Cyber Firm Behind “Russian Hacking” Claims Has Ties To Soros-Supported Think Tank

Via Disobedient Media

The cyber firm Crowdstrike has been one of the main proponents of allegations that Russia interfered in the 2016 American presidential elections using their cyber capabilities. The analysis performed by Crowdstrike was relied on almost exclusively by the Democratic National Committee (DNC) to establish their claims of “Russian hacking.”

It has subsequently been revealed that Crowdstrike has in the past both misrepresented data in an attempt to frame the Russian government for cyber attacks and also failed to account for known capabilities of third parties which enable them to impersonate Russian hackers. The founder of Crowdstrike is also tied to the Atlantic Council, a think tank supported by George Soros which has been accused of accepting funds in exchange for support of favored policy positions as well as promoting disinformation and propaganda attacks against anti establishment figures.

I. Crowdstrike’s Claims Of Russian Hacking Cannot Be Independently Verified By Government Agencies, Ignore Known Attribution Techniques

On June 14, 2016, Crowdstrike published a study commissioned by the DNC, in which they accused the Russian government of breaching the DNC’s computer systems. The DNC’s choice to rely on Crowdstrike exclusively was incredibly controversial. CNN reported that the DNC actually refused to grant the FBI access to their servers despite the agency’s explicitly stating that they could conduct a satisfactory investigation if they were forced to rely on third party data. The report by Crowdstrike stood as one of the first definitive authorities which has found evidence of Russian cyber infiltration or electronic meddling in the 2016 elections. Rather than confirm the notion that Russia interfered in American elections, a number of other developments since Crowdstrike’s report have cast increasing doubt on their claims and in fact have suggested that they may be part of a widespread attempt to push disinformation for financial gain and benefit to the groups clients and affiliates.

Alarming indicators that Crowdstrike may have been promoting the idea of “Russian hacking” out of ulterior motives began to emerge almost immediately after their report was released. On July 28th, 2016, The Washington Post reported that Crowdstrike was one of a number of cyber security firms making a large profit thanks to widespread fears about Russian hackers. Beyond running a report which would satisfy the DNC, the drumming up of fear about Russian cyber menaces meant created a blatant potential conflict of interest for Crowdstrike.

Crowdstrike’s analysis also ignored known capabilities, since publicized by Wikileaks in their Day Zero and Marble releases from the Vault 7 series, which have proven the existence of cyber capabilities that allow programmers mask the identity of their malware and masquerade it as belonging to foreign intelligence agencies and mimic their online attack methods. They have also shown that many programmers have the ability to create an appearance of ‘false attribution’ which gives the impression that the malware was created by another country, even mimicking the native language of the host country they intend to attribute the attack to.

II. Crowdstrike Has Misrepresented Data In Order To Push Anti-Russian Narratives

On December 22nd, 2016, Crowdstrike ran another report, alleging that Russians hacked into a Ukrainian artillery app, resulting in heavy losses of howitzers in Ukraine’s civil war with Russian-backed separatists. The report was intended to buttress its claims of Russian hacking in the presidential election. The report was immediately contested by Yaroslav Sherstyuk, maker of the Ukrainian military app in question, who called the company’s report “delusional.” On March 23rd, 2017, Voice of America (VOA) ran a damning piece citing British think tank the International Institute for Strategic Studies (IISS), who stated that CrowdStrike erroneously used IISS data as proof of the intrusion. Furthermore, the IISS disavowed any connection to the CrowdStrike report. The Ukrainian Ministry of Defense also claimed that the combat losses and hacking never happened, meaning that Crowdstrike had apparently fabricated facts and details in the report completely.

Crowdstrike told VOA that they stood by their findings. But the next day VOA noted that Crowdstrike had altered their report, deleting key assertions they had made in the report about Ukrainian army losses, claims that a malware infection contributed to artillery losses and a link to IISS data which they had cited. The humiliating redactions apparently came after Crowdstrike had spoken with an IISS research associate for defense and military analysis. The apparent misrepresentation of data which had been intended to support Crowdstrike’s claims of Russian hacking creates serious questions about the merits of their claims that Russia was behind alleged hacks of the DNC’s computer systems earlier that year.

