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    When Mark Zuckerberg can face US senators and claim the moral high ground, we’re through the looking glass | Marina Hyde

    Did you catch a clip of the tech CEOs in Washington this week? The Senate judiciary committee had summoned five CEOs to a hearing titled Big Tech and the Online Child Sexual Exploitation Crisis. There was Meta’s Mark Zuckerberg, TikTok’s Shou Zi Chew, Snapchat’s Evan Spiegel, Discord’s Jason Citron and X’s Linda Yaccarino – and a predictable vibe of “Senator, I’m a parent myself …” Listen, these moguls simply want to provide the tools to help families and friends connect with each other. Why must human misery and untold, tax-avoidant billions attend them at every turn?If you did see footage from the hearing, it was probably one of two moments of deliberately clippable news content. Ranking committee member Lindsey Graham addressed Zuckerberg with the words: “I know you don’t mean it to be so, but you have blood on your hands.” Well, ditto, Senator. “You have a product that is killing people,” continued Graham, who strangely has yet to make the same point to the makers of whichever brand of AR-15 he proudly owns, or indeed to the makers of the assault rifles responsible for another record high of US school shootings last year. Firearms fatalities are the number one cause of death among US children and teenagers, a fact the tech CEOs at this hearing politely declined to mention, because no one likes a whatabouterist. And after all, the point of these things is to just get through the posturing of politicians infinitely less powerful than you, then scoot back to behaving precisely as you were before. Zuckerberg was out of there in time to report bumper results and announce Meta’s first ever dividend on Thursday. At time of writing, its shares were soaring.Anyhow, if it wasn’t that clip, maybe it was the one of Zuckerberg being goaded by sedition fist-pumper Josh Hawley into apologising to those in the committee room audience who had lost children to suicide following exploitation on his platform. Thanks to some stagey prodding by Senator Hawley, who famously encouraged the mob on 6 January 2020 (before later being filmed running away from them after they stormed the Capitol), Zuckerberg turned round, stood up, and faced his audience of the bereaved. “I’m sorry for everything you’ve all gone through,” he began. Helpfully, a transcribed version of this off-the-cuff moment found its way into a Meta press release minutes after the event.View image in fullscreenSo I guess that was the hearing. “Tense”, “heated”, “stunning” – listen, if adjectival cliches were legislation, this exercise would have been something more than pointless. And yet, they’re not and it wasn’t. There really ought to be a genre name for this kind of performative busywork – the theatre of failure, perhaps.Other outcomes were once available. Back in 1994, the CEOs of seven big tobacco firms took their oaths before a Senate committee, then spouted a communal line that nicotine wasn’t addictive. Within two years, all seven had quit the tobacco industry – a development not unrelated to the fact that all seven were under investigation by the justice department for perjury. Those were different times, and not just because we probably wouldn’t slap them with the “seven dwarfs” moniker now. These days, you can’t escape the sense that old guys were shouting at Zuckerberg at a hearing six years ago, while he offered 2018’s variation on his favourite blandishment: “We know we have more work to do”. And you suspect they’ll be shouting at him again in five years’ time, when he will still know they have more work to do. “If you’re waiting on these guys to solve the problem,” sniffed Graham of the tech CEOs, “we’re gonna die waiting.” Again, the senator speaks of what he knows. There is always talk of legislation, but there is never really much legislation.There’s a line near the start of the movie version of Ready Player One, the cult dystopian book about a VR world that weirdly feels like the lodestar for Zuckerberg’s pivot towards the metaverse: “I was born in 2027,” explains the teenage protagonist, “after the corn syrup droughts, after the bandwidth riots … after people stopped trying to fix problems, and just tried to outlive them.” It was hard to watch any amount of Wednesday’s hearing – it’s hard to watch a lot of news about the intersection of politics and mega-business these days, in fact – and not feel we are in a very similar place. Few of the politicians giving it the hero act could be said to have left the world in a better place than the one in which they found it when they took office. A necrotic form of politics has gripped the Republican party in particular, and this is the vacuum in which they have been downgraded by corporations they don’t even understand, let alone have the will, foresight, or political skill to control.“Companies over countries,” as Mark Zuckerberg said a long time ago. This once-unformed thought becomes more realised all the time, with the Meta boss last year explaining that, “Increasingly, the real world is a combination of the physical world we inhabit and the digital world we are building.” The added irony is that the more the Lindsey Grahams fail the real world, the more people retreat further into the unregulated embrace of the worlds that the Mark Zuckerbergs run. It’s going to take so much more than the theatre of failure to solve it – but bad actors currently dominate the bill.
    Marina Hyde is a Guardian columnist More

