Friday: The Immoral Minority

While philosopher Slavoj Žižek isn’t everybody’s cup of quirky tea, he’s got a valid point in this video.

The right-wing has abandoned its claim to be the Moral Majority.

Don’t mistake this as a validation of the Democratic Party here in the U.S.; they are only earning a majority in terms of politics, and in no small part by being the “Not GOP” party. With its leadership cozying up to war criminals, climate denialists and fossil fuel-based polluters, and general denigrators both of human rights and the public commons, they are not the Moral Majority by default.

But an unorganized left in this country rejects the right-wing’s ethical decay implicitly underpinning the Republican Party. The left rejects those values which undermine democracy — misogyny, racism and marginalization of other minorities, the ongoing subversion of individuals’ rights to promote the interests of corporations.

A true Moral Majority won’t support a social contract undermining democracy by limiting life, liberty, and happiness’ pursuit to a narrow few. It’s well past time for the broader left to coalesce into an organized entity based upon the belief that all humans are created equal and deserving a more perfect union.

Zapped by Zika

• “ZIKA VIRUS | Days since White House funding request: 186 | Funding response from Congress: $0 | Zika cases in US and territories: 8,580” (Tweet, Dan Diamond/Politico)
• Peter robbed to pay Paul: DHHS pulls money from other projects to fund Zika vaccine research (Reuters) — Lacking new dedicated funding from Congress, U.S. Department of Health and Human Services squeezed out $81 million and spread it into Zika vaccine research, with $34 million of that to the National Institutes of Health and $47 million to the Biomedical Advanced Research and Development Authority (BARDA). The white House had asked for $1.9 billion last fall for Zika, but that amount was pared down by 42%; Republicans then objected to any of the remaining portion going to Planned Parenthood, putting Democrats in a bind. Access to birth control is critically important to preventing Zika’s spread; access to abortion could prevent the birth of severely deformed infants who will live short, utterly miserable, and expensive lives.
• Arthrogryposis — congenital joint defects — associated with Zika during pregnancy (The BMJ) — Dislocated and or misshaped knees, ankles, elbows, hips appeared in children born with other neurological defects found in Zika-infected fetuses. Further research is necessary to prove both the virus is causal and learn the mechanism by which the virus inflicts this damage in utero. The patients had been tested for other known causes of arthrogryposis — toxoplasmosis, cytomegalovirus, rubella, syphilis, and HIV. All were negative.
• First infant death due to Zika reported in Texas (KHOU) — The infant’s mother traveled to El Salvador during pregnancy where it is believed she contracted the virus.
• Zika virus case confirmed in Monroe County, Michigan (Detroit Free Press) — But the method of infection is not clear (what?!). County health and state officials are working toward mosquito surveillance.

Wheels and steals

• Millions of vehicles made from 1995 on vulnerable to keyless-remote hacking (USENIX) — Researchers at University of Birmingham and Kasper & Oswald GmbH presented a paper at the USENIX 2016 conference, showing more than 20 years’ worth of VW Group vehicles are hackable using inexpensive Arduino-based RF transceiver technology. Alfa Romeo, Chevrolet, Peugeot, Lancia, Opel, Renault, Ford and other makes relying on the Hitag2 access security method are similarly at risk. Researchers also looked at after-market keyless entry remotes for these and other vehicles; the cars for which these worked were also vulnerable. All vehicles tested appear to be those made for the European market, but the research noted the radio frequency differences — 315 MHz band in North America and the 433 MHz or 868 MHz band in Europe — used in remotes. The paper’s research team notified VW in November 2015 of their results; NXP Semiconductor, a manufacturer of Hitag2 remote technology, was also notified. NXP had already informed customers of the vulnerability in 2012 and has already improved device security.
• Volkswagen suppressed news about keyless remote insecurity since 2013 (Bloomberg) — The same researchers from University of Birmingham and Kasper & Oswald GmbH had originally approached NXP Semiconductor and VW with their work in 2012 and 2013, respectively. VW sued and blocked release of their work; the paper was released this past week at USENIX only “after lengthy negotiations” and the removal of a single sentence which car thieves could use to easily crack the keyless remotes. A number of suspicious automobile thefts over the years may have relied on hacking remotes; will insurance companies look into these thefts and demand recovery from VW?
• DOE grants Ford $6M for fuel cell research (Detroit Free Press) — Existing fuel cell technology has been too expensive for successful commercialization; the grant will be used to develop cheaper technology competitive with battery and internal combustion engines.

Longread: Geopolitics
FiveBooks.com interviewed former state department official and senior fellow at the Council on Foreign Relations, Jennifer M. Harris, about geopolitics. She discusses the topic and offers five book recommendations about the same. Harris is the co-author of recently released War by Other Means: Geoeconomics and Statecraft. Given her work as U.S. National Intelligence Council staff followed by work on economics under then-Secretary of State Hillary Clinton, this interview might offer a preview to future statecraft.

