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    US treasury hacked by foreign government group – report

    Hackers backed by a foreign government have been monitoring internal email traffic at the US treasury department and an agency that decides internet and telecommunications policy, according to people familiar with the matter.“The United States government is aware of these reports and we are taking all necessary steps to identify and remedy any possible issues related to this situation,” said national security council spokesman John Ullyot.There is concern within the US intelligence community that the hackers who targeted the treasury department and the commerce department’s national telecommunications and information administration used a similar tool to break into other government agencies, according to three people briefed on the matter. The people did not say which other agencies.The hack is so serious it led to a national security council meeting at the White House on Saturday, said one of the people familiar with the matter.The hack involves the NTIA’s office software, Microsoft’s Office 365. Staff emails at the agency were monitored by the hackers for months, sources said.A Microsoft spokesperson did not immediately respond to a request for comment.The hackers are “highly sophisticated” and have been able to trick the Microsoft platform’s authentication controls, according to a person familiar with the incident, who spoke on condition of anonymity because they were not allowed to speak to the press.“This is a nation state,” said a different person briefed on the matter. “We just don’t know which one yet.“The full scope of the hack is unclear. The investigation is still in its early stages and involves a range of federal agencies, including the FBI, according to the three people familiar with the matter.The FBI, homeland security department’s cybersecurity division, known as CISA, and US national security agency did not immediately respond to a request for comment. More

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    Facebook faces antitrust allegations over deals for Instagram and WhatsApp

    Facebook is expecting significant new legal challenges, as the US Federal Trade Commission and a coalition of attorney generals from up to 40 states are preparing antitrust suits.
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    Although the specific charges in both cases remain unclear, the antitrust allegations are expected to center on the tech giant’s acquisition of two big apps: a $1bn deal to buy the photo-sharing app Instagram in 2012, and the $19bn purchase of the global messaging service WhatsApp in 2014. Together, the buys brought the top four social media companies worldwide under Facebook’s control. The purchases would constitute antitrust violations if Facebook believed the companies were viable competitors.
    At the time of its acquisition, Instagram had 30 million users, and, even though it was growing rapidly, it wasn’t yet making money. WhatsApp boasted more than 450 million monthly active users when it was acquired. “WhatsApp is on a path to connect 1 billion people,” Zuckerberg said in a statement at the time.
    The FTC cleared Facebook for the acquisitions when they occurred, and the company is hoping to leverage those approvals in mounting a defense. Facebook executives have also argued their company has helped the apps grow.
    But Facebook has come under greater scrutiny since the deals were done, and the FTC launched a new investigation into the potential antitrust violations in 2019.
    The FTC probe will build on findings from a separate inquiry conducted by the US House Judiciary subcommittee, which released millions of documents that appeared to show that Facebook executives, including CEO Mark Zuckerberg, were concerned the apps could become competition, before aggressively pursuing them.
    In one 2012 email, made public through the House investigation, Zuckerberg highlighted how Instagram had an edge on mobile, an area where Facebook was falling behind. In another, the CEO said Instagram could hurt Facebook even if it doesn’t become huge. “The businesses are nascent but the networks are established, the brands are already meaningful and if they grow to a large scale they could be disruptive to us,” Zuckerberg wrote. Instagram’s co-founder also fretted that his company might be targeted for destruction by Zuckerberg if he refused the deal.
    The FTC is expected to vote on a possible suit this week. Three of the five-member commission are believed to be in favor of the move, including chair Joseph Simons, who is expected to leave the agency before the new Biden administration is sworn in, Politico reported.
    Commissioners also have to decide where to file the suit: in federal court, which would leave the outcome to a judge; or in the FTC, where the commission could ultimately decide.
    The suit expected from the bipartisan coalition of states is headed by New York attorney general Letitia James. While details of their complaint are also scant, several states’ top law enforcement offices launched probes into Facebook’s acquisitions last year, adding to the pressure put on the company by federal regulators.
    Facebook did not respond to a request for comment.
    Facebook’s possible legal challenges come as a growing number of US lawmakers are arguing that companies including Amazon, Google, Facebook and Apple have amassed too much power and should be reined in.
    These companies “wield their dominance in ways that erode entrepreneurship, degrade Americans’ privacy online, and undermine the vibrancy of the free and diverse press”, the House judiciary committee concluded in its nearly 500-page report.
    “The result is less innovation, fewer choices for consumers, and a weakened democracy.”
    President-elect Joe Biden, too, has been critical of the tech companies. “Many technology giants and their executives have not only abused their power, but misled the American people, damaged our democracy and evaded any form of responsibility,” said Biden spokesperson Matt Hill to the New York Times. “That ends with a President Biden.”
    In May, Facebook took over Giphy, a hugely popular moving-image app, with plans to integrate it with Instagram. Late last month, the company also announced plans to acquire Kustomer, an e-commerce app.
    “This deal is about providing more choices and better products for consumers,” a company spokesman said in a statement to the New York Times. “The key to Facebook’s success has always been innovation, with M&A being just a part of our overall business strategy, and we will continue to demonstrate to regulators that competition in the technology sector is vibrant.” More