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    Beware the ‘botshit’: why generative AI is such a real and imminent threat to the way we live | André Spicer

    During 2023, the shape of politics to come appeared in a video. In it, Hillary Clinton – the former Democratic party presidential candidate and secretary of state – says: “You know, people might be surprised to hear me saying this, but I actually like Ron DeSantis a lot. Yeah, I know. I’d say he’s just the kind of guy this country needs.”It seems odd that Clinton would warmly endorse a Republican presidential hopeful. And it is. Further investigations found the video was produced using generative artificial intelligence (AI).The Clinton video is only one small example of how generative AI could profoundly reshape politics in the near future. Experts have pointed out the consequences for elections. These include the possibility of false information being created at little or no cost and highly personalised advertising being produced to manipulate voters. The results could be so-called “October surprises” – ie a piece of news that breaks just before the US elections in November, where misinformation is circulated and there is insufficient time to refute it – and the generation of misleading information about electoral administration, such as where polling stations are.Concerns about the impact of generative AI on elections have become urgent as we enter a year in which billions of people across the planet will vote. During 2024, it is projected that there will be elections in Taiwan, India, Russia, South Africa, Mexico, Iran, Pakistan, Indonesia, the European Union, the US and the UK. Many of these elections will not determine just the future of nation states; they will also shape how we tackle global challenges such as geopolitical tensions and the climate crisis. It is likely that each of these elections will be influenced by new generative AI technologies in the same way the elections of the 2010s were shaped by social media.While politicians spent millions harnessing the power of social media to shape elections during the 2010s, generative AI effectively reduces the cost of producing empty and misleading information to zero. This is particularly concerning because during the past decade, we have witnessed the role that so-called “bullshit” can play in politics. In a short book on the topic, the late Princeton philosopher Harry Frankfurt defined bullshit specifically as speech intended to persuade without regard to the truth. Throughout the 2010s this appeared to become an increasingly common practice among political leaders. With the rise of generative AI and technologies such as ChatGPT, we could see the rise of a phenomenon my colleagues and I label “botshit”.In a recent paper, Tim Hannigan, Ian McCarthy and I sought to understand what exactly botshit is and how it works. It is well known that generative AI technologies such as ChatGPT can produce what are called “hallucinations”. This is because generative AI answers questions by making statistically informed guesses. Often these guesses are correct, but sometimes they are wildly off. The result can be artificially generated “hallucinations” that bear little relationship to reality, such as explanations or images that seem superficially plausible, but aren’t actually the correct answer to whatever the question was.Humans might use untrue material created by generative AI in an uncritical and thoughtless way. And that could make it harder for people to know what is true and false in the world. In some cases, these risks might be relatively low, for example if generative AI were used for a task that was not very important (such as to come up with some ideas for a birthday party speech), or if the truth of the output were easily verifiable using another source (such as when did the battle of Waterloo happen). The real problems arise when the outputs of generative AI have important consequences and the outputs can’t easily be verified.If AI-produced hallucinations are used to answer important but difficult to verify questions, such as the state of the economy or the war in Ukraine, there is a real danger it could create an environment where some people start to make important voting decisions based on an entirely illusory universe of information. There is a danger that voters could end up living in generated online realities that are based on a toxic mixture of AI hallucinations and political expediency.Although AI technologies pose dangers, there are measures that could be taken to limit them. Technology companies could continue to use watermarking, which allows users to easily identify AI-generated content. They could also ensure AIs are trained on authoritative information sources. Journalists could take extra precautions to avoid covering AI-generated stories during an election cycle. Political parties could develop policies to prevent the use of deceptive AI-generated information. Most importantly, voters could exercise their critical judgment by reality-checking important pieces of information they are unsure about.The rise of generative AI has already started to fundamentally change many professions and industries. Politics is likely to be at the forefront of this change. The Brookings Institution points out that there are many positive ways generative AI could be used in politics. But at the moment its negative uses are most obvious, and more likely to affect us imminently. It is vital we strive to ensure that generative AI is used for beneficial purposes and does not simply lead to more botshit.
    André Spicer is professor of organisational behaviour at the Bayes Business School at City, University of London. He is the author of the book Business Bullshit More

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    How 2023 became the year Congress forgot to ban TikTok