Friday Jazz
It’s still Friday somewhere according to my clock. Try French performer Zaz, stage name for Isabelle Geffroy. If you like this ditty, preview more of her work on her channel on SoundCloud.

It’s been a hectic week here; next week doesn’t look any better, but I’ll aim to be here on Monday. Have a relaxing weekend!

Friday: Little Fly

Friday jazz comes to us from vocalist and bassist Esperanza Spalding, one of my personal favorites. She’s the first jazz musician to ever win the Grammy Award for Best New Artist, awarded only a handful of months after this featured performance from 2010.

My favorite tune of the three she performs here is Apple Blossom — it never fails to make me sniffle. Spalding plays more than just the double bass; sample her more progressive work on electric bass here. Want something a bit more traditional? Try her upbeat bluesy rendition of On the Sunny Side of the Street. Or maybe a little pop rock slice with her tribute to Stevie Wonder, Overjoyed.

Wheels and steals
Volkswagen:

• Whiny op-ed complains about poor, poor Volkswagen (WSJ) — Aw, poor fraudulent enterprise lied and ripped off the American public for a decade while other automakers in the U.S. complied with emissions laws. Murdoch-NewsCorp outlet Wall Street Journal wants us to take pity on the bastards who did not care one whit they were literally poisoning U.S. citizens while lying to customers and dealers, let alone poisoning and lying to tens of millions of customers abroad. Look, they broke U.S. laws for nearly ten years. They made interest and capital gains on the money they gained from their illegal efforts. They can make the customers they defrauded whole and they can do something to fix the damage they wreaked on our environment. And they should be punished for breaking laws on top of reparations. Anything less is a neoliberal blowjob to a company which cannot compete fairly inside the U.S.
• VW passenger diesel owners need additional protections (Reuters) — The current settlement offered by VW in federal court does not provide a secondary level of protection to consumers says the consumer advocacy journal, needed if the proposed fix to the emissions cheating diesel vehicles does not work. These vehicle owners should be able to opt for buy-back. The amount offered also undervalues retail prices on alternative replacement vehicles, Consumer Reports said in its submission during the public comment period which ended today.
  

  Consumer Reports said it generally supported the settlement, but urged “regulators to wield robust oversight of Volkswagen to ensure that the company implements its recall, investment, and mitigation programs appropriately” and it called on “federal and state officials to assess tough civil penalties and any appropriate criminal penalties against the company in order to hold it fully accountable.”

• South Korea halts sales of 80 VW vehicle models (NBCNews) — This is what the U.S. could have done to VW given the scale of fraud, emissions cheating, and the lack of actual “clean diesel” passenger technology available to remedy both 2.0L and 3.0L engine vehicles. The 80 models now banned for non-compliance with emissions and noise pollution laws as well as document forgery include VW, Audi and Bentley vehicles. VW has also been slapped with $16.06 million fine, which is extremely light considering VW broke not only emissions laws while fraudulently misrepresenting the vehicles’ attributes.
• West Virginia’s suit against VW amended (Hastings Tribune) — WVa Attorney General expanded the suit to include VW parent group as well as Audi and Porsche brands. Bosch, the manufacturer of VW’s electronic control units which were programmed to defeat emissions controls, is included in the lawsuit.
• Fewer Americans buying VW vehicles (Business Insider) — No surprise, given the emissions controls cheating scandal, the pricey labels, iffy reliability, and a product lineup that doesn’t match the U.S.’ market demand. It may be a long time before VW digs itself out of its hole here.

NOT Volkswagen:

• Two Houston thieves hack Jeep and Dodge cars (Phys.org) — Hacking pirated computer software used by auto technicians and dealers, two men tweaked Fiat Chrylser model vehicles’ security codes so their key worked. The thieves were picked up driving a stolen Jeep Grand Cherokee after police focused on an area where a high number of vehicle thefts occured.
• White hat hackers proved Chrysler’s anti-hack update breachable (The Register) — Last year Charlie Miller and Chris Valasek showed Fiat Chrysler’s wireless feature could be hacked remotely to take control of a car. At Black Hat 2016 this week the same duo showed how they could defeat Fiat Chrysler’s firmware update which the automaker pushed to patch the vulnerability. But in terms of ease and speed, the two thieves in Houston might actually have a faster approach to taking control of a vehicle.
• 28-year-old cracks up his brother’s car while playing Pokémon GO (The Guardian) — Dude. Really? You’re lucky to be alive or that you didn’t kill someone else. This is the kind of generational stupid old-man-yelling-at-clouds Clint Eastwood should take a poke at instead of doubling down on his closeted racism.
• Self-driving feature in Tesla X may have saved its driver (CNBC) — Driver suffered a pulmonary embolism while on the road; the vehicle took him to the hospital. Article says the driver “was able to steer the car the last few meters” suggesting he was conscious and in control if limited in capacity. No further details were included to describe how the vehicle switched from its original route to the hospital.

Because opening ceremonies begin tonight at the Rio Olympics, I’ll leave you here. Catch you Monday — have a safe and restful weekend!

