More on the collapse of Silicon Valley Bank, Syria gets spicy again, woke companies like Disney are having massive layoffs, and Sig Saur gets into the Killbot business. It’s the Friday LinkSwarm!
Courtesy of Bloomberg’s reporting, it appears that not only were insiders dumping their shares faster than syphilitic hooker, there were loading up on loans from the bank at a scale that makes a mockery of any regulatory oversight…
”
Yes, that’s real.
Loans to officers, directors and principal shareholders, and their related interests, more than tripled from the third quarter last year to $219 million in the final three months of 2022 – a record dollar amount of loans going back over 20 years.
Many questions come to mind – what were the terms, who were the recipients, what was the collateral?
But, sadly, we will likely never know.
However, we do note that the banking execs may be facing a serious shortfall (like their bank): if the loans were collateralized by SVB shares for example, those shares are now worthless, leaving the loan-heavy C-suite left to come up with the cash to repay the loans (and no, these loans don’t disappear with the bank’s liquidation).
Between that and the insider share dumping, people need to go to jail.
After the implosion of the FTX crypto exchange run by Sam Bankman Fried, questions of due diligence and competency immediately arose, suggesting that perhaps the company mishandled assets “accidentally” and that Fried was naive and “in over his head.” Numerous central bank officials and globalist organizations jumped into the debate almost immediately, arguing that FTX was a perfect example of why centralized regulation of crypto and digital currencies was necessary. They claimed that without oversight by banking elites, disaster was inevitable.
Of course, what they did not mention was that FTX and Sam Fried already had extensive connections with globalist groups including the World Economic Forum. In fact, the very basis of Fried’s business model was the WEF’s “Stakeholder Capitalism” theory, which he often referred to as “Effective Altruism.”
Stakeholder Capitalism is essentially the opposite of free markets – It is a socialist/globalist framework which uses corporations as a kind of economic enforcement tool. Corporations are already highly socialistic in their operations, and their existence is completely dependent on their special relationship with government. Corporations are created through government charter, enjoy special protections under “corporate personhood” laws and avoid direct consequences for criminal activities through limited liability.
Many corporations are not even allowed to fail because governments backstop their operations. That’s socialism, not free markets. However, “stakeholder capitalism” expands on this dynamic a hundred-fold.
Where free markets assert that businesses must make profit their primary objective for the overall economy to function, the WEF asserts that companies including banking institutions have a social obligation that goes beyond making money. To the typical leftist this probably sounds like a Utopian vision filled with promise, but to anyone that actually understands economics it sounds like a recipe for the collapse of civilization.
The WEF paints stakeholder capitalism an effort to reign in the power of the corporate system in favor of social causes. In reality, it’s a way to give corporations ultimate power over everything, including ultimate influence over public behavior.
We have seen extensive evidence of this through widespread corporate ESG investment programs implemented in the past several years. It is no coincidence that the invasion of woke ideology into the mainstream happened at the exact same time that ESG-based lending accelerated.
The institutions lending to various companies were able to set social rules for access to credit, and these rules required businesses to adopt far-left politics in their marketing and policies as a result. Stakeholder capitalism is about homogenizing all business into a single ideological entity – Instead of competing with each other for market share through innovation, companies have been abandoning merit based competition and are colluding to saturate the mainstream with social justice cultism, climate change propaganda and globalist rhetoric.
By making corporate elites “responsible” for society, we give them the power to engineer society.
However, the WEF’s model of false altruism is turning out to be a disaster for corporate survival. I have to wonder now if this was the intent all along – To create a kind of ESG fueled woke financial bubble that was always intended to come crashing down, leaving the western world in ruins.
Snip.
Looking into SVB’s operational history, the company was a woke nightmare.
Take a gander at their 66 page ESG report compiled in 2021 to get a sense of how far to the extreme political left the bank was. SVB is the pinnacle example of why “Get Woke, Go Broke” is more than a mantra, it’s a rule.
Digging even deeper we then find that SVB’s leadership was highly involved in the WEF and their Stakeholder Capitalism Metrics (SCM), along with corporate governance. SVB was not only implementing every single policy the WEF outlines in its agenda, they were reporting back to the WEF on their progress.
SVB’s capital exposure was heavily tied up in securities, but also venture capital for woke tech startups, climate change related projects and leftist activist groups which qualified for ESG loans; everything from BLM to Buzzfeed. In other words, they were investing aggressively into money-pit projects that devoured cash and gave nothing back. The real question is, how many US banks are involved in ESG and WEF operations at the same level as SVB? Dozens? Hundreds?
“U.S. Carries Out Airstrikes in Syria after Iranian Drone Kills U.S. Contractor, Wounds Five Service Members.” As I’ve mentioned before the withdrawal of most U.S. troops from Iraq and Syria doesn’t mean all. And the same goes for Africa.
“56% of liberal white women age 18-29 have been diagnosed with a mental health condition.” Well, you already said “liberal”…
Louisiana state Rep. Francis Thompson switched from the Democratic to the Republican Party, given Republicans a super-majority in both houses and thus the ability to override any veto by Democratic Governor John Bel Edwards. ““The push the past several years by Democratic leadership on both the national and state level to support certain issues does not align with those values and principles that are a part of my Christian life,” said Thompson.
