Tag: Evil

Because ……… Of Course They Are

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Have you heard the one about Facebook showing ads for military gear next to posts calling for an insurrection?

Nope, this is not a joke. 

Zuckerberg’s Horror is actually doing this.

The employees have flagged this since the lynch mob stormed the Capitol, and Facebook has done ……… Nothing:

Facebook has been running ads for body armor, gun holsters, and other military equipment next to content promoting election misinformation and news about the attempted coup at the US Capitol, despite internal warnings from concerned employees.

In the aftermath of an attempted insurrection by President Donald Trump’s supporters last week at the US Capitol building, Facebook has served up ads for defense products to accounts that follow extremist content, according to the Tech Transparency Project, a nonprofit watchdog group. Those ads — which include New Year’s specials for specialized body armor plates, rifle enhancements, and shooting targets — were all delivered to a TTP Facebook account used to monitor right-wing content that could incite violence.

Beginning last summer, the Mark Zuckerberg–led company banned pages, groups, and accounts belonging to US-based militant groups, “boogaloo” extremists, and those associated with the QAnon mass delusion. But members of those movements quickly found ways around the company’s policies by renaming their pages or using code names. They continue to proliferate, organize, and advertise on the social network.

These ads for tactical gear, which were flagged internally by employees as potentially problematic, show Facebook has been profiting from content that amplifies political and cultural discord in the US.

In related news, water is wet.

I don’t know how you regulate this sort of crap, but if there is a potential to profit from extremism, Facebook will be there.

Thoughts and Prayers

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In a transparent attempt to leave the jurisdiction of the great state of New York, the National Rifle Association has declared bankruptcy, and announced its intention to move to Texas. 

That is a horrible thing to do to Texas: (And I want to give Texas back to Mexico)

Seeking an end-run around an investigation by the New York attorney general, the National Rifle Association said Friday that it was declaring bankruptcy and would reincorporate in Texas. The gun group was set up in New York after the Civil War.

The group’s effort to circumvent New York’s legal jurisdiction raised immediate questions from Letitia James, the New York attorney general and a Democrat, who is seeking to use her regulatory authority to dissolve the N.R.A. She has been conducting an investigation into corruption at the gun group since 2019.

“The N.R.A.’s claimed financial status has finally met its moral status: bankrupt,” Ms. James said in a statement Friday. “While we review this filing, we will not allow the N.R.A. to use this or any other tactic to evade accountability and my office’s oversight.”

………

Typically, nonprofit groups that are chartered in New York and under investigation are prohibited from relocating their assets during an inquiry; in recent years, the attorney general’s office prevented the Trump Foundation from closing before it had reached the conclusion of an investigation into that organization.

The bankruptcy filing is likely to halt legal proceedings in the attorney general’s case while the matter is litigated in bankruptcy court.

………

The N.R.A. and a subsidiary filed Chapter 11 petitions in the United States Bankruptcy Court in Dallas. It reported between $100 million and $500 million in assets and the same amount in liabilities, with aggregate non-contingent liquidated debts, excluding those owed to insiders or affiliates, of less than $2,725,625.

………

The N.R.A. has weathered years of revelations about its spending and oversight practices, including hundreds of thousands of dollars spent on Mr. LaPierre’s Zegna suits and far-flung travel to places like the Bahamas, Palm Beach, Reno and Italy’s Lake Como. The group even once explored buying a $6 million mansion in a Dallas-area gated community for his use. Last August, Ms. James, whose office has jurisdiction over New York charities, sued the N.R.A., seeking its closure along with tens of millions of dollars in restitution from Mr. LaPierre and three other executives.

………

The N.R.A. almost immediately filed suit in federal lawsuit against Ms. James’s office, claiming her action was politically motivated and violated the organization’s First Amendment rights. But the group conceded in recent tax filings that Mr. LaPierre and other executives had received hundreds of thousands of dollars’ worth of improper benefits from the group, which were reimbursed.

“The N.R.A. cannot be allowed to declare bankruptcy to try to escape potential criminal and civil accountability in New York,” said Kris Brown, president of the Brady Campaign, a gun control group. “The N.R.A. can run, but they can’t hide, and their days are numbered. No organization is above the law.”

So one would hope.

Remember when we made bankruptcy tougher for ordinary people in the early 2000s because getting cancer is no excuse?

Maybe we should make bankruptcies tougher for corporations, hedge funds, derivatives and charities as well. 

They seem to be the ones abusing the code.

