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Brownstone Institute

Sam Bankman-Fried and the Missing Billions for Pandemic Planning

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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

During the Crisis, Free Speech Worked Brilliantly

Published on

From the Brownstone Institute

By Jeffrey A. Tucker

The free platform proved itself capable of quick course correction alongside maximum agility in processing the floods of constant new information. Meanwhile, the venues in which “misformation” has been anathematized ended up being the major source of exactly that.

There is only one major social media platform that is relatively free of censorship. That is X, once known as Twitter, and owned by Elon Musk, who has preached free speech for years and sacrificed billions in advertising dollars in order to protect it. If we don’t have that, he says, we lose freedom itself. He also maintains that it is the best path to finding the truth.

The crisis that broke out after the attempt on Donald Trump’s life put the principle in motion. I was posting regular updates and never censored. I’m not aware of anyone who was. We were getting second-by-second updates in real time. The videos were flying along with every conceivable rumor, many false and then corrected, alongside free speech “spaces” in which everyone was sharing their views.

During this time, Facebook and its suite of services fell silent, consistent with the new ethos of all these platforms. The idea is to censor all speech until it is absolutely confirmed by officials and then permit only that which is consistent with the press releases.

This is the habit born of the Covid years, and it stuck. Now all the platforms avoid any news that is fast in motion, except to broadcast precisely what they are supposed to broadcast. Maybe that works in most times when people are not paying attention. Readers do not know what they are missing. The trouble was that during these post-shooting hours when nearly everyone on the planet wanted updates, there were no press releases forthcoming.

By habit, I reached for what was once called television. The networks had plenty of talking heads and newscasters with their usual eloquence. What was missing from all the broadcasts that I saw in these hours were any factual updates. They too were waiting for confirmation of this or that before putting out any information at all beyond the basics. They let their “experts” speak as long as possible just to waste time before rolling out new advertisements.

Over time, I realized something. X was driving the whole of the news, while the newscasters had to wait for permission before reading scripted lines.

Meanwhile, on X, the situation was utterly wild. Posts were flying fast and furious. New rumors would circulate (the shooter’s name and affiliations, stories about a second shooting, claims that Trump was hit in the chest, and so on). But shortly after the rumor circulated, so did the debunking. The feature called “Community Notes” kept the faulty news in check, while the truth gradually circulated to the top. This happened on topic after topic.

The wildest theories ever were permitted to appear, while others would debunk them with reasoned arguments. The readers could decide for themselves. You could see how the seeming chaos gradually organized itself into communities seeking verification. Posters grew ever more careful about posting claims that could not be verified, or at least explaining what they were.

X was single-handedly holding the whole of the corporate media to account, and reporters and editors very obviously came to depend on their X feeds to figure out what to say next. It was the same with newspapers. When NYT, CNN, WaPo, and so on would make major missteps, posters on X would call them out, the word would reach the editors, and the headline or story would change.

In the end, X became the one place where you could find the fullness of truth. All the while, the old-world media was dishing out the most ridiculous headlines one could imagine. For many hours, the New York Times, CNN, Washington Post, and other such venues refused to say it was an assassination attempt on Trump. The headline led people to believe that this was a MAGA rally with some random shooters that got carried away and so Trump had to be ushered out. This really did happen, and readers were outraged.

CNN was probably the worst offender, with the following headline: “Secret Service Rushes Trump Offstage As He Falls at Rally.”

It took many hours and repeated attempts but eventually the mainstream media finally said that the incident was “being investigated” as an assassination attempt, even though it was very obvious that it was an attempt on his life that he barely survived with the slight turn of his head.

It was the kind of flurry of nonsense that further discredited the old corporate media right there in front of an entire planet that was no longer believing anything they said.

It’s hard to know why the corporate press did this. Were they just cautious and worried about misinformation? If so, how come so many of their headlines were of the same sort, that which refused to say that someone just tried to kill Trump? Were they just in the habit of waiting for officials to tell them what to say? Was it raw TDS that was driving this? It’s hard to know but the failure was conspicuous and obvious to all.

What stood out above all else was the way free speech on X worked to ferret out the real story, while actually driving forward the mainstream press to correct its errors and get the story right. One shudders to think how it would have all taken place in absence of this one platform, which became the go-to place for everyone. The most important lesson: free speech worked. And beautifully.

All Western societies are currently struggling with the question of just how much speech to allow on the Internet. The trajectory for years now has not been a good one. Once-free platforms have become more frozen, more propagandistic, more staid, and duller, even as this one platform has created a culture of freedom combined with community-driven accountability.

