Tuesday, February 04, 2020

The App That Disrupted the Iowa Caucuses
A cascading set of failures led us here.

by Cari Hernandez Published on Tuesday, February 04, 2020 by Medium
The IDP intended the app to be used the primary method of gathering and transmitting results, but apparently failed to impress this upon the people actually working with the app. (Photo: Alex Wong/Getty Images)
The IDP intended the app to be used the primary method of gathering and transmitting results, but apparently failed to impress this upon the people actually working with the app. (Photo: Alex Wong/Getty Images)
Last night, we watched as the Iowa caucuses slowly unfolded and ultimately collapsed in real-time. Today, my little corner of the internet is abuzz with righteous anger and, in some cases, conspiracy theories. One thing is certain: we are all shocked at the sheer incompetence displayed by the Iowa Democratic Party and all those involved in the development of the app that was supposed to simplify and expedite the process.

According to a New York Times report, the app had only been under consideration for state-wide use for a couple of months. As more stories come out, a picture starts to form showing that a series of decisions and mistakes were made that led us here. By all accounts, it seems that users were unclear as to the app’s purpose. The IDP intended the app to be used the primary method of gathering and transmitting results, but apparently failed to impress this upon the people actually working with the app.

Many users did not even get to the point of attempting to use the app, in part because of requirements related to the installation process that would cause the average use to skip using an app, especially if they believe they don’t have to. The average user is not going to bypass their phone’s permissions and sideload an app that they believe is simply a backup method to what they’re putting on paper and calling in. 

Unsurprisingly, users were also not required to be trained on the app before the caucuses, and based on the information currently available it appears no significant end-user testing was performed. One indication of the failure to communicate basic information about the app is people like Pete Buttigieg’s comms director tweeting out pictures that contained PIN numbers that would allow one to access the app if they were able to get it on their phone.

Once it became clear the app was not working, users turned to the usual method of calling in their results. Troy Price, the chairman of the state party previously stated that there would be multiple redundancies in place and that he was “confident” in their contingency planning. 

What we actually saw was an abject failure of planning. This backup method was an embarrassment. One precinct secretary was on hold with the party’s hotline for over an hour, and then had his call disconnected by the person on the other end live on CNN

Des Moines County Democratic Chair Tom Courtney described similar scenes across his county, where caucus organizers attempted to call in their results to no avail. It seems they were unprepared for the amount of calls they were swamped with after the app’s failure.

As another backup method, this was the first time Iowa instituted a paper trail, paper ballots were to be returned to the caucus chair in order to be eligible to be counted in the event of a recount. But it appears that some caucus chairs were not even aware that the paper ballots would be returned to them, again likely in part due to a failure in training.

It’s tempting to blame a general reliance on tech or jump to conspiracy theories, and in this case it’s somewhat understandable. According to FEC filings, the Biden and Buttigieg 2020 campaigns have both paid the company who made the app, Shadow Inc., though it’s unclear for what. It’s also emerged that many of the people involved in the app’s development were previous Hillary for America employees in various technology roles. Screenshots of the employee’s LinkedIn profiles began circulating on twitter not long after it became clear that something was amiss.

But I think there is a simpler explanation here. Anyone who has worked at a badly managed software company or on a poorly run team on a tight deadline is very familiar with this situation. Based on the employment histories of those involved, it appears the revolving door between campaigns and the private sector, as well as the symbiotic relationships between former campaign workers and their professional political network is likely to blame. It’s not difficult to imagine technologists failing up through campaigns and using their connections to be awarded these contracts once they enter the private sector, leading to a situation where no one involved in the decision making process has worked at this scale.

What you get from this is a group of people who have no idea what they are doing, being responsible for the integrity of our electoral process. From the actions of those who decided Shadow Inc. was the right company for this job, to those along every step of the way who neglected basic development practices, a cascading set of failures led us here. This is not only a failure in the planning, development, testing, and deployment of this app, but in the creation of backup methods, to the point where the electoral process is compromised. To me this doesn’t seem necessarily or purposely malicious, it seems more like incompetence and negligence.

This morning, the Iowa Democratic Party released a statement stating that their data is sound and confirming that there were no cyber security issues. It seems that while most people were focused on the looming threat of Russian election interference, much more common and less nefarious villains entered the scene: executives, product managers, developers, and party officials who did not know what they were doing. The statement conveniently does not mention that their data is incomplete, due to all the issues mentioned above.

The statement goes on to describe the issue in this way: “We have determined that this was due to a coding issue in the reporting system. This issue was identified and fixed. The application’s reporting issue did not impact the ability of precinct chairs to report data accurately.”

A lot of what we’re thinking around this situation is speculative due to the amount of information that’s available to us. But there are many questions to be asked. Who decided Shadow Inc. was capable of designing and deploying this application? What were the Biden and Buttigieg campaigns paying for when they sent thousands of dollars to Shadow Inc.? Who decided it wasn’t necessary to train the users, or to even relay to the users of the purpose of the app? Who was responsible for failure of the backup methods? Are we to believe that the issue that was identified and fixed was deployed last night, and that users again went through the process of sideloading an updated version of the app? As we go into the Nevada caucuses where the app will also be used, should we trust the people responsible for all these issues to be competent enough to fix them in time?

We deserve answers. Personally, I don’t feel confident that every process failure that we’ve seen here can be corrected in the short amount of time before Nevada. Ideally, external auditors would get involved to figure out and document what happened and give us the answers we need. We can’t settle for depending on the people who got us into this mess. If they won’t give us the transparency we deserve, we must demand it.
Update: Although initial reports indicated the same app would be used in Nevada, the Nevada Democratic Party has since released a statement vowing not to use it.
Cari Hernandez
Cari Hernandez is an engineer and socialist feminist based in Philadelphia. Follow her on Twitter @eatinginmycar.