Yet Another Impeachable Offense

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In the sort of thing that you know woule not happen without Trump’s specific authorization, the White House liaison to the Department of Justice Requested compromising information against Trump rape accuser E Jean Carroll. 

This is illegal as hell:

The White House liaison to the Department of Justice (DoJ), Heidi Stirrup, sought out derogatory information late last year from a senior justice department official regarding a woman who alleges she was raped by Donald Trump, according to the person from whom Stirrup directly sought the information.

The revelation raises the prospect that allies of the US president were directly pressing the justice department to try to dig up potentially damaging information on a woman who had accused Trump of sexually attacking her.

E Jean Carroll, a journalist and advice columnist, sued Trump in November 2019, alleging he had defamed her when he denied her account of having been raped by him. Carroll alleges Trump sexually assaulted her in a dressing room in Bergdorf Goodman, a high-end Manhattan department store, in either late 1995 or early 1996.

………

Stirrup apparently believed the justice department had information that might aid the president’s legal defense in the suit. The attorney who Stirrup sought information from regarding Carroll said that Stirrup approached them not long after a judge had ruled the justice department could not take over Trump’s defense.

Stirrup asked if the department had uncovered any derogatory information about Carroll that they might share with her or the president’s private counsel. Stirrup also suggested that she could serve as a conduit between the department and individuals close to the president or his private legal team.

Stirrup also asked the official whether the justice department had any information that Carroll or anyone on her legal team had links with the Democratic party or partisan activists, who might have put her up to falsely accusing the president.

Just in case you are wondering, it is NOT Ok for the White house to demand that the Department of Justice do opposition research on someone who has filed a private lawsuit against the President.

The DoJ banned Stirrup from the building after this, which, considering the fact that William Barr was Trump “Fluffer in Chief” at the time, indicates just how far beyond the pale this request was.

This needs to be investigated and someone needs to face consequences for this act.

Talk About Burying the Lede, Insurrection Edition

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In an otherwise anodyne story about lawmakers impressions during the assault on the Capitol, this little gem is buryed about ⅔ of the way down:

As people rushed out of other buildings on the Capitol grounds, staffers in [Representative Ayanna] Pressley’s office barricaded the entrance with furniture and water jugs that had piled up during the pandemic. [Pressley’s Chief of Staff Sarah] Groh pulled out gas masks and looked for the special panic buttons in the office.

“Every panic button in my office had been torn out — the whole unit,” she said, though they could come up with no rationale as to why. She had used them before and hadn’t switched offices since then. As they were escorted to several different secure locations, Groh and Pressley and her husband tried to remain calm and vigilant — not only of rioters but of officers they did not know or trust, she said.

This was not an accident.

This operation prepared weeks in advance, and there were people on the inside. 

More evidence of this is the fact that Congressmen led what appears to be “Reconnaissance Tours” the day before the riots.

It was alarming enough that people complained to the House Sergeant at Arms that day:

More than 30 House Democrats are demanding information from Capitol security officials about “suspicious” visitors at the U.S. Capitol on Jan. 5 — a day before violent insurrectionists swarmed the building — that would only have been permitted entry by a member of Congress or a staffer.

“Many of the Members who signed this letter … witnessed an extremely high number of outside groups in the complex on Tuesday, January 5,” wrote the lawmakers, led by Rep. Mikie Sherrill (D-N.J.), in a letter to the acting House and Senate sergeants-at-arms, as well as the acting head of the Capitol Police.

The lawmakers, some of who “have served in the military and are trained to recognize suspicious activity,” noted that Capitol tours have been prohibited since March as a result of the Covid-19 pandemic and they said the tours were so unusual that they were reported to security on Jan. 5, ahead of the following day’s violence.

Finally, the orginizer of the “Stop the Steal” ralley, Ali Alexander, was caught ont ape admitting that he coordinated the demonstration with 3 Congressmen, Andy Biggs (R-AZ), Mo Brooks (R-AL) and Paul A. Gosar (R-AZ):

Weeks before a mob of President Trump’s supporters stormed the U.S. Capitol, right-wing activist Ali Alexander told his followers he was planning something big for Jan. 6.

Alexander, who organized the “Stop the Steal” movement, said he hatched the plan — coinciding with Congress’s vote to certify the electoral college votes — alongside three GOP lawmakers: Reps. Andy Biggs (Ariz.), Mo Brooks (Ala.) and Paul A. Gosar (Ariz.), all hard-line Trump supporters.

“We four schemed up of putting maximum pressure on Congress while they were voting,” Alexander said in a since-deleted video on Periscope highlighted by the Project on Government Oversight, an investigative nonprofit. The plan, he said, was to “change the hearts and the minds of Republicans who were in that body, hearing our loud roar from outside.”

