Did you know that Facebook was extracting biometric data from your images? That be because they never asked your permission. Which is why Texas Attorney General Ken Paxton just extracted a $1.4 billion settlement from them.
Texas Attorney General Ken Paxton announced the largest settlement ever obtained by a single state after he alleged that Meta, the parent company of Facebook, collected Texans’ biometric identifiers without their consent.
The $1.4 billion settlement announced Tuesday stemmed from the first lawsuit ever brought under the Texas Capture or Use of Biometric Identifier Act, which prohibits the capturing of an individual’s biometric identification such as retina, fingerprints, or hand geometry for a commercial purpose unless the the individual is informed and provides consent prior to capture.
“After vigorously pursuing justice for our citizens whose privacy rights were violated by Meta’s use of facial recognition software, I’m proud to announce that we have reached the largest settlement ever obtained from an action brought by a single State,” said Paxton.
“This historic settlement demonstrates our commitment to standing up to the world’s biggest technology companies and holding them accountable for breaking the law and violating Texans’ privacy rights. Any abuse of Texans’ sensitive data will be met with the full force of the law.”
In a statement to The Texan, Meta said, “We are pleased to resolve this matter, and look forward to exploring future opportunities to deepen our business investments in Texas, including potentially developing data centers.”
The Meta spokesperson also noted that there is no admission of wrongdoing in the settlement agreement.
Paxton sued Meta in 2022 alleging that “Facebook engaged in false, misleading, and deceptive acts and practices in violation of the Texas Deceptive Trade Practices-Consumer Protection Act.”
Moreover, the lawsuit explains that Facebook has “built an Artificial Intelligence empire on the backs of Texans by deceiving them while capturing their most intimate data, thereby putting their well-being, safety, and security at risk.”
In 2011, Facebook introduced “Tag Suggestions,” a facial recognition feature that automatically tagged people in uploaded photos without informing Texans how it worked. The “tag” feature captured “the facial geometry of the people depicted” and led to Paxton alleging this action violated Texas law, thus leading to the state suing Meta for capturing facial data without consent and the $1.4 billion settlement.
Illegally stealing information to train AI seems to be a habit with Meta, which is why they’re being sued for using pirated books to train their AI.
$1.4 billion is a lot of cheddar, even to Meta. But will it change their ways about feeding every possible scrap of information to train an AI engine deep in the bowels of some giant data center? Probably not. Just about every software tech giant has decided that AI is The Next Big Thing, and seem to be pouring more money and resources into it rather than their ostensible “core” businesses.
Of course, Facebook’s core business is selling your data to other companies, so nothing new there. And AI is probably less of a money-losing boondoggle than their crappy Metaverse VR project, which they’ve lost (at least) $21 billion on despite nobody using the damn thing.
Knowing Facebook, this time next year we’ll probably be complaining about some completely different nefarious, illegal activity they’ll be undertaking…
I hope you survived Independence Day will all your digits intact! Slow Joe’s poll numbers plumb new depths, everyone knows the media is complicit in hiding his mental decline, Israel settles all family business, Rishi’s snap election is a debacle for the Tories, Wall Street looks to get the hell out of the Rotten Apple, and California legalizing weed was a big win…for illegal weed. It’s the Friday LinkSwarm!
Voters that say Biden has the mental health to be President: It was only 35% pre-debate, look where it’s dropped to now post-debate, 27%.
How ’bout that he should be running for President? It’s 37% pre-debate, it’s now 28%…
I have never seen numbers this bad for an incumbent president during my lifetime … These numbers looked NOTHING like this in 2020. These numbers were bad already … they have gotten considerably worse even in just a few days after that first presidential debate.
How bad is Biden doing? This should come with the standard Instapundit “don’t get cocky” disclaimer, as well as a disclaimer that I haven’t examined this guy’s methodology and model at all, but even if the margins are half what he’s saying, it’s still really, really bad for Biden.
As in “Biden is winning Illinois…by three points” bad. New York is within striking distance for Trump. And right now he’s even edging Biden in New Jersey. (Hat tip: Ace of Spades HQ.)
Biden says that no one is pushing him out of the race, though even Lightbringer McLegTingle himself has reportedly joined the chorus of concern over Slow Joe’s debate meltdown.
According to ‘several people familiar with his remarks,’ and perhaps most notably conveyed via the Washington Post, not only has Obama grown more concerned following the debate (and having to physically guide the 81-year-old off of a stage last month), the former president “has long harbored worries about his party defeating Donald Trump in November, repeatedly warning Biden in recent months about how challenging it will be to win reelection.”
Not only that, “Just before the debate, Obama conveyed to allies his concerns about the state of the race.”
So Obama gets to save face, while adding to the growing chorus of Democrats who have expressed everything from quiet panic to public hints, to outright calls for Biden to drop out of the race.
Usual “sources close to” caveats apply.
The mainstream media is shocked, shocked that Democrats lied about Biden’s cognitive decline as they actively aided and abetted them.
If you’re looking for a broader takeaway from all this, take how the press covered up Biden’s infirmity because it wanted to protect the Democrats, and apply it to literally every single thing that it does, on any topic, in any year, in any circumstance, forever.
— Charles C. W. Cooke (@charlescwcooke) July 3, 2024
They all knew:
Now that all the liberal journalists are claiming they didn't try to cover up Biden's deteriorating mental condition, here's a supercut of them claiming any and all damaging videos of Biden are fake and/or deceptively edited. pic.twitter.com/XI5zeTGih5
— Nicholas Fondacaro (@NickFondacaro) July 3, 2024
Democrats decided to shut Joe Biden down for a week. Not because they wanted to, but because they figured they had to. It was the only chance Biden had — thin as it turned out to be — to get through a 90-minute session in which he’d be asked questions he couldn’t answer with note cards, in which he’d be challenged vigorously and need to be quick on his shuffling feet.
Here’s the thing, though. What we saw on Thursday night was the result of that week of preparation and rest. And it was a disaster. So . . . what must the prep have been like?
Biden’s closest aides and the top Democrats with whom they are in constant communication know better than anyone in America that the president cannot function, that he cannot do the job. Yet, rather than ease Biden out, invoke the 25th Amendment if he wouldn’t go voluntarily, and ensconce in the Oval Office the vice president they insisted in 2020 would be ready to take over if the octogenarian collapsed, they decided they had to try to drag Biden across the finish line.
Why?
Because the Democratic Party is a trainwreck.
As catastrophic as Biden is in his senescence, he remains useful cover for the fact that the youth, energy, and money in the Democratic Party is woke-leftist, Islamist, counter-constitutionalist, post-American, and unelectable.
This doesn’t mean the whole Democratic Party is that way. But it does mean that sensible Democrats have to mind their tongues and genuflect in the crazies’ direction if they want to remain viable. They may personally believe, like the majority of Americans believe, that the border needs to be secure; that we can’t allow millions of illegal aliens a year to enter the country; that we don’t want boys and men invading the formerly safe spaces of girls and women; that mere statistical racial disparities in outcomes do not establish racism; that crime — especially recidivist crime — is a serious problem; that we need to back Israel’s wars against Hamas, Hezbollah, and their Iranian patrons; that a radical “green energy” transition the country is not ready for weighs too heavily on the budgets of everyday Americans even as it drives the national economy deeper into the ditch; and that America, warts and all, is fundamentally good — rightly, the envy of the world. But woe betide the Democrat who gives voice to such commonsense views.
Democrats have thus rolled the dice with Biden, and with the nation’s security, because the alternative is dealing with that rift.
Joe Biden is a lifelong mediocrity. But he has the fortuity of being both a Democrat from another era and Obama’s vice president. Because he’s a doddering blank slate, Democrats of all camps could project onto him their kind of Democrat. He could run in 2020 as the guy who could face down the radicals, and then govern under the thumb of the radicals — but with enough rhetorical feints to the old establishment Dems that they might yet rally around him . . . especially with no alternatives except the hard left and Donald Trump.
Why Joe Biden? Because Democrats want to stay in power and propping him up, as impossible as that has now become, seemed to be the best plan. Sadly, it may yet be.