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    Has political consensus become a pipe dream? | Letters

    Perhaps the liberal democratic managed capitalism desired by Martin Kettle did exist in the 1950s, including the new welfare state in the UK (The toxic polarisation of our politics can be reversed, but it will take humility, 26 November). It didn’t prove robust – the Conservatives moved to the right and embraced free-market capitalism; regulation exists but is weak and largely captured by “experts” from the relevant market sectors.It is difficult to see how the idealised consensus can be created today, especially within one state. Multinational companies moving activities to poorly regulated locations and tax havens means that regulation must be multinational. The EU is attempting to regulate and tax tech and online firms, cooperation with which the UK has abandoned. The replacement of Donald Trump by Joe Biden doesn’t mean that economic nationalism will go out of fashion.Kettle is right that respect for the truth is indispensable. The problem is that honest conservatism has gone and, internationally, the right has adopted untruth as a weapon. This approach will continue as it has proved successful. Trump has lost the election, but the size of his vote and support for his untruths demonstrate just how successful.Talking – and listening – to each other in a truthful and respectful way is a good thing, but it needs that approach from all parts of the political spectrum. Kettle implies that such consensus-seeking would inhibit the left from offering radical solutions to our problems, because that may destroy any consensus. Is that how democracy works?Doug SimpsonTodmorden, West Yorkshire• Martin Kettle rightly highlights polarisation and the growth of the “I” society since the 1960s. Surely it is no coincidence that this coincided with a digital revolution that changed all our lives? Last year, I revisited California 50 years after doing an MBA at Stanford University. The wealthiest state in the world has failed to solve homelessness in the streets or congestion on the roads. Black people have been displaced by escalating house prices.All the talking and listening in the world will be of little value unless governments get control of the land and finance needed to build a fairer society. We should be using technology to map inequalities and invest in bridging the gaps rather than consoling ourselves with webinars and games.Dr Nicholas FalkExecutive director, The Urbed Trust• It is possible to share Martin Kettle’s hope for a less divided America without romanticising the 1950s. One need only recall those who left for Europe when “cooperation” was not shown to their differing political beliefs. The 50s also saw the enlargement of the attorney general’s list of subversive organisations. A loyalty oath was required by anyone wishing to enter a graduate programme or benefit from a scholarship, and the House Committee on Un-American Activities destroyed careers. Dwight Eisenhower was no Donald Trump, but neither was he a hero to those not in the political mainstream.Susan ZagorLondon• On reading how Labour’s general secretary has banned local parties from discussing the loss of the whip from Jeremy Corbyn (Report, 27 November), I was reminded of how Joseph Stalin tried to make Leon Trotsky a non-person in Russia. It is marvellous where the party leadership takes its inspiration from.Terry WardWickford, Essex More

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    If you think Biden's administration would rein in big tech, think again | John Naughton

