The UAW’s corporatist alliance with Trump

17 March 2017

On Wednesday, United Auto Workers (UAW) President Dennis Williams joined with President Donald Trump and the CEOs of the Big Three US automakers to promote a reactionary program of extreme economic nationalism, corporatism and war.

The event was a campaign-style speech by Trump before UAW bureaucrats and a section of workers bused in by the auto bosses to the decommissioned Willow Run auto plant in Ypsilanti, a suburb of Detroit.

Trump reprised the fascistic themes of his inaugural address, with a heavy emphasis on the unity of workers, employers and the state in defense of the “national interest” and in opposition to foreigners. “That is how we will succeed and grow together—American workers and American industry side by side,” the president declared. “Nobody can beat us, folks. Nobody can beat us. Because whether we are rich or poor, young or old, black or brown or white, we all bleed the same red blood of patriots.”

Trump, Dennis Williams and Ford CEO Mark Fields [Credit: Reuters]

As a matter of fact, during the Vietnam years, Trump was able to take advantage of the political connections of his millionaire father to stay out of the military and make sure that none of his “red blood” was spilled in an imperialist war that cost the lives of 58,000 Americans—mostly poor and working class—and upwards of 3 million Vietnamese.

Trump made explicit the warmongering essence of his corporatist ideology, which fraudulently claims that the corporations, the capitalist state and the working class have identical interests. He hailed as the model for today the united effort of the auto companies, the UAW and the state in producing the B-24 bomber at the now-closed plant during World War II.

“At peak production,” Trump said, “listen to this—it’s not the country that we’ve been watching over the last 20 years—they were building one B-24 every single hour. We don’t hear that. We don’t hear that anymore, do we?”

Alluding ominously to his plans for a massive military buildup, he continued, “We’ll be back. We’ll be back soon.”

The head of the UAW signaled his support for these policies by appearing on a panel with Trump and the auto bosses prior to the president’s speech. Williams was tellingly seated between the ultra-right-wing billionaire Trump and Ford CEO Mark Fields.

The UAW president declared his support for Trump’s trade war agenda against China and Mexico last month and announced that the UAW was reviving its “Buy American” campaign. “He’s the first president that has addressed this issue,” Williams said. “I have to give him kudos for that.”

AFL-CIO President Richard Trumka, who sits on Trump’s Manufacturing Jobs Initiative panel, promised to partner with Trump in promoting economic nationalism and attacking immigrant workers.

The UAW’s last “Buy American” campaign in the 1980s and 1990s included union officials banning Japanese- and European-built cars from union parking lots, bashing in the windshields of foreign-made cars, and whipping up such hatred that Vincent Chin, a Chinese-American worker in Detroit, was murdered by a Chrysler foreman.

The results of the UAW’s previous efforts to promote American nationalism can be seen in the closed factories and devastated former auto-producing cities across the Midwest. Under the corporatist banner of union-management “partnership,” the union collaborated with the companies in imposing plant closures, mass layoffs and wage cuts so as to promote the competitiveness of American automakers against their overseas competitors.

Wednesday’s event underscored a basic reality: The ultra-right-wing nationalist ideology of Trump and his chief strategist, ex-Breitbart News chief Stephen Bannon, is the ideology of the UAW, AFL-CIO and official unions as a whole. They are all seeking to divert the social anger of workers over deindustrialization, inequality and the ravaging of their living standards along the lines of xenophobia and militarism.

The unions, in lockstep with Bannon, insist on the necessity for national unity, so that American business can dominate its foreign rivals. This requires the suppression of the class struggle. The union leadership misdirects workers by promoting the lie that their problems are caused not by capitalism, but by immigrant workers and the theft of American wealth by foreign powers (and workers) benefiting from unfair trade policies.

This UAW’s embrace of corporatism is not a new development. It is the outcome of a protracted process that has extended over the course of many decades.

Leon Trotsky warned of the danger of the incorporation of the unions into the state at the very outset of the CIO in the late 1930s and early 1940s, just as the antisocialist bureaucratic leadership was tying the new industrial unions to President Franklin Roosevelt and the Democratic Party.

“The intensification of class contradictions within each country, the intensification of antagonisms between one country and another, produce a situation in which imperialist capitalism can tolerate (i.e., up to a certain time) a reformist bureaucracy only if the latter serves directly as a petty but active stockholder of its imperialist enterprises, of its plans and programs within the country as well as on the world arena,” Trotsky wrote in 1940.

During and after World War II, UAW President Walter Reuther played a particularly reactionary role in the anticommunist evolution of the union. He promoted and signed a no-strike pledge and guaranteed the union’s collaboration with the war effort in return for the dues checkoff and the institutionalization of the unions by the state. After the war, the union bureaucracy carried out a vicious purge of left-wing union militants while actively supporting US imperialism and the Cold War. The CIO’s merger with the AFL in 1955 established the defense of capitalism and imperialism as the official policy of the union.

The development of union corporatism accelerated along with the decline in the global economic position of American capitalism and the rise of European and Asian rivals to the Big Three auto companies. The establishment of a host of joint union-management bodies, along with various slush funds, was part of an effort to obliterate class consciousness and totally subordinate workers to the demands of the corporations and the government.