World Athletics, the governing body for international track and field competition, has banned men from international competition. “I’ll take ‘Headlines no one in the 20th century would understand’ for $600, Alex.”
“Dallas Bar Cancels All-ages Drag Event.” Funny how the threat of having your TABC license yanked concentrates the mind…
Get Woke, Go Broke Part 1: After a string of expensive bombs and streaming losses, Disney to lay off 7,000 employees.
Get Woke, Go Broke 1.5: “Woke Marvel Producer Victoria Alonso Gone From MCU.” She was one of the central figures pushing Disney to adopt a pro-groomer position in Florida. The ostensible reason for her firing was breach of contract for producing a non-Marvel movie, but a lot of industry insiders think her outspoken wokeness was a key reason for her getting the axe.
Get Woke, Go Broke Part 2: “Twitch Streaming Service To Sack 36% Of Employees.”
SIG Sauer announced late last week it has acquired General Robotics, one of the world’s premier manufacturers of lightweight remote weapon stations and tactical robotics for manned and unmanned platforms as well as anti-drone applications. The companies have been working in concert for some time, a fact made obvious at January’s SHOT Show when they debuted a Polaris ATV equipped with a General Robotics PitBull remote weapons station that aimed and fired the vehicle-mounted SIG MG 338 belt-fed machine gun remotely.
“This acquisition will greatly enhance SIG Sauer’s growing portfolio of advanced weapon systems,” said Ron Cohen, president and CEO of SIG Sauer. The team at General Robotics is leading the way in the development of intuitive, lightweight remote weapon stations with their battle-proven solution.”
Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping. The “magic” behind Block’s business has not been disruptive innovation, but rather the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated metrics.
There’s also a negative side.
Even the summary is pretty breathtaking in the rang of allegations:
Most analysts are excited about the post-pandemic surge of Block’s Cash App platform, with expectations that its 51 million monthly transacting active users and low customer acquisition costs will drive high margin growth and serve as a future platform to offer new products.
Our research indicates, however, that Block has wildly overstated its genuine user counts and has understated its customer acquisition costs. Former employees estimated that 40%-75% of accounts they reviewed were fake, involved in fraud, or were additional accounts tied to a single individual.
Core to the issue is that Block has embraced one traditionally very “underbanked” segment of the population: criminals. The company’s “Wild West” approach to compliance made it easy for bad actors to mass-create accounts for identity fraud and other scams, then extract stolen funds quickly.
Even when users were caught engaging in fraud or other prohibited activity, Block blacklisted the account without banning the user. A former customer service rep shared screenshots showing how blacklisted accounts were regularly associated with dozens or hundreds of other active accounts suspected of fraud. This phenomenon of allowing blacklisted users was so common that rappers bragged about it in hip hop songs.
Block obfuscates how many individuals are on the Cash App platform by reporting misleading “transacting active” metrics filled with fake and duplicate accounts. Block can and should clarify to investors an estimate on how many unique people actually use Cash App.
CEO Jack Dorsey has publicly touted how Cash App is mentioned in hundreds of hip hop songs as evidence of its mainstream appeal. A review of those songs show that the artists are not generally rapping about Cash App’s smooth user interface—many describe using it to scam, traffic drugs or even pay for murder…
“I paid them hitters through Cash App”— Block paid to promote a video for a song called “Cash App” which described paying contract killers through the app. The song’s artist was later arrested for attempted murder.
Cash App was also cited “by far” as the top app used in reported U.S. sex trafficking, according to a leading non-profit organization. Multiple Department of Justice complaints outline how Cash App has been used to facilitate sex trafficking, including sex trafficking of minors.
There is even a gang named after Cash App: In 2021, Baltimore authorities charged members of the “Cash App” gang with distribution of fentanyl in a West Baltimore neighborhood, according to news reports and criminal records.
Beyond facilitating payments for criminal activity, the platform has been overrun with scam accounts and fake users, according to numerous interviews with former employees.
Examples of obvious distortions abound: “Jack Dorsey” has multiple fake accounts, including some that appear aimed at scamming Cash App users. “Elon Musk” and “Donald Trump” have dozens.
To test this, we turned our accounts into “Donald Trump” and “Elon Musk” and were easily able to send and receive money. We ordered a Cash Card under our obviously fake Donald Trump account, checking to see if Cash App’s compliance would take issue—the card promptly arrived in the mail.
Former employees described how Cash App suppressed internal concerns and ignored user pleas for help as criminal activity and fraud ran rampant on its platform. This appeared to be an effort to grow Cash App’s user base by strategically disregarding Anti Money Laundering (AML) rules.
The COVID-19 pandemic and nationwide lockdowns posed an existential threat to Block’s key driver of gross profit at the time, merchant services.
In this environment, amid Cash App’s anti-compliance free-for-all, the app facilitated a massive wave of government COVID-relief payments. CEO Jack Dorsey Tweeted that users could get government payments through Cash App “immediately” with “no bank account needed” due to its frictionless technology.
Within weeks of Cash App accounts receiving their first government payments, states were seeking to claw back suspected fraudulent payments—Washington State wanted more than $200 million back from payment processors while Arizona sought to recover $500 million, former employees told us.
