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tsainten

France and Germany Lock Down as Second Coronavirus Wave Grows - The New York Times - 0 views

  • BRUSSELS — France announced a second nationwide lockdown and Germany moved to the very edge of one on Wednesday, testing their pandemic-weary populations as they tried to stop a mounting new wave of coronavirus infections from swamping hospitals and undoing hopes of economic recovery.
  • The pandemic surge and new lockdowns battered stock markets in Europe, as in the United States, with major indexes down about 3 percent Wednesday.
  • Starting Friday, France will go into a nationwide lockdown with just schools and essential businesses staying open until Dec. 1
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  • Spain went back into a state of emergency last week, while on Sunday the government in Italy moved to shut restaurants by 6 p.m. In Belgium, which currently has the continent’s highest infection rate, restaurants were shuttered this month, followed by museums and gyms over the weekend.
  • France, Spain, Italy and Britain are all among the European countries reporting spikes in new cases
  • More people have been protesting against restrictions
dytonka

Why Trump's Closing Argument on Coronavirus Clashes with Science and Voters - The New York Times - 0 views

  • President Trump is closing his re-election campaign by pleading with voters to ignore the evidence of a calamity unfolding before their eyes and trust his word that the disease is already disappearing as a threat to their personal health and economic well being.
  • The president has continued to declare before large and largely maskless crowds that the virus is vanishing, even as case counts soar, fatalities climb, the stock market dips and a fresh outbreak grips the staff of Vice President Mike Pence.
  • “With the fake news, everything is Covid, Covid, Covid, Covid,”
woodlu

Facebook is nearing a reputational point of no return | The Economist - 2 views

  • The next day a whistleblower, Frances Haugen, told Congress of all manner of wickedness at the firm, from promoting eating disorders to endangering democracy.
  • Politicians are angry but so far seem incapable of co-ordinating reform to rein it in.
  • investors have kept buying the stock, regardless of the bad headlines. Yet the company should take no comfort from this. The blind fury unleashed shows that its reputational problems have got out of hand
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  • Reports highlighted internal research showing that Instagram, Facebook’s photo-sharing app, makes one in five American teenagers feel worse about themselves.
  • They paid less attention to the finding that Instagram makes twice as many feel better about themselves.
  • She revealed internal projections that a drop in teenagers’ engagement could lead to an overall decline in American users of 45% within the next two years. Investors have long faced a lack of open disclosure.
  • The question of how to regulate viral content for children goes beyond Facebook, as any parent who has left their child with YouTube knows. Likewise, dilemmas over how the firm amplifies attention and how to draw the line between upholding free speech and minimising harm.
  • Facebook repeated its plea that Congress should weigh in on matters such as minimum ages, rather than leaving it to firms.
  • Facebook’s critics are right that it should be more open. But the firm has half a point when it says that the hysterical reaction to unsurprising findings will lead companies to conclude that it is safer not to do such research at all.
  • The most damaging claim this week gained the least attention. Ms Haugen alleges that Facebook has concealed a decline in its young American users.
  • Misleading advertisers would undermine the source of nearly all the firm’s sales, and potentially break the law.
  • Although Facebook’s share price has lagged behind some tech giants, it has risen by almost 30% in the past 12 months. Politicians threaten to break the company up, but the antitrust case is flawed.
  • The Justice Department’s claim that Facebook is a monopoly rests on defining its market so as to exclude most social networks.
  • Facebook is nearing a reputational point of no return. Even when it set out plausible responses to Ms Haugen, people no longer wanted to hear.
  • The firm risks joining the ranks of corporate untouchables like big tobacco. If that idea takes hold, Facebook risks losing its young, liberal staff.
  • Even if its ageing customers stick with the social network, Facebook has bigger ambitions that could be foiled if public opinion continues to curdle.
Javier E

