Category Archives: Politics

Burning down the House: New Scandals Exposed in Ex-Trump Aide’s upcoming Book

Burning down the House: New Scandals Exposed in Ex-Trump Aide’s new Book

Get ready for some bloody receipts, former aide knows things others do not

Just when you thought there could not be any more books revealing the insane, corrupt world of Trump…BANG, another one is ready to drop. It’s called “I’ll Take Your Questions Now: What I Saw in the Trump White House”.

The length of the list of titles written about DJT is almost ridiculous, yet many have proven to be popular and quite a lucrative business: (Rage, Hoax, Fear, Fire and Fury, Disloyal, Too Much and Never Enough, A Warning, The Room Where it Happened, Melania and Me and on and on and on. 

This time, however, could be especially telling, as the top-secret memoir is coming from ex-Trump and Melania aide, Stephanie Grisham. According to Axios, who was first to report of the upcoming text, cited from a publishing source that the book would reveal “surprising new scandals”.

From candid comments it appears that is a gross understatement. One close associate of Grisham’s told Axios:

“When I heard this, all I could think about was Stephanie surrounded by a lake of gasoline, striking a match with a grin on her face.”

former West Wing colleague, quoted in Axios

Grisham has served as aide to former First Lady Melania Trump, as Chief of Staff, and as an aide to Trump as his White House Press Secretary and Communications Director.

Her job in the White House as a press person was to make sure she was in the know of what was happening and therefore got to see the personal side of the Trumps’ that rarely any staffers get to see.

Again, a former West Wing colleague, quoted in Axios: “There isn’t enough water on earth to contain the fire she could set to all of Trump world, including parts like the first lady’s orbit, which not many people are in a position to illuminate.”

Based on sources given to CNN,  Grisham’s book will most likely include some of the bigger Trump headlines like the allegations of sexual misconduct and effects of the Stormy Daniels case. 

I’ll Take Your Questions Now: What I Saw in the Trump White House” will be released on Oct 5 and is available to pre-order now on Bookshop


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These Extreme Weather Events are a preview of the Coming Climate Disasters

Above: Photo Collage – Lyxotic

New Orleans, Lake Tahoe, NYC – that’s just this week and just in the US… and a drought in the west that is a serious growing threat

The warnings are coming hard and heavy after multiple previous and eerily similar catastrophes, only they just keep getting more severe. Each one is a unique event and each has a litany and list of records that smash all prior statistics since record keeping began.

“Hottest month ever”, “most rainfall in an hour ever recorded”, “worst flood in NY history”, these hyperbolic sounding statements are not hyperbole at all, just facts, but since they are becoming a nearly constant refrain, the entire situation appears surreal.

Journalists use words like “dystopian” and twitter users compare photos and general panic to the climate disaster movie “The Day After Tomorrow” and note that the current reality is already scarier than what the movie was able to convey.

Underneath the shock is a layer of manufactured apathy

Even as the signs of an expanding and accelerating worldwide disaster are more obvious, season by season, month by month and even day by day, there is, nevertheless, a kind of paralysis surrounding the fear.

Fossil fuel subsidies continue to be handed out, so many half-measures and excuses are bandied about, and personal, individual responsibility is used as a bludgeon to guilt the populous into a state of inaction.

It’s called a climate emergency because it is an emergency, so act like it, to paraphrase Greta Thunberg. Unfortunately, dire emergencies are not scarce at the moment, and the situation is likely to get worse, meanwhile it is a valid question; what would be done if the climate crisis were actually treated like an emergency?

New York Floods, Ida aftermath, September 2021

Above: Photo: Lyxotic / Adobe Stock

The remnants of Hurricane Ida resulted in extreme dumping of historic levels of rainfall, with Central Park in N.Y.C. receiving 3.15 inches of rain in just one hour. Newark Airport was shut down and many flooded streets in the five boroughs and surrounding areas of New Jersey and Pennsylvania were transformed into virtual rivers. Subway entrances and basement dwellings quickly filled until they overflowed.  

The national Weather Service issued its first ever “flash flood emergency” for the area as well as both NY and NJ leaders issuing states of emergency.

The death toll quickly rose to at least 50 people. Reports of those that were killed mostly died as a result of being flooded in basement living spaces or overtaken by water both inside and outside their vehicles. 

The Climate Crisis is not a movie and a majority has to demand action of Government and Industry: the individual is not to blame

In a way the problem inherently contains the seeds to its own resolution. The current state of climate emergency could have been partially averted, or at least slowed down, had government and, in particular, the fossil fuel industrial complex done more than talk and come up with tricks like greenwashing and propaganda to distract and delay the obvious need to stop carbon (CO2) pollution. The signs were evident for many decades, and some alternative solutions were known for over a century, while the fossil fuel behemoth just kept expanding.

Now, with the crisis getting more extreme and deadly, seemingly by the hour, it will take an equally extreme change in the response – a literal washing away of the status quo that created the problem. That may look like a system wide collapse, bringing down the structure that props up the suicidal stupidity of the current system, or something equally extreme, if real solutions are to have time to have any chance of having an impact.

New Orleans Storm

Hurricane Ida made landfall as a Category 4 Sunday morning (August 30, 2021) also marking the 16th anniversary of Hurricane Katrina.  Ida had maximum sustained winds of 150 mph,  just shy of making it a Category 5 (winds greater than 155 mph). Radar approximates that up to about 17 inches of rainfall were recorded just west of New Orleans. 

Over a million customers lost power in Louisiana, making it the 2nd largest power outage in the state since 2000. The outage could leave residents without power for up to six weeks, rendering them helpless for electricity during increasingly hot late summer weather. Numerous streets need power lines raised that were brought down or snapped by Ida’s winds. 

Cantrell, the New Orleans major spoke of voluntary evacuations, particularly for residents that have special needs, seniors or those vulnerable to the heat. 

Extreme weather, ocean temps, rising sea levels with melting ice caps, all connected and all increasingly menacing

It has appeared, unfortunately, for nearly decades as if the predictions of ocean temperature increase and sea level rise would have to continue until multiple major cities are fully submerged before any real steps would begin to combat the causes.

Is that still the case after the four “disaster stories” this week? Was the tragedy and destruction enough to have people begin to actually realize that there are no decades left to “wait and see”?

Caldor / Lake Tahoe Fire

The Caldor Fire has burned around 213,270 acres covering 2 California counties (El Dorado and Amador) and currently only 32% contained (as of September 3rd).  The fires have been active for 19 days according to Cal Fire.   Thousands of  people have been forced to evacuate.  The looming threat of the fires reaching the popular tourist location of South Lake Tahoe are safe for now, however, and flames have been averted. 

The fire created widespread haze and smoke, resulting in extremely hazardous air quality. 

The total number of structures destroyed by the fire is 857 as of Sept 3rd, marking it as the 20th most destructive fire in recorded history for California. 

Monumental Drought in the Western US

All of California is under a drought conditions. 

Water levels from the largest reservoir on the Colorado River and Lake Mead,  which supply drinking and irrigation water to Colorado, Nevada, Arizona, California and Mexico  have reached record low levels.

Regulators now have to make crucial steps to protect another crucial water source, the Sacramento-San Joaquin Delta, the water system that helps to provide 2/3 of CA population, irrigation for agricultural industry as well as state’s norther border with Oregon. 

California residents could be facing future water restriction, however according to Gov. Gavin Newsom it is not likely to be in force until the end of September (the delay could be his attempt to avoid any unpopular mandates before the  Sept 14. Recall Election).

Some drastic measures have been taken so far at National State parks in order to help conserve water including closing bathrooms and showers and shutting off water faucets/fountains.

Four stories just from this week: is this a turning point and a wake up call that we desperately need?

Does New York City, or Miami, or Mumbai have to be permanently flooded or fully submerged before we “notice” and demand action? Or, is now the time to mark the date – September 2021 as the moment that the climate emergency was finally “real”? Will it be seen, understood as imminent, and acted on as an emergency of the magnitude that it already is?


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Heeding Steve Bannon’s Call, Election Deniers Organize to Seize Control of the GOP — and Reshape America’s Elections

After Steve Bannon urged his followers to take over local-level GOP positions, the plan went viral across far-right media.

One of the loudest voices urging Donald Trump’s supporters to push for overturning the presidential election results was Steve Bannon. “We’re on the point of attack,” Bannon, a former Trump adviser and far-right nationalist, pledged on his popular podcast on Jan. 5. “All hell will break loose tomorrow.” The next morning, as thousands massed on the National Mall for a rally that turned into an attack on the Capitol, Bannon fired up his listeners: “It’s them against us. Who can impose their will on the other side?”

When the insurrection failed, Bannon continued his campaign for his former boss by other means. On his “War Room” podcast, which has tens of millions of downloads, Bannon said President Trump lost because the Republican Party sold him out. “This is your call to action,” Bannon said in February, a few weeks after Trump had pardoned him of federal fraud charges.

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

The solution, Bannon announced, was to seize control of the GOP from the bottom up. Listeners should flood into the lowest rung of the party structure: the precincts. “It’s going to be a fight, but this is a fight that must be won, we don’t have an option,” Bannon said on his show in May. “We’re going to take this back village by village … precinct by precinct.”

Precinct officers are the worker bees of political parties, typically responsible for routine tasks like making phone calls or knocking on doors. But collectively, they can influence how elections are run. In some states, they have a say in choosing poll workers, and in others they help pick members of boards that oversee elections.

After Bannon’s endorsement, the “precinct strategy” rocketed across far-right media. Viral posts promoting the plan racked up millions of views on pro-Trump websites, talk radio, fringe social networks and message boards, and programs aligned with the QAnon conspiracy theory.

Suddenly, people who had never before showed interest in party politics started calling the local GOP headquarters or crowding into county conventions, eager to enlist as precinct officers. They showed up in states Trump won and in states he lost, in deep-red rural areas, in swing-voting suburbs and in populous cities.

In Wisconsin, for instance, new GOP recruits are becoming poll workers. County clerks who run elections in the state are required to hire parties’ nominees. The parties once passed on suggesting names, but now hardline Republican county chairs are moving to use those powers.

“We’re signing up election inspectors like crazy right now,” said Outagamie County party chair Matt Albert, using the state’s formal term for poll workers. Albert, who held a “Stop the Steal” rally during Wisconsin’s November recount, said Bannon’s podcast had played a role in the burst of enthusiasm.

ProPublica contacted GOP leaders in 65 key counties, and 41 reported an unusual increase in signups since Bannon’s campaign began. At least 8,500 new Republican precinct officers (or equivalent lowest-level officials) joined those county parties. We also looked at equivalent Democratic posts and found no similar surge.

“I’ve never seen anything like this, people are coming out of the woodwork,” said J.C. Martin, the GOP chairman in Polk County, Florida, who has added 50 new committee members since January. Martin had wanted congressional Republicans to overturn the election on Jan. 6, and he welcomed this wave of like-minded newcomers. “The most recent time we saw this type of thing was the tea party, and this is way beyond it.”

Bannon, through a spokesperson, declined to comment.

While party officials largely credited Bannon’s podcast with driving the surge of new precinct officers, it’s impossible to know the motivations of each new recruit. Precinct officers are not centrally tracked anywhere, and it was not possible to examine all 3,000 counties nationwide. ProPublica focused on politically competitive places that were discussed as targets in far-right media.

The tea party backlash to former President Barack Obama’s election foreshadowed Republican gains in the 2010 midterm. Presidential losses often energize party activists, and it would not be the first time that a candidate’s faction tried to consolidate control over the party apparatus with the aim of winning the next election.

What’s different this time is an uncompromising focus on elections themselves. The new movement is built entirely around Trump’s insistence that the electoral system failed in 2020 and that Republicans can’t let it happen again. The result is a nationwide groundswell of party activists whose central goal is not merely to win elections but to reshape their machinery.

“They feel President Trump was rightfully elected president and it was taken from him,” said Michael Barnett, the GOP chairman in Palm Beach County, Florida, who has enthusiastically added 90 executive committee members this year. “They feel their involvement in upcoming elections will prevent something like that from happening again.”

It has only been a few months — too soon to say whether the wave of newcomers will ultimately succeed in reshaping the GOP or how they will affect Republican prospects in upcoming elections. But what’s already clear is that these up-and-coming party officers have notched early wins.

In Michigan, one of the main organizers recruiting new precinct officers pushed for the ouster of the state party’s executive director, who contradicted Trump’s claim that the election was stolen and who later resigned. In Las Vegas, a handful of Proud Boys, part of the extremist group whose members have been charged in attacking the Capitol, supported a bid to topple moderates controlling the county party — a dispute that’s now in court.

In Phoenix, new precinct officers petitioned to unseat county officials who refused to cooperate with the state Senate Republicans’ “forensic audit” of 2020 ballots. Similar audits are now being pursued by new precinct officers in Michigan and the Carolinas. Outside Atlanta, new local party leaders helped elect a state lawmaker who championed Georgia’s sweeping new voting restrictions.

And precinct organizers are hoping to advance candidates such as Matthew DePerno, a Michigan attorney general hopeful who Republican state senators said in a report had spread “misleading and irresponsible” misinformation about the election, and Mark Finchem, a member of the Oath Keepers militia who marched to the Capitol on Jan. 6 and is now running to be Arizona’s top elections official. DePerno did not respond to requests for comment, and Finchem asked for questions to be sent by email and then did not respond. Finchem has said he did not enter the Capitol or have anything to do with the violence. He has also said the Oath Keepers are not anti-government.

When Bannon interviewed Finchem on an April podcast, he wrapped up a segment about Arizona Republicans’ efforts to reexamine the 2020 results by asking Finchem how listeners could help. Finchem answered by promoting the precinct strategy. “The only way you’re going to see to it this doesn’t happen again is if you get involved,” Finchem said. “Become a precinct committeeman.”

Some of the new precinct officers were in the crowd that marched to the Capitol on Jan. 6, according to interviews and social media posts; one Texas precinct chair was arrested for assaulting police in Washington. He pleaded not guilty. Many of the new activists have said publicly that they support QAnon, the online conspiracy theory that believes Trump was working to root out a global child sex trafficking ring. Organizers of the movement have encouraged supporters to bring weapons to demonstrations. In Las Vegas and Savannah, Georgia, newcomers were so disruptive that they shut down leadership elections.

“They’re not going to be welcomed with open arms,” Bannon said, addressing the altercations on an April podcast. “But hey, was it nasty at Lexington?” he said, citing the opening battle of the American Revolution. “Was it nasty at Concord? Was it nasty at Bunker Hill?”

Bannon plucked the precinct strategy out of obscurity. For more than a decade, a little-known Arizona tea party activist named Daniel J. Schultz has been preaching the plan. Schultz failed to gain traction, despite winning a $5,000 prize from conservative direct-mail pioneer Richard Viguerie in 2013 and making a 2015 pitch on Bannon’s far-right website, Breitbart. Schultz did not respond to repeated requests for comment.

In December, Schultz appeared on Bannon’s podcast to argue that Republican-controlled state legislatures should nullify the election results and throw their state’s Electoral College votes to Trump. If lawmakers failed to do that, Bannon asked, would it be the end of the Republican Party? Not if Trump supporters took over the party by seizing precinct posts, Schultz answered, beginning to explain his plan. Bannon cut him off, offering to return to the idea another time.

That time came in February. Schultz returned to Bannon’s podcast, immediately preceding Mike Lindell, the MyPillow CEO who spouts baseless conspiracy theories about the 2020 election.

“We can take over the party if we invade it,” Schultz said. “I can’t guarantee you that we’ll save the republic, but I can guarantee you this: We’ll lose it if we conservatives don’t take over the Republican Party.”

Bannon endorsed Schultz’s plan, telling “all the unwashed masses in the MAGA movement, the deplorables” to take up this cause. Bannon said he had more than 400,000 listeners, a count that could not be independently verified.

Bannon brought Schultz back on the show at least eight more times, alongside guests such as embattled Florida congressman Matt Gaetz, a leading defender of people jailed on Capitol riot charges.

The exposure launched Schultz into a full-blown far-right media tour. In February, Schultz spoke on a podcast with Tracy “Beanz” Diaz, a leading popularizer of QAnon. In an episode titled “THIS Is How We Win,” Diaz said of Schultz, “I was waiting, I was wishing and hoping for the universe to deliver someone like him.”

Schultz himself calls QAnon “a joke.” Nevertheless, he promoted his precinct strategy on at least three more QAnon programs in recent months, according to Media Matters, a Democratic-aligned group tracking right-wing content. “I want to see many of you going and doing this,” host Zak Paine said on one of the shows in May.

Schultz’s strategy also got a boost from another prominent QAnon promoter: former National Security Adviser Michael Flynn, who urged Trump to impose martial law and “rerun” the election. On a May online talk show, Flynn told listeners to fill “thousands of positions that are vacant at the local level.”

Precinct recruitment is now “the forefront of our mission” for Turning Point Action, according to the right-wing organization’s website. The group’s parent organization bussed Trump supporters to Washington for Jan. 6, including at least one person who was later charged with assaulting police. He pleaded not guilty. In July, Turning Point brought Trump to speak in Phoenix, where he called the 2020 election “the greatest crime in history.” Outside, red-capped volunteers signed people up to become precinct chairs.