    Banning TikTok in the US seemed almost inevitable at the start of 2023. The previous year saw a trickle of legislative actions against the short-form video app, after dozens of individual states barred TikTok from government devices in late 2022 over security concerns. At the top of the new year, the US House followed suit, and four universities blocked TikTok from campus wifi.The movement to prohibit TikTok grew into a flash flood by spring. CEO Shou Zi Chew was called before Congress for brutal questioning in March. By April – with support from the White House (and Joe Biden’s predecessor) – it seemed a federal ban of the app was not just possible, but imminent.But now, as quickly as the deluge arrived, it has petered out – with the US Senate commerce committee confirming in December it would not be taking up TikTok-related legislation before the end of the year. With the final word from the Senate, 2023 became the year Congress forgot to ban TikTok.“A lot of the momentum that was gained after the initial flurry of attention has faded,” said David Greene, a civil liberties attorney with the Electronic Frontier Foundation (EFF). “It seems now like the idea of a ban was being pushed more so to make political points and less as a serious effort to legislate.”Lots of legislation, little actionThe political war over TikTok centered on allegations that its China-based parent company, ByteDance, could collect sensitive user data and censor content that goes against the demands of the Chinese Communist party.TikTok, which has more than 150 million users in the United States, denies it improperly uses US data and has emphasized its billion-dollar efforts to store that information on servers outside its home country. Reports have cast doubt on the veracity of some of TikTok’s assertions about user data. The company declined to comment on a potential federal ban.With distress over the influence of social media giants mounting for years, and tensions with China high after the discovery of a Chinese spy balloon hovering over the US in February 2023, attacks on TikTok became more politically viable for lawmakers on both sides of the aisle. Legislative efforts ensued, and intensified.The House foreign affairs committee voted in March along party lines on a bill aimed at TikTok that Democrats said would require the administration to effectively ban the app and other subsidiaries of ByteDance. The US treasury-led Committee on Foreign Investment in the United States (CFIUS) in March demanded that TikTok’s Chinese owners sell off the app or face the possibility of a ban. Senator Mark Warner, a Democrat from Virginia, and more than two dozen other senators in April sponsored legislation – backed by the White House – that would give the administration new powers to ban TikTok and other foreign-based technologies if they pose national security threats.But none of these laws ever made it to a vote, and many have stalled entirely as lawmakers turned their attention to the boom in artificial intelligence. Warner told Reuters in December that the bill he authored has faced intensive lobbying from TikTok and had little chance of survival. “There is going to be pushback on both ends of the political spectrum,” he said.The Montana effectMontana passed a total statewide ban on TikTok in May, to start on 1 January 2024, setting the stage for a federal one. That momentum for a nationwide prohibition ebbed, however, when a US judge last week blocked the legislation from going into effect – a move that TikTok applauded.“We are pleased the judge rejected this unconstitutional law and hundreds of thousands of Montanans can continue to express themselves, earn a living, and find community on TikTok,” the company’s statement reads.In a preliminary injunction blocking the ban, US district judge Donald Molloy said the law “oversteps state power and infringes on the constitutional rights of users”. The closely watched decision indicated that broader bans are unlikely to be successful.“The Montana court blocking the effort to ban TikTok not only threw a wet blanket on any federal efforts to do the same, but sent a clear message to every lawmaker that banning an app is a violation of the first amendment,” said Carl Szabo, general counsel at the freedom of speech advocacy group NetChoice, of which TikTok is a member.The EFF’s Greene, who also watched the Montana case closely, echoed that the results proved what many free speech advocates have long argued: a broad ban of an app is not viable under US law.“This confirmed what most people assumed, which is that what is being suggested is blatantly not possible,” he said. “Free speech regulation requires really, really precise tailoring to avoid banning more speech than necessary. And a total ban on an app simply does not do that.”skip past newsletter promotionafter newsletter promotionPolitical discussions around the ban also exposed a need for comprehensive privacy legislation, Greene said. The same politicians raising concerns about the Chinese government collecting data had done little to address companies like Meta collecting similar reams of data in the US.“The ideas that were floated were legally problematic and belied a real, sincere interest in addressing privacy harms,” he said. “I think that can cause anyone to question whether they really cared about users.”Election year fearsMeanwhile, some analysts think Congress and the White House are unlikely to even attempt to ban TikTok in 2024, an election year, given the app’s popularity with young voters.Joe Biden’s re-election campaign team has been reportedly debating whether to join TikTok, on which the president does not currently have an official page, to attempt to reach more young voters. Nearly half of people between 18 and 30 in the US use TikTok, and 32% of users in that age group say they regularly consume news there. To date, Vivek Ramaswamy is the only Republican candidate to join the app, a move which has elicited lashings from his opponents in multiple debates.“The same lawmakers calling for a ban are going to need to pivot to online platforms like TikTok for their upcoming get-out-the-vote efforts,” said Szabo. “To cut off a major avenue of reaching voters during an election year doesn’t make political sense.”Even as interest in banning TikTok wanes – politically and among voters – the efforts are not entirely dead. Senator Maria Cantwell, a Democrat from Washington, told Reuters she is still working on legislation and in talks with federal agencies, noting that the Senate held a secure briefing on concerns about foreign influence by way of social media last month.Even as the interest and political power to fuel a TikTok ban wanes, social networks are going to be under the magnifying glass in the coming year, said Szabo.“As we go into 2024, I will say that control of speech on the internet is going to be even more heated, as lawmakers try to control what people can say about their campaigns,” he said. “I would also expect to see those very same politicians using the platform to raise money and to get out the vote.”Reuters contributed reporting More

