Hacker “Weev” is Released from Prison, Starts Hedge Fund Called TRO LLC, Appears on CNBC

CNBC just got very surreal. I have been following the release from prison of well known hacker and troll “Weev” for several weeks now. What has really captured my attention is his effort to get the world’s smartest hackers to find vulnerabilities in companies, short the shit out of them, and then release the vulnerability to … Read more

Vermont Becomes the First State in the U.S. to Require GMO Labeling – Why This is a Very Big Deal

I don’t spend too much time on GMO labeling here at Liberty Blitzkrieg, but that doesn’t mean I don’t hold a strong opinion on the matter. I completely and without question think that consumers have a right to know whether or not the food they put into their bodies has been engineered with biotechnology, and I certainly think it’s beyond ridiculous that genetically modified foods can still be labeled “natural,” as is the case currently. Apparently, I am not alone, as a New York Times poll late last year showed that a stunning 93% of respondents support such labeling.

Despite such support, GMO labeling bills have been tried and failed in several states in recent years, most notably in California and Washington state. However, Vermont just made history with the passage of H.112. The bill, which requires all GMO foods sold in Vermont to be labeled by July 1, 2016, will now head to the desk of Governor Peter Shumlin who has said he will sign it into law.

At this point, I want to congratulate the great state of Vermont for what they have just done. The passage of this bill is a huge deal on multiple levels, and not just when it comes to food choice and GMO labeling. While it is hugely significant that Vermont will now become the first state in America to require labeling (Maine and Connecticut already passed such bills, but they do not go into effect until a certain number of surrounding states pass similar laws), its significance is even more important when it comes to the states rights movement.

People who say things can’t be changed are fighting on the wrong battlefield. Fuck the feds and fuck Washington D.C. Use the state legislatures to get things done. Already in the past year, two states have ended marijuana prohibition and now the states approach is taking the lead on GMO labeling. The states are doing what the feds never could or would. This fits in with the overall macro trend of decentralization taking over as a means of societal interaction away from centralization. We have the power, it’s time to exercise it. Go Vermont.

Meanwhile, you know this movement is scaring the living shit out of Monsanto, which is why Rep. Mike Pompeo of Kansas just introduced a desperate bill, which activists are referring to as the DARK Act, that would ban states from requiring labeling. That’s Congress for you. Criminals on the Potomac.

The Wall Street Journal covered the story well last week. Here are some excerpts:

The movement against genetically modified crops scored a signal victory Wednesday, as the Vermont legislature passed a bill that would make it the first state to require food makers to label products made with the technology.

The Vermont House voted 114-30 to adopt a state Senate labeling bill. Gov. Peter Shumlin has said he plans to sign the bill, whose requirements would take effect in July 2016.

While Vermont is one of the smallest U.S. states, the legislation marks a victory for activists who have campaigned for GMO labeling, saying consumers have a right to transparency over the widely used technology. Food and agriculture industry groups, which have lobbied aggressively to block similar measures in other states, blasted the Vermont decision, saying it was driven by faulty science and would hurt consumers.

The vast majority of corn and soybeans grown in the U.S. are GMOs, and food companies estimate that about 80% of U.S. packaged-food products contain GMO ingredients in some form.

GMO advocates note that the U.S. Food and Drug Administration has approved their use, and argue that the technology has no proven human health threats and has increased crop yields and helped lower food prices.

For those of you somehow still under the impression the FDA has consumer interests in mind, I suggest you read the following: Fraud Alert: FDA Allowed Drugs with Fraudulent Testing to Remain on the Market

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Guest Post: Is There a Massive High Yield Credit Bubble?

A friend of mine and former fund manager has recently launched a blog, called LarryLarry, where he intends to write musings on the markets and finance, amongst other things. I greatly respect his thought process and I intend to republish some of his work going forward. This will serve as a great compliment to Liberty Blitzkrieg considering I no longer focus my attention on financial markets. So without further ado…

Read The Fine Print To Find The Bubble
by LarryLarry

Here are some snippets from the prospectus for the “Investment Grade Bond Fund” at one of the largest mutual fund complexes and buyers of credit in the country:

The Fund may invest up to 20% of its net assets (plus any borrowings for investment purposes) in any combination of non-investment grade instruments (commonly known as “high yield” or “junk” bonds)…… The Fund may invest in securities rated C and above or determined by the management team to be of comparable quality.

