Hi, this is MXUX. This is a preview. Some items you can take into consideration before the Q4 Lordstown Motors earnings call Q4 of 22. I believe that's going to be on 227 after the bell. I'm going to start out with just a list of items. I'm going to go from one by one pretty quickly, then have a few video clips of some recent press and other things that are going on regarding possibly what's going to happen with Lordstown Motors. Pretty positive on everything. I'm just going to start out real quick with this is a patent filed by Ford Motor Company for Hub Motor BEV propulsion on a solid rear axle. Mind you, this is what Lordstown Motors has used from the start. Ford is coming around. I think they've realized they're behind the curve on this. This is a second piece that is just a study about the growth of the application of hub motors in the BEV space. Now, I think both of these stories are important because this shows you that Lordstown Motors has a Tesla-like lead in the application of hub motors to battery electric vehicles. I think they're going to hold that lead and I don't think anybody's going to catch them. I just wanted to start out with that real quick. Let's move on. All right, this is the Q4-22 earnings call taking place on February 27, 23 after the market closed. I'm just going to go over this quickly. This is a pre-call. Some items we can take a look, watch for in the presentation. CIFAS approval status. Now, the CIFAS approval is required for the sale of the stock to Foxconn. A lot of things hinge on this. I think it's also a keystone for them kind of formalizing their partnership agreement. You can look at my past videos. There's a lot of information on this. It should not be a problem. The sale of the plant was CIFAS approved. The thing is it may take longer than we like, okay? But hopefully the status they'll give is that that has been approved, although we haven't seen any SEC filings to that effect. So that approval and the formality of that approval is something we want to look for and a lot of things hinge on it. Now, we have the Delaware stock lawsuit. Again, this is filed by a law firm that has been doing this. It's a short attack. It's a technicality regarding the voting, the way the voting was conducted. I have down here, you can take a look at, by the way, you can pause this and read these entries yourself. I believe Lordstown did a belt and suspenders thing where they did a revote that addressed the issue they brought up in this just to cover themselves. I'm not certain on that. Do your own DD. In any case, this is designed to slow things down. The judge granted a motion to expedite the hearings. I think that indicates that he's in favor of Lordstown Motors. I think generally they don't like to rule it to hamper these types of things, but we're going to want to know that. So CIFAS, the Delaware lawsuit, you know, the other legal issue is the workhorse, the cancellation of the workhorse agreement for intellectual property transfer that gave workhorse a fee for each endurance produced, I think, up to the first 50,000 trucks. That is pending. You know, this, the suspension was developed while the truck was at Lordstown Motors, the control system for Lafay Motors, everything of any meaning has been developed after this truck left workhorse. It was basically a prototype of workhorse. We're there working out a lot of bugs. They're, in my opinion, the one thing that may have held true would be the body design, and I believe that Lordstown Motors under Hightower has redesigned the body for a five-star safety rating. I don't think they have any grounds for this. I think they're probably going to win that, in my opinion. You know, workhorse has been, in my opinion, hostile to Lordstown Motors. They did a stock sale of stock they got as part of this technology transfer, and they did it at a very inopportune time for Lordstown Motors. It hurt Lordstown Motors stock price, and it did not benefit workhorse that much. It only supplied a very small amount of income, so I don't know what the motivation was behind that. I don't know if they were carrying water trying to get a more favorable decision regarding the postal truck issue, but anyway, I think this lawsuit against workhorse really puts a nail in the coffin of that relationship. So anyway, a couple legal issues to look for. Now, we got the LMC balance sheet and the cash and the debt status. They've gone a little debt. My estimations, and I'm not going to pull up the spreadsheets and so forth, but my estimation was that they will, they certainly have had enough cash on hand to get to this quarter. And the Yaw Associates, Yorkville Advisors, Fox, the stock for cash credit line was canceled last year by Lordstown. So what we've got now is we've got Foxconn, and I've mentioned in my past there's a lot of provisions around this stock. Let me go through them quickly if I can remember them all. Lordstown Motors has agreed not to be acquired. They've agreed not to do anything with their hub motor stuff. Foxconn has agreed not to acquire them, and so on and so forth. You can look at my past, the video titled Hodler's provisions. So we've got Foxconn, and again, some of these monies have been passed forward. I do believe, again, Cephas is a keystone to them getting at this level of ownership and so forth. I could be wrong on that, but I feel confident there's not going to be a problem with this. The Foxconn ownership is ultimately going to be 24%, but it's a complex financial deal. We'll see if they talk about it during the earnings call. Let's move on to the next section here. Will there be revenue from engineering and design services? This is a big question I have. I have, or could be a surprise, the IDEV-1 is under development. I believe Lordstown Motors is doing the engineering work on that, and I think Ditto for the Monarch tractor. And as I have down here, Foxconn, you know, they've been announcing, they have six vehicles planned, and Model C, Model E, so on and so forth, the truck. Now, this is a question I have in my mind. Foxconn has agreed not to compete with their customers. They released the Model C in Singapore, I believe, under a Luxgen brand. Will these six or more BV models planned for launch, are they, the Foxconn models, are they going to be launched under the Lordstown Motors brand? So