Techno-Tyranny: How The US National Security State Is Using Coronavirus To Fulfill An Orwellian Vision

Posted on June 16, 2021 by Reid Mukai

Last year, a government commission called for the US to adopt an AI-driven mass surveillance system far beyond that used in any other country in order to ensure American hegemony in artificial intelligence. Now, many of the “obstacles” they had cited as preventing its implementation are rapidly being removed under the guise of combating the coronavirus crisis.

By Whitney Webb

Source: Unlimited Hangout

Last year, a U.S. government body dedicated to examining how artificial intelligence can “address the national security and defense needs of the United States” discussed in detail the “structural” changes that the American economy and society must undergo in order to ensure a technological advantage over China, according to a recent document acquired through a FOIA request. This document suggests that the U.S. follow China’s lead and even surpass them in many aspects related to AI-driven technologies, particularly their use of mass surveillance. This perspective clearly clashes with the public rhetoric of prominent U.S. government officials and politicians on China, who have labeled the Chinese government’s technology investments and export of its surveillance systems and other technologies as a major “threat” to Americans’ “way of life.”

In addition, many of the steps for the implementation of such a program in the U.S., as laid out in this newly available document, are currently being promoted and implemented as part of the government’s response to the current coronavirus (Covid-19) crisis. This likely due to the fact that many members of this same body have considerable overlap with the taskforces and advisors currently guiding the government’s plans to “re-open the economy” and efforts to use technology to respond to the current crisis.

The FOIA document, obtained by the Electronic Privacy Information Center (EPIC), was produced by a little-known U.S. government organization called the National Security Commission on Artificial Intelligence (NSCAI). It was created by the 2018 National Defense Authorization Act (NDAA) and its official purpose is “to consider the methods and means necessary to advance the development of artificial intelligence (AI), machine learning, and associated technologies to comprehensively address the national security and defense needs of the United States.”

The NSCAI is a key part of the government’s response to what is often referred to as the coming “fourth industrial revolution,” which has been described as “a revolution characterized by discontinuous technological development in areas like artificial intelligence (AI), big data, fifth-generation telecommunications networking (5G), nanotechnology and biotechnology, robotics, the Internet of Things (IoT), and quantum computing.”

However, their main focus is ensuring that “the United States … maintain a technological advantage in artificial intelligence, machine learning, and other associated technologies related to national security and defense.” The vice-chair of NSCAI, Robert Work – former Deputy Secretary of Defense and senior fellow at the hawkish Center for a New American Security (CNAS), described the commission’s purpose as determining “how the U.S. national security apparatus should approach artificial intelligence, including a focus on how the government can work with industry to compete with China’s ‘civil-military fusion’ concept.”

The recently released NSCAI document is a May 2019 presentation entitled “Chinese Tech Landscape Overview.” Throughout the presentation, the NSCAI promotes the overhaul of the U.S. economy and way of life as necessary for allowing the U.S. to ensure it holds a considerable technological advantage over China, as losing this advantage is currently deemed a major “national security” issue by the U.S. national security apparatus. This concern about maintaining a technological advantage can be seen in several other U.S. military documents and think tank reports, several of which have warned that the U.S.’ technological advantage is quickly eroding.

The U.S. government and establishment media outlets often blame alleged Chinese espionage or the Chinese government’s more explicit partnerships with private technology companies in support of their claim that the U.S. is losing this advantage over China. For instance, Chris Darby, the current CEO of the CIA’s In-Q-Tel, who is also on the NSCAI, told CBS News last year that China is the U.S.’ main competitor in terms of technology and that U.S. privacy laws were hampering the U.S.’ capacity to counter China in this regard, stating that:

“[D]ata is the new oil. And China is just awash with data. And they don’t have the same restraints that we do around collecting it and using it, because of the privacy difference between our countries. This notion that they have the largest labeled data set in the world is going to be a huge strength for them.”

In another example, Michael Dempsey – former acting Director of National Intelligence and currently a government-funded fellow at the Council on Foreign Relations – argued in The Hill that:

“It’s quite clear, though, that China is determined to erase our technological advantage, and is committing hundreds of billions of dollars to this effort. In particular, China is determined to be a world leader in such areas as artificial intelligence, high performance computing, and synthetic biology. These are the industries that will shape life on the planet and the military balance of power for the next several decades.”

In fact, the national security apparatus of the United States is so concerned about losing a technological edge over China that the Pentagon recently decided to join forces directly with the U.S. intelligence community in order “to get in front of Chinese advances in artificial intelligence.” This union resulted in the creation of the Joint Artificial Intelligence Center (JAIC), which ties together “the military’s efforts with those of the Intelligence Community, allowing them to combine efforts in a breakneck push to move government’s AI initiatives forward.” It also coordinates with other government agencies, industry, academics, and U.S. allies. Robert Work, who subsequently became the NSCAI vice-chair, said at the time that JAIC’s creation was a “welcome first step in response to Chinese, and to a lesser extent, Russian, plans to dominate these technologies.”

Similar concerns about “losing” technological advantage to China have also been voiced by the NSCAI chairman, Eric Schmidt, the former head of Alphabet – Google’s parent company, who argued in February in the New York Times that Silicon Valley could soon lose “the technology wars” to China if the U.S. government doesn’t take action. Thus, the three main groups represented within the NSCAI – the intelligence community, the Pentagon and Silicon Valley – all view China’s advancements in AI as a major national security threat (and in Silicon Valley’s case, threat to their bottom lines and market shares) that must be tackled quickly.

Targeting China’s “adoption advantage”

In the May 2019 “Chinese Tech Landscape Overview” presentation, the NSCAI discusses that, while the U.S. still leads in the “creation” stage of AI and related technologies, it lags behind China in the “adoption” stage due to “structural factors.” It says that “creation”, followed by “adoption” and “iteration” are the three phases of the “life cycle of new tech” and asserts that failing to dominate in the “adoption” stage will allow China to “leapfrog” the U.S. and dominate AI for the foreseeable future.

The presentation also argues that, in order to “leapfrog” competitors in emerging markets, what is needed is not “individual brilliance” but instead specific “structural conditions that exist within certain markets.” It cites several case studies where China is considered to be “leapfrogging” the U.S. due to major differences in these “structural factors.” Thus, the insinuation of the document (though not directly stated) is that the U.S. must alter the “structural factors” that are currently responsible for its lagging behind China in the “adoption” phase of AI-driven technologies.

Chief among the troublesome “structural factors” highlighted in this presentation are so-called “legacy systems” that are common in the U.S. but much less so in China. The NSCAI document states that examples of “legacy systems” include a financial system that still utilizes cash and card payments, individual car ownership and even receiving medical attention from a human doctor. It states that, while these “legacy systems” in the US are “good enough,” too many “good enough” systems “hinder the adoption of new things,” specifically AI-driven systems.

Another structural factor deemed by the NSCAI to be an obstacle to the U.S.’ ability to maintain a technological advantage over China is the “scale of the consumer market,” arguing that “extreme urban density = on-demand service adoption.” In other words, extreme urbanization results in more people using online or mobile-based “on-demand” services, ranging from ride-sharing to online shopping. It also cites the use of mass surveillance on China’s “huge population base” is an example of how China’s “scale of consumer market” advantage allowing “China to leap ahead” in the fields of related technologies, like facial recognition.

In addition to the alleged shortcomings of the U.S.’ “legacy systems” and lack of “extreme urban density,” the NSCAI also calls for more “explicit government support and involvement” as a means to speed up the adoption of these systems in the U.S. This includes the government lending its stores of data on civilians to train AI, specifically citing facial recognition databases, and mandating that cities be “re-architected around AVs [autonomous vehicles],” among others. Other examples given include the government investing large amounts of money in AI start-ups and adding tech behemoths to a national, public-private AI taskforce focused on smart city-implementation (among other things).

With regards to the latter, the document says “this level of public-private cooperation” in China is “outwardly embraced” by the parties involved, with this “serving as a stark contrast to the controversy around Silicon Valley selling to the U.S. government.” Examples of such controversy, from the NSCAI’s perspective, likely include Google employees petitioning to end the Google-Pentagon “Project Maven,” which uses Google’s AI software to analyze footage captured by drones. Google eventually chose not to renew its Maven contract as a result of the controversy, even though top Google executives viewed the project as a “golden opportunity” to collaborate more closely with the military and intelligence communities.

The document also defines another aspect of government support as the “clearing of regulatory barriers.” This term is used in the document specifically with respect to U.S. privacy laws, despite the fact that the U.S. national security state has long violated these laws with near complete impunity. However, the document seems to suggest that privacy laws in the U.S. should be altered so that what the U.S. government has done “in secret” with private citizen data can be done more openly and more extensively. The NSCAI document also discusses the removal of “regulatory barriers” in order to speed up the adoption of self-driving cars, even though autonomous driving technology has resulted in several deadly and horrific car accidents and presents other safety concerns.