How 9/11 changed us - Washington Post - 0 views

  • “The U.S. government must define what the message is, what it stands for,” the report asserts. “We should offer an example of moral leadership in the world, committed to treat people humanely, abide by the rule of law, and be generous and caring to our neighbors. . . . We need to defend our ideals abroad vigorously. America does stand up for its values.”
  • the authors pause to make a rousing case for the power of the nation’s character.
  • Rather than exemplify the nation’s highest values, the official response to 9/11 unleashed some of its worst qualities: deception, brutality, arrogance, ignorance, delusion, overreach and carelessness.
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  • Reading or rereading a collection of such books today is like watching an old movie that feels more anguishing and frustrating than you remember. The anguish comes from knowing how the tale will unfold; the frustration from realizing that this was hardly the only possible outcome.
  • This conclusion is laid bare in the sprawling literature to emerge from 9/11 over the past two decades
  • Whatever individual stories the 9/11 books tell, too many describe the repudiation of U.S. values, not by extremist outsiders but by our own hand.
  • In these works, indifference to the growing terrorist threat gives way to bloodlust and vengeance after the attacks. Official dissembling justifies wars, then prolongs them. In the name of counterterrorism, security is politicized, savagery legalized and patriotism weaponized.
  • that state of exception became our new American exceptionalism.
  • The latest works on the legacy of 9/11 show how war-on-terror tactics were turned on religious groups, immigrants and protesters in the United States. The war on terror came home, and it walked in like it owned the place.
  • It happened fast. By 2004, when the 9/11 Commission urged America to “engage the struggle of ideas,” it was already too late; the Justice Department’s initial torture memos were already signed, the Abu Ghraib images had already eviscerated U.S. claims to moral authority.
  • “It is for now far easier for a researcher to explain how and why September 11 happened than it is to explain the aftermath,” Steve Coll writes in “Ghost Wars,” his 2004 account of the CIA’s pre-9/11 involvement in Afghanistan. Throughout that aftermath, Washington fantasized about remaking the world in its image, only to reveal an ugly image of itself to the world.
  • “We anticipate a black future for America,” bin Laden told ABC News more than three years before the 9/11 attacks. “Instead of remaining United States, it shall end up separated states and shall have to carry the bodies of its sons back to America.”
  • bin Laden also came to grasp, perhaps self-servingly, the benefits of luring Washington into imperial overreach, of “bleeding America to the point of bankruptcy,” as he put it in 2004, through endless military expansionism, thus beating back its global sway and undermining its internal unity.
  • To an unnerving degree, the United States moved toward the enemy’s fantasies of what it might become — a nation divided in its sense of itself, exposed in its moral and political compromises, conflicted over wars it did not want but would not end.
  • “The most frightening aspect of this new threat . . . was the fact that almost no one took it seriously. It was too bizarre, too primitive and exotic.” That is how Lawrence Wright depicts the early impressions of bin Laden and his terrorist network among U.S. officials
  • The books traveling that road to 9/11 have an inexorable, almost suffocating feel to them, as though every turn invariably leads to the first crush of steel and glass.
  • With the system “blinking red,” as CIA Director George Tenet later told the 9/11 Commission, why were all these warnings not enough? Wright lingers on bureaucratic failings
  • Clarke’s conclusion is simple, and it highlights America’s we-know-better swagger, a national trait that often masquerades as courage or wisdom. “America, alas, seems only to respond well to disasters, to be undistracted by warnings,” he writes. “Our country seems unable to do all that must be done until there has been some awful calamity.”
  • The problem with responding only to calamity is that underestimation is usually replaced by overreaction. And we tell ourselves it is the right thing, maybe the only thing, to do.
  • A last-minute flight change. A new job at the Pentagon. A retirement from the fire station. The final tilt of a plane’s wings before impact. If the books about the lead-up to 9/11 are packed with unbearable inevitability, the volumes on the day itself highlight how randomness separated survival from death.
  • Had the World Trade Center, built in the late 1960s and early 1970s, been erected according to the city building code in effect since 1938, Dwyer and Flynn explain, “it is likely that a very different world trade center would have been built.
  • Instead, it was constructed according to a new code that the real estate industry had avidly promoted, a code that made it cheaper and more lucrative to build and own skyscrapers. “It increased the floor space available for rent . . . by cutting back on the areas that had been devoted, under the earlier law, to evacuation and exit,” the authors write. The result: Getting everybody out on 9/11 was virtually impossible.
  • The towers embodied the power of American capitalism, but their design embodied the folly of American greed. On that day, both conditions proved fatal.
  • Garrett Graff quotes Defense Department officials marveling at how American Airlines Flight 77 struck a part of the Pentagon that, because of new anti-terrorism standards, had recently been reinforced and renovated
  • “In any other wedge of the Pentagon, there would have been 5,000 people, and the plane would have flown right through the middle of the building.” Instead, fewer than 200 people were killed in the attack on the Pentagon, including the passengers on the hijacked jet. Chance and preparedness came together.
  • The bravery of police and firefighters is the subject of countless 9/11 retrospectives, but these books also emphasize the selflessness of civilians who morphed into first responders
  • The passengers had made phone calls when the hijacking began and had learned the fate of other aircraft that day. “According to one call, they voted on whether to rush the terrorists in an attempt to retake the plane,” the commission report states. “They decided, and acted.”
  • The civilians aboard United Airlines Flight 93, whose resistance forced the plane to crash into a Pennsylvania field rather than the U.S. Capitol, were later lionized as emblems of swashbuckling Americana
  • Such episodes, led by ordinary civilians, embodied values that the 9/11 Commission called on the nation to display. Except those values would soon be dismantled, in the name of security, by those entrusted to uphold them.
  • Lawyering to death.The phrase appears in multiple 9/11 volumes, usually uttered by top officials adamant that they were going to get things done, laws and rules be damned
  • “I had to show the American people the resolve of a commander in chief that was going to do whatever it took to win,” Bush explains. “No yielding. No equivocation. No, you know, lawyering this thing to death.” In “Against All Enemies,” Clarke recalls the evening of Sept. 11, 2001, when Bush snapped at an official who suggested that international law looked askance at military force as a tool of revenge. “I don’t care what the international lawyers say, we are going to kick some ass,” the president retorted.
  • The message was unmistakable: The law is an obstacle to effective counterterrorism
  • Except, they did lawyer this thing to death. Instead of disregarding the law, the Bush administration enlisted it. “Beginning almost immediately after September 11, 2001, [Vice President Dick] Cheney saw to it that some of the sharpest and best-trained lawyers in the country, working in secret in the White House and the United States Department of Justice, came up with legal justifications for a vast expansion of the government’s power in waging war on terror,
  • Through public declarations and secret memos, the administration sought to remove limits on the president’s conduct of warfare and to deny terrorism suspects the protections of the Geneva Conventions by redefining them as unlawful enemy combatants. Nothing, Mayer argues of the latter effort, “more directly cleared the way for torture than this.”
  • Tactics such as cramped confinement, sleep deprivation and waterboarding were rebranded as “enhanced interrogation techniques,” legally and linguistically contorted to avoid the label of torture. Though the techniques could be cruel and inhuman, the OLC acknowledged in an August 2002 memo, they would constitute torture only if they produced pain equivalent to organ failure or death, and if the individual inflicting such pain really really meant to do so: “Even if the defendant knows that severe pain will result from his actions, if causing such harm is not his objective, he lacks the requisite specific intent.” It’s quite the sleight of hand, with torture moving from the body of the interrogated to the mind of the interrogator.
  • the memo concludes that none of it actually matters. Even if a particular interrogation method would cross some legal line, the relevant statute would be considered unconstitutional because it “impermissibly encroached” on the commander in chief’s authority to conduct warfare
  • You have informed us. Experts you have consulted. Based on your research. You do not anticipate. Such hand-washing words appear throughout the memos. The Justice Department relies on information provided by the CIA to reach its conclusions; the CIA then has the cover of the Justice Department to proceed with its interrogations. It’s a perfect circle of trust.
  • In these documents, lawyers enable lawlessness. Another May 2005 memo concludes that, because the Convention Against Torture applies only to actions occurring under U.S. jurisdiction, the CIA’s creation of detention sites in other countries renders the convention “inapplicable.”
  • avid Cole describes the documents as “bad-faith lawyering,” which might be generous. It is another kind of lawyering to death, one in which the rule of law that the 9/11 Commission urged us to abide by becomes the victim.
  • Similarly, because the Eighth Amendment’s prohibition on cruel and unusual punishment is meant to protect people convicted of crimes, it should not apply to terrorism detainees — because they have not been officially convicted of anything. The lack of due process conveniently eliminates constitutional protections
  • Years later, the Senate Intelligence Committee would investigate the CIA’s post-9/11 interrogation program. Its massive report — the executive summary of which appeared as a 549-page book in 2014 — found that torture did not produce useful intelligence, that the interrogations were more brutal than the CIA let on, that the Justice Department did not independently verify the CIA’s information, and that the spy agency impeded oversight by Congress and the CIA inspector general.
  • “The CIA’s effectiveness representations were almost entirely inaccurate,” the Senate report concluded. It is one of the few lies of the war on terror unmasked by an official government investigation and public report, but just one of the many documented in the 9/11 literature.
  • Officials in the war on terror didn’t deceive or dissemble just with lawmakers or the public. In the recurring tragedy of war, they lied just as often to themselves.
  • “The decision to invade Iraq was one made, finally and exclusively, by the president of the United States, George W. Bush,” he writes.
  • n Woodward’s “Bush at War,” the president admitted that before 9/11, “I didn’t feel that sense of urgency [about al-Qaeda], and my blood was not nearly as boiling.”
  • A president initially concerned about defending and preserving the nation’s moral goodness against terrorism found himself driven by darker impulses. “I’m having difficulty controlling my bloodlust,” Bush confessed to religious leaders in the Oval Office on Sept. 20, 2001,
  • Bloodlust, moral certainty and sudden vulnerability make a dangerous combination. The belief that you are defending good against evil can lead to the belief that whatever you do to that end is good, too.
  • Draper distills Bush’s worldview: “The terrorists’ primary objective was to destroy America’s freedom. Saddam hated America. Therefore, he hated freedom. Therefore, Saddam was himself a terrorist, bent on destroying America and its freedom.”
  • The president assumed the worst about what Hussein had done or might do, yet embraced best-case scenarios of how an American invasion would proceed.
  • “Iraqis would rejoice at the sight of their Western liberators,” Draper recaps. “Their newly shared sense of national purpose would overcome any sectarian allegiances. Their native cleverness would make up for their inexperience with self-government. They would welcome the stewardship of Iraqi expatriates who had not set foot in Baghdad in decades. And their oil would pay for everything.”
  • It did not seem to occur to Bush and his advisers that Iraqis could simultaneously hate Hussein and resent the Americans — feelings that could have been discovered by speaking to Iraqis and hearing their concerns.
  • few books on the war that gets deep inside Iraqis’ aversion to the Americans in their midst. “What gives them the right to change something that’s not theirs in the first place?” a woman in a middle-class Baghdad neighborhood asks him. “I don’t like your house, so I’m going to bomb it and you can rebuild it again the way I want it, with your money?
  • The occupation did not dissuade such impressions when it turned the former dictator’s seat of government into its own luxurious Green Zone, or when it retrofitted the Abu Ghraib prison (“the worst of Saddam’s hellholes,” Shadid calls it) into its own chamber of horrors.
  • Shadid hears early talk of the Americans as “kuffar” (heathens), a 51-year-old former teacher complains that “we’ve exchanged a tyrant for an occupier.”
  • Shadid understood that governmental legitimacy — who gets to rule, and by what right — was a matter of overriding importance for Iraqis. “The Americans never understood the question,” he writes; “Iraqis never agreed on the answer.
  • When the United States so quickly shifted from liberation to occupation, it lost whatever legitimacy it enjoyed. “Bush handed that enemy precisely what it wanted and needed, proof that America was at war with Islam, that we were the new Crusaders come to occupy Muslim land,” Clarke writes. “It was as if Usama bin Laden, hidden in some high mountain redoubt, were engaging in long-range mind control of George Bush, chanting ‘invade Iraq, you must invade Iraq.’ ”
  • The foolishness and arrogance of the American occupation didn’t help. In “Imperial Life in the Emerald City: Inside Iraq’s Green Zone,” Rajiv Chandrasekaran explains how, even as daily security was Iraqis’ overwhelming concern, viceroy L. Paul Bremer, Bush’s man in Baghdad, was determined to turn the country into a model free-market economy, complete with new investment laws, bankruptcy courts and a state-of-the-art stock exchange.
  • a U.S. Army general, when asked by local journalists why American helicopters must fly so low at night, thus scaring Iraqi children, replied that the kids were simply hearing “the sound of freedom.”Message: Freedom sounds terrifying.
  • For some Americans, inflicting that terror became part of the job, one more tool in the arsenal. In “The Forever War” by Dexter Filkins, a U.S. Army lieutenant colonel in Iraq assures the author that “with a heavy dose of fear and violence, and a lot of money for projects, I think we can convince these people that we are here to help them.”
  • Chandrasekaran recalls the response of a top communications official under Bremer, when reporters asked about waves of violence hitting Baghdad in the spring of 2004. “Off the record: Paris is burning,” the official told the journalists. “On the record: Security and stability are returning to Iraq.”
  • the Iraq War, conjured in part on the false connections between Iraq and al-Qaeda, ended up helping the terrorist network: It pulled resources from the war in Afghanistan, gave space for bin Laden’s men to regroup and spurred a new generation of terrorists in the Middle East. “A bigger gift to bin Laden was hard to imagine,” Bergen writes.
  • “U.S. officials had no need to lie or spin to justify the war,” Washington Post reporter Craig Whitlock writes in “The Afghanistan Papers,” a damning contrast of the war’s reality vs. its rhetoric. “Yet leaders at the White House, the Pentagon and the State Department soon began to make false assurances and to paper over setbacks on the battlefield.” As the years passed, the deceit became entrenched, what Whitlock calls “an unspoken conspiracy” to hide the truth.
  • Afghanistan was where al-Qaeda, supported by the Taliban, had made its base — it was supposed to be the good war, the right war, the war of necessity and not choice, the war endorsed at home and abroad.
  • If Iraq was the war born of lies, Afghanistan was the one nurtured by them
  • Whitlock finds commanding generals privately admitting that they long fought the war “without a functional strategy.” That, two years into the conflict, Rumsfeld complained that he had “no visibility into who the bad guys are.”
  • That Army Lt. Gen. Douglas Lute, a former coordinator of Iraq and Afghanistan policy, acknowledged that “we didn’t have the foggiest idea of what we were undertaking.”
  • That U.S. officials long wanted to withdraw American forces but feared — correctly so, it turns out — that the Afghan government might collapse. “Bin Laden had hoped for this exact scenario,” Whitlock observes. “To lure the U.S. superpower into an unwinnable guerrilla conflict that would deplete its national treasury and diminish its global influence.”
  • All along, top officials publicly contradicted these internal views, issuing favorable accounts of steady progress
  • Bad news was twisted into good: Rising suicide attacks in Kabul meant the Taliban was too weak for direct combat, for instance, while increased U.S. casualties meant America was taking the fight to the enemy.
  • deceptions transpired across U.S. presidents, but the Obama administration, eager to show that its first-term troop surge was working, “took it to a new level, hyping figures that were misleading, spurious or downright false,” Whitlock writes. And then under President Donald Trump, he adds, the generals felt pressure to “speak more forcefully and boast that his war strategy was destined to succeed.”
  • in public, almost no senior government officials had the courage to admit that the United States was slowly losing,” Whitlock writes. “With their complicit silence, military and political leaders avoided accountability and dodged reappraisals that could have changed the outcome or shortened the conflict.”
  • Deputy Secretary of State Richard Armitage traveled to Moscow shortly after 9/11 to give officials a heads up about the coming hostilities in Afghanistan. The Russians, recent visitors to the graveyard of empires, cautioned that Afghanistan was an “ambush heaven” and that, in the words of one of them, “you’re really going to get the hell kicked out of you.”
  • a war should not be measured only by the timing and the competence of its end. We still face an equally consequential appraisal: How good was this good war if it could be sustained only by lies?
  • In the two decades since the 9/11 attacks, the United States has often attempted to reconsider its response
  • They are written as though intending to solve problems. But they can be read as proof that the problems have no realistic solution, or that the only solution is to never have created them.
  • the report sets the bar for staying so high that an exit strategy appears to be its primary purpose.
  • he counterinsurgency manual is an extraordinary document. Implicitly repudiating notions such as “shock and awe” and “overwhelming force,” it argues that the key to battling an insurgency in countries such as Iraq and Afghanistan is to provide security for the local population and to win its support through effective governance
  • It also attempts to grasp the nature of America’s foes. “Most enemies either do not try to defeat the United States with conventional operations or do not limit themselves to purely military means,” the manual states. “They know that they cannot compete with U.S. forces on those terms. Instead, they try to exhaust U.S. national will.” Exhausting America’s will is an objective that al-Qaeda understood well.
  • “Counterinsurgents should prepare for a long-term commitment,” the manual states. Yet, just a few pages later, it admits that “eventually all foreign armies are seen as interlopers or occupiers.” How to accomplish the former without descending into the latter? No wonder so many of the historical examples of counterinsurgency that the manual highlights, including accounts from the Vietnam War, are stories of failure.
  • “Soldiers and Marines are expected to be nation builders as well as warriors,” the manual proclaims, but the arduous tasks involved — reestablishing government institutions, rebuilding infrastructure, strengthening local security forces, enforcing the rule of law — reveal the tension at the heart of the new doctrine
  • In his foreword, Army Lt. Col. John Nagl writes that the document’s most lasting impact may be as a catalyst not for remaking Iraq or Afghanistan, but for transforming the Army and Marine Corps into “more effective learning organizations,” better able to adapt to changing warfare. And in her introduction, Sarah Sewall, then director of Harvard’s Carr Center for Human Rights Policy, concludes that its “ultimate value” may be in warning civilian officials to think hard before engaging in a counterinsurgency campaign.
  • “The thing that got to everyone,” Finkel explains in the latter book, “was not having a defined front line. It was a war in 360 degrees, no front to advance toward, no enemy in uniform, no predictable patterns, no relief.” It’s a powerful summation of battling an insurgency.
  • Hitting the wrong house is what counterinsurgency doctrine is supposed to avoid. Even successfully capturing or killing a high-value target can be counterproductive if in the process you terrorize a community and create more enemies. In Iraq, the whole country was the wrong house. America’s leaders knew it was the wrong house. They hit it anyway.
  • Another returning soldier, Nic DeNinno, struggles to tell his wife about the time he and his fellow soldiers burst into an Iraqi home in search of a high-value target. He threw a man down the stairs and held another by the throat. After they left, the lieutenant told him it was the wrong house. “The wrong f---ing house,” Nic says to his wife. “One of the things I want to remember is how many times we hit the wrong house.”
  • “As time passes, more documents become available, and the bare facts of what happened become still clearer,” the report states. “Yet the picture of how those things happened becomes harder to reimagine, as that past world, with its preoccupations and uncertainty, recedes.” Before making definitive judgments, then, they ask themselves “whether the insights that seem apparent now would really have been meaningful at the time.”
  • Two of the latest additions to the canon, “Reign of Terror” by Spencer Ackerman and “Subtle Tools” by Karen Greenberg, draw straight, stark lines between the earliest days of the war on terror and its mutations in our current time, between conflicts abroad and divisions at home. These works show how 9/11 remains with us, and how we are still living in the ruins.
  • When Trump declared that “we don’t have victories anymore” in his 2015 speech announcing his presidential candidacy, he was both belittling the legacy of 9/11 and harnessing it to his ends. “His great insight was that the jingoistic politics of the War on Terror did not have to be tied to the War on Terror itself,” Ackerman writes. “That enabled him to tell a tale of lost greatness.” And if greatness is lost, someone must have taken it.
  • “Trump had learned the foremost lesson of 9/11,” Ackerman writes, “that the terrorists were whomever you said they were.”
  • The backlash against Muslims, against immigrants crossing the southern border and against protesters rallying for racial justice was strengthened by the open-ended nature of the global war on terror.
  • the war is not just far away in Iraq or Afghanistan, in Yemen or Syria, but it’s happening here, with mass surveillance, militarized law enforcement and the rebranding of immigration as a threat to the nation’s security rather than a cornerstone of its identity
  • the Authorization for Use of Military Force, drafted by administration lawyers and approved by Congress just days after the attacks, as the moment when America’s response began to go awry. The brief joint resolution allowed the president to use “all necessary and appropriate force” against any nation, organization or person who committed the attacks, and to prevent any future ones.
  • It was the “Ur document in the war on terror and its legacy,” Greenberg writes. “Riddled with imprecision, its terminology was geared to codify expansive powers.” Where the battlefield, the enemy and the definition of victory all remain vague, war becomes endlessly expansive, “with neither temporal nor geographical boundaries.”
  • This was the moment the war on terror was “conceptually doomed,” Ackerman concludes. This is how you get a forever war.
  • There were moments when an off-ramp was visible. The killing of bin Laden in 2011 was one such instance, Ackerman argues, but “Obama squandered the best chance anyone could ever have to end the 9/11 era.”
  • The author assails Obama for making the war on terror more “sustainable” through a veneer of legality — banning torture yet failing to close the detention camp at Guantánamo Bay and relying on drone strikes that “perversely incentivized the military and the CIA to kill instead of capture.”
  • There would always be more targets, more battlefields, regardless of president or party. Failures became the reason to double down, never wind down.
  • The longer the war went on, the more that what Ackerman calls its “grotesque subtext” of nativism and racism would move to the foreground of American politics
  • Absent the war on terror, it is harder to imagine a presidential candidate decrying a sitting commander in chief as foreign, Muslim, illegitimate — and using that lie as a successful political platform.
  • Absent the war on terror, it is harder to imagine a travel ban against people from Muslim-majority countries. Absent the war on terror, it is harder to imagine American protesters labeled terrorists, or a secretary of defense describing the nation’s urban streets as a “battle space” to be dominated
  • In his latest book on bin Laden, Bergen argues that 9/11 was a major tactical success but a long-term strategic failure for the terrorist leader. Yes, he struck a vicious blow against “the head of the snake,” as he called the United States, but “rather than ending American influence in the Muslim world, the 9/11 attacks greatly amplified it,” with two lengthy, large-scale invasions and new bases established throughout the region.
  • “A vastly different America has taken root” in the two decades since 9/11, Greenberg writes. “In the name of retaliation, ‘justice,’ and prevention, fundamental values have been cast aside.”
  • the legacy of the 9/11 era is found not just in Afghanistan or Iraq, but also in an America that drew out and heightened some of its ugliest impulses — a nation that is deeply divided (like those “separated states” bin Laden imagined); that bypasses inconvenient facts and embraces conspiracy theories; that demonizes outsiders; and that, after failing to spread freedom and democracy around the world, seems less inclined to uphold them here
  • Seventeen years after the 9/11 Commission called on the United States to offer moral leadership to the world and to be generous and caring to our neighbors, our moral leadership is in question, and we can barely be generous and caring to ourselves.
  • Still reeling from an attack that dropped out of a blue sky, America is suffering from a sort of post-traumatic stress democracy. It remains in recovery, still a good country, even if a broken good country.
  • 9/11 was a test. Thebooks of the lasttwo decades showhow America failed.
  • Deep within the catalogue of regrets that is the 9/11 Commission report
woodlu

