Posts Tagged ‘Microsoft’

Does Malicious Backdoor Compromise SSH?

Monday, April 1st, 2024

A newly discovered backdoor found in the xz liblzma library of XZ Utils, the XZ format compression utilities included in most Linux distributions, targets the RSA implementation of OpenSSH.

For those outside of tech, that sentence was an unreadable jumble of acronyms. For those inside tech, a chill probably ran down their spine, as those technologies are everywhere. Anytime anyone buys something online, they’re going to be using SSH to create a secure channel to pass transaction information. [As a commenter noted, SSH is a command tool rather than Secure Socket Layer (SSL), which is used for encrypted transactions. Mental typo. My bad. – LP.] Depending on how many distros are using that library, the consequence range from “bad” to “really, really bad.”

Details:

A vulnerability (CVE-2024-3094) in XZ Utils, the XZ format compression utilities included in most Linux distributions, may “enable a malicious actor to break sshd authentication and gain unauthorized access to the entire system remotely,” Red Hat warns.

The cause of the vulnerability is actually malicious code present in versions 5.6.0 (released in late February) and 5.6.1 (released on March 9) of the xz libraries, which was accidentally found by Andres Freund, a PostgreSQL developer and software engineer at Microsoft.

“After observing a few odd symptoms around liblzma (part of the xz package) on Debian sid installations over the last weeks (logins with ssh taking a lot of CPU, valgrind errors) I figured out the answer: The upstream xz repository and the xz tarballs have been backdoored,” he shared via the oss-security mailing list.

According to Red Hat, the malicious injection in the vulnerable versions of the libraries is obfuscated and only included in full in the download package.

“The Git distribution lacks the M4 macro that triggers the build of the malicious code. The second-stage artifacts are present in the Git repository for the injection during the build time, in case the malicious M4 macro is present,” they added.

“The resulting malicious build interferes with authentication in sshd via systemd.”

I’m just going to note for the record that a whole lot of longtime Linux programmers absolutely hated the introduction of systemd. I don’t have deep enough Linux chops to take a side in this controversy, or know whether systemd was a significant factor in allowing the exploit to work.

Moving on:

The malicious script in the tarballs is obfuscated, as are the files containing the bulk of the exploit, so this is likely no accident.

“Given the activity over several weeks, the committer is either directly involved or there was some quite severe compromise of their system. Unfortunately the latter looks like the less likely explanation, given they communicated on various lists about the “fixes” [for errors caused by the injected code in v5.6.0],” Freund commented.

One silver lining is that the problem doesn’t look to be as widespread as it could be.

“Luckily xz 5.6.0 and 5.6.1 have not yet widely been integrated by Linux distributions, and where they have, mostly in pre-release versions.”

Red Hat says that the vulnerable packages are present in Fedora 41 and Fedora Rawhide, and have urged users of those distros to immediately stop using them.

“If you are using an affected distribution in a business setting, we encourage you to contact your information security team for next steps,” they said, and added that no versions of Red Hat Enterprise Linux (RHEL) are affected.

Since Red Hat is usually the default for big E-commerce platforms, it looks like this exploit is merely “bad” rather than “really, really bad,” which means its not nearly as bad as, say, Log4J was. Your Amazons and eBays are probably safe from the exploit.

The people who are likely going to be hurt by this exploit are mom and pop E-commerce sites using their webhost’s “build an E-commerce site using these easy tools” feature. The smaller the site, the more likely they’re using a free distro, some of which may have this vulnerability.

Whatever the site, they should run an updated software composition analysis tool on stacks and build-chains to see if they’re vulnerable.

LinkSwarm For February 9, 2024

Friday, February 9th, 2024

The Senate’s bad border deal goes down badly, Big Brother is (still) watching you, Netanyahu tells everyone calling for a Gaza ceasefire to stick it in their murder tunnels, more Democrats arrested for (or convicted of) fraud, and a tiny bit of Disney news. It’s the Friday LinkSwarm!

  • Republicans took one look at the abomination of a “bipartisan” border deal and declared it dead on arrival.

    In a key vote on Wednesday, Senate Republicans moved to block the long-anticipated bipartisan border deal, which ties border-security provisions to aid for both Israel and Ukraine.

    The bill was blocked in a 49 to 50 procedural vote, with only four Republicans joining Democrats in backing the legislation. The bill needed 60 votes to advance.

    This setback comes after months of negotiations between Senate Republicans and Democrats on a measure President Joe Biden strongly requested. While the GOP wants more resources allocated toward the southern border, House Republicans and former president Donald Trump have made it clear they don’t want the legislation tied to foreign aid.

    Hours after the bill’s details were revealed Sunday night, House GOP leaders rejected the package and declared it “DEAD on arrival in the House.”

    Trump, who has made the border crisis a central issue of his 2024 presidential campaign, also weighed in on the border deal earlier this week. “Don’t be STUPID!!! We need a separate Border and Immigration Bill. It should not be tied to foreign aid in any way, shape, or form!” Trump posted on Truth Social.

    Before the Senate voted on the matter, Biden blamed Trump for Republicans’ fierce opposition to the bill.

    “Now, all indications are this bill won’t even move forward to the Senate floor,” Biden said Tuesday. “Why? A simple reason: Donald Trump.”

    Hey Biden, I’m already going to vote for Trump. You don’t need to keep giving me new reasons.

    The $118 billion Senate proposal includes about $60 billion in Ukraine funding, $14 billion in Israel aid, and $20 billion in border-security improvements, among various other items listed in the legislative package.

    Senators James Lankford of Oklahoma, Lisa Murkowski of Alaska, Susan Collins of Maine, and Mitt Romney of Utah were the only Republicans to vote in favor of the bill on Wednesday.

    Lankford should be ashamed to be in such company.

  • Texas isn’t taking the Biden Administrations abrogation of the rule of law lying down. “Texas Attorney General’s Legal Challenge to Biden Administration’s ‘Asylum Rule’ Will Proceed. A federal judge ruled Texas raised a plausible claim that the federal government is violating the Appointments Clause of the U.S. Constitution.”

    The Texas Office of the Attorney General (OAG) announced a procedural victory in one of its many ongoing lawsuits against the federal government this week, after a federal district judge ruled against a motion by the Department of Homeland Security (DHS) to dismiss a legal challenge to its “asylum rule,” saying Texas had a plausible constitutional challenge.

    According to the OAG, the federal government violated the Appointments Clause in the U.S. Constitution when the DHS granted power to review asylum cases to immigration officers — a power uniquely held under federal statute by immigration judges.

    “This case offers a rare opportunity to litigate the application of the Appointments Clause of the Constitution, which states that Congress may only vest the power to appoint “inferior Officers… in the President alone, the Courts of Law, or the Heads of Departments,” the OAG wrote in a press statement regarding the case.

    The office explained that by using asylum officers to perform jobs Congress assigned to judges when said officers were not appointed in the same manner, DHS violated the Constitution.

    The OAG also argues that asylum officers are granting more noncitizens asylum than otherwise would be entitled to it. This is causing surges at the border and population increases that are in turn increasing the state’s costs relating to the increases, the state says.

    “It is tremendously important for Texas and for our Constitutional order that this case is allowed to move forward,” Attorney General Ken Paxton said regarding the case. “The Biden Administration must not be permitted to ignore Congress and violate the Constitution. We take every opportunity to hold Biden accountable for his unlawful overreach.”

  • Know who else isn’t wild about Biden’s open borders? Border Patrol agents.

    Rank-and-file Border Patrol agents have slammed the Senate’s $118B Senate funding bill that would guarantee 1.5 million illegal migrants entry to the United States, while sending the majority of funds to Ukraine ($60B+) and Israel ($14.1B).

    Snip.

    “Now that I’ve seen more of it, they can respectfully go fuck themselves. The more I’m seeing the more it just puts what they’ve been doing in writing. You want to shut this down, it’s real easy. Team up [the Department of Defense] with DHS and let us enforce like we were supposed to,” one agent told the Caller, adding “I feel like we are the only nation in the world that is this dumb about the border. Maybe it’s because we haven’t.”

    Oh, and “Aliens from noncontiguous countries shall not be included in the sum of aliens encountered.” Did America’s enemies write this thing?

  • Ted Cruz had his own border security bill that wasn’t considered.

    Cruz went on to say he knew [the Biden border bill] “had zero chance of passage” and that the entire purpose of the bill was to give “political camouflage to Democrats running in November.”

    “Joe Biden can secure the border any day he wants,” Cruz said. “He doesn’t want to.”

    The Secure the Border Act, which passed in the lower chamber as as House Resolution (H.R.) 2, was introduced to the Senate by Cruz in September of 2023, a fact he highlighted Wednesday, saying to “give me Ukraine aid and H.R. 2 and I’ll vote for that.”

    H.R. 2 would have continued construction of the border wall, reinstated the “remain in Mexico” policy, and added border patrol agents and technology for both the southern and northern borders.

    “Democrats do not want to secure the border; they want this invasion,” Cruz continued. “The Americans who are dying as a result, they’re [Democrats] willing to look the other way.”

  • “Matt Taibbi Warns ‘Financial Big Brother Is Watching You.'”

