Michael Krieger

My name is Michael Krieger, and I am the creator and editor of Liberty Blitzkrieg. I'm originally from New York City.

As far as my academic and professional background, I attended college at Duke University where I earned a double major in Economics and Spanish. After completing my studies in 2000, I took a job at Lehman Brothers where I worked with the Oil analyst in the Equity Research Department.  In 2005, I joined Sanford C. Bernstein where I served as the Commodities Analyst on the trading floor. About halfway through my time there, I started to branch out and write opinions on bigger picture "macro" topics that no one else at the firm was covering. These opinion pieces were extremely popular throughout the global investment community, and I traveled around providing advice to some of the largest mutual funds, pension funds and hedge funds in the world.

I loved my job, but as time passed I started to educate myself about how the monetary and financial system functions and what I discovered disgusted me. I no longer felt satisfied working within the industry, and I resigned in January 2010.  At that point, I started a family investment office and continued to write macro pieces on economic, social and geopolitical topics. That summer, I drove cross country for six weeks and ultimately decided to leave the crowded streets of Manhattan for the open spaces of Boulder, Colorado, where I currently reside.

In the years that followed, I gradually recognized that my true passion centers upon writing on issues of significant societal importance given the extremely challenging times we live in. This realization culminated with me losing interest in financial markets and eventually launching this website in early 2012.

If you are interested in a more detailed description, replete with colorful anecdotes, of how I ended up making this bizarre professional transition, take the time to watch the video below.

https//www.youtube-nocookie.com/embed/DcqMN-FXCIE?rel=0

In Liberty,
Michael Krieger

How Facebook Exploits Underage Girls in its Quest for Ad Revenue

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Sophie Bean, 14, of Sequim, Wash., said she was thought she was “liking” a Facebook ad related to fashion modeling. Instead, it promoted a Facebook page that recruited adult webcam models.

“I just thought it was for modeling, and I’m interested in that, and I thought it would help me out,” Sophie said.

Sophie wasn’t the only teen connecting with the page, which Facebook statistics show is most popular with users 13 to 17. Clicking on it didn’t pull the teens into nude webcam modeling, but did mean they would receive the page’s updates and could be mentioned in future versions of the ad.

– From the Wall Street Journal’s recent article: Nude Webcams and Diet Drugs: the Facebook Ads Teens Aren’t Supposed to See

This post is my third in recent weeks exploring what exactly is going on with the Facebook business model. The company reported stellar results in its latest earnings report, which has led to many questions as to exactly how they are making all this advertising money. Well the pieces are finally starting to come together, and the answer is not pretty.

For some context, I suggest you first read the previous articles I posted:

How Much of Facebook’s Ad Revenue is From Click Fraud?

This Man’s $600,000 Facebook Disaster is a Warning For All Small Businesses

With all that in mind, let’s move on to the third piece of the puzzle. The routine exploitation of the weakness and most gullible members of society, teenage girls.

The crazy thing here is not that some random selection of underage girls are being led to click on ads that direct them to adult video cam sites and dangerous dietary supplements, but that they represent the primary demographic clicking on these ads.

This story from the Wall Street Journal is sure to make your blood boil no matter who you are, but particularly if you are a parent with young children.

From the WSJ:

“Who do you like?” asked recent ads on Facebook, featuring young women in alluring poses.

Some of the ads were configured to reach young teens, who were invited to join an app called Ilikeq that let others rate their attractiveness, comment on their photos and say if they would like to date them.

That’s how 14-year-old Erica Lowder’s picture ended up on display to adult men online. Users of Ilikeq, one of Facebook’s fastest-growing “lifestyle” apps, were able to click through to the Indianapolis girl’s Facebook page. 

The case offers a glimpse into how young Facebook users are sometimes exposed to ads inappropriate for them. A 14-year-old girl in Washington state said she “liked” an ad that led to the Facebook page of a nude webcam-modeling site.
Facebook said it approved the ads for young teens because it hadn’t categorized Ilikeq as a dating site. It said it has now done so and has disabled Ilikeq ads for those below its minimum age for dating-site ads, 18. 

Advertisers on Facebook can set their ads to reach all users or narrow the focus. Facebook’s website says it can help advertisers target consumers based on an array of user information it collects, such as age, gender, relationship status, politics and type of phone owned.

“We take the quality of ads on Facebook very seriously,” Facebook said in a statement. 

Really? You could’ve fooled me.

Facebook used to limit ads to users 18 and older by default. An advertiser who wanted to reach younger people had to change the setting.

In 2011, it eliminated this restriction for some advertisers, so their ads could be shown to all unless specified. That change was extended to all advertisers in 2012, around the time of Facebook’s initial public offering.