Also discussed is how China’s “adoption advantage” will “allow it to leapfrog the U.S.” in several new fields, including “AI medical diagnosis” and “smart cities.” It then asserts that “the future will be decided at the intersection of private enterprise and policy leaders between China and the U.S.” If this coordination over the global AI market does not occur, the document warns that “we [the U.S.] risk being left out of the discussions where norms around AI are set for the rest of our lifetimes.”

The presentation also dwells considerably on how “the main battleground [in technology] are not the domestic Chinese and US markets,” but what it refers to as the NBU (next billion users) markets, where it states that “Chinese players will aggressively challenge Silicon Valley.” In order to challenge them more successfully, the presentation argues that, “just like we [view] the market of teenagers as a harbinger for new trends, we should look at China.”

The document also expresses concerns about China exporting AI more extensively and intensively than the U.S., saying that China is “already crossing borders” by helping to build facial databases in Zimbabwe and selling image recognition and smart city systems to Malaysia. If allowed to become “the unambiguous leader in AI,” it says that “China could end up writing much of the rulebook of international norms around the deployment of AI” and that it would “broaden China’s sphere of influence amongst an international community that increasingly looks to the pragmatic authoritarianism of China and Singapore as an alternative to Western liberal democracy.”

What will replace the US’ “legacy systems”?

Given that the document makes it quite clear that “legacy systems” in the U.S. are impeding its ability to prevent China from “leapfrogging” ahead in AI and then dominating it for the foreseeable future, it is also important to examine what the document suggests should replace these “legacy systems” in the U.S.

As previously mentioned, one “legacy system” cited early on in the presentation is the main means of payment for most Americans, cash and credit/debit cards. The presentation asserts, in contrast to these “legacy systems” that the best and most advanced system is moving entirely to smartphone-based digital wallets.

It notes specifically the main mobile wallet provider in India, PayTM, is majority owned by Chinese companies. It quotes an article, which states that “a big break came [in 2016] when India canceled 86% of currency in circulation in an effort to cut corruption and bring more people into the tax net by forcing them to use less cash.” At the time, claims that India’s 2016 “currency reform” would be used as a stepping stone towards a cashless society were dismissed by some as “conspiracy theory.” However, last year, a committee convened by India’s central bank (and led by an Indian tech oligarch who also created India’s massive civilian biometric database) resulted in the Indian government’s “Cashless India” program.

Regarding India’s 2016 “currency reform,” the NSCAI document then asserts that “this would be unfathomable in the West. And unsurprisingly, when 86% of the cash got cancelled and nobody had a credit card, mobile wallets in India exploded, laying the groundwork for a far more advanced payments ecosystem in India than the US.” However, it has become increasingly less unfathomable in light of the current coronavirus crisis, which has seen efforts to reduce the amount of cash used because paper bills may carry the virus as well as efforts to introduce a Federal Reserve-backed “digital dollar.”

In addition, the NSCAI document from last May calls for the end of in-person shopping and promotes moving towards all shopping being performed online. It argues that “American companies have a lot to gain by adopting ideas from Chinese companies” by shifting towards exclusive e-commerce purchasing options. It states that only shopping online provides a “great experience” and also adds that “when buying online is literally the only way to get what you want, consumers go online.”

Another “legacy system” that the NSCAI seeks to overhaul is car ownership, as it promotes autonomous, or self-driving vehicles and further asserts that “fleet ownership > individual ownership.” It specifically points to a need for “a centralized ride-sharing network,” which it says “is needed to coordinate cars to achieve near 100% utilization rates.” However, it warns against ride-sharing networks that “need a human operator paired with each vehicle” and also asserts that “fleet ownership makes more sense” than individual car ownership. It also specifically calls for these fleets to not only be composed of self-driving cars, but electric cars and cites reports that China “has the world’s most aggressive electric vehicle goals….and seek[s] the lead in an emerging industry.”

The document states that China leads in ride-sharing today even though ride-sharing was pioneered first in the U.S. It asserts once again that the U.S. “legacy system” of individual car ownership and lack of “extreme urban density” are responsible for China’s dominance in this area. It also predicts that China will “achieve mass autonomous [vehicle] adoption before the U.S.,” largely because “the lack of mass car ownership [in China] leads to far more consumer receptiveness to AVs [autonomous vehicles].” It then notes that “earlier mass adoption leads to a virtuous cycle that allows Chinese core self-driving tech to accelerate beyond [its] Western counterparts.”

In addition to their vision for a future financial system and future self-driving transport system, the NSCAI has a similarly dystopian vision for surveillance. The document calls mass surveillance “one of the ‘first-and-best customers’ for AI” and “a killer application for deep learning.” It also states that “having streets carpeted with cameras is good infrastructure.”

It then discusses how “an entire generation of AI unicorn” companies are “collecting the bulk of their early revenue from government security contracts” and praises the use of AI in facilitating policing activities. For instance, it lauds reports that “police are making convictions based on phone calls monitored with iFlyTek’s voice-recognition technology” and that “police departments are using [AI] facial recognition tech to assist in everything from catching traffic law violators to resolving murder cases.”

On the point of facial recognition technology specifically, the NSCAI document asserts that China has “leapt ahead” of the US on facial recognition, even though “breakthroughs in using machine learning for image recognition initially occurred in the US.” It claims that China’s advantage in this instance is because they have government-implemented mass surveillance (“clearing of regulatory barriers”), enormous government-provided stores of data (“explicit government support”) combined with private sector databases on a huge population base (“scale of consumer market”). As a consequence of this, the NSCAI argues, China is also set to leap ahead of the U.S. in both image/facial recognition and biometrics.

The document also points to another glaring difference between the U.S. and its rival, stating that: “In the press and politics of America and Europe, Al is painted as something to be feared that is eroding privacy and stealing jobs. Conversely, China views it as both a tool for solving major macroeconomic challenges in order to sustain their economic miracle, and an opportunity to take technological leadership on the global stage.”

The NSCAI document also touches on the area of healthcare, calling for the implementation of a system that seems to be becoming reality thanks to the current coronavirus crisis. In discussing the use of AI in healthcare (almost a year before the current crisis began), it states that “China could lead the world in this sector” and “this could lead to them exporting their tech and setting international norms.” One reason for this is also that China has “far too few doctors for the population” and calls having enough doctors for in-person visits a “legacy system.” It also cited U.S. regulatory measures such as “HIPPA compliance and FDA approval” as obstacles that don’t constrain Chinese authorities.

More troubling, it argues that “the potential impact of government supplied data is even more significant in biology and healthcare,” and says it is likely that “the Chinese government [will] require every single citizen to have their DNA sequenced and stored in government databases, something nearly impossible to imagine in places as privacy conscious as the U.S. and Europe.” It continues by saying that “the Chinese apparatus is well-equipped to take advantage” and calls these civilian DNA databases a “logical next step.”

Who are the NSCAI?

Given the sweeping changes to the U.S. that the NSCAI promoted in this presentation last May, it becomes important to examine who makes up the commission and to consider their influence over U.S. policy on these matters, particularly during the current crisis. As previously mentioned, the chairman of the NSCAI is Eric Schmidt, the former head of Alphabet (Google’s parent company) who has also invested heavily in Israeli intelligence-linked tech companies including the controversial start-up “incubator” Team8. In addition, the committee’s vice-chair is Robert Work, is not only a former top Pentagon official, but is currently working with the think tank CNAS, which is run by John McCain’s long-time foreign policy adviser and Joe Biden’s former national security adviser.

Other members of the NSCAI are as follows:

Safra Catz, CEO of Oracle, with close ties to Trump’s top donor Sheldon Adelson
Steve Chien, supervisor of the Artificial Intelligence Group at Caltech’s Jet Propulsion Lab
Mignon Clyburn, Open Society Foundation fellow and former FCC commissioner
Chris Darby, CEO of In-Q-Tel (CIA’s venture capital arm)
Ken Ford, CEO of the Florida Institute for Human and Machine Cognition
Jose-Marie Griffiths, president of Dakota State University and former National Science Board member
Eric Horvitz, director of Microsoft Research Labs
Andy Jassy, CEO of Amazon Web Services (CIA contractor)
Gilman Louie, partner at Alsop Louie Partners and former CEO of In-Q-Tel
William Mark, director of SRI International and former Lockheed Martin director
Jason Matheny, director of the Center for Security and Emerging Technology, former Assistant director of National Intelligence and former director of IARPA (Intelligence Advanced Research Project Agency)
Katharina McFarland, consultant at Cypress International and former Assistant Secretary of Defense for Acquisition
Andrew Moore, head of Google Cloud AI

As can be seen in the list above, there is a considerable amount of overlap between the NSCAI and the companies currently advising the White House on “re-opening” the economy (Microsoft, Amazon, Google, Lockheed Martin, Oracle) and one NSCAI member, Oracle’s Safra Katz, is on the White House’s “economic revival” taskforce. Also, there is also overlap between the NSCAI and the companies that are intimately involved in the implementation of the “contact tracing” “coronavirus surveillance system,” a mass surveillance system promoted by the Jared Kushner-led, private-sector coronavirus task force. That surveillance system is set to be constructed by companies with deep ties to Google and the U.S. national security state, and both Google and Apple, who create the operating systems for the vast majority of smartphones used in the U.S., have said they will now build that surveillance system directly into their smartphone operating systems.