This is beginning to sound like a vast right-wing conspiracy.

If it sounds outlandish, remember that Ronald Reagan, George H.W. Bush, and William Casey arranged for the continued detention of the Iranian hostages in 1980 in order to improve Reagan’s election chances.

Fomenting an insurrection, and attempting to incapacitate Democratic legislators is really not much of a step beyond the October Surprise.

Michigan brings two charges against former governor for Flint case

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Well, I was wrong yesterday when I predicted that former Governor of Michigan Rick Snyder would be charged with obstruction of justice. 

I was wrong.

Snyder was hit with two counts of “Willful Neglect of Duty,” a misdemeanor.

Here is the statute, § 750.478:

When any duty is or shall be enjoined by law upon any public officer, or upon any person holding any public trust or employment, every willful neglect to perform such duty, where no special provision shall have been made for the punishment of such delinquency, constitutes a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $1,000.00.

This case is just plain weird, with indictments for felonies, a dismissal of those charges, and now this. 

I do not know how this will end, but I expect to be disappointed.

This is Morally Bankrupt

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James Clyburn (D-SC) is calling for any impeachment trial of Donald Trump to be delayed by 100 days so that the Biden administration can get off to a quick start.

I get that the House Majority Whip wants to get down to business as quickly as possible once Biden is sworn in, but what he is saying is that incitement and conspiracy to conduct an insurrection against the US Government, and Congress in particular, is “Just Politics,” and so it can wait for Biden to assemble permanent staff at the White House and present some legislative initiatives.

This is wrong.

This was an attempt to overthrow an election, and by extension, an attempt to overthrow the government of the United States of America.

Judgement, and consequences, must be administered without delay.

Relegating this to a political ploy is worse than a crime, it is a mistake.

About Fucking Time

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Rick Snyder, former governor of Michigan, as well as his senior staff, will be criminally charged over his role in the poisoning of the water in Flint. 

The specifics of the charges are not known at this time, so my guess is that we are looking at an obstruction of justice and the like:

Former Michigan governor Rick Snyder, his health director and other ex-officials have been told they’re being charged after a new investigation of the Flint water scandal, which devastated the majority Black city with lead-contaminated water and was blamed for a deadly outbreak of Legionnaires’ disease in 2014-15, the Associated Press has learned.

Two people with knowledge of the planned prosecution told the AP on Tuesday that the attorney general’s office has informed defense lawyers about indictments in Flint and told them to expect initial court appearances soon. They spoke to the AP on condition of anonymity because they were not authorized to speak publicly.

The AP could not determine the nature of the charges against Snyder, former health department director Nick Lyon and others who were in the Snyder administration. The attorney general’s office declined to comment on details of the ongoing investigation. Spokeswoman Courtney Covington Watkins said investigators were “working diligently” and “will share more as soon as we’re in a position to do so”.

Snyder’s attorney didn’t return calls seeking comment.

I have no direct knowledge as to the course of the investigations, or the prosecutions, but if Snyder were charged with something like taking bribes over the water pipeline, or some other explicit corruption, I think that other people would have been prosecuted, and have cut deals, before Snyder was charged.

Susan Collins is Peewee Herman

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I Think They’re Iranians

In an interview with the Bangor Daily News, Susan Collins said that when the terrorist attacked the Capitol on Wednesday, she thought that it was the Iranians, because ……… because ……… because ……… because ……… OK, I have no clue as to why she would say this for a non-nefarious reason.

My guess though, is that this is, much like it was for Peewee Herman in Cheech and Chong’s Next Movie, (I am not suggesting that she was caught masturbating in a porno theater) it was a ploy to manipulate the situation, because Susan Collins is a profoundly evil person who lies like the rest of us breath:

………

The proceedings began calmly enough. Around 1 p.m., we senators proceeded to the House for a joint session. Soon there was an objection, baseless in my view, to accepting the electoral count from Arizona. We returned to the Senate to begin our two-hour debate with senators, beginning a series of 5-minute speeches. Sen. James Lankford had just started speaking when, all of a sudden, the Capitol Police and staff from the Sergeant at Arms burst into the chamber and removed Vice President Mike Pence who was presiding. Shortly thereafter, the two Senate leaders were also rushed away.

My first thought was that the Iranians had followed through on their threat to strike the Capitol, but a police officer took over the podium and explained that violent demonstrators had breached the entire perimeter of the Capitol and were inside. Several of us pointed out that the doors to the press gallery were unlocked right above us. That tells you how overwhelmed and unprepared the Capitol Police were, although many, many of them were very courageous.