During the 1980s, every form of resistance was crushed with the collaboration of the unions. A major turning point was Ronald Reagan’s firing and blacklisting of the PATCO air traffic controllers in 1981, whose bitter strike was broken with the assistance of the AFL-CIO and UAW bureaucracies. PATCO was followed by a series of bitter and often violent strikes, including Phelps Dodge, Continental Airlines, Greyhound, Hormel and AT Massey Coal, all of which were isolated and betrayed by the union leadership. The bureaucrats argued that strikes and work actions had to be suppressed in an era of globalization in order to ensure the profitability of American corporations.

Analyzing the 1984 UAW-GM contract, which established the legal and technical foundations for the direct collaboration of the union bureaucracy with the corporations and the state, the Workers League, the forerunner of the Socialist Equality Party in the US, wrote: “The practice of anti-communism is a corporatist alliance with the auto bosses against the auto workers, the abandonment of any defense of the gains made by the union in the past 50 years, the surrender of jobs, wages, benefits and work rules. It is a total sellout and betrayal of the independent interests of the working class, in order to defend the capitalist system.”

Staffed and run by right-wing bureaucrats, the unions are today a savage industrial police force that works with the government and corporations to suppress the class struggle. They are the direct enforcers of cuts in wages, pensions and health benefits. The income of the top bureaucrats and their aides, which can reach well into six figures, is entirely dependent on this parasitic arrangement.

The UAW has not called a single national strike in nearly 40 years. Once considered a fact of daily life, strikes and walkouts have all but disappeared from the scene. Limited and deliberately isolated strikes are called on occasion to divide the working class and wear down and starve militant workers into submitting to company demands. Not surprisingly, a drastic decline in union membership has accompanied the unions’ ever more direct and open collaboration with the corporations to cut living standards and shut down factories.

Williams’ appearance with Trump is only the latest confirmation of the far-sighted analysis of the trade unions made by the Socialist Equality Party.

The reality is that workers are totally without any form of representation in their fight for decent wages and working conditions. The unions’ role as an industrial police force and their open alignment with the fascistic policies of the Trump administration raise sharply the need for the building in every workplace of democratic rank-and-file committees, which can take the struggle in defense of jobs and living standards out of the hands of the bureaucracy and place the initiative back in the hands of the working class.

This industrial fight must be combined with an independent political strategy, based on a break with the two-party system of American big business and the building of a mass socialist movement of the working class.

Niles Niemuth

 

An increasingly connected world needs hackers more than ever before

Internet security expert Justin Calmus explains why bug bounty programs are so important

An increasingly connected world needs hackers more than ever before
(Credit: Getty/welcomia)

As the world around us becomes more connected to the internet, the number of ways that hackers can infiltrate our lives becomes increasingly multifarious. Today data breaches are taking place in ways that were unheard of just a decade ago — from remotely hacking cars to infiltrating “smart” teddy bears.

The threats have grown so quickly that companies are overwhelmed by the increasing number of attacks, security experts say. This is not just because of the growing number of opportunities to infiltrate a network or device, but also because these attacks are increasingly automated and launched from low-priced computer hardware using open-source tools that require relatively low coding skills to deploy. Defending against such attacks can require well-paid and highly trained experts.

“We believe that cybersecurity is a correctable math problem that, at present, overwhelmingly favors the attackers,” Ryan M Gillis, vice president of cybersecurity strategy for enterprise security company Palo Alto Networks, said at a House Homeland Security Committee meeting last week about protecting the private sector from hacking. “Network defenders are simply losing the economics of the cybersecurity challenge.”

One increasingly popular way for a company or government agency to root out vulnerabilities is through a big bounty program, a policy that invites hackers to try to infiltrate its connected networks. Hackers receive financial compensation for identifying entry points that could be exploited for malicious purposes. The idea has been around since at least 1995, when internet browser pioneer Netscape initiated its “bugs bounty” program with a $50,000 budget. Today such programs are common among major companies, including United Airlines and Tesla Motors, and can be lucrative projects for the most talented hackers who can earn from $10 to tens of thousands of dollars depending on the severity of the vulnerability identified.

Last week Google and Microsoft increased their top rewards for people who can expose the most serious threats, like when code can be remotely injected and executed through network defenses. This underscores the growing popularity of bounty programs as companies compete for the attention of the most talented ethical hackers. Apple, which has resisted compensating people for identifying flaws, last year succumbed to the trend and now offers bounties of as much as $200,000.

Justin Calmus, vice president of hacker success for San Francisco-based HackerOne, which has a bug-bounty platform whose clients include the U.S. State Department, Uber Technologies and General Motors, spoke with Salon about the role bug bounties play in boosting network security.

Bug bounties have been around for about 20 years. Talk about the most recent innovations in the practice and where it might be headed.

I’ll start with the problem first. If we go back 15 years, companies would be able to recruit engineers because they were focused on specific technologies. You would have a few issues from most likely Python, [a high-level general-purpose programming language,] and you would have a website and some people who knew HTML, [the standard language for building websites]. Today we have so many different programming languages and we have different infrastructure components, like running in the cloud versus on premise, we have [Amazon Web Services, a widely used cloud-computing platform] and we have all these different operations.