Once again, the signs were hard to miss. Rapper “Nuke Bizzle”, made a popular music video about committing COVID fraud. Several weeks later, he was arrested and eventually convicted for committing COVID fraud. The only payment provider mentioned in the indictment was Cash App, which was used to facilitate the fraudulent payments.
We filed public records requests to learn more about Block’s role in facilitating pandemic relief fraud and received answers from several states.
Massachusetts sought to claw back over 69,000 unemployment payments from Cash App accounts just four months into the pandemic. Suspect transactions at Cash App’s partner bank were disproportionate, exceeding major banks like JP Morgan and Wells Fargo, despite the latter banks having 4x-5x as many deposit accounts.
In Ohio, Cash App’s partner bank had 8x the suspect pandemic-related unemployment payments as the bank that processed the most unemployment claims in the state, even though the latter bank processed 2x the claims as Cash App’s, according to data we obtained via a public records request.
The data shows that compared to its Ohio competitor, Cash App’s partner bank had nearly 10x the number of applicants who applied for benefits through a bank account used by another claimant – a clear red flag of fraud.
Block had obvious compliance lapses that made fraud easy, such as permitting single accounts to receive unemployment payments on behalf of multiple individuals from various states and ineffective address verification.
In an apparent effort to preserve its growth engine, Cash App ignored internal employee concerns, along with warnings from the Secret Service, the U.S. Department of Labor OIG, FinCEN, and State Regulators which all specifically flagged the issue of multiple COVID relief payments going to the same account as an obvious sign of fraud.
Block reported a pandemic surge in user counts and revenue, ignoring the contribution of widespread fraudulent accounts and payments. The new business provided a sharp one-time increase to Block’s stock, which rose 639% in 18 months during the pandemic.
As Block’s stock soared on the back of its facilitation of fraud, co-founders Jack Dorsey and James McKelvey collectively sold over $1 billion of stock during the pandemic. Other executives, including CFO Amrita Ahuja and the lead manager for Cash App Brian Grassadonia, also dumped millions of dollars in stock.
With its influx of pandemic Cash App users, our research shows Block has quietly fueled its profitability by avoiding a key banking regulation meant to protect merchants. “Interchange fees” are fees charged to merchants for accepting use of various payment cards.
Congress passed a law that legally caps “interchange fees” charged by large banks that have over $10 billion in assets. Despite having $31 billion in assets, Block avoids these regulations by routing payments through a small bank and gouging merchants with elevated fees.
Block includes only a single vague reference in its filings acknowledging it earns revenue from “interchange fees”. It has never revealed the full economics of this category, yet roughly one-third of Cash App’s revenue came from this opaque source, according to a 2022 Credit Suisse research report.
Competitor PayPal has disclosed it is under investigation by both the SEC and the CFPB over its similar use of a small bank to avoid “interchange fee” caps. A Freedom of Information Act (FOIA) request we filed with the SEC indicates that Block may be part of a similar investigation.
Block’s $29 billion deal to acquire ‘buy now pay later’ (BNPL) service Afterpay closed in January 2022. Afterpay has been celebrated by Block as a major financial innovation, allowing users to buy things like a pair of shoes or a t-shirt and pay over time, only incurring massive fees if subsequent payments are late.
Afterpay was designed in a way that avoided responsible lending rules in its native Australia, extending a form of credit to users without income verification or credit checks. The service doesn’t technically charge “interest”, but late fees can reach APR equivalents as high as 289%.
The acquisition is flopping. In 2022, the year Afterpay was acquired, it lost $357 million, accelerating from 2021 losses of $184 million.
Fitch Ratings reported that Afterpay delinquencies through March 2022 had more than doubled to 4.1%, from 1.7% in June 2021 (just prior to the announced acquisition). Total processing volume declined -4.8% from the previous year.
Block regularly hypes other mundane or predatory sources of revenue as technological breakthroughs. Roughly 31% of Cash App’s revenue comes from “instant deposit” which Block says it pioneered and works as if by “magic”. Every other major competitor we checked provides a similar service at comparable or better rates.
On a purely fundamental basis, even before factoring in the findings of our investigation, we see downside of between 65% to 75% in Block shares. Block reported a 1% year over year revenue decline and a GAAP loss of $540.7 million in 2022. Analysts have future expectations of GAAP unprofitability and the company has warned it may not be profitable.
Despite this, Block is valued like a profitable growth company at (i) an EV/EBITDA multiple of 60x; (ii) a forward 2023 “adjusted” earnings multiple of 41x; and (iii) a price to tangible book ratio of 13.1x, all wildly out of line with fintech peers.
Despite its current rich multiples, Block is also facing threats from key competitors like Zelle, Venmo/Paypal and fast-growing payment solutions from smartphone powerhouses like Apple and Google. Apple has grown Apple Pay activations from 20% in 2017 to over 70% in 2022 and now leads in digital wallet market share.
In sum, we think Block has misled investors on key metrics, and embraced predatory offerings and compliance worst-practices in order to fuel growth and profit from facilitation of fraud against consumers and the government.
We also believe Jack Dorsey has built an empire—and amassed a $5 billion personal fortune—professing to care deeply about the demographics he is taking advantage of. With Dorsey and top executives already having sold over $1 billion in equity on Block’s meteoric pandemic run higher, they have ensured they will be fine, regardless of the outcome for everyone else.