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    Brawny billionaires, pumped-up politicians: why powerful men are challenging each other to fights

    The first rule of insecure masculinity fight club? Tell everyone about it. And I mean everyone. Tweet about it, talk to reporters, shout about it from the rooftops. Make sure the entire world knows that you are a big boy who could beat just about anyone in a fistfight.Twenty twenty-three, as I’m sure you will have observed, was the year that tech CEOs stepped away from their screens and decided to get physical. Elon Musk, perennially thirsty for attention, was at the center of this embarrassing development. The 52-year-old – who challenged Vladimir Putin to single combat in 2022 – spent much of the year teasing the idea that he was going head-to-head with Mark Zuckerberg in a cage fight. At one point he suggested the fight would be held at the Colosseum in Rome.Don’t worry, you didn’t miss it. The fight never happened and will never ever happen for the simple reason that Musk would get destroyed by Zuckerberg, who has been obsessively training in mixed martial arts (MMA) and won a bunch of medals in a Brazilian jiujitsu tournament. The only way Musk will actually follow through with the cage match is if he manages to get his hands on some kind of brain-implant technology that magically transforms him into a lean, mean, fighting machine. Indeed, I wouldn’t be surprised if Neuralink, Musk’s brain-chip startup, was working on that brief right now. Although seeing as the company is under federal investigation after killing 1,500 animals in testing– many of which died extremely grisly deaths – it may be a while before any such technology comes to fruition.Musk and Zuck aren’t the only tech execs looking to get physical. Vin Diesel-level biceps have become the latest billionaire status symbol. Just look at Jeff Bezos: his muscles have increased at about the same rate as his bank account. The Airbnb CEO, Brian Chesky, has also been working on getting swole. Back in June, Chesky told the Bloomberg writer Dave Lee that he’d “challenge any leader in tech to bench press”. He added: “I’ve been waiting for these physical battles in tech. It’s just so funny.”It’s not just tech bros. Politicians are at it too. Over the summer, Robert F Kennedy Jr posted a video of himself doing push-ups while shirtless with the caption “Getting in shape for my debates with President Biden!” Which may or may not have been prompted by Biden once challenging an Iowa voter and Donald Trump to a push-up contest.I don’t know how good Kevin McCarthy is at push-ups, but he’s certainly fond of shoving. In November, the former speaker bumped into the congressman Tim Burchett of Tennessee and reportedly elbowed him in the back. Burchett then chased after him, calling him a “jerk” and a “chicken”. McCarthy, it seems, was angry that Burchett had helped oust him from the speakership in October, making him the first speaker in US history to have been removed by his own side.Just a few hours after that altercation, Markwayne Mullin, a Republican senator from Oklahoma, challenged Sean O’Brien, president of the International Brotherhood of Teamsters, to a physical confrontation during a Senate committee hearing on labor unions. Mullin, a former businessman who regularly boasts about his prowess as an MMA fighter, was miffed that O’Brien had once called him a “greedy CEO” and a “clown” on Twitter. He decided to settle his private grievance during a public hearing and the two agreed to have a fight right there and then – yelling at each other to “stand your butt up” and get started. Eventually Bernie Sanders got them to calm down.Just pause for a moment and imagine acting like this in your own job. I don’t know about you, but I’m pretty sure that if I challenged a colleague to a fight and started yelling at them to “sit their butt down” in the middle of a public meeting, I would face some sort of consequences. In the Mullins case, the meltdown doesn’t seem to have had any impact on his career. It may have even increased his popularity among his base. Politicians routinely seem to be held to a lower standard than the rest of us.If you ignore the fact that we’re being ruled by people with enormous egos and no self-restraint, then there is an amusing element to all this. But more than anything, it’s just pathetic, isn’t it? All these grown men so clearly worried about their masculinity that they feel the need to puff out their chests and show everyone just how strong they are.The one per cent’s desperate shows of bravado are part of a broader insecurity about masculinity in the west that plenty of snake-oil salesmen and opportunists are exploiting for all it’s worth. In 2022, for example, the rightwing commentator Tucker Carlson came out with a documentary called The End of Men that argues testosterone counts are plummeting and “real men” are an endangered species. The documentary was full of bizarre ways to counteract this, including testicle tanning. I’m not sure how many tech bros and politicians are regularly exposing their balls to red-light therapy, but there does seem to be a widespread preoccupation with “bromeopathic” ways to increase testosterone. Testosterone blood-test “T parties” are apparently a growing trend among tech types: a bunch of founders get together and find ways to raise their T.Do whatever you like in private, I say. Tan your testicles, go to T parties, organize push-up competitions. Just don’t foist your masculine insecurities on the rest of us. Stop challenging each other to public fights and getting into brawls in government. It seems to be easy enough for women to follow this advice, doesn’t it? I mean … has a female CEO or politician ever tried to organize a public fistfight with a female counterpart? I’ve got a weird feeling the answer is “no, they would be a complete laughingstock if they did”, but if anyone can find me a recent example then I’ll eat my hat. Or – on second thoughts – I’ll throw my hat in the ring and fight Elon Musk myself in the Roman Colosseum. Consider that a challenge. More