The Indian government's addiction to subsidies has dire effects | The Economist - 0 views

  • Delhi’s air is so filthy that on November 13th the government decreed an indefinite closure. One rarely mentioned reason for the pollution also plays a part in a host of other troubles: subsidies.
  • Despite endless warnings about moral hazard and distorted markets, politicians and bureaucrats keep creating them
  • Rice uses a lot of water, and the region around Delhi is fairly dry, but decades ago the government began paying fat prices to push rice-growing
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  • It also subsidised wheat, fertiliser and diesel to fuel water pumps.
  • farmers pumped ever more water to grow ever more wheat and rice. With some 9m pumps, parched India now uses more groundwater than America and China combined, and holds far bigger grain stocks than it needs.
  • They have also created dangerous dependence.
  • Those for electricity make power more affordable, but leave the distribution network underfunded
  • To compensate, commercial consumers pay up to four times more for power, helping make Indian manufacturers uncompetitive.
  • Only 77% of electricity is paid for, piling up debts reckoned in 2019 at around $57bn.
  • Indian Railways can afford government-imposed low passenger fares only by raising the cost of freight. It relies on shunting coal from forest-devouring strip mines to smoke-belching power plants.
  • A World Trade Organisation (WTO) agreement required India to phase out varied export-promotion subsidies by 2016.
  • Instead the country ramped up several programmes, earning in 2019 a sharp reprimand from the WTO
  • It was chastised again this year, this time for concealing subsidies for agricultural exports.
  • The WTO might be more sympathetic if it were to study a typical Indian election campaign, where parties vie to offer ever-higher handouts.
  • The current government started off in 2014 insisting it would slash subsidies, and compressed a multiplicity of government schemes into just 40 main ones (not counting various hidden handouts and cross-subsidies)
  • During the worst of the covid slump, many economists counselled boosting demand by giving cash to the hardest hit. The government’s biggest initiative instead propped up manufacturers, encouraging them to invest where bureaucrats think they should by offering “production-linked incentives” to make things like solar panels. In other words, it offered subsidies.
  • Farmers hurry to clear the rice harvest before planting spring wheat, burning off stubble in a vast pall of acrid smoke.
Javier E

