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How out of Control Is Our Surveillance State? | Cato Institute

Posted by M. C. on December 23, 2019

Americans deserve a stronger assurance than “hope” that their Fourth Amendment rights are being respected.

https://www.cato.org/publications/commentary/how-out-control-our-surveillance-state

By Julian Sanchez

This article appeared on The New York Times on December 18, 2019.
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The F.B.I.’s investigation of the former Trump campaign adviser Carter Page, we can now say with assurance, was a train wreck. In his report, Justice Department Inspector General Michael Horowitz cataloged a damning list of egregious errors, omissions or misrepresentations in filings to the secretive Foreign Intelligence Surveillance Court, which approved nearly a year’s worth of wiretaps on Mr. Page.

Many Republicans have taken this as proof that the investigation was hopelessly contaminated by anti-Trump political bias. That would be the optimistic scenario. Unfortunately, it’s probably much worse than that.

If the F.B.I. botched its applications for Foreign Intelligence Surveillance Act warrants against Mr. Page because of political bias, after all, problems of the sort Mr. Horowitz identified are most likely unique to this case. The bureau obtains about 1,500 FISA warrants each year, and an overwhelming majority have no connection to domestic politics. The solution is also similarly simple: Toss out the bad apples who acted on political motives and add a few layers of safeguards for the tiny fraction of cases that are designated “sensitive investigative matters” because they do intersect with politics.

 

That might be a reasonable response if we were confident the Page investigation represented an outlier or aberration. The chilling reality, however, is that we have no idea whether that’s the case.

At a Senate Judiciary Committee hearing last week, Senator Marsha Blackburn, Republican of Tennessee, zeroed in on this point. When she asked Mr. Horowitz whether finding mistakes in a FISA application was “a fairly unusual occurrence,” he responded, “I would hope so.”

Americans deserve a stronger assurance than “hope” that their Fourth Amendment rights are being respected. The sheer quantity of serious defects in the FISA applications targeting Mr. Page — which officials consistently told Mr. Horowitz received far more review than normal, because agents understood the applications would doubtless attract controversy and scrutiny — raises an obvious and disturbing question: If they’re this sloppy with a target involved in a presidential campaign, how bad is it in ordinary cases, which the public will never learn about and which are unlikely to ever be the topic of congressional hearings?

We needn’t worry so much about that, of course, if the defects of the Page warrants were products of political animus against the Trump campaign. But the report provides very little reason to think that’s the case. The case for supposing bias is the culprit here leans heavily on the former F.B.I. agent Peter Strzok, now notorious for a voluminous history of text messages denigrating Mr. Trump and suggesting that he would not become president because “we will stop it.” But while Mr. Strzok played a supervisory role in the earliest stage of the Page investigation, it’s hard to tie him to the specific problems Mr. Horowitz identifies. As the report notes, Mr. Strzok “was not the primary or sole decision maker on any investigative step” and at one point opposed FISA monitoring of another Trump campaign staff member that case agents proposed. Moreover, the problems Mr. Horowitz documented in the initial FISA application filed under Mr. Strzok’s watch were significantly less serious than the outrageous omissions and misrepresentations to the court that occurred in the subsequent applications to renew the wiretap, after Mr. Strzok’s role in the investigation had ended.

With one significant exception — an F.B.I. lawyer responsible for improperly altering an email related to the final renewal application — Mr. Horowitz didn’t find signs of Mr. Strzok’s intense animus among others who worked on the FISA warrants. The report notes that among the huge quantity of internal communications reviewed, the inspector general identified “a small number of text messages and instant messages” in which members of the investigation team “discussed political issues and candidates,” but that these “did not raise significant questions of potential bias or improper motivation.”

If there’s an explanation for the errors Mr. Horowitz documents suggested by his reports, it’s not political bias. It’s confirmation bias.

The F.B.I.’s interest in Mr. Page — and its suspicions that he might be a Russian intelligence asset — predated his involvement in presidential politics. He had reportedly been the target of a FISA warrant in 2014 and was the focus of yet another counterintelligence investigation opened in April 2016 by the F.B.I.’s notoriously Trump-friendly New York field office, months before the bureau started an inquiry into potential links between the Trump campaign and Russia’s election interference operation. When investigators got wind of Christopher Steele’s notorious dossier, which made Mr. Page a pivotal figure in a “well-developed conspiracy of cooperation” between Mr. Trump and the Kremlin, it would have seemed like confirmation of what they already suspected.

