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2018-10-15 13:15 by Karl Denninger
in Corruption , 236 references
[Comments enabled]  

So statistically speaking Senator Warren has less native American blood in her than an average white American.

The results, as shared with The Boston Globe, reportedly reveal “strong evidence” the Massachusetts senator had a Native American ancestor dating back six to 10 generations.

The absolute best read of this is that she has 1/1024 of a "piece" of native American blood.  Worst-case is of course less.

If it's 10 generations back then on the basis of half-life analysis (which is how we rate such things) the actual percentage is zero.

Take some nasty poison -- or radioactive substance.  Dilute it by 10 half-lives, which is what you get when genetic mixing is being done too (duh!) and there is not one molecule of said nasty substance left.

In other words after 10 half-lives we don't care if you started with the most-poisonous (or radioactive) substance in the world; after 10 half-dilutions the amount remaining is a literal zero.

Any privilege Warren has obtained or claimed is a fraud and fraud is a crime.

**** you Senator -- you're a fraud and ought to be in prison.

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2018-10-04 11:12 by Karl Denninger
in Corruption , 351 references
[Comments enabled]  

SMCI -- Remember that, as there may well be a "Q" on the end of that stock symbol soon.

Incidentally the server I have here at the house has a motherboard in it made by them -- fortunately before the hacking game began.  Needless to say I won't be buying a newer replacement from that company any time ever.

What am I referring to?  This story by Bloomberg.

.....To help with due diligence, AWS, which was overseeing the prospective acquisition, hired a third-party company to scrutinize Elemental’s security, according to one person familiar with the process. The first pass uncovered troubling issues, prompting AWS to take a closer look at Elemental’s main product: the expensive servers that customers installed in their networks to handle the video compression. These servers were assembled for Elemental by Super Micro Computer Inc., a San Jose-based company (commonly known as Supermicro) that’s also one of the world’s biggest suppliers of server motherboards, the fiberglass-mounted clusters of chips and capacitors that act as the neurons of data centers large and small. In late spring of 2015, Elemental’s staff boxed up several servers and sent them to Ontario, Canada, for the third-party security company to test, the person says.

Nested on the servers’ motherboards, the testers found a tiny microchip, not much bigger than a grain of rice, that wasn’t part of the boards’ original design. Amazon reported the discovery to U.S. authorities, sending a shudder through the intelligence community. Elemental’s servers could be found in Department of Defense data centers, the CIA’s drone operations, and the onboard networks of Navy warships. And Elemental was just one of hundreds of Supermicro customers.

Oh, and places like Ticker Central along with most of the big server-farm companies.

These boards are literally everywhere.  They're quite-solid and, for those people running server farms and similar, have what is known as "IPMI", or a remote console capability that runs over a dedicated network port.  This interfaces with the "BMC" module which is where the hack was placed.

The BMC module controls the system before it boots.  It's another processor, basically, and interdicting it provides the potential to exfiltrate anything -- including the 900lb Gorilla, encryption keys.

The problem with such a setup is that in order to make it very hard to find you need to make it small.  This in turn limits both the power you can put into the chip and its storage capacity, both of which will also be small.  But that doesn't matter, really, because all you need is enough to work your way back to "mother" and grab whatever you want from that location and since these boards in a server architecture will have their management port connected, never mind that the BMC can attach to the other network ports (not just the dedicated one) as soon as the board is on a real network with outside access it can get back to its command point.

In short the problem is this:

Over the decades, the security of the supply chain became an article of faith despite repeated warnings by Western officials. A belief formed that China was unlikely to jeopardize its position as workshop to the world by letting its spies meddle in its factories. That left the decision about where to build commercial systems resting largely on where capacity was greatest and cheapest. “You end up with a classic Satan’s bargain,” one former U.S. official says. “You can have less supply than you want and guarantee it’s secure, or you can have the supply you need, but there will be risk. Every organization has accepted the second proposition.”

