The Biden recession and other trends made 2023 a horrible year for startups.
“Big startups are shutting down. According to PitchBook, more than 3,000 private venture backed startups failed in the last year.”
“Of the startups raising money, 19% were funded at a lower valuation than in prior funding rounds.”
“38% of VCs disappeared from dealmaking last year and more than a quarter of a million workers at tech companies were laid off over the same period.”
“US corporate bankruptcy filings closed out 2023 with the most filings since 2010. The year has been described as a mass extinction event for startups in the press.”
Some of the startup failures Boyle namechecks (Hyperloop, Bird) seemed like stupid ideas from the git-go. “Bird the electric scooter rental company—which was also supposed to reinvent public transportation—filed for chapter 11 bankruptcy protection. It was the fastest startup to ever land a billion-dollar valuation, and at its peak was worth two and a half billion dollars. It was delisted from the New York Stock Exchange in September after failing to maintain a market cap of above $15 million dollars for 30 consecutive days.”
“Who would have thought that renting scooters to drunk people for a dollar (who would then throw them in a canal on their way home) would be a money losing business? Bird ran up more than $1.6bn in net losses since 2018 before finally running out of money.”
Smile Direct Club: $8.9 billion valuation at 2019 IPO. “The stock fell in value over time as the company proved to be unprofitable year after year. The company shut down last month $900 million dollars in debt.”
One I never heard of: “The health tech startup Olive AI which reached a peak valuation of $4 billion dollars in 2020 driven by the need for automation in healthcare during the pandemic. The company raised over 900 million dollars from investors. In 2022 the company began laying off staff citing ‘tough economic conditions.’ The company was allegedly trying to raise money when it abruptly shut down in November. Going out of business in 2023 was particularly surprising for a company with AI in its name.” Indeed, AI seems to be the current space where stupid money goes to die.
Another one I never heard of: Zume.
No.
“Zume – the robot pizza delivery company which had raised $445 million dollars in VC funding, the majority of which came from SoftBank in 2018 at a two and a quarter billion-dollar valuation, shut down this summer.” Stupid, but at least I can see why California companies would invest heavily in food automation with that $16 (and rising) minimum wage.
WeWork “set out to revolutionize office real estate – by having an app – which I’m told didn’t work very well, and free beer on tap filed for bankruptcy in November.” I’ve covered WeWork previously.
“WeWork and its founder Adam Neumann were the poster boys of how a blitzscaled business model led by a charismatic founder could apply a veneer of technology to an old business idea and attract venture capital funding to achieve a multibillion dollar valuation.”
“At its peak, WeWork was valued in private markets at $47 billion dollars. Softbank alone invested 16 billion dollars into the company. Masayoshi Son, SoftBank’s founder, allegedly invested his first $4.4 billion dollars in the shared office space company after Neumann gave him a 12-minute tour of a WeWork in 2016. With such a short tour, it’s unlikely that the free beer even had an impact.”
“Softbank – run by Masayoshi Son (Japan’s Cathie Wood) was one of the biggest startup investors in the last decade. They invested in all sorts of non tech companies that were made to look like tech in order to attain a sky-high valuation. According to Bloomberg, the SoftBank Vision Fund alone lost $53 billion dollars over the last two years on startup investments.”
“We have seen a very difficult period for startups over the last year or two, but it comes in the wake of probably the best period for VC backed startups in decades. During the decade from 2011 to 2021 VC investment in private start-ups grew more than sevenfold, from 46 billion dollars in 2011 to $345 billion dollars in 2021.”
“In 2022 when the federal reserve began hiking interest rates, this money began drying up as investors lost their taste for unprofitable, but high growth, investments.”
That investment boom was driven by two things: Low interest rates and “a recent history of profitable exits from VC funded startups like Facebook, Google, Whatsapp and Snap meant that investors were suddenly paying a lot of attention to tech startups – hoping to repeat those successes.”
“Venture capital went from being a small asset class run out of offices on Sand Hill Road that had burned investors in the dot com bubble to a massive global asset class like hedge funds or private equity.”
The Flu Manchu lockdowns brought investment from “‘working from home’ companies like Zoom and Peloton.” I always thought of Peloton as a lifestyle luxury brand.
“People were using apps like Uber and DoorDash for food delivery, and booking rentals on Airbnb to get out of big cities now that they no longer had to turn up in the office.”
“While the prior wave of profitable high growth tech stocks had been (one way or another) in the advertising space, or in businesses like cloud computing, the new wave of startups had untested business models—gig economy businesses which attracted a lot of competition and might never flip to profitability—or robot-made pizza which would be cooked on route to a customer’s home.”
“A lot of the VC’s possibly believed in many of the questionable investments that have since gone bust, but a venture capital fund isn’t really there to hold on to these investments until the underlying business flips to profitability. They invest at the idea stage with the goal of selling these businesses on to the public when the hype is at its peak.”
“They did manage to unload a number of the biggest flops like WeWork – but not at the valuations they were hoping for, and have found themselves holding the bag on a lot of investments that they bought into at peak valuation.”
“The huge valuations many of these companies were attaining in the private market may have been more of a function of how much money had flowed into the private tech startup market since 2011 rather than necessarily reflecting the quality of these companies and their business models.”
“According to Erin Griffith at The New York Times, $27.2 billion dollars in VC funding had gone into the 3,200 venture-backed companies that went out of business in the first 11 months of 2023.” And that’s just the firms trackable on PitchBook. The true total is almost certainly higher.
“That 27.2 billion dollar number excluded many of the largest startup failures that went public, like WeWork, or that found buyers at much lower prices than VC investors had invested at.”
“The hype around AI that we have seen in the last year has masked a lot of the losses in the tech space.”
“Meta was up 178 percent last year due to a combination of AI hype and cost cutting within their core business. This covers up the 46.5 billion dollars lost on the Metaverse – which no one will venture into, for fear that they run into Mark Zuckerberg.” I strongly suspect that a lot of those VR losses are actually money siphoned off for something else.
Despite this, stocks like Meta, Microsoft and Nvidia have hit all-time highs.
“One of the negative economic effects of startup shutdowns is that in such an environment it becomes harder for founders with good business ideas to get funding.”
“According to PitchBook, the number of active investors in US Venture Capital, which was defined as firms that made two or more deals in the last year, plummeted by 38% in the first three quarters of 2023 compared to the same period the prior year.”
Many of the startup failures were zombie companies, those that should have failed earlier but were kept alive by VC money and low interest rates.
“No one wants to see firms going out of business, especially startups which are often the most exciting and innovative firms, but if a business model makes no sense, or only works in a zero-interest rate environment, then its disappearance means that capital can again flow in the direction of the best businesses.”
The startup bust has direct negative effects on me personally, as I’m still between technical writing positions, and a lot of the jobs I’ve gotten over the past two decades have been with startups.
Progressives kick Jews out of the club, San Francisco cleans up for a communist dictator (but not mere citizens), FBI busts a brothel catering to politicians…then refuses to divulge their clients, and The Marvels crashes and burns on opening weekend. It’s the Friday LinkSwarm!
To sustain the alliance between leftists and Islamists, something had to give. And that something was Jews.
After a while, it became a parody worthy of classic comedy skits: the Biden administration’s reflexive need to launch into a condemnation of “Islamophobia” every time the discomfiting topic of antisemitism came up — which, you may have noticed, it does quite a bit these days.
Progressives hate antisemitism. Not, unfortunately, the concept . . . the word. It holds a mirror up to their internal contradictions.
Jews have been among the most consequential, cutting-edge progressives in history. A few months back, I reviewed Democratic Justice, Brad Snyder’s biography of Felix Frankfurter, who may have been as responsible for forging the dominance of American progressivism as Franklin D. Roosevelt, the president he zealously served. Alas, Frankfurter would not be welcome today in what’s become of his movement — not least because of another project on which he collaborated with his mentor and fellow Supreme Court justice, Louis Brandeis: Zionism. That project is anathema to today’s progressives. It honors the old order and the uniqueness of a people reified in their ancestral homeland, one in which they dwelled for millennia — before Islam existed and, 14 centuries later, the notion of “Palestinians” was conceived.
Moreover, to highlight antisemitism is intolerably inconvenient to the collaboration of highest priority for modern progressives: Their partnership with sharia supremacists — so-called Islamists, adherents to “political Islam.”
Snip.
Ostensibly, it’s an unlikely partnership: Sharia supremacists despise many signal progressive causes — e.g., abortion, equality for women, civil rights for homosexuals, and “gender fluidity.” (How long do you figure the “activists” waving their “Queers for Palestine” placards would actually last in Gaza?) And it seems odd for progressives, infamously intolerant of religious liberty, to make common cause with unabashed theocrats who would impose on society a systematically discriminatory legal code enforced by barbaric punishments — of the terrorizing kind that, not coincidentally, the Brotherhood’s Hamas jihadists inflicted on Israeli men, women, and children on October 7.
But let’s dig deeper. The ne plus ultra for sharia supremacists and leftists is the extirpation of the established order. Yes, they have very different ideas about what should replace that order; but that’s an argument for later (at which point progressives would find themselves in the unenviable position of the appeaser after the crocodile is done devouring everyone else). For now, it is a marriage of convenience, a joint war of conquest against Western civilization.
Marriages of convenience are not big on commitment and loyalty. Hence, Jews — predominantly on the left, with legions of stalwart progressives who would as reflexively rebuke Islamophobia as any good Democrat — have become a casualty of that war.
