort of corporate CIA, were acutely conscious of other ventures that they perceived as making inroads into their sector. Google had turned up on their radar. In a series of colorful emails they discussed a pattern of activity conducted by Cohen under the Google Ideas aegis, suggesting what the “do” in “think/do tank” actually means.



Cohen’s directorate appeared to cross over from public relations and “corporate responsibility” work into active corporate intervention in foreign affairs at a level that is normally reserved for states. Jared Cohen could be wryly named Google’s “director of regime change.” According to the emails, he was trying to plant his fingerprints on some of the major historical events in the contemporary Middle East. He could be placed in Egypt during the revolution, meeting with Wael Ghonim, the Google employee whose arrest and imprisonment hours later would make him a PR-friendly symbol of the uprising in the Western press. Meetings had been planned in Palestine and Turkey, both of which—claimed Stratfor emails—were killed by the senior Google leadership as too risky. Only a few months before he met with me, Cohen was planning a trip to the edge of Iran in Azerbaijan to “engage the Iranian communities closer to the border,” as part of Google Ideas’ project on “repressive societies.” In internal emails Stratfor’s vice president for intelligence, Fred Burton (himself a former State Department security official), wrote:



Google is getting WH [White House] and State Dept support and air cover. In reality they are doing things the CIA cannot do . . . [Cohen] is going to get himself kidnapped or killed. Might be the best thing to happen to expose Google’s covert role in foaming up-risings, to be blunt. The US Gov’t can then disavow knowledge and Google is left holding the shit-bag.



In further internal communication, Burton said his sources on Cohen’s activities were Marty Lev—Google’s director of security and safety—and Eric Schmidt himself. Looking for something more concrete, I began to search in WikiLeaks’ archive for information on Cohen. State Department cables released as part of Cablegate reveal that Cohen had been in Afghanistan in 2009, trying to convince the four major Afghan mobile phone companies to move their antennas onto US military bases. In Lebanon he quietly worked to establish an intellectual and clerical rival to Hezbollah, the “Higher Shia League.” And in London he offered Bollywood movie executives funds to insert anti-extremist content into their films, and promised to connect them to related networks in Hollywood.



Three days after he visited me at Ellingham Hall, Jared Cohen flew to Ireland to direct the “Save Summit,” an event cosponsored by Google Ideas and the Council on Foreign Relations. Gathering former inner-city gang members, right-wing militants, violent nationalists, and “religious extremists” from all over the world together in one place, the event aimed to workshop technological solutions to the problem of “violent extremism.” What could go wrong?



Cohen’s world seems to be one event like this after another: endless soirees for the cross-fertilization of influence between elites and their vassals, under the pious rubric of “civil society.” The received wisdom in advanced capitalist societies is that there still exists an organic “civil society sector” in which institutions form autonomously and come together to manifest the interests and will of citizens. The fable has it that the boundaries of this sector are respected by actors from government and the “private sector,” leaving a safe space for NGOs and nonprofits to advocate for things like human rights, free speech, and accountable government.



This sounds like a great idea. But if it was ever true, it has not been for decades. Since at least the 1970s, authentic actors like unions and churches have folded under a sustained assault by free-market statism, transforming “civil society” into a buyer’s market for political factions and corporate interests looking to exert influence at arm’s length. The last forty years has seen a huge proliferation of think tanks and political NGOs whose purpose, beneath all the verbiage, is to execute political agendas by proxy.



It is not just obvious neocon front groups like Foreign Policy Initiative. It also includes fatuous Western NGOs like Freedom House, where naïve but well-meaning career nonprofit workers are twisted in knots by political funding streams, denouncing non-Western human rights violations while keeping local abuses firmly in their blind spots. The civil society conference circuit—which flies developing-world activists across the globe hundreds of times a year to bless the unholy union between “government and private stakeholders” at geopoliticized events like the “Stockholm Internet Forum”—simply could not exist if it were not blasted with millions of dollars in political funding annually.