As I have repeatedly warned over the last decade in this column that first article of faith is complete crap.  The PLA is the government and business both in China.  To believe that they wouldn't "jeopardize" their position is also crap for the simple reason that the entire premise of offshoring is to seek the cheapest price risks be damned as nobody in the United States in corporate or government work is ever prosecuted for screwing their customers.



Not even when, as I documented in these pages, you work for the banking regulators and not only allow but actively conspire with bank executives to deliberately falsify bank capital levels.

Not once, twice.

The same guy -- in the 1980s during the lead-up to the S&L crisis and then again during the '08 crash with IndyMac.  Despite being caught doing it the first time said person not only kept his job he kept supervisory capacity and got to do it again.  Thousands of customers over the FDIC insurance limits lost their money as a direct consequence AND HE WAS NOT PROSECUTED EVEN THOUGH THAT WAS A CLEAR ACT OF FRAUD.

So why wouldn't you, if you're Apple, Microsoft or someone else -- put your manufacturing in China despite knowing they were working on this sort of thing, had the resources of a government and the willingness to use same and, given enough time, likely would pull something exactly like this?

In other words why not take the money since there is no consequence for screwing both your customers and the entire United States as a nation!

Oh by the way this is exactly the sort of flaw and intentional misfeasance that can get you nuked -- literally -- and just at the moment it's about to happen critical government systems necessary to respond to such a threat would be destroyed by having their BMC boot firmware and BIOS overwritten and then the machine remotely-reset, making it impossible for them to be restarted without, at minimum, access to a JTAG reprogramming jig specific to the board in question which, of course, is in the nation that is at that moment throwing nuclear warheads at you.

This of course assumes all the encryption keys haven't been stolen (or worse, altered) so what you think is the key isn't really the key and thus when you finally do JTAG the machine you find the data on said disk is permanently destroyed as you don't have a valid, recoverable encryption key and, by the way, all the data that was on said machine has already been stolen by the ****ing Chinese too.

Yes, we really are that stupid, and yes, now all firms fingered are denying it happened.  Let me give you my opinion on that: They're lying because, once again, there is never a consequence for lies by big corporations and their officers. Lies that can easily get your nation reduced to ash should be punishable by public hanging for said officers and the complete financial destruction of the companies involved.

This sort of crap demands an immediate and full trade embargo along with a Treasury Bill bonfire on the South Lawn of the White House.  In addition it requires revocation of the corporate charters of every firm that was complicit in same and is trying to duck responsibility -- and are lying about it -- right damn now.

Yet you know damn well that exactly nothing of the sort will happen because nobody goes to prison in this country so long as your stock price goes up.

We all deserve to be nuked to ash for this blatant and outrageous stupidity and no, Trump is not doing a damn thing to put a stop to this, nor will he as it would instantly crash the market.  Not cause it to go down a bit, crash.


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2018-10-01 07:00 by Karl Denninger
in Corruption , 169 references
[Comments enabled]  

Trump is the swamp.

He just wants to use it on people he doesn't like.

WASHINGTON — In a rare retreat, President Trump on Friday reversed himself and said he was no longer demanding that documents related to the Russia investigation be immediately declassified and released to the public.

**** you Mr. President.

Oh, and for those who (still) support that turd that will not flush:


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2018-09-24 07:19 by Karl Denninger
in Corruption , 3140 references
[Comments enabled]  

I simply no longer care.

The actions of the Senate are beyond reprehensible at this point.  So are the actions of the USSC; Roberts and his Obamacare ruling, which was and remains blatantly unconstitutional (he re-wrote an unconstitutional fine into an unconstitutional direct tax, which nobody other than myself has pointed out for years despite it being black-letter in the Constitution!) should have been enough.

But I'm pretty tolerant, and had some hope.

I guess that's where this line came from..... it's real.

Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. 

But, at this point, we're there from my point of view.