Just a coincidence I’m sure…

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Yes the Government is Spying on You Through Your Webcam – Another “Conspiracy Theory” Proven True

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I still remember many years ago in response to becoming aware of the possibility that my computer webcam could be accessed remotely I decided to put a piece of duct tape over the camera. I also remember the look on some of my friends’ faces upon seeing this. They thought I was nuts. It wasn’t even a conversation I was comfortable having since the idea that the government or NSA could or would peep on innocent Americans through their webcams was beyond preposterous for the vast majority of people

This topic is not exactly new, and I addressed it last April in my piece: A Look into the Malware the FBI Uses to Spy Through Webcams.

Now, thanks to Edward Snowden, we know more. Much, much more.

From the Guardian:

Britain’s surveillance agency GCHQ, with aid from the US National Security Agency, intercepted and stored the webcam images of millions of internet users not suspected of wrongdoing, secret documents reveal.

GCHQ files dating between 2008 and 2010 explicitly state that a surveillance program codenamed Optic Nerve collected still images of Yahoo webcam chats in bulk and saved them to agency databases, regardless of whether individual users were an intelligence target or not.

In one six-month period in 2008 alone, the agency collected webcam imagery – including substantial quantities of sexually explicit communications – from more than 1.8 million Yahoo user accounts globally.

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Video of the Day – Hitler Responds to Bitcoin Surviving the Mt. Gox Collapse

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Here’s the latest in a long running series of creative Hitler video spoofs, which cover various contemporary topics of interest. This latest one takes on the recent chaos happening in the Bitcoin world, specifically related to the collapse of Mt. Gox (read my thoughts on this topic here). This video covers a lot of ground, … Read more

U.S. Senator Wants to Ban Bitcoin – To be Followed by Book Burnings and Witch Hunts

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Before the U.S. gets too far behind the curve on this important topic, I urge the regulators to work together, act quickly, and prohibit this dangerous currency from harming hard-working Americans. – Senator Joe Manchin, in his letter calling for a ban on Bitcoin Whenever you hear a politician say he or she wants to do … Read more

Fabrice “Fabulous Fab” Tourre to Teach Economics Class at University of Chicago

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Just in case you thought for a second that the sorry discipline we call economics couldn’t stoop any further into the gutter of academic idiocy and irrelevance, think again. It’s now being reported that ex-Goldman Sachs trader Fabrice “Fabulous Fab” Tourre (recently convicted on six counts of securities fraud) will be teaching an honors economics class at the “prestigious” University of Chicago.

There’s nothing like an esteemed University setting the already culturally accepted example that ethics are for suckers. Stealing, cheating and corruption are the values most exalted in today’s world. It doesn’t matter how you achieve your wealth, as long as you attain it. After all, it’s not as if you’ll ever get in trouble for it as long as you work for a “Too Big to Jail” bank.

From the UK’s Telegraph:

Fabrice Tourre, the former Goldman Sachs trader convicted on six counts of securities fraud six months ago, will teach an honours class in economics at the University of Chicago this spring.

Mr Tourre’s weekly Thursday afternoon seminar, called “Elements of Economic Analysis”, is part of his studies for a PhD in economics, after he completed a masters in operations research at Stanford University.

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This Man’s $600,000 Facebook Disaster is a Warning For All Small Businesses

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It continues to amaze me how people are completely ignoring what appears to be an incredible amount of shadiness inherent in Facebook’s business model. Whether or not this is intentional click fraud, it is clear that advertisers are not getting what they think they are getting. They won’t be fooled forever, and once they wake up to the money being wasted on fake “likes” and “clicks,” I’m curious to see what happens to their revenue.

The following article from SF Gate is a perfect followup to my post from a couple weeks ago: How Much of Facebook’s Ad Revenue is From Click Fraud?

Perhaps the most shocking passage from the entire article is the following:

Naturally, Brar began disputing his bill with Facebook. He wanted his clicks audited by a third party, to see how many were genuine. Then he discovered that Facebook’s terms of service forbid third-party verification of its clicks. That’s something all advertisers should be aware of before they spend a penny on Facebook.

Facebook is different from the rest of the online ad industry, which follows a standard of allowing click audits by third parties like the IAB, the Media Ratings Council or Ernst & Young.

Um, ok then…

Now more from the SF Gate:

Raaj Kapur Brar runs a small but successful empire of online fashion magazines from his base just outside Toronto. Some of his titles are huge online brands, such as Fashion & Style Magazine, which has 1.6 million Facebook fans.

That’s more fans than Elle magazine has.

Recently, however, Brar has fallen out of love with Facebook. He discovered — as Business Insider reported recently — that his Facebook fanbase was becoming polluted with thousands of fake likes from bogus accounts. He can no longer tell the difference between his real fans and the fake ones. Many appear fake because the users have so few friends, are based in developing countries, or have generic profile pictures.