The sharia-supremacist hatred of Jews is doctrinal. As the Hamas Charter relates, Islamic eschatology is consumed by an end-of-times war in which even trees and stones will help Muslims kill their mortal enemies, the Jews. The Islamic claim on the land “from the River to the Sea” also stems from scripture: Mohammed’s night ride from Mecca to Jerusalem and on to heaven. And Muslim scripture further holds that Islam’s prophet died upon being poisoned to death by a Jewish woman.
This is all very uncomfy for progressives. They really don’t do doctrine, let alone submit — or at least allow themselves to appear to be submitting — to religious doctrine. Thus must they engage in euphemistic games to sidestep reality.
“Democrat Media Arm Scrambles As It Becomes Clear They Knew About Hamas Invasion Of Israel Before It Happened. “Reports have been bubbling up that the various tentacles of the Democrat hacktivist media actually had pro-Hamas activists ‘journalists’ embedded with Hamas before and on October 7th.”
Democrats wouldn’t clean up San Francisco for mere citizens, but they did it for a communist dictator.
Apparently, the city of San Francisco can indeed clear out the tent cities of homeless, remove the human feces and hypodermic needles from the sidewalks, and make the downtown look sparking clean and shiny in just a matter of days. All it takes is sufficient motivation — like hosting a visit from Chinese dictator Xi Jinping.
Even the New York Times can’t deny the irony that the arrival of Xi and a plethora of overseas leaders is spurring efforts that, presumably, could have been started and carried out at any point with enough motivation:
On Market Street, the city’s main thoroughfare, maintenance workers resurfaced uneven sidewalks and installed plywood over empty tree wells.
Nearby, a crew gave a long-derelict plaza a makeover by turning it into a skateboard park and outdoor cafe with ping-pong tables, chess boards and scores of potted plants. Elsewhere, workers painted decorative crosswalks and new murals, wiped away graffiti, picked up piles of trash and removed scaffolding to show off a refurbished clock tower at the Ferry Building. . . .
Perhaps the most obvious change has been seen at the Speaker Nancy Pelosi Federal Building at the corner of Seventh and Mission Streets, less than a mile from the conference center.
Before we go any further, can I just point out how infuriating it is that we live in a country with so many genuinely heroic, inspiring, and under-recognized figures, and yet we name things after politicians whose greatest achievements were bringing back a lot of federal funds to their constituents? I realize in the state of West Virginia, that statement is blasphemy.
In a perfect irony, in August, “Officials at the U.S. Department of Health and Human Services advised hundreds of employees in San Francisco to work remotely for the foreseeable future due to public safety concerns outside the Nancy Pelosi Federal Building on Seventh Street.” As Iowa GOP senator Joni Ernst noticed, to protect the building named after the House speaker who said that border walls are “immoral,” federal officials put up a high chain-link fence.
In other words, the official assessment of the federal government is that the Nancy Pelosi Federal Building is not a safe place for anyone, which strikes me as a heavy-handed metaphor.
Anyway, back to the Xi-driven cleanup:
For two years, a stubborn fentanyl market at the corner and a sprawling homeless encampment across the street became neighborhood fixtures. People regularly used drugs in an adjacent alley.
Most have seemingly disappeared in a poof…
It’s almost like the city government of San Francisco perceives Xi Jinping as the boss it needs to impress, instead of the voters whose exorbitant taxes (including an 8.625 percent sales tax!) pay city employees’ salaries. If the city is worth making safer, cleaner, and more attractive for a visit by Xi, President Biden, and a whole bunch of diplomats . . . why isn’t it worth making safer, cleaner, and more attractive for the full-time residents?
“Californians Set Up President Xi Dummy So Newsom Will Keep The Cities Clean All The Time.”
Thinks that make you go Hmmmm: “DOJ Protects D.C. Brothel Customers… As Congress Votes For New FBI Facility.”
Two tightly connected things happened in Washington, D.C., on November 8: a “high-end” brothel serving “elected officials” was shut down by the FBI, and the U.S. House approved a controversial $300 million new headquarters building for the weaponized agency.
In announcing the brothel’s bust, the Department of Justice explained that the sex-trafficking operation served “elected officials, high tech and pharmaceutical executives, doctors, military officers, government contractors that possess security clearances, professors, attorneys, scientists and accountants, among others.”
The press release named the brothel operators: Han “Hana” Lee, 41, of Cambridge, MA; James Lee, 68, of Torrance, CA; and Junmyung Lee, 30, of Dedham, MA.
In lurid detail, the Department of Justice explained how the operators advertised their services—primarily young Asian women—for high-end customers. In order to utilize the prostitution services of the brothel, prospective clients allegedly completed “a form providing their full names, email address, phone number, employer and reference if they had one.”
Not mentioned in the press release were the names of the customers.
The announcement was made just ahead of a vote in the U.S. House, which would have defunded the $300 million new headquarters building proposed for the FBI. The facility, to be built in Maryland, will reportedly be larger than the Pentagon. The Pentagon has a total floor area of 6.5 million square feet and offices 23,000 military and civilian employees.
Dispatches from the Biden Recession: “Stellantis offers buyouts to roughly half of U.S. salaried workers.” Stellantis consumed the corpse of Chrysler several years back.
“Taibbi: According To Pundits, ‘Ignorance’ Makes Americans Give “Wrong” Answers To Economic Confidence…The Guardian editorial Krugman linked to explains: Americans continue to believe the economy sucks, even though they’ve been told over and over it doesn’t! Why won’t they listen?…I can’t remember an instance of newspapers polling Americans about their feelings, then telling them their answers are not only wrong, but ignorant!
“Pro-Palestinian” protestors are anti-American protestors:
This is a weird story: “Congressman Pat Fallon (R-TX-4), who had filed to run for Texas Senate District (SD) 30, has now backed out and will instead run for re-election to his currently held congressional seat.” Being a state senator is all well and good, but who steps down from a U.S. Congressional seat to a state senate seat?
A BuzzFeed feature story from 2018 about a journalist who told a group of schoolchildren that he was gay was taken down just a day after it was announced that he had been brought up on child pornography charges.
Slade Sohmer, 44, the former editor-in-chief of the left-leaning video-driven news site The Recount, was freed on $100,000 bail on Monday after he was charged in Massachusetts court with possessing and disseminating “hundreds of child pornography images and videos.”
He has pleaded not guilty to two counts of possession of child pornography and two counts of dissemination of child pornography.
Asianometry takes a deep dive into Nvidia’s radical new computational lithography method for generating semiconductor masks. I know a whole lot of eyes just glazed over, but this stuff is important, and I don’t think any other bloggers are covering semiconductors. And speaking of eyes…
Speaking of disasterous superhero films, Critical Drinker goes over the compounding errors of the never-to-be-released Batgirl movie. Surprisingly, the film itself was reportedly not that bad, it’s just a cascading series of studio decisions made the film nonviable.
Snoop Dogg says he’s giving up weed. And when he had opened the third seal, I heard the third beast say, Come and see. And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand.
Last week on Thanksgiving vacation, I had to put my Mac through a reboot cycle and lost the zillions of open Firefox Windows. So you may find this week’s LinkSwarm relatively (some might say “mercifully”) brief.
Hunter Biden was pulling down a hefty $10 million a year to spread Chinese influence:
A damning new report claims that Hunter Biden helped expand Chinese influence in America in a $10 million a year agreement and an $80,000 diamond.
In her new book, Laptop from Hell, New York Post columnist Miranda Devine, describes Hunter Biden’s business dealings with a Chinese-linked energy consortium, called CEFC.
Based on hundreds of emails from Hunter Biden’s laptop which he left in a Delaware repair shop in April 2019, and transcripts of messages from WhatsApp, she claims that the Biden family offered their services to CEFC to help expand its business around the world.
In exchange, Devine writes, Hunter Biden received $10 million a year for three years, and a diamond worth at least $80,000.
And, by an amazing coincidence, the Biden Administration is super soft on China.
Administration sources confirmed that in an October call between Deputy Secretary of State Wendy R. Sherman and Sen. Jeff Merkley (D-Ore.), the other co-sponsor, Sherman made it clear that the administration prefers a more targeted and deliberative approach to determining which [Chinese] goods are the products of forced labor. She also told Merkley that getting allied buy-in was critical and more effective than unilateral action.
“To be clear, the Department of State is not opposing this amendment,” a State Department spokesman told me. “We share the Congress’ concerns about forced labor in Xinjiang.”
In other words, while the administration supports the legislation in public, they are asking Democrats to essentially water it down in private. Sherman’s specific criticism relates to a part of the bill that would require a presumption that all products coming from Xinjiang are tainted by forced labor unless the importer can prove otherwise. This happens to be the exact provision corporations are also objecting to. Maybe it’s a coincidence.
“It isn’t partisan or in any way controversial for the U.S. to be unequivocally, resoundingly opposed to genocide and slave labor,” Merkley told me. “The Senate passed this legislation in July, and it’s time to get it over the finish line.”
Watering down congressional efforts to punish China for the Uyghur genocide is not what Joe Biden promised when he was running for office, or when he took office. Through most of 2020, Biden insisted that he was the tough one on China and that the Trump administration only offered “a colossal gap between tough talk and weak action.”