Unemployment is at a three year high. And those are just the official figures. The truth is probably far worse.
Rigging the 2020 election through Zuckerbucks. “(a) tax-exempt non-profits are prohibited by federal law from engaging in partisan political activity, and (b) the Zuckerberg-funded ‘cabal’ had no other purpose except to guarantee Biden’s election.” And it did this through get-out-the-vote efforts exclusively in heavily Democratic precincts.
If you look at the Livemap, Israel also seems to have stormed various towns in the West Bank this week.
Israel may be in a “settle all family business” sort of mood…
“National Education Association members will vote on several anti-Israel resolutions at the union’s annual ‘Representative Assembly’ in Philadelphia this week, including the adoption of an official position holding that Israel is conducting a ‘genocide’ in Gaza and that opposing the Jewish state’s existence is not antisemitic.” I’m sure they’d rather focus on Gaza than undertake radical courses of action like teaching kids to read.
Six years after California legalized marijuana, the bodies keep piling up. Earlier this year, six men were murdered in the Mojave Desert. Four of the men had been burned after being shot with rifles. In 2020, seven people were killed at an illegal pot operation in Riverside County.
Violence like this was supposed to disappear after legalization. Legalization advocates argued that making the drug trade legal would end the grip of the cartels. Instead, the legal market has failed, and the cartels are taking over sizable parts of California and the rest of the country.
California’s legal drug revenues have fallen consistently, as have those in other legal drug states including Colorado, whose model helped sell the idea that drug money would fix everything.
Despite falling revenues, Colorado legislators brag about $282 million in drug revenue. That number may sound high, but it’s a drop in the bucket considering the money that the state and cities like Denver are spending on homelessness, drug overdoses and law enforcement.
While the legal drug business is also collapsing in California, the state is spending a fortune fighting marijuana even as it tries to tax it. Gov. Gavin Newsom paradoxically promised to close the budget deficit with $100 million in drug revenue, meant to be used to fund law enforcement and fight substance abuse. The state seized over $300 million in illegal pot this year and uses satellite imagery and heavily-armed raids to fight untaxed marijuana.
But despite all those efforts, illegal marijuana has won and legal marijuana has lost.
The Los Angeles Times warned two years ago:
“Proposition 64, California’s 2016 landmark cannabis initiative, sold voters on the promise a legal market would cripple the drug’s outlaw trade, with its associated violence and environmental wreckage.
“Instead, a Los Angeles Times investigation finds, the law triggered a surge in illegal cannabis on a scale California has never before witnessed.
“Rogue cultivation centers like Mount Shasta Vista now engulf rural communities scattered across the state, as far afield as the Mojave Desert, the steep mountains on the North Coast, and the high desert and timberlands of the Sierra Nevada.
“Residents in these places describe living in fear next to heavily armed camps…”
Some of the growers are private citizens, but they aren’t likely to remain in business for long.
Cartels and gang members dominate the business. And open borders allowed them to bring massive numbers of laborers to boost their ranks. Not only California, but places as far afield as Maine that have large open areas and limited law enforcement resources, have been overrun by drug operations that more closely resemble parts of Latin America and Asia than the USA.
The coasts, from Southern California up to Oregon, are controlled by Mexican cartels which have expanded so much that they’re running short of workers even during the Biden open borders boom. Some have taken to brazenly advertising for illegal workers in Europe.
A local California DA described “Mexican cartel groups coming up to grow pot, and people from Bulgaria, France and Russia.” The vast exodus across the border has made it possible for cartels to freely bring in any workers they want, even as drug legalization and open borders effectively ended any real penalties for either illegal migration or marijuana.
Asian organized crime may be less on the radar, but it is no less ruthless or violent.
A few years ago, four Chinese people were murdered at an Oklahoma illegal pot farm. Chinese organized crime had “taken over marijuana in Oklahoma and the United States,” the head of the Oklahoma Bureau of Narcotics and Dangerous Drugs revealed.
Once again, “the mafias set their sights on Oklahoma when the state’s voters approved a ballot measure that legalized the cultivation and sale of marijuana for medicinal purposes.” Now the Triads run their own compounds “ringed by fences, surveillance cameras and guards with guns and machetes” with 3,000 illegal grows having a value estimated at as high as $44 billion a year.
The Triads are not just in the illegal marijuana business, they traffic in everything from heroin to fentanyl. Legalizing marijuana, however, provided them with a profitable and semi-legal market that gives them a base to expand their efforts trafficking in even more lethal drugs.
Drug legalization has failed on every level. The legal drug business is collapsing. MedMen, which once promised to be the Apple of weed, fell from a $3 billion valuation to a bankruptcy with $411 million in liabilities. Despite the green crosses and online apps, 80% of Californian’s pot is still the old-fashioned illegal kind. Politicians may be boasting about hundreds of millions in revenue, but the cartels are making tens of billions and they’re taking over entire forests.
The future isn’t pot shops, weed apps or MedMen: it’s Mexican and Chinese organized crime compounds that are spreading across the West and parts of New England like a plague.
Also in California, State Farm is jacking home owners insurance into the stratosphere.
State Farm requested massive increases to its California residential insurance rates, which calls its financial stability into doubt amid an ongoing crisis in the state’s insurance market.
The company’s California subsidiary, State Farm General, the state’s largest writer of homeowners insurance, according to the Insurance Information Institute, submitted a request on Thursday to the California Department of Insurance for the following rate hikes:
30% increase in homeowners insurance
336% increase in condominium owners insurance
352% increase in renters insurance
With California’s property insurance market already facing an availability and affordability crisis, driven largely by rising wildfire risk, the timing could hardly be worse.
Gee, maybe you shouldn’t have legalized shoplifting in the name of “social justice.”
The Supreme Court of the United States (SCOTUS) has ruled unanimously in a case involving a 2021 Texas social media transparency law, sending it back to the U.S. 5th Circuit Court of Appeals.
House Bill (HB) 20, which requires major social media platforms to be more transparent and prohibit viewpoint-based censorship, passed in the 87th Legislature. It faced an immediate legal challenge, resulting in a temporary block by a federal district court. This decision was appealed to the 5th Circuit, which temporarily lifted the block, allowing the law to take effect.
Justice Elena Kagan delivered the opinion for SCOTUS, writing, “Texas has never been shy, and always been consistent, about its interest: The objective is to correct the mix of viewpoints that major platforms present. But a State may not interfere with private actors’ speech to advance its own vision of ideological balance.”
So the Supreme Court will not save Americans from big tech companies teaming up with secret government entities to impose censorship on their platforms. Americans will have to do that for themselves.
The Tories got slaughtered in Rishi Sunak’s spectacularly ill-advised snap election, handing Labour, which seemed on life-support just a few years earlier, a 170 seat majority. “Labour got 3 times as many seats, but did not win – the Conservatives lost, and lost badly, punished by the electorate. Reform were the real winners – although they only got 4 seats.” Sir Keir Rodney Starmer KCB KC will now become Prime Minister, Sunak is going to go down as one of the Tories worst leaders, and Nigel Farage will finally sit in parliament. Will Labour take this as a greenlight to go full speed ahead on unlimited immigration and hard green NetZero? I wouldn’t put it past them.
Belarus does more sabre rattling on the Ukraine border. I suspect this is just a feint to tie up Ukrainian units on the border, as Putin puppet Aleksander Lukashenko might face a real revolt from his military if he tried to send units into Ukraine.
Remember all that panic over investors buying up housing? Thanks to the Biden Recession, they’re now unloading them at firesale prices. “It’s impossible to make money on mortgage properties with interest rates where they are today.” Well, unless they took out fixed rate mortgages, which real estate companies are evidently loath to do. “Inventory [in this Florida zip code] has gone up 800 to 900%.”
So I thought about doing a post on this Chinese-constructed, Malaysia-based, eco-themed Forest City ghost city just outside Singapore, with the obvious “post apocalyptic” slant, but one thing stopped me: It actually looks kinda cool and well-maintained, and if the usual shoddy tofu dregs building processes have been used, they’re not apparent in this brief tour. Everything looks classy and expensive. And for once, you can’t entirely blame the CCP for the debacle, since the Malaysian government evidently changed foreign ownership rules after most of it had been constructed.
