Artificial Intelligence is Here – Computer Program Passes Turing Test as Socialbots Infiltrate Twitter

Screen Shot 2014-06-09 at 12.06.11 PMToday, I want to highlight two interrelated and significant developments in the world of AI, or Artificial Intelligence. The first has to do with a computer program called “Eugene Goostman,” which has reportedly become the first artificially created human being to fool more than 30% of judges that he is a real person. The test was recently conducted at the Royal Society in London and the UK’s Independent reported yesterday that:

A program that convinced humans that it was a 13-year-old boy has become the first computer ever to pass the Turing Test. The test — which requires that computers are indistinguishable from humans — is considered a landmark in the development of artificial intelligence, but academics have warned that the technology could be used for cybercrime.

Computing pioneer Alan Turing said that a computer could be understood to be thinking if it passed the test, which requires that a computer dupes 30 per cent of human interrogators in five-minute text conversations.

Eugene Goostman, a computer program made by a team based in Russia, succeeded in a test conducted at the Royal Society in London. It convinced 33 per cent of the judges that it was human, said academics at the University of Reading, which organized the test.

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Matt Stoller Destroys Timothy Geithner in His Epic Review of “Stress Test”

Geithner is at heart a grifter, a petty con artist with the right manners and breeding to lie at the top echelons of American finance at a moment when the government and financial services industry needed someone to be the face of their multi-trillion dollar three card monte. He’s going to make his money, now that he’s done living his life of fantastic power after his upbringing of remarkable mysterious privilege. After reading this book and documenting lie after lie after lie, I’m convinced that there’s more here than just a self-serving corrupt official. There’s an entire culture, of figures at Treasury, the Federal Reserve, in the entire Democratic Party elite structure, and in the world of journalism, a culture in which Geithner is seen as some sort of role model.

– From Matt Stoller’s fantastic article published yesterday, The Con-Artist Wing of the Democratic Party

Timothy Geithner is likely to go down in American history as one of the most dangerous, destructive cronies to have ever wielded government power. The man is so completely and totally full of shit it’s almost impossible not to notice.

The last thing I’d ever want to do in my free time is read a lengthy book filled with Geithner lies and propaganda, so I owe a large debt of gratitude to former Congressional staffer Matt Stoller for doing it for me. Stoller simply tears Geither apart limb from limb, detailing obvious lies about the financial crisis, and even more interestingly, Geithner’s bizarre bio, replete with mysterious and inexplicable promotions into positions of power.

So without further ado, here are some excerpts from this excellent article. From Vice:

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Credit Bubble Update – Issuance of CLOs Expected to Hit Record in 2014

Screen Shot 2014-06-04 at 3.44.53 PMThe effort to recreate the disaster of 2008, but on an even more colossal scale, is moving along at a brisk pace. In the past several months, we have seen the triumphant return of many of the worst practices of 2006/07 to such an extent that I have made it a key theme of this site in 2014. For those of you playing catchup, I suggest reading the following:

Junk Borrowers Are Increasingly “Adjusting Earnings” to More Easily Sell Debt

Credit Mania Update – The Chase for CCC-Rated Bonds

Is the Credit Bubble Popping? Carlyle Group Warns on Frothiness and Junk Bond Deals Get Pulled

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

The signs of credit and financial market insanity are everywhere, and it appears we have now entered the late stages of what Mises called the “crack-up boom.” When this cycle runs its course and crashes to the ground is of course impossible to predict, but cycle work from folks like Martin Armstrong point to a turning point sometime in mid-to-late 2015.

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Video of the Day – Teen Makes Nancy Pelosi Squirm with His Question on the NSA

Screen Shot 2014-06-03 at 3.07.38 PMYou’ve got to give young Andrew Demeter a lot of credit. Given the chance to meet a powerful Congresswoman, most people would melt into a sad puddle of unjustified reverence and pathetic groveling. Not this young man. When he was given the opportunity to ask Nancy Pelosi a question, he confronted her on the NSA’s unconstitutional spy practices and why she hasn’t done anything to stop it, considering she claims to be so “liberal.”

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Eric Holder Announces Task Force to Focus on “Domestic Terrorists”

Screen Shot 2014-06-03 at 11.06.29 AMIt’s been obvious for quite some time that the so-called “war on terror” is nothing more than a fear-mongering induced power grab; a convenient excuse to strip the citizenry of its civil liberties and humanity. Many commentators, including myself, have predicted for years that the entire counter-terror juggernaut that has been constructed post-9/11 would be ultimately redirected upon the domestic population.

Snowden’s heroic whistleblowing has already proven without a doubt that the government spy apparatus (along with tech company complicity) has been zeroed in on the domestic population for quite some time, but is the situation about to escalate? Are the feds so fearful of their own people, they are about to focus all their counter-terror energy on U.S. citizens? It appears so.

I warned about this development back in 2011 in my post: The War on Freedom. In it I stated:

This whole charade shouldn’t be called “The War on Terror.”  It is actually all about keeping the citizenry terrified.  The government loves keeping you in a state of fear so that then they can do anything they want to the little sheep.  It should be called “The War on Freedom.”  Your freedom.