Also notable is the fact that In-Q-Tel and the U.S. intelligence community has considerable representation on the NSCAI and that they also boast close ties with Google, Palantir and other Silicon Valley giants, having been early investors in those companies. Both Google and Palantir, as well as Amazon (also on the NSCAI) are also major contractors for U.S. intelligence agencies. In-Q-Tel’s involvement on the NSCAI is also significant because they have been heavily promoting mass surveillance of consumer electronic devices for use in pandemics for the past several years. Much of that push has come from In-Q-Tel’s current Executive Vice President Tara O’Toole, who was previously the director of the Johns Hopkins Center for Health Security and also co-authored several controversial biowarfare/pandemic simulations, such as Dark Winter.

In addition, since at least January, the U.S. intelligence community and the Pentagon have been at the forefront of developing the U.S. government’s still-classified “9/11-style” response plans for the coronavirus crisis, alongside the National Security Council. Few news organizations have noted that these classified response plans, which are set to be triggered if and when the U.S. reaches a certain number of coronavirus cases, has been created largely by elements of the national security state (i.e. the NSC, Pentagon, and intelligence), as opposed to civilian agencies or those focused on public health issues.

Furthermore, it has been reported that the U.S. intelligence community as well as U.S. military intelligence knew by at least January (though recent reports have said as early as last November) that the coronavirus crisis would reach “pandemic proportions” by March. The American public were not warned, but elite members of the business and political classes were apparently informed, given the record numbers of CEO resignations in January and several high-profile insider trading allegations that preceded the current crisis by a matter of weeks.

Perhaps even more disconcerting is the added fact that the U.S. government not only participated in the eerily prescient pandemic simulation last October known as Event 201, it also led a series of pandemic response simulations last year. Crimson Contagion was a series of four simulations that involved 19 U.S. federal agencies, including intelligence and the military, as well as 12 different states and a host of private sector companies that simulated a devastating pandemic influenza outbreak that had originated in China. It was led by the current HHS Assistant Secretary for Preparedness and Response, Robert Kadlec, who is a former lobbyist for military and intelligence contractors and a Bush-era homeland security “bioterrorism” advisor.

In addition, both Kadlec and the Johns Hopkins Center for Health Security, which was intimately involved in Event 201, have direct ties to the controversial June 2001 biowarfare exercise “Dark Winter,” which predicted the 2001 anthrax attacks that transpired just months later in disturbing ways. Though efforts by media and government were made to blame the anthrax attacks on a foreign source, the anthrax was later found to have originated at a U.S. bioweapons lab and the FBI investigation into the case has been widely regarded as a cover-up, including by the FBI’s once-lead investigator on that case.

Given the above, it is worth asking if those who share the NSCAI’s vision saw the coronavirus pandemic early on as an opportunity to make the “structural changes” it had deemed essential to countering China’s lead in the mass adoption of AI-driven technologies, especially considering that many of the changes in the May 2019 document are now quickly taking place under the guise of combatting the coronavirus crisis.

The NSCAI’s vision takes shape

Though the May 2019 NSCAI document was authored nearly a year ago, the coronavirus crisis has resulted in the implementation of many of the changes and the removal of many of the “structural” obstacles that the commission argued needed to be drastically altered in order to ensure a technological advantage over China in the field of AI. The aforementioned move away from cash, which is taking place not just in the U.S. but internationally, is just one example of many.

For instance, earlier this week CNN reported that grocery stores are now considering banning in-person shopping and that the U.S. Department of Labor has recommended that retailers nationwide start “‘using a drive-through window or offering curbside pick-up’ to protect workers for exposure to coronavirus.” In addition, last week, the state of Florida approved an online-purchase plan for low income families using the Supplemental Nutrition Assistance Program (SNAP). Other reports have argued that social distancing inside grocery stores is ineffective and endangering people’s lives. As previously mentioned, the May 2019 NSCAI document argues that moving away from in-person shopping is necessary to mitigate China’s “adoption advantage” and also argued that “when buying online is literally the only way to get what you want, consumers go online.”

Reports have also argued that these changes in shopping will last far beyond coronavirus, such as an article by Business Insider entitled “The coronavirus pandemic is pushing more people online and will forever change how Americans shop for groceries, experts say.” Those cited in the piece argue that this shift away from in-person shopping will be “permanent” and also states that “More people are trying these services than otherwise would have without this catalyst and gives online players a greater chance to acquire and keep a new customer base.” A similar article in Yahoo! News argues that, thanks to the current crisis, “our dependence on online shopping will only rise because no one wants to catch a virus at a shop.”

In addition, the push towards the mass use of self-driving cars has also gotten a boost thanks to coronavirus, with driverless cars now making on-demand deliveries in California. Two companies, one Chinese-owned and the other backed by Japan’s SoftBank, have since been approved to have their self-driving cars used on California roads and that approval was expedited due to the coronavirus crisis. The CPO of Nuro Inc., the SoftBank-backed company, was quoted in Bloomberg as saying that “The Covid-19 pandemic has expedited the public need for contactless delivery services. Our R2 fleet is custom-designed to change the very nature of driving and the movement of goods by allowing people to remain safely at home while their groceries, medicines, and packages are brought to them.” Notably, the May 2019 NSCAI document references the inter-connected web of SoftBank-backed companies, particularly those backed by its largely Saudi-funded “Vision Fund,” as forming “the connective tissue for a global federation of tech companies” set to dominate AI.

California isn’t the only state to start using self-driving cars, as the Mayo Clinic of Florida is now also using them. “Using artificial intelligence enables us to protect staff from exposure to this contagious virus by using cutting-edge autonomous vehicle technology and frees up staff time that can be dedicated to direct treatment and care for patients,” Kent Thielen, M.D., CEO of Mayo Clinic in Florida stated in a recent press release cited by Mic.

Like the changes to in-person shopping in the age of coronavirus, other reports assert that self-driving vehicles are here to stay. One report published by Mashable is entitled “It took a coronavirus outbreak for self-driving cars to become more appealing,” and opens by stating “Suddenly, a future full of self-driving cars isn’t just a sci-fi pipe dream. What used to be considered a scary, uncertain technology for many Americans looks more like an effective tool to protect ourselves from a fast-spreading, infectious disease.” It further argues that this is hardly a “fleeting shift” in driving habits and one tech CEO cited in the piece, Anuja Sonalker of Steer Tech, claims that “There has been a distinct warming up to human-less, contactless technology. Humans are biohazards, machines are not.”

Another focus of the NSCAI presentation, AI medicine, has also seen its star rise in recent weeks. For instance, several reports have touted how AI-driven drug discovery platforms have been able to identify potential treatments for coronavirus. Microsoft, whose research lab director is on the NSCAI, recently put $20 million into its “AI for health” program to speed up the use of AI in analyzing coronavirus data. In addition, “telemedicine”– a form of remote medical care – has also become widely adopted due to the coronavirus crisis.

Several other AI-driven technologies have similarly become more widely adopted thanks to coronavirus, including the use of mass surveillance for “contact tracing” as well as facial recognition technology and biometrics. A recent Wall Street Journal report stated that the government is seriously considering both contact tracing via phone geolocation data and facial recognition technology in order to track those who might have coronavirus. In addition, private businesses – like grocery stores and restaurants – are using sensors and facial recognition to see how many people and which people are entering their stores.

As far as biometrics go, university researchers are now working to determine if “smartphones and biometric wearables already contain the data we need to know if we have become infected with the novel coronavirus.” Those efforts seek to detect coronavirus infections early by analyzing “sleep schedules, oxygen levels, activity levels and heart rate” based on smartphone apps like FitBit and smartwatches. In countries outside the U.S., biometric IDs are being touted as a way to track those who have and lack immunity to coronavirus.

In addition, one report in The Edge argued that the current crisis is changing what types of biometrics should be used, asserting that a shift towards thermal scanning and facial recognition is necessary:

“At this critical juncture of the crisis, any integrated facial recognition and thermal scanning solution must be implemented easily, rapidly and in a cost-effective manner. Workers returning to offices or factories must not have to scramble to learn a new process or fumble with declaration forms. They must feel safe and healthy for them to work productively. They just have to look at the camera and smile. Cameras and thermal scanners, supported by a cloud-based solution and the appropriate software protocols, will do the rest.”

Also benefiting from the coronavirus crisis is the concept of “smart cities,” with Forbes recently writing that “Smart cities can help us combat the coronavirus pandemic.” That article states that “Governments and local authorities are using smart city technology, sensors and data to trace the contacts of people infected with the coronavirus. At the same time, smart cities are also helping in efforts to determine whether social distancing rules are being followed.”