That’s just the high level summary. There’s a whole lot more detail in the report.
I have never once used Cash App. I have an ancient Square Reader floating around in a bag somewhere, but I never actually ran any transactions on it. I do have PayPal, because I pretty much have to in order to buy or sell on eBay (though I’ve gotten to the point I do almost no selling there). I don’t even use Apple Pay, despite having a MacBook Pro and iPhone.
Speaking of fees, here Louis Rossmann rants about how Square refuses to return fees for refunds:
Anyway, if you’re using Square or CashApp, maybe it’s a good time to look into alternatives…
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.
Democrats enabling sexual predators (yet again), more tanks for Ukraine information, and the unexpected return of Storm Drain Woman. It’s the Friday LinkSwarm!
Published in November of 2022, the story indicated “thousands of child molesters are being let out after just a few months, despite sentencing guidelines.”
The story reported that more than 7,000 inmates convicted of “lewd or lascivious acts with a child under 14 years of age” were released from prison the same year they were incarcerated.
The Daily Mail’s analysis was conducted using a database—created in 1994 after the federal Megan’s Law was passed—requiring law enforcement to make public information regarding registered sex offenders. The news organization examined data in California through July of 2019.
“Everyone should be really upset and frightened by this,” Dordulian said.
According to Dordulian, child molesters are the least likely of criminals to be rehabilitated and are four times more likely to commit the same crime again.
“Once they’re out,” he said, “they are going to re-offend and there’s going to be another child that is victimized by these people.”
Senate Bill 357. Signed by Governor Gavin Newsom in July, the measure decriminalized loitering with the intent to engage in prostitution. The bill did not officially take effect until January 1 of this year; but, from the moment it became law back in July, these women say, the on-the-ground reality changed. “The minute the governor signed it, you started seeing an uptick on the streets,” Powell said. “And on social media, the pimps were saying: ‘You better get out there and work because the streets are ours.’”
The pimps were right: police stopped making arrests for crimes that would no longer be charged. The anti-loitering statute had provided the grounds for officers to question women and children whom they suspected might be trapped in a prostitution ring. “As a police officer, you need probable cause to stop and investigate,” Powell explained. “So if I have a law that says you can’t loiter in this area, with pasties and a G-string, flagging down cars, I could stop you for that because you’re loitering. But if I just say I’m stopping you because you look kind of young, that’s a little weak. So, it takes away a tool.” Without the statute, police hands were suddenly tied. Henceforth, questioning the girls—and potentially provoking a violent confrontation with pimps—came to seem a Pyrrhic gamble, one that California’s police officers would now avoid.
The films, which include “Miss Representation,” “The Mask You Live In,” “The Great American Lie” and “Fair Play,” are licensed to taxpayer-funded schools across every state and sometimes contain sexually explicit imagery and push students to feel “shame and sorrow” about American society split by privilege and oppression. They are paired with curricula that include discussion on Gov. Newsom’s comments within the films, urging them to gather their friends and vote for aligned politicians that support a “care economy” that “embraces universal human values.”
“Former Arlington teachers union president charged with embezzlement. A former president of the Arlington teachers union, who was ousted last spring, has been charged with embezzling more than $400,000 from the organization. Ingrid Gant, 54, of Woodbridge, was arrested yesterday (Monday) in Prince William County on four counts of embezzlement.” (Hat tip: Ed Driscoll at Instapundit.)
“Thirty years ago, Guan County, Shandong Province launched the ‘Hundred Childless Days‘ campaign under the aegis of national family planning, known in the West as the ‘one-child policy.’ The birthplace of the “Boxers” was deemed to have too high a birth rate by the provincial government. County officials sought to correct this by ensuring that not a single baby was born between May 1 and August 10, 1991.” (Hat tip: Ace of Spades HQ.)
North says they do not feel safe anymore, and she believes it all ties back to the large homeless encampment located only feet away from the salon.
“Our safety started to become a big issue. We suffered from multiple break-ins. We’ve had our cars broken into. We clean up feces and needles on a weekly basis. It increased from that to, you know, people approaching us and threatening us with weapons, threatening rape, murder, all of those things,” said North.
The salon has been up and running just off Ben White Blvd. for four years now. North says she has seen an uptick in crime for a while now, but the dangerous behavior from people living in this encampment picked up recently.
“In the past year, it’s gotten increasingly worse and, in the past couple of weeks, it’s gotten to the point where I actually finally felt like this might shut my business down,” said North.
Erin Mutschler, another co-owner of the salon, says they have called the police every time they have dealt with a situation like the one caught on video, but she says police often take 45 minutes to an hour for anyone to show up.
The mayorship of Steve Adler is the gift that just keeps giving, even with him out of office… (Hat tip: Dwight.)
Follow-up: Democratic State Rep. Harold Dutton: “Don’t Blame Abbott, Houston ISD Takeover Plan Was My Idea.” (Previously.)
A Florida woman was pulled from a storm drain for the third time in two years. Maybe she was looking for David Icke’s lizard people. Also, she sounds like a real winner: “Police said her license had been suspended 17 times from 2007 to 2020.” (Previously.) (Hat tip: Dwight.)