Biden, at a Democratic debate on February 25, 2020, said: “I had spent more time with Xi Jinping than any other world leader by the time we left office. This is a guy who doesn’t have a democratic bone in his body. This is a guy who is a thug who in fact, has a million Uyghurs in reconstruction camps, meaning concentration camps.”
Biden, writing in Foreign Affairs last spring, said: “Companies must act to ensure that their tools and platforms are not empowering the surveillance state, gutting privacy, facilitating repression in China and elsewhere. . . . The United States does need to get tough with China.”
Biden, speaking at the U.S. State Department on February 4, said: “We’ll also take on directly the challenges posed by our prosperity, security, and democratic values by our most serious competitor, China. We’ll confront China’s economic abuses; counter its aggressive, coercive action; to push back on China’s attack on human rights, intellectual property, and global governance.”
And yet, month by month, the Biden administration is proving more and more reticent to confront the Chinese government in substantive and consequential ways. The investigation into the origins of COVID-19 is effectively dropped, and Biden didn’t mention China’s refusal to cooperate with the WHO’s separate investigation in his teleconference summit with Xi Jinping.
Biden did not mention China, the Uyghurs, Hong Kong, or the origins of COVID-19 in his address to the United Nations.
Commerce secretary Gina Raimondo told the Wall Street Journal in September that she thinks “robust commercial engagement will help to mitigate any potential tensions” with China. Biden rescinded Trump’s executive orders targeting TikTok, the popular app owned by the Chinese company ByteDance.
Snip.
Biden nominated Reta Jo Lewis to run the U.S. Export-Import Bank. Senator Marco Rubio contends that, “Reta Jo Lewis is currently a strategic advisor for the U.S.-China Heartland Association, which is a conduit for the Chinese Communist Party’s (CCP) United Front Work Department (UFWD), which aims to influence key Americans at the subnational level and ultimately undermine America’s national interests.”
As I noted yesterday, even the proposed diplomatic boycott of the Olympics is moot, because the Chinese government announced that U.S. politicians were not invited before Biden could even officially announce the decision.
It’s not that the Biden administration is doing nothing — an upcoming “democracy summit” invited Taiwan but not China, there have been prohibitions on U.S. investment in particular Chinese companies, and a dozen Chinese companies have been blacklisted for helping the Chinese army with quantum computing.
But these are small-ball gestures while the Chinese government sends 18 fighter jets plus five nuclear-capable H-6 bombers into Taiwanese air-defense zone at one time, Beijing wipes out the last of Hong Kong’s opposition, and the Genocide Games go on with full U.S. corporate sponsorship. We’re attempting minor and symbolic moves while Xi Jinping is attempting big and consequential ones to maximize his leverage over the rest of the world.
In my new book, San Fransicko, I describe why progressives create and defend what European researchers call “open drug scenes,” which are places in cities where drug dealers and buyers meet, and many addicts live in tents. Progressives call these scenes “homeless encampments,” and not only defend them but have encouraged their growth, which is why the homeless population in California grew 31 percent since 2000. This was mostly a West Coast phenomenon until recently. But now, the newly elected progressive mayor of Boston, Michelle Wu, has decided to keep open a drug scene at Mass and Cass avenues, even though it has resulted in several deaths from drug overdoses and homicides.
Progressives defend their approach as compassionate. Not everybody who is homeless is an addict, they say. Many are just down on their luck. Others turn to drugs after living on the street. What they need is our help. We should not ask people living in homeless encampments to go somewhere else. Homeless shelters are often more dangerous than living on the street. We should provide the people living in tents with money, food, clean needles, and whatever else they need to stay alive and comfortable. And we should provide everyone with their own apartment unit if that’s what they want.
But this “harm reduction” approach is obviously failing. Cities already do a good job taking care of temporarily homeless people not addicted to drugs. Drug dealers stab and sometimes murder addicts who don’t pay. Women forced into prostitution to support their addictions are raped. Addicts are dying from overdose and poisoning. The addicts living in the open drug scenes commit many crimes including open drug use, sleeping on sidewalks, and defecating in public. Many steal to maintain their habits. The hands-off approach has meant that addicts do not spend any amount of time in jail or hospital where they can be off of drugs, and seek recovery.
More:
The main progressive approach for addressing homelessness, not just in San Francisco but in progressive cities around the nation, is “Housing First,” which is the notion that taxpayers should give, no questions asked, apartment units to anyone who says they are homeless, and asks for one. What actually works to reduce the addiction that forces many people onto the streets is making housing contingent on abstinence. But Housing First advocates oppose “contingency management,” as it’s called, because, they say, “Housing is a right,” and it should not be conditioned upon behavior change.
But such a policy is absurdly unrealistic, said the San Francisco homeless expert. “To pretend that this city could build enough permanent supportive housing for every homeless person who needs it is ludicrous,” the person said. “I wish it weren’t. I wish I lived in a land where there was plenty of housing. But now people are dying on our streets and it feels like we’re not doing very much about it.”
The underlying problem with Housing First is that it enables addiction. “The National Academies of Sciences review [which showed that giving people apartments did not improve health or other life outcomes] you cited shows that. San Francisco has more permanent supportive housing units per capita than any other city, and we doubled spending on homelessness, but the homeless population rose 13%, even as it went down in the US. And so we doubled our spending and the problem got worse. But if you say that, you get attacked.”
How did progressives, who claim to be evidence-based, ever get so committed to Housing First? “Malcolm Gladwell’s [2006 New Yorker article] “Million Dollar Murray,” really helped popularize this idea,” the person said. “But it was based on an anecdote of one person. It works for who it works for but is not scalable. [Governor] Gavin [Newsom] made a mistake [as San Francisco’s Mayor 2004-2011] which was that we stopped investing in shelter. But that’s because all the best minds were saying, ‘This is what’s going to work.’”
One of the claims made by defenders of the open drug scenes is that people who live in them are mostly locals who were priced out of their homes and apartments and decided to pitch a tent on the street. In San Fransicko, I cite a significant body of evidence to show that this is false, and that many people come to San Francisco from around the U.S. for the city’s unusually high cash welfare benefits, free housing, and tolerance of open drug scenes.
The insider agreed. “People come here because they think they can. It’s bullshit that ‘Only 30 percent [of homeless] are from out of town.’ At least 20,000 homeless people come through town every year. Talk to the people on the street. There’s no way 70 percent of the homeless are from here. I would guess it’s fewer than 50 percent. Ask them the name of their high school and they guess, ‘Washington? The one around the corner?’ But you can’t even talk about that without being called a fascist.”
A top adviser and chief spokeswoman for Harris, Symone Sanders, is set to resign from her position by the end of the year, a White House official said Wednesday. It’s one of several high-level departures in the vice president’s office since she was sworn in earlier this year.
Peter Velz, the vice president’s director of press operations, is leaving the office in the coming weeks, along with Vincent Evans, deputy director of public engagement and intergovernmental affairs, according to reports. Ashley Etienne, Harris’s communications director, is also stepping down. Advance staffers departed over the summer, soon after a trip to Guatemala where Harris drew criticism for a biting response to a question over when she intended to visit the southern U.S. border.
A source familiar with Harris’s office woes quipped that the defections must be “completely unrelated to reading stories where they are blamed for everything.”
“This is the same story that gets played out again and again — it’s always the vague ‘staffing,’” this person said. “I don’t think there are a ton of staff, present and former, that would rush to defend the way the office is run.”
What percentage of requested water are California farms getting next year? Try 0%.
Texas Rep. Dan Crenshaw brings the wood to Ron Klain:
Let’s follow up that kudo for Crenshaw with some serious criticism: He was one of 80 Republicans (along with Rep. John Carter, my own representative) to vote in favor of a federal vaccine database. He can swear up and down it’s not going to be used for vaccine passports, but we’ve seen worldwide governments use coercive tools with even less legal justification.
When it comes to arguments on the new Supreme Court abortion case, you can smell the panic.
Real life frequently has symbolism more heavy-handed than fiction. “Barack and Michelle Obama Elementary will close at the end of the 2022-2023.” (Hat tip: Holly Hansen.)
Just got back from Texas and sad to report that the entire state is suffering from the Freedom Variant. Symptoms may include: enjoying your life, breathing fresh air, and not being a paranoid, righteous douchebag.
Smollett wasn’t engaging in a hoax. He was perpetuating a scam and that scam has a name. It’s called “social justice.” (Or, in the Biden administration’s parlance, “equity.”)
It’s not like Smollett is a demonstrable sociopath who told an aimless lie about being attacked by Trump supporters in 2019 for the sake of it. According to a very solid case built by an exhaustive Chicago police investigation, Smollett pretended to be the victim of a violent racist and anti-gay assault because he wanted more fame and thus more money.
What better way to achieve that goal than to feed into the enduring myth that minorities in America are suppressed at every turn, even targeted for violence by whites? White men in particular, and, as of 2016, even better if they’re Trump supporters.
Police charged that Smollett offered to pay two brothers he was acquainted with about $2,000 each to act out an attack on the actor in the dead of a Chicago winter night. The siblings, Abimbola and Olabinjo Osundairo, told investigators that Smollett had given them $100 to buy masks, a red hat, and a rope that would be fashioned into a kind of noose for the staged attack. The Osundairos were instructed to confront Smollett on a sidewalk, slightly rough him up, and then disappear.