This is a weird story: “Walter Ringfield Jr., the 27-year-old Phoenix resident charged with stealing keys to voting equipment from Maricopa County elections headquarters, has a history of theft allegations – and an apparent interest in running for public office.” He stole keys to a tabulating machine that couldn’t be used without access to other keys he didn’t have for a job he was temping at. Could be a another Democratic attempt at election fraud, or the guy just might be a klepto.
Michigan lawmakers want to make the AR-15 the official state gun. Nice. Texas already has a state gun, the Colt Walker pistol, which is pretty important historically. Tennessee’s official state gun is the Barrett M82, which I think wins the firepower crown, until someone names the Ma Deuce the offical state gun…
Attorney General Ken Paxton announced today the launch of a new major initiative to protect citizens’ sensitive data from unauthorized exploitation by tech companies and artificial intelligence.
The initiative was launched under the umbrella of the Attorney General Office Consumer Protection Division and established a team for “aggressive enforcement” of state privacy laws. It will also “ensure companies respect Texans’ privacy rights and safeguard their personal data.”
According to a press release from Paxton’s office, the data protection team is set to be one of the largest privacy law enforcement teams in the entire United States.
“Any entity abusing or exploiting Texans’ sensitive data will be met with the full force of the law,” said Paxton. “Companies that collect and sell data in an unauthorized manner, harm consumers financially, or use artificial intelligence irresponsibly present risks to our citizens that we take very seriously.
“As many companies seek more and more ways to exploit data they collect about consumers, I am doubling down to protect privacy rights,” he continued. “With companies able to collect, aggregate, and use sensitive data on an unprecedented scale, we are strengthening our enforcement of privacy laws to protect our citizens.”
Specifically, the new team will focus on enforcing the Data Privacy and Security Act, the Identify Theft Enforcement and Protection Act, the Data Broker Law, the Biometric Identifier Act, the Deceptive Trade Practices Act, and federal laws such as the Children’s Online Privacy Protection Act and the Health Insurance Portability and Accountability Act.
“Texas has been a national leader in advancing conservative technology policy, and this initiative is the perfect complement to legislative wins in recent sessions as it will ensure Texas has the expertise and firepower to enforce laws that protect consumers and hold Big Tech accountable,” said David Dunmoyer—the Texas Public Policy Foundation Better Tech for Tomorrow campaign director.
“Big Tech companies have gleefully flouted laws like the Children’s Online Privacy Protection Act for years, and in the absence of meaningful federal action, this initiative demonstrates Texas’ willingness to once again step into the breach and fight on behalf of Texans,” he continued. “This initiative will only further cement Texas’ national leadership in this space.”
This is the latest development in Texas’ efforts to crack down on data privacy infringement. In mid-summer of last year, Gov. Greg Abbott signed the Texas Data Privacy & Security Act into law.
The law applies to primarily businesses and entities who conduct business in the state of Texas or produce a product consumed by Texans, process or engage with the sale of personal data, and who are not considered “small businesses” unless the business has its hand in transactions of personal data.
That enforcement effort sounds both needed and deserved, but the question is how you enforce those laws when they cows have not only left the barn, but have been sucked down and sliced up into thousands of vast international data farms far beyond the regulatory reach of the state of Texas.
Big data lives and breathes on personal data that you’ve agreed to give up in variegated clauses scattered throughout the sprawling text swamps of terms and conditions for online sites you use for free.
Have a Facebook account? Congratulations! Every bit of information you’ve shared with Facebook (your friends network, your interests, the sports teams you follow, the foods you favor, etc.) is now available to every partner of Facebook. And everyone partners with Facebook. If they have your email address or your phone number, they have your data.
Ditto Google, with the additional proviso that Google has sucked up and cataloged pretty much every public database in the world, plus every single search query you’ve launched, ever, and every web page you’ve ever viewed through Chrome.
Ditto Microsoft, for LinkedIn (yes, Microsoft bought LinkedIn), Windows, Explorer, Edge, Bing, etc.
Ditto Twitter for everything you’ve ever tweeted or liked there.
Ditto Sony, whose PlayStation Network data got hacked.
Ditto Apple, though they seem to have better privacy protection provisions than most, mainly because they make their money off hardware. This doesn’t make them the good guys, just the least bad buys.
And don’t forget state, location and federal government entities, whose data security is probably several orders of magnitude worse than the tech giants.
Given that there’s so much personal data out there, so much legally acquired, how do you go about putting the genie back in the bottle? It’s a near impossible task, given that the tech giants not only hire armies of lawyers to defend themselves from lawsuits, but also lobbyists to write laws protecting them from said lawsuits.
One place to start: Joining in a lawsuit where Facebook’s parent company Meta actually used stolen data to train AI, namely using a giant database of pirated books without paying authors. Paxton’s office could join one of the lawsuits against Meta, or file a new one on behalf of Texas authors whose work was used without compensation.
Catching a tech giant with their pants down while actually breaking the law may give Paxton leverage to address other privacy concerns, and possibly the chance to do some eye-opening discovery…
At the request of CEO Mark Zuckerberg, Facebook officials developed a program called In-App Action Panel (IAAP) that they deployed in 2016 and which was in use through mid-2019, according to the documents, which include internal emails.
The program utilized cyberattacks to intercept information from Snapchat, YouTube, and Amazon. The program then decrypted the information.
“Facebook’s IAAP Program used nation-state-level hacking technology developed by the company’s Onavo team, in which Facebook paid contractors (including teens) to designate Facebook a trusted ‘root’ certificate authority on their mobile devices, then generated fake digital certificates to redirect secure Snapchat analytics traffic (and later, analytics from YouTube and Amazon) from Snapchat’s servers to Onavo’s; decrypted these analytics and used them for competitive gain, including to inform Facebook’s product strategy; reencrypted them; and sent them up to Snapchat’s servers as though it came straight from Snapchat’s app, with Facebook’s Social Advertising competitor none the wiser,” lawyers said in one of the documents.
This is a clever attack in several ways. If you can create and get a program/device to accept a false signing certificate, you bypass having to break a company’s encryption altogether. The program trusts your fake certificate and creates a secure connection to your backend, using your encryption, thinking it’s transmitting information back to the targeted company. Also, analytics data doesn’t have to be sent and received in real time, so a significant delay in gather and receive times may not tip off the targeted company to the attack.
None of this is a walk in the park, but it’s something like ten orders of magnitude easier than breaking the targeted company’s encryption stream on a live session to seamlessly hack it in real time, which is the sort of God-level hacking limited to those with NSA-level computing power, or fictional characters.
The lawyers, representing plaintiffs in a lawsuit that accuses Facebook of anti-competitive behavior, were describing emails they obtained through discovery.
In one email, Mr. Zuckerberg wrote that there was a need to receive information about Snapchat but that their traffic was encrypted. “Given how quickly they’re growing, it seems important to figure out a new way to get reliable analytics about them. Perhaps we need to do panels or write custom software. You should figure out how to do this,” he wrote.
After Facebook employees started working on figuring it out, Facebook Chief Operating Officer Javier Olivan wrote that the program could pay users to “let us install a really heavy piece of software (that could even do man in the middle, etc.).”
Man in the middle refers to a type of cyberattack where attackers secretly intercept information.
More specifically, it’s where a third party successfully inserts itself into the communication stream between two other parties, relaying (and possibly altering) both ends of the communication without either party knowing.
“We are going to figure out a plan for a lockdown effort during June to bring a step change to our Snapchat visibility. This is an opportunity for our team to shine,” Guy Rosen, founder of Onavo, later wrote. Onavo was started in Israel and bought by Facebook in 2013.
In a presentation on the program when it was being finalized, it was stated that there would be “’kits” that can be installed on iOS and Android that intercept traffic for specific sub-domains, allowing us to read what would otherwise be encrypted traffic so we can measure in-app usage.”
