Tag Archives: George Soros

Apr 15 2022

Elon Musk Makes a Massive Proposal, Offers to Purchase Twitter for $41 Billion With Plan to Take Company Private


Posted originally on the conservative tree house on April 14, 2022 | sundance

April 14, 2022 | sundance | 553 Comments

The richest man in the world, Tesla CEO Elon Musk, made an offer to purchase the Twitter platform for a price of $41 billion.  The offer represents a value of 38% more than the current evaluation.  [SEC FILING HERE]  The offer is filed with the US Securities and Exchange Commission proposing a full takeover for $54.20 per share in cash.

Within the filing Elon Musk states his intentions:

“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy.  However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.

As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder. Twitter has extraordinary potential.  I will unlock it. (SEC LINK)

What Elon Musk appears to be doing is perhaps the biggest story that few understand.

I share this perspective having spent thousands of hours in the past several years deep in the weeds of tech operating systems, communication platforms, and the issue of simultaneous users.   What Twitter represents, and what Musk is attempting, is not what most would think.

In the big picture of tech platforms, Twitter, as an operating model, is a massive high-user commenting system.

Twitter is not a platform built around a website; Twitter is a platform for comments and discussion that operates in the sphere of social media.  As a consequence, the technology and data processing required to operate the platform does not have an economy of scale.

There is no business model where Twitter is financially viable to operate…. UNLESS the tech architecture under the platform was subsidized.

In my opinion, there is only one technological system and entity that could possibly underwrite the cost of Twitter to operate.  That entity is the United States Government, and here’s why.

Unlike websites and other social media, Twitter is unique in that it only represents a platform for user engagement and discussion.  There is no content other than commentary, discussion and the sharing of information – such as linking to other information, pictures, graphics, videos url links etc.

In essence, Twitter is like the commenting system on the CTH website.  It is the global commenting system for users to share information and debate.  It is, in some ways, like the public square of global discussion.   However, the key point is that user engagement on the platform creates a massive amount of data demand.

Within the systems of technology for public (user engagement) commenting, there is no economy of scale.  Each added user represents an increased cost to the operation of the platform, because each user engagement demands database performance to respond to the simultaneous users on the platform.  The term “simultaneous users” is critical to understand because that drives the cost.

According to the Wall Street Journal, Twitter has approximately 217 million registered daily users, and their goal is to expand to 315 million users by the end of 2023.   Let me explain why things are not what they seem.

When people, users, operate on a tech platform using the engagement features, writing comments, hitting likes, posting images, links etc, the user is sending a data request to the platforms servers.  The servers must then respond allowing all simultaneous users to see the change triggered by the single user.

Example: when you hit the “like” button feature on an engagement system, the response (like increasing by one) must not only be visible to you, but must also be visible to those simultaneously looking at the action you took.   If 100,000 simultaneous users are looking at the same thing, the database must deliver the response to 100,000 people.  As a result, the number of simultaneous users on a user engagement platform drives massive performance costs.  In the example above, a single action by one person requires the server to respond to 100,000 simultaneous users with the updated data.

As a consequence, when a commenting platform increases in users, the cost not only increases because of that one user, the cost increases because the servers need to respond to all the simultaneous users.   Using CTH as an example, 10,000 to 15,000 simultaneous commenting system users, engaging with the servers, costs around $4,500/mo.

This is why most websites, even big media websites, do not have proprietary user engagement, i.e. commenting systems.  Instead, most websites use third party providers like Disqus who run the commenting systems on their own servers.  Their commenting systems are plugged in to the website; that defers the cost from the website operator, and the third party can function as a business by selling ads and controlling the user experience.  [It also sucks because user privacy is non existent]

The key to understanding the Twitter dynamic is to see the difference between, (a) running a website, where it doesn’t really matter how many people come to look at the content (low server costs), and (b) running a user engagement system, where the costs to accommodate the data processing -which increase exponentially with a higher number of simultaneous users- are extremely expensive.   Twitter’s entire platform is based on the latter.

There is no economy of scale in any simultaneous user engagement system.  Every added user costs exponentially more in data-processing demand, because every user needs a response, and every simultaneous user (follower) requires the same simultaneous response.  A Twitter user with 100 followers (simultaneously logged in) that takes an action – costs less than a Twitter user with 100,000 followers (simultaneously logged in), that takes an action.

