Auditing the AI Giants

Another suggested explanation for Anthropic’s erratic behavior of late:

Anthropic desires to file an S-1, as they would like to go public. Therefore they need an audit. And by “they”, I mean the VC’s who invested in them. So “they” can exit their position and pass the bag to firemen, nurses, teachers and policemen.

How does this go from the VC’s to the working man and woman? Because the size of the IPO will automatically qualify Anthropic for the Fortune 500 and the Dow Jones 100. Therefore, every working person with a 401k or pension will end up owning a little bit of Anthropic in their mutual funds. Teachers hold the bag, VC’s take the cash. Thank you, come again.

Now back to the audit. The audit required is a PCAOB audit, Public Company Accounting Oversight Board. This audit is what all public companies must comply with be on the stock market. Revenue recognition, expense classification, depreciation, related party transactions, etc. It’s there for consumer protection.

This audit is TOUGH. It is INVASIVE. There is no way to lie your way through it. Any company that passes a PCAOB audit automatically earns my trust on finances.

How do I know? Because I’ve been through it before. @ChangRobotics is 2 year PCAOB audited and currently underway for a 3 year audit. It’s brutal. The same as showing up as the valedictorian to your high school graduation, except you’re naked, and you have to walk on stage and deliver the speech. It’s rough. And I know many incredible founders that can’t pass one.

Now, why would Anthropic be leaking all kind of weird statements lately about “self pacing” a slow down on AI (e.g. they are WAY behind on revenue), and profitable if they didn’t have expenses (e.g. we just learned for the first time what our expenses are, because we’re being audited).

Because they were claiming NVIDIA discounts and Microsoft cloud credits as revenue. Because they had no clue what their expenses were, or why it even mattered. Because they had unlimited investor capital and their job was to burn it to make an LLM. Well, they did a great job with that!

That’s the same as my wife coming home with Bed Bath and Beyond coupons and telling me it’s her paycheck. Ummm, not the same, sweetheart.

I also expect that the global economic contraction is playing some kind of role here. Who wants to sink money into a bubble that is quite obviously popping?

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Juries are Unjust in a Diverse Society

The most brilliant statesman of the 20th century, Lee Kwan Yew, opposed juries due to his own successful experience with them as a defense attorney:

“In his first case he was “was assigned to defend four murderers.”

Fleeing the Japanese, a Dutch woman had entrusted her daughter to a Malay muslim. She came back after the war, reclaimed the daughter. The Chief Justice, then an Englishman, pending hearing of the case, sent the girl who had been converted into Islam to a convent to be looked after, and hell broke loose. The police force mutinied. Malays and Muslims took out their knives and a lot of white men, who had nothing to do with the case, were killed just becaue they were white. These four men were accused of killing a Royal Air Force officer and his wife and child. They were travelling on a bus from RAF Changi down to town.

Lee Kuan Yew, who had been assigned the case, explains that he did what any advocate does: He “worked on the weaknesses of the jury — their biases, their prejudices, their reluctance really to find four Mussulmen guilty of killing in cold blood or in a heat of great passion, religious passion, an RAF officer, his wife and child.” And he employed “the simple tricks of advocacy — contradictions between one witness and another, contradiction between a witness and his previous statement to the police and the preliminary enquiry.”

When the jury acquitted the murderers, Lee Kuan Kew reports, “The judge was thoroughly disgusted. I went home feeling quite sick because I knew I’d discharged my duty as required of me, but I knew I had done wrong.”

He thereupon concluded that no government in which he had a say would employ this foreign, “foolish, completely incongruous system.” Pointing out that the French and other Latin nations do not use trial by jury, Lee Kuan Kew argues that it is too “alien” to the basic social attitudes of many other cultures, including those of Asia.

It’s not just alien to the basic social attitudes of many cultures, but to women as well. The ability to adjudicate dispassionately is rare enough among men from an Anglo culture, it is entirely absent from the solipsistic sex and the more tribal cultures. It simply cannot function as designed in situations profoundly different than those in which, and for which, it was originally developed.