Organizers from around the country started huddling with Schultz for weekly Zoom meetings. The meetings’ host, far-right blogger Jim Condit Jr. of Cincinnati, kicked off a July call by describing the precinct strategy as the last alternative to violence. “It’s the only idea,” Condit said, “unless you want to pick up guns like the Founding Fathers did in 1776 and start to try to take back our country by the Second Amendment, which none of us want to do.”

By the next week, though, Schultz suggested the new precinct officials might not stay peaceful. Schultz belonged to a mailing list for a group of military, law enforcement and intelligence veterans called the “1st Amendment Praetorian” that organizes security for Flynn and other pro-Trump figures. Back in the 1990s, Schultz wrote an article defending armed anti-government militias like those involved in that decade’s deadly clashes with federal agents in Ruby Ridge, Idaho, and Waco, Texas.

“Make sure everybody’s got a baseball bat,” Schultz said on the July strategy conference call, which was posted on YouTube. “I’m serious about this. Make sure you’ve got people who are armed.”

The sudden demand for low-profile precinct positions baffled some party leaders. In Fort Worth, county chair Rick Barnes said numerous callers asked about becoming a “precinct committeeman,” quoting the term used on Bannon’s podcast. That suggested that out-of-state encouragement played a role in prompting the calls, since Texas’s term for the position is “precinct chair.” Tarrant County has added 61 precinct chairs this year, about a 24% increase since February. “Those podcasts actually paid off,” Barnes said.

For weeks, about five people a day called to become precinct chairs in Outagamie County, Wisconsin, southwest of Green Bay. Albert, the county party chair, said he would explain that Wisconsin has no precinct chairs, but newcomers could join the county party — and then become poll workers. “We’re trying to make sure that our voice is now being reinserted into the process,” Albert said.

Similarly, the GOP in Cumberland County, Pennsylvania, is fielding a surge of volunteers for precinct committee members, but also for election judges or inspectors, which are party-affiliated elected positions in that state. “Who knows what happened on Election Day for real,” county chair Lou Capozzi said in an interview. The county GOP sent two busloads of people to Washington for Jan. 6 and Capozzi said they stayed peaceful. “People want to make sure elections remain honest.”

Elsewhere, activists inspired by the precinct strategy have targeted local election boards. In DeKalb County, east of Atlanta, the GOP censured a long-serving Republican board member who rejected claims of widespread fraud in 2020. To replace him, new party chair Marci McCarthy tapped a far-right activist known for false, offensive statements. The party nominees to the election board have to be approved by a judge, and the judge in this case rejected McCarthy’s pick, citing an “extraordinary” public outcry. McCarthy defended her choice but ultimately settled for someone less controversial.

In Raleigh, North Carolina, more than 1,000 people attended the county GOP convention in March, up from the typical 300 to 400. The chair they elected, Alan Swain, swiftly formed an “election integrity committee” that’s lobbying lawmakers to restrict voting and audit the 2020 results. “We’re all about voter and election integrity,” Swain said in an interview.

In the rural western part of the state, too, a wave of people who heard Bannon’s podcast or were furious about perceived election fraud swept into county parties, according to the new district chair, Michele Woodhouse. The district’s member of Congress, Rep. Madison Cawthorn, addressed a crowd at one county headquarters on Aug. 29, at an event that included a raffle for a shotgun.

“If our election systems continue to be rigged and continue to be stolen, it’s going to lead to one place, and it’s bloodshed,” Cawthorn said, in remarks livestreamed on Facebook, shortly after holding the prize shotgun, which he autographed. “That’s right,” the audience cheered. Cawthorn went on, “As much as I’m willing to defend our liberty at all costs, there’s nothing that I would dread doing more than having to pick up arms against a fellow American, and the way we can have recourse against that is if we all passionately demand that we have election security in all 50 states.”

After Cawthorn referred to people arrested on Jan. 6 charges as “political hostages,” someone asked, “When are you going to call us to Washington again?” The crowd laughed and clapped as Cawthorn answered, “We are actively working on that one.”

Schultz has offered his own state of Arizona as a proof of concept for how precinct officers can reshape the party. The result, Schultz has said, is actions like the state Senate Republicans’ “forensic audit” of Maricopa County’s 2020 ballots. The “audit,” conducted by a private firm with no experience in elections and whose CEO has spread conspiracy theories, has included efforts to identify fraudulent ballots from Asia by searching for traces of bamboo. Schultz has urged activists demanding similar audits in other states to start by becoming precinct officers.

“Because we’ve got the audit, there’s very heightened and intense public interest in the last campaign, and of course making sure election laws are tightened,” said Sandra Dowling, a district chair in northwest Maricopa and northern Yuma County whose precinct roster grew by 63% in less than six months. Though Dowling says some other district chairs screen their applicants, she doesn’t. “I don’t care,” she said.

One chair who does screen applicants is Kathy Petsas, a lifelong Republican whose district spans Phoenix and Paradise Valley. She also saw applications explode earlier this year. Many told her that Schultz had recruited them, and some said they believed in QAnon. “Being motivated by conspiracy theories is no way to go through life, and no way for us to build a high-functioning party,” Petsas said. “That attitude can’t prevail.”

As waves of new precinct officers flooded into the county party, Petsas was dismayed to see some petitioning to recall their own Republican county supervisors for refusing to cooperate with the Senate GOP’s audit.

“It is not helpful to our democracy when you have people who stand up and do the right thing and are honest communicators about what’s going on, and they get lambasted by our own party,” Petsas said. “That’s a problem.”

This spring, a team of disaffected Republican operatives put Schultz’s precinct strategy into action in South Carolina, a state that plays an outsize role in choosing presidents because of its early primaries. The operatives’ goal was to secure enough delegates to the party’s state convention to elect a new chair: far-right celebrity lawyer Lin Wood.

Wood was involved with some of the lawsuits to overturn the presidential election that courts repeatedly ruled meritless, or even sanctionable. After the election, Wood said on Bannon’s podcast, “I think the audience has to do what the people that were our Founding Fathers did in 1776.” On Twitter, Wood called for executing Vice President Mike Pence by firing squad. Wood later said it was “rhetorical hyperbole,” but that and other incendiary language got him banned from mainstream social media. He switched to Telegram, an encrypted messaging app favored by deplatformed right-wing influencers, amassing roughly 830,000 followers while repeatedly promoting the QAnon conspiracy theory.

Asked for comment about his political efforts, Wood responded, “Most of your ‘facts’ are either false or misrepresent the truth.” He declined to cite specifics.

Typically, precinct meetings were “a yawner,” according to Mike Connett, a longtime party member in Horry County, best known for its popular beach towns. But in April, Connett and other establishment Republicans were caught off guard when 369 people, many of them newcomers, showed up for the county convention in North Myrtle Beach. Connett lost a race for a leadership role to Diaz, the prominent QAnon supporter, and Wood’s faction captured the county’s other executive positions plus 35 of 48 delegate slots, enabling them to cast most of the county’s votes for Wood at the state convention. “It seemed like a pretty clean takeover,” Connett told ProPublica.

In Greenville, the state’s most populous county, Wood campaign organizers Jeff Davis and Pressley Stutts mobilized a surge of supporters at the county convention — about 1,400 delegates, up from roughly 550 in 2019 — and swept almost all of the 79 delegate positions. That gave Wood’s faction the vast majority of the votes in two of South Carolina’s biggest delegations.

Across the state, the precinct strategy was contributing to an unprecedented surge in local party participation, according to data provided by a state GOP spokeswoman. In 2019, 4,296 people participated. This year, 8,524 did.

“It’s a prairie fire down there in Greenville, South Carolina, brought on by the MAGA posse,” Bannon said on his podcast.

Establishment party leaders realized they had to take Wood’s challenge seriously. The incumbent chair, Drew McKissick, had Trump’s endorsement three times over — including twice after Wood entered the race. But Wood fought back by repeatedly implying that McKissick and other prominent state Republicans were corrupt and involved in various conspiracies that seemed related to QAnon. The race became heated enough that after one event, Wood and McKissick exchanged angry words face-to-face.

Wood’s rallies were raucous affairs packed with hundreds of people, energized by right-wing celebrities like Flynn and Lindell. In interviews, many attendees described the events as their first foray into politics, sometimes referencing Schultz and always citing Trump’s stolen election myth. Some said they’d resort to violence if they felt an election was stolen again.

Wood’s campaign wobbled in counties that the precinct strategy had not yet reached. At the state convention in May, Wood won about 30% of the delegates, commanding Horry, Greenville and some surrounding counties, but faltering elsewhere. A triumphant McKissick called Wood’s supporters “a fringe, rogue group” and vowed to turn them into a “leper colony” by building parallel Republican organizations in their territory.

But Wood and his partisans did not act defeated. The chairmanship election, they argued, was as rigged as the 2020 presidential race. Wood threw a lavish party at his roughly 2,000-acre low-country estate, secured by armed guards and surveillance cameras. From a stage fit for a rock concert on the lawn of one of his three mansions, Wood promised the fight would continue.

Diaz and her allies in Horry County voted to censure McKissick. The county’s longtime Republicans tried, but failed, to oust Diaz and her cohort after one of the people involved in drafting Wood tackled a protester at a Flynn speech in Greenville. (This incident, the details of which are disputed, prompted Schultz to encourage precinct strategy activists to arm themselves.) Wood continued promoting the precinct strategy to his Telegram followers, and scores replied that they were signing up.

In late July, Stutts and Davis forced out Greenville County GOP’s few remaining establishment leaders, claiming that they had cheated in the first election. Then Stutts, Davis and an ally won a new election to fill those vacant seats. “They sound like Democrats, right?” Bannon asked Stutts in a podcast interview. Stutts replied, “They taught the Democrats how to cheat, Steve.”

Stutts’ group quickly pushed for an investigation of the 2020 presidential election, planning a rally featuring Davis and Wood at the end of August, and began campaigning against vaccine and school mask mandates. “I prefer dangerous freedom over peaceful slavery,” Stutts had previously posted on Facebook, quoting Thomas Jefferson. Stutts continued posting messages skeptical of vaccine and mask mandates even after he entered the hospital with a severe case of COVID-19. He died on Aug. 19.

The hubbub got so loud inside the Cobb County, Georgia, Republican headquarters that it took several shouts and whistles to get everyone’s attention. It was a full house for Salleigh Grubbs’ first meeting as the county’s party chair. Grubbs ran on a vow to “clean house” in the election system, highlighting her December testimony to state lawmakers in which she raised unsubstantiated fraud allegations. Supporters praised Grubbs’ courage for following a truck she suspected of being used in a plot to shred evidence. She attended Trump’s Jan. 6 rally as a VIP. She won the chairmanship decisively at an April county convention packed with an estimated 50% first-time participants.

In May, Grubbs opened her first meeting by asking everyone munching on bacon and eggs to listen to her recite the Gettysburg Address. “Think of the battle for freedom that Americans have before them today,” Grubbs said. “Those people fought and died so that you could be the precinct chair.” After the reading, first-time precinct officers stood for applause and cheers.

Their work would start right away: putting up signs, making calls and knocking on doors for a special election for the state House. The district had long leaned Republican, but after the GOP’s devastating losses up and down the ballot in 2020, they didn’t know what to expect.

“There’s so many people out there that are scared, they feel like their vote doesn’t count,” Cooper Guyon, a 17-year-old right-wing podcaster from the Atlanta area who speaks to county parties around the state, told the Cobb Republicans in July. The activists, he said, need to “get out in these communities and tell them that we are fighting to make your vote count by passing the Senate bill, the election-reform bills that are saving our elections in Georgia.”

Of the field’s two Republicans, Devan Seabaugh took the strongest stance in favor of Georgia’s new law restricting ways to vote and giving the Republican-controlled Legislature more power over running elections. “The only people who may be inconvenienced by Senate Bill 202 are those intent on committing fraud,” he wrote in response to a local newspaper’s candidate questionnaire.

Seabaugh led the June special election and won a July runoff. Grubbs cheered the win as a turning point. “We are awake. We are preparing,” she wrote on Facebook. “The conservative citizens of Cobb County are ready to defend our ballots and our county.”

Newcomers did not meet such quick success everywhere. In Savannah, a faction crashed the Chatham County convention with their own microphone, inspired by Bannon’s podcast to try to depose the incumbent party leaders who they accused of betraying Trump. Party officers blocked the newcomers’ candidacies, saying they weren’t officially nominated. Shouting erupted, and the meeting adjourned without a vote. Then the party canceled its districtwide convention.

The state party ultimately sided with the incumbent leaders. District chair Carl Smith said the uprising is bound to fail because the insurgents are mistaken in believing that he and other local leaders didn’t fight hard enough for Trump.

“You can’t build a movement on a lie,” Smith said.

In Michigan, activists who identify with a larger movement working against Republicans willing to accept Trump’s loss have captured the party leadership in about a dozen counties. They’re directly challenging state party leaders, who are trying to harness the grassroots energy without indulging demands to keep fighting over the last election.

Some of the takeovers happened before the rise of the precinct strategy. But the activists are now organizing under the banner “Precinct First” and holding regular events, complete with notaries, to sign people up to run for precinct delegate positions.

“We are reclaiming our party,” Debra Ell, one of the organizers, told ProPublica. “We’re building an ‘America First’ army.”

Under normal rules, the wave of new precinct delegates could force the party to nominate far-right candidates for key state offices. That’s because in Michigan, party nominees for attorney general, secretary of state and lieutenant governor are chosen directly by party delegates rather than in public primaries. But the state party recently voted to hold a special convention earlier next year, which should effectively lock in candidates before the new, more radical delegates are seated.

Activist-led county parties including rural Hillsdale and Detroit-area Macomb are also censuring Republican state legislators for issuing a June report on the 2020 election that found no evidence of systemic fraud and no need for a reexamination of the results like the one in Arizona. (The censures have no enforceable impact beyond being a public rebuke of the politicians.) At the same time, county party leaders in Hillsdale and elsewhere are working on a ballot initiative to force an Arizona-style election review.

Establishment Republicans have their own idea for a ballot initiative — one that could tighten rules for voter ID and provisional ballots while sidestepping the Democratic governor’s veto. If the initiative collects hundreds of thousands of valid signatures, it would be put to a vote by the Republican-controlled state Legislature. Under a provision of the state constitution, the state Legislature can adopt the measure and it can’t be vetoed.

State party leaders recently reached out to the activists rallying around the rejection of the presidential election results, including Hillsdale Republican Party Secretary Jon Smith, for help. Smith, Ell and others agreed to join the effort, the two activists said.

“This empowers them,” Jason Roe, the state party executive director whose ouster the activists demanded because he said Trump was responsible for his own loss, told ProPublica. Roe resigned in July, citing unrelated reasons. “It’s important to get them focused on change that can actually impact” future elections, he said, “instead of keeping their feet mired in the conspiracy theories of 2020.”

Jesse Law, who ran the Trump campaign’s Election Day operations in Nevada, sued the Democratic electors, seeking to declare Trump the winner or annul the results. The judge threw out the case, saying Law’s evidence did not meet “any standard of proof,” and the Nevada Supreme Court agreed. When the Electoral College met in December, Law stood outside the state capitol to publicly cast mock votes for Trump.

This year, Law set his sights on taking over the Republican Party in the state’s largest county, Clark, which encompasses Las Vegas. He campaigned on the precinct strategy, promising 1,000 new recruits. His path to winning the county chairmanship — just like Stutts’ team in South Carolina, and Grubbs in Cobb County, Georgia — relied on turning out droves of newcomers to flood the county party and vote for him.

In Law’s case, many of those newcomers came through the Proud Boys, the all-male gang affiliated with more than two dozen people charged in the Capitol riot. The Las Vegas chapter boasted about signing up 500 new party members (not all of them belonging to the Proud Boys) to ensure their takeover of the county party. After briefly advancing their own slate of candidates to lead the Clark GOP, the Proud Boys threw their support to Law. They also helped lead a state party censure of Nevada’s Republican secretary of state, who rejected the Trump campaign’s baseless claims of fraudulent ballots.

Law, who did not respond to repeated requests for comment, has declined to distance himself from the Las Vegas Proud Boys, citing Trump’s “stand back and stand by” remark at the September 2020 presidential debate. “When the president was asked if he would disavow, he said no,” Law told an independent Nevada journalist in July. “If the president is OK with that, I’m going to take the presidential stance.”

The outgoing county chair, David Sajdak, canceled the first planned vote for his successor. He said he was worried the Proud Boys would resort to violence if their newly recruited members, who Sajdak considered illegitimate, weren’t allowed to vote.

Sajdak tried again to hold a leadership vote in July, with a meeting in a Las Vegas high school theater, secured by police. But the crowd inside descended into shouting, while more people tried to storm past the cops guarding the back entrance, leading to scuffles. “Let us in! Let us in!” some chanted. Riling them up was at least one Proud Boy, according to multiple videos of the meeting.

At the microphone, Sajdak was running out of patience. “I’m done covering for you awful people,” he bellowed. Unable to restore order, Sajdak ended the meeting without a vote and resigned a few hours later. He’d had enough.

“They want to create mayhem,” Sajdak said.