If you understand the cost increases in the data demand for simultaneous users, you can see the business model for Twitter is non-existent.

Bottom line, more users means it costs Twitter more money to operate.  The business model is backwards from traditional business.  More customers = higher costs, because each customer brings more simultaneous users….. which means exponentially more data performance is needed.

User engagement features on Twitter are significant, because that’s all Twitter does.  Not only can users write comments, graphics, memes, videos, but they can also like comments, retweet comments, subtweet comments, bookmark comments, and participate in DM systems.  That is a massive amount of server/data performance demand, and when you consider simultaneous users, it’s almost unimaginable in scale.  That cost and capacity is also the reason why Twitter does not have an edit function.

With 217 million users, you could expect 50 million simultaneous users on Twitter during peak operating times.  My back of the envelope calculations, which are really just estimations based on known industry costs for data performance and functions per second, would put the data cost to operate Twitter around at least $1 billion per month (minimum).  In 2021, Twitter generated $5.1 billion in revenue, according to the Wall Street Journal.

There is no business model, even with paying subscribers, for Twitter to exist.  As the business grows, the costs increase, and the costs to subscribers would grow.  So, what is going on?

The only way Twitter, with 217 million users, could exist as a viable platform is if they had access to tech systems of incredible scale and performance, and those systems were essentially free or very cheap.  The only entity that could possibly provide that level of capacity and scale is the United States Government – combined with a bottomless bank account.

If my hunch is correct, Elon Musk is poised to expose the well-kept secret that most social media platforms are operating on U.S. government tech infrastructure and indirect subsidy.  Let that sink in.

The U.S. technology system, the assembled massive system of connected databases and server networks, is the operating infrastructure that offsets the cost of Twitter to run their own servers and database.  The backbone of Twitter is the United States government.

There is simply no way the Fourth Branch of Government, the U.S. intelligence system writ large, is going to permit that discovery.

Apr 14 2022

In the old days, we gathered in the town square…


Posted on Rumble by Tulsi Gabbard  originally Published on April 13, 2022 

Social media platforms serve as our virtual town squares. But if they deny us our right to free speech, our democratic republic cannot survive. John Adams said, “A Constitution of Government once changed from Freedom, can never be restored. Liberty once lost is lost forever.”

Apr 14 2022

The World is Laughing at America


Armstrong Economics Blog/North America Re-Posted Apr 14, 2022 by Martin Armstrong

Above is a clip from “Studio 22,” a program on the Saudi government-owned television network MBC. The skit portrays US President Biden as mentally incompetent, repeatedly fumbling his words, forgetting names, and falling asleep behind the podium. Biden’s declining mental health is apparent every time that he is permitted to speak publicly. This is how other nations now view the US, as everyone sees there is a puppet at the helm. Biden makes America appear weak on the international stage.

The skit is far from a comedy sketch. Joe Biden has referred to Vice President Kamala Harris as the “First Lady,” as portrayed on the Saudi program. Recently he called Michelle Obama the former vice president and referred to Ukrainians as Iranians. Let us not forget how his “gaffe” nearly caused World War III when he declared that Putin needed to be removed from power. The White House simply retracts his statements and makes excuses for his erratic behavior.

Even with pre-scripted cards, Biden continually forgets the topic at hand and has been filmed repeatedly being redirected by his handlers at various functions. Even Secretary Psaki is jumping ship as she can no longer deflect the truth. The entire world sees the leader of the United States as a complete fool. Yet, he was allegedly the most popular presidential candidate and secured a record number of votes. The Democrats chose the wrong puppet; besides his slim margin of supporters with cognitive dissonance, no one believes that he is leading the nation.

Apr 14 2022

Walgreens Rationing Baby Formula


Armstrong Economics Blog/North America Re-Posted Apr 14, 2022 by Martin Armstrong

Walgreens announced that it has begun to ration baby formula amid the supply chain crisis. The rule will go into effect for all 9,021 locations. Customers may only purchase three infant and toddler formulas per visit due to “increased demand and various supplier issues.”