That article in Forbes also contains the following passage:

“…[T]he use of masses of connected sensors makes it clear that the coronavirus pandemic is–intentionally or not–being used as a testbed for new surveillance technologies that may threaten privacy and civil liberties. So aside from being a global health crisis, the coronavirus has effectively become an experiment in how to monitor and control people at scale.”

Another report in The Guardian states that “If one of the government takeaways from coronavirus is that ‘smart cities’ including Songdo or Shenzhen are safer cities from a public health perspective, then we can expect greater efforts to digitally capture and record our behaviour in urban areas – and fiercer debates over the power such surveillance hands to corporations and states.” There have also been reports that assert that typical cities are “woefully unprepared” to face pandemics compared to “smart cities.”

Yet, beyond many of the NSCAI’s specific concerns regarding mass AI adoption being conveniently resolved by the current crisis, there has also been a concerted effort to change the public’s perception of AI in general. As previously mentioned, the NSCAI had pointed out last year that:

“In the press and politics of America and Europe, Al is painted as something to be feared that is eroding privacy and stealing jobs. Conversely, China views it as both a tool for solving major macroeconomic challenges in order to sustain their economic miracle, and an opportunity to take technological leadership on the global stage.”

Now, less than a year later, the coronavirus crisis has helped spawn a slew of headlines in just the last few weeks that paint AI very differently, including “How Artificial Intelligence Can Help Fight Coronavirus,” “How AI May Prevent the Next Coronavirus Outbreak,” “AI Becomes an Ally in the Fight Against COVID-19,” “Coronavirus: AI steps up in battle against COVID-19,” and “Here’s How AI Can Help Africa Fight the Coronavirus,” among numerous others.

It is indeed striking how the coronavirus crisis has seemingly fulfilled the NSCAI’s entire wishlist and removed many of the obstacles to the mass adoption of AI technologies in the United States. Like major crises of the past, the national security state appears to be using the chaos and fear to promote and implement initiatives that would be normally rejected by Americans and, if history is any indicator, these new changes will remain long after the coronavirus crisis fades from the news cycle. It is essential that these so-called “solutions” be recognized for what they are and that we consider what type of world they will end up creating – an authoritarian technocracy. We ignore the rapid advance of these NSCAI-promoted initiatives and the phasing out of so-called “legacy systems” (and with them, many long-cherished freedoms) at our own peril.

Mass Distraction And Fake “V-Shaped” Recovery Provide Cover For The Fed Induced Crash

Posted on June 17, 2020 by Reid Mukai

By Brandon Smith

Source: Alt-Market.com

This article, originally titled ‘The Fed Just Got Cover For The Collapse Of The US Economy’, was written by Brandon Smith and first published at Birch Gold Group

The scapegoating has already started. In almost every sector of the economy that is collapsing, the claim is that “everything was fine until the pandemic happened”. From tumbling web news platforms to small businesses to major corporations, the coronavirus outbreak and the national riots will become the excuse for failure. The establishment will try to rewrite history and many people will go along with it because the truth makes them look bad.

And what is the truth? The truth is that the U.S. economy – and in some ways, the global economy – was already collapsing. The system’s dependency on ultra-low interest rates and central bank stimulus created perhaps the largest debt bubble in history – the Everything Bubble. And that bubble began imploding at the end of 2018, triggered primarily by the Federal Reserve raising rates and dumping its balance sheet into economic weakness, just like it did at the start of the Great Depression. Fed Chair Jerome Powell knew what would happen if this policy was initiated; he even warned about it in the minutes of the October 2012 Federal Open Market Committee, and yet once he became the head of the central bank, he did it anyway.

For a year leading up to the pandemic, the Fed was struggling to maintain and suppress a repo market liquidity crisis. National debt, corporate debt and consumer debt were at all-time highs. Companies were desperate for new stimulus, and they were getting crumbs from the Fed, rather than the tens of trillions that they needed just to stay afloat. The central bank had sabotaged the economy, but they had to keep it in a state of living death until they had a perfect cover event for the collapse. The pandemic and inevitable civil unrest do the job nicely.

What many people do not understand is that the Fed does not care about the economy. In fact, every Fed action since its inception in 1913 has led to the downfall of the U.S. The Fed is not a maintenance man trying to stave off collapse; the Fed is a suicide bomber willing to destroy everything including itself in order to serve a greater ideology.

Total global centralization is the goal, and every new disaster is exploited to this end by the establishment. “Order out of chaos” is the motto of the global elites; in other words, in every crisis there is “opportunity”. This crisis has been no different. Suggested solutions have ranged from the creation of a cashless society operating on a digital currency system, to permanent lockdowns in the name of stopping “global warming”, to a surveillance state and medical tyranny utilizing 24/7 tracking of citizens in order to “stop the spread of the virus”. But how does the establishment plan to get people to go along with such freedom-crushing policies?

The pandemic by itself is not enough. The George Floyd riots may be a motivator, but they might fizzle out over time. The real catalyst, as I have said for many years now, will be an ongoing economic crash. This crash, engineered in 2008, has been a long time coming. Everything that is happening today is an extension of what happened over a decade ago. That said, the current phase was set in motion in 2018, as noted above.

The virus and the lockdowns solidified the crash, and while some people including Trump are calling for a V-shaped recovery, this is not going to happen. Perhaps Trump is referring to stock markets artificially inflated by the Fed stimulus backstop? Is anyone gullible enough to believe the stock market represents the real economy? Because today’s jobs report from the BLS, despite all the hype, does not suggest V-shaped recovery to me. The US lost 40 million jobs in the span of 6 weeks. The BLS reports a gain of 2.5 million jobs in May as the country “reopened”. So, we are still down nearly 38 million jobs in the past couple months yet the BLS stats are being called “stunning” and a “sign of recovery”?

The assumption being made here I think is that job gains will now be constant each month from now on. I think not. I think the jobs that were gained in May are the peak, and every jobs report after today will disappoint. Here’s why…

The latest Fed models predict a GDP plunge of 52.8%, and the manner in which the Fed calculates GDP is actually rigged to the upside. It is difficult to predict the REAL fall in data, but we know it will likely be larger than 52%. Keep in mind that this crash is in the 2nd quarter, while the Fed pumped trillions into the system. What exactly did this money printing buy? Well, stock markets stabilized, but the rest of the economy didn’t, and stock market optimism isn’t going to last much longer either is there are renewed lockdowns.

The primary reason we now face a second Great Depression is because the small business sector has been destroyed. Small businesses are vital to the U.S. economy, representing around 50% of the job market. The closures resulted in around 40 million job losses in the past two months. Add that to the 95 million Americans that have been out of work but not counted by the BLS as unemployed – as well as the 11 million people that are counted – and you are looking at nearly 150 million working age people not generating an income.

The latest BLS jobs gains and the way they are being hyped by the media are suspicious to me. It seems as if the establishment is trying to convince the public that the pandemic will have no affect on the economy and that their jobs will simply be waiting for them after every new shutdown (as long as they adhere to the rules and restriction set up by state and federal governments).

But it’s only going to get worse from here on…

The public doesn’t realize it yet, but many of the businesses that shut down over the past couple months are not coming back. Sure, a lot of them will try to reopen, and there will be a last gasp of activity during the next month or two, but the levels of debt attached to these ventures was already high before the pandemic hit. The recent small business bailouts seemed as if they were designed to give people false hope. According to figures out of JP Morgan, of the 300,000 clients that applied for the small business aid, only 18,000 actually received any. And, of that 18,000, many were larger corporation, not small businesses.

Business sectors most affected include retail and service, which crashed a record 16.4% overall in April. Food service lost approximately 30% of sales. Electronics and appliances lost 60%. Clothing plunged 78%. Auto sales fell 33% in May, and the expected rebound after the reopening has been disappointing.

The businesses most likely to die first are those that had large debt obligations before the lockdowns, as well as those that received no bailout money. Even though companies like General Electric, Verizon, IBM and Tesla all have massive debt issues, they may be kept alive by government bailouts, at least for a time. Small businesses, on the other hand, appear to be slated for destruction.

In particular, I suspect most restaurants besides major chains will go into bankruptcy. Boutique stores and clothing outlets will run out of money fast. Movie theater chains will collapse. Car rental outlets will collapse. Tourism businesses will close en masse and tourism towns will suffer profit losses despite the “reopening” in some states. Larger companies, like airlines, will continue to decline, and they will have to diversify into other areas, such as shipping, in order to survive. The auto industry is not coming back any time soon.

In the case of restaurants, the social distancing requirements reduce the number of customers that they can seat at any given time. Restaurants were already suffering major declines before the pandemic, and while take-out venues might have seen an uptick because of the lockdowns, this will not last as people begin to run out of cash and start cooking at home.