Documents and testimony obtained in the case showed the program was launched in June 2016 and continued being used through 2019.
The program initially targeted Snapchat but was later expanded to Google’s YouTube and Amazon, according to the documents.
A few quick points:
This is all from Snapchat’s court documents, so you have to put an “allegedly” on all this.
That Zuckerberg himself is (allegedly) directly implicated in deliberately breaking federal law is pretty breathtaking. He could be looking at serious jail time. Or would be, if he weren’t such a big Democratic Party Donor. (We’ll see how much time Sam Bankman-Fried catches today.)
Snapchat is one thing, but targeting fellow tech behemoths Google (which owns YouTube) and Amazon with this sort of attack would seem to be…unwise. (Maybe Google’s forgiveness was covered in the secret deal the two companies allegedly signed with each other.)
The timeframe is important here. Back in 2016-2019, the handling of digital signing certificates was a lot more loosey-goosey than it is now. A whole lot of things have been tightened up. I wouldn’t say it’s impossible to carry out such an attack now, but it would be harder.
We’ll see if the whole thing jumps from litigation land to the feds actually going after Facebook, but at a time when Facebook is being sued by all manner of plaintiffs (including Texas and other state attorney generals) over privacy violations and anti-competitive practices, the Snapchat revelations could certainly provide more fuel for the fire…
The Biden recession and other trends made 2023 a horrible year for startups.
“Big startups are shutting down. According to PitchBook, more than 3,000 private venture backed startups failed in the last year.”
“Of the startups raising money, 19% were funded at a lower valuation than in prior funding rounds.”
“38% of VCs disappeared from dealmaking last year and more than a quarter of a million workers at tech companies were laid off over the same period.”
“US corporate bankruptcy filings closed out 2023 with the most filings since 2010. The year has been described as a mass extinction event for startups in the press.”
Some of the startup failures Boyle namechecks (Hyperloop, Bird) seemed like stupid ideas from the git-go. “Bird the electric scooter rental company—which was also supposed to reinvent public transportation—filed for chapter 11 bankruptcy protection. It was the fastest startup to ever land a billion-dollar valuation, and at its peak was worth two and a half billion dollars. It was delisted from the New York Stock Exchange in September after failing to maintain a market cap of above $15 million dollars for 30 consecutive days.”
“Who would have thought that renting scooters to drunk people for a dollar (who would then throw them in a canal on their way home) would be a money losing business? Bird ran up more than $1.6bn in net losses since 2018 before finally running out of money.”
Smile Direct Club: $8.9 billion valuation at 2019 IPO. “The stock fell in value over time as the company proved to be unprofitable year after year. The company shut down last month $900 million dollars in debt.”
One I never heard of: “The health tech startup Olive AI which reached a peak valuation of $4 billion dollars in 2020 driven by the need for automation in healthcare during the pandemic. The company raised over 900 million dollars from investors. In 2022 the company began laying off staff citing ‘tough economic conditions.’ The company was allegedly trying to raise money when it abruptly shut down in November. Going out of business in 2023 was particularly surprising for a company with AI in its name.” Indeed, AI seems to be the current space where stupid money goes to die.
Another one I never heard of: Zume.
No.
“Zume – the robot pizza delivery company which had raised $445 million dollars in VC funding, the majority of which came from SoftBank in 2018 at a two and a quarter billion-dollar valuation, shut down this summer.” Stupid, but at least I can see why California companies would invest heavily in food automation with that $16 (and rising) minimum wage.
WeWork “set out to revolutionize office real estate – by having an app – which I’m told didn’t work very well, and free beer on tap filed for bankruptcy in November.” I’ve covered WeWork previously.
“WeWork and its founder Adam Neumann were the poster boys of how a blitzscaled business model led by a charismatic founder could apply a veneer of technology to an old business idea and attract venture capital funding to achieve a multibillion dollar valuation.”
“At its peak, WeWork was valued in private markets at $47 billion dollars. Softbank alone invested 16 billion dollars into the company. Masayoshi Son, SoftBank’s founder, allegedly invested his first $4.4 billion dollars in the shared office space company after Neumann gave him a 12-minute tour of a WeWork in 2016. With such a short tour, it’s unlikely that the free beer even had an impact.”
“Softbank – run by Masayoshi Son (Japan’s Cathie Wood) was one of the biggest startup investors in the last decade. They invested in all sorts of non tech companies that were made to look like tech in order to attain a sky-high valuation. According to Bloomberg, the SoftBank Vision Fund alone lost $53 billion dollars over the last two years on startup investments.”
“We have seen a very difficult period for startups over the last year or two, but it comes in the wake of probably the best period for VC backed startups in decades. During the decade from 2011 to 2021 VC investment in private start-ups grew more than sevenfold, from 46 billion dollars in 2011 to $345 billion dollars in 2021.”
“In 2022 when the federal reserve began hiking interest rates, this money began drying up as investors lost their taste for unprofitable, but high growth, investments.”
That investment boom was driven by two things: Low interest rates and “a recent history of profitable exits from VC funded startups like Facebook, Google, Whatsapp and Snap meant that investors were suddenly paying a lot of attention to tech startups – hoping to repeat those successes.”
“Venture capital went from being a small asset class run out of offices on Sand Hill Road that had burned investors in the dot com bubble to a massive global asset class like hedge funds or private equity.”
The Flu Manchu lockdowns brought investment from “‘working from home’ companies like Zoom and Peloton.” I always thought of Peloton as a lifestyle luxury brand.
“People were using apps like Uber and DoorDash for food delivery, and booking rentals on Airbnb to get out of big cities now that they no longer had to turn up in the office.”
“While the prior wave of profitable high growth tech stocks had been (one way or another) in the advertising space, or in businesses like cloud computing, the new wave of startups had untested business models—gig economy businesses which attracted a lot of competition and might never flip to profitability—or robot-made pizza which would be cooked on route to a customer’s home.”
“A lot of the VC’s possibly believed in many of the questionable investments that have since gone bust, but a venture capital fund isn’t really there to hold on to these investments until the underlying business flips to profitability. They invest at the idea stage with the goal of selling these businesses on to the public when the hype is at its peak.”
“They did manage to unload a number of the biggest flops like WeWork – but not at the valuations they were hoping for, and have found themselves holding the bag on a lot of investments that they bought into at peak valuation.”
“The huge valuations many of these companies were attaining in the private market may have been more of a function of how much money had flowed into the private tech startup market since 2011 rather than necessarily reflecting the quality of these companies and their business models.”
“According to Erin Griffith at The New York Times, $27.2 billion dollars in VC funding had gone into the 3,200 venture-backed companies that went out of business in the first 11 months of 2023.” And that’s just the firms trackable on PitchBook. The true total is almost certainly higher.
“That 27.2 billion dollar number excluded many of the largest startup failures that went public, like WeWork, or that found buyers at much lower prices than VC investors had invested at.”
“The hype around AI that we have seen in the last year has masked a lot of the losses in the tech space.”
“Meta was up 178 percent last year due to a combination of AI hype and cost cutting within their core business. This covers up the 46.5 billion dollars lost on the Metaverse – which no one will venture into, for fear that they run into Mark Zuckerberg.” I strongly suspect that a lot of those VR losses are actually money siphoned off for something else.
Despite this, stocks like Meta, Microsoft and Nvidia have hit all-time highs.
“One of the negative economic effects of startup shutdowns is that in such an environment it becomes harder for founders with good business ideas to get funding.”
“According to PitchBook, the number of active investors in US Venture Capital, which was defined as firms that made two or more deals in the last year, plummeted by 38% in the first three quarters of 2023 compared to the same period the prior year.”
Many of the startup failures were zombie companies, those that should have failed earlier but were kept alive by VC money and low interest rates.
“No one wants to see firms going out of business, especially startups which are often the most exciting and innovative firms, but if a business model makes no sense, or only works in a zero-interest rate environment, then its disappearance means that capital can again flow in the direction of the best businesses.”
The startup bust has direct negative effects on me personally, as I’m still between technical writing positions, and a lot of the jobs I’ve gotten over the past two decades have been with startups.