The problem of security is getting bigger and bigger. How do you control your security? If you run a startup, how do you control your security as you build your business? That’s an even harder problem to solve because you don’t necessarily have the funding to hire tons of security resources. You have to figure out “How do I continue to stay secure while I scale?” That’s one of the problems bug bounties solve for.

For the most part, if you have a company, and it could be any company, you tell hackers, “Hey, I want you to do anything it takes to get access to our data and report it to us.” If you do that, you then have thousands of eyes looking into your specific programs to help you scale and help you secure your business.

Are there hackers that just do this as full-time jobs?

Yeah, we have a gentleman in Vegas that does this full-time, making a half a million dollars a year doing this. You can make a significant income from bug bounties. It’s a fantastic way to make extra income and to potentially go full-time.

Google and Microsoft recently announced big increases in their bug bounty rewards. Why do you think bug bounties are becoming more lucrative?

Imagine if Salon.com is trying to recruit the best reporter in the world, but that reporter must have specific knowledge about security — and it also wants a little bit of software engineering background because the reporter needs to talk technical, and it wants the reporter to be located in this area, and the reporter must be willing to travel. Suddenly you’re moving your needle so small that there might be three people in the world who fit the criteria.

Google is starting to have this problem. They’ve developed a lot of their own tools and they’ve developed their own [programming] language. It’s not easy to find a Google bug because there isn’t external training on what Google does, how they do it, all the different types of infrastructure. There are pretty good resources to figure this out, but to go deep on such a massive problem you need to spend hours and days and months getting to know the infrastructure to find a bug. So to dedicate all of your time and resources into Google you need to be very incentivized to look because at the end of the day you might not find anything.

We’re entering an era of the internet of things [that] connects cars, smart cities, toys with Wi-Fi connections. Are bug bounties being implemented for things like this?

We’re getting to the point to where the [makers of] hardware and the internet of things components are starting to be asked those very questions. As a hacker myself, I want to see them participate in bug bounty programs because I use Alexa, I use some of the apps connected to [the internet of things] and it’s my job to understand how the software and hardware that I buy works. Doing due diligence and being able to reverse engineer to take a look deep into a product, you may find issues and vulnerabilities; some of them may even give you access to other customers’ data. Companies need to be able to responsibly disclose all of that. For hackers to put in the time and effort to find some of these vulnerabilities — it would be fantastic if companies would reward the hackers so that they continue looking into their programs.

We’ve read a lot about how automakers are encouraging white hat hackers to root out these vulnerabilities. But is this happening with other makers of internet-connected products, like internet-connected home appliances or “smart” teddy bears?

It’s absolutely a slow roll. The tech companies get it. They have to deal with security issues day in and day out. The hardware companies don’t necessarily understand it as much as they need to. It’s a problem we’re solving for. We do have some hardware companies on board. We do have internet of things [companies] on board. But we do need to get the word out that security is a fundamental piece of everybody’s life. You need to be able to understand the security outcomes of making life more efficient or easier or whatever it may be. So do I think that we need to spread the word? Absolutely. Do I think they get it yet? Not 100 percent.

The Information Technology and Innovation Foundationrecently said that a significant number of federal government websites failed basic security benchmarks. Is the federal government falling behind in this effort to entice ethical hackers?

The Department of Defense has a bug bounty program and we’re starting to see efforts to secure all of our government services. Just speaking to higher-ups on the government side I hear them talking about “Hey, we need to find these hackers and reward them and incentivize them, see what we can do to continue to have them continue to look at our programs and even eventually hire them.” The U.S. has its own hiring criteria, but the [Defense Department] is open to anybody today, not just U.S. citizens looking to work for them.

HackerOne recently announced a platform for the open-source coding community, which is free. What inspired you to go in that direction?

We’re absolutely huge open-source fans. Open source powers our platform. It powers many platforms. We see the mission as making the entire internet safer and make sure that everyone is taken care of. We’re better off doing that for all of the open-source projects out there. We want to make sure we’re on top of that. This also helps us branch out to the best hackers out there. We’re able to leverage our ability find vulnerabilities [in open-source software] while we’re getting more connected to the hacker community.

You can acquire a super memory

Learning a memorization technique used by elite memory athletes leads to widespread changes in brain wiring

Don't forget this: You, too, can acquire a super memory
This article was originally published by Scientific American.

Scientific AmericanElite memory athletes are not so different from their peers in any other sport: They face off in intense competitions where they execute seemingly superhuman feats such as memorizing a string of 500 digits in five minutes. Most memory athletes credit their success to hours of memorization technique practice. One lingering question, though, is whether memory champs succeed by practice alone or are somehow gifted. Recent research suggests there may be hope for the rest of us. A study, published recently in Neuron, provides solid evidence that most people can successfully learn and apply the memorization techniques used by memory champions, while triggering large-scale brain changes in the process.