there is a distinct, this is what Foxconn has done with their Model C crossover, I believe in Singapore. It's not branded Foxconn, it's branded Luxgen. So will these be built branded as Lordstown Motors vehicles? Under the old agreement, the joint venture agreement, the answer would have been yes, and it also would have been that there was money, they're going to be sold under the brand, and there's going to be money made, and that Foxconn is going to sell the endurance worldwide, and it's going to be a cross pollination there of income and branding efforts. This is all, again, we had the joint venture, which has been done with. They have both parties have nullified that. Now, if you watch the last presentation from Hightower, he's moved on to saying pure partnership. Again, I think the CFIS approval has to take place before they can get too specific on that. I am not a corporate lawyer, do your own DD on that. So there's a lot of things hanging fire here, a lot of developments that I think are going to come through. I have down here, perhaps the most important is the mid-size urban BEV pickup truck announced at the Hanai Tech Day. That is a great vehicle, that is something everybody wants. That it has been stated that will be built in the USA, perhaps other places too, but in the USA and sold in the USA and other places as well. So that can only mean that Lordstown, the Lordstown plant is involved, and I am sure that Lordstown Motors will be the engineering and design firm on that. What they presented was a prototype. Whether or not that will use hub motors, the prototype did not. Could this new vehicle use pop? It could, if they wanted to do that. So is there going to be, I mean, in my personal opinion, there's a lot of work going on behind the scenes, I think, or planning or program management. Whether they have an agreement to do this as part of this stock sale, I'm not sure, but I think this whole basket of things here might be producing some revenue or should be at some point in time recognized by Lordstown Motors. Of course, they've been, they've passed their joint venture agreement and now they need a partnership agreement to do this accounting, I'm sure. But something to look forward to, is this going to happen? Will Scout, and I have Or Ford, I don't know what the German term is for having joy in other people's pain, Will Scout, VW Scout, Or Ford possibly, announce a LMC Foxconn BEV. There has, the thing is, for that Scout to qualify for U.S., the IRA tax credits, it has to be made in the United States. I did a video, several videos on this, the obvious choice is Lordstown Motors. There is word that they have been talking to Lordstown Motors. This is a vehicle that could be put even straight out on the endurance platform. Is this going to be announced? Is Ford, and I'm, I have no information on this, but I'm just going to give you a perfect example here. Could Ford produce a mid-size or a small-size urban pickup truck with hub motors, sold under Ford branding, built by Lordstown Motors, a shrunken endurance, if you will. That's conceptual, again no evidence of that, but this is another idea. Now right now we have the Lordstown Motor products and I believe the van is going to be the next product and the pickup truck we have right now, at some point a three-row SUV. We have the six Foxconn models, we have Monarch Tractor, we have IDEV, and we have Fisker. Rick Reich said at a more, not a private, but off-camera for a news piece that when he was talking about the developments that are going to be taking place at the Lordstown plant, they're putting in housing, they're going to put in housing, there's going to be university extension on the plant grounds. He said in an interview, they may have as many as 20 corporate clients for their services and now it's open to some interpretation, but that could mean better electric vehicles if Nissan or any of these other Toyota, any of these other companies that do not have a plant in the United States want to qualify for the IRA tax credit, which are going to have to get to be competitive, they're going to have to build their product in the United States. Now if they don't have a plant, they can contract with Lordstown Motors slash Foxconn to build their vehicles for them and sell them in the United States under their badger. I think this is a distinct possibility. Anyway, we've got, I forget at one point I told it up, but there's a lot of potential customers for these design engineering and manufacturing services and I think the IRA agreement really is a plus for this business model. So again, Scout for Neovagy has been saying they're going to have a partner of some type, a product partner. Let's see if that comes out, that's exciting. We have a ramp up of endurance production, which is supposed to start next quarter, I believe, and which is, you know, not that far away, could already be underway. We already have sales taking place of the endurance that sales had to be made to qualify for Truck of the Year and there have been a small number of sales and I do believe some trucks are out there. In any case, the production ramp is imminent. There may be more sales to fleets than we know of. Let's see what Hightower has to say about the timing of the ramp. Has there been delay? I mean, funding is an issue. CIFAS is a keystone to that funding. Will that slow the production ramp? Will that slow the sales? Will there be revenue from sales? Will the MIMU are more revenue than we think? I just want to say, you know, especially with the recent troubles with the Ford Lightning battery fires. That is going to make a lot of fleet owners and general public pause. The Lightning sales are already basically slowing to a trickle because of that and the 40-degree battery problem. You know, the R1-T, I believe they lose $160,000 on each truck. That truck is overly complex. And by the way, if you just do a quick search on YouTube, there's a myriad of problems with the computer system, with, you know, the truck breaking and so forth, as well. If you look at the underside of that truck on the front end, I couldn't believe this. There's an aluminum, I think it's a not forging, but extrusion subframe for the front end. There's seven pieces joined together in one giant one. It's a hand weld. I don't get it. Anyway, I don't think either