A group of states is suing the Security Exchanges Commission (SEC), claiming the commission is overstepping its authority in regulating digital assets like cryptocurrencies — arguing that the SEC’s actions stifle state-level innovation and impose federal control without congressional approval.
Eighteen state attorneys general have joined the lawsuit, one of which is Texas Attorney General Ken Paxton, in addition to DeFi Education Fund, a nonpartisan research and advocacy group.
Along with naming the SEC directly in the complaint, it also lists SEC Chair Gary Gensler, among other officials.
The states want the court to stop the SEC from enforcing regulations and allow them to manage digital assets with their own laws.
“The SEC’s sweeping assertion of regulatory jurisdiction is untenable,” the suit states. “The digital assets implicated here are just that — assets, not investment contracts covered by federal securities laws.”
“They do not entail any traditional investment relationship, in which the investor invests capital and the promoter assumes an ongoing obligation to use that capital in a common enterprise to generate returns that the investor will share.”
The lawsuit goes on to explain that the laws defining what counts as an “investment contract” were written in a clear way, and past U.S. Supreme Court decisions support this definition. Because of this, the complaint asserts, the SEC does not have broad authority to regulate all digital asset transactions as if they were securities. The argument is that the SEC is overreaching beyond what these laws and past rulings allow.
The complaint, filed in Kentucky district court, is asking the court to declare that digital asset transactions are not considered securities if they don’t involve a promise to manage assets for profit. They also want the court to stop the SEC from forcing digital asset platforms to register as securities-related businesses if they don’t meet those conditions. Additionally, the states claim the SEC broke rules by not following proper procedures.
Snip.
While on the campaign trail, President-elect Donald Trump vowed to protect the blockchain industry, making a bevy of promises to crypto enthusiasts.
Trump took the stage at the Libertarian National Convention back in May, where he promised to stop “Joe Biden’s crusade to crush crypto.” In July he said he would “fire Gary Gensler” on day one of his new administration.
“No longer will your government sit by and watch as Bitcoin jobs and businesses flee to other countries, because America’s laws are too unclear and too tough and too angry and too stiff,” Trump said while delivering the keynote address at a Bitcoin conference. “We will keep each and every Bitcoin job in the United States of America, that’s what we’re going to be doing.”
Texas has become a major center of the crypto and Bitcoin industry in America. Sen. Ted Cruz (R-TX) is a vocal advocate for the emerging finance sector, and Gov. Greg Abbott signaled he will continue to be friendly to the crypto community, describing himself as a “crypto law proposal supporter.”
There’s a long-running debate about just what the hell cryptocurrencies are under federal law. Unlike other securities (say, a stock or bond), a unit of cryptocurrency is not a token that represents a tangible legal entity in the real world. It’s not a currency as traditionally understood, as it is not backed by specie or the power and authority of a government. It’s not a commodity, because what commodity can be moved across the world at the speed of light?
If it doesn’t actually fit the profile of anything that legislation has specified that the government regulates, then maybe, as Paxton et al assert, then the federal government shouldn’t regulate it. That would seem to be the proper constitutional interpretation under the Tenth Amendment.
While I’m still skeptical of the long-term usefulness of cryptocurrency (though with Bitcoin hovering around $90,000, I sure wish I had mined some back when it was easier to do), the Trump Administration is filled with very smart people who believe in Bitcoin and other cryptocurrencies. History teaches us that it’s best to let new technologies shake out without government interference, so let’s hope Paxton and company’s lawsuit succeeds.
Here’s a story I’m covering just for the “What the hell?” factor.
The Tron blockchain has overtaken Bitcoin as the cryptocurrency network most favored by groups such as Hamas and Hezbollah, which are designated as terror organizations by the U.S., U.K. and other jurisdictions, Reuters reported on Monday.
There has been a sharp rise in cryptocurrency seizures from Tron wallets since 2021 and a decline in those from Bitcoin wallets, Reuters’ analysis found.
Israel has made 87 such seizures from Tron wallets this year, two-thirds of the total number going back to July 2021. These include 39 from wallets the country said in June were owned by Lebanon-based Hezbollah and 26 in July from Hamas ally Palestinian Islamic Jihad.
“Earlier it was Bitcoin and now our data shows that these terrorist organizations tend to increasingly favor Tron,” Mriganka Pattnaik, CEO of blockchain analysis firm Merkle Science, said.
The things that jump out at me are:
Evidently there’s a cryptocurrency called “Tron,” because nothing says “Cool” quite like a 41 year old Disney movie.
Hezbollah and Hamas have been using it, because financing an illegal terrorist network across international borders is one of the few use cases for the anonymous transactions that cryptocurrency currently supports. But that doesn’t seem to matter, since…
Israel was still able to seize the money, which seems to suggest that whole “anonymous, untraceable” appeal of cryptocurrency has some fairly sizeable holes in it.
Tron evidently is worth about 10 cents per coin, which seems slightly higher than the going rate for Dogecoin right now. Bitcoin is somewhere around $38,000.
How terrorist networks came to use cryptocurrency would be a really, really cyberpunk story if it weren’t so dull…
Here’s hedge fudge manager/university professor Patrick Boyle goes into detail of just how it went down.
“Silvergate’s importance in the recent crypto boom is possibly best described by a now-deleted testimonial from the bank’s website: ‘Life as a crypto firm can be divided up into before Silvergate and after Silvergate.It’s hard to overstate how much it revolutionized banking for blockchain companies.’ The testimonial was written by a millennial who still lives in his parents’ basement playing video games and has had some recent run-ins with the law. His name is Sam Bankman Fried.”
“If we go back ten years, Silvergate was a small San Diego based real estate lender that transformed itself into the go-to bank for the crypto industry.”
“Silvergate invited in crypto entrepreneurs and asked them what problems they were trying to solve and how the bank could be helpful. After this, the bank transformed itself and grew rapidly. It went public in late 2019 at a share price of $13, and a year later the stock price had risen by 1,580% as it became a key interchange point between dollars and cryptocurrencies.”
“Major Silverlake clients included Paxos, bitFlyer, Kraken and also innovators in atonal rock music – Mars Junction…” [This is an inside joke. Mars Junction is the band of Cameron & Tyler Winklevoss, AKA the WInklevoss Twins of Facebook investing controversy] “…who also had some involvement in the Crypto industry. FTX and Alameda were also big customers.”
“The bank’s growth mirrored the growth of the crypto industry, and it declined alongside that industry too, announcing in a regulatory disclosure earlier this week that it plans to wind down operations in the face of ‘turmoil in digital currency markets.'”
Last week Silvergate had announced that they would be unable to file an annual report with the SEC on time due to a weakening in their capital position. They announced that they might be forced to close at that time, blaming growing problems, in part on pending investigations into their operations. The filing confirmed that Silvergate is being investigated by the US Department of Justice.”
“Customers rushed over the last few months to pull money out of Silvergate. In January they reported that customers had withdrawn more than $8 billion, forcing them to sell held-to-maturity assets to fund the run, accruing losses on the sale of those securities of $718 million dollars.”
Why was Silvergate so important in the world of crypto? Well, people who trade cryptocurrencies often want to use dollars to buy crypto, or they want to sell crypto and receive dollars and the dollar side of those transactions is where things get bogged down. If you are transferring large sums of money to buy crypto, you need to deal with the US banking system, who might ask you a lot of questions relating to anti money laundering regulations. Crypto people hate questions like this. Similarly, if you just sold some crypto and want to deposit the dollars you received, most banks will have a long list of questions about the source of your funds, and there is a really good chance that they will simply refuse to do the transaction. It is going to be a struggle for a US regulated financial institution to show their regulator that they have done enough due diligence to be sure that your funds are not the proceeds of crime. And the last thing a bank needs is to be accused of money laundering; they would rather just simply not deal with suspicious transactions.
“For this reason, stablecoins like Tether and Terra exist – or existed.” If you weren’t paying attention, the value of theoretically stable Terra crashed hard last year.
“If you can convert your dollars into crypto once, you can then buy stablecoins that are supposed to always be worth a dollar, and then instead of buying and selling crypto, with actual dollars you buy and sell crypto with dollar-denominated stablecoins, your money can stay ‘on chain.’ The problem with that, is that you have to trust the stablecoin issuers, and they, for some reason, don’t always seem trustworthy. They won’t really tell you where the money is.”
“They’ll sometimes announce that they are going to be audited by a top 12 auditor (I’m not really sure what a top 12 auditor is – but when you hear that – you know you are getting number 12 on the list), and you start to wonder if Friehling & Horowitz made that list.” Friehling & Horowitz were Bernie Madoff’s auditors.
“If you have deposited your dollars with a crypto exchange or a stablecoin provider, they still need to deposit them somewhere. They need a bank too. Now (of course), another way of dealing with this banking issue, might be to lie to your bank about what your account is being used for (SBF and the team at FTX did that), but the technical term for ‘lying to your bank’ is Bank Fraud (as Sam Bankman-Fried just found out) – and you can get in trouble for that.”
“There was significant demand for a “crypto friendly bank” and Silvergate was willing to fill that role, when no other bank was willing to take that risk. Silvergate weren’t just crypto friendly either, they built their own payments network called the Silvergate Exchange Network to (according to their marketing documents) enable the efficient movement of U.S. dollars between participants 24 hours a day, 7 days a week, 365 days a year.”
“As you might imagine, Silvergate (being the only bank that would deal with them) attracted a lot of big crypto customers, as these customers were able to open up accounts without lying too much.”
“Silvergate dealt with most of the big players in the industry and they were an actual US regulated bank with excruciatingly detailed audited financial statements and capital regulation. This meant that your money was safe at Silvergate, unlike at the other venues we just went over.”