    Before the US presidential election I wondered aloud if Mark Zuckerberg had concluded that the re-election of Trump might be better for Facebook than a Biden victory. There were several reasons for thinking this. One was the strange way Zuckerberg appeared to be sucking up to Trump: at least one private dinner in the White House; the way he jumped on to Fox News when Twitter first placed a warning on a Trump tweet to say that Facebook would not be doing stuff like that; and the majority report of the House subcommittee on tech monopolies, in which it was clear that the Democrats had it in for the companies.But the most significant piece of evidence for the belief that a Biden administration would finally tackle the tech giants, and Facebook in particular, came in the long interview Biden gave last January to the New York Times, in which he was highly critical of the company.“I’ve never been a big Zuckerberg fan,” Biden said. “I think he’s a real problem … I’ve been in the view that not only should we be worrying about the concentration of power, we should be worried about the lack of privacy and them being exempt, which you’re not exempt. [The New York Times] can’t write something you know to be false and be exempt from being sued. But he can. The idea that it’s a tech company is that Section 230 should be revoked, immediately should be revoked, number one. For Zuckerberg and other platforms.” As readers of this column know only too well, section 230 of the 1996 US Telecommunications Act is the clause that exempts tech platforms from legal liability for anything that users post on their platforms. It’s the nearest thing social media has to a kill switch. Pull it and their business models evaporate. Trump had been threatening to pull it before the election, but he lacked the attention span to be able to do anything about it. Biden, on the other hand, had already talked about it in January and would have people around him who knew what they were doing. So maybe we were going to get some real progress in getting tech giants under control.And then he gets elected and what do we find? Biden’s transition eam is packed with tech industry insiders. Tom Sullivan, from Amazon, is earmarked for the Department of State. Mark Schwartz, also from Amazon, is heading for the Office of Management and Budget, as are Divya Kumaraiah from Airbnb and Brandon Belford from Lyft, the ride-hailing company. The US Treasury gets Nicole Isaac from LinkedIn, Microsoft’s department of spam, and Will Fields, who was Sidewalk Labs’ senior development associate. (Sidewalk Labs was the organiser of Google’s attempt – eventually cancelled – to turn Toronto’s waterfront into a data-geyser for surveillance capitalism.) The Environmental Protection Agency, a body that Trump looted and sidelined, gets Ann Dunkin, who is Dell’s chief technology officer. And so on.Well, I thought, perusing this sordid list, at least there’s nobody from Facebook on it. How innocent can you be? Politico reveals that the joint chair of Biden’s transition team, Jeff Zients, is a former Facebook board member. Another former board member is an adviser. And two others, one who was a Facebook director and another who was a company lobbyist, have, according to Politico “taken leadership roles”. And then, to cap it all, it turns out that Biden himself has a friendly relationship with a guy called Nick Clegg, who was once a serious politician and now doubles as Mark Zuckerberg’s bagman and representative on Earth.Truly, you couldn’t make this up. And just to add a touch of satire to it, the woman who is now a heartbeat away from the presidency, Kamala Harris, has a career-long record of cosying up to Silicon Valley. She participated, for example, in the marketing campaign for Lean In, Sheryl Sandberg’s anthem of capitalist feminism, even though at the time Harris was California’s law enforcement official most responsible for overseeing Facebook. As the state’s attorney general, she took a semi-comatose view of the way the big tech companies were allowed to gobble up potential rivals and bulldoze their way into new industries. Facebook’s controversial acquisitions of WhatsApp and Instagram, perhaps the most obvious anti-competitive mergers in the short history of the tech industry, happened on her watch and triggered no regulatory reflex. If Silicon Valley could be said to have a darling, then Ms Harris is it. And all those campaign donations from tech companies and moguls may turn out to have been a shrewd investment after all.Given these sobering circumstances, how should we calculate the odds of a Biden administration taking on the power of the tech giants? The answer: slightly better than those of a snowball staying cool in hell. But only slightly.What I’ve been readingIs 2020 just a taster?Graeme Wood has written a riveting essay, titled The Next Decade Could Be Even Worse, on the work of Peter Turchin, a quantitative historian who believes he has discovered iron laws that predict the rise and fall of societies.Birth of an iNationWhat if we viewed tech giants as countries? A thoughtful essay in Tortoise Media considers Apple as a one-party state as secretive as China. But more liberal. Phew!Is less Moore?I enjoyed a lovely post by Venkatesh Rao on the Ribbonfarm blog, about the mindset induced by living in a world governed by Moore’s Law. More