of these trucks right now are viable. So I think what we have left is the endurance. And as they say in the movie business, people like to be surprised in a familiar way. The endurance is a familiar pickup truck. I think this is the Everyman battery electric pickup truck that the United States has been waiting for. And of course, the fleet sales are going to take place first. But after that, I think that the endurance and I think they're going to work out any issues. And there seem to be none at this point. I'm sure we would have heard about them if there were. This is I think the sales of this truck. It qualifies for all the tax credits. It's made in the USA. And also under the joint venture agreement, not under the partnership agreement we're having now, I haven't read any terms. I don't know what the terms are. But under that agreement, Foxconn was going to take the endurance and sell it worldwide. So in other words, the North American market was going to be Lordstown Motors market for the endurance. And that includes Canada, Mexico and the United States. And Foxconn was going to sell it in the rest of the world. And they were going to pay royalties to Lordstown Motors on the sales. I think that could very well take place. We're probably getting ahead of ourselves. They have to ramp up production. As you can see the ramp, look at the ramp of the Cybertruck. I don't know how long have they been working on it. Two years. They're not even ramping yet. But it takes a while to ramp these production lines up. I think Lordstown has an advantage because it's got a much simpler truck. And we do have a competition potentially from the Cybertruck. But I think that's a whole different class of vehicle. And I don't think you're going to be able to buy a Cybertruck. We don't know with the new pricing of Tesla. Maybe I'm wrong. But I think the cheapest Cybertruck is going to be $100,000. But anyway, let's talk about potential sales of endurance to fleets. Let's talk about revenue. Let's talk about ramp up. Let's see what was said about all these topics during the call. And I'm just going to read this paragraph. LMC Foxconn is a sleeping giant in my opinion. Jack Chen at CES. We're waiting for everything to be hunky dory. So FoxMIH is setting up supplies and supply lines not only for the endurance but for the other customers and the likely six Foxconn BEVs. Likely to be launched from Lordstown in my opinion. This is their plant. These are their vehicles. Why would they launch them anywhere else? And it has been openly stated some of them like the truck are definitely going to be built here. It's my opinion that they will open up this business all at once as soon as they are ready in a big way. And I have quit there. That should be quiet, quiet until then. So I think there's a lot of work going on behind the scenes. I think Jack Chen from MIH said we're getting our ducks in a row. They are working out the supply lines. If there are as many models potentially to be made, there's going to be some complex supply line things going on here. That is the Foxconn end, the Lordstown end. Lordstown is doing the program management on all these vehicles. And they are going to start from a concept and take it right up into production. And they're going to design the production. And by the way, at least part of the quality control is going to be done by Lordstown Motors for manufacturing. They have one of the best UC guys in the world has been hired by Lordstown Motors. So there is a lot of talent here. There's a lot of activity here. I read other analysts commentary on this. I mean, it seems as though no one has done a millimeter of depth of research into this company and what they're planning. And I mentioned in my last video what a powerful company Foxconn is. I think I am personally very bullish. I'm bullish on this business model. I think it even with the IRA makes you more bullish with the Ford battery fires. Don't mean to have that sure in France or whatever that term is the German term for being happy at someone's misfortune. But I don't know.  So I think it's looking good. We've got finance. We've got CIFAS. We've got a couple legal things. But we've got a battery electric vehicle that works the first of its time type using a hub motor technology and I later have some research on hub motor technology. You can understand Lordstown Motors owns the IP to run those things. They have written the operating system. I mean, they are bleeding edge on drivetrain BV drivetrain. No doubt about it. Absolutely. So this is MX UX. Those are a few things you can play this back and pause it and read these paragraphs. Just a few things before the call to look for could be full of surprises. I'm expecting a positive call. Funding is an issue. But I think we're looking at funding maybe slowed. But I don't see any major issue right now. And I think there are so many things in pipeline here. Anyway, I'm bullish. I'm not a financial advisor, corporate lawyer, engineer. Do your own DD. And this is all my opinion. All right. So good luck in the market. I have a few more pieces. I don't know if they're going to go before or after this presentation. Just some updates on some current news, which is very interesting having to do with the Lordstown Motors. Good luck in the market. Okay, this last piece is on Honhai. And Foxconn is sponsoring the local Lordstown area, local minor league team, the scrappers baseball team. Very, very popular in the area. I think this shows that Foxconn is there for good. They're becoming part of the community.  Just closing this out. I want to say I'm not a financial advisor. Right is a high risk in risk on investment. However, there is risk involved. You got to accept that risk if you're going to invest in right. But I just want to say, the recent commentary I've been reading is so off base on this company, on Foxconn, on the Foxconn business model, it rises to the level of propaganda. I have not yet read one accurate analyst or other commentary on this company. I think we can all wait to hear how positive I believe this call is going to be. But I think if you're going to hold this stock, you just have to be positive. And you have to just forget about the press because it's just not right. You have to do your own research. Please do your own DD. I think you'll agree with me.