The same goes for small boutique stores, which rely on consumers with expendable cash flows. Such consumers no longer exist, and notions of “extra cash” will disappear along with waning government checks. As for tourism, I think there will be some travel, as lockdown restrictions are partially lifted. Many people in the cities will try to get away for a week or two just to escape and feel normal for a little while. However, I also think mainstream economists are underestimating the number of people who will refuse to travel because of concerns about coming in contact with the coronavirus. Just as retail refuses to rebound, so will tourism profits.

Air travel is unlikely to improve for the same reasons. Social distancing makes airplane flights a losing investment as passenger capacity is reduced. New car sales will remain stagnant because people are traveling less, and the used car market is being stocked with product as average people sell off vehicles to get extra cash to make ends meet.

All of these factors result in long-term job losses and debt defaults for small businesses as well as some larger companies. Which means much higher poverty rates and further dependency on government welfare programs.

The real test for the public will come when lockdowns return. I realize that there is a bit of denial in the population when it comes to this idea. I see many people operating on the assumption that the “reopening” is a long-term situation. I assure you, it is not. As I have noted in many previous articles, the establishment intends to use what I call “wave theory”, or a cycle of shutdowns and openings over the span of a year or longer. There WILL be new lockdowns, if not in the name of a resurgence in COVID infections, it will be in the name of stopping the national riots.

The response from the American people will be critical here. Will we support further lockdowns or martial law, even though the measures would harm us economically? Or will the public resist? Will the political left embrace a second lockdown in the face of further infection spikes? Will conservatives embrace lockdowns in the face of leftist protests and riots? Both sides of the political spectrum are being tempted with the use of a totalitarian government response in order to ensure their personal “safety”.

People must be made to understand the reality of our situation: the economy has already been undermined and this threat is far greater than either the virus or the riots. This is the danger that is being hidden by the pandemic and civil unrest distractions, and it is a threat that the government has no means or intention of saving us from. We must save ourselves, and doing that requires preparation and acceptance that the world is changed.

Who Profits from the Pandemic?

Posted on April 22, 2020 by Reid Mukai

West Virginia National Guard members reporting to a Charleston nursing home to assist with Covid-19 testing. April 6, 2020. (U.S. Army National Guard, Edwin L. Wriston)

By Pepe Escobar

Source: Consortium News

You don’t need to read Michel Foucault’s work on biopolitics to understand that neoliberalism – in deep crisis since at least 2008 – is a control/governing technique in which surveillance capitalism is deeply embedded.

But now, with the world-system collapsing at breathtaking speed, neoliberalism is at a loss to deal with the next stage of dystopia, ever present in our hyper-connected angst: global mass unemployment.

Henry Kissinger, anointed oracle/gatekeeper of the ruling class, is predictably scared. He claims that, “sustaining the public trust is crucial to social solidarity.” He’s convinced the Hegemon should “safeguard the principles of the liberal world order.” Otherwise, “failure could set the world on fire.”

That’s so quaint. Public trust is dead across the spectrum. The liberal world “order” is now social Darwinist chaos. Just wait for the fire to rage.

The numbers are staggering. The Japan-based Asian Development Bank (ADB), in its annual economic report, may not have been exactly original. But it did note that the impact of the “worst pandemic in a century” will be as high as $4.1 trillion, or 4.8 percent of global GDP.

This an underestimation, as “supply disruptions, interrupted remittances, possible social and financial crises, and long-term effects on health care and education are excluded from the analysis.”

We cannot even start to imagine the cataclysmic social consequences of the crash. Entire sub-sectors of the global economy may not be recomposed at all.

The International Labor Organization (ILO) forecasts global unemployment at a conservative, additonal 24.7 million people – especially in aviation, tourism and hospitality.

The global aviation industry is a humongous $2.7 trillion business. That’s 3.6 percent of global GDP. It employs 2.7 million people. When you add air transport and tourism —everything from hotels and restaurants to theme parks and museums — it accounts for a minimum of 65.5 million jobs around the world.

According to the ILO, income losses for workers may range from $860 billion to an astonishing $3.4 trillion. “Working poverty” will be the new normal – especially across the Global South.

“Working poor,” in ILO terminology, means employed people living in households with a per capita income below the poverty line of $2 a day. As many as an additional 35 million people worldwide will become working poor in 2020.

Switching to feasible perspectives for global trade, it’s enlightening to examine that this report about how the economy may rebound is centered on the notorious hyperactive merchants and traders of Yiwu in eastern China – the world’s busiest small-commodity, business hub.

Their experience spells out a long and difficult recovery. As the rest of the world is in a coma, Lu Ting, chief China economist at Nomura in Hong Kong stresses that China faces a 30 percent decline in external demand at least until next Fall.

Neoliberalism in Reverse?

In the next stage, the strategic competition between the U.S. and China will be no-holds-barred, as emerging narratives of China’s new, multifaceted global role – on trade, technology, cyberspace, climate change – will set in, even more far-reaching than the New Silk Roads. That will also be the case in global public health policies. Get ready for an accelerated Hybrid War between the “Chinese virus” narrative and the Health Silk Road.

The latest report by the China Institute of International Studies would be quite helpful for the West — hubris permitting — to understand how Beijing adopted key measures putting the health and safety of the general population first.

Now, as the Chinese economy slowly picks up, hordes of fund managers from across Asia are tracking everything from trips on the metro to noodle consumption to preview what kind of economy may emerge post-lockdown.

In contrast, across the West, the prevailing doom and gloom elicited a priceless editorial from The Financial Times. Like James Brown in the 1980s Blues Brothers pop epic, the City of London seems to have seen the light, or at least giving the impression it really means it. Neoliberalism in reverse. New social contract. “Secure” labor markets. Redistribution.

Cynics won’t be fooled. The cryogenic state of the global economy spells out a vicious Great Depression 2.0 and an unemployment tsunami. The plebs eventually reaching for the pitchforks and the AR-15s en masse is now a distinct possibility. Might as well start throwing a few breadcrumbs to the beggars’ banquet.

That may apply to European latitudes. But the American story is in a class by itself.

For decades, we were led to believe that the world-system put in place after WWII provided the U.S. with unrivalled structural power. Now, all that’s left is structural fragility, grotesque inequalities, unpayable Himalayas of debt, and a rolling crisis.

No one is fooled anymore by the Fed’s magic quantitative easing powers, or the acronym salad – TALF, ESF, SPV – built into the Fed/U.S. Treasury exclusive obsession with big banks, corporations and the Goddess of the Market, to the detriment of the average American.

It was only a few months ago that a serious discussion evolved around the $2.5 quadrillion derivatives market imploding and collapsing the global economy, based on the price of oil skyrocketing, in case the Strait of Hormuz – for whatever reason – was shut down.

Now it’s about Great Depression 2.0: the whole system crashing as a result of the shutdown of the global economy. The questions are absolutely legitimate: is the political and social cataclysm of the global economic crisis arguably a larger catastrophe than Covid-19 itself? And will it provide an opportunity to end neoliberalism and usher in a more equitable system, or something even worse?

‘Transparent’ BlackRock

Wall Street, of course, lives in an alternative universe. In a nutshell, Wall Street turned the Fed into a hedge fund. The Fed is going to own at least two thirds of all U.S. Treasury bills in the market before the end of 2020.

The U.S. Treasury will be buying every security and loan in sight while the Fed will be the banker – financing the whole scheme.

So essentially this is a Fed/Treasury merger. A behemoth dispensing loads of helicopter money.

And the winner is BlackRock—the biggest money manager on the planet, with tentacles everywhere, managing the assets of over 170 pension funds, banks, foundations, insurance companies, in fact a great deal of the money in private equity and hedge funds. BlackRock — promising to be fully “transparent” — will buy these securities and manage those dodgy SPVs on behalf of the Treasury.

BlackRock, founded in 1988 by Larry Fink, may not be as big as Vanguard, but it’s the top investor in Goldman Sachs, along with Vanguard and State Street, and with $6.5 trillion in assets, bigger than Goldman Sachs, JP Morgan and Deutsche Bank combined.

Now, BlackRock is the new operating system (OS) of the Fed and the Treasury. The world’s biggest shadow bank – and no, it’s not Chinese.

Compared to this high-stakes game, mini-scandals such as the one around Georgia Senator Kelly Loffler are peanuts. Loffler allegedly profited from inside information on Covid-19 by the CDC to make a stock market killing. Loffler is married to Jeffrey Sprecher – who happens to be the chairman of the NYSE, installed by Goldman Sachs.

While corporate media followed this story like headless chickens, post-Covid-19 plans, in Pentagon parlance, “move forward” by stealth.

The price? A meager $1,200 check per person for a month. Anyone knows that, based on median salary income, a typical American family would need $12,000 to survive for two months. Treasury Secretary Steven Mnuchin, in an act of supreme effrontry, allows them a mere 10 percent of that. So American taxpayers will be left with a tsunami of debt while selected Wall Street players grab the whole loot, part of an unparalleled transfer of wealth upwards, complete with bankruptcies en masse of small and medium businesses.