Having adopted this theory, investigators began to exhibit classic signs of confirmation bias, readily absorbing new information that fit the model they’d built, while overlooking or explaining away facts that didn’t fit. The worst misrepresentations to the court that Mr. Horowitz uncovered are sins of omission — new information the bureau obtained as the investigation progressed that should have led it to question previous representations it had made to the court.

The many layers of review FISA applications go through — laid out in a set of rules known as the Woods Procedures — were ill equipped to detect this sort of problem, because the Woods Procedures focus on confirming that facts in the application match documents in the F.B.I.’s case file. But you can’t fact check a claim that doesn’t exist — which means the process is bad at detecting important information that has been left out. Officials who reviewed later applications also told Mr. Horowitz that they typically focused on the new information in each submission. That means assertions they’d made early on ended up effectively being taken for granted: Nobody was revisiting early assumptions to see whether they still held up in the face of new data.

If this explains why the Page investigation went increasingly off the rails, it’s an explanation that has little to do with partisan politics at its heart. But that would mean there’s little reason to think the Page investigation is special in this respect. There’s an urgent need, then, for the inspector general to do more such “deep dives” and figure out just how pervasive the problem really is.

Fortunately, the inspector general is already taking a first step in this direction, having begun a review that will “examine the F.B.I.’s compliance with the Woods Procedures in FISA applications that target U.S. persons.” But in itself, that’s not enough: While Mr. Horowitz found violations of the Woods Procedures in the Page case, they weren’t the most serious distortions. Those occurred precisely because the Woods Procedures aren’t well calibrated to catch material facts that get left out. To do that, you’d need to do the kind of intensive and comprehensive case-by-case review conducted in the Horowitz review, not just run Woods vetting a second time to see whether the results tally.

Doing this sort of deep dive for a representative sample of FISA applications will, of course, be both expensive and extremely time consuming. But it’s well worth it to find out just how badly our surveillance state is broken.

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JFK-CIA

 

 

 

 

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Eyes ‘common target’ of Israeli snipers at Gaza’s March

Posted by M. C. on December 23, 2019

https://www.alaraby.co.uk/english/indepth/2019/12/20/eyes-common-target-of-israeli-snipers-at-gazas-march

Media coverage and social media posts went wild when Palestinian photojournalist Muath Amarneh was blinded in his left eye after he was hit by a rubber bullet while covering a protest in the West Bank.

However, Amarneh was far from unique; Israeli snipers targeting participants in Gaza’s weekly Great Return March protests have aimed for the legs – and eyes. To date, Gaza’s Ministry of Health reports that 50 protesters have been shot in the eye since the demonstrations began March 30, 2018 – leaving them permanently blind.

“Some of these protesters and journalists were hit in the eye with teargas canisters, but most were targeted directly with what is commonly called a ‘rubber bullet,’ giving the impression they are somehow benign,” says Ashraf Alqedra, MD, a treating physician at Gaza City’s al-Shifa Hospital and spokesperson for the Ministry of Health.

“But there is still steel at the core, and although these bullets don’t usually kill, they do grave damage. It is impossible to save an eye hit directly by a rubber-coated steel bullet.” Read the rest of this entry »

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The Hidden Military Use of 5G Technology – Global ResearchGlobal Research – Centre for Research on Globalization

Posted by M. C. on December 23, 2019

In other words, the 5G commercial network, built and activated by private companies, will be used by the US armed forces at a much lower expenditure than that necessary if the network were to be set up with an exclusively military goal.

How much easier can it be for government spying on US. You will be on the same party line as the Utah Data Center.

https://www.globalresearch.ca/hidden-military-use-5g-technology/5697848

At the London Summit, the 29 member countries of NATO agreed to “guarantee the security of our communications, including 5G”. Why is this fifth generation of mobile data transmission so important for NATO?