Soon after, Law’s faction held their own meeting at a hotel-casino and overwhelmingly voted for Law as county chairman. Nevada Republican Party Chairman Michael McDonald, a longtime ally of Law who helped lead Trump’s futile effort to overturn the Nevada results, recognized Law as the new county chair and promoted a fundraiser to celebrate. The existing county leaders sued, seeking a court order to block Law’s “fraudulent, rogue election.” The judge preliminarily sided with the moderates, but told them to hold off on their own election until a court hearing in September.

To Sajdak, agonizing over 2020 is pointless because “there’s no mechanism for overturning an election.” Asked if Law’s allies are determined to create one, Sajdak said: “It’s a scary thought, isn’t it.”

This article was originally published by ProPublica via Creative Commons and written by Isaac Arnsdorf, Doug Bock Clark, Alexandra Berzon and Anjeanette Damon


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Breaking: Firefighters battle the Caldor Fire as it races into Lake Tahoe

Above: Photo Credit / Fabian Jones / Unsplash

The Caldor Fire had burned 204,390 acres and 20%-contained 

The raging Caldor Fire that has already forced thousands of people to evacuate, is now becoming a critical threat to the popular tourist location, South Lake Tahoe. Reports of more than 34,000 structures are at risk.

There are approximately 4,000 firefighters and 1,000 California National Guard members that are helping to fight off the growing fires.

A spokesperson for California Governor’s Office of Emergency Services told CNN that over 53,000 people have been placed under evacuation orders.

The fire has already burned more than 300 square miles and destroyed hundred of residential structures. The city is facing wind gusts blowing at 35 miles per hour and stronger which continues to help the fire spread further down into the Tahoe basin.

Devastating Wildfires – continued reminders of the Climate Crisis

Greta Thunberg, the vocal climate crisis activist retweeted the below the video of the fires in California. There is so much confusion over the question of exactly which of the many, many “extreme weather events”
as they are now called, are directly attributable to climate change, global warming and Co2 in the atmosphere.

This is, for Greta Thunberg and anyone reading this with an ounce of sense, a moot point. The larger overarching point is that the threat of total world destruction as a result of buying fossil fuel and other human impacts on the environment has been long settled as a very dangerous and rapidly worsening reality.

Splitting hairs by constantly questioning alternative origins for extreme events, that clearly are increasing in their number and severity, is a kind of “climate denial-lite” that is as ridiculous as it is dangerous. Ultimately it is the perspective of those like Greta, that must be adopted and understood by the millions (billions), before it is too late. Only then, when the threat is faced head on, is there a chance we might prevent a rapid slide into oblivion.

Thunberg tweeted this week “Wildfires, floods, droughts, heatwaves and other (un)natural disasters rage all over the world. Many now ask “What will it take for people in power to act?”. Well, it will many things, but above all it will take: massive pressure from media and massive pressure from the public.”

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These Afghans Won the Visa Lottery Two Years Ago — Now They’re Stuck in Kabul and Out of Luck

Above: Photo Credit / Amber Clay / Pixabay

President Donald Trump’s ban on the visa lottery was ruled to be illegal, but the government says it can’t help hundreds of Afghans who won it for at least another year.

Fakhruddin Akbari is allowing his full name to be published because he is certain he is going to die. Akbari, his wife and his 3-year-old daughter fled their home in Kabul, Afghanistan, two weeks ago. They’ve been hiding with friends in the city, living on bread and water.

He should be among the lucky ones.

Instead, Akbari fears the very thing he was hoping would be his salvation will now make him a target.

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

Two years ago, Akbari won a rare spot in the United States’ “visa lottery.” He was chosen at random from a pool of 23 million to get the chance to apply for one of 55,000 visas to immigrate to the U.S. The U.S. was supposed to have finished his case by last fall. The instructions when he registered promised as much. Either he would be safely en route to the U.S., or he would lose his chance and move on.

But with the final U.S. evacuation from Afghanistan just days away — and as Thursday’s bombings have added even more chaos at Kabul’s airport — Akbari has almost certainly lost his chance to get out.

He has already burned the letters of commendation his relatives received for their work with American contractors or allied militaries. The Taliban already know, he says, that he’s part of a pro-American family. His neighbors have told him they’ve been visited by strangers asking about him.

A March 2020 ban signed by President Donald Trump, citing a need to protect the American economy, prevented Akbari and visa lottery winners from entering the U.S. In response to a lawsuit by immigration lawyers, a federal judge ruled earlier this month that the government has to move ahead on processing thousands of last year’s lottery winners. But the U.S. has told the judge it can’t even start until fall 2022 at the earliest.

Several hundred Afghans are in the group. They may be the unluckiest winners in the visa lottery’s 30-year history.

The State Department did not respond to a request for comment before publication.

The lottery isn’t open to everyone. Winners must come from a country that hasn’t had much recent immigration to the U.S. Applicants for the visas must also submit biometric information, pass an interview and medical screening, and complete several security checks.

Nouman, an Afghan lottery winner who asked that his full name not be used over fear of the Taliban, spent months tracking down police documents from the Chinese town where he’d worked for a few years, to prove he had a clean record.

Those requirements are still far less restrictive than other ways to legally immigrate to the U.S., which generally require being closely related to a citizen or green-card holder or having a job offer from an American company. In Afghanistan, interest in the lottery is so great that Nouman said it took him two days to successfully log onto the swamped website where lottery results were posted.

But unlike other visas, diversity visas — the type lottery winners become eligible to receive — are on a tight and unvarying schedule.

Lottery winners are notified in the early summer. After submitting their full application, they can only be interviewed at the nearest U.S. consulate once the federal fiscal year begins on Oct. 1. Then the whole process has to be completed within a year. Eligibility for the visa doesn’t roll over.

Usually, most of the annual 55,000 visas have been handed out by that time. But last year, two things happened. First, in mid-March, consulates around the world shut down because of the pandemic. Two weeks later, Trump declared that letting in immigrants would hamper the recovery of the economy, and he signed the order barring most types of immigrants — including diversity visa holders.

When U.S. embassies and consulates began to reopen last summer, a State Department cable disclosed as part of the lawsuit shows they were instructed to handle diversity visas last, even if they met the narrow exemptions to the ban.

Giving someone a visa is legally distinct from letting them enter the U.S., and critics of Trump’s actions — including a group of lawyers who filed lawsuits over the bans — argued that even if the ban were legal, consulates could still prepare visas so that recipients could come after the ban was rescinded, which President Joe Biden did this February.

In early September last year, Judge Amit Mehta of the U.S. District Court for the District of Columbia agreed with the argument and ordered the government to make up for lost time, prioritizing diversity visa applicants ahead of everyone else for the last 26 days of the fiscal year.

The State Department’s bureaucracy took a few days to get into gear. Then it began a process that turned out to be far from efficient.

Officials compiled a spreadsheet of applicants who had joined the now-consolidated suit and were supposed to be prioritized, but it was riddled with misspelled names and incorrect case numbers. In a court declaration, a State Department official from a different office said the spreadsheet took “many queries” from his team to fix.

Once consulates and embassies got the correct names, they rushed appointments, often giving applicants little notice. The Kabul embassy wasn’t participating at all, so any Afghan appointments were set up in different countries — or continents.

At least three Afghan immigrants, including Nouman, were scheduled for interviews in Cameroon. All three were given one day’s notice to get there. (Nouman, at least, was able to get a later appointment in Islamabad, Pakistan.)

Many more weren’t given interviews at all. According to court filings, some State Department employees told applicants who called the office handling the cases that if they hadn’t officially joined the lawsuit, “you lost your chance” — which wasn’t true. When a COVID-19 outbreak hit the office and workers went remote, the help line shut down entirely.

When the fiscal year ended on Sept. 30, 2020, more than 40,000 of the 55,000 diversity visas were still unused — and several hundred Afghans were still waiting. Less than 20% of the Afghan lottery winners had gotten visas by the deadline.

That day, Mehta had ordered the State Department to reserve 9,505 slots, based on his estimate of how many diversity visas could have been processed if COVID-19 had existed but the ban didn’t. When the case finally concluded this month, he declared that the government would indeed have to process those visas.

That opinion came down on Aug. 17, two days after Kabul fell.

In a response filed to Mehta on Thursday, the government offered to start processing last year’s visas in October 2022. One reason given for the proposed delay was that processing older visas is “an unprecedented computing demand that will require the Department to implement wide-ranging hardware and software modifications.” Another was that processing diversity visas would take resources away from dealing with the crisis in Afghanistan.

It went unmentioned that some people are affected by both.

Lawyers for the affected immigrants made an emergency filing this week, with testimony from several Afghans worried that they would be targeted by the Taliban precisely because they had sought to immigrate to the U.S. They’re hoping the court will order expedited consideration for Afghan lottery winners.

The lawyers are moving to appeal for the court to order that Afghans get priority in the visa process. The plaintiffs’ lawyers had asked the government to consent to their filing the request. The government’s response — after several days of silence, delaying the filing — was to call it an “unnecessary distraction.”

In a meeting by phone on Monday, according to two people on the call, another government attorney complained that he’d been getting emails from applicants “all over the world” and blamed their lawyers for posting his address online. One of those emails was a desperate cry for help from Akbari. “We are totally hopeless and every knock of the door seems like a call to death for us,” Akbari wrote. “Please help us.”

In the time since sending that email, Akbari and his family have made two attempts to get to Kabul’s Hamid Karzai International Airport. The first time, he says, they were beaten back by the Taliban. The second time he was stopped by the United States. The Marines guarding the airport said they couldn’t enter. The reason? They did not have visas.

Originally published on ProPublica by Dara Lind via Creative Commons

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The Only Real Socialism in the US is Corporate Welfare

Image by hafteh7 from Pixabay 

We do have socialism in this country—but it’s not Democrats’ policies. The real socialism is corporate welfare.

You may have heard Republicans in Congress rail about how the Democrats’ agenda is chock-full of scary “socialist” policies. 

We do have socialism in this country—but it’s not Democrats’ policies. The real socialism is corporate welfare. 

Thousands of big American corporations rake in billions each year in government subsidies, bailouts, and tax loopholes—all funded on the taxpayer dime, and all contributing to higher stock prices for the richest 1 percent who own half of the stock market, as well as CEOs and other top executives who are paid largely in shares of stock. 

Big Tech, Big Oil, Big Pharma, defense contractors, and big banks are the biggest beneficiaries of corporate welfare.

How? Follow the money. These corporations and their trade groups spend hundreds of millions each year on lobbying and campaign contributions. Their influence-peddling pays off. The return on these political investments is huge. It’s institutionalized bribery. 

An even more insidious example is corporations that don’t pay their workers a living wage. As a result, their workers have to rely on programs like Medicaid, public housing, food stamps and other safety nets. Which means you and I and other taxpayers indirectly subsidize these corporations, allowing them to enjoy even higher profits and share prices for their wealthy investors and executives.

Not only does corporate welfare take money away from us as taxpayers. It also harms smaller businesses that have a harder time competing with big businesses that get these subsidies. Everyone loses except those at the top. 

It’s more socialism for the rich, harsh capitalism for the rest. 

It should be ended.

I’m as sensitive as anyone to the sufferings of Afghans now, but I’ve had it with the sanctimony of journalists and pundits who haven’t thought about Afghanistan for 20 years—many of whom urged we get out—but who are now filling the August news hole with overwrought stories about Biden’s botched exit and Taliban atrocities. 

Yes, the exit could have been better planned and executed. Yes, it’s all horribly sad. But can we get a grip? The sudden all-consuming focus on Afghanistan is distracting us from hugely important stuff that’s coming to a head at home:

(1) Republican politicians and right-wing media worsening the surging Delta variant of COVID by fighting masks and vaccinations, as cities and school systems struggle to decide what to do;

(2) wildfires and floods consuming much of America, as House Democrats absurdly threaten to oppose Biden’s $3.5 trillion budget blueprint containing important measures to slow climate change;

(3) Texas on the verge of passing the nation’s most anti-democracy voting restrictions, adding to voter suppression measures in 24 other states, at the same time the “For the People Act” and the “John Lewis Voting Rights Act”—which would remedy these horrendous laws—languish in the Senate because Joe Manchin and Krysten Sinema refuse to do anything about the filibuster. 

Enough sanctimony over Afghanistan. Enough about Biden’s falling approval ratings. We’ve had enough wall-to-wall coverage of the Olympics and then Andrew Cuomo and now the airport in Kabul. Can we please focus on the biggest things that need and deserve our attention right now? The window of opportunity to do anything about them will close sooner than we expect. 

If we don’t take action now on COVID and the critical importance of vaccinations and masks, on climate change and Biden’s $3.5 trillion package, and on voter suppression and the necessity of the For the People and the John Lewis Voting Rights Acts, we may never. 

Originally published By ROBERT REICH on Common Dreams via Creative Commons


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The Day Music Dies could be Looming in Afghanistan, under the Taliban

Above: Photo ISIS / Courtesy of Twitter

Young students, teacher and faculty are staying home and currently are closing its doors of the Afghanistan National Institute of Music (ANIM) located in Kabul. 

The school has accomplished great successes in the realm of culture and arts in Afhanistan, including the all-female Zohra orchestra. Founder and Director of ANIM Ahmad Sarmast said “armed people entered school property” and have attempted to steal cars and have destroyed musical instruments.

Making music can have deadly consequences

According to the NPR report, under the Taliban rule in the 1990’s performing, selling or listening to music was strictly forbidden and could get you in serious trouble if caught. 

Yet the art of making music has always been a risky one in Afghanistan.  In the past there have been numerous musicians that have been threatened, kidnapped or even killed.

With recent explosions it is unclear whether Taliban will allow for such organizations like the institute of music to continue to exist. 

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The Latest on the Kabul Airport Attack – U.S. on heightened Alert

Above: Image by Jana from Pixabay 

According to CNN based on information from the U.S. Central Command -13 U.S. service members have been killed as a result of the explosion and another 18 were injured.

Based on reports from officials at the Afghanistan’s Ministry of Public Health that 79 Afghans were killed from blast, and over 200 Afghan citizens have been wounded and more than 170 people killed from attacks.

The attacks are believed to be carried out by ISIS-K (who claimed responsibility), an Islamic State Affiliate and a terrorist group who are enemies of the Taliban. The two militant groups have a long history of engaging in attacks on each other.

NPR reported that Press Secretary Jen Psaki said, in a statement on a briefing President Biden received, “The next few days of this mission will be the most dangerous period to date”.

Additional security and protections are being put into place in the event of another attack, which the U.S. feels is likely.

Despite threats, the U.S. will continue its evacuation mission as the race continues to get people out ahead of the August 31st deadline. Around 105,000 have been airlifted abroad in the last 12 days.

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‘Extreme Weather’ Ads Target Democrats Defending Fossil Fuel Subsidies

Above: A Climate Change Concept Image: Adobe Stock

More than two dozen advocacy groups launched “extreme weather ads” in five state newspapers on Monday to pressure right-wing Senate Democrats to stop giving taxpayer money to the oil, gas, and coal companies most responsible for the climate emergency.

“It’s time for Congress to stop taking over $15 billion from hardworking Americans and giving it to billionaire fossil fuel CEOs.”

—Anusha Narayanan, Greenpeace

Full page ads—featuring artwork from Hannah Rothstein’s 50 States of Change Collection, which depicts some of the detrimental effects U.S. residents can expect if lawmakers refuse to swiftly enact robust climate mitigation measures—have been placed in The Arizona RepublicThe Dover PostThe Billings GazetteThe Union Leader, and The Charleston Gazette-Mail, to mark the beginning of a week of action against fossil fuel subsidies.

Those five publications were chosen because they are the home-state newspapers of Democratic Sens. Mark Kelly (Ariz.), Kyrsten Sinema (Ariz.), Chris Coons (Del.), Jon Tester (Mont.), Maggie Hassan (N.H.), and Joe Manchin (W.Va.).

The coalition is targeting the six senators because of their close ties with Big Oil, which were exposed in late June when Greenpeace U.K. and the British Channel 4 Newsteamed up to release secretly recorded videos, wherein ExxonMobil lobbyists admitted that the company deliberately sowed doubt about climate science to protect fossil fuel profits and worked with several GOP lawmakers as well as conservative Democrats to undermine climate legislation.

According to the investigation, Coons, Manchin, Sinema, and Tester, along with Republican Sens. John Barrasso (Wyo.), Shelley Moore Capito (W.Va.), John Cornyn (Texas), Steve Daines (Mont.), and Marco Rubio (Fla.), have taken tens of thousands of dollars from Exxon.

Photo Credit / Hannah Rothstein

The 25 groups behind the ad campaign—including Greenpeace USA, Our Revolution, Public Citizen, the Indigenous Environmental Network, Friends of the Earth, Oxfam, Food & Water Watch, and the Sunrise Movement—noted that the federal government gives more than $15 billion in public funding to fossil fuel corporations every year.

Moreover, the Senate-passed bipartisan infrastructure billincludes up to $25 billion in potential new subsidies for the fossil fuel industry. The key author of the energy-related measures in the Infrastructure Investment and Jobs Act is Manchin, who has made more than $4.5 million from his family’s coal business since joining the Senate in 2010.

The ad campaign comes just weeks after the United Nations-sponsored Intergovernmental Panel on Climate Change released its latest report, which, in the words of Greenpeace USA climate campaign manager Anusha Narayanan, “showed the continued extraction and burning of fossil fuels will kill us all.”