After all, one can only be tried fairly by a jury of one’s peers. And if the jury is diverse, then it is not a jury at all.

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Reconquesta II

There is always hope we will see proper history in the making. And no actual Spaniards are going to fight for the government of Pedro Sánchez, least of all the Catalans.

King Felipe VI has called a meeting at Zarzuela with the top Military leadership of Spain and Ceuta, in which he has expressly excluded the President of the Government Pedro Sánchez. The meeting was attended by the Chief of the Defense Staff, the Chief of the Operations Command, the Chief of the Joint Operations Command, and the General Commander of Ceuta, in addition to Defense Minister Margarita Robles.

The President of the Government Pedro Sánchez and several Ministers have made their great displeasure known, but let us not forget that article 6 of the Constitution gives the army the function of safeguarding the Territorial Integrity of the State, and the King is the Supreme Commander of the Armed Forces according to article 62 of the Constitution, when Pedro Sánchez and Marlaska are the subject of a possible judicial investigation for crimes against the territorial integrity of Spain and treason.

Not only has the National Court ordered the Police not to inform Marlaska or Sánchez, but the King himself has left them out of a surprise meeting with the top Military leadership of Spain.

It would certainly be a major blow against Clown World if King Felipe VI was to follow in the footsteps of the Generalissimo and put the treasonous government to the sword, then follow the example of Ferdinand and Isabella and expel all of the foreigners working against the people of Spain.

Democracy is a political deceit and a false ideal. It is long past time for the end of this particular political cycle. And no doubt both China and Russia stand ready to provide assistance to the first European nation to break free of their satanic oppressors.

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The Best and Brightest

The FBI is clearly more interested in agents who have skeletons in their closet than the squeaky-clean G-men of yesterlore:

The FBI previously refused to hire job applicants if they admitted to hiring sex workers or stealing from an employer — or engaging in acts of bestiality. Today, those acts, which are mostly illegal across the country, are no longer automatic deal breakers for applicants to the nation’s top law enforcement agency.

In June, the FBI quietly lowered some of the standards it uses when it conducts background checks on would-be federal agents and other personnel. According to multiple sources briefed on the matter, the FBI did so to facilitate hiring in some cases, even if candidates acknowledged they engaged in sexually deviant activities or stole from an employer.

Considering that their primary responsibility now appears to be covering up the Epstein files and investigating possible racisms, I suppose a Very Special Agent occasionally indulging in his predilection for hookers, theft, and animal abuse isn’t really going to interfere with that.

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The Abuse of “Reasonable Doubt”

The defense lawyer in the Lindsay Clancy trial has successfully convinced most of the jury that “reasonable doubt” applies to whether she was temporarily insane or not, and not whether she committed the murders or not:

Tensions reached a boiling point in the Lindsay Clancy trial on Friday as jurors continued to deliberate, with one holdout refusing to agree with 11 others.

Clancy’s lawyer Kevin Reddington yesterday begged the judge to switch out the holdout juror who, the jury foreperson claims, is refusing to follow the law when it comes to reasonable doubt. The jury, who is made up of nine women and three men, have been deliberating for 36 hours.

It now appears that the juror is certain Clancy is guilty, and is voting that way. Reddington claimed on Thursday that they were doing so despite having ‘reasonable doubt’.

‘That juror told you that he would be able to apply the law to the facts as you asked him, and based on this note from this juror, it clearly and unequivocally indicates that they are basically 11 to one, and this person will not apply reasonable doubt to the evidence to return a not guilty verdict,’ Reddington said in court.

Earlier, the defense lawyer also accused the judge of ‘glossing over the issue’ and being ‘soft’ on the reasonable doubt instruction.

The actual standard laid down by the Supreme Court is as follows:

The Court held in In re Winship that the Due Process Clauses of the Fifth and Fourteenth Amendments protect the accused against conviction “except upon proof beyond a reasonable doubt of every fact necessary to constitute the crime with which he is charged.”

And what are those facts necessary to constitute the crime of first-degree murder in Massachusetts?