    A few weeks ago, Ohio congressman and Judiciary Committee chairman Jim Jordan’s office released a letter to Noah Bishoff, the former director of the Financial Crimes Enforcement Network, or FinCEN, an arm of the Treasury Department. Jordan’s team was asking Bishoff for answers about why FinCEN had “distributed slides, prepared by a financial institution,” detailing how other private companies might use MCC transaction codes to “detect customers whose transactions may reflect ‘potential active shooters.’”

    The slide suggested the “financial company” was sorting for terms like “Trump” and “MAGA,” and watching for purchases of small arms and sporting goods, or purchases in places like pawn shops or Cabela’s, to identify financial threats.

    Jordan’s letter to Bishoff went on:

    According to this analysis, FinCEN warned financial institutions of “extremism” indicators that include “transportation charges, such as bus tickets, rental cars, or plane tickets, for travel to areas with no apparent purpose,” or “the purchase of books (including religious texts) and subscriptions to other media containing extremist views.”

    During the Twitter Files, we searched for snapshots of the company’s denylist algorithms, i.e. whatever rules the platform was using to deamplify or remove users. We knew they had them, because they were alluded to often in documents (a report on the denylist is_Russian, which included Jill Stein and Julian Assange, was one example).

    However, we never found anything like the snapshot Jordan’s team just published:

    The highlighted portion shows how algorithmic analysis works in financial surveillance.

    First compile a list of naughty behaviors, in the form of MCC codes for guns, sporting goods, and pawn shops.

    Then, create rules: $2,500 worth of transactions in the forbidden codes, or a number showing that more than 50% of the customer’s transactions are the wrong kind, might trigger a response.

    The Committee wasn’t able to specify what the responses were in this instance, but from previous experience covering anti-money-laundering (AML) techniques at banks like HSBC, a good guess would be generation of something like Suspcious Activity Reports, which can lead to a customer being debanked.

    If Facebook, Twitter, and Google have already shown a tendency toward wide-scale monitoring of speech and the use of subtle levers to apply pressure on attitudes, financial companies can use records of transactions to penetrate individual behaviors far more deeply. Especially if enhanced by AI, a financial history can give almost any institution an immediate, unpleasantly accurate outline of anyone’s life, habits, and secrets. Worse, they can couple that picture with a powerful disciplinary lever, in the form of the threat of closed accounts or reduced access to payment services or credit. Jordan’s slide is a picture of the birth of the political credit score.

    Tiabbi says worse revelations are to come…

  • “Netanyahu Rejects Hamas Cease-Fire Demands, Vows to Fight until ‘Absolute Victory.'”

    Israeli prime minister Benjamin Netanyahu rejected Hamas cease-fire demands on Wednesday, vowing to fight on until “absolute victory.”

    Netanyahu made the comments shortly after meeting with Secretary of State Antony Blinken, who arrived in the region Tuesday night after meeting with leaders of Qatar and Egypt in the most serious diplomatic push of the war to secure a cease-fire agreement. Through these diplomatic channels, Hamas presented Israel with a proposal for a three-stage cease-fire that would last for 135 days and culminate in the end of the war.

    “Surrendering to Hamas’s delusional demands that we heard now not only won’t lead to freeing the captives, it will just invite another massacre.”

    Indeed.

  • The Special Counsel’s report on Biden’s mishandling paints a picture of Biden’s mental decline we all know is true but which the media refuses to report.

    President Biden couldn’t even remember when he was vice president or when his son Beau had died, leading special counsel Robert Hur to conclude that he could not bring charges for mishandling of classified documents, because a jury would see the president “as a sympathetic, well-meaning, elderly man with a poor memory.”

    In a report, Robert Hur concluded that Biden “willfully retained and disclosed classified materials after his vice presidency when he was a private citizen.” But he declined to issue any charges, in part because Biden’s poor recollection would make him hard to convict.

  • If you want to see Fani Willis taken down only the way Ace of Spades can, then I direct your attention to “CashApp Cougar Fani Willis: Okay, Fine, So I Used Taxpayer Money to Hire a Human Meat-Mallet to Pound My Snizz Into Thin Tender Strips Like Veal Scallopini.” (Hat tip: Reader Tig if Brue.)
  • No less than 70 current and former employees of the New York City Housing Authority just caught federal charges for over $2 million in bribes. We call that “A good start.”
  • “ICE Operation Nabs a Dozen Illegal Aliens Convicted of Crimes Against Children.”
  • Radical, Soros-backed leftist Travis County DA has a primary opponent in Jeremy Sylestine.
  • “Former Houston Mayor Turner’s Senior Aide Sentenced Over Bribes Related to City Permits.”
  • Democratic Senator Chris Murphy of Connecticut admits that his favorite Americans aren’t Americans.
  • Open borders in the UK means giant lines for NHS dentists.
  • In order to push green graft, the Biden Administration has designated Martha’s Vineyard as “low income” so they can get EV subsidies.
  • The Austin City Council will vote on creating a giant slush fund for left-wing activists. Of course they’re calling it an “Environmental Investment Plan”…
  • Kentucky tranny gets no jail time for molesting a baby.
  • Pakistan had an election and both sides claim they won.
  • Is China exporting deflation to the world?
  • In China, 30 million WeChat accounts are shut down in a single day.
  • Did a “SIM swapping crew” steal $400 million from FTX the same day it declared bankruptcy? That timing seems…suspicious.
  • Members of the Austin American-Statesman took one look at the vast wave of layoffs hitting newsrooms across the country and decided “Now is the perfect time to go on strike!” (Note: Elon Musk should buy the name, fire everyone, and build a national quality newspaper from scratch.)
  • YouTube threatens Louis Rossmann and FUTO for violating the terms of service for the APIs they’re not using.
  • Microsoft Edge is stealing Chrome tabs.
  • Dell demands all workers (no matter how far away) return to the office. Those who don’t will be “placed on a ‘career limiting’ fully remote contract. In my experience, working for Dell is itself career limiting
  • Man shoots home invader…with a musket.

  • Disney is evidently moving all hand animation to other countries. “I feel like this is punishment for the Burbank studio for delivering a terrible movie [Wish].” More.
  • Disney makes $1.5 billion investment in Fortnite creator Epic Games. Fremium games are a very tricky space, and Fortnite has been around since 2017. There’s a strong possibility that Disney has bought high here.
  • Mojo Nixon, RIP.
  • Budget drag race community comes together to help fan with terminal brain tumor who’s also the happiest guy they know. “Don’t feel bad for me. Everyone’s terminal.”
  • Former Houston Texas receiver Andre Johnson finally assumes his rightful place in the NFL Hall of Fame.
  • Who do you think treats dogs better: Palestinians or Israelis?

    (Hat tip: Ace of Spades HQ.)

  • Hit the tip jar if you’re so inclined.





    “A Mass Extinction Event For Startups”

    Thursday, January 25th, 2024

    The Biden recession and other trends made 2023 a horrible year for startups.

  • “Big startups are shutting down. According to PitchBook, more than 3,000 private venture backed startups failed in the last year.”
  • “Of the startups raising money, 19% were funded at a lower valuation than in prior funding rounds.”
  • “38% of VCs disappeared from dealmaking last year and more than a quarter of a million workers at tech companies were laid off over the same period.”
  • “US corporate bankruptcy filings closed out 2023 with the most filings since 2010. The year has been described as a mass extinction event for startups in the press.”
  • Some of the startup failures Boyle namechecks (Hyperloop, Bird) seemed like stupid ideas from the git-go. “Bird the electric scooter rental company—which was also supposed to reinvent public transportation—filed for chapter 11 bankruptcy protection. It was the fastest startup to ever land a billion-dollar valuation, and at its peak was worth two and a half billion dollars. It was delisted from the New York Stock Exchange in September after failing to maintain a market cap of above $15 million dollars for 30 consecutive days.”
  • “Who would have thought that renting scooters to drunk people for a dollar (who would then throw them in a canal on their way home) would be a money losing business? Bird ran up more than $1.6bn in net losses since 2018 before finally running out of money.”
  • Smile Direct Club: $8.9 billion valuation at 2019 IPO. “The stock fell in value over time as the company proved to be unprofitable year after year. The company shut down last month $900 million dollars in debt.”
  • One I never heard of: “The health tech startup Olive AI which reached a peak valuation of $4 billion dollars in 2020 driven by the need for automation in healthcare during the pandemic. The company raised over 900 million dollars from investors. In 2022 the company began laying off staff citing ‘tough economic conditions.’ The company was allegedly trying to raise money when it abruptly shut down in November. Going out of business in 2023 was particularly surprising for a company with AI in its name.” Indeed, AI seems to be the current space where stupid money goes to die.
  • Another one I never heard of: Zume.

    No.

    “Zume – the robot pizza delivery company which had raised $445 million dollars in VC funding, the majority of which came from SoftBank in 2018 at a two and a quarter billion-dollar valuation, shut down this summer.” Stupid, but at least I can see why California companies would invest heavily in food automation with that $16 (and rising) minimum wage.

