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Ending Anonymity: Why The WEF’s Partnership Against Cybercrime Threatens The Future Of Privacy

Ending Anonymity: Why The WEF’s Partnership Against Cybercrime Threatens The Future Of Privacy

Authored by Whitney Webb via TheLastAmericanVagabond.com,

With many focusing on the recent Cyber Polygon exercise, less attention has been paid…

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Ending Anonymity: Why The WEF's Partnership Against Cybercrime Threatens The Future Of Privacy

Authored by Whitney Webb via TheLastAmericanVagabond.com,

With many focusing on the recent Cyber Polygon exercise, less attention has been paid to the World Economic Forum’s real ambitions in cybersecurity – to create a global organization aimed at gutting even the possibility of anonymity online. With the governments of the US, UK and Israel on board, along with some of the world’s most powerful corporations, it is important to pay attention to their endgame, not just the simulations.

Amid a series of warnings and simulations in the past year regarding a massive cyber attack that could soon bring down the global financial system, the “information sharing group” of the largest banks and private financial organizations in the United States warned earlier this year that banks “will encounter growing danger” from “converging” nation-state and criminal hackers over the course of 2021 and in the years that follow.

The organization, called the Financial Services Information Sharing and Analysis Center (FS-ISAC), made the claim in its 2021 “Navigating Cyber” report, which assesses the events of 2020 and provides a forecast for the current year. That forecast, which casts a devastating cyber attack on the financial system through third parties as practically inevitable, also makes the case for a “global fincyber [financial-cyber] utility” as the main solution to the catastrophic scenarios it predicts.

Perhaps unsurprisingly, an organization close to top FS-ISAC members has recently been involved in laying the groundwork for that very “global fincyber utility” — the World Economic Forum, which recently produced the model for such a utility through its Partnership against Cybercrime (WEF-PAC) project. Not only are top individuals at FS-ISAC involved in WEF cybersecurity projects like Cyber Polygon, but FS-ISAC’s CEO was also an adviser to the WEF-Carnegie Endowment for International Peace report that warned that the global financial system was increasingly vulnerable to cyber attacks and was the subject of the first article in this 2-part series.

Another article, published earlier this year at Unlimited Hangout, also explored the WEF’s Cyber Polygon 2020 simulation of a cyber attack targeting the global financial system. Another iteration of Cyber Polygon is due to take place tomorrow July 9th and will focus on simulating a supply chain cyber attack.

A major theme in these efforts has not only been an emphasis on global cooperation, but also a merging of private banks and/or corporations with the State, specifically intelligence and law enforcement agencies. In addition, many of the banks, institutions and individuals involved in the creation of these reports and simulations are either actively involved in WEF-related efforts to usher in a new global economic model of “stakeholder capitalism” or are seeking to imminently introduce, or are actively developing, central bank-backed digital currencies, or CBDCs.

In addition, and as mentioned in the first article in this series, a cyber attack like those described in these reports and simulations would also provide the perfect scenario for dismantling the current failing financial system, as it would absolve central banks and corrupt financial institutions of any responsibility. The convergence of several concerning factors in the financial world, including the end of LIBOR at the end of year and the imminent hyperinflation of globally important currencies, suggests that the time is ripe for an event that would not only allow the global economy to “reset”, but also absolve the fundamentally corrupt financial institutions around the world from any wrongdoing. Instead, faceless hackers can be blamed and, given recent precedents in the US and elsewhere, any group or nation state can be blamed with minimal evidence as politically convenient.

This report will closely examine both FS-ISAC’s recent predictions and the WEF Partnership against Cybercrime, specifically the WEF-PAC’s efforts to position itself as the cybersecurity alliance of choice if and when such a catastrophic cyber attack cripples the current financial system.

Of particular interest is the call by both FS-ISAC and the WEF Partnership against Cybercrime to specifically target cryptocurrencies, particularly those that favor transactional anonymity, as well as the infrastructure on which those cryptocurrencies run. Though framed as a way to combat “cybercrime”, it is obvious that cryptocurrencies are to be unwanted competitors for the soon-to-be-launched central bank digital currencies. 

In addition, as this report will show, there is a related push by WEF partners to “tackle cybercrime” that seeks to end privacy and the potential for anonymity on the internet in general, by linking government-issued IDs to internet access. Such a policy would allow governments to surveil every piece of online content accessed as well as every post or comment authored by each citizen, supposedly to ensure that no citizen can engage in “criminal” activity online. 

Notably, the WEF Partnership against Cybercrime employs a very broad definition of what constitutes a “cybercriminal” as they apply this label readily to those who post or host content deemed to be “disinformation” that represents a threat to “democratic” governments. The WEF’s interest in criminalizing and censoring online content has been made evident by its recent creation of a new Global Coalition for Digital Safety to facilitate the increased regulation of online speech by both the public and private sectors.

FS-ISAC, its influence and its doomsday “predictions” for 2021

FS-ISAC officially exists to “help ensure the resilience and continuity of the global financial services infrastructure and individual firms against acts that could significantly impact the sector’s ability to provide services critical to the orderly function of the global economy.” In other words, FS-ISAC allows the private financial services industry to decide on and coordinate sector-wide responses regarding how financial services are provided during and after a given crisis, including a cyber attack. It was tellingly created in 1999, the same year that the Glass-Steagall Act, which regulated banks after the onset of the Great Depression, was repealed.

Though FS-ISAC’s members are not publicly listed on the group’s website, they do acknowledge that their membership includes some of the world’s largest banks, Fintech companies, insurance firms and payment processors. On their board of directors, the companies and organizations represented include CitiGroup, Bank of America, Wells Fargo and Morgan Stanley, among others, strongly suggesting that FS-ISAC is largely a Wall Street-dominated entity. SWIFT, the society that manages inter-bank communication and dominates it globally, is also represented on FS-ISAC’s board. Collectively, FS-ISAC members represent $35 trillion in assets under management in more than 70 countries.

FS-ISAC also has ties to the World Economic Forum due to the direct involvement of its then-CEO Steve Silberstein in the WEF-Carnegie initiative and FS-ISAC’s participation in the initiative’s “stakeholder engagements.” There is also the fact that some prominent FS-ISAC members, like Bank of America and SWIFT, are also members of the WEF’s Centre for Cybersecurity, which houses the WEF Partnership against Cybercrime project. 

At the individual level, the founding director of FS-ISAC, Charles Blauner, is now an agenda contributor to the WEF who previously held top posts at JP Morgan, Deutsche Bank and CitiGroup. He currently is a partner and CISO-in-residence of Team8, a controversial start-up incubator that operates as a front for Israeli military intelligence in tech-related ventures that is part of the WEF Partnership against Cybersecurity. Team8’s CEO and co-founder and the former commander of Israeli intelligence outfit Unit 8200, Nadav Zafrir, has contributed to WEF Centre for Cybersecurity policy documents and WEF panels on the “Great Reset”. 

In addition, current FS-ISAC board member Laura Deaner, CISO of Northwestern Mutual, served as the co-chair for the WEF’s Global Futures Council on Cybersecurity. Teresa Walsh, the current global head of intelligence for FS-ISAC, will be a speaker at the WEF’s Cyber Polygon 2021 regarding how to develop an international response to ransomware attacks. Walsh previously worked as an intelligence analyst for Citibank, JP Morgan Chase and the US Navy. 

The FS-ISAC’s recent report is worth looking at in detail for several reasons, with the main one being the sheer power and influence that its members, both known and unknown, hold over the current fiat-based financial system. The full report is exclusive to FS-ISAC members, but a “thematic summary” is publicly available.

The FS-ISAC’s recent report on “Navigating Cyber” in 2021 is “based on the contributions of our members and the resulting trend analysis by FS-ISAC’s Global Intelligence Office (GIO)” and includes several “predictions” for the current calendar year. The group’s GIO, led by Teresa Walsh, soon-to-be speaker at Cyber Polygon 2021, also “coordinates with other cybersecurity organizations, companies and agencies around the world” in addition to its intelligence gathering from FS-ISAC members.

At the beginning of 2020, when the COVID-19 crisis resulted in an overt push towards digitization, FS-ISAC launched a “new secure chat and intelligence sharing platform” that “provided a new way for members to discuss threats and security trends.” It is fair to assume that the private discussions on this platform directly informed this report. According to the recent FS-ISAC report, the main trends and threats discussed by its members through this service over the past year were “third party risks”, such as the risk presented by major hacks of third party service providers, like the SolarWinds hack, and “geopolitical tensions.”

The report contains several “predictions for 2021 and beyond.” The first of these predictions is that adversarial nation-states will team up with “the cybercriminal underworld” in order to “obfuscate their activity and complication attribution.” FS-ISAC does not provide evidence of this having happened, but supporting this claim makes it easier to blame state governments for the activities of cybercriminals when politically convenient without concrete evidence. This has happened on several occasions with recent high-profile hacks, most recently with SolarWinds. As noted in previous reporting, prominent companies that contract for the US government and military, like Microsoft, and intelligence-linked cybersecurity companies, are often the sole sources for such narratives in the past and, in those cases, do not provide evidence, instead qualifying such assertions as “likely” or probable.” Even mainstream outlets reporting on FS-ISAC’s “predictions” noted that “FS-ISAC did not point to specific examples of spies relying on such tradecraft in the past,” openly suggesting that there is little factual basis to support this claim. 

Other predictions focus on how third party service providers, such as SolarWinds and the more recently targeted Kaseya, will dominate, affecting potentially many thousands of companies across multiple sectors at once. However, the SolarWinds hack was not properly investigated, merely labeled by US intelligence as having “likely” ties to “Russian” state-linked actors despite no publicly available evidence to support that claim. Instead, the SolarWinds hack appears to have been related to its acquisition of an Israeli company funded by intelligence-linked firms, as discussed in this report from earlier this year. SolarWinds acquired the company, called Samanage, and integrated its software fully into its platform around the same time that the backdoor used to execute the hack was placed into the SolarWinds platform that was later compromised.

FS-ISAC also predicts that attacks will cross borders, continents, and verticals, with increasing speed. More specifically, it states that the cyber pandemic will begin with cyber criminals that “test attacks in one country and quickly scale up to multiple targets in other parts of the world.” FS-ISAC argues that it is therefore “critical to have a global view on cyber threats facing the sector in order to prepare and defend against them.”  Since FS-ISAC made this prediction, cyber attacks and especially ransomware have been occurring throughout the world and targeting different sectors at a much more rapid pace than has ever been seen before. For instance, following the Colonial Pipeline hack in early May, JapanNew Zealand, and Ireland all experienced major cyber attacks, followed by the JBS hack on June 1. The hack of Kaseya, believed by some to be just as consequential and damaging as SolarWinds, took place about a month later on July 2, affecting thousands of companies around the world.

The final, and perhaps the most important, of these predictions is that “economic drivers towards cybercrime will increase.” FS-ISAC claims that the current economic situation created by COVID-related lockdowns will “make cybercrime an ever more attractive alternative,” noting immediately afterwards that “dramatic increases in cryptocurrency valuation may drive threat actors to conduct campaigns capitalising on this market, including extortion campaigns against financial institutions and their customers.”

In other words, FS-ISAC views the increase in the value of cryptocurrency as a direct driver of cybercrime, implying that the value of cryptocurrency must be dealt with to reduce such criminal activities. However, the data does not fit these assertions as the use of cryptocurrency by cybercriminals is low and getting lower. For instance, one recent study found that only 0.34% of cryptocurrency transactions in 2020 were tied to criminal activity, down from 2% the year prior. Though the decrease may be due to a jump in cryptocurrency adoption, the overall percentage of crime-linked crypto transactions is incredibly low, a fact obviously known to FS-ISAC and its members.

However, cryptocurrency does present a threat to the plans by FS-ISAC members and its partners to begin producing digital currencies controlled either by approved private entities (like Russia’s Sbercoin) or central banks themselves (like China’s digital yuan). The success of that project depends on neutering the competition, which is likely why FS-ISAC subtitled its 2021 report as “the case for a global fincyber utility,” with such a utility framed as necessary to defend the financial services industry against cyber threats.

The WEF’s Partnership Against Cybercrime

Conveniently for FS-ISAC, there is already a project that hopes to soon become this very global fincyber utility – the WEF Partnership Against Cybercrime (WEF-PAC). Partners in WEF-PAC include some of the world’s largest banks and financial institutions, such as Bank of America, Banco Santander, Sberbank, UBS, Credit Suisse and the World Bank, as well as major payment processors such as Mastercard and PayPal. Also very significant is the presence of all of the “Big Four” global accounting firms: Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers.