“The beauty of dealing with these crypto customers, crypto exchanges, [was] that because you don’t have any real competition in this space, you don’t really have to pay them any interest on their deposits. You could take the billions of dollars they deposit with you, put it all in treasuries, and you get to keep all of the interest. You’ll probably have to spend some of the profits on lawyers to keep the regulators at bay, but overall you might have a profitable business. But that’s boring right? And no one gets involved in crypto for a boring life…”
“They had a product called SEN Leverage direct lending, where they would lend people money collateralized with bitcoin. Exchanges could also borrow dollars collateralized with bitcoin for corporate treasury and other business purposes. In January, they announced that total SEN Leverage commitments were $1.1 billion dollars and that all of their SEN Leverage loans ‘continued to perform as expected, with no losses or forced liquidations.’ So, as crazy as that business might sound, it was not really the source of their problems.”
“As of September, 2022 their balance sheet showed about $11.4 billion of ‘securities,’ meaning bonds: Treasury securities, mortgage-backed securities, agency bonds and so on and $1.4 billion of ‘loans,’ meaning the Bitcoin loans and some other real-estate lending. They had $13.2 billion worth of deposits at the end of September, most of them being from crypto companies – so non-interest paying deposits, the best kind.”
“The problem for Silvergate was that when FTX was exposed as being insolvent, crypto investors were considerably less willing to leave their cash on exchanges.”
“They asked for their money back from the exchanges, meaning that the crypto companies had to ask for their money back from Silvergate, so Silvergate was faced with a good old fashioned bank run – driven not by a loss of faith in Silvergate, but by a loss of faith in crypto exchanges. By the end of December, noninterest bearing deposits at Silvergate fell from $13.2 billion dollars to just $3.9 billion dollars.” Yowzers! It’s hard to expect any bank to survive an outflow of 2/3rds of their deposits in such a short period of time.”
“There is a good chance that if you had an account at a crypto exchange, that exchange banked with Silvergate, and if you closed your account and cashed out, the cash came from a deposit at Silvergate.”
“There were other FTX related problems too. When prosecutors started looking into the collapse of FTX, their attention was drawn to their banker – Silvergate, for hosting accounts connected to Sam Bankman-Fried. Now, a big problem for Silvergate, was that – with their money all tied up in bonds or lent out, Silvergate had to come up with around 9 billion dollars to pay out these withdrawals.”
“Their accounts show that by the end of December they had sold half of their bonds and had controversially borrowed $4.3 billion from the Federal Home Loan Bank of San Francisco, a government institution that is in place to give short-term secured loans to banks that have a short-term liquidity problem.” That, and the FTX connection, attracted the attention of Washington D.C.
In September Silvergate had shown 3.1 billion dollars’ worth of bonds as being “held to maturity” and 8.3 billion dollars’ worth of bonds as being available for sale. The difference between these two classifications (from an accounting perspective) is that the available for sale bonds have to be marked to market – or held on the books at their fair market value, while the “held to maturity” bonds could be marked at their cost price. By the end of December there were no “held to maturity” bonds left on the balance sheet, meaning that they had either been sold, or reclassified as available for sale. One way or another, interest rates had gone up a lot in 2022, and these bonds were worth a lot less than they were being carried on the balance sheet at.
So they might have skated by if rising interest rates hadn’t wrecked their mark-to market.
The sale resulted in a loss of $751.4 million during the fourth quarter of 2022 and in addition, the company recorded a $134.5 million dollar impairment charge related to an estimated $1.7 billion dollars of securities it “expects to sell in the first quarter of 2023 to reduce borrowings.” This is because reclassifying some of the bonds to “available for sale” meant that they now had to be marked to market and that the loss had to be recognized under GAAP accounting rules. Silvergate also had to write down a $196 million dollar investment in “certain developed technology assets related to running a block-chain-based payment network” that it had bought in January 2022. So, all in, there was a net loss of over a billion dollars in the fourth quarter of 2022.
“Bank capital requirements are ‘risk-based’ and need to be kept above 4% to be ‘adequately capitalized’ and above 5% to be considered ‘well capitalized.’ Different types of assets have different risk weights, and this is done to keep deposits safe.”
“A bank that makes a lot of mortgage and business loans might have a capital requirement of around 8%, and assets like bitcoin have a 100% capital requirement, meaning that a bank would need to have $100 of capital for every $100 of bitcoin on its books.”
“In September Silvergate was fine, as despite the Bitcoin loans, most of their money was in high quality bonds that had zero risk weights. But when their deposits went out the door and they had to sell assets and realize a billion-dollar net loss, they were left in a situation where an additional $19 million-dollar loss would but their capital below 5% and they would no longer be considered well capitalized.”
“Last week Silvergate announced that they had sold additional debt securities in January and February to repay the company’s outstanding advances from the Federal Home Loan Bank of San Francisco and that they ‘expect to record further losses related to the other-than-temporary impairment on the securities portfolio.’ These additional losses they said would ‘negatively impact the regulatory capital ratios of the company and could result in the bank being less than well-capitalized.” And that’s when Brunhilda strode on stage to give her farewell.
“This announcement caused the stock price to half that day and according to Bloomberg caused Coinbase, Galaxy, Paxos and other crypto firms to announce that they would stop accepting or initiating payments through Silvergate. These customers leaving were the final nail in the coffin, as they reduced deposits even further.”
“A bank run, on a real bank, caused by crypto related losses and crypto volatility.”
“Matt Levine at Bloomberg argues that one way to think about the rise and fall of Silvergate is that the crypto boom was at its heart a low-interest-rate phenomenon. People started speculating in crypto because interest rates were below the rate of inflation, and so Silvergate was hugely exposed to interest-rate risk simply because of its exposure to its crypto customers.”
“Rising interest rates caused the deposits to evaporate at the same time as the assets backing those deposits fell in value. Levine argues that (with hindsight), Silvergate’s risk management – a year ago – should have been laser-focused on the risk of rising interest rates crushing both its assets and its customers, and it should have hedged that risk one way or another.”
I know all this is long and a bit detailed and technical, but I wanted to point it out as an example of how a cascading chain of events (much like the Piper Alpha disaster) caused a failure, mainly how massive fraud on the basis of one crypto space player and rising interest rates ended up bankrupting a real bank in the real world.
Sunday and Monday this week, I gathered up all my dead branches from the ice storm along the curb in advance of Tuesday’s announced neighborhood-wide branch pickup. I know it’s going to take some time, but it’s Friday and I see no signs that brush has been cleared from anyone’s curbs…
He said ESG poses a threat to the American Economy and individual economic freedom, he further said it’s an attempt for corporate’s elite to discriminate against those who do follow a particular “ideological agenda.” His proposal will outlaw this.
“By applying arbitrary ESG financial metrics that serve no one except the companies that created them, elites are circumventing the ballot box to implement a radical ideological agenda. Through this legislation, we will protect the investments of Floridians and the ability of Floridians to participate in the economy,” DeSantis said, at the news conference.
Heh. “Federal District Court Judge Orders Illinois to Show Examples of Every Newly-Banned Firearm.” (Hat tip: Instapundit.)
Maybe they should spend more time on schools instead. “Not A Single Student Can Do Math At Grade Level In 53 Illinois Schools.”
“Judy Monro-Leighton, one of three women who accused now-Justice Brett Kavanaugh of sexual assault, was found to have lied during a congressional investigation and is now being charged with making materially false statements and obstruction.”
Nicaragua’s scumbag commie government sentences Roman Catholic bishop Roland Alvarez to 26 years in prison for “treason” for daring to stand up for Catholics and refusing to be exiled.
What began as a trickle is now a flood: the US government is using the banking sector to organize a sophisticated, widespread crackdown against the crypto industry. And the administration’s efforts are no secret: they’re expressed plainly in memos, regulatory guidance, and blog posts. However, the breadth of this plan — spanning virtually every financial regulator — as well as its highly coordinated nature, has even the most steely-eyed crypto veterans nervous that crypto businesses might end up completely unbanked, stablecoins may be stranded and unable to manage flows in and out of crypto, and exchanges might be shut off from the banking system entirely. Let’s dig in.
For crypto firms, obtaining access to the onshore banking system has always been a challenge. Even today, crypto startups struggle mightily to get banks, and only a handful of boutiques serve them. This is why stablecoins like Tether found popularity early on: to facilitate fiat settlement where the rails of traditional banking were unavailable. However, in recent weeks, the intensity of efforts to ringfence the entire crypto space and isolate it from the traditional banking system have ratcheted up significantly. Specifically, the Biden administration is now executing what appears to be a coordinated plan that spans multiple agencies to discourage banks from dealing with crypto firms. It applies to both traditional banks who would serve crypto clients, and crypto-first firms aiming to get bank charters. It includes the administration itself, influential members of Congress, the Fed, the FDIC, the OCC, and the DoJ. Here’s a recap of notable events concerning banks and the policy establishment in recent weeks:
On Dec. 6, Senators Elizabeth Warren, John Kennedy, and Roger Marshall send a letter to crypto-friendly bank Silvergate, scolding them for providing services to FTX and Alameda research, and lambasting them for failing to report suspicious activities associated with those clients
On Dec. 7, Signature (among the most active banks serving crypto clients) announces its intent to halve deposits ascribed to crypto clients — in other words, they’ll give customers their money back, then shut down their accounts — drawing its crypto deposits down from $23b at peak to $10b, and to exit its stablecoin business
On Jan. 3, the Fed, the FDIC, and the OCC release a joint statement on the risks to banks engaging with crypto, not explicitly banning banks’ ability to hold crypto or deal with crypto clients, but strongly discouraging them from doing so on a “safety and soundness” basis
On Jan. 9, Metropolitan Commercial Bank (one of the few banks that serve crypto clients) announces a total shutdown of its cryptoasset-related vertical.
More at the link. I’ve long been skeptical of cryptocurrency advocates assertion that crypto provides a useful alternative to government-backed fiat currency. But it sure looks like the federal government is acting like that’s the case…
An important message about eternal truths from well-known biologist Fred Rogers:
TRIGGER WARNING. ⚠️ This is the most upsetting thing you will see all weekend. pic.twitter.com/eVLPZ3J3RI
CRT-pushing commie Angela Davis finds out that one of her ancestors was on the Mayflower.
A British farmer reviews Clarkson’s Farm. He says despite obvious setup bits, a lot of it (like the unexpected catastrophes and intractable town council bureaucracy) rings true.