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    The Rise of the Digital Émigré

    The French word “émigré” specifically refers to people who leave their home country for political reasons, a self-exile of sorts. In that sense, it’s a very different term from “immigrant,” “expat” or “nomad.” In history, émigrés have fled abroad to escape from revolutions in France, the United States and Russia. Many aristocrats escaped war-torn European countries amid the chaos of the Second World War. In the early 1920s, cities such as Shanghai and Paris were havens for émigré communities. Now, a century later, political changes have created a new wave of émigrés. I call them digital émigrés.

    For example, 2020 has brought an unprecedented rise in American citizens leaving the United States to seek new lives abroad. In fact, the number of Americans who gave up their US citizenship skyrocketed to 5,816 in the first half of 2020, compared with 2,072 in all of 2019, according to research from New York-based Bambridge Accountants. 

    Fintech: Embracing the Digital Age in the Time of Social Distancing

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    This trend has been accelerated not only by America’s poor handling of the pandemic, but also the rise of Trumpism and more generalized far-right political attitudes, plus uncertainty about health care and worries about newly emboldened militia groups across the country. Those who leave may include parents looking for safer countries to bring up their children or members of marginalized groups worried about the rise in racist political ideologies.

    Across the Atlantic, a similar dynamic is happening in the UK. Brexit has been a massive push factor for British digital émigrés. The number of British citizens moving permanently to European Union countries rose by 30% since the 2016 referendum. According to research, half of this number decided to leave within three months of the original vote. By now, some will already be almost eligible for citizenship in their destination country, which in some cases takes a minimum of five years.  

    Other Brits fled at the last minute, during the transition period of 2020, while their EU rights were still valid. At the time of writing, some are still planning an escape before the end of 2020. There has also been a 500% increase in British citizens who have taken up citizenship of one of the 27 EU countries. This is a predictable response to the actions of a UK government forcibly removing people’s long-held rights.

    These trends in both the UK and US indicate that people are no longer prepared to tolerate the consequences of damaging political decisions. In the past, it was harder to uproot one’s life and leave for another country. For starters, international moves require having a source of income, which can be challenging to find when you don’t speak the language, don’t have connections and aren’t familiar with the local culture.

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    Fortunately for 21st-century digital émigrés, the rise in remote working, and particularly in doing business online across borders, has provided the necessary freedom to make rapid international relocations. What’s more, the pandemic has boosted this trend by further legitimizing online working, compelling more employers to accept it as the norm. Countries needing immigration have seen the remote working trend as a golden opportunity to attract skilled professionals to their shores. A number of countries, including Estonia and Bermuda, have introduced digital–nomad visas. Others, such as Portugal and the Czech Republic, have special pathways to residency for foreigners who generate income from outside the country.

    In the case of Portugal and, more recently, Greece, generous tax breaks are available for those who make money online. For those countries, the beauty of the setup is that the foreigners’ money can help revitalize the local economy without taking jobs on the ground away from citizens.

    Indeed, the digital émigré trend is gaining such momentum that governments are beginning to take notice. If a large number of educated and skilled citizens leave their country permanently, taking their tax money with them, it could have severe implications for that country’s economy. Perhaps governments should keep this more firmly in mind when they decide to enact policies that deprive people of important rights, such as the freedom to live, work, study and retire across European Union countries. 

    Governments should tread carefully in this “digital first” world, where borderless working is rapidly becoming the norm. Remote working and online business empower digital émigrés to vote with their feet. These highly educated and skilled professionals can easily relocate their entire lives to destinations that more closely match their values, goals and lifestyle choices.