Israel has begun the process of flooding the network of tunnels beneath Gaza in an effort to flush out the impacted Hamas assets lodged there, according to U.S. officials who spoke to the Wall Street Journal. The Israeli military operation has so far involved the installation of seven massive pumps and testing the process of flooding the Hamas holes with water from the Mediterranean Sea, and now the great enema has begun in earnest.
“Israeli officials say that Hamas’s underground system has been key to its operations on the battlefield,” explains WSJ. “The tunnel system, they say, is used by Hamas to maneuver fighters across the battlefield and store the group’s rockets and munitions, and enables the group’s leaders to command and control their forces. Israel also believes some hostages are being held inside tunnels.”
The tunnel system has been dug throughout much of Gaza and is also active at the Egyptian border, the crossing at which Hamas militants smuggle many of their weapons into Gaza. It is a critical infrastructure for the terrorists’ ability to continue to wage their bloody war against the only democracy in the region. Remove the network of tunnels from the table, and you severely cripple that ability.
Thanks to Home Alone and Irish we know that a particular cart of groceries went from $19.83 in 1990 to $77.28 today.
389.7% inflation over 33 years.
Annualized, that’s just 4.208% inflation, since the goal is 3%, that doesn’t seem so bad.
The problem is that cart of goods was $44.40 last year. That’s an annual inflation of 2.4755% from 1990 to 2022. Below the Fed’s desired rate, good for us, bad for the national debt.
That means we had 174% inflation in one fucking year.
A common problem, one that well pre-dates the invasion of Ukraine, is that we have shockingly well credentialed people of influence from both parties who have an inability to understand that Russians are not Westerners. They don’t think like Westerners, though they may look like them.
The Russians have a distinct culture, history, and view of themselves and their place in history. The underperforming political, military, and diplomatic elite in the West – with few exceptions outside the former Warsaw Pact nations now in NATO – expect Russians to react in the same way and to the same degree to the incentives and disincentives that move needles and preferences in DC and Brussels.
Time is always on the side of Russia, which is one of the reasons the slow rolling of weapons to Ukraine has been an exercise of malpractice of the highest degree. You are either in or out.
Two years on, “we” still are not sending a clear signal. It is amazing, really; in military might, GDP, demographics and a whole host of other reasons, Russia should not be as resilient as they are … which is why DC & Brussels are being played so hard. They still do not understand Russia.
Even after 1,000 years of experience, we have Western leaders who refuse to believe that the Russians are fundamentally different than the West is in the 21st Century. You can’t put the cultural ability to absorb damage and brutal patience you cannot see in some metric that can go on a PPT slide.
What the Russians lack in so many other places, they make up for here. As such, this critical part of understanding Russian motivation keeps being missed. Yes to their economy and apocalyptic demographics. Yes to all that.
For all the reasons Russia continues to fight, so too do their Ukrainian brothers – demonstrating greater resilience and endurance that Western expectations.
The time for leaving Ukraine to its fate is long past. Yes, the West has a short attention span and is suffering under the dead hand of entrenched leaders with a defeatist mindset – but none of this is written.
Ukraine can still win – or at least something that can be called a win. It would help if the Russians had some internal issues that required more attention that Ukraine, but even then – all is not worth shrugging over.
Yes, I’ve seen the math – the metrics – but war is informed by math, but not defined within it.
At a relatively modest cost in our treasure and almost none of our blood, we are wearing down Russia’s ability to project power for a generation, perhaps two. Perhaps many more generations should demographic instability mate with political instability. The Ukrainians – facing the same economic and demographic challenges as the Russians – are up for the fight. There is no reason for more comfortable nations who have supported them so far to go wobbly at half-time.
“FBI Official Who Helped Launch Trump-Russia Probe Sentenced to Four Years in Prison for Work with Russian Oligarch…In August, Charles McGonigal, a 22-year veteran of the bureau’s field office in New York, was found guilty of a count of conspiracy for working with Oleg Deripaska, a Russian billionaire with close ties to President Vladimir Putin.”
Jagged Little Pill is now 28 years old. I don’t think I’ve listened to it for the last 27.
Texas Sen. John Whitmire (D-Houston) has won a resounding victory over U.S. Rep. Sheila Jackson Lee (D-TX-18) in a runoff election for mayor of Houston, carrying the race by 64 percentage points according to election results.
“Voters have spoken and I am humbly grateful to the people of Houston for electing me as their next mayor,” said Whitmire in a statement.
The election results largely mirrored the latest polling in the race where Whitmire maintained a lead over Jackson Lee, especially in runoff scenarios where negative perceptions of the congresswoman indicated many voters who had supported one of the other 18 candidates in the first round would likely move strongly towards Whitmire. Polls also indicated crime and public safety were among the top concerns for Houstonians — an issue on which Whitmire, as the longtime chair of the Senate Criminal Justice Committee, held a distinct advantage over Jackson Lee.
I didn’t follow that race closely because it’s been obvious for a long time that Lee simply isn’t very bright, something even the lefty sorts at the Daily Beast noticed.
In the Democratic-leaning Houston, Republican-backed candidates have slightly increased their presence on the 16-member city council with the help of the local party, outreach efforts into minority communities, and campaign efforts from conservative organizations.
According to unofficial election results, candidates Julian Ramirez, Willie Davis, and Twila Carter all won runoff elections for At-Large Positions 1, 2, and 3, and incumbent Mary Nan Huffman handily fended off a challenge from attorney Tony Buzbee for District G. The victors will join incumbent Amy Peck, who ran unopposed for District A, and Fred Flickinger, who won the District E seat on Election Day last month.
Each of the five contested candidates have enjoyed the support of the Harris County Republican Party (HCRP), the Republican Party of Texas, and groups like the Kingwood Tea Party.
Pundits frequently forget that not so long ago, Houston was a Republican stronghold. Ted Cruz won Harris County (albeit it narrowly) in 2012, and Greg Abbott carried it in 2014.
“Elon Musk took another shot at Disney CEO Bob Iger Thursday, after the state of New Mexico sued Meta for allegedly enabling child sexual abuse and trafficking – yet Disney and other woke advertisers, who paused advertising on X in a kneejerk reaction to claims of antisemitism – apparently have no problem when it comes to the sexual exploitation of minors.”
A black scholar Harvard President Claudine Gay plagerized is plenty pissed off.
One of the academics who was plagiarized, former professor Carol Swain, is pissed after Harvard gave Gay a pass on what would have resulted in severe punishment and/or expulsion for anyone else, as Townhall’s Christopher Rufo reports.
“I rarely get angry, but I am angry,” Swain wrote on X. “[R]ight now about the racial double standards that are TEMPORARILY giving #ClaudineGay an opportunity to resign. White progressives created her and white progressives are protecting her. The rest of us have had to work our rear ends off to achieve success. Some get it handed to them.”
Rufo interviewed Swain, who said that the plagiarism went far beyond a few paragraphs – and that Gay’s “whole research agenda, her whole career, was based on my work.”
“She became president of Harvard and got recognition as being its first black president. I don’t believe her record warranted tenure, and I believe that I had to meet a much higher standard than she did,” she told Rufo, adding “Something changed in the mid-1990s, [when] we were having a big affirmative action debate.”
Rufo asked Swain what she thought would happen to a white person under these circumstances, to which she replied “A white male would probably already be gone.”
Harvard announced that Gay would keep her job after a week of calls for her ouster, first, regarding her refusal to condemn calls for violence against Jews on campus, and then, after the plagiarism accusations broke. Despite a donor revolt spearheaded by billionaire Bill Ackman, a petition signed by 700 faculty members on Gay’s behalf won in the end.
Hey, remember that whole “Sam Altman fired as CEO/reinstated as CEO of OpenAI” thing a couple of weeks ago? Here’s the archive story.
Sam Altman was reinstated late Tuesday as OpenAI’s chief executive, successfully reversing his ouster by the company’s board last week after a campaign waged by his allies, employees and investors, the company said.
The board would be remade without several members who had opposed Mr. Altman.
