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      in US Politics

      Amazon’s sales up 44% as US economy soars 6.4% in first quarter

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      Amazon’s sales increased 44% to $108.5bn in the first three months of the year as the company’s pandemic boom continued into 2021.The sales figures from the online shopping and web services giant came after the release of slew of positive economic reports that suggest the US is shaking off the worst of the pandemic recession.Amazon made a profit of $8.1bn for the quarter – $2.7bn a month – beating analysts’ forecasts after a series of better than expected results from tech companies and others.While Amazon profited throughout the coronavirus downturn, there are now signs that the economic recovery is spreading.The news came after the commerce department said the US economy took off in the first quarter, soaring 6.4% on an annual basis as rising vaccinations, a massive round of government stimulus and a steady recovery in the jobs market helped reverse some of the impact of the coronavirus pandemic.The annualized rate suggests the US economy is firmly on the road to recovery. In normal times US gross domestic product (GDP) – the broadest measure of the economy – grows at about 2-2.5% a year, but the pandemic triggered wild swings as the country went into lockdown and businesses shuttered.The news comes amid a flood of good news for the US economy. The corporate earnings season has seen many sectors of the economy from banking to automotive bouncing back from the pandemic. Apple too reported bumper results on Tuesday, the latest tech company to record booming sales during the pandemic. New York City, the center of the US pandemic last year, will fully reopen on 1 July, while 43% of the population has received at least one dose of a Covid-19 vaccine and more than a quarter of the US is now fully vaccinated.US stock markets set record highs again after the GDP report and copper prices, seen as key indicator of economic demand, rose to $10,000 a tonne for the first time since 2011.The outpouring of good news is all the more remarkable given the scale of economic woe the pandemic heaped on the US economy.A year ago US unemployment hit a post-second world war high of 14.8%, it has since fallen to 6%. The economy suffered its worst quarterly contraction in history last year, shrinking 32.9% on an annualized basis. It grew at 4.3% in the last three months of 2020 after recording a remarkable annual growth rate of 33.4% in the previous three months.“The increase in first-quarter GDP reflected the continued economic recovery, reopening of establishments, and continued government response related to the Covid-19 pandemic,” the commerce department said.Problems remain, the number of people filing for unemployment benefits each week is still high. On Thursday the labor department said 553,000 people filed for benefits last week. The number has been falling sharply but remains close to twice as high as pre-pandemic levels and the jobs market is still down 8.4m jobs.Racial disparities also remain. Black and Latino Americans suffered the hardest as the pandemic closed businesses across the US and their unemployment rates remain elevated in comparison with white Americans. Women, too, have been pushed out of the workforce by the shutdowns, triggering what some economists have dubbed a “shecession”. Lack of childcare and other issues have meant that 1.8 million women have left the workforce entirely.But the fast rollout of vaccines, the reopening of businesses and the Biden administration’s $1.9tn stimulus bill have boosted consumer confidence and fueled an impressive recovery.The US government sent cheques to 90 million Americans in March and consumer confidence is approaching pre-pandemic levels having risen for four months in a row. Consumer spending accounts for two-thirds of US economic activity.Consumption growth surged 10.7% over the quarter and the US savings rate grew to 21.0% from 13.0%. Capital Economics expects those savers to start spending now that Covid-19 restrictions are lifting.“With the elevated saving rate, households are still flush with cash and, now that restrictions are being eased as the vaccination program proves a success, that will allow them to boost spending on the worst-affected services, without needing to pull back too much on goods spending,” the economic forecasting group wrote in a note to investors. More