Tuesday: Rubbish

This won’t be everybody’s cup of matcha and may not offer an optimum listening experience for most business offices. Today’s kick-in-the-seat to start the week is a Japanese rock genre at the intersection of glam rock and black metal. Visual kei rock combines glam’s signature elements with black metal’s dark, heaviness. Some say punk influences visual kei but I really don’t see or hear it. Depending on the song, death metal is far more likely to leak through both in sound and appearance.

For a little lighter variant — more pure metal than glam or black — try this live performance from Vistlip. The relationship between visual kei and both anime and video games is quite obvious. Want a little estrogen-loaded visual kei? Try exist trace’s Daybreak; it, too, is not as dark and heavy, though the band can still hammer really black tunes.

Now that the kick in the ass has been locked and loaded…

NINE DAYS
Including today, that’s the total number of days booked as in session on the U.S. House of Representatives’ business calendar for July, of which only six days have events scheduled.

Can’t see anything farther out. And of the events booked so far, nothing appears for the benefit of the Flint Water Crisis. Roughly 8000 lead-poisoned kids completely forgotten.

Michigan’s state house has a mess of stuff on the calendar, but none of it clearly marked in reference to Flint Water Crisis. I imagine that hack Rep. Pscholka may have something buried in the items labeled “zero budget.”

Brexit buffoonery
Whenever I get really upset with the condition of our state and federal governance, I can just take a look across the pond. The back-stabbing drama surrounding the future leadership of the Conservative Party and the Prime Minister’s office looks like a mashup of House of Cards and Game of Thrones minus dragons. I’ll let Christoph Waltz speak for me about the resignation of Ukip’s Nigel Farage this weekend. I fear, though, that U.S. politics will take the Brexit debacle as a prompt going into the general election.

• Pound fell to lowest level post-Brexit vote (France24) — The perceived inability for either the Conservatives or Labour parties to organize its leadership let alone steer out of Brexit weighs on business. Let’s say Marcy’s right and the Brits manage to put the brakes on this: when and how will that happen? The lack of direction and specificity between now and sometime after September’s next UK election costs money.
• Apple stock could take a hit because of Brexit (Bloomberg) — Folks may update their iPhones more slowly due to economic pressures, says Citigroup analyst. IMO, it’s not the updates that will hurt Apple’s income as much as currency fluctuations. Was Apple able to hedge its financial holdings adequately against the abrupt drop in GBP value?
• EU to spend $2B on public+private cybersecurity efforts (The Register) — Will UK be omitted from this spending plan altogether, AND will the EU begin to treat the UK as a potential cybersecurity risk in whatever plans it develops?

Automotive Uh-oh

• German Federal Cartel Office raids six auto industry firms investigating steel price collusion (FAZ.net) — The largest automakers Volkswagen, Daimler and BMW as well as suppliers ZF and Bosch were targeted. German news reports only provide these five company names and not a sixth. Reuters reported GM’s Opel division was not included in the raids. Volkswagen was already smarting badly after the nearly $15B settlement with the U.S. announced last week.
• Electric car maker Tesla hits a speedbump on output (Bloomberg) — Market should have seen this coming. There’s no way to smoothly scale up the amount of output buyers want from where Tesla’s been without a few hiccups. Stock price took a hit.

Cyberia

• Second “Fappening” hacker will plead guilty (NYMag) — Finally! It only took two years reach this point in prosecution of hacker who phished celebrities accounts for nude photos. But phishing corporations is a threat to the public’s security, while phishing women’s Gmail and iCloud accounts isn’t a threat to anybody, right? Because women’s bodies and personal information aren’t valuable nor is systematically invading their privacy terrorizing. Ugh. Gender bias in law enforcement.
• Advocacy groups file rulemaking petition with FCC on automakers’ use of Direct Short Range Communication (DSRC) (PublicKnowledge.org) — Automakers are standardizing AI systems around DSRC; two groups want the FCC to
  

  • Limit DSRC to life and safety uses only. The auto industry plans to take spectrum allocated for safety of life and monetize it with advertising and mobile payments. This compromises cybersecurity and potentially violates the privacy of every driver and passenger.
  • Require automakers to file a cybersecurity plan before activating DSRC systems. This plan should not only show that auto manufacturers have taken appropriate precautions today, but explain how they will update security over the life of the vehicle.
  • Data transparency and breach notification. Auto manufacturers must inform purchasers of DSRC-equipped cars what personal information they collect and how they will use that information. In the event of a data breach, the manufacturer collecting the information must notify the customer.

• Conficker malware found widely in internet-enabled medical equipment (Threatpost) — Medical facilities still aren’t taking adequate measures to ensure internet-enabled equipment remains unattached from the internet, safe from other forms of injection (like USB ports), and free of malware. Devices like dialysis pumps and diagnostic equipment for MRIs and CT scans are infected. Same security gaps also led to leak of 655,000 patients’ data over the internet two weeks ago.

Man, even in this heat this snowball just doesn’t want to stop once it starts rolling down the hill. At least it’s a short week. See you tomorrow!