The setup preceeded a previous stunt, wherein Smollett mailed himself a threatening letter that said, “You will d[ie] black fag,” accompanied by an illustration of a hangman. Police said Smollett’s failure to garner any significant national attention from the letter is what led him to fake the assault.
“…This announcement today recognizes that ‘Empire’ actor Jussie Smollett took advantage of the pain and anger of racism to promote his career,” then-police superintendent Eddie Johnson said in late February, after his department probed the events from the night of the incident. He said Smollett was mostly motivated by seeking a salary increase for his role on “Empire.”
That was the conclusion of law enforcement after spending more than $100,000 taxpayer dollars on an investigation to piece together surveillance video, eye-witness testimony, and data gathering that led them to believe Smollett had lied about everything.
But in all fairness, who could blame him? This is what our entire culture is teaching now— that the quickest way to advance is to claim victimhood on account of race, sex, or sexual identity — ideally, some combination of all three.
Lucrative opportunities present themselves quickly for those who sell themselves as oppressed and aggrieved. And for Smollett, it worked! Nobody knew who he was before he claimed to have been physically confronted and called the n-word and the f-word by white male Trump supporters. Thereafter, everyone knew who he was.
He was written about in The New York Times, the Washington Post, and USA Today. A-list celebrities, TV hosts and political leaders expressed their solidarity.
The Republican National Committee (RNC) is invested in a comprehensive nationwide effort to make it easier to vote and harder to cheat. We’re fighting for election integrity because it’s absolutely vital to protect the sanctity of your ballot from Democrat schemes to undermine voting security. We are involved in 19 election integrity lawsuits nationwide, and we’re winning the fight.
Our investment is partially driven by polling that consistently shows the American people supporting our common-sense approach to securing elections. A recent poll commissioned by the RNC found that 78 percent of Americans support a proposed voting plan with five key principles: presenting voter ID, verifying voters’ signatures, controlling the ballot’s chain of custody, bipartisan poll observation, and cleaning up voter rolls. The poll also found that 80 percent of voters support voter ID requirements; this sentiment matches up with other polling, including a recent one from NPR which found 79 percent of voters in favor of voter ID. The measures we are pushing are not controversial or dramatic. They are common-sense and they are supported by American citizens.
Of course, that hasn’t stopped Democrats from trying to generate false outrage and controversy at every level of this conversation. The Democrat election playbook is simple: lie and seek attention until the mainstream media eagerly takes the baton and turns Democrat lies into a false national narrative. You saw this in Georgia, where Joe Biden and Stacey Abrams’ lies about the state’s election reforms pressured the MLB into moving its All-Star Game out of Atlanta. These lies cost the good people of Georgia an estimated $100 million. You’re seeing it now in Texas, where local Democrats have stormed out of legislative debates on election integrity not once, but twice. Their latest stunt saw them leave the floor of the Texas legislature and hop on private planes to fly to DC in a juvenile quest for media attention.
Unsurprisingly, the mainstream media lapped it up. This is their playbook. When it comes to election integrity, Americans need to pay attention to the relationship between Democrat lies and the mainstream media machine.
Back on June 24, the great Peggy Noonan hailed [Eric] Adams’s primary win as a victory of reality over progressive theory. “Adams was a cop for 22 years, left the New York City Police Department as a captain, and was the first and for a long time the only candidate to campaign on crime and the public’s right to safety. He was the first to admit we were in a crime wave.” Noonan observed, accurately, that African-American voters were not necessarily the most progressive voters in the electorate anymore, and that they represented a de facto force of, if not conservatism, then a realist wariness of the fringes of modern progressive thinking.
The notion of a centrist, tough-on-crime mayor replacing the notorious groundhog murderer and early pandemic denier sounds good, but we’ll see. Every elected official operates within a particular “Overton Window”: the range of policies that a politician can recommend without appearing too extreme to gain or keep public office given the climate of public opinion at that time. Adams did not win this primary by a landslide. While he received the most votes in the first round, he was the top choice of less than a third of the city’s Democrats. He has 51.1 percent out of the final two.
New York City desperately needs a dramatic improvement in its policing and prosecution of criminals, but Adams will have to take on a lot of deeply entrenched opponents and a city media and cultural environment that have evolved to reflexively demonize the NYPD. Way back in 2005, Fred Siegel described the New York City of the David Dinkins years as an era of “hysteria that led upstanding liberals to insist that they were more afraid of the NYPD than they were of criminals.” Whatever you think of Rudy Giuliani now, the young(er) mayor of the early 1990s was willing to be utterly hated as he enacted his reforms, convinced that the broader public would look past the controversy and appreciate the effects of lower crime rates. It remains to be seen whether Adams has that same courage to exchange short-term unpopularity for long-term improvement in the city’s streets — or whether he’ll bump up against the city’s Overton Window of what policy changes are acceptable and settle for a series of half measures.
The irony is that we see the same phenomenon in the opposite direction at the national level in Washington. Many progressives interpreted Biden’s presidential win, the 50–50 Senate, and the slightly shrunken House majority in the 2020 elections as a mandate to enact sweeping changes in the country — and they’re largely hitting brick walls. The national Overton Window isn’t wide enough to accommodate the wildest fantasies of progressives.
I’m not sure the feasibility of Overton Window possibilities matters to the Social Justice left. There’s is a holy revolutionary cause, and they need to seize control of the Party before they can seize control of the nation. To that end, I suspect many think that letting moderate Democrats lose elections is a small price to pay for continuing their unpopular march through America’s institutions…
The Texan brings back The War Room to track 2022 Texas election races.
“Texas House Democrats’ COVID-Spreading Publicity Stunt Is Backfiring.”
Outnumbered by Republicans in Austin 83 to 67, the Texas House Democratic Caucus decided to head to D.C. to publicize its opposition to election integrity bills, fundraise, and drum up support for federal legislation that would nationalize election law by imposing California law as a template on the nation — banning meaningful voter ID, expanding mail balloting while eliminating fraud safeguards, prohibiting proactive voter list maintenance, and mandating same-day voter registration with no checks for eligibility to vote.
But the Democrats’ trip hasn’t turned out as planned.
Soon after meeting with Vice President Kamala Harris and numerous White House staffers and members of the U.S. House and Senate, three Democrats were diagnosed with COVID-19, then another two, and now a total of six. An aide to Speaker Nancy Pelosi and a White House official tested positive soon after meeting with the Texas Democrats.
And the attention Democrats were hoping for soon turned sour, with Texas’s major newspapers, none of whom are friends of Republicans and have had little good to say about their election integrity bills, have nevertheless weighed in against the walkout. By two-to-one, Texas voters disapprove of the quorum-busting as well. Even national Republicans have piled on, with this tweet from Missouri Sen. Josh Hawley’s press secretary being emblematic.
Closer to home, Travis County GOP Chairman Matt Mackowiak said the quorum-breakers had “…engaged in performance theater for weeks claiming Gov. Abbott was putting lives at risk by reopening the state economy and waiving the statewide mask mandate, then they flew to DC on a private jet stocked with Miller Lite without masks, in violation of FAA rules, and now this farce turned into a super spreader event.”
But there are signs the Democratic solidarity is breaking down. With chairmanships, seniority, and even district boundaries on the line in a redistricting year, powerful Democrats are wavering while those seeking to move up sense an opportunity. A week ago, 80 House members were on the floor. As of Tuesday, 90, including several Democrats, were present. It’s a classic “prisoner’s dilemma” situation. If another 10 Democrats show up, the Texas House will have a quorum and can resume consideration of bills, leaving the other 50 holdouts with nothing for their efforts — except for perhaps being redrawn out of their districts by the Legislative Redistricting Board later this year.
When the Democrats do return, they will be asked to vote on bills that would bring mail-in balloting up to the standard for in-person voting by asking for ID in the form of writing a driver’s license number, or state ID number, or the last four of the Social Security number inside of a privacy flap in the ballot return envelope. The bill would also prohibit local elections officials from sending out unsolicited mail-in ballot applications, ban last-minute changes to election procedures, and clarify that properly appointed poll watchers must be able to see and hear election workers’ activities.
Asking for ID for mail-in ballots — one of the measures most vociferously opposed by Democrats — is supported by 81 percent of Texas voters, with voters from all demographic groups and both major parties approving of the safeguards.
With all due respect to Chuck DeVore, until the Texas election integrity bill is passed, their publicity stunt hasn’t backfired yet. There are few prices Democrats won’t pay for the ability to continue cheating.
Barely a year after the Minneapolis City Council voted to to defund the city’s police department after the death of George Floyd, a judge has ordered the city to hire more cops, thanks to a lawsuit filed by fed-up citizens.
“Minneapolis is in a crisis,” wrote the eight plaintiffs in their complaint, citing the rise in violent crimes, including shootings, sexual assault, murders, civil unrest, and riots, Fox News reports.
Progressive city council members couldn’t wait to gut the police department and allow a surge in crime, most of which would affect poor black neighborhoods. The tsunami of crime recently took the life of a popular coach who was shot attending a memorial for another victim of Minneapolis’ violent crime surge. He was the 42nd person murdered this year in Minneapolis. No word from Antifa and BLM if they are planning a mostly peaceful riot in his honor.