While the earlier technologies were perfected to create ever more advanced smartphones, 5G is designed not only to improve their performance, but mainly to link digital systems which need enormous quantities of data in order to work automatically. The most important 5G applications will not be intended for civil use, but for the military domain.

The possibilities offered by this new technology are explained by the Defense Applications of 5G Network Technology, published by the Defense Science Board, a federal committee which provides scientific advice for the Pentagon –

“The emergence of 5G technology, now commercially available, offers the Department of Defense the opportunity to take advantage, at minimal cost, of the benefits of this system for its own operational requirements”.

In other words, the 5G commercial network, built and activated by private companies, will be used by the US armed forces at a much lower expenditure than that necessary if the network were to be set up with an exclusively military goal. Military experts foresee that the 5G system will play an essential role for the use of hypersonic weapons – missiles, including those bearing nuclear warheads, which travel at a speed superior to Mach 5 (five times the speed of sound). In order to guide them on variable trajectories, changing direction in a fraction of a second to avoid interceptor missiles, it is necessary to gather, elaborate and transmit enormous quantities of data in a very short time. The same thing is necessary to activate defences in case of an attack with this type of weapon – since there is not enough time to take such decisions, the only possibility is to rely on 5G automatic systems…

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‘Absolutely unaware’ Assange testifies in trial of Spanish company that spied on WikiLeaks founder inside embassy — RT World News

Posted by M. C. on December 23, 2019

The proceedings were closed to the press on the grounds of “national security.”

It is OK for “spies” and governments to know, but not US.

https://www.rt.com/news/476529-assange-testify-spanish-spying/

RT

WikiLeaks founder Julian Assange briefly stepped out of maximum security prison in the UK to testify via video-link in a Spanish case against a company that spied on him inside the Ecuadorian embassy, allegedly on the US’ behalf.

Assange, who is being held at Belmarsh prison in southern London pending his hearing on extradition to the US, was driven over to the Westminster Magistrates’ Court on Friday, where a video-link was set up for him to speak with a judge in Madrid. The proceedings were closed to the press on the grounds of “national security.”

RT

The High Court in Madrid is hearing Assange’s case against Undercover Global Ltd, a Spanish security company that allegedly bugged him during his stay at the Ecuadorian embassy in London. Undercover Global was contracted to provide embassy security between 2015 and 2018, and in that capacity secretly recorded Assange’s every move via hidden cameras, microphones and electronic surveillance, the lawsuit says.

Assange told the court “he was absolutely unaware that the cameras recorded audio, that hidden microphones had been introduced” into the fire extinguisher mounts inside the embassy, his attorney Aitor Martinez told reporters in Madrid after the testimony.

Assange was “an absolutely passive subject of an illegitimate interference that would have been eventually coordinated by the United States,” Martinez added.

If the illegal surveillance targeted Assange’s legal team and violated his attorney-client privilege, that has ramifications on the proceedings against him in both the UK and the US, his lawyers have argued.

David Morales, owner of Undercover Global, was briefly arrested in September and then released on bail. In June, he told the Spanish daily El Pais that his company “simply did a job” and that all the information it gathered is “confidential and it belongs to the government of Ecuador.”

Assange sought asylum from Ecuador in 2012, facing an investigation of sexual assault in Sweden and fearing it was a pretext to have him extradited to the US. He ended up spending almost seven years trapped inside the Latin American country’s embassy in London, because UK authorities denied him permission to leave. The new government in Quito withdrew his asylum in April, and he was dragged out of the building by UK police.

Within days of his arrest, the US would confirm Assange’s suspicions by unsealing the indictment charging him with violating the Espionage Act, over publishing the Iraq and Afghanistan war documents in 2010. If extradited and convicted, he faces 175 years in prison. British authorities sentenced him to 50 weeks in prison for bail violation, and then kept him locked up at Belmarsh after he served that sentence, pending extradition hearings. Sweden formally dropped an investigation against Assange last month.

Editor’s note: The article has been updated to clarify that Assange faced ‘allegations’, not ‘charges’, of sexual assault in Sweden.