Who would have ever thought a vehicle marketed as investment grade could have up to 20% of its assets in junk? Probably not many people that own these funds.

There is a bubble in higher-risk credit. It is being missed by many because the wrong qualifications for what makes a bubble are being used. When there is debate about bubbles, it almost always centers on the price of an asset category. There is often no mention of the volume of assets in that category trading at that price.

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Say Goodbye to “Net Neutrality” – New FCC Proposal Will Permit Discrimination of Web Content

The concept of “net neutrality” is not an easy one to wrap your head around. Particularly if you aren’t an expert in how the internet works and if you don’t work for an ISP (internet service provider). In fact, I think that lobbyists and special interest groups make the concept intentionally difficult and convoluted so that the average person’s eyes glaze over and they move on to the next topic. I am by no means an expert in this area; however, in this post I will try to explain in as simple terms as possible what “net neutrality” means and what is at risk with the latest FCC proposal. I also highlight a wide variety of articles on the subject, so I hope this post can serve as a one-stop-shop on the issue.

The concept of “net neutrality” describes how broadband access across the internet currently works. Essentially, the ISPs are not allowed to discriminate amongst the content being delivered to the consumer. A small site like Liberty Blitzkrieg, will be delivered in the same manner as content from a huge site like CNN that has massive traffic and a major budget. This is precisely why the internet has become such a huge force for free speech. It has allowed the “little guy” with no budget to compete equally in the “market of ideas” with the largest media behemoths on the planet. It has allowed for a quantum leap in the democratization and decentralization in the flow of information like nothing since the invention and proliferation of the printing press itself. It is one of the most powerful tools ever created by humanity, and must be guarded as the treasure it is.

People have been worried about internet censorship in the USA for a long time. What people need to understand is that censorship in so-called “first world” countries cannot be implemented in the same manner as in societies used to authoritarian rule. The status quo in the U.S. understands that the illusion of freedom must be maintained even as civil liberties are eroded to zero. In the UK, the approach to internet censorship has been the creation of “internet filters.” The guise is fighting porn, but in the end you get censorship. This is something I highlighted in my post: How Internet in the UK is “Sleepwalking into Censorship.”

In the U.S., it appears the tactic might take the form of new FCC rules on “net neutrality,” which the Wall Street Journal first broke earlier this week. While the exact rules won’t become public until May 15th, what we know now is that the FCC intends to allow ISPs to create a “fast lane” for internet content, which established content providers with big bucks can pay for in order to gain preferred access to consumers on the other end.

This is truly the American way of censorship. Figure out how those with the deepest pockets can smother the free speech of those with little or no voice on the one medium in which information flow is still treated equally. The nightmare scenario here would be that status quo companies use their funds to price out everyone else. It would kill innovation on the web before it starts. It’s just another example of the status quo attempting to build a moat around itself that we have already seen in so many other areas of the economy. The internet really is the last bastion of freedom and dynamism in the U.S. economy and this proposal could put that at serious risk. Oh, and to make matters worse, the current FCC is filled to the brim with revolving door industry lobbyists. More on this later.

So that’s my two cents. Now I will provide excerpts from some of the many articles that have been written on the topic in recent days.

First, from the article that started it all in the Wall Street Journal:

WASHINGTON—Regulators are proposing new rules on Internet traffic that would allow broadband providers to charge companies a premium for access to their fastest lanes.

If the rule is adopted, winners would be the major broadband providers that would be able to charge both consumers and content providers for access to their networks. Companies like Google Inc. or Netflix Inc. that offer voice or video services that rely on broadband could take advantage of such arrangements by paying to ensure that their traffic reaches consumers without disruption. Those companies could pay for preferential treatment on the “last mile” of broadband networks that connects directly to consumers’ homes.

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Statists Declare War on Free Speech – College Students Banned from Handing Out Constitutions in Hawaii

There appears to be a growing war against free speech on college campuses across America, and it is a battle we as a society and culture simply cannot lose. If you recall, last fall I highlighted a case in which a student at Modesto Junior College in California was prevented from handing out Constitutions to fellow students on Constitution Day. I suggest you go back and take a read and watch the very troubling video: California Student Banned from Handing Out Constitutions on Campus.