Iowa caucus debacle is one of the most stunning tech failures ever

PUBLISHED TUE, FEB 4 2020 Kate Fazzini@KATEFAZZINI

KEY POINTS

The Iowa caucus debacle represents one of the most stunning failures of information security ever.

It was delivered by the very officials who have said for four years they were “ramping up” technology capabilities, convening numerous security task forces and collaborating with federal agencies to make sure everyone was in the loop on voting security.

Voters will be paying close attention to how party leaders ensure that votes going forward have clear contingency plans in place, not just to protect against hackers, but from all types of technology failures.



WATCH NOW VIDEO
Here’s what happened at the Iowa caucuses, and what the candidates have to say

The Iowa caucus debacle represents one of the most stunning failures of information security ever.
This failure was delivered by the same Iowa Democratic Party officials who have said for the last four years they were “ramping up” their technology capabilities, convening seemingly endless security task forces to ensure foreign powers did not disenfranchise voters, and collaborating with federal agencies like the Department of Homeland Security to make sure everyone was in the loop on voting security.

Voters will be paying close attention to how party leaders ensure that votes going forward have clear contingency plans in place, not just to protect against hackers, but from all types of technology failures, including applications that might not work.

What happened?

Iowa officials counting the results coming in Monday from the caucusing app reported irregularities that required them to switch from the app to counting votes manually. Party officials said the “underlying data” put into the app was fine, but it is unclear as of yet how they know this or even what they consider “underlying data.”

“Last night, more than 1,600 precinct caucuses gathered across the state of Iowa and at satellite caucuses around the world,” the Iowa Democratic Party said in a statement Tuesday. “As precinct caucus results started coming in, the IDP ran them through an accuracy and quality check. It became clear that there were inconsistencies with the reports. The underlying cause of these inconsistencies was not immediately clear, and required investigation, which took time.”

Read more: Nevada Democrats say they won’t use the app involved in Iowa caucus

The Iowa Democrats were using an application made by a partisan progressive start-up named Shadow Inc., managed by a nonprofit investment company called Acronym. In a statement, Acronym distanced itself from Shadow.
“We are reading confirmed reports of Shadow’s work with the Iowa Democratic Party on Twitter and we, like everyone else, are eagerly awaiting more information ... with respect to what happened,” Acronym said in a statement.

Iowa Democrats explained that backup measures for the Shadow app took “longer than expected.”

“We have determined that this was due to a coding issue in the reporting system. This issue was identified and fixed. The application’s reporting issue did not impact the ability of precinct chairs to report data accurately,” the Iowa Democratic Party statement said. Voters will surely be asking the Iowa Democrats to prove how they know the information is accurate with so many reported irregularities.

Shadow apologized on Twitter Tuesday afternoon. “We sincerely regret the delay in the reporting of the results of last night’s Iowa caucuses and the uncertainty it has caused to the candidates, their campaigns, and Democratic caucus-goers.”
Why did it happen?

The Iowa Democrats and Democratic National Committee will have to answer several puzzling questions about why they chose to use the application in the first place.

First, in 2016, the Iowa caucuses used an application made by Microsoft, which worked. It’s unclear why they didn’t keep the same application, created by an established company instead of one from an untested start-up.

Microsoft is making sure people know it didn’t make this year’s app. “We had a great partnership with the Iowa political parties in 2016, but we are not part of the caucuses this year and have not been involved in building or supporting their app,” a company spokesperson tweeted.

Second, in August, the Democratic National Committee recommended Iowa stop using an app altogether. The Democratic National Committee’s Rules and Bylaws Committee voted to follow those recommendations. It said a security review had determined the virtual caucus did not meet standards for cybersecurity and reliability.
“We are — over the last week and continuing today and in the days ahead — continuing to look at what options might be available to us given the time frame that’s left,” Iowa Democratic Party Chairman Troy Price said in September, according to NPR. “We know there’s not a lot of time left. There’s 4.5 months between now and when Iowans head to the caucus sites.”

DHS acting Secretary Chad Wolf told Fox News on Tuesday that the app “was not vetted for cybersecurity.”

Now, Iowa is scrambling for answers.

Cybersec vs. Infosec: Why it matters here

Iowans are learning about the important distinction today between cybersecurity and information security.

Loosely speaking: In cybersecurity, organizations work to defend against hackers. In the broader field of information security, organizations work to be able to recover quickly whether they have been hit by a cyberattack, someone tripped over a cord in a data center or a server farm gets knocked out by a hurricane. Cybersecurity falls into the bigger bucket of infosec and resiliency planning.

In this case, it appears as though cybersecurity wasn’t the issue, but the proper back-up planning, testing and vetting procedures were completely deficient or simply absent entirely. They had an app that they knew was problematic. They used it anyway without properly testing their back-up plans, each stage of which have proved to take longer than usual.

Preparing for the inevitably of a cyberattack meant the Iowa Democrats, Democratic National Committee and DHS should all have been ready to bounce back from a problem like this. The fact that they still haven’t recovered is likely to be more disheartening to voters than any malicious Twitter campaign or fake Facebook ad or Russian phishing bid.

All of these organizations owe it to the electorate to never let something like this happen again. Because if they can’t recover from a bad app, a hack or a hurricane could be far more devastating.

Image result for the shadow"


SEE 

NEW DETAILS SHOW HOW DEEPLY IOWA CAUCUS APP DEVELOPER WAS EMBEDDED IN DEMOCRATIC ESTABLISHMENT

Top Hollywood celebrities and Silicon Valley investors are linked to the app that failed in Iowa

After Epic 'Nightmare' in Iowa, Democratic App Built by Secretive Firm Shadow Inc. Comes Under Scrutiny "This outfit is inexcusably secretive." 