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Nit

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Donald Trump: Peace Candidate, Presidential Warmonger – LewRockwell

Posted by M. C. on December 23, 2019

https://www.lewrockwell.com/2019/12/walter-e-block/donald-trump-peace-candidate-presidential-warmonger/

By

Mr. Trump ran in 2016 almost on a peace platform in terms of foreign policy. He said things such as this:

“I share the American people’s frustration… I also share their frustration over a foreign policy that has spent too much time, energy, money — and, most importantly, lives — trying to rebuild countries in our own image instead of pursuing our security interests above all other considerations.”

I supported him vis a vis Mrs. Hillary Clinton mainly because she seemed, at least in comparison, to be a pro-war belligerent. From her support for the U.S. invasion of Iraq, in Afghanistan and Western Sahara, she has long established herself as a foreign policy hawk. For example, as emblematic of her deeply held views, she favored a: “tough-minded, muscular foreign and defense policy…”

I along with Ralph Raico and Donald Miller started up the group called “Libertarians for Trump.” Some 5000 people signed on. It was widely bruited about that no one but hicks, red-necks, morons in flyover country could support this ignoramus. To counter this, Paul Gottfried, Boyd Cathy and I initiated a separate support group for our present president called “Scholars for Trump.” Signatories were limited to people with advanced degrees such as the Ph.D. We attracted signatures from about 150 people.

But what about Gary Johnson? He also ran for president, on the Libertarian Party ticket. Should not I as a libertarian (lower case “l” indicates a backer of this philosophy; upper case “L” refers to a member of the Libertarian Party – I am both) have supported the former governor of New Mexico instead of Trump?

My attempt to square the circle was the following: If you lived in a red or blue state, the Donald did not need your vote. He would either win or lose big to Hillary. Therefore vote for Gary. But if you are in one of the few purple states, the pull the lever for Donald, since he more nearly favored peace.

But we are now at the end of 2019. The US military is still fighting active battles in Afghanistan (18 years and counting!) and Syria, and we have troops in over 100 other countries.

Those in the DMZ between North and South Korea are particularly vulnerable. This is defense? It reeks of offense! Trump may have been the peace candidate, but this certainly is no description of his presidency.

What to do now? One option is to impeach Number 45; not for “abuse of power and obstruction of Congress.” That is just plain silly. Rather he deserves this rebuke for violating the Constitution which specifies that only congress can declare war, and this august body has done no such thing (I realize of course that the Donald is not the first president to deserve impeachment for this reason, but that is entirely a different matter. Impeach ‘em all, say I.) The difficulty with impeachment is that Vice President Pence will then take his place, and my reading of the tea leaves is that he will be at one fell swoop even more belligerent and also far less susceptible to a subsequent impeachment that he too will richly deserve were he to also flout the constitution in this manner. My fear is that in impeaching Trump we would be jumping out of the frying pan and into the fire.

Is there no hope? Happily, John Bolton, the war monger’s war monger no longer has the ear of the president. He never in his entire life thought of a place the US could invade without having an orgasm. Perhaps the Donald, after he beats this specious impeachment, will come to his senses, and channel the relative peacemaker he was when he first ran for office in 2015. Hey, it’s Christmas! Who knows what can happen.

A word about Mr. Kim. He saw what happened to Muammar Gadaffi of Libya. Not unreasonably, he does not want to suffer the same fate. All the more reason, then, to have no more such Libyas, lest the next dictator to come down the pike emulate this one. There is one other reason to be optimistic. Ok, ok, less pessimistic. Thank goodness say I for the recent rapprochement between North and South Korea. (Or am I just hoping for a thaw?) If the two Germanys could accomplish a reduction in hostilities, so, then, maybe, possibly, hopefully, can the two occupants of the Korean peninsula. As we peaceniks used to say in the 1960s, a nuclear war can ruin your entire day.

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Different views on libertarians: this couldn´t be more ...

 

 

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Carlin the Magnificent.

Posted by M. C. on December 22, 2019

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$3 Billion, 300-Acre MegaCity Envisioned For California’s Record Homeless… But There’s A Twist | Zero Hedge

Posted by M. C. on December 22, 2019

Additionally, residents would be provided RFID-enabled wristbands to be tracked constantly gain access to their dorm rooms as well as perform tasks such as job check-in, purchasing items with credits, medicine consumption, and more.