No, I'm not reaching for a rifle.  It's worse than that actually, which is what in my view you ought to think about long and hard.

You see, it's not worth spending my life on this nation; what the Founders gave and spilled both blood and fortune for no longer exists.

The latest Kavanaugh fiasco is exactly what I'm talking about.  Avenetti (Stormy Daniels' lawyer) now is claiming that he has credible evidence that Kavanaugh and his buddies engaged in multiple, organized and premeditated gang rapes.  Actual rapes -- not "well, we both got drunk and slept together and then one of us didn't like it the next morning" sort of accusations (which are damnable claims to get to the bottom of when everyone's an adult and imbibed freely on their own -- and were all smashed) but actual premeditated gang-rape setups where the allegation is that Kavanaugh and his friends intentionally drugged or got women drunk and then attacked them serially.

That is the sort of thing you do 100 years for -- if it's true -- and you should do 100 years, after being castrated with a pair of tin snips.  And we're not talking about one event either; the claim is that there are multiple instances.

But here's the problem -- I'm supposed to believe the FBI did six background investigations of this guy during his career in public service over nearly 20 years and didn't find any evidence of any of this?


Either this is the most-damnable libel I've ever seen in public or it's true, the FBI "passed" him intentionally and he's been blackmailed since to do whatever certain people in the government want.

Either way this is the end of America.  If you can make this sort of claim and it's a lie, and by doing so derail someone's career, literally resulting in them being unemployable forever while doing irreparable damage to their family and children we no longer live in a nation that I respect nor does anyone have any duty to the rule of law ever, in any context, period -- as those who take such an action will ultimately wind up provoking a "since I'm ****ed through your outrageously false and malicious acts so are you, *******" type of response.  Maybe not this specific time, but you can bet on it happening -- and once that starts it won't stop.  Bosnia, here we come, and you don't need guns (not that the gang-bangers are short of them) -- a brick off the top of a 10 story building is more than enough.

If it's the truth then there are literally millions of Americans who have been screwed up the ass because Kavanaugh has ruled from the bench not on his beliefs, not on his analysis, but on the command of a corrupt government that has knowingly put him on the bench under blackmail.  In that case the United States has become no different than Saddam Hussein, Kim Jung-Un, Pol Pot or, for that matter, The Third Reich.

Yeah, it's that bad if in fact this allegation is true because if you believe this was one instance, that there's just one judge or official that the FBI has done this with you're dumber than a box of rocks.  It's all of them and, with certainty, virtually all of Congress and likely the White House too; Ellison anyone?  Feinstein and her "driver"?  Justice Roberts?  McConnell?  Grassley?  Schumer? Trump?  All of them folks.


Either way this nation isn't worth dying for any longer.  In fact, it's not worth anything at all and it's we the people who have allowed it to happen.

I no longer care if we get nuked in the morning and no, if it happens, I won't fight against whoever did it.

There's nothing left to fight for and we not only let it happen we still, to this minute of this day refuse to get off our ass and put a stop to it.  One man writing a blog won't do a damn thing nor will one person playing "nutjob"; 10 or 100 million getting off their ass and demanding a stop to all of it now would, but the fact is that nobody cares.

We, collectively as a nation, deserve what's not just coming, it's here today -- and those screaming "MAGA!" are in fact the worst of the intentionally complicit as we now have hard proof that Trump simply wants this power for himself.


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2015-09-20 07:00 by Karl Denninger
in Corruption , 570 references

I have written a number of articles related to various violent rage-monster style attacks over the years in this column; Newtown, Aurora Colorado and others.  These attacks, including others such as the infamous Columbine High School shoot-em-up-fest, have a common pair of thematic elements:

  • The assailants were all late adolescents or young adults.


  • They were all taking, or were just taking, a particular type of anti-depressant called an SSRI.

Correlation is not causation and the plural of anecdote is not data.  However, the lack of such rage-monster incidents among other age groups, when these drugs are prescribed across the spectrum of ages, is extremely curious -- and troubling.

