Propaganda is Obvious

Because it is excellent, I've cut and pasted from a fascinating- and chilling -article by Berit Anderson and Brett Horvath from scout.ai  If you wanted reasons to spend less time on line, well here you go.  The full article is at https://scout.ai/story/the-rise-of-the-weaponized-ai-propaganda-machine  This is a must read.  Thanks Tom Civiletti for your post.
The upshot:  political, social and economic propagandizers now have the capacity to customize their message to every single individual with an online presence.  They can build a total experience for you, complete with a large group of fake friends, that is emotionally addicting and intellectually manipulative.  They can construct a complete world just for you, solely for the purpose of contolling your decisions.  Which doesn't feel like control at all.
This is why I believe people who run face-to-face businesses like I do will never become extinct.  In fact, now is our time.  We must counteract this powerful, pervasive and unConstitutional manipulation of one another.

At Scout, we’ve been speaking with political strategists, technologists, and machine learning experts about how AI propaganda will spread through society in the near future. We want to work with you, the Scout community, to scenario plan what happens next. Here are some implications to get the conversation started.

IMPLICATION #1:

Public Sentiment Turns Into High-Frequency Trading

Thanks to stock-trading algorithms, large portions of public stock and commodity markets no longer resemble a human system and, some would argue, no longer serve their purpose as a signal of value. Instead they’re a battleground for high-frequency trading algorithms attempting to influence price or find nano-leverage in price position.

In the near future, we may see a similar process unfold in our public debates. Instead of battling press conferences and opinion articles, public opinion about companies and politicians may turn into multi-billion dollar battles between competing algorithms, each deployed to sway public sentiment. Stock trading algorithms already exist that analyze millions of Tweets and online posts in real-time and make trades in a matter of milliseconds based on changes in public sentiment. Algorithmic trading and ‘algorithmic public opinion’ are already connected. It’s likely they will continue to converge.

IMPLICATION #2: 

Personalized, Automated Propaganda That Adapts to Your Weaknesses

What if President Trump’s 2020 re-election campaign didn’t just have the best political messaging, but 250 million algorithmic versions of their political message all updating in real-time, personalized to precisely fit the worldview and attack the insecurities of their targets? Instead of having to deal with misleading politicians, we may soon witness a cambrian explosion of pathologically-lying political and corporate bots that constantly improve at manipulating us.

IMPLICATION #3: 

Not Just a Bubble, But Trapped in Your Own Ideological Matrix

Imagine that in 2020 you found out that your favorite politics page or group on Facebook didn’t actually have any other human members, but was filled with dozens or hundreds of bots that made you feel at home and your opinions validated? Is it possible that you might never find out?

Your Constructive Comments are Welcome!

THE DEVIL IS IN THE DETAILS

This blog heading is colloquially true, especially when it comes to Investment Adviser contracts.  A recent review of compliance violations found- first of all- that 22% of advisers didn't have contracts with their clients.  A contract isn't required unless a fee of some kind is collected from or owed by a client.  So if you are paying a fee of any kind- flat, hourly, percent of assets, performance based -a contract is required.

So what devilish details should you watch for in an advisory contractual relationship?  Here's a short list:

• First and foremost:  The absence of a contract altogether!  Do you really want to work with and pay someone without formalizing rights and expectations on paper?
• Any provision that compensates the adviser based on "a share of capital gains upon, or capital appreciation of, the funds- or any portion of the funds -of the client. (Sec. 205(a)(1) of the Investment Advisers Act).  I see these so-called performance fees in contracts all the time.
• Mandatory arbitration clauses.  These have become so common that the average person doesn't blink an eye signing them.  By doing so, you're giving up- in most cases -the right to sue individually or to be party to a class action against the adviser.  My contract only has a voluntary mediation clause; we agree to sit down and talk about a dispute before consigning our souls to the lawyers.  Never had to use it.
• Be aware of with whom it is you're actually contracting.  Is it the adviser himself or some obscure LLC or other obfuscatory entity that your adviser can hide behind?  My clients contract with me, and only me, directly.

Your Constructive Comments are Welcome!

RELAX, IRS has eliminated Fraud

Wish this was true, but it's yet another Financial Myth.  You can read the whole article here, or, my abridged version below.
http://www.irs.gov/uac/Newsroom/IRS-Warns-Taxpayers-to-Guard-Against-New-Tricks-by-Scam-Artists

It's good to know the 5 things IRS will not do:

• Angrily demand immediate payment over the phone, nor will the agency call about taxes owed without first having mailed you a bill.
• Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.
• Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
• Require you to use a specific payment method for your taxes, such as a prepaid debit card.
• Ask for credit or debit card numbers over the phone.

If someone attempts to fool you in this manner, immediately turn them in at http://apps.irs.gov/app/scripts/exit.jsp?dest=https://www.treasury.gov/tigta/contact_report_scam.shtml

Best Always,

Gary
Your Constructive Comments are Welcome!