  • WeWork “set out to revolutionize office real estate – by having an app – which I’m told didn’t work very well, and free beer on tap filed for bankruptcy in November.” I’ve covered WeWork previously.
  • “WeWork and its founder Adam Neumann were the poster boys of how a blitzscaled business model led by a charismatic founder could apply a veneer of technology to an old business idea and attract venture capital funding to achieve a multibillion dollar valuation.”
  • “At its peak, WeWork was valued in private markets at $47 billion dollars. Softbank alone invested 16 billion dollars into the company. Masayoshi Son, SoftBank’s founder, allegedly invested his first $4.4 billion dollars in the shared office space company after Neumann gave him a 12-minute tour of a WeWork in 2016. With such a short tour, it’s unlikely that the free beer even had an impact.”
  • “Softbank – run by Masayoshi Son (Japan’s Cathie Wood) was one of the biggest startup investors in the last decade. They invested in all sorts of non tech companies that were made to look like tech in order to attain a sky-high valuation. According to Bloomberg, the SoftBank Vision Fund alone lost $53 billion dollars over the last two years on startup investments.”
  • “We have seen a very difficult period for startups over the last year or two, but it comes in the wake of probably the best period for VC backed startups in decades. During the decade from 2011 to 2021 VC investment in private start-ups grew more than sevenfold, from 46 billion dollars in 2011 to $345 billion dollars in 2021.”
  • “In 2022 when the federal reserve began hiking interest rates, this money began drying up as investors lost their taste for unprofitable, but high growth, investments.”
  • That investment boom was driven by two things: Low interest rates and “a recent history of profitable exits from VC funded startups like Facebook, Google, Whatsapp and Snap meant that investors were suddenly paying a lot of attention to tech startups – hoping to repeat those successes.”
  • “Venture capital went from being a small asset class run out of offices on Sand Hill Road that had burned investors in the dot com bubble to a massive global asset class like hedge funds or private equity.”
  • The Flu Manchu lockdowns brought investment from “‘working from home’ companies like Zoom and Peloton.” I always thought of Peloton as a lifestyle luxury brand.
  • “People were using apps like Uber and DoorDash for food delivery, and booking rentals on Airbnb to get out of big cities now that they no longer had to turn up in the office.”
  • “While the prior wave of profitable high growth tech stocks had been (one way or another) in the advertising space, or in businesses like cloud computing, the new wave of startups had untested business models—gig economy businesses which attracted a lot of competition and might never flip to profitability—or robot-made pizza which would be cooked on route to a customer’s home.”
  • “A lot of the VC’s possibly believed in many of the questionable investments that have since gone bust, but a venture capital fund isn’t really there to hold on to these investments until the underlying business flips to profitability. They invest at the idea stage with the goal of selling these businesses on to the public when the hype is at its peak.”
  • “They did manage to unload a number of the biggest flops like WeWork – but not at the valuations they were hoping for, and have found themselves holding the bag on a lot of investments that they bought into at peak valuation.”
  • “The huge valuations many of these companies were attaining in the private market may have been more of a function of how much money had flowed into the private tech startup market since 2011 rather than necessarily reflecting the quality of these companies and their business models.”
  • “According to Erin Griffith at The New York Times, $27.2 billion dollars in VC funding had gone into the 3,200 venture-backed companies that went out of business in the first 11 months of 2023.” And that’s just the firms trackable on PitchBook. The true total is almost certainly higher.
  • “That 27.2 billion dollar number excluded many of the largest startup failures that went public, like WeWork, or that found buyers at much lower prices than VC investors had invested at.”
  • “The hype around AI that we have seen in the last year has masked a lot of the losses in the tech space.”
  • “Meta was up 178 percent last year due to a combination of AI hype and cost cutting within their core business. This covers up the 46.5 billion dollars lost on the Metaverse – which no one will venture into, for fear that they run into Mark Zuckerberg.” I strongly suspect that a lot of those VR losses are actually money siphoned off for something else.
  • Despite this, stocks like Meta, Microsoft and Nvidia have hit all-time highs.
  • “One of the negative economic effects of startup shutdowns is that in such an environment it becomes harder for founders with good business ideas to get funding.”
  • “According to PitchBook, the number of active investors in US Venture Capital, which was defined as firms that made two or more deals in the last year, plummeted by 38% in the first three quarters of 2023 compared to the same period the prior year.”
  • Many of the startup failures were zombie companies, those that should have failed earlier but were kept alive by VC money and low interest rates.
  • “No one wants to see firms going out of business, especially startups which are often the most exciting and innovative firms, but if a business model makes no sense, or only works in a zero-interest rate environment, then its disappearance means that capital can again flow in the direction of the best businesses.”
  • (Previously.)

    The startup bust has direct negative effects on me personally, as I’m still between technical writing positions, and a lot of the jobs I’ve gotten over the past two decades have been with startups.





    Explaining The Sam Altman/OpenAI Thing

    Tuesday, December 5th, 2023

    Hey, remember that whole “Sam Altman fired as CEO/reinstated as CEO of OpenAI” thing a couple of weeks ago? Here’s the archive story.

    Sam Altman was reinstated late Tuesday as OpenAI’s chief executive, successfully reversing his ouster by the company’s board last week after a campaign waged by his allies, employees and investors, the company said.

    The board would be remade without several members who had opposed Mr. Altman.

    “We have reached an agreement in principle for Sam to return to OpenAI as CEO with a new initial board of Bret Taylor (Chair), Larry Summers, and Adam D’Angelo,” OpenAI said in a post to X, formerly known as Twitter. “We are collaborating to figure out the details. Thank you so much for your patience through this.”

    The return of Mr. Altmanand the potential remaking of the board, capped a frenetic five days that upended OpenAI, the maker of the ChatGPT chatbot and one of the world’s highest-profile artificial intelligence companies.

    “i love openai, and everything i’ve done over the past few days has been in service of keeping this team and its mission together,” Mr. Altman said in a post to X. “with the new board and w satya’s support, i’m looking forward to returning to openai, and building on our strong partnership with msft.”

    OpenAI’s board surprised Mr. Altman and the company’s employees on Friday afternoon when it told him he was being pushed out. Greg Brockman, the company’s president who co-founded the company with Mr. Altman and others, resigned in protest.

    The ouster kicked off efforts by Mr. Altman, 38, his allies in the tech industry and OpenAI’s employees to force the company’s board to bring him back. On Sunday evening, after a weekend of negotiations, the board said it was going to stick with its decision.

    But in a head-spinning development just hours later, Microsoft, OpenAI’s largest investor, said that Mr. Altman, Mr. Brockman and others would be joining the company to start a new advanced artificial intelligence lab.

    Nearly all of OpenAI’s more than 700 employees signed a letter telling the board they would walk out and follow Mr. Altman to Microsoft if he wasn’t reinstated, throwing the future of the start-up into jeopardy.

    Four board members — Ilya Sutskever, an OpenAI founder; Adam D’Angelo, the chief executive of Quora; Helen Toner, a director of strategy at Georgetown’s Center for Security and Emerging Technology; and Tasha McCauley, an entrepreneur and computer scientist — had initially decided to push Mr. Altman out.

    Well, here’s Patrick Boyle to provide some context:

    A few takeaways:

  • There are two OpenAIs: “The non-profit OpenAI, Inc. registered in Delaware, and its for-profit subsidiary OpenAI Global, LLC.”
  • Musk was an early, and big, investor in the non-profit. “The founders pledged over one billion dollars to the venture, but actually only contributed around $130 million dollars- the majority of which came from Elon Musk.”
  • When he felt OpenAI was falling behind in 2018, he wanted to take over OpenAI himself. When the board rejected that, he resigned and took future pledged money with him, which blew a huge hole in their budget. (Whatever you think of Musk, I don’t think not being busy enough is his problem.)
  • Then came the for-profit doppelganger.
  • “The profits being capped at 100 times any investment.”
  • “The company explained this decision saying, ‘We need to invest billions of dollars in the coming years into large-scale cloud compute, attracting and retaining talented people, and building AI supercomputers.’ This transition from nonprofit to for-profit required OpenAI to balance its desire to make money with its stated commitment to ethical AI development.”
  • “This unconventional structure meant that Open AI had a board of directors, which in theory controls the entire corporate structure (which includes the charity and the capped profit company) – but which unlike other boards is not accountable to shareholders. The directors are in fact not allowed to own any stock to prevent a conflict of interest, because they are specifically not supposed to be aligned with shareholders.”
  • “The companies operating agreement – to investors – says – in writing: ‘It would be wise to view any investment in OpenAI in the spirit of a donation, with the understanding that it may be difficult to know what role money will play in a post-AGI world.’ Documents like this – that were written by an actual lawyer – highlight the problems we are starting to see from the combined popularity of science fiction in Silicon Valley and widespread microdosing of hallucinogens.”
  • “In the real world, where the role of money is reasonably well defined, Open AI is an unprofitable company and is expected to need to raise a lot more money over time from investors like Microsoft, to keep up with the high costs of building more sophisticated chatbots.”
  • “Despite this lack of profitability, the company is valued by investors at 86 billion dollars, and Bloomberg reported last weekend that ‘some investors were considering writing down the entire value of their OpenAI holdings to zero.'”
  • “Former colleagues would have an open door to follow and join a new AI unit, according to Microsoft chief Satya Nadella. As much of a win as this might have appeared for Microsoft (people were saying that they had managed to buy the hottest AI firm for zero), this might not have been the optimal outcome for them, as they would likely have had to deal with antitrust regulators and lawsuits from other Open AI investors.”
  • “The majority of Open AI’s 700 or so employees signed an open letter to the board demanding that the board resign and that they rehire Altman. The letter stated that the board had told the employee leadership team that allowing the company to be destroyed ‘would be consistent with the mission.’ The employees said that unless their demands were met, they would resign from Open AI and join the new subsidiary of Microsoft being headed up by Altman and Brockman.”
  • “You have to wonder what the employee contracts at Open AI look like that the entire staff could leave to work for a major investor in the company leaving Open Ai as an empty shell.”
  • “Typically, executives like Altman would have contracts that prevent them from hiring away key staff once they are no longer at the firm, and staff would have signed NDA’s preventing them from taking any technology with them.”
  • “The OpenAI story is a bit of a crazy one, where Microsoft and a number of other sophisticated investors agreed to put billions of dollars in, and employees got stock grants, all at an $86 billion valuation, without the contractual or fiduciary rights that investors might normally expect.”
  • Rival Anthropic has a similar structure.
  • “Bad corporate governance has been a growing issue particularly in Silicon Valley where companies like Google, Facebook and Snap structured their IPO’s such that founders were left with unchallenged power to do almost anything that they want.” Google and Facebook are garbage companies, but there are some scenarios where only founders can keep the company on a long-term vision rather than goosing quarterly profits (Jobs at Apple comes to mind).
  • Warren Buffet has a similar mechanism (A shares of stock only he controls) to keep control of Berkshire Hatheway.
  • “Since you are buying shares of companies in perpetuity, leadership who are not accountable to shareholders can take value destructive paths without answering to anyone. Meta’s Reality Labs division, which houses its efforts to build the metaverse, has lost around $46.5 billion dollars since 2019. Would Mark Zuckerberg have been able to waste this much money if he was accountable to investors?” I have a fairly strong suspicion that division is being used to hide all sorts of shenanigans.
  • Boyle is deeply suspicious of “stakeholder capitalism” as opposed to the old-fashioned, profit-maximizing kind.”
  • The thing missing from this summary, and all the coverage of the story I’ve seen, is why Altman was originally let go, and none of the principals involved seem to be talking about it…