Vladimir Putin's 20-Year March to War in Ukraine-and How the West Mishandled It - WSJ - 0 views

  • For nearly two decades, the U.S. and the European Union vacillated over how to deal with the Russian leader as he resorted to increasingly aggressive steps to reassert Moscow’s dominion over Ukraine and other former Soviet republics.
  • A look back at the history of the Russian-Western tensions, based on interviews with more than 30 past and present policy makers in the U.S., EU, Ukraine and Russia, shows how Western security policies angered Moscow without deterring it.
  • t also shows how Mr. Putin consistently viewed Ukraine as existential for his project of restoring Russian greatness.
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  • The biggest question thrown up by this history is why the West failed to see the danger earlier.
  • The North Atlantic Treaty Organization made a statement in 2008 that Ukraine and Georgia would one day join, and over nearly 14 years never followed through on membership. The EU drew up a trade deal with Ukraine without factoring in Russia’s strong-arm response. Western policies didn’t change decisively in reaction to limited Russian invasions of Georgia and Ukraine, encouraging Mr. Putin to believe that a full-blown campaign to conquer Ukraine wouldn’t meet with determined resistance—either internationally or in Ukraine, a country whose independence he said repeatedly was a regrettable accident of history.
  • The roots of the war lie in Russia’s deep ambivalence about its place in the world after the end of the Soviet Union
  • Viewed from elsewhere in Europe, NATO’s eastward enlargement didn’t threaten Russia’s security. NATO membership is at core a promise to collectively defend a member that comes under attack. The alliance agreed in 1997 not to permanently station substantial combat forces in its new eastern members that were capable of threatening Russian territory. Russia retained a massive nuclear arsenal and the biggest conventional forces in Europe.
  • Mr. Putin thought of Russian security interests more broadly, linking the preservation of Moscow’s influence in adjacent countries with his goals of reviving Russia’s global power and cementing his authoritarian rule at home.
  • U.S. intelligence learned in 2005 that Mr. Putin’s government had carried out a broad review of Russian policy in the “near abroad,” as the Kremlin termed former Soviet republics. From now on, Russia would take a more assertive approach and vigorously contest perceived U.S. influence.
  • Mr. Bush asked Mr. Putin why he thought the end of the Soviet Union had been the greatest tragedy of the 20th century. Surely the deaths of more than 20 million Soviet citizens in World War II was worse, Mr. Bush said. Mr. Putin replied that the USSR’s demise was worse because it had left 25 million Russians outside the Russian Federation, according to Ms. Rice, who was present.
  • Perceptions changed in January 2007, when Mr. Putin vented his growing frustrations about the West at the annual Munich Security Conference. In a long and icy speech, he denounced the U.S. for trying to rule a unipolar world by force, accused NATO of breaking promises by expanding into Europe’s east, and called the West hypocritical for lecturing Russia about democracy. A chill descended on the audience of Western diplomats and politicians at the luxury Hotel Bayerischer Hof, participants recalled.
  • “We didn’t take the speech as seriously as we should have,” said Mr. Ischinger. “It takes two to tango, and Mr. Putin didn’t want to tango any more.
  • “I need a MAP. We need to give the Ukrainian people a strategic focus on the way ahead. We really need this,” Mr. Yushchenko said, Ms. Rice recalled. Ms. Rice, who was initially uncertain about having Ukraine in NATO, gave a noncommittal answer. When the request was debated in the National Security Council, Mr. Bush said NATO should be open to all countries that qualify and want to join.
  • Try as it might, the White House couldn’t overcome German and French resistance to offering a MAP to Ukraine and Georgia.
  • Berlin and Paris pointed to unsolved territorial conflicts in Georgia, low public support for NATO in Ukraine, and the weakness of democracy and the rule of law in both.
  • Ms. Merkel, remembering Mr. Putin’s speech in Munich, believed he would see NATO invitations as a direct and deliberate threat to him, according to Christoph Heusgen, her chief diplomatic adviser at the time. She was also convinced Ukraine and Georgia would bring NATO no benefits as members, Mr. Heusgen said.
  • Ms. Rice, a Soviet and Russia expert, said Mr. Putin wanted to use Ukraine, Belarus and Georgia to rebuild Russia’s global power, and that extending the shield of NATO membership could be the last chance to stop him. German and French officials were skeptical, believing Russia’s economy was too weak and dependent on Western technology to become a serious threat again.
  • In the final session, Ms. Merkel debated in a corner of the room with leaders from Poland and other eastern members of NATO, who advocated strenuously on behalf of Ukraine and Georgia. Lithuanian President Valdas Adamkus strongly criticized Ms. Merkel’s stance, warning that a failure to stop Russia’s resurgence would eventually threaten the eastern flank of the alliance.
  • “We agreed today that these countries will become members of NATO,” it read. But it didn’t say when. And there was no MAP.
  • Many of Ukraine’s supporters were heartened. But some officials in Bucharest feared it was the worst of both worlds. NATO had just painted a target on the backs of Ukraine and Georgia without giving them any protection.
  • Mr. Putin joined the summit the next day. He spoke behind closed doors and made clear his disdain for NATO’s move, describing Ukraine as a “made-up” country.
  • “He then became a fervent nationalist,” said Mr. Heusgen. “His great anxiety was that Ukraine could become economically and politically successful and that the Russians would eventually ask themselves ‘Why are our brothers doing so well, while our situation remains dire?’ ”
  • Mr. Putin’s show of military force backfired politically. He had won control of Crimea and part of Donbas, but he was losing Ukraine.
  • divisions manifested themselves during Ukraine’s bitterly fought elections and during the Orange and Maidan revolutions. But they receded after 2014. Many Russophone Ukrainians fled from repression and economic collapse in separatist-run Donbas. Even eastern Ukraine came to fear Russian influence. Mr. Putin was doing what Ukrainian politicians had struggled with: uniting a nation.
  • Mr. Putin never tried to implement the Minsk accords, said Mr. Heusgen, the German chancellery aide, because their full implementation would have resolved the conflict and allowed Ukraine to move on.
  • At a conversation at the Hilton Hotel in Brisbane, Australia, during a G-20 summit in late 2014, Ms. Merkel realized that Mr. Putin had entered a state of mind that would never allow for reconciliation with the West, according to a former aide.
  • The conversation was about Ukraine, but Mr. Putin launched into a tirade against the decadence of democracies, whose decay of values, he said, was exemplified by the spread of “gay culture.”
  • The Russian warned Ms. Merkel earnestly that gay culture was corrupting Germany’s youth. Russia’s values were superior and diametrically opposed to Western decadence, he said
  • He expressed disdain for politicians beholden to public opinion. Western politicians were unable to be strong leaders because they were hobbled by electoral pressures and aggressive media, he told Ms. Merkel.
  • Ms. Merkel’s policy reflected a consensus in Berlin that mutually beneficial trade with the EU would tame Russian geopolitical ambitions.
  • The U.S. and some NATO allies, meanwhile, began a multiyear program to train and equip Ukraine’s armed forces, which had proved no match for Russia’s in Donbas.
  • The level of military support was limited because the Obama administration figured that Russia would retain a considerable military advantage over Ukraine and it didn’t want to provoke Moscow.
  • President Trump expanded the aid to include Javelin antitank missiles, but delayed it in 2019 while he pressed Ukraine’s new president, Volodymyr Zelensky, to look for information the White House hoped to use against Democratic presidential hopeful Joe Biden and Mr. Biden’s son, an act for which he was impeached.
  • in telephone conversations from 2020 onward, Mr. Macron noticed changes in Mr. Putin. The Russian leader was rigorously isolating himself during the Covid-19 pandemic, requiring even close aides to quarantine themselves before they could meet him.
  • The man on the phone with Mr. Macron was different from the one he had hosted in Paris and the Riviera. “He tended to talk in circles, rewriting history,” recalled an aide to Mr. Macron.
  • The U.S. no longer saw Europe as a primary focus. Mr. Biden wanted neither a “reset” of relations with Mr. Putin, like President Obama had declared in 2009, nor to roll back Russia’s power. The NSC cast the aim as a “stable, predictable relationship.” It was a modest goal that would soon be tested by Mr. Putin’s bid to rewrite the ending of the Cold War.
  • In early 2021, Mr. Biden became the latest U.S. president who wanted to focus his foreign policy on the strategic competition with China, only to become entangled in events elsewhere.
  • When Mr. Zelensky met with Mr. Biden in Washington in September, the U.S. finally announced the $60 million in military support, which included Javelins, small arms and ammunition. The aid was in line with the modest assistance the Obama and Trump administrations had supplied over the years, which provided Ukraine with lethal weaponry but didn’t include air defense, antiship missiles, tanks, fighter aircraft or drones that could carry out attacks.
  • U.S. national security officials discussed the highly classified intelligence at a meeting in the White House on Oct. 27. Director of National Intelligence Avril Haines warned that Russian forces could be ready to attack by the end of January 2022.
  • On Nov. 17, Ukraine’s defense minister, Oleksii Reznikov, urged the U.S. to send air defense systems and additional antitank weapons and ammunition during a meeting at the Pentagon, although he thought the initial Russian attacks might be limited.
  • Gen. Mark Milley, the chairman of the Joint Chiefs of Staff, told Mr. Reznikov that Ukraine could be facing a massive invasion.
  • Work began that month on a new $200 million package in military assistance from U.S. stocks. The White House, however, initially held off authorizing it, angering some lawmakers. Administration officials calculated arms shipments wouldn’t be enough to deter Mr. Putin from invading if his mind was made up, and might even provoke him to attack.
  • The cautious White House approach was consistent with Defense Secretary Lloyd Austin’s thinking. He favored a low-profile, gradual approach to assisting Ukraine’s forces and fortifying NATO’s defenses that would grow stronger in line with U.S. intelligence indications about Russia’s intent to attack.
  • A paramount goal was to avoid a direct clash between U.S. and Russian forces—what Mr. Austin called his “North Star.”
  • On Dec. 27, Mr. Biden gave the go-ahead to begin sending more military assistance for Ukraine, including Javelin antitank missiles, mortars, grenade launchers, small arms and ammunition.
  • Three days later, Mr. Biden spoke on the phone with Mr. Putin and said the U.S. had no plan to station offensive missiles in Ukraine and urged Russia to de-escalate. The two leaders were on different wavelengths. Mr. Biden was talking about confidence-building measures. Mr. Putin was talking about effectively rolling back the West.
  • Gen. Mingus had fought in Iraq and Afghanistan, been wounded and earned a Purple Heart, and he spoke frankly about the challenges Russian forces would face. Invading a territory was one thing, but holding it was another, and the intervention could turn into a yearslong quagmire, he said. The Russians showed no reaction.
  • Mr. Macron found Mr. Putin even more difficult to talk to than previously, according to French officials. The six-hour conversation went round in circles as Mr. Putin gave long lectures about the historical unity of Russia and Ukraine and the West’s record of hypocrisy, while the French president tried to bring the conversation back to the present day and how to avoid a war.
  • Mr. Scholz argued that the international order rested on the recognition of existing borders, no matter how and when they had been created. The West would never accept unraveling established borders in Europe, he warned. Sanctions would be swift and harsh, and the close economic cooperation between Germany and Russia would end. Public pressure on European leaders to sever all links to Russia would be immense, he said.
  • Mr. Putin then repeated his disdain for weak Western leaders who were susceptible to public pressure.
  • Mr. Zelensky said Mr. Putin couldn’t be trusted to uphold such an agreement and that most Ukrainians wanted to join NATO. His answer left German officials worried that the chances of peace were fading. Aides to Mr. Scholz believed Mr. Putin would maintain his military pressure on Ukraine’s borders to strangle its economy and then eventually move to occupy the country.
  • Mr. Putin said he had decided to recognize the independence of separatist enclaves in eastern Ukraine. He said fascists had seized power in Kyiv, while NATO hadn’t responded to his security concerns and was planning to deploy nuclear missiles in Ukraine.
  • “We are not going to see each other for a while, but I really appreciate the frankness of our discussions,” Mr. Putin told Mr. Macron. “I hope we can talk again one day.”
Javier E