Are you asking yourself right now, am I an alcoholic? Maybe you drank too much over the weekend, maybe you've said the wrong thing, maybe you're drinking a lot and you go, wow, maybe I am an alcoholic, this is getting a little bit too crazy. Relax, we're going to figure it out for you right now, okay? But first, you may want to reduce or quit alcohol. If you want to grab a free book that I wrote, it's called The 30-Day No Alcohol Challenge, How to Reduce or Quit Alcohol, there's a little link in the about section of this video down below and just an annotation up here as well. So I used to drink a lot, I was probably what you'd call a social drinker, I drank three or four drinks a night, a couple times a week, mid-week, and then on the weekends I'd really turn it on and I would binge drink, chug pictures of beer or I'd have Sunday afternoon mojitos with friends and wake up feeling on a Sunday or Monday or Tuesday feeling like hungover and going, oh my god. And then I'd go out and drink with colleagues or friends on a Monday, Tuesday night and I was like, am I an alcoholic? And I kind of broke it up into five types of drinkers. The occasional drinker, the social drinker, the binge drinker, the compulsive drinker, and then the addictive drinker, which is what you might term an alcoholic, okay? So these are my little notes here by the way. If you're an occasional drinker, it means that on occasion you might have a drink or two. Celebrating something, no big deal.  Social drinker means that when you go out with friends or family, you're drinking and maybe you drink a little bit too much, sometimes you get hangovers, but you think you've got it under control, okay? So you're not really an alcoholic then.    This doesn't necessarily mean that you're an alcoholic either, by the way. It just means that you're a binge drinker, but that's not healthy for you, I gotta say, okay? It's really, really not healthy. And then you've got the compulsive drinker. The compulsive drinker where it's like you get stressed out and you need a drink. You feel like you need a drink to relieve you of your stress. Again, this doesn't mean that you're an alcoholic. It just means that you're compulsive about drinking. If you feel like you need a drink to relieve you of your stress, okay, then we've got to look at that. But again, it doesn't necessarily mean that you're an alcoholic. And then of course you've got the addictive drinker, which is an alcoholic, which is what, like you need a drink to function. You know, like you cannot get through the day without a drink.  Otherwise you just, your life falls apart without it. Now look, just to be clear, I am not a doctor, okay? I'm just a guy who was between a social drinker, a binge drinker and a compulsive drinker for a number of years. And then I quit. I quit alcohol for 30 days and then I just stayed quit because I felt amazing. I lost weight, my skin improved, my relationships improved dramatically, I was happier. Everything about my life just improved dramatically when I quit and when I stayed quit. So if you are drinking heavily, like on the weekends and binge drinking and you're tired of being hungover, it doesn't necessarily mean that you're an alcoholic, but it does mean that you might want to reduce or quit alcohol. You might want to re-explore your relationship with alcohol. If you feel like you need a drink, like you have to have a drink and you need it to be able to function, please do consult a doctor and get professional advice. You may want to read my book. It's completely free, The 30-Day No Alcohol Challenge, How to Reduce or Quit Alcohol. There's a link down below in the about section that you can read that. Or if you don't do that, just look at ways in which you can break this addiction of alcohol, okay? Because if you need it to get through the day, then we've really got to look at that. But if you just drink a lot and you're tired of feeling tired all the time and you've put on a few pounds and you look weathered in the face and you're not functioning, your relationships suck, then maybe you might want to reduce or quit alcohol for a little while as well, okay? So I hope that helped you. You're not necessarily an alcoholic if you drink too much, but you might want to re-explore your relationship with alcohol, okay? If this was helpful, go ahead and like this and leave a comment down below. And if you want to get my free book, The 30-Day No Alcohol Challenge, which kind of teaches you just how to quit for 30 days. Afterwards, you can decide if you want to stay quit or not. You don't have to. You can always go back, but at a far reduced rate. Then again, just click the link in the bio below. All right, catch you on the next one.