“We have reached an agreement in principle for Sam to return to OpenAI as CEO with a new initial board of Bret Taylor (Chair), Larry Summers, and Adam D’Angelo,” OpenAI said in a post to X, formerly known as Twitter. “We are collaborating to figure out the details. Thank you so much for your patience through this.”
The return of Mr. Altmanand the potential remaking of the board, capped a frenetic five days that upended OpenAI, the maker of the ChatGPT chatbot and one of the world’s highest-profile artificial intelligence companies.
“i love openai, and everything i’ve done over the past few days has been in service of keeping this team and its mission together,” Mr. Altman said in a post to X. “with the new board and w satya’s support, i’m looking forward to returning to openai, and building on our strong partnership with msft.”
OpenAI’s board surprised Mr. Altman and the company’s employees on Friday afternoon when it told him he was being pushed out. Greg Brockman, the company’s president who co-founded the company with Mr. Altman and others, resigned in protest.
The ouster kicked off efforts by Mr. Altman, 38, his allies in the tech industry and OpenAI’s employees to force the company’s board to bring him back. On Sunday evening, after a weekend of negotiations, the board said it was going to stick with its decision.
But in a head-spinning development just hours later, Microsoft, OpenAI’s largest investor, said that Mr. Altman, Mr. Brockman and others would be joining the company to start a new advanced artificial intelligence lab.
Nearly all of OpenAI’s more than 700 employees signed a letter telling the board they would walk out and follow Mr. Altman to Microsoft if he wasn’t reinstated, throwing the future of the start-up into jeopardy.
Four board members — Ilya Sutskever, an OpenAI founder; Adam D’Angelo, the chief executive of Quora; Helen Toner, a director of strategy at Georgetown’s Center for Security and Emerging Technology; and Tasha McCauley, an entrepreneur and computer scientist — had initially decided to push Mr. Altman out.
Well, here’s Patrick Boyle to provide some context:
A few takeaways:
There are two OpenAIs: “The non-profit OpenAI, Inc. registered in Delaware, and its for-profit subsidiary OpenAI Global, LLC.”
Musk was an early, and big, investor in the non-profit. “The founders pledged over one billion dollars to the venture, but actually only contributed around $130 million dollars- the majority of which came from Elon Musk.”
When he felt OpenAI was falling behind in 2018, he wanted to take over OpenAI himself. When the board rejected that, he resigned and took future pledged money with him, which blew a huge hole in their budget. (Whatever you think of Musk, I don’t think not being busy enough is his problem.)
Then came the for-profit doppelganger.
“The profits being capped at 100 times any investment.”
“The company explained this decision saying, ‘We need to invest billions of dollars in the coming years into large-scale cloud compute, attracting and retaining talented people, and building AI supercomputers.’ This transition from nonprofit to for-profit required OpenAI to balance its desire to make money with its stated commitment to ethical AI development.”
“This unconventional structure meant that Open AI had a board of directors, which in theory controls the entire corporate structure (which includes the charity and the capped profit company) – but which unlike other boards is not accountable to shareholders. The directors are in fact not allowed to own any stock to prevent a conflict of interest, because they are specifically not supposed to be aligned with shareholders.”
“The companies operating agreement – to investors – says – in writing: ‘It would be wise to view any investment in OpenAI in the spirit of a donation, with the understanding that it may be difficult to know what role money will play in a post-AGI world.’ Documents like this – that were written by an actual lawyer – highlight the problems we are starting to see from the combined popularity of science fiction in Silicon Valley and widespread microdosing of hallucinogens.”
“In the real world, where the role of money is reasonably well defined, Open AI is an unprofitable company and is expected to need to raise a lot more money over time from investors like Microsoft, to keep up with the high costs of building more sophisticated chatbots.”
“Despite this lack of profitability, the company is valued by investors at 86 billion dollars, and Bloomberg reported last weekend that ‘some investors were considering writing down the entire value of their OpenAI holdings to zero.'”
“Former colleagues would have an open door to follow and join a new AI unit, according to Microsoft chief Satya Nadella. As much of a win as this might have appeared for Microsoft (people were saying that they had managed to buy the hottest AI firm for zero), this might not have been the optimal outcome for them, as they would likely have had to deal with antitrust regulators and lawsuits from other Open AI investors.”
“The majority of Open AI’s 700 or so employees signed an open letter to the board demanding that the board resign and that they rehire Altman. The letter stated that the board had told the employee leadership team that allowing the company to be destroyed ‘would be consistent with the mission.’ The employees said that unless their demands were met, they would resign from Open AI and join the new subsidiary of Microsoft being headed up by Altman and Brockman.”
“You have to wonder what the employee contracts at Open AI look like that the entire staff could leave to work for a major investor in the company leaving Open Ai as an empty shell.”
“Typically, executives like Altman would have contracts that prevent them from hiring away key staff once they are no longer at the firm, and staff would have signed NDA’s preventing them from taking any technology with them.”
“The OpenAI story is a bit of a crazy one, where Microsoft and a number of other sophisticated investors agreed to put billions of dollars in, and employees got stock grants, all at an $86 billion valuation, without the contractual or fiduciary rights that investors might normally expect.”
Rival Anthropic has a similar structure.
“Bad corporate governance has been a growing issue particularly in Silicon Valley where companies like Google, Facebook and Snap structured their IPO’s such that founders were left with unchallenged power to do almost anything that they want.” Google and Facebook are garbage companies, but there are some scenarios where only founders can keep the company on a long-term vision rather than goosing quarterly profits (Jobs at Apple comes to mind).
Warren Buffet has a similar mechanism (A shares of stock only he controls) to keep control of Berkshire Hatheway.
“Since you are buying shares of companies in perpetuity, leadership who are not accountable to shareholders can take value destructive paths without answering to anyone. Meta’s Reality Labs division, which houses its efforts to build the metaverse, has lost around $46.5 billion dollars since 2019. Would Mark Zuckerberg have been able to waste this much money if he was accountable to investors?” I have a fairly strong suspicion that division is being used to hide all sorts of shenanigans.
Boyle is deeply suspicious of “stakeholder capitalism” as opposed to the old-fashioned, profit-maximizing kind.”
The thing missing from this summary, and all the coverage of the story I’ve seen, is why Altman was originally let go, and none of the principals involved seem to be talking about it…
There’s already been a lawsuit filed against Meta by Richard Kadrey, Sarah Silverman and Christopher Golden over using their material for training AIs, but there seems to be no mention of pirated books or book3.
The fact that Meta is not only training AI on author’s works without their permission, but using pirated copies to do so adds insult to injury.
And probably additional monetary damages from the resulting lawsuits.
I expect the latest piracy revelations to lead to whole host of new lawsuits…
More Biden Crime Family evidence surfaces, another mysterious Chinese bio-lab (this one much closer to home than Wuhan), more blue city real estate disaster, and Tim Scott screws up. It’s the Friday LinkSwarm!
President Joe Biden vehemently denied ever talking business with his son, “or with anyone else” in the run-up to the 2020 election. In fact, Biden even fat-shamed an Iowa voter who approached the subject during the Democratic primaries. On the debate stage with Donald Trump, the former vice president peddled conspiracies of Russian interference when emails from Hunter Biden’s laptop revealed otherwise.
On Sunday night, the New York Post reported on anticipated testimony from Hunter Biden’s former business partner, Devon Archer. The 48-year-old who went golfing with the Bidens in 2014 is expected to tell the House Oversight Committee how Hunter Biden put his father in contact with foreign businessmen and potential investors at least 24 times. According to the Post, such meetings were either in person or by speakerphone, with Hunter Biden often dialing in Joe.
Beyond those meetings, there are more than 180 other episodes where the president interacted with his son’s business partners, contrary to his campaign claims of “absolute” separation.
As the evidence for at least an impeachment inquiry into President Joe Biden mounts, Sen. Ted Cruz (R-TX) and co-host Ben Ferguson discussed the latest bombshell – 170 suspicious activity reports (SARs) from six banks over the past few years – on their podcast with House Oversight Chairman James Comer (R-KY).