Jay Leno broke his collarbone, several ribs and both kneecaps in a motorcycle accident. But it sounds like a freak accident: “So I turned down a side street and cut through a parking lot, and unbeknownst to me, some guy had a wire strung across the parking lot but with no flag hanging from it…I didn’t see it until it was too late. It just clothesline me and, boom, knocked me off the bike.” (There’s no evidence the line was strung there by Conan O’Brien.) “But I’m OK!…I’m working this weekend.” (Hat tip: Instapundit.)
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.
Early on, a lot of observers predicted that Russia, with it’s vast store of Soviet-era aircraft, would quickly achieve air-superiority over Ukraine. That hasn’t been the case.
This video from the British Imperial War Museum lists some reasons why.
Takeaways:
They failed to hit Ukrainian aircraft on the ground in the opening phases of the war.
A “great deal of mismanagement, kleptocracy, you know, favored projects over some kind of strategic effect.” Note how Putin is always announcing some sort of awesome wonderwaffen while neglecting basic needs like logistics.
“The level of corruption in Russia itself has had an impact on its ability to have a tactical or even strategic effect without support from the air. Russia’s ground forces have been largely unable to mount effective combined arms operations.”
“The key reason for Russia’s inability to effectively use its air force has been its failure to take out Ukraine’s mobile surface to air missile systems. They have been unable to suppress enemy air defenses.”
Ukraine made an early effort to obtain SAM systems from the west.
Both mobile tracked systems like S-300 and MANPADS have been used.
Failure to achieve air superiority has both sides investing in drones.
“What you do is you flood the airspace, almost like a denial of service attack, as we see on the Internet. As you attack a server, for instance, by having so many pings against it, it essentially shuts down the server. And what we see in the case of Russia is that it’s doing the same thing. It’s trying to flood the air defense systems.”
“The relatively low cost of these drones is one of the main reasons for Russia to deploy them, and in such numbers. Each drone reportedly costs around $20,000. And so losing an expensive advance guided missile to these drones is not an ideal strategy for Ukraine.”
One reason not covered: Russia seems to have used up a good portion of it’s high tech weapons in the opening phases of the war, and western sanctions mean that it can’t easily replace them. Sophisticated fighter bombers are a whole lot less effective when they’re reduced to dropping gravity bombs rather than guided munitions.
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.
According to auditor’s records, Harris County has not yet recovered more than $1 million paid for a since-canceled COVID-19 vaccine outreach contract tied to the felony indictments of County Judge Lina Hidalgo’s staff.
In addition, invoices indicate that the contractor paid more than half a million of the taxpayer funds to data firms assisting progressive candidates with campaigns and voter turnout.
In 2021, the county awarded an $11 million contract to Elevate Strategies, owned by highly-connected Democratic strategist Felicity Pereyra. Pereyra had previously worked for Hillary Clinton’s presidential campaign, the Democratic National Committee, and Commissioner Adrian Garcia’s (D- Pct. 2) campaign when he ran for mayor of Houston.
After revelations that Hidalgo’s staff had sought to alter experience requirements for potential vendors, and had instructed the purchasing department to disqualify the University of Texas Health Science Center, Hidalgo announced she would cancel the contract. But the public later learned that the county paid out $1.4 million to Pereyra’s firm after the date of cancellation.
During a March 2022 meeting of the Harris County commissioners court, First Assistant County Attorney Jay Aiyer told commissioners that Elevate Strategies had repaid about $200,000 and he expected another $1 million in repayment soon.
In response to queries from FOX26 political reporter Greg Groogan, the county attorney’s office responded that they had recovered $600,000, but refused to comply with an open records request and appealed to Attorney General Ken Paxton’s office in an effort to keep the repayment amounts out of the public eye.
Attorney and former Houston mayoral candidate Bill King sought records from the county auditor, which showed that while the county had paid $1.425 million, Elevate Strategies has only returned $208,000.
Among invoices Elevate Strategies submitted to the county are expenditures of $538,057 for software and canvassers from known Democratic voter turnout groups Civis Analytics and NGP VAN EveryAction.
Founded by Dan Wagner, former chief analytics officer of Obama for America, Civis Analytics has worked to increase voter turnout for a variety of progressive candidates and organizations including Battleground Texas. The group touts data collection that can be compiled into individual voter records for use in political campaigns.
Likewise, NGP VAN’s website advertises the company as “the leading technology provider to Democratic and progressive campaigns and organizations.”
Last year, Hidalgo defended the use of political campaigning groups, saying they had the tools to conduct the outreach. But Rice University professor and political analyst Mark Jones told The Texan there is not a great deal of overlap between the kinds of residents targeted.
“Those are companies focused exclusively on likely voters, which is not the same thing as a vulnerable population that would be the target of a COVID vaccine outreach campaign,” said Jones. “The Civis Analytics and NGP data sets are not designed to reach those targets. They are designed to reach people who are likely to turnout in the 2022 county judge election.”
Jones also noted that Elevate Strategies contract lists as a sub-contractor the Texas Organizing Project, which is another group that conducts canvassing and campaigning on behalf of Democratic candidates, including Hidalgo.