First, while the Iranians have said many intemperate things in response to our assassinating the head of the Republican Guard, the Iranians have never suggested that they would hit the Congress, and Collins would know this, being on the Intelligence Committee.

My more detailed guess is that Collins knows that here political future is tied to former Maine Governor  Paul “The Human Bowling Jacket” LePage’s antediluvian wing of the Republican party, and she so is desperate to avoid saying anything about a potential impeachment.

She is a toxic mix of entitlement, hypocrisy, and cowardice, and somehow or other, the best efforts of the Democratic Party establishment (There is no Democratic Party establishment) could not even manage to make the election close this year.

Need a Hobby?

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Did you know that there is a group of left-wing analysists dedicated to naming and shaming Nazis, Fascists, white supremacists, and other extremists:

Before a mob of Trump supporters staged a riot in the U.S. Capitol and thousands of Americans became amateur detectives working to identify the culprits, a loosely connected group of seasoned online sleuths were ringing alarm bells and picking off extremists online, one by one.

For a nationwide network of left-wing activists who seek out and publish the identities of those they believe to be violent “fascists,” some investigations can take months, years even.

Or it can take 10 minutes.

If you need to get in touch with these folks, you can go to the Left Coast Right Watch and volunteer.

Threat of the Day

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Hire any of Trump’s fellow fabulists above, and Forbes will assume that everything your company or firm talks about is a lie. We’re going to scrutinize, double-check, investigate with the same skepticism we’d approach a Trump tweet. Want to ensure the world’s biggest business media brand approaches you as a potential funnel of disinformation? Then hire away.

—Randall LaneForbes, Chief Content Officer and Editor at Forbes Magazine

He is talking about Trump’s PR flacks, Sean Spicer, Kellyanne Conway, Sarah Huckabee Sanders, Stephanie Grisham, and Kayleigh McEnany.

I would add other personnel who served as as part of the axis of lying, Elaine Chao, Steve Mnuchin, Betsy Devos, Mike Pompeo, etc. to people who should not be allowed to return to polite to society, much less cash in.

Why the Resignations?

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Call me a cynic, but I think that the reason that so many Trump administration cabinet member have chosen to resign is that they don’t want to be on the record making a decision about removing Donald Trump under the provisions of the 25th Amendment of the Constitution.

They think that participating in that would be disastrous for their future careers.

I know that you are probably thinking, “Future careers, surely you jest,” but let me show you Richard M. Nixon’s “last” press conference, which he gave in 1962:


Much like a bad penny, these folks will be back.

Breaking Things on the Way Out

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The Trump administration just authorized Tennessee to have its Medicaid funded through block grants.

Block grants is how Bill Clinton’s evil Welfare “Reform” worked, and the states took the money and spent it on things like romance lessions. 

The Trump administration wants to take a sledge hammer to Medicaid, and indirectly Obamacare, because they can.

What ……… The ……… Fuck?

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When I Referred to Republicans


as Ravening Hords, It Was


Supposed to be a Metaphor

Trump supporting rioters stormed the Capitol in an attempt to stop the certification of the electoral college votes.

There has been at least one death so far, a woman died from gunshot wounds.

It is unclear whether the shots came from the Capitol Police or from the invading MAGAts. 

Members of Congress were spirited away to undisclosed safe locations as the rioters streamed into the building.

In what is a remarkable display of assertiveness, (for him, at least) Chuck “I Wish it Were Amy” Schumer described the rioters as domestic terrorists, while Mitt Rmoney described the events as an insurrection.

Of particular concern to me is the fact that the Capitol an DC police appear to have been unreasonably solicitous to the rioters:

Many Americans and people around the world watched in horror as a mob of Donald Trump supporters rushed the US Capitol in Washington DC on Wednesday afternoon, wreaking fear and chaos with seemingly little resistance from police on Capitol Hill.

The events inside the building quickly unfolded on social media as tweets poured out from concerned members of Congress and images of the insurgents inside the Capitol went viral.

Capitol during Capitol
BLM protests today pic.twitter.com/5NAcaIUsCq

— Ricky Rocksteady (@RocksteadyRicky) January 6, 2021

Only This Was Intentional

………

People were quick to point out the hypocrisy of law enforcement letting the mob, which was overwhelmingly White, take over the Capitol building with little hindrance.