Fink’s letter to his shareholders almost gives the game away: “I believe we are on the edge of a fundamental reshaping of finance.”

And right on cue, he forecasted that, “in the near future – and sooner than most anticipate – there will be a significant reallocation of capital.”

He was referring, then, to climate change. Now that refers to Covid-19.

Implant Our Nanochip, Or Else?

The game ahead for the elites, taking advantage of the crisis, might well contain these four elements: a social credit system, mandatory vaccination, a digital currency and a Universal Basic Income (UBI). This is what used to be called, according to the decades-old, time-tested CIA playbook, a “conspiracy theory.” Well, it might actually happen.

A social credit system is something that China set up already in 2014. Before the end of 2020, every Chinese citizen will be assigned his/her own credit score – a de facto “dynamic profile”, elaborated with extensive use of AI and the internet of things (IoT), including ubiquitous facial recognition technology. This implies, of course, 24/7 surveillance, complete with Blade Runner-style roving robotic birds.

The U.S., the U.K., France, Germany, Canada, Russia and India may not be far behind. Germany, for instance, is tweaking its universal credit rating system, SCHUFA. France has an ID app very similar to the Chinese model, verified by facial recognition.

Mandatory vaccination is Bill Gates’s dream, working in conjunction with the WHO, the World Economic Forum (WEF) and Big Pharma. He wants “billions of doses” to be enforced over the Global South. And it could be a cover to everyone getting a digital implant.

Here it is, in his own words. At 34:15: “Eventually what we’ll have to have is certificates of who’s a recovered person, who’s a vaccinated person…Because you don’t want people moving around the world where you’ll have some countries that won’t have it under control, sadly. You don’t want to completely block off the ability for people to go there and come back and move around.”

Then comes the last sentence which was erased from the official TED video. This was noted by Rosemary Frei, who has a master on molecular biology and is an independent investigative journalist in Canada. Gates says: “So eventually there will be this digital immunity proof that will help facilitate the global reopening up.”

This “digital immunity proof” is crucial to keep in mind, something that could be misused by the state for nefarious purposes.

The three top candidates to produce a coronavirus vaccine are American biotech firm Moderna, as well as Germans CureVac and BioNTech.

Digital cash might then become an offspring of blockchain. Not only the U.S., but China and Russia are also interested in a national crypto-currency. A global currency – of course controlled by central bankers – may soon be adopted in the form of a basket of currencies, and would circulate virtually. Endless permutations of the toxic cocktail of IoT, blockchain technology and the social credit system could loom ahead.

Already Spain has announced that it is introducing UBI, and wants it to be permanent. It’s a form insurance for the elite against social uprisings, especially if millions of jobs never come back.

So the key working hypothesis is that Covid-19 could be used as cover for the usual suspects to bring in a new digital financial system and a mandatory vaccine with a “digital identity” nanochip with dissent not tolerated: what Slavoj Zizek calls the “erotic dream” of every totalitarian government.

Yet underneath it all, amid so much anxiety, a pent-up rage seems to be gathering strength, to eventually explode in unforeseeable ways. As much as the system may be changing at breakneck speed, there’s no guarantee even the 0.1 percent will be safe.

No Need To Wait – Dystopia Is Almost Upon Us

Posted on May 31, 2018 by Reid Mukai

Source: TruePublica

Microsoft’s CEO has warned the technology industry against creating a dystopian future, the likes of which have been predicted by authors including George Orwell and Aldous Huxley. Satya Nadella kicked off the the company’s 2017 Build conference with a keynote that was as unexpected as it was powerful. He told the developers in attendance that they have a huge responsibility, and that the choices they make could have enormous implications.

They won’t listen of course. The collection of big data along with management, selling and distribution and the systems architecture to control it is now worth exactly double global military defence expenditure. In fact, this year, the big data industry overtook the worlds most valuable traded commodity – oil.

The truth is that the tech giants have already captured us all. We are already living in the beginnings of a truly dystopian world.

Leaving aside the endemic surveillance society our government has chosen on our behalf with no debate, politically or otherwise, we already have proof of the now and where it is leading. With fingerprint scanning, facial recognition, various virtual wallets to pay for deliveries, some would say your identity is as good as stolen. If it isn’t, it soon will be. That’s because the hacking industry, already worth a mind blowing $1trillion annually is expected to reach $2.1 trillion in just 14 months time.

The reality of not being able to take public transportation, hire a car, buy a book, or a coffee – requiring full personal identification is almost upon us. Britain even had an intention to be completely cashless by 2025 – postponed only by the impact of Brexit.

Alexa, the Amazon home assistant listens to everything said in the house. It is known to record conversations. Recently, police in Arkansas, USA demanded that Amazon turn over information collected from a murder suspect’s Echo — the speaker that controls Alexa, because they already knew what information could be extracted from it.

32M is the first company in the US that provides a human chip, allowing employees “to make purchases in their break-room micro market, open doors, login to computers, use the copy machine.” 3M also confirmed what the chip could really do – telling employees to “use it as your passport, public transit and all purchasing opportunities.”

Various Apps now locate people you may know and your own location can be shared amongst others without your knowledge and we’ve known for years that governments and private corporations have access to this data, whether you like it not.

Other countries are providing even scarier technologies. Hypebeast Magazine reports that Aadhaar is a 12-digit identity number issued to all Indian residents based on their biometric and demographic data. “This data must be linked to their bank account or else they’ll face the risk of losing access to their account. Folks have until the end of the year to do this, with phone numbers soon to be connected through the 12 digits by February. Failure to do so will deactivate the service. ” The technology has the ability to refuse access to state supplied services such as healthcare.

Our article “Insurance Industry Leads The Way in Social Credit Systems” also highlights what the fusion of technology and data is likely to end up doing for us. An astonishing 96 per cent of insurers think that ecosystems or applications made by autonomous organisations are having a major impact on the insurance industry. The use of social credit mechanisms is being developed, some already implemented, which will determine our future behaviour, which will affect us all – both individually and negatively.”

The Chinese government plans to launch its Social Credit System in 2020. Already being piloted on 12 million of its citizens, the aim is to judge the trustworthiness – or otherwise – of its 1.3 billion residents. Something as innocuous as a person’s shopping habits become a measure of character. But the system not only investigates behaviour – it shapes it. It “nudges” citizens away from purchases and behaviours the government does not like. Friends are considered as well and individual credit scores fall depending on their trustworthiness. It’s not possible to imagine how far this will go in the end.

However to get us all there, to that situation, we need to be distracted from what is going on in the background. Some, are already concerned.

Distraction – detaching us from truth and reality

The Guardian wrote an interesting piece recently which highlighted some of the concerns of those with expert insider knowledge of the tech industry. For instance, Justin Rosenstein, the former Google and Facebook engineer who helped build the ‘like’ button – is concerned. He believes there is a case for state regulation of smartphone technology because it is “psychologically manipulative advertising”, saying the moral impetus is comparable to taking action against fossil fuel or tobacco companies.

“If we only care about profit maximisation,” he says, “we will go rapidly into dystopia.” Rosenstien also makes the observation that after Brexit and the election of Trump, digital forces have completely upended the political system and, left unchecked, could render democracy as we know it obsolete.

Carole Cadwalladre’s recent Exposé in the Observer/Guardian proved beyond doubt that democracy has already departed. Here we learn about a shadowy global operation involving big data and billionaires who influenced the result of the EU referendum. Britain’s future place in the world has been altered by technology.

Nir Eyal 39, the author of Hooked: How to Build Habit-Forming Products writes: “The technologies we use have turned into compulsions, if not full-fledged addictions.” Eyal continues: “It’s the impulse to check a message notification. It’s the pull to visit YouTube, Facebook, or Twitter for just a few minutes, only to find yourself still tapping and scrolling an hour later.” None of this is an accident, he writes. It is all “just as their designers intended”.

Eyal feels the threat and protects his own family by cutting off the internet completely at a set time every day. “The idea is to remember that we are not powerless,” he said. “We are in control.”

The truth is we are no longer in control and have not been since we learned that our government was lying to us with the Snowden revelations back in 2013.

Tristan Harris, a 33-year-old former Google employee turned vocal critic of the tech industry agrees about the lack of control. “All of us are jacked into this system,” he says. “All of our minds can be hijacked. Our choices are not as free as we think they are.” Harris insists that billions of people have little choice over whether they use these now ubiquitous technologies, and are largely unaware of the invisible ways in which a small number of people in Silicon Valley are shaping their lives.

Harris is a tech whistleblower. He is lifting the lid on the vast powers accumulated by technology companies and the ways they are abusing the influence they have at their fingertips – literally.

“A handful of people, working at a handful of technology companies, through their choices will steer what a billion people are thinking today.”

The techniques these companies use such as social reciprocity, autoplay and the like are not always generic: they can be algorithmically tailored to each person. An internal Facebook report leaked this year, ultimately revealed that the company can identify when teenagers feel “worthless or “insecure.” Harris adds, that this is “a perfect model of what buttons you can push in a particular person”.