III. Crowdstrike Has Ties To The Soros-Supported Atlantic Council

Further investigation has revealed that Crowdstrike has deep ties to a think tank which has a history of pay to play practices and a track record of seeking to foment confrontation between the United States and Russia. Crowdstrike founder Dmitri Alperovitch acts as a Senior Fellow for the Atlantic Council. In February, Disobedient Media reported that the Atlantic Council has a troubling history of taking money from foreign special interest groups and government agencies in return for pushing propaganda to support various initiatives around the globe. The New York Times has named the Atlantic Council along with the  Brookings Institution and the Center for Strategic and International Studies as being think tanks which have made undisclosed “agreements” with foreign governments. The article denounced the Atlantic Council for having “opened a whole new window into an aspect of the influence-buying in Washington that has not previously been exposed.”

In May 2016, a report by the Associated Press identified the Atlantic Council as one of a number of think tanks which had received funding from the Ploughshares Fund, which was a major player in efforts to sell the Iranian nuclear deal to the American public. The Ploughshares Fund is financed by George Soros’ Open Society Foundation. The Atlantic Council consistently promotes hostile, anti-Russian rhetoric. The organization has also promoted unsourced and unfounded claims that Russia was responsible for “hacking” the 2016 U.S. presidential elections despite the fact that this conspiracy theory has been resoundingly debunked by various authorities in the intelligence community and by multiple media sources. The Atlantic Council, unfazed by the evidence that their claims of hacking were false, have continued to promote these falsehoods in the aftermath of the election in what appeared to be a possible effort to undermine American democratic institutions.

IV. Conclusion

The tight relationship between Crowdstrike and a think tank which also has a long track record of promoting unproven claims about Russian hacking, their failure to account for false attribution techniques commonly used by programmers to frame other countries for hacking attacks and their history of making factually untrue and misleading claims about Russian hacking creates concerns about their ability to objectively report on whether or not the DNC’s servers were breached by a foreign actor during the 2016 elections. Their association with the DNC comes at a time when the party has been attempting to craft a narrative of alleged Russian hacking to support their election bids in the upcoming 2018 U.S. midterm elections and delegitimize the victories of their political opponents in 2016.

The Atlantic Council’s past relationship with George Soros is also problematic given that Soros has deep financial ties to groups organizing resistance movements as part of an attempt to enact regime change in the United States. As former CIA Director Michael MorellJames Clapper and the Office of the Director of National Intelligence have all clearly stated that there is not, nor has ever been any evidence that Russian hacking affected any election results in the 2016 U.S. Presidential Elections, the efforts of Crowdstrike to promote claims to the contrary raises serious questions about their research as well as the intentions of the DNC in preventing neutral federal regulatory agencies from examining their servers firsthand to verify the claims.

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WTI/RBOB Tumble After Surprise Inventory Build Sends Crude Glut Back To Record High

Following last night's API-reported unexpected draw in crude, the energy complex was on a tear heading into the DOE data… but that ended quickly with a surprise build in crude and smaller than expeccted draws in gasoline and distillates. WTI/RBOB are notably lower on the data. Another rise in production further stressed markets.

 

API

  • Crude -1.8mm (-150k exp) – biggest draw since 2016
  • Cushing +1.3mm
  • Gasoline -2.6mm (-1.75mm exp)
  • Distillates -2mm

DOE

  • Crude +1.566mm (-150k exp)
  • Cushing +1.413mm
  • Gasoline  -618k (-1.975mm exp)
  • Distillates -536k

Product stocks have been falling consistently since the beginning of February, but the surprise crude buuld shocked markets after last night's API print

Cushing, Oklahoma, the pricing point for Nymex crude futures, saw a big build, putting stockpiles there over 69 million barrels for the first time.