As Townhall reports, these SARs are submitted and sent to the Treasury Department when banks “have a strong suspicion” that a crime has been committed, so as to protect the bank.
As Comer emphasized, these are submitted “very seldom.”
If someone were to have two, the chairman explained, it would be hard for that person to open up a bank account.
Submitting an SAR, Comer added, also is “inviting the regulators to come in and regulate,” which is the last thing banks want.
The full transcript from Devon Archer’s sworn testimony before the House Judiciary Committee from Monday, July 31, has been released. During that testimony, Archer told Rep. Dan Goldman that Hunter Biden had been placed on the board of directors for Ukrainian energy company Burisma in order to “legally” intimidate people.
During that question period, Goldman asked Archer “So based on everything you saw, heard, and observed, did you have any knowledge of Joe Biden having any involvement with Burisma?”
Archer said that while he did not have “direct” knowledge, it was his view that Burisma would not last were in not for Joe Biden’s involvement. “My only thought is that I think Burisma would have gone out of business if it didn’t have the brand attached to it. That’s my, like, only honest opinion,” Archer said. He went on to say that the company was able to survive for as long as it did because Hunter was on the board.
“Just because of the brand,” Archer said. The “brand” refers to the Biden name. Speaking with The Post Millennial, Congresswoman Marjorie Taylor Greene said that the brand was not only Biden, but the vice presidency during Biden’s tenure.
“How does that have an impact?” Goldman asked.
“Well, the capabilities to navigate D.C.,” Archer said, “that they were able to, you know, basically be in the news cycle. And I think that preserved them from a, you know, from a longevity standpoint. That’s like my honest—that’s what I—tht’s like how I think holistically.”
“But how would that work?” Goldman asked.
“Because people would be intimidated to mess with them,” Archer replied.
“In what way?” Goldman pressed.
“Legally,” Archer said.
Archer also spoke about the meetings during which Joe Biden would call in, or be called. “He put him on speakerphone, again, occasionally. Specifics, like, you know, dinner—you know, dinners occasionally.” Archer was asked to describe the dinners, and said “I remember a dinner in Paris with a French energy company that was—we were speaking to an advisor, and then—we were speaking to. And it was really a Rosemont Seneca Advisors type of—a Rosemont Seneca Advisors kind of a pitch, at the end of the day. And there was a talk, and he said that we’re at this—you know, we’re at this restaurant in Paris, and he put him on the speaker. So that did happen. There were other people there.”
That dinner, specifically, was attended by “myself; Hunter; Eric Schwerin; and then the executives from the French energy company,” Archer said.
Another was in “Beijing, at, you know, some restaurant,” Archer said, “—or Chengdu or something like I don’t remember the—I don’t remember specifics. This was just—it was not—t was like a, you know—especially with the time zone difference, there was—you know, there were meetings where his dad would call and he would be talking to him or put him on speaker. I’m not going to—you know, that’s—that happened.”
Archer said that the conversation at that dinner, with Jonathan Li, was primarily niceties. But it was his contention that getting the vice president on the phone, showing off that kind of access, was what those calls were all about. Archer testified that Hunter Biden would say things like “Hey, guys, my dad’s on the phone.”
Another call, which Archer revealed during questioning by Rep. Jim Jordan, took place in Dubai. During this impromptu meeting, Hunter Biden was contacted by Burisma’s CEO Zlochevsky, who said “We’re under pressure. We need to go—we want to talk to Hunter.” Hunter called DC, and Archer was “not in the earshot” of that call.
It was only 5 days after that call that Joe Biden “has a trip to the Ukraine, and he makes a statement: ‘It’s not enough to set up a new anti-corruption bureau and establish a special prosecutor fighting corruption. The Office of the General Prosecutor desperately needs reform.” That was in 2015, and Biden withheld $1 billion in loan guarantees from Ukraine until such time as the prosecutor Viktor Shokin was fired.
Bill Stevenson, who was married to Jill Biden between 1970 and 1975, told Newsmax last week that the president’s brother, Frankie Biden, tried to intimidate him during his divorce with Jill, and claimed the family threatened him with repercussions.
“Frankie Biden of the Biden crime family comes up to me and he goes, “Give her the house or you’re going to have serious problems,”” Stevenson said. “I looked at Frankie and I said, “Are you threatening me?” and needless to say, about two months later, my brother and I were indicted for that tax charge for $8,200.”
When asked to clarify whether he thinks Joe Biden was behind the tax charge, Stevenson told host Greg Kelly: “I not only think it, but I know it,” adding that he “could not believe the power of Joe Biden and the Department of Justice. I couldn’t believe it.”
Kelly also noted the parallels between Stevenson’s case and Hunter Biden’s ongoing tax troubles – noting that Hunter was hit with just two misdemeanor counts for $2.2 million in unpaid taxes, while Stevenson and his brother were slapped with two felonies for just over $8,000 in unpaid taxes.
This is a weird, disturbing story: Mysterious Chinese bio-lab discovered in Reedley, CA in the central San Joaquin Valley.
Court documents detail the horrors and dangerous nature of an illegal lab found in Reedley, California, exposed several months ago by a city code enforcement officer. What was found inside prompted the fire chief to send a letter to city officials describing it as a “potential disaster for the city.”
An investigation into the warehouse was prompted by a simple garden hose that was illegally attached and coming out of a wall in the back of the building.
“Frankly, we knew that should not have been there and when she went to investigate, she found that there was activity or operation or something happening within that building,” said Reedley City Manager Nicole Zieba.
The city then obtained a search warrant to look inside what should have been an ordinary warehouse. Inside, they found thousands of vials, many of which contained bio-hazardous materials like human blood, and other unknown substances.
“There was over 800 different chemicals on site in different bottles of different acids. Unfortunately, a lot of these are being categorized under ‘unknown chemicals,’” said Assistant Director of the Fresno County Department of Public Health Joe Prado. “A lot of these labels have been removed from bottles so there was only so much testing we could do [on] those chemicals.”
Health officials also discovered nearly 1,000 lab mice, 200 of which were dead.
Prado said the warehouse occupants claimed they were “doing some testing on laboratory mice that would help them support [and develop] the COVID test kits that they had on-site.”
According to court documents, officials with the Centers for Disease Control and Prevention tested what they could and determined that at least 20 potentially infectious viral, bacterial, and parasitic agents were present, including E. coli, malaria, and the virus that causes COVID-19.
“Scientists Call for Full Retraction of Nature’s Proximal Origin Paper, as Fraud Accusations Mount.” Their response was simplicity itself: They lied.
A growing number of people, including prominent scientists, are calling for a full retraction of a high-profile study published in the journal Nature in March 2020 that explored the origins of SARS-CoV-2.
The paper, whose authors included immunology and microbiology professor Kristian G. Andersen, declared that evidence clearly showed that SARS-CoV-2 did not originate from a laboratory.
“Our analyses clearly show that SARS-CoV-2 is not a laboratory construct or a purposefully manipulated virus,” the authors wrote in February.
Yet a trove of recently published documents reveal that Andersen and his co-authors believed that the lab leak scenario was not just possible, but likely.
“[The] main thing still in my mind is that the lab escape version of this is so friggin’ likely to have happened because they were already doing this type of work and the molecular data is fully consistent with that scenario,” Andersen said to his colleagues, according to a report from Public, which published a series of Slack messages between the authors.
Anderson was not the only author who privately expressed doubts that the virus had natural origins. Public cataloged dozens of statements from Andersen and his co-authors—Andrew Rambaut, W. Ian Lipkin, Edward C. Holmes, and Robert F. Garry—between the dates January 31 and February 28, 2020 suggesting that SARS-CoV-2 may have been engineered.
” …the fact that we are discussing this shows how plausible it is,” Garry said of the lab-leak hypothesis.
“We unfortunately can’t refute the lab leak hypothesis,” Andersen said on Feb. 20, several days after the authors published their pre-print.