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      in US Politics

      US split on vaccine passports as country aims for return to normalcy

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      With summer around the corner, Americans are desperate for some sense of normalcy as the rollout of the Covid-19 vaccine continues. Some businesses and lawmakers believe they have a simple solution that will allow people to gather in larger numbers again: vaccine passports.But as with so many issues in the US these days, it’s an idea dividing America.Vaccine passport supporters see a future where people would have an app on their phone that would include their vaccine information, similar to the paper record card from the Centers for Disease Control and Prevention (CDC) that is given when a person is vaccinated. People would flash the app when entering a large venue for something like a concert or sports game.While many other countries have implemented or are considering vaccine passports, in a country where political divides have determined belief in mask usage, social distancing and even the lethality of the virus, it comes as no surprise that there is already a political divide over whether vaccine passports should be used at all.Leaders of some Democratic states have embraced the idea of vaccine passports at big events like concerts and weddings.New York launched its Excelsior Pass with IBM in late March with the intention of having the app used at theaters, sports stadiums and event venues. California health officials will allow venues that verify whether someone has gotten the vaccine or tested negative to hold larger events. Hawaii is working with multiple companies on a vaccine passport system that would allow travelers to bypass Covid-19 testing and quarantine requirements if vaccinated.“Businesses have lost a lot of money during this whole period here so there’s a lot to recoup,” Mufi Hannemann, president and chief executive of the Hawaii Tourism and Lodging Association, told local news station Hawaii News Now. “We’re anxious to get this economy moving forward in a safe and healthy manner.”On the flip side, a growing number of states are passing laws banning vaccine passports, citing concerns of privacy and intrusion on people’s decisions to get vaccinated.“Government should not require any Texas to show proof of vaccination and reveal private health information just to go about their daily lives,” said Governor Greg Abbott, who ordered that no government agency or institution receiving government funding should require proof of vaccination.The governors of Mississippi, Florida, Tennessee, Arizona and Indiana have passed or voiced support for similar laws.Splits have already taken place. Norwegian Cruise Line, for example, told the CDC it would be willing to require passengers be fully vaccinated before boarding, but Florida’s governor, Ron DeSantis, said his ban on vaccine passports prohibits such a mandate.Nova Southeastern University in Fort Lauderdale, like many colleges and universities, said they would require students to be vaccinated before returning to campus in the fall, but the school is considering backtracking the policy following DeSantis’s order.Though conservative figures like Donald Trump Jr, who called vaccine passports “invasive”, have started to broadly attack Democrats for backing vaccine passports, the White House has made it clear the federal government has no plans to release a vaccine passport, or require mandatory vaccines.“The government is not now nor will we be supporting a system that requires Americans to carry a credential,” said Jen Psaki, White House press secretary, earlier in April.Psaki said the White House would release guidance for businesses and local governments who wish to implement vaccine passports.Vaccine passports have historically been used when crossing country borders. For example, some countries, including Brazil and Ghana, require people to have the vaccine against yellow fever before entering their countries. And while vaccine passports have not been used widely domestically in the US, vaccine mandates, and the proof of vaccines needed to carry them out, are common. Many schools require students to get a host of vaccines, while many healthcare systems often require the annual flu vaccine for employers.Sensitivity around a vaccine passport is probably an offshoot of a broader vaccine hesitancy. Recent polling has shown that vaccine skepticism has a partisan bent: 30% of Republicans said they would not get the vaccine versus 11% of Democrats, according to the Covid States Project. David Lazer, professor of political science at Northeastern University and a researcher with the Covid States Project, said “partisan divides on behaviors and policies have been acute throughout the pandemic”, but Democrats and Republicans are more evenly split on vaccines compared with other policies against Covid-19, like mask-wearing and social distancing.The term “passport” could also be turning people away from the concept, said Maureen Miller, an epidemiologist with Columbia University, as it implies that verification requires more personal information beyond vaccination status. A recent poll from the de Beaumont Foundation confirmed this, with Republican respondents being more supportive of vaccine “verification” over a “passport”.Miller said the World Health Organization, which is developing its own Smart Vaccine Certificate and standards for vaccine verification programs, has been adamant about making the distinction between a certificate and a passport.“A passport contains a lot of personal information, and a vaccine certificate does not,” Miller said. “It contains only the information necessary to convey the fact that the person has been vaccinated.”Other groups including the Vaccine Credential Initiative and the Covid-19 Credential Initiative are working on coming up with standards for digital vaccine passports with the aim of building trust in vaccine verification programs.Miller said the ultimate goal would be to reach herd immunity in the US, which would nix the need for vaccine passports but would require working through the skepticism that exists in the country.“People are not going to feel comfortable in large numbers, in social environments until we hit a kind of herd immunity, where, when you bump into someone, the risk of an infectious person bumping into someone who’s susceptible is decreased tremendously,” Miller said. More

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      in World Politics

      Shaping the Future of Energy Collaboration

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      The cancelation of British Prime Minister Boris Johnson’s much-awaited visit to India is disappointing but unsurprising. India, a country with nearly 1.4 billion people, is currently confronting a second wave of COVID-19 infections. Though all is not lost as bilateral talks are expected to take place virtually on April 26. High on the agenda remains the launch of Roadmap 2030, which will foreseeably set the tone for India-UK relations in a post-COVID era and pave the way for a free trade agreement.

      The Missing Pieces to Avoid a Climate Disaster

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      This shared vision, forming a critical piece of the “global Britain” agenda and the UK’s post-Brexit foreign policy, is expected to lay out a framework for enhanced cooperation across a much broader set of policy pillars. One such area is climate action, which is a key part of economic growth strategies and the global green energy agenda for both countries.

      As signatories to the 2015 Paris Agreement — the international treaty on climate change — India and the UK have sizable ambitions to invest in creating cleaner and sustainable energy systems. This time last year, the United Kingdom experienced its longest coal-free run to date, a significant milestone for an economy that generated about 40% of its electricity from coal just a decade ago. While India’s green energy transition is comparatively nascent, it has made significant strides toward expanding its renewable energy capacity, especially in solar power, where it is emerging as a global leader.

      Energy Sources

      Although the two countries have vastly different energy sources and consumption patterns, this creates a unique opportunity for each economy to capitalize on its individual strengths. In offshore wind power, the UK is the largest global player, while India has only begun to scratch the surface of its wind potential. The United Kingdom’s technical prowess will play a crucial role in supporting the growth of India’s offshore wind energy — from the meteorological expertise required to evaluate wind patterns and energy production potential to joint research and development opportunities.