 

Production rose once again…

 

WTI and RBOB prices were soaring into the print

Price increase is “partly the API and partly some supply disruptions as well,” says Hamza Khan, head of commodities strategy at ING. “You have to question how much of this rally is overdone, some of it could be short covering and the fundamentals haven’t changed that much”

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The Demonetization of YouTube is Fast Underway; Dissidents Will Be Silenced

It’s pretty obvious what Google is trying to do here. After the Wall Street Journal began routing out Nazis on YouTube, in an effort to get ads scrubbed from their videos, a massive overhaul of YouTube’s advertising policies began, shortly thereafter. It was incredible, really, as if Google was simply waiting for an excuse.

A number of major advertisers suspended their ad campaigns on YouTube, waiting for Google to get rid of its Nazis. Unlike other social media venues, YouTube is largely dominated by right of center, logic based, thinkers.

Obviously, this was a problem. Ergo, an effort to demonetize free thinkers is underway.

A manager for YouTube posted this kind note last week, warning creators that ad revenues will be fucked until they find the Nazis.

“If you’re seeing fluctuations in your revenue over the next few weeks, it may be because we’re fine tuning our ads systems to address these concerns,”

Nomura believes $GOOGL could lose $750m in revenue this year due to the new witch hunt.

Famous conservative personality, Paul Joseph Watson, posted a picture of his YouTube revenues, after the crackdown, and they’re virtually zero.

https://twitter.com/prisonplanet/status/849601362140725249

On iBankCoin’s channel, which only has around 3,000 subs, our revenues have flatlined as well.

YouTube said they’ve begun to hire 3rd party ‘brand safety’ organizations, who will help eliminate ‘bad actors’ from the platform. How nice.

I expect similar efforts will be made on the web that will take aim at independent media, taking away their financing and the incentive to create content.

Content originally published at iBankCoin.com

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Energy Sector; Bullish breakout taking place

Energy stocks have not been a good buy and hold investment for the past few years. Looking back over the past 5-years, XLE has lagged all of the S&P 500 sectors and it is the only S&P sector that has a negative 5-year return. Could this trend be ending? A couple of things have caught our eye of late, from a Power of the Pattern perspective.

This chart looks at the performance of Crude Oil, two energy ETF’s and the S&P 500, since 3/27. Not seen this kind of energy strength over the broad market in a good while.

XOP Crude OIH S&P comparison

CLICK ON CHART TO ENLARGE

Below looks at the XOP/SPY ratio over the past three years. This chart reflects that XOP has been much weaker than the S&P since 2014.2014.

XOP/SPY ratio

CLICK ON CHART TO ENLARGE

A year ago this ratio made a low and since then, it is attempting to create a series of higher lows and higher highs. The ratio hit rising channel support of late at (1) and it is now attempting to break above resistance of a bullish falling wedge at (2), which sends a bullish message to this sector.

The Power of the Pattern shared last week that a two-thirds chance of a bullish breakout was in play, see post HEREA week later, the breakout of the bullish falling wedge is taking place.

Full Disclosure- Premium & Sector Members are long this sector.

 

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The “Soft Data” Euphoria Is Over: Non-Manufacturing ISM Slides To Pre-Election Lows

Stick a fork in the soft-data decoupling.

Moments after PMI reported the worst Service PMI since September, the Non-manufacturing ISM also missed, with the headline number dropping from 57.6 to 55.2, the lowest since October, or before the Trump election.

There were declines in three of four key components as business activity and new orders dropped, but most notable was the slide in the Employment sub-index which barely avoided contraction, sliding from 55.2 to only 51.6, the lowest since August, and refuting the post-ADP euphoria. Furthermore, a signal that the reflation trade is also over, the Prices Paid index tumbled by the most in 4 years.

  • Business activity fell to 58.9 vs 63.6 prior month
  • New orders fell to 58.9 vs 61.2
  • Employment fell to 51.6 vs 55.2
  • Inventory change fell to 48.5 vs 52.0
  • Prices paid fell to 53.5 vs 57.7
  • Backlog of orders fell to 53.0 vs 54

The rising subcomponents:

  • Supplier deliveries rose to 51.5 vs 50.5
  • Imports rose to 56.5 vs 51.0
  • New export orders rose to 62.5 vs 57.0
  • Inventory sentiment rose to 65.0 vs 64.5

According to the ISM, the non-mfg sector continues to reflect growth; however, the rate of growth has declined since last month. The majority of respondents’ comments indicate a positive outlook on business conditions and the overall economy. There were several comments about the uncertainty of future government policies on health care, trade and immigration, and the potential impact on business.