Retail sales tracking company, Datasembly, reported that 29% of infant and toddler formula products were out of stock at over 11,000 stores during the week of March 13. In comparison, only 11% of those essential products were unbailable in November 2021. CBS MoneyWatch reported that certain states had seen more significant shortages, such as Minnesota, where 54% of baby formula products were unavailable. The rate is an alarming 40% in Iowa, Connecticut, Hawaii, Maryland, Rhode Island, North Dakota, South Dakota, and Texas.

The recent recall of Abbot’s Sturgis formula has made the situation worse but does not begin to contribute to the shortage. If Walgreens is experiencing this issue, other major chains will soon follow suit. Although selling actual breast milk is not illegal, the practice is not very regulated and often unsafe. Still, human milk banks are growing in popularity. There will be a revolt if mothers are unable to feed their babies. It is absurd for anyone to deny the supply chain CRISIS at this stage.

Apr 14 2022

The Supply Chain Crisis Will Worsen


Armstrong Economics Blog/Climate Re-Posted Apr 14, 2022 by Martin Armstrong

The supply chain issues across the world are continually worsening due to government mismanagement. It seems as if there are sinister intentions at play, as these new restrictions seem to be a deliberate attempt to destroy the global economy.

California’s far-left politicians only implement laws to hurt the people. The California Air Resources Board (CARB) recently revised its Air Resources Board Truck and Bus Regulation:

“The Air Resources Board (ARB) Truck and Bus Regulation requires diesel trucks and buses that operate in California to be upgraded to reduce emissions. By January 1, 2023, nearly all trucks and buses will need to have 2010 model year engines or equivalent. Compliance requirements are currently in effect.”

Therefore, by January, all trucking companies will need to upgrade their trucks to newer models or slim down their fleets. Joe Rajkovacz, director of governmental affairs and communications at the Western States Trucking Association, said that the new law will eliminate 80,000 commercial trucks from operating, accounting for 17% of the trucks in the state. “We in the industry know that if you think there was a supply chain problem over the last year, wait until you take this many trucks out of the marketplace that are not replaceable. You can be talking about something we as a country have never seen before,” he stated.

CARB continues to deny that removing 17% of the trucking fleet will impact the supply chain crisis. “There is simply no evidence to support any claim that the current supply chain issues have any connection to the state’s effort to clean up California’s trucks emissions,” a representative stated.

Trucking companies are pleading for this ruling to be repealed as they simply cannot afford new trucks. Small trucking companies will go under.

Peter Navarro, former manufacturing adviser to former President Donald Trump, called the situation “Woke microeconomics.” Reducing fossil fuels with no other alternative available seems appealing to the far-left. They do not realize that their save the environment plight cannot dismantle the industrial world without repercussions. Woke microeconomics will lead to our downfall.

Apr 14 2022

German Inflation 22.6% – The End is in Sight


Armstrong Economics Blog/European Union Re-Posted Apr 13, 2022 by Martin Armstrong

The wholesale prices in Germany rose at a record pace in March. Compared to the same month the previous year, wholesale prices jumped by 22.6%, as the Federal Statistical Office announced on Tuesday in Wiesbaden. This is the highest increase since calculations ever began in 1962. In February, the rate was already high at 16.2%, which has been surpassed here in March. Month-on-month, wholesale prices rose 6.9%, which is yet another record increase.

Our models are pointing to serious trouble ahead for Germany and this poking Russia is all intended as a diversion from the collapse of the European economy that is underway. The negative interest rates since 2014 have wiped out the pension funds and proven that the central bank can no longer control the economy. Add to that, the braindead COVID restrictions which have dealt a serious blow through the heart of the supply chain, and we have a recipe for total economic disaster which is being reflected in the inflation rates which then leads to civil unrest.

I have stated many times, we have the WORST possible crop of world leaders I have ever witnessed in my lifetime. There is not a single character that I would be able to sit down and have an intelligent conversation with. Germany appointing Jenifer Morgan in charge of their environmental policies and the intent was to make her their Secretary of State is just astonishing. What is her role? Tell Putin to turn off his tanks because they create CO2?

These climate zealots have managed to destroy the world economy in just two years. Never in the history of humanity has there EVER been such stupidity from those in power. They should admire their heads in the mirror every day, for if history repeats, they will be dragged from their palaces and their heads might be adorning spikes with cheers of vindication.