The rich world was a population column from [as opposed to a pyramid] 1945 to 1992, and with the end of the Cold War, the developing world became a column in 1992 until now. The problem is that this is all temporary, because birth rate keeps dropping. People keep living older and your column eventually inverts into an open pyramid upside down. And now you no longer have children, you no longer have a replacement generation at all, and there aren’t enough people in their 20s and 30s to buy everything, and there aren’t enough people in their 40s and 50s to pay for the retirees. So this decade was always going to be the decade that most of the advanced world moves into mass retirement, and the economic model collapses, and next decade was always going to be the decade that that happened to the developing world.
“The Chinese have jumped the ship and this is their last decade, too.”
“We now know that they’ve lied about their population statistics and they’re they over counted their population by over 100 million people, all of whom would have been born since the one child policy was adopted. So this is one of those places where they’ve got more people in their 60s and their 50s and their 40s and their 30s and their 20s.”
“Mao was concerned that as the country was modernizing, the birth rate wasn’t dropping fast enough, and that the young generation was literally going to eat the country alive. So they went through a breakneck urbanization program which destroyed the birth rate, at the same time they penalized anyone who wanted to have kids, and both of those at the same time have generated the demographic collapse we’re in now.”
The male to female sex ratio in China was bad before, and now it’s obviously worse.
“Without young people, we’ve seen their labor costs increase by a factor of 14 since the year 2000, so Mexican labor is now one-third the cost of Chinese labor. Their educational system focuses on memorization over skills, so despite a trillion dollars of investment in a bottomless supply of intellectual property theft, they really haven’t advanced technologically in the last 15 years. Mexican labor is probably about twice as skilled as Chinese labor now, even though it’s one-third the cost.”
“They’ve consolidated into an ethnic-based paranoid nationalistic cult of
personality, and it’s very difficult for the XI Administration to even run it, because it’s not an administration anymore no one wants to bring Xi information on anything.”
The Biden Administration has adopted the Trump Administration’s trade policies on China.
“They now have tech barricades that prevent the Chinese from buying the equipment, the tools or the software that’s necessary to make semiconductors. In fact, [Biden] went so far as to say any Americans working in the sector have to either quit or give up their American citizenship. Every single one of them either quit or was transferred abroad within 24 hours.”
“They’re completely dependent on the U.S Navy to access international trade, they are the most vulnerable country in the world right now. And based on how things go with Russia, we’re looking at a significant amount of raw materials falling off the map, specifically food and energy, and the Chinese are the world’s largest importer of both of those things. So there’s no version of this where China comes through looking good.”
“Say what you will about the Russian economy (it’s corrupt, it’s inefficient, it’s not very high value-add), but it’s a massive producer and exporter of food and energy. You put the sanctions that are on the Russians on Beijing and you get a de-industrialization collapse and a famine that kills 500 million people in under a year.”
“Even if the Chinese were able to capture Taiwan without firing a shot, it doesn’t solve anything for them. They’re still food importers, they’re still dependent on the United States, they’re still energy importers. And even if they take every single one of those semiconductor fab facilities intact, they don’t know how to operate them, because they can’t operate their own, their own are among the worst in the world.”
“One of the fun things about Russia versus China right now is that the Russian information security is so poor that American intelligence is literally listening on everything, but in China we can hear into the office but there are no conversations happening.” I suggest taking both these revelations with a few grains of salt. Maybe Zeihan has great sources in the intelligence community, or maybe Zeihan’s great sources are lying.
Plus more on how Xi has killed or exiled any possible challenger to his power, and how they’re now having a massive Flu Manchu outbreak. “Their overall health is worse than ours, diabetes as a percentage of the population is higher, they don’t have a critical care system like we have, and their hospitals are really their only line of defense.”
Next: Why EVs are a disaster.
“All kinds of people think I’m full of shit!”
Rogan: “What is your perspective on EVS?” Zeihan: “They’re not nearly
as good on carbon as people think. Most of the data that exists doesn’t take into the fact that most of this stuff is processed in China where it’s all coal doesn’t take [into account] the fact that most grids they run out are also majority fossil fuels. And that extends the break-even time for carbon from one year to either five or ten based on what model you’re talking. Cyber trucks are far worse than EVs, but the bigger problems we’re just not going to be able to make them much longer.”
To electrify everything “We need twice as much copper and four times as much chromium and four times as much nickel and ten times as much lithium, and so on. We have never, ever, in any decade in human history, doubled the amount of a mainline material production in ten years, ever, and we need all of this by 2030. No, it’s just not technically possible.”
Zeihan says California’s mandates for phasing out gasoline by 2035 aren’t quite as bad as they seem, as the bureaucracy has the ability to move the goal posts if they prove to be unfeasible. Pardon me if I’m not sold on the beneficent rationality of California’s hard left bureaucracy.
Speaking of things I’m skeptical of:
There is a fascinating discussion happening in the environmental community right now, because they’re being confronted with reality. So California and Germany have very similar Green Tech policies, but the Germans have spent three times as much as California, but are only getting about a fifth as much power. I don’t know if you’ve ever been to Germany, but the sun doesn’t shine in Germany. And now, with the Russians on the warpath and their clean-ish energy from natural gas going away, they’re going back to lignite coal in force. It was already their number one source of power. The idea that Germany’s green is ridiculous, because they rely on really, really dirty coal, now especially. But there’s now a conversation going on between the German environmentalists and the Californian environmentalists about why California, in relative terms of doing so well at this, while Germany is not. And the answer is simple geography, but that’s never been part of the conversation in the environmental community before. Now it is. They should have had this conversation 15-20 years ago, but they’re having it now. And as soon as they come to the conclusion, unwillingly but they’ll get there, that we have to choose where we put our copper and our lithium and our nickle, EVs are not going to make the cut.
This assumes that California environmentalists are susceptible to the sweet voice of reason, and that modern environmentalism isn’t half religion and half scam. “It is difficult to get a man to understand something when his salary depends upon his not understanding it.” California’s Democratic power establishment has shown an amazing propensity to impose radical solutions that bring obvious and immediate harm to people that are not them. Why should they worry about forcing other people to buy pricey EVs when they already have theirs?
Next up: The drug war, both here and in Mexico.
Rogan starts by noting that marijuana legalization in California led to cartels planting massive amounts of weed in national forests, and suddenly guys who were game wardens are now wearing tactical gear and carrying machine guns.
“I think the mafia is a great example for why you shouldn’t look for the silver bullet [of drug legalization], because, yes, that in the 1920s during prohibition, was one of the big reasons it got going, but the mafia didn’t waste any time in diversifying and neither have the cartels.”
“They’ve gotten into cargo theft and kidnapping and avocados and limes and real estate and local government.”
“Now the attractiveness of gutting them of some of their primary income. Should we look at that? Of course! But it’s not so simple as removing one and it just all stops.”
“The challenge we’re seeing in Mexico right now is that the, uh, the air quotes “good” cartel the, one that saw drugs as a business, is being broken up. If you remember El Chapo—” Rogan: “That’s the good cartel?” Zeihan: “Sinaloa cartel, yeah. He thought of himself as a Korean conglomerate president. So it was like ‘We smuggle drugs. That’s our business. You don’t mess with things that mess with the business. You don’t trip the old lady, you don’t steal her purse, you don’t shoot at the cops. These are people who live where we operate, we want them to be on our side, so maybe even throw a party every once in a while. You focus on the business.'”
“The replacement cartel is Jalisco New Generation, They’re led by a former Mexican military officer who thinks that rather than don’t shit where you sleep so that the people on your side whenever you move into a town, you shoot it up. You do kick over the old lady, you do take her purse, you make the people scared of you, that’s the point of this. Drug running is a side gig.”
“We are here to be powerful, and drug running is just one of the ways we make that happen. And he has taken the fight to every cartel and the Mexican government, and they’re in the process of trying to break into the United States.”
“El Chapo and the Sinaloa became the largest drug trafficking organization in America under the Obama Administration. And one of the reasons our birth rate went down, so far so fast is they basically either co-opted or killed American gangs. So they killed the people who were doing the killing. Not a lot of Americans got killed after that.” I think he meant to say murder rate.
“All of the other cartels control the access points in the United States, but
Jalisco New Generation now is challenging every single one of them trying to break through. And if they do, and they bring their business acumen, if you will north of the border, they’re going to start killing white chicks named Sheila in Phoenix and then we’re gonna have a very different conversation.”
“Sinaloa they co-opted the Hispanic gangs, especially the Mexican gangs, because there wasn’t a language barrier there, and they really targeted and gutted a lot of the African-American gangs. They took over drug smuggling and distribution from them to deny them income and then they just shot a lot of people…it was pretty much completed by the time we got to 2013.”
“Look at the violent crime rates in the United States, they’ve been trending down really significantly since about 2004 and the drop from 2004 to roughly 2014 was amazing. That’s largely Sinaloa.”
And now all the cartels are fighting and the murder rate in Mexico is skyrocketing.
He’s not a fan of legalizing cocaine:
Also says that cartels are now laundering money via marijuana dispensaries using the federal reserve.
And he’s not a fan of Crypto:
Bonus: “Maxine Waters is not exactly the brightest person in congress.”
Democrats being soft on criminals, pedophiles and common sense highlights this week’s LinkSwarm.
Man, there sure seems to be a lot of funny number counting going on in Philadelphia.
Regular readers are well aware that back in July, Zero Hedge first (long before it became a running theme among so-called “macro experts”) pointed out that a gaping 1+ million job differential had opened up between the closely-watched and market-impacting, if easily gamed and manipulated, Establishment Survey and the far more accurate if volatile, Household Survey – the two core components of the monthly non-farm payrolls report.
We first described this divergence in early July, when looking at the June payrolls data, we found that the gap between the Housing and Establishment Surveys had blown out to 1.5 million starting in March when “something snapped.” We described this in “Something Snaps In The US Labor Market: Full, Part-Time Workers Plunge As Multiple Jobholders Soar.”
