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Brownstone Institute

Sam Bankman-Fried and the Missing Billions for Pandemic Planning

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11 minute read

From the Brownstone Institute

BY Jeffrey A. TuckerJEFFREY A. TUCKER

Yes, I watched the appalling scenes of Sam Bankman-Fried’s media tour. He repeatedly returns to the theme of his philanthropy: pandemic planning. What does this 30-year-old computer guy know about infectious disease? No more than Bill Gates did when he began his malanthropic crusade through the universities, journals, and nonprofits and imposed his lockdown-and-vaccinate ideology on them, thus compromising a whole generation of infectious-disease scientists.

Bankman-Fried saw how much influence this bought Gates and decided to replicate the experience in a mere few years in the midst of a pandemic. As we’ve documented, he gave millions but promised billions. The promise tends to be even more effective than money in the bank. All the better, he backed his “pandemic planning” support with $40 million (Elon Musk speculates it was far more) for politicians who shared his supposed passion to control infectious disease.

And so Sam of FTX, who seems to have stolen and otherwise misdirected billions from his own crypto scam, was invited to speak at a New York Timesevent called Dealbook. A seat in the audience cost $2,400. He had been booked for the gig long before because he was a darling of the left, having thrown around many millions to back Democrats in the midterms.

He was also loved for running the second-largest crypto exchange in the world while babbling left-wing prattle about effective altruism. He advertised himself as the world’s most generous billionaire at a mere 30 years old! He urged others to do the same, giving to his brother’s charity devoted to pandemic planning, just as an example.

With his disheveled look and halting speech patterns, he struck many as a genius. One would have to let go of all normal intuition to believe that, but here is where we are today.

The interview pitched a series of softball questions with the mask of a tough interrogation. Bankman-Fried replied with a bunch of financial-sounding mumbo jumbo that the interviewer could not really follow, so of course he gave him a pass. In the end, the interviewer and the audience gave the thief a round of applause for his frank answers and accessibility.

Sam claimed that his lawyers advised against this particular appearance. I don’t believe it. I suspect that his lawyers understand something very dark about our times. If you can bamboozle an audience at the New York Times, you stand a better chance of favorable treatment in a court of law. That’s why he is continuing his media rounds. Hey, why not a speaking tour to boot?

How did Bankman-Fried justify himself? Essentially he said that he had downplayed the downside risks in a possible bear market in which his tokens suddenly lost 90% of their value. He had not anticipated this. And, he seemed to imply, had the markets not changed direction, his company would be solvent. Hence, none of this is really his fault. It’s just what happens when the market winds change course.

By comparison, Bernie Madoff’s scam was rather simple. He used the money of new investors to pay a return to old investors. He gradually came to realize that he had better success in business by doing this than relying on market forces themselves. By offering a predictable 9 percent return, he could always attract new money in up markets or down markets. In a sense he was right: his Ponzi scheme lasted 20 years!

When the housing market crashed and the money dried up, and he could no longer find new chumps to pay the old chumps, he admitted it. He said he lied and that he was running a scam. He pled guilty, went to jail, and died. One son killed himself and the other died. His widow today lives a modest life, still reeling from the horribleness of it all.

Sam’s scheme was far more complicated. It involved mixing funds over a huge range of companies that he owned, so his own exchange had an open spigot of customer funds going to his own Alameda Research, which would use those funds to buy the token FTT in which customer funds were held. It was the same scam as Madoff but tokenized in a world that has stupidly come to believe that anyone can create a thing of value with a few mouse clicks and some incantations of the word blockchain.

Crucially, Bankman-Fried paid off all the right people along the way. He paid nonprofits, media companies, and politicians, and made all the right noises about the need to regulate the industry more than is currently the case. As a result, his media darling status persists even now, as the New York Times and MSNBC work hard daily to rehabilitate him, despite his not being able to account for some $20 billion in missing funds.

In the dystopian novel and film  The Hunger Games, the elites have divided society into many districts depending on their function and economic status. Only District One truly lives well, and here you find the greatest champions of the system, which is kept alive through top-down tyranny. The games themselves are designed to shore up regime stability by necessitating random sacrifices of the lives of kids forced into a zero-sum game of murder.