Each TV Pod will play a unique channel…How unique? Who decides. What famous novel does this remind?

https://www.zerohedge.com/economics/3-billion-300-acre-megacity-envisioned-californias-record-homeless-theres-twist

Ask any San Franciscan what the state of California has an excess of and the most likely answer will be homeless people (and their excrement, especially with the liberal mecca recording as many as 16,000 “feces complaints” in one week ). Actually, ask just about anyone and the answer will be the same: after all with 130,000 homeless, California is now home to more than a quarter of the nation’s homeless population.

That all may soon change, however, if a new crowdfunding effort succeeds in its effort to solve the US homeless crisis by building a 300-acre city open exclusively for those without a home. Daune Nason, founder of the Folsom-based Citizens Again, released details Thursday of his plans for an estimated $3 billion private city equipped with amenities and services for a 150,000 “high-needs” population, CBS LA reports.

Artist’s impression of the Citizens Again “Homeless City“

“Qualified citizens” – those who meet as-yet undisclosed criteria – will be allowed to live in the city and are free to leave whenever they wish, says Nason, who adds, “Some might want to stay forever.”…

Additionally, residents would be provided RFID-enabled wristbands to be tracked constantly gain access to their dorm rooms as well as perform tasks such as job check-in, purchasing items with credits, medicine consumption, and more…

 

According to the Citizens Again website, other aspects of the homeless city will include:

  • Hospitals
  • Dental and Vision Services
  • Mental Health
  • Movie Theatres
  • Bowling Alleys
  • Sports Courts
  • Hotels for visiting family
  • Dog parks and kennels
  • Perimeter staff housing
  • Job Training
  • GED certificates
  • Housing & Job Placement

TV Pods are semi-enclosed rooms with tiered seating for citizens to watch TV in a community environment within their neighborhood. Each TV Pod will play a unique channel, giving the entire 1-acre floor many viewing options…

As part of his plans for the homeless mecca, Nason also envisions building underground tunnels by which deliveries can be made and city workers can commute to job sites in order to “minimize disruption of citizen life.” And when those living in the city are prepared to leave, they’ll be provided with job and life skills training along with counseling and therapy, Nason said although it was unclear if the tree will also be growing Magic Money Trees that fund all these lofty civic goals…

Consider this woke, noble mission statement that Nason has proudly penned on his $50,000 gofundme campaign:

A new and unique solution for every chronic homeless adult is coming.

For decades, our government has been building small shelters all across America to house our chronic homeless. But at the current placement rate, it will take about 200 years to house them all.

It’s time to think differently: instead of building 4,000 more shelters, Citizens Again will build 1 city, catering towards America’s entire chronic adult homeless population. It will cost billions less than current efforts; be built in about 11 years; and the homeless will want to live there.

… and yet just a few lines below we read:

Launching a crowdfunding campaign during the holidays is not ideal, but I have no choice. By not taking a salary for the last few years, I have exhausted all financial means to get this project launched, and I am now many months behind on my mortgage payment and all bills, with no cash or credit left. Every donation – and clicking the share button – truly matters for this project, myself, my family, and eventually for the people I’m trying to help

How appropriate that one man’s noble “vision” for a homeless city is nothing more than a giant online pandhandling campaign, one which has so far raised $570 of the $50,000 goal to make Nason’s life more palatable.

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EconomicPolicyJournal.com: Top Historians Demand ‘Prominent Corrections’ From New York Times Re: 1619 Project/Slavery Reporting

Posted by M. C. on December 22, 2019

James M. McPherson noted below is author of the Civil War classic Battle Cry of Freedom

NYT = PC POS

https://www.economicpolicyjournal.com/2019/12/top-historians-demand-prominent.html

Many historians apparently are sick and tired of The New York Time lies and distortions in The 1619 Project and the attempt to dismiss, by the leader of the Project, Nikole Hannah-Jones, the criticisms of the Projects as simply criticisms by “white historians.”

Five top historians are firing back with a letter to The New York Times demanding prominent corrections.

The Times has indicated it will publish the letter of the historians in the Dec. 29 issue of The New York Times Magazine.