Since then the difference only got worse, and culminated earlier this month when the gap between the Establishment and Household surveys for the November dataset nearly doubled to a whopping 2.7 million jobs, a bifurcation which we described in “Something Is Rigged: Unexplained, Record 2.7 Million Jobs Gap Emerges In Broken Payrolls Report.”
Snip.
We bring all this up again because late on Dec 13, the Philadelphia Fed published something shocking: as part of the regional Fed’s quarterly reassessment of payrolls in the form of an “early benchmark revision of state payroll employment”, the Philly Fed confirmed what we have been saying since July, namely that US payrolls are overstated by at least 1.1 million, and likely much more!
And the correction came after the midterms! What are the odds?
The Royal Bahamas Police Force took the failed financial tech entrepreneur into custody after the U.S. filed criminal charges against him, according to a press statement. FTX, which Bankman-Fried founded, imploded in November, costing investors millions of dollars in losses. The fallen businessman has been accused of misusing customer funds deposited with FTX to artificially prop up another one of his enterprises: a crypto hedge fund, Alameda Research, which he operated simultaneously while seemingly evading financial ethics scrutiny.
Speaking of abusing children: “Former CNN Producer Pleads Guilty In Pedo Scandal. Former CNN producer John Griffin, who worked ‘shoulder to shoulder’ with Chris Cuomo, pleaded guilty on Monday in federal court to using interstate commerce to entice and coerce a 9-year-old girl to engage in sexual activity as his Vermont ski house. This is a different CNN pedophile than Jake Tapper’s former producer, Rick Saleeby, who resigned after it emerged that he solicited sexually explicit photos of an underage girl.”
The mother of an 11-year-old rape victim is suing a George-Soros backed prosecutor in Virginia who let the boy’s rapist walk free, alleging the prosecutor’s actions violated the minor’s civil rights and made him fear for his physical safety.
Amber Reel in November filed the federal lawsuit on behalf of her son after Fairfax County commonwealth’s attorney Steve Descano (D.) let the rapist walk. Court filings show Descano was months late in sharing necessary evidence before a September trial, dooming the case and forcing his office to enter into a lesser plea deal with the rapist the same month. Ronnie Reel, who was released on time served, had faced life in prison for forcibly sodomizing the minor. Reel is the victim’s uncle.
This is the second high-profile case in the last month where the Soros prosecutor freed a dangerous offender. In December, Descano struck a plea deal that would clear the record of a man who fired his gun into a crowded Virginia bar. Soros donated more than half a million dollars to Descano’s 2019 campaign.
A grand jury had already indicted Reel in February for sodomy and aggravated sexual battery, and the case was set for trial in September. But Descano’s office didn’t share evidence with the public defender before trial, bungling Reel’s prosecution with its “woefully, woefully missed” deadlines. The case’s presiding judge said Descano’s office did a “disservice to the victim” and was “very concerning to the court.”
Because he dodged a felony sex crime conviction, Reel won’t have to register as a sex offender and won’t be barred from holding jobs in schools or other places that would put him near children. The victim and his mother in their suit say Descano’s “deliberate indifference represents egregious conduct that is shocking to the conscience.”
Speaking of pedophile friendly Democrats: “During the hearing before the House Oversight and Reform Committee, California [Democratic] Rep. Katie Porter asserted that the phrase “groomer” is a “lie” used to maliciously discriminate against LGBTQ+ people and make them appear to be a “threat.” “You know, this allegation of ‘groomer’ and ‘pedophile,’ it is alleging that a person is criminal somehow and engaged in criminal acts merely because of their gender identity, their sexual orientation, their gender identity.” Yes, if your “gender identity” is “I like to have sex with children,” then yes, you’re a pedophile, and if you tell elementary school children what sort of sex you have, then yes, you’re a groomer.
Former state Sen. Kirk Watson (D-Austin) will be the next mayor of Austin about two decades after he left that same office in the early aughts.
He defeated state Rep. Celia Israel (D-Austin) by a slim margin after finishing second in the general election. He’ll serve as mayor for the next two years before having to seek re-election in 2024 due to redistricting.
Watson lost Travis County, the city’s largest portion, by 17 votes while winning Williamson county by 881 and Hays County by 22. During the general and runoff races, he outspent Israel by a wide margin.
The two candidates sparred over housing and homeless policy during the general election and the runoff. About one-third of the voting population turned out to vote in the runoff versus the November 8 general.
Watson will take over for Mayor Steve Adler after his self-described “disruptive” tenure marked by a lingering homelessness problem, public fallout and a declining relationship with the police department, and a cumbersome and increasingly costly light rail transit project.
The United States has always had kind of a friends and family plan that it sells military gear to, but it has always reserved the very top top top stuff for itself and the Brits. Well, in this calendar year we have already seen the first two exceptions to that policy being made. The United States is sending air-launch cruise missiles and nuclear-powered submarines to the Australians. And now we’re giving Tomahawks to the Japanese, giving both of these countries the ability to independently destroy China’s economic links to the wider world without any additional help from the United States. And this sudden proliferation of countries that can now bring China to their knees independently, this is arguably the biggest strategic development of the Year, even more so than the Ukraine war, because it takes what has become the world’s second largest economy and puts it completely at the mercy of the domestic politics of a third party, and now a fourth party.
Oberlin College finally pays their judgment to Gibson’s Bakery. “The $25 million verdict plus interest and attorney’s fees resulted in an almost $32 million judgment, with interest running at about $4000 per day since June 2019. In all, over $36 million was owed.” Cudos to William A. Jacobson at Legal Insurrection for his thorough, ongoing coverage of this story from beginning to end.
F-35B fighter crashes in the Metroplex. Fortunately the pilot safely ejected, and it appears that the airplane (which was undergoing testing for Lockheed) looks recoverable. To my untrained eye it looks like a stuck throttle.
Let me start out by explaining how cryptocurrency works: You exchange your money for digital strings of numbers based on math you don’t understand, for one of the following reasons:
A. You believe those digital strings of numbers will be worth more money at some point in the future.
B. You want to buy drugs online in a theoretically untraceable manner (said theoretical untraceability being a key property of the math you don’t understand).
C. You want to place your money beyond the reach of your national government.
There are exceptions to the above (say, you’re mining your own cryptocurrency, or you know enough math to understand exactly the mathematical properties of how blockchain-based cryptocurrency works), but I’m going to guess that one of the three above use cases apply to 95% people using cryptocurrency.
I’m somewhat sympathetic to C, and even understand how A might be tempting (hey, crypto has dropped so much I might buy a couple thousand worth of Dogecoin, just for the hell of it, as a pure speculation play), but cryptocurrencies as a whole are not a proven store of worth on par with, say, a bar of gold, a share Apple stock, or a
Is cryptocurrency money? Sort of.
Cryptocurrency offers something that sometimes acts like money, offers anonymity like money, and offers an alternative to government-backed fiat currencies. Instead of being backed by the full faith and credit of the federal government, cryptocurrency is backed by the full faith of millions of technologically savvy individuals who believe the math is sound.
The math may indeed be sound, but that didn’t save it from the loss of investor confidence of the Crypto Winter we’re now experiencing. And that winter is absolutely slamming the business models of people who sought to make crypto more like other forms of money.
Enter Sam Bankman-Fried and FTX, whose crypto empire just collapsed.
Amid all the jubilation and gloating by Joe Biden, Chuck Schumer and pals over the Democrats’ better-than-expected showing in the midterms comes a disturbing story that may explain something about how they won such a curious election.
Biden’s second-biggest donor, cryptocurrency billionaire wunderkind Sam Bankman-Fried, a k a SBF, saw his business file for bankruptcy days after the election, but not before pumping $40 million into the Democratic Party to spend on “get-out-the-vote” and other shadowy ballot-harvesting mechanics for the midterms.
The shambolic 30-year-old whiz kid, once said to have been worth $16 billion, had spent $10 million helping get Biden elected in 2020.
SBF’s mother, Stanford law professor Barbara Fried, also is co-founder of left-wing political action committee Mind The Gap, which has raised a reported $140 million to help Democrats win elections through the same “get-out-the-vote” grift.
Tree. Acorn. Distances.
A more unlikely billionaire you could not find — and of course his money was built on thin air. A math genius with poor social skills, SBF reportedly lived in a “polycule” — a polyamorous relationship with multiple people — in a luxury penthouse with about 10 co-workers in the tax haven of the Bahamas, where his collapsed crypto exchange FTX was headquartered.
Otherwise, he was sleeping on beanbags in his office, eating vegan fries and, according to his own Twitter feed, popping amphetamines and sleeping pills to regulate his chaotic sleeping habits.
Just the sort of person you want to entrust billions in currency to!
Now Reuters is reporting that between $1 billion and $2 billion of customer funds have vanished from FTX, conveniently after the Democrats safely spent his money.
At last report, SBF and his mysterious co-founder, Gary Wang, were being held “under supervision” by Bahamian authorities after reportedly planning to flee to Dubai, according to fintech publication Cointelegraph.
It is a stunning fall to earth. The financial media and big investors have feted the young billionaire as a saint who shunned earthly pleasures like Lamborghinis and Rolexes, but lived only to give away all his money and make the world a better place.
He was the most famous millennial adherent of a cult known as “Effective Altruism,” which originated at Oxford University, found fertile ground in Silicon Valley — and now has gone down in flames along with him.
“Indulgences! Buy your Social Justice Indulgences here!”
EA is a disguised form of socialism, because all the “good” that is done just happens to match up perfectly with the left’s obsessions, whether climate change, social justice, equity, banning meat or his favorite, “pandemic preparedness.”
In a Nas Daily online video, an awkward Bankman-Fried was featured this year as a role model of altruism for young people: “Sam is not a traditional billionaire because he believes in the concept of ‘earn to give’ … Next decade he will probably give away more than $10 million … He wants to get rich in order to impact the world and change it.”
Some detail snipped.
The sinister neo-socialists at the World Economic Forum (WEF) loved SBF so much, they made FTX a “corporate partner” — but that page on the WEF website has vanished in the last 48 hours, leaving an error message.