The whole thing looks implausible on first viewing. How could the richest of the rich sit by and watch, cheering on this blood-thirsty tragedy? On second thought, the whole thing is wholly believable. Elites socialize themselves to believe whatever it is that protects their wealth and status. That’s exactly why such a large crowd of people gathered at the New York Times to watch the validation and vindication of Sam, and they happily cheered his fake honesty and transparency at the end.

The display was disgusting but entirely predictable if you understand something about how our own hunger games are played. In this decade and a half of easy money, a whole class of people has risen to the top of the cultural echelon not by productive labor but by educational credentials and being part of the corporate float. They have come to believe that the system makes sense simply because it has benefited them.

This is why they so gladly took to pandemic controls when they were at their height. They would “stay home and stay safe” while the proletariat slogged through the streets carrying dinners in bags to drop off at doorsteps. In some extremely strange way, this felt like a utopia for the upper classes. This – and $10 trillion to back the whole scheme – is why the lockdowns lasted as long as they did.

We are nowhere close to getting to the bottom of the whole scam. SBF gave millions away to all sorts of institutions while marketing his grift as altruism. He later admitted that his fake-woke philosophizing was nothing but a cover, as it is for all these people, which is why his admission didn’t really disqualify him from continued membership in the class of media and business elites.

Nothing exposes the economic and financial hypocrisies of our time as much as this FTX caper. We can report some good news however: it is not long for the world. Elon Musk is demonstrating how a competent leader can take over a single company, fire 75 percent of its employees, make the platform work better than ever, and still possibly make a profit. For the sake of civilization, let us hope that the Musk model will inspire many coming corporate upheavals.

District One needs to be thoroughly cleansed and the sooner the better. The cleansing fire in our times takes the most implausible form one can imagine: positive real interest rates. If the Fed sticks to its agenda – and it likely will – we will see every manner of upheaval coming in the next six months. The court dockets will become even more full than they currently are, and there won’t be enough investigators available to unravel this and so many other scandals of our times.

Author

  • Jeffrey A. Tucker

    Jeffrey A. Tucker, Founder and President of the Brownstone Institute, is an economist and author. He has written 10 books, including Liberty or Lockdown, and thousands of articles in the scholarly and popular press. He writes a daily column on economics at The Epoch Times, and speaks widely on topics of economics, technology, social philosophy, and culture.

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Brownstone Institute

The Predictable Wastes of Covid Relief

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From the Brownstone Institute

BY Daniel NuccioDANIEL NUCCIO  

As documented in a 2023 report from the Electronic Privacy Information Center, more than seventy local governments used ARPA funds to expand surveillance programs in their communities

If you ever had the vague sense that Covid relief funding worked in a manner akin to US aid packages in failed Middle Eastern dictatorships, your instincts weren’t wrong.

First off, there were cases of just outright fraud nearing the $200 billion mark with drug gangs and racketeers collecting Covid unemployment benefits from the US government, with some recipient fraudsters not even having the common decency of being honest American fraudsters.

Even worse, though, were some legitimate uses of Covid funds that actually counted as legitimate despite being laughably frivolous or clearly unrelated to nominal goals connected to public health or helping communities deal with the economic impact of the virus – or, more accurately, the lockdowns.

One of the most should-be-satirical-but-actually-real examples of a legitimate use of Covid cash was a researcher at North Dakota State University being awarded $300,000 by the National Science Foundation through a grant funded at least in part through the American Rescue Plan Act of 2021 to aid her in her 2023 efforts to reimagine grading in the name of equity. (If none of that makes sense, please don’t hurt yourself with mental pirouettes.)

Other more mundane projects pertained to prisons and law enforcement using Covid relief money for purposes that extended well-beyond simply paying salaries or keeping the lights on. In 2022 The Appeal and The Marshall Project  reported on how large sums of Covid money went to prison construction and expansion projects and to outfit police departments with new weaponry, vehicles, and canines. Regardless of how you feel about law enforcement or our prison system, these probably did little to stop the spread of Covid or keep out-of-work bartenders afloat while public health bureaucrats consulted horoscopes or goat entrails or their equally useful models to divine the proper time to let businesses reopen safely at half-capacity to diners willing to wear a mask between bites but too afraid to leave their homes.

Yet, of course, that didn’t stop people from trying to make the case that these expenditures absolutely were essential to slowing the spread. Often coming off like precocious children explaining to their parents how a new puppy would help teach them responsibility or an overpriced pair of sneakers would facilitate their social-emotional development by ensuring the cool kids would like them, local sheriffs and city managers were reported as claiming prison expansions could help prisoners social distance from each other, new tasers would help officers social distance from suspects, and new vehicles would allow officers to take their cars home with them rather than share one with another officer who might end up contaminating it with their Covid cooties.