“Always interesting to see how white protestors can encounter so little resistance and breach the capitol with the vice-president there, while black protestors would be lying dead in front of the capitol building right now,” wrote the writer Roxane Gay.

“White privilege is on display like never before in the US Capitol,” tweeted the author and scholar Ibram X Kendi.

Others pointed to the stark contrast between law enforcement’s response to the mob at the Capitol versus their treatment of protesters against police brutality.

“Peaceful protestors got pepper sprayed so Trump could hold a Bible upside for a photo in front of a church,” tweeted Shannon Sharper, a former American football player, referring to an incident that took place over the summerin the midst of protests following the police killing of George Floyd.

<Claude Raines>I am shocked, shocked to find that police are pro-fascist racists.</Claude Rains>

In an attempt to dodge the “Trump Stink” a number of White House staffers have resigned following the violence.

If there is any justice in the world, it will not help them.  I hope that the stink clings to them for the rest of their days.

As to where we are now, a 6pm — 6am curfew was ordered, and the National Guard was sent out on the streets, and it appears to be quiet now, with Congress expected to return shortly to vote.

(This post has been updated)

Today in Self Immolation

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Right wing attorney Cleta Mitchell, who sat in on Donald Trump’s now infamous call to the Georgia Secretary of State, offering advice/self incrimination, has been fired by the white shoe law firm that hired her.

It’s reported as a resignation, but it’s a firing:

Republican lawyer Cleta Mitchell, who advised President Trump during his Saturday phone call with Georgia’s secretary of state in an effort to overturn the election, resigned on Tuesday as a partner in the Washington office of the law firm Foley & Lardner.

Mitchell’s resignation came after the law firm on Monday issued a statement saying it was “concerned by” her role in the call. The firm noted that as a matter of policy, its attorneys do not represent “any parties seeking to contest the results of the election.”

The Washington Post on Sunday published audio and a transcript of the hour-long call in which Trump pressured Georgia Secretary of State Brad Raffensperger to overturn the election results. During the call, Mitchell complained that she had not been given access to certain information from Raffensperger’s office, and Trump relied on her to an extraordinary degree during the call.

I cannot say that I am in any upset at Trump dead-enders losing their jobs.

I’m sure that Amazon is hiring. 

Karma, neh?

The Pigs Walk

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The Kenosha County District Attorney has announced that no charges will be filed against the officers that shot Jacob Blake. 

The prosecutor is claiming that it will be too tough to convince a jury.

Another corrupt prosecutor covering up for the police:

The top prosecutor in Kenosha, Wis., declined to bring charges against the police officer who shot and gravely wounded Jacob Blake outside an apartment building in August, an episode that sparked protests and rioting and made the city an instant flash point in a summer of unrest that began with the killing of George Floyd.

The decision not to file charges against the officer, Rusten Sheskey, was announced on Tuesday afternoon by Michael Graveley, the Kenosha County district attorney. He said that investigators had reviewed 40 hours of video and hundreds of pages of police reports before making the decision.

The prosecutor said a case against the officer would have been very hard to prove, in part because it would be difficult to overcome an argument that the officer was protecting himself. He said Mr. Blake had admitted to holding a knife — even describing switching it from one hand to another as he moved to open a car door — and that statements from officers and other witnesses indicated that Mr. Blake had turned toward an officer with the knife immediately before he was shot.

………

“This decision does nothing but shore up that message that Black people are not safe in the United States of America in 2021,” Corey Prince, chair of the criminal justice committee of the N.A.A.C.P. in neighboring Racine, said Tuesday. “They continue to devalue Black lives, Black humanity, Black freedom, even when we’re with our kids.”

………

The case incited emotions in large part because of the gruesome scene captured by a cellphone video: A Black man being shot in the back multiple times as he moved away from the officer. Even those arguing that the officers acted appropriately conceded that law enforcement needed to figure out how to reach better outcomes in such situations.

They shot him in the back, but the prosecutor cannot be bothered to even try, because it’s just a Black man, and notwithstanding the protests, Black lives DON’T matter.

Ha Ha!

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Now that the scandal-plagued Jerry Fallwell, Jr. has been driven from his post as dictator of Liberty “University”, the students are trying to remove one of his more pernicious legacies, his blatantly political, Trump felching, “think” tank, the Falkirk Center for Faith and Liberty.

Falwell, who does not have a degree in divinity, and Charlie Kirk, ditto, founded the organization which worships Trump first, and Jesus second, and a petition from the students at the “Christian” “University” is asking for it to be shut down, or at least removed from the campus:

Hundreds of former and current Liberty University students are calling on the evangelical Christian school to shutter the Falkirk Center for Faith and Liberty, a campus “think tank” known for promoting conservative political causes.