Well it appears that the Constitution is also considered contraband in the state of Hawaii. According to the Daily Caller:

Students Merritt Burch and Anthony Vizzone, members of the Young Americans for Liberty chapter at UH-Hilo, were prevented from handing out copies of the Constitution at a recruitment event in January. A week later, they were again informed by a censorship-minded administrator that their First Amendment-protected activities were in violation of school policy.

Young Americans for Liberty is a great organization by the way.

The students were told that they could only distribute literature from within UH-Hilo’s “free speech zone,” a small, muddy, frequently-flooded area on the edge of campus.

Administrators further clarified their level of respect for students’ free speech rights, making comments like, “This isn’t really the ’60s anymore,” and “people can’t really protest like that anymore,” according to the Foundation for Individual Rights in Education.

Administrators also maintained that university policy took precedent over Constitutional rights, according to the complaint.

“It’s not about your rights in this case, it’s about the University policy that you can’t approach people,” said Ellen Kusano, director of Student Affairs, according to the complaint.

While the above is absolutely ridiculous, and more representative of a totalitarian state than anything remotely resembling freedom, there is some good news. The same law firm that sued on behalf of the Modesto student I mentioned earlier (who won a $50,000 settlement), is suing on behalf of the University of Hawaii student.

Fox News reports that:

Two students at the University of Hawaii at Hilo are suing the school over alleged First Amendment violations after they were told by a campus official that they couldn’t approach fellow students to hand out copies of the Constitution.

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Meet AISight – The Artificial Intelligence Software Being Installed on CCTV Networks Globally

If you thought that CCTV cameras tracking your every move in public was bad enough, you’re going to just love AISight (pronounced “eyesight” of course). The invention of a Houston, Texas based company called BRS Labs (which stands for Behavioral Recognition Systems) is headed by former secret service special agent John Frazzini, and this Orwellian surveillance platform brings artificial intelligence to all of those creepy cameras that have been installed everywhere around you.

Apparently, this system is currently being installed in Boston, and has already been implemented in Chicago and Washington. In the event you live in these cities, I bet you’ve never heard of AISight, and more importantly, I bet there’s been little to no public debate.

The most disturbing part about this platform is that this artificial intelligence defines what is “normal” behavior and anything that falls outside of that narrow band can be flagged for “pre crime” potential. Ultimately, if these things are allowed to proliferate, it will condition humans to behave like zombie automatons fearful that anything interesting or creative might be viewed as criminal.

The NYPD recently engaged in such behavior when it arrested a street artist unlawfully. Now imagine if a computer could do the work the work without human involvement.

The entire sad incident was caught on video. See below:

The “War on Street Artists” – Puppeteer Unlawfully Arrested and Harassed in NYC Subway

For more details on AISight, we turn to ITProPortal:

Imagine a major city completely covered by a video surveillance system designed to monitor the every move of its citizens. Now imagine that the system is run by a fast-learning machine intelligence, that’s designed to spot crimes before they even happen. No, this isn’t the dystopian dream of a cyber-punk science fiction author, or the writers of TV show “Person of Interest”. This is Boston, on the US East Coast, and it could soon be many more cities around the world.

Behavioral Recognition Systems, Inc. (BRS Labs) is a software development company based out of a nondescript office block in Houston Texas, with the motto: “New World. New security.”

BRS Labs’ AISight is different because it doesn’t rely on a human programmer to tell it what behaviour is suspicious. It learns that all by itself.

The system enables a machine to monitor is environment, and build up a detailed profile of what can be considered “normal” behaviour. The AI can then determine what kind of behavior is abnormal, without human pre-programing.

Just what the world needs.

Oh, but wait, it gets even better…

What’s more, AISight permanently learns and registers when changes in normal behavior occur, so no ongoing programing is required from human operators. In order to do this, it employs a technology known as “artificial neural networks”, which mimics the function of the human brain.

