Heads We Win, Tails You Lose: The Fascist Philosophy Behind Private Equity’s Leveraged Buyout of Everything

It’s been the same head­line for months now:
* April of 2020: Amer­i­can bil­lion­aires have got­ten $280 bil­lion rich­er since the start of the COVID-19 pan­dem­ic
* May of 2020: Amer­i­can bil­lion­aires got $434 rich­er dur­ing the pan­dem­ic
* August of 2020: Amer­i­can bil­lion­aires got $637 rich­er dur­ing the pan­dem­ic
* Sep­tem­ber of 2020: U.S. bil­lion­aires got $845 bil­lion rich­er since the start of the pan­dem­ic/Wealth of US bil­lion­aires ris­es by near­ly a third dur­ing pan­dem­ic
* Octo­ber of 2020: US bil­lion­aires saw their net worth rise by almost $1 tril­lion between March and Octo­ber — Jeff Bezos remains the rich­est, a study says.

From near­ly the start of the COVID-19 pan­dem­ic it’s been clear that the pub­lic health dis­as­ter was­n’t a dis­as­ter for every­one, with the wealth­i­est indi­vid­u­als being not only large­ly insu­lat­ed from the eco­nom­ic lock­down but in many cas­es well posi­tioned to prof­it from it. The pan­dem­ic was turn­ing into a giant upward trans­fer of wealth. And as we’re going to see, giant upward trans­fers of wealth are essen­tial­ly what the pri­vate equi­ty indus­try is all about. The rise of ‘sup­ply-side’ eco­nom­ics in the 1980s coin­cid­ed with the rise of pri­vate equi­ty and that’s no coin­ci­dence. The phi­los­o­phy behind the pri­vate equi­ty move­ment is the phi­los­o­phy of sup­ply-side eco­nom­ics. An anti-New Deal phi­los­o­phy, where ruth­less­ness is a virtue, that fueled a 40 year giant fas­cist lever­aged buy­out of soci­ety.

FTR #946 In Your Facebook: A Virtual Panopticon, Part 2

In FTR #718 (record­ed on Inde­pen­dence Day week­end of 2010), we not­ed that the new social medium–Facebook-might very well be the oppo­site of the lib­er­at­ing, empow­er­ing enti­ty many believed it to be.

On the con­trary, we said–it received finan­cial back­ing from the CIA, per­mits unprece­dent­ed gath­er­ing and data­bas­ing of users’ per­son­al infor­ma­tion, and might very well be a “panopticon”–a type of prison in which the interned can nev­er see his or her jail­ers, but their keep­ers can see the interned at all times.

In par­tic­u­lar, we not­ed the promi­nent posi­tion of major Face­book investor Peter Thiel in “Mon­do Zucker­berg.” Of Ger­man (and prob­a­ble I.G. Far­ben) ori­gins, we opined that Thiel was Under­ground Reich. Opposed to democ­ra­cy because he feels it is inim­i­cal to wealth cre­ation and does­n’t believe women should be allowed to vote, Thiel has now emerged as one of the most promi­nent of Don­ald Trump’s sup­port­ers, tran­si­tion team cre­ators and influ­en­tial pol­i­cy wonks.

Where­as we explored the “vir­tu­al panop­ti­con” con­cept of Face­book with a ques­tion mark in 2010, we now feel affir­ma­tive­ly on the issue.

A very impor­tant sto­ry from New York mag­a­zine sets forth Face­book’s role in the just-con­clud­ed elec­tion. ” . . . . Facebook’s size, reach, wealth, and pow­er make it effec­tive­ly the only one that mat­ters. And, boy, does it mat­ter. At the risk of being hyper­bol­ic, I think there are few events over the last decade more sig­nif­i­cant than the social network’s whole­sale acqui­si­tion of the tra­di­tion­al func­tions of news media (not to men­tion the polit­i­cal-par­ty appa­ra­tus). Trump’s ascen­dan­cy is far from the first mate­r­i­al con­se­quence of Facebook’s con­quer­ing inva­sion of our social, cul­tur­al, and polit­i­cal lives, but it’s still a brac­ing reminder of the extent to which the social net­work is able to upend exist­ing struc­ture and trans­form soci­ety — and often not for the bet­ter. . . .