Friday: Death to All That Jazz

My friend, you would not tell with such high zest
To children ardent for some desperate glory,
The old Lie; Dulce et Decorum est
Pro patria mori.

— excerpt, Dulce et Decorum Est, by Wilfred Owen

This week has been a long death march. Death to optimism, death to pre-existing notions of political parties, death to futures defined by progressive visions.

Ironically, the march led to today’s 100th anniversary of the Battle of the Somme — the beginning of World War I and the bloodiest day in British military history. The battle lasted five months and a million soldiers’ lives. The British suffered 60,000 casualties on the first day alone as they fought alongside the French against the Germans.

Among the British dead were black soldiers from Britain and British West Indies, and Indian Army Calvary who came from what is now India and Pakistan. The British recruited from South Africa, Egypt, China, and more to replace their losses as the Somme continued.

One hundred years later they have forgotten all of this shared pain and history, along with Winston Churchill’s post-WWII vision of a unified European family, a Pan-European Union which the United Kingdom, United States, and Russia supported.

On that bright and cheery note, have a little Death to Jazz — music which never dies.

Democracy elsewhere
Australians went to the polls on July 2nd for this year’s federal election. They didn’t torture themselves with a year or more of campaign crap, thank goodness. I can’t tell you much of anything about this election except that like the US and UK, there are two major parties running neck-and-neck — the Liberal/National coalition and the Labor party — while the world might hope for Greens to succeed. At least Aussies have more than two major parties to choose from even if they are more colorful than any of ours. Putting aside my flippant attitude, this election has serious consequences for the globe given the need for Australia’s climate change research and its excessive reliance on sales of coal as well as its creeping authoritarian approach toward the internet and surveillance. What policies will the next Aussie government pursue?

Wheels

• NHTSA launches investigation into fatal autopiloted Tesla crash (Tesla Motors) — OMG if you look at the Florida Highway Patrol report sketch of the accident you’ll immediately grasp what fail this was. This was a really horrific accident. Tesla’s post indicates the sensor read the gap below the semi-truck’s trailer as open space. Jalopnik picks apart the accident; they may be right that the obstruction detection sensor is too low on the vehicle. Besides the fact the driver was completely distracted and watching a movie while on autopilot, something else doesn’t sit right about this crash — like the truck failed to yield, or the car was traveling at too high a rate of speed? Truly a sad situation for the driver’s family and the truck driver.
• Volkswagen thinks its 3.0L passenger diesel engines can be “fixed” to meet emissions standards (Reuters) — Wait, what? They used “undeclared auxiliary emissions-control devices” on this engine, and not the emissions controls defeat software used in the 2.0L engines, which somehow means they can fix the larger engines. I’ve missed something somewhere along the way because I don’t recall reading about any “auxiliary devices” before now. Color me skeptical.
• June car sales remain on pace with May, except for Volkswagen (Business Insider) — Dieselgate has really done a number on VW brand here in the U.S.; sales are down 22% for the German automaker over last year. Other brands have picked up the slack, though; the biggest winner is Nissan.

Don’t forget about China
Fourth largest by area, second largest by GDP, and first largest by population, let’s not forget about China!

• ICYMI: Insurance company to CIA employees bought by Chinese company (Newsweek) — You might want to read Marcy’s piece if you haven’t already. The U.S. really needs to improve the CFIUS review process given this egregious example. It only takes some big iron computing to crunch a match between Wright USA’s business database and other breached databases out there in the cyber-wilds to identify…well, you’re smart. Figure it out.
• Taiwanese missile mistakenly fired, kills fishing boat captain (IBT) — No words for this, which could have been very ugly. Somebody kept a cool head.
• Taylor Swift’s love life no longer the subject of Chinese bettors (Billboard) — Chinese government banned the sale of insurance instruments which paid off when celebrity singer/songwriter Swift broke off her romance. Good move, this one, because Swift changes partners like some women change purses and shoes. Don’t waste your money betting on what is surely a PR-driven romance between Swift and the flavor of the month, British film star Tom Hiddleston. (Better off betting on who will be the next James Bond — Hiddleston? Doubtful.)

Party Plans
It’s a long holiday weekend here in the U.S. If you don’t have plans, here’s a few tips.

• The party moved, dudes; new sandbar this year (Mlive) — Court tossed the monster party held on one of Michigan’s inland lakes because it was monster. This year it’s being held at Wixom Lake instead of Torch Lake. Poor Wixomites; brace yourselves for 1000-plus partiers.
• Non-Terrible Songs about America (BitchMedia) — This week’s BitchTapes playlist is estrogen driven, a nice even-handed, clear-eyed change of pace for a mellow Fourth of July. Kind of like a hug from your mom or sister who love you in spite of the fact they know only too well you’re a bonehead.
• Baking cookies for holiday snacking? Don’t eat the raw dough! (Yahoo News) — We’ve always been told raw dough is risky to eat because of uncooked eggs in the batter. But unless you’ve checked yours against the FDA’s recall list, it’s the flour that’s the potential threat. E coli-tainted flour is still in the food system and could be in uncooked dough products. Cook them well, don’t eat them raw.