Iowa Caucus Night Is an Utter Disaster

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Wall Street might actually be fine with Sanders moving to the front of the Democratic pack

PUBLISHED TUE, FEB 4 2020 Jeff Cox@JEFF.COX.7528@JEFFCOXCNBCCOM

KEY POINTS

A potential matchup between Bernie Sanders and Donald Trump is being given greater possibility after recent developments.

Wall Street might like the scenario on the assumption that Sanders would be an easier opponent.

Stocks have done well under Trump, and might not do so under Sanders given his disdain for big business.


Democratic presidential candidate Sen. Bernie Sanders (I-VT) addresses supporters during his caucus night watch party on February 03, 2020 in Des Moines, Iowa. Iowa is the first contest in the 2020 presidential nominating process with the candidates then moving on to New Hampshire. Alex Wong | Getty Images


The momentum of Bernie Sanders in the Democratic presidential field sets up a potential clash of polar opposites in November, one which Wall Street might relish.

A clash between President Donald Trump and the Vermont democratic socialist gathered more attention Tuesday amid reports that Sanders showed impressively the day before in Iowa and is pushing closer to the front of the Democratic pack.

“There is a lot of chatter that a Sanders nomination would roil markets, but there’s another way to consider that possibility,” Nick Colas, co-founder of DataTrek Research, said in his daily market note. “Investors may assume that Sanders’ platform of radically remaking American society/commerce will not resonate with voters during a time of relative economic prosperity. That would make President Trump’s reelection more likely, preserving a market-friendly tone to government policy.”

WATCH NOW VIDEO
Bloomberg wants an ‘establishment freak-out’ after Sanders gains early lead, strategist says

Stocks have been on a tear this week. While it’s impossible to tell how much the changing political dynamics tie into that (if at all), there’s clearly a sentiment across the investing community that a Sanders presidency, with its expected broadsides against wealthy Americans and big business, would be trouble for the market.

Wall Street, of course, has done well during the Trump years.

The Dow Jones Industrial Average has risen about 58% since Trump’s election. Anything that suggests status quo, then, would garner support from the Street.

“There’s enough of an analogy to hang your hat on,” Colas said in an interview. “People reject an old-school socialism-oriented politician in factor of, ‘Look, follow me. The future is bright and it can get brighter.’”

Predicting Trump vs. Sanders

No one knows yet what really happened in Iowa during Monday’s caucus due to a tabulation fiasco that left the party in confusion. But Sanders’ camp was claiming victory, and at least anecdotally, there were indications that former Vice President Joseph Biden had underperformed.

With New Hampshire then Super Tuesday on the horizon, Sanders likely will continue to build momentum. Biden still leads nationally by 3.3 points, according to the latest RealClearPolitics consensus, but things can change quickly when it comes to presidential politics.

PredictIt, a marketplace that allows bets on a variety of events including the presidential election, puts Trump well in front, with Sanders second and the rest of the pack well behind.

As the muddied electoral picture gets clearer, markets will start to make their bets. Trump against a Biden or Mike Bloomberg would present an entirely different choice than Trump vs. Sanders.

“Trump now is starting to call Bernie a communist. Trump can demonize an opponent faster than any politician I’ve seen in my career,” said Greg Valliere, veteran political analyst and chief global strategist at AGF. “For most establishment Democrats in the party, they’re terrified that if Bernie is at the top of the ticket, they’re going to have big losses.”

However, Valliere said the market isn’t necessarily all-in on Trump and actually would entertain alternatives — just not one named Bernie Sanders.

“For the markets, there’s only three candidates who can win in November — Trump, Biden, who’s fairly moderate especially on trade, and Bloomberg. The market could live with those three and those are the only three in my opinion who could win,” he said. “If Bernie were the nominee ... I think it would be a pretty easy victory for Trump.”

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Saudi Arabia fund dumped nearly all of its Tesla shares in the fourth quarter before the rally

PUBLISHED TUE, FEB 4 2020 Yun Li@YUNLI626

KEY POINTS

The Saudi Arabia Public Investment Fund now holds just about 39,000 shares of the stock after selling 99.5% of its holding.

The fund held more than 8.2 million shares by the end of the third quarter of 2019, which would have been worth more than $7 billion at Tuesday’s price.

The fund missed out on Tesla’s massive rally in the new year. Shares of the electric-car maker soared 20% to above $900 on Tuesday, bringing its 2020 gains to more than 110%.



Tesla CEO Elon Musk presented the first batch of made-in-China cars to ordinary buyers on January 7, 2020 in a milestone for the company’s new Shanghai “giga-factory”, but which comes as sales decelerate in the world’s largest electric-vehicle market.
STR


The Saudi Arabia Public Investment Fund in the fourth quarter of last year dumped nearly all the shares of Tesla it owned, missing out on a big windfall, a new filing Tuesday revealed.

The fund now holds about 39,000 shares of the stock after selling 99.5% of its holding last year, according to InsiderScore.com and public filings. The fund held more than 8.2 million shares by the end of the third quarter of 2019, according to filings with the Securities and Exchange Commission.

Those shares would be worth more than $7 billion at Tesla’s price Tuesday.

The selling by the end of fourth quarter means the fund missed out on Tesla’s massive rally in the new year. Shares of the electric-car maker soared 20% to above $900 on Tuesday, bringing its 2020 gains to more than 110%.

Before the latest sale, the sovereign wealth fund had dramatically cut its net exposure to Tesla stock in early 2019 after CEO Elon Musk settled fraud charges with the SEC over the claim to take his company private.