More than 450 students and recent graduates have signed a student-led petition demanding the university-funded center be dissolved, according to Matt Morris, a Liberty freshman who created the online petition last month.

“The Falkirk Center constantly preaches the message that the church needs to defend Donald Trump at all costs and rescue western civilization,” the petition reads. “Falkirk is wrong. Associating any politician or political movement with Christianity bastardizes the Gospel of Jesus Christ.”

………

………

Falwell, who stepped down as president and chancellor of Liberty in August following a string of personal scandals, was a prominent early supporter of Trump’s 2016 campaign. Trump rewarded Falwell’s loyalty by delivering a commencement address at the university in 2017.

The Falkirk Center, which unlike other research institutions has published no academic studies, openly waded into the 2020 presidential election and other races this campaign season to bolster conservative candidates and causes.

………

The center’s partisan nature has prompted dozens of former faculty members, current students and alumni to publicly speak out against the institution, including members of Liberty’s student leadership.

I believe that if this were to be set to a song, it would be “Ding, Dong, the Witch is Dead.”

Yeah, This Is a Big F%$#Ing Deal

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It appears that over the past few days, Donald Trump called the Georgia Secretary of State, Brad Raffensperger, and threatened him in an attempt to get him to manufacture 11,780 votes so that he could claim to have won the state.

It’s a bit late to impeach the bastard, but if this is not criminal, it should be:

The Washington Post obtained a recording of the conversation in which Trump alternately berated Raffensperger, tried to flatter him, begged him to act and threatened him with vague criminal consequences if the secretary of state refused to pursue his false claims, at one point warning that Raffensperger was taking “a big risk.”

Throughout the call, Raffensperger and his office’s general counsel rejected Trump’s assertions, explaining that the president is relying on debunked conspiracy theories and that President-elect Joe Biden’s 11,779-vote victory in Georgia was fair and accurate.

Trump dismissed their arguments.

“The people of Georgia are angry, the people of the country are angry,” he said. “And there’s nothing wrong with saying, you know, that you’ve recalculated.”

This guy can’t be allowed to just walk away from this.

We’ve already over one hundred Congressmen and a dozen Senators signing onto this.

It’s a cancer on the Republic.

Good Point

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Matt Stoller makes a very good point, that the penetration of “premier” cybersecurity firm SolarWinds by hackers,* was a direct consequence of the private equity looting ethos.

They did not play close attention to security (Passwords from movies, seriously), our-sourced work into Eastern Europe, where the FSB† could recruit operatives in a day trip.

Security, you see, is not profitable, even if you are a cyber security firm:

Roughly a month ago, the premier cybersecurity firm FireEye warned authorities that it had been penetrated by Russian hackers, who made off with critical tools it used to secure the facilities of corporations and governments around the world.

The victims are the most important institutional power centers in America, from the FBI to the Department of Treasury to the Department of Commerce, as well as private sector giants Cisco Systems, Intel, Nvidia, accounting giant Deloitte, California hospitals, and thousands of others. As more information comes out about what happened, the situation looks worse and worse. Russians got access to Microsoft’s source code and into the Federal agency overseeing America’s nuclear stockpile. They may have inserted code into the American electrical grid, or acquired sensitive tax information or important technical and political secrets.

………

And that makes this hack quite scary, even if we don’t see the effect right now. Mark Warner, one of the smarter Democratic Senators and the top Democrat on the Intelligence Committee, said “This is looking much, much worse than I first feared,” also noting “The size of it keeps expanding.” Political leaders are considering reprisals against Russia, though it’s likely they will not engage in much retaliation we can see on the surface. It’s the biggest hack since 2016, when an unidentified group stole the National Security Agency’s “crown jewels” spy tools. It is, as Wired put it, a “historic mess.”

……….

The most interesting part of the cybersecurity problem is that it isn’t purely about government capacity at all; private sector corporations maintain critical infrastructure that is in the “battle space.” Private firms like Microsoft are being heavily scrutinized; I had one guest-post from last January on why the firm doesn’t manage its security problems particularly well, and another on how it is using its market power to monopolize the cybersecurity market with subpar products. And yet these companies have no actual public obligations, or at least, nothing formal. They are for-profit entities with little liability for the choices they make that might impose costs onto others.