Holiday mode commences in three, two, one — boom! Because nothing says freedom like incendiary devices at close range!

Friday: Ball and Chain

This end-of-the-work-week observation is a little different. I’ve posted some not-jazz jazz for your listening pleasure. This piece called Ball and Chain is performed by a loosely joined group of people who worked on development of a subgenre of jazz during the 1990s. It’s called M-base — short for “macro-basic array of structured extemporization” — which relies on improvisation along with non-European elements as jazz does. But its artists’ deliberation in composition combined with a more contemporary flare set this style of music apart from other jazz.

Sample a couple more pieces with a little extra estrogen — Cassandra Wilson’s vocals in You Don’t Know What Love Is, and Geri Allen’s keyboarding here with Esperanza Spalding and Terri Lyne Carrington performing Unconditional Love at a recent Jazz in Marciac festival. Wilson and Allen have both been members of the M-base collective, along with Steve Coleman, Robin Eubanks, Graham Haynes, and Greg Osby. I recommend searching out each of those folks in YouTube to explore their continuation of M-base in their work.

That’s enough to get you through your Friday evening nightcap. You’ll probably need one after this stuff.

Volkswagen’s Dieselgate

• More made-up reports to cheat compliance on emissions and now noise levels, this time in South Korea (Bloomberg) — It might be easier now to ask what didn’t VW Group didn’t fib about. No specifics yet, but this looks broader than passenger diesel vehicles if VW also lied about noise levels.
• German state investigators probing VW employees’ evidence destruction (Deutsche Welle) — At least one employee encouraged co-workers to “get rid of data.” Prosecutors believe most data is still safe and some may be recovered from attempted destruction. Color me skeptical.
• EU Industry Commissioner turned up his nose at proposals by Germany to tighten emissions rules (Deutsche Welle) — It’s not clear if the EU had concerns that Germany was still trying to get around emissions controls regulations even with more stringent rules as proposed.
• Meanwhile, researchers surprised by role of air pollution in strokes (L’Express) — Related to the unfolding Dieselgate scandal at the intersection of increased emissions and increased deaths, researchers found
  

  The share [of strokes] attributable to pollution has been estimated at 33.7% in countries with low and middle income against only 10.2% in high-income countries in 2013, up sharply since 1990.

  Yet most of the EU has done virtually nothing to eliminate the recently discovered emissions controls cheating vehicles from the road.

• Op-ed suggests making an example of Volkswagen (USAToday) — Equal protection and all, singling out this company probably won’t fly. But enforcing existing laws to the fullest extent due to brazen, persistent fraud? Hell yeah. They’re killing people with these cheats — long, slow, costly deaths.

Living in a Digital World

• Twitter says it wasn’t hacked after millions of users’ account data appears online (Bloomberg) — Hey, listen up, boneheads complaining about your Twitter account being locked: 1) Change your password periodically (like every 12 weeks) and 2) DON’T USE THE SAME PASSWORD ON MORE THAN ONE ACCOUNT. Looks like some folks haven’t learned that once one account is breached, more are at risk if they use the same password or a previous iteration from another account. ~smh~ It would take very little to create a database of breached addresses from multiple platforms and compare them for same passwords. If, for example, [123456PW] is used on two known accounts, why wouldn’t a hacker try that same password on other accounts attached to the same email address?
• Oklahoma state police bought debit card scanning devices (KGOU) — They’re not merely reading account data if they pull you over and take your card to scan for information. They may confiscate any funds attached to the card, too, under civil forfeiture. This is ripe for abuse and overreach, given poor past legal precedent. Why is a magnetic strip any different than your wallet?

Economics of a different kind

• Economics don’t match reality, and the root of the problem is academic (BloombergView) — Each of “coffee house macro,” finance macro, Fed macro, and academic macroeconomics are grossly out of sync with reality. But the root of this distortion is the one thing they all have in common: their origin in academic economics. Yeah — academia has become little more than an indoctrination factory for the same flawed concepts, while reducing any arguments against the current “free market uber alles” thought regime.
• Adbusters isn’t waiting for academia; they’re ready to Battle for the Soul of Economics (kickitover.org) — Check it, social media warfare has begun.

That’s a wrap on this week. I’m fixing myself a stiff belt and shuffling off to bed. Catch you Monday, the Fates willing and the creek not rising due to climate change.

A Tale of Two Bailout Paybacks

As promised over the weekend before I realized I had forgotten my Toobz, I wanted to compare the behavior of two bailout recipients, the UAW and the banksters.

A number of people have pointed to this intriguing interview about the Korea Trade deal with the UAW’s President Bob King. In addition to confirming my math showing that the most the UAW could reasonably expect to get out of his deal is 75,000 additional exports–or 800 extra jobs for the UAW–King also had this to say:

It was important to endorse in order to reward the administration for its good behavior of including labor in negotiations.