      The growth of electric vehicles (EVs) is another area where each market has distinct strengths. India, for example, can rely on the UK’s experience as it undertakes the massive infrastructure exercise of deploying smart charging EV stations. The UK can draw on India’s success with battery-powered three-wheelers to develop sustainable last-mile connectivity solutions. Strengthened bilateral cooperation on these fronts will not only accelerate the EV revolution globally but can also serve to contain China’s dominance in this market.

      Embed from Getty Images

      The Indian and British governments are closely collaborating around climate action. This is evident from recent trips to India by the UK’s Alok Sharma, the president of this year’s UN Climate Change Conference (COP26) that will take place in Glasgow, and Lord Tariq Ahmad, the minister for South Asia and the Commonwealth.

      It is, however, important to expand the scope of these engagements to include small and medium-sized enterprises (SMEs), which constitute a powerhouse of skill and experience. SMEs based in the UK can play a significant role in supporting India’s energy transition. British companies could adapt their innovations for the local market, while in turn benefiting from India’s strong manufacturing base and engineering skills. To tap into this market opportunity, governments could facilitate SME-focused trade delegations as well as joint-venture opportunities for cleantech startups.

      Green financing would play an equally important role in truly unlocking the value of such partnerships. This would be through existing bilateral instruments like the Sustainable Finance Forum and Green Growth Equity Fund or the UK’s soon-to-be-launched revenue mechanism that will mobilize private investment into carbon capture and hydrogen projects. This is especially important for India, which is looking at green hydrogen in a big way and is set to launch its first national hydrogen roadmap this year. As the UK’s carbon capture market grows, this could support India’s plans to produce hydrogen from natural gas, creating new avenues for technology sharing.

      If one thing is clear, it is that the opportunities are immense and the existing foundation is strong. With the stage set and the actors in place, Roadmap 2030 could certainly stand to benefit not just India and the UK, but the world at large in delivering a cleaner, more affordable and resilient energy future.

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      in US Politics

      Existential challenges from China, climate and more demand new US industrial policy | Robert Reich

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      America is about to revive an idea that was left for dead decades ago. It’s called industrial policy and it’s at the heart of Joe Biden’s plans to restructure the US economy.When industrial policy was last debated, in the 1980s, critics recoiled from government “picking winners”. But times have changed. Devastating climate change, a deadly pandemic and the rise of China as a technological powerhouse require an active government pushing the private sector to achieve public purposes.The dirty little secret is that the US already has an industrial policy, but one that’s focused on pumping up profits with industry-specific subsidies, tax loopholes and credits, bailouts and tariffs. The practical choice isn’t whether to have an industrial policy but whether it meets society’s needs or those of politically powerful industries.Consider energy. The fossil fuel industry has accumulated “billions of dollars in subsidies, loopholes and special foreign tax credits”, in Biden’s words. He intends to eliminate these and shift to non-carbon energy by strengthening the nation’s electrical grid, creating a new “clean electricity standard” that will force utilities to end carbon emissions by 2035 and providing research support and tax credits for clean energy.It’s a sensible 180-degree shift of industrial policy.A proper industrial policy requires that industries receiving public benefits act in the public interestThe old industrial policy for the automobile industry consisted largely of bailouts – of Chrysler in 1979 and General Motors and Chrysler in 2008.Biden intends to shift away from gas-powered cars entirely and invest $174bn in companies making electric vehicles. He’ll also create 500,000 new charging stations.This also makes sense. Notwithstanding the success of Tesla, which received $2.44bn in government subsidies before becoming profitable, the switch to electric vehicles still needs pump priming.Internet service providers have been subsidized by the states and the federal government and federal regulators have allowed them to consolidate into a few giants. But they’ve dragged their feet on upgrading copper networks with fiber, some 30 million Americans still lack access to high-speed broadband, and the US has among the world’s highest prices for internet service.Biden intends to invest $100bn to extend high-speed broadband coverage. He also threatens to “hold providers accountable” for their sky-high prices – suggesting either price controls or antitrust enforcement.I hope he follows through. A proper industrial policy requires that industries receiving public benefits act in the public interest.The pharmaceutical industry exemplifies the old industrial policy at its worst. Big pharma’s basic research has been subsidized through the National Institutes of Health. Medicare, Medicaid and the Affordable Care Act bankroll much of its production costs. The industry has barred Americans from buying drugs from abroad. Yet Americans pay among the highest drug prices in the world.Biden intends to invest an additional $30bn to reduce the risk of future pandemics – replenishing the national stockpile of vaccines and therapeutics, accelerating the timeline for drug development and boosting domestic production of pharmaceutical ingredients currently made overseas.That’s a good start but he must insist on a more basic and long-overdue quid pro quo from big pharma: allow government to use its bargaining power to restrain drug prices.A case in point: the US government paid in advance for hundreds of millions of doses of multiple Covid-19 vaccines. The appropriate quid pro quo here is to temporarily waive patents so manufacturers around the world can quickly ramp up. Americans can’t be safe until most of the rest of the world is inoculated.Some of Biden’s emerging industrial policy is coming in response to China. Last week’s annual intelligence report from the Office of the Director of National Intelligence warns that Beijing threatens American leadership in an array of emerging technologies.Expect more subsidies for supercomputers, advanced semiconductors, artificial intelligence and other technologies linked to national security. These are likely to be embedded in Biden’s whopping $715bn defense budget – larger even than Trump’s last defense budget.Here again, it’s old industrial policy versus new. The new should focus on cutting-edge breakthroughs and not be frittered away on pointless projects like the F35 fighter jet. And it should meet human needs rather than add to an overstuffed arsenal.Biden’s restructuring of the American economy is necessary. America’s old industrial policy was stifling innovation and gouging taxpayers and consumers. The challenges ahead demand a very different economy.But Biden’s new industrial policy must avoid capture by the industries that dominated the old. He needs to be clear about its aims and the expected response from the private sector, and to reframe the debate so it’s not whether government should “pick winners” but what kind industrial policy will help the US and much of the world win. More