The cop-hating Minneapolis City Council and Mayor Jacob Frey were ordered to “immediately take any and all necessary action to ensure that they fund a police force,” according to Thursday’s court order by Judge Jamie L. Anderson. The crime-loving city council and mayor have until June 30, 2022, to establish a police force of 730 sworn officers. They currently have 669 cops. Minneapolis saw nearly 200 cops file paperwork to leave the Minneapolis Police Department in the first three months after the George Floyd riots. No idea how many more will resign or retire by the June 30, 2022, deadline, as the nation has seen a surge in cops walking away from departments nationwide.
NPR has not run a piece critical of Democrats since Christ was a boy. Moreover, much like the New York Times editorial page (but somehow worse), the public news leader’s monomaniacal focus on “race and sexuality issues” has become an industry in-joke. For at least a year especially, listening to NPR has been like being pinned in wrestling beyond the three-count. Everything is about race or gender, and you can’t make it stop.
Conservatives have always hated NPR, but in the last year I hear more and more politically progressive people, in the media, talking about the station as a kind of mass torture experiment, one that makes the most patient and sensible people want to drive off the road in anguish. A
Numerous examples snipped.
NPR sucks and is unlistenable, so people are going elsewhere. People like [Ben] Shapiro are running their strategy in reverse and making fortunes doing it. One of these professional analysts has to figure this one out eventually, right?
Evidently the primary mover behind the Gretchen Whitmer kidnapping “plot” was the FBI. It’s FBI “informants” all the way down. (Hat tip: Director Blue.)
Want to keep track of violence in Lori Lightfoot’s Chicago? Hey Jackass has the trending data plants policy wonks crave!
“In 25 major U.S. cities, officials have proposed cutting—or in 20 cases already cut—police budgets. However, what OpenTheBooks.com auditors found was that mayors and city officials still enjoy personal protection of a dedicated police detail costing taxpayers millions of dollars,” Adam Andrzejewski, CEO and founder of Open The Books (OTB), said in a statement announcing the new data.
Snip.
In San Francisco, for example, the costs of the security detail protecting Mayor London Breed and other city officials spiraled up from $1.7 million in 2015 to $2.6 million in 2020.
Breed has proposed shifting $120 million from the city’s police department to mental health and workforce training programs. City officials declined to say how many officers are assigned to the security details, according to OTB.
In Chicago, Mayor Lori Lightfoot claimed to be opposed to defunding the police, but OTB found that officials quietly abolished 400 police department positions last year.
Those positions were eliminated even as the city’s “security detail costs peaked in 2020—up $700,000 over five years: $2.7 million spent on 16 officers (2015); $2.9 million for 16 officers (2016); $2.7 million for 20 officers (2017); $2.8 million for 16 officers (2018); $2.8 million for 17 officers (2019); and $3.4 million for 22 officers (2020)—an all-time high,” OTB stated.
In New York, Mayor Bill de Blasio slashed $1 billion from the New York Police Department’s (NYPD) $6 billion annual budget, including $354 million transferred to mental health, homelessness, and education services.
But the mayor, who briefly sought the Democratic presidential nomination last year, continues to enjoy tax-paid police protection for himself, his wife, and his son.
“Serial Swatter Who Caused Death Gets Five Years in Prison.” “Shane Sonderman, of Lauderdale County, Tenn. admitted to conspiring with a group of criminals that’s been ‘swatting’ and harassing people for months in a bid to coerce targets into giving up their valuable Twitter and Instagram usernames.” So not only has he gotten people killed, he got them killed for really shitty reasons. (Hat tip: Ace of Spades HQ.)
“ERCOT Expands Power Grid Reserve Capacity in Preparation for Summer Heat.” “To prepare, ERCOT has dedicated 38 percent more in generation to reserve capacity from this July compared to last. And they plan to dedicate 56 percent more reserve capacity for August compared to August 2020.” 1.) That’s good, but 2.) Isn’t mid-July a wee bit late to be rolling out such plans? Let’s hope they’ve been working on this a while…
California court says that state laws requiring people to use crazy SJW pronouns violates freedom of speech.
Speaking of Harris: “Last month, the Supreme Court smacked down then-California Attorney General Kamala Harris’ attempt to force charitable nonprofits to turn over the names of their top donors, calling the power-grab ‘facially unconstitutional.'”
Gun sales decline slightly from record highs in 2020. Does this mean I might finally be able to pick up an AR-15 without it costing me an arm and a leg?
“Wayne LaPierre a Bigger Risk Than Fire and Brimstone.” “Lloyd’s of London is dropping all coverage for the NRA’s Board of Directors through their officers and directors insurance plan.”
More Soros-backed DA justice: “Accused murderer set free after St. Louis County prosecutors fail to show up, but found time for McCloskeys.”
Last week, Circuit Judge Jason Sengheiser dismissed charges of first-degree murder, armed criminal action, and unlawful gun possession against Brandon Campbell, 30, when prosecutors from the Circuit Attorney’s Office did not attend hearings for the case in May, June, and July, the St. Louis Post-Dispatch reported.
“The court does not take this action without significant consideration for the implications it may have for public safety,” Sengheiser wrote in kicking the case.
“Although presumed innocent, (Campbell) has been charged with the most serious of crimes. While the court has a role to play in protecting public safety, that role must be balanced with adherence to the law and the protection of the rights of the defendant,” the judge continued.
Sengheiser then took aim at Kim Gardner’s office.
“The Circuit Attorney’s Office is ultimately the party responsible for protecting public safety by charging and then prosecuting those it believes commit crimes,” he wrote.
“In a case like this where the Circuit Attorney’s office has essentially abandoned its duty to prosecute those it charges with crimes, the court must impartially enforce the law and any resultant threat to public safety is the responsibility of the Circuit Attorney’s Office.”
Thirty-eight-year-old Brandon Andrus’s criminal history is so lengthy he has more mug shots than some people have selfies.
But that didn’t stop 185th Criminal District Court Judge Jason Luong from allowing Andrus to be a free man by giving him three felony bonds, one for assaulting a family member last year.
On June 14, police say Andrus and another man murdered 35-year-old Rodrick Miller.
“Amazon’s New World Is Reportedly Frying High-End Graphics Cards.” Nothing like having your $2,000 Nvidia card bricked over a beta game…
Netflix to Wall Street: “Did I say we were going to gain two million new subscribers? Yeah, what I actually meant was we were going to lose 500,000 subscribers. Whoopsie! My bad!” Get woke, go broke.
James May launches his own gin. I don’t drink gin, but I bet that stuff sells out instantly, since the Top Gear/Grand Tour trio have one of the largest worldwide fan bases. I did not know that gin started out with neutral spirits before juniper berries were added.
A major leak containing a register with the details of nearly two million CCP members has occurred – exposing members who are now working all over the world, while also lifting the lid on how the party operates under Xi Jinping, says Sharri Markson.
Ms Markson said the leak is a register with the details of Communist Party members, including their names, party position, birthday, national ID number and ethnicity.
“It is believed to be the first leak of its kind in the world,” the Sky News host said.
“What’s amazing about this database is not just that it exposes people who are members of the communist party, and who are now living and working all over the world, from Australia to the US to the UK,” Ms Markson said.
“But it’s amazing because it lifts the lid on how the party operates under President and Chairman Xi Jinping”.
Ms Markson said the leak demonstrates party branches are embedded in some of the world’s biggest companies and even inside government agencies.
“Communist party branches have been set up inside western companies, allowing the infiltration of those companies by CCP members – who, if called on, are answerable directly to the communist party, to the Chairman, the president himself,” she said.
“Along with the personal identifying details of 1.95 million communist party members, mostly from Shanghai, there are also the details of 79,000 communist party branches, many of them inside companies”.
I’ve poked around a bit to find a copy of that database, but all I could locate was an excerpt featuring the first 5,000 names or so. If anyone knows where I can find the full list, let me know in the comments.
Here’s a story so strange I wanted to turn it into a separate post, but details remain too murky: Fabless chip designer Arm Holdings fired the head of its Chinese business unit, but he’s refusing to leave:
Arm Ltd., the chip designer owned by SoftBank Group Corp., accused the ousted head of its China joint venture of hurting its business there, escalating a dispute that’s becoming a test of Beijing’s willingness to protect foreign investment in the world’s second-largest economy.
The U.K. chip giant in June announced it was firing Allen Wu, the head of its Chinese unit, over undisclosed breaches of conduct, but the executive has refused to step down and remains in control of the strategically important operation. Rather than the peaceful, rapid resolution that both sides have said they want, the situation has deteriorated.
Wu has hired his own security and won’t let representatives of Arm Ltd. or his board on the premises, said a person familiar with the situation. He’s refused to hold a planned event to connect Chinese chipmakers with Arm Ltd. and avoided negotiations despite public statements to the contrary, said the person, who asked not to be named.
Wu is “propagating false information and creating a culture of fear and confusion among Arm China employees,” the U.K.-based company said in a statement. “Allen’s focus on his own self-preservation has also put China semiconductor innovation at risk as he has attempted to block the critical communication and support our China partners require from Arm for ongoing and future chip designs.”
Arm China disputed the claims in an emailed response to queries, adding that Wu was open to talks and there have been no disruptions in business engagement between Arm Ltd. and its China clients.China is the largest market for semiconductors and the U.K. firm relies on Arm China to conduct business with local customers, including Huawei Technologies Co. The country accounts for a large proportion of the company’s global revenue and resolving the conflict will be crucial to SoftBank’s reported plans to sell Arm, a lynchpin in the global smartphone and computing industry that the Japanese firm bought for $32 billion in 2016.