The full breakdown:

Despite the weakest growth in half a year, the respondents remained generally optimistic.

  • “Growth on [a] number of projects has slowed a little, but revenue projections are steady.” (Construction)
  • “The details of the revisions to the Obamacare program are of great interest to us. There is a large amount of future uncertainty with what will happen. Meanwhile, the business continues.” (Finance & Insurance)
  • “Health care changes can affect our business. Uncertainty is making us hold on many projects.” (Health Care & Social Assistance)
  • “Market conditions are still favorable with animal proteins due to [the] strong dollar, low exports and [an] abundant supply. Unknown [are] the POTUS’ policies going forward on trade and immigration.
  • “Worker shortages have become a real problem in food production and produce growing areas.” (Accommodation & Food Services)
  • “Business is picking up. Service labor is tight. New legislation has had significant impact.” (Public Administration)
  • “Overall, business conditions are favorable, and the outlook is positive.” (Retail Trade)
  • “Continued optimism regarding the domestic business environment.” (Management of Companies & Support Services)
  • “First quarter has been brisk, and March has been as busy as I [have] ever seen, with many new endeavors.” (Utilities)

Meanwhile, stocks having risen on the recent surge in soft data, are for the time being oblivious to the inflection point, and both the S&P and Dow are trading near session highs, and on pace to regain all time highs.

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So Brave: This High School Replaced the Mirrors in the Girls’ Bathroom with ‘You Are Beautiful’ Signs

MirrorNo, it’s not a headline from Clickhole. Laguna Hills High School in California really did take down the mirrors in the girls’ bathroom and replace them with affirming messages like “you are beautiful” and “you’re doing better than you think!”

“The signs have helped people remember that everyone is beautiful, everyone is important, everyone is good enough and everyone should be treated equally,” 17-year-old Sabrina Astle, the student behind the signs, told ABC News. “I did this because I am passionate about the fact that everyone is important and everyone needs to be cared for.”

True and meaningful sentiments, to be sure. But a school administrator notes that there are no immediate plans to put the mirrors back up, which seems likely to produce difficulties.

“Mirrors have a pretty utilitarian purpose aside from vanity,” writes Townhall‘s Christine Rousselle.

Cosmopolitan‘s Elizabeth Narins loves the stunt, writing, “It’s proof that everyone can benefit from a mood boost — and it’s more likely to come from confidence than anything you’d see in a mirror.”

It’s important to build teenagers’ confidence levels and take their minds off distractions. We want young people studying hard and preparing for their futures, not fretting at their image in the mirror all day. And some kids need extra help in that regard—particularly young women who struggle with body issues. That’s all true.

But there’s a difference between being positive and avoiding reality entirely. Sometimes we do need to look at ourselves in the mirror, both literally and figuratively. And while many people—including many school administrators—have advanced the notion that teen depression and bullying rates are higher than ever, this seems to fly in the face of the actual data. Indeed, as I wrote several years ago for The Daily Caller News Foundation, some experts actually think teens are too confident: they evaluate themselves as above average in every category, though they study less often than their predecessors. They get higher grades anyway, due to grade inflation, and come away from school convinced of their own special excellence.

Then they move on to college, expecting to receive the same mix of affirmation and coddling to which they have grown accustomed. And we wonder about the educational environment that produced the Yale University students who screamed at Nicholas Christakis about his obligation to shelter them from offensive Halloween costumes.

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Soft Data Rolls Over: PMI Reveals Weakest Business Activity Growth In Six Month

The “soft”, i.e., survey data, rollover accelerated this morning, when Markit reported that in March the Service PMI posted a second consecutive decline, dropping from 53.8 to 52.8, missing expectations of a 53.1 print. This was the lowest reading since September 2016. 

New Business falls to 51.7 vs 53.6 in Feb, and was the lowest reading since March 2016. Additionally, the Outstanding Business index also fell vs last month.  Latest data showed input costs rising at a solid rate, although a desire to strengthen profitability meant higher costs were passed onto clients wherever possible, according to Markit.