While not directly an admission that UAW endorsed this NAFTA-style trade deal in thanks for the US bailout of the auto industry, it does seem to support that overall sentiment. The UAW capitulated further when it endorsed the Obama-McConnell tax deal giving 2 years of relief to the very rich, 1 year to the medium-term unemployed, and nothing to the 99ers whose Unemployment Insurance has expired (many of whom used to work for the auto companies).

Compare that to the behavior of JP Morgan Chase Vice Chairman Jimmy Lee during negotiations under the Chrysler bailout. According to Steven Rattner, Lee,

demanded to know why, if the government thought banks important enough to give them tens of billions in TARP money, it wanted to squeeze them on [the Chrysler] deal.

Mind you, JPMC wasn’t getting squeezed. Timmeh Geithner had specifically instructed Rattner not to ask for any special favors because the government had also bailed out JPMC (Timmeh apparently didn’t mention the additional support JPMC got from the Fed).

Tim had instructed me not to be taken in [by Lee’s complaints] but to maintain strict neutrality. I was not to demand anything of JPMorgan just because it had received an infusion of TARP money; nor was I to show it favor because of Bear Stearns or anything else.

And as Rattner calculates, Lee was asking for full value on their debt even while it was only worth about $.15 on the dollar.

In our phone calls, he also relentlessly reminded me that creditors deserve to be paid. “When you lend somebody $6.9 billion,” he would say, “you expect to get $6.9 billion back. And not a penny less.” I listened knowing that Jimmy’s position was patently ridiculous. Chrysler debt was trading at around 15 cents on the dollar (admittedly, infrequently), and according to Chrysler’s own analysis, the liquidation value of the company was perhaps as low as $1 billion. Clearly, Jimmy didn’t believe that the Obama administration would be willing to push back and let the banks take over Chrysler rather than cave in to their demands.

So unlike the UAW–which endorsed the kind of trade deal it has spent the last decade railing against–JP Morgan Chase responded to getting bailed out by asking for more special deals.

Now, JP Morgan Chase did join the UAW in hailing the KORUS trade deal. Here’s what Jamie Dimon had to say:

We applaud President Obama and [Korean] President Lee [Myung-bak] for their leadership in moving forward with the Korea-US Free Trade Agreement.  Their commitment will provide the needed momentum to ensure swift approval and implementation of the agreement by both governments. Implementation of this agreement with Korea will provide great opportunities for U.S. workers, businesses and farmers to increase exports and provide expanded services in this key market. We strongly support passage of this agreement… Today’s announcement is an important step in achieving the goal of doubling exports in five years, as well as helping to fuel the overall economic recovery.

And also like UAW, JP Morgan Chase offered some help to Obama’s tax deal, in the form of revised awfully optimistic growth forecasts for next year:

Against the backdrop of positive momentum in recent US economic data, this policy shift has convinced us to raise our 2011 growth forecast, from 3.0% (4Q/4Q) to 3.5%.  This upward revision is focused in 1H GDP growth, which now is expected to average 3.75% saar, versus 2.5% before.

Optimistic growth forecasts aside, there is a substantive difference between JPMC’s support of KORUS and that of the UAW. Whereas the UAW got a pyrrhic victory in the 800 potential jobs it may get in exchange for further outsourcing of manufacturing (notably, the eventual opening of the truck market to Korean companies), the financial services industry got everything they wanted. Here’s how the White House describes the bonanza JPMC and the other banksters will get:

The financial services chapter in the U.S.-Korea agreement provides significantly improved market access into Korea for American financial services firms – supplementing and modifying the agreement’s rules on investment and services to allow American companies to provide financial services in the Korean market. At the same time, the agreement preserves the right of U.S. financial regulators to take action to ensure the integrity and stability of financial markets or address a financial crisis. Under the agreement, Korea also commits to treat U.S. financial institutions comparably to their competitors in the Korean market.

Public Citizen’s Trade Watch explained last year what that means: basically, KORUS protects precisely the kind of deregulation that got us into the financial crisis.

The FTA text was signed in 2007 before the financial crisis, and includes the extreme deregulation requirements of past Bush FTAs. Bush’s Korea FTA includes rules that countries cannot limit the size of financial institutions, impose “firewalls” between the sort of financial services one firm may offer to limit the spread of risk, ban toxic derivatives, or control destabilizing capital flights and floods. Both the U.S. and Korea have implemented important new financial stability and reregulation measures that could conflict with these rules, and thus be subject to challenge under the FTA. And, the regulations now being written to implement Congress’ major financial reregulation bill could be subject to direct attack by Korean corporations operating in the United States unless the FTA is fixed.

In many ways, the Korea FTA’s financial services provisions are more deregulatory than those of any previous FTA. According to fact sheets on the pact published by the Bush administration, “The Financial Services Chapter of the United States-South Korea Free Trade Agreement … is a groundbreaking achievement, providing more extensive provisions related to financial services than ever before included in a U.S. FTA.”

Of course JPMC would come out in support of continued impunity!