In early June, Arm China’s board – which includes representatives from Arm Ltd. and Chinese investors – ousted Wu for setting up an investing firm that competes with its own businesses there. He refused to accept the decision, saying it was invalid and has remained in control at Arm China’s headquarters in Shenzhen.
The intricacies of Chinese rules confer an advantage to Wu as the holder of key registration documents. As the legal representative of Arm China, Wu holds the company’s registration documents and the company seal, or stamp. Changing the legal representative requires taking possession of the company stamp — something Wu has refused to give up.
It was once an accepted truth that China’s increased economic trade and participation in international bodies such as the World Trade Organization would benefit everyone.
China and its citizens would benefit through the jobs and wealth earned from their vast export market. Americans and Europeans would benefit from access to an ever-greater array of ever-cheaper goods. Asian, African, and other American nations would benefit from access to both sides of this market and the incentive to replicate a version of China’s export model. And the world’s democracies, the cornerstones of the post-Cold War international order, would benefit from China’s recognition that it would gain more by abiding the rules of the game than by breaking them.
To borrow from Shakespeare, “the jest of the truth savors but of shallow wit, now that thousands weep more than did celebrate it.”
The weeping is real. Each week brings us increasingly horrific stories of the suffering endured by China’s already impoverished Uighur population. More than 2 million of these innocent citizens have been forced into concentration camps over the past decade. They have been indoctrinated to believe that there is no ideology of value save that of the Communist Party and its god-emperor Xi Jinping. Some have been forcibly sterilized, others sent far from their homes and families. As reported just this month, hundreds of thousands of Uighurs are forced into annual servitude as cotton pickers.
There’s a defining lesson here. China was supposed to be a top partner to the liberal international order. Instead, it is now taking inspiration from the Antebellum South’s slave economy, using forced labor in support of an unaccountable elite. Even were it not beholden to China, Hollywood could not invent a better example than the Uighurs’ plight to expose the lie that China’s economic development would usher in a kinder and gentler policy on its part.
Of course, Hollywood’s pathetic deference to Beijing isn’t a solitary American corporate story. It is the story. Instead of markets leading to more economic and political freedom in China, they have led major U.S. corporations to self-censor in order to gain access to Chinese consumers and their cheap labor. As with the NBA, which rightly cares a great deal about black lives but apparently not one iota about Uighur lives, major corporations such as Disney, Dell, and Walmart deal with China even if they must do so with terrible strings attached.
Beijing is explicit in its expectation that trade opportunities come with the price of silent acquiescence. Where the Chinese Communist Party signs treaties — whether the rules of the WTO, promises on intellectual property regimes, or carbon emissions targets — its pledges must be greeted only with applause from the West, never with any enforcement or demands that Xi be held to his word.
US carriers and telecommunications companies receiving Universal Service funding are now required to remove all Huawei technology, by order of the federal government.
The US Federal Communications Commission has ordered certain carriers to “rip and replace” all equipment produced by Huawei. It follows continuing investigations into claims that Huawei represents a threat to national security, and Huawei’s application for a review of a similar ruling by the Public Safety and Homeland Security Bureau in June.
“A laundry list of evidence before us compels this result,” said FCC chairman Ajit Pal in a statement. “But to summarize some of the main points, Huawei has a long and well-documented history of close ties to the Chinese military and intelligence communities, as well as the Chinese Communist Party, at every level of the company— all the way up to its founder.”
“Huawei is subject to sweeping Chinese intelligence laws compelling Huawei’s assistance and cooperation with Chinese intelligence services and forbidding the disclosure of that assistance,” he continued. “Moreover, the concerns about Huawei aren’t just hypothetical: Independent entities have identified numerous security vulnerabilities in Huawei equipment and found it to be less secure than that of other companies— perhaps deliberately so.”
Speaking of crackdowns, President Donald Trump’s administration has added more Chinese companies to the blacklist:
The Trump administration is poised to add China’s top chipmaker SMIC and national offshore oil and gas producer CNOOC to a blacklist of alleged Chinese military companies, Reuters reported citing a document and sources, curbing their access to U.S. investors and escalating tensions with Beijing.
The latest crackdown comes after a report from Reuters earlier this month that the Department of Defense (DOD) was planning to designate four more Chinese companies as owned or controlled by the Chinese military, bringing the number of Chinese companies affected to 35. A recent executive order issued by President Donald Trump would prevent U.S. investors from buying securities of the listed firms starting late next year.
It was not immediately clear when the new tranche, would be published in the Federal Register. But the list comprises China Construction Technology Co Ltd and China International Engineering Consulting Corp, in addition to Semiconductor Manufacturing International Corp (SMIC) and China National Offshore Oil Corp (CNOOC), Reuters reported.
On paper the Chinese army looks pretty impressive, with 78 combat brigades and nearly as many specialized brigades. Over the last decade the Chinese army has been converting its divisions to brigades, many of them independent brigades like the American Brigade combat teams. That conversion is still underway, although by now nearly all the regiments that formerly comprised the major subunits of divisions have been converted to brigades.
The task of turning all those new brigades into well-equipped and trained ones is still underway. There are three types of combat brigades. The most potent is the heavy brigade, each with about a hundred tanks and dozens of tracked IFVs (infantry fighting vehicles) plus detachments of engineers and other specialists. The problem with these heavy brigades is that not all of them have the latest tanks. China has not built enough of its most modern tank to replace all the older models. As more of the latest tank enter service heavy brigades receive them and have to go through months of training to learn how to get the most out of them.
Snip.
The major problem with the army is that all the elite units (special operations and airborne) as well as key units stationed in the capital and a few other places have few conscripts. Nearly all the conscripts are assigned to the combat brigades and the support brigades assigned to each of the 13 Group Armies. Units with conscripts spend about half the year training the new ones and if there is a war these units would, half the time, have a large portion of their troops poorly trained and not fully integrated into the unit. This is a major problem for combat units that depend on well-trained troops who have been with their units long enough for commanders to know what they can get out of them.
As China pushes to become a blue-water power, nuclear-powered submarines are critically important to Beijing’s plan. Historically the Chinese Navy’s (PLAN) nuclear-powered submarine fleet has been constrained by its limited construction capacity. There is only one shipyard in the country up to the task. But that yard has been undergoing a massive enlargement. And now, recent satellite imagery suggests an additional capacity expansion.
China’s nuclear-powered submarine fleet was already expected to get much larger in the coming years. This latest development suggests that China could pump out submarines at an even greater rate.
Just how many nuclear submarines China will build over the next ten years is a hot topic. The Office of Naval Intelligence (ONI) recently forecast China’s submarine fleet to grow by six nuclear-powered attack submarines by 2030. Other observers, such as retired Capt. James Fanell who was Director of Intelligence and Information Operations for the U.S. Navy’s Pacific Fleet, place their estimates even higher.
A senior Chinese People’s Liberation Army officer, Lt. Gen. He Lei, penned an article explaining why China’s Korean War experience should guide its modern military strategy toward the United States.
The executive officer of the PLA’s Academy of Military Science, He is a known hard-liner on Taiwan and the U.S. In his present assignment, the general is responsible for training PLA officers and strategy development. His words carry weight both for what they say about evolving PLA doctrine and their influence on Beijing’s Central Military Commission. His arguments are certainly forward-leaning, referencing the PLA’s rising expectation that it will have to fight a near-term war with either the U.S., Taiwan, or both.
Beginning with a creative history of the Korean War, He explains that Mao Zedong’s deployment of the PLA against the U.S. military in North Korea shattered “the myth that U.S. imperialism is invincible.” Here, we see a presentation of the U.S. military as a force that can be both contested and defeated. The centrality of the Korean War to the Chinese military psyche takes on significant importance in the context of three factors. First, the war is seen as a necessary defense of the motherland against a great external threat. Second, the PLA has limited post-Korean War experience of major conflict. Third, China views the outcome of that war as being broadly in its favor. Taken together, He thus uses the Korean War to reinforce the idea that China can take on a more powerful foe and triumph.
China’s military might be shocked to find America’s military a wee bit more advanced and prepared than it was in 1950…
“China forced hundreds of thousands of children in Xinjiang, where the majority of the population belongs to the ethnic Uyghur minority, into ‘boarding schools‘ as they lost their parents to communist concentration camps.”
More than half a million Tibetan farmers and pastoralists have been placed in military training facilities to be turned into wage workers controlled by the authorities. This model replicates the one used in Xinjiang internment camps where more than a million Uyghur Muslims are imprisoned and indoctrinated.
A study by the Australian Strategic Policy Institute shows that the Chinese regime runs 380 “concentration camps” in the Xinjiang autonomous region. According to the Chinese Communist Party, Tibetans are a “lazy people” who need to be reprogrammed. To this end, Chinese leaders want to reduce the “negative influence” of the Buddhist religion.
The FBI is warning law-enforcement agencies to beware of cooperating with a Chinese government campaign to coerce U.S. residents to return to China to face criminal charges, according to a counterintelligence bulletin obtained by Yahoo News.
The bulletin comes after eight people, including a former New York Police Department officer, were indicted on charges of acting as illegal agents for Beijing.
“State and local public safety personnel should be aware that Chinese Government officials, such as diplomats and officials with China’s primary law enforcement agency, the Ministry of Public Security (MPS), may seek assistance to obtain sensitive US law enforcement or non-public personally identifiable information on individuals of interest,” which is marked for official use only and was distributed to law enforcement agencies around the country.