In 2011, the Alliance of Youth Movements rebranded as “Movements.org.” In 2012 Movements.org became a division of “Advancing Human Rights,” a new NGO set up by Robert L. Bernstein after he resigned from Human Rights Watch (which he had originally founded) because he felt it should not cover Israeli and US human rights abuses. Advancing Human Rights aims to right Human Rights Watch’s wrong by focusing exclusively on “dictatorships.” Cohen stated that the merger of his Movements.org outfit with Advancing Human Rights was “irresistible,” pointing to the latter’s “phenomenal network of cyberactivists in the Middle East and North Africa.” He then joined the Advancing Human Rights board, which also includes Richard Kemp, the former commander of British forces in occupied Afghanistan. In its present guise, Movements.org continues to receive funding from Gen Next, as well as from Google, MSNBC, and PR giant Edelman, which represents General Electric, Boeing, and Shell, among others.



Google Ideas is bigger, but it follows the same game plan. Glance down the speaker lists of its annual invite-only get-togethers, such as “Crisis in a Connected World” in October 2013. Social network theorists and activists give the event a veneer of authenticity, but in truth it boasts a toxic piñata of attendees: US officials, telecom magnates, security consultants, finance capitalists, and foreign-policy tech vultures like Alec Ross (Cohen’s twin at the State Department). At the hard core are the arms contractors and career military: active US Cyber Command chieftains, and even the admiral responsible for all US military operations in Latin America from 2006 to 2009. Tying up the package are Jared Cohen and the chairman of Google, Eric Schmidt.



Now here’s a little background on Schmidt.





Eric Schmidt was born in Washington, DC, where his father had worked as a professor and economist for the Nixon Treasury. He attended high school in Arlington, Virginia, before graduating with a degree in engineering from Princeton. In 1979 Schmidt headed out West to Berkeley, where he received his PhD before joining Stanford/Berkley spin-off Sun Microsystems in 1983. By the time he left Sun, sixteen years later, he had become part of its executive leadership.



Sun had significant contracts with the US government, but it was not until he was in Utah as CEO of Novell that records show Schmidt strategically engaging Washington’s overt political class. Federal campaign finance records show that on January 6, 1999, Schmidt donated two lots of $1,000 to the Republican senator for Utah, Orrin Hatch. On the same day Schmidt’s wife, Wendy, is also listed giving two lots of $1,000 to Senator Hatch. By the start of 2001 over a dozen other politicians and PACs, including Al Gore, George W. Bush, Dianne Feinstein, and Hillary Clinton, were on the Schmidts’ payroll, in one case for $100,000. By 2013, Eric Schmidt—who had become publicly over-associated with the Obama White House—was more politic. Eight Republicans and eight Democrats were directly funded, as were two PACs. That April, $32,300 went to the National Republican Senatorial Committee. A month later the same amount, $32,300, headed off to the Democratic Senatorial Campaign Committee. Why Schmidt was donating exactly the same amount of money to both parties is a $64,600 question.





Schmidt’s involvement in the New America Foundation places him firmly in the Washington establishment nexus. The foundation’s other board members, seven of whom also list themselves as members of the Council on Foreign Relations, include Francis Fukuyama, one of the intellectual fathers of the neoconservative movement; Rita Hauser, who served on the President’s Intelligence Advisory Board under both Bush and Obama; Jonathan Soros, the son of George Soros; Walter Russell Mead, a US security strategist and editor of the American Interest; Helene Gayle, who sits on the boards of Coca-Cola, Colgate-Palmolive, the Rockefeller Foundation, the State Department’s Foreign Affairs Policy Unit, the Council on Foreign Relations, the Center for Strategic and International Studies, the White House Fellows program, and Bono’s ONE Campaign; and Daniel Yergin, oil geostrategist, former chair of the US Department of Energy’s Task Force on Strategic Energy Research, and author of The Prize: The Epic Quest for Oil, Money and Power.



The chief executive of the foundation, appointed in 2013, is Jared Cohen’s former boss at the State Department’s Policy Planning Staff, Anne-Marie Slaughter, a Princeton law and international relations wonk with an eye for revolving doors. She is everywhere at the time of writing, issuing calls for Obama to respond to the Ukraine crisis not only by deploying covert US forces into the country but also by dropping bombs on Syria—on the basis that this will send a message to Russia and China.



 








In 2003 the US National Security Agency (NSA) had already started systematically violating the Foreign Intelligence Surveillance Act (FISA) under its director General Michael Hayden. These were the days of the “Total Information Awareness” program. Before PRISM was ever dreamed of, under orders from the Bush White House the NSA was already aiming to “collect it all, sniff it all, know it all, process it all, exploit it all.” During the same period, Google—whose publicly declared corporate mission is to collect and “organize the world’s information and make it universally accessible and useful”was accepting NSA money to the tune of $2 million to provide the agency with search tools for its rapidly accreting hoard of stolen knowledge.