KORUS as a whole will contribute to the increasing financialization of our economy at the expense of our manufacturing base. Yet oddly, by leveraging payback for its various bailouts differently, the Administration has elicited cries of support from both the finance and the manufacturing industry.

Or maybe it’s just that unlike the UAW, the banksters have found a way to roll Obama over and over.

Monday Morning: Tarantela

I could listen to this piece on a loop. It’s Santiago de Murcia’s “Tarantela,” performed by noted lutist Rolf Lislevand. The instrument he is playing is as important as the music and his artistry; it’s an extremely rare Stradivarius guitar called the Sabionari. While tarantellas more commonly feature additional instruments and percussion like tambourines, this instrument is stunning by itself.

You can learn more about the Sabionari at Open Culture, a site I highly recommend for all manner of educational and exploratory content.

And now to dance the tarantella we call Monday.

Wheels

• What’s the German word for ‘omertà’? Because Volkswagen has it (Forbes) — Besides the use of obfuscation by translation, VW’s culture obstructs the investigation into Dieselgate by way of a “code of silence.” And money. Hush money helps.
• Growing percentage of VW investors want an independent investigation (WSJ) — An association 25,000 investors now demands an investigation; the problem continues to be Lower Saxony, the Qatar sovereign-wealth fund and the Porsche family, which combined own 92% of voting stock.
• VW production workers get a 5% pay raise (IBT) — Is this “hush money,” too, for the employees who can’t afford to be retired like VW’s executives? The rationale for the increase seems sketchy since inflation is negligible and VW group subsidiary workers at Audi and Porsche won’t receive a similar raise.
• Insanity? VW Group a buy opportunity next month (The Street) — Caveat: I am not a stockbroker. This information is not provided for investment purposes. Your mileage may vary. But I think this is absolute insanity, suggesting VW group stock may offer a buy opportunity next month when VW publishes a strategy for the next decade. If this strategy includes the same utterly opaque organization committing fraud to sell vehicles, is it smart to buy even at today’s depressed prices? The parallel made with Apple stock is bizarre, literally comparing oranges to Apples. Just, no.

Bad News (Media)

• NPR uses the word “torture” — but not about the U.S. (NPR) — Focus of this audio article is on doctors’ investigating torture using the Istanbul Protocol for documentation, but neatly avoids any torture conducted by the U.S. with the aid of doctors. Or any torture performed by U.S.’ law enforcement and prison complex. Syria is repeatedly mentioned, though.

Cybersec

• Organized criminals steal $13M in minutes from Japanese ATMs (The Guardian) — And then they fled the country. What?! The mass thefts were facilitated by bank account information acquired from an unnamed South African bank. Both Japan and SA use chip-and-pin cards — so much for additional security. Good thing this organized criminal entity seeks money versus terror. Interesting that the South African bank has yet to be named.
• Slovenian student receives 15-month suspended sentence for disclosing state-created security problems (Softpedia) — The student at Slovenia’s Faculty of Criminal Justice and Security in Maribor, Slovenia had been investigating Slovenia’s TETRA encrypted communications protocol over the last four years as part of a school project. He used responsible disclosure practices, but authorities did not respond; he then revealed the encrypted comms’ failure publicly to force action. And law enforcement went after him for exposing their lazy culpability hacking them.
• Related? Slovenian bank intended target for Vietnamese bank’s SWIFT attempted hack funds (Reuters) — Huh. Imagine that. Same country with highly flawed state-owned encrypted communications protocol was the target for monies hackers attempted to steal via SWIFT from Vietnamese TPBank. Surely just a coincidence, right?

Just for the heck of it, consider a lunch read/watch on a recent theory: World War 0. Sounds plausible to me, but this theory seems pretty fluid.

Catch you here tomorrow morning!

Wednesday Morning: Lüg mich an, Lügner

I admit freely my facility with the German language is poor. I hope this post’s headline reads, “Lie to me, Liar.” Which is about as close as I could get to “Lying Liars” because I can’t conjugate the verb ‘to lie.’

~shrug~

It’s not like anybody’s paying me for this, unlike the lying liars at Volkswagen who’ve been paid to deceive the public for a decade. This video presentation featuring Daniel Lange and Felix Domke — a security consultant and an IT consultant, respectively, who reverse engineered VW’s emissions control cheat — is a bit long, but it’s chock full of unpleasant truths revealing the motivations behind VW’s Dieselgate deceptions. The video underpins the cheat outlined in a 2006 VW presentation explaining how to defeat emissions tests.

The one problem I have with this video is the assumption that the fix on each of the affected vehicles will be $600. Nope. That figure is based on how much has been set aside for the entire Dieselgate fix, NOT the actual cost to repair the vehicles.

Because if VW really fixed the vehicles to match the claims they made when they marketed and sold these “clean diesel” passenger cars, it’d cost even more per vehicle. I suspect one of the motivations behind inadequate reserves for a true repair is a reluctance to disclose to competitors how much emissions standards-meeting “clean diesel” really costs.

And of course, avoiding more stringent calculations also prevents an even bigger hit to the company’s stock price, which might affect the pockets of some board members and executives rather disproportionately to the rest of the stock market.