To secure a murder conviction, prosecutors must demonstrate three primary elements:

  • Unlawful Killing: The victim’s death must directly result from the defendant’s actions, without legal justification such as self-defense.
  • Malice Aforethought: This concept encompasses intent to kill, intent to cause significant harm, or an act demonstrating extreme disregard for human life.
  • Causation: A clear causal link must exist between the defendant’s conduct and the death of the victim.

First-degree also requires “deliberate planning, exceptional cruelty, or a killing committed during another serious felony”.

Since there is no objective way to establish the facts of someone’s sanity or insanity at any given time, let alone a specific moment in the past, “reasonable doubt” cannot apply to someone’s mental state or no one could ever be convicted of murder. Indeed, the more heinous and savage the crime, the more easily “reasonable doubt” of their sanity must be applied.

Now, I understand the difference between the actual black-letter law and so-called “case law” and judicial precedent, but that doesn’t change the fact that “reasonable doubt” can never be applied to an individual’s mental state, because Die Gedanken sind frei.

UPDATE: The judge is also on very shaky ground. His instructions are observably false. The jury can nullify any law. It, and not the judge, are the legal authority.

He then reminded the jury that they must follow the law as he gave it to them. ‘I wanted to remind you, as I instructed you earlier, it is your duty as jurors to accept the law as I gave it to you,’ Sullivan said. ‘You must follow the law as I give it to you, whether you agree with it or not. ‘With that, you may now resume your deliberations.’

UPDATE: Judge Sullivan entered the courtroom and said the jury had sent a note stating they could not reach a verdict. The judge announced he intends to declare a mistrial.

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Alien Enemies

The law is nothing more than a rhetorical game about definitions:

BREAKING: Supreme Court just handed Trump the immigration equivalent of a nuclear button.

In a 5–4 ruling, they confirmed he can use the 1798 Alien Enemies Act to treat Tren de Aragua as what it is: an invading foreign force.

That means:

  • No more endless appeals
  • No more activist judges blocking deportations
  • Venezuelan gang members can be rounded up and shipped straight to El Salvador’s mega-prison

This is a historic win for borders, sovereignty and law & order in the United States. The only people upset today are the open-borders globalists who never thought this day would come.

How many people does it take to make up “an invading foreign force”? It seems to me there are many invading foreign forces now in the United States, whose repatriation is obviously in the American national interest.

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First Harambe, Now Milo

“On August 27, ICE arrested Milo Yiannopoulos, an illegal alien from the United Kingdom, at the Louis Armstrong New Orleans International Airport (MSY) in Kenner, Louisiana. Yiannopoulos legally entered the country on May 14, 2019, through New York City, New York. He chose to overstay his welcome in violation of our nation’s laws,” the department said.

“Yiannopoulos was issued a final order of removal by an Immigration Judge on July 22, after failing to show up for his immigration hearing. He will remain in ICE custody pending removal.”

“Being in detention is a choice. We encourage all illegal aliens to take control of their departure with the CBP Home App. The United States is offering illegal aliens $3,000 and a free flight to self-deport now. We encourage every person here illegally to take advantage of this offer and reserve the chance to come back to the US the right legal way to live the American dream. If not, you will be arrested and deported without a chance to return,” DHS said.

In fairness to ICE, failing to show up on time for anything is pretty much Milo’s signature move. And I’m confident that Milo would be fine with his repatriation if it meant that the other 100 million illegal aliens now in the USA were similarly returned to their home countries.

I’ve reached out to him, so hopefully he’s doing fine and we’ll hear from him soon. And I see this as one more piece of evidence that tends to indicate that whoever is currently in the White House isn’t the real Trump.

DISCUSS ON SG


Japan Rejects Clown World

Japan is refusing to embrace the false god of equality.

Japan’s parliament enacted Friday a historic revision to the 19th-century Imperial House Law by insisting only paternal-lineage men can become emperor, sparking fear that it could doom the already shrinking imperial family. The revisions include adoption of distant male relatives to father future heirs and allowing princesses to keep their royal status after marrying commoners.