Chris Marcellino, 33, a former Apple engineer is now in the final stages of retraining to be a neurosurgeon and notes that these types of technologies can affect the same neurological pathways as gambling and drug use. “These are the same circuits that make people seek out food, comfort, heat, sex,” he says.

Roger McNamee, a venture capitalist who benefited from hugely profitable investments in Google and Facebook, has grown disenchanted with both of the tech giants. “Facebook and Google assert with merit that they are giving users what they want,” McNamee says. “The same can be said about tobacco companies and drug dealers.”

James Williams ex-Google strategist who built the metrics system for the company’s global search advertising business, says Google now has the “largest, most standardised and most centralised form of attentional control in human history”. “Eighty-seven percent of people wake up and go to sleep with their smartphones,” he says. The entire world now has a new prism through which to understand politics, and Williams worries the consequences are profound.

Williams also takes the view that if the attention economy erodes our ability to remember, to reason, to make decisions for ourselves – faculties that are essential to self-governance – what hope is there for democracy itself?

“The dynamics of the attention economy are structurally set up to undermine the human will,” he says. “If politics is an expression of our human will, on individual and collective levels, then the attention economy is directly undermining the assumptions that democracy rests on. If Apple, Facebook, Google, Twitter, Instagram and Snapchat are gradually chipping away at our ability to control our own minds, could there come a point, I ask, at which democracy no longer functions?”

“Will we be able to recognise it, if and when it happens?” Williams says. “And if we can’t, then how do we know it hasn’t happened already?”

The dystopian arrival

Within ten years, some are speculating that many of us will be wearing eye lenses. Coupled with social media, we’ll be able to identify strangers and work out that a particular individual, in say a bar, has a low friend compatibility, and data shows you will likely not have a fruitful conversation. This idea is literally scratching the surface of the information overload en-route right now.

It is not at all foolish to think that in that same bar a patron is shouting at the bartender, who refuses to serve him another drink because the glass he was holding measured his blood-alcohol level through the sweat in his fingers. He’ll have to wait at least 45 minutes before he’ll be permitted to order another scotch. You might even think that is a good idea – it isn’t.

Google’s Quantum Artificial Intelligence Lab, already works with other organisations associated with NASA. Google’s boss sits on the Board of the Pentagon with links plugged directly into the surveillance architecture of the NSA in the USA and GCHQ in Britain. This world, where artificial intelligence makes its mark, as Williams mentions earlier, will deliberately undermine the ability to think for yourself.

In the scenario of the eye lenses, you might even have the ability to command your eyewear to shut down. But when you do, suddenly you are confronted with an un-Googled world. It appears drab and colourless in comparison. The people before you are bland, washed out and unattractive. The art, plants, wall paint, lighting and decorations had all been shaped by your own preferences, and without the distortion field your wearable eyewear provided, the world appears as a grey, lifeless template.

You find it difficult to last without the assistance of your self imposed augmented life, and accompanied by nervous laughter you switch it back on. The world you view through the prism of your computer eyewear has become your default setting. You know you have free will, but don’t feel like you need it. As Marcellino says the same neurological pathways as gambling and drug use drive how you choose to see the world.

This type of technology will be available and these types of scenario’s will become real, sooner than you think.

Our governments, allied with the tech giants are coercing us into a place of withering obedience with the use of 360 degree state surveillance. New technology, which is somehow seen as the road to liberty, contentment and prosperity, is really our future being shaped by a system that will destroy our civil liberties, crush our human rights and it will eventually ensnare and trap us all. This much they are already attempting in China and Japan with social credit mechanisms and pre-crime technology which is a truly frightening prospect. Without debate or our knowledge, here in western democracies, these technologies are already in use.

Reimagining Money

Posted on April 28, 2017 by Reid Mukai

What if markets were designed to build trust instead of wealth?

By Douglas Rushkoff

(The Atlantic)

Bitcoin was conceived as a modern solution to an ages-old problem: How can two parties agree on and verify an exchange of value? In this sense, Bitcoin is an effective technology, in that it trains the massive processing power of distributed personal computers on the same situation that paper currency was built to resolve. But in important ways, Bitcoin transposes some of the shortcomings of traditional currency onto the digital realm. It ignores a whole host of questions about the potential to reimagine what money can be designed to emphasize: What sorts of money will encourage admirable human behavior? What sorts of money systems will encourage trust, reenergize local commerce, favor peer-to-peer value exchange, and transcend the growth requirement? In short, how can money be less an extractor of value and more a utility for its exchange?Around the world, people have proposed experimental, tentative answers to these questions. What follows are three ways that people have toyed with rearranging the priorities of transactions—all of which would encourage a radical reimagination of what money is and can do.

The simplest approach to limiting the delocalizing, extractive power of central currency is for communities to adopt their own local currencies, pegged or tied in some way to a central currency. One of the first and most successful contemporary efforts is the Massachusetts BerkShare, which was developed to help keep money from flowing out of the Berkshire region.

One hundred BerkShares cost $95 and are available at local banks throughout the region. Participating local merchants then accept them as if they were dollars—offering their customers what amounts to a 5-percent discount for using the local money. Although it amounts to selling goods at a perpetual discount, merchants can in turn spend their local currency at other local businesses and receive the same discounted rate. Nonlocals and tourists purchase goods with dollars at full price, and those who bother to purchase items with BerkShares presumably leave town with a bit of unspent local money in their pockets.

The 5-percent local discount may seem like a huge disadvantage to take on—but only if businesses think of themselves as competing individuals. In the long term, the discount is more than compensated for by the fact that BerkShares can circulate only locally. They remain in the region and come back to the same stores again and again. Even if nonlocal stores, such as Walmart, agree to accept the local currency, they can’t deliver it up to their shareholders or trap it in static savings. The best Walmart can do is use it to pay their local workers or purchase supplies and services from local merchants.

Many other communities—Detroit, Santa Barbara, and a few places in Europe—are experimenting with variations on the BerkShare model. Most of these local currencies are still more fad than utility. In some cases, it’s because only economically conscious progressives are willing to employ them. In others, it’s because the central monetary system is still strong enough to serve a majority of people—or dominant enough to minimize the apparent viability of alternatives. Moreover, by pegging themselves to central currency, these local discount currencies can isolate themselves only so much from the chronic monetary problems of inflation, deflation, bubbles, and debt.

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Unlike local discount currencies, cooperative community currencies don’t need to be pegged to the dollar at all. They are not purchased into existence but are worked into circulation. They are best thought of less like money than like exchanges.

The simplest form of cooperative currency is a favor bank, such as those founded in Greece and other parts of southern Europe during the Euro crisis. Incapable of finding work or sourcing Euros, people in many places lost the ability to transact. Even though a majority of what they needed could be produced locally, they had no cash with which to trade. So they built simple, secure trading websites—mini-eBays—where people offered their goods and services to others in return for the goods and services they needed. The sites did not record value amounts so much as keep general track of who was providing what to the community and coordinate fair exchanges. This casual, transparent solution works particularly well in a community where people already know one another and freeloaders can be pressured to contribute.

Larger communities have been using “time dollars,” a currency system that keeps track of how many hours people contribute to one another. Again, a simple exchange is set up on a website, where people list what they need and what they can contribute. The bigger and more anonymous a community, the more security and verification is required. Luckily, dozens of startups and nonprofit organizations have been developing apps and website kits via which local or even nonlocal communities can establish and run their own currencies.

Time exchanges tend to work best when everybody values their time the same way or is providing the same service. Time dollars are extremely egalitarian, valuing each person’s time the same as anyone else’s. An “hour” is worth one hour of work, whether it is performed by a plumber or a psychotherapist.

The Japanese recession gave rise to one of the most successful time exchanges yet, called Fureai Kippu, or “Caring Relationship Tickets.” People no longer had enough cash to pay for their parents’ or grandparents’ health-care services—but because they had moved far away from home to find jobs, they couldn’t take care of their relatives themselves either. The Fureai Kippu exchange gave people the ability to bank hours of eldercare by taking care of old people in their communities, which they could then spend to get care for their own relatives far away. So one person might provide an hour of bathing services for an elder in her neighborhood in return for someone preparing meals for her grandfather who lives in another city. As the Caring Relationship Tickets became accepted things of value, people began using them for a variety of services.

Time-dollars systems, and those like them, don’t encourage extractive profiteering because they are really only good for exchanging labor and services with other people. Unlike bank-issued currency, hours are not borrowed into existence, nor do they collect interest over time. They don’t actually accumulate. Instead, everyone’s account starts at zero. When Sylvia babysits for Joe’s kid, her account is credited three hours, and Joe’s is debited three hours. Since they both started at zero, Sylvia now has three hours in her account, while Joe’s account is in the red for three hours’ worth of work. He will remain owing those three hours to the system—to the community—until Mary hires him to fix her refrigerator. The net result of the exchange is even. The net total of the system is still zero. It is not a growth economy but a transactional economy.

Although a person can do a bunch of work in order to bank enough hours to get a whole bunch of services, most time exchanges put a limit on how many hours members can accumulate. They also put a limit on how many hours a person can owe. This way a freeloader can be removed from the system, and the entire community can absorb the cost of the unearned hours pretty easily.

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How might traditional banks participate effectively in the financial rehabilitation of the communities they serve? Here’s just one possibility:

Sam’s Pizzeria is thriving as a local business, and Sam needs $200,000 to expand the dining room and build a second restroom. Normally, the bank would evaluate his business and credit and then either reject his loan request or give him the money at around 8 percent interest. The risk is that he won’t get enough new business to fill the new space, won’t be able to pay back the loan, and will go out of business. Indeed, part of the cost of the loan is that speculative risk.

In another approach, the banker could make Sam a different offer. The bank could agree to put up $100,000 toward the expansion project at 8 percent if Sam is able to raise the other $100,000 from his community in the form of market money: Sam is to sell digital coupons for $120 worth of pizza at the expanded restaurant at a cost of $100 per coupon. The bank can supply the software and administrate the escrow. If Sam can’t raise the money, then it proves the community wasn’t ready, and the bank can return everyone’s money.

If he does raise the money, then the bank has gained the security of a terrific community buy-in. Sam got his money more cheaply than if he borrowed the whole sum from the bank, because he can pay back the interest in retail-priced pizza. The community lenders have earned a fast 20 percent on their money—far more than they could earn in a bank or mutual fund. And it’s an investment that pays all sorts of other dividends: a more thriving downtown, more customers for other local businesses, better real-estate values, a higher tax base, better public schools, and so on. These are benefits one can’t see when buying stocks or abstract derivatives. Meanwhile, all the local “investors” now have a stake in the restaurant’s staying open at least long enough for them to cash in all their coupons. That’s good motivation to publicize it, take friends out to eat there, and contribute to its success.

For its part, the bank has diversified its range of services, bet on the possibility that community currencies will gain traction, and demonstrated a willingness to do something other than extract value from a community. The bank becomes a community partner, helping a local region invest in itself. The approach also provides the bank with a great hedge against continued deflation, hyperinflation, or growing consumer dissatisfaction with Wall Street and centrally issued money. If capital lending continues to contract as a business sector, the bank has already positioned itself to function as more of a service company—providing the authentication and financial expertise small businesses still need to thrive.

The bank transforms itself from an agent of debt to a catalyst for distribution and circulation. Like money in a digital age, it becomes less a thing of value in itself than a way of fostering the value creation and exchange of others.

This article has been adapted from Throwing Rocks at the Google Bus: How Growth Became the Enemy of Prosperity.

Decentralization and the Future World Order – Part I: The Revolution Is On

Posted on January 30, 2015 by Reid Mukai

Source: Thought Infection

A technological revolution is underway. An array of technologies are being developed that aim to do nothing less than disrupt the deepest fabric of the current world order. In a world where trust is power, decentralization steals the power from the hands of centralized institutions like corporations, banks, and even governments and puts it into the hands of the network. The revolution is beginning with a race to build the next generation of decentralized technologies that may soon replace internet giants like Dropbox or Facebook, but this is only the beginning of a transition to a future world order of decentralized power.

Lets start with a simple question: What is decentralization?

Many people equate decentralization with cryptographic networks like Bitcoin, which combine cryptography with decentralization, but decentralized applications do not inherently require encryption. The prototypical example of a modern decentralized technology would be Bittorrent, a technology with no inherent requirement for encryption. At its base, decentralization is the simple process of taking information and distributing copies among some sort of network so as to enhance data accessibility, security, redundancy, and congruence (consistency between parties).

The idea of decentralization is actually as old as communication itself. Cavemen would share their knowledge of hunting techniques and weapon technology among their tribe in order to be sure that the loss of no single individual would mean the loss of vital information. As humans created increasingly elaborate systems of exchange, organizations learned that keeping two or more copies of important documents was essential to ensuring their security.

The central problem of decentralization is that it also greatly increases the likelihood that information could fall into the hands of untrusted individuals. Thus, balancing the need for privacy and security meant finding a balance between centralized and decentralized structures for information sharing. To solve the age-old problem of privacy in shared information, cryptographic encoding or information was developed. Since at least Medieval times, people have been using simple ciphers to encode messages which they wished to share with only specific individuals.

In the 20th century, cryptography advanced greatly particularly during the world wars, when warring nations needed to be able to move around large amounts of information while preventing it from falling into the hands of the enemy. This spurned great innovations in both encryption and decryption, with both sides pouring resources into figuring out what their enemy was planning. It is widely believed, that the breaking of the Enigma code by British code-breakers which included one of the greatest minds of the 20th century, Alan Turing, was key to winning the war.

With the help of the universal computers Alan Turing helped invent, increasingly secure encryption algorithms were developed over the last half of the 20th century. Using these modern encryption algorithms, we can hide information well enough to confidently exchange sensitive financial information over a network which is essentially open (the internet). Thus, cryptography means that anyone eavesdropping on your web communications with your bank would have no way to understand the messages.

The Bitcoin blockchain is a distributed, encrypted ledger which stores the holdings of users of the network in individually encrypted data. This way, those using the network can be sure to agree on what amount of Bitcoin each user has, while only allowing those with the keys to be able to unlock their data and send some amount of Bitcoin to another user (see more here). Using the encrypted blockchain, Bitcoin is able to seamlessly transfer a limited supply of units of value between individuals in a way which does not rely on backing from any one central authority to provide value to the currency.

The core advance of the blockchain is that it allows the distribution of highly secure and highly congruent information throughout a network with no need for a centralizing authority.

As a side-thought, I would like to point out that although the software instantiation of the blockchain which underlies Bitcoin is totally dependent on digital computation, I see no reason a similar system based on mechanical encryption could not also be possible. Even if we never had invented computers I think we eventually would have come up with a sort of steam punk Bitcoin through which we could distribute value or congruent information using a cryptographic ledger system.

Bittorrent was the first application to show that sharing of encrypted information over a decentralized network could be used to transfer value securely and efficiently, but there is no reason that decentralized technology could not be used to share any kind of information in a trustless network.

The MaidSafe and Storj projects have the ambitious goal of allowing anyone to share anything securely and efficiently over a decentralized network, something that could have deep consequences for the way that the internet works. If anyone can use the distributed network to share a website, then this could eliminate the needs for centralized servers which currently serve up websites when you visit them. Under these protocols, the cost of storing and sharing data with other users of the network who donate some part of their bandwidth and hard-drive space in exchange for the right to use the network. While some might worry that such a network would be used primarily for content piracy (as has been the case for Bittorrent), the integration of the Safecoin cryptocurrency with the MaidSafe network may actually make it easier than ever for content producers to monetize their content.

According to the project leader, both Maidsafe and Storj could be used to develop alternative, distributed versions of popular services such as Dropbox, Facebook, or even Google. Distributed versions of these centralized services could offer advantages for security and failure resistance. MaidSafe could also dramatically lower the barriers to entry for new players trying to compete such internet institutions as Facebook. While I have doubts whether the massive data-crunching necessary for Google could be pulled off on a decentralized network, a decentralized social network seems an obvious applications for MaidSafe.

Whereas MaidSafe, Storj and Bitcoin are specific applications of distributed technology, the Ethereum project aims to go much further and create a general distributed computer language on top of which anyone could easily develop an application like MaidSafe or Bitcoin. They are essentially trying to create a sort of decentralization operating system on top of which it would be possible to build any sort of program. By allowing the secure sharing of computer programs, Ethereum could allow the creation of advanced smart contracts with defined limits on how and when their funds could be disperse, or potentially even much more complex entities such a corporations.

2014 was a bit of a down year for Bitcoin, with coins falling from a value as high as $1000 to around $230 today. While this might be taken as a sign that the future of Bitcoin is in some danger, it is absolutely clear that it does not reflect at all on the wider cryptocurrency ecosystem. The ability to distribute trust through a network through the use of a Blockchain is a world changing technology, and the value of one currency does nothing to change its utility as a method of exchange. Saying that a drop in the price of bitcoin makes it irrelevant is like saying that the drop in the price of computer chips makes them irrelevant. Bitcoin is just the first in a series of decentralized applications that are already beginning to compete with centralized services.

Decentralization is becoming the gold standard for when you truly need to trust something, and in a world where trust is power it seems inevitable that decentralized technologies are destined to become the new nexus of power. In my next post I will discuss the past present and future of trust and power, and how that has been reshaped by decentralization.

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I would like to make a recommendation for a subreddit and a podcast that I think that those stimulated by this article might enjoy following, /r/Rad_Decentralization and the Decentralize Podcast.

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Decentralization and the Future World Order – Part I: The Revolution Is On