The Bankrupt Colonialist - Comment is Freed - 0 views

  • Up to now the main question has been about whether sanctions and the pressure on the Russian economy will force Putin to abandon his aggression. There is, however, also a post-war issue, which is the cost of reconstruction. Estimates of the impact of the war on Ukraine are already well over $100 billion
  • Understandably Kyiv wants compensation. This is raised in the kommersant story. According to Podolyak:  “compensatory mechanisms should be clearly spelled out: at the expense of what and from what budget all this will be restored.
  • Yet reparations of this sort - a more than reasonable request - would not only amount to an admission of guilt for the damage caused (Russia ludicrously claims only military targets have been hit) but will be beyond the capacity of the Russian economy, in its enfeebled state, to support.  
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  • Looking forward the most worrying issue for the Kremlin is the isolation of the country’s economy. Since the start of the war the Russian stock market has closed, interest rates have doubled, inflation has shot up, and the value of the rouble has plummeted. One recent estimate suggests that Russia faces a drop of from 7 to 15% in GDP in 2022. It risks defaulting on it’s debts.
  • it is hard to see how Russia is going to have much spare capacity to compensate Ukraine for the damage it has inflicted upon it, even in the unlikely event it was prepared to offer to do so as part of an agreement.  
  • Second, given what has happened over the past few weeks to the population of these territories, those remaining will be more hostile to Russia and will likely resist an imposed government.
  • At the very least Moscow will want the provinces of Donetsk and Luhansk in their entirety, and not just the previous separatist enclaves, to be annexed or given some independent status. This was, after all, the demand with which Russia entered the war.  
  • It is, however, by no means straightforward even from a Russian perspective.  
  • First, if Ukraine has not otherwise been defeated and so “demilitarised” then this will be a frontier that will require defending for the indefinite future.
  • There is a further issue here even if there is no agreement. The cities and towns that have suffered the worst as a result of Putin’s war are those that were once claimed to be pro-Russian and so required “liberation” from Ukrainian “genocide”.
  • So the cost of occupying even this limited part of the country will be considerable and that is before even thinking about the expense required to render those horribly damaged towns and cities at all habitable, with effective infrastructure and accommodation.
  • Their economies were in decline before 2014 and that process has since accelerated. They are now poorer than other parts of Ukraine and prone to criminality.
  • The capital Grozny was rebuilt but the economy functioned thereafter at barely a fraction of pre-war levels. Despite efforts to make the economy more productive, in 2017 it was estimated that Chechnya required 80% of the government budget to be subsidised.
  • The other implication is that while economic sanctions have not yet given the West much leverage over Putin’s war strategy they do offer it leverage over his peace strategy.
  • Attempts to turn the situation around have not been helped by Chechnya’s rampant corruption. So this relatively small territory is already costing Moscow close to $3 billion a year. Crimea, annexed in 2014, may be costing a similar amount.  
  • Or take Syria. Here Russian air power was also used in a  brutal way, this time against rebel populations and in support of the Assad regime. That campaign succeeded in keeping Assad in power but Russia lacks the resources to reconstruct Syria
  • “Now moving into its eleventh year, the conflict in Syria has inflicted an almost unimaginable degree of devastation and loss on the Syrian people and their economy. Over 350,000 verifiable deaths have been directly attributed to the conflict so far, but the number of unaccounted lethal and non-lethal casualties is almost certainly far higher
  • More than half the country’s pre-conflict population (of almost 21 million) has been displaced—one of the largest displacements of people since World War II—and, partly as a result, by 2019, economic activity in Syria had shrunk by more than 50% compared to what it had been in 2010.”   
  • Syria was a far cheaper war for Russia to wage, probably in the low billions of dollars, in fuel, ordnance, and personnel cost. Far less has gone into economic assistance and much of that has been returned to Russia as arms sales and gas and infrastructure contracts
  • The strains on the Russian war effort are already evident, from the army’s hesitation about trying to fight their way into cities and the recruitment of mercenaries, to the reported appeal to China for help with supplies of military equipment and Putin’s fury with his intelligence agencies for misleading assessments and wasting roubles on Ukrainian agents who turned out to be useless
  • He is now having to choose between a range of poor outcomes, which the US suggests may include escalation to chemical use (which would be both militarily pointless and test further Western determination not to get directly involved).
  • War is rarely a good investment. Putin has acted for reasons of political and not economic opportunism. The prospects for any territory “liberated” by Russia is bleak. They will not prosper and will remain cut off from the international economy. To the extent that people stay they will have to be subsidised for all their needs while there will be little economic activity.  
  • Because of the destruction the short-term prospects will be bleak even if these territories are fully returned to Ukraine. But over the longer-term they will be much better off because of the amount of economic assistance Ukraine will receive and its integration into the international economy.
  • as Germany and Japan showed after 1945 even shattered economies can be rebuilt to even greater levels of efficiency with sufficient resilience and resources. That is another reason why Western financial assistance and investment will be especially vital - Ukraine’s full recovery will serve as a testament to Putin’s failure.
  •  it is worth keeping this analysis in mind when considering prospective peace deals. The Russians may have underestimated the costs of conquest from the start but their approach to war has raised those costs considerably, especially in those parts of Ukraine close to Russia.
  • Third, these territories will be economically wrecked and with no prospect of recovery so long as they are separated from Ukraine. 
  • The question of the future of sanctions and how they might be unwound is not one to be discussed separately from any peace talks. They are a vital part of the negotiations. As there can be no Western-led peace talks without Ukraine, it should be made clear to Moscow that for now this is a card for Zelensky to play.
  • The future of the Russian economy can then be in his hands. Should a moment come to start to ease sanctions, some leverage will be required to ensure that any agreement is being honoured. There could be a link  to reparations for the terrible damage caused.
  • As his original war plans failed Putin has insisted his forces follow a disruptive and cruel strategy that has put his original aims even more out of reach and Ukraine with a say over the future of the Russian economy.
Javier E

Inside Gary Gensler's SEC Campaign to Rein In the Crypto Industry - The New York Times - 0 views