Our last exercise that we're going to take a look at is borrowing money to pay for a home loan. And the example we're going to take a look at is an actual example that I went through with an individual just a week or so ago. To paint the scenario, they are currently paying $125,000 as a mortgage. They have 7% of interest and the length of their mortgage is 30 years. So over that period of time, they're going to pay a total of $174,386 in interest and averages $500 a month. Their monthly payment is $831. The question I posed to them was, instead of paying it monthly, suppose we would go back and pay it bi-weekly, which means that over the course of the year, I would make one extra payment. I would make 13 payments instead of 12 payments. Just that simple change, leaving everything else the same, reduced their interest to $129,000. Or just simply paying it every other week instead of once a month over the course of the loan, they're going to save a total of $44,000. But we weren't quite finished yet because they looked at it and said, you know, there's better money out there right now than 7%. So I called my friend at the bank and he said, right now I can get you an interest rate that is 3.7%. And she would end up rolling the cost into the mortgage, which has been negligible. But if I go ahead and just calculate that, her payment now goes to $578 a month bi-weekly at $289. And now she only pays $70,000, which means that over the course of the loan, she'd save roughly $104,000. And then we made one more change. And I asked if she and her husband, what would happen if we changed it? Notice we're paying $578,000 at 30 years. If I change it to 15 years and I go through and do the recalculation, the payment goes to $909. So I asked them if they could go that high, what would happen is the total interest they would pay would be $34,000. Or over the course of the loan, they would save roughly $140,000. So the issue became they weren't sure they could do the $909,000. So somewhere is in between 15, maybe we could play with 20. But I would encourage you that if you're in a home ownership position right now, we're considering owning a home, the minimum that you should consider is paying for this house bi-weekly. And also be very concerned about how much interest you want to pay because there is less than 4% interest right now. And depending upon your credit rating, you could get as high as 8% as a percentage rate because of your inability to pay. But the other thing I would caution you on is we use 15 years.  Look at what our payment would be at 15 years would be $909. So let's just make a mental note of that. But let's change this back to 30 years. And if I change it back to 30 years, my payment goes to $578. So it's roughly there's a $400 difference. But why would you ever want to consider doing it over 30 years where you're going to pay a little bit more interest than over 15 years? Well, what happens if you lose your job? What happens if somebody gets sick? So this would be my recommendation or an item for you to consider. I would leave my mortgage rate, my mortgage term at 30 years. But I would pay it at the 15 year rate if I could. I would overpay it and I would receive more interest. I would pay less interest. I would build up my equity faster. So that is a way to obtain an optimum payment schedule to reduce the amount of interest you're paying, but also to reduce the amount of risk should an unplanned, unforeseen item happen to you that might cause you to miss a house payment and might cause your house to go into closure. So again, this is available. I've got a worksheet. Can you click on the W at the bottom? There's a worksheet that's been who, what happened to it? There's a worksheet that is available that will list the different bank rates and stuff that is available to us. Click on one of those. They're pretty much self-driven. And as you go through your decision on how much to kind of afford, how much do I want to do, these calculators will help you to get there. And these are the only ones. There's other ones out also from other companies. So in conclusion, for our house mortgage, consider a couple of things. What's the lowest rate you can get? Pay your mortgage off by weekly if you can. In fact, if you wanted to, you could even pay it weekly. Just take your monthly payment and divide it by four and just pay that much every week. And you would again go through and reduce your rates. So go play with these numbers. See what they make sense to you, what makes sense to your family. And if you're looking to buy a house, make sure you use the mortgage calculator before you get there.