Venture capital firm Sequoia was a big backer, investing over $200 million in SBF, a lot of which he then invested back in Sequoia, whose chairman and managing partner Michael Moritz is a big donor to the Dems as well as to anti-Trump hate group the Lincoln Project, and reportedly is a neighbor of Nancy Pelosi in San Francisco.
Justin Trudeau, the prick that keeps pricking, has decided that the risk of him looking impotent is such an astounding threat to the nation that it requires invoking the never-before-used Emergencies Act to end the vaccine mandate protests.
The Emergencies Act gives powers to the federal government:
the ability to “regulate or prohibit public assembly that may reasonably be expected to lead to a breach of the peace, travel, or the use of property”
the ability to “designate and secure protected places”
the ability to “assume the control, restoration and maintenance of public utilities and services”
the ability to “authorize or direct the provision of essential services and the provision of reasonable compensation”
the ability to “impose on summary conviction a fine not exceeding $500 or imprisonment not exceeding six months or both, or on indictment, a fine not exceeding $5,000 or imprisonment not exceeding five years, or both, for any breach of an order or regulation”
Trudeau has to meet with his provincial cabinet. Then he will release a proclamation.
As soon as Trudeau invokes the Emergencies Act it will go into effect. However, Parliament must receive a motion for the emergency within seven days.
The motion for the emergency must survive the House of Commons and the Senate. If it does not then it will end.
Canada Deputy Prime Minister and Minister for Finance Chrystia Freeland has announced the government is broadening the scope of the country’s anti-money laundering monitoring and terrorist financing laws to cover crowdfunding platforms and the payment service providers they use.
“These changes cover all forms of transactions, including digital assets such as crypto currencies,” she announced during a press conference on Monday night.
“The illegal blockades have highlighted the fact that crowdfunding platforms and some of the payment service providers they use are not fully captured under the proceeds of crime and terrorist financing act.
“Our banks and financial institutions are already obligated to report the Financial Transactions and Reports Analysis Centre of Canada or FINTRAC. As of today, all crowdfunding platforms and the payment service providers they use must register with FINTRAC, and they must report large and suspicious transactions to FINTRAC.”
How quickly government power went from “We’re only taking money from druglords and terrorists” to “We’re tracking all transactions of peaceful protestors.” Imagine if the U.S. government announced it was going to freeze the bank accounts and impound the cars of everyone marching in Selma. That’s what’s going on in Canada.
All over a vaccine mandate that was never enacted into law by Canada’s parliament.
It may be time for all Canadians, not just those involved in the protest, to get their money out of Canada.
4chan is calling for a run on Canadian banks in response to Trudeau’s crackdowns
The Emergencies Act can only be invoked when a situation "seriously threatens the ability of the Government of Canada to preserve the sovereignty, security and territorial integrity of Canada" & when the situation "cannot be effectively dealt with under any other law of Canada."
— Canadian Civil Liberties Association (@cancivlib) February 15, 2022
Governments regularly deal with difficult situations, and do so using powers granted to them by democratically elected representatives. Emergency legislation should not be normalized. It threatens our democracy and our civil liberties. #cdnpoli
— Canadian Civil Liberties Association (@cancivlib) February 15, 2022
A few more tweets:
It went from "small fringe minority" to "Holy shit I need absolute power to quell these huge protests" pretty damn quick.
John Kerry’s commie connection. “Kerry’s latest filing with the Office of Government Ethics shows Teresa Kerry benefits from an investment of at least $1 million in a hedge fund specializing in private partnerships with Chinese government-controlled funds.” (Hat tip: Stephen Green at Instapundit.)
The Indictment of Hillary Clinton campaign lawyer Michael Sussman for allegedly lying to the FBI has a lot of people grumbling about how long it took prosecutor John Durham to finally come up with an indictment of someone with regard to the Russia collusion hoax. And even then, while Sussman was an important lawyer at an important Democrat operative law firm, his indictment has a “that’s it?” feel to it.
But, the 27-page Indictment is a wealth of information, and hopefully a roadmap to wider and more substantial prosecutions (you can’t take my hope away!). What the indictment demonstrates is that the Russia collusion claim leveled against Donald Trump and the Trump campaign was a fabrication of Hillary Clinton operatives who peddled the fraud to the media and FBI, allowing Clinton to use the media reports in the campaign against Trump.
Much like the fabricated Steele Dossier, also paid for and arranged by Clinton operatives, Hillary Clinton and Clintonworld perpetrated a massive fraud on the American public which not only manipulated the election process but also froze the Trump presidency and nearly paralyzed the nation politically for years.
We have had some pretty terrible politicians in our lifetime, and it’s always dangerous to say “the worst” — but the Russia collusion hoax fabricated by Hillary Clinton operatives proves beyond little doubt that Hillary Clinton is the most systemically manipulative politician of our lifetime.
Forget the MSM spin: Here’s what the Maricopa County audit really found:
None of the various systems related to elections had numbers that would balance and agree with each other. In some cases, these differences were significant.
There appears to be many ballots cast from individuals who had moved prior to the election.
Files were missing from the Election Management System (EMS) Server.
Ballot images on the EMS were corrupt or missing.
Logs appeared to be intentionally rolled over, and all the data in the database related to the 2020 General Election had been fully cleared.
On the ballot side, batches were not always clearly delineated, duplicated ballots were missing the required serial numbers, originals were duplicated more than once, and the Auditors were never provided Chain‐of‐ Custody documentation for the ballots for the time‐period prior to the ballot’s movement into the Auditors’ care. This all increased the complexity and difficulty in properly auditing the results; and added ambiguity into the final conclusions.
That’s the thing about a Missing White Woman story — the damsel-in-distress angle only works, in terms of TV news ratings, if the missing woman is young and attractive, preferably blonde. Males can and do go missing, but those disappearances never dominate national news. It’s always a woman, and a young, attractive woman — if she’s old, fat or ugly, nobody cares if she goes missing. But the nubile blonde? Oh, yeah, that’s nationwide headline stuff, because she’s Prime Rape Bait, and sex is the secret ingredient in the Missing White Woman story.
Beyond the cynical calculations of ratings-hungry TV news producers, however, what’s really wrong with Missing White Woman Syndrome is not the kind of “social justice” concerns Joy Reid is talking about. No, what’s wrong is that it feeds the public’s distorted ideas about crime.
How many people are murdered in America annually? Nearly 14,000 in 2019, according to the FBI, and about 78% of the victims were male. In terms of statistical risk, then, males were nearly four times more likely to be murdered than women, but how many of those murdered men become national news? Not many. And how many murder victims are white? About 5,800 in 2019 — 42% of the total — whereas blacks were 54% of the total murders. There were 1,759 white women murdered in 2019 — 12.6% of the total, according to the FBI — compared to 6,446 black males, 46.3% of the total. So the death of Gabby Petito was anomalous, a comparative rarity in the overall crime situation in America.
A blonde, blue-eyed “social media influencer” is not typical of murder victims, who are disproportionately male and black. During the month of August, when Gabby and her boyfriend were on their excursion across the West, 87 people were killed and 424 were wounded in Chicago. Did any of those Chicago victims make national news? Well, about 83% of the victims in Chicago were black, and none were blonde, blue-eyed 22-year-old “social media influencers.” Not newsworthy, you see?
The selectivity of the news media in deciding which murders deserve national attention is a sort of bias that most people never notice. Why does the death of one black in police custody become a cause célèbre, while the vast majority of murdered black men — about 125 a week, on average — never get any national media attention? Because the death of George Floyd fit a specific political narrative. And why does the disappearance of a blonde girl with an Instagram account get hourly updates on the cable-news networks? Because it’s a convenient distraction from the disastrous failure of Joe Biden’s presidency.
In fact, there were at least 46 reports of swollen balls (and another 76 of testicular pain) in the VAERS database of adverse reactions.
People who wanted Biden to win to see a “return to normal” are being gravely disappointed:
In traditional Washington fashion, Biden has ignored that message voters sent and delivered the opposite. In less than seven months, we have found that Biden is far from that empathetic persona he has crafted over the years, and we have not returned to anything near normal.
And Biden lies. Not tiny little lies, but ones that affect events that are deeply tragic. Last week, he told leaders in the Jewish community that he visited the Tree of Life Synagogue in Pittsburgh, where 11 people were slaughtered during a service in 2018.
Synagogue officials said he was never there.
One can only guess he said this as an attempt to continue the manufactured empathy he allegedly possesses. Forgetfulness is not an excuse anyone should accept.
Nor is it normal.
In fact, the only thing the Biden presidency has done most effectively is prove that we are not on the path to normality under his administration.
From the uneven overall economy to soaring inflation to the humiliating debacle in Afghanistan, and from Biden’s insistence to spend our money like a drunken sailor to the crisis at the Mexican border that he has blatantly ignored and to how he has politicized the pandemic: None of this is normal, none of this promotes stability, none of this is what an exhausted electorate bargained for.
Over the past 18 months our overall sales have increased as follows:
590% increase in revenue
604% increase in transactions
271% increase in site traffic
77% increase in conversion rate
This data is from February 23, 2020 – August 23, 2021, when compared to the previous 18 months (August 24, 2018 – February 22, 2020).
Leading the way: Texas, with a 736% increase.
9mm was the most popular ammunition just about everywhere, followed by .223 and 5.56 NATO.
“Maspeth High School [NYC] created fake classes, awarded bogus credits, and fixed grades to push students to graduate — ‘even if the diploma was not worth the paper on which it was printed,’ an explosive investigative report charges. Principal Khurshid Abdul-Mutakabbir demanded that teachers pass students no matter how little they learned, says the 32-page report by the Special Commissioner of Investigation for city schools, Anastasia Coleman.”
Alexandria Ocasio Cortez’s gambit to have funding for Israel’s Iron Dome missile defense system stripped backfires, with the funding passing 420-9. Now there’s principled case to be made against the U.S. funding Iron Dome, as part of a broader initiative to eliminate all foreign aid because it’s not an enumerated responsibility of the federal government, because we’re already running huge budget deficits, and because Israel is a prosperous, modern country that shouldn’t need our charity. But we all know that not why The Squad presented this bill.