  • Under his leadership, though, the S.E.C. has made crypto a priority, nearly doubling its enforcement team to 50 members. In February, the agency levied a $100 million fine on the crypto lending company BlockFi over registration failures; BlockFi suspended operations this month as a result of its ties to FTX.
  • According to public filings, the agency is also investigating the process by which Coinbase, the largest U.S. crypto exchange, chooses which cryptocurrencies to offer.
  • “There were a lot of entrepreneurs that grew up in this field and chose to be noncompliant,” Mr. Gensler said in an interview last month at the S.E.C. headquarters in Washington. “We will be a cop on the beat.”
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  • Mr. Gensler’s central claim is simple: For all their novel attributes, most cryptocurrencies are securities, like stocks or other investment products. That means the developers who issue cryptocurrencies must register with the U.S. government and disclose information about their plans.
  • Even before FTX’s collapse, the debate was reaching an inflection point: A federal judge is expected to rule in the coming months in a lawsuit brought by the S.E.C. that charges the cryptocurrency issuer Ripple with offering unregistered securities. A victory for the government would strengthen Mr. Gensler’s hand, establishing a precedent that could pave the way for more lawsuits against crypto companies.
  • A former Goldman Sachs partner, Mr. Gensler became one of the most aggressive financial regulators in Washington after the 2008 recession. As chairman of the Commodity Futures Trading Commission, an agency that regulates the financial markets, he helped carry out the 2010 Dodd-Frank Act, which aimed to protect consumers and rein in Wall Street.
  • when Mr. Gensler took over the S.E.C., the crypto industry hailed him as an enthusiast who understood the technology’s potential. Bitcoin “is in good hands,” one venture investor tweeted.
  • But it soon became clear that Mr. Gensler would take a hard-line approach. In July 2021, he met with a group of industry representatives, including the leader of the Blockchain Association, a prominent crypto trade group. He bluntly informed her that most of the organization’s members were probably violating federal rules, two people familiar with the meeting said.
  • Rather than devise new rules for crypto, Mr. Gensler has focused on enforcing the current ones as broadly as possible.
  • A few days later, Mr. Gensler called crypto “the Wild West” while speaking at a national security conference in Washington.
  • Behind closed doors, Mr. Gensler has been equally aggressive. “I’ve heard about other groups going in and getting in arguments,” said Perianne Boring, the founder of the Chamber of Digital Commerce, a crypto advocacy group. “You want to have a fight, you can have one.”
  • In crypto circles, mentioning Mr. Gensler’s name elicits quivers of fury. A Twitter account for the crypto company LBRY once called him “a demon wearing human flesh.”
  • The basis for Mr. Gensler’s claim that cryptocurrencies are securities is a legal analysis known as the Howey Test, which the Supreme Court outlined in 1946. Under the framework, a financial product is deemed a security when it offers the chance to invest in a “common enterprise” with the expectation of profiting from the efforts of others.
  • FTX’s collapse has unleashed a new level of scrutiny. Screenshots of Mr. Gensler’s public meeting schedule, which show multiple sessions with Mr. Bankman-Fried, have circulated on Twitter, where crypto fans who once said Mr. Gensler was overly aggressive have now accused him of cozying up to a criminal.
  • “If you don’t like him, you don’t like the current S.E.C., then of course you’re just going to blame him, regardless of the facts,” Mr. Reiners said. “If Sam Bankman-Fried tried to get a meeting with the S.E.C., and Gary Gensler said absolutely not, I’ll never talk to you, the Republicans would’ve gone ballistic prior to the collapse.”
  • “Why we often separate these things out is so that the public is better protected about the inherent conflicts,” he said. “It’s really important to make sure that this field comes in, gets registered, gets regulated.”
  • In public remarks shortly after FTX imploded, Mr. Gensler argued that too many crypto companies performed multiple financial roles at the same time — like running an exchange and making trades, an apparent reference to the close relationship between FTX and Alameda.
  • The outcome will also draw attention in Congress, where a slate of crypto-related bills was introduced this year. When Mr. Gensler testified in front of the Senate Banking Committee in September, he was grilled by Republican senators, who said the S.E.C. was offering insufficient legal guidance to crypto companies that wanted to comply with federal law.“Not liking the answer from the S.E.C.,” he shot back, “doesn’t mean there isn’t guidance.”
Javier E

Chinese billionaires feel the pinch | World | The Times - 0 views

  • The number of Chinese billionaires shrank by a fifth this year, the largest fall in the 24 years since the Hurun Rich List was first compiled.
  • “The result? China’s stock market has fallen sharply,
  • The number of real estate developers on the list fell again, from 50 per cent 20 years ago to just 10 per cent this year, after Beijing tightened real estate regulation
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  • China’s technology tycoons also slipped in the rankings after the United States placed hefty restrictions on tech exports to China. Zhang Yiming, the 39-year-old founder of ByteDance, TikTok’s parent company, stayed in second place — but his net worth dwindled 28 per cent to $35 billion.
  • Ma Huateng, also known as Pony Ma, 51, founder of the tech giant Tencent, fell to fifth place with a drop of $14.6 billion — almost a third of his wealth
  • Jack Ma, 58, founder of the Alibaba e-commerce company, slipped to ninth place from last year’s fifth spot after his net worth dropped 29 per cent.
Javier E

Whistleblower: Twitter misled investors, FTC and underplayed spam issues - Washington Post - 0 views