    LinkSwarm for December 1, 2023

    Friday, December 1st, 2023

    Congratulations! You’ve successfully made it to the last month of 2023! Give yourself a cookie!

    I’ve spent most of today getting my latest book catalog ready to send out, so I’m probably going to have to break this LinkSwarm into two parts. This part: More Biden corrupton evidence, Big Brother wants all your tweets, Jihadi gets stabby in Ireland, and a couple of fairly notable political deaths.

  • “Bank Investigator Flagged ‘Unusual’ Chinese Payments behind $40k Check to Biden, Raised Possibility of Influence Peddling.” Ya think?

    A bank money-laundering investigator expressed serious concerns about a transfer of funds from China that ultimately trickled down to President Biden in the form of a $40,000 check from his brother, James Biden, according to an email obtained by the House

    Biden received a $40,000 personal check from an account shared by his brother, James Biden, and sister-in-law, Sara Biden, in September 2017 — money that was marked as a “loan repayment.” The alleged repayment was sent after funds were filtered from Northern International Capital, a Chinese company affiliated with the Chinese energy firm CEFC, through several accounts related to Hunter Biden and eventually down to the personal account shared by James and Sara Biden.

    Northern International Capital sent $5 million to Hudson West III, a joint venture established by Hunter Biden and CEFC associate Gongwen Dong on August 8.

    On the same day, Hudson West III then sent $400,000 to Owasco, P.C., an entity owned and controlled by Hunter Biden. Six days later, Hunter Biden wired $150,000 to Lion Hall Group, a company owned by James and Sara Biden. Sara Biden withdrew $50,000 in cash from Lion Hall Group on August 28 and then deposited the funds into her and her husband’s personal checking account later that day.

    On September 3, 2017, Sara Biden wrote a check to Joe Biden for $40,000.

    We all know that if Trump did something remotely close to this, he’d already be in prison.

  • Hamas Violates Cease-Fire, Israel Resumes Airstrikes in Gaza.” This is my shocked face.
  • Big Brother says that all your tweets are belong to us.

    Special Counsel Jack Smith demanded information on Twitter users who liked or retweeted former President Donald Trump’s tweets leading up to the January 6 riot, according to a heavily redacted search warrant and other documents released Monday.

    Smith’s comprehensive search warrant sought the 2024 Republican presidential primary front-runner’s search history, direct messages, and “content of all tweets created, drafted, favorited/liked, or retweeted” by his account from October 2020 to January 2021.

    The special counsel also demanded a list of all devices used to log into Trump’s then-Twitter, now X account, as well as information on users who interacted with the then-president in the months leading up to Jan. 6, 2021, the court filings show.

    Among the information Smith sought were lists of all Twitter users who “favorited or retweeted” Trump’s tweets, “as well as all tweets that include the username associated with the account” in “mentions” or “replies.”

    The special counsel also requested a list of every user Trump “followed, unfollowed, muted, unmuted, blocked, or unblocked” and a list of users who took any of the same actions with Trump’s account during the aforementioned timeframe.

    “There is no benign or reasonable justification for that demand,” wrote former FBI agent/whistleblower Steve Friend on X.

  • “Patrick Wojahn, a well-known LGBTQ activist and friend of key people in the Joe Biden administration, was sentenced to 30 years in prison on Monday. Wojahn pleaded guilty to 140 charges related to child pornography as part of a deal struck with prosecutors.”
  • Henry Kissinger dead at 100.

    Henry Kissinger, the legendary diplomat who played a central role in advising Presidents Richard Nixon and Gerald Ford on foreign policy, died at his home in Connecticut late Wednesday at age 100.

    Kissinger was the only person to simultaneously be secretary of state and hold the position of White House national-security adviser. In 1973, he shared the Nobel Peace Prize with Le Duc Tho for their work in brokering the 1973 Paris Agreement ending America’s involvement in Vietnam.

    Kissinger was born in Germany in 1923. Three months before Kristallnacht, his family fled, bound for New York City. Kissinger served in the Army during World War II and was assigned to the 84 Infantry Division, voluntarily staying behind at the Battle of the Bulge to reportedly conduct “hazardous counter-intelligence duties” while also “making good use of his German.”

    Kissinger was a key Cold War figure as Secretary of State, and one who doesn’t deserve all of the extensive condemnation he receives (for different reasons) from left and right, nor the hosannas of praise he received from the mainstream media during is heyday. The instantly betrayed peace treaty with North Vietnam (the won he won the Nobel Peace Prize for) was shameful, but LBJ’s incompetence and Washington elite failure of nerve probably doomed South Vietnam before Kissinger even got to the negotiating table. The opening to China was a brilliant move to counter the Soviet Union at the time, and helped usher in a brief period of economic and political liberalization that has now been almost completely undone. SALT1 and the ABM treaties were violated by the Soviet Union before the ink was even dry.

    Kissinger was at his best down deep in the intricacies of face-to-face diplomacy, and played a key role in negotiating details after the Yom Kippur War. Indeed, Kissinger’s goal of stabilizing the Middle East (at least as far as preventing another major Arab-Israeli War) was met.

    Kissinger was ultimately wrong for favoring detente over rollback, but that preference was also emblematic of the Washington foreign policy establishment of the time, and it would take Ronald Reagan’s election in 1980 to set America on the right course (and the Soviet Union to the dust-heap of history).

  • Sandra Day O’Connor dead at 93. Eh, she wasn’t the worst Republican appointee to the Supreme Court.
  • Irish riot over illegal alien stabbing spree against children. Rioting is bad, mmkay, but Irish citizens, like those across the rest of the EU, are tired of the enforced consensus for allowing unassimilable Islamic immigrants to cross the border and immediately apply for the welfare rolls.
  • History made as the Irish riot while sober.
  • “Ireland Declares Asking An Immigrant To Stop Stabbing You A Hate Crime.”
  • Not just Ireland. “‘We are here to stab white people’: Teen killed, 16 others wounded in French village after migrant gang reportedly descends on winter ball.”
  • High prices and “lot rot” are doing CarMax in. Not to mention the Biden recession…
  • More of that voting fraud that doesn’t exist. “Virginia Election Official ‘Altered Election Results’ in 2020.” (Hat tip: Stephen Green at Instapundit.)
  • I just must not be paying attention, because I missed I missed the return of former UK PM David Cameron as foreign secretary a few weeks ago. Eh, you do get a lot of reruns this time of year…
  • “Disney got Microsoft to change its AI image generator because people were making too many savage Pixar-style posters.”
  • Examples, some of which are very not safe for work:

  • Speaking of AI, Sports Illustrated has evidently been caught using it rather than hiring competent sportswriters.
  • Critical Drinker is not too impressed with Napoleon.
  • “Biden Airdrops Humanitarian Resupply Of Hostages Into Gaza.”
  • China Is Screwed: Pipe People

    Sunday, August 13th, 2023

    I didn’t intend to do an all “China is Screwed” video roundup weekend, but the videos keep stacking up and I need to post some rather than producing a giant unwieldy post with hours of footage.

    First up: Young people’s whose job prospects and futures are so dim that they’re actually living in concrete pipes.