Tesla’s epic run recently has been fueled by analysts raising price targets to catch up to the stock and short covering by investors betting against the shares. Musk’s Tesla has more investors betting against the company than any other U.S. stock, according to S3 Partners. Short sellers have lost more than $8 billion since the beginning of the year, S3 said.

The company’s rapid rally has pushed its market capitalization above $160 billion, which tops Netflix’s $157 billion market cap.

Investors turned more bullish after the company reported deliveries of 112,000 vehicles globally during the fourth quarter, a personal best for Tesla. That number significantly topped Wall Street estimates, and hit the low end of Musk’s year-end sales goal.

Correction: The Saudi Arabia Public Investment Fund now holds about 39,000 shares of Tesla after selling 99.5% of its holding last year, according to InsiderScore.com and public filings. An earlier version misstated the number of shares

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CLEARLY THEY HAD NOT CONSULTED 


Breaking News From Corporate Media: Billionaires Do Not Like Socialism

Just as the press are keen for you to know that Medicare for All is a very bad idea, they are equally anxious to make sure that the voices of beleaguered, unheard plutocrats are given as much of a boost as possible.

Published on
by
Fairness and Accuracy In Reporting (FAIR)JPMorgan CEO Jamie Dimon Takes on Socialism, Says It Will Lead to an ‘Eroding Society.’ (Photo: Scott Olson/Getty Images)
JPMorgan CEO Jamie Dimon Takes on Socialism, Says It Will Lead to an ‘Eroding Society.’ (Photo: Scott Olson/Getty Images)
Big news, everyone! Billionaires don’t like socialism.
In response to a rising progressive tide in the United States, a new genre of stories has emerged in corporate media: rich guys warning against taxing them, or really changing anything about the system at all. Just as the press are keen for you to know that Medicare for All is a very bad idea (FAIR.org4/29/19), they are equally anxious to make sure that the voices of beleaguered, unheard plutocrats are given as much of a boost as possible.
CNBC: BP’s CEO chides AOC and Bernie Sanders for their ‘completely unrealistic’ Green New Deal ideasIs the opinion of the CEO of the world’s fifth-largest oil company that Bernie Sanders and Alexandria Ocasio-Cortez “have a completely unrealistic idea of the complexity of the global energy system” (CNBC, 1/22/20) really “breaking news”?
A case in point is CNBC’s recent article (1/22/20) headlined, “BP’s CEO Chides AOC and Bernie Sanders for Their ‘Completely Unrealistic’ Green New Deal Ideas.” Reporter Jessica Bursztynsky begins:
Outgoing BP chief Bob Dudley on Wednesday criticized sweeping climate proposals from Sen. Bernie Sanders, a top-tier 2020 Democratic presidential candidate, and Rep. Alexandria Ocasio-Cortez, a champion of the far left. “They have a completely unrealistic idea of the complexity of the global energy system,” Dudley told CNBC’s Squawk Box from the World Economic Forum in Davos, Switzerland.
To sum up the story, a CNBC journalist went to Davos (where the cheapest hotel room last year was $1,000 per night) to get ideas about socialism and the environment from the CEO of BP, one of the 100 corporations responsible for over 70% of the world’s emissions. At no point did Bursztynsky warn the audience or even allude to the enormous conflict of interest the oil multi-millionaire might have in discussing solutions to the climate crisis. Instead, his views are presented as a straight and important news story.
In contrast, the first sentence primes the reader against AOC and Sanders by presenting them as “far left” – in other words, as some sort of out-there crazies, even though their ideas are supported by the majority of the American people (FAIR.org1/23/19). It allows Dudley to claim that there is a distinct “lack of realism” from his critics (emphasis added):
“There’s just a lot of people, very well-meaning people, who want to believe that there is a simple solution,” Dudley said at the Abu Dhabi International Petroleum Exhibition & Conference.
Jeez, I wonder what oil CEOs at an energy forum in a Mideastern monarchy think about renewable energy? Good thing CNBC is on the case.
CNBC: Jamie Dimon: I don't think people understand what socialism isIf you don’t understand what socialism is, the CEO of JPMorgan Chase will fill you in (CNBC, 1/22/20).
Not content with hearing only one CEO’s opinion, on the same day CNBC (1/22/20) published another Davos interview, called “JPMorgan CEO Jamie Dimon Takes on Socialism, Says It Will Lead to an ‘Eroding Society,’” where Dimon told readers that “socialism has failed everywhere it’s been tried” and claimed that millennials don’t understand what it really is. A billionaire investment banker doesn’t like socialism!? Stop the presses!
CNBC is a particularly frequent culprit of publishing non-news such as this. Last year it ran an article (6/20/19) titled “Bernie Sanders ‘Doesn’t Have a Clue,’” featuring supposed wisdom from multibillionaire Goldman Sachs alum Leon Cooperman, who stated bluntly: “We have the best economy in the world. Capitalism works,” and that Sanders’ “far-left” agenda is “counterproductive.” “I’m not in favor of raising taxes. Taxes are high enough,” Cooperman predictably said.