Here are key snippets: 

We write as historians to express our strong reservations about important aspects of The 1619 Project. The project is intended to offer a new version of American history in which slavery and white supremacy become the dominant organizing themes. The Times has announced ambitious plans to make the project available to schools in the form of curriculums and related instructional material…

[W]e are dismayed at some of the factual errors in the project and the closed process behind it.These errors, which concern major events, cannot be described as interpretation or “framing.” They are matters of verifiable fact, which are the foundation of both honest scholarship and honest journalism. They suggest a displacement of historical understanding by ideology. Dismissal of objections on racial grounds — that they are the objections of only “white historians” — has affirmed that displacement.

On the American Revolution, pivotal to any account of our history, the project asserts that the founders declared the colonies’ independence of Britain “in order to ensure slavery would continue.” This is not true. If supportable, the allegation would be astounding — yet every statement offered by the project to validate it is false. Some of the other material in the project is distorted, including the claim that “for the most part,” black Americans have fought their freedom struggles “alone.”

—

The 1619 Project has not been presented as the views of individual writers — views that in some cases, as on the supposed direct connections between slavery and modern corporate practices, have so far failed to establish any empirical veracity or reliability and have been seriously challenged by other historians. Instead, the project is offered as an authoritative account that bears the imprimatur and credibility of The New York Times. Those connected with the project have assured the public that its materials were shaped by a panel of historians and have been scrupulously fact-checked. Yet the process remains opaque. The names of only some of the historians involved have been released, and the extent of their involvement as “consultants” and fact checkers remains vague. The selective transparency deepens our concern.

We ask that The Times, according to its own high standards of accuracy and truth, issue prominent corrections of all the errors and distortions presented in The 1619 Project. We also ask for the removal of these mistakes from any materials destined for use in schools, as well as in all further publications, including books bearing the name of The New York Times. We ask finally that The Times reveal fully the process through which the historical materials were and continue to be assembled, checked and authenticated.

Sincerely,

Victoria Bynum, distinguished emerita professor of history, Texas State University;

James M. McPherson, George Henry Davis 1886 emeritus professor of American history, Princeton University;

James Oakes, distinguished professor, the Graduate Center, the City University of New York;

Sean Wilentz, George Henry Davis 1886 professor of American history, Princeton University;

Gordon S. Wood, Alva O. Wade University emeritus professor and emeritus professor of history, Brown University.

–RW

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SkuzzFeed News: All the news that gives you fits

 

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EconomicPolicyJournal.com: Rendering Unto Caesar: Was Jesus a Socialist?

Posted by M. C. on December 22, 2019

Was He? Someone read the book and let us know.

He suffered like many 20th century socialists.

https://www.economicpolicyjournal.com/2019/12/rendering-unto-caesar-was-jesus.html

by EPJ

Rendering Unto Caesar: Was Jesus a Socialist?

A perfect read for the Christmas season.

From the blurb:

Rendering Unto Caesar: Was Jesus a Socialist? tackles head-on a persistent myth that has stymied individual freedom in many parts of the world. That myth takes many forms, but reduces to this: “You can’t be for capitalism or free markets and be a follower of Jesus at the same time.”

For the first time in a short and readable form, Foundation for Economic Education (FEE) president Lawrence W. Reed debunks these misconceptions in powerful, convincing ways. Though he frequently references Scripture, Reed makes it plain at the start that one doesn’t have to be a Christian to understand the importance of proper interpretation of Scripture, as well as history and economics. People who simply want sound analysis or good history will appreciate it.

By examining the words of Jesus in the context of their time and place, Reed shows Jesus never called for the political process to rearrange wealth. He denounced envy. He stressed choice, accountability and private property. He endorsed keeping one’s word and honoring contracts. He emphasized principles of personal character and the Golden Rule. These things are all difficult to reconcile with political force.

Now, when anyone suggests that the teachings of Jesus are in any way incompatible with free markets or capitalism, defenders of free markets can provide concise and conclusive responses. There is no other publication that does the job as fully or is as accessible as Rendering Unto Caesar.