Think tanks/non-profits, including the Council of EuropeThird Way and the Carnegie Endowment for International Peace as well as the WEF itself, are also among its members as are several national government agencies, like the US Department of Justice, FBI and Secret Service, the UK’s National Crime Agency and Israel’s National Cyber Directorate. International and regional law enforcement agencies, such as INTERPOL and EUROPOL, both of which are repeat participants in the WEF’s Cyber Polygon, are also involved. Silicon Valley is also well represented with the presence of Amazon, Microsoft, and Cisco, all three of which are also major US military and intelligence contractors. Cybersecurity companies founded by alumni and former commanders of Israeli intelligence services, such as Palo Alto Networks, Team8 and Check Point, are also prominent members. 

The Israeli intelligence angle is especially important when examining WEF-PAC, as one of its architects and the WEF’s current Head of Strategy for Cybersecurity is Tal Goldstein, though his biography on the WEF website seems to claim that he is Head of Strategy for the WEF as a whole. Goldstein is a veteran of Israeli military intelligence, having been recruited through Israel’s Talpiot program, which feeds high IQ teenagers in Israel into the upper echelons of elite Israeli military intelligence units with a focus on technology.  It is sometimes referred to as the IDF’s “MENSA” and was originally created by notorious Israeli spymaster Rafi Eitan. Eitan is best known as Jonathan Pollard’s handler and the mastermind behind the PROMIS software scandal, the most infamous Israeli intelligence operation conducted against Israel’s supposed “ally”, the United States. 

Due to its focus on technological ability, many Talpiot recruits subsequently serve in Israel’s Unit 8200, the signals intelligence unit of Israeli military intelligence that is often described as equivalent to the US’ NSA or the UK’s GCHQ, before moving into the private tech sector, including major Silicon Valley companies. Other Talpiot-Unit 8200 figures of note are one of the co-founders of Check Point, Marius Nacht, and Assaf Rappaport, who designed major aspects of Microsoft’s cloud services and later managed that division. Rappaport later came to manage much of Microsoft’s research and development until his abrupt departure early last year.

In addition to his past as a Talpiot recruit and 8 years in Israeli military intelligence, the WEF’s Tal Goldstein had played a key role in establishing Israel’s National Cyber Bureau, now part of Israel’s National Cyber Directorate, now a WEF-PAC partner. The National Cyber Bureau was established in 2013 with the explicit purpose “to build and maintain the State of Israel’s national strength as an international leader in the field” of cybersecurity. According to Goldstein’s WEF biography, Goldstein led the formation of Israel’s entire national cybersecurity strategy with a focus on technology, international cooperation, and economic growth. 

Goldstein was thus also one of the key architects of the Israeli cybersecurity policy shift which took place in 2012, whereby intelligence operations formerly conducted “in house” by Mossad, Unit 8200 and other Israeli intelligence agencies would instead be conducted through private companies that act as fronts for those intelligence agencies. One admitted example of such a front company is Black Cube, which was created by the Mossad to act explicitly as its “private sector” branch. In 2019, Israeli officials involved in drafting and executing that policy openly yet anonymously admitted to the policy’s existence in Israeli media reports. One of the supposed goals of the policy was to prevent countries like the US from ever boycotting Israel in any meaningful way for violations of human rights and international law by seeding prominent multinational tech companies, such as those based in Silicon Valley, with Israeli intelligence front companies. This effort was directly facilitated by American billionaire Paul Singer, who set up Start Up Nation Central with Benjamin Netanyahu’s main economic adviser and a top AIPAC official in 2012 to facilitate the incorporation of Israeli start-ups into American companies.

Goldstein’s selection by the WEF as head of strategy for its cybersecurity efforts suggests that Israeli intelligence agencies, as well as Israeli military agencies focused on cybersecurity, will likely play an outsized role in WEF-PAC’s efforts, particularly its ambition to create a new global governance structure for the internet. In addition, Goldstein’s past in developing a policy whereby private companies acted as conduits for intelligence operations is of obvious concern given the WEF’s interest in simulating and promoting an imminent “cyber pandemic” in the wake of the COVID crisis. Given that the WEF had simulated a scenario much like COVID prior to its onset through Event 201, having someone like Goldstein as the WEF’s head of strategy for all things cyber ahead of an alleged “cyber pandemic” is cause for concern.

A Global Threat to Justify a Global “Solution”

Last November, around the same time the WEF-Carnegie report was released, the WEF-PAC produced its own “insight report” aimed at “shaping the future of cybersecurity and digital trust.” Chiefly written by the WEF’s Tal Goldstein alongside executives from Microsoft, the Cyber Threat Alliance, and Fortinet, the report offers “a first step towards establishing a global architecture for cooperation” as part of a global “paradigm shift” in how cybercrime is addressed.

The foreword was authored by Jürgen Stock, the Secretary-General of INTERPOL, who had participated in last year’s Cyber Polygon exercise and will also participate in this year’s Cyber Polygon as well. Stock claims in the report that “a public-private partnership against cybercrime is the only way to gain an edge over cybercriminals” (emphasis added). Not unlike the WEF-Carnegie report, Stock asserts that only by ensuring that large corporations work hand in glove with law enforcement agencies “can we effectively respond to the cybercrime threat.”

The report first seeks to define the threat and focuses specifically on the alleged connection between cryptocurrencies, privacy enhancing technology, and cybercrime. It asserts that “cybercriminals abuse encryption, cryptocurrencies, anonymity services and other technologies”, even though their use is hardly exclusive to criminals. The report then states that, in addition to financially motivated cybercriminals, cybercriminals also include those who use those technologies to “uphold terrorism” and “spread disinformation to destabilize governments and democracies”. 

While the majority of the report’s discussion on the cybercrime threat focuses on ransomware, the WEF-PAC’s inclusion of “disinformation” highlights the fact that the WEF and their partners view cybercriminals through a much broader lens. This, of course, also means that the methods to combat cybercrime contained within the report could be used to target those who “spread disinformation”, not just ransomware and related attacks, meaning that such “disinformation” spreaders could see their use of cryptocurrency, encryption, etc. restricted by the rules and regulations WEF-PAC seeks to promote. However, the report promotes the use of privacy-enhancing technologies for WEF-PAC members, a clear double standard that reveals that this group sees privacy as something for the powerful and not for the general public.

This broad definition of “cybercriminal” conveniently dovetails with the Biden administration’s recent “domestic terror” strategy, which similarly has a very broad definition of who is a “domestic terrorist.” The Biden administration’s strategy is also not exclusive to the US, but a multinational framework that is poised to be used to censor and criminalize critics of the WEF stakeholder capitalism model as well as those deemed to hold “anti-government” and “anti-authority” viewpoints. 

The WEF-PAC report, which was published several months before the US strategy, has other parallels with the new Biden administration policy, such as its call to crack down on the use of anonymity software by those deemed “cybercriminals” and calling for “international information sharing and cross-border operational cooperation,” even if that cooperation is “not always aligned with existing legislative and operational frameworks.” In addition, the Biden administration’s strategy concludes by noting that it is part of a broader US government effort to “restore faith” in public institutions. Similarly, the WEF-PAC report frames combatting all types of activities they define as cybercrime necessary to improving “digital trust”, the lack of which is “greatly undermining the benefits of cyberspace and hindering international cyber stability efforts.”

In discussing “solutions”, the WEF-PAC calls for the global targeting of “infrastructures and assets” deemed to facilitate cybercrime, including those which enable ransomware “revenue streams”, i.e. privacy-minded cryptocurrencies, and enable “the promotion of illegal sites and the hosting of criminal content.” In another section, it discusses seizing websites of “cybercriminals” as an attractive possibility. Given that this document includes online “disinformation” as cybercrime, this could potentially see independent media websites and the infrastructure that allows them to operate (i.e. video sharing platforms that do not censor, etc.) emerge as targets.

The report continues, stating that “in order to reduce the global impact of cybercrime and to systematically restrain cybercriminals, cybercrime must be confronted at its source by raising the cost of conducting cybercrimes, cutting the activities’ profitability and deterring criminals by increasing the direct risk they face.” It then argues, unsurprisingly, that because the cybercrime threat is global in scope, it’s “solution must also be a globally coordinated effort” and says the main way to achieve this involves “harnessing the private sector to work side by side with law enforcement officials.” This is very similar to the conclusions of the WEF-Carnegie report, released around the same time as the WEF-PAC report, which called for private banks to work alongside law enforcement and intelligence agencies as well as their regulators to “protect” the global financial system from cybercriminals.

The Framework for a Global Cyber Utility

This global coordination, per the WEF-PAC, should be based around a new global system uniting law enforcement agencies from around the world with cybersecurity companies, large corporations such as banks, and other “stakeholders.” 

The stakeholders that will make up this new entity, the structure of which will be discussed shortly, is based around 6 founding principles, several of which are significant. For example, the first principle is to “embrace a shared narrative for collective action against cybercrime.” Per the report, this principle involves the stakeholders comprising this organization having “joint ownership of a shared narrative and objective for the greater good of reducing cybercrime across all industries and globally.” The second principle involves the stakeholders basing their cooperation on “long-term strategic alignment.” The fifth principle involves “ensuring value for participating in the cooperation”, with such that “value” or benefit being “aligned with the public and private sectors’ strategic interests.” In other words, the stakeholders of this global cyber utility will be united in their commitment to a common, public-facing “narrative” that serves their organizations’ “strategic interests” over the long term. The decision to emphasize the term “shared narrative” is important as a narrative is merely a story that does not necessarily need to reflect the truth of the situation, thus suggesting that stakeholders merely be consistent in their public statements so they all fit the agreed upon narrative. 

Many organizations that are related to or are formally part of WEF-PAC are deeply invested in Central Bank Digital Currencies (CBDCs) as well as efforts to digitalize and thus more easily control nearly every sector of the global economy and to regulate the internet. Therefore, it is reasonable to conclude that many of these groups may look to justify regulations and other measures that will advance these agendas in which they have long-term “strategic interests” through the promotion of a “shared narrative” that is deemed most palatable to the general public, but not necessarily based in fact. Business is business, after all.

The WEF-PAC report concludes with its three-tier model for “a global architecture for public-private cooperation against cybercrime.” The top level of this system is referred to as the “global partnership”, which will build on the existing WEF-PAC and will “bring together international stakeholders to provide an overarching narrative and commitment to cooperate; foster interaction within a global network of entities that drive efforts to fight cybercrime; and facilitate strategic dialogues and processes aiming to support cooperation and overcome barriers in the long term.” 

Elsewhere in the report it notes that chief among these “barriers” are existing pieces of legislation in many countries that prohibit law enforcement agencies and government regulators from essentially fusing their operations with private sector entities, particularly those they are meant to either oversee or prosecute for wrongdoing. In addition, the report states that this “global partnership” would focus on fostering “a shared narrative to increase commitment and affiliation”, amplifying “operational cooperation” between the public and private sectors and improving “stakeholders’ understanding of respective interests, needs, goals, priorities and constraints.”

The second level of this system is called “permanent nodes” in the report. These are defined as “a global network of existing organizations that strive to facilitate public-private cooperation over time.” The main candidates to occupy the role of “permanent nodes” are “non-profit organizations that are already spurring cooperation between private companies and law enforcement agencies,” specifically the Cyber Threat Alliance and the Global Cyber Alliance. Both are discussed in detail in the next section. Other potential “permanent nodes” mentioned in the report are INTERPOL, EURPOL and, of course, FS-ISAC. While the top level “global partnership” represents the “strategic level” of the organization, the “permanent node” level represents the “coordination level” as the nodes would supply necessary infrastructure, operational rules, and management, as well as “strategic dialogue” among member organizations.

The permanent nodes would directly enable the third level of the organization, which are referred to as “Threat Focus Cells” and are defined as representing the organization’s “operational level.” The WEF-PAC defines these cells as “temporary trust groups consisting of both public- and private-sector organizations and they would focus on discreet cybercrime targets or issues.” Per the report, each cell “would be led jointly by a private-sector participant, a law enforcement participant and a designated representative” of the permanent node that is sponsoring the cell. 

Ideally, it states that cells should have between 10 to 15 participants and that “private-sector participants would typically represent organizations that can act to enhance cybersecurity on behalf of large constituencies, that have unique access to relevant cybersecurity information and threat intelligence, or that can contribute on an ecosystem-wide basis.” Thus, only massive corporations need apply. In addition, it states that law enforcement members of threat cells should “represent national-level agencies” or hail from “network defence or sector-specific agencies” at the national, regional or international level. Cell activities would range from “scouting a new threat” to “an infrastructure takedown” to “arrests.”