Neither article mentioned JPMorgan and Goldman Sachs’ role in the 2008 global financial crash, the up to $29 trillion bailout their industry received, and how these corporations need capitalism to continue regardless of whether it “works” or not. Instead, these tycoons’ bland statements are treated as important facts from experts. Media present their position as CEOs of oligarchic corporations as making their opinions inherently noteworthy. That might be true on some issues, but on questions like this, their invested positions actually make them less credible.
Yet CNBC (4/16/19) not only allowed United Healthcare CEO David Wichmann to claim that Medicare for All would “destabilize the nation’s health system,” leading to a crisis and a “severe impact on the economy,” without a word of scrutiny, it also bolstered his credibility, telling readers that he “rarely discusses politics,” implying that this was a highly reliable expert opinion, and certainly not scaremongering from a giant for-profit organization making billions annually off the sick.
It is already debatable if plutocrats’ entirely predictable pronouncements on economic issues are even news at all, given their obvious incentives. And there is also the question as to whether CNBC should be using its considerable resources to give a megaphone to some of the most powerful people in the world, letting them define and set the agenda of public debate. But to constantly feature these people without even mentioning the massive and glaring personal and economic conflict of interests they hold in pushing these ideas is tantamount to journalistic malpractice.
CBS: Verizon CEO Lowell McAdam: Bernie Sanders' views are "contemptible"“Big companies are an easy target for candidates looking for convenient villains for the economic distress felt by many of our citizens,” declared Verizon‘s CEO in a blog post that was reported as news by many media outlets owned by big companies (CBS News, 4/13/16).
This practice is hardly limited to just CNBC. For example, a number of prominent outlets, including NBC News (4/13/16), the Wall Street Journal (4/13/16), Business Insider (4/13/16), USA Today (4/14/16), CBS News (4/13/16),  Politico (4/13/16) and Fortune (4/13/16), covered a Verizon CEO’s LinkedIn blog post (4/13/16) that claimed Sanders held “uninformed” and “contemptible” views on the economy. “But when rhetoric becomes disconnected from reality, we’ve crossed a dangerous line,” Verizon’s Lowell McAdam wrote, insinuating that the rich were “targets” in potential danger.
In many of the write-ups, Sanders came across as a dishonest rabble-rouser readying the pitchforks, rather than a popular political leader critiquing the greed and power of the extremely wealthy. Is a LinkedIn blog post really newsworthy enough to garner so many national headlines? Evidently, if it says the right thing, then the answer is “yes.”
The fight for a $15 minimum wage has also, predictably, been attacked by restaurant owners who are among the stingiest when it comes to wages. Fox Business (6/6/19) repeated former CKE Restaurants CEO Andy Puzder’s claims that “Bernie Sanders’ proposals will kill economic growth” and lead to a reduction in wages for those he claims to represent. Surely it would have been more honest to at least mention that the ex-boss of the Carl’s Jr. and Hardee’s restaurant franchises might have a conflict of interest on the matter?
And surely when Ken Langone described Sanders as “the Antichrist”—a particularly ugly epithet to hurl at a Jewish politician—the Wall Street Journal (5/10/18) should have at least pointed out that the multibillionaire founder of Home Depot and major Republican donor might be a biased commentator. And it certainly was not obliged to present a man whose net worth has increased by nearly 60% in five years as some kind of ultra-philanthropist, a modern-day Francis of Assisi.
Yahoo: Bank of America CEO: 'Don't challenge capitalism'Bank of America’s CEO spells out what used to be an unspoken rule in US politics and media (Yahoo! Finance, 1/24/20).
Yahoo! Finance (1/24/20) offered its own entry in the musings-from-Davos genre, interviewing Bank of America CEO Brian Moynihan, who told editor-in-chief Andy Serwer: “One of the things we’re trying to get everybody to understand, is you can be capitalist and make progress for society. But don’t challenge capitalism.” Yahoo!’s write-up did mention that Moynihan had been paid $26.5 million in 2018, and that he “has faced scrutiny over politicized issues like executive pay.”
By reporting what multimillionaire and billionaire CEOs say about efforts to change a system they so clearly have a huge stake in staying the same, without highlighting, or even mentioning, their conflict of interest, corporate media are doing their audiences a disservice—effectively propagandizing them into supporting a model their owners and advertisers benefit from. If media are to perform their role as the fourth estate properly, they should really be scrutinizing power, not uncritically amplifying it.
Alan MacLeod
Alan MacLeod is a member of the Glasgow University Media Group. He is author of "Bad News From Venezuela: 20 Years of Fake News and Misreporting." His latest book, Propaganda in the Information Age: Still Manufacturing Consent, was published by Routledge in May 2019. Follow him on Twitter: @AlanRMacLeod