A team led by Martin Dresler at Radboud University in the Netherlands used a combination of behavioral tests and brain scans to compare memory champions with the general population. It found top memory athletes had a different pattern of brain connectivity than controls did, but also that subjects who learned a common memorization technique over a period of weeks, not years, greatly improved their memory skills and began to exhibit brain connection patterns resembling those of elite memorizers.

Many of us learn new skills throughout our lives, and scientists have long wondered if and how our brains change as a result. Previous research has linked some skills to specific brain changes. One well-known set of studies showed that London taxi drivers developed more gray matter in their hippocampi (a brain area linked to memory) as they acquired the knowledge needed to navigate London’s haphazard maze of streets. Dresler and colleagues, motivated in part by co-author and professional memory trainer Boris Konrad, decided to focus on elite memory athletes who utilize memorization techniques to compete at highly specific tasks such as memorizing decks of cards or lines of binary digits in minutes. They wanted to know whether these highly skilled practitioners exhibit noticeable brain changes and how those changes occur.

In the first part of the study the researchers matched 23 elite memory champions with control subjects based on age, gender and IQ. Both groups underwent a series of brain scans including anatomical scans and functional magnetic resonance imaging (fMRI) during a resting state — one in which subjects were not doing anything — and during a memory task. The researchers found the memory champions did not differ from the controls in any particular brain region, but rather had different patterns of brain connectivity during resting-state and task-based fMRI scans. To Dresler, these results suggested “there’s not a sort of general hardware difference in memory champions that allows them to reach these memory levels but that something subtler is going on,” which spurred the team to investigate further.

Next, the researchers took 51 subjects who had never previously engaged in memory training and divided them into an experimental group and two control groups. Experimental subjects underwent six weeks of intense memory training for half an hour each day using the centuries-old method of loci strategy still popular with memory champions: They learned how to map new information such as numbers or names onto familiar spatial locations such as those in their homes. The active control group trained for a working memory task called the n-back that does not train long-term memory. Meanwhile the passive control group received no training.

After training, the experimental subjects improved significantly at memory tasks (whereas neither control group improved), yet did not exhibit any structural brain changes. Their brain connection patterns during resting state and task-based fMRI scans, however, became more similar to those of memory champs, a change that correlated positively with memory improvements. “I think the interesting part is that not only can you boost memory in a similar way behaviorally in normal subjects compared to memory athletes,” Dresler said, “but on the brain level you see a reflection of that behavioral increase, and you drive the brains of naive subjects into the patterns of the best memorizers in the world.”

James McGaugh, a neurobiologist at the University of California, Irvine, who was not involved in the study, considers it to be in a similar vein as the London taxi cab research, but highlights an important difference: Rather than pinpointing a particular brain region, the present study found an overall change in brain connections. “All of our brains are malleable all the time, and this is just another piece of evidence of that,” he said. “If you learn something and you learn it well, the brain changes.”

For his U.C. Irvine colleague, Craig Stark, a professor of neurobiology and behavior who also was not part the research, it represents “a really interesting contribution to the field.” Stark was particularly impressed by the study’s clever experimental design, which he expects to be adopted by researchers in other domains. He said the results align with the idea that our brains are highly plastic and continuously change and adapt. “This is showing that the act of going and learning something new is changing your brain, and changing the way you process things, which will change the way you actually see the world,” he said.

 

http://www.salon.com/2017/03/13/dont-forget-this-you-too-can-acquire-a-super-memory_partner/?source=newsletter

How Uber Could End Up As Silicon Valley’s Most Spectacular Crash

ECONOMY

Lately, the curtain is being pulled back to reveal a rotten culture and troubled CEO.

Photo Credit: Prathan Chorruangsak / Shutterstock.com

Just a year ago, Uber reigned as the tech industry’s awe-inspiring, all-powerful Wizard of Oz. But lately, the curtain is being pulled back to reveal a guy who’s more like an angry drunk frantically yanking levers while taking roundhouse swings at the Tin Man and propositioning Dorothy.

Uber is in a whole lot of bad right now, and there’s growing concern that it’s about to melt down like a haywire nuclear reactor, which would leave a crater in the heart of Silicon Valley. Uber gave us on-demand transportation. Countless people all over the world love this new kind of service. The category is only going to get bigger. But it’s possible it will do that without Uber.

Rotten Culture, Bad PressAt the heart of Uber’s trouble is its culture, which seems to have been born from a one-night stand between John Belushi’s crude Bluto in Animal House and Ayn Rand’s hypercompetitive Hank Rearden. That culture got put on public display in February, when former engineering employee Susan Fowler published a blog calling out Uber’s rotten treatment of women and its general dysfunction. The place is so cutthroat, she wrote, “it seemed like every manager was fighting their peers or attempting to undermine their direct supervisor so that they could have their direct supervisor’s job.”

If anyone thought Fowler was a lone whiner, a few days later tech industry legend Mitch Kapor and his wife, Freada Kapor, who is an expert in workplace mores, published an open letter to Uber’s board. The Kapors were early investors in the company, and they were unhappy about Uber’s tepid response to Fowler’s post and fed up with Uber’s “destructive culture,” to use their term. “We are speaking up now because we are disappointed and frustrated; we feel we have hit a dead end in trying to influence the company quietly from the inside,” they wrote.