The WEF-PAC concludes by stating that “in the coming months, the Partnership against Cybercrime Working Group will continue to prepare the implementation of these concepts and widen the scope of the initiative’s efforts”, including by inviting “leading companies and law enforcement agencies” to pledge their commitment to the WEF-PAC’s efforts. It then states that “the suggested architecture could eventually evolve into a newly envisioned, independent Alliance to Combat Global Cybercrime.” “In the interim,” it continues, “the World Economic Forum and key stakeholders will work together to promote the desired processes and assess the validity of the concept.”

Meet the “Nodes”

Among the organizations that the WEF-PAC highlights as shoo-in candidates for “permanent nodes” in their proposal for a global cyber utility, there are two that stand out and are worth examining in detail. They are the Cyber Threat Alliance (CTA) and the Global Cyber Alliance (GCA), both of which are formal members of the WEF-PAC.

The Cyber Threat Alliance (CTA) was initially founded by the companies Fortinet and Palo Alto Networks in May 2014, before McAfee and Symantec joined CTA as co-founders that September. Today, Fortinet and Palo Alto Networks are charter members alongside Check Point and Cisco, while Symantec and McAfee are affiliate members alongside Verizon, Sophos and Avast, among several others. The mission of CTA is to allow for information sharing among its many partners, members, and affiliates in order to “allow the sharing of threat intelligence to better protect their customers against cyberattacks and to make the defense ecosystem more effective,” according to CTA’s current chief executive. CTA, per their website, also focuses on “advocacy” aimed at informing policy initiatives of governments around the world.

CTA is directly partnered with FS-ISAC and the WEF-PAC as well as the hawkish, US-based think tank the Aspen Institute, which is heavily funded by the Bill and Melinda Gates Foundation and the Carnegie Corporation. Other partners include: MITRE Engenuity, the “tech foundation for public good” of the secretive US intelligence and military contractor MITRE; the Cyber Peace Institute, a think tank seeking “peace and justice in cyberspace” that is largely funded by Microsoft and Mastercard (both of which are WEF partners and key players in ID2020); the Cybersecurity Coalition, whose members include Palo Alto Networks, Israeli intelligence front company Cybereasonintelligence and military operative Amit Yoran’s Tenable, Intel, AT&T, Google, McAfee, Microsoft, Avast and Cisco, among others; the Cybercrime Support Network, a non-profit funded by AT&T, Verizon, Google, Cisco, Comcast, Google and Microsoft, among others; and the Global Cyber Alliance, to be discussed shortly. Another key partner is the Institute for Security and Technology (IST), which has numerous ties to the US military, particularly DARPA, and the US National Security State, including the CIA’s In-Q-Tel. The CEO of the Cyber Peace Institute, Stéphane Duguin, was a participant in Cyber Polygon 2020, and the CEO of the Cybercrime Support Network, Kristin Judge, contributed to the WEF-PAC report. Some of the CTA’s partners are listed in the WEF-PAC report as other potential “permanent nodes.”

The CTA is led by Michael Daniel, who co-wrote the WEF-PAC report with Tal Goldstein. Daniel, immediately prior to joining CTA as its top executive in early 2017, was a Special Assistant to former President Obama and the Cybersecurity coordinator of Obama’s National Security Council. In that capacity, Daniel developed the foundations for the US government’s current national cybersecurity strategy, which includes partnerships with the private sector, NGOs and foreign governments. Daniel has stated that some of his cybersecurity views at CTA are drawn “in part on the wisdom of Henry Kissinger” and he has been an agenda contributor to the WEF since his time in the Obama administration. Daniel is one of Cyber Polygon 2021’s experts and will be speaking alongside Teresa Walsh of FS-ISAC and Craig Jones of INTERPOL on how to develop an international response to ransomware attacks.

The fact that CTA was founded by Fortinet and Palo Alto Networks is notable as both companies are intimately related. Fortinet’s founder Ken Xie, who sits on CTA’s board and is a founding member and advisor to the WEF’s Centre for Cybersecurity, previously founded and then ran NetScreen Technologies, where Palo Alto Network’s founder, Nir Zuk, worked after his earlier company OneSecure was acquired by NetScreen in 2002. Zuk is an alumni of Israeli intelligence’s Unit 8200 and was recruited directly out of that unit in 1994 by Check Point, a CTA charter member, WEF-PAC member and tech company founded by Unit 8200 alumni. Zuk has been open about maintaining close ties to the Israeli government while operating the California-based Palo Alto Networks. Fortinet, for its part, is known for hiring former US intelligence officials, including former top NSA officials. Fortinet is a US government and US military contractor and came under scrutiny in 2016 after a whistleblower filed suit against the company for illegally selling the US military technological products that had been disguised in order to appear as American-made, but were actually made in China. Fortinet’s Derek Manky is one of the co-authors of the WEF-PAC report.

Check Point’s co-founder and current CEO, Gil Shwed, currently sits on CTA’s board of directors and is also a WEF “Global Leader for Tomorrow”, in addition to his longstanding ties to the Israeli National Security State and his past work for Unit 8200. Another Check Point top executive, Dorit Dor, is a member of the WEF Centre for Cybersecurity and a speaker at Cyber Polygon 2021, where she will speak on protecting supply chains. Gil Shwed, over the past few weeks, has been making numerous appearances on US cable television news to warn that a “cyber pandemic” is imminent. In addition to those appearances, Shwed produced a video on June 23rd asking “Is a Cyber Pandemic Coming?”, in which Shwed answers with a resounding yes. The term “cyber pandemic” first emerged on the scene last year during WEF chairman Klaus Schwab’s opening speech at the first WEF Cyber Polygon simulation and it is notable that the WEF-connected Shwed uses the same terminology. Schwab also stated in that speech that the comprehensive cyber attacks that would comprise this “cyber pandemic” would make the COVID-19 crisis appear to be “a small disturbance in comparison.”

In addition to CTA, another international alliance named by the WEF-PAC as a “permanent node” candidate is the Global Cyber Alliance (GCA). The GCA was reportedly the idea of Manhattan District Attorney Cyrus Vance Jr. who “knew that there had to be a better way to confront the cybercrime epidemic” back in 2015. GCA was born through discussions Vance held with William Pelgrin, former President and CEO of the Center for Internet Security (CIS) and one of New York Governor Andrew Cuomo’s top cyber advisors. Pelgrin and Vance later approached Adrian Leppard, the then- police commissioner of the City of London, the controversial financial center of the UK. Unsurprisingly, CityUK, the City of London’s main financial lobby group, is a member of the GCA. 

If one is familiar with Cyrus Vance’s time as Manhattan DA, his interest in meaningfully pursuing crime, particularly if committed by the wealthy and powerful, is laughable. Vance infamously dropped cases against and/or declined to prosecute powerful New York figures, including Donald Trump’s children and Harvey Weinstein, subsequently receiving massive donations to his re-election campaigns from Trump family and Weinstein lawyers. His office also once lobbied a New York court on behalf of intelligence-linked pedophile Jeffrey Epstein, who was seeking at the time to have his registered sex offender status downgraded. Vance’s office later U-turned in regards to Weinstein and Epstein after more and more accusers came forward and after considerable press attention was paid to their misdeeds. Vance also came under scrutiny after dropping charges against former head of the International Monetary Fund (IMF), Dominique Strauss-Kahn, for the sexual assault of a hotel maid.

Vance used $25 million in criminal asset forfeiture funds to create GCA, in addition to funding from Pelgrin’s CIS and the Leppard-run City of London police. Its official yet opaque purpose is “to reduce cyber risk” on a global scale in order to create “a secure, trustworthy internet.” Their means of accomplishing this purpose is equally vague as they claim to “approach this challenge by building partnerships and creating a global community that stands strong together.” For all intents and purposes, GCA is a massive organization whose members seek to create a more regulated, less anonymous internet. 

The role of the Center for Internet Security (CIS) in the GCA is highly significant, as CIS is the non-profit that manages key bodies involved in the maintenance of critical US infrastructure, including for US state and local governments and for federal, state and local elections. CIS, which is also partnered with CTA, also works closely with the main groups responsible for protecting the US power grid and water supply systems and is also directly partnered with the Department of Homeland Security (DHS). Its board of directors, in addition to William Pelgrin, includes former high-ranking military and intelligence operatives (i.e. the aforementioned Amit Yoran), former top officials at the DHS and the National Security Agency (NSA) and one of the main architects of US cyber policy under the administrations of both George W. Bush and Barack Obama. CIS was created through private meetings between “a small group of business and government leaders” who were members of the Cosmos Club, the “private social club” of the US political and scientific elite whose members have included three presidents, a dozen Supreme Court justices and numerous Nobel Prize winners.

GCA’s main funders are the founders listed above as well as the William and Flora Hewlett Foundation, the foundation of the co-founder of Hewlett-Packard (HP), a tech giant with deep ties to US intelligence; Craig Newmark Philanthropies, the “philanthropic” arm of the Craigslist founder’s influence empire; and Bloomberg, the media outlet owned by billionaire and former Mayor of New York Mike Bloomberg. GCA’s premium partners, which also fund GCA and secure a seat on GCA’s Strategic Advisory Committee, include Facebook, Mastercard, Microsoft, Intel, and PayPal as well as C. Hoare & Co., the UK’s oldest privately owned bank and the fifth oldest bank in the world. Other significant premium partners include the Public Interest Registry, which manages the .org domain for websites, and ICANN (the Internet Corporation for Assigned Names and Numbers), that manages much of the Internet’s global Domain Name System (DNS). Those two organizations together represent a significant portion of website domain name management globally. Notably, the founding chairwoman of ICANN was Esther Dyson, whose connections to Jeffrey Epstein and the Edge Foundation were discussed in a recent Unlimited Hangout investigation.

In terms of partners, GCA is much larger than CTA and other such alliances, most of which are themselves partners of GCA. Indeed, nearly every partner of CTA, including the CTA itself are part of the GCA as is CTA co-founder Palo Alto Networks. GCA’s partners include several international law enforcement agencies including: the National Police, National Gendarmerie and Ministry of Justice of France, the Ministry of Justice of Lagos, the Royal Canadian Mounted Police, the UK Met Police, and the US Secret Service. The state governments of Michigan and New York are also partners. Several institutions and companies deeply tied to the US National Security State, such as Michael Chertoff’s the Chertoff Groupthe National Security Institute, and MITRE, are part of GCA as are some of the most controversial and intelligence-connected cybersecurity companies, such as Crowdstrike and Sepio Systems, another Unit 8200 alumni-founded company whose chairman of the board is former Mossad director Tamir Pardo. The Israeli intelligence-linked initiative CyberNYC is also a member. Major telecommunication companies like Verizon and Virgin are represented alongside some of the world’s largest banks, including Bank of America and Barclays, as well as FS-ISAC and the UK’s “most powerful financial lobby”, the CityUK.

Also crucial is the presence of several media organizations as partners, chief among them Bloomberg. Aside from Bloomberg and Craig Newmark Philanthropies (which funds several mainstream news outlets and “anti-fake news” initiatives), media outlets and organizations partnered with GCA include Free Press Unlimited (funded by George Soros’ Open Society Foundations, the European Union, and the US, Dutch, Belgian and UK governments), the Institute for Nonprofit News (funded by Craig Newmark, Pierre Omidyar’s Omidyar Network and George Soros’ Open Society Foundations, among others), and Report for America (funded by Craig Newmark Philanthropies, Facebook, Google and Bloomberg). PEN America, the well-known non-profit  and literary society focused on press freedom, is also a member. PEN has become much more closely aligned with US government policy and particularly the Democratic Party in recent years, likely owing to its current CEO being Suzanne Nossel, a former deputy Assistant Secretary of State for International Organizations at the Hillary Clinton-run State Department. The many other members of GCA can all be found here.

 The End of Anonymity

The considerable involvement of some of the most powerful corporations in the world from some of the most critical sectors that underpin the current economy, as well as non-profits that manage key internet, government and utility infrastructure in these organizations that comprise WEF-PAC is highly significant and also concerning for more than a few reasons. Indeed, if all were to follow the call to form a “shared narrative”, whether it is true or not, in pursuit of long-term “strategic interests”, which the WEF and many of its partners directly relate to the rapid implementation of the 4th Industrial Revolution via the “Great Reset”, the WEF-PAC  global cyber utility could emerge sooner rather than later. 