At one point, he had a budget of more than $600,000 for Facebook ad campaigns, he tells us. Now he believes those ads were a waste of time.

Facebook declined multiple requests for comment on this story.

Brar’s take is a cautionary one because Facebook has 25 million small businesses using its platform for one marketing purpose or another. Many of them are not sophisticated advertisers — they are simply plugging a credit card number into the system and hoping for the best. This is what can happen if you don’t pay careful attention to contract language, or the live, real-time results your campaigns on Facebook are having.

Here’s how Brar believes it went down: He became interested in advertising on Facebook in 2012, and he took it seriously. He went to Facebook’s local Toronto office where he was trained to use the advertising interface. They set up the campaign, and ran a small “beta” test. Then, in late October Brar pulled the trigger on a massive push through Facebook’s Ads Manager. He used Bitly and Google Analytics to measure the number of clicks his campaign was generating.

The results were disastrous, Brar says.

Facebook’s analytics said the campaign sent him five times the number of clicks he was seeing arrive on his sites, which Brar was monitoring with Bitly, Google Analytics, and his own web site’s WordPress dashboard. There was a reasonable discrepancy between the Bitly and Google numbers, Brar says, but not the five-fold margin between Google’s and Facebook’s click counts.

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The Inside Bitcoins Conference is Coming to NYC – April 7-8

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Last summer, I attended my very first Bitcoin conference. It was the Media Bistro sponsored “Inside Bitcoins” Conference and it was an incredible experience for me on many levels. To read my summary of the conference check out my post: Inside Bitcoins: Welcome to Satoshi Square. Conference organizers describe the upcoming event as follows: After thousands … Read more

Apple’s Massive Security Flaw: NSA Exploit or an Honest Mistake?

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If you use Apple products you need to be aware of a very serious bug affecting the operating systems running on their devices. I was first made aware of this on Friday when John Hopkins cryptography professor Matthew Green tweeted the following:

Since I was away for the weekend, I wasn’t able to do any research into this until today. Fortunately, I came across an excellent article from Gizmodo. In a nutshell, it appears that Apple has released fixes for mobile devices (iPhones and iPads), but you need to go ahead and perform a software update to iOS 7.0.6. Unfortunately, there is no fix yet for Macs. This means if you are operating a Mac computer and using public wifi you should not use Safari as your browser. It is suggested you use Firefox or Chrome.

Even more terrifying is that although this flaw only became widely known about in the past several days, it has been there since September 2012. This has resulted in some claims of conspiracy. As Gigazom notes:

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South Carolina City Implements Law that Requires a $120 Permit to Feed Homeless People

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Gandhi famously noted that: The greatness of a society and its moral progress can be judged by the way it treats its animals. I would agree with that, as well as the obvious observation that a society’s greatness can also be judged by how it treats its most vulnerable members. This isn’t to romanticize homelessness or … Read more

Department of Homeland Security Moves to Install National License Plate Tracking System

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Earlier today, I highlighted a program planned by the FCC named the Critical Information Needs study, which will embed “government researchers” into media organizations in order to make sure they are doing their job properly. This insane anti-free press measure is extraordinarily disturbing and now we find out that the Department of Homeland Security (DHS) has plans to outsource the creation of a gigantic, comprehensive nationwide license plate database to a private corporation.

The status quo is now overtly doubling down on surveillance in the wake of the Snowden revelations rather than reigning them in. Game is on folks. Things are getting very serious.

From the Washington Post:

The Department of Homeland Security wants a private company to provide a national license-plate tracking system that would give the agency access to vast amounts of information from commercial and law enforcement tag readers, according to a government proposal that does not specify what privacy safeguards would be put in place.

The national license-plate recognition database, which would draw data from readers that scan the tags of every vehicle crossing their paths, would help catch fugitive illegal immigrants, according to a DHS solicitation. But the database could easily contain more than 1 billion records and could be shared with other law enforcement agencies, raising concerns that the movements of ordinary citizens who are under no criminal suspicion could be scrutinized.

It’s for the children! How can you object to saving the children!

“It is important to note that this database would be run by a commercial enterprise, and the data would be collected and stored by the commercial enterprise, not the government,” she said.

Yeah, because that makes me feel so much better…

But civil liberties groups are not assuaged. “Ultimately, you’re creating a national database of location information,” said Jennifer Lynch, a staff attorney with the Electronic Frontier Foundation. “When all that data is compiled and aggregated, you can track somebody as they’re going through their life.”

The agency said the length of time the data is retained would be up to the winning vendor.Vigilant Solutions, for instance, one of the leading providers of tag-reader data, keeps its records indefinitely.

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