” . . . . Facebook’s enor­mous audi­ence, and the mech­a­nisms of dis­tri­b­u­tion on which the site relies — i.e., the emo­tion­al­ly charged activ­i­ty of shar­ing, and the show-me-more-like-this feed­back loop of the news feed algo­rithm — makes it the only site to sup­port a gen­uine­ly lucra­tive mar­ket in which shady pub­lish­ers arbi­trage traf­fic by entic­ing peo­ple off of Face­book and onto ad-fes­tooned web­sites, using sto­ries that are alter­nate­ly made up, incor­rect, exag­ger­at­ed beyond all rela­tion­ship to truth, or all three. . . .

” . . . . And at the heart of the prob­lem, any­way, is not the moti­va­tions of the hoax­ers but the struc­ture of social media itself. Tens of mil­lions of peo­ple, invig­o­rat­ed by insur­gent out­sider can­di­dates and anger at per­ceived polit­i­cal ene­mies, were served up or shared emo­tion­al­ly charged news sto­ries about the can­di­dates, because Facebook’s sort­ing algo­rithm under­stood from expe­ri­ence that they were seek­ing such sto­ries. Many of those sto­ries were lies, or ‘par­o­dies,’ but their appear­ance and place­ment in a news feed were no dif­fer­ent from those of any pub­lish­er with a com­mit­ment to, you know, not lying. As those peo­ple and their fol­low­ers clicked on, shared, or oth­er­wise engaged with those sto­ries — which they did, because Trump dri­ves engage­ment extreme­ly bigly — they were served up even more of them. The engage­ment-dri­ving feed­back loop reached the heights of Face­book itself, which shared fake news to its front page on more than one occa­sion after fir­ing the small team of edi­to­r­i­al employ­ees tasked with pass­ing news judg­ment. . . .

” . . . . Some­thing like 170 mil­lion peo­ple in North Amer­i­ca use Face­book every day, a num­ber that’s not only sev­er­al orders of mag­ni­tude larg­er than even the most opti­mistic cir­cu­la­tion reck­on­ings of major news out­lets but also about one-and-a-half times as many peo­ple as vot­ed on Tues­day. Forty-four per­cent of all adults in the Unit­ed States say they get news from Face­book . . . ”

Symp­to­matic of Face­book’s fil­ter of what its users see con­cerns the social medi­um’s recent non-cov­er­age of the wom­en’s march:

” . . . . We don’t usu­al­ly post on Pan­do at the week­end, but this is too top­i­cal and too shame­ful to wait until Mon­day. As you cer­tain­ly know, today is the day of the Women’s March on Wash­ing­ton in protest of Don­ald Trump. The main event is in DC, where some­thing close to 500,000 pro­test­ers of all gen­ders and ages have packed the streets — but there are also major protests in Chica­go, New York and around the world. Includ­ing Antarc­ti­ca.

You cer­tain­ly know this because the protest march is the top sto­ry on every major news out­let, and because updates and pho­tos from the event are flood­ing your Twit­ter and Face­book feeds.

And yet, here’s what Facebook’s trend­ing news feed looked like at the height of the march…

And here’s its trend­ing pol­i­tics feed…

Notice any­thing miss­ing?

Like, say, a half mil­lion women? . . .

In case you think I’m see­ing some­thing dif­fer­ent from the rest of the world, be assured I’m not….”

Face­book has changed its algo­rithm, no longer fac­tor­ing in “likes” and oth­er per­son­al pref­er­ences in deter­min­ing its news feed.