As evidenced by the architecture put forth by WEF-PAC, the power that organization would have over the public and private sectors is considerable. Such an organization, once established, could usher in long-standing efforts to both require a digital ID to access and use the internet as well as eliminate the ability to conduct anonymous financial transactions. Both policies would advance the overarching goal of both the WEF and many corporations and governments to usher in a new age of unprecedented surveillance of ordinary citizens.

The effort to eliminate anonymous transactions in digital currency has become very overt in some countries in recent weeks, particularly in the US. For instance, Anne Neuberger, current Deputy National Security Adviser who has deep ties to the US-Israel lobby, stated on June 29 that the Biden administration was considering obtaining more “visibility” into ransomware groups’ activities, particularly anonymous cryptocurrency transactions. Such efforts could easily cross the line into state surveillance of any and all Americans’ online crypto transactions, especially given the US government’s history of habitually engaging in surveillance overreach in the post-9/11 era. One specific possibility mentioned by Neuberger was to prohibit companies from keeping crypto payments of concern secret, suggesting possible, imminent regulation of cryptocurrency exchanges. Current efforts, per Neuberger, also include an effort to build “an international coalition” against ransomware, which will likely tie into WEF-PAC given that the FBI, DOJ and US Secret Service are already members. 

Neuberger also stated that the recent public-private partnership that took down the Trickbot botnet “should be the kind of operation used to tackle ransomware gangs in the future.” However, that effort, led by WEF partner Microsoftpreemptively took down a network of computers “out of fear that hackers could deploy [that network] to launch ransomware attacks to inhibit election-supporting IT systems” ahead of the US election. Using Trickbot as the model for future ransomware operations means opening the door to companies like Microsoft taking preemptive action against infrastructure used by people that the government and private sector “fear” may engage in “cybercrime” at some point in the future.

Notably, on the same day as Neuberger’s statements, Congressional representative Bill Foster (D-IL) told Axios that “there’s significant sentiment in Congress that if you’re participating in an anonymous crypto transaction that you are a de facto participant in a criminal conspiracy.” Coming from Rep. Foster, this is quite significant as he is a member of the Financial Services Committee, the Blockchain Caucus and a recently formed Congressional working group on cryptocurrency. His decision to use the phrase “anonymous crypto transaction” as opposed to a transaction linked to ransomware or criminal activity is also significant, as it suggests that the possibility that complete anonymity is seen to be the target of coming efforts to regulate the crypto space by the US Congress. While Foster claims to oppose a “completely surveilled environment” for crypto, he qualifies that by stating that “you have to be able to unmask and potentially reverse those [crypto] transactions.” However, if this becomes government policy, it will mean the only group allowed to have complete anonymity in online financial transactions will be the State and will open the door to the government’s abuse of “unmasking”, which the US government has done in numerous instances over the years through the systematic abuse of FISA warrants.

It is also important to mention that the US is hardly alone in its effort to wipe out online financial anonymity in the crypto world, as several governments that are supporting Central Bank Digital Currency (CBDC) projects, which includes the US, are either moving towards or have already cracked down on the crypto space. For example, soon after China introduced the “digital yuan”, it cracked down on bitcoin miners and companies that provide services, including ads and marketing, to crypto-related entities. This had major implications for the crypto market and resulted in a considerable reduction in bitcoin’s value, which it has yet to fully recover. It is reasonable to assume that other governments will work to aggressively regulate or even ban crypto markets following the introduction of their CBDC projects in order to force widespread adoption of the digital currency favored by the State. It is also worth highlighting the additional fact that, as China introduced the digital yuan, it also sought to crackdown on cash, stating that the anonymity offered by cash – much like anonymous crypto transactions – could also be used for “illicit activity.”

However, there are some obvious holes in the WEF-PAC’s narratives and justifications for its “solutions.” For example, even if cryptocurrencies are banned or heavily regulated, it is unlikely that this will end cyber attacks, with hackers likely finding a new way to conduct operations that provide them with some sort of financial benefit. Cyber attacks and cybercrime precede the creation of crypto considerably and would continue even if crypto were somehow magically removed from the equation.

In addition, there has been speculation about the nature of the 3 big hacks that took place over the past year: SolarWinds, Colonial and JBS. In the case of SolarWinds, attribution of blame to “Russian hackers” came down to CIA-linked cybersecurity firm FireEye claiming that the “disciplined” methodology of the hackers could only possibly have been individuals tied to Russia’s government and because FireEye’s CEO received a postcard he “suspects” was Russian in origin. Left uninvestigated was the firm Samanage, which is linked to the same intelligence networks in which the WEF’s current head of cyber strategy worked for years. 

Regarding the Colonial pipeline hack, there is the fact that the original narrative was later proven false, as the pipeline itself remained functional, but services were halted due to the company’s concerns about their ability to bill customers properly. In addition, the US Department of Justice managed to seize the vast majority of the bitcoin ransomware payment Colonial had made, suggesting that extreme regulation of the crypto market may not actually be necessary to deter cybercriminals or recuperate ransomware payments. Surely, WEF-PAC is aware of this because the US Department of Justice is one of its members. 

With the JBS hack, there is the fact that the company, the world’s largest meats processor, had partnered with the WEF just months before regarding the need to reduce meat consumption and had begun to heavily invest and acquire non-animal-based alternatives. Blackrock, a major WEF partner, is the 3rd largest shareholder in JBS. Notably, after the hack, the situation was quickly used to warn of upcoming, widespread meat shortages, even though the disruption of the hack paused operations for just one day. In addition, the JBS hack was supposedly executed by “Russian hackers” being given “safe haven” by Russia’s government. However, JBS somehow has no problem partnering the WEF, which co-hosts Cyber Polygon alongside the cybersecurity subsidiary of Sberbank, which is majority owned by the same Russian government supposedly enabling JBS’ hackers.

In addition to the effort to regulate crypto, there is also a push by WEF-partnered governments to end privacy and the potential for anonymity on the internet in general, by linking government-issued IDs to internet access. This would allow every piece of online content accessed to be surveilled, as well as every post or comment authored by each citizen, supposedly to ensure that no citizen can engage in “criminal” activity online. This policy is part of an older effort, particularly in the US, where creating a nationwide “Driver’s License for the Internet” was proposed and then piloted by the Obama administration. The European Union made a similar effort to require government-issued IDs for social media access a few years later. 

The UK also launched its Verify digital ID program around the same time, something which former UK Prime Minister and WEF associate Tony Blair has been pushing aggressively to have expanded into a compulsory requirement in recent months. Then, just last month, the EU implemented a sweeping, new digital ID service that could easily be expanded to fit with the Union’s past efforts to link such IDs to access to online services. As Unlimited Hangout noted earlier this year, the infrastructure for many of these digital IDs, as well as vaccine passports, have been set up so that they are also eventually linked to financial activity and potentially online activity as well. 

Ultimately, what WEF-PAC represents is a global organization that aims to neuter anonymity online, whether for financial purposes or for browsing and other activities. It is a global effort combining powerful governments and corporations that seeks to usher in a new age of surveillance that makes such surveillance a requirement to participate in the online world or use online services. It is being sold to the public as the only way to stop a coming “pandemic” of cybercrime, a crisis taking place largely in murky parts of the internet that few understand or have any direct experience with. Having to rely on State intelligence agencies and intelligence-linked cybersecurity firms for attribution of these crimes, it has never been easier for corrupt actors in those agencies or their partners to either manufacture or manipulate a crisis that could upend online freedom as we have known it, something these very groups have sought to implement for years.

All of this should serve as a poignant reminder that, as much as our lives have become interconnected with the internet and online activity, the fight to protect human freedom, dignity and liberty against a predatory, global oligarchy is fundamentally one that must take place in the real world, not only online. May the coming “cyber war”, whatever form it takes, remind many that online activism must be accompanied by real world actions and organizing.

Tyler Durden Sun, 07/18/2021 - 21:30

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Government

Walmart joins Costco in sharing key pricing news

The massive retailers have both shared information that some retailers keep very close to the vest.

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As we head toward a presidential election, the presumed candidates for both parties will look for issues that rally undecided voters. 

The economy will be a key issue, with Democrats pointing to job creation and lowering prices while Republicans will cite the layoffs at Big Tech companies, high housing prices, and of course, sticky inflation.

The covid pandemic created a perfect storm for inflation and higher prices. It became harder to get many items because people getting sick slowed down, or even stopped, production at some factories.

Related: Popular mall retailer shuts down abruptly after bankruptcy filing

It was also a period where demand increased while shipping, trucking and delivery systems were all strained or thrown out of whack. The combination led to product shortages and higher prices.

You might have gone to the grocery store and not been able to buy your favorite paper towel brand or find toilet paper at all. That happened partly because of the supply chain and partly due to increased demand, but at the end of the day, it led to higher prices, which some consumers blamed on President Joe Biden's administration.

Biden, of course, was blamed for the price increases, but as inflation has dropped and grocery prices have fallen, few companies have been up front about it. That's probably not a political choice in most cases. Instead, some companies have chosen to lower prices more slowly than they raised them.

However, two major retailers, Walmart (WMT) and Costco, have been very honest about inflation. Walmart Chief Executive Doug McMillon's most recent comments validate what Biden's administration has been saying about the state of the economy. And they contrast with the economic picture being painted by Republicans who support their presumptive nominee, Donald Trump.

Walmart has seen inflation drop in many key areas.

Image source: Joe Raedle/Getty Images

Walmart sees lower prices

McMillon does not talk about lower prices to make a political statement. He's communicating with customers and potential customers through the analysts who cover the company's quarterly-earnings calls.

During Walmart's fiscal-fourth-quarter-earnings call, McMillon was clear that prices are going down.

"I'm excited about the omnichannel net promoter score trends the team is driving. Across countries, we continue to see a customer that's resilient but looking for value. As always, we're working hard to deliver that for them, including through our rollbacks on food pricing in Walmart U.S. Those were up significantly in Q4 versus last year, following a big increase in Q3," he said.

He was specific about where the chain has seen prices go down.

"Our general merchandise prices are lower than a year ago and even two years ago in some categories, which means our customers are finding value in areas like apparel and hard lines," he said. "In food, prices are lower than a year ago in places like eggs, apples, and deli snacks, but higher in other places like asparagus and blackberries."

McMillon said that in other areas prices were still up but have been falling.

"Dry grocery and consumables categories like paper goods and cleaning supplies are up mid-single digits versus last year and high teens versus two years ago. Private-brand penetration is up in many of the countries where we operate, including the United States," he said.

Costco sees almost no inflation impact

McMillon avoided the word inflation in his comments. Costco  (COST)  Chief Financial Officer Richard Galanti, who steps down on March 15, has been very transparent on the topic.

The CFO commented on inflation during his company's fiscal-first-quarter-earnings call.

"Most recently, in the last fourth-quarter discussion, we had estimated that year-over-year inflation was in the 1% to 2% range. Our estimate for the quarter just ended, that inflation was in the 0% to 1% range," he said.

Galanti made clear that inflation (and even deflation) varied by category.

"A bigger deflation in some big and bulky items like furniture sets due to lower freight costs year over year, as well as on things like domestics, bulky lower-priced items, again, where the freight cost is significant. Some deflationary items were as much as 20% to 30% and, again, mostly freight-related," he added.

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Government

Walmart has really good news for shoppers (and Joe Biden)

The giant retailer joins Costco in making a statement that has political overtones, even if that’s not the intent.

Published

on

As we head toward a presidential election, the presumed candidates for both parties will look for issues that rally undecided voters. 

The economy will be a key issue, with Democrats pointing to job creation and lowering prices while Republicans will cite the layoffs at Big Tech companies, high housing prices, and of course, sticky inflation.

The covid pandemic created a perfect storm for inflation and higher prices. It became harder to get many items because people getting sick slowed down, or even stopped, production at some factories.

Related: Popular mall retailer shuts down abruptly after bankruptcy filing

It was also a period where demand increased while shipping, trucking and delivery systems were all strained or thrown out of whack. The combination led to product shortages and higher prices.

You might have gone to the grocery store and not been able to buy your favorite paper towel brand or find toilet paper at all. That happened partly because of the supply chain and partly due to increased demand, but at the end of the day, it led to higher prices, which some consumers blamed on President Joe Biden's administration.

Biden, of course, was blamed for the price increases, but as inflation has dropped and grocery prices have fallen, few companies have been up front about it. That's probably not a political choice in most cases. Instead, some companies have chosen to lower prices more slowly than they raised them.