A week later, while riding in an Uber, CEO Travis Kalanick was captured on video berating the driver, who dared to complain about cuts to his income because Uber keeps reducing fares. “I’m bankrupt because of you,” the driver told Kalanick, who then erupted. After Bloomberg obtained and published the video, Kalanick found himself in the all-too-familiar position of publicly apologizing. He posted on Uber’s site, “I must fundamentally change as a leader and grow up.” Duh.

Negative publicity keeps battering Uber. The company ran afoul of the protesters who flocked to airports after Donald Trump’s travel ban, then had to fend off a #DeleteUber movement. (Some estimates say 200,000 people deleted the app in the days after the hashtag went viral.) About six months earlier, Uber took a $3.5 billion investment from Saudi Arabia’s Public Investment Fund, a move that made Uber look as if it was buddies with a government that won’t let women drive and puts gay men in jail.

One Uber investor said to Fortune about the deal, “It goes to the heart of who Travis is. He just doesn’t give a shit about optics. Ever.”

Now Uber is being painted as a technology thief by Google’s parent, Alphabet. Last year, Uber bought a company called Otto for a reported $680 million. Otto develops autonomous driving technology. A bunch of people who work there came from Alphabet’s autonomous car subsidiary, now called Waymo. Alphabet alleges that some of those people stole technical data from Waymo, and Alphabet is suing to stop Uber from using it. Uber has often stated that its future rests on having a fleet of self-driving cars—so, of course, it won’t have to share revenue with those pesky human drivers. If Alphabet wins its case, Uber would pretty much have to start building the technology all over again or pay a ton of money to buy someone else’s.

Dissatisfied Drivers, Bleak Financials. While Uber is counting on a hazy future of self-driving cars, in the meantime it has to keep its 160,000 drivers happy, and they are not, as Kalanick’s video encountered showed. Drivers want the Uber app to allow tips; Uber won’t do it. Uber has fought court cases brought by U.S. drivers asking for employee benefits. It settled a suit for $20 million for posting ads that were misleading about how much its drivers can earn. Rival Lyft has been running ads lampooning Uber’s treatment of drivers, hoping to lure away Uber drivers—and convince conscientious riders they should prefer a company that treats its drivers better.  Strategically, Kalanick and his team seem guilty of constant overreach. Does anybody ever order a falafel from UberEats? Who at Uber thought it was a good idea to take on Seamless? Not only did Kalanick buy Otto to get into self-driving cars, but in February he hired a former NASA scientist to develop flying cars. Trump likes to say we always lose to China—well, Uber proved him right by going into China ill-prepared. Last summer, Uber cut a deal with China’s Uber clone, Didi Chuxing, to leave China in exchange for 17.5 percent of the Chinese company and a $1 billion investment by Didi. Is that setting up Didi to eventually beat Uber worldwide? Trump will have a seizure if the day ever comes when U.S. riders no longer say they’re going to “Uber” somewhere and instead say they’re going to “Didi.”And then there is Uber’s financial picture. The company is private, but some of its numbers have been leaked. Bloomberg reported that Uber lost $800 million in the third quarter of 2016. Some speculate Uber may have lost $3 billion last year. Uber is a costly business to run. To serve more customers, it needs to bring in and pay more drivers, so the company can’t take advantage of economies of scale. It has little pricing power because it still faces competition from Lyft and taxis and other newcomers including Maven, which is a unit of General Motors. In order to have the cash to fund operations and expansion, Uber has brought in round after round of private investment, pumping up the valuation of the company to nearly $70 billion. That would make Uber worth more than GM. Raise your hand if you think that makes sense.

The sky-high valuation may be haunting Uber. Kalanick has famously refused to take Uber public, even though the company, at eight years old, is in the sweet spot of when many tech companies do an initial public offering. He makes his stance sound like a maverick’s declaration of independence from public markets, but whispers now are that Uber’s finances might not justify an IPO at a valuation high enough to make current investors happy. If that’s true, Uber is in a hole. It won’t be able to raise money from anyone who has passed sixth-grade math.

If Uber stalls, it isn’t going to be saved by a loyal consumer fan base. There is no stickiness to Uber. It has no frequent-rider program. It has no social component. It prevents users from forming bonds with drivers. No one gets a heightened sense of self by identifying as an Uber rider versus some competitor. We’ll stick with Uber as long as it continues to get us where we want to go at a price we like. Someone else comes along with a better service or lower price, we’ll use it.

Drexel of the 2010s?It’s hard to imagine the devastation that would come with an Uber collapse. Its dozens of investors range from venture capital companies to individuals like Kapor and companies such as Microsoft and Citigroup. The company employs 11,000 people (excluding drivers), mostly around Silicon Valley, and is in the process of spending $250 million on new offices. The blow to Silicon Valley’s ego might be up there with the pain the Democratic Party has been feeling lately.