The warning concerns China’s long-standing policy of reaching beyond its borders to target people it accuses of financial crimes, even if they are permanently living abroad. The repatriations, often coerced by blackmail or threats, are part of Beijing’s anti-corruption campaign called Fox Hunt.
There has been an increasing number of allegations that China has coerced, even kidnapped, its citizens living abroad, and that it targets political dissidents as well as those accused of financial crimes.
When it comes to the impact of COVID-19 on the People’s Republic of China (PRC), the conventional wisdom seems to be that the emergence of the virus was mishandled and the Communist government has yet to be transparent about it, but that the spread was arrested through aggressive public-health practices and the economy has rebounded.
As usual with the PRC, the reality is more complex. In fact, recent signs of tension between President Xi Jinping and other leaders, notably Premier Li Keqiang, indicate the additional impact the pandemic had on an underlying soft economy and the country’s growing isolation because of Beijing’s poor handling of the crisis and other factors.
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In the past few years, Xi has centralized his personal authority to a degree not seen in a Chinese leader since Chairman Mao. In 2017, Xi took control of the country’s military and often appears in public in a military uniform. He is, in effect, the head of the National Security Council, the head of the foreign policy apparatus, and of multiple economic commissions. In recent public appearances, the state news agency Xinhua has referred to him as “People’s Leader.” Can “Chairman Xi” be far off? In additional to title inflation, in 2018, he imposed constitutional changes on the National People’s Congress that removed a term limit preventing him from seeking a third term in 2023. Xi’s moves and power consolidation mean he is responsible and accountable for both the good and the bad. And lately, there’s been far more bad than good.
Starting with the economy: However the government may have controlled the pandemic, the economy remains weak. Economic growth prior to the pandemic — according to China watchers skeptical of government numbers — was probably flat or negative, notwithstanding official statistics that had it closer to 6 percent. Government at every level and households had combined debt of about 300 percent of GDP. U.S. debt/GDP even after trillions in coronavirus relief spending is less than half China’s level, which leaves fewer levers for Beijing to pull to help stimulate the economy.
While the U.S. Federal Reserve and Congress have injected more than $6 trillion into the economy through massive purchases across many asset classes, the People’s Bank of China balance sheet has remained flat this year. The U.S. Congress provided about $630 billion in direct support to small businesses, compared with less than one-tenth that amount the PRC made available to small businesses in China. Retail sales in China for each month of 2020 are down compared with the same month the year prior. The real data are certainly worse than what the government discloses. In the U.S., retail sales in July were at all-time highs, eclipsing their pre-pandemic levels. According to economist Carlos Casanove at French insurer Coface, the PRC “recovery narrative has been overplayed.”
This is contributing to the tension between Xi and Li. At a press conference in May, the prime minister acknowledged that 600 million people in China — about half the population — subsist on 1000 yuan ($140) a month. This number includes the estimates of 80 million who lost work due to the virus who may have no income and no meaningful social safety net in China. Li’s data track with World Bank data which show a vast disparity in income between the urban elite and the mostly poor rural population. Even so, his comments were out of step with other government-touted figures, including a central bank survey in April of 30,000 urban residents who have an average of nearly half a million dollars in household assets. This figure generated so much controversy that the central bank withdrew it.
Read the whole thing.
“Chinese and European Union officials have agreed to an economic investment deal agreement despite international outrage over the communist regime’s human rights abuses and President-elect Joe Biden’s desire to coordinate an allied posture toward Beijing.” Also, get this: “‘This agreement will uphold our interests & promotes our core values,” European Commission President Ursula von der Leyen insisted Wednesday. ‘It provides us a lever to eradicate forced labour.'” Translation: “We know China engages in slave labor and we’re going to do business with it anyway, and just pretend we care about eliminating it.” (Hat tip: Director Blue.)
The Guardian newspaper in London had an exclusive story in which Victor Zhang, the vice president of Huawei, stated that in light of Trump’s defeat, Britain should review its decision to ban the telecoms giant from its 5G network. Zhang warned that this decision would have economic repercussions for Britain, adding: “As a global company, we want to work with governments to ensure they have the policies to secure growth. The decision was a political one motivated by U.S. perceptions of Huawei, and not those of the U.K. This is not really motivated by security, but about a trade war between the U.S. and China.”
Or consider the fact that this year, some British politicians have shown a certain amount of moral grit by expressing concerns about new authoritarian security laws in Hong Kong and China’s persecution of its Muslim Uyghur minority in Xinjiang. How have the Chinese reacted? This week, Fang Wenjian, chairman of the Chinese Chamber of Commerce in the U.K. and the Bank of China’s boss, issued another menacing warning. The Sunday Times and City A.M. have both published stories linking him to the threat that any decline in U.K.-China relations could force some Chinese firms out of the U.K. In other words: “Don’t criticize China’s abysmal human rights record, or you risk losing our business.”
Alarms bells are also ringing because of Citiking International, a Chinese-backed private equity firm with offices around the world and, it has been reported, possible ties to the Chinese Communist Party. It is trying to buy Eclipse Aerospace, a small firm based in Albuquerque, New Mexico, that employs 65 people. According to Defense News, Eclipse Aerospace produces “very light jets” that are used for intelligence, surveillance and reconnaissance. Defense News states that its planes feature “sophisticated avionics, engines (originally designed for cruise missiles) and a full authority digital engine control system that all contain sensitive national security design information.” Everybody should be deeply worried about the Chinese having access to this sensitive technology, for obvious reasons.
Snip.
The fact is, China has ruined the world in 2020 by its reckless handling of COVID-19. For this, it ought to pay very heavy reparations. It will not. Instead, the reverse is happening. China’s economy is powering ahead, and its leaders are bullying weaker Western nations. With Trump all but gone from the White House, and faltering Joe Biden preparing to move in, it now looks as though China’s quest for world domination is back on track. What a calamity.
“Apple’s longtime supplier accused of using forced labor in China.” “New documents show Lens Technology, which makes iPhone glass and is owned by China’s richest woman, received Uighur Muslim laborers transferred from Xinjiang.”
One of the oldest and most well-known iPhone suppliers has been accused of using forced Muslim labor in its factories, according to documents uncovered by a human rights group, adding new scrutiny to Apple’s human rights record in China.
The documents, discovered by the Tech Transparency Project and shared exclusively with The Washington Post, detail how thousands of Uighur workers from the predominantly Muslim region of Xinjiang were sent to work for Lens Technology. Lens also supplies Amazon and Tesla, according to its annual report.
Lens Technology is one of at least five companies connected to Apple’s supply chain that have now been linked to alleged forced labor from the Xinjiang region, according to human rights groups. Lens Technology stands out from other Apple component suppliers because of its high-profile founder and long, well-documented history going back to the early days of the iPhone.
Meng Yu, former chief investment officer of the California Public Employees’ Retirement System (CalPERS), received more than $1.7 million in total pay and benefits in 2019, according to the latest financial disclosures obtained by Transparent California, a taxpayer watchdog group. Under Meng’s leadership the pension fund, which covers two million members in the retirement system and 1.5 million members under its health program, has been subject to federal inquiries into its investments in Chinese government entities.
Meng took the lead at the pension fund after China’s Thousand Talents Program recruited him to serve as the deputy CIO of China’s State Administration of Foreign Exchange (SAFE), a state-controlled entity. The FBI considers the Thousand Talents Program an example of “China’s non-traditional espionage against the United States” that seeks to recruit people to transfer U.S. trade secrets and taxpayer-funded research into the hands of the Chinese government. Meng told the propaganda outlet People’s Daily that he worked for SAFE out of patriotic commitment to “the motherland.”
When a hacking organization’s secret tools are stolen and dumped online for anyone to pick up and repurpose, the consequences can roil the globe. Now one new discovery shows how long those effects can persist. Five years after the notorious spy contractor Hacking Team had its code leaked online, a customized version of one of its stealthiest spyware samples has shown up in the hands of possibly Chinese-speaking hackers.
At an online version of the Kaspersky Security Analyst Summit this week, researchers Mark Lechtik and Igor Kuznetsov plan to present their findings about that mysterious malware sample, which they detected on the PCs of two of Kaspersky’s customers earlier this year.1 The malware is particularly unusual—and disturbing—because it’s designed to alter a target computer’s Unified Extensible Firmware Interface, the firmware that is used to load the computer’s operating system. Because the UEFI sits on a chip on the computer’s motherboard outside of its hard drive, infections can persist even if a computer’s entire hard drive is wiped or its operating system is reinstalled, making it far harder to detect or disinfect than normal malware.
The malware the Kaspersky researchers discovered uses its UEFI foothold to plant a second, more traditional piece of spyware on the computer’s hard drive, a unique piece of code Kaspersky has called MosaicRegressor. But even if that second-stage payload is discovered and wiped, the UEFI remains infected and can simply deploy it again. “Even if you would take the physical disk out and replace it with a new one, the malware will keep reappearing,” says Lechtik, who along with Kuznetsov works as a researcher on Kaspersky’s Global Research and Analysis Team. “So I think to date, it’s the most persistent method of having malware on your device, which is why it is so dangerous.”