However, two major retailers, Walmart (WMT) and Costco, have been very honest about inflation. Walmart Chief Executive Doug McMillon's most recent comments validate what Biden's administration has been saying about the state of the economy. And they contrast with the economic picture being painted by Republicans who support their presumptive nominee, Donald Trump.

Walmart has seen inflation drop in many key areas.

Image source: Joe Raedle/Getty Images

Walmart sees lower prices

McMillon does not talk about lower prices to make a political statement. He's communicating with customers and potential customers through the analysts who cover the company's quarterly-earnings calls.

During Walmart's fiscal-fourth-quarter-earnings call, McMillon was clear that prices are going down.

"I'm excited about the omnichannel net promoter score trends the team is driving. Across countries, we continue to see a customer that's resilient but looking for value. As always, we're working hard to deliver that for them, including through our rollbacks on food pricing in Walmart U.S. Those were up significantly in Q4 versus last year, following a big increase in Q3," he said.

He was specific about where the chain has seen prices go down.

"Our general merchandise prices are lower than a year ago and even two years ago in some categories, which means our customers are finding value in areas like apparel and hard lines," he said. "In food, prices are lower than a year ago in places like eggs, apples, and deli snacks, but higher in other places like asparagus and blackberries."

McMillon said that in other areas prices were still up but have been falling.

"Dry grocery and consumables categories like paper goods and cleaning supplies are up mid-single digits versus last year and high teens versus two years ago. Private-brand penetration is up in many of the countries where we operate, including the United States," he said.

Costco sees almost no inflation impact

McMillon avoided the word inflation in his comments. Costco  (COST)  Chief Financial Officer Richard Galanti, who steps down on March 15, has been very transparent on the topic.

The CFO commented on inflation during his company's fiscal-first-quarter-earnings call.

"Most recently, in the last fourth-quarter discussion, we had estimated that year-over-year inflation was in the 1% to 2% range. Our estimate for the quarter just ended, that inflation was in the 0% to 1% range," he said.

Galanti made clear that inflation (and even deflation) varied by category.

"A bigger deflation in some big and bulky items like furniture sets due to lower freight costs year over year, as well as on things like domestics, bulky lower-priced items, again, where the freight cost is significant. Some deflationary items were as much as 20% to 30% and, again, mostly freight-related," he added.

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International

When Military Rule Supplants Democracy

When Military Rule Supplants Democracy

Authored by Robert Malone via The Brownstone Institute,

If you wish to understand how democracy ended…

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When Military Rule Supplants Democracy

Authored by Robert Malone via The Brownstone Institute,

If you wish to understand how democracy ended in the United States and the European Union, please watch this interview with Tucker Carlson and Mike Benz. It is full of the most stunning revelations that I have heard in a very long time.

The national security state is the main driver of censorship and election interference in the United States.

“What I’m describing is military rule,” says Mike Benz.

“It’s the inversion of democracy.”

Please watch below...

I have also included a transcript of the above interview. In the interests of time – this is AI generated. So, there still could be little glitches – I will continue to clean up the text over the next day or two.

Note: Tucker (who I consider a friend) has given me permission to directly upload the video above and transcript below – he wrote this morning in response to my request:

Oh gosh, I hope you will. It’s important.

Honestly, it is critical that this video be seen by as many people as possible. So, please share this video interview and transcript.

Five points to consider that you might overlook;

First– the Aspen Institute planning which is described herein reminds me of the Event 201 planning for COVID.

Second– reading the comments to Tucker’s original post on “X” with this interview, I am struck by the parallels between the efforts to delegitimize me and the new efforts to delegitimize Mike Benz. People should be aware that this type of delegitimization tactic is a common response by those behind the propaganda to anyone who reveals their tactics and strategies. The core of this tactic is to cast doubt about whether the person in question is unreliable or a sort of double agent (controlled opposition).

Third– Mike Benz mostly focuses on the censorship aspect of all of this, and does not really dive deeply into the active propaganda promotion (PsyWar) aspect.

Fourth– Mike speaks of the influence mapping and natural language processing tools being deployed, but does not describe the “Behavior Matrix” tool kit involving extraction and mapping of emotion. If you want to dive in a bit further into this, I covered this latter part October 2022 in a substack essay titled “Twitter is a weapon, not a business”.

Fifth– what Mike Benz is describing is functionally a silent coup by the US Military and the Deep State. And yes, Barack Obama’s fingerprints are all over this.

Yet another “conspiracy theory” is now being validated.

Transcript of the video:

Tucker Carlson:

The defining fact of the United States is freedom of speech. To the extent this country is actually exceptional, it’s because we have the first amendment in the Bill of Rights. We have freedom of conscience. We can say what we really think.

There’s no hate speech exception to that just because you hate what somebody else thinks. You cannot force that person to be quiet because we’re citizens, not slaves. But that right, that foundational right that makes this country what it is, that right from which all of the rights flow is going away at high speed in the face of censorship. Now, modern censorship, there’s no resemblance to previous censorship regimes in previous countries and previous eras. Our censorship is affected on the basis of fights against disinformation and malformation. And the key thing to know about this is that they’re everywhere. And of course, this censorship has no reference at all to whether what you’re saying is true or not.

In other words, you can say something that is factually accurate and consistent with your own conscience. And in previous versions of America, you had an absolute right to say those things. but now – because someone doesn’t like them or because they’re inconvenient to whatever plan the people in power have, they can be denounced as disinformation and you could be stripped of your right to express them either in person or online. In fact, expressing these things can become a criminal act and is it’s important to know, by the way, that this is not just the private sector doing this.

These efforts are being directed by the US government, which you pay for and at least theoretically owned. It’s your government, but they’re stripping your rights at very high speed. Most people understand this intuitively, but they don’t know how it happens. How does censorship happen? What are the mechanics of it?

Mike Benz is, we can say with some confidence, the expert in the world on how this happens. Mike Benz had the cyber portfolio at the State Department. He’s now executive director of Foundation for Freedom Online, and we’re going to have a conversation with him about a very specific kind of censorship. By the way, we can’t recommend strongly enough, if you want to know how this happens, Mike Benz is the man to read.

But today we just want to talk about a specific kind of censorship and that censorship that emanates from the fabled military industrial complex, from our defense industry and the foreign policy establishment in Washington. That’s significant now because we’re on the cusp of a global war, and so you can expect censorship to increase dramatically. And so with that, here is Mike Benz, executive director of Foundation for Freedom online. Mike, thanks so much for joining us and I just can’t overstate to our audience how exhaustive and comprehensive your knowledge is on this topic. It’s almost unbelievable. And so if you could just walk us through how the foreign policy establishment and defense contractors and DOD and just the whole cluster, the constellation of defense related publicly funded institutions, stripped from us,

Mike Benz:      

Our freedom of speech. Sure. One of the easiest ways to actually start the story is really with the story of internet freedom and it switched from internet freedom to internet censorship because free speech on the internet was an instrument of statecraft almost from the outset of the privatization of the internet in 1991. We quickly discovered through the efforts of the Defense Department, the State Department and our intelligence services, that people were using the internet to congregate on blogs and forums. And at this point, free speech was championed more than anybody by the Pentagon, the State Department, and our sort of CIA cutout NGO blob architecture as a way to support dissident groups around the world in order to help them overthrow authoritarian governments as they were sort of build essentially the internet free speech allowed kind of insta regime change operations to be able to facilitate the foreign policy establishments State Department agenda.     

Google is a great example of this. Google began as a DARPA grant by Larry Page and Sergey Brin when they were Stanford PhDs, and they got their funding as part of a joint CIA NSA program to chart how “birds of a feather flock together online” through search engine aggregation. And then one year later they launched Google and then became a military contractor. Quickly thereafter, they got Google Maps by purchasing a CIA satellite software essentially, and the ability to use free speech on the internet as a way to circumvent state control over media over in places like Central Asia and all around the world, was seen as a way to be able to do what used to be done out of CIA station houses or out of embassies or consulates in a way that was totally turbocharged. And all of the internet free speech technology was initially created by our national security state – VPNs, virtual private networks to hide your IP address, tour the dark web, to be able to buy and sell goods anonymously, end-to-end encrypted chats.    

All of these things were created initially as DARPA projects or as joint CIA NSA projects to be able to help intelligence backed groups, to overthrow governments that were causing a problem to the Clinton administration or the Bush administration or the Obama administration. And this plan worked magically from about 1991 until about 2014 when there began to be an about face on internet freedom and its utility.

Now, the high watermark of the sort of internet free speech moment was the Arab Spring in 2011, 2012 when you had this one by one – all of the adversary governments of the Obama Administration: Egypt, Tunisia, all began to be toppled in Facebook revolutions and Twitter revolutions. And you had the State Department working very closely with the social media companies to be able to keep social media online during those periods. There was a famous phone call from Google’s Jared Cohen to Twitter to not do their scheduled maintenance so that the preferred opposition group in Iran would be able to use Twitter to win that election.            

So free speech was an instrument of statecraft from the national security state to begin with. All of that architecture, all the NGOs, the relationships between the tech companies and the national security state had been long established for freedom. In 2014, after the coup in Ukraine, there was an unexpected counter coup where Crimea and the Donbas broke away and they broke away with essentially a military backstop that NATO was highly unprepared for at the time. They had one last Hail Mary chance, which was the Crimea annexation vote in 2014. And when the hearts and minds of the people of Crimea voted to join the Russian Federation, that was the last straw for the concept of free speech on the internet in the eyes of NATO – as they saw it. The fundamental nature of war changed at that moment. And NATO at that point declared something that they first called the Gerasimov doctrine, which was named after this Russian military, a general who they claimed made a speech that the fundamental nature of war has changed.

(Gerasimov doctrine is the idea that) you don’t need to win military skirmishes to take over central and eastern Europe. All you need to do is control the media and the social media ecosystem because that’s what controls elections. And if you simply get the right administration into power, they control the military. So it’s infinitely cheaper than conducting a military war to simply conduct an organized political influence operation over social media and legacy mediaAn industry had been created that spanned the Pentagon, the British Ministry of Defense and Brussels into a organized political warfare outfit, essentially infrastructure that was created initially stationed in Germany and in Central and eastern Europe to create psychological buffer zones, basically to create the ability to have the military work with the social media companies to censor Russian propaganda and then to censor domestic, right-wing populist groups in Europe who were rising in political power at the time because of the migrant crisis.

So you had the systematic targeting by our state department, by our intelligence community, by the Pentagon of groups like Germany’s AFD, the alternative for Deutsche Land there and for groups in Estonia, Latvia, Lithuania. Now, when Brexit happened in 2016, that was this crisis moment where suddenly they didn’t have to worry just about central and eastern Europe anymore. It was coming westward, this idea of Russian control over hearts and minds. And so Brexit was June, 2016. The very next month at the Warsaw Conference, NATO formally amended its charter to expressly commit to hybrid warfare as this new NATO capacity. So they went from basically 70 years of tanks to this explicit capacity building for censoring tweets if they were deemed to be Russian proxies. And again, it’s not just Russian propaganda this, these were now Brexit groups or groups like Mateo Salvini in Italy or in Greece or in Germany or in Spain with the Vox Party.

And now at the time NATO was publishing white papers saying that the biggest threat NATO faces is not actually a military invasion from Russia. It’s losing domestic elections across Europe to all these right-wing populace groups who, because they were mostly working class movements, were campaigning on cheap Russian energy at a time when the US was pressuring this energy diversification policy. And so they made the argument after Brexit, now the entire rules-based international order would collapse unless the military took control over media because Brexit would give rise to Frexit in France with marine Lapin just Brexit in Spain with a Vox party to Italy exit in Italy, to Grexit in Germany, to Grexit in Greece, the EU would come apart, so NATO would be killed without a single bullet being fired. And then not only that, now that NATO’s gone, now there’s no enforcement arm for the International Monetary fund, the IMF or the World Bank. So now the financial stakeholders who depend on the battering ram of the national security state would basically be helpless against governments around the world. So from their perspective, if the military did not begin to censor the internet, all of the democratic institutions and infrastructure that gave rise to the modern world after World War II would collapse. So you can imagine the reaction,

Tucker Carlson:

Wait, ask

Mike Benz:      

Later. Donald Trump won the 2016 election. So

Tucker Carlson:

Well, you just told a remarkable story that I’ve never heard anybody explain as lucidly and crisply as you just did. But did anyone at NATO or anyone at the State Department pause for a moment and say, wait a second, we’ve just identified our new enemy as democracy within our own countries. I think that’s what you’re saying. They feared that the people, the citizens of their own countries would get their way, and they went to war against that.