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      in US Politics

      Are US corporations really taking a stand for voting rights?

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      Despite a wave of public statements by corporations opposing legislation that would make it harder for people to vote, election reform advocates doubt American capitalism is really coming to the rescue of American democracy.Activists are welcoming corporate involvement in the fight against bills introduced by Republicans in state legislatures across the US to erect barriers to voting that disproportionately affect people of color and other groups that often vote Democratic.Hundreds of companies and business leaders lent their names this week to a two-page ad declaring “we must ensure the right to vote for all of us”, published in the country’s biggest papers.But past corporate interventions in social justice campaigns, including statements of solidarity with Black Lives Matter protesters last summer, did not go far beyond words, activists say.The pursuit of lower taxes and lax regulations, meanwhile, has led corporations to continuously finance the Republican party’s most corrosive projects, from voter suppression to the takeover of the judiciary to the big election lie that led to the sacking of the Capitol in January, they say.“Of course we welcome corporate support against outrageous voter suppression efforts by GOP state legislatures that make it harder for voters, particularly from communities of color and other historically marginalized communities, to vote,” said Ben Jealous, president of People For the American Way.It does feel, on this one, that some of these companies are getting out ahead of a potential boycott from consumers“That reaction is no doubt driven by their fears of losing business from their customers in the midst of heated public anger over such aggressive and targeted voter suppression, and we hope they will put their money where their mouth is and take real action to stop such proposals.”Thenewspaper ad was organized by two African American business leaders – Kenneth Frazier, chief executive of Merck, and Kenneth Chenault, former head of American Express – who have said such bills are racially discriminatory, even as Republicans insist election security is their deepest concern.The corporate decision to speak out created a rare moment of discombobulation for the Senate minority leader, Mitch McConnell, who warned chief executives to “stay out of politics” before clarifying a day later, with no hint of self-consciousness: “I’m not talking about political contributions.”But the surface friction between McConnell and his erstwhile patrons belies the mildness of most corporate criticism of anti-voter laws and obscures companies’ ambivalence when it comes to taking a stand on voting rights, activists said.Large Georgia-based companies including AT&T, Delta Airlines and Coca-Cola did not voice concerns last month about legislation to restrict voting in the state until they came under public pressure. Their eventual statements were measured.“We are working together with other businesses through groups like the Business Roundtable to support efforts to enhance every person’s ability to vote,” said AT&T’s chief executive, John Stankey. “In this way, the right knowledge and expertise can be applied to make a difference on this fundamental and critical issue.”The same three companies declined to sign the ad published in the New York Times and Washington Post last week, referring media to their statements about Georgia, though similar high-profile clashes are playing out in Michigan, Arizona, Texas and elsewhere.Walmart declined to sign the ad, with its chief executive, Doug McMillon, who chairs the Business Roundtable, telling employees: “We are not in the business of partisan politics.”Walmart’s reticence was spotlighted by LaTosha Brown and Cliff Albright, co-founders of Black Voters Matter, in a statement that praised the newspaper ad as a “righteous decision to stand up to racism, disenfranchisement, and voter suppression” and criticized those who did not sign.“They – and all of these other companies – continue to issue misleading statements that create a false equivalency between securing elections and attacking voting rights,” Black Voters Matter said. “These corporations are pandering to a big lie that is being used to justify voter suppression. That’s partisan.”Michael Serazio, a professor of communications at Boston College, said corporations appeared to be taking a “proactive” approach on voting rights to protect their bottom lines.“It does feel, on this one, that some of these companies are getting out ahead of a potential boycott from consumers, before the boycott around the laws was going to kick off,” Serazio said.Corporations increasingly feel pressure from consumers and in some cases employees on social and political issues, Serazio said.“Without question, the broader trend over the last decade has been corporations responding to a perceived or real sense that consumers want them to take a stand on political issues that they wouldn’t have done before.”But corporations simultaneously shovel money into the coffers of the very politicians who engineer the policies the companies claim to detest.A report this month by Public Citizen, a government watchdog, found corporations had given more than $50m in campaign donations in recent years to legislators who advanced anti-voter laws and promoted Donald Trump’s big election lie.Josh Silver, director of Represent.us, a non-partisan elections reform group, said corporations have “an extraordinarily important role” to play in the struggle over voting rights and there was “cause for hope”.“But it’s also practical for them,” Silver said. “They have to choose whether to side with an increasingly authoritarian [Republican party], or the majority of their workers and their consumers.“This is not just altruism.” More

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      in World Politics

      The Spread of Global Hate

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      One insidious way to torture the detainees at Guantanamo Bay was to blast music at them at all hours. The mixtape, which included everything from Metallica to the Meow Mix jingle, was intended to disorient the captives and impress upon them the futility of resistance. It worked: This soundtrack from hell did indeed break several inmates.