This freedom accomplished exactly what it was supposed to accomplish, while the censored platforms held onto misinformation much longer than they should have been.

Which makes the point. Too often, the battle over free speech is framed as misinformation/freedom vs. facts/truth/restriction. The very opposite has proven to be the case. The free platform proved itself capable of quick course correction alongside maximum agility in processing the floods of constant new information. Meanwhile, the venues in which “misformation” has been anathematized ended up being the major source of exactly that.

Freedom works. As messy as it is, it works better than any other system. Meanwhile, governments of the world have targeted X for destruction. Advertisers continue to boycott and regulators continue to threaten.

So far, it has not worked and thank goodness. But for X, the last 24 hours would have looked very different: nothing but propaganda, apart from a few marginal places here and there. Therein lies another irony: the way X is managed is increasing trust rather than reducing it.

The lesson should be obvious. The answer to the problems of free speech is more of it.

Author

Jeffrey Tucker is Founder, Author, and President at Brownstone Institute. He is also Senior Economics Columnist for Epoch Times, author of 10 books, including Life After Lockdown, and many thousands of articles in the scholarly and popular press. He speaks widely on topics of economics, technology, social philosophy, and culture.

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Brownstone Institute

The Pandemic Excuse for a Corporatist Coup

Published on

From the Brownstone Institute

By Jeffrey A. Tucker

We’ve just come across a document hosted by the Department of Homeland Security, posted March 2023, but written in 2007, that amounts to a full-blown corporatist imposition on the US, abolishing anything remotely resembling the Bill of Rights and Constitutional law. It is right there in plain sight for anyone curious enough to dig.

There is nothing in it that you haven’t already experienced with lockdowns. What makes it interesting are the participants in the forging of the plan, which is pretty much the whole of corporate America as it stood in 2007. It was a George W. Bush initiative. The conclusions are startling.

“Quarantine is a legally enforceable declaration that a government body may institute over individuals potentially exposed to a disease, but who are not symptomatic. If enacted, Federal quarantine laws will be coordinated between CDC and State and local public health officials, and, if necessary, law enforcement personnel…The government may also enact travel restrictions to limit the movement of people and products between geographic areas in an effort to limit disease transmission and spread. Authorities are currently reviewing possible plans to curtail international travel upon a pandemic’s emergence overseas.

“Limiting public assembly opportunities also helps limit the spread of disease. Concert halls, movie theaters, sports arenas, shopping malls, and other large public gathering places might close indefinitely during a pandemic—whether because of voluntary closures or government-imposed closures. Similarly, officials may close schools and non-essential businesses during pandemic waves in an effort to significantly slow disease transmission rates. These strategies aim to prevent the close interaction of individuals, the primary conduit of spreading the influenza virus. Even taking steps such as limiting person-to-person interactions within a distance of three feet or avoiding instances of casual close contact, such as shaking hands, will help limit disease spread.”

There we have it: the pandemic plans. They once seemed abstract. In 2020, they became very real. Your rights were deleted. No more freedom even to have house guests. In those days, the rule was to enforce only three feet of distance rather than six feet of distance, neither of which had any basis in science. Indeed, the actual scientific literature even at that time recommended against any physical interventions designed to limit the spread of respiratory viruses. They were known not to work. The entire profession of public health accepted that.

Therefore, for many years before lockdowns wrecked economic functioning, there had been two parallel tracks in operation, one intellectual/academic and one imposed by state/corporate managers. They had nothing to do with each other. This situation persisted for the better part of 15 years. Suddenly in 2020, there was a reckoning, and the state/corporate managers won it. Seemingly out of nowhere, liberty as we have long known it was gone.

Back in 2005, I first came across a Bush administration scheme, an early draft of the above, that would have ended freedom as we know it. It was a scheme for combating the bird flu, which officials back then imagined would involve universal quarantines, business and event closures, travel restrictions, and more.

wrote: “Even if the flu does come, and taxpayers have coughed up, the government will surely have a ball imposing travel restrictions, shutting down schools and businesses, quarantining cities, and banning public gatherings…It is a serious matter when the government purports to plan to abolish all liberty and nationalize all economic life and put every business under the control of the military, especially in the name of a bug that seems largely restricted to the bird population. Perhaps we should pay more attention. Perhaps such plans for the total state ought to even ruffle our feathers a bit.”

For years I wrote about this topic, trying to get others interested. It was all there in black and white. At the drop of a hat, under the guise of a pandemic that only state managers can declare, real or drummed up, freedom itself could be abolished. These plans were never legislated, debated, or publicly discussed. They were simply posted as the result of various consultations with experts, who worked out their totalitarian fantasies as if scripting a Hollywood film.