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    Meta allows ads saying 2020 election was rigged on Facebook and Instagram

    Meta is now allowing Facebook and Instagram to run political advertising saying the 2020 election was rigged.The policy was reportedly introduced quietly in 2022 after the US midterm primary elections, according to the Wall Street Journal, citing people familiar with the decision. The previous policy prevented Republican candidates from running ads arguing during that campaign that the 2020 election, which Donald Trump lost to Joe Biden, was stolen.Meta will now allow political advertisers to say past elections were “rigged” or “stolen”, although it still prevents them from questioning whether ongoing or future elections are legitimate.Other social media platforms have been making changes to their policies ahead of the 2024 presidential election, for which online messaging is expected to be fiercely contested.In August, X (formerly known as Twitter) said it would reverse its ban on political ads, originally instituted in 2019.Earlier, in June, YouTube said it would stop removing content falsely claiming the 2020 election, or other past US presidential elections, were fraudulent, reversing the stance it took after the 2020 election. It said the move aimed to safeguard the ability to “openly debate political ideas, even those that are controversial or based on disproven assumptions”.Meta, too, reportedly weighed free-speech considerations in making its decision. The Journal reported that Nick Clegg, president of global affairs, took the position that the company should not decide whether elections were legitimate.The Wall Street Journal reported that Donald Trump ran a Facebook ad in August that was apparently only allowed because of the new rules, in which he lied: “We won in 2016. We had a rigged election in 2020 but got more votes than any sitting president.”The Tech Oversight Project decried the change in a statement: “We now know that Mark Zuckerberg and Meta will lie to Congress, endanger the American people, and continually threaten the future of our democracy,” said Kyle Morse, deputy executive director. “This announcement is a horrible preview of what we can expect in 2024.”Combined with recent Meta moves to reduce the amount of political content shared organically on Facebook, the prominence of campaign ads questioning elections could rise dramatically in 2024.“Today you can create hundreds of pieces of content in the snap of a finger and you can flood the zone,” Gina Pak, chief executive of Tech for Campaigns, a digital marketing political organization that works with Democrats, told the Journal.Over the past year Meta has laid off about 21,000 employees, many of whom worked on election policy.Facebook was accused of having a malign influence on the 2016 US presidential election by failing to tackle the spread of misinformation in the runup to the vote, in which Trump beat Hillary Clinton. Fake news, such as articles slandering Clinton as a murderer or saying the pope endorsed Trump, spread on the network as non-journalists – including a cottage industry of teenagers living in Macedonia – published false pro-Trump sites in order to reap advertising dollars when the stories went viral.Trump later appropriated the term “fake news” to slander legitimate reporting of his own falsehoods. More