………

All of which brings me to what I think is the most compelling part of this story. The point of entry for this major hack was not Microsoft, but a private equity-owned IT software firm called SolarWinds. This company’s products are dominant in their niche; 425 out of the Fortune 500 use SolarWinds. As Reuters reported about the last investor call in October, the CEO told analysts that “there was not a database or an IT deployment model out there to which [they] did not provide some level of monitoring or management.” While there is competition in this market, SolarWinds does have market power. IT systems are hard to migrate from, and this lock-in effect means that customers will tolerate price hikes or quality degradation rather than change providers. And it does have a large market share; as the CEO put it, “We manage everyone’s network gear.”

SolarWinds sells a network management package called Orion, and it was through Orion that the Russians invaded these systems, putting malware into updates that the company sent to clients. Now, Russian hackers are extremely sophisticated sleuths, but it didn’t take a genius to hack this company. It’s not just that criminals traded information about how to hack SolarWinds systems; one security researcher alerted the company last year that “anyone could access SolarWinds’ update server by using the password “solarwinds123.’”

Using passwords ripped form the movie Spaceballs is one thing, but it appears that lax security practice at the company was common, systemic, and longstanding. The company puts its engineering in the hands of cheaper Eastern Europe coders, where it’s easier for Russian engineers to penetrate their product development. SolarWinds didn’t bother to hire a senior official to focus on security until 2017, and then only after it was forced to do so by European regulations. Even then, SolarWinds CEO, Kevin Thompson, ignored the risk. As the New York Times noted, one security “adviser at SolarWinds, said he warned management that year that unless it took a more proactive approach to its internal security, a cybersecurity episode would be “catastrophic.” The executive in charge of security quit in frustration. Even after the hack, the company continued screwing up; SolarWinds didn’t even stop offering compromised software for several days after it was discovered.

………

And yet, not every software firm operates like SolarWinds. Most seek to make money, but few do so with such a combination of malevolence, greed, and idiocy. What makes SolarWinds different? The answer is the specific financial model that has invaded the software industry over the last fifteen years, a particularly virulent strain of recklessness typically called private equity.

………

In October, the Wall Street Journal profiled the man who owns SolarWinds, a Puerto Rican-born billionaire named Orlando Bravo of Thoma Bravo partners. Bravo’s PR game is solid; he was photographed beautifully, a slightly greying fit man with a blue shirt and off-white rugged pants in front of modern art, a giant vase and fireplace in the background of what is obviously a fantastically expensive apartment. Though it was mostly a puff piece of a silver fox billionaire, the article did describe Bravo’s business model.

………

As I put it at the time, Bravo’s business model is to buy niche software companies, combine them with competitors, offshore work, cut any cost he can, and raise prices. The investment thesis is clear: power. Software companies have immense pricing power over their customers, which means they can raise prices to locked-in customers, or degrade quality (which is the same thing in terms of the economics of the firm). As Robert Smith, one of his competitors in the software PE game, put it, “Software contracts are better than first-lien debt. You realize a company will not pay the interest payment on their first lien until after they pay their software maintenance or subscription fee. We get paid our money first. Who has the better credit? He can’t run his business without our software.”

………

Did this acquisition spree and corporate strategy work? Well that depends on your point of view; it certainly increased accounting profits. From a different perspective, however, the answer is no. Accounting profits masked that the corporate strategy was shifting risk such that the firm enabled a hack of the FBI and U.S. nuclear facilities. And from the user and employee perspective, the strategy was also problematic. It’s a little hard to tell, but if you look at software feedback comment forums, you’ll find a good number of IT pros dislike SolarWinds, seeing the firm as a financial project based on cobbling together random products from an endless set of acquisitions. (If you are at SolarWinds or another Thoma Bravo company, or use their products, send me a note on your experiences.)

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It’s not clear to me that Bravo is liable for any of the damage that he caused, but he did make one mistake. Bravo got caught engaging in what very much looks like insider trading surrounding the hack. Here’s the Financial Times on what happened:

Private equity investors sold a $315m stake in SolarWinds to one of their own longstanding financial backers shortly before the US issued an emergency warning over a “nation-state” hack of one of the software company’s products.

The transaction reduced the exposure of Silver Lake and Thoma Bravo to the stricken software company days before its share price fell as vulnerabilities were discovered in a product that is used by multiple federal agencies and almost all Fortune 500 companies.

But the trade could prove embarrassing for Menlo Park-based Silver Lake and its rival Thoma Bravo, which rank among the biggest technology-focused private equity firms in the world.