The rap on Tim Scott is that he is too nice to be a modern Republican, but that’s wrong – he’s too weak to be a modern Republican. The man consistently defaults to submission to the woke left, but the times call for a warrior and his brand is soft surrender. Yeah, it would be nice to live in an era where we have the luxury of a president who dodged the draft in the culture wars, but we do not live in that time. Tim Scott needs to stay right where he is, an affable but unaccomplished senator firmly within the tradition of the political puffballs that South Carolina’s GOP inexplicably turns out. Let him be nice somewhere where his alleged niceness won’t shaft us again.
It could have been different, but that would require a different man than Tim Scott. There are moments that define a candidate, moments where they have a choice and the choice they make makes or breaks them. Kamala Harris decided to take what is essentially a footnote within the Florida history standards and contort it into some sort of lie about how Ron DeSantis loves slavery. It’s one of those issues where the claim is so facially ludicrous that you have to wonder if Kamala is stupid or cynical – and come to the conclusion that she is probably both. But she went with it and DeSantis pushed back and we were moving on when someone in the regime media asked Tim Scott about it.
This was his decision point. It was an opportunity to show who he is. And Tim Scott whiffed.
Taking the wrong side in the social justice war is disqualifying. Scott has gone from being maybe my third favorite candidate in the field and a strong Veepstakes possibility to being behind Doug Bergrum and Vivek Ramaswamy.
Oakland residents are sick and tired of our intolerable public safety crisis that overwhelmingly impacts minority communities. Murders, shootings, violent armed robberies, home invasions, car break-ins, sideshows, and highway shootouts have become a pervasive fixture of life in Oakland. We call on all elected leaders to unite and declare a state of emergency and bring together massive resources to address our public safety crisis…
Failed leadership, including the movement to defund the police, our District Attorney’s unwillingness to charge and prosecute people who murder and commit life threatening serious crimes, and the proliferation of anti-police rhetoric have created a heyday for Oakland criminals. If there are no consequences for committing crime in Oakland, crime will continue to soar.
People are moving out of Oakland in droves. They are afraid to venture out of their homes to go to work, shop, or dine in Oakland and this is destroying economic activity. Businesses, small and large, struggle and close, tax revenues vanish, and we are creating the notorious doom-loop where life in our city continues to spiral downward. As economic pain increases, the conditions that help create crime and criminals are exacerbated by desperate people with no employment opportunities.
We are in crisis and elected leaders must declare a state of emergency and bring resources together from the city, the county, and the state to end the crisis. We are 500 police officers short of the number that experts say Oakland needs. Our 911 system does not work. Residents now know that help will not come when danger confronts them. Worse, criminals know that too…
There is nothing compassionate or progressive about allowing criminal behavior to fester and rob Oakland residents of their basic rights to public safety. It is not racist or unkind to want to be safe from crime. No one should live in fear in our city.
Speaking of blue city retail apocalypses: “Field Office, a Trophy Complex Unable to Find Tenants, Defaults on $73.8 Million Loan. Goldman Sachs and Lincoln Property stopped making payments.”
The owners of Field Office, a 290,375-square-foot office complex near the Willamette River, have defaulted on their $73.8 million loan after being unable to find enough tenants, becoming the latest office owners to throw in the towel on Portland’s struggling office market.
Field Office is owned by New York investment bank Goldman Sachs and Lincoln Property Co., a Dallas-based real estate firm with operations in Portland. The pair bought Field Office from local developer Project^ and National Real Estate Advisors, an investment firm based in Washington, D.C., for $118 million in April 2019, according to public records.
Funny how letting antifa/#BlackLivesMatter rioters and crime run rampant through your downtown destroys property values. #ThisIsYourCityOnSocialJustice
Black Florida State University professor who published numerous studies on “systemic racism” is fired for just making shit up. (Hat tip: Dwight.)
You’re a Texas republican congressman who’s also an ER doctor and you try to assist a teenage girl having a medical emergency? That’s a handcuffing.
A former employee of a large food service corporation is suing the company in federal court after it fired her for refusing to participate in a program that discriminates against white male employees.
Courtney Rogers worked for Charlotte, North Carolina-based Compass Group USA Inc. from her home office in San Diego, California.
The company had more than 280,000 employees and $20.1 billion in revenue in 2019, according to its LinkedIn profile.
“Back in 2018, NBA megastar LeBron James opened his I Promise School in Akron, Ohio with the noble goal of transforming the lives of at-risk students and parents in his hometown. But it appears that the school has some major challenges five years into its existence. According to a report from the Akron Beacon Journal, the I Promise School’s fall class of eighth graders has has not seen a single student pass the state’s math test in five years – since the group was in the third grade.”
“It’s as simple as people thought everything was permitted in pursuit of getting rid of Donald Trump.”
Taibbi says he wasn’t pushed out of Rolling Stone, he just thought he could make more money by leaving. And he was right! “Let’s just say that I’m making many times over more than I was making at Rolling Stone.”
MT: I don’t believe a lot of the identity politics that are being proffered by the current version of the Democratic Party are genuine. And my first experience with this, where I really, really thought about this, was when I was following Bernie Sanders’s campaign in 2016. And there was a moment in that campaign where he first started to really draw blood against Hillary right. You might remember it was like in February, uh, or late January of 2016. He was hammering her on her ties to Goldman Sachs and other Banks. The New York Post interestingly did this, published this big list of all of her speech commitments and it was kind of amazing. And she wouldn’t release the transcripts right she wouldn’t release the transcripts. I mean, even the schedule was amazing. She was doing three hundred thousand dollars in the morning and then flying to some place and doing 400 Grand or something.
Reason: Yeah circle of the Bilderbergers, or whatever.
MT: And they tried everything to hit back, and nothing worked until she said: “If we break up the banks tomorrow, will that end racism?” And Bernie was paralyzed by that.
Reason: Yeah, Bernie’s an old school, he’s a real old school Commie. I mean, like where it’s class and everything else is a distraction, right? That, you know, capitalists will use race in order to keep the workers from realizing, no, they’re all on the same side well
MT: I almost wish he was that, because you know Bernie also marched in, you know, in for the civil rights movement in the 60s. And he was terrified of the idea that he might be accused of racism. It mortified him, and I think it really slowed his campaign.
Reason: There was also that moment, I think it might have been in Seattle or something, where he was almost literally pushed off the stage by a couple of black activists, who were like “We need to be talking about racial concerns,” not whatever he was talking about.
MT: Right, not your class thing. [And] that was when they started to sort of demonize the white working class, right, which is a brilliant strategic move. Also, interestingly, it was the exact opposite of what the Clintons had done in the 90s. You know the Clinton’s whole strategy was let’s peel off a little bit of that white working class-
Reason: We feel their pain.
MT: We feel their pain, right. And that’s, you know, they just got over the finish line doing that. So we can add to the sins of Hillary Clinton that she also injected identity politics.
With all due respect to Taibbi, identity politics had been injected into the Democratic Party’s DNA long before the 2016 presidential race.
“Trump [has] been an enormous Boon to the intelligence Services they’ve been able to say hey if you if you code as somebody who sides with Trump…essentially they’ve created what I like to call the One Villain Theory of the Universe. Which is if you’re on Trump’s side, that means you’re on Putin’s side, which means you’re also on Assad’s side, you’re on Orban’s side, you’re on the side of domestic violence.”
MT: “Covid has a whole long list of things that have added to Middle America’s grievances. Beginning with the fact that it it increasingly looks like they lied to us about the origins of the disease for some pretty weak reasons. Maybe they were trying to cover up some research they were doing. That’s thing one that’s looking increasingly likely. At the very least they excluded the possibility of that illegitimately and used
Reason: “And that’s where the government was telling Twitter and Facebook, like, don’t run this stuff or they’ll squelch it.”
“I did a story about Loudoun County, Virginia, when Republicans won the gubernatorial election there. And there were people there who were furious at the way they had been portrayed in the media, as racists or anti-vaxxers. Really, they wanted their kids to go back to school, because they had done their own research online, they found the kids weren’t really at risk, and their kids weren’t learning anything, and it was a burden on them personally, right? So there’s a million things like this.”
I don’t agree with all Taibbi’s takes, and a whole lot of things were going wrong with the left long before he deigned to notice it, but over all it’s an interesting interview.