Okay, this is going to be silly, we're about 10 people here, so come to me, my children, or not. Yeah, it's cool. 3, 5, 1, 2, minus 1. Okay, I'm not funny, okay? Okay, I'll start by introducing myself, which is always a good thing, I guess, but before that I need to ask, was anybody here at my previous lecture a couple of days ago? No, cool, I can use the same jokes again. No, seriously, I don't have that many jokes, and they're usually bad. What you're going to hear about right now, I'm not really sure what lecture you came to because, if you know what lecture you came to, because I was just inserted into the schedule, there are some scheduling problems.   Others may know me as a nice guy, but not that many. I mean, there are not that many people here, okay? And that's basically it. What is DA? DA is a mailing list. What is MWP? MWP is also a mailing list. Now, we'll start with the boring stuff.  Now, I don't really expect you to answer me. One, two, three, four, five, six, seven, eight, nine, ten, eleven, twelve. You're not that many people, but seriously, does anybody here think there is a problem today with the internet? Cisco gate. Okay, cool. Yes, I'll answer it. Yes, there is a problem. Is it called botnets? No. Well, kind of, but no. We'll get to that. Now, I'm jumping right in, skipping a few slides, and what I basically wanted to talk about, which I'm not going to, is botnets.  Why?  And that doesn't make any sense to me, really. Boring stuff is, for example, like in any social structure, that's my belief, there are many different kinds of people, duh. And it's not just the bad hacker, the board employee going back home and doing whatever malicious stuff he wants to do, or she wants to do. There are the kiddies, there's the military, there are the criminals, everybody, different people. But still, to sustain such a huge amount of bad stuff on the internet, somebody has to get something out of it.  And I'll try and prove that, even though it's not really the point of the presentation. So where is the ROI? Where is the management talk, return of investment, on investment, sorry. Like I said, social structure, let's start with the kiddies. Are there any kiddies here? Ah, cool. Hey, kitty. Kitty front. Some of you may have read it a few couple months ago on Sons Maybe, or heard it from a guy called Don Hubbard, iframe-dollars.biz. Now, generally, whenever I see a dot-biz domain, I start crying or scratching or whatever. Seriously, biz domains are bad, nearly as bad as CX or WS or whatever else. I mean, seriously, I just see dot-biz domain and I start crying. Areframe-dollars.biz was a business, plain and simple. Some guys said, hey, let's make money off the internet.   I can't use the same jokes again. Shit. Damn. Okay. Now, iframe-dollars.biz basically said, okay, come into my website, take this code, iframe, I think it was, and put it on your website. Now, for every first click, every user that goes into your website and installs our spyware or whatever it was, you'll get money. You don't get a lot of money, you'll get $0.06. Now, they claimed, you're eating. Bitch. Okay, they claimed, if I have one more bad pizza, I swear I'll puke. They basically said, look, take this code, put it on your webpage, whenever somebody comes inside into your webpage, you'll get $0.06, which is cool. Now, they claimed to pay the week before we saw them $11,000 for that. Now, that amounts to about 220,000 clicks. Again, they claimed. Now, we actually found their statistics page, and yes, apparently they did pay 220,000 people did get, first of all, installed software on their computers, and they did pay $11,000 to people. Now, $11,000 is a lot of sum, but it's not that much money. Now, there is another guy, I would like to give you as an example, and I don't know how to pronounce his name or nickname or whatever we chose to call him. It could be Flowby, it could be Flowby, depending on where you're from. Now, this guy is a botnet controller. Just so we are clear, I'll explain in a couple of lines what I believe a botnet is, and if you think I'm wrong, tough. Trojan horses. We all know what Trojan horses are, I'll repeat anyway, and again, you can argue with me all you like. I don't care.  God, he doesn't care. It's on the record. You can't speak if you're not drunk. That's it. Is that beer? No, it's Rockstar. Okay, Flowby, or Flowby, was a botnet controller, and again, Trojan horses, let's say it's some sort of software or hardware or whatever, some sort of thingy. If a user knew what it would do, it would not be so pleased about it. Let's put it that way. And it's usually a remotely controlled device or whatever installed on your machine. That was the worst explanation of what Trojan horses ever gave or heard for that matter. Now, you can do whatever you like on a machine where Trojan horses have been installed. You control that machine. Now, imagine if you had 10 such machines where you installed Trojan horses. Imagine you had 100, and they were on the broad button, of course.  Well, you would have to control them somehow, and that's basically a botnet, because these drones, bots, whatever, will be reporting to a center point, which is the command and control server. Now, this guy owns many botnets. And on one of the botnets, we can't really prove that we've seen it happening with many different cases, and it's just very easy for me to give it an example. And one of his botnets, which was 35k large, 35,000 bots large, he decided, hey, DDoS is not good enough for me. I don't want to spam. I don't want to DDoS. There is a lot of downtime from a bot, and I want to use that downtime. So basically, what it supposedly did is install a lot of spyware on every single machine. Now, a legal calculation of a page we believed it took the spy from would mean that it gained about 8k a day from a small botnet. So that's the key difference, 8k, 11k, whatever. Now, the big picture.  