Go that? Lina Hidalgo approved over $1 million in funding for a company who’s primary job is getting Democrats (including herself) elected, paid them money after the contract was cancelled, and when told to give the money back, the Democrat company kept more than $1 million, and then Hidalgo’s office tried to cover it up.
Hidalgo doesn’t just need to be voted out of office, she and her cronies need to be sent to prison for abusing taxpayer money by spending it for partisan political advantage.
Democrats flee, lettuce wins, a flood of extra executives, and Musk gets out the hatchet. It’s the Friday LinkSwarm!
People leaving the Democratic Party describe it as cancer:
While Democrat voters have been leaving the party for years, their reasons have become more urgent.
“When people were feeling pushed away years ago, to the point where they were starting to walk away, there was more of a casual tone about it,” former liberal Democrat Brandon Straka, founder of #WalkAway told The Epoch Times.
“People were beginning to feel the effects of leftist, communism, Marxism infiltration into our society, our culture, and our politics.”
Straka founded #WalkAway in 2018 after making his personal decision to leave the party public while inviting others to join him. Since then, thousands of exiting Democrats made social media videos explaining why they were choosing to #WalkAway, giving Straka a window into the minds of these voters.
At that time, people were just noticing changes in the party, he said. They weren’t always identifying what it meant, but they knew they didn’t like how it felt, and quietly left.
“But now, it’s akin to cancer. Cancer doesn’t stop growing and spreading just because people don’t like it. And what’s happening with the left is no different,” Straka said. “Particularly with them getting rid of Trump, installing Biden, and the Democrats taking full control of the government. This is a cancer that’s rapidly growing and spreading now. And it’s becoming not just uncomfortable, but I think intolerable, for a lot of people.”
Drugs dealers openly selling on Broadway. Thinks to mayors Bill de Blasio and Eric Adams, and the feckless actions of Soros-backed DA Alvin Bragg, Democrats have undone not only all the hard-won law-and-order gains of Rudy Giuliani’s broken windows police, but they’ve actually brought NYC back to the nadir of the crime-ridden New York of the 1970s. (Hat tip: Sarah Hoyt at Instapundit.)
Robert Francis “Beto” O’Rourke is heading to his third high-profile defeat in five years. But he and Planned Parenthood have an ace of their sleeve: registering dead voters.
A Texas firearms dealer is suing the Biden administration for weaponizing the Bureau of Alcohol, Tobacco, Firearms, and Explosives to shut down law-abiding gun retailers over paperwork errors discovered during audits.
President Joe Biden ordered the Department of Justice in June of 2021 to enforce “zero tolerance for willful violations of the law by federally licensed firearms dealers that put public safety at risk,” but after a 500 percent increase in federal firearm license revocations for retailers over the last year, it’s clear the Biden administration isn’t just going after gun sellers who intentionally violate the law.
Punishing minor slip-ups, the lawsuit argues, draws on a drastically different interpretation of the law than the definition federal courts have held based on the Gun Control Act of 1968.
The lawsuit, to which the federal government has 60 days to respond, also argues that the Biden administration’s new policy sets an unreasonably high standard that is not applied to any other industry.
That’s why Michael Cargill, owner of Central Texas Gun Works in Austin, chose to bring this case.
Those energy-hostile Democratic Party policies just keep paying dividends: “New England facing natural gas shortages, rolling blackouts this winter.”
The reality is that the normal flow of natural gas into the region is limited and has been unable to keep up with increasing demand levels over the past decade. That means that utility operators have to rely on liquid natural gas (LNG) imports to make up the difference during peak demand periods. During such times, LNG accounts for as much as one-third of the total natural gas used for heating and electricity.
But why is that? You won’t need an ace detective to figure that out. Utility companies in New York, Connecticut, and other New England states projected supply shortfalls more than a decade ago. Fortunately, New York and Pennsylvania sit on some of the richest natural gas resources in the country, found in the Marcellus shale deposits. The companies requested new, higher-volume pipelines to carry natural gas to meet the spiraling demands of New York City, particularly at the furthest end of the gas lines in Long Island. They also urged the development of local gas production to feed those lines. Similar situations were noted all across New England.
Instead of doing that, New York refused to approve new gas lines and passed a moratorium on natural gas drilling in the state. This brings us to the current situation where the same amount of natural gas is being used, but increasing amounts of it come in the form of LNG that has to be imported either from other regions of the country or from overseas. The energy crunch in Europe is eating up a lot of the available LNG, so there may not be enough for New England this winter.
A star reporter for ABC News has been missing since an April 27 FBI raid at his Arlington, Virginia apartment.
Emmy award winner James Gordon Meek – a deep-dive journalist who was also a former senior counterterrorism adviser and investigator for the House Homeland Security Committee, abruptly quit his job of 9 years and “fell off the face of the earth,” after the raid, one of his colleagues told Rolling Stone.
A recent proliferation of phony executive profiles on LinkedIn is creating something of an identity crisis for the business networking site, and for companies that rely on it to hire and screen prospective employees. The fabricated LinkedIn identities — which pair AI-generated profile photos with text lifted from legitimate accounts — are creating major headaches for corporate HR departments and for those managing invite-only LinkedIn groups.