This, how­ev­er, does not bode as well as Face­book would like us to believe. Face­book has pro­mot­ed, among oth­ers, Camp­bell Brown, to an impor­tant posi­tion in struc­tur­ing its news feed: ” . . . . Brown has long­stand­ing ties not just to the tra­di­tion­al news media, but also to con­ser­v­a­tive pol­i­tics, although she describes her­self as a polit­i­cal inde­pen­dent. She is a close per­son­al friend of Bet­sy DeVos, the Repub­li­can megadonor who is Don­ald Trump’s nom­i­nee for Edu­ca­tion Sec­re­tary, and is mar­ried to Dan Senor, a for­mer top advi­sor to Mitt Rom­ney who also served as spokesper­son for the Coali­tion Pro­vi­sion­al Author­i­ty in the wake of the 2003 inva­sion of Iraq. . . .

. . . . And along­side her main­stream media expe­ri­ence, Brown is famil­iar with the world of non-tra­di­tion­al news out­lets spring­ing up online. In 2014, she found­ed a non­prof­it news site, The 74, which bills itself as non­par­ti­san but which crit­ics have said func­tions as advo­ca­cy jour­nal­ism, tilt­ed in favor of char­ter schools and against teach­ers’ unions. The site was launched with mon­ey from donors includ­ing the foun­da­tion run by DeVos, Trump’s pro­posed Edu­ca­tion Sec­re­tary. When the nom­i­na­tion was announced, Brown said she would recuse her­self from The 74’s cov­er­age of DeVos. . .”

Brown is joined by Tuck­er Bounds, a for­mer John McCain advis­er and spokesman for the McCain/Palin cam­paign.

Exem­pli­fy­ing the ter­ri­fy­ing pos­si­bil­i­ties of the vir­tu­al panop­ti­con, we exam­ine the nexus of Cam­bridge Ana­lyt­i­ca, its prin­ci­pal investors, Robert and Rebekah Mer­cer and Steve Ban­non, a key mem­ber of the fir­m’s board of direc­tors and a polit­i­cal guru to Rebekah. ” . . . . For sev­er­al years, a data firm even­tu­al­ly hired by the Trump cam­paign, Cam­bridge Ana­lyt­i­ca, has been using Face­book as a tool to build psy­cho­log­i­cal pro­files that rep­re­sent some 230 mil­lion adult Amer­i­cans. A spin­off of a British con­sult­ing com­pa­ny and some­time-defense con­trac­tor known for its coun­tert­er­ror­ism ‘psy ops’ work in Afghanistan, the firm does so by seed­ing the social net­work with per­son­al­i­ty quizzes. Respon­dents — by now hun­dreds of thou­sands of us, most­ly female and most­ly young but enough male and old­er for the firm to make infer­ences about oth­ers with sim­i­lar behav­iors and demo­graph­ics — get a free look at their Ocean scores. Cam­bridge Ana­lyt­i­ca also gets a look at their scores and, thanks to Face­book, gains access to their pro­files and real names.

“Cam­bridge Ana­lyt­i­ca worked on the ‘Leave’ side of the Brex­it cam­paign. In the Unit­ed States it takes only Repub­li­cans as clients: Sen­a­tor Ted Cruz in the pri­maries, Mr. Trump in the gen­er­al elec­tion. Cam­bridge is report­ed­ly backed by Robert Mer­cer, a hedge fund bil­lion­aire and a major Repub­li­can donor; a key board mem­ber is Stephen K. Ban­non, the head of Bre­it­bart News who became Mr. Trump’s cam­paign chair­man and is set to be his chief strate­gist in the White House. . .

” . . . . Their [the Mer­cers] data firm, Cam­bridge Ana­lyt­i­ca, was hired by the Cruz cam­paign. They switched to sup­port Trump short­ly after he clinched the nom­i­na­tion, and he even­tu­al­ly hired Cam­bridge Ana­lyt­i­ca, as well. Their top polit­i­cal guru is Steve Ban­non, the for­mer Bre­it­bart News chair­man and White House chief strate­gist. They’re close, too, with Trump’s cam­paign man­ag­er Kellyanne Con­way, who also has a senior role in the White House. They nev­er speak to the press and hard­ly ever even release a pub­lic state­ment. Like Trump him­self, they’ve flout­ed the stan­dard play­book for how things are done in pol­i­tics. . . .”