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    The trials of SBF and DJT: Trump isn’t clean on crypto but he did warn us about it

    The New York fraud trial of Sam Bankman-Fried kicked off this week. The 31-year-old former crypto billionaire faces two substantive counts of wire fraud, for acts allegedly perpetrated against the customers of FTX, the crypto-futures exchange he founded, and five related counts of conspiracy. If convicted on all charges, he faces up to 110 years in prison.As fate would have it, his case is being heard a few buildings away from where one Donald J Trump sits on trial for fraud. Like the 45th president – DJT, if you will – SBF has a tough row to hoe.Even if Bankman-Fried is acquitted, he stares at another trial, slated for March 2024, on five more counts of fraud. The men’s paths remain entwined. At that same moment, Trump will be both deep into the Republican primary and likely standing trial in connection with January 6.Furthermore, filings show that as of early August, Trump held $2.8m in a cryptocurrency wallet, with as much as $500,000 in ethereum, a cryptocurrency. On top of that, his collection of non-fungible tokens generated $4.87m in licensing fees. The NFTs are a collection of virtual trading cards, featuring illustrations of Trump as superhero, cowboy or astronaut. Really.Not that Trump has always been in favour of crypto.“I am not a fan of bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air,” he tweeted in 2019.Sound familiar? Prosecutors say Bankman-Fried relied on smoke and mirrors to gain access to political power. According to his indictment, he used customers’ assets “to lobby Congress and regulatory agencies to support legislation and regulation he believed would make it easier for FTX to continue to accept customer deposits and grow”.He is also alleged to have “misappropriated customer money to help fund over $100m in political contributions in advance of the 2022 election”, while seeking to “conceal the source of the funds used for the contributions”.Trump and his party, however, were not the chief recipients of such largesse. Bankman-Fried tended to donate to Democrats. Conservatives were therefore annoyed. They sought to portray Bankman-Fried as a leftist, on top of being a crook. Once upon a time, though, he met Ron DeSantis for no apparent reason other than the fact Florida’s hard-right governor wanted to meet. Now, as a presidential candidate, DeSantis has emerged as a crypto advocate. His campaign continues to sink, however.We know more about such meetings now, thanks in large part to Going Infinite: The Rise and Fall of a New Tycoon, a new book by Michael Lewis, the author of Moneyball, The Big Short and other bestsellers about how capitalism works – and doesn’t.For instance, Jerry Jones, a Republican and owner of the Dallas Cowboys NFL team, showed up at a Beverly Hills party also attended by Hillary Clinton, a passel of Kardashians, Doug Emhoff, the husband of the vice-president, Kamala Harris – and Bankman-Fried.Bankman-Fried had allure. Exactly why continues to puzzle political players. His money doesn’t explain everything. But it does shed light on plenty.In summer 2022, Lewis writes, Bankman-Fried met Mitch McConnell, the Senate minority leader, with the goal of stopping Trump-aligned extremists snagging Republican nominations. It was a high-level meeting – high enough that for one evening, Bankman-Fried even swapped his beloved cargo shorts for a suit.“At that moment, Sam was planning to give $15m to $30m to McConnell to defeat the Trumpier candidates in the Senate races,” Lewis writes.Bankman-Fried also explored paying Trump $5bn not to run in 2024, Lewis writes. Nothing came of that.Now, as Bankman-Fried sits in court, McConnell, 81, remains in the minority, his health in public decline. But McConnell remains a reliable soldier, his hold on his caucus unchanged.skip past newsletter promotionafter newsletter promotionThe crypto industry, meanwhile, scrambles to salvage its image from the damage done by Bankman-Fried.“The idea that one man and one company dictated an entire industry was frustrating for a lot of people,” Kara Calvert, head of US policy at Coinbase, recently told Politico. “At the end of the day, the industry is so broad-based. Nobody wants to let the whole future of technological development in the United States be dictated by a criminal.”Bankman-Fried has not been convicted of anything. But it does seem extraordinary that he rose so high so fast, and that so many political leaders were so eager to help.“From the beginning, I had thought that crypto was pretty dumb,” wrote Zeke Faux, an investigative reporter for Bloomberg and a fellow at New America, in Number Go Up, his unflattering take on crypto and Bankman-Fried. “And it turned out to be even dumber than I imagined.“There was no mass movement to actually use crypto in the real world … from El Salvador to Switzerland to the Philippines, all I saw were scams, fraud, and half-baked schemes.”In September 2021, El Salvador made bitcoin legal tender, the first country to do so. The rightwing Heritage Foundation ranks the country’s economy the 114th most free. Freedom House, more mainstream, rates El Salvador partly free. It’s not a flattering ad for crypto.In the US, major advocates include Eric Adams, the mayor of New York; Robert Kennedy Jr, a conspiracy theorist and likely third-party presidential candidate; and Cynthia Lummis, the Wyoming Republican senator who opposed certifying Joe Biden’s 2020 win just hours after the attack on Congress.Such names should tell us something – as should Trump’s crypto holdings mentioned above. But anyone who still believes might also care to recall Trump’s earlier words.“Unregulated crypto assets can facilitate unlawful behavior, including drug trade and other illegal activity,” he tweeted, more than four years ago. “We have only one real currency in the USA … it is by far the most dominant currency anywhere in the world, and it will always stay that way. It is called the United States Dollar!”Strange as it seems to say it, the man had a point. More