  • Twitter executives deceived federal regulators and the company’s own board of directors about “extreme, egregious deficiencies” in its defenses against hackers, as well as its meager efforts to fight spam, according to an explosive whistleblower complaint from its former security chief.
  • The complaint from former head of security Peiter Zatko, a widely admired hacker known as “Mudge,” depicts Twitter as a chaotic and rudderless company beset by infighting, unable to properly protect its 238 million daily users including government agencies, heads of state and other influential public figures.
  • Among the most serious accusations in the complaint, a copy of which was obtained by The Washington Post, is that Twitter violated the terms of an 11-year-old settlement with the Federal Trade Commission by falsely claiming that it had a solid security plan. Zatko’s complaint alleges he had warned colleagues that half the company’s servers were running out-of-date and vulnerable software and that executives withheld dire facts about the number of breaches and lack of protection for user data, instead presenting directors with rosy charts measuring unimportant changes.
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  • “Security and privacy have long been top companywide priorities at Twitter,” said Twitter spokeswoman Rebecca Hahn. She said that Zatko’s allegations appeared to be “riddled with inaccuracies” and that Zatko “now appears to be opportunistically seeking to inflict harm on Twitter, its customers, and its shareholders.” Hahn said that Twitter fired Zatko after 15 months “for poor performance and leadership.” Attorneys for Zatko confirmed he was fired but denied it was for performance or leadership.
  • the whistleblower document alleges the company prioritized user growth over reducing spam, though unwanted content made the user experience worse. Executives stood to win individual bonuses of as much as $10 million tied to increases in daily users, the complaint asserts, and nothing explicitly for cutting spam.
  • Chief executive Parag Agrawal was “lying” when he tweeted in May that the company was “strongly incentivized to detect and remove as much spam as we possibly can,” the complaint alleges.
  • Zatko described his decision to go public as an extension of his previous work exposing flaws in specific pieces of software and broader systemic failings in cybersecurity. He was hired at Twitter by former CEO Jack Dorsey in late 2020 after a major hack of the company’s systems.
  • “I felt ethically bound. This is not a light step to take,” said Zatko, who was fired by Agrawal in January. He declined to discuss what happened at Twitter, except to stand by the formal complaint. Under SEC whistleblower rules, he is entitled to legal protection against retaliation, as well as potential monetary rewards.
  • A person familiar with Zatko’s tenure said the company investigated Zatko’s security claims during his time there and concluded they were sensationalistic and without merit. Four people familiar with Twitter’s efforts to fight spam said the company deploys extensive manual and automated tools to both measure the extent of spam across the service and reduce it.
  • In 1998, Zatko had testified to Congress that the internet was so fragile that he and others could take it down with a half-hour of concentrated effort. He later served as the head of cyber grants at the Defense Advanced Research Projects Agency, the Pentagon innovation unit that had backed the internet’s invention.
  • Overall, Zatko wrote in a February analysis for the company attached as an exhibit to the SEC complaint, “Twitter is grossly negligent in several areas of information security. If these problems are not corrected, regulators, media and users of the platform will be shocked when they inevitably learn about Twitter’s severe lack of security basics.”
  • Zatko’s complaint says strong security should have been much more important to Twitter, which holds vast amounts of sensitive personal data about users. Twitter has the email addresses and phone numbers of many public figures, as well as dissidents who communicate over the service at great personal risk.
  • This month, an ex-Twitter employee was convicted of using his position at the company to spy on Saudi dissidents and government critics, passing their information to a close aide of Crown Prince Mohammed bin Salman in exchange for cash and gifts.
  • Zatko’s complaint says he believed the Indian government had forced Twitter to put one of its agents on the payroll, with access to user data at a time of intense protests in the country. The complaint said supporting information for that claim has gone to the National Security Division of the Justice Department and the Senate Select Committee on Intelligence. Another person familiar with the matter agreed that the employee was probably an agent.
  • “Take a tech platform that collects massive amounts of user data, combine it with what appears to be an incredibly weak security infrastructure and infuse it with foreign state actors with an agenda, and you’ve got a recipe for disaster,” Charles E. Grassley (R-Iowa), the top Republican on the Senate Judiciary Committee,
  • Many government leaders and other trusted voices use Twitter to spread important messages quickly, so a hijacked account could drive panic or violence. In 2013, a captured Associated Press handle falsely tweeted about explosions at the White House, sending the Dow Jones industrial average briefly plunging more than 140 points.
  • After a teenager managed to hijack the verified accounts of Obama, then-candidate Joe Biden, Musk and others in 2020, Twitter’s chief executive at the time, Jack Dorsey, asked Zatko to join him, saying that he could help the world by fixing Twitter’s security and improving the public conversation, Zatko asserts in the complaint.
  • The complaint — filed last month with the Securities and Exchange Commission and the Department of Justice, as well as the FTC — says thousands of employees still had wide-ranging and poorly tracked internal access to core company software, a situation that for years had led to embarrassing hacks, including the commandeering of accounts held by such high-profile users as Elon Musk and former presidents Barack Obama and Donald Trump.
  • But at Twitter Zatko encountered problems more widespread than he realized and leadership that didn’t act on his concerns, according to the complaint.
  • Twitter’s difficulties with weak security stretches back more than a decade before Zatko’s arrival at the company in November 2020. In a pair of 2009 incidents, hackers gained administrative control of the social network, allowing them to reset passwords and access user data. In the first, beginning around January of that year, hackers sent tweets from the accounts of high-profile users, including Fox News and Obama.
  • Several months later, a hacker was able to guess an employee’s administrative password after gaining access to similar passwords in their personal email account. That hacker was able to reset at least one user’s password and obtain private information about any Twitter user.
  • Twitter continued to suffer high-profile hacks and security violations, including in 2017, when a contract worker briefly took over Trump’s account, and in the 2020 hack, in which a Florida teen tricked Twitter employees and won access to verified accounts. Twitter then said it put additional safeguards in place.
  • This year, the Justice Department accused Twitter of asking users for their phone numbers in the name of increased security, then using the numbers for marketing. Twitter agreed to pay a $150 million fine for allegedly breaking the 2011 order, which barred the company from making misrepresentations about the security of personal data.
  • After Zatko joined the company, he found it had made little progress since the 2011 settlement, the complaint says. The complaint alleges that he was able to reduce the backlog of safety cases, including harassment and threats, from 1 million to 200,000, add staff and push to measure results.
  • But Zatko saw major gaps in what the company was doing to satisfy its obligations to the FTC, according to the complaint. In Zatko’s interpretation, according to the complaint, the 2011 order required Twitter to implement a Software Development Life Cycle program, a standard process for making sure new code is free of dangerous bugs. The complaint alleges that other employees had been telling the board and the FTC that they were making progress in rolling out that program to Twitter’s systems. But Zatko alleges that he discovered that it had been sent to only a tenth of the company’s projects, and even then treated as optional.
  • “If all of that is true, I don’t think there’s any doubt that there are order violations,” Vladeck, who is now a Georgetown Law professor, said in an interview. “It is possible that the kinds of problems that Twitter faced eleven years ago are still running through the company.”
  • “Agrawal’s Tweets and Twitter’s previous blog posts misleadingly imply that Twitter employs proactive, sophisticated systems to measure and block spam bots,” the complaint says. “The reality: mostly outdated, unmonitored, simple scripts plus overworked, inefficient, understaffed, and reactive human teams.”
  • One current and one former employee recalled that incident, when failures at two Twitter data centers drove concerns that the service could have collapsed for an extended period. “I wondered if the company would exist in a few days,” one of them said.
  • The current and former employees also agreed with the complaint’s assertion that past reports to various privacy regulators were “misleading at best.”
  • For example, they said the company implied that it had destroyed all data on users who asked, but the material had spread so widely inside Twitter’s networks, it was impossible to know for sure
  • As the head of security, Zatko says he also was in charge of a division that investigated users’ complaints about accounts, which meant that he oversaw the removal of some bots, according to the complaint. Spam bots — computer programs that tweet automatically — have long vexed Twitter. Unlike its social media counterparts, Twitter allows users to program bots to be used on its service: For example, the Twitter account @big_ben_clock is programmed to tweet “Bong Bong Bong” every hour in time with Big Ben in London. Twitter also allows people to create accounts without using their real identities, making it harder for the company to distinguish between authentic, duplicate and automated accounts.
  • In the complaint, Zatko alleges he could not get a straight answer when he sought what he viewed as an important data point: the prevalence of spam and bots across all of Twitter, not just among monetizable users.
  • Zatko cites a “sensitive source” who said Twitter was afraid to determine that number because it “would harm the image and valuation of the company.” He says the company’s tools for detecting spam are far less robust than implied in various statements.
  • The complaint also alleges that Zatko warned the board early in his tenure that overlapping outages in the company’s data centers could leave it unable to correctly restart its servers. That could have left the service down for months, or even have caused all of its data to be lost. That came close to happening in 2021, when an “impending catastrophic” crisis threatened the platform’s survival before engineers were able to save the day, the complaint says, without providing further details.
  • The four people familiar with Twitter’s spam and bot efforts said the engineering and integrity teams run software that samples thousands of tweets per day, and 100 accounts are sampled manually.
  • Some employees charged with executing the fight agreed that they had been short of staff. One said top executives showed “apathy” toward the issue.
  • Zatko’s complaint likewise depicts leadership dysfunction, starting with the CEO. Dorsey was largely absent during the pandemic, which made it hard for Zatko to get rulings on who should be in charge of what in areas of overlap and easier for rival executives to avoid collaborating, three current and former employees said.
  • For example, Zatko would encounter disinformation as part of his mandate to handle complaints, according to the complaint. To that end, he commissioned an outside report that found one of the disinformation teams had unfilled positions, yawning language deficiencies, and a lack of technical tools or the engineers to craft them. The authors said Twitter had no effective means of dealing with consistent spreaders of falsehoods.
  • Dorsey made little effort to integrate Zatko at the company, according to the three employees as well as two others familiar with the process who spoke on the condition of anonymity to describe sensitive dynamics. In 12 months, Zatko could manage only six one-on-one calls, all less than 30 minutes, with his direct boss Dorsey, who also served as CEO of payments company Square, now known as Block, according to the complaint. Zatko allegedly did almost all of the talking, and Dorsey said perhaps 50 words in the entire year to him. “A couple dozen text messages” rounded out their electronic communication, the complaint alleges.
  • Faced with such inertia, Zatko asserts that he was unable to solve some of the most serious issues, according to the complaint.
  • Some 30 percent of company laptops blocked automatic software updates carrying security fixes, and thousands of laptops had complete copies of Twitter’s source code, making them a rich target for hackers, it alleges.
  • A successful hacker takeover of one of those machines would have been able to sabotage the product with relative ease, because the engineers pushed out changes without being forced to test them first in a simulated environment, current and former employees said.
  • “It’s near-incredible that for something of that scale there would not be a development test environment separate from production and there would not be a more controlled source-code management process,” said Tony Sager, former chief operating officer at the cyberdefense wing of the National Security Agency, the Information Assurance divisio
  • Sager is currently senior vice president at the nonprofit Center for Internet Security, where he leads a consensus effort to establish best security practices.
  • The complaint says that about half of Twitter’s roughly 7,000 full-time employees had wide access to the company’s internal software and that access was not closely monitored, giving them the ability to tap into sensitive data and alter how the service worked. Three current and former employees agreed that these were issues.
  • “A best practice is that you should only be authorized to see and access what you need to do your job, and nothing else,” said former U.S. chief information security officer Gregory Touhill. “If half the company has access to and can make configuration changes to the production environment, that exposes the company and its customers to significant risk.”
  • The complaint says Dorsey never encouraged anyone to mislead the board about the shortcomings, but that others deliberately left out bad news.
  • When Dorsey left in November 2021, a difficult situation worsened under Agrawal, who had been responsible for security decisions as chief technology officer before Zatko’s hiring, the complaint says.
  • An unnamed executive had prepared a presentation for the new CEO’s first full board meeting, according to the complaint. Zatko’s complaint calls the presentation deeply misleading.
  • The presentation showed that 92 percent of employee computers had security software installed — without mentioning that those installations determined that a third of the machines were insecure, according to the complaint.
  • Another graphic implied a downward trend in the number of people with overly broad access, based on the small subset of people who had access to the highest administrative powers, known internally as “God mode.” That number was in the hundreds. But the number of people with broad access to core systems, which Zatko had called out as a big problem after joining, had actually grown slightly and remained in the thousands.
  • The presentation included only a subset of serious intrusions or other security incidents, from a total Zatko estimated as one per week, and it said that the uncontrolled internal access to core systems was responsible for just 7 percent of incidents, when Zatko calculated the real proportion as 60 percent.
  • Zatko stopped the material from being presented at the Dec. 9, 2021 meeting, the complaint said. But over his continued objections, Agrawal let it go to the board’s smaller Risk Committee a week later.
  • Agrawal didn’t respond to requests for comment. In an email to employees after publication of this article, obtained by The Post, he said that privacy and security continues to be a top priority for the company, and he added that the narrative is “riddled with inconsistences” and “presented without important context.”
  • On Jan. 4, Zatko reported internally that the Risk Committee meeting might have been fraudulent, which triggered an Audit Committee investigation.
  • Agarwal fired him two weeks later. But Zatko complied with the company’s request to spell out his concerns in writing, even without access to his work email and documents, according to the complaint.
  • Since Zatko’s departure, Twitter has plunged further into chaos with Musk’s takeover, which the two parties agreed to in May. The stock price has fallen, many employees have quit, and Agrawal has dismissed executives and frozen big projects.
  • Zatko said he hoped that by bringing new scrutiny and accountability, he could improve the company from the outside.
  • “I still believe that this is a tremendous platform, and there is huge value and huge risk, and I hope that looking back at this, the world will be a better place, in part because of this.”
Javier E

'We will coup whoever we want!': the unbearable hubris of Musk and the billionaire tech bros | Society books | The Guardian - 0 views