………

In this case, however, possible insider trading really isn’t the problem. Though I hate the phrase, the real scandal isn’t what’s illegal, it’s what is legal. Bravo degraded the quality of software, which usually just means that people have to deal with stuff that doesn’t work very well, but in this case enabled a weird increase in geopolitical tensions and an espionage victory for a foreign adversary. It’s yet another example of what national security specialist Lucas Kunce notes is the mass transformation of other people’s risk into profit, all to the detriment of American society.

………

There are many ways to see this massive hack. It’s a geopolitical problem, a question of cybersecurity policy, and a legally ambiguous aggressive act by a foreign power. But in some ways it’s not that complex; the problem isn’t that Russians are good at hacking and U.S. defenses are weak, it’s that financiers in America make more money by sabotaging key infrastructure than by building it.

And they are celebrated for it. If Western nations had coherent political systems, the men responsible for this mess would be dragged in front of legislative committees and grilled over the business practices putting all of us at risk. Instead, five days ago, Pitchbook just gave out their Private Equity Awards, and named their “dealmaker of the year.”

Yes, it was Orlando Bravo.

We need to change the laws to hold these guys accountable.

As it currently stands, they borrow money, and then loot the companies, and then retreat behind the bulwark of the bankruptcy courts to avoid any responsibility for what they have done.

*According to “Knowledgeable Sources”, Russia, but no one is willing to go on the record, so YMMV.
†Again, no one is willing to go on the record as to whether this was the FSB, or the GRU, or maybe it was the fault of those damn Eskimos.‡
‡The line is from Judgement at Nuremberg. It’s a great movie. Spencer Tracy, Marlene Dietrich, Burt Lancaster, Richard Widmark, Maximilian Schell, Judy Garland, Montgomery Clift, and a very young William Shatner. (Widmark says the line about the Eskimos.)

Worst ……… Idea Ever

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An employee of the Cato Institute who was fired for planting articles on behalf of Jack Abramoff for money, (And was later rehired) is now suggesting that the best way for America to deal with China’s increasing power is to encourage our allies to develop their own nuclear arsenals.

This is way worse than invading Iraq, drafting Heath Shuler, or the New Coke:

Nobody envies U.S. President-elect Joe Biden at the moment. The problems he faces seem insurmountable.

China likely will be the administration’s most serious foreign challenge. The United States is wealthier and more powerful, but remains committed—overcommitted, in fact—around the globe. The world’s finest—and most expensive—military goes only so far.

………

Can the United States defend Taiwan, destroy Chinese naval outposts on artificial islands, keep sea lanes open, protect territories claimed by Japan and the Philippines, and so on? Beijing is focused on developing Anti Access/Area Denial capabilities: It costs much less for China to build missiles and submarines capable of sinking aircraft carriers than for the United States to construct, staff, and maintain the latter. The Pentagon is concocting countervailing strategies, but they will be neither cheap nor risk-free. How much can Americans, facing manifold, expensive challenges at home and elsewhere abroad, afford to devote to containing the PRC essentially within its own borders?

………

It is difficult to make a credible case for extended deterrence even for Japan. Would any American president really trade Los Angeles for Tokyo? The promise is made on the assumption that the bluff will never be called: Advocates simply assume perfect deterrence. However, history is littered with similar military and political presumptions, later shattered with catastrophic consequences.

What to do? There is one way to square the circle. The Biden administration should reconsider reflexive U.S. opposition to “friendly proliferation.” Ironically, current policy ensures that nuclear weapons are held by only the worst Asian states—authoritarian and revisionist China and Russia, Islamist and unstable Pakistan, illiberal and Hindu nationalist India, and totalitarian and threatening North Korea. Against all these, Washington is supposed to defend Japan and South Korea, certainly, the Philippines and Australia, possibly, and Taiwan, conceivably. That is dangerous for everyone, especially the United States.

Reversing a policy supported by neoconservative nation-builders, unilateral nationalists, and liberal internationalists would not be easy. The change would be dramatic, and not without risk, whether from potential terrorism, nuclear accidents, or geopolitical provocations. Although the nuclear age has been surprisingly stable, proliferation necessarily creates additional risks for conflict and leakage. Nevertheless, the existence of nuclear weapons probably helped contain conventional conflict, especially between the United States and the Soviet Union. Even more, nations are convinced that modest arsenals keep rival states at bay, which is why countries as disparate as Israel, North Korea, and India have developed arsenals at great cost.

This is completely bonkers. 

This makes Dick Cheney look like Mahatma Ghandi.

To quote Terry Pratchett:

If complete and utter chaos was lightning, then he’d be the sort to stand on a hilltop in a thunderstorm wearing wet copper armour and shouting ‘All gods are bastards!’