I think the Squad’s biggest problem with the Iron Dome is that it keeps people from killing Jews.
Word is that pick isn’t popular with the rank and file:
@austin_police officers voted 90% to 10% for an outside candidate over a career insider for chief, yet Cronk/Council gave the insider the nod. Tell me again who is protecting the status quo? #atxcouncil has forfeited the right to say APD officers are the ones resisting change. pic.twitter.com/RwnBOHptmv
In the UK: “Our eco-obsessed government is sleepwalking into an energy crisis….we could be facing a hard winter of higher energy bills and even blackouts.”
50-64 years: 106,674 (.27% of total cases) 65-74 years: 144,020 (.36% of total cases) 75-84 years: 173,655 (.43% of total cases) 85+ years: 185,188 (.46% of total cases)
50-64 years: 106,674 (.27% of total cases) 65-74 years: 144,020 (.36% of total cases) 75-84 years: 173,655 (.43% of total cases) 85+ years: 185,188 (.46% of total cases)
Islamic terrorist dirtnapped in Indonesia. “The military earlier said the militants killed late Saturday were Ali Kalora, leader of the East Indonesia Mujahideen network that has claimed several killings of police officers and minority Christians, and another suspected extremist, Jaka Ramadan, also known as Ikrima.” (Hat tip: Rantburg.)
Our current moment is often described as a “racial reckoning.” In reality, what this often means is that a narrative about Black victimization has gone mainstream. We hear endlessly about systemic racism, white supremacy, the black/white income gap, and police brutality. So powerful an ideology has this narrative become that those of us who pose a credible counter-narrative—black anti-woke writers, for example—frequently find our words being misconstrued in an effort to stanch their impact.
This doesn’t happen to everyone who opposes the Critical Social Justice narrative of black victimization. White dissenters are simply called “racist” while many black dissenters are considered tragic victims of internalized racism. But things get ugly when woke Critical Social Justice proponents encounter a certain kind of black person who does not align with their preferred victim narrative and instead emphasizes his or her own individuality or self-regard. Such people present a threat to the woke narrative, since that narrative insists that all black people are victims of white supremacy, meaning anyone who insists on their individuality and their own power proves the falsity of that victim narrative; if the woke narrative were true, such people should not be able to exist.
Which means that when we claim to exist, antiracist woke warriors need to erase us, using a logical fallacy I call “erase and replace.” Erase and replace is a combination of the strawman and ad hominem logical fallacies. The move involves taking the argument someone is making and substituting it for one that fits more neatly into the woke victim narrative by specifically targeting the character of the challenger—since it is, in part, their character that is the greatest challenge.
“Chris Cuomo accused of sexually harassing former boss at 2005 party.” “A former ABC executive producer has accused Chris Cuomo of sexually harassing her at a 2005 work party after he grabbed her butt in front of her husband and co-workers.” If she was his boss, does that technically count as sexual harassment? In New York, I believe such an offense would fall under the statute for “forcible touching,” which is a class A misdemeanor. Do you think that this is coming out now because, with his brother out of office, Fredo is no longer of any particular political use to CNN?
ACLU alters Ruth Bader Ginsberg’s words to eliminate #Wrongthink.
A major leak containing a register with the details of nearly two million CCP members has occurred – exposing members who are now working all over the world, while also lifting the lid on how the party operates under Xi Jinping, says Sharri Markson.
Ms Markson said the leak is a register with the details of Communist Party members, including their names, party position, birthday, national ID number and ethnicity.
“It is believed to be the first leak of its kind in the world,” the Sky News host said.
“What’s amazing about this database is not just that it exposes people who are members of the communist party, and who are now living and working all over the world, from Australia to the US to the UK,” Ms Markson said.
“But it’s amazing because it lifts the lid on how the party operates under President and Chairman Xi Jinping”.
Ms Markson said the leak demonstrates party branches are embedded in some of the world’s biggest companies and even inside government agencies.
“Communist party branches have been set up inside western companies, allowing the infiltration of those companies by CCP members – who, if called on, are answerable directly to the communist party, to the Chairman, the president himself,” she said.
“Along with the personal identifying details of 1.95 million communist party members, mostly from Shanghai, there are also the details of 79,000 communist party branches, many of them inside companies”.
I’ve poked around a bit to find a copy of that database, but all I could locate was an excerpt featuring the first 5,000 names or so. If anyone knows where I can find the full list, let me know in the comments.
Here’s a story so strange I wanted to turn it into a separate post, but details remain too murky: Fabless chip designer Arm Holdings fired the head of its Chinese business unit, but he’s refusing to leave:
Arm Ltd., the chip designer owned by SoftBank Group Corp., accused the ousted head of its China joint venture of hurting its business there, escalating a dispute that’s becoming a test of Beijing’s willingness to protect foreign investment in the world’s second-largest economy.
The U.K. chip giant in June announced it was firing Allen Wu, the head of its Chinese unit, over undisclosed breaches of conduct, but the executive has refused to step down and remains in control of the strategically important operation. Rather than the peaceful, rapid resolution that both sides have said they want, the situation has deteriorated.
Wu has hired his own security and won’t let representatives of Arm Ltd. or his board on the premises, said a person familiar with the situation. He’s refused to hold a planned event to connect Chinese chipmakers with Arm Ltd. and avoided negotiations despite public statements to the contrary, said the person, who asked not to be named.
Wu is “propagating false information and creating a culture of fear and confusion among Arm China employees,” the U.K.-based company said in a statement. “Allen’s focus on his own self-preservation has also put China semiconductor innovation at risk as he has attempted to block the critical communication and support our China partners require from Arm for ongoing and future chip designs.”
Arm China disputed the claims in an emailed response to queries, adding that Wu was open to talks and there have been no disruptions in business engagement between Arm Ltd. and its China clients.China is the largest market for semiconductors and the U.K. firm relies on Arm China to conduct business with local customers, including Huawei Technologies Co. The country accounts for a large proportion of the company’s global revenue and resolving the conflict will be crucial to SoftBank’s reported plans to sell Arm, a lynchpin in the global smartphone and computing industry that the Japanese firm bought for $32 billion in 2016.
In early June, Arm China’s board – which includes representatives from Arm Ltd. and Chinese investors – ousted Wu for setting up an investing firm that competes with its own businesses there. He refused to accept the decision, saying it was invalid and has remained in control at Arm China’s headquarters in Shenzhen.
The intricacies of Chinese rules confer an advantage to Wu as the holder of key registration documents. As the legal representative of Arm China, Wu holds the company’s registration documents and the company seal, or stamp. Changing the legal representative requires taking possession of the company stamp — something Wu has refused to give up.
It was once an accepted truth that China’s increased economic trade and participation in international bodies such as the World Trade Organization would benefit everyone.
China and its citizens would benefit through the jobs and wealth earned from their vast export market. Americans and Europeans would benefit from access to an ever-greater array of ever-cheaper goods. Asian, African, and other American nations would benefit from access to both sides of this market and the incentive to replicate a version of China’s export model. And the world’s democracies, the cornerstones of the post-Cold War international order, would benefit from China’s recognition that it would gain more by abiding the rules of the game than by breaking them.
To borrow from Shakespeare, “the jest of the truth savors but of shallow wit, now that thousands weep more than did celebrate it.”
The weeping is real. Each week brings us increasingly horrific stories of the suffering endured by China’s already impoverished Uighur population. More than 2 million of these innocent citizens have been forced into concentration camps over the past decade. They have been indoctrinated to believe that there is no ideology of value save that of the Communist Party and its god-emperor Xi Jinping. Some have been forcibly sterilized, others sent far from their homes and families. As reported just this month, hundreds of thousands of Uighurs are forced into annual servitude as cotton pickers.
There’s a defining lesson here. China was supposed to be a top partner to the liberal international order. Instead, it is now taking inspiration from the Antebellum South’s slave economy, using forced labor in support of an unaccountable elite. Even were it not beholden to China, Hollywood could not invent a better example than the Uighurs’ plight to expose the lie that China’s economic development would usher in a kinder and gentler policy on its part.
Of course, Hollywood’s pathetic deference to Beijing isn’t a solitary American corporate story. It is the story. Instead of markets leading to more economic and political freedom in China, they have led major U.S. corporations to self-censor in order to gain access to Chinese consumers and their cheap labor. As with the NBA, which rightly cares a great deal about black lives but apparently not one iota about Uighur lives, major corporations such as Disney, Dell, and Walmart deal with China even if they must do so with terrible strings attached.
Beijing is explicit in its expectation that trade opportunities come with the price of silent acquiescence. Where the Chinese Communist Party signs treaties — whether the rules of the WTO, promises on intellectual property regimes, or carbon emissions targets — its pledges must be greeted only with applause from the West, never with any enforcement or demands that Xi be held to his word.
US carriers and telecommunications companies receiving Universal Service funding are now required to remove all Huawei technology, by order of the federal government.
The US Federal Communications Commission has ordered certain carriers to “rip and replace” all equipment produced by Huawei. It follows continuing investigations into claims that Huawei represents a threat to national security, and Huawei’s application for a review of a similar ruling by the Public Safety and Homeland Security Bureau in June.
“A laundry list of evidence before us compels this result,” said FCC chairman Ajit Pal in a statement. “But to summarize some of the main points, Huawei has a long and well-documented history of close ties to the Chinese military and intelligence communities, as well as the Chinese Communist Party, at every level of the company— all the way up to its founder.”
“Huawei is subject to sweeping Chinese intelligence laws compelling Huawei’s assistance and cooperation with Chinese intelligence services and forbidding the disclosure of that assistance,” he continued. “Moreover, the concerns about Huawei aren’t just hypothetical: Independent entities have identified numerous security vulnerabilities in Huawei equipment and found it to be less secure than that of other companies— perhaps deliberately so.”