  • there’s something different about today’s tech titans, as evidenced by a rash of recent books. Reading about their apocalypse bunkers, vampiric longevity strategies, outlandish social media pronouncements, private space programmes and virtual world-building ambitions, it’s hard to remember they’re not actors in a reality series or characters from a new Avengers movie.
  • Unlike their forebears, contemporary billionaires do not hope to build the biggest house in town, but the biggest colony on the moon. In contrast, however avaricious, the titans of past gilded eras still saw themselves as human members of civil society.
  • The ChatGPT impresario Sam Altman, whose board of directors sacked him as CEO before he made a dramatic comeback this week, wants to upload his consciousness to the cloud (if the AIs he helped build and now fears will permit him).
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  • Contemporary billionaires appear to understand civics and civilians as impediments to their progress, necessary victims of the externalities of their companies’ growth, sad artefacts of the civilisation they will leave behind in their inexorable colonisation of the next dimension
  • Zuckerberg had to go all the way back to Augustus Caesar for a role model, and his admiration for the emperor borders on obsession. He models his haircut on Augustus; his wife joked that three people went on their honeymoon to Rome: Mark, Augustus and herself; he named his second daughter August; and he used to end Facebook meetings by proclaiming “Domination!”
  • as chronicled by Peter Turchin in End Times, his book on elite excess and what it portends, today there are far more centimillionaires and billionaires than there were in the gilded age, and they have collectively accumulated a much larger proportion of the world’s wealth
  • In 1983, there were 66,000 households worth at least $10m in the US. By 2019, that number had increased in terms adjusted for inflation to 693,000
  • Back in the industrial age, the rate of total elite wealth accumulation was capped by the limits of the material world. They could only build so many railroads, steel mills and oilwells at a time. Virtual commodities such as likes, views, crypto and derivatives can be replicated exponentially.
  • Digital businesses depend on mineral slavery in Africa, dump toxic waste in China, facilitate the undermining of democracy across the globe and spread destabilising disinformation for profit – all from the sociopathic remove afforded by remote administration.
  • on an individual basis today’s tech billionaires are not any wealthier than their early 20th-century counterparts. Adjusted for inflation, John Rockefeller’s fortune of $336bn and Andrew Carnegie’s $309bn exceed Musk’s $231bn, Bezos’s $165bn and Gates’s $114bn.
  • Zuckerberg told the New Yorker “through a really harsh approach, he established two hundred years of world peace”, finally acknowledging “that didn’t come for free, and he had to do certain things”. It’s that sort of top down thinking that led Zuckerberg to not only establish an independent oversight board at Facebook, dubbed the “Supreme Court”, but to suggest that it would one day expand its scope to include companies across the industry.
  • Any new business idea, Thiel says, should be an order of magnitude better than what’s already out there. Don’t compare yourself to everyone else; instead operate one level above the competing masses
  • Today’s billionaire philanthropists, frequently espousing the philosophy of “effective altruism”, donate to their own organisations, often in the form of their own stock, and make their own decisions about how the money is spent because they are, after all, experts in everything
  • Their words and actions suggest an approach to life, technology and business that I have come to call “The Mindset” – a belief that with enough money, one can escape the harms created by earning money in that way. It’s a belief that with enough genius and technology, they can rise above the plane of mere mortals and exist on an entirely different level, or planet, altogether.
  • By combining a distorted interpretation of Nietzsche with a pretty accurate one of Ayn Rand, they end up with a belief that while “God is dead”, the übermensch of the future can use pure reason to rise above traditional religious values and remake the world “in his own interests”
  • Nietzsche’s language, particularly out of context, provides tech übermensch wannabes with justification for assuming superhuman authority. In his book Zero to One, Thiel directly quotes Nietzsche to argue for the supremacy of the individual: “madness is rare in individuals, but in groups, parties, nations, and ages it is the rule”.
  • In Thiel’s words: “I no longer believe that freedom and democracy are compatible.”
  • This distorted image of the übermensch as a godlike creator, pushing confidently towards his clear vision of how things should be, persists as an essential component of The Mindset
  • In response to the accusation that the US government organised a coup against Evo Morales in Bolivia in order for Tesla to secure lithium there, Musk tweeted: “We will coup whoever we want! Deal with it.”
  • For Thiel, this requires being what he calls a “definite optimist”. Most entrepreneurs are too process-oriented, making incremental decisions based on how the market responds. They should instead be like Steve Jobs or Elon Musk, pressing on with their singular vision no matter what. The definite optimist doesn’t take feedback into account, but ploughs forward with his new design for a better world.
  • This is not capitalism, as Yanis Varoufakis explains in his new book Technofeudalism. Capitalists sought to extract value from workers by disconnecting them from the value they created, but they still made stuff. Feudalists seek an entirely passive income by “going meta” on business itself. They are rent-seekers, whose aim is to own the very platform on which other people do the work.
  • The antics of the tech feudalists make for better science fiction stories than they chart legitimate paths to sustainable futures.
Javier E

In Silicon Valley, You Can Be Worth Billions and It's Not Enough - The New York Times - 0 views

  • He got a phone call about the imminent sale of a tech company and allegedly traded on the confidential information, according to charges filed by the Securities and Exchange Commission. The profit for a few minutes of work: $415,726.
  • rarely has anyone traded his reputation for seemingly so little reward. For Mr. Bechtolsheim, $415,726 was equivalent to a quarter rolling behind the couch. He was ranked No. 124 on the Bloomberg Billionaires Index last week, with an estimated fortune of $16 billion.
  • Last month, Mr. Bechtolsheim, 68, settled the insider trading charges without admitting wrongdoing. He agreed to pay a fine of more than $900,000 and will not serve as an officer or director of a public company for five years.
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  • Nothing in his background seems to have brought him to this troubling point. Mr. Bechtolsheim was one of those who gave Silicon Valley its reputation as an engineer’s paradise, a place where getting rich was just something that happened by accident.
  • “He cared so much about making great technology that he would buy a house, not furnish it and sleep on a futon,” said Scott McNealy, who joined with Mr. Bechtolsheim four decades ago to create Sun Microsystems, a maker of computer workstations and servers that was a longtime tech powerhouse. “Money was not how he measured himself.”
  • researchers who analyze trading data say corporate executives broadly profit from confidential information. These executives try to avoid traditional insider trading restrictions by buying shares in economically linked firms, a phenomenon called “shadow trading.”
  • “There appears to be significant profits being made from shadow trading,” said Mihir N. Mehta, an assistant professor of accounting at the University of Michigan and an author of a 2021 study in The Accounting Review that found “robust evidence” of the behavior. “The people doing it have a sense of entitlement or maybe just think, ‘I’m invincible.’”
  • He went to Stanford as a Ph.D. student in the mid-1970s and got to know the then-small programming community around the university. In the early 1980s, he, along with Mr. McNealy, Vinod Khosla and Bill Joy, started Sun Microsystems as an outgrowth of a Stanford project. When Sun initially raised money, Mr. Bechtolsheim put his entire life savings — about $100,000 — into the company.
  • “You could end up losing all your money,” he was warned by the venture capitalists financing Sun. His response: “I see zero risk here.”
  • An impromptu demonstration was hastily arranged for 8 a.m., which Mr. Bechtolsheim cut short. He had seen enough, and besides, he had to get to the office. He gave them a check, and the deal was sealed, Mr. Levy wrote, “with as little fanfare as if he were grabbing a latte on the way to work.
  • Mr. Page and Mr. Brin couldn’t deposit Mr. Bechtolsheim’s check for a month because Google did not have a bank account. When Google went public in 2004, that $100,000 investment was worth at least $1 billion.
  • It wasn’t the money that made the story famous, however. It was the way it confirmed one of Silicon Valley’s most cherished beliefs about itself: that its genius is so blindingly obvious, questions are superfluous.
  • The dot-com boom was a disorienting period for longtime Valley leaders whose interest in money was muted. Mr. Bechtolsheim’s Sun colleague Mr. Joy left Silicon Valley.
  • “There’s so much money around, it’s clouding a lot of people’s ethics,” Mr. Joy said in a 1999 oral history
  • Mr. Bechtolsheim didn’t leave. In 2008, he co-founded Arista, a Silicon Valley computer networking company that went public and now has 4,000 employees and a stock market value of $100 billion.
  • Mr. Bechtolsheim was chair of Arista’s board when an executive from another company called in 2019, according to the S.E.C. Arista and the other company, which was not named in court documents, had a history of sharing confidential information under nondisclosure agreements.
  • immediately after hanging up, the government said, he bought Acacia option contracts in the accounts of a close relative and a colleague. The next day, the deal was announced. Acacia shares jumped 35 percent.
  • Arista’s code of conduct states that “employees who possess material, nonpublic information gained through their work at Arista may not trade in Arista securities or the securities of another company to which the information pertains.”
  • Mr. Levy, the “In the Plex” author, said there were plenty of legal ways to make money in Silicon Valley. “Someone who is regarded as an influential funder and is very well connected gets nearly unlimited opportunities to make very desirable early investments,”
Javier E

How Asian Groceries Like H Mart and Patel Brothers Are Reshaping America - The New York Times - 0 views

  • The H Mart of today is a $2 billion company with 96 stores and a namesake book (the best-selling memoir “Crying in H Mart,” by the musician Michelle Zauner). Last month, the chain purchased an entire shopping center in San Francisco for $37 million. Patel Brothers has 52 locations in 20 states, with six more stores planned in the next two years. 99 Ranch opened four new branches just last year, bringing its reach to 62 stores in 11 states. Weee!, an online Asian food store, is valued at $4.1 billion.
  • Asian grocery stores are no longer niche businesses: They are a cultural phenomenon.
  • Asian American grocers still represent less than one percent of the total U.S. grocery business,
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  • ate which products the big-box chains stock.
  • But these stores exercise an outsize impact, she said, as they di
  • more than any restaurant, cookbook or online video, Asian grocers are driving this shift.
  • April 2023 to April 2024, sales of items in the “Asian/ethnic aisle” in U.S. grocery stores grew nearly four times more than overall sales
  • Miso, ghee, turmeric, soy sauce — their journeys to becoming widely available pantry staples all began with an Asian grocer.
  • H Mart is attracting the clientele of the big grocers, too. Thirty percent of its shoppers today are non Asian, Mr. Kwon said, and he’s made changes to continue drawing them
  • placing more emphasis on in-store tastings, explaining how ingredients are used and posting signs in both Korean and English. Similarly, at 99 Ranch, the announcements ring out in Mandarin and English, and Western music has been added to the store playlists.
  • Swetal Patel, a partner at Patel Brothers, said that as the chain has expanded its audience — he estimates that 20 to 25 percent of shoppers are now non South Asian
  • “I find it fascinating that there are things on the shelf that I have no idea what they are,” said Jill Connors, an economic development director for the city of Dubuque, Iowa, who started shopping at Hornbill Asian Market earlier this year because she and her husband became vegan and wanted high-quality tofu at a reasonable price.
  • The sheer variety of foods to explore “brings more joy to the shopping and cooking process,”
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