    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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    Twitter and Facebook CEOs testify on alleged anti-conservative bias

    The chief executive officers of Twitter and Facebook took the stand on Tuesday to testify, again, about allegations of anti-conservative bias on their platforms.
    Mark Zuckerberg and Jack Dorsey were subpoenaed in October to appear at Tuesday’s hearing with the Senate judiciary committee in order to “review the companies’ handling of the 2020 election”.
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    Republican lawmakers frequently allege – without evidence – censorship of conservative views, but this particular hearing was called in response to the companies’ handling of a New York Post article about Joe Biden.
    When the story was published in October, Twitter took unprecedented steps to limit its circulation, blocking users from posting links or photos of the report. At the time, Twitter said the measures were taken due to “the origins of the materials” included in the article, which were allegedly pulled from a computer that had been left by Hunter Biden at a Delaware computer repair shop in April 2019. Twitter policies prohibit “directly distribut[ing] content obtained through hacking that contains private information”.
    The company later walked back on its response, tweeting that the communication around the actions on the article “was not great”. It also changed its hacked materials policies in response to the outcry. Facebook took a less aggressive stance, placing some limitations on the article due to questions about its validity.
    In his opening statement, Dorsey explained again the company took action against the New York Post tweet due to “the origins of the materials” included in the article and said that Twitter upon further review decided that action was wrong. “I hope this illustrates the rationale behind our actions and demonstrates our ability to take feedback,” Dorsey said. “Mistakes and changes were all transparent to the public.” More

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    Facial Recognition and the Convenience of Injustice

    Some people are concerned that the latest generation of powerful technology tools now being developed and deployed may undermine important features of civilized societies and human life itself. Notably, Elon Musk is so worried about the danger of artificial intelligence (AI) that he invested in accelerating its development.

    Musk has voiced his concern while simultaneously expressing the hope that if good, stable and responsible people such as Elon himself develop AI before the evil people out there get their hands on it, his company SpaceX will succeed in moving the human race to Mars before AI’s quest to enslave humanity is complete. Fearing people may not make it to Mars in time, Musk launched Neuralink, a company that promises to turn people into cyborgs. Its technology, implanted in people’s brains, will presumably put a transformed race on the same level as AI and therefore allow it to resist AI’s conquistadors.

    Although this story of the race to the future by opposing forces of good and evil may sound like the plot of a sci-fi comic book, Musk has on various occasions said things that actually do resemble that scenario. In the meantime, AI is being put to use in numerous domains, theoretically with the idea of solving specific problems but, more realistically, according to the time-honored laws of consumer society as a response to the perennial pursuit of convenience.

    In the quest for convenience, one of the tasks people have assigned to AI is facial recognition. Apparently, it has now become very good at using the image of a face to identify individuals. It may even perform better than Lady Gaga in the knotty problem of distinguishing Isla Fisher from Amy Adams.

    Facial Recognition Technology and the Future of Policing

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    Law enforcement in the US has demonstrated its interest in the added productivity facial recognition promises. Like everyone else, the police like to know who they are talking to as well as who they should go out and arrest. The problem is that they sometimes arrest and incarcerate people that AI’s facial recognition has mistakenly identified. The accuracy of the existing tools diminishes radically with non-Caucasian faces. That means more wrongful arrests and indictments for black suspects.

    The New York Times makes a timid attempt to delve into this ethical issue in an article that bears the somewhat tendentious title, “A Case for Facial Recognition.” The article sums up the case in the following terms: “The balancing act that Detroit and other U.S. cities have struggled with is whether and how to use facial recognition technology that many law enforcement officials say is critical for ensuring public safety, but that tends to have few accuracy requirements and is prone to misuse.”

    Here is today’s Daily Devil’s Dictionary definition:

    Critical (for):

    A deliberately imprecise term used to evaluate the importance of an act that exists on a sliding scale between absolutely essential and probably useful, making it a convenient way of creating the belief that something is more important than it really is.