Speaking of crackdowns, President Donald Trump’s administration has added more Chinese companies to the blacklist:
The Trump administration is poised to add China’s top chipmaker SMIC and national offshore oil and gas producer CNOOC to a blacklist of alleged Chinese military companies, Reuters reported citing a document and sources, curbing their access to U.S. investors and escalating tensions with Beijing.
The latest crackdown comes after a report from Reuters earlier this month that the Department of Defense (DOD) was planning to designate four more Chinese companies as owned or controlled by the Chinese military, bringing the number of Chinese companies affected to 35. A recent executive order issued by President Donald Trump would prevent U.S. investors from buying securities of the listed firms starting late next year.
It was not immediately clear when the new tranche, would be published in the Federal Register. But the list comprises China Construction Technology Co Ltd and China International Engineering Consulting Corp, in addition to Semiconductor Manufacturing International Corp (SMIC) and China National Offshore Oil Corp (CNOOC), Reuters reported.
On paper the Chinese army looks pretty impressive, with 78 combat brigades and nearly as many specialized brigades. Over the last decade the Chinese army has been converting its divisions to brigades, many of them independent brigades like the American Brigade combat teams. That conversion is still underway, although by now nearly all the regiments that formerly comprised the major subunits of divisions have been converted to brigades.
The task of turning all those new brigades into well-equipped and trained ones is still underway. There are three types of combat brigades. The most potent is the heavy brigade, each with about a hundred tanks and dozens of tracked IFVs (infantry fighting vehicles) plus detachments of engineers and other specialists. The problem with these heavy brigades is that not all of them have the latest tanks. China has not built enough of its most modern tank to replace all the older models. As more of the latest tank enter service heavy brigades receive them and have to go through months of training to learn how to get the most out of them.
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The major problem with the army is that all the elite units (special operations and airborne) as well as key units stationed in the capital and a few other places have few conscripts. Nearly all the conscripts are assigned to the combat brigades and the support brigades assigned to each of the 13 Group Armies. Units with conscripts spend about half the year training the new ones and if there is a war these units would, half the time, have a large portion of their troops poorly trained and not fully integrated into the unit. This is a major problem for combat units that depend on well-trained troops who have been with their units long enough for commanders to know what they can get out of them.
As China pushes to become a blue-water power, nuclear-powered submarines are critically important to Beijing’s plan. Historically the Chinese Navy’s (PLAN) nuclear-powered submarine fleet has been constrained by its limited construction capacity. There is only one shipyard in the country up to the task. But that yard has been undergoing a massive enlargement. And now, recent satellite imagery suggests an additional capacity expansion.
China’s nuclear-powered submarine fleet was already expected to get much larger in the coming years. This latest development suggests that China could pump out submarines at an even greater rate.
Just how many nuclear submarines China will build over the next ten years is a hot topic. The Office of Naval Intelligence (ONI) recently forecast China’s submarine fleet to grow by six nuclear-powered attack submarines by 2030. Other observers, such as retired Capt. James Fanell who was Director of Intelligence and Information Operations for the U.S. Navy’s Pacific Fleet, place their estimates even higher.
A senior Chinese People’s Liberation Army officer, Lt. Gen. He Lei, penned an article explaining why China’s Korean War experience should guide its modern military strategy toward the United States.
The executive officer of the PLA’s Academy of Military Science, He is a known hard-liner on Taiwan and the U.S. In his present assignment, the general is responsible for training PLA officers and strategy development. His words carry weight both for what they say about evolving PLA doctrine and their influence on Beijing’s Central Military Commission. His arguments are certainly forward-leaning, referencing the PLA’s rising expectation that it will have to fight a near-term war with either the U.S., Taiwan, or both.
Beginning with a creative history of the Korean War, He explains that Mao Zedong’s deployment of the PLA against the U.S. military in North Korea shattered “the myth that U.S. imperialism is invincible.” Here, we see a presentation of the U.S. military as a force that can be both contested and defeated. The centrality of the Korean War to the Chinese military psyche takes on significant importance in the context of three factors. First, the war is seen as a necessary defense of the motherland against a great external threat. Second, the PLA has limited post-Korean War experience of major conflict. Third, China views the outcome of that war as being broadly in its favor. Taken together, He thus uses the Korean War to reinforce the idea that China can take on a more powerful foe and triumph.
China’s military might be shocked to find America’s military a wee bit more advanced and prepared than it was in 1950…
“China forced hundreds of thousands of children in Xinjiang, where the majority of the population belongs to the ethnic Uyghur minority, into ‘boarding schools‘ as they lost their parents to communist concentration camps.”
More than half a million Tibetan farmers and pastoralists have been placed in military training facilities to be turned into wage workers controlled by the authorities. This model replicates the one used in Xinjiang internment camps where more than a million Uyghur Muslims are imprisoned and indoctrinated.
A study by the Australian Strategic Policy Institute shows that the Chinese regime runs 380 “concentration camps” in the Xinjiang autonomous region. According to the Chinese Communist Party, Tibetans are a “lazy people” who need to be reprogrammed. To this end, Chinese leaders want to reduce the “negative influence” of the Buddhist religion.
The FBI is warning law-enforcement agencies to beware of cooperating with a Chinese government campaign to coerce U.S. residents to return to China to face criminal charges, according to a counterintelligence bulletin obtained by Yahoo News.
The bulletin comes after eight people, including a former New York Police Department officer, were indicted on charges of acting as illegal agents for Beijing.
“State and local public safety personnel should be aware that Chinese Government officials, such as diplomats and officials with China’s primary law enforcement agency, the Ministry of Public Security (MPS), may seek assistance to obtain sensitive US law enforcement or non-public personally identifiable information on individuals of interest,” which is marked for official use only and was distributed to law enforcement agencies around the country.
The warning concerns China’s long-standing policy of reaching beyond its borders to target people it accuses of financial crimes, even if they are permanently living abroad. The repatriations, often coerced by blackmail or threats, are part of Beijing’s anti-corruption campaign called Fox Hunt.
There has been an increasing number of allegations that China has coerced, even kidnapped, its citizens living abroad, and that it targets political dissidents as well as those accused of financial crimes.
When it comes to the impact of COVID-19 on the People’s Republic of China (PRC), the conventional wisdom seems to be that the emergence of the virus was mishandled and the Communist government has yet to be transparent about it, but that the spread was arrested through aggressive public-health practices and the economy has rebounded.
As usual with the PRC, the reality is more complex. In fact, recent signs of tension between President Xi Jinping and other leaders, notably Premier Li Keqiang, indicate the additional impact the pandemic had on an underlying soft economy and the country’s growing isolation because of Beijing’s poor handling of the crisis and other factors.
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In the past few years, Xi has centralized his personal authority to a degree not seen in a Chinese leader since Chairman Mao. In 2017, Xi took control of the country’s military and often appears in public in a military uniform. He is, in effect, the head of the National Security Council, the head of the foreign policy apparatus, and of multiple economic commissions. In recent public appearances, the state news agency Xinhua has referred to him as “People’s Leader.” Can “Chairman Xi” be far off? In additional to title inflation, in 2018, he imposed constitutional changes on the National People’s Congress that removed a term limit preventing him from seeking a third term in 2023. Xi’s moves and power consolidation mean he is responsible and accountable for both the good and the bad. And lately, there’s been far more bad than good.
Starting with the economy: However the government may have controlled the pandemic, the economy remains weak. Economic growth prior to the pandemic — according to China watchers skeptical of government numbers — was probably flat or negative, notwithstanding official statistics that had it closer to 6 percent. Government at every level and households had combined debt of about 300 percent of GDP. U.S. debt/GDP even after trillions in coronavirus relief spending is less than half China’s level, which leaves fewer levers for Beijing to pull to help stimulate the economy.
While the U.S. Federal Reserve and Congress have injected more than $6 trillion into the economy through massive purchases across many asset classes, the People’s Bank of China balance sheet has remained flat this year. The U.S. Congress provided about $630 billion in direct support to small businesses, compared with less than one-tenth that amount the PRC made available to small businesses in China. Retail sales in China for each month of 2020 are down compared with the same month the year prior. The real data are certainly worse than what the government discloses. In the U.S., retail sales in July were at all-time highs, eclipsing their pre-pandemic levels. According to economist Carlos Casanove at French insurer Coface, the PRC “recovery narrative has been overplayed.”
This is contributing to the tension between Xi and Li. At a press conference in May, the prime minister acknowledged that 600 million people in China — about half the population — subsist on 1000 yuan ($140) a month. This number includes the estimates of 80 million who lost work due to the virus who may have no income and no meaningful social safety net in China. Li’s data track with World Bank data which show a vast disparity in income between the urban elite and the mostly poor rural population. Even so, his comments were out of step with other government-touted figures, including a central bank survey in April of 30,000 urban residents who have an average of nearly half a million dollars in household assets. This figure generated so much controversy that the central bank withdrew it.
Read the whole thing.
“Chinese and European Union officials have agreed to an economic investment deal agreement despite international outrage over the communist regime’s human rights abuses and President-elect Joe Biden’s desire to coordinate an allied posture toward Beijing.” Also, get this: “‘This agreement will uphold our interests & promotes our core values,” European Commission President Ursula von der Leyen insisted Wednesday. ‘It provides us a lever to eradicate forced labour.'” Translation: “We know China engages in slave labor and we’re going to do business with it anyway, and just pretend we care about eliminating it.” (Hat tip: Director Blue.)
The Guardian newspaper in London had an exclusive story in which Victor Zhang, the vice president of Huawei, stated that in light of Trump’s defeat, Britain should review its decision to ban the telecoms giant from its 5G network. Zhang warned that this decision would have economic repercussions for Britain, adding: “As a global company, we want to work with governments to ensure they have the policies to secure growth. The decision was a political one motivated by U.S. perceptions of Huawei, and not those of the U.K. This is not really motivated by security, but about a trade war between the U.S. and China.”