Last week, KrebsOnSecurity examined a flood of inauthentic LinkedIn profiles all claiming Chief Information Security Officer (CISO) roles at various Fortune 500 companies, including Biogen, Chevron, ExxonMobil, and Hewlett Packard.
Since then, the response from LinkedIn users and readers has made clear that these phony profiles are showing up en masse for virtually all executive roles — but particularly for jobs and industries that are adjacent to recent global events and news trends.
Does the Federal Reserve swapping some $6 billion worth of dollars for Swiss Francs with the Swiss National Bank mean a global financial crisis is coming? Boiling down his argument: A.) The Swiss National bank has a weekly dollar auction every Wednesday. 99%+ of the time, no one shows up for them. B.) Last Wednesday, 15 parties (meaning banks) showed up for them to the tune of some $6 billion. C.) The only reason they would do that is if they don’t trust their current repo counterparties, and D.) This is what happened when Flu Manchu hit and before the Subprime Meltdown in 2008. If it’s any consolation, they first started showing up for the latter in December of 2007, so you might have nine months to buy gold, ammunition and canned goods…
“According to the latest campaign finance reports, Republican Alexandra del Moral Mealer has raised a record-setting $4.9 million dollars in support of her campaign for Harris County Judge, outraising Democratic incumbent Lina Hidalgo 4 to 1.”
Related: “Hidalgo Booed Exiting Meeting Where GOP Commissioners Continue Boycott of Tax Increase.”
Woke reporter: Are you just super excited to coach against another black coach? Tampa Bay Buccaneers coach Todd Bowles: “We don’t see color…the minute you guys stop making a big deal about it, everyone else will as well.”
Higher inflation, widespread corruption in the federal government, the Bank of England makes Liz Truss blink, and Muslims take exception to Dearborn Public School’s gay agenda. It’s the Friday LinkSwarm!
The Journal reviewed more than 31,000 financial disclosure forms and analyzed more than 850,000 financial assets and 315,000 trades to shed light on any conflicts of interest among more than 12,000 senior career bureaucrats and political appointees. Its investigation found that “thousands of officials across the U.S. government’s executive branch disclosed owning or trading stocks that stood to rise or fall with decisions their agencies made.”
“Across 50 federal agencies ranging from the Commerce Department to the Treasury Department, more than 2,600 officials reported stock investments in companies while those companies were lobbying their agencies for favorable policies, during both Republican and Democratic administrations,” the Journal reports. “When the financial holdings caused a conflict, the agencies sometimes simply waived the rules.”
The federal employees weren’t even subtle about it. Per the Journal, “More than five dozen officials at five agencies reported trading stocks of companies shortly before their departments announced enforcement actions against those companies, such as charges or settlements.”
That’s sus.
To get an understanding of how shady this behavior is, consider examples from a few specific agencies. At the Environmental Protection Agency (EPA), for example, the Journal found that “more than 200 senior officials… or nearly one in three, reported that they or their family members held investments in companies that were lobbying the agency.”
Similar corruption plagues the Department of Defense, where, per the investigation, “officials in the office of the secretary or their family members collectively owned between $1.2 million and $3.4 million of stock in aerospace and defense companies, on average, during years the Journal examined. Some owned stock in Chinese companies while the U.S. considered blacklisting the companies.”
Sometimes there’s a major story out there you don’t have time to really pay attention to, and such is the case with the UK “mini-budget”/Bank of England story. Basically, new UK PM Liz Truss and her Chancellor of the Treasury Kwasi Kwarteng went “We’re going to cut taxes despite soaring inflation” and the Bank of England (which evidently said that UK pension funds were hours from collapse last week) went “No you’re not.” Well, Truss just blinked, Kwarteng is out, and now the UK government is going to raise taxes.
Here’s a video explainer of the complexities of the Bank of England intervention in the bond market.
I’ll still trying to wrap my mind around the phrases “pension fund margin call” and “unlimited quantity” of short term repo liquidity reserves.
The Biden administration’s new technology restrictions are already causing disruptions in China as US semiconductor equipment suppliers are telling staff based in the country’s top memory chip maker to leave, according to WSJ, citing sources familiar with the matter.
State-owned Yangtze Memory Technologies Co. has seen US chip semiconductor equipment companies, including KLA Corp. and Lam Research Corp., halt business activities at the facility. This includes installing new equipment to make advanced chips and overseeing highly technical chip production.
The US suppliers have paused support of already installed equipment at YMTC in recent days and temporarily halted installation of new tools, the people said. The suppliers are also temporarily pulling out their staff based at YMTC, the people said. –WSJ
It’s hard to overemphasize how badly screwed China’s chip industry is with this latest move. Semiconductor equipment not only needs regular maintenance, but extremely specialized expertise when something goes wrong and your yields crash, wizards who can look at a wafer defect chart and determine by experience what’s gone wrong with which tool. Without support and spare parts from the western semiconductor equipment giants, expect yields to start crashing in a matter of months, if not weeks, especially if Applied Materials and Tokyo Electron join the pullout.
The IRGC may be mobilizing retired servicemembers and other affiliated officers to suppress protests in Tehran on October 15.
Protesters have killed more Iranian security personnel in the current protest wave than in any previous wave in the regime’s history according to regime statistics.
Anti-regime protests occurred in at least 11 cities in seven provinces.