America: Land of Make-Believe

America, founded on the evils of slavery, genocide and the violent exploitation of the working class, is a country defined by historical amnesia.
The embrace of collective self-delusion marks the death spasms of all civilizations. (Photo: Mr. Fish / Truthdig)
The embrace of collective self-delusion marks the death spasms of all civilizations. (Photo: Mr. Fish / Truthdig)
If what happens in courtrooms across the country to poor people of color is justice, what is happening in the Senate is a trial. If the blood-drenched debacles and endless quagmires in the Middle East are victories in the war on terror, our military is the greatest on earth. If the wholesale government surveillance of the public, the revoking of due process and having the world’s largest prison population are liberty, we are the land of the free. If the president, an inept, vulgar and corrupt con artist, is the leader of the free world, we are a beacon for democracy and our enemies hate us for our values. If Jesus came to make us rich, bless the annihilation of Muslims by our war machine and condemn homosexuality and abortion, we are a Christian nation. If formalizing an apartheid state in Israel is a peace plan, we are an honest international mediator. If a meritocracy means that three American men have more wealth than the bottom 50% of the U.S. population, we are the land of opportunity. If the torture of kidnapped victims in black sites and the ripping of children from their parents’ arms and their detention in fetid, overcrowded warehouses, along with the gunning down of unarmed citizens by militarized police in the streets of our urban communities, are the rule of law, we are an exemplar of human rights.
America, as it is discussed in public forums by politicians, academics and the media, is a fantasy, a Disneyfied world of make-believe.
The rhetoric we use to describe ourselves is so disconnected from reality that it has induced collective schizophrenia. America, as it is discussed in public forums by politicians, academics and the media, is a fantasy, a Disneyfied world of make-believe. The worse it gets, the more we retreat into illusions. The longer we fail to name and confront our physical and moral decay, the more demagogues who peddle illusions and fantasies become empowered. Those who acknowledge the truth—beginning with the stark fact that we are no longer a democracy—wander like ghosts around the edges of society, reviled as enemies of hope. The mania for hope works as an anesthetic. The hope that Donald Trump would moderate his extremism once he was in office, the hope that the “adults in the room” would manage the White House, the hope that the Mueller report would see Trump disgraced, impeached and removed from office, the hope that Trump’s December 2019 impeachment would lead to his Senate conviction and ouster, the hope that he will be defeated at the polls in November are psychological exits from the crisis—the collapse of democratic institutions, including the press, and the corporate corruption of laws, electoral politics and norms that once made our imperfect democracy possible.
The embrace of collective self-delusion marks the death spasms of all civilizations. We are in the terminal stage. We no longer know who we are, what we have become or how those on the outside see us. It is easier, in the short term, to retreat inward, to celebrate nonexistent virtues and strengths and wallow in sentimentality and a false optimism. But in the end, this retreat, peddled by the hope industry, guarantees not only despotism but, given the climate emergency, extinction.
“The result of a consistent and total substitution of lies for factual truth is not that the lie will now be accepted as truth and truth be defamed as a lie, but that the sense by which we take our bearings in the real world—and the category of truth versus falsehood is among the mental means to this end—is being destroyed,” Hannah Arendt wrote of totalitarianism.
This destruction, which cuts across the political divide, leads us to place our faith in systems, including the electoral process, that are burlesque. It diverts our energy toward useless debates and sterile political activity. It calls on us to place our faith for the survival of the human species in ruling elites who will do nothing to halt the ecocide. It sees us accept facile explanations for our predicament, whether they involve blaming the Russians for the election of Trump or blaming undocumented workers for our economic decline. We live in a culture awash in lies, the most dangerous being those we tell ourselves.
Lies are emotionally comforting in times of distress, even when we know they are lies. The worse things get, the more we long to hear the lies. But cultures that can no longer face reality, that cannot distinguish between falsehood and truth, retreat into what Sigmund Freud called “screen memories,” the merger of fact and fiction. This merger destroys the mechanisms for puncturing self-delusion. Intellectuals, artists and dissidents who attempt to address reality and warn about the self-delusion are ridiculed, silenced and demonized. There are, as Freud noted in “Civilizations and Its Discontents,” distressed societies whose difficulties “will not yield at any attempt at reform.” But this is too harsh a truth for most people, especially Americans, to accept.
America, founded on the evils of slavery, genocide and the violent exploitation of the working class, is a country defined by historical amnesia. The popular historical narrative is a celebration of the fictional virtues of white supremacy. The relentless optimism and reveling in supposed national virtues obscure truth. Nuance, complexity and moral ambiguity, along with accepting responsibility for the holocausts and genocides carried out by slaveholders, white settlers and capitalists, have never fit with America’s triumphalism. “The illusions of eternal strength and health, and of the essential goodness of people—they were the illusions of a nation, the lies of generations of frontier mothers,” F. Scott Fitzgerald wrote.
In decay, however, these illusions are fatal. Powerful nations have the luxury of imbibing myth, even if decisions and policies based on the myth inflict damage and widespread suffering. But nations whose foundations are rotting have little latitude. The miscalculations they make, based on fantasy, accelerate their mortality.
Joseph Roth was one of the few writers in the 1930s in Germany who understood the consequences of the rise of fascism. In his essay “The Auto-da-Fé of the Mind,” which addressed the first mass burning of books by the Nazis, he counseled his fellow Jewish writers to accept that they had been vanquished: “Let us, who were fighting on the front line, under the banner of the European mind, let us fulfill the noblest duty of the defeated warrior: Let us concede our defeat.”
Roth knew that the peddling of false hopes in a time of radical evil was immoral. He had no illusions about his own growing irrelevance. He was blacklisted in the German press, unable to publish his books in Germany and his native Austria and thrust into dire poverty and often despair. He was acutely aware of how most people, even his fellow Jews, found it easier to blind themselves to radical evil, if only to survive, rather than name and defy malignant authority and risk annihilation.
“What use are my words,” Roth asked, “against the guns, the loudspeakers, the murderers, the deranged ministers, the stupid interviewers and journalists who interpret the voice of this world of Babel, muddied anyhow, via the drums of Nuremberg?”
“It will become clear to you now that we are heading for a great catastrophe,” Roth, after going into self-exile in France in 1933, wrote to the author Stefan Zweig about the ascendancy of the Nazis. “The barbarians have taken over. Do not deceive yourself. Hell reigns.”
But Roth also knew that resistance was a moral if not a practical obligation in times of radical evil. Defeat might be certain, but dignity and a determination to live in truth demanded a response. We are required to bear witness, even if a self-deluded population does not want to hear, even if that truth makes certain our own marginalization and perhaps obliteration.
“One must write, even when one realizes the printed word can no longer improve anything,” Roth explained.
This battle against collective self-delusion is a battle I fear we will not win. American society is fatally wounded. Its moral and physical corruption is beyond repair.
Hope, real hope, names the bitter reality before us. But it refuses to succumb, despite the bleakness, to despair. It cries out to an indifferent universe with every act carried out to name, cripple and destroy corporate power. It mocks certain defeat. Whether we can succeed or not is immaterial. We cannot always choose how we will live. But we can choose how we will die. Victory is about holding on to our moral autonomy. Victory is about demanding, no matter the cost, justice. Victory is speaking the truths the ruling elites seek to silence. A life like this is worth living. And in times of radical evil these lives—ironic points of light, as W.H. Auden wrote—impart not only hope but the power of the sacred.
Chris Hedges
Chris Hedges writes a regular column for Truthdig.com. Hedges graduated from Harvard Divinity School and was for nearly two decades a foreign correspondent for The New York Times. He is the author of many books, including: War Is A Force That Gives Us MeaningWhat Every Person Should Know About War, and American Fascists: The Christian Right and the War on America.  His most recent book is Empire of Illusion: The End of Literacy and the Triumph of Spectacle.