    Takeaways:

  • Certainly America has no shortage of transients living rough, but in contrast to ragged drug addicts, alcoholics and dangerous lunatics, the people living in these pipes look to be normal, healthy 20-something Chinese.
  • Just because you’re living in a concrete pipe doesn’t mean you can’t be a live-streamer. Like the under-the-bridge streamers seen in previous videos, you wonder how widespread this behavior is, or whether we’re just seeing the edge of the freak show.
  • “Despite the female hosts not being beautiful and the male hosts not handsome, it doesn’t affect viewership.” I do rather want to check their numbers, here.
  • “This is because it’s happening in the industrial city known as the world’s factory – Dongguan in Guangzhou.” It’s on the Pearl River Delta near Guangzhou and Hong Kong. “After more than thirty years of China’s reform and opening up, Dongguan, which has always been at the forefront of economic development, has recently seen a wave of business closures and foreign capital relocation.” See also: all those previous China is screwed videos.
  • “When foreign capital withdraws, thousands of Chinese workers lose their jobs. Among these people, some have worked in factories for decades and are now middle-aged. It’s overwhelming to be suddenly faced with unemployment and consequential cost-of-living pressures, coupled with labor competition against millions of university graduates.” I’m sure that sucks, just like getting laid off here sucks. But in a capitalist economy, even a flawed one like we have, is always going to be more flexible about creating jobs that one ruled by a communist party’s aristocracy of pull.
  • “Those who are single simply adapt to homelessness, creating their own personal space amongst the concrete pipes.” Or, you could have, you know, lived modestly, saved money, and shared housing with other people. The fact they haven’t gone this route and are instead living in pipes suggests something in the Chinese economy is even more broken than we think.
  • Foreign companies like Microsoft and Nokia are now moving to Vietnam and India. “Japanese companies like Panasonic, Daikin, Sharp, and TDK are planning to move their manufacturing bases back to Japan. Well-known companies like Uniqlo, Nike, Funai Electric, Samsung, and others are also accelerating their withdrawal from China.”
  • Like industry is also fleeing from elsewhere in China.
  • “The once bustling Bund in Shanghai is now overgrown with weeds due to lack of maintenance and tourism, presenting a scene of desolation. Everywhere in Shanghai’s luxury residential communities, there are messages about subleasing and selling at a loss. The elites, celebrities, and tycoons left Shanghai at the first chance they got after the lifting of the lockdown. The political uncertainty in China and the frequent changes in regulatory clauses by the authorities have made entrepreneurs miserable.” Communists making entrepreneurs miserable? This is my shocked face.
  • “Domestic entrepreneurs are reluctant to invest further, and foreign investors are hastening their departure.”
  • Various Chinese company specific layoffs and financial difficulties snipped.
  • “Wall Street leading figures, after enjoying three years of benefits from the broad opening of China’s financial market, are planning large-scale cuts to projects and staff in China…Goldman Sachs has lowered its five-year plan expectations, and Morgan Stanley has decided not to set up a securities dealer in China, reducing its derivative and futures business investment to $150 million. JPMorgan Chase & Co. began cutting its dedicated staff in China earlier this year.” There’s not a violin small enough.
  • In a capitalist economy, there would be some sort of middle ground between the empty ghost cities and people living in pipes near megalopolises. If you don’t regulate the economy so heavily as to make building housing impossible (I’m looking at you, California and NYC), then profit will drive developers to create housing to fill a market need. With China’s crazy misallocation of loans to unprofitable housing to satisfy regional government growth targets, supply has been so severed from demand that such market-making is impossible.

    China is going to come out of it’s decades-long growth spurt with crumbling cities and people that mostly are still poor.

    Great job, Xi!

    LinkSwarm for June 9, 2023

    Friday, June 9th, 2023

    Welcome to the Friday LinkSwarm! This week: Too much Facebook/Instagram/pedophile news, and not enough songs about buildings and food.

    

  • Funny how the indictment against Trump dropped just as evidence surfaced that Biden had taken $5 million in bribes from Bursima. (Hat tip: Stephen Green at Instapundit.)
    

  • Thanks to “green energy,” there’s a good chance that more energy blackouts are coming this summer.

    Summer’s coming. That means sunshine, swimming, cookouts — and blackouts.

    That’s the warning from the North American Electric Reliability Corporation.

    According to NERC, at least two-thirds of the country is at risk for major power outages this summer.

    This extends to most everyone west of the Mississippi except for Texas.

    Texas and much of the Midwest will be fine, the report says, so long as we don’t experience hot, windless summer days.

    Well, that’s a relief. When do we ever get hot, windless summer days in Texas and the Midwest?

    Part of the problem is the steady removal of fossil-fuel plants from the grid.

    These plants are supposed to be replaced by renewables — wind and solar — but wind doesn’t work on windless days, and solar doesn’t keep your air conditioning running on steamy nights.

    The Wall Street Journal reports the Environmental Protection Agency has made things worse with new nitrogen-oxides rules from its recently finalized “Good Neighbor Plan, which requires fossil-fuel power plants in 22 states to reduce NOx emissions. NERC predicts power plants will comply by limiting hours of operation but warns they may need regulatory waivers in the event of a power crunch.”

  • Institute for the Study of War: “Ukrainian forces conducted a limited but still significant attack in western Zaporizhia Oblast on the night of June 7 to 8. Russian forces apparently defended against this attack in a doctrinally sound manner and had reportedly regained their initial positions as of June 8.” Other sources are reporting modest Ukrainian gains.
  • Instagram is evidently home of a giant pedophile network.

    A comprehensive investigation by the Wall Street Journal and the Stanford Internet Observatory reveals that Meta-owned Instagram has been home to an organized and massive network of pedophiles.

    But what separates this case from most is that Instagram’s own algorithms were promoting pedophile content to other pedophiles, while the pedos themselves used coded emojis, such as a picture of a map, or a slice of cheese pizza.

    Instagram connects pedophiles and guides them to content sellers via recommendation systems that excel at linking those who share niche interests, the Journal and the academic researchers found.

    The pedophilic accounts on Instagram mix brazenness with superficial efforts to veil their activity, researchers found. Certain emojis function as a kind of code, such as an image of a map—shorthand for “minor-attracted person”—or one of “cheese pizza,” which shares its initials with “child pornography,” according to Levine of UMass. Many declare themselves “lovers of the little things in life.” -WSJ

    According to the researchers, Instagram allowed pedophiles to search for content with explicit hashtags such as #pedowhore and #preteensex, which were then used to connect them to accounts that advertise child-sex material for sale from users going under names such as “little slut for you.”

    Sellers of child porn often convey the child’s purported age, saying they are “on chapter 14,” or “age 31,” with an emoji of a reverse arrow.

  • Instagram can’t block pedophiles, but it can block the account of Democratic Presidential Candidate Robert F. Kennedy, Jr. Remember: Opposing the corrupt Biden Cabal is a worse crime than pedophilia for vast swathes of our media elites… (Hat tip: Instapundit.)
  • Speaking of Meta, they’re threatening to “pull news feeds on its platforms for California residents if the state legislature passes the Journalism Preservation Act.” That act “requires big tech companies to pay news outlets a journalism usage fee.” For once the pedo-coddlers are right: No one should be forced to subsidize failing social justice-infected newsrooms.
  • Speaking of pedophiles: “Itasca ISD Superintendent Michael Stevens arrested, charged with online solicitation of a minor.” Maybe parents wouldn’t worry so much about educators trying to screw their children if educators didn’t keep trying to screw their children.
  • This week in Democrats passing unconstitutional laws that strip citizens of rights: “llinois’s Gov. J. B. “Jumbo Burger” Pritzker signed himself a whale of a state law yesterday that went into effect IMMEDIATELY. And, immediately, restricted Illinois citizens from pursuing constitutional claims against their state government unless they filed the lawsuits in one of two, Democratic approved, state sanctioned, Democratic counties – Cook or Sangamon.” That’s a prima facie violation of the First Amendment “right of the people…to petition the Government for a redress of grievances.”
  • Free New York City crack pipe vending machine cleaned out overnight. “Free crack pipe vending machine” sounds like the punchline to a Norm MacDonald joke from the 1990s, but it’s now evidently the policy of New York Democrats.
  • North Dakota’s Republican Governor is running for President. Burgum is evidently a billionaire after being an early investor in Great Plains Software, which was sold to Microsoft in 2001. The fact he’s close to Bill Gates doesn’t give me a lot of warm fuzzies, and Tom Steyer and Michael Bloomberg proved that rich-but-unknown outsiders shoveling money into a Presidential campaign costs you a lot of jack and earn you boatloads of squat. He’s a pretty decent public speaker, but in a blow-dried 80’s executive sense, and he sort of looks like if Richard Belzer had played the Michael Douglas role in Falling Down.
  • By contrast, Chris Sununu realized he had no business running for President. Good.
  • American Airlines has to ground more than 150 regional jets due to a pilot shortage.
  • I know nothing more than this. Evidently local media have ignored it as well:

  • Pitch Meeting for 2023 The Little Mermaid. “Life being better down where it’s wetter is tight!”
  • U.S. women’s soccer team loses 12-0 to fourth tier Welsh soccer club.
  • When life imitates Mythbusters.
  • “Due To High Crime, Mafia Closes Its Chicago Office.” “How are we supposed to conduct respectable business — loan sharking, bribery, racketeering, illegal gambling — with so much crime going on? It’s insane!”
  • LinkSwarm for February 17, 2023

    Friday, February 17th, 2023

    Bit of a mini-LinkSwarm this time around, as this was a week that I almost caught up on stuff delayed by the ice storm.
    