    Contextual Note

    The adjective “critical” derives from the Latin word “criticus” and relates to the idea of “crisis.” It came into the English language in the mid-16th century with the meaning “relating to the crisis of a disease.” When The Times article tells us that “many law enforcement officers” say facial recognition “is critical for ensuring public safety,” we need to realize that those officers are not referring to a crisis but to their own convenience. Facial recognition can, of course, produce a crisis when it misidentifies a suspect. But the crisis is for the suspect, not for the police.

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    The expression “critical for” has come to signify “really important in my view,” a very subjective appreciation in contrast to the far more factual sounding “crucial,” which comes from the idea of the “crux” or the core of a problem. The article underlines this question of subjectivity when it reports that a black officer it quotes “still believed that, with oversight, law enforcement would be better off using facial recognition software than not.” “Better off” is not quite the same thing as “critical.”

    But let’s take a closer look at the claim that “law enforcement would be better off.” How do we parse the subject, “law enforcement,” in this sentence? The term “law enforcement” can be an abstract noun meaning the official function of monitoring behavior in a community to ensure optimal compliance with laws. This appears in sentences such as “one of government’s responsibilities is to provide the community with the means of law enforcement.”

    But law enforcement can also refer to the police themselves, the officials who are empowered to apprehend and deliver to the judicial system those who are suspected of infringing the laws. Which one is “better off” thanks to facial recognition? In the first case, abstract law enforcement — we are speaking of the safety of the community. “Better off” would then mean more optimally and more fairly conducted. In the second it is the men and women doing the job. For them “better off” basically means improved convenience.

    So which one is the article’s author, Shira Ovide, referring to? Clearly, the following explanation indicates that for her, law enforcement refers to the police and not to the needs of the community. “That’s the position of facial recognition proponents: That the technology’s success in helping to solve cases makes up for its flaws, and that appropriate guardrails can make a difference.” It’s all about the job of “helping to solve cases.” Ovide is a technology specialist at The Times, which might explain her focus on convenience rather than the ethics of policing.

    What Ovide says is superficially true, but the same logic could be applied to slaveholding. If we admit the argument that slavery helped to boost agricultural production — which of course it did — we could point out that the boost it provides makes up for its flaws. That was how slaveholders reasoned. The crucial difference — rather than critical — lies in examining the nature and the impact of those flaws. After all, slaveowners also thought about “appropriate guardrails.” They simply called them “slave patrols.”

    This is where, for Ovide, bureaucracy comes to the rescue of the logic of convenience and reveals the underlying logic of modern law enforcement: “The new guidelines limited the Police Department’s use of facial recognition software to more serious crimes, required multiple approvals to use the software and mandated reports to a civilian oversight board on how often facial recognition software was used.”

    The article ends on a slightly ambiguous note but fails to go into any depth on the moral question and its civic consequences. It seems to endorse the idea that with the right procedures, the gain in efficiency is worth the random damage it will produce.

    Historical Note

    The above reference to slave patrols may sound exaggerated, but it is not trivial. As Chelsea Hansen at the Law Enforcement Museum points out, slave patrols were “an early form of American policing.” The strategies and organizational principles that grew out of slave patrols influenced the evolution of policing in the United States. Race has always been a major, but usually unacknowledged feature of American law enforcement culture.

    The late anthropologist David Graeber put it brutally when he noted that the criminal justice system in the US “perceives a large part of that city’s population not as citizens to be protected, but as potential targets for what can only be described as a shake-down operation designed to wring money out of the poorest and most vulnerable by any means they could.” Mass incarceration has, among other things, enabled a modern form of slave labor.

    In other words, there is a vast historical and cultural problem the US needs to solve. That is precisely what’s behind the idea formulated as “defund the police.” The slogan itself is misleading. What it really means is “rethink the police.” But asking Americans to rethink any problem appears to be beyond their capacity. It’s always easier just to point to one simple practical task, like defunding.

    The debate about face recognition in policing should not focus on the tasks of police officers and the convenience it affords them but on the relationship between law enforcement and the community. But that would ultimately require weaning the consumer culture of its addiction to the idea of convenience.

    *[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