Before I get to the main topic of this article, I think it’s important to read excerpts from yesterday’s powerful and timely op-ed by Noam Chomsky titled: Edward Snowden, the World’s “Most Wanted Criminal. Discussing the Snowden revelations, he writes:

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This is Huge – Bitcoin Apps May Finally be Coming to Apple

Screen Shot 2013-11-25 at 5.56.51 PMApple’s brand suffered earlier this year when the company decided to ban the  Blockchain Bitcoin app. In fact, it unleashed such a firestorm that diehard technologists and Bitcoin fans took to YouTube to post videos of themselves destroying their iPhones in a number of creative ways, including with a sniper rifle and a machete. In the event you haven’t seen these before, you can watch some of them here.

Moving along to the topic at hand, many people are closely scrutinizing Apple’s policies today due to the kickoff of the company’s annual Worldwide Developer Conference. For folks within the Bitcoin community, focus has been on a small recent entry within the section on “Purchasing and Currencies” within the document: App Store Review Guidelines. See below:

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Ecuador to Transfer More Than Half its Gold Reserves to Goldman Sachs in Exchange for “Liquidity”

Screen Shot 2014-06-02 at 10.45.48 AMThis is a great example of how the game works. In a world in which every government on earth needs “liquidity” to survive, and the primary goal of every government is and always has been survival (the retention of arbitrary power at all costs), the provider of liquidity is king. So what is liquidity and who provides it?

In the current financial system (post Bretton Woods), the primary engine of global liquidity is the U.S. dollar and dollar based assets generally as a result of  its reserve currency status. Ever since Nixon defaulted on the U.S. dollar’s gold backing in 1971, the creation of this “liquidity” has zero restrictions whatsoever and is merely based on the whims and desires of the central planners in chief, i.e., the Federal Reserve. As the primary creator of the liquidity that every government on earth needs to survive, the Federal Reserve is thus the most powerful player globally in not only economic, but also geopolitical affairs.

The example of the so-called sovereign nation of Ecuador relinquishing its gold reserves to Goldman Sachs for “liquidity” which can be conjured up by the Fed on a whim and at zero cost tells you all you need to know about how the world works (read my post: Why Fiat Money is Immoral).

Now from Bloomberg:

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19-Month-Old Toddler in Critical Condition After Cops Throw Flash Bang Grenade into Playpen

Screen Shot 2014-06-01 at 1.24.59 PMJust in case you aren’t already convinced that the “war on drugs” is the biggest waste of time, energy, and money imaginable, perhaps the following tragic tale will push you over the edge. This story touches on several very important themes that I highlight quite often on this site. Specifically, it demonstrates the dangers of the militarization of the U.S. police force, combined with the increased use of SWAT raids on homes of Americans who in many cases have committed non-violent offenses and victimless “crimes.”

One of the most shocking statistics I have come across in this regard is the fact that there are now 50,000 SWAT raids happening annually in America. Many of these are in response to minor “crimes,” if you can even call them that, and provide the police with the opportunity to play warrior cop. Earlier this year, I highlighted the disturbing video of a SWAT raid in Iowa in which the cops were going after credit card fraud. Last year, I highlighted a SWAT raid against an organic farm in Texas. Is this Afghanistan, or a supposedly free country?

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Home Equity Loans Jump 8% as Broke American Serfs Scramble for Cash

Screen Shot 2014-05-30 at 3.15.18 PM With real incomes stagnant and the cost of everything from food, school tuition and healthcare premiums skyrocketing for millions of Americans, it appears that borrowing against one’s home is once again a key source for consumption, if not survival, for the nearly extinct socio-economic demographic known as the middle-class.

The Wall Street Journal reported yesterday that home-equity lines of credit (Helocs) had increased at a 8% rate year-over-year in 1Q14. Some banks are more aggressive than others, and perhaps we shouldn’t be surprised to see TBTF government welfare baby Bank of America leading the charge, with $1.98 billion in Helocs in the first quarter, up 77% versus 1Q13.

From the WSJ:

A rebound in house prices and near-record-low interest rates are prompting homeowners to borrow against their properties, marking the return of a practice that was all the rage before the financial crisis.

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New Massive Federal Database to Hold Financial Information on Hundreds of Millions of Americans

Screen Shot 2014-05-30 at 12.26.47 PMThe war on privacy continues unabated, as the U.S. government continues to prove time and time again that it views the citizenry as a bunch of cattle to be branded, herded and dealt with at will. It doesn’t seem to bother anyone in the establishment that the public has lost all faith in institutions and so-called “authority” (a concept which I do not believe in to begin with). The evidence of a growing number of Orwellian databases being created has been available for quite some time. Most recently, I covered this topic in the following articles:

FBI Plans to Have 52 Million Photos in Facial Recognition Database by 2015

Guess What’s Hidden in the Immigration Bill? A National Biometric Database for Citizens

Moving along, the public faces another sinister and unacceptable invasion to our privacy. A national financial database is being planned, which would contain the most intimate details of our entire financial lives. It may apply to as many as 227 million Americans. We learn from the Washington Examiner that:

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