    

  • Bidenomics: “Core CPI Rises 32nd Straight Month, Headline Inflation Hotter Than Expected.”
  • “Biden’s job growth is mostly immigrants working for low wages.” Also this: “The Department of Homeland Security has been issuing an unknown number of two-year work permits to illegal immigrants, which will keep them in the workforce suppressing wages and fanning the flames of discontent amongst Americans unable to find jobs until the next presidential election.” What the hell?
  • Auto repos hit new records.
  • California’s income tax revenues decline by 50%. Tax it, and they will leave. (Hat tip: Stephen Green at Instapundit.)
  • Disinformation Inc: State Department bankrolls group secretly blacklisting conservative media.”

    The Department of State has funded a deep-pocketed “disinformation” tracking group that is secretly blacklisting and trying to defund conservative media, likely costing the news organizations vital advertising dollars, the Washington Examiner can confirm.

    The Global Disinformation Index, a British organization with two affiliated U.S. nonprofit groups, is feeding blacklists to ad companies with the intent of defunding and shutting down websites peddling alleged “disinformation,” the Washington Examiner reported . This same “disinformation” group has received $330,000 from two State Department-backed entities linked to the highest levels of government, raising concerns from First Amendment lawyers and members of Congress.

    “Any outfit like that engaged in censorship shouldn’t have any contact with the government because they’re tainted by association with a group that is doing something fundamentally against American values,” Jeffrey Clark, ex-acting head of the Justice Department’s Civil Division, told the Washington Examiner. “The government or any private entity shouldn’t be involved with this entity that’s engaged in conduct that is either legally questionable or at least morally questionable.”

    GDI compiles a “dynamic exclusion list” that it feeds to corporate entities, such as the Microsoft -owned advertising company Xandr, emails show. Xandr and other companies are, in turn, declining to place ads on websites that GDI flags as peddling disinformation.

    The Washington Examiner revealed on Thursday that it is on this exclusion list. The list includes at least 2,000 websites and has “had a significant impact on the advertising revenue that has gone to those sites,” said GDI’s CEO Clare Melford on a March 2022 podcast.

    GDI has identified that the 10 “riskiest” news outlets for disinformation are the American Spectator, Newsmax, the Federalist, the American Conservative, One America News, the Blaze, the Daily Wire, RealClearPolitics, Reason, and the New York Post.

  • Huge earthquake rocks Syria and Turkey. That was less than a week ago and already it’s pretty much out of the news…
  • Another huge story that the news media has done it’s best to ignore: a toxic derailment in East Palestine, Ohio. The blew it up to prevent a BLEVE and ended up releasing Phosgene gas. That’s carrying your World War I reenactment too far.
  • 90-year California Democratic Senator old Dianne Feinstein to retire after 2024. But…
  • A few hour later she was evidently unaware she had retired. Increasingly, “crazy” or “senile” seem to be the two most common flavors of the Democratic Party…
  • Texas Governor Greg Abbott announces legislative priorities for the current session.
    1. Cutting Property Taxes
    2. End COVID Restrictions
    3. Education Freedom (School Choice)
    4. School Safety
    5. Ending Revolving-door Bail
    6. Doing More to Secure the Border
    7. Addressing the Fentanyl Crisis

    We’ll see if he follows through.

  • Followup: Transient encampment moved away from Headpsace Salon so they can go destroy someone else’s quality of life instead. (Previously.) (Hat tip: Dwight.)
  • Dumbass reaches for off-duty cop’s gun, with the expected results. (Hat tip: Dwight.)
  • Inside China’s livestreamer girl factories.
  • Updated contact information for the Austin City Council.
  • Not a Babylon Bee headline: “Catalytic converter stolen from Oscar Mayer Wienermobile in Las Vegas.”
  • I chuckled.
  • Biden Taken To Coroner For Annual Physical.
  • LinkSwarm for April 29, 2022

    Friday, April 29th, 2022

    Stagflation is back, scammers continue to loot taxpayer money from the federal government, Team Global Warming continues it’s perfect losing streak, and dispatches from a deadly accordion war. It’s the Friday LinkSwarm!

  • The U.S. economy shrunk by 1.4% in Q1. “Unexpectedly!” So now we’ve got stagnation to go with that soaring inflation, a key ingredient in the Biden Administration’s Welcome Back Carter cosplay. One more quarter of decline and the recession is officially at hand…
  • “How international scam artists pulled off an epic theft of Covid benefits.”

    In June, the FBI got a warrant to hunt through the Google accounts of Abedemi Rufai, a Nigerian state government official.

    Hello, I am Prince Abedemi Rufai. You are probably surprised by this email…

    What they found, they said in a sworn affidavit, was all the ingredients for a “massive” cyberfraud on U.S. government benefits: stolen bank, credit card and tax information of Americans. Money transfers. And emails showing dozens of false unemployment claims in seven states that paid out $350,000.

    Rufai was arrested in May at John F. Kennedy International Airport in New York as he prepared to fly first class back to Nigeria, according to court records. He is being held without bail in Washington state, where he has pleaded not guilty to five counts of wire fraud.

    Rufai’s case offers a small window into what law enforcement officials and private experts say is the biggest fraud ever perpetrated against the U.S., a significant part of it carried out by foreigners.

    Russian mobsters, Chinese hackers and Nigerian scammers have used stolen identities to plunder tens of billions of dollars in Covid benefits, spiriting the money overseas in a massive transfer of wealth from U.S. taxpayers, officials and experts say. And they say it is still happening.

    Among the ripest targets for the cybertheft have been jobless programs. The federal government cannot say for sure how much of the more than $900 billion in pandemic-related unemployment relief has been stolen, but credible estimates range from $87 billion to $400 billion — at least half of which went to foreign criminals, law enforcement officials say.

    Those staggering sums dwarf, even on the low end, what the federal government spends every year on intelligence collection, food stamps or K-12 education.

    Keep in mind, this is just one government program.

  • More on the same subject.

    They bought Lamborghinis, Ferraris and Bentleys.

    And Teslas, of course. Lots of Teslas.

    Many who participated in what prosecutors are calling the largest fraud in U.S. history — the theft of hundreds of billions of dollars in taxpayer money intended to help those harmed by the coronavirus pandemic — couldn’t resist purchasing luxury automobiles. Also mansions, private jet flights and swanky vacations.

  • Biden Administration creates unconstitutional Ministry of Truth to fight “disinformation,” i.e. truth and opinion that hurts Democrats. This is the lunatic running it:

  • Speaking of Democratic Media Complex lunatics:

  • Libs of TikTok experiences the Streisand Effect. (Hat tip: Sarah Hoyt at Instapundit.)
  • This may be a big reason why the Twitter board were willing to sell to Elon Musk: “Twitter Misses Revenues, Admits ‘Over-Stating’ Millions Of Users.”
  • Speaking of revenue, here are some charts showing how tech giants earn their revenue in different segments. I had no idea that Microsoft was now making more money from Azure than Office. And speaking of Microsoft…
  • Not news: People hate Microsoft product. News: The users are soldiers and our government spent $22 billion on it. (Hat tip: Stephen Green at Instapundit.)
  • “Climate Experts” are now 0-53 with their predictions.
  • “‘Defund the Police’ advocate Cori Bush spent more than $300,000 on private security.” It’s always one rule for you and another for them…
  • This is disturbing.

    For 20 Years, This Prosecutor Had a Secret Job Working For the Judges Who’d Decide His Cases.”

    One of Ralph Petty’s victims is trying to hold him accountable, but she will have to overcome prosecutorial immunity.

    Ralph Petty worked as an assistant district attorney in Midland County, Texas, for 20 years. Like any prosecutor, he fervidly advocated for the government. But he wasn’t just any advocate, because he wasn’t just a prosecutor. Each night, Petty took off his proverbial DA hat and re-entered the courthouse as a law clerk for the same judges he was trying to convince to side with him by day.

    (Hat tip: Dwight.)

  • Miller Middle School in San Marcos, Texas is hosting a “Queer Week” where students as young as sixth grade are urged to dress in “pride” colors, wear nametags with preferred names and pronouns, and “protest” LGBT discrimination.”
  • “A married English teacher at Langham Creek High School was arrested after allegedly sleeping with a 15-year-old student.” Spoiler for those thinking of clicking through for the pic: She’s no prize.
  • Smoking is bad for you. Especially when it causes you to crash the plane you’re flying. (Hat tip: Dwight.)
  • Stop me if you’ve heard this story before: Bold new architecture project becomes ugly and nonfunctional.