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James Clapper Embarks on Propaganda College Speaking Tour After Droves of Students Name Snowden “Personal Hero”

Kevin Gosztola over at Firedoglake does some excellent work, and his latest story about the recent activities of perjuring Director of National Intelligence for the U.S., James Clapper, is no exception. To provide a little context, the Washington Post recently reported that:

Freitag skimmed the extracurriculars, read the first essay, rated it good. GW also asks students to list a role model and two words to describe themselves. As for herself, Freitag said, she would list “Martha Stewart/Tina Fey” and “sassy/classy.”This year, she’s seeing a lot of Edward Snowden citations.

Freitag is an admissions officer at George Washington University, and apparently this trend of college students accurately identifying Edward Snowden as a hero haS given James Clapper a panic attack. So much so, that he is taking time away from protecting us from “terrorists” (a term that now apparently includes folks at the Bundy Ranch according to Harry Reid) to embark upon a propaganda speaking tour of U.S. college campuses to demonstrate to those silly young kids that Snowden is no hero, but actually a traitorous villain.

This whole thing is eerily similar to Banana Ben Bernanke’s college propaganda tour back in 2012, which demonstrates that the status quo simply has one playbook that it sticks to aggressively. The only question I have is how long before Clapper realizes he can earn $250,000 a speech once he leaves his current role, as Benny Bernanke is currently raking in.

From Firedoglake:

Director of National Intelligence James Clapper is touring universities and colleges in the United States in an attempt to persuade students that they should not consider former NSA contractor Edward Snowden a whistleblower or a hero.

Speaking at the GEOINT conference in Tampa, Florida, on April 15, Clapper addressed attendees and told university students at Georgetown University and the University of Georgia about a recent article in The Washington Post on college admissions.

“An admissions officer from George Washington University told The Post that for the admissions’ essay question, ‘Who’s your personal hero?’ the admissions officer observed that she was seeing a lot more of Edward Snowden citations. And the idea that young people see Edward Snowden as a hero really bothers me. So I thought I needed to talk about Snowden at Georgetown and Georgia and I am going to do the same elsewhere at colleges and universities.”

Seems like a great way to spend your time and taxpayer dollars.

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The “War on Street Artists” – Puppeteer Unlawfully Arrested and Harassed in NYC Subway

The following story is the latest in a series of articles I have written recently highlighting the over-prosecution and legal harassment of the poor and disenfranchised across the USA. While wealthy white collar criminals rape and pillage society with total immunity, those who have no voice are being increasingly stomped down upon by an unjust system. Some recent articles on the topic can read below:

Hyper-Sensitive Illinois Mayor Orders Police Raid Over Parody Twitter Account

Charleston Man Receives $525 Federal Fine for Failing to Pay for a $0.89 Refill

The Homeless in NYC Are Now Living in Tiny Spaces in the Frame of the Manhattan Bridge

In some of these cases, there is a ridiculous law on the books to allow such over-prosecution or harassment, while other times, such as in the case below, the cops appear to be making shit up and are acting completely outside of the law.

As someone who grew up in New York City and lived there for 28 years, I am quite familiar with street artists in America’s largest metropolis.

Personally, I’ve always enjoyed them. Some are extremely talented, others not so much, but they always added to the unique character of the city and only rarely posed any sort of threat or engaged in threatening behavior. This is why the following story and video really struck an emotional chord with me and I became overcome with sadness. In so many ways, what happened to Kalan Sherrard is what is happening to our country and culture in general. We are being collectively transformed into drugged out, bland, soulless zombies by a parasitic and incredibly corrupt financial system coupled with unrelenting corporate and government propaganda. Anyone who is interesting or stands out is shouted down by the establishment as a “conspiracy theorist,” a “radical,” or as Harry Reid himself recently stated, a “domestic terrorist.”

Make no mistake about it, what just happened to Kalan Sherrard is happening to us all. It’s just that many of us don’t see it yet.

The New York Daily News reports that:

Kalan Sherrard was in the middle of another of his nihilist-anarchist puppet shows in the Times Square subway station April 6 when cops slapped him in cuffs and charged him with disorderly conduct for creating a hazardous condition.

Now, the performance artist from outside Seattle is considering a lawsuit against the NYPD for what he considers an unlawful arrest. The episode was captured by a friend filming a documentary of the show, which Sherrard refers to as “not happenings.”