Mike Benz:      

Yes. Now there’s a rich history of this dating back to the Cold War. The Cold War in Europe was essentially a similar struggle for hearts and minds of people, especially in central and Eastern Europe in these sort of Soviet buffer zones. And starting in 1948, the national security state was really established. Then you had the 1947 Act, which established the Central Intelligence Agency. You had this world order that had been created with all these international institutions, and you had the 1948 UN Declaration on human rights, which forbid the territorial acquisition by military force. So you can no longer run a traditional military occupation government in the way that we could in 1898, for example, when we took the Philippines, everything had to be done through a sort of political legitimization process whereby there’s some ratification from the hearts and minds of people within the country.  

Now, often that involves simply puppet politicians who are groomed as emerging leaders by our State Department. But the battle for hearts and minds had been something that we had been giving ourselves a long moral license leash, if you will, since 1948. One of the godfathers of the CIA was George Kennan. So, 12 days after we rigged the Italian election in 1948 by stuffing ballot boxes and working with the mob, we published a memo called the Inauguration of organized political warfare where Kennan said, “listen, it’s a mean old world out there. We at the CIA just rigged the Italian election. We had to do it because if the Communist won, maybe there’d never be another election in Italy again, but it’s really effective, guys. We need a department of dirty tricks to be able to do this around the world. And this is essentially a new social contract we’re constructing with the American people because this is not the way we’ve conducted diplomacy before, but we are now forbidden from using the war department in 1948.”

They also renamed the war department to the Defense Department. So again, as part of this diplomatic onslaught for political control, rather than it looking like it’s overt military control, but essentially what ended up happening there is we created this foreign domestic firewall. We said that we have a department of dirty tricks to be able to rig elections, to be able to control media, to be able to meddle in the internal affairs of every other plot of dirt in the country.

But this sort of sacred dirt in which the American homeland sits, they are not allowed to operate there. The State Department, the Defense Department, and the CIA are all expressly forbidden from operating on US soil. Of course, this is so far from the case, it’s not even funny, but that’s because of a number of laundering tricks that they’ve developed over 70 years of doing this.

But essentially there was no moral quandary at first with respect to the creation of the censorship industry. When it started out in Germany and in Lithuania and Latvia and Estonia and in Sweden and Finland, there began to be a more diplomatic debate about it after Brexit, and then it became full throttle when Trump was elected. And what little resistance there was was washed over by the rise in saturation of Russiagate, which basically allowed them to not have to deal with the moral ambiguities of censoring your own people.

Because if Trump was a Russian asset, you no longer really had a traditional free speech issue. It was a national security issue. It was only after Russiagate died in July, 2019 when Robert Mueller basically choked on the stand for three hours and revealed he had absolutely nothing. After two and a half years of investigation that the foreign to domestic switcheroo took place where they took all of this censorship architecture, spanning DHS, the FBI, the CIA, the DOD, the DOJ, and then the thousands of government funded NGO and private sector mercenary firms were all basically transited from a foreign predicate, a Russian disinformation predicate to a democracy predicate by saying that disinformation is not just a threat when it comes from the Russians, it’s actually an intrinsic threat to democracy itself.

And so by that, they were able to launder the entire democracy promotion regime change toolkit just in time for the 2020 election.

Tucker Carlson:

I mean, it’s almost beyond belief that this has happened. I mean, my own father worked for the US government in this business in the information war against the Soviet Union and was a big part of that. And the idea that any of those tools would be turned against American citizens by the US government, I think I want to think was absolutely unthinkable in say 1988. And you’re saying that there really hasn’t been anyone who’s raised objections and it’s absolutely turned inward to manipulate and rig our own elections as we would in say Latvia.

Mike Benz:      

Yeah. Well, as soon as the democracy predicate was established, you had this professional class of professional regime change artists and operatives that is the same people who argued that we need to bring democracy to Yugoslavia, and that’s the predicate for getting rid of Milošević or any other country around the world where we basically overthrow governments in order to preserve democracy. Well, if the democracy threat is homegrown now, then that becomes, then suddenly these people all have new jobs moving on the US side, and I can go through a million examples of that. But one thing on what you just mentioned, which is that from their perspective, they just weren’t ready for the internet. 2016 was really the first time that social media had reached such maturity that it began to eclipse legacy media. I mean, this was a long time coming. I think folks saw this building from 2006 through 2016.

Internet 1.0 didn’t even have social media from 1991 to 2004, there was no social media at all. 2004, Facebook came out 2005, Twitter, 2006, YouTube 2007, the smartphone. And in that initial period of social media, nobody was getting subscriber ships at the level where they actually competed with legacy news media. But over the course of being so initially even these dissonant voices within the us, even though they may have been loud in moments, they never reached 30 million followers. They never reached a billion impressions a year type thing. As a uncensored mature ecosystem allowed citizen journalists and independent voices to be able to outcompete legacy news media. This induced a massive crisis both in our military and in our state department in intelligence services. I’ll give you a great example of this in 2019 at meeting of the German Marshall Fund, which is an institution that goes back to the US basically, I don’t want to say bribe, but essentially the soft power economic soft power projection in Europe as part of the reconstruction of European governments after World War ii, to be able to essentially pay them with Marshall Fund dollars and then in return, they basically were under our thumb in terms of how they reconstructed.

But the German Marshall Fund held a meeting in 2019. They held a million of these, frankly, but this was when a four star general got up on the panel and posed the question, what happens to the US military? What happens to the national security state when the New York Times is reduced to a medium sized Facebook page? And he posed this thought experiment as an example of we’ve had these gatekeepers, we’ve had these bumper cars on democracy in the form a century old relationship with legacy media institutions. I mean, our mainstream media is not in any shape or form even from its outset, independent from the national security state, from the state Department, from the war department, you had the initial, all of the initial broadcast news companies, NBC, ABC and CBS were all created by Office of War Information Veterans from the War department’s effort in World War ii.

You had these Operation Mockingbird relationships from the 1950s through the 1970s. Those continued through the use of the National Endowment for Democracy and the privatization of intelligence capacities in the 1980s under Reagan. There’s all sorts of CIA reading room memos you can read even on cia.gov about those continued media relations throughout the 1990s. And so you always had this backdoor relationship between the Washington Post, the New York Times, and all of the major broadcast media corporations. By the way, Rupert Murdoch and Fox are part of this as well. Rupert Murdoch was actually part of the National Endowment for Democracy Coalition in 1983 when it was as a way to do CIA operations in an aboveboard way after the Democrats were so ticked off at the CIA for manipulating student movements in the 1970s. But essentially there was no CIA intermediary to random citizen journalist accounts. There was no Pentagon backstop.

You couldn’t get a story killed. You couldn’t have this favors for favors relationship. You couldn’t promise access to some random person with 700,000 followers who’s got an opinion on Syrian gas. And so this induced, and this was not a problem for the initial period of social media from 2006 to 2014 because there were never dissident groups that were big enough to be able to have a mature enough ecosystem on their own. And all of the victories on social media had gone in the way of where the money was, which was from the State Department and the Defense Department and the intelligence services. But then as that maturity happened, you now had this situation after the 2016 election where they said, okay, now the entire international order might come undone. 70 years of unified foreign policy from Truman until Trump are now about to be broken.

And we need the same analog control systems. We had to be able to put bumper cars on bad stories or bad political movements through legacy media relationships and contacts we now need to establish and consolidate within the social media companies. And the initial predicate for that was Russiagate. But then after Russiagate died and they used a simple democracy promotion predicate, then it gave rise to this multi-billion dollar censorship industry that joins together the military industrial complex, the government, the private sector, the civil society organizations, and then this vast cobweb of media allies and professional fact checker groups that serve as this sort of sentinel class that surveys every word on the internet.

Tucker Carlson:

Thank you again for this almost unbelievable explanation of why this is happening. Can you give us an example of how it happens and just pick one among, I know countless examples of how the national security state lies to the population, censors the truth in real life.

Mike Benz:      

Yeah, so we have this state department outfit called the Global Engagement Center, which was created by a guy named Rick Stengel who described himself as Obama’s propaganda in chief. He was the undersecretary for public affairs essentially, which is the liaison office role between the state department and the mainstream media. So this is basically the exact nexus where government talking points about war or about diplomacy or statecraft get synchronized with mainstream media.

Tucker Carlson:

May I add something to that as someone I know – Rick Stengel. He was at one point a journalist and Rick Stengel has made public arguments against the First Amendment and against Free Speech.

Mike Benz:      

Yeah, he wrote a whole book on it and he published an op-Ed in 2019. He wrote a whole book on it and he made the argument that we just went over here that essentially the Constitution was not prepared for the internet and we need to get rid of the First Amendment accordingly. And he described himself as a free speech absolutist when he was the managing editor of Time Magazine. And even when he was in the State Department under Obama, he started something called the Global Engagement Center, which was the first government censorship operation within the federal government, but it was foreign facing, so it was okay. Now, at the time, they used the homegrown ISIS predicate threat for this. And so it was very hard to argue against the idea of the State Department having this formal coordination partnership with every major tech platform in the US because at the time there were these ISIS attacks that were, and we were told that ISIS was recruiting on Twitter and Facebook.

And so the Global Engagement Center was established essentially to be a state department entanglement with the social media companies to basically put bumper cars on their ability to platform accounts. And one of the things they did is they created a new technology, which it’s called Natural Language processing. It is a artificial intelligence machine learning ability to create meaning out of words in order to map everything that everyone says on the internet and create this vast topography of how communities are organized online, who the major influences are, what they’re talking about, what narratives are emerging or trending, and to be able to create this sort of network graph in order to know who to target and how information moves through an ecosystem. And so they began plotting the language, the prefixes, the suffixes, the popular terms, the slogans that ISIS folks were talking about on Twitter.

When Trump won the election in 2016, everyone who worked at the State Department was expecting these promotions to the White House National Security Council under Hillary Clinton, who I should remind viewers was also Secretary of State under Obama, actually ran the State Department. But these folks were all expecting promotions on November 8th, 2016 and were unceremoniously put out of jobs by a guy who was a 20 to one underdog according to the New York Times the day of the election. And when that happened, these State Department folks took their special set of skills, coercing governments for sanctions. The State Department led the effort to sanction Russia over the Crimea annexation. In 2014, these State Department diplomats did an international roadshow to pressure European governments to pass censorship laws to censor the right-wing populous groups in Europe and as a boomerang impact to censor populace groups who were affiliated in the us.

So you had folks who went from the state department directly, for example, to the Atlanta Council, which was this major facilitator between government to government censorship. The Atlanta Council is a group that is one of Biden’s biggest political backers. They bill themselves as NATO’s Think Tank. So they represent the political census of NATO. And in many respects, when NATO has civil society actions that they want to be coordinated to synchronize with military action or region, the Atlantic Council essentially is deployed to consensus build and make that political action happen within a region of interest to nato.

Now, the Atlantic Council has seven CIA directors on its board. A lot of people don’t even know that seven CIA directors are still alive, let alone all concentrated on the board of a single organization that’s kind of the heavyweight in the censorship industry. They get annual funding from the Department of Defense, the State Department, and CIA cutouts like the National Endowment for Democracy.

The Atlantic Council in January, 2017 moved immediately to pressure European governments to pass censorship laws to create a transatlantic flank tank on free speech in exactly the way that Rick Stengel essentially called for to have us mimic European censorship laws. One of the ways they did this was by getting Germany to pass something called Nets DG in August, 2017, which was essentially kicked off the era of automated censorship in the us. What Nets DG required was, unless social media platforms wanted to pay a $54 million fine for each instance of speech, each post left up on their platform for more than 48 hours that had been identified as hate speech, they would be fined basically into bankruptcy when you aggregate 54 million over tens of thousands of posts per day. And the safe haven around that was if they deployed artificial intelligence based censorship technologies, which had been again created by DARPA to take on ISIS to be able to scan and ban speech automatically.

And this gave rise to what I call these weapons of mass deletion. These are essentially the ability to sensor tens of millions of posts with just a few lines of code. And the way this is done is by aggregating basically the field of censorship science fuses together two disparate groups of study, if you will. There’s the sort of political and social scientists who are the sort of thought leaders of what should be censored, and then there are the sort of quants, if you will. These are the programmers, the computational data scientists, computational Linguistics University.

There’s over 60 universities now who get federal government grants to do the censorship work and the censorship preparation work where what they do is they create these code books of the language that people use the same way they did for isis. They did this, for example, with COVID. They created these COVID lexicons of what dissident groups were saying about mandates, about masks, about vaccines, about high profile individuals like Tony Fauci or Peter Daszak or any of these protected VIPs and individuals whose reputations had to be protected online.