In 2004, after taking over Keyhole, a mapping tech startup cofunded by the National Geospatial-Intelligence Agency (NGA) and the CIA, Google developed the technology into Google Maps, an enterprise version of which it has since shopped to the Pentagon and associated federal and state agencies on multimillion-dollar contracts. In 2008, Google helped launch an NGA spy satellite, the GeoEye-1, into space. Google shares the photographs from the satellite with the US military and intelligence communities.





In 2012, Google arrived on the list of top-spending Washington, DC, lobbyists—a list typically stalked exclusively by the US Chamber of Commerce, military contractors, and the petrocarbon leviathans. Google entered the rankings above military aerospace giant Lockheed Martin, with a total of $18.2 million spent in 2012 to Lockheed’s $15.3 million. Boeing, the military contractor that absorbed McDonnell Douglas in 1997, also came below Google, at $15.6 million spent, as did Northrop Grumman at $17.5 million.



If anything has changed since those words were written, it is that Silicon Valley has grown restless with that passive role, aspiring instead to adorn the “hidden fist” like a velvet glove. Writing in 2013, Schmidt and Cohen stated, 



What Lockheed Martin was to the twentieth century, technology and cyber-security companies will be to the twenty-first.



This was one of many bold assertions made by Schmidt and Cohen in their book, which was eventually published in April 2013. Gone was the working title, “The Empire of the Mind”, replaced with “The New Digital Age: Reshaping the Future of People, Nations and Business”. By the time it came out, I had formally sought and received political asylum from the government of Ecuador, and taken refuge in its embassy in London. At that point I had already spent nearly a year in the embassy under police surveillance, blocked from safe passage out of the UK. Online I noticed the press hum excitedly about Schmidt and Cohen’s book, giddily ignoring the explicit digital imperialism of the title and the conspicuous string of pre-publication endorsements from famous warmongers like Tony Blair, Henry Kissinger, Bill Hayden and Madeleine Albright on the back.



Billed as a visionary forecast of global technological change, the book failed to deliver—failed even to imagine a future, good or bad, substantially different to the present. The book was a simplistic fusion of Fukuyama “end of history” ideology—out of vogue since the 1990s—and faster mobile phones. It was padded out with DC shibboleths, State Department orthodoxies, and fawning grabs from Henry Kissinger. The scholarship was poor—even degenerate. It did not seem to fit the profile of Schmidt, that sharp, quiet man in my living room. But reading on I began to see that the book was not a serious attempt at future history. It was a love song from Google to official Washington. Google, a burgeoning digital superstate, was offering to be Washington’s geopolitical visionary.



One way of looking at it is that it’s just business. For an American internet services monopoly to ensure global market dominance it cannot simply keep doing what it is doing, and let politics take care of itself. American strategic and economic hegemony becomes a vital pillar of its market dominance. What’s a megacorp to do? If it wants to straddle the world, it must become part of the original “don’t be evil” empire.



Whether it is being just a company or “more than just a company,” Google’s geopolitical aspirations are firmly enmeshed within the foreign-policy agenda of the world’s largest superpower. As Google’s search and internet service monopoly grows, and as it enlarges its industrial surveillance cone to cover the majority of the world’s population, rapidly dominating the mobile phone market and racing to extend internet access in the global south, Google is steadily becoming the internet for many people. Its influence on the choices and behavior of the totality of individual human beings translates to real power to influence the course of history. 


If the future of the internet is to be Google, that should be of serious concern to people all over the world—in Latin America, East and Southeast Asia, the Indian subcontinent, the Middle East, sub-Saharan Africa, the former Soviet Union, and even in Europe—for whom the internet embodies the promise of an alternative to US cultural, economic, and strategic hegemony.



I first became really interested in this side of Google back in 2013, when I read the entire transcript of the Schmidt interview of Assange. For more on the topic, see the post I published at the time: Highlights from the Incredible 2011 Interview of Wikileaks’ Julian Assange by Google’s Eric Schmidt.


Finally, I think the perfect way to end this piece is with the following tweet: