Friday, February 07, 2020

Trump Has A Plan To Steal The 2020 Election-- And It's Strong

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Today began with one of the longest essays I ever posted on this blog-- and the parts about Beto O'Rourke fighting Nazis and Lindsey Graham roasting on a spit in Hell, were afterthoughts. What I had intended to include was another video from cult-fighter Steven Hassan, the one up top and a few thoughts about McKay Coppins' Atlantic piece yesterday, The Billion-Dollar Disinformation Campaign To Reelect Señor Trumpanzee. We have come a long way from Jospeh Goebbel's day. And yet... Coppins set out to explore how new technologies and techniques pioneered by dictators will shape the 2020 election.

Coppins must have been planning this article for a long time. Last fall he created a new Facebook account in order to experience what people who slip into the Trump cult experience. "Facebook’s algorithm," he wrote, "prodded me to follow Ann Coulter, Fox Business, and a variety of fan pages with names like 'In Trump We Trust.' I complied. I also gave my cellphone number to the Trump campaign, and joined a handful of private Facebook groups for MAGA diehards, one of which required an application that seemed designed to screen out interlopers." The Trumpanzee reelection campaign "was then in the midst of a multimillion-dollar ad blitz aimed at shaping Americans’ understanding of the recently launched impeachment proceedings. Thousands of micro-targeted ads had flooded the internet, portraying Trump as a heroic reformer cracking down on foreign corruption while Democrats plotted a coup. That this narrative bore little resemblance to reality seemed only to accelerate its spread. Right-wing websites amplified every claim. Pro-Trump forums teemed with conspiracy theories. An alternate information ecosystem was taking shape around the biggest news story in the country, and I wanted to see it from the inside."
The story that unfurled in my Facebook feed over the next several weeks was, at times, disorienting. There were days when I would watch, live on TV, an impeachment hearing filled with damning testimony about the president’s conduct, only to look at my phone later and find a slickly edited video-- served up by the Trump campaign-- that used out-of-context clips to recast the same testimony as an exoneration. Wait, I caught myself wondering more than once, is that what happened today?

As I swiped at my phone, a stream of pro-Trump propaganda filled the screen: “That’s right, the whistleblower’s own lawyer said, ‘The coup has started …’ ” Swipe. “Democrats are doing Putin’s bidding …” Swipe. “The only message these radical socialists and extremists will understand is a crushing …” Swipe. “Only one man can stop this chaos …” Swipe, swipe, swipe.

I was surprised by the effect it had on me. I’d assumed that my skepticism and media literacy would inoculate me against such distortions. But I soon found myself reflexively questioning every headline. It wasn’t that I believed Trump and his boosters were telling the truth. It was that, in this state of heightened suspicion, truth itself-- about Ukraine, impeachment, or anything else-- felt more and more difficult to locate. With each swipe, the notion of observable reality drifted further out of reach.
I don't know Coppins personally and I'm not a psychologist. I've read his work for almost a decade and I know he was the editor of his college paper. My guess is that he IQ is considerably higher than average. The mean IQ, by definition, is 100. Half the country has IQs under 100 and half have IQs over 100. People who have IQs under 100 have a tougher time with abstract reasoning than people with IQs over 100. I always figured people with low IQs are easy victims for slick propaganda, whether on TV or the internet. I explained the Trump election by assuming-- with the skimpiest of evidence-- that Trump was elected by the half the country with the lowest IQs, the ones for whom those Russian Facebook posts were motivational. No one I knew. And yet... Coppins admits the strategy made him question what he knew to be logical and what he knew to be normative reality.




He warned that he was "seeing a strategy that has been deployed by illiberal political leaders around the world. Rather than shutting down dissenting voices, these leaders have learned to harness the democratizing power of social media for their own purposes-- jamming the signals, sowing confusion. They no longer need to silence the dissident shouting in the streets; they can use a megaphone to drown him out. Scholars have a name for this: censorship through noise."
After the 2016 election, much was made of the threats posed to American democracy by foreign disinformation. Stories of Russian troll farms and Macedonian fake-news mills loomed in the national imagination. But while these shadowy outside forces preoccupied politicians and journalists, Trump and his domestic allies were beginning to adopt the same tactics of information warfare that have kept the world’s demagogues and strongmen in power.

Every presidential campaign sees its share of spin and misdirection, but this year’s contest promises to be different. In conversations with political strategists and other experts, a dystopian picture of the general election comes into view-- one shaped by coordinated bot attacks, Potemkin local-news sites, micro-targeted fearmongering, and anonymous mass texting. Both parties will have these tools at their disposal. But in the hands of a president who lies constantly, who traffics in conspiracy theories, and who readily manipulates the levers of government for his own gain, their potential to wreak havoc is enormous.

The Trump campaign is planning to spend more than $1 billion, and it will be aided by a vast coalition of partisan media, outside political groups, and enterprising freelance operatives. These pro-Trump forces are poised to wage what could be the most extensive disinformation campaign in U.S. history. Whether or not it succeeds in reelecting the president, the wreckage it leaves behind could be irreparable.
Did you see any of the Iowa caucus-goers being interviewed during the process in the gyms? It scared me. Critical thinking was in short supply. No-- not short supply... nowhere to be seen. Every time a reporter asked a voter why he or she was voting for or switching to Biden or Klobuchar or Warren or Mayo Pete of whomever, they simply repeated that candidate's advertising talking points.

It was hilarious when after the voting a reporter asked a Mayo Pete supporter who voted for Mayo because of his phony-made-for-TV military service, if he knew Mayo was openly gay. The voter screamed he wanted his vote back.

Bloomberg has every attention of matching his former friend/bitter rival Trump million for million, billion for billion in these brainwashing efforts. Hurray for our side?

Brad Parscale, who looks like Satan, has a sulphur-odor and, wrote Coppins, had "no reservations about the kind of campaign Trump wanted to run. The race-baiting, the immigrant-bashing, the truth-bending-- none of it seemed to bother Parscale. While some Republicans wrung their hands over Trump’s inflammatory messages, Parscale came up with ideas to more effectively disseminate them... From June to November, Trump’s campaign ran 5.9 million ads on Facebook, while Clinton’s ran just 66,000. A Facebook executive would later write in a leaked memo that Trump 'got elected because he ran the single best digital ad campaign I’ve ever seen from any advertiser.'"
In the United States, we tend to view such tools of oppression [the ones that helped elect Filipino fascist leader Rodrigo Duterte] as the faraway problems of more fragile democracies. But the people working to reelect Trump understand the power of these tactics. They may use gentler terminology-- muddy the waters; alternative facts-- but they’re building a machine designed to exploit their own sprawling disinformation architecture.

Central to that effort is the campaign’s use of micro-targeting-- the process of slicing up the electorate into distinct niches and then appealing to them with precisely tailored digital messages. The advantages of this approach are obvious: An ad that calls for defunding Planned Parenthood might get a mixed response from a large national audience, but serve it directly via Facebook to 800 Roman Catholic women in Dubuque, Iowa, and its reception will be much more positive. If candidates once had to shout their campaign promises from a soapbox, micro-targeting allows them to sidle up to millions of voters and whisper personalized messages in their ear.

The weaponization of micro-targeting was pioneered in large part by the data scientists at Cambridge Analytica. The firm began as part of a nonpartisan military contractor that used digital psyops to target terrorist groups and drug cartels. In Pakistan, it worked to thwart jihadist recruitment efforts; in South America, it circulated disinformation to turn drug dealers against their bosses.

The emphasis shifted once the conservative billionaire Robert Mercer became a major investor and installed Steve Bannon as his point man. Using a massive trove of data it had gathered from Facebook and other sources—without users’ consent—Cambridge Analytica worked to develop detailed “psychographic profiles” for every voter in the U.S., and began experimenting with ways to stoke paranoia and bigotry by exploiting certain personality traits. In one exercise, the firm asked white men whether they would approve of their daughter marrying a Mexican immigrant; those who said yes were asked a follow-up question designed to provoke irritation at the constraints of political correctness: “Did you feel like you had to say that?”

Christopher Wylie, who was the director of research at Cambridge Analytica and later testified about the company to Congress, told me that “with the right kind of nudges,” people who exhibited certain psychological characteristics could be pushed into ever more extreme beliefs and conspiratorial thinking. “Rather than using data to interfere with the process of radicalization, Steve Bannon was able to invert that,” Wylie said. “We were essentially seeding an insurgency in the United States.”

Cambridge Analytica was dissolved in 2018, shortly after its CEO was caught on tape bragging about using bribery and sexual “honey traps” on behalf of clients. (The firm denied that it actually used such tactics.) Since then, some political scientists have questioned how much effect its “psychographic” targeting really had. But Wylie-- who spoke with me from London, where he now works for H&M, as a fashion-trend forecaster-- said the firm’s work in 2016 was a modest test run compared with what could come.

“What happens if North Korea or Iran picks up where Cambridge Analytica left off?” he said, noting that plenty of foreign actors will be looking for ways to interfere in this year’s election. “There are countless hostile states that have more than enough capacity to quickly replicate what we were able to do … and make it much more sophisticated.” These efforts may not come only from abroad: A group of former Cambridge Analytica employees have formed a new firm that, according to the Associated Press, is working with the Trump campaign. (The firm has denied this, and a campaign spokesperson declined to comment.)




After the Cambridge Analytica scandal broke, Facebook was excoriated for its mishandling of user data and complicity in the viral spread of fake news. Mark Zuckerberg promised to do better, and rolled out a flurry of reforms. But then, last fall, he handed a major victory to lying politicians: Candidates, he said, would be allowed to continue running false ads on Facebook. (Commercial advertisers, by contrast, are subject to fact-checking.) In a speech at Georgetown University, the CEO argued that his company shouldn’t be responsible for arbitrating political speech, and that because political ads already receive so much scrutiny, candidates who choose to lie will be held accountable by journalists and watchdogs.

...Both parties will rely on micro-targeted ads this year, but the president is likely to have a distinct advantage. The Republican National Committee and the Trump campaign have reportedly compiled an average of 3,000 data points on every voter in America. They have spent years experimenting with ways to tweak their messages based not just on gender and geography, but on whether the recipient owns a gun or watches the Golf Channel.

While these ads can be used to try to win over undecided voters, they’re most often deployed for fundraising and for firing up the faithful-- and Trump’s advisers believe this election will be decided by mobilization, not persuasion. To turn out the base, the campaign has signaled that it will return to familiar themes: the threat of “illegal aliens”-- a term Parscale has reportedly encouraged Trump to use-- and the corruption of the “swamp.”

Beyond Facebook, the campaign is also investing in a texting platform that could allow it to send anonymous messages directly to millions of voters’ phones without their permission. Until recently, people had to opt in before a campaign could include them in a mass text. But with new “peer to peer” texting apps-- including one developed by Gary Coby, a senior Trump adviser-- a single volunteer can send hundreds of messages an hour, skirting federal regulations by clicking “Send” one message at a time. Notably, these messages aren’t required to disclose who’s behind them, thanks to a 2002 ruling by the Federal Election Commission that cited the limited number of characters available in a text.

Most experts assume that these regulations will be overhauled sometime after the 2020 election. For now, campaigns from both parties are hoovering up as many cellphone numbers as possible, and Parscale has said texting will be at the center of Trump’s reelection strategy. The medium’s ability to reach voters is unparalleled: While robocalls get sent to voicemail and email blasts get trapped in spam folders, peer-to-peer texting companies say that at least 90 percent of their messages are opened.

The Trump campaign’s texts so far this cycle have focused on shouty fundraising pleas (“They have NOTHING! IMPEACHMENT IS OVER! Now let’s CRUSH our End of Month Goal”). But the potential for misuse by outside groups is clear-- and shady political actors are already discovering how easy it is to wage an untraceable whisper campaign by text.

In 2018, as early voting got under way in Tennessee’s Republican gubernatorial primary, voters began receiving text messages attacking two of the candidates’ conservative credentials. The texts-- written in a conversational style, as if they’d been sent from a friend-- were unsigned, and people who tried calling the numbers received a busy signal. The local press covered the smear campaign. Law enforcement was notified. But the source of the texts was never discovered.

...[A] lesson drawn from demagogues around the world: When the press as an institution is weakened, fact-based journalism becomes just one more drop in the daily deluge of content-- no more or less credible than partisan propaganda. Relativism is the real goal of Trump’s assault on the press, and the more “enemies of the people” his allies can take out along the way, the better. “A culture war is a war,” Steve Bannon told the Times last year. “There are casualties in war.”

This attitude has permeated the president’s base. At rallies, people wear T-shirts that read rope. tree. journalist. some assembly required. A CBS News/YouGov poll has found that just 11 percent of strong Trump supporters trust the mainstream media-- while 91 percent turn to the president for “accurate information.” This dynamic makes it all but impossible for the press to hold the president accountable, something Trump himself seems to understand. “Remember,” he told a crowd in 2018, “what you’re seeing and what you’re reading is not what’s happening.”

Bryan Lanza, who worked for the Trump campaign in 2016 and remains a White House surrogate, told me flatly that he sees no possibility of Americans establishing a common set of facts from which to conduct the big debates of this year’s election. Nor is that his goal. “It’s our job to sell our narrative louder than the media,” Lanza said. “They’re clearly advocating for a liberal-socialist position, and we’re never going to be in concert. So the war continues.”

Parscale has indicated that he plans to open up a new front in this war: local news. Last year, he said the campaign intends to train “swarms of surrogates” to undermine negative coverage from local TV stations and newspapers. Polls have long found that Americans across the political spectrum trust local news more than national media. If the campaign has its way, that trust will be eroded by November. “We can actually build up and fight with the local newspapers,” Parscale told donors, according to a recording provided by the Palm Beach Post. “So we’re not just fighting on Fox News, CNN, and MSNBC with the same 700,000 people watching every day.”

Running parallel to this effort, some conservatives have been experimenting with a scheme to exploit the credibility of local journalism. Over the past few years, hundreds of websites with innocuous-sounding names like the Arizona Monitor and the Kalamazoo Times have begun popping up. At first glance, they look like regular publications, complete with community notices and coverage of schools. But look closer and you’ll find that there are often no mastheads, few if any bylines, and no addresses for local offices. Many of them are organs of Republican lobbying groups; others belong to a mysterious company called Locality Labs, which is run by a conservative activist in Illinois. Readers are given no indication that these sites have political agendas-- which is precisely what makes them valuable.

According to one longtime strategist, candidates looking to plant a negative story about an opponent can pay to have their desired headlines posted on some of these Potemkin news sites. By working through a third-party consulting firm-- instead of paying the sites directly-- candidates are able to obscure their involvement in the scheme when they file expenditures to the Federal Election Commission. Even if the stories don’t fool savvy readers, the headlines are convincing enough to be flashed across the screen in a campaign commercial or slipped into fundraising emails.


NOTHING IS TRUE

There is perhaps no better place to witness what the culture of disinformation has already wrought in America than a Trump campaign rally. One night in November, I navigated through a parking-lot maze of folding tables covered in MAGA merch and entered the BancorpSouth Arena in Tupelo, Mississippi. The election was still a year away, but thousands of sign-waving supporters had crowded into the venue to cheer on the president in person.

Once Trump took the stage, he let loose a familiar flurry of lies, half-lies, hyperbole, and nonsense. He spun his revisionist history of the Ukraine scandal-- the one in which Joe Biden is the villain-- and claimed, falsely, that the Georgia Democrat Stacey Abrams wanted to “give illegal aliens the right to vote.” At one point, during a riff on abortion, Trump casually asserted that “the governor of Virginia executed a baby”-- prompting a woman in the crowd to scream, “Murderer!”

This incendiary fabrication didn’t seem to register with my companions in the press pen, who were busy writing stories and shooting B-roll. I opened Twitter, expecting to see a torrent of fact-checks laying out the truth of the case-- that the governor had been answering a hypothetical question about late-term abortion; that a national firestorm had ensued; that there were certainly different ways to interpret his comments but that not even the most ardent anti-abortion activist thought the governor of Virginia had personally “executed a baby.”

But Twitter was uncharacteristically quiet (apparently the president had said this before), and the most widely shared tweet I found on the subject was from his own campaign, which had blasted out a context-free clip of the governor’s abortion comments to back up Trump’s smear.

After the rally, I loitered near one of the exits, chatting with people as they filed out of the arena. Among liberals, there is a comforting caricature of Trump supporters as gullible personality cultists who have been hypnotized into believing whatever their leader says. The appeal of this theory is the implication that the spell can be broken, that truth can still triumph over lies, that someday everything could go back to normal-- if only these voters were exposed to the facts. But the people I spoke with in Tupelo seemed to treat matters of fact as beside the point.

One woman told me that, given the president’s accomplishments, she didn’t care if he “fabricates a little bit.” A man responded to my questions about Trump’s dishonest attacks on the press with a shrug and a suggestion that the media “ought to try telling the truth once in a while.” Tony Willnow, a 34-year-old maintenance worker who had an American flag wrapped around his head, observed that Trump had won because he said things no other politician would say. When I asked him if it mattered whether those things were true, he thought for a moment before answering. “He tells you what you want to hear,” Willnow said. “And I don’t know if it’s true or not-- but it sounds good, so fuck it.”

The political theorist Hannah Arendt once wrote that the most successful totalitarian leaders of the 20th century instilled in their followers “a mixture of gullibility and cynicism.” When they were lied to, they chose to believe it. When a lie was debunked, they claimed they’d known all along-- and would then “admire the leaders for their superior tactical cleverness.” Over time, Arendt wrote, the onslaught of propaganda conditioned people to “believe everything and nothing, think that everything was possible and that nothing was true.”

Leaving the rally, I thought about Arendt, and the swaths of the country that are already gripped by the ethos she described. Should it prevail in 2020, the election’s legacy will be clear-- not a choice between parties or candidates or policy platforms, but a referendum on reality itself.

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Wednesday, May 16, 2018

FBI Investigating Mercer's Cambridge Analytica

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Cambridge Analytica was created around 2013, initially with a focus on U.S. elections, with $15 million in backing from Long Island neo-Nazi billionaire Robert Mercer. Steve Bannon came up with the name, which was focussed on stealing U.S. elections.

I've been told that no law enforcement agencies have questioned Mercer or his vicious crackpot daughter Rebekah, the owners of the company, and the fascists behind the direction it has taken. But there have been reports all week that the FBI and Justice Department are investigating the company. Instead, prosecutors seem to be trying to "question former Cambridge Analytica employees and banks that handled its business." The New York Times refers to the company as "a now-defunct political data firm embroiled in a scandal over its handling of Facebook user information." But are they really defunct-- or just gearing up to help the GOP steal the midterms or help Trump in 2020?
Cambridge Analytica said earlier this month it was shutting down after losing clients and facing mounting legal fees resulting from reports the company harvested personal data about millions of Facebook users beginning in 2014.

Allegations of the improper use of data for 87 million Facebook users by Cambridge Analytica, which was hired by President Donald Trump's 2016 U.S. election campaign, have prompted multiple investigations in the United States and Europe.

The investigation by the Justice Department and FBI appears to focus on the company's financial dealings and how it acquired and used personal data pulled from Facebook and other sources, the Times said.

Investigators have contacted Facebook, according to the newspaper.
The Guardian published a real time account of today's Senate Judiciary Committee questioning of Cambridge Analytica whistleblower Christopher Wylie.


UPDATE: Oh, And By The Way, Did Ronan Farrow Find The Smoking Gun Tonight?

Take it away, Ronan. He starts by reminding everyone that Cohen, Trumpanzee's third rate, shyster personal lawyer "had used a shell company to receive payments from various firms with business before the Trump Administration" and that, since then, there's been lots of speculation about who leaked the confidential Cohen financial records. That source, a law-enforcement official, explained his motivation to Farrow in an interview. Basically he had "grown alarmed after being unable to find two important reports on Cohen’s financial activity in a government database. The official, worried that the information was being withheld from law enforcement, released the remaining documents."
The payments to Cohen that have emerged in the past week come primarily from a single document, a “suspicious-activity report” filed by First Republic Bank, where Cohen’s shell company, Essential Consultants, L.L.C., maintained an account. The document detailed sums in the hundreds of thousands of dollars paid to Cohen by the pharmaceutical company Novartis, the telecommunications giant A.T. & T., and an investment firm with ties to the Russian oligarch Viktor Vekselberg.

The report also refers to two previous suspicious-activity reports, or sars, that the bank had filed, which documented even larger flows of questionable money into Cohen’s account. Those two reports detail more than three million dollars in additional transactions—triple the amount in the report released last week. Which individuals or corporations were involved remains a mystery. But, according to the official who leaked the report, these sars were absent from the database maintained by the Treasury Department’s Financial Crimes Enforcement Network, or fincen. The official, who has spent a career in law enforcement, told me, “I have never seen something pulled off the system. . . . That system is a safeguard for the bank. It’s a stockpile of information. When something’s not there that should be, I immediately became concerned.” The official added, “That’s why I came forward.”

Seven former government officials and other experts familiar with the Treasury Department’s fincen database expressed varying levels of concern about the missing reports. Some speculated that fincen may have restricted access to the reports due to the sensitivity of their content, which they said would be nearly unprecedented. One called the possibility “explosive.” A record-retention policy on fincen’s Web site notes that false documents or those “deemed highly sensitive” and “requiring strict limitations on access” may be transferred out of its master file. Nevertheless, a former prosecutor who spent years working with the fincen database said that she knew of no mechanism for restricting access to sars. She speculated that fincen may have taken the extraordinary step of restricting access “because of the highly sensitive nature of a potential investigation. It may be that someone reached out to fincen to ask to limit disclosure of certain sars related to an investigation, whether it was the special counsel or the Southern District of New York.” (The special counsel, Robert Mueller, is investigating Russian interference in the 2016 Presidential election. The Southern District is investigating Cohen, and the F.B.I. raided his office and hotel room last month.)

Whatever the explanation for the missing reports, the appearance that some, but not all, had been removed or restricted troubled the official who released the report last week. “Why just those two missing?” the official, who feared that the contents of those two reports might be permanently withheld, said. “That’s what alarms me the most.”

Fincen said in a statement that it protects the confidentiality of sars “in order to protect both filers and potentially named individuals.” The statement added, “FinCEN neither confirms nor denies the existence of purported SARs.” Spokespeople for the special counsel’s office and the Southern District of New York declined to comment. Michael Cohen and his lawyer did not respond to requests for comment.

Banks are legally mandated to file suspicious-activity reports with the government in order to call attention to activity that resembles money laundering, fraud, and other criminal conduct. These reports are routed to a permanent database maintained by fincen, which can be searched by tens of thousands of law-enforcement and other federal government personnel. The reports are a routine response to any financial activity that appears suspicious. They are not proof of criminal activity, and often do not result in criminal charges, though the information in them can be used in law-enforcement proceedings. “This is a permanent record. They should be there,” the official, who described an exhaustive search for the reports, said. “And there is nothing there.”

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Thursday, April 26, 2018

What To Do About Facebook — First Thoughts

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If a billion-user, private, hugely profitable company were truly this powerful, what should be done about it?

by Gaius Publius

The revelations about Facebook and Cambridge Analytica have come and gone quickly, like a fiery auto crash into a ten-foot wall, the remains of which nevertheless disappear overnight — in this case replaced by the next Trump scandal to hit the news. Pedestrians walking past the crash site today can only smell the fumes of earlier fevered concerns.

Yet the Facebook problem remains, if barely considered now. As we wrote earlier, what Facebook did in that case was no more than it was designed to do. Not only that, but what Cambridge Analytica did was follow a path others had tread before, except that this time the "Trump! Russia!" taint had made its own deeds unacceptable.

But ask yourself, if either political party had done what CA did, would this be news? A scandal? Or just "how things are done around here"? And given the power of this kind of private company over the public, is its very existence in the public interest at all?

The questions surrounding Facebook are many and serious. Facebook is first a monopoly; next, a mass manipulator capable of swinging elections and other social decisions in an order-of-magnitude-greater way than simple common advertising, no matter how targeted; third, a source of enormous wealth to a powerful few; and finally, it performs an almost utility-like, ubiquitous social function in today's Internet age. (Consider the telephone network as a utility that connects masses of people and enables communication. Now consider Facebook as a kind of modern-day telephone network. The communication is what we're interested in. The monetizable data and metadata of our communication is what its owners are interested in. The data collection is not necessary to the communication function.)

Each of these aspects of its nature adds implications to the "What to do about Facebook?" question. As a monopoly, should it be broken up? If so how? As a mass manipulator, should its activities be curtailed? As a source of great wealth to very powerful people, it presents all of the obstacles to altering its activity as does, for example, the problem of addressing the harms done by Wall Street. And as a utility, should it be allowed to continue as a private operation, or be nationalized and run in the public interest only?

"Nine Steps to Restructure Facebook"

These are heady questions. This piece represents a first attempt to grapple with some of them, and I may well return to the full topic later. But let's start here, with a look at an article in the Guardian by Barry Lynn and Matt Stoller, both of the Open Markets Institute, a think tank that studies monopolies.

The article's title: "Facebook must be restructured. The FTC should take these nine steps now". I recommend reading it in full, but I want to present today just the authors' suggestions for "fixing" Facebook. These are their recommended nine steps:
1) Impose strict privacy rules on Facebook, perhaps using Europe’s new General Data Protection Regulation as a guide.

2) Spin off Facebook’s ad network. This will eliminate, in one swoop, most of the incentive that Facebook now has to amass data and to interfere and discriminate in the provision of information and news.

3) Reverse the approvals for Facebook purchases of WhatsApp and Instagram, and re-establish these as competing social networks.

4) Prohibit all future acquisitions by Facebook for at least five years.

5) Establish a system to ensure the transparency of all political communications on Facebook, similar to other major communication networks in the United States.

6) Require Facebook to adopt open and transparent standards, similar to conditions the FTC imposed on AOL Messenger in the AOL-Time Warner merger settlement in 2001.

7) Establish whether Facebook violated the 2011 consent decree and, if so, seek court sanctions.

8) Threaten to bring further legal action against Facebook unless top executives immediately agree to work with the FTC to restructure their corporation to ensure the safety and stability of our government and economy.

9) Establish whether top executives enabled, encouraged, or oversaw violations of the 2011 consent decree and, if so, pursue personal fines against them.
Some of these suggestions touch on the behavior of the company relative to its users and data — numbers 1, 5, 6, and all of those relating to the 2011 FTC consent decree, which "required that users be notified and that they explicitly give their permission before data about them is shared beyond the privacy settings they have established. The developer of the [Cambridge Analytica] app sought permission from those who downloaded it but not their Facebook friends."

Some of these suggestions touch on Facebook as a monopoly — numbers 2, 3, and 4. Some of them would indirectly but materially affect the wealth of the Facebook owners (but not the political power their wealth purchases).

None of these suggestions, however, directly addresses whether Facebook should (a) be allowed to exist at all; or (b) be nationalized and regulated like a utility, meaning operated in the public interest and not for the acquisition of private wealth and power.

So these are just first thoughts to answering the question, "What should be done about Facebook?" and only first thoughts. Still, they are important thoughts. If something isn't done about Facebook, it will continue to be used as a mass manipulator (and grow more effective as one) by a great many actors not tainted with the "Trump! Russia!" stink — meaning both American political parties, plus our various special-interest elites, such as the military.

Facebook, Democracy & the Next Sanders-Like Candidate

The implications for our democracy, assuming we have one, are great.

To consider just one, imagine a Bernie Sanders candidacy in 2020 (or a candidacy very like it), with Facebook still on the loose, and conscienceless Establishment operatives, who hate and fear him, willing to "do anything it takes" to protect their insider grip on the political process. No "Trump!" no "Russia!" in this scenario, but an outcome nevertheless as tragic for the nation, as I see it, as the one currently mourned as having already happened.

If 2020 is indeed the last electoral cycle for America to escape the twin tsunamis of, first, chaotic violent revolt against "rule by the rich," and second, the wave of climate chaos that races toward us, it may not matter much who wins in 2020, even if the winning candidate promises nothing more than "let's just get back to normal."

 Imperial Storm Troopers protecting a bank in Portland

In the post-2020 world, getting back to "normal" may not be enough.

GP
 

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Thursday, April 12, 2018

The Mercers: The Most Dangerous-- And Toxic-- Family In America

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Rebekah, Kellyanne and Bannon (missing from the photo: Satan)

Man, do I have the coolest Twitter followers! I threw out some real red meat in a poll yesterday: Bannon, Kushner-in-law, Jeff Sessions. "Who do you most want to see the FBI drag off in handcuffs over Putin-Gate?" But, by far, most readers knew exactly who the FBI should be locking up-- the father/daughter team trying to turn America into a fascist shithole: Robert and Rebekah Mercer, billionaires in search of a guillotine. And, yes, they're far worse than the Kochs.



Tuesday evening New York Times reporters Nick Confessore and David Gelles reported that the hideous Mercer monsters are (finally) in trouble. "Last month," they wrote, "a friend of the wealthy conservative donor Rebekah Mercer arrived at Facebook’s Silicon Valley headquarters. His task: Find out what-- if anything--could repair relations between Facebook, the world’s biggest social media company, and Cambridge Analytica, the voter-profiling firm co-founded by her father and used by the Trump campaign." Mercers' company, Cambridge Analytica has been banned by Facebook... and remains banned.
The revelation last month that Cambridge Analytica improperly acquired the private Facebook data of millions of users has set off government inquiries in Washington and London, plunging Facebook into crisis. But it has also battered the nascent political network overseen by Ms. Mercer, 44, and financed by her father, Robert Mercer, 71, a hard-line conservative billionaire.

Ms. Mercer’s standing in Mr. Trump’s circle had already declined following the departure last year of Stephen K. Bannon, her family’s former adviser and President Trump’s former chief strategist, according to Republicans with close ties to the president’s political operation. A pro-Trump advocacy group controlled by Ms. Mercer has gone silent following strategic disputes between her and other top donors. Plans to wage a civil war against the Republican establishment in the 2018 midterms have been derailed.

And last month, after reports on Cambridge in the New York Times, The Observer of London and The Guardian, Facebook banned the company from its platform, a major blow to any political or commercial targeting firm. Not a single American candidate or “super PAC” committee has reported payments to the company since the 2016 campaign, according to federal records.

Several Republicans in Ms. Mercer’s orbit or with knowledge of Cambridge’s business said that fallout from the Facebook scandal-- combined with widespread doubts about the accuracy of Cambridge’s psychological profiles of voters-- had effectively crippled the firm’s election work in the United States.

“They’re selling magic in a bottle,” said Matt Braynard, who worked alongside Cambridge on the Trump campaign, for which he served as the director of data and strategy, and now runs Look Ahead America, a group seeking to turn out disaffected rural and blue-collar voters. “And they’re becoming toxic.”

The Mercers have made no public statements about Cambridge Analytica’s troubles. Through a spokeswoman, Ms. Mercer declined to answer questions about her role in Mr. Trump’s circle or the Facebook meeting about Cambridge Analytica.

But the effort by Ms. Mercer’s friend to help mend fences with Facebook hints at both Cambridge’s importance to her family’s political ambitions and the perils posed by Facebook’s ban.

Although a Cambridge spokesman last month downplayed Ms. Mercer’s role at the company-- saying she had a “broad business oversight” role and no involvement in its daily operations-- she serves on the company’s board and in the past has worked to drum up campaign business for Cambridge, according to Republicans who have worked with or competed against the firm. Former Cambridge employees said she was close to Alexander Nix, the company’s chief executive, who was suspended last month after reports on Cambridge’s harvesting of Facebook data.

...In recent years, the Mercers have become among the most prominent and highly scrutinized political donors in the United States. In the early years of the Obama administration, they began doling out tens of millions of dollars to an eclectic array of conservative groups — many of them outside Washington’s mainline Republican establishment. Mr. Mercer invested $10 million in Breitbart News, the nationalist website, bringing on Mr. Bannon as chairman, while Ms. Mercer joined the boards of leading conservative think tanks.

The Mercers were critical of the Republican Party’s existing data apparatus, which was controlled by the party officials and consultants they hoped to disempower. Mr. Mercer bankrolled Cambridge Analytica in 2014, and Ms. Mercer encouraged candidates and PACs that took the family’s money to also hire the family’s data firm. Early in the 2016 presidential campaign, the Mercers backed Senator Ted Cruz of Texas, putting millions of dollars-- and Cambridge Analytica-- behind him.

But after Mr. Trump prevailed in the primaries, the Mercers switched candidates. In summer 2016, Ms. Mercer helped orchestrate a shake-up that put Mr. Bannon at the head of the Trump campaign. After Mr. Trump won the presidential election, he attended a costume ball at the Mercer estate on Long Island.

Ms. Mercer secured a slot on his transition team and prime seats at his inauguration. As Mr. Trump took office, she sought to take a leading role in America First Policies, a nonprofit formed to back the president’s agenda. Last spring, Ms. Mercer and her father attended the Time 100 black-tie gala, where she was feted as one of the country’s most influential people.

But her insistence on using Cambridge to provide the Trump group with voter data, and other clashes over strategy, alienated other donors and Trump allies, according to other Republicans. Ms. Mercer formed her own group, Making America Great, and hired Emily Cornell, a Cambridge executive, to run it.

Yet after an initial splash of spending in 2017 to promote Mr. Trump’s policies on environmental deregulation and other issues, Making America Great appears to have gone quiet. Ms. Cornell said she was no longer affiliated with Making America Great and could not comment on the group.

In November, Mr. Mercer stepped down from the helm of Renaissance Technologies, one of the world’s most successful hedge funds, as some investors began expressing dismay over his alliance with Mr. Trump.

The family is likely to retain significant influence in broader conservative circles thanks to its vast fortune, which finances donations that many political organizations and candidates are eager to accept. The family foundation handed out about $20 million to more than two dozen conservative think tanks, charter school groups, watchdog outfits and other nonprofit organizations in 2016, according to its most recent tax return.

Ms. Mercer remains a trustee of the Heritage Foundation, a prominent Washington think tank that has provided the Trump administration with grist for a range of initiatives. The foreign policy hawk John R. Bolton, whose super PAC the Mercers lavished with cash and whom Ms. Mercer once lobbied the White House to make secretary of state, was recently tapped to become Mr. Trump’s national security adviser.

The family has also donated $4.5 million to Republican candidates and super PACs during the 2018 election cycle, putting the Mercers among the top 20 donors in the country. And the father-daughter duo still inspire fear: Virtually no Republicans were willing to speak on the record about the family’s troubles.

“I would not confuse silence with them being out,” said Dan K. Eberhart, a Colorado drilling-services executive who is active in America First Policies, now the lead pro-Trump political advocacy group. “I think they’re very strategic, and I think they’re quiet folks.”

Any contributions the family gives directly to candidates and super PACs will be disclosed to the Federal Election Commission. But their contributions to ideological nonprofit groups like the Heartland Institute, which disputes the scientific consensus on climate change, may become less visible in the future. In 2016, when the Mercers’ backing of Mr. Trump subjected the family to intense public scrutiny, the Mercer foundation’s largest contribution was to DonorsTrust, an advisory group for conservative givers.

That grant, the Mercer foundation’s first recorded contribution to DonorsTrust, could herald a shift in the family’s philanthropic strategy. DonorsTrust helps wealthy conservatives obtain charitable tax benefits while-- if so desired-- shielding their giving from public view. The donor records a contribution to DonorsTrust and recommends potential recipients, while grantees receive a donation from DonorsTrust charitable vehicles. In 2016, DonorsTrust disbursed more than $66 million worth of such grants.

“Donor-advised funds offer you any level of privacy you’d like from the receiving organization,” states a promotional pamphlet available from the DonorsTrust website. “A donor can ask the fund provider to share their full name with one favored grantee and keep their identity private from other.” Such privacy can be useful to donors who “may be supporting a sensitive or personal cause that could endanger familial or professional harmony,” according to the pamphlet.

Such mechanisms, which are legal, are used by many donors on the right and the left. Ms. Mercer declined to answer questions about whether she intended to shift more of her family’s future political philanthropy into intermediaries like DonorsTrust. A 2017 tax return for the Mercer foundation is not yet publicly available.

“Ms. Mercer is a private person,” her spokeswoman said in a statement. “And she does not intend to discuss with the media either the conversations she has with her close friends or her philanthropic and charitable giving.”

Lawson Bader, the president of DonorsTrust, referred questions to the Mercers. “I do not discuss DonorsTrust accounts real or imagined,” he said in an email.

The Facebook scandal has hit just as the Mercers appear to be expanding their business in the world of big data. Public records show that Ms. Mercer, her sister Jennifer and Mr. Nix serve as directors of Emerdata, a British data company formed in August by top executives at Cambridge Analytica and its affiliate, SCL Group, according to British corporate records.

Incorporation documents state that Emerdata specializes in “data processing, hosting and related activities.” An SCL official told Channel 4, a British television station, that Emerdata was established last year to combine SCL and Cambridge under one corporate entity.

Exactly what ambitions the Mercers, who joined the Emerdata board last month, have for the company is unclear. Another Emerdata director, Johnson Ko Chun Shun, is a Hong Kong financier and business partner of Erik Prince-- the brother of the education secretary, Betsy DeVos, and founder of the private security firm formerly known as Blackwater. Mr. Ko, who declined to comment, is a substantial shareholder and deputy chairman in Mr. Prince’s Africa-focused logistics company, Frontier Services Group.

Mr. Ko and Mr. Prince have links to the Chinese government: Another major Frontier investor is Citic, a state-owned Chinese financial conglomerate that for decades has employed the sons and daughters of the Communist Party’s elite families.

Emerdata has a second Hong Kong-based director, Peng Cheng. Little public information about Ms. Peng, a British citizen, is available. But a woman with the same name is the chief executive of a publishing and online game company located in the same Hong Kong office tower as Frontier Services. In 2016, Mr. Ko’s brokerage company said it would buy a stake in Ms. Peng’s company, Culturecom.

While in Hong Kong in September to speak at a conference, Mr. Nix told Bloomberg that Cambridge Analytica was looking into China for commercial ventures. “We’ve been scoping this market for about a year,” he said. “We see huge opportunity to bring some of these technologies to advertising and marketing space brands.”

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Sunday, March 25, 2018

Political Whores Work Hard For The Money-- But Breaking The Law Is Still Breaking The Law-- The Story Of Cambridge Analytica

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It was lonely when we started writing about Cambridge Analytica and the Mercers. It was before they had connected-- perhaps "taken over" is a better way to put it-- the chaotic, unfocussed Trumpy-The-Clown campaign. I was about to be the co-honoree of a dinner by a university back east. And my co-honoree was Robert Mercer, then a top financier of the Ted Cruz congressional campaign-- and the guy who had connected first Cruz and then Trump to Mercer's neo-fascist propaganda outlet (Breitbart), a team of freaks that included Kellyanne Conway, Steve Bannon and David Bossie and his dark-data firm, Cambridge Analytica. I suggested to the university that having me and Mercer on the same program was a bad idea. So they made my event a buffet lunch in the basement with the kids and had the black tie event for Mercer; perfect solution.

Friday, writing for the Washington Post, Michelle Ye Hee Lee and Craig Timberg delved into the background of a collapsing empire. "Two years before helping Donald Trump target prospective 2016 supporters," they wrote, "the now-embattled data firm Cambridge Analytica tested its tools with an array of conservative groups allied with the wealthy Mercer family, including a super PAC run by newly appointed national security adviser John Bolton." Mercer opened the door to the top echelons of the Republican Party for Cambridge Analytica and the rats like Bannon and Bolton to scurry in. (Ben Carson's campaign was another Cambridge Analytica client, although the company has been turned down by Carly Fiorina, Scott Walker, Marco Rubio and Chris Christie.) It was Mercer and his crackpot circle that financed Cambridge Analytica's foray into fascist politics.
The John Bolton Super PAC, led by the former diplomat and foreign policy hard-liner, paid Cambridge Analytica more than $1.1 million in the 2014 and 2016 cycles for research, according to Federal Election Commission filings. Mercer has been the largest donor to Bolton’s super PAC, giving $5 million since the 2014 cycle, according to FEC records.

Part of the work that Cambridge Analytica performed for Bolton’s super PAC was psychographic voter targeting, which the company claimed could profile voters on the basis of certain characteristics. The predictive microtargeting was based in part on data gleaned from Facebook profiles and other sources, according to documents and former Cambridge Analytica employees.
But even before Channel 4's investigatory video-- up top, a must-see-- Robert Mueller's investigation into Putin-Gate had brought him to their doorsteps, primarily because of their connection to WikiLeaks in the Kremlin-orchestrated plan to destroy America by putting Trump into the White House. Mueller's team has been interviewing Cambridge Analytica-related witnesses for weeks.

It was Bannon who persuaded the Mercers to buy the Strategic Communication Laboratories Group, a British PR firm which was morphing into self-described "psychological warfare" operation Cambridge Analytica and about to go big in the U.S. The Mercers put up $15 million for the new firm owned by himself and run by Bannon and now-fired SCL's creepy neo-fascist Alexander Nix. Mercer mandated that any of the far right candidates who wanted his money had to hire his firm. Ted Cruz tried it but reported their work was useless and a big waste of money. Once his campaign collapsed,Mercer and Bannon transferred all their efforts to the easily manipulated Trumpanzee.

The real story of the impact of Cambridge Analytica on the U.S. elections was broken by Guardian reporter Carole Cadwalladr and 27 year old Canadian data science nerd Christopher Wylie. Cadwalladr reported that Wylie, then 24 years old, "came up with an idea that led to the foundation of a company called Cambridge Analytica, a data analytics firm that went on to claim a major role in the Leave campaign for Britain’s EU membership referendum, and later became a key figure in digital operations during Donald Trump's election campaign. Or, as Wylie describes it, he was the gay Canadian vegan who somehow ended up creating 'Steve Bannon’s psychological warfare mindfuck tool.' In 2014, Steve Bannon-- then executive chairman of the 'alt-right' news network Breitbart-- was Wylie’s boss. And Robert Mercer, the secretive US hedge-fund billionaire and Republican donor, was Cambridge Analytica’s investor. And the idea they bought into was to bring big data and social media to an established military methodology-- 'information operations'-- then turn it on the US electorate. It was Wylie who came up with that idea and oversaw its realization." Cadwalladr:
By that time, Steve Bannon had become Trump’s chief strategist. Cambridge Analytica’s parent company, SCL, had won contracts with the US State Department and was pitching to the Pentagon, and Wylie was genuinely freaked out. “It’s insane,” he told me one night. “The company has created psychological profiles of 230 million Americans. And now they want to work with the Pentagon? It’s like Nixon on steroids.”

He ended up showing me a tranche of documents that laid out the secret workings behind Cambridge Analytica. And in the months following publication of my article in May, it was revealed that the company had “reached out” to WikiLeaks to help distribute Hillary Clinton’s stolen emails in 2016. And then we watched as it became a subject of special counsel Robert Mueller’s investigation into possible Russian collusion in the US election.

The Observer also received the first of three letters from Cambridge Analytica threatening to sue Guardian News and Media for defamation. We are still only just starting to understand the maelstrom of forces that came together to create the conditions for what Mueller confirmed last month was “information warfare.” But Wylie offers a unique, worm’s-eye view of the events of 2016. Of how Facebook was hijacked, repurposed to become a theatre of war: how it became a launchpad for what seems to be an extraordinary attack on the US’s democratic process.

Wylie oversaw what may have been the first critical breach. Aged 24, while studying for a PhD in fashion trend forecasting, he came up with a plan to harvest the Facebook profiles of millions of people in the US, and to use their private and personal information to create sophisticated psychological and political profiles. And then target them with political ads designed to work on their particular psychological makeup.

“We ‘broke’ Facebook,” he says.

And he did it on behalf of his new boss, Steve Bannon.

“Is it fair to say you ‘hacked’ Facebook?” I ask him one night.

He hesitates. “I’ll point out that I assumed it was entirely legal and above board.”

Last month, Facebook’s UK director of policy, Simon Milner, told British MPs on a select committee inquiry into fake news, chaired by Conservative MP Damian Collins, that Cambridge Analytica did not have Facebook data. The official Hansard extract reads:
Christian Matheson (MP for Chester): “Have you ever passed any user information over to Cambridge Analytica or any of its associated companies?”

Simon Milner: “No.”

Matheson: “But they do hold a large chunk of Facebook’s user data, don’t they?”

Milner: “No. They may have lots of data, but it will not be Facebook user data. It may be data about people who are on Facebook that they have gathered themselves, but it is not data that we have provided.”
Two weeks later, on 27 February, as part of the same parliamentary inquiry, Rebecca Pow, MP for Taunton Deane, asked Cambridge Analytica’s CEO, Alexander Nix: “Does any of the data come from Facebook?” Nix replied: “We do not work with Facebook data and we do not have Facebook data.”

And through it all, Wylie and I, plus a handful of editors and a small, international group of academics and researchers, have known that-- at least in 2014-- that certainly wasn’t the case, because Wylie has the paper trail. In our first phone call, he told me he had the receipts, invoices, emails, legal letters-- records that showed how, between June and August 2014, the profiles of more than 50 million Facebook users had been harvested. Most damning of all, he had a letter from Facebook’s own lawyers admitting that Cambridge Analytica had acquired the data illegitimately.

Going public involves an enormous amount of risk. Wylie is breaking a non-disclosure agreement and risks being sued. He is breaking the confidence of Steve Bannon and Robert Mercer.

It’s taken a rollercoaster of a year to help get Wylie to a place where it’s possible for him to finally come forward. A year in which Cambridge Analytica has been the subject of investigations on both sides of the Atlantic-- Robert Mueller’s in the US, and separate inquiries by the Electoral Commission and the Information Commissioner’s Office in the UK, both triggered in February 2017, after the Observer’s first article in this investigation.

It has been a year, too, in which Wylie has been trying his best to rewind – to undo events that he set in motion. Earlier this month, he submitted a dossier of evidence to the Information Commissioner’s Office and the National Crime Agency’s cybercrime unit. He is now in a position to go on the record: the data nerd who came in from the cold.

...[I]n autumn 2013, Wylie met Steve Bannon. At the time, he was editor-in-chief of Breitbart, which he had brought to Britain to support his friend Nigel Farage in his mission to take Britain out of the European Union.

What was he like?

“Smart,” says Wylie. “Interesting. Really interested in ideas. He’s the only straight man I’ve ever talked to about intersectional feminist theory. He saw its relevance straightaway to the oppressions that conservative, young white men feel.”

Wylie meeting Bannon was the moment petrol was poured on a flickering flame. Wylie lives for ideas. He speaks 19 to the dozen for hours at a time. He had a theory to prove. And at the time, this was a purely intellectual problem. Politics was like fashion, he told Bannon.

“[Bannon] got it immediately. He believes in the whole Andrew Breitbart doctrine that politics is downstream from culture, so to change politics you need to change culture. And fashion trends are a useful proxy for that. Trump is like a pair of Uggs, or Crocs, basically. So how do you get from people thinking ‘Ugh. Totally ugly’ to the moment when everyone is wearing them? That was the inflection point he was looking for.”

But Wylie wasn’t just talking about fashion. He had recently been exposed to a new discipline: “information operations,” which ranks alongside land, sea, air and space in the US military’s doctrine of the “five-dimensional battle space.” His brief ranged across the SCL Group-- the British government has paid SCL to conduct counter-extremism operations in the Middle East, and the US Department of Defense has contracted it to work in Afghanistan.

I tell him that another former employee described the firm as “MI6 for hire”, and I’d never quite understood it.

“It’s like dirty MI6 because you’re not constrained. There’s no having to go to a judge to apply for permission. It’s normal for a ‘market research company’ to amass data on domestic populations. And if you’re working in some country and there’s an auxiliary benefit to a current client with aligned interests, well that’s just a bonus.”

When I ask how Bannon even found SCL, Wylie tells me what sounds like a tall tale, though it’s one he can back up with an email about how Mark Block, a veteran Republican strategist, happened to sit next to a cyberwarfare expert for the US air force on a plane. “And the cyberwarfare guy is like, ‘Oh, you should meet SCL. They do cyberwarfare for elections.’”

It was Bannon who took this idea to the Mercers: Robert Mercer-- the co-CEO of the hedge fund Renaissance Technologies, who used his billions to pursue a rightwing agenda, donating to Republican causes and supporting Republican candidates-- and his daughter Rebekah.

Nix and Wylie flew to New York to meet the Mercers in Rebekah’s Manhattan apartment.

“She loved me. She was like, ‘Oh we need more of your type on our side!’”

Your type?

“The gays. She loved the gays. So did Steve [Bannon]. He saw us as early adopters. He figured, if you can get the gays on board, everyone else will follow. It’s why he was so into the whole Milo [Yiannopoulos] thing.”

Robert Mercer was a pioneer in AI and machine translation. He helped invent algorithmic trading-- which replaced hedge fund managers with computer programs-- and he listened to Wylie’s pitch. It was for a new kind of political message-targeting based on an influential and groundbreaking 2014 paper researched at Cambridge’s Psychometrics Centre, called: “Computer-based personality judgments are more accurate than those made by humans.”

“In politics, the money man is usually the dumbest person in the room. Whereas it’s the opposite way around with Mercer,” says Wylie. “He said very little, but he really listened. He wanted to understand the science. And he wanted proof that it worked.”

And to do that, Wylie needed data.

How Cambridge Analytica acquired the data has been the subject of internal reviews at Cambridge University, of many news articles and much speculation and rumour. [Nix has consistently lied about it.]

...The problem with Nix’s response... is that Wylie has a copy of an executed contract, dated 4 June 2014, which confirms that SCL, the parent company of Cambridge Analytica, entered into a commercial arrangement with a company called Global Science Research (GSR), owned by Cambridge-based academic Aleksandr Kogan, specifically premised on the harvesting and processing of Facebook data, so that it could be matched to personality traits and voter rolls.

He has receipts showing that Cambridge Analytica spent $7m to amass this data, about $1m of it with GSR. He has the bank records and wire transfers. Emails reveal Wylie first negotiated with Michal Kosinski, one of the co-authors of the original myPersonality research paper, to use the myPersonality database. But when negotiations broke down, another psychologist, Aleksandr Kogan [a paid Russian spy], offered a solution that many of his colleagues considered unethical. He offered to replicate Kosinski and Stilwell’s research and cut them out of the deal. For Wylie it seemed a perfect solution. “Kosinski was asking for $500,000 for the IP but Kogan said he could replicate it and just harvest his own set of data.” (Kosinski says the fee was to fund further research.)

Kogan then set up GSR to do the work, and proposed to Wylie they use the data to set up an interdisciplinary institute working across the social sciences. “What happened to that idea,” I ask Wylie. “It never happened. I don’t know why. That’s one of the things that upsets me the most.”

It was Bannon’s interest in culture as war that ignited Wylie’s intellectual concept. But it was Robert Mercer’s millions that created a firestorm. Kogan was able to throw money at the hard problem of acquiring personal data: he advertised for people who were willing to be paid to take a personality quiz on Amazon’s Mechanical Turk and Qualtrics. At the end of which Kogan’s app, called thisismydigitallife, gave him permission to access their Facebook profiles. And not just theirs, but their friends’ too. On average, each “seeder”-- the people who had taken the personality test, around 320,000 in total-- unwittingly gave access to at least 160 other people’s profiles, none of whom would have known or had reason to suspect.

What the email correspondence between Cambridge Analytica employees and Kogan shows is that Kogan had collected millions of profiles in a matter of weeks. But neither Wylie nor anyone else at Cambridge Analytica had checked that it was legal. It certainly wasn’t authorised. Kogan did have permission to pull Facebook data, but for academic purposes only. What’s more, under British data protection laws, it’s illegal for personal data to be sold to a third party without consent.

“Facebook could see it was happening,” says Wylie. “Their security protocols were triggered because Kogan’s apps were pulling this enormous amount of data, but apparently Kogan told them it was for academic use. So they were like, ‘Fine’.”

Kogan maintains that everything he did was legal and he had a “close working relationship” with Facebook, which had granted him permission for his apps.

Cambridge Analytica had its data. This was the foundation of everything it did next-- how it extracted psychological insights from the “seeders” and then built an algorithm to profile millions more.

For more than a year, the reporting around what Cambridge Analytica did or didn’t do for Trump has revolved around the question of “psychographics,” but Wylie points out: “Everything was built on the back of that data. The models, the algorithm. Everything. Why wouldn’t you use it in your biggest campaign ever?”

In December 2015, the Guardian’s Harry Davies published the first report about Cambridge Analytica acquiring Facebook data and using it to support Ted Cruz in his campaign to be the US Republican candidate. But it wasn’t until many months later that Facebook took action. And then, all they did was write a letter. In August 2016, shortly before the US election, and two years after the breach took place, Facebook’s lawyers wrote to Wylie, who left Cambridge Analytica in 2014, and told him the data had been illicitly obtained and that “GSR was not authorised to share or sell it.” They said it must be deleted immediately.

“I already had. But literally all I had to do was tick a box and sign it and send it back, and that was it,” says Wylie. “Facebook made zero effort to get the data back.”

There were multiple copies of it. It had been emailed in unencrypted files.

Cambridge Analytica rejected all allegations The Observer put to them.

Dr Kogan-- who later changed his name to Dr Spectre, but has subsequently changed it back to Dr Kogan-- is still a faculty member at Cambridge University, a senior research associate. But what his fellow academics didn’t know until Kogan revealed it in emails to The Observer (although Cambridge University says that Kogan told the head of the psychology department), is that he is also an associate professor at St Petersburg University. Further research revealed that he’s received grants from the Russian government to research “Stress, health and psychological wellbeing in social networks.” The opportunity came about on a trip to the city to visit friends and family, he said.

There are other dramatic documents in Wylie’s stash, including a pitch made by Cambridge Analytica to Lukoil, Russia’s second biggest oil producer. In an email dated 17 July 2014, about the US presidential primaries, Nix wrote to Wylie: “We have been asked to write a memo to Lukoil (the Russian oil and gas company) to explain to them how our services are going to apply to the petroleum business. Nix said that “they understand behavioural microtargeting in the context of elections” but that they were “failing to make the connection between voters and their consumers.” The work, he said, would be “shared with the CEO of the business,” a former Soviet oil minister and associate of Putin, Vagit Alekperov.

“It didn’t make any sense to me,” says Wylie. “I didn’t understand either the email or the pitch presentation we did. Why would a Russian oil company want to target information on American voters?”

Mueller’s investigation traces the first stages of the Russian operation to disrupt the 2016 US election back to 2014, when the Russian state made what appears to be its first concerted efforts to harness the power of America’s social media platforms, including Facebook. And it was in late summer of the same year that Cambridge Analytica presented the Russian oil company with an outline of its datasets, capabilities and methodology. The presentation had little to do with “consumers.” Instead, documents show it focused on election disruption techniques. The first slide illustrates how a “rumour campaign” spread fear in the 2007 Nigerian election-- in which the company worked-- by spreading the idea that the “election would be rigged.” The final slide, branded with Lukoil’s logo and that of SCL Group and SCL Elections, headlines its “deliverables”: “psychographic messaging.”

Lukoil is a private company, but its CEO, Alekperov, answers to Putin, and it’s been used as a vehicle of Russian influence in Europe and elsewhere-- including in the Czech Republic, where in 2016 it was revealed that an adviser to the strongly pro-Russian Czech president was being paid by the company.

When I asked Bill Browder-- an Anglo-American businessman who is leading a global campaign for a Magnitsky Act to enforce sanctions against Russian individuals-- what he made of it, he said: “Everyone in Russia is subordinate to Putin. One should be highly suspicious of any Russian company pitching anything outside its normal business activities.”

...Russia, Facebook, Trump, Mercer, Bannon, Brexit. Every one of these threads runs through Cambridge Analytica. Even in the past few weeks, it seems as if the understanding of Facebook’s role has broadened and deepened. The Mueller indictments were part of that, but Paul-Olivier Dehaye-- a data expert and academic based in Switzerland, who published some of the first research into Cambridge Analytica’s processes-- says it’s become increasingly apparent that Facebook is “abusive by design.” If there is evidence of collusion between the Trump campaign and Russia, it will be in the platform’s data flows, he says. And Wylie’s revelations only move it on again.

...Millions of people’s personal information was stolen and used to target them in ways they wouldn’t have seen, and couldn’t have known about, by a mercenary outfit, Cambridge Analytica, who, Wylie says, “would work for anyone”. Who would pitch to Russian oil companies. Would they subvert elections abroad on behalf of foreign governments?

It occurs to me to ask Wylie this one night.

“Yes.”

Nato or non-Nato?

“Either. I mean they’re mercenaries. They’ll work for pretty much anyone who pays.”

It’s an incredible revelation. It also encapsulates all of the problems of outsourcing-- at a global scale, with added cyberweapons. And in the middle of it all are the public-- our intimate family connections, our “likes”, our crumbs of personal data, all sucked into a swirling black hole that’s expanding and growing and is now owned by a politically motivated billionaire.

The Facebook data is out in the wild. And for all Wylie’s efforts, there’s no turning the clock back.

Tamsin Shaw, a philosophy professor at New York University, and the author of a recent New York Review of Books article on cyberwar and the Silicon Valley economy, told me that she’d pointed to the possibility of private contractors obtaining cyberweapons that had at least been in part funded by US defense.

She calls Wylie’s disclosures “wild” and points out that “the whole Facebook project” has only been allowed to become as vast and powerful as it has because of the US national security establishment.

“It’s a form of very deep but soft power that’s been seen as an asset for the US. Russia has been so explicit about this, paying for the ads in roubles and so on. It’s making this point, isn’t it? That Silicon Valley is a US national security asset that they’ve turned on itself.”

Or, more simply: blowback.


Wylie isn't the only former Cambridge Analytica employee who's blowing the whistle. Next up to bat: Brittany Kaiser, a former Obama volunteer who studied human rights and voted for Bernie Sanders before working for a controversial data analytics company at the center of a global story about the use of data and dirty tricks. Like many other shallow and insipid people who sell their souls to corporations, Kaiser now says the company’s work on Donald Trump’s election campaign left her feeling "incredibly internally conflicted," but she insists she was only doing her job; her political views have nothing to do with her decision to reveal secrets about Cambridge Analytica.
Her testimony, relayed to The Guardian in recent days in a variety of Silicon Valley locations, raises many questions-- about what she says now, and what she did for the company. It will not be easy for Kaiser to put her past behind her. “Corporations like Google, Facebook, Amazon, all of these large companies, are making tens or hundreds of billions of dollars off of monetizing people’s data,” Kaiser says. “I’ve been telling companies and governments for years that data is probably your most valuable asset. Individuals should be able to monetize their own data-- that’s their own human value – not to be exploited.” Asked if she has any regrets, Kaiser says she does. “To be honest, I regret not spending all those years only working for causes I believed in, and instead just learning about how to achieve an end-- how to get a result. I really know how to get a result now-- and I can do it for anybody.”

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