And they created these code books, they broke things down into narratives. The Atlanta Council, for example, was a part of this government funded consortium, something called the Virality Project, which mapped 66 different narratives that dissidents we’re talking about around covid, everything from COVID origins to vaccine efficacy. And then they broke down these 66 claims into all the different factual sub claims. And then they plugged these into these essentially machine learning models to be able to have a constant world heat map of what everybody was saying about covid. And whenever something started trend that was bad for what the Pentagon wanted or was bad for what Tony Fauci wanted, they were able to take down tens of millions of posts. They did this in the 2020 election with mail-in ballots. It was the same. Wait,

Tucker Carlson:

There’s so much here and it’s so shocking. So you’re saying the Pentagon, our Pentagon, the US Department of Defense censored Americans during the 2020 election cycle?

Mike Benz:      

Yes, they did this through the, so the two most censored events in human history, I would argue to date are the 2020 election and the COVID-19 pandemic, and I’ll explain how I arrived there.

So the 2020 election was determined by mail-in ballots, and I’m not weighing into the substance of whether mail-in ballots were or were not a legitimate or safe and reliable form of voting. That’s a completely independent topic from my perspective.

Then the censorship issue one, but the censorship of mail-in ballots is really one of the most extraordinary stories in our American history. I would argue what happened was is you had this plot within the Department of Homeland Security. Now this gets back to what we were talking about with the State Department’s Global Engagement Center. You had this group within the Atlanta Council and the Foreign Policy Establishment, which began arguing in 2017 for the need for a permanent domestic censorship government office to serve as a quarterback for what they called a whole of society counter misinformation, counter disinformation alliance.

That just means censorship. To counter “miss-dis-info”. But their whole society model explicitly proposed that we need every single asset within society to be mobilized in a whole of society effort to stop misinformation online. It was that much of an existential threat to democracy, but they fixated in 2017 that it had to be centered within the government because only the government would have the clout and the coercive threat powers and the perceived authority to be able to tell the social media companies what to do to be able to summon a government funded NGO Swarm to create that media surround sound to be able to arm an AstroTurf army of fact checkers and to be able to liaise and connect all these different censorship industry actors into a cohesive unified hole. And the Atlantic Council initially proposed with this blueprint called Forward defense. “It’s not offense, it’s Forward Defense” guys.

They initially proposed that running this out of the State Department’s Global Engagement Center because they had so many assets there who were so effective at censorship under Rick Stengel, under the Obama administration. But they said, oh, we are not going to be able to get away with that. We don’t really have a national security predicate and it’s supposed to be foreign facing. We can’t really use that hook unless we have a sort of national security one. Then they contemplated parking it, the CIA, and they said, well, actually there’s two reasons we can’t do that. The is a foreign facing organization and we can’t really establish a counterintelligence threat to bring it home domestically. Also, we’re going to need essentially tens of thousands of people involved in this operation spanning this whole society model, and you can’t really run a clandestine operation that way. So they said, okay, well what about the FBI?

They said, well, the FBI would be great, it’s domestic, but the problem is is the FBI is supposed to be the intelligence arm of the Justice Department. And what we’re dealing with here are not acts of law breaking, it’s basically support for Trump. Or if a left winging popularist had risen to power like Bernie Sanders or Jeremy Corbin, I have no doubt they would’ve done in the UK. They would’ve done the same thing to him there. They targeted Jeremy Corbin and other left-wing populist NATO skeptical groups in Europe, but in the US it was all Trump.

And so essentially what they said is, well, the only other domestic intelligence equity we have in the US besides the FBI is the DHS. So we are going to essentially take the CIA’s power to rig and bribe foreign media organizations, which is the power they’ve had since the day they were born in 1947. And we’re going to combine that with the power with the domestic jurisdiction of the FBI by putting it at DHS. So DHS was basically deputized. It was empowered through this obscure little cybersecurity agency to have the combined powers that the CIA has abroad with the jurisdiction of the FBI at home. And the way they did this, how did a cyber, an obscure little cybersecurity agency get this power was they did a funny little series of switcheroos. So this little thing called CISA, they didn’t call it the Disinformation Governance Board. They didn’t call it the Censorship Agency. They gave it an obscure little name that no one would notice called the Cybersecurity and Infrastructure Security Agency (CISA) who his founder said, we care about security so much, it’s in our name twice. Everybody sort of closed their eyes and pretended that’s what it was. CISA was created by Active Congress in 2018 because of the perceived threat that Russia had hacked the 2016 election.

And so we needed the cybersecurity power to be able to deal with that. And essentially on the heels of a CIA memo on January 6th, 2017 and a same day DHS executive order on January 6th, 2017, arguing that Russia had interfered in the 2016 election and a DHS mandate saying that elections are now critical infrastructure, you had this new power within DHS to say that cybersecurity attacks on elections are now our purview. And then they did two cute things. One they said said, miss dis and Malformation online are a form of cybersecurity attack. They are a cyber attack because they are happening online. And they said, well, actually Russian disinformation is we’re actually protecting democracy and elections. We don’t need a Russian predicate after Russiagate died. So just like that, you had this cybersecurity agency be able to legally make the argument that your tweets about mail-in ballots if you undermine public faith and confidence in them as a legitimate form of voting was now you were now conducting a cyber attack on US critical infrastructure articulating misinformation on Twitter and just like that.

Tucker Carlson:

Wait- in other words, complaining about election fraud is the same as taking down our power grid.

Mike Benz:      

Yes, you could literally be on your toilet seat at nine 30 on a Thursday night and tweet, I think that mail-in ballots are illegitimate. And you were essentially then caught up in the crosshairs of the Department of Homeland Security classifying you as conducting a cyber attack on US critical infrastructure because you were doing misinformation online in the cyber realm. And misinformation is a cyber attack on democracy when it undermines public faith and confidence in our democratic elections and our democratic institutions, they would end up going far beyond that. They would actually define democratic institutions as being another thing that was a cybersecurity attack to undermine and lo and behold, the mainstream media is considered a democratic institution that would come later. What ended up happening was in the advance of the 2020 election, starting in April of 2020, although this goes back before you had this essentially never Trump NeoCon Republican DHS working with essentially NATO on the national security side and essentially the DNC, if you will, to use DHS as the launching point for a government coordinated mass censorship campaign spanning every single social media platform on earth in order to preens the ability to dispute the legitimacy of mail-in ballots.

And here’s how they did this. They aggregated four different institutions. Stanford University, the University of Washington, a company called Graphica and the Atlantic Council. Now all four of these institutions, the centers within them were essentially Pentagon cutouts you had at the Stanford Air Observatory. It was actually run by Michael McFaul, if you know Michael McFaul. He was the US ambassador to Russia under the Obama administration, and he personally authored a seven step playbook for how to successfully orchestrate a color revolution. And part of that involved maintaining total control over media and social media juicing up the civil society outfits, calling elections illegitimate in order to. Now, mind you, all of these people were professional Russia, Gators and professional election delegitimizes in 2016, and then I’ll get that in a sec. So Stanford, the Stanford Observatory under Michael McFaul was run by Alex Stamos, who was formerly a Facebook executive who coordinated with ODNI and with respect to Russiagate taking down Russian propaganda at Facebook.

So this is another liaison essentially to the national security state. And under Alex Stamos at Sanford Observatory was Renee Diresta, who started her career in the CIA and wrote the Senate Intelligence Committee report on Russian disinformation, and there’s a lot more there that I’ll get to another time. But the next institution was the University of Washington, which is essentially the Bill Gates University in Seattle who is headed by Kate Starboard, who is basically three generations of military brass who got our PhD in crisis informatics, essentially doing social media surveillance for the Pentagon and getting DARPA funding and working essentially with the national security state, then repurposed to take on mail-in ballots. The third firm Graphica got $7 million in Pentagon grants and got their start as part of the Pentagon’s Minerva initiative. The Minerva Initiative is the Psychological Warfare Research Center of the Pentagon. This group was doing social media spying and narrative mapping for the Pentagon until the 2016 election happened, and then were repurposed into a partnership with the Department of Homeland Security to censor 22 million Trump tweets, pro-Trump tweets about mail-in ballots.

And then the fourth institution, as I mentioned, was the Atlantic Council who’s got seven CIA directors on the board, so one after another. It is exactly what Ben Rhodes described during the Obama era as the blob, the Foreign Policy Establishment, it’s the Defense Department, the State Department or the CIA every single time. And of course this was because they were threatened by Trump’s foreign policy, and so while much of the censorship looks like it’s coming domestically, it’s actually by our foreign facing department of Dirty tricks, color revolution blob, who were professional government toppers who were then basically descended on the 2020 election.

Now they did this, they explicitly said the head of this election integrity partnership on tape and my foundation clipped them, and it’s been played before Congress and it’s a part of the Missouri Biden lawsuit now, but they explicitly said on tape that they were set up to do what the government was banned from doing itself, and then they articulated a multi-step framework in order to coerce all the tech companies to take censorship actions.

They said on tape that the tech companies would not have done it but for the pressure, which involved using threats of government force because they were the deputized arm of the government. They had a formal partnership with the DHS. They were able to use DHS’ proprietary domestic disinformation switchboard to immediately talk to top brass at all the tech companies for takedowns, and they bragged on tape about how they got the tech companies to all systematically adopt a new terms of service speech violation ban called delegitimization, which meant any tweet, any YouTube video, any Facebook post, any TikTok video, any discord posts, any Twitch video, anything on the internet that undermine public faith and confidence in the use of mail-in ballots or early voting drop boxes or ballot tabulation issues on election day was a prima fascia terms of service violation policy under this new delegitimization policy that they only adopted because of pass through government pressure from the election integrity partnership, which they bragged about on tape, including the grid that they used to do this, and simultaneously invoking threats of government breaking them up or government stopping doing favors for the tech companies unless they did this as well as inducing crisis PR by working with their media allies.

And they said DHS could not do that themselves. And so they set up this basically constellation of State Department, Pentagon and IC networks to run this censorship campaign, which by their own math had 22 million tweets on Twitter alone, and mind you, they just on 15 platforms, this is hundreds of millions of posts which were all scanned and banned or throttled so that they could not be amplified or they exist in a sort of limited state purgatory or had these frictions affixed to them in the form of fact-checking labels where you couldn’t actually click through the thing or you had to, it was an inconvenience to be able to share it. Now, they did this seven months before the election because at the time they were worried about the perceived legitimacy of a Biden victory in the case of a so-called Red Mirage Blue Shift event.

They knew the only way that Biden would win mathematically was through the disproportionate Democrat use of mail-in ballots. They knew there would be a crisis because it was going to look extremely weird if Trump looked like he won by seven states and then three days later it comes out actually the election switch, I mean that would put the election crisis of the Bush Gore election on a level of steroids that the National Security state said, well, the public will not be prepared for. So what we need to do is we need to in advance, we need to preens the ability to even question legitimacy.

Tucker Carlson:

Out, wait, wait, may I ask you to pause right there? Key influences by, so what you’re saying is what you’re suggesting is they knew the outcome of the election seven months before it was held.

Mike Benz:      

It looks very bad.

Tucker Carlson:

Yes, Mike. It does look very bad

Mike Benz:      

And especially when you combine this with the fact that this is right on the heels of the impeachment. The Pentagon led and the CIA led impeachment. It was Eric ? from the CIA, and it was Vindman from the Pentagon who led the impeachment of Trump in late 2019 over an alleged phone call around withholding Ukraine aid. This same network, which came straight out of the Pentagon hybrid warfare military censorship network, created after the first Ukraine crisis in 2014 were the lead architects of the Ukraine impeachment in 2019, and then essentially came back on steroids as part of the 2020 election censorship operation. But from their perspective, I mean it certainly looks like the perfect crime. These were the people. DHS at the time had actually federalized much of the National Election Administration through this January 6th, 2017 executive order from outgoing Obama. DHS had Jed Johnson, which essentially wrapped all 50 states up into a formal DHS partnership. So DHS was simultaneously in charge of the administration of the election in many respects, and the censorship of anyone who challenged the administration of the election. This is like putting essentially the defendant of a trial as the judge and jury of the trial. It was

Tucker Carlson:

Very, but you’re not describing democracy. I mean, you’re describing a country in which democracy is impossible.