The 2007 blueprint is more explicit than anything I’ve seen. It comes from the National Infrastructure Advisory Council, which “includes executive leaders from the private sector and state/local government who advise the White House on how to reduce physical and cyber risks and improve the security and resilience of the nation’s critical infrastructure sectors. The NIAC is administered on behalf of the President in accordance with the Federal Advisory Committee Act under the authority of the Secretary of the US Department of Homeland Security.”

And who sat on this committee in 2007 that decided that governments “may close schools and non-essential businesses”? Let us see.

  • Mr. Edmund G. Archuleta, General Manager, El Paso Water Utilities
  • Mr. Alfred R. Berkeley III, Chairman and CEO, Pipeline Trading Group, LLC, and former President and Vice Chairman of NASDAQ
  • Chief Rebecca F. Denlinger, Fire Chief, Cobb County (Ga.) Fire and Emergency Services
  • Chief Gilbert G. Gallegos, Police Chief (ret.), City of Albuquerque, N.M. Police Department
  • Ms. Martha H. Marsh, President and CEO, Stanford Hospital and Clinics
  • Mr. James B. Nicholson, President and CEO, PVS Chemical, Inc.
  • Mr. Erle A. Nye, Chairman Emeritus, TXU Corp., NIAC Chairman
  • Mr. Bruce A. Rohde, Chairman and CEO Emeritus, ConAgra Foods, Inc.
  • Mr. John W. Thompson, Chairman and CEO, Symantec Corporation
  • Mr. Brent Baglien, ConAgra Foods, Inc.
  • Mr. David Barron, Bell South
  • Mr. Dan Bart, TIA
  • Mr. Scott Blanchette, Healthways
  • Ms. Donna Burns, Georgia Emergency Management Agency
  • Mr. Rob Clyde, Symantec Corporation
  • Mr. Scott Culp, Microsoft
  • Mr. Clay Detlefsen, International Dairy Foods Association
  • Mr. Dave Engaldo, The Options Clearing Corporation
  • Ms. Courtenay Enright, Symantec Corporation
  • Mr. Gary Gardner, American Gas Association
  • Mr. Bob Garfield, American Frozen Foods Institute
  • Ms. Joan Gehrke, PVS Chemical, Inc.
  • Ms. Sarah Gordon, Symantec
  • Mr. Mike Hickey, Verizon
  • Mr. Ron Hicks, Anadarko Petroleum Corporation
  • Mr. George Hender, The Options Clearing Corporation
  • Mr. James Hunter, City of Albuquerque, NM Emergency Management
  • Mr. Stan Johnson, North American Electric Reliability Council (NERC)
  • Mr. David Jones, El Paso Corporation
  • Inspector Jay Kopstein, Operations Division, New York City Police Department (NYPD)
  • Ms. Tiffany Jones, Symantec Corporation
  • Mr. Bruce Larson, American Water
  • Mr. Charlie Lathram, Business Executives for National Security (BENS)/BellSouth
  • Mr. Turner Madden, Madden & Patton
  • Chief Mary Beth Michos, Prince William County (Va.) Fire and Rescue
  • Mr. Bill Muston, TXU Corp.
  • Mr. Vijay Nilekani, Nuclear Energy Institute
  • Mr. Phil Reitinger, Microsoft
  • Mr. Rob Rolfsen, Cisco Systems, Inc.
  • Mr. Tim Roxey, Constellation
  • Ms. Charyl Sarber, Symantec
  • Mr. Lyman Shaffer, Pacific Gas and Electric,
  • Ms. Diane VanDeHei, Association of Metropolitan Water Agencies (AMWA)
  • Ms. Susan Vismor, Mellon Financial Corporation
  • Mr. Ken Watson, Cisco Systems, Inc.
  • Mr. Greg Wells, Southwest Airlines
  • Mr. Gino Zucca, Cisco Systems, Inc.
  • Department of Health and Human Services (HHS) Resources
  • Dr. Bruce Gellin, Rockefeller Foundation
  • Dr. Mary Mazanec
  • Dr. Stuart Nightingale, CDC
  • Ms. Julie Schafer
  • Dr. Ben Schwartz, CDC
  • Department of Homeland Security (DHS) Resources
  • Mr. James Caverly, Director, Infrastructure Partnerships Division
  • Ms. Nancy Wong, NIAC Designated Federal Officer (DFO)
  • Ms. Jenny Menna, NIAC Designated Federal Officer (DFO)
  • Dr. Til Jolly
  • Mr. Jon MacLaren
  • Ms. Laverne Madison
  • Ms. Kathie McCracken
  • Mr. Bucky Owens
  • Mr. Dale Brown, Contractor
  • Mr. John Dragseth, IP attorney, Contractor
  • Mr. Jeff Green, Contractor
  • Mr. Tim McCabe, Contractor
  • Mr. William B. Anderson, ITS America
  • Mr. Michael Arceneaux, Association of Metropolitan Water Agencies (AMWA)
  • Mr. Chad Callaghan, Marriott Corporation
  • Mr. Ted Cromwell, American Chemistry Council (ACC)
  • Ms. Jeanne Dumas, American Trucking Association (ATA)
  • Ms. Joan Harris, US Department of Transportation, Office of the Secretary
  • Mr. Greg Hull, American Public Transportation Association
  • Mr. Joe LaRocca, National Retail Federation
  • Mr. Jack McKlveen, United Parcel Service (UPS)
  • Ms. Beth Montgomery, Wal-Mart
  • Dr. J. Patrick O’Neal, Georgia Office of EMS/Trauma/EP
  • Mr. Roger Platt, The Real Estate Roundtable
  • Mr. Martin Rojas, American Trucking Association (ATA)
  • Mr. Timothy Sargent, Senior Chief, Economic Analysis and Forecasting Division, Economic and Fiscal Policy Branch, Finance Canada