Uber has done amazing work in its short life. It created, defined and has so far dominated a new market of on-demand transportation, changing the way we do things today and profoundly changing the way we think about the future of urban transportation. It is a historically important company. No one will ever take that away from Kalanick and his crew. But Uber has proved to be a flawed company. To find a business tragedy that’s an appropriate warning for Uber, go back to Drexel Burnham Lambert in the 1980s, when Kalanick was in grade school. (He is, believe it or not, 40 years old.) Drexel, led by investing legend Mike Milken, defined and dominated junk bonds as a category of finance. This changed Wall Street and business forever. Drexel was a superstar. But the company had a flawed culture of insane pressure to perform, so employees took sketchy risks that ultimately led to criminal charges. Within a couple of years, the company fell from the pinnacle of Wall Street power to filing for bankruptcy. Milken went to prison for securities fraud.

The category Drexel created lives on. Today, junk bonds are a $1 trillion market, without Drexel.

The Kapors are pushing Kalanick to reinvent Uber’s culture so it can become an enduring company. It would be awesome if Uber can fulfill its promise and stand next to companies like Apple and Amazon. But as Uber’s bad days pile up, it often looks as if Kalanick has built the Drexel of the 2010s.

Kevin Maney is a best-selling author and award-winning columnist.

 

WikiLeaks Has Joined the Trump Administration

VOICE
WikiLeaks Has Joined the Trump Administration

As a presidential candidate, Donald Trump declared, “I love WikiLeaks!” And he had good reason to display affection to this website run by accused rapist Julian Assange. By releasing reams of emails stolen from the Democratic National Committee and Hillary Clinton campaign chairman John Podesta, WikiLeaks helped tilt the 2016 election in Trump’s favor.

As president, Trump hasn’t come out and said anything laudatory about WikiLeaks following its massive disclosure of CIA secrets on Tuesday — a treasure trove that some experts already believe may be more damaging than Edward Snowden’s revelations. But Trump hasn’t condemned WikiLeaks. The recent entries on his Twitter feed — a pure reflection of his unbridled id — contain vicious attacks on, among other things, Arnold Schwarzenegger, the New York Times, and Barack Obama but not a word about WikiLeaks. Did the president not notice that the intelligence community he commands has just suffered a devastating breach of security? Or did he simply not feel compelled to comment?

Actually there is a third, even more discomfiting, possibility:

Perhaps Trump is staying silent because he stands to benefit from WikiLeaks’ latest revelations.

Perhaps Trump is staying silent because he stands to benefit from WikiLeaks’ latest revelations.On Saturday, recall, Trump was making wild-eyed accusations that Obama had ordered the U.S. intelligence community to wiretap him. “How low has President Obama gone to tapp (sic) my phones during the very sacred election process. This is Nixon/Watergate. Bad (or sick) guy!” The White House could not come up with one iota of evidence to support this irresponsible allegation, which was denied by FBI Director James Comey and former Director of National Intelligence James Clapper. But Trump would not be dissuaded from pursuing this charge, which serves as a convenient distraction from the far more serious accusations of possible collusion between the Trump campaign and the Kremlin while Russia was interfering with the presidential campaign.

Is it just a coincidence that WikiLeaks dumped a massive database pertaining to CIA hacking and wiretapping just three days after Trump made wiretapping a major political issue? Perhaps so. But there is cause for suspicion.

In the first place, WikiLeaks has often timed its leaks for maximum political impact. It released 20,000 stolen DNC emails just three days before the Democratic National Convention on July 25, 2016. As expected, WikiLeaks generated headlines about DNC staffers disparaging Sen. Bernie Sanders, buttressing a Trump campaign effort to prevent Clinton from consolidating Sanders supporters. DNC Chairwoman Debbie Wasserman Schultz resigned as a result, and the Clinton campaign suffered significant public relations damage.

In the second place, WikiLeaks, which has often leaked American but never Russian secrets, has been identified by the U.S. intelligence community as a front for Russian intelligence. In January, the Office of the Director of National Intelligence released a declassified estimate that found “with high confidence that Russian military intelligence … relayed material to WikiLeaks.” This was done with a definite purpose: “Putin and the Russian Government aspired to help President-elect Trump’s election chances when possible by discrediting Secretary Clinton and publicly contrasting her unfavorably to him.”

Trump has consistently resisted the intelligence agency’s conclusions, insisting that some 400-pound couch potato might have committed the hacking before grudgingly accepting the findings but continuing to claim that the Russian hack had no impact on the election. (Given that 70,000 votes in three states were his margin of victory, how does he know what affected the outcome and what didn’t? And if WikiLeaks was so inconsequential, why did he tout its revelations in almost every appearance during the last month of the campaign?)

The intelligence community’s finding that Putin helped him win the election spurred Trump to pursue a vendetta against it. For example, he accused the spooks — with no support — of being behind BuzzFeed’s publication of a damning dossier compiled by a former British intelligence officer claiming that the Kremlin had compiled compromising materials on him. Trump outrageously tweeted: “Intelligence agencies should never have allowed this fake news to ‘leak’ into the public. One last shot at me. Are we living in Nazi Germany?” His animus against the intelligence agencies has continued down to his more recent accusations that they allowed themselves to be used by Obama to wiretap him. The consistent (if hardly believable) storyline from Trump is that he has no connections to Russia, and that he is a victim of the nefarious machinations of the American “deep state.”