“Everyone saw the video where a Big Oil lobbyist named these six Democratic senators as key to their plan to delay climate action,” Narayanan said Monday in a statement. “Members of Congress like Joe Manchin and Kyrsten Sinema have the fossil fuel industry on speed dial, while they keep the rest of us on hold. That’s a disaster for the future of the planet and its people.”

“It’s time for Congress to stop taking over $15 billion from hardworking Americans and giving it to billionaire fossil fuel CEOs,” she continued. “Despite what these companies say, subsidies don’t actually lead to jobs and most subsidies go to profits.”

Narayanan added that an amended infrastructure bill and the $3.5 trillion budget resolution, which Democratic Party leaders hope to pass through the reconciliation process, present a “once-in-a-lifetime opportunity” for Sens. Kelly, Sinema, Coons, Tester, Hassan, and Manchin “to invest in a just transition to renewable energy, racial and economic justice, and working-class communities.”

Photo Credit / Hannah Rothstein

The new ads also come as the U.S. West is suffering from an increasingly severe drought and 93 active wildfires, while the Northeast is battered by Tropical Storm Henri, and parts of the South, including North Carolina and Tennessee, are grappling with deadly flooding after being pummeled by record-breaking rainfall.

That lawmakers continue to collaborate with oil, gas, and coal companies despite dire warnings from scientists and glaring real-time evidence that fossil fuel emissions are exacerbating extreme weather events prompted Rothstein to ask: “What is wrong with our politicians?”

“Why do they continue to support Big Oil and coal when it’s clear these industries are causing natural disasters that harm everyday Americans?” Rothstein asked Monday in a statement. “California’s increasingly rampant wildfires, Texas’ unprecedented February 2021 snowstorm, and the current water shortages in Arizona, Montana, and New Mexico are only a few examples of the unshakably clear evidence that we need urgent climate action ASAP.”

“We can lessen, reverse, and prevent many of the issues depicted in 50 States of Change, but we need to act now, starting with an immediate and expedited shift away from burning fossil fuels,” she added. “This can’t be done solely on a consumer level. We need our elected officials on our side.”

In addition to being featured in the ad campaign, Rothstein’s artwork is also being used in an interactive story map, which will “underscore a state-by-state breakdown of current and future state-level impacts of the fossil fuel-driven climate crisis.” It is set to be published on Greenpeace USA’s website on Wednesday.

By KENNY STANCIL originally published on Common Dreams via Creative Commons

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U.S. Afghanistan mistakes lasted 20 Years, Read these to help prevent 20 more

Above: Photo Collage / Book Publishers

Better than the blame game: learn and try to help

There are many ways, in hindsight, to explain the seemingly sudden collapse of the local, US backed, forces in Afghanistan. Clearly also plenty of blame to go around and, obviously, huge changes are needed to prevent a repeat of this great, long tragedy.

There are some amazing people who are actively trying to help, such as STELP.eu, based in Germany, and supporting them and others can be a big first step.

Looking further ahead, perhaps now is the time, also, to do something to prevent this from repeating or continuing in the same tragic way.

A war is bad, a “forever war” is something to be prevented in any way possible. The books below, give history, thoughts and ideas, in many cases simple alternatives that could have helped to avoid this terrible outcome.

Learning the mistakes of the past, especially in Afghanistan, can only help to inform and prepare for the great challenges that still lay ahead.

The American War in Afghanistan: A History

The American War in Afghanistan: A History

One of the longest armed conflicts in our nation’s history is now winding down with American troops set to fully evacuate at the end of the month. Author Carter Malkasian writes a comprehensive and vivid portrait of the nearly two decade long war.

Malkasian is the leading academic authority on the subject, he spent years working in the Afghan countryside and later went to serve as senior advisor to General Joseph Dunford, the U.S. military commander in Afghanistan.

Learn more on “The American War in Afghanistan

The Afghanistan Papers: A Secret History of the War

The Afghanistan Papers: A Secret History of the War

The upcoming investigative story of how three presidents as well as their military commanders deceived the public about the longest war in American History.

Washington Post and three time Pulitzer Prize finalist, Craig Whitlock unearthed documents by President Bush and other administrations and provides readers with a shocking account of everything that went wrong.

This book comes out August 31, if you want to pre-order, check out more information on “The Afghanistan Papers

The Wrong Enemy: America in Afghanistan, 2001-2014

The Wrong Enemy: America in Afghanistan, 2001-2014

Starting shortly after 9/11, reporter Carlotta Gall has been on the scene, getting an inside scoop from both Afghanistan and Pakistan. With American troops now leaving, the time to reflect and learn about the full history is now.

Gall uses both personal accounts as well as portraits from ordinary Afghanis who have had to endure the terrors of war for more than a decade, she knows first hand the costs to the Afghan people.

Check out “The Wrong Enemy


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Facebook Resorted to Illegal Buy-or-Bury Scheme: FTC

photo collage by Lynxotic

Chair of the Federal Trade Commission Lina Khan posted on her Twitter the official press release of its position against Facebook.

Pulling no punches the language of the filing leaves no doubt as to the direction of the FTC going forward in this case. Illegal, Bribery, “Buy-or-Bury Scheme” these are characterizations that go to the heart of anticompetitive and monopolistic behavior of the giant. FTC Bureau of Competition Acting Director, Holly Vedova, said ““This conduct is no less anticompetitive than if Facebook had bribed emerging app competitors not to compete. The antitrust laws were enacted to prevent precisely this type of illegal activity by monopolists.”

While The Federal Trade Commission’s mandate has traditionally been “to promote competition and protect and educate consumers” the attempt by big tech to appear “helpful” to consumers with hidden costs and deflated pricing is finally at issue with Kahn in the chair. Khan’s famous 2017 article; “Amazon’s Antitrust Paradox“ helped to re-define a new direction for antitrust law for the digital age, which appears to be in the early stages of fulfillment at the agency under her leadership.

As described in the amended case, upon Facebook starting out as an open space for third party developers, the company quickly reversed (pulling a bait-and-switch) by requiring developers to terms that would have prevented successful applications from emerging as competitive threats to the company.

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‘Hard to Imagine Worse Idea’: Biden to Resume Fossil Fuel Leases on Public Lands and Waters

Photo by Chris LeBoutillier on Unsplash

“The president made a promise to ban all new oil and gas leasing on public lands and waters,” said Greenpeace, “and the American people expect him to keep it.”

Climate groups are expressing deep concern following an Interior Department announcement Monday that the Biden administration will resume oil and gas drilling leases on public lands and waters—a practice President Joe Biden vowed to ban during his 2020 run for the White House—in response to a federal court ruling.

“The climate emergency reality we are facing demands immediate action, not acquiescence.”

—Nicole Ghio, Friends of the Earth

While the Biden administration confirmed in its announcement that an appeal has been filed with the 5th Circuit Court of Appeals in a legal battle with the state of Louisiana—which sued the federal government over the pause in the oil and gas leasing program ordered by Biden earlier this year—the Interior Department said leasing would resume while the process plays out.

“Federal onshore and offshore oil and gas leasing will continue as required by the district court while the government’s appeal is pending,” the DOI stated.

According to Bloomberg, the moves by the administration “mark the beginning of an open-ended analysis of the federal oil, gas and coal leasing programs that could span years—and lead to higher fees as well as new limits on development in sensitive areas.”

While environmental advocacy groups commended the administration for appealing the lower court ruling—handed down by a Trump-appointed U.S. district court judge in June—they also said the threat of resuming the leasing program on federal lands and for offshore drilling cannot be overstated.

“Our planet can’t afford any more new fossil fuel extraction,” said Taylor McKinnon, a senior campaigner with the Center for Biological Diversity, in a statement on Tuesday. “We’re out of time. The world’s existing oil and gas fields will already push warming past 1.5 degrees Celsius if they’re fully developed.”

Robert Weissman, president of Public Citizen, said in respsonse that with “the climate crisis smacking us in the face at every turn, it’s hard to imagine a worse idea than resuming oil and gas drilling on federal lands. As has been documented in long and excruciating detail, oil and gas drillers have trashed public lands and failed to clean up their mess—while siphoning public resources for a relative pittance.”

As the appeals process plays out, the Biden administration said it will perform a new analysis of the regulatory framework that governs leasing and extraction operations on federal lands as well as hold oil and gas companies to account under existing authorities and guidelines.

“We’re out of time. The world’s existing oil and gas fields will already push warming past 1.5 degrees Celsius if they’re fully developed.”

—Taylor McKinnon, Center for Biological Diversity

“It’s encouraging that the Biden administration is appealing this wrongful decision,” said Nicole Ghio, senior fossil fuels program manager at Friends of the Earth. “However, the president made a promise to ban all new oil and gas leasing on public lands and waters, and the American people expect him to keep it. The climate emergency reality we are facing demands immediate action, not acquiescence.”

Mary Greene, public lands attorney for the National Wildlife Federation, urged the Interior Department to act aggressively but also said that Congress must get off the sidelines on the issue.

“While the Biden administration responds to the court, we urge the Department of Interior to issue its reform initiatives so that the outdated leasing system is modernized for the benefit of our public lands, wildlife, and all Americans,” Greene said. “But administrative actions alone cannot solve this problem. Congress must also swiftly take action to update our hundred-year-old leasing law so that our nation can transition to the clean energy economy that we all need and deserve.”

Given the recent IPCC report which argues that global emissions must be urgently reduced, climate action advocates said the administration cannot be allowed to walk away from its commitment to end oil and gas development on federal lands.

“Last week’s IPCC report outlined the grisly risks that fossil fuels pose to people and the planet,” said Tim Donaghy, senior research specialist with Greenpeace USA. “The International Energy Agency (IEA) has clearly said there can be no new fossil fuel projects if we are to stand any chance at limiting the climate chaos.”

A complete and final end of drilling on U.S. public lands and in offshore waters, said Donaghy, “is an essential part of any effective climate plan.” Along with others in the climate just movement, he said there remain many avenues for Biden “to consider in reforming leasing and we urge him to do everything he can to keep fossil fuels in the ground.”

By JON QUEALLY originally published on Common Dreams via Creative Commons

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One Year of Afghanistan War Spending Could Fund Resettlement of 1.2 Million Refugees

Image by Amber Clay from Pixabay 

“We’ve spent billions on war. Now, let’s spend to bring Afghans to safety.”

As the Biden administration faces criticism for not doing enough to assist those fleeing Afghanistan, an analysis released Monday showed that the roughly $19 billion the Pentagon budgeted for the U.S. occupation of the country in 2020 alone could cover initial resettlement costs for 1.2 million refugees.

“We have a duty to save lives—and to do so, we must welcome many, many more refugees as quickly as possible.”

—Rep. Cori Bush

Lindsay Koshgarian of the National Priorities Project estimated that the $18.6 billion the Pentagon allocated for its 2020 operations in Afghanistan—where the Taliban is in the process of retaking powerafter two decades of deadly U.S. occupation—could pay up-front refugee relocation costs of $15,148 for the more than “250,000 Afghans displaced since the end of May (and growing)” and “a significant chunk of the 3.5 million Afghans who were internally displaced as of July.”

“Refugees typically receive some assistance after their arrival, but even if we expanded to cover an additional four years of the approximately $4,600 in annualized social service aid that refugees typically receive, we could still resettle more than half a million people, for just one year’s worth of the cost of fighting,” Koshgarian noted. “We’d face even lower costs to help resettle Afghans in countries closer to home—all the more reason after 20 years of war to step up with some serious resources and get it done.”

“After twenty years,” she added, “we owe the Afghan people at least that much.”

The analysis came as progressive lawmakers in the U.S. and global humanitarian organizations implored the Biden administration to open the U.S. to vulnerable Afghans attempting to escape a growing humanitarian crisis and Taliban rule. According to the United Nations Refugee Agency, 80% of those currently trying to flee Afghanistan are women and children.

In a speech on Monday, U.S. President Joe Biden said that “in the coming days, the U.S. military will provide assistance to move more [Special Immigrant Visa]-eligible Afghans and their families out of Afghanistan.” The Pentagon confirmedMonday that it is planning to house up to 22,000 Afghans at two U.S. bases—Fort Bliss in Texas and Fort McCoy in Wisconsin.

“We’re also expanding refugee access to cover other vulnerable Afghans who worked for our embassy: U.S. non-governmental agencies—or the U.S. non-governmental organizations; and Afghans who otherwise are at great risk; and U.S. news agencies,” the president added.

Following his remarks, Biden directed the U.S. State Department to use up to $500 million from the nation’s Emergency Refugee and Migration Assistance Fund to meet “unexpected urgent refugee and migration needs of refugees, victims of conflict, and other persons at risk as a result of the situation in Afghanistan, including applicants for Special Immigrant Visas.”

But critics have accused the Biden administration of failing to adequately plan for the rapid collapse of the Afghan government that followed the ongoing withdrawal of U.S. forces from the country—a still-deteriorating situation that has left countless people in limbo as they seek safety for themselves and their families.

In his speech Monday, Biden claimed the administration didn’t begin evacuating at-risk civilians sooner “because the Afghan government and its supporters discouraged us from organizing a mass exodus to avoid triggering, as they said, ‘a crisis of confidence.'”

Earlier this month, the U.S. State Department expanded eligibility for the Special Immigrant Visa (SIV) program, opening it to tens of thousands of Afghans who worked for U.S. government contractors, U.S.-based media outlets, and U.S.-based non-governmental organizations. The families of eligible Afghans also have access to the program, whose application process consists of an arduous 14 steps.

And as the Wall Street Journal observed on Monday, the program excludes the poorest Afghans by design. “To claim refugee status,” the Journal noted, “the Afghans must enter through a third country and cover the costs of travel and lodging on their own—a hurdle that is nearly impossible to surmount under the current, chaotic circumstances.”

In a letter to Biden on Monday, the advocacy organization Refugees International called on the administration to “express its willingness initially to resettle up to 200,000 Afghan refugees, as part of an international responsibility-sharing effort to rescue and resettle Afghans at risk.”

“While most would be resettled from countries of asylum,” the group wrote, “a program ultimately could involve direct resettlement from Afghanistan, akin to the Orderly Departure program that resulted in the resettlement of many hundreds of thousands of Vietnamese directly from their country of origin.”

Rep. Cori Bush (D-Mo.), part of a chorus of progressive lawmakers pushing Biden to do more to welcome refugees—in addition to ending the interventionist foreign policy approach that creates such humanitarian crises—noted in a tweetMonday that the U.S. “welcomed 120,000 refugees in a single year” in the aftermath of the Vietnam War.

“Yet the United States has only taken in ~2,000 Afghan refugees thus far,” Bush wrote. “We have a duty to save lives—and to do so, we must welcome many, many more refugees as quickly as possible.”

By JAKE JOHNSON originally published on Common Dreams via Creative Commons.

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Inspector General Urges Ethics Review at Federal Election Commission Following ProPublica Report

Above: Photo Collage / Lynxotic

The FEC’s inspector general has called for the agency to review its policies and internal controls after ProPublica revealed a key employee’s undisclosed ties to Trump.

The inspector general for the Federal Election Commission is calling on the agency to review its ethics policies and internal controls after a ProPublica investigation last year revealed that a senior manager openly supported Donald Trump and maintained a close relationship with a Republican attorney who went on to serve as the 2016 Trump campaign’s top lawyer.

The report by ProPublica raised questions about the impartiality of the FEC official, Debbie Chacona, a civil servant who oversees the unit responsible for keeping unlawful contributions out of U.S. political campaigns. The division’s staffers are supposed to adhere to a strict ethics code and forgo any public partisan activities because such actions could imply preferential treatment for a candidate or party and jeopardize the commission’s credibility.

In its findings, the inspector general said Chacona, head of the FEC’s Reports Analysis Division, or RAD, did not improperly intervene in a review of the Trump inaugural committee’s fundraising and acted “consistent with relevant law and policy” by allowing career analysts to handle the filings.

But the inspector general said “it is important to address the ethical principle that federal employees should avoid even the appearance of impropriety.” It added that the FEC’s “unique mission raises heightened concerns when allegations of personal or political bias are raised against FEC senior personnel that could undermine the public’s confidence in the agency” and recommended the commission “evaluate the current agency policies on ethical behavior and update them, as may be appropriate.”

Chacona displayed her support for Trump in Facebook posts, including one in which she posed with her family around a “Make America Great Again” sign at Trump’s January 2017 inaugural. Separately, emails obtained by ProPublica showed that she also consulted regularly on matters personal and professional with the Republican lawyer, Donald McGahn, when he was an FEC commissioner from 2008 to September 2013.

After Trump’s election, the fundraising practices of his inaugural committee prompted complaints that the FEC failed to properly examine contributions. As head of RAD, Chacona signed off on amended filings by the committee intended to address some of those complaints even though the revised reports continued to list problematic donations, including ones from donors whose addresses didn’t exist in public records.

The 300-employee FEC is an independent regulatory agency that was created by Congress to enforce campaign finance law. It is headed by six presidentially appointed commissioners, four of whom must vote together for the agency to take any official action, a requirement that was meant to bolster nonpartisan compromise but has resulted in chronic gridlock.

The inspector general also took issue with the way the FEC regulates presidential inaugural committees, which are nonprofit entities separate from campaign committees. Trump’s inaugural committee raised a record-breaking $107 million from more than 1,000 contributors. Its initial disclosure report was 510 pages.