Social media accounts that are representing themselves as youth groups organizing and coordinating protests called for countrywide unrest on October 15.
Snip.
Social media accounts that are representing themselves as youth groups organizing and coordinating protests called for countrywide unrest on October 15. Dozens of social media accounts are presenting themselves as provincial components of a broader youth movement aimed at overthrowing the regime. The movement does not appear to have a central headquarters or hierarchy—at least on social media—and some of these groups’ rhetoric is notably disjointed from the others. These accounts claim to have a presence in multiple Iranian cities, including Tehran, Karaj, Neyshabour, Hamedan, Shiraz, and Ahvaz. Some of these accounts called for protests in Khuzestan on October 14, which did materialize in three different cities across the province on that date. Another account claimed that it had activated “sabotage groups” to destabilize the regime on October 14. The Tehran Neighborhood Youth group currently has the most followers and has posted for the longest period of time, possibly suggesting that it inspired copycat accounts based in other cities.
Some of these groups are presenting themselves as having moved from protest organization to coordinating phase one insurgency attacks.
In private, Democratic party officeholders are super racist.
But they’ll arrest parents and take their children if you fail to bow to their transexual madness. “Virginia Democrat Bill Would Criminally Prosecute Parents Who Don’t Affirm Their Kids As Transgender. Previous attempt at the bill was co-sponsored by a senator who served jail time for having sex with a teenager.”
A Virginia Democrat lawmaker says she will introduce legislation to have parents criminally prosecuted if they do not “affirm” their child as transgender. Teachers and social workers would report parents to Child Protective Services under the bill envisioned by state Delegate Elizabeth Guzman (D-Fauquier).
Guzman told WJLA that “It could be a felony, it could be a misdemeanor, but we know that CPS charge could harm your employment, could harm their education, because nowadays many people do a CPS database search before offering employment.”
Guzman, a social worker, went public with her plans to introduce the bill a week after The Daily Wire reported that a National Association Of School Psychologists official named Amy Cannava boasted that she was working with an unnamed state delegate matching Guzman’s description to craft such legislation. “I want to see a kid in a home with food and shelter and insurance and support, but I also don’t want to lose kids to death,” Cannava said, adding that “I will not deny the fact that I have put parents in their place in my office or at school.”
Cannava is also affiliated with a group called the Pride Liberation Project that said it would pick up trans and gay teens who didn’t like their parents, and “work with other supportive adult organizations in the region to find you someone who can provide you a kind and affirming home.”
A similar bill was quietly introduced in 2020 by Guzman and four other Democrats immediately after they took control of the legislature in the 2019 elections. It redefined the term “abused or neglected child” to include one whose parent “inflicts, threatens to create or inflict, or allows to be created or inflicted upon such child a physical or mental injury on the basis of the child’s gender identity or sexual orientation.”
The sole Senate sponsor of the 2020 bill was Joe Morrissey, who served prison time for contributing to the delinquency of a minor after sleeping with his teenage secretary. He accepted a plea deal after initially being indicted on possession of child pornography and other charges.
You know who else hates rolling out the gay agenda to public schools? Muslims.
The only religious people the left is truly scared to offend are Muslims. Criticizing Muslims is completely off the table according to the left’s rules of engagement, so if Muslims are upset about something, the amount of twisting, back-bending, and acrobatics the left will perform in order not to offend them will be something to see.
So when hundreds of Muslim parents, upset at gay porn in the school libraries, showed up to a school board meeting in Dearborn, Mich., and it devolved into shouting and chaos with board members running away and gay protesters being chased to their cars, the fallout was absolutely hilarious. The headline in the Detroit Free Press after the event went haywire was “LGBTQ and Faith Communities Struggle for Unity.” BAHAHAHAHAHAHA. Can you imagine what the headline would have been if it were a Baptist church chasing gay protesters to their cars? “Fascist White Supremacist Book Burners Bash Gay Man in Parking Lot,” or “Rabid Religious Zealots Terrorize Gay Man Defending Right to Read,” or something equally terrible. I don’t know about you, but I’m enjoying this disaster.
Enjoy this thread and all the videos in it. I know I did.
Shouting between various factions as groups take over Dearborn public schools board meeting. Board members have left. Unclear if they are coming back or if meeting will restart. Heavy police presence. pic.twitter.com/XIMEqIRR1X
Problem: Too many Germans are voting for a rightwing party the left disapproves of. Solution: Ban it. Thank God banning other political parties in Germany has never had any negative consequences…
Speaking of things that could never possibly have any negative consequences, Balarus dictator and Putin toady Alexander Lukashenko decrees that all price increases are forbidden. Enjoys those coming goods shortages, Belarussians. (Hat tip: Stephen Green at Instapundit.)
Florida Surgeon General releases study showing heightened cardiac death rates for men ages 18-39 after taking the Flu Manchu mRNA vaccine. So Twitter banned him. Thou Shalt Have No Other Gods Before The Narrative. (They later reinstated him.)
Ukrainian troops shoot down a cruise missile with a MANPADS.
Alex Jones ordered to pay $965 million to Sandy Hook families. As I noted last week, Alex Jones is an unreliable loon, but that judgment seems excessive and punitive merely for running his mouth.