Ban­non’s influ­ence on Rebekah Mer­cer is par­tic­u­lar­ly strong: ” . . . Anoth­er of the Repub­li­can oper­a­tives described Ban­non as the ‘Obi-Wan Keno­bi’ to Rebekah Mer­cer, and a third was even more point­ed: ‘Sven­gali.’ Ban­non is ‘real­ly, real­ly, real­ly influ­en­tial’ with Mer­cer, said the for­mer Bre­it­bart employ­ee. The Mer­cers, the for­mer employ­ee said, made their wish­es known through Ban­non, who would some­times cite the company’s finan­cial back­ers as a rea­son for Bre­it­bart not to do a sto­ry. Ban­non didn’t respond to a request for com­ment about this. . . .”

In turn, the influ­ence of Steve Ban­non with­in the Face­book vir­tu­al panop­ti­con is even more sin­is­ter con­sid­er­ing Ban­non’s polit­i­cal out­look: ” . . . . But, said the source, who request­ed anonymi­ty to speak can­did­ly about Ban­non, ‘There are some things he’s only going to share with peo­ple who he’s tight with and who he trusts.’

Bannon’s read­ings tend to have one thing in com­mon: the view that tech­nocrats have put West­ern civ­i­liza­tion on a down­ward tra­jec­to­ry and that only a shock to the sys­tem can reverse its decline. And they tend to have a dark, apoc­a­lyp­tic tone that at times echoes Bannon’s own pub­lic remarks over the years—a sense that human­i­ty is at a hinge point in his­to­ry. . . .”

One of the influ­ences on Ban­non is Cur­tis Yarvin, aka Men­cius Mold­bug, who has actu­al­ly opened a backchan­nel advi­so­ry con­nec­tion to the White House: ” . . . . Before he emerged on the polit­i­cal scene, an obscure Sil­i­con Val­ley com­put­er pro­gram­mer with ties to Trump backer and Pay­Pal co-founder Peter Thiel was explain­ing his behav­ior. Cur­tis Yarvin, the self-pro­claimed ‘neo­re­ac­tionary’ who blogs under the name ‘Men­cius Mold­bug,’ attract­ed a fol­low­ing in 2008 when he pub­lished a wordy trea­tise assert­ing, among oth­er things, that ‘non­sense is a more effec­tive orga­niz­ing tool than the truth.’ When the orga­niz­er of a com­put­er sci­ence con­fer­ence can­celed Yarvin’s appear­ance fol­low­ing an out­cry over his blog­ging under his nom de web, Ban­non took note: Bre­it­bart News decried the act of cen­sor­ship in an arti­cle about the programmer-blogger’s dis­missal.

Moldbug’s dense, dis­cur­sive mus­ings on history—‘What’s so bad about the Nazis?’ he asks in one 2008 post that con­demns the Holo­caust but ques­tions the moral supe­ri­or­i­ty of the Allies—include a belief in the util­i­ty of spread­ing mis­in­for­ma­tion that now looks like a tem­plate for Trump’s approach to truth. ‘To believe in non­sense is an unforge­able [sic] demon­stra­tion of loy­al­ty. It serves as a polit­i­cal uni­form. And if you have a uni­form, you have an army,’ he writes in a May 2008 post.‘It’s been a while since I post­ed any­thing real­ly con­tro­ver­sial and offen­sive here,’ he begins in a July 25, 2007, post explain­ing why he asso­ciates democ­ra­cy with ‘war, tyran­ny, destruc­tion and pover­ty.’

Mold­bug, who does not do inter­views and could not be reached for this sto­ry, has report­ed­ly opened up a line to the White House, com­mu­ni­cat­ing with Ban­non and his aides through an inter­me­di­ary, accord­ing to a source. Yarvin said he has nev­er spo­ken with Ban­non. . . .”

After dis­cussing Face­book’s new AI tech­nol­o­gy being employed to search users’ pho­tos, the pro­gram con­cludes with the shift of Sil­i­con Val­ley mon­ey to the GOP.