Or consider the fact that this year, some British politicians have shown a certain amount of moral grit by expressing concerns about new authoritarian security laws in Hong Kong and China’s persecution of its Muslim Uyghur minority in Xinjiang. How have the Chinese reacted? This week, Fang Wenjian, chairman of the Chinese Chamber of Commerce in the U.K. and the Bank of China’s boss, issued another menacing warning. The Sunday Times and City A.M. have both published stories linking him to the threat that any decline in U.K.-China relations could force some Chinese firms out of the U.K. In other words: “Don’t criticize China’s abysmal human rights record, or you risk losing our business.”
Alarms bells are also ringing because of Citiking International, a Chinese-backed private equity firm with offices around the world and, it has been reported, possible ties to the Chinese Communist Party. It is trying to buy Eclipse Aerospace, a small firm based in Albuquerque, New Mexico, that employs 65 people. According to Defense News, Eclipse Aerospace produces “very light jets” that are used for intelligence, surveillance and reconnaissance. Defense News states that its planes feature “sophisticated avionics, engines (originally designed for cruise missiles) and a full authority digital engine control system that all contain sensitive national security design information.” Everybody should be deeply worried about the Chinese having access to this sensitive technology, for obvious reasons.
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The fact is, China has ruined the world in 2020 by its reckless handling of COVID-19. For this, it ought to pay very heavy reparations. It will not. Instead, the reverse is happening. China’s economy is powering ahead, and its leaders are bullying weaker Western nations. With Trump all but gone from the White House, and faltering Joe Biden preparing to move in, it now looks as though China’s quest for world domination is back on track. What a calamity.
“Apple’s longtime supplier accused of using forced labor in China.” “New documents show Lens Technology, which makes iPhone glass and is owned by China’s richest woman, received Uighur Muslim laborers transferred from Xinjiang.”
One of the oldest and most well-known iPhone suppliers has been accused of using forced Muslim labor in its factories, according to documents uncovered by a human rights group, adding new scrutiny to Apple’s human rights record in China.
The documents, discovered by the Tech Transparency Project and shared exclusively with The Washington Post, detail how thousands of Uighur workers from the predominantly Muslim region of Xinjiang were sent to work for Lens Technology. Lens also supplies Amazon and Tesla, according to its annual report.
Lens Technology is one of at least five companies connected to Apple’s supply chain that have now been linked to alleged forced labor from the Xinjiang region, according to human rights groups. Lens Technology stands out from other Apple component suppliers because of its high-profile founder and long, well-documented history going back to the early days of the iPhone.
Meng Yu, former chief investment officer of the California Public Employees’ Retirement System (CalPERS), received more than $1.7 million in total pay and benefits in 2019, according to the latest financial disclosures obtained by Transparent California, a taxpayer watchdog group. Under Meng’s leadership the pension fund, which covers two million members in the retirement system and 1.5 million members under its health program, has been subject to federal inquiries into its investments in Chinese government entities.
Meng took the lead at the pension fund after China’s Thousand Talents Program recruited him to serve as the deputy CIO of China’s State Administration of Foreign Exchange (SAFE), a state-controlled entity. The FBI considers the Thousand Talents Program an example of “China’s non-traditional espionage against the United States” that seeks to recruit people to transfer U.S. trade secrets and taxpayer-funded research into the hands of the Chinese government. Meng told the propaganda outlet People’s Daily that he worked for SAFE out of patriotic commitment to “the motherland.”
When a hacking organization’s secret tools are stolen and dumped online for anyone to pick up and repurpose, the consequences can roil the globe. Now one new discovery shows how long those effects can persist. Five years after the notorious spy contractor Hacking Team had its code leaked online, a customized version of one of its stealthiest spyware samples has shown up in the hands of possibly Chinese-speaking hackers.
At an online version of the Kaspersky Security Analyst Summit this week, researchers Mark Lechtik and Igor Kuznetsov plan to present their findings about that mysterious malware sample, which they detected on the PCs of two of Kaspersky’s customers earlier this year.1 The malware is particularly unusual—and disturbing—because it’s designed to alter a target computer’s Unified Extensible Firmware Interface, the firmware that is used to load the computer’s operating system. Because the UEFI sits on a chip on the computer’s motherboard outside of its hard drive, infections can persist even if a computer’s entire hard drive is wiped or its operating system is reinstalled, making it far harder to detect or disinfect than normal malware.
The malware the Kaspersky researchers discovered uses its UEFI foothold to plant a second, more traditional piece of spyware on the computer’s hard drive, a unique piece of code Kaspersky has called MosaicRegressor. But even if that second-stage payload is discovered and wiped, the UEFI remains infected and can simply deploy it again. “Even if you would take the physical disk out and replace it with a new one, the malware will keep reappearing,” says Lechtik, who along with Kuznetsov works as a researcher on Kaspersky’s Global Research and Analysis Team. “So I think to date, it’s the most persistent method of having malware on your device, which is why it is so dangerous.”
On 4 May 2016, a sudden mass death of fish in the Lichu River in Minyak Lhagang, Dartsedo County in Karze Prefecture brought hundreds of local Tibetans out on the street, protesting against a lithium mining company (Ronda Lithium Co Ltd) that released mine waste into the Lichu River, a tributary of Nakchu/Yalong river, the biggest river that merges with Yangtse downstream.
Yet another case of contaminated mine waste released into Tibetan rivers by a Chinese mining company clearly contradicts Beijing’s call for Green Development in their 13th Five Year plan. In recent years, there have been an increase in the number of cases of environmental degradation caused by Chinese mining companies in Tibet, resulting in more than 20 large scale mining-related protests since 2009.
China is also repressing Chinese Jews. I was unaware that Kaifeng, Henan, is home to a Jewish community dating back to the 9th century.
Speaking of which: “As the World Health Organization and other China puppets struggle to assemble a ‘natural origin’ theory for COVID-19, the CCP has been going to great lengths to quash non-sanctioned investigations that may instead point to a lab escape from research facilities which made international headlines in 2015 for dangerous ‘gain-of-function’ research – by which they were manipulating coronaviruses to better infect humans.”
More than a year since the first known person was infected with the coronavirus, an AP investigation shows the Chinese government is strictly controlling all research into its origins, clamping down on some while actively promoting fringe theories that it could have come from outside China.
The government is handing out hundreds of thousands of dollars in grants to scientists researching the virus’ origins in southern China and affiliated with the military, the AP has found. But it is monitoring their findings and mandating that the publication of any data or research must be approved by a new task force managed by China’s cabinet, under direct orders from President Xi Jinping, according to internal documents obtained by the AP. A rare leak from within the government, the dozens of pages of unpublished documents confirm what many have long suspected: The clampdown comes from the top.
As a result, very little has been made public. Authorities are severely limiting information and impeding cooperation with international scientists.
A host of corporate media outlets including CNN, The New York Times, The Washington Post, and MSNBC have participated in private dinners and sponsored trips with the China-United States Exchange Foundation, a Chinese Communist Party-funded group seeking to garner “favorable coverage” and “disseminate positive messages” regarding China, The National Pulse can reveal.
Other outlets involved in the propaganda operation include Forbes, the Financial Times, Newsweek, Bloomberg, Reuters, ABC News, the Economist, the Wall Street Journal, AFP, TIME magazine, LA Times, The Hill, BBC, and The Atlantic.
The relationship is revealed in the Department of Justice’s Foreign Agent Registration Act (FARA) filings, which reveal a relationship spanning over a decade between establishment media outlets and the China–United States Exchange Foundation (CUSEF).
The president of Columbia University is asking Joe Biden to end the monitoring of foreign-born students, especially those who are ethnically Chinese.
He characterized such monitoring as “paranoia.”
Columbia President Lee Bollinger issued the letter on December 3 as part of a broader statement asking Biden to “End the Trump Administration’s Assault on the International Exchange of Ideas.” In 2019, Bollinger wrote an op-ed in the Washington Post, warning that he would not “start spying” on foreign students.
Won’t someone please think of the plight Ivy league university presidents desperate to keep sucking China’s teat?
“How The Chinese Use Illegal Online Gambling And Tether To Launder Over $1 Trillion Yuan.” ‘Chinese citizens launder as much as $153 billion per year with the help of online gambling and such cryptocurrency as tether, which has long been rumored to be a key driver of upside into bitcoin.”
Huawei very much is the spearhead, because in the Chinese model of economic expansion and the development of world economic power, broadband is the opener to everything else.
It’s a company with a lot of very talented people. Ten years ago – if you asked people, “What Chinese products do you buy?” – you wouldn’t mention a single brand name. But everyone now knows Huawei. They produce the world’s best smartphones. They certainly dominate 5G internet. But Huawei is not a Chinese company. It is an imperial company.
The Chinese empire is doing better than us because it’s absorbed the talent of a very large number of others. Fifty percent of their engineers are foreign. They bankrupted their competition and hired their talent. They have 50,000 foreign employees, and a very disproportionate amount of their research and development (R&D) is conducted by foreign employees.
I’ve seen this personally. I worked for several years as an investment banker in Hong Kong for a Chinese-owned boutique. During that time, I collaborated with people from Huawei. I introduced them to foreign governments. Huawei was very clear about its objectives. They’d tell, for example, the government of Mexico, “Let us build a national broadband network. Once you get broadband, you get e-commerce and e-finance, and then we’ll supply the logistics and the financing for that, and we’ll integrate you into the world market.”
They’ve become one of the most connected societies on earth. China has, by far, the highest percentage of e-commerce of any society in the world. Electronic payment systems and electronic banking are much more advanced there than anywhere else.
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China has a set of weak spots. First, they’ve got a very rapidly aging population. Like all countries with aging populations, they need to export capital and employ young people and other countries to pay for the pensions of their own people. Germany does this, too. That’s part of the motivation for China’s strategy. They will have an enormous burden supporting the aged in the future. They’re hoping to deal with that through automation, through more efficient health care.
Their biggest problem is the ambitions of their young people. The Chinese created a generation of which 10 million people each year take the gaokao (university) exam. A third of them study engineering. They expect opportunities.
If China loses its edge in technology, if they fall behind the West, if the Communist Party is seen to have failed in competing with the West, I think that will be a significant threat to its power.
Worth reading, even if you take it with several grains of salt.
If I missed any China news, feel free to share in the comments.