It is significant, therefore, that one of the major storylines to emerge from the latest WikiLeaks release is that the CIA supposedly has a program to reuse computer codes from foreign hackers, thus disguising CIA fingerprints on a hacking operation. Never mind that there is no evidence that the codes used to break into the DNC were part of this CIA database. Right-wing outlets are nevertheless trumpeting these revelations with headlines such as this one on Breitbart: “WikiLeaks: CIA Uses ‘Stolen’ Malware to ‘Attribute’ Cyberattacks to Nations Like Russia.” Russian-controlled Internet “bots” are also said to be playing up these claims online.

The implication is clear. Trump was a victim of a “false flag” operation wherein CIA hackers broke into the DNC and blamed the Russians. This may be nutty, but it’s eminently believable to an audience conditioned to believe that 9/11 was an inside job and that the Sandy Hook massacre was staged — favorite tropes of the radio talk-show host Alex Jones, whose work Trump has praised. Other WikiLeaks revelations — for instance, that the CIA can use Samsung smart TVs as listening devices — lend further credence to Trump’s charge that he was secretly wiretapped.

Quite apart from its specifics, the WikiLeaks release changes the subject after a bad few days for Trump highlighted by Attorney General Jeff Sessions’s decision to recuse himself from any Kremlingate probe after he was revealed to have lied under oath when he denied meeting any Russian representatives. Last week it was Trump on the defensive. Now it’s his nemeses in the U.S. intelligence community who are answering embarrassing questions about how this leak could have occurred and the contents of the leaked information.

Again, maybe this is entirely coincidental, but WikiLeaks’ history of being used by Russian intelligence to support Trump should lead to much greater scrutiny not only of who leaked this information — is there a mole in the CIA? — but why it was released now. Even if there is no active collusion between the White House and the Kremlin, the extent to which their agendas coincide is striking. Both Putin and Trump want to discredit the U.S. intelligence community because they see it as an obstacle to their power.

Photo credit: OLI SCARFF/Getty Images

WikiLeaks Has Joined the Trump Administration

WikiLeaks reveals vast CIA spying, cyberwar operation

8 March 2017

The bitter internecine struggle within the US state apparatus and ruling political establishment, featuring unsubstantiated Democratic claims of Russian hacking in support of Trump, on the one hand, and Trump’s own charge that his campaign was bugged by Obama, on the other, was overshadowed Tuesday by a massive release of CIA documents by WikiLeaks.

The 8,761 documents contained in what WikiLeaks has described as “the largest intelligence publication in history” have begun to lay bare a vast system of surveillance, hacking and cyberwarfare directed against the people of the United States and the entire planet.

The anti-secrecy organization called the first document trove “Year Zero” and said that further CIA data dumps are still to come under a larger project dubbed “Vault 7.”

The files were taken from the CIA’s Center for Cyber Intelligence, a huge and little-known command that includes some 5,000 hackers, both CIA agents and private contractors. Much as in the case of Edward Snowden’s leaking of secret documents exposing the global spying operation of the National Security Agency (NSA) in 2013, the CIA documents have apparently come from a former agency hacker or contractor concerned about the scope and purpose of the agency’s cyberwar operations.

The programs described in the documents indicate that the CIA, according to WikiLeaks, has developed “more than a thousand hacking systems, trojans, viruses and other ‘weaponized’ malware” allowing it to seize control of devices, including Apple iPhones, Google’s Android operating system (used by 85 percent of smart phones) and devices running Microsoft Windows. By hacking these devices, the CIA is also able to intercept information before it is encrypted on social media platforms such as WhatsApp, Signal, Telegram, Wiebo, Confide and Cloackman.

The agency has apparently stockpiled so-called weaponized “zero-day” threats that can be used to exploit unidentified vulnerabilities in a wide range of devices before their manufacturer is able to detect the flaw and correct it. Under the Obama administration, the White House had supposedly established a “Vulnerabilities Equities Process,” under which the intelligence agencies would inform manufacturers of most software vulnerabilities while keeping some to itself for exploitation. In part, this was designed to prevent US companies from losing market share overseas. The vast character of the CIA arsenal establishes that this program was a sham from the outset.

One of the programs developed by the CIA, codenamed “Weeping Angel,” turns Samsung smart televisions into the kind of technology envisioned by George Orwell in 1984, in which “thought police” monitored “telescreens” that served as both televisions, broadcasting the speeches of “Big Brother,” and security cameras, monitoring every word and action of the viewer. This surveillance technique places targeted TVs in a “fake off” mode, transmitting conversations in a room over the Internet to a covert CIA server.

WikiLeaks reported that a large amount of information had been redacted from the leaked documents, including computer codes for actual cyberweapons as well as the identities of “tens of thousands of CIA targets and attack machines throughout Latin America, Europe and the United States.”

That “targets” exist in the US indicates that the agency is engaged in wholesale domestic spying in violation of its charter.

The documents also establish that the CIA has developed these programs in collaboration with MI5, the British intelligence agency, and that it operates a covert cyberwarfare center out of the US Consulate in Frankfurt, Germany.