The inspector general found that unlike with campaign committees, FEC policy confers “broad, subjective discretion to the RAD senior manager to determine what potential violations of law warrant further inquiry” when it comes to inaugural committees. It called such a standard “ill-defined and subjective,” cautioning that it could create “a reasonable likelihood of inconsistent results and arbitrary or capricious application (in fact or appearance).”

The inspector general also said that unlike political committees, which file their reports to the FEC electronically, inaugural committee disclosure reports are filed on paper to the commission and then manually reviewed by agency staffers — a system the inspector general said was “antiquated and lacks adequate internal controls.”

Asked what the agency has done to address the appearance of a conflict of interest at RAD and whether the agency planned on adopting any of the inspector general recommendations, an FEC spokesperson declined to comment.

McGahn, who was appointed White House counsel after serving as the Trump campaign’s top lawyer, now heads the government regulations group at the law firm Jones Day. He did not respond to messages seeking comment; in a response for the earlier ProPublica story, he said he doesn’t comment on “nonsense.” Chacona did not respond to a message seeking comment. A spokesperson for Trump’s inaugural committee didn’t return a message seeking comment.

The inspector general said that it interviewed FEC lawyers and RAD staffers, and that it obtained and reviewed agency records to conduct its inquiry. Commissioners were notified of the investigators’ findings at the end of July.

With its unprecedented haul and its questionable outlays, Trump’s inaugural committee drew swift attention from journalists and regulators. The Washington, D.C., attorney general has sued the committee, accusing it of enriching the Trump family business by spending lavishly at Trump-owned properties, claims the committee has denied in court papers. Separately, federal prosecutors subpoenaed the committee’s donor records as part of an inquiry into illegal contributions made by foreign nationals.

Both inaugural and political committees are prohibited from accepting contributions from foreign nationals. But Trump’s inaugural committee included in its disclosure reports donations from contributors outside the U.S., and RAD relied on the word of the committee that the donors were indeed U.S. citizens, the inspector general report found. Investigators took issue with that practice. They noted that RAD’s policy of accepting a committee’s “self-certification” wasn’t memorialized in any policy, and they recommended that the division set a threshold when such a contribution would trigger further inquiry to independently verify the source of the money.

Fred Wertheimer, whose advocacy group Democracy 21 helped file a 2017 FEC complaint against Trump’s inaugural committee, which the agency’s general counsel later dismissed, said the head of RAD should have recused herself from overseeing the committee’s filings.

“In my view Ms. Chacona had a clear appearance of conflict and never should’ve gone anywhere near the inaugural committee’s report,” said Wertheimer, who was derided by Chacona and McGahn in the email exchanges obtained by ProPublica.

by Jake Pearson for ProPublica, via Creative Commons [Creative Commons License (CC BY-NC-ND 3.0)]. ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

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Peter Thiel’s $5 Billion Bombshell: Hubris and Hypocrisy Beyond all Imagining

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ProPublica drops a second monumental article based on treasure trove of IRS, SEC & court data

Excellent reporting of tax injustices among the obscenely rich continues with a huge and revelatory piece on Peter Thiel and his “little” Roth IRA scheme. Going well beyond the previous article that detailed how Bezos, Musk, Buffet and others all use loans secured with share holdings to avoid income, and thus avoid paying tax the “Lord of the Roths” is even more explosive.

While the emphasis of the article on Thiel’s Roth IRA takes on the task of trying to somehow compare an “average” investor’s potential gains with the unimaginable magnitude of Thiel’s windfall, this is something that makes sense as a valid perspective, but the obscenity is nearly lost in the opaque fog of numbers beyond comprehension.

For example: your Peter is basically gifted 1.7 million shares by the company he was one of the founders of (along with Elon Musk and the rest of the so called “PayPal Mafia). That “purchase” costing less than $2000 based on the ridiculous price of $0.001 per share was used to found a Roth IRA.

The engineered numbers were no accident: at the time, in 1999, a Roth IRA account had a maximum allowable contribution amount of $2,000. Since the shares were “below fair value”, the fact of which was admitted by PayPal in an SEC filing from the time just before the company went public, the value increased massively, by 227,490% in the first year. Which increased the value of the paltry $2k up to $3.8 million.

Though obviously not enforced, regulations at the time forbade this kind of “stuffing”. Meaning, the initial trade that launched this scheme was possibly illegitimate, if not unlawful. Or, as ProPublica more kindly phrased it: “Investors aren’t allowed to buy assets for less than their true value through an IRA. “

As a matter of fact, according to the article, the “stuffing” was so successful that no further contributions were ever made into the account after that initial 1999 sum.

Since a Roth IRA allows a person to trade stocks within the account tax free, as long as no withdrawals are made, this large but still comprehensible sum was the start of a 20 year use of the tax statutes to build a fortune of over $5 billion without paying a single penny in tax.

Hitting $870 million in value by 2008, by 2019 the tax free enterprise, built on the less than $2000 initial contribution (stock “purchase”), ultimately ballooned to 96 sub-accounts with holdings of $5 billion.

Ok, so that’s the short summary of the mind blowing numbers. For a more detailed account, by all means visit the original article.

The numbers are outrageous, but the entitlement and arrogance is on a whole other level

The part of the story that should spark outrage is not in the numbers but begins where the almost inhuman greed, hubris and hypocrisy at this good fortune grows apace with the size of the tax free bonanza. Because Peter Tiel is not just any run-of-the-mill untaxed billionaire.

The endlessly expanding windfall he received, tax free, did not engender a mindset of charity or gratefulness at his miraculous providence.

Above: Photo Collage / Lynxotic

Instead Thiel, once the wealth lent him a position of power, preached and pushed the idea that the US government, the same one that he was able to avoid paying taxes to, was guilty of over-taxing people like him (and poor people too).

He spent millions of dollars in an effort to influence Republican politicians and groups that have anti-tax agendas, to change the laws in ways that would add even more advantages to his already preposterously privileged position. Then this: as per ProPublica: “In 2016, he became the rare Silicon Valley titan to endorse Donald Trump.”

And, in an arrogance that is as incomprehensible as the size his effortlessly expanding fortune, he espouses the belief that people like him are entitled to these kind of spoils because, after all, without him we might have to live without PayPal and….wait for it…. Facebook.

Yes, you heard that right. In 2004, Thiel used his IRA to buy $500,000 worth of shares in a, then private, company called Facebook, which was the first big outside investment in Zuckerberg’s soon to be massive monstrosity.

By using his IRA funds to buy shares of the start-up he was able to avoid tax on all the future gains of those shares. (ProPublica, in excellent investigative reporting, uncovered this tidbit by combing though Facebook court documents).

So, again, ostensibly, based on his well known statements, we are not only to congratulate him on his clever method of avoiding any taxation whatsoever on the first gambit with the PayPal shares, but we ought to effusively thank him for helping Facebook to become the dangerous purveyor of surveillance and phantom tollbooth Ponzi empire that is it today?

In perhaps one of the greatest illustrations of how power corrupts, this idea that because he was able to amass a fortune on such a massive scale without the burden of any tax whatsoever, he is somehow a hero to be emulated, is the real reason for us to be outraged.

That an average person might be lucky to turn $2000 into $250,000 over two decades, as was illustrated in detail in the article, while Thiel easily turned it into $5 billion, is outrageous, yes.

But the real “crime” is that it was done with zero benefit to anyone except him and other Silicon Valley insiders at companies like PayPal and Facebook.

Could it be argued that Facebook is a gift to humanity? Well, in 2021 that would be a tough argument to put forth without being laughed out of the room. And PayPal? It’s doubtful that Satoshi Nakamoto has to fear competition from any of the PayPal Mafia (including Mr. Musk) when the crown for greatest financial innovator of the century is awarded.

In a revelation that could have received more page inches, the article also exposes a second, possibly more plausible reason, regarding why Thiel went to great lengths to bankrupt Gawker Media, which he blamed for outing him as Gay. That politically convenient motivation could very well have covered up the real reason:

Again, as per ProPublica:

“In a story headlined, “Give Me Liberty or Give Me Taxpayer Money,” Gawker Media, citing anonymous sources, revealed that Thiel held his Facebook investment in a tax-free Roth.”

Companies built on greed and hubris create nothing and, in the end, die

Thiel believes he will live to be 120 years old. Based on his comments and writings he appears to believe that the world would benefit from that eventuality.

But when looking at the companies he helped to build, and the obscene fortune he was rewarded with for binging them into being, it seems like most of us, after accessing his life’s works and “accomplishments”, would be more thankful for the improbability of that dream coming true.

2087? That will be the year that either Utopia or Oblivion will have arrived for humanity and the planet earth. If by a miracle an earthly Utopia comes to be, it is highly unlikely that PayPal, Facebook or Mr. Thiel will have had any hand in bringing it about.

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Apple’s free upgrades are Inviting you into the Metaverse: iOS15 – macOS Monterey & iPadOS15

Above:Photo Credit – Apple / Lynxotic

Sci-fi sounding, inevitable upgrade for today’s online communications

You might have heard lately about the “metaverse” and yet that can mean a variety of different things to different people. Often, it’s a term that relates back to gaming and 3D augmented reality enhancements of networked communications.

There are even crypto and blockchain related projects using this term and concept. While all of these various factors are welcome, and potentially part of this next phase of convergence of communication via networked technology, there’s something else happening under the surface.

”The pandemic, with its requirements of physical distancing, has brought people into online digital environments for a growing range of shared human experiences.” — Wired UK from “The Metaverse is coming” by David Baszucki

The acceleration in AI application, machine learning, and converging use cases for all communications tech has created a situation where the entry-portal to the emerging metaverse is already here.

One often overlooked aspect of a transition to a more complete digital life is the need for humans to have adapted to the need and potential benefits of the idea. This is what is happening via many routes, including Apple and the constant synergistic upgrade cycles that have just gone into a new, bigger phase with the migration to a unified OS structure built around Apple Silicon.

The gradual increases in iOS functionality and user sophistication are changing how we interact

iOS15, previewed this week at the WWDC2021 is rolling out literally dozens of new features, many based on machine learning, neural networks and AI that propose a new level of highly sophisticated options to communicate with video, photos and text.

While this mixture of “basic” media has been the staple of our current modes of online communication, particularly via social media, the incredibly increased depth of new options and functionality of iOS15 and iPadOS15 and MacOS Monterey will make all modes of communication feel completely new.

In the evolution of online media and enriched communication (OMEC to coin an 80s sounding acronym) the slow and uneven progress is based on many factors. #1 is always user adoption and sophistication.

Second is the quality of the hardware devices and software upgrades each user around the world has access to. In the case of iOS (iPad, iPhone & macOS) the immediate adoption of upgrades is a large factor on the plus side, helping new innovation to arrive in general use more quickly.

The last factor, a huge one, is access to fast ubiquitous internet data connections, and, in the US at least, this is less consistent than ever (or our expectations are rising faster than the build out).

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However, particularly in Asia, 5g is beginning to make a dent. Satellite broadband, like Starlink, should also start to be a factor as early as 2022. Government infrastructure build-out funding and subsidies in the US is on the way in 2021.

Augmented 3D features are still growing but will merge with 2D

The upshot of this topic is that “2D” factors and increasingly sophisticated manipulation and interactive features that are already coming in iOS15 will bring us all closer the entry-portal stone-age version of the metaverse.

We all depend more and more on communications and using our devices – work from home, personal, business and hybrid activities (such as the emerging content creator class). Often, as a result, we have fewer options to go offline for “organic” RL (real life) interactions.

The increasingly sophisticated capabilities available are beginning to make even face to face communications, particularly in work situations, feel “un-enhanced” as we become accustomed to and dependent on the digital enhancements and potential of a full media rich interaction.

This is an example, one could say, of the subtle encroachment of the emerging metaverse onto the “real world” and how the boundaries are blurring and even beginning to disappear.

Rather than a sudden “jump” into a metaverse, similar to the cliché sci-fi plots from films like “Ready Player 1”, what is happening is a nearly imperceptible transition to metaverse-like experiences that will become commonplace, initially in a primitive form, and then eventually become the norm. Similar to the proverbial Frog in pot, with warm water temperatures that increase so slowly that the Frog doesn’t even notice, until it finds that it is swimming in pot that is already boiling.

The misconception that a “killer app” or sudden shift into an online, virtual reality world, is the future, and that a big leap will happen nearly all at once, is harmlessly superimposed on the real transition that has already begun.

When Apple’s 2007 launch of the iPhone changed communication forever: the journey began

The new “Digital Legacy Program”, also announced at WWDC2021, is another hint that we are already living in an extremely primitive version of the metaverse. Our online identity, data, and even behaviors and experiences are so essential and all pervasive that it has become necessary to keep a digital key to access the huge trove of personal data we will leave behind to pass on to our living loved ones, after we are gone.

The metaverse, that means, is not only creating a parallel digital universe for us to live in, in an ever more complete and sophisticated way, but we are also already setting up the eternal storage of our virtual life experiences to be passed down to future generations.

Though nearly invisible while in such a relatively primitive iteration, the concept, an example of overlapping advancements in innovation, is a tiny step towards digital immortality.

The metaverse could help to save us all

It’s not just professional and work related communication that relates to the gradual increase in the depth of networked communication options, but, even more so, casual and leisure communication and interaction is key.

TikTok and other video communication trends are at the forefront of of user evolution and metaverse activity expansion. When people feel motivated to find new and better ways to communicate using richer media and augmented techniques for fun, and to gain more recognition in online societies, that advances digital sophistication.

This process of the evolution of user comfort and sophistication, while existing and interacting in the metaverse, is the fastest way for the augmentation to become more effective.

There’s a mostly unseen benefit and need for this, otherwise seemingly pointless, global development

The challenges that the world faces, encroaching, devastating fallout from global warming and excess carbon in the atmosphere, political corruption and inequality, disinformation and cybercrime, and so on.

Ultimately, unlike at any time in human history, we are facing a challenge. The survival of our species and even the planet are at stake.

In the years and decades to come it will become more and more obvious that there are only two paths possible. One path toward a kind of Utopia, or another one that will lead, inexorably to Oblivion.

Though the metaverse is scary in many ways, and does not always appear as a way to a better life, augmented and enhanced communication is one of the most desperately needed ways that solutions could eventually be discovered and implemented.

And that would put this progression and evolution of tech more in service of Utopia, and could be at the heart of a rescue plan to prevent Oblivion, before it’s too late.

https://www.apple.com/newsroom/videos/universal-control/Apple-Universal-Control-cc-us-_1280x720h.mp4
Above: Craig Federighi Demo Video at WWDC 2021


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The Secret IRS Files: Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax

by Jesse Eisinger, Jeff Ernsthausen and Paul Kiel

Series:
The Secret IRS Files
Inside the Tax Records of the .001%

This story was originally published by ProPublica.

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

In 2007, Jeff Bezos, then a multibillionaire and now the world’s richest man, did not pay a penny in federal income taxes. He achieved the feat again in 2011. In 2018, Tesla founder Elon Musk, the second-richest person in the world, also paid no federal income taxes.

Michael Bloomberg managed to do the same in recent years. Billionaire investor Carl Icahn did it twice. George Soros paid no federal income tax three years in a row.

ProPublica has obtained a vast trove of Internal Revenue Service data on the tax returns of thousands of the nation’s wealthiest people, covering more than 15 years. The data provides an unprecedented look inside the financial lives of America’s titans, including Warren Buffett, Bill Gates, Rupert Murdoch and Mark Zuckerberg. It shows not just their income and taxes, but also their investments, stock trades, gambling winnings and even the results of audits.

Taken together, it demolishes the cornerstone myth of the American tax system: that everyone pays their fair share and the richest Americans pay the most. The IRS records show that the wealthiest can — perfectly legally — pay income taxes that are only a tiny fraction of the hundreds of millions, if not billions, their fortunes grow each year.

Many Americans live paycheck to paycheck, amassing little wealth and paying the federal government a percentage of their income that rises if they earn more. In recent years, the median American household earned about $70,000 annually and paid 14% in federal taxes. The highest income tax rate, 37%, kicked in this year, for couples, on earnings above $628,300.

The confidential tax records obtained by ProPublica show that the ultrarich effectively sidestep this system.

America’s billionaires avail themselves of tax-avoidance strategies beyond the reach of ordinary people. Their wealth derives from the skyrocketing value of their assets, like stock and property. Those gains are not defined by U.S. laws as taxable income unless and until the billionaires sell.

To capture the financial reality of the richest Americans, ProPublica undertook an analysis that has never been done before. We compared how much in taxes the 25 richest Americans paid each year to how much Forbes estimated their wealth grew in that same time period.

We’re going to call this their true tax rate.

The results are stark. According to Forbes, those 25 people saw their worth rise a collective $401 billion from 2014 to 2018. They paid a total of $13.6 billion in federal income taxes in those five years, the IRS data shows. That’s a staggering sum, but it amounts to a true tax rate of only 3.4%.

It’s a completely different picture for middle-class Americans, for example, wage earners in their early 40s who have amassed a typical amount of wealth for people their age. From 2014 to 2018, such households saw their net worth expand by about $65,000 after taxes on average, mostly due to the rise in value of their homes. But because the vast bulk of their earnings were salaries, their tax bills were almost as much, nearly $62,000, over that five-year period.