As coronavirus panic spreads, Uber and Lyft riders of Asian descent are reporting discrimination from drivers
PUBLISHED MON, FEB 3 2020

"So far, there have been 11 confirmed cases in the U.S., out of more than 17,000 total.
Public health officials say the flu is a higher threat in the U.S., and has led to 10,000 deaths during the influenza season."


KEY POINTS

Lilian Wang was told by a Lyft driver who picked her up from San Francisco’s airport that he had refused rides from people with Asian sounding names.

Other riders shared similar experiences as fears about the coronavirus spread.

Lyft and Uber say they have policies that are designed to curb discrimination.

Eric Han, who works in a Microsoft retail store in Seattle, told CNBC he called an Uber on Monday, stepped into the car and coughed. It was a cold day. His driver immediately asked if Han was from China, and he responded that he was not.

The driver commented that his cough meant he might have the coronavirus, and opened a window.

I don’t have it,” said Han. “I’m from the U.S.”

Han recalled that the driver responded: “Whatever you say.”

“I’m not one to take offense very easily so I wasn’t angry, just kind of chuckling under my breath like ‘wow, this is really happening’.” Han said he did not report the driver to Uber. Weeks earlier, Han said he was told by a group of strangers in downtown Seattle to “go back to my homeland.”

As the coronavirus spreads, so too are racist attacks directed at Asian Americans.

For ride-sharing platforms Lyft and Uber, these incidents appear to be happening despite their efforts to curb discriminatory behavior. One member of a Facebook group with more than 12,000 Lyft and Uber drivers noted that at least five posts per day mention the virus. The member, who shared screenshots with CNBC, said that many drivers were saying they did not want to pick up riders of Asian descent and that it was not safe to do so.

A CNBC search found dozens of tweets involving riders and drivers reluctant to share a car with a person of Asian appearance. Many of these tweets were posted in the past week, as fears have been stoked by reports that there are now confirmed cases of the virus in more than half a dozen countries.

‘OK, so not China’

Han is far from alone. When Lilian Wang attempted to get into her Lyft ride share at San Francisco airport on Sunday, a driver refused to open the car door.

According to Wang, who is Asian American and works in the technology sector, the driver let them in only after a Caucasian friend showed up — CNBC video producer Katie Schoolov, who says she put in the request for the ride.

Once in the backseat, the driver asked if the pair were returning from China and Schoolov responded that they’d just returned from Mexico. “OK, so not China,” he responded.

Their driver then noted that he’s been told to be careful and has refused ride requests from people with Chinese-sounding names. He also asked Wang if she was in fact, a rider called “He,” and noted that he had already turned down that request.

After registering a complaint, Schoolov received a call from a representative from Lyft’s support team informing her that the driver had been removed from the platform.

On Saturday in Chicago, Indra Andreshak said she took a shared ride in a Lyft and the driver was alerted to two other riders who needed a pickup nearby. The app pulled up a profile picture of the first passenger, who Andreshak noted was “visibly Asian and named Hero.” She then said she heard her driver say “Hero, Heee-ro, Hero in Chinatown.”

“I hope he doesn’t give me the coronavirus,” the driver muttered. Andreshak said she reported the incident.

Myeonghoon Han said five days ago in London he called an Uber with some Korean friends. They piled in and the driver looked annoyed and waved his hands, indicating he did not want them in the car. Han said his friend said “we’re not Chinese,” and the driver’s demeanor changed drastically and he was happy to drive them to their destination. The group did not report the incident.

Lyft spokesperson Dana Davis said in a statement that the company takes “any allegation of discrimination very seriously.” Davis added that Lyft is “monitoring official updates on the global outbreak closely, and taking our cues from international and domestic public health experts.”

“Our priority is to keep our riders, drivers and employees safe, with as little disruption as possible. We will continue to evaluate the situation as it unfolds, and base our policies and recommendations on official guidance,” she said.

Lyft did not respond to CNBC about whether the company would be rolling out any broader policies to combat discrimination, including public health resources and education. Instead, they are asking riders to share their experiences with their safety team.

Uber referred CNBC to its community guidelines that drivers are required to acknowledge. Those guidelines specify that drivers should “foster positive interactions” with people who “might not look like you or share your beliefs.” It also said it has a portal for public health authorities, and that it is in regular contact with these groups.

In Mexico City, Uber confirmed on Saturday that it suspended the accounts of 240 users who may have recently come into contact with the coronavirus.

China’s National Health Commission confirmed on Monday that there have been 361 deaths from the virus. So far, there have been 11 confirmed cases in the U.S., out of more than 17,000 total. Public health officials say the flu is a higher threat in the U.S., and has led to 10,000 deaths during the influenza season.

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Johns Hopkins doctor says new coronavirus is here to stay, expects ‘seasonal’ outbreaks

IT IS A FORM OF INFLUENZA, AKA THE FLU
AND THE FLU KILLS MORE PEOPLE THAN ANY OTHER DISEASE

CNBC.COM TUE, FEB 4 2020 Jessica Bursztynsky@JBURSZ

KEY POINTS

Johns Hopkins senior scholar Dr. Amesh Adalja said the new coronavirus will likely cause yearly outbreaks, with most of the cases being mild.