Seriously. We do not see what's happening, and this is definitely, I don't need to explain it to you, because half the lecture is here about conspiracy theories and how the government is spying on us and all that. But we can't see some of that. It's in plain sight, it's in plain sight, it's public, and between a lot of beers, you might actually notice it. I was just looking at you, I didn't mean anything by that. There's plain sight spying by government? Yes. Now, when you see phishing, which is in plain sight, is a little bit ranked, or I'm just not very well understood, which is possible, or likely. You're not implying governments are running legitimate botnets by putting spyware on people's machine? You're unto me. I work for the government, you know. Okay. Now, phishing, seriously, phishing gives us a very, very good picture of what's going on. Phishing is public, you get it in your inbox, you can go to the sites, you see what's going on, which is great, and we can actually see the amounts of money that goes into it, and we'll show you in a minute. And then there are a few minor details, such as, for example, the Trojan Horse Industrial Espionage case, where there were some private investigation companies and some very rich companies that wanted to spy on their competition. So basically, as far as I understand, they paid 17k U.K. pounds per computer, which is a lot of money. So there are things going on behind the scenes. Some of them we can actually prove, because we hear about one or two every year, but let's actually look at what we can see day to day. The APWG, the Anti-Phishing Working Group, says they saw over 13k unique phishing emails in March 2005 alone, in thousands of phishing sites. Now, people usually say, and I'm going to be kind of, okay, we all know this, this guy, okay, they sent so many millions of spam messages out, and then just one person clicks on it and fills the details in. Well, one person clicking and filling the details is clear cut return on investment because email doesn't cost money. We all know that, but it's very important to reiterate that issue. Now, let's give some statistics. In Germany, for example, every phishing attempt, 2000 people fill in their details. Now, that number keeps rising.   Now, of them, about six do not get their money back. That's because the banks are very good at moving money around. Money is totally no problem, but six do not get their money back, or rather, the banks have to cover it. Now, on average, that amounts to about 6k euro lost per person, 36k euro for every attack. Now, per year, that's 1.2 million euros, and that's just one group. Each group's attacks are used to attack once every eight days. Now, they do it a lot more often. Quite a few groups out there. Can anybody see the ROI, the return on investment? There is a lot of money going into this now. The Russian mob, and I have to say this again, I always say it in my lectures, I have nothing against Russians. Seriously.  But really, nothing against Russians. But most of this stuff, there's a lot of small operators out there in Eastern Europe, in Brazil, all around the world. But most of this stuff comes from the Russian mob. Clearly, from the Russian mob. I'll say it again. Hold on. Hold on. I'll answer every question, and if not, hey, I'm on tape. The Russian mob sees the return on investment. Okay? Okay? Cool. And they actually invest in the technological and operational capabilities over time. There are people sitting here who actually watch the binaries and the samples and can tell you how they evolve over time. Now, many of these kiddies just, like I said, it's social structure. It's not all the Russian mob. Many of these kiddies just trade it like candies. They trade these samples like candies. And most of these Trojan horses or bots or whatever, are just the same code, ripped from one another over and over and over again. But still, it's important to note that, and I'll give you an example. Here in the States, this just came out a few months ago. In the States, there was a phishing attempt. It's a phishing attack, actually. And somebody's account got emptied in a branch of the bank on the West Coast, in the West Coast. Now, a week later, a FedEx box came in carrying a fake check, which is what actually got people to look into it, to refuel their account so they can empty it again.  So basically, you get the lecture in a minute, so don't disturb. You're not allowed. You're not drunk. Now, I'm very happy that you came. Now, I really am happy that you came. Basically, what that means, people, this is not cyberspace anymore. This is meat space. This is happening right here, right now, with real people and real money. That's critical to what I'm going to talk about. Now, at the UK, the last example, the losses are also significant. 1.4 million pounds a month in losses, just at the beginning of this year, and it jumped by 1 million every month. December, January, February, March, you got to 4 million pounds lost. Now, don't take my word on these numbers. You won't find them anywhere. As far as you're concerned, I'm lying, okay, because I'm not going to prove it to you. And anything I'm not going to prove, just believe I'm lying, but these numbers are true. Now, this is why I'm lying. Now, this is by fishing alone. There is a lot of money in this. I'm saying it again. I'm repeating myself, and there is a reason for that. At the US, the story is a bit different. One bank, okay, they say they used to see about 200 victims per scam. Today, they say they see about five, but come on, people, banks, at least in the United States, in the UK, they can't, as far as I know, the ever legitimate reason to actually try and underplay the problem. I mean, do you have any idea? I don't have any idea, by the way. Do you have any idea how much of all their business goes online? How much of any business today goes online? Depending on the bank, it could be 50 to 60%, everything, everything. Again, I don't have hard numbers, and it changes drastically from bank to bank. I don't want to talk about it. I really want to answer that. I honestly don't have time. I know I'm kind of weenie for saying that, but I honestly don't have time. Sorry. Now, other banks actually reporting losses of around 10 to 20 million dollars, but again, don't take my word for it. The Germany numbers, I can sign on, and they're not anywhere you can find. Now, the problem is not botnets. Again, I didn't really want to make this a botnet lecture, although I can't speak about botnets for hours on end. Botnets is the very serious symptom, a very, very serious symptom. It's a problem, okay? Actually, I keep using the same jokes.  