Now we have data, in the form of two studies. The first deals with an infamous Glaxo study known as "329", which was related to the drug Paxil; the US brought criminal charges against GSK and ultimately a $3 billion fine for its marketing of the drug to children and adolescents -- an "off-label" use that cannot be marketed under US law and which GSK claimed was supported by "remarkable efficacy and safety" demonstrated by this particular study.

The problem lies in what was found when the study data was re-analyzed -- specifically:

But according to the RIAT team, the effect of paroxetine was not significantly different from placebo for any prespecified primary or secondary outcome measure.

In other words the drug did not work.

But it gets worse:

In the CSR, serious adverse events (defined as an event that “resulted in hospitalization, was associated with suicidal gestures, or was described by the treating physician as serious”) were reported in 11 patients in the paroxetine group, five in the imipramine group, and two in the placebo group.

In other words the rate of serious adverse events including suicidal gestures was more than five times higher in the group receiving the drug than those receiving placebo -- on a drug that didn't work.

Has this paper been retracted?  No.  Has anyone gone to jail for what certainly appears to be impossible to explain away as "accident" or even "ordinary negligence"?  No.  How many young people are dead as a result and why aren't the people responsible for this under indictment as accessories before the fact on negligent manslaughter charges?

But if you think that is bad then you're really going to like this -- which also bears on SSRIs:

From Swedish national registers we extracted information on 856,493 individuals who were prescribed SSRIs, and subsequent violent crimes during 2006 through 2009. We used stratified Cox regression analyses to compare the rate of violent crime while individuals were prescribed these medications with the rate in the same individuals while not receiving medication. Adjustments were made for other psychotropic medications. Information on all medications was extracted from the Swedish Prescribed Drug Register, with complete national data on all dispensed medications. Information on violent crime convictions was extracted from the Swedish national crime register. Using within-individual models, there was an overall association between SSRIs and violent crime convictions (hazard ratio [HR] = 1.19, 95% CI 1.08–1.32, p < 0.001, absolute risk = 1.0%). With age stratification, there was a significant association between SSRIs and violent crime convictions for individuals aged 15 to 24 y (HR = 1.43, 95% CI 1.19–1.73, p < 0.001, absolute risk = 3.0%). However, there were no significant associations in those aged 25–34 y (HR = 1.20, 95% CI 0.95–1.52, p = 0.125, absolute risk = 1.6%), in those aged 35–44 y (HR = 1.06, 95% CI 0.83–1.35, p = 0.666, absolute risk = 1.2%), or in those aged 45 y or older (HR = 1.07, 95% CI 0.84–1.35, p = 0.594, absolute risk = 0.3%).

Got that?

About 3% of the young people, that is, age 15-24, who were prescribed these drugs had a violent crime conviction that appears to be linked to them taking the drug -- a rate approximately double that of the next age cohort and double that of someone not consuming the drug at all.

There was no statistical increase, however, in older patients.

Considering the seriousness of violent offenses and the fact that this measures only convictions (and we know not everyone who does an evil thing gets caught or is convicted) this is an outrageous increase in risk, particularly when you combine it with the above study that appears to show that at least one of the drugs in this class is not effective in patients in this age group -- that is, it doesn't work.

So we have here a drug that appears, from these studies, to literally provide no benefit but it does create a material number of rage monsters.

Further, that the drug was worthless in terms of efficacy and was also dangerous was known long ago.

Oh, and it makes the companies that produce these drugs and the physicians that prescribe them billions of dollars too.

Exactly why aren't all of the executives associated with this and those who put together and published the original studies under indictment as accessories before the fact for those who have committed suicide -- or homicide -- while on drugs that appear to be worthless for the condition prescribed?

Come talk to me about how wonderful our medical and judicial systems are and why anyone in America should have respect for either of them when everyone involved in this crap has been brought to justice.

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