No one among the 25 wealthiest avoided as much tax as Buffett, the grandfatherly centibillionaire. That’s perhaps surprising, given his public stance as an advocate of higher taxes for the rich. According to Forbes, his riches rose $24.3 billion between 2014 and 2018. Over those years, the data shows, Buffett reported paying $23.7 million in taxes.

That works out to a true tax rate of 0.1%, or less than 10 cents for every $100 he added to his wealth.

In the coming months, ProPublica will use the IRS data we have obtained to explore in detail how the ultrawealthy avoid taxes, exploit loopholes and escape scrutiny from federal auditors.

Experts have long understood the broad outlines of how little the wealthy are taxed in the United States, and many lay people have long suspected the same thing.

But few specifics about individuals ever emerge in public. Tax information is among the most zealously guarded secrets in the federal government. ProPublica has decided to reveal individual tax information of some of the wealthiest Americans because it is only by seeing specifics that the public can understand the realities of the country’s tax system.

Consider Bezos’ 2007, one of the years he paid zero in federal income taxes. Amazon’s stock more than doubled. Bezos’ fortune leapt $3.8 billion, according to Forbes, whose wealth estimates are widely cited. How did a person enjoying that sort of wealth explosion end up paying no income tax?

In that year, Bezos, who filed his taxes jointly with his then-wife, MacKenzie Scott, reported a paltry (for him) $46 million in income, largely from interest and dividend payments on outside investments. He was able to offset every penny he earned with losses from side investments and various deductions, like interest expenses on debts and the vague catchall category of “other expenses.”

In 2011, a year in which his wealth held roughly steady at $18 billion, Bezos filed a tax return reporting he lost money — his income that year was more than offset by investment losses. What’s more, because, according to the tax law, he made so little, he even claimed and received a $4,000 tax credit for his children.

His tax avoidance is even more striking if you examine 2006 to 2018, a period for which ProPublica has complete data. Bezos’ wealth increased by $127 billion, according to Forbes, but he reported a total of $6.5 billion in income. The $1.4 billion he paid in personal federal taxes is a massive number — yet it amounts to a 1.1% true tax rate on the rise in his fortune.

The revelations provided by the IRS data come at a crucial moment. Wealth inequality has become one of the defining issues of our age. The president and Congress are considering the most ambitious tax increases in decades on those with high incomes. But the American tax conversation has been dominated by debate over incremental changes, such as whether the top tax rate should be 39.6% rather than 37%.

ProPublica’s data shows that while some wealthy Americans, such as hedge fund managers, would pay more taxes under the current Biden administration proposals, the vast majority of the top 25 would see little change.

The tax data was provided to ProPublica after we published a series of articles scrutinizing the IRS. The articles exposed how years of budget cuts have hobbled the agency’s ability to enforce the law and how the largest corporations and the rich have benefited from the IRS’ weakness. They also showed how people in poor regions are now more likely to be audited than those in affluent areas.

ProPublica is not disclosing how it obtained the data, which was given to us in raw form, with no conditions or conclusions. ProPublica reporters spent months processing and analyzing the material to transform it into a usable database.

We then verified the information by comparing elements of it with dozens of already public tax details (in court documents, politicians’ financial disclosures and news stories) as well as by vetting it with individuals whose tax information is contained in the trove. Every person whose tax information is described in this story was asked to comment. Those who responded, including Buffett, Bloomberg and Icahn, all said they had paid the taxes they owed.

A spokesman for Soros said in a statement: “Between 2016 and 2018 George Soros lost money on his investments, therefore he did not owe federal income taxes in those years. Mr. Soros has long supported higher taxes for wealthy Americans.” Personal and corporate representatives of Bezos declined to receive detailed questions about the matter. ProPublica attempted to reach Scott through her divorce attorney, a personal representative and family members; she did not respond. Musk responded to an initial query with a lone punctuation mark: “?” After we sent detailed questions to him, he did not reply.

One of the billionaires mentioned in this article objected, arguing that publishing personal tax information is a violation of privacy. We have concluded that the public interest in knowing this information at this pivotal moment outweighs that legitimate concern.

The consequences of allowing the most prosperous to game the tax system have been profound. Federal budgets, apart from military spending, have been constrained for decades. Roads and bridges have crumbled, social services have withered and the solvency of Social Security and Medicare is perpetually in question.

There is an even more fundamental issue than which programs get funded or not: Taxes are a kind of collective sacrifice. No one loves giving their hard-earned money to the government. But the system works only as long as it’s perceived to be fair.

Our analysis of tax data for the 25 richest Americans quantifies just how unfair the system has become.

By the end of 2018, the 25 were worth $1.1 trillion.

For comparison, it would take 14.3 million ordinary American wage earners put together to equal that same amount of wealth.

The personal federal tax bill for the top 25 in 2018: $1.9 billion.

The bill for the wage earners: $143 billion.

The idea of a regular tax on income, much less on wealth, does not appear in the country’s founding documents. In fact, Article 1 of the U.S. Constitution explicitly prohibits “direct” taxes on citizens under most circumstances. This meant that for decades, the U.S. government mainly funded itself through “indirect” taxes: tariffs and levies on consumer goods like tobacco and alcohol.

With the costs of the Civil War looming, Congress imposed a national income tax in 1861. The wealthy helped force its repeal soon after the war ended. (Their pique could only have been exacerbated by the fact that the law required public disclosure. The annual income of the moguls of the day — $1.3 million for William Astor; $576,000 for Cornelius Vanderbilt — was listed in the pages of The New York Times in 1865.)

By the late 19th and early 20th century, wealth inequality was acute and the political climate was changing. The federal government began expanding, creating agencies to protect food, workers and more. It needed funding, but tariffs were pinching regular Americans more than the rich. The Supreme Court had rejected an 1894 law that would have created an income tax. So Congress moved to amend the Constitution. The 16th Amendment was ratified in 1913 and gave the government power “to lay and collect taxes on incomes, from whatever source derived.”

In the early years, the personal income tax worked as Congress intended, falling squarely on the richest. In 1918, only 15% of American families owed any tax. The top 1% paid 80% of the revenue raised, according to historian W. Elliot Brownlee.

But a question remained: What would count as income and what wouldn’t? In 1916, a woman named Myrtle Macomber received a dividend for her Standard Oil of California shares. She owed taxes, thanks to the new law. The dividend had not come in cash, however. It came in the form of an additional share for every two shares she already held. She paid the taxes and then brought a court challenge: Yes, she’d gotten a bit richer, but she hadn’t received any money. Therefore, she argued, she’d received no “income.”

Four years later, the Supreme Court agreed. In Eisner v. Macomber, the high court ruled that income derived only from proceeds. A person needed to sell an asset — stock, bond or building — and reap some money before it could be taxed.

Since then, the concept that income comes only from proceeds — when gains are “realized” — has been the bedrock of the U.S. tax system. Wages are taxed. Cash dividends are taxed. Gains from selling assets are taxed. But if a taxpayer hasn’t sold anything, there is no income and therefore no tax.

Contemporary critics of Macomber were plentiful and prescient. Cordell Hull, the congressman known as the “father” of the income tax, assailed the decision, according to scholar Marjorie Kornhauser. Hull predicted that tax avoidance would become common. The ruling opened a gaping loophole, Hull warned, allowing industrialists to build a company and borrow against the stock to pay living expenses. Anyone could “live upon the value” of their company stock “without selling it, and of course, without ever paying” tax, he said.

Hull’s prediction would reach full flower only decades later, spurred by a series of epochal economic, legal and cultural changes that began to gather momentum in the 1970s. Antitrust enforcers increasingly accepted mergers and stopped trying to break up huge corporations. For their part, companies came to obsess over the value of their stock to the exclusion of nearly everything else. That helped give rise in the last 40 years to a series of corporate monoliths — beginning with Microsoft and Oracle in the 1980s and 1990s and continuing to Amazon, Google, Facebook and Apple today — that often have concentrated ownership, high profit margins and rich share prices. The winner-take-all economy has created modern fortunes that by some measures eclipse those of John D. Rockefeller, J.P. Morgan and Andrew Carnegie.

In the here and now, the ultrawealthy use an array of techniques that aren’t available to those of lesser means to get around the tax system.

Certainly, there are illegal tax evaders among them, but it turns out billionaires don’t have to evade taxes exotically and illicitly — they can avoid them routinely and legally.

Most Americans have to work to live. When they do, they get paid — and they get taxed. The federal government considers almost every dollar workers earn to be “income,” and employers take taxes directly out of their paychecks.

The Bezoses of the world have no need to be paid a salary. Bezos’ Amazon wages have long been set at the middle-class level of around $80,000 a year.

For years, there’s been something of a competition among elite founder-CEOs to go even lower. Steve Jobs took $1 in salary when he returned to Apple in the 1990s. Facebook’s Zuckerberg, Oracle’s Larry Ellison and Google’s Larry Page have all done the same.

Yet this is not the self-effacing gesture it appears to be: Wages are taxed at a high rate. The top 25 wealthiest Americans reported $158 million in wages in 2018, according to the IRS data. That’s a mere 1.1% of what they listed on their tax forms as their total reported income. The rest mostly came from dividends and the sale of stock, bonds or other investments, which are taxed at lower rates than wages.

As Congressman Hull envisioned long ago, the ultrawealthy typically hold fast to shares in the companies they’ve founded. Many titans of the 21st century sit on mountains of what are known as unrealized gains, the total size of which fluctuates each day as stock prices rise and fall. Of the $4.25 trillion in wealth held by U.S. billionaires, some $2.7 trillion is unrealized, according to Emmanuel Saez and Gabriel Zucman, economists at the University of California, Berkeley.

Buffett has famously held onto his stock in the company he founded, Berkshire Hathaway, the conglomerate that owns Geico, Duracell and significant stakes in American Express and Coca-Cola. That has allowed Buffett to largely avoid transforming his wealth into income. From 2015 through 2018, he reported annual income ranging from $11.6 million to $25 million. That may seem like a lot, but Buffett ranks as roughly the world’s sixth-richest person — he’s worth $110 billion as of Forbes’ estimate in May 2021. At least 14,000 U.S. taxpayers in 2015 reported higher income than him, according to IRS data.

There’s also a second strategy Buffett relies on that minimizes income, and therefore, taxes. Berkshire does not pay a dividend, the sum (a piece of the profits, in theory) that many companies pay each quarter to those who own their stock. Buffett has always argued that it is better to use that money to find investments for Berkshire that will further boost the value of shares held by him and other investors. If Berkshire had offered anywhere close to the average dividend in recent years, Buffett would have received over $1 billion in dividend income and owed hundreds of millions in taxes each year.

Many Silicon Valley and infotech companies have emulated Buffett’s model, eschewing stock dividends, at least for a time. In the 1980s and 1990s, companies like Microsoft and Oracle offered shareholders rocketing growth and profits but did not pay dividends. Google, Facebook, Amazon and Tesla do not pay dividends.

In a detailed written response, Buffett defended his practices but did not directly address ProPublica’s true tax rate calculation. “I continue to believe that the tax code should be changed substantially,” he wrote, adding that he thought “huge dynastic wealth is not desirable for our society.”

The decision not to have Berkshire pay dividends has been supported by the vast majority of his shareholders. “I can’t think of any large public company with shareholders so united in their reinvestment beliefs,” he wrote. And he pointed out that Berkshire Hathaway pays significant corporate taxes, accounting for 1.5% of total U.S. corporate taxes in 2019 and 2020.

Buffett reiterated that he has begun giving his enormous fortune away and ultimately plans to donate 99.5% of it to charity. “I believe the money will be of more use to society if disbursed philanthropically than if it is used to slightly reduce an ever-increasing U.S. debt,” he wrote.

So how do megabillionaires pay their megabills while opting for $1 salaries and hanging onto their stock? According to public documents and experts, the answer for some is borrowing money — lots of it.

For regular people, borrowing money is often something done out of necessity, say for a car or a home. But for the ultrawealthy, it can be a way to access billions without producing income, and thus, income tax.

The tax math provides a clear incentive for this. If you own a company and take a huge salary, you’ll pay 37% in income tax on the bulk of it. Sell stock and you’ll pay 20% in capital gains tax — and lose some control over your company. But take out a loan, and these days you’ll pay a single-digit interest rate and no tax; since loans must be paid back, the IRS doesn’t consider them income. Banks typically require collateral, but the wealthy have plenty of that.

The vast majority of the ultrawealthy’s loans do not appear in the tax records obtained by ProPublica since they are generally not disclosed to the IRS. But occasionally, the loans are disclosed in securities filings. In 2014, for example, Oracle revealed that its CEO, Ellison, had a credit line secured by about $10 billion of his shares.

Last year Tesla reported that Musk had pledged some 92 million shares, which were worth about $57.7 billion as of May 29, 2021, as collateral for personal loans.

With the exception of one year when he exercised more than a billion dollars in stock options, Musk’s tax bills in no way reflect the fortune he has at his disposal. In 2015, he paid $68,000 in federal income tax. In 2017, it was $65,000, and in 2018 he paid no federal income tax. Between 2014 and 2018, he had a true tax rate of 3.27%.

The IRS records provide glimpses of other massive loans. In both 2016 and 2017, investor Carl Icahn, who ranks as the 40th-wealthiest American on the Forbes list, paid no federal income taxes despite reporting a total of $544 million in adjusted gross income (which the IRS defines as earnings minus items like student loan interest payments or alimony). Icahn had an outstanding loan of $1.2 billion with Bank of America among other loans, according to the IRS data. It was technically a mortgage because it was secured, at least in part, by Manhattan penthouse apartments and other properties.

Borrowing offers multiple benefits to Icahn: He gets huge tranches of cash to turbocharge his investment returns. Then he gets to deduct the interest from his taxes. In an interview, Icahn explained that he reports the profits and losses of his business empire on his personal taxes.

Icahn acknowledged that he is a “big borrower. I do borrow a lot of money.” Asked if he takes out loans also to lower his tax bill, Icahn said: “No, not at all. My borrowing is to win. I enjoy the competition. I enjoy winning.”

He said adjusted gross income was a misleading figure for him. After taking hundreds of millions in deductions for the interest on his loans, he registered tax losses for both years, he said. “I didn’t make money because, unfortunately for me, my interest was higher than my whole adjusted income.”

Asked whether it was appropriate that he had paid no income tax in certain years, Icahn said he was perplexed by the question. “There’s a reason it’s called income tax,” he said. “The reason is if, if you’re a poor person, a rich person, if you are Apple — if you have no income, you don’t pay taxes.” He added: “Do you think a rich person should pay taxes no matter what? I don’t think it’s germane. How can you ask me that question?”

Skeptics might question our analysis of how little the superrich pay in taxes. For one, they might argue that owners of companies get hit by corporate taxes. They also might counter that some billionaires cannot avoid income — and therefore taxes. And after death, the common understanding goes, there’s a final no-escape clause: the estate tax, which imposes a steep tax rate on sums over $11.7 million.

ProPublica found that none of these factors alter the fundamental picture.

Take corporate taxes. When companies pay them, economists say, these costs are passed on to the companies’ owners, workers or even consumers. Models differ, but they generally assume big stockholders shoulder the lion’s share.

Corporate taxes, however, have plummeted in recent decades in what has become a golden age of corporate tax avoidance. By sending profits abroad, companies like Google, Facebook, Microsoft and Apple have often paid little or no U.S. corporate tax.

For some of the nation’s wealthiest people, particularly Bezos and Musk, adding corporate taxes to the equation would hardly change anything at all. Other companies like Berkshire Hathaway and Walmart do pay more, which means that for people like Buffett and the Waltons, corporate tax could add significantly to their burden.

It is also true that some billionaires don’t avoid taxes by avoiding incomes. In 2018, nine of the 25 wealthiest Americans reported more than $500 million in income and three more than $1 billion.

In such cases, though, the data obtained by ProPublica shows billionaires have a palette of tax-avoidance options to offset their gains using credits, deductions (which can include charitable donations) or losses to lower or even zero out their tax bills. Some own sports teams that offer such lucrative write-offs that owners often end up paying far lower tax rates than their millionaire players. Others own commercial buildings that steadily rise in value but nevertheless can be used to throw off paper losses that offset income.

Michael Bloomberg, the 13th-richest American on the Forbes list, often reports high income because the profits of the private company he controls flow mainly to him.

In 2018, he reported income of $1.9 billion. When it came to his taxes, Bloomberg managed to slash his bill by using deductions made possible by tax cuts passed during the Trump administration, charitable donations of $968.3 million and credits for having paid foreign taxes. The end result was that he paid $70.7 million in income tax on that almost $2 billion in income. That amounts to just a 3.7% conventional income tax rate. Between 2014 and 2018, Bloomberg had a true tax rate of 1.30%.

In a statement, a spokesman for Bloomberg noted that as a candidate, Bloomberg had advocated for a variety of tax hikes on the wealthy. “Mike Bloomberg pays the maximum tax rate on all federal, state, local and international taxable income as prescribed by law,” the spokesman wrote. And he cited Bloomberg’s philanthropic giving, offering the calculation that “taken together, what Mike gives to charity and pays in taxes amounts to approximately 75% of his annual income.”