      For four years, Americans had to deal with a similar sonic blast, namely the “music” of President Donald Trump. His voice was everywhere: on TV and radio, screaming from the headlines of newspapers, pumped out nonstop on social media. MAGAmen and women danced to the repetitive beat of his lies and distortions. Everyone else experienced the nonstop assault of Trump’s instantly recognizable accent and intonations as nails on a blackboard. After the 2016 presidential election, psychologists observed a significant uptick in the fears Americans had about the future. One clinician even dubbed the phenomenon “Trump anxiety disorder.”

      What Led to Europe’s Vaccine Disaster?

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      The volume of Trump’s assault on the senses has decreased considerably since January. Obviously, he no longer has the bully pulpit of the Oval Office to broadcast his views. The mainstream media no longer covers his every utterance. Most importantly, the major social media platforms have banned him. In the wake of the January 6 insurrection on Capitol Hill, Twitter suspended Trump permanently under its glorification of violence policy. Facebook made the same decision, though its oversight board is now revisiting the former president’s deplatforming.

      It’s not only Trump. The Proud Boys, QAnon, the militia movements: The social media footprint of the far right has decreased a great deal in 2021, with a parallel decline in the amount of misinformation available on the Web.

      And it’s not just a problem of misinformation and hate speech. According to a new report by the Center for Strategic and International Studies (CSIS) on domestic terrorism, right-wing extremists have been involved in 267 plots and 91 fatalities since 2015, with the number of incidents rising in 2020 to a height unseen in a quarter of a century. A large number of the perpetrators are loners who have formed their beliefs from social media. As one counterterrorism official put it, “Social media has afforded absolutely everything that’s bad out there in the world the ability to come inside your home.”

      So, why did the tech giants provide Trump, his extremist followers and their global counterparts unlimited access to a growing audience over those four long years?

      Facebook Helps Trump

      In a new report from the Global Project Against Hate and Extremism (GPAHE), Heidi Beirich and Wendy Via write: “For years, Trump violated the community standards of several platforms with relative impunity. Tech leaders had made the affirmative decision to allow exceptions for the politically powerful, usually with the excuse of ‘newsworthiness’ or under the guise of ‘political commentary’ that the public supposedly needed to see.”

      Even before Trump became president, Facebook was cutting him a break. In 2015, he was using the social media platform to promote a Muslim travel ban, which generated considerable controversy, particularly within Facebook itself. The Washington Post reports:

      “Outrage over the video led to a companywide town hall, in which employees decried the video as hate speech, in violation of the company’s policies. And in meetings about the issue, senior leaders and policy experts overwhelmingly said they felt that the video was hate speech, according to three former employees, who spoke on the condition of anonymity for fear of retribution. [Facebook CEO Mark] Zuckerberg expressed in meetings that he was personally disgusted by it and wanted it removed, the people said.”

      But the company’s most prominent Republican, Vice-President of Global Policy Joel Kaplan, persuaded Zuckerberg to change his position. In spring 2016, when Zuckerberg wanted to condemn Trump’s plan to build a wall on the border with Mexico, he was again persuaded to step back for fear of seeming too partisan.

      Embed from Getty Images

      Facebook went on to play a critical role in getting Trump elected. It wasn’t simply the Russian campaign to create fake accounts, fake messaging and even fake events using Facebook, or the theft of Facebook user data by Cambridge Analytica. More important was the role played by Facebook staff in helping Trump’s digital outreach team maximize its use of social media. The Trump campaign spent $70 million on Facebook ads and raised much of its $250 million in online fundraising through Facebook as well.

      Trump established a new paradigm through brute force and money. As he turned himself into clickbait, the social media giants applied the same “exceptionalism” to other rancid politicians. More ominously, the protection accorded politicians extended to extremists. According to an account of a discussion at a Twitter staff meeting, one employee explained that “on a technical level, content from Republican politicians could get swept up by algorithms aggressively removing white supremacist material. Banning politicians wouldn’t be accepted by society as a trade-off for flagging all of the white supremacist propaganda.”

      Of course, in the wake of the January 6 insurrection, social media organizations decided that society could indeed accept the banning of politicians, at least when it came to some politicians in the United States.

      The Real Fake News

      In the Philippines, an extraordinary 97% of internet users had accounts with Facebookas of 2019, up from 40% in 2018 (by comparison, about 67% of Americans have Facebook accounts). Increasingly, Filipinos get their news from social media. That’s bad news for the mainstream media in the Philippines. And that’s particularly bad news for journalists like Maria Ressa, who runs an online news site called Rappler.