Pro­gram High­lights Include: review of Steve Ban­non’s role on the NSC; review of the mar­tial law con­tin­gency plans drawn up by Oliv­er North dur­ing the Rea­gan admin­is­tra­tion, involv­ing the dep­u­tiz­ing of para­mil­i­tary right-wingers; review of Erik Prince’s rela­tion­ship to the Trump admin­is­tra­tion and Bet­sy De Vos, Trump’s edu­ca­tion sec­re­tary.

Peter Thiel Becomes a Trump Delegate

Peter Thiel is a Don­ald Trump del­e­gate from Cal­i­for­nia. Thiel is also the largest stock­hold­er in Face­book and Palan­tir. In addi­tion, he pro­vid­ed most of the fund­ing for Eddie the Friend­ly Spook’s Pres­i­den­tial can­di­date of choice, Ron Paul. All of the con­tents of this web­site as of 12/19/2014–Dave Emory’s 35+ years of research and broadcasting–as well as hours of video­taped lec­tures are avail­able on a 32GB flash dri­ve. Dave offers his pro­grams and arti­cles for free–your sup­port is very much appre­ci­at­ed.

FTR #770 Bit[coin]burg, Part 3: Fool’s Gold

Pre­sent­ed as an alter­na­tive to the exist­ing mon­e­tary and fis­cal par­a­digms, bit­coin is–in fact–as bad, or worse, than what it is designed to replace. Sub­ject to a wide vari­ety of crooked machi­na­tions, bit­coin also lends itself read­i­ly to con­cen­tra­tion of ownership–get ready for the “bit­coin 1%.” The bit­coin milieu increas­ing­ly over­laps that of Eddie the Friend­ly Spook and “The Paulis­tin­ian Lib­er­tar­i­an Orga­ni­za­tion.”

FTR #760 Bit[coin]burg–The Rebels Without a Clue

In this pro­gram, we exam­ine a clan­des­tine, online cur­ren­cy called bit­coin. Bit­coin has been hatched from the same lib­er­tar­i­an, Lud­wig von Mis­es milieu to which Eddie “get rid of social secu­ri­ty, bring back the gold stan­dard” Snow­den adheres. Although the cur­ren­cy has usu­al­ly been attrib­uted to one Satoshi Nako­mo­to, an arti­cle in Fastcompany.com hypoth­e­sizes that the actu­al devel­op­ers of bit­coin were Charles Bry, Neal J. King (who offi­cial­ly denies any involve­ment) and Vladimir Oks­man. All three work for a Ger­man firm called Lan­tiq, evolved from Siemens A.G. Ger­many is the only nation that rec­og­nizes bit­coin.

Peter Thiel Is a Big Ted Cruz Backer

In FTR #‘s 758, 759, we looked at the pro­found con­nec­tions between the GOP fis­cal ter­ror­ists of the “Paulis­tin­ian Lib­er­tar­i­an Orga­ni­za­tion” and the milieu of Eddie Snow­den. It should come as no sur­prise that Peter Thiel is a major backer of Ted Cruz. In our dis­cus­sions of Thiel, NEVER for­get that he explic­it­ly rejects democ­ra­cy, in no small mea­sure because he does­n’t think women should be allowed to vote.

Bitcoinburg–Who Developed this “Virtual Currency?”

In this post, we exam­ine the ori­gins of the bit­coin vir­tu­al cur­ren­cy, which evolved into the online cur­ren­cy of choice for the cus­tomers of the Silk Road net­work. Alone among sov­er­eign nations, Ger­many has rec­og­nized bit­coin as legal ten­der. An arti­cle at Fast­com­pa­ny hypoth­e­sizes that three indi­vid­u­als named Neal J. King, Charles Bry and Vladimir Oks­man are the true orig­i­na­tors of bit­coin. All three work for Lan­tiq. Lan­tiq is a firm evolved from Siemens spin­off Infi­neon AG.

Free advice for a multimillionaire, Part 2: Lies, damned lies, and surrogates

Are you run­ning for pres­i­dent? Do you find your­self in a bit of a Bain-bind? Is life start­ing to feel like a con­vo­lut­ed mess? Then we have just the advice for you.