The statement also noted: “The release of a private citizen’s tax returns should raise real privacy concerns regardless of political affiliation or views on tax policy. In the United States no private citizen should fear the illegal release of their taxes. We intend to use all legal means at our disposal to determine which individual or government entity leaked these and ensure that they are held responsible.”

Ultimately, after decades of wealth accumulation, the estate tax is supposed to serve as a backstop, allowing authorities an opportunity to finally take a piece of giant fortunes before they pass to a new generation. But in reality, preparing for death is more like the last stage of tax avoidance for the ultrawealthy.

University of Southern California tax law professor Edward McCaffery has summarized the entire arc with the catchphrase “buy, borrow, die.”

The notion of dying as a tax benefit seems paradoxical. Normally when someone sells an asset, even a minute before they die, they owe 20% capital gains tax. But at death, that changes. Any capital gains till that moment are not taxed. This allows the ultrarich and their heirs to avoid paying billions in taxes. The “step-up in basis” is widely recognized by experts across the political spectrum as a flaw in the code.

Then comes the estate tax, which, at 40%, is among the highest in the federal code. This tax is supposed to give the government one last chance to get a piece of all those unrealized gains and other assets the wealthiest Americans accumulate over their lifetimes.

It’s clear, though, from aggregate IRS data, tax research and what little trickles into the public arena about estate planning of the wealthy that they can readily escape turning over almost half of the value of their estates. Many of the richest create foundations for philanthropic giving, which provide large charitable tax deductions during their lifetimes and bypass the estate tax when they die.

Wealth managers offer clients a range of opaque and complicated trusts that allow the wealthiest Americans to give large sums to their heirs without paying estate taxes. The IRS data obtained by ProPublica gives some insight into the ultrawealthy’s estate planning, showing hundreds of these trusts.

The result is that large fortunes can pass largely intact from one generation to the next. Of the 25 richest people in America today, about a quarter are heirs: three are Waltons, two are scions of the Mars candy fortune and one is the son of Estée Lauder.

In the past year and a half, hundreds of thousands of Americans have died from COVID-19, while millions were thrown out of work. But one of the bleakest periods in American history turned out to be one of the most lucrative for billionaires. They added $1.2 trillion to their fortunes from January 2020 to the end of April of this year, according to Forbes.

That windfall is among the many factors that have led the country to an inflection point, one that traces back to a half-century of growing wealth inequality and the financial crisis of 2008, which left many with lasting economic damage. American history is rich with such turns. There have been famous acts of tax resistance, like the Boston Tea Party, countered by less well-known efforts to have the rich pay more.

One such incident, over half a century ago, appeared as if it might spark great change. President Lyndon Johnson’s outgoing treasury secretary, Joseph Barr, shocked the nation when he revealed that 155 Americans making over $200,000 (about $1.6 million today) had paid no taxes. That group, he told the Senate, included 21 millionaires.

“We face now the possibility of a taxpayer revolt if we do not soon make major reforms in our income taxes,” Barr said. Members of Congress received more furious letters about the tax scofflaws that year than they did about the Vietnam War.

Congress did pass some reforms, but the long-term trend was a revolt in the opposite direction, which then accelerated with the election of Ronald Reagan in 1980. Since then, through a combination of political donations, lobbying, charitable giving and even direct bids for political office, the ultrawealthy have helped shape the debate about taxation in their favor.

One apparent exception: Buffett, who broke ranks with his billionaire cohort to call for higher taxes on the rich. In a famous New York Times op-ed in 2011, Buffett wrote, “My friends and I have been coddled long enough by a billionaire-friendly Congress. It’s time for our government to get serious about shared sacrifice.”

Buffett did something in that article that few Americans do: He publicly revealed how much he had paid in personal federal taxes the previous year ($6.9 million). Separately, Forbes estimated his fortune had risen $3 billion that year. Using that information, an observer could have calculated his true tax rate; it was 0.2%. But then, as now, the discussion that ensued on taxes was centered on the traditional income tax rate.

In 2011, President Barack Obama proposed legislation, known as the Buffett Rule. It would have raised income tax rates on people reporting over a million dollars a year. It didn’t pass. Even if it had, however, the Buffett Rule wouldn’t have raised Buffett’s taxes significantly. If you can avoid income, you can avoid taxes.

Today, just a few years after Republicans passed a massive tax cut that disproportionately benefited the wealthy, the country may be facing another swing of the pendulum, back toward a popular demand to raise taxes on the wealthy. In the face of growing inequality and with spending ambitions that rival those of Franklin D. Roosevelt or Johnson, the Biden administration has proposed a slate of changes. These include raising the tax rates on people making over $400,000 and bumping the top income tax rate from 37% to 39.6%, with a top rate for long-term capital gains to match that. The administration also wants to up the corporate tax rate and to increase the IRS’ budget.

Some Democrats have gone further, floating ideas that challenge the tax structure as it’s existed for the last century. Oregon Sen. Ron Wyden, the chairman of the Senate Finance Committee, has proposed taxing unrealized capital gains, a shot through the heart of Macomber. Sens. Elizabeth Warren and Bernie Sanders have proposed wealth taxes.

Aggressive new laws would likely inspire new, sophisticated avoidance techniques. A few countries, including Switzerland and Spain, have wealth taxes on a small scale. Several, most recently France, have abandoned them as unworkable. Opponents contend that they are complicated to administer, as it is hard to value assets, particularly of private companies and property.

What it would take for a fundamental overhaul of the U.S. tax system is not clear. But the IRS data obtained by ProPublica illuminates that all of these conversations have been taking place in a vacuum. Neither political leaders nor the public have ever had an accurate picture of how comprehensively the wealthiest Americans avoid paying taxes.

Buffett and his fellow billionaires have known this secret for a long time. As Buffett put it in 2011: “There’s been class warfare going on for the last 20 years, and my class has won.”


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Public Policy meets Pop Culture in ‘While Justice Sleeps’: Stacey Abrams’ political thriller

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Multi-talented author and political force of nature

Hearing the name Stacey Abrams, you’d likely think of a woman who ran for governor in 2020 in Georgia, or the role she played in registering hundreds of thousands of voters and becoming a Democratic power broker. You might be surprised to learn that before she was well known in the political realm, Stacey Abrams wrote romance novels, under the nom de plume “Selena Montgomery”.

Abrams has also written non-fiction, including “Lead from the Outside” and Our Time is Now“. And now, in an interesting departure from previous works, her newest book is a political thriller. This is her 11th book, under her various names, but it is the first work of fiction published under her real name.

Recently the news broke that her novel is going to be adapted for a TV series to be produced by NBC Universal International Studios.

We provide a look at  “While Justice Sleeps“, by Stacey Abrams, below, along with a description, provided courtesy of the Bookshop (and the publisher), along with some links for a variety of purchasing options.

While Justice Sleeps

Avery Keene, a brilliant young law clerk for the legendary Justice Howard Wynn, is doing her best to hold her life together–excelling in an arduous job with the court while also dealing with a troubled family.

When the shocking news breaks that Justice Wynn–the cantankerous swing vote on many current high-profile cases–has slipped into a coma, Avery’s life turns upside down.

She is immediately notified that Justice Wynn has left instructions for her to serve as his legal guardian and power of attorney. Plunged into an explosive role she never anticipated, Avery finds that Justice Wynn had been secretly researching one of the most controversial cases before the court–a proposed merger between an American biotech company and an Indian genetics firm, which promises to unleash breathtaking results in the medical field.

She also discovers that Wynn suspected a dangerously related conspiracy that infiltrates the highest power corridors of Washington. As political wrangling ensues in Washington to potentially replace the ailing judge whose life and survival Avery controls, she begins to unravel a carefully constructed, chesslike sequence of clues left behind by Wynn. She comes to see that Wynn had a much more personal stake in the controversial case and realizes his complex puzzle will lead her directly into harm’s way in order to find the truth. 

While Justice Sleeps is a cunningly crafted, sophisticated novel, layered with myriad twists and a vibrant cast of characters. Drawing on her astute inside knowledge of the court and political landscape, Stacey Abrams shows herself to be not only a force for good in politics and voter fairness but also a major new talent in suspense fiction.

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Hundreds of PPP Loans Went to Fake Farms in Absurd Places

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Hundreds of PPP Loans Went to Fake Farms in Absurd Places

by Derek Willis and Lydia DePillis for ProPublica

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

 “This story was originally published by ProPublica.”

The shoreline communities of Ocean County, New Jersey, are a summertime getaway for throngs of urbanites, lined with vacation homes and ice cream parlors. Not exactly pastoral — which is odd, considering dozens of Paycheck Protection Program loans to supposed farms that flowed into the beach towns last year.

As the first round of the federal government’s relief program for small businesses wound down last summer, “Ritter Wheat Club” and “Deely Nuts,” ostensibly a wheat farm and a tree nut farm, each got $20,833, the maximum amount available for sole proprietorships. “Tomato Cramber,” up the coast in Brielle, got $12,739, while “Seaweed Bleiman” in Manahawkin got $19,957.

None of these entities exist in New Jersey’s business records, and the owners of the homes at which they are purportedly located expressed surprise when contacted by ProPublica. One entity categorized as a cattle ranch, “Beefy King,” was registered in PPP records to the home address of Joe Mancini, the mayor of Long Beach Township.

“There’s no farming here: We’re a sandbar, for Christ’s sake,” said Mancini, reached by telephone. Mancini said that he had no cows at his home, just three dogs.

All of these loans to nonexistent businesses came through Kabbage, an online lending platform that processed nearly 300,000 PPP loans before the first round of funds ran out in August 2020, second only to Bank of America. In total, ProPublica found 378 small loans totaling $7 million to fake business entities, all of which were structured as single-person operations and received close to the largest loan for which such micro-businesses were eligible. The overwhelming majority of them are categorized as farms, even in the unlikeliest of locales, from potato fields in Palm Beach to orange groves in Minnesota.

The Kabbage pattern is only one slice of a sprawling fraud problem that has suffused the Paycheck Protection Program from its creation in March 2020 as an attempt to keep small businesses on life support while they were forced to shut down. With speed as its strongest imperative, the effort run by the federal Small Business Administration initially lacked even the most basic safeguards to prevent opportunists from submitting fabricated documentation, government watchdogs have said.

While that may have allowed millions of businesses to keep their doors open, it has also required a massive cleanup operation on the backend. The SBA’s inspector general estimated in January that the agency approved loans for 55,000 potentially ineligible businesses, and that 43,000 obtained more money than their reported payrolls would justify. The Department of Justice, relying on special agents from across the government to investigate, has brought charges against hundreds of individuals accused of gaming pandemic response programs.

Drawn by generous fees for each loan processed, Kabbage was among a band of online lenders that joined enthusiastically in originating loans through their automated platforms. That helped millions of borrowers who’d been turned down by traditional banks, but it also created more opportunities for cheating. ProPublica examined SBA loans processed by several of the most prolific online lenders and found that Kabbage appears to have originated the most loans to businesses that don’t appear to exist and the only concentration of loans to phantom farms.

In some cases, these problems would’ve been easy to spot with just a little more upfront diligence — which the program’s structure did not encourage.

“Pushing this through financial institutions created some pretty bad incentives,” said Naftali Harris, the CEO of Sentilink, which helps lenders detect potential identity theft. “This is definitely a case where companies that decided they wanted to be more careful in terms of giving out loans were penalized for doing so.”

Presented with ProPublica’s findings, SBA inspector general spokeswoman Farrah Saint-Surin said that her office had hundreds of investigations underway, but that she did “not have any information to share or available for public reporting at this time.” Reuters reported that federal investigators were probing whether Kabbage and other fintech lenders miscalculated PPP loan amounts, and the DOJ declined to confirm or deny the existence of any investigation to ProPublica.

Kabbage, which was acquired by American Express last fall, did not have an explanation for ProPublica’s specific findings, but it said it adhered to required fraud protocols. “At any point in the loan process, if fraudulent activity was suspected or confirmed, it was reported to FinCEN, the SBA’s Office of the Inspector General and other federal investigators, with Kabbage providing its full cooperation,” spokesman Paul Bernardini said in an emailed statement.

As soon as the pandemic swept across America, Kabbage was in trouble.

The online lending platform had launched in 2009 as part of a generation of financial technology companies known as “non-banks,” “alternative lenders” or simply “fintechs” that act as an intermediary between investors and small businesses that might not have relationships with traditional banks. Based in Atlanta, it had become a buzzy standout in the city’s tech scene, offering employees Silicon Valley perks like free catered lunches and beer on tap. It advertised its mission as helping small businesses “acquire funds they need for their big breaks,” as a recruiting video parody of Michael Jackson’s “Thriller” put it in 2016.

The basic innovation behind the burgeoning fintech industry is automating underwriting and incorporating more data sources into risk evaluation, using statistical models to determine whether an applicant will repay a loan. That lower barrier to credit comes with a price: Kabbage would lend to borrowers with thin or checkered credit histories, in exchange for steep fees. The original partner for most of its loans, Celtic Bank, is based in Utah, which has no cap on interest rate, allowing Kabbage to charge more in states with stricter regulations.

With backing from the powerhouse venture capital firm SoftBank, Kabbage had been planning an IPO. Its model foundered, however, when Kabbage’s largest customer base — small businesses like coffee shops, hair salons and yoga studios — was forced to shut down last March. Kabbage stopped writing loans, even for businesses that weren’t harmed by the pandemic. Days later, it furloughed more than half of its nearly 600-person staff and faced an uncertain future.

The Paycheck Protection Program, which was signed into law as part of the CARES Act on March 27, 2020, with an initial $349 billion in funding, was a lifeline not just to small businesses, but fintechs as well. Lenders would get a fee of 5% on loans worth less than $350,000, which would account for the vast majority of transactions. The loans were government guaranteed, and processors bore almost no liability, as long as they made sure that applications were complete.

At first, encouraged by the Treasury Department, traditional banks prioritized their own customers — an efficient way to process applications with little fraud risk, since the borrowers’ information was already on file. But that left millions of the smallest businesses, including independent contractors, out to dry. They turned instead to a collection of online lenders that have sprung up offering short-term loans to businesses: Kabbage, Lendio, Bluevine, FundBox, Square Capital and others would process applications automatically, with little human review required.

For the platforms, this was also easy money. In the first funding round that ran out last August, Kabbage completed 297,587 loans totaling $7 billion. It received 5% of each loan it made directly and an undisclosed cut of the proceeds for those it processed for banks; its total revenue was likely in the hundreds of millions of dollars. A lawsuit filed by a South Carolina accounting firm alleges that Kabbage was among several lenders that refused to pay fees to agents who helped put together applications, even though the CARES Act had said they could charge up to 1% of the smaller loans (a provision that was later reversed). For Kabbage, that revenue kept the company alive while it sought a buyer.

“For all of these guys, it was like shooting fish in a barrel. If you could do the minimum amount of due diligence required, you could fill up the pipeline with these applications,” said a former Kabbage executive, one of four former employees interviewed by ProPublica. They spoke on the condition of anonymity to avoid retaliation at their current jobs or from industry giant American Express.

To handle the volume, Kabbage brought back laid-off workers starting at $15 an hour. When that failed to attract enough people, they increased the hourly rate to $35, and then $40, and awarded gift cards for reaching certain benchmarks, according to a former employee with visibility into the loan processing. “At a certain point, they were like, ‘Yes, get more applications out and you’ll get this reward if you do,’” the former employee said. (Bernardini said the company did not offer incentive compensation.)

In a report on its PPP participation through last August, Kabbage boasted that 75% of all approved applications were processed without human review. For every 790 employees at major U.S. banks, the report said, Kabbage had one. That’s in part because traditional banks, which also take deposits, are much more heavily regulated than fintech institutions that just process loans. To participate in the PPP, fintechs had to quickly set up systems that could comply with anti-money laundering laws. The human review that did happen, according to two people involved in it, was perfunctory.

“They weren’t saying, ‘Is this legitimate?’ They were just saying, ‘Are all the fields filled out?’” said another former employee. As acquisition talks proceeded, the employee noted, Kabbage managers who held the most company stock had a built-in incentive to process as many loans as possible. “If there’s anything suspicious, you can pass it along to account review, but account review was full of people who stood to make a lot of money from the acquisition.”

One situation in which Kabbage approved a suspicious loan became public in a Florida lawsuit filed by a woman, Latoya Clark, who received more than $1 million in PPP loans to three businesses. When the funds were deposited into accounts at JPMorgan Chase, the bank discovered that Clark’s businesses hadn’t been incorporated before the PPP program’s cutoff and froze the accounts. Clark sued Chase, and Chase then filed a counterclaim against the borrower and Kabbage, which had originated the loan despite its questionable documentation. In its response, Kabbage said it had not yet completed its investigation of the incident.

Although the Justice Department rarely names lenders that processed fraudulent PPP applications, Kabbage has been named at least twice. One case involved two loans worth $1.8 million to businesses that submitted forged information, and the other involved a business that had inflated its payroll numbers and submitted a similar application to U.S. Bank, which flagged authorities. Kabbage had simply approved the $940,000 loan. American Express’ Bernardini declined to comment further on pending litigation.