Mike Benz:      

What I’m essentially describing is military rule. I mean, what’s happened with the rise of the censorship industry is a total inversion of the idea of democracy itself. Democracy sort draws its legitimacy from the idea that it is ruled by consent of the people being ruled. That is, it’s not really being ruled by an overlord because the government is actually just our will expressed by our consent with who we vote for. The whole push after the 2016 election and after Brexit and after a couple of other social media run elections that went the wrong way from what the State Department wanted, like the 2016 Philippines election, was to completely invert everything that we described as being the underpinnings of a democratic society in order to deal with the threat of free speech on the internet. And what they essentially said is, we need to redefine democracy from being about the will of the voters to being about the sanctity of democratic institutions and who are the democratic institutions?

Oh, it’s the military, it’s NATO, it’s the IMF and the World Bank. It’s the mainstream media, it is the NGOs, and of course these NGOs are largely state department funded or IC funded. It’s essentially all of the elite establishments that were under threat from the rise of domestic populism that declared their own consensus to be the new definition of democracy. Because if you define democracy as being the strength of democratic institutions rather than a focus on the will of the voters, then what you’re left with is essentially democracy is just the consensus building architecture within the Democrat institutions themselves. And from their perspective, that takes a lot of work. I mean, the amount of work these people do. I mean, for example, we mentioned the Atlantic Council, which is one of these big coordinating mechanisms for the oil and gas industry in a region for the finance and the JP Morgans and the BlackRocks in a region for the NGOs in the region, for the media, in the region, all of these need to reach a consensus, and that process takes a lot of time, it takes a lot of work and a lot of negotiation from their perspective.

That’s democracy. Democracy is getting the NGOs to agree with BlackRock, to agree with the Wall Street Journal, to agree with the community and activist groups who are onboarded with respect to a particular initiative that is the difficult vote building process from their perspective.

At the end of the day, a bunch of populous groups decide that they like a truck driver who’s popular on TikTok more than the carefully constructed consensus of the NATO military brass. Well then from their perspective, that is now an attack on democracy, and this is what this whole branding effort was. And of course, democracy again has that magic regime change predicate where democracy is our magic watchword to be able to overthrow governments from the ground up in a sort of color revolution style whole of society effort to topple a democratically elected government from the inside, for example, as we did in Ukraine, Victor Jankovich was democratically elected by the Ukrainian people like him or hate him.

I’m not even issuing an opinion, but the fact is we color revolution him out of office. We January 6th out of office, actually, to be frank, I mean with respect to the, you had a state department funded right sector thugs and 5 billion worth of civil society money pumped into this to overthrow democratically elected government in the name of democracy, and they took that special set of skills home and now it’s here, perhaps potentially to stay. And this has fundamentally changed the nature of American governance because of the threat of one small voice becoming popular on social media.

Tucker Carlson:

May I ask you a question? So into that group of institutions that you say now define democracy, the NGOs foreign policy establishment, et cetera, you included the mainstream media. Now in 2021, the NSA broke into my private text apps and read them and then leaked them to the New York Times against me. That just happened again to me last week, and I’m wondering how common that is for the Intel agencies to work with so-called mainstream media like the New York Times to hurt their opponents.

Mike Benz:      

Well, that is the function of these interstitial government funded non-governmental organizations and think tanks like for example, we mentioned the Atlantic Council, which is NATO’s think tank, but other groups like the Aspen Institute, which draws the lion’s share of its funding from the State department and other government agencies. The Aspen Institute was busted doing the same thing with the Hunter Biden laptop censorship. You had this strange situation where the FBI had advanced knowledge of the pending publication of the Hunter Biden laptop story, and then magically the Aspen Institute, which is run by essentially former CIA, former NSA, former FBI, and then a bunch of civil society organizations all hold a mass stakeholder censorship simulation, a three day conference, this came out and yo Roth was there. This is a big part of the Twitter file leaks, and it’s been mentioned in multiple congressional investigations.

But somehow the Aspen Institute, which is basically an addendum of the National Security state, got the exact same information that the National Security State spied on journalists and political figures to obtain, and not only leaked it, but then basically did a joint coordinated censorship simulator in September, two months before the election in order just like with the censorship of mail-in ballots to be in ready position to screens anyone online amplifying, wait a second, a news story that had not even broken yet.

Tucker Carlson:

The Aspen Institute, which is by the way, I’ve spent my life in Washington. It’s kind a, I mean Walter Isaacson formerly of Time Magazine ran it, former president of CNNI had no idea it was part of the national security state. I had no idea its funding came from the US government. This is the first time I’ve ever heard that. But given, assuming what you’re saying is true, it’s a little weird or starnge that Walter Isaacson left Aspens to write a biography of Elon Musk?

Mike Benz:      

No? Yeah, I don’t know. I haven’t read that book. From what I’ve heard from people, it’s a relatively fair treatment. I just total speculation. But I suspect that Walter Isaacson has struggled with this issue and may not even firmly fall in one particular place in the sense that Walter Isaacson did a series of interviews of Rick Gel actually with the Atlantic Council and in other settings where he interviewed Rick Gel specifically on the issue of the need to get rid of the First Amendment and the threat that free speech on social media poses to democracy. Now, at the time, I was very concerned, this was between 2017 and 2019 when he did these Rick Stangle interviews. I was very concerned because Isaacson expressed what seemed to me to be a highly sympathetic view about the Rick Stengel perspective on killing the First Amendment. Now, he didn’t formally endorse that position, but it left me very skittish about Isaacson.

But what I should say is at the time, I don’t think very many people, in fact, I know virtually nobody in the country had any idea how deep the rabbit hole went when it came to the construction of the censorship industry and how deep the tentacles had grown within the military and the national security state in order to buoy and consolidate it. Much of that frankly did not even come to public light until even last year. Frankly, some of that was galvanized by Elon Musk’s acquisition and the Twitter files and the Republican turnover in the house that allowed these multiple investigations, the lawsuits like Missouri v Biden and the discovery process there and multiple other things like the Disinformation governance board, who, by the way, the interim head of that, the head of that Nina Janowitz got her start in the censorship industry from this exact same clandestine intelligence community censorship network created after the 2014 Crimea situation.

Nina Janowitz, when her name came up in 2022 as part of the disinformation governance board, I almost fell out of my chair because I had been tracking Nina’s network for almost five years at that point when her name came up as part of the UK inner cluster cell of a busted clandestine operation to censor of the internet called the Integrity Initiative, which was created by the UK Foreign Office and was backed by NATO’s Political Affairs Unit in order to carry out this thing that we talked about at the beginning of this dialogue, the NATO sort of psychological inoculation and the ability to kill, so-called Russian propaganda or rising political groups who wanted to maintain energy relations with Russia at a time when the US was trying to kill the Nord Stream and other pipeline relations. Well,

Well, Nina Janowitz was a part of this outfit, and then who was the head of it after Nina Janowitz went down, it was Michael Chertoff and Michael Chertoff was running the Aspen Institute Cyber Group. And then the Aspen Institute then goes on to be the censorship simulator for the Hunter Biden laptop story. And then two years later, Chertoff is then the head of the disinformation governance board after Nina is forced to step down.

Tucker Carlson:

Tucker Carlson: Of course, Michael Chertoff was the chairman of the largest military contractor in Europe, BAE military. So it’s all connected. You’ve blown my mind so many times in this conversation that I’m going to need a nap directly after it’s done. So I’ve just got two more questions for you, one short one, a little longer short. One is for people who’ve made it this far an hour in and want to know more about this topic. And by the way, I hope you’ll come back whenever you have the time to explore different threads of this story. But for people who want to do research on their own, how can your research on this be found on the internet?

Mike Benz:      

Sure. So our foundation is foundation for freedom online.com. We publish all manner of reports on every aspect of the censorship industry from what we talked about with the role of the military industrial complex and the national security state to what the universities are doing to, I sometimes refer to as digital MK Ultra. There’s just the field of basically the science of censorship and the funding of these psychological manipulation methods in order to nudge people into different belief systems as they did with covid, as they did with energy. And every sensitive policy issue is what they essentially had an ambition for. But so my foundationforfreedomonline.com website is one way. The other way is just on X. My handle is at @MikeBenzCyber. I’m very active there and publish a lot of long form video and written content on all this. I think it’s one of the most important issues in the world today.

Tucker Carlson:

So it certainly is. And so that leads directly and seamlessly to my final question, which is about X. And I’m not just saying this because I post content there, but I think objectively it’s the last big platform that’s free or sort of free or more free. You post there too, but we’re at the very beginning of an election year with a couple of different wars unfolding simultaneously in 2024. So do you expect that that platform can stay free for the duration of this year?

Mike Benz:      

It’s under an extraordinary amount of pressure, and that pressure is going to continue to mount as the election approaches. Elon Musk is a very unique individual, and he has a unique buffer, perhaps when it comes to the national security state because the national security state is actually quite reliant on Elon Musk properties, whether that’s for the electrical, the Green Revolution when it comes to Tesla and the battery technology there. When it comes to SpaceX, the State Department is hugely dependent on SpaceX because of its unbelievable sort of pioneering and saturating presence in the field of low earth orbit satellites that are basically how our telecom system runs to things like starlink. There are dependencies that the National Security state has on Elon Musk. I’m not sure he’d have as much room to negotiate if he had become the world’s richest man selling at a lemonade stand, and if the national security state goes too hard on him by invoking something like CFIUS to sort of nationalize some of these properties.

I think the shock wave that it would send to the international investor community would be irrecoverable at a time when we’re engaged in great power competition. So they’re trying to sort of induce, I think a sort of corporate regime change through a series of things involving a sort of death by a thousand paper cuts. I think there’s seven or eight different Justice Department or SEC or FTC investigations into Elon Musk properties that all started after his acquisition of X. But then what they’re trying to do right now is what I call the Transatlantic Flank Attack 2.0. We talked in this dialogue about how the censorship industry really got its start when a bunch of State Department exiles who were expecting promotions took their special set of skills in coercing European countries to pass sanctions on themselves, to cut off their own leg off to spite themselves in order to pass sanctions on Russia.   

They ran back that same playbook with doing a roadshow for censorship instead for sanctions. We are now witnessing Transatlantic Flank attack 2.0, if you will, which is because they have lost a lot of their federal government powers to do this same censorship operation they had been doing from 2018 to 2022. In part because the house has totally turned on them, in part because of the media, in part because Missouri v Biden, which won a slam dunk case, actually banning government censorship at the trial court and appellate court levels. It is now before the Supreme Court, they’ve now moved into two strategies.

One of them is state level censorship laws. California just passed a new law, which the censorship industry totally drove from start to finish around, they call it platform accountability and transparency, which is basically forcing Elon Musk to give over the kind of narrative mapping data that these CIA conduits and Pentagon cutouts were using to create these weapons of mass deletion, these abilities to just censor everything at scale because they had all the internal platform data. Elon Musk took that away.

They’re using state laws like this new California law to crack that open. But the major threat right now is the threat from Europe with something called the EU Digital Services Act, which was cooked up in tandem with folks like NewsGuard, which has a board of Michael Hayden, head of the CIA NSA and a Fourstar General. Rick Stengel is on that board from the state department’s propaganda office. Tom Ridge is on that board from the Department of Homeland Security. Oh, and Anders Fogh Rasmussen – he was the general secretary of NATO under the Obama administration. So you have NATO, the CIA, the NSA four star General DHS, and the State Department working with the EU to craft the censorship laws that now are the largest existential threat to X other than potentially advertiser boycotts. Because there is now disinformation is now banned as a matter of law in the EU.  

The EU is a bigger market for X than the us. There’s only 300 million in the USA. But there is 450 million people in Europe. X is now forced to comply with this brand new law that just got ratified this year where they either need to forfeit 6% of their global annual revenue to the EU to maintain operations there, or put in place essentially the kind of CIA bumper cars, if you will, that I’ve been describing over the course of this in order to have a internal mechanism to sensor anything that the eu, which is just a proxy for NATO deems to be disinformation. And you can bet with 65 elections around the globe this year, you can predict every single time what they’re going to define disinformation as. So that’s the main fight right now is dealing with the transatlantic flank attack from Europe.

Tucker Carlson:

This is just one of the most remarkable stories I’ve ever heard, and I’m grateful to you for bringing it to us. Mike Benz, executive director of the Foundation for Freedom Online, and I hope we see you again in

Mike Benz:      

Thanks, Tucker.

Tucker Carlson:

Free speech is bigger than any one person or any one organization. Societies are defined by what they will not permit. What we’re watching is the total inversion of virtue.

*  *  *

Republished from the author’s Substack

Tyler Durden Fri, 03/08/2024 - 23:00

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