“It’s obvious in the video I’m not impeding anybody’s access,” he said. “They told me I was violating subway rules, but when I asked what rules they wouldn’t tell me.”

An NYPD spokeswoman confirmed the arrest.

“He was observed obstructing the free flow of traffic at the subway,” the spokeswoman said. “He was placing dolls and objects on the mezzanine walkway.” 

When you watch the video you can see clearly he wasn’t obstructing anything and it was 1am.

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Mortgage Standards Are Plunging – It’s Muppet Fleecing Time All Over Again

In February, I highlighted the fact that subprime loans were about to make a return in my piece: Subprime Mortgages are Back…This Time Marketed as “Second Chance Purchase Programs.” In that article, I posited that with the “all cash” private equity shops and hedge funds no longer able to make good returns through buying new homes to rent, these investors would need some sucker to sell to in order to realize a return (Blackstone’s purchases have plunged 70% recently). That sucker, as always, will be the retail muppets, and those muppets will be lured in through subprime. This is now starting to happen in earnest.

The following article from the Wall Street Journal is both depressing and disturbing. Rather than allowing home prices to reset at a lower level after the 2008 crash where to normal buyers could afford a sane 20% mortgage, our central planners decided to do “whatever it takes” to re-inflate the housing bubble. This was achieved through wealthy investment pools buying properties for all cash. The trouble is, with home prices now inflated by these financial buyers and no real increase in wages, homes are simply unaffordable. So what do you do? You bring back subprime and get the peasants long real estate with essentially zero money down all over again. Truly remarkable.

From the Wall Street Journal:

While standards remain tight by historical measures, lenders have started to accept lower credit scores and to reduce down-payment requirements.

One such lender is TD Bank, Toronto-Dominion Bank’s U.S. unit, which on Friday began accepting down payments as low as 3% through an initiative called “Right Step,” geared toward first-time buyers and low- and moderate-income buyers. TD initially launched the program last year with a 5% down payment. It keeps the product on its books and doesn’t charge for insurance. Borrowers also don’t need to put down any of their own cash if a family, state or nonprofit group provides a down-payment gift.

So a measly 5% downpayment wasn’t good enough. They had to drop it to 3%. Frightening.

The changes also are a recognition by lenders that the business of refinancing old mortgages, which had been a huge profit center for banks, is nearly tapped out. To generate future profits, banks will have to compete for borrowers who may not have perfect credit or large down payments.

Valley National Bank, a community bank based in Wayne, N.J., lowered down-payment requirements to 5% from 25% this month on mortgages for certain buyers in New York, New Jersey and Pennsylvania. Next month, Arlington Community Federal Credit Union, based in Arlington, Va., will begin accepting 3% down payments on mortgages up to $417,000, down from 5%.

Yes, you read that right, 25% to 5%. Holy fuck.

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Hyper-Sensitive Illinois Mayor Orders Police Raid Over Parody Twitter Account

Just yesterday, I wrote a post about how a South Carolina construction worker was fined $525 and lost his job for not paying $0.89 for a drink refill while working at the Ralph H. Johnson VA Medical Center in downtown Charleston. The point was to emphasize how the law comes down with a devastating vengeance when an average citizen commits a minor crime, yet allows the super rich to loot and pillage with zero repercussions. There is now a systemic two-tier justice system operating in these United States, and the result will unquestionably be tyranny if the trend continues unabated.

The latest example of a lowly citizen being subject to a disproportionate use of the law, is Jon Daniel of Peoria, Illinois. Jon was behind a parody Twitter account that mocked Peoria mayor Jim Ardis, and his biggest mistake was not making it clear that it was a parody. As a result, Twitter had already suspended the account weeks ago. Problem solved, right? Wrong.

The tough guy mayor was so offended that a plebe would dare criticize his royal highness that he ordered a police raid on the home of Jon Daniel and his roommates. Peoria native, Justin Glawe wrote an excellent article on the subject for Vice. He writes:

Jon Daniel woke up on Thursday morning to a news crew in his living room, which was a welcome change from the company he had on Tuesday night, when the Peoria, Illinois, police came crashing through the door. The officers tore the 28-year-old’s home apart, seizing electronics and taking several of his roommates in for questioning; one woman who lived there spent three hours in an interrogation room. All for a parody Twitter account.

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