Just how closely that figure per car hews to the agreement with the court this past week will be worth noting, since the video was published in December last year.

But now for the much bigger, even more inconvenient Lügner Lügen: This entire scandal exposes the fraud that is the U.N. Framework Convention on Climate Change Paris agreement.

We know a small nonprofit funded research by a tiny group of academics exposing VW’s emissions controls defeat. We know this set off a cascade of similar analysis, exposing even more cheating by more automobile manufacturers.

But why are we only now finding out from nonprofits and academics about this fraud? Didn’t our elected representatives create laws and the means for monitoring compliance as well as enforcement? Why aren’t governments in the U.S. and the EU catching these frauds within a year of their being foisted on the public?

These questions directly impact the Paris agreement. We’re not starting where emissions standards have been set and where the public believes conditions to be, but at real emissions levels. In other words, we are digging out of  a massive pollution hole.

Our elected officials across the world will avoid funding the dig-out; they’ll continue another layer of lies to prevent removal from office. And we can reasonably expect from them only what they’ve done so far, which Dieselgate has proven to be little.

For that matter, Flint’s water crisis has much in common with Dieselgate, relying on academic research and nonprofit entities to reveal mortal threats to the community. Flint’s crisis showed us government at all levels can be even worse at writing laws, monitoring compliance, and subsequent enforcement.

If the public cannot expect government to do the job it believes it elected them to do over the last several decades, how ever can they expect their government to enact the terms of the Paris agreement? How can we expect third world countries to reduce carbon emissions to save the world from the devastation of climate change while we and our governments continue to ignore corporations’ ongoing deceptions?

No roundup today, gang. I strongly recommend watching the video above. Thanks to BoingBoing for linking to it.

Wednesday Morning: Breaking Spring

In the Spring a livelier iris changes on the burnish’d dove;
In the Spring a young man’s fancy lightly turns to thoughts of love.

— excerpt, Locksley Hall by Alfred, Lord Tennyson

Welcome to spring break. And by break, I mean schedules are broken around here. Nothing like waiting up until the wee hours for a young man whose fancy not-so-lightly turned to love, because spring.

~yawn~

While the teenager lies abed yet, mom here will caffeinate and scratch out a post. It may be early afternoon by the time I get over this spring-induced sleep deprivation and hit the publish button.

Apple blossoms — iPhones and iPads, that is
Not much blooming on the #AppleVsFBI front, where Apple now seeks information about the FBI’s method for breaking into the San Bernardino shooter’s iPhone 5C. The chances are slim to none that the FBI will tell Apple anything. Hackday offers a snappy postmortem about this case with an appropriate amount of skepticism.

I wonder what Apple’s disclosure will look like about this entire situation in its next mandatory filing with the SEC? Will iPhone 5C users upgrade to ditch the undisclosed vulnerability?

What if any effect will the iPhone 5C case have on other criminal cases where iPhones are involved — like the drug case Brooklyn? Apple asked for a delay in that case, to assess its position after the iPhone 5C case. We’ll have to wait until April 11 for the next move in this unfolding crypto-chess match.

In the meantime, spring also means baseball, where new business blossoms for Apple. Major League Baseball has now signed with Apple for iPads in the dugout. Did the snafu with Microsoft’s Surface tablets during the NFL’s AFC championship game persuade the MLB to go with Apple?

Volkswagen coasting
It’s downhill all the way for VW, which missed last week its court-imposed 30-day deadline to offer a technical solution on its emissions standards cheating “clean diesel” passenger vehicles. If there was such a thing as “clean diesel,” VW would have met the deadline; as I said before, there’s no such thing as “clean diesel” technology. The judge allowed a 30-day extension to April 24, but my money is on another missed deadline. Too bad there’s not a diesel engine equivalent of Cellebrite, willing to offer a quick fix to VW or the court, huh?

Of note: former FBI director Robert Mueller has been named “special master” on this case by Judge Charles Breyer; Mueller has been meeting with all the parties involved. What the heck is a “special master”? We may not have a ready answer, but at least there’s a special website set up for this case, In re: Volkswagen “Clean Diesel” MDL.

The cherry on top of this merde sundae is the Federal Trade Commission’s lawsuit filed yesterday against VW for false advertising promoting its “clean diesel” passenger cars.

With no bottom yet in sight, some are wondering if VW will simply exit the U.S. market.

Automotive odd lot

• Jury says GM’s ignition switch was bad, but not at fault in a 2014 accident in New Orleans (Reuters) — Keep an eye on media representation of this case. Headline on this one focused on the switch, not the jury’s decision.
• Car-to-car communications will be road tested soon (MIT Technology Review) — This technology might have prevented Google’s self-driving car from getting crunched by a bus recently.
• Dude demonstrates his hack of Alexa + Raspberry Pi + OBDLink to remote start his car (Gizmodo) — What. even.

• Did Tennyson write anything about spring spawning naps? Because I feel like I need one. Hope we’re back in the groove soon. See you in the morning.