But even worse than the funds that were outright plundered or just snatched up as part of a cash grab were those that were used on projects that helped further erode the freedoms of American citizens.

As documented in a 2023 report from the Electronic Privacy Information Center, more than seventy local governments used ARPA funds to expand surveillance programs in their communities, purchasing or licensing gunshot detection systems, automatic license plate readers, drones, social media monitoring tools, and equipment to hack smartphones and other connected devices.

Sometimes EPIC reported that this was done with little, if any, public debate over the civil liberties and privacy concerns inherent to these tools. In one case from a town in Ohio, approval for ARPA-funded ALPRs – cameras that can create a searchable, time-stamped history for the movements of passing vehicles – came after only a 12-minute presentation by their police chief.

Similarly, schools also likely used money from ARPA, as well as the 2020 Coronavirus Aid, Relief, and Economic Security Act, for their own surveillance purposes, although documentation of how schools used their Covid money is said to be somewhat spotty at best.

Vice News in 2021 reported how Ed Tech and surveillance vendors such as Motorola SolutionsVerkada, and  SchoolPass marketed their products as tools to help reduce the spread of Covid and allow schools to reopen safely.

Some attempts such as Vice’s description of SchoolPass presenting ALPRs as a means to assist with social distancing come off like police departments explaining the social distancing benefits of tasers.

Others, however, such as Motorola plying schools with lists of behavioral analysis programs that “monitor social distancing violations” and room occupancy while “automat[ing] the detection of students who are not wearing face masks,” seem to offer a glimpse of the dystopian future into which we are heading – as do the other surveillance tools bought with Covid cash.

Maybe at some point Disease X, about which our ruling class has been warning us, will hit and the additional drones, ALPRs, and social media monitoring tools bought by the law enforcement agencies reported on by EPIC will be used to monitor adults for social distancing violations and automatically detect who isn’t wearing a mask. Maybe those tools will just be used to keep a digital notebook of the daily activities of everyone while police reassure us that they promise only to look at it when they really really need to.

In either case, though, if you currently have the vague sense that post-Covid America is a little more like a Chinese surveillance state than in the Before Times, your instincts are dead-on.

Author

  • Daniel Nuccio

    Daniel Nuccio holds master’s degrees in both psychology and biology. Currently, he is pursuing a PhD in biology at Northern Illinois University studying host-microbe relationships. He is also a regular contributor to The College Fix where he writes about COVID, mental health, and other topics.

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Brownstone Institute

Book Burning Goes Digital

Published on

From the Brownstone Institute

BY Brownstone InstituteBROWNSTONE INSTITUTE

In March 2021, the Biden White House initiated a brazenly unconstitutional censorship campaign to prevent Americans from buying politically unfavorable books from Amazon.

The effort, spearheaded by White House censors including Andy Slavitt and Rob Flaherty, began on March 2, 2021, when Slavitt emailed Amazon demanding to speak to an executive about the site’s “high levels of propaganda and misinformation and disinformation.”

Their subsequent discussions remain unknown, but recently released emails from the House Judiciary Committee reveal that the censors achieved their intended result. Within a week, Amazon adopted a shadow ban policy.

Company officials wrote in internal emails, “The impetus for this request is criticism from the Biden administration about sensitive books we’re giving prominent placement to, and should be handled urgently.” They further clarified that the policy was “due to criticism from the Biden people,” presumably meaning Slavitt and Flaherty.

At the time, “vaccine misinformation” was parlance for inconvenient truths. Five months after the Amazon censorship crusade, Twitter banned Alex Berenson at the Government’s behest for noting that the shots do not prevent infection or transmission. Senator Elizabeth Warren (D-MA) favorably cited his Twitter ban in a September 2021 letter to Amazon  calling for increased censorship of books.

A similar process occurred at Facebook. Mark Zuckerberg wrote in internal emails that the platform decided to ban claims related to the lab-leak theory in February 2021 after “tense conversations with the new Administration.” Facebook executive Nick Clegg similarly wrote that the censorship was due to “pressure from the [Biden] administration and others to do more.” Another internal Facebook email from August 2021 wrote that the company had implemented new “misinformation” policies “stemming from the continued criticism of our approach from the [Biden] administration.”