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    For Elon Musk, the personal is political – but his march to the right affects us all

    The personal is political. The phrase was popularized by 1960s second-wave feminism but it sums up Elon Musk’s ideological journey. Once a “fundraiser and fanboy for Barack Obama”, to quote his biographer, Walter Isaacson, the sometime world’s richest man now plays thin-skinned, anti-woke warrior – a self-professed free-speech purist who in fact is anything but.His rebranding of Twitter to X having proved a disaster, he flirts with antisemites for fun and lost profits. He threatens the Anti-Defamation League with a multibillion-dollar lawsuit. The ADL never suggested the name “X”. That was a long-term fetish, now a clear own-goal.Like the building of Rome, Musk’s march to the right did not take only one day. A series of events lie behind it. Musk is a modern Wizard of Oz. Like the man behind the curtain, he is needy. According to Isaacson, outright rejection – and gender transition – by one of Musk’s children played an outsized role in his change. So did Covid restrictions and a slap from the Biden White House.In March 2020, as Covid descended, Musk became enraged when China and California mandated lockdowns that threatened Tesla, his electric car company, and thus his balance sheet.“My frank opinion remains that the harm from the coronavirus panic far exceeds that of the virus itself,” he wrote in an intra-company email.But Musk jumped the gun. Moloch would take his cut. In the US, Covid has killed 1.14 million. American life expectancy is among the lowest in the industrialized west. Thailand does better than Florida, New York and Iowa. For their part, Ohio, South Carolina and Missouri, all Republican-run, trail Thailand. Bangladesh outperforms Mississippi. Overall, the US is behind Colombia and Croatia. Under Covid, Trump-voting counties became killing fields.But in May 2020, amid a controversy with local government in California, Musk tweeted, “take the red pill”. It was a reference to The Matrix, in which Neo, the character played by Keanu Reeves, elects to take the “red pill” and thereby confront reality, instead of downing the “blue pill” to wake happily in bed. Ivanka Trump, of all people, was quick to second Musk: “Taken!”Musk’s confrontation with California would not be the last time he was stymied or dissed by those in elected office. In summer 2021, the Biden administration stupidly declined to invite him to a White House summit on electric vehicles – because Tesla was not unionized.“We, of course, welcome the efforts of all automakers who recognize the potential of an electric vehicle future and support efforts that will help reach the president’s goal. And certainly, Tesla is one of those companies,” Biden’s press secretary said, adding: “Today, it’s the three largest employers of the United Auto Workers and the UAW president who will stand with President Biden.” Two years later, the UAW has gone on strike. At midnight on Thursday, 13,000 workers left the assembly lines at General Motors, Ford and Chrysler.For all of his talk of freedom, Musk sidles up to China. This week, he claimed the relationship between Taiwan and China was analogous to that between Hawaii and the US. Taiwan is “an integral part of China that is arbitrarily not part of China”, Musk said. Such comments dovetail with Chinese talking points. He made no reference to US interests. He is a free agent. It’s not just about Russia and Ukraine.Musk’s tumultuous personal life has also pressed on the scales. In December 2021, he began to rail against the “woke mind virus”. If the malady were left unchecked, he said, “civilization will never become interplanetary”. Musk apparently loves humanity. People, however, are a different story.According to Isaacson, the outburst was triggered in part by rejection and gender transition. In 2022, one of his children changed her name to Vivian Jenna Wilson, telling a court: “I no longer live with or wish to be related to my biological father in any way, shape or form.” She also embraced radical economics.“I’ve made many overtures,” Musk tells Isaacson. “But she doesn’t want to spend time with me.” His hurt is palpable.James Birchall, Musk’s office manager, says: “He feels he lost a son who changed first and last names and won’t speak to him anymore because of this woke mind virus.”Contradictions litter Musk’s worldview. Take the experiences of Bari Weiss, the professional contrarian and former New York Times writer. In late 2022, she was one of the conduits for the Twitter Files, fed to receptive reporters by Musk in an attempt to show Twitter’s bias against Trump and the US right. On 12 December, Weiss delivered her last reports. Four days later, she criticized Musk’s decision to suspend a group of journalists, for purportedly violating anti-doxxing policies.“He was doing the very things that he claimed to disdain about the previous overlords at Twitter,” Weiss charged. She also pressed Musk over China, to his dismay. He grudgingly acknowledged, she told Isaacson, that because of Tesla’s investments, “Twitter would indeed have to be careful about the words it used regarding China.“China’s repression of the Uyghurs, he said, has two sides.”“Weiss was disturbed,” Isaacson writes.Musk is disdainful of Donald Trump, whom he sees as a conman. This May, on X, Musk hosted a campaign roll-out for another would-be strongman: Ron DeSantis. A glitch-filled disaster, it portended what followed. The Florida governor continues to slide in the polls, Vivek Ramaswamy nipping at his heels.Musk remains a force. On Monday, he is slated to meet Benjamin Netanyahu, the indicted rightwing prime minister of Israel who will be in New York for the United Nations general assembly. Like Musk, Netanyahu is not a favorite of the Biden White House. Misery loves company. More