According to Markit’s Chris Williamson “the March PMI numbers add to the picture of a relatively modest opening quarter to 2017 for the US economy. The surveys of manufacturing and services are running at levels consistent with GDP expanding by 1.7% in the first quarter.

Growth of business activity appears to have peaked in January, sliding to a six-month low in March. The loss of momentum is linked to weaker inflows of new work, with the surveys providing some evidence that demand is being dented in part by higher prices.”

 

“However, business confidence, although up on February, has failed to regain the levels seen at the start of the year, suggesting a less ebullient mood has developed among companies than seen in the immediate aftermath of the presidential election”

This lower degree of business optimism has translated into weaker hiring, with the March surveys indicating the smallest net gain in private sector employment since last October, continuing the trend of baffle with BS, and refuting this morning’s stellar ADP report.

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The Other Side of Legalized Theft: New at Reason

Civil forfeiture lets the government confiscate property allegedly linked to crime without bringing charges against the owner. Since law enforcement agencies receive most or all of the proceeds from the forfeitures they initiate, they have a strong financial incentive to loot first and ask questions never. A new report from the Justice Department’s Office of the Inspector General (OIG) highlights the potential for abuse.

Between fiscal years 2007 and 2016, the OIG found, the Drug Enforcement Administration (DEA) took $4.2 billion in cash, more than 80 percent of it through administrative forfeitures, meaning there was no judicial oversight because the owners did not challenge the seizures in court. Although the DEA would argue that the lack of challenges proves the owners were guilty, that is not true, as Jacob Sullum explains. The process for recovering seized property is daunting, complicated, time-consuming, and expensive, often costing more than the property is worth.

View this article.

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2 Charts Show How Close The U.S. Is To Healthcare Collapse

Submitted by Patrick Watson of Mauldin Economics

The first step to solving a problem is admitting you have one. Some of us are in denial, so here’s a hard fact: We Americans spend far more money on health care than any other developed nation, but we’re no healthier.

We’re even less healthy overall.

The chart below shows the bad news. The horizontal axis is years of life expectancy. The vertical axis is per capita healthcare spending. Ideally, you want to be in the lower right quadrant. That means your population has a relatively high life expectancy and relatively low healthcare spending.

France, Japan, Spain, Chile, and a bunch of others are clustered in that area. Their money buys more health than ours does.

The United States is in the upper right, which shows that our per-person healthcare spending is significantly higher than that of the other OECD countries. Switzerland is a distant second place. Our extra spending doesn’t help us live longer. We actually die a little earlier than our peers in Japan and most of Europe.

You can quibble over details in this data, but the broad facts are inescapable. We spend too much on healthcare relative to the health it buys us. As long as that is the case, no reform plan will work.

Did Obamacare cause this? No. It goes way back. Here’s another graphic showing the changes over time.

You can see that the United States began diverging from other developed countries back in the 1980s. The gap has only grown wider since then.

Stranger yet, we spend all this extra money yet still leave millions of low-income citizens with little or no access to healthcare. Kaiser Family Foundation says some 2.5 million working Americans make too much to qualify for Medicaid, but not enough to receive Obamacare tax credits.

Brace Yourself for the Death Spiral

I showed you that data to say this: Simply returning to pre-Obamacare conditions won’t solve the problem. Obamacare exists because the system wasn’t working and we needed something better.

Before 2014, people with preexisting conditions were simply out of luck. They couldn’t buy health insurance at any price, unless their employers offered group health, which many didn’t. This was hurting both those people and the economy at large.

Obamacare, for all its flaws, at least tried to solve the problem. It helped some people but hurt others—and now it’s reached its limits. Insurance works only if the risk pool includes enough low-spending people to offset those with expensive claims. That’s Obamacare’s core problem. The legal mandate to buy insurance hasn’t brought enough young and healthy people into the pool.

This is the “death spiral” you hear about. People with serious illnesses will buy insurance no matter what it costs. This drives up claim ratios, which then drives premiums yet higher and discourages young and healthy people from buying.

That can’t work indefinitely.

 

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