Royal watchers and experts fear the new measures could doom the 1,500-year-old hereditary institution by insisting that only men can be emperor, sparking worry about the shrinking, fast-aging imperial family. Emperor Naruhito ’s 24-year-old daughter is hugely popular, and many Japanese want her to be his successor, but Princess Aiko is ineligible because she is a woman. Japan’s male-only succession rule means the line must move to the emperor’s younger brother, then to his 19-year-old nephew Prince Hisahito. Next in line after him is the emperor’s 90-year-old uncle.

In an imperial family that places a premium on male royal babies, Hisahito is the first such boy to be born in four decades. Only five of the 16 adults in the imperial family — there are no children — are men. This matters, as Prime Minister Sanae Takaichi and other conservatives insist the male bloodline is “the only source.

And they are also rejecting the satanic ideology of so-called “free speech”.

Japan on Friday enacted a controversial new law prohibiting desecration of its national flag, a key right-wing agenda pushed by Prime Minister Sanae Takaichi. Opponents say it’s an attempt to intimidate the public and silence criticism of her government. The law punishes publicly damaging or defacing the national flag, known as “hinomaru,” including livestreaming of the scene in ways that would offend the feelings of others.

Opponents say the ambiguous law only intimidates people from using the flag in art, protests or other forms of expression, and could violate constitutional freedom of speech. Japan has a law to punish vandalizing foreign national flags, mainly those displayed at diplomatic facilities, to avoid international disputes. Takaichi says Japan’s lack of a law criminalizing disrespectful handling of its own national flag is “wrong.”

Violators would face up to two years in prison or a maximum fine of 200,000 yen.

Of course, we all know that the advocates of so-called “free speech” were lying through their forked tongues, because once they enshrined the “right” to blasphemy, treason, and pornography in the Clown World systems, they immediately instituted their “hate speech” and “anti-semitism” laws that obviously violate the very fake right that they created.

One of the books most recently bound by the Castalia Bindery, A History of Freedom of Thought by J.B. Bury, explains the first half of this process from the perspective of a free speech champion of the Enlightenment.

DISCUSS ON SG


They Were Never American

One can’t honestly call them traitors, or their actions betrayals.

Meta’s betrayal is crystal clear:

They’re firing 4,875 Americans on July 22 while filing for thousands of new H-1B visas in 2026 alone.

This is exactly why the H-1B program is dangerous. Big Tech uses it to replace American workers with cheaper foreign labor.

The H1B program needs to be abolished

Most US-based big tech is no more American than Alibaba or Deepseek. Which, of course, is why they’re perfectly happy to disemploy Americans and hire foreign labor, whether it is cheaper or not.

How many times do Paper Americans have to prove they are not Americans before Americans believe them?

Big tech shouldn’t be bailed out or awarded government contracts, it should be nationalized.

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Supreme Court Upholds Paper

This is an absurd and pernicious anti-American ruling by the Supreme Court in defense of geography-based citizenship:

The Supreme Court slapped down President Donald Trump’s attempt to end birthright citizenship in a major blow to the administration’s radical vision for the composition of the country. In a landmark 6-3 decision, the Justices halted the President’s attempt to end birthright citizenship – calling it blatantly unconstitutional and out of bounds.

The constitutional guarantee was enshrined by the 14th Amendment, and ratified in 1868 to guarantee citizenship to freed slaves, but has since applied to every person born on US soil or its territories.

It impacts an estimated 150,000 children born in the US annually to noncitizens.

The ruling is a major defeat for Trump, and comes as the high court has ruled against him in a handful of major cases – including invalidating his sweeping tariff regime, and blocking his effort to fire Lisa Cook from the Fed’s board of governors.

As one diehard liberal recently pointed out, the use of liberal democratic institutions to defend the indefensible and defeat the will of the people is only going to guarantee the eventual destruction of those institutions.

There will not be any independent judiciary in the governments that replace the corrupt governments of the West when they fall, because, as with so many Enlightenment concepts, their supposed value is net negative to society.

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