In other words, big everything: food, energy, retail, computers, water, and you name it. It’s a corporatist dream team.

Consider ConAgra itself. What is that? It is Banquet, Chef Boyardee, Healthy Choice, Orville Redenbacher’s, Reddi-Wip, Slim Jim, Hunt’s Peter Pan Egg Beaters, Hebrew National, Marie Callender’s, P.F. Chang’s, Ranch Style Beans, Ro*Tel, Wolf Brand Chili, Angie’s, Duke’s, Gardein, Frontera, Bertolli, among many other seemingly independent brands that are all actually one company.

Now, ask yourself: why might all these companies favor a plan for lockdowns? Why might WalMart, for example? It stands to reason. Lockdowns are a massive interference with competitive capitalism. They provide the best possible subsidy to big business while shutting down independent small businesses and putting them at a huge disadvantage once the opening up happens.

In other words, it is an industrial racket, very much akin to interwar-style fascism, a corporatist combination of big business and big government. Throw pharma into the mix and you see exactly what came to pass in 2020, which amounted to the largest transfer of wealth from small and medium-sized business plus the middle class to wealthy industrialists in the history of humanity.

The document is open even about managing information flows: “The public and private sectors should align their communications, exercises, investments, and support activities absolutely with both the plan and priorities during a pandemic influenza event. Continue data gathering, analysis, reporting, and open review.”

There is nothing in any of this that fits with any Western tradition of law and liberty. Nothing. It was never approved by any democratic means. It was never part of any political campaign. It has never been the subject of any serious media examination. No think tank has ever pushed back on such plans in any systematic way.

The last serious attempt to debunk this whole apparatus was from D.H. Henderson in 2006. His two co-authors on that paper eventually came around to going along with lockdowns of 2020. Henderson died in 2016. One of the co-authors of the original article told me that if Dr. Henderson had been around, instead of Dr. Fauci, the lockdowns would never have taken place.

Here we are four years following the deployment of this lockdown machinery, and we are witness to what it destroys. It would be nice to say that the entire apparatus and theory behind it have been fully discredited.

But that is not correct. All the plans are still in place. There have been no changes in federal law. Not one effort has been made to dismantle the corporatist/biosecurity planning state that made all this possible. Every bit of it is in place for the next go-around.

Much of the authority for this whole coup traces to the Public Health Services Act of 1944, which was passed in wartime. For the first time in US history, it gave the federal government the power to quarantine. Even when the Biden administration was looking for some basis to justify its transportation mask mandate, it fell back to this one piece of legislation.

If anyone really wants to get to the root of this problem, there are decisive steps that need to be taken. The indemnification of pharma from liability for harm needs to be repealed. The court precedent of forced shots in Jacobson needs to be overthrown. But even more fundamentally, the quarantine power itself has to go, and that means the full repeal of the Public Health Services Act of 1944. That is the root of the problem. Freedom will not be safe until it is uprooted.

As it stands right now, everything that unfolded in 2020 and 2021 can happen again. Indeed, the plans are in place for exactly that.

Author

Jeffrey Tucker is Founder, Author, and President at Brownstone Institute. He is also Senior Economics Columnist for Epoch Times, author of 10 books, including Life After Lockdown, and many thousands of articles in the scholarly and popular press. He speaks widely on topics of economics, technology, social philosophy, and culture.

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