    In Kurokawa’s original plan, the Nakagin capsules were meant to be replaced every twenty-five years with updated iterations. That didn’t happen, in part because of the funding that would have required. Each capsule would have cost, according to some estimates, almost nine million yen, or about seventy thousand dollars, to repair. A single capsule couldn’t be removed without removing all those above it, so all units would have to be vacated and updated at once. Over time, the building fell into disrepair. Concerns about asbestos made the towers’ ventilation system unusable, and residents complained about mold and incessant leaks during rainstorms. The owners’ association first voted to sell the building to a developer, in 2007, but the firm soon filed for bankruptcy, throwing the building’s fate into uncertainty. Kurokawa, who had pushed for renovations, died that same year. By 2010, the towers’ hot water had been shut off. The building had become more a work of art than the dynamic architecture that Kurokawa envisioned.

  • “New York Democrats Aim To Tax Ammo To Fund Anti-Gun Research….New York Senate Bill S8415, which would add an arbitrary 5-cent tax per round of ammunition larger than .22 Caliber. Rounds smaller than .22 Caliber would be subject to a 2-cent tax per round. According to the bill, the tax revenue would go to the state’s Gun Violence Research Fund.” That would be unconstitutional with a capital “un.”
  • Headlines you never expect to read: “The deadly accordion wars of Lesotho.” (Hat tip: Dwight.)
  • Lake Mead hit by megadrought. “After nearly half a century, the first intake is out of service and can no longer draw water. Water levels at the lake hit record lows this week, falling to 1,056 feet. Luckily, SNWA has two other intakes at much lower levels that are still operational.”
  • Have a 2017 Chevy Spark? Too bad, Chevy isn’t going to replace the battery anymore. (Update: Maybe not?)
  • Heh:

  • Heh II:

  • Let’s get frensical, frensical…

  • LinkSwarm for August 7, 2021

    Friday, August 6th, 2021

    Greetings, and welcome to another Friday LinkSwarm! Biden not just dropping, but deflating and throwing away the ball on border security, Andrew Cuomo finally behaves badly enough for the MSM to notice, and some tidbits about hacking attacks.

  • Biden’s proposed budget wants to cutting funding for border security…by 96%:

    His administration has presented Congress with a Department of Homeland Security budget proposal that calls for slashing spending on what it calls “Border Security Assets and Infrastructure” by 96%.

    In fiscal year 2021, Congress approved $1,513,000,000 in funding for border security assets and infrastructure. Biden is now asking that Congress approve just $54,315,000 for fiscal year 2022. That is a reduction of $1,458,685,000—or 96.4%.

    What exactly is Biden cutting?

    Biden’s DHS has presented Congress with a 562-page “overview” of its fiscal year 2022 budget proposal for Customs and Border Protection. The explanation for its “Border Security Assets and Infrastructure” plan is presented on pages 326 through 350 of this document.

    The presentation divides “Border Security Assets and Infrastructure” into six categories: Integrated Fixed Towers; Remote Video Surveillance Systems; Mobile Video Surveillance System; MVSS-M2S2 Modular Mobile Surveillance System; Border Security Assets and Infrastructure End Items; and Border Wall System Program.

    In the past two fiscal years—as reported in Biden’s proposal—the Border Wall System Program has been the most significant of these. “This investment,” it says, “includes real estate and environmental planning, land acquisition, wall system design, construction, and construction and oversight of a physical barrier system.”

    In fiscal year 2020, it received $1,375,000,000. In fiscal year 2021, it received the same amount.

    Now, if Biden gets his way, the federal government will not spend one penny in fiscal year 2022 on planning or constructing a “physical barrier system” at the border.

    Obviously, Democrats want a massive influx of illegal aliens so they can amnesty them and have them vote for Democrats. (Hat tip: Stephen Green at Instapundit.)

  • Indeed, the Biden Administration has stopped apprehending illegal aliens at the border.

    As illegal aliens are still being allowed to cross Texas’ open border, U.S. Border Patrol has reportedly reassigned all hands from “apprehending” to “processing.” A former federal agent says these massive waves of illegal aliens are one of the “biggest sources” of rising cases of the Chinese coronavirus and advises Texans to contact all their state officials to stop illegal crossings at the border.

    Victor Avila, a former U.S. Immigration and Customs Enforcement agent, has previously told Texas Scorecard that federal and state officials aren’t making serious efforts to stop illegal aliens from crossing the border. He said the number of illegal border crossings has recently skyrocketed.

    On Tuesday, Kinney County Attorney Brent Smith (R) told Texas Scorecard that U.S. Border Patrol informed him they had been given new orders. “They’ve all been reassigned to processing,” Smith said. “None of them are actually going to be enforcing the border.” Avila commented, “That is what I’m hearing exactly.”

    Kinney County Sheriff Brad Coe described processing as “paperwork, documentation, etc.”

    “We’re in a bad spot now,” Smith said. “Texas is on its own.”

  • Speaking of border security: “Texas landowner fears for kids’ safety amid worsening border crisis, says they can’t play outside anymore.”
  • “More Illegal Immigrants, Border Agents Testing Positive for COVID-19.” The way Democrats love expanding governemnt in the name of fighting Flu Manchu, you wonder if this is a bug or a feature… (Hat tip: Director Blue.)
  • Speaking of fearing for your safety from illegal aliens: “ICE Confirms Suspect in Slaying of MyPillow Employee is Illegal Immigrant…Last week, 55-year-old America Mafalda Thayer was brutally beheaded in Shakopee, Minnesota.”
  • “House Foreign Affairs Committee Republicans released their report on COVID-19’s origins, pointing to evidence of a lab leak, genetic modification, and a cover-up, making the case the virus accidentally emerged from the Wuhan lab in August or September 2019.” Or pretty much what every conservative blogger has been saying for almost a year and a half…
  • “‘For $1/Day’… Double-Blind Ivermectin Study Reveals COVID Patients Recover More Quickly, Are Less Infectious.”
    

  • This week’s Democratic political scandal de jour is an official state probe of New York Governor Andrew “Granny Killer” Cuomo committed multiple instances of sexual harassment. “These interviews and pieces of evidence revealed a deeply disturbing yet clear picture: Gov. Cuomo sexually harassed current and former state employees in violation of federal and state laws,” said State Attorney General Letitia James. It would be ironic if it was this rather than killing some 15,000 elderly New Yorkers by putting Flu Manchu cases in nursing homes that brought Cuomo down.
  • Speaking of which, the New York Times has a recap of the Cuomo’s disasterous Mao Tze Lung policy:

    Gov. Andrew M. Cuomo, once widely celebrated for leading New York out of the coronavirus pandemic’s darkest days, is now embroiled in crisis over how many of the state’s nursing home residents died because of the virus and an apparent effort to hide the true toll.

    Beginning last spring, Mr. Cuomo was criticized over a state requirement that forced nursing homes to take back residents who had been hospitalized with Covid-19 once they recovered. Critics said the policy had increased the number of virus-related deaths among nursing home residents.

    At the time, Mr. Cuomo and his aides dismissed the outcry as politically motivated, and in July, the State Health Department released a report that found the policy was not responsible for an increase. The report did, however, raise questions in some quarters about how the state was reporting deaths.

    In January, New York’s attorney general said the administration had undercounted nursing home deaths by several thousand. Mr. Cuomo later acknowledged as much, blaming the lower figure on fears that the Trump administration would use the data as a political weapon.

    “Don’t you see? We had to lie to you, because Orange Man Bad!”

    The suggestion that the actual death count had been covered up intensified criticism of Mr. Cuomo, including from his allies in state government. The scandal deepened after reports that the governor’s aides had altered the July report to hide the true figure.

    In April, The New York Times reported that Mr. Cuomo’s aides had gone to far greater lengths than previously known to obscure the death toll, repeatedly overruling state health officials over a span of at least five months.

  • New York State Senate minority leader Rob Ortt wonders why Cuomo is still governor:

    First, there was the nursing-home scandal, in which Governor Cuomo deliberately undercounted the number of seniors who died due to his directive placing COVID-positive residents back into understaffed, underequipped nursing homes — and then misled New Yorkers and federal officials about it. Estimates suggest that as many as 15,000 New York seniors due to his actions. Worse yet, while covering up these deaths, he took a cool $5.1 million to write a book touting his COVID leadership and then allegedly used state staff and resources to produce this propaganda piece. One needn’t be a skeptic to link the timing of the deal to the cover-up of the scandal.

    And that’s just one of the many fires engulfing the Cuomo administration. At this point, it’s hard to keep up with the litany of abuses perpetrated by Governor Cuomo and his staff. Despite anointing himself as a champion of women, Cuomo has been hit with more than ten accusations of sexual harassment since December. First, he said he’d investigate these allegations himself. When public pressure forced him to establish independent investigations of the charges, he stalled for time and declined to comment while the investigations played out. Now, with a Democratic state attorney general investigating the claims, the governor and his top aides have stonewalled, threatened, and gaslit witnesses and state officials, accusing them of playing political games.

    There have also been reports that Cuomo’s friends, family, and donors received preferential access to COVID-19 tests and health information. There’s the matter of a $62 million COVID-related state contract being given to a medical network that donated $230,000 to the Cuomo campaign. There’s the claim by gaming interests that the governor’s team threatened them until they coughed up campaign money. And another investigation is centered around allegations that a top Cuomo aide linked vaccine access to political support of the governor.