It is well known that the first casualty of war is the truth, and nothing sorts out the lies more than troops crossing political borders. Hence, they also say that history is written by the victors. Ever since COVID, we have witnessed a rising trend of civil unrest politicians have been working hard to deliberately create war with Russia all cloaked in their real objective of controlling the planet. Ever since this intended war to poke the Russian Bear, there’s been an acceleration of every conflicting agenda on the world stage. This has crashed the world economy, ended Globalization, and divided the world into US v THEM with the only resolution being armed conflict. Our World Leaders need a war with Russia and then will turn on China as they think threatening China with sanctions will prevent them from joining Russia against the West. This will fail – China is not that stupid. Blaming the other guy is always the way to war. They need to demonize the enemy to inspire hatred that they use to manipulate war.

Apr 14 2022

Biden Calls Russia Military Operation in Ukraine “Genocide”, Commits Additional $800 Million in Weapons Today


Posted originally on the conservative tree house on April 13, 2022 | Sundance

Yesterday in Iowa, Joe Biden called the Russian military operation in Ukraine a “genocide,” which has a very specific set of legal definitions to it.

When asked if he had seen enough evidence to support that statement Biden responded:

“Yes, I called it genocide.  It has become clearer and clearer that Putin is just trying to wipe out the idea of even being — being able to be Ukrainian.  And the amount — the evidence is mounting.  It’s different than it was last week.  The — more evidence is coming out of the — literally, the horrible things that the Russians have done in Ukraine.  And we’re going to only learn more and more about the devastation. And we’ll let the lawyers decide internationally whether or not it qualifies, but it sure seems that way to me.”  (link)

Several ground reports from European journalists indicate the U.S. military is running all of the combat operations inside Ukraine. A French reporter said on Euro News, “I thought I was with the international brigades, and instead I was facing the Pentagon.”  Now today, Joe Biden announces he is arbitrarily sending U.S. combat helicopters into the conflict.

[Tweet Link]

(WHITE HOUSE) – I just spoke with President Zelenskyy and shared with him that my Administration is authorizing an additional $800 million in weapons, ammunition, and other security assistance to Ukraine.

The Ukrainian military has used the weapons we are providing to devastating effect. As Russia prepares to intensify its attack in the Donbas region, the United States will continue to provide Ukraine with the capabilities to defend itself.

This new package of assistance will contain many of the highly effective weapons systems we have already provided and new capabilities tailored to the wider assault we expect Russia to launch in eastern Ukraine. These new capabilities include artillery systems, artillery rounds, and armored personnel carriers. I have also approved the transfer of additional helicopters. In addition, we continue to facilitate the transfer of significant capabilities from our Allies and partners around the world. 
 
The steady supply of weapons the United States and its Allies and partners have provided to Ukraine has been critical in sustaining its fight against the Russian invasion. It has helped ensure that Putin failed in his initial war aims to conquer and control Ukraine. We cannot rest now. As I assured President Zelenskyy, the American people will continue to stand with the brave Ukrainian people in their fight for freedom. (link)

White House spokesperson Jen Psaki was asked about this escalation earlier today:

.

The Biden administration is all-in for this Ukraine proxy war, taking all actions to highlight a zero-sum position.

Apr 13 2022

Ukraine v Russian Empire


Armstrong Economics Blog/Ukraine Re-Posted Apr 13, 2022 by Martin Armstrong

QUESTION: We elected Zelensky who promised to end the civil war. It looks like the West is telling him not to compromise and let the Russian section go.

DH (from Ukraine)

ANSWER: On Sunday, CBS News program “60 Minutes” aired an interview with Zelensky. I believe Zelensky is still claiming evidence of Russian war crimes, saying: “We are defending the ability of a person to live in the modern world.” Despite what the press says, this is a Proxy War against Russia and the US, along with the EU and Britain. They are quite happy to use the Ukrainian people as cannon fodder. There is no possible way all of these countries would allow Zelensky to address their own people UNLESS this was a Proxy War.

The Dnieper River which runs 1,423 miles and today is the border between Belarus and Russia, was also the border of Ukraine with Russia during the Tsarist Empire at the time of Mikhail I (1613-1645) of the Romanov Dynasty. Zelensky’s claims that Putin has invaded a sovereign nation are debatable. Eastern Ukraine today was assigned to it for administrative purposes during the USSR. It was never Ukrainian territory. It is very hard to see why it is worth killing your own people for a territory that has been occupied by Russians for centuries.