On 4 May 2016, a sudden mass death of fish in the Lichu River in Minyak Lhagang, Dartsedo County in Karze Prefecture brought hundreds of local Tibetans out on the street, protesting against a lithium mining company (Ronda Lithium Co Ltd) that released mine waste into the Lichu River, a tributary of Nakchu/Yalong river, the biggest river that merges with Yangtse downstream.
Yet another case of contaminated mine waste released into Tibetan rivers by a Chinese mining company clearly contradicts Beijing’s call for Green Development in their 13th Five Year plan. In recent years, there have been an increase in the number of cases of environmental degradation caused by Chinese mining companies in Tibet, resulting in more than 20 large scale mining-related protests since 2009.
China is also repressing Chinese Jews. I was unaware that Kaifeng, Henan, is home to a Jewish community dating back to the 9th century.
Speaking of which: “As the World Health Organization and other China puppets struggle to assemble a ‘natural origin’ theory for COVID-19, the CCP has been going to great lengths to quash non-sanctioned investigations that may instead point to a lab escape from research facilities which made international headlines in 2015 for dangerous ‘gain-of-function’ research – by which they were manipulating coronaviruses to better infect humans.”
More than a year since the first known person was infected with the coronavirus, an AP investigation shows the Chinese government is strictly controlling all research into its origins, clamping down on some while actively promoting fringe theories that it could have come from outside China.
The government is handing out hundreds of thousands of dollars in grants to scientists researching the virus’ origins in southern China and affiliated with the military, the AP has found. But it is monitoring their findings and mandating that the publication of any data or research must be approved by a new task force managed by China’s cabinet, under direct orders from President Xi Jinping, according to internal documents obtained by the AP. A rare leak from within the government, the dozens of pages of unpublished documents confirm what many have long suspected: The clampdown comes from the top.
As a result, very little has been made public. Authorities are severely limiting information and impeding cooperation with international scientists.
A host of corporate media outlets including CNN, The New York Times, The Washington Post, and MSNBC have participated in private dinners and sponsored trips with the China-United States Exchange Foundation, a Chinese Communist Party-funded group seeking to garner “favorable coverage” and “disseminate positive messages” regarding China, The National Pulse can reveal.
Other outlets involved in the propaganda operation include Forbes, the Financial Times, Newsweek, Bloomberg, Reuters, ABC News, the Economist, the Wall Street Journal, AFP, TIME magazine, LA Times, The Hill, BBC, and The Atlantic.
The relationship is revealed in the Department of Justice’s Foreign Agent Registration Act (FARA) filings, which reveal a relationship spanning over a decade between establishment media outlets and the China–United States Exchange Foundation (CUSEF).
The president of Columbia University is asking Joe Biden to end the monitoring of foreign-born students, especially those who are ethnically Chinese.
He characterized such monitoring as “paranoia.”
Columbia President Lee Bollinger issued the letter on December 3 as part of a broader statement asking Biden to “End the Trump Administration’s Assault on the International Exchange of Ideas.” In 2019, Bollinger wrote an op-ed in the Washington Post, warning that he would not “start spying” on foreign students.
Won’t someone please think of the plight Ivy league university presidents desperate to keep sucking China’s teat?
“How The Chinese Use Illegal Online Gambling And Tether To Launder Over $1 Trillion Yuan.” ‘Chinese citizens launder as much as $153 billion per year with the help of online gambling and such cryptocurrency as tether, which has long been rumored to be a key driver of upside into bitcoin.”
Huawei very much is the spearhead, because in the Chinese model of economic expansion and the development of world economic power, broadband is the opener to everything else.
It’s a company with a lot of very talented people. Ten years ago – if you asked people, “What Chinese products do you buy?” – you wouldn’t mention a single brand name. But everyone now knows Huawei. They produce the world’s best smartphones. They certainly dominate 5G internet. But Huawei is not a Chinese company. It is an imperial company.
The Chinese empire is doing better than us because it’s absorbed the talent of a very large number of others. Fifty percent of their engineers are foreign. They bankrupted their competition and hired their talent. They have 50,000 foreign employees, and a very disproportionate amount of their research and development (R&D) is conducted by foreign employees.
I’ve seen this personally. I worked for several years as an investment banker in Hong Kong for a Chinese-owned boutique. During that time, I collaborated with people from Huawei. I introduced them to foreign governments. Huawei was very clear about its objectives. They’d tell, for example, the government of Mexico, “Let us build a national broadband network. Once you get broadband, you get e-commerce and e-finance, and then we’ll supply the logistics and the financing for that, and we’ll integrate you into the world market.”
They’ve become one of the most connected societies on earth. China has, by far, the highest percentage of e-commerce of any society in the world. Electronic payment systems and electronic banking are much more advanced there than anywhere else.
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China has a set of weak spots. First, they’ve got a very rapidly aging population. Like all countries with aging populations, they need to export capital and employ young people and other countries to pay for the pensions of their own people. Germany does this, too. That’s part of the motivation for China’s strategy. They will have an enormous burden supporting the aged in the future. They’re hoping to deal with that through automation, through more efficient health care.
Their biggest problem is the ambitions of their young people. The Chinese created a generation of which 10 million people each year take the gaokao (university) exam. A third of them study engineering. They expect opportunities.
If China loses its edge in technology, if they fall behind the West, if the Communist Party is seen to have failed in competing with the West, I think that will be a significant threat to its power.
Worth reading, even if you take it with several grains of salt.
If I missed any China news, feel free to share in the comments.
Arm’s specialty is licensing it chip design IP to other manufacturers to incorporate into their own designs. Arm has a well-earned reputation for producing designs that squeezes the most performance per watt out of a given die sized. Think of it as an all-purpose CPU mix-and-match design kit, allowing companies to quickly design custom chips incorporating their own special sauce without reinventing the wheel for every JTAG port and ring oscillator. Arm-derived designs have come to completely dominate mobile devices, and Apple, who had previously used custom cores incorporating Arm IP into their iPhone and iPad lines, just this year announced that they’re moving from Intel to an Arm-based custom chip for their Macintosh PC line.
The great thing about Arm is that all they make is money. They license their IP at (for most customers) relatively modest per-chip cost, and most (possibly all) the major chip foundries have licensed their IP for one thing or another. So have most Integrated Device Manufacturers (i.e., chip companies that still run their own wafer fabs, an increasingly pricey proposition), including rival Intel, which has dominated PC CPUs for about an eon of Internet time.
Nvidia currently uses both TSMC and Samsung for foundry partners, both of which have Arm licenses.
A lot of the microwave instant-analysis of “Oh, now Nvidia gets more of that sweet Apple business” is probably greatly overstated, and is at best a minor consideration. The sort of highly parallelized vector processing that Nvidia specializes in is increasingly being used in IT centers and high performance computing for a wide variety of tasks, their GPUs either supplementing or entirely replacing traditional CPUs. Nvidia continues to cram an ever-higher number of CUDA cores (designed for highly parallelized tasks) into its chips. Fully integrating Arm’s renowned power-savings techniques into each of those cores, and being the first to take advantage of that technology, is potentially huge.
All mergers are fought with peril, but if Nvidia pulls off the integration, Intel could be facing the biggest challenge to its dominance since PowerPC and DEC Alpha were pushing it in the late 1990s.
Nvidia Corp. NVDA, 2.38% surpassed Intel Corp. INTC, -1.38% as the largest U.S. chip maker by market cap for the first time on Wednesday. Nvidia shares closed up 3.5% at $408.64, giving it a market cap of $251.31 billion, while Intel shares finished up 0.5% at $58.61, giving it a market cap of $248.16 billion, according to FactSet data. For the year, Nvidia shares have gained 74% while Intel shares have slipped 2%, compared with a 11% gain in the PHLX Semiconductor Index SOX, 3.14%, a 17% gain in the tech-heavy Nasdaq Composite Index COMP, 1.64%, and a 1.9% decline in the S&P 500 index SPX, 0.66%. While it is not the first time a U.S. chip maker has surpassed Intel in market cap, it is the first time for Nvidia. Back in 1999 and 2000, Texas Instruments Inc. TXN, 1.89% surpassed Intel in cap a few times, and between late 2012 and mid-2014 Qualcomm Inc. QCOM, 3.80% and Intel often jockeyed for the No. 1 position, according to Dow Jones data.
Nvidia is a fabless semiconductor company that designs graphics processor units (GPUs), the chips that drive computer screens, especially those for gaming systems and consoles. They were also popular for Bitcoin and other crypto-currency mining rigs, though that market seems to have played itself out. They earned just over $3 billion in profit in their fiscal Q1.
Intel, of course, makes CPUs, the central processing units at the heart of pretty much every computer. They’ve had trouble recently as rival AMD has lapped them in a number of markets, Apple is abandoning them as the Mac CPU manufacturer to go with a custom ARM-based system-on-a-chip, and reportedly Intel has had process yield problems with their chips. However all of that hasn’t prevented them from announcing over $5 billion in profits for their last fiscal quarter, though they also announced they’re pushing out their 7mm process node.
Owning your own fabs has become a very expensive proposition, but once they’re up and running, the costs are lower and give you full control of the process. So far Nvidia has benefited greatly from having TSMC fab their chips, but it’s rumored that all of TSMC’s cutting edge 5nm fab wafer starts are already spoken for next year (Apple is another customer), and it will take time for more fab capacity to come online. That may start to constrain Nvidia’s growth.
Nvidia is certainly having a better year than Intel, but 80 times earnings is a pretty crazy P/E ratio. Some market correction is probably in order.