    In an attempt to silence these stories, the governor has responded with brute force. New York City mayor Bill de Blasio is on the record as saying Governor Cuomo hurls invective at officials and the media to make them feel “belittled.” Democratic assemblyman Ron Kim — who lost a close family member to COVID in a New York nursing home — called for Cuomo to provide answers about the nursing-home tragedy. Cuomo personally phoned Kim and threatened to “destroy” him, before holding a press conference in which Kim was referred to as a “habitual liar.” Democratic state senator Alessandra Biaggi has released text messages showing threats she’s received from the Cuomo administration.

    The behavior displayed by Governor Cuomo is appalling, but it’s nothing new. This is who he is, and who he has always been.

    More ethical lapses snipped.

    The obvious lies, the ham-fisted cover-ups, the corruption — we’ve seen it all time and time again from this governor. When there’s even a hint of an investigation into wrongdoing that implicates him or his cabal, Cuomo cuts his losses and scorches the earth. This is who he is: a mean-spirited bully with a flagrant disregard for the rule of law, ruthless in defense of his own venal interests and public image.

    The Cuomo administration has run the gamut of travesties and tragedies. Personal viciousness is the governor’s calling card, and criminal behavior his M.O. Even as they’re barraged with one scandal and outrageous revelation after another, he and his inner circle continue to operate as though it’s all business as usual. So why is Cuomo still the governor of New York? Democratic lawmakers — the very same ones who called on him to resign when the sexual-harassment claims first emerged — continue to stand with him and normalize his behavior more than seven months later, partially out of fear and partially out of a complete lack of interest in governing.

  • Even Biden has called on Cuomo to resign. For all the good that will do.
  • Meanwhile, Cuomo seems locked into the Ralph Northam strategy: Assume that the (D) after his name absolves him of all sins against Social Justice and just wait out the storm confident no one will dare hold him accountable for his actions. And don’t forget the media’s nonstop fluffing of Cuomo back in 2020:

    The Rolling Stone cover; Politico declaring him a “social media superstar”; Harry Enten of CNN declaring that, “The rise of Cuomo shows that times of tragedy can make very unlikely political heroes”; Carl Bernstein declaring that, “[It’s] real leadership of the kind the president of the United States should have provided to the American people throughout this crisis, but hasn’t”; Jesse McKinley and Shane Goldmacher of the New York Times declaring that, “Cuomo’s handling of the crisis has fostered a nationwide following; Mr. Biden called Mr. Cuomo’s briefings a ‘lesson in leadership,’ and others have described them as communal therapy sessions”; Ben Smith of the New York Times declaring that, “Cuomo has emerged as the executive best suited for the coronavirus crisis”; the New York Post (!) declaring that New York women were developing crushes on him; and Jen Rubin gushing: “Watching Andrew Cuomo is inspiring, uplifting, fascinating. He weaves details and humor and math and common sense all together. He is magnificent.” Even the Columbia Journalism Review started to worry that the adoring tone of the coverage was overlooking real problems with Cuomo’s decision-making.

    And this is all separate from his appearances on his brother’s CNN program. I suspect you remember or can find examples I didn’t list above. Oh, another classic example, from Rebecca Fishbein of Jezebel: “I swooned when he told a reporter he had his own workout routine. I have watched a clip of him and brother Chris Cuomo bickering about their mother at least 20 times. I think I have a crush?”

  • Don Surber says that Cuomo’s real sin is being an outsider:

    Democrats in Washington want Andrew Cuomo to resign to allow the Democrat lieutenant governor to run New York state. If a Republican were next in line for the job, Democrats would be falling on grenades for Cuomo. That is, after all, what happened in Virginia when Governor Black Face unleashed his oppo research on the Democrats in the line of succession.

    There are no criminal charges against Cuomo.

    Cuomo’s problem is not sexual harassment. His problem is Democrats see him as a threat if he chooses to run for president.

    Democrats in Washington want no part of playing second fiddle to an outsider. They had their fill of outsiders as presidents with Bill Clinton. Democrat senators want the White House all to themselves. In the 6 presidential elections since Clinton, Democrats have nominated a senator or former senator for president and vice president each time.

    Governors need not apply.

    (Hat tip: Instapundit.)

  • “Experts Warn Of New ‘Cuomo’ Variant That Is Dangerous To Young Women, Fatal To Elderly.”
  • Israel hits Lebanon with artillery and air strikes after rockets were fired from there.
  • Texas Governor Greg Abbott is calling a second special section starting August 7, the first one having accomplished Jack and Squat.
  • “Georgia Democrats Say ‘We’re F***ed’ With Voter ID Required, a ‘Turnout Catastrophe.'” Seems they can’t win if we don’t let them cheat…
  • National Review wants you to know that Huey Long was a bad role model. Or you could just, you know, watch All the King’s Men, which remains a timeless classic. It won the Oscar in back-to-back years with All About Eve, another timeless classic, both of which showed you what the old studio system could achieve when they were working at the top of their game.
  • Inside the fight against a ransomware attack against the Texas town of Borger (which is way the hell up north of Amarillo):

    In Borger, a city of fewer than 13,000, early indications were worrisome as the city raced to shut down its computers.

    Gibberish ransom demands spat out of printers and displayed on some computer screens. Government files were encrypted, with titles like “Budget Document” replaced by nonsensical combinations of letters and symbols, said current city manager Garrett Spradling.

    Vital records, like birth and death certificates, were offline. Payments couldn’t be processed, checks couldn’t be issued — though, blessedly for Borger, it was an off-week for payroll. Signs posted on a drive-up window outside City Hall told residents the city couldn’t process water bill payments but cutoffs would be delayed.

    One update shared with city officials soon after the attack described how every server was infected, as were about 60% of the 85 computers inspected by that point. A city government email told council members that agendas for a meeting would be in paper format, “since your tablets won’t be able to connect.” An official told a judge it was unclear if computer systems would be operational in time for trials two days away.

    Because the city had paid for offsite remote backup, Borger had the capability to reformat servers, reinstall the operating system and bring data back over. A newly purchased server that had yet to be installed came in handy. The police department, however, retained its data locally and the attack hampered officers’ access to previous incident reports, Spradling said.

    Rolling offsite backups are a Good Thing.

  • “Biden Admin Blames China for Microsoft Email Hack.”

    This is my shocked face.

    “The administration has so far declined to impose sanctions on China over the hack.”

    It being the summer rerun season, let me display that exact same shocked face all over again…

  • Ransomware gangs that disappear may just be changing names.
  • Top 30 security exploits. (Hat tip: Borepatch.)
  • APD officer Lewis “Andy” Traylor dead after a collision with an 18-wheeler.
  • Seventeen suspects arrested in Polk County, Florida child sex predator sting…including several Disney employees.
  • CNN goes an entire week without hitting 1 million viewers. CNN was already losing $10 million a year back in 2019, even with trump boosting their ratings. How much does it cost to run a network with an audience of less than 1 million mostly elderly viewers?
  • Speaking of CNN:

  • Expensive Ivy League college film degrees are a scam. “Recent graduates from the Columbia University film program have an average loan debt of six figures against a low-to-mid five-figure income. And given that the master’s program takes four years, Columbia alumni enter the competitive field at around age 30, a detrimentally late start. Graduates soon face the shocking realization that they not only crippled their future but also wasted their money and youth.”
  • Are electric vehicles more expensive to maintain than those with internal combustion engines?

    Automotive News published a report on Thursday of this week noting that EVs were 2.3 times more expensive to service than ICE vehicles after three months of ownership. Analytics firm We Predict compiled the data by looking at roughly 19 million vehicles between the 2016 and 2021 model years.

    That figure drops to just 1.6 times more expensive after one year, the report noted, as a result of a 77% drop in maintenance costs and a decline in repair costs. The data showed that service techs spend about twice as much time diagnosing problems with EVs as they do with regular gas vehicles. They spend about 1.5 times longer fixing them and the labor rate for repairs was about 1.3 times higher.

    Presumably some of this gap will drop as technicians become more familiar with them.

  • Classical music’s suicide pact:

    Classical music is under racial attack. Orchestras and opera companies are said to discriminate against black musicians and composers. The canonical repertoire—the product of a centuries-long tradition of musical expression—is allegedly a function of white supremacy.

    Not one leader in the field has defended Western art music against these charges. Their silence is emblematic. Other supposed guardians of Western civilization, whether museum directors, humanities professors, or scientists, have gone AWOL in the face of similar claims, lest they themselves be denounced as racist.

    Also this: “Orchestras should hire diversity consultants to develop ‘extra-musical evaluation’ criteria for orchestral positions, such as serving as an institutional spokesman.” Diversity consultants always demand hiring more diversity consultants. What are the odds?

  • The Offspring fire longtime drummer Pete Parada for refusing to get a Flu Manchu vaccine. “Given my personal medical history and the side-effect profile of these jabs, my doctor has advised me not to get a shot at this time.” If the other members are vaccinated, why the hell should they care? Stupider still: Parada already caught the virus last year, so he probably has more immunity than the vaccine provides…
  • Col. Dave Severance, who helped take Iwo Jima (and commanded the second flag-raising on Mt. Suribachi, the one in the famous photograph), dead at 102.
  • Where does this rank among disturbing YouTube videos? I give it a three.
  • “To Defeat Delta Variant, Experts Recommend Doing All The Things That Didn’t Work The First Time.”
  • Biden Quits Presidency To Focus On Mental Health.”
  • Game!