Shortly after the application period for PPP’s first round closed on Aug. 8, American Express announced the Kabbage purchase. But the transaction included none of Kabbage’s loan portfolios, either from the PPP or its pre-pandemic conventional loans. The PPP loans had either been sold to SBA-approved banks or bought by the Federal Reserve. Bernardini wouldn’t say which banks now own the loans, however, and said that no potentially fraudulent loans had been pledged to the Fed.

In April, an Ocean County, New Jersey, resident contacted ProPublica after seeing his name attached to a Kabbage loan for a nonexistent “melon farm.” To see whether it was an isolated incident, ProPublica took basic information the government released after a Freedom of Information Act lawsuit by ProPublica and others and compared it with state business entity registries. Although registries don’t pick up all sole proprietorships and independent contractors, the absence of a name is an indication that the business might not exist.

As it turned out, Kabbage had made more than 60 loans in New Jersey to unlisted businesses. Fake farms also showed up repeatedly in the SBA’s Economic Injury Disaster Loan Program, according to reports from localnewsoutlets.

A common tie became apparent when the resident of the home to which one nonexistent business was registered said that he was a client of the certified public accountants at Ciccone, Koseff & Company. In March 2020, the firm notified its clients of what it called an “ultimately unsuccessful ransomware attack” that occurred the previous month. According to information filed with Maine’s attorney general, the attackers acquired Social Security numbers and financial information.

Several other clients of the accounting firm, including Mancini, the Long Beach mayor, also had loans registered to their addresses. Reached by phone, firm founder Ray Ciccone declined to comment.

But that CPA’s data breach didn’t account for all of the suspicious loans ProPublica found across the country. Searches for PPP applicants that didn’t show up in state registration records yielded hundreds in 28 more states, with dense clusters in Florida, Nebraska and Virginia. Other lenders had nonexistent businesses as well, but fake farms only showed up in Kabbage loans. Most followed a distinctive naming convention, with part of the name of a resident or former resident of the home to which the business is registered, plus a random agricultural term.

Some of the fake loans listed addresses of people who’d also legitimately applied for their businesses. Hartington, Nebraska, anesthesiologist Bruce Reifenrath received a PPP loan for his practice in nearby Yankton, South Dakota. That’s why the idea of one being approved for a “potato farm” was so strange. “We did a PPP loan last spring and it’s pretty extensive, the documentation,” Reifenrath said.

Reifenrath was part of a cluster of dubious Kabbage loans in Hartington that also included the home of J. Scott Schrempp, the president of the Bank of Hartington, who confirmed that he did not own a strawberry farm. Schrempp said he had noticed the fake loan, and reported it to the SBA.

The SBA data only reflects approved applications received from lenders, some of which are then caught and not funded. The SBA also periodically updates its dataset to remove loans canceled by lenders. But none of the suspicious loans pulled by ProPublica show undisbursed funds, and they all have remained in the dataset for more than eight months.

One possible mechanism for the invented businesses is a technique known as synthetic identity theft, in which a criminal obtains pieces of personally identifiable information — such as a home address, a Social Security number and a birthdate — and combines it with fake information to build a credit profile. The associated bank account then routes to the fraudster, not the owner of the original information.

None of the residents of the phony farms ProPublica contacted were getting notices that they needed to repay the loans they didn’t apply for, because they didn’t get any money. But that doesn’t mean they’re not at risk, according to James Lee, chief operating officer at the Identity Theft Resource Center.

“Just having an address linked to your name on a fraudulent loan can impact your credit,” Lee said. It can also pose problems for pre-employment background checks, insurance applications or new identification documents like passports and driver’s licenses.

Meanwhile, if not corrected, the fabricated identities will stay in circulation and become better at fooling other financial institutions. “Those records get built into the credit and authentication systems used by government and commercial entities,” Lee said. “Each next time they are used and authenticated, the more ‘real’ they become. That’s what makes synthetic identity fraud so insidious.”

This, however, is largely not Kabbage’s problem anymore.

After its huge blitz of PPP loans last summer, Kabbage had hundreds of thousands of borrowers whose loans would need to be serviced until they were closed out. The loans could either be forgiven, if the borrower demonstrated that they spent most of the money on payroll, or paid back with interest. But American Express didn’t acquire the part of Kabbage’s business that owned those loans. Instead, a separate entity called K Servicing would handle loan forgiveness and take applications for a second PPP draw that Congress funded in December. The servicer is led by former Kabbage employees and its website looks very similar to Kabbage’s, but American Express says it has no affiliation.

If Kabbage was understaffed for the volume of PPP loans it took on before the acquisition, the situation has apparently worsened since then. Reddit, Yelp, Consumer Affairs, Trustpilot, Facebook and Better Business Bureau threads are replete with complaints from customers whose applications were denied or who received no communication from the company. When the SBA changed the rules in February to make the program more generous to independent contractors, K Servicing couldn’t incorporate the new forms into its processing system. So it told all new applicants to apply through another company, SmartBiz, which had operated as a mostly online processor of SBA loans even before the pandemic.

K Servicing is run by Kabbage’s former head of program management, Laquisha Milner, who also runs her own consulting firm. “Due to extenuating circumstances beyond our control, currently, our processing function is delayed,” Milner emailed in response to detailed questions from ProPublica. “We are relentlessly exploring all available options to ensure our existing customers are able to maximize their loan forgiveness.”

Jennifer Dienst is a freelance travel and events writer who received her first-draw loan from Kabbage and wants to apply for forgiveness before her window for doing so closes in the fall, but she has been stymied by K Servicing’s failure to make the forms available. “Please be patient with us as we prepare for the new forms,” a message on the loan portal reads.

Meanwhile, Dienst’s account has started accruing interest, which Milner said will not be charged if the loan is forgiven. But it’s making Dienst nervous.

“It’s always the same response from K Servicing — we’re updating our forgiveness forms and they’ll be made available soon,” Dienst said. “They’ve been saying that for months.”

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Why Web Scraping Is Vital to Democracy

Photo Credit / Fabio / Unsplash

Journalists have used scrapers to collect data that rooted out extremist cops, tracked lobbyists, and uncovered an underground market for adopted children

By: The Markup Staff

The fruits of web scraping—using code to harvest data and information from websites—are all around us.

People build scrapers that can find every Applebee’s on the planet or collect congressional legislation and votes or track fancy watches for sale on fan websites. Businesses use scrapers to manage their online retail inventory and monitor competitors’ prices. Lots of well-known sites use scrapers to do things like track airline ticket prices and job listings. Google is essentially a giant, crawling web scraper.

Scrapers are also the tools of watchdogs and journalists, which is why The Markup filed an amicus brief in a case before the U.S. Supreme Court this week that threatens to make scraping illegal.

The case itself—Van Buren v. United States—is not about scraping but rather a legal question regarding the prosecution of a Georgia police officer, Nathan Van Buren, who was bribed to look up confidential information in a law enforcement database. Van Buren was prosecuted under the Computer Fraud and Abuse Act (CFAA), which prohibits unauthorized access to a computer network such as computer hacking, where someone breaks into a system to steal information (or, as dramatized in the 1980s classic movie “WarGames,” potentially start World War III).

In Van Buren’s case, since he was allowed to access the database for work, the question is whether the court will broadly define his troubling activities as “exceeding authorized access” to extract data, which is what would make it a crime under the CFAA. And it’s that definition that could affect journalists.

Or, as Justice Neil Gorsuch put it during Monday’s oral arguments, lead in the direction of “perhaps making a federal criminal of us all.”

Investigative journalists and other watchdogs often use scrapers to illuminate issues big and small, from tracking the influence of lobbyists in Peru by harvesting the digital visitor logs for government buildings to monitoring and collecting political ads on Facebook. In both of those instances, the pages and data scraped are publicly available on the internet—no hacking necessary—but sites involved could easily change the fine print on their terms of service to label the aggregation of that information “unauthorized.” And the U.S. Supreme Court, depending on how it rules, could decide that violating those terms of service is a crime under the CFAA.

“A statute that allows powerful forces like the government or wealthy corporate actors to unilaterally criminalize newsgathering activities by blocking these efforts through the terms of service for their websites would violate the First Amendment,” The Markup wrote in our brief.

What sort of work is at risk? Here’s a roundup of some recent journalism made possible by web scraping:

  • The COVID tracking project, from The Atlantic, collects and aggregates data from around the country on a daily basis, serving as a means of monitoring where testing is happening, where the pandemic is growing, and the racial disparities in who’s contracting and dying from the virus.
  • This project, from Reveal, scraped extremist Facebook groups and compared their membership rolls to those of law enforcement groups on Facebook—and found a lot of overlap.
  • Reveal also used scrapers to find that hundreds of millions of dollars in property taxes should have never been charged to Detroit residents who then lost their homes through foreclosure.
  • The Markup’s recent investigation into Google’s search results found that it consistently favors its own products, leaving some websites from which the web giant itself scrapes information struggling for visitors and, therefore, ad revenue. The U.S. Department of Justice cited the issue in an antitrust lawsuit against the company. 
  • In Copy, Paste, Legislate, USA Today found a pattern of cookie-cutter laws, pushed by special interest groups, circulating in legislatures around the country.
  • Reuters scraped social media and message boards to find an underground market for adopted children whose parents, who had usually adopted the children from abroad, decided the children were too much for them. A couple featured in the piece was later convicted of kidnapping as a result of the investigation.
  • Gizmodo was able to use similar tools to find the probable locations of tens of thousands of Ring surveillance cameras.
  • The Trace and The Verge, using scrapers, found people using an online market to sell guns without a license and without performing background checks.

This article was originally published on The Markup and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

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Floodgates are Opening on The Truth of Trump: ‘Madman’, ‘Racist, Sexist Pig’ and ‘F*cking Lunatic’

Above: Photo Collage / Lynxotic / Random House

Quotes from new book are illuminating to say the least

In a report from The Guardian, based on pre-release galleys of “Battle for The Soul” written by Atlantic staff writer Edward Isaac-Dovere, the private exchanges about Trump bore little resemblance to the public niceties and careful self-censoring that went on during “the former guy’s” disastrous reign from the Oval Office.

According to the excerpts shared with The Guardian, in direct quoted pages former President Obama slammed Trump throughout the 2016 campaign and during 45’s term in office. According to Atlantic staff writer Edward Isaac-Dovere in his forthcoming book. Obama referenced Trump as a “madman”, “lunatic”, “racist”, “sexist pig” and a “corrupt motherfu–er”.

More often: ‘I didn’t think it would be this bad.’ Sometimes: ‘I didn’t think we’d have a racist, sexist pig.’ Depending on the outrage of the day … a passing ‘that fucking lunatic’ with a shake of his head.”

obama Quoted in “battle for the soul” by Edward-Isaac Dovere

Obama isn’t the only person that has something unflattering to say about the Trump, as news that the New York attorney general’s office will be going forward with a now-criminal investigation of the Trump Organization, Michael Cohen, the former personal lawyer and fixer for 45 hilariously tweeted Don behind bars:

We’ve provided a look at   Battle for the Soul , by Edward-Isaac Dovere, below, along with a description, provided courtesy of the Bookshop (and the publisher), along with some links for a variety of options where to purchase.

Battle for the Soul: Inside the Democrats’ Campaigns to Defeat

The 2020 presidential campaign was a defining moment for America. As Donald Trump and his nativist populism cowed the Republican Party into submission, many Democrats–haunted by Hillary Clinton’s shocking loss in 2016, which led to a four-year-long identity crisis–were convinced he would be unbeatable.

Their party and the country, it seemed, might never recover. How, then, did Democrats manage to win the presidency, especially after the longest primary race and the biggest field ever?

How did they keep themselves united through an internal struggle between newly empowered progressives and establishment forces–playing out against a pandemic, an economic crisis, and a new racial reckoning? 

Edward-Isaac Dovere’s Battle for the Soul is the searing, fly-on-the-wall account of the Democrats’ journey through recalibration and rebirth.

Dovere traces this process from the early days in the wilderness of the post-Obama era, though the jockeying of potential candidates, to the backroom battles and exhausting campaigns, to the unlikely triumph of the man few expected to win, and through the inauguration and insurrection at the Capitol. 

Dovere draws on years of on-the-ground reporting and contemporaneous conversations with the key players–whether in Pete Buttigieg’s hotel suite in Des Moines an hour before he won the Iowa caucuses or Joe Biden’s first-ever interview in the Oval Office–as well as aides, advisors, and voters.

With unparalleled access and an insider’s command of the campaign, Battle for the Soul offers a compelling look at the policies, politics, people and the often absurd process of running for president. This fresh and timely story brings you on the trail, into the private rooms and along to eavesdrop on critical conversations. You will never see campaigns or this turning point in our history the same way again.

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In: ‘Antitrust: Taking on Monopoly Power from the Gilded Age to the Digital Age’, Amy Klobuchar Takes on World’s Greatest Challenge

Photo Collage / Lynxotic

Is the title above wrong? Depends who you ask…

In her new book, Klobuchar tries to connect the historical roots of antitrust actions to populism and her own ancestry. That’s not all, however. Although difficult, particularly for readers who are not legal scholars, there’s an important and deeper historic thread here that she is aiming to contribute to.

That job is to find a way to illuminate how the digital age, with all its challenges and complexities, can come to terms with the simple question of how to measure damage that is being done by big tech monopolies, through sheer size, power and lack of external accountability.

Moreover, there is an issue of how antitrust law and practice veered away from the remedies and goals, first established during the Gilded Age, toward a laissez-fair, anti-regulatory stance that gained steam in the Regan years.

That shift is, in many ways, to blame for the current extreme state characterized by dangerous levels of concentrated wealth and power by big tech.

This effort may seem like one that is doomed to being ignored by all but the already long-since converted. But, make no mistake, it is a topic that will grow, reverberate and become more relevant as the current administration in Washington consolidates and comes into its own.

“People have just gotten beaten down. I wanted to show the public and elected officials that you’re not the first kids on the block with this. What do you think it was like back when trusts literally controlled everyone on the Supreme Court, or literally elected members of the Senate before they were elected by the public?”

— Amy Klobuchar, in Wired interview with Steven Levey

When President Biden recently nominated Lina M. Khan to the Federal Trade Commission, in addition to Columbia Law School professor Tim Wu, who announced earlier this month he would join the National Economic Council, he set forth a clear path for an antitrust direction that has the potential to be more than just rhetoric and window dressing.

Khan is an unequivocal proponent of a new era of antitrust, one that is, not coincidentally, along the lines of what Klobuchar advocates. Likely sharing these ultra clear views from her long and celebrated research, Khan, along with Wu, is a key addition to Biden’s growing roster of Big Tech critics, and there is already a blueprint for actions and cases that will build to a crescendo over the next several years.

Buy at

Biden’s call for the repeal of Section 230 of the Communications Decency Act, meanwhile, a hotly contested and possibly flawed legal shield some feel is exploited by Internet platforms, is another indicator of the tenor of the coming actions.

In a sense, with this bestselling book [on Amazon: #1 in Political Economy, #1 in Government Management, #1 in Business Law (Books)] the gargantuan task of connecting the culpability of massive, nearly infinitely powerful behemoths, each in it’s own territory, to the social and economic catastrophes that they’ve brought down on the world.

However, while politicians like Klobuchar may not have the charisma and energy to set a fire under the population, it is the very deeds themselves that will eventually conspire to ignite an uprising and put pressure on the government and the courts to take real, substantive measures. And with young, new faces and minds such as possessed by Khan and Wu, ultimately there is a bulwark of criticism against monopolist abuses building in government and among the public at large.

“I am never saying, ‘Get rid of their products.’ But let’s have more of the products that give you more choices. You can keep one product, but it’s better to have other products, because we’re not China.”

Amy Klobuchar in Wired interview with Steven Levey

 In response to Klobuchar’s quote above Steven Levey in Wired wrote; “In other words, Facebook could keep it’s main app, but the public might benefit if Instagram and WhatsApp were not Mark Zuckerberg productions.” 

While this kind of “moderate” view may not be the earth shattering remedy that would turn the juggernauts around in a heartbeat, from Zuckerberg’s perspective it would not be ideal, to say the least.

Buy at

And, since we have seen the unfettered and viral growth of big tech, for at least a quarter century in some cases, and since there was a aura of hero worship afforded their leaders for most of that time, a break-up, such as that could ultimately turn out to be the beginning of more sweeping changes. A welcome outcome for those that have been harmed the various monopolistic structures that rule nearly all our lives, or at least it seems, at times.

Levey then asked Klobuchar why legislators so often embarrass themselves in hearings with irrelevant partisanship, clueless technical questions, and time-wasting grandstanding. Her response;

“Welcome to my life,” she says. “I get it—there’s going to be hearings that are irritating to people who know a lot. But that’s a great argument for tech to use because they don’t want this oversight.” 

Amy Klobuchar in Wired interview with Steven Levey

In defense of using the word “antitrust in the title, while also advocating its eradication in future she responded:

 “Well, I thought antitrust was an interesting word”. “It’s not only about this body of law; it’s also about not trusting anyone.”

Amy Klobuchar in Wired interview with Steven Levey

Perhaps it is more the course of history that led to the current and incredibly extreme situation and obscene dominance by big tech that is what should never have be trusted to arise in the first place.

Perhaps these firms will one day be seen, looking back from future generations, as a temporarily necessary, but evil mistake of history, as was the toothless interpretation of laws that led to their rise from “scrappy underdog startups” into malignant monopolies run amok.

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