This is obviously a Proxy War, and despite whatever the press says, the West is using the Ukrainian people as the Vanguard in this battle against Russia. They cannot declare war on Russia legally, so they have used Ukraine. Zelensky seems happy to accommodate, blaming civilian deaths on Putin when he shared responsibility for this war.

In Crimea, the population is predominantly Russian and Tatars where there is a population of about 250,000, accounting for about 10% of the total.

Apr 13 2022

Stop Blaming Putin for Inflation


Armstrong Economics Blog/Inflation Re-Posted Apr 13, 2022 by Martin Armstrong

The Consumer Price Index soared 8.5% in March year-on-year, according to the report released by the Labor Department on Tuesday. Prices have not been this inflated since Reagan was in power in December 1981.

Former Fed Chair Ben Bernanke set the target level of inflation at 2% back in 2012. Once the Federal Reserve began pursuing a 2% level of inflation in 2012, that standard was soon set as the target for numerous central banks across the world. This all changed when the world collectively agreed to stop spinning for the coronavirus. As you can see, median inflation in the US was declining prior to 2020.

The 2% level remained in place for some time until they realized that inflation was not “transitory” and artificially low rates had diminished the central bank’s ability to control the situation. Guidelines and restrictions were lifted chaotically. The US government continued to spiral into debt by adopting new socialistic spending programs. Unemployment levels are just now recovering three years later, but the damage from COVID cannot be ignored. While wages are increasing, inflation has reached such an unsustainable level that everyone’s buying power has decreased.

By August of 2020, the Federal Reserve carefully changed its language:

“Notably, the Fed changed its language on inflation, replacing its 2 percent inflation target commitment, and instead said it will “[seek] to achieve inflation that averages 2 percent over time.”

Inflation made a notable uptick in April 2021 (4.2%) at a pace not seen since the Great Recession. By the end of Q4 2021, Chairman Powell admitted inflation was not “transitory,” and underplayed the situation that would unfold. We are now in the midst of a supply chain crisis, energy crisis, and wage-price spiral. Every variable of this situation contributes to inflation on top of a government that does not take measures to address any crisis.

White House Press Secretary Jen Psaki tried to do damage control a day before the report was released. “We expect March CPI headline inflation to be extraordinarily elevated due to Putin’s price hike,” Psaki said. The numbers do not lie. Inflation was on the rise well before Putin engaged with Ukraine. Government and central bank mismanagement have caused the current situation. Powell admitted they should have moved a bit quicker, but Biden remains wholly unaware of the problem and continues to worsen matters with his policies that are intended to destroy America before Build[ing] Back Better.

Apr 13 2022

The World’s Busiest Shipping Port is Closed


Armstrong Economics Blog/China Re-Posted Apr 13, 2022 by Martin Armstrong

Shanghai went under a full lockdown at the end of March under China’s zero-COVID tolerance policy. When cases allegedly rose, China extended the lockdown indefinitely. Shanghai hosts the busiest container port in the world, and its inability to operate is contributing to the supply chain crisis in a profound way. A member of the EU Chamber of Commerce’s Shanghai Chapter estimated that volume was down by 40% during the first week that the ports were prohibited from operating. There is no set date for when the port will resume operation.

It is estimated that the lockdown currently imposed has imprisoned an alarming 25 million Chinese citizens in their homes, but the implications of shutting down the world’s largest shipping port amidst a supply crisis will send aftershocks throughout the global economy. To understand how crucial Shanghai’s port is to the global flow of goods, the Port of Shanghai hosts over quadruple the volume of the Port of Los Angeles (one of America’s largest shipping ports).

Those in the industry warned that this would cause problems. One of the largest international container companies, Maersk, said that Shanghai’s shutdown would cause a 30% rise in trucking costs alone.

Some businesses are operating the “closed loop” system where employees are basically unable to leave their place of work. Still, the port cannot operate with the current restrictions as there are simply not enough available workers. This is completely unsustainable. China is throwing gas on the rapidly burning supply chain and inflation crises with their current policies that will be felt across the world.