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    Google accused of spending billions to block rivals as landmark trial continues

    The court battle between the US justice department and Google has entered its second day, as the United States government seeks to prove that the tech behemoth illegally leveraged its power to maintain a monopoly over internet search engines. The trial is a major test of antitrust law and could have far-reaching implications for the tech industry and for how people engage with the internet.The question at the heart of the trial is whether Google’s place as the search engine for most Americans is the result of anti-competitive practices that gave internet users no other choice but to use its services.On the first day of the trial, attorneys for the justice department and the dozens of states that have joined in the suit accused Google of shutting out competition through billion-dollar agreements with companies such as Apple and Samsung.The justice department lawyer Kenneth Dintzer alleged Google spends $10bn a year in deals to ensure it is the default search engine on devices such as the iPhone, effectively blocking meaningful competition and positioning Google as the gatekeeper of the internet.“They knew these agreements crossed antitrust lines,” Dintzer said.Google’s opening statement gave a window into how the company and its lead attorney, John Schmidtlein, plan to defend against the accusations. Schmidtlein argued that Google has achieved its dominance over online search – the government estimates it holds about a 90% market share – because it is simply a better product than alternatives such as Microsoft’s Bing search engine. Consumers are free to switch default settings with “a few easy clicks” and use other search engines if they please, Schmidtlein told the court on Tuesday.The justice department called its first witness, Google’s chief economist Hal Varian. Over the course of two hours, Dintzer presented Varian with internal memos and documents dating back to the 2000s that showed him discussing how search defaults could be strategically important. One internal communication from Varian warned over antitrust issues that “we should be careful about what we say in both public and private”.On Wednesday, the justice department called the former Google executive Chris Barton, who had worked in partnerships and was an employee from 2004 to 2011. The department questioned Barton about the value of those partnerships in establishing dominance over the market.“As we recognized the opportunity for search on mobile phones, we began to build a product team,” Barton said, according to Reuters.As with the first day of the trial, the government has tried to show that Google saw the importance early on of making deals and securing its position as the default search engine on devices. The documents and witnesses it has brought up have so far been from over a decade ago, when the government says Google was first beginning to forge agreements that helped it monopolize search.The justice department has also alleged that Google was aware of possible antitrust violations and has consciously tried to obscure its actions. The government presented a document in court from an internal Google presentation on antitrust, which warned employees to avoid mentioning “market share” or “dominance”.The trial is set to last 10 weeks and feature numerous witnesses, as well as internal Google documents that the justice department hopes will show that monopolizing search has long been a top priority at the company. Judge Amit Mehta will decide the case, and there is no jury in the trial. More