Not only does the Biden regime’s call for de facto book bans lead to the suppression of true information regarding lockdowns, vaccine injuries, and the lab-leak theory; it was also a clear violation of the First Amendment.

The Supreme Court weighed in on a nearly identical case over sixty years ago.

In 1956, the Rhode Island legislature created a “Rhode Island Commission to Encourage Morality in Youth.” Like “public health” or “inclusivity,” the innocuous language was a Trojan Horse for censorship.

The Commission sent notices to bookshops and book dealers that potentially violated Rhode Island’s obscenity laws. The book dealers challenged the constitutionality of the Commission, and the case made its way to the Supreme Court in Bantam Books v. Sullivan.

The New York Times’ description of the case from 1962 could be transposed to a modern article on the Amazon Files, but The Gray Lady has deemed the news unfit to print and has ignored the revelations entirely.

The challengers argued that the Commission acted “as a censor” while the Government “contended that its purpose was only to educate people,” the Times explained. The Government, desperate to maintain its benevolent facade, insisted its “hope [was] that the dealer would ‘cooperate’ by not selling the branded books and magazines.”

But the Government’s call for “cooperation” was a thinly veiled threat. The Commission did not just notify the booksellers; they also sent copies of the notices to the local police, who “always called dealers within 10 days of the notice to see whether the offending items had been withdrawn,” according to the book dealers.

“This procedure produced the desired effect of frightening off sale of the books deemed objectionable,” a book dealer told The Times. They complied, “not wanting to tangle with the law.”

The Supreme Court ruled 8-1 that the Committee’s reports violated the Constitutional rights of the book dealers. Justice William O. Douglas wrote in a concurring opinion: “This is censorship in the raw; and in my view the censor and First Amendment rights are incompatible.”

Here, we again see censorship in the raw; bureaucratic thugs, using the power of the US federal government, call for the suppression of information that they find politically inconvenient. They hide behind the innocuous language of “public health” and “public-private partnerships,” but the Leviathan’s “requests” carry an implicit threat.

As we wrote in “The Censors’ Henchmen,” the censorship demands from White House lackeys Rob Flaherty and Andy Slavitt are like mobsters’ interrogations. Just months after the Amazon demands, Flaherty wrote to Facebook, “We are gravely concerned that your service is one of the top drivers of vaccine hesitancy – period.” Then came the demands: “We want to know that you’re trying, we want to know how we can help, and we want to know that you’re not playing a shell game…This would all be a lot easier if you would just be straight with us.”

In other words, we can do this the easy way or the hard way. Nice company you have here – it would be a shame if something happened to it.

When companies refused to comply, Biden’s henchmen responded with scorn. Facebook ignored one censorship request, and Flaherty exploded: “Are you guys fucking serious? I want an answer on what happened here and I want it today.”

Failure to comply would threaten Amazon’s substantial government contracting operations. In April 2022, Amazon received a $10 billion contract from the NSA. Later that year, the US Navy granted Amazon a $724 million cloud computing contract, and the Pentagon awarded Amazon an additional $9 billion in contracts. Amazon also has ongoing contracts with the CIA that could be worth “tens of billions” of dollars.

“Cooperation” is a prerequisite for these lucrative agreements. Sixty years ago, the Court recognized the threat that Government demands for “cooperation” posed to liberty in Bantam Books. Ten years later, the Court held in Norwood v. Harrison that it is “axiomatic that a state may not induce, encourage or promote private persons to accomplish what it is constitutionally forbidden to accomplish.”

Since then, skyrocketing government spending and public-private partnerships have further blurred the line between state and private persons at the cost of our liberties.

The recent Amazon revelations add to the censors’ parade of horribles that have been uncovered in recent years. The Supreme Court will rule on the crux of the battle between free speech and Biden’s cosa nostra next month in Murthy v. Missouri.

Meanwhile, the revelations keep pouring in, adding to what we know but still concealing the fullness of what might actually have been happening. Adding to the difficulty is that the revelations themselves are not being widely reported, raising serious questions concerning just how much in the way of independent media remains following this brutal crackdown on free speech that took place with no legislation and no public oversight.

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  • Brownstone Institute

    Brownstone Institute is a nonprofit organization conceived of in May 2021 in support of a society that minimizes the role of violence in public life.

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