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FckdEx 🚚 | No Mercy / No Malice

Posted by M. C. on December 22, 2019

Will Bezos run his package delivery service better than his news delivery service WaPo?

https://www.profgalloway.com/fckdex

Scott Galloway
Scott Galloway

In the next 24 months, FedEx will either be acquired or lose an additional 40%+ in value. The likely acquirer is Walmart. The gangster move: a merger with Shopify.

In July 2017 we predicted, “If Bezos tomorrow said, ‘We see overnight delivery as a huge opportunity,’ the $150 billion of market cap of DHL, FedEx, and UPS would begin leaking to Amazon.”

This has happened. Since the launch of Amazon’s delivery service in February 2018, FedEx has lost $25 billion (39%) in value, despite the S&P’s 24% gain. Amazon has added $240 billion (33%). In less than two years, Amazon captured nearly one-fifth of the market for e-commerce deliveries in the U.S.

Since 2014, U.S. e-commerce has increased 84%, creating a massive opportunity for the delivery industry. But instead, there has been a transfer of wealth from FedEx, UPS, and the U.S. government to Amazon. Amazon enters high-friction, low-margin businesses as a means of differentiating low-friction, high-margin businesses (AWS and AMG).

How We Got Here — Featurizing 

Network effects, cheap capital, idolatry of innovators, and a feckless DOJ/FTC have resulted in a monopoly era where a wildly profitable business (phones, digital marketing, loyalty programs, cloud, Yoda dolls) can generate such staggering value (“antimatter”) that entire industries become loss leaders (“features”) to differentiate and protect the antimatter. Netscape, the fastest-growing software firm in history, went from antimatter to feature when Microsoft began bundling Internet Explorer with Office.

I served on the board of a visual commerce SaaS firm (Olapic) until we sold for $130 million in 2016. There was a great deal of discussion on whether to sell. I urged the founders, naturally optimistic about the firm’s prospects, to sell. The difference between $1 million and $10 million in wealth is meaningful (go big), but the difference between 0 and $1 million is profound (sell). Every entrepreneur should bank enough money to provide economic security for their family … at any opportunity. For every CNBC story on Spiegel and Zuck turning down offers and going on to capture billions, there are dozens of founders who should have sold.

Pro tip: your VCs will encourage you to “be in it to win it,” and to keep going, as they are already rich. Assume you are not Mark Zuckerberg.

Speaking of Zuck, I think he’d be happier if he’d sold to Microsoft (I don’t know him, so this is pure speculation). A powerful algorithm for happiness is to be wealthy but anonymous. Perhaps as a coping mechanism for realizing the significant damage he levies on the world, Zuck has developed the attributes of a sociopath. At some point, he’ll likely be criminally charged. Instead, he could have worked in Seattle for 27 months, retired to Hawaii, invested in rockets, owned a football team, and produced Cats for the big screen.

With any software start-up, there is a non-zero probability that you wake up the next day and find that a better-resourced firm (Microsoft, Oracle, Salesforce, Adobe) has deployed 200 engineers to copy your product, bundle it with their stack for free, or near free, and … welcome to zero. I believe this is happening to Slack, but more slowly than Netscape, as Microsoft’s General Counsel has likely coached Satya to charge a nominal fee for Teams and let Slack bleed out, instead of putting a bullet in its head and stirring the DOJ from a 3-Ambien slumber.

FedEx is in the midst of being featurized by Amazon, who can make investments across their vertical stack that FedEx can’t match, as Amazon has antimatter (Prime, AWS, AMG). The Memphis firm’s most recent earnings were a sh*t-show with top- and bottom-line misses, drivel about a slowdown in air freight, and (my favorite) an unfavorable calendar — a Kabuki dance attempting to distract investors from the fact they’re being featurized by Amazon.

FedEx shareholders have woken up in an M. Night Shyamalan nightmare. Instead of seeing dead people, investors are haunted by Mercedes-Benz Sprinter vans with an arrow the shape of a smile on their side. Everywhere. They might as well be German Panzer tanks fighting a white-and-purple cavalry of FedEx trucks. There will be a lot of macho battle cries from FedEx, some heroism, and an increasing stench of death. (Can’t help it, I love WWII war metaphors.)

The Monopoly Algorithm: Innovation, Obfuscation, Exploitation

Innovation

To be fair, Amazon is a better-run company than FedEx,

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