One chilling revelation provided by the documents, according to WikiLeaks, is that, “As of October 2014 the CIA was also looking at infecting the vehicle control systems used by modern cars and trucks.” WikiLeaks notes that “The purpose of such control is not specified, but it would permit the CIA to engage in nearly undetectable assassinations.”

While WikiLeaks does not specifically mention it, this was the scenario suggested by many in the 2013 fatal single-car accident in Los Angeles that claimed the life of journalist Michael Hastings. At the time of his death, Hastings, who had previously written an article that led to the removal of Gen. Stanley McChrystal as the top US commander in Afghanistan, was working on a profile of Obama’s CIA Director John Brennan. Before the accident, Hastings had informed colleagues that he was under government surveillance and had asked a neighbor to lend him her car, saying he feared his own vehicle had been tampered with.

One other politically significant element of the revelations contained in the WikiLeaks documents concerns a CIA program known as “Umbrage,” which consists of a sizable “library” of malware and cyberattack techniques developed in other countries, including Russia. The agency is able to exploit these “stolen” tools to mask its own attacks and misdirect attribution to their originators. The existence of such a program underscores the lack of any foundation for the hysterical campaign alleging Russia’s responsibility for the hacking and leaking of Democratic Party emails.

While the Democrats continue to center their fire against Trump on the question of alleged ties to Russia—rather than the reactionary policies his administration has unleashed against immigrants and the working class as a whole—the WikiLeaks revelations about the CIA are being dismissed by sections of the media as another Moscow plot.

Along similar lines, the New York Times Monday published a lengthy article mocking alleged “signs of a White House preoccupation with a ‘deep state’ working to thwart the Trump presidency” following Trump’s charge that he had been bugged during the presidential campaign.

Such a term might be appropriate for countries like Egypt, Turkey or Pakistan, the Times argued, but could not be applied to the US because it “suggests an undemocratic nation where legal and moral norms are ignored.”

The reality is that the “deep state” in the US is more massive and powerful than anywhere in the world and is the patron of similar military-intelligence complexes in countries like Egypt, Turkey and Pakistan. As for “legal and moral norms,” the latest revelations about the CIA, an organization long ago dubbed Murder, Inc., offer a glimpse of the real methods of the American state.

That the Times attempts to dismiss concerns about the activities and influence of the military-intelligence apparatus only establishes its own role as a propaganda organ and ideological instrument of this “deep state,” with the most intimate ties to the CIA, the Pentagon and other agencies.

The documents released by WikiLeaks cover the period of 2013 to 2016, the last years of the Obama administration, which presided over the continuation and spread of the wars begun under Bush, a sweeping expansion of the power the US intelligence apparatus and a corresponding assault on democratic rights. This included the organization of an international drone assassination program under which the White House claimed the authority to order the extrajudicial murder of American citizens.

This vast apparatus of war, repression and mass surveillance has now been handed over to the administration of Donald Trump, a government of billionaires, generals and outright fascists that is determined to escalate war abroad and carry out unprecedented attacks on the working class at home.

While the Democratic Party is calling for a special prosecutor over alleged Russian “meddling” in the US election—a demand aimed at sustaining the US war drive against Russia and diverting the mass opposition to Trump into reactionary channels—and Trump is calling for a probe of the alleged bugging of his communications, neither side has called for investigation of the CIA spying operation. Both Democrats and Republicans are agreed that such police-state measures are required to defend the crisis-ridden capitalist system against the threat of a social revolution by the working class.

Bill Van Auken

http://www.wsws.org/en/articles/2017/03/08/pers-m08.html

Months After Calling the Prospect ‘Crazy,’ Facebook Brags About Its Ability to Swing Elections

Posted on Mar 4, 2017

Facebook, whose founder Mark Zuckerberg called arguments that the tech giant helped swing the presidential election toward Donald Trump “crazy” and “extremely unlikely,” is now boasting of its ability to influence elections for pay.

Adam Peck reports at ThinkProgress:

Facebook’s marketing department has a web page set up to document success stories. Most of them are examples of businesses that leveraged Facebook’s advertising network into higher sales, larger audiences, and better customer reviews. But nestled somewhere between the pages for Panera Bread and Cheetos are pages for politicians like Sen. Pat Toomey (R-PA), Sen. Bernie Sanders (I-VT), and former Libertarian presidential candidate Gary Johnson.

On each page, Facebook’s business team breaks down some metrics about how these political campaigns leveraged the platform to boost donations and turnout on election day. On Johnson’s page, Facebook boasts of a 6.8-point bump in the candidate’s favorability numbers among moderate voters.

But it is wording on Sen. Toomey’s “success story” that has struck a troubling chord. After noting that Toomey was facing a tough re-election in 2016, Facebook touted it’s ability to “significantly shift voter intent and increase favorability,” and that the campaign’s “made-for-Facebook creative strategy was an essential component to Senator Pat Toomey’s re-election, as the senator won by less than 100,000 votes (of nearly 6 million votes cast).”

The Philadelphia Business Journal noted that Toomey’s campaign outspent Democratic rival Katie McGinty by more than a two to one margin on digital content, most of that directed towards Facebook. In return, the campaign was able to create more content specifically tailored to Facebook’s platform rather than recycling things like television ads.

Read more here.