      At a press conference for the GPAHE report, Ressa described how the government of Rodrigo Duterte, with an assist from Facebook, has made her life a living hell. Like Trump, President Duterte came to power on a populist platform spread through Facebook. Because of her critical reporting on government affairs, Ressa felt the ire of the Duterte fan club, which generated half a million hate posts that, according to one study, consisted of 60% attacks on her credibility and 40% sexist and misogynist slurs. This onslaught created a bandwagon effect that equated journalists like her with criminals.

      This noxious equation on social media turned into a real case when the Philippine authorities arrested Ressa in 2019 and convicted her of the dubious charge of “cyberlibel.” She faces a sentence of as much as 100 years in prison.

      “Our dystopian present is your dystopian future,” she observed. What happened in the Philippines in that first year of Duterte became the reality in the United States under Trump. It was the same life cycle of hate in which misinformation is introduced in social media, then imported into the mainstream media and supported from the top down by opportunistic politicians.

      The Philippines faces another presidential election next year, and Duterte is barred from running again by term limits. Duterte’s daughter, who is currently the mayor of Davao City just like her father had been, tops the early polls, though she hasn’t thrown her hat in the ring and her father has declared that women shouldn’t run for president. This time around, however, Facebook disrupted the misinformation campaign tied to the Dutertes when it took down fake accounts coming from China that supported the daughter’s potential bid for the presidency.

      President Duterte was furious. “Facebook, listen to me,” he said. “We allow you to operate here hoping that you could help us. Now, if government cannot espouse or advocate something which is for the good of the people, then what is your purpose here in my country? What would be the point of allowing you to continue if you can’t help us?”

      Duterte had been led to believe, based on his previous experience, that Facebook was his lapdog. Other authoritarian regimes had come to expect the same treatment. In India, according to the GPAHE report, Prime Minister Narendra Modi’s Bharatiya Janata Party:

      “… was Facebook India’s biggest advertising spender in 2020. Ties between the company and the Indian government run even deeper, as the company has multiple commercial ties, including partnerships with the Ministry of Tribal Affairs, the Ministry of Women and the Board of Education. Both CEO Mark Zuckerberg and COO Sheryl Sandberg have met personally with Modi, who is the most popular world leader on Facebook. Before Modi became prime minister, Zuckerberg even introduced his parents to him.”

      Facebook has also cozied up to the right-wing government in Poland, misinformation helped get Jair Bolsonaro elected in Brazil, and the platform served as a vehicle for the Islamophobic content that contributed to the rise of the far right in the Netherlands. But the decision to ban Trump has set in motion a backlash. In Poland, for instance, the Law and Justice Party has proposed a law to fine Facebook and others for removing content if it doesn’t break Polish law, and a journalist has attempted to establish a pro-government alternative to Facebook called Albicla.

      Back in the USA

      Similarly, in the United States, the far right have suddenly become a big booster of free speech now that social media platforms have begun to deplatform high-profile users like Trump and take down posts for their questionable veracity and hate content. In the second quarter of 2020 alone, Facebook removed 22.5 million posts.

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      Facebook has tried to get ahead of this story by establishing an oversight board that includes members like Jamal Greene, a law professor at Columbia University; Julie Owono, executive director at Internet Sans Frontiere; and Nighat Dad, founder of the Digital Rights Foundation. Now, Facebook users can also petition the board to remove content.

      With Facebook, Twitter, YouTube and others now removing a lot of extremist content, the far right have migrated to other platforms, such as Gab, Telegram, and MeWe. They continue to spread conspiracy theories, anti-COVID vaccine misinformation and pro-Trump propaganda on these alternative platforms. Meanwhile, the MAGA crowd awaits the second coming of Trump in the form of a new social media platform that he plans to launch in a couple of months to remobilize his followers.

      Even without such an alternative alt-right platform — Trumpbook? TrumpSpace? Trumper? — the life cycle of hate is still alive and well in the United States. Consider the “great replacement theory,” according to which immigrants and denizens of the non-white world are determined to “replace” white populations in Europe, America and elsewhere. Since its inception in France in 2010, this extremist conspiracy theory has spread far and wide on social media. It has been picked up by white nationalists and mass shooters. Now, in the second stage of the life cycle, it has landed in the mainstream media thanks to right-wing pundits like Tucker Carlson, who recently opined, “The Democratic Party is trying to replace the current electorate of the voters now casting ballots with new people, more obedient voters from the Third World.”

      Pressure is mounting on Fox to fire Carlson, though the network is resisting. Carlson and his supporters decry the campaign as yet another example of “cancel culture.” They insist on their First Amendment right to express unpopular opinions. But a privately-owned media company is under no obligation to air all views, and the definition of acceptability is constantly evolving.

      Also, a deplatformed Carlson would still be able to air his crank views on the street corner or in emails to his followers. No doubt when Trumpbook debuts at some point in the future, Carlson’s biggest fan will also give him a digital megaphone to spread lies and hate all around the world. These talking heads will continue talking no matter what. The challenge is to progressively shrink the size of their global platform.