“Many people are going to get mild illness and it’s going to be more like a flu-like illness for many people but for some it may be very severe,” he said.

Adalja compared the new coronavirus to the H1N1 swine flu outbreak that hit in 2009.


Senior scholar Dr. Amesh Adalja told CNBC on Tuesday that the new coronavirus will likely cause yearly outbreaks, with most of the cases being mild.

“It’s going to become a part of our seasonal respiratory virus family that causes disease,” Adalja said on “Squawk Box.”

However, he expects the current outbreak to turn into a mild pandemic and spread further in the United States. Currently, there’s only 11 confirmed U.S. cases, according to the Centers for Disease Control and Prevention.

China’s National Health Commission on Tuesday raised its confirmed coronavirus cases in the country to 20,900. The death toll rose to 425 there — with one fatality in the Philippines and one in Hong Kong. The World Health Organization said there’s been more than 150 coronavirus cases in about two dozen countries outside of China.

Many health professionals and analysts believe the number of cases to be much higher, which could bring the mortality rate below it’s current 2%.

Dr. Anthony Fauci, director of the NIH’s National Institute of Allergy and Infectious Diseases, and former FDA Commissioner Scott Gottlieb told CNBC in recent days that they also believe the coronavirus outbreak will turn into a pandemic.

Health officials could declare a “pandemic” if the virus were to start to affect a larger number of people across the globe. The term epidemic is reserved for a more localized spread.

“It’s important that we get a handle on what the severity is and who has the risk factors, so that we can protect those individuals,” Adalja said. “Many people are going to get mild illness and it’s going to be more like a flu-like illness for many people but for some it may be very severe.”

Adalja compared the coronavirus to the 2009 H1N1 swine flu outbreak, which is now seen as a regular flu virus. The swine flu pandemic killed about 285,000 people at the time, but it had a low mortality rate. The 2002-2003 SARS outbreak saw 8,098 cases and 774 deaths. That was a mortality rate of 9.56%.

“There are probably a lot more people who were infected in China who have not been really counted ... because they were either asymptomatic or their symptoms were so light that they didn’t come to the attention of health authorities,” Fauci told CNBC on Monday.

Countries around the globe have responded to the coronavirus outbreak by putting preventative measures, such as travel restrictions, in place. Companies, including Starbucks and Apple, have temporarily closed some China operations.

The U.S. instituted on Sunday a mandatory 14-day quarantine of Americans who in the last two weeks have visited Hubei province in China, where the city of Wuhan, the center of the outbreak, is located. The Trump administration is also instructing Americans returning to the U.S. to undergo a two-week self quarantine if they have been in other parts of mainland China in the past two weeks.

However, Adalja said he’s not sure containment efforts will work, since it’s a respiratory virus that’s already in more than 20 countries. “That really argues against containment.”

Dr. Corey Hebert, assistant professor at both Louisiana State and Tulane universities, told CNBC earlier Tuesday that in order to help prevent the virus, people should wash their hands with hot water and soap, get a flu shot, avoid touching their face and wipe areas around them when travelling.


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CRIMINAL CAPITALISM

Federal Reserve bars former Goldman Sachs executive for role in 1MDB scandal

PRIMITIVE ACCUMULATION OF CAPITAL

WASHINGTON (Reuters) - The U.S. Federal Reserve said on Tuesday that it permanently barred a former Goldman Sachs Group Inc (GS.N) executive from the banking industry over his role in Malaysia’s multi-billion-dollar 1MDB corruption scandal.

Andrea Vella, who was co-head of Goldman’s Asia investment bank in 2012 and 2013, failed to escalate information he had about Malaysian financier Low Taek Jho’s involvement in three bond offerings that Goldman underwrote for Malaysia’s sovereign wealth fund, the regulator said.

Malaysian and U.S. authorities have charged Low in connection with the theft of billions of dollars from 1MDB, which was originally set up by former Malaysia Prime Minister Najib Razak to fund infrastructure projects.

The Federal Reserve said that Vella did not flag Low’s involvement despite knowing that Low was a “person of known concern” to Goldman Sachs.

“Vella was responsible for providing full and accurate information to (Goldman’s) committees reviewing the complex financing transactions and appropriately supervising financing personnel working on the transactions,” according to a statement released by the Federal Reserve.

Vella could not immediately be reached for comment. According to the statement from the Federal Reserve, Vella consented to the bar without admitting or denying any of the allegations made by the regulator.

A spokeswoman for Goldman Sachs confirmed that Vella had left the firm in recent days after being on leave since October 2018.

The U.S. Justice Department says that $4.5 billion was misappropriated by high-level 1MDB fund officials and their associates between 2009 and 2014.

Vella managed two former Goldman Sachs bankers, Timothy Leissner and Roger Ng, who were both indicted by U.S. prosecutors in November 2018 on charges related to their roles in securing Goldman as the underwriter for the three 1MDB bond offerings.

Leissner pleaded guilty to conspiracy to launder money and conspiracy to violate the Foreign Corrupt Practices Act, and agreed to forfeit $43.7 million. Ng pleaded not guilty to charges in May, and his case is currently pending in federal court in Brooklyn.



According to the U.S. Justice Department, Goldman earned $600 million in fees for its work with 1MDB. Leissner, Ng and others received large bonuses in connection with that revenue.

Goldman is in ongoing discussions with U.S. and Malaysian authorities over their investigations into what the bank knew about the transactions at the time.