      *[This article was originally published by FPIF.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      in US Politics

      Warren Buffett, Amazon, Starbucks and others condemn voting restrictions in letter

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      Amazon, BlackRock, Google, Starbucks, billionaire investor Warren Buffett and hundreds of other companies published a letter on Wednesday condemning “discriminatory legislation” designed to hinder voting rights in the US.The letter – the biggest statement yet from corporate America – follows weeks of heated debate over corporate opposition to a series of Republican-sponsored bills that critics charge will restrict voting rights in states across the US.“We Stand for Democracy,” the double-page, centrefold advertisement published in the New York Times and Washington Post, begins. “Voting is the lifeblood of our democracy and we call upon all Americans to take a nonpartisan stand for this basic and most fundamental right of all Americans,” the statement reads.The statement was organized by two of the US’s most prominent Black executives, Kenneth Chenault, former chief executive of American Express, and Kenneth Frazier, the chief executive of Merck. Both executives have been prominent in opposition to restrictive voting laws and in leading a response from the business community.The statement does not address specific election legislation in states but it is the clearest indication yet that US corporations are looking to present a united front despite calls from several senior Republicans, including the former president Donald Trump and Senator Mitch McConnell, to stay out of politics.In an interview with the Times, Chenault said: “It should be clear that there is overwhelming support in corporate America for the principle of voting rights.” Frazier added that the statement was intended to be non-partisan.“These are not political issues,” he said. “These are the issues that we were taught in civics.”The effort to rise above partisan politics comes after several companies, including Coca-Cola and Delta Airlines, found themselves at the center of a dispute over voting rights legislation passed in Georgia. Lawmakers in the state threatened to withdraw tax breaks after the companies spoke out against the measures and others, including Trump, called for boycotts.The new statement comes after Chenault and Frazier convened a Zoom call of 100 CEOs over the weekend and is notable also for several companies that did not add their names, including Coca-Cola, Delta, Home Depot and JP Morgan.Coca-Cola and Delta declined to comment, according to the Times, while Home Depot said in a statement on Tuesday that “the most appropriate approach for us to take is to continue to underscore our belief that all elections should be accessible, fair and secure.”The JPMorgan Chase chief executive, Jamie Dimon, made a statement on voting rights before many other companies, saying: “We believe voting must be accessible and equitable.”Some signatories, including Buffett, chief executive of Berkshire Hathaway, elected to sign personally rather than on behalf of their companies. Buffett has previously stated that businesses should not be involved in politics but he did not put his personal political views “in a blind trust at all when I took the job”.The statement follows a declaration on Tuesday by automakers ahead of voting legislation hearings in Michigan that they oppose election laws that would inhibit voting.In a separate statement, GM posted on Twitter: “We are calling on Michigan lawmakers and state legislatures across the nation to ensure that any changes to voting laws result in protecting and enhancing the most precious element of democracy.“Anything less falls short of our inclusion and social justice goals,” the company said. More

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      in World Politics

      Peter Thiel’s Bitcoin Paranoia

      by

      Silicon Valley billionaire Peter Thiel finds himself in a confusing moral quandary as he struggles to weigh the merits of his nerdish belief in cryptocurrency against his patriotic paranoia focused on China’s economic rivalry with the United States. Participating in “a virtual event held for members of the Richard Nixon Foundation,” Thiel, while reaffirming his position as a “pro-Bitcoin maximalist,” felt compelled to call his faith into doubt due to his concern that China may use bitcoin to challenge US financial supremacy.

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      According to Yahoo’s Tim O’Donnell, Thiel “thinks Beijing may view Bitcoin as a tool that could chip away at the dollar’s might.” He directly quotes Thiel who wonders whether “Bitcoin should also be thought [of] in part as a Chinese financial weapon against the U.S.”

      Today’s Daily Devil’s Dictionary definition:

      Financial weapon:

      The role any significant amount of money in any one person’s, company’s or nation’s hand is expected to play to assert power and obtain undue advantages in today’s competitive capitalism

      Contextual Note

      Thiel may be stating the obvious. Money is power and concentrations of money amount to concentrated power. The point of power is to influence, intimidate or conquer, depending on how concentrated the power may be. It is ironically appropriate that the event at which Thiel spoke was organized by the Nixon Foundation. Richard Nixon was known for putting the quest for power above any other consideration. He was also known for opening the relationship with China, which many Republicans today believe led to a pattern of behavior that allowed China to eventually emerge as a threat far more menacing than the Soviet Union during the Cold War. Nixon was also the president who destroyed the Bretton Woods system that set the financial rules ensuring stable international relations in the wake of World War II.

      Thiel’s thoughts are both transparently imperialistic. They follow Donald Trump’s “America First” logic, while at the same time revealing Thiel’s uncertainty about how to frame it in the context of Bitcoin. His version of “America First” has less to do with the Trumpian idea that America should worry first about its own internal matters and later deal with the world than with the idea of the neocon conviction that the US must impose itself as the unique hegemon in the global economy. In Thiel’s mind, this sits uncomfortably alongside his made-in-Silicon Valley belief that cryptocurrencies represent the trend toward something that might be called “financial democracy.”

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      According to O’Donnell, Thiel “explained that China isn’t fond of the fact that the U.S. dollar is the world’s major reserve currency because it gives the U.S. global economic ‘leverage,’ and he thinks Beijing may view Bitcoin as a tool that could chip away at the dollar’s might.” O’Donnell is guilty of somewhat hypocritical understatement when he claims that it is all about China not being “fond of” the dollar’s status as the world’s major reserve currency. Who besides the US would be “fond of” such a thing? Those are O’Donnell’s words, not Thiel’s. As for the idea that Bitcoin might chip away at the dollar’s might, Thiel avoids making that specific point and prefers a more vaguely paranoid reading of events as he suggests a kind of plot in which China may be using Bitcoin to undermine US hegemony.

      Thiel’s phrasing places him clearly in the realm of what might be called diplomatic paranoia. He begins with a statement of speculative uncertainty as he expresses his concern with China’s turning Bitcoin into a financial weapon. Here are his exact words: “I do wonder whether at this point Bitcoin should also be thought in part of as a Chinese financial weapon against the US where it threatens fiat money but it especially threatens the US dollar and China wants to do things to weaken it.”

      “I do wonder whether at this point Bitcoin should also be thought … of” expresses a deviously framed insinuation of evil intentions by a Fu Manchu version of the Chinese government. This is a popular trope among Republicans and even Democrats today, who vie with each other to designate China as an enemy rather than a rival. But Thiel’s admission that it’s really about “wondering” tells us that we are closer to Alice’s Wonderland than to the CIA book of facts.

      Thiel then adds the temporal detail of “at this point,” which introduces a surreal notion of time that has more to do with a fictional dramatic structure than the reality of contemporary history. It is tantamount to saying: This is where the plot thickens. And his suggestion of how it “should be thought of,” besides being manipulative, indicates that we are invited into accepting the plot of a paranoid fantasy made up of thought rather than reality.

      He then explains what he means by “a Chinese financial weapon against the US.” Though he claims to be a believer in the unfettered freedom of cryptocurrency, he accuses it of violating what might be called “the rule of law” insofar as “it threatens fiat money,” which is the privilege of every nation on earth. But that worry has little merit compared to the fact it “especially threatens the US dollar,” which — it goes without saying — China wants to weaken.

      Thiel knows where the money is. It lies in the primacy of the US dollar. That is why the US has 800 military bases across the globe.

      Historical Note

      Since the dismantling in 1971 of the Bretton Woods system by US President Richard Nixon — in whose name the Richard Nixon Foundation was created — the dollar has functioned as the ultimate and most devastating financial weapon in history wielded by a single government. The Bretton Woods agreement, signed in 1944 by 44 countries, allowed the dollar to play a controlled role as the world’s reserve currency thanks to its convertibility with gold. When the growing instability of the dollar, due in part to the Vietnam War, threatened the order established by Bretton Woods, Nixon unilaterally broke the link with gold. Instantaneously, the US was free to weaponize the dollar for any purpose it judged to be in its interest.

      Nixon produced one of the greatest faits accomplis in history. As with many successful unnoticed revolutions, Nixon’s administration presented the uncoupling of the dollar and gold as a temporary measure, the response to a momentary crisis. It took two years for the world to notice that Bretton Woods had definitely collapsed. The era of floating currencies began. Money could finally be seen for what it is: a shared imaginary repository of value that could eventually become the focus of what Yuval Noah Harari has called the religion of capitalism in his book, “Money.”

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      For many people, Bitcoin has become a kind of alternative religion, or rather a vociferous radical sect on the fringes of the global religion of neoliberal capitalism. Bitcoin as a concept highlights the lesson brought home by the collapse of Bretton Woods: that the value of money people exchange, despite Milton Friedman’s objections, is literally based on nothing and therefore meaningless. That also means — though the faithful are not ready to admit it — that its value is infinitely manipulable. It appears to derive from economic reality but is anchored in little more than what a small group of people with excess cash may think of it on a given day. Elon Musk ostentatiously manipulated its value when he announced that Tesla had purchased $1.5 billion worth of bitcoin. 

      For anyone with billions to throw around, it’s an easy game to play. The manipulation by Musk, Peter Thiel’s former associate as co-founder of PayPal, doesn’t worry Thiel. Wondering about whether China might, in some imaginary scenario, use Bitcoin for nefarious purposes does trouble him.

      Thiel represents our civilization’s new ruling elite. It consists of individuals who sit between two hyperreal worlds, one dominated by the mystique that surrounds means of payment (cash) and the control of financial flows, complemented by another that seeks political control and the hegemony required to enforce the now imaginary “civilized” rules governing financial flow. Since the demise of Bretton Woods, those rules have lost all meaning. That means the rules themselves can be weaponized. It’s a monopoly that Thiel, his fellow members of the Nixon Foundation and most people in Washington insist on reserving for the US.

      *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More