Why were you in my last lecture? Can't you reuse jokes? You're hoping it was funnier. Okay, I know where you live. Okay, I don't. I can find out. Okay, then... Never challenge someone from the Israeli government to find out where you are. The Mossad! The Mossad!   I immediately photocopied it. Ask for another one, put it in my pocket. That's so great. I'm for the Mossad. Watch out, I'll send people after you. Quads, quads, right? Okay, I don't have time. The problem is not botnets. Botnets are a very serious symptom. What I'm trying to say is botnets are a serious problem. I can tell you from our limited view, and we see quite a bit, but again, we don't see everything. We have 4,000 botnets out there since the beginning of this year, as in command and control servers, and that's just a little bit. I mean, people keep looking at the bot itself, the Trojan horse installed in the machine, and they keep asking me, how many bots are out there? And you know what?  Seriously, I don't care how many bots are out there. Some people might have to care, but I don't, and I'll explain why in a few minutes. Now, okay, I'll explain why now actually, and wait some time. Why? You people who live in the United States, or most of you do, you know about this thingy of asking, why be able to destroy the world a thousand times over when once is more than enough, right? Well, botnets on the internet are strategic warfare. They are nuclear weapons, and the amounts and numbers out there are unbelievable. Now I can tell you that we've actually seen a 350k botnet, and it wasn't the only one. It's just the best example I have a few months ago. Now, when you have that big of a botnet at your control, you can do pretty much anything on the internet. Now, I'll continue with that in a minute, but really looking at the botnet as a problem of botnet itself, the network installed some bots separately is what I'm talking about. Now, the philosophy of the problem, why I'm looking at botnets as a symptom, okay, I can't say problems, seriously, this is a joke I must reuse. I'm sorry, it's not really a joke. I was sitting with the guy from Adobe, or my boss was, I don't really remember. I reuse jokes all the time, and the guy would refuse for two hours to say the word problem. He would say challenges. For two whole hours I just heard, or he heard, challenges, challenges. And now they changed it, you're supposed to say opportunity, opportunity. Anyway, so there are several challenges. Let me get to the point.  Why say they're just a symptom? Let's start a little bit about our philosophy of the problem. The internet. Photomorphic monoculture.  Everywhere, it's Windows. And that makes us extremely susceptible to attacks. And I don't have time to talk about it anymore, but just think about it. I'll waste some time later. Now, one bug or one patch can bring us down. Repeating past mistakes. When we left the world of the mainframes, OS development somehow sink down to a new level. And just now we're starting to reach the level where we were with the mainframe in OS development. And I can actually see it as a pattern of things actually repeating themselves nonstop. The PC wasn't the end of it. For example, cell phones. Everything is in default. You can't disable anything. Everything is in automatic. Java, browsers, whatever. Unbelievable. We keep repeating the same mistakes over and over again. And that brings me to killing fires. And before I reach killing fires, I would like to discuss the problems of the internet. We'll get to Casey and who she is in a minute, but everybody keeps saying at the end of the years that companies like Symantec, they do a great job, but they come out and say something like, look, these are the problems that we are going to face in the year of 2005. Okay, great. How do you know that? Well, we have looked at our past genders and logs and histories and we can tell you what we believe the issues are going to be. Okay, so basically f of that is what happened last year. Almost another f is what you believe is going to happen, therefore you're self prophesying or whatever you call it. Some of it will happen and some of it will happen. And some of the stuff will actually surprise you because you can't know what everything is going to surprise you. It's going to be. And I'm saying something different. The problems are out there and we know about them for many years now. Many years. And let's take for example spam. Are you interested in my talk at all? I am. You are? I believe you.  Not drunk for the first time on video.  Predictions.  I love this guy. But he gave me such hell when I asked him to come and help me in my lecture. And actually, yeah, but I don't need you now. Yeah, I'm going to talk now. Yeah, I'll tell you about the superbugs in a minute. I'm still wasting time. Okay. What was I talking about? No, seriously. Predictions. Predictions, okay.  The problems have been around for many, many years now. Now, let's take spam as an example. Yes, tell them we love them. I want that phone later on. It's mine now. The problems of the internet have been around for many years now. Let's take spam. I'm going to completely ruin the history of spam. In the last lecture I met, there was a guy from Spam House here and he wanted to kill me, but it's cool. At first, we didn't really care about spam. Seriously. It's just some emails you get eventually here and there once a day. And you found a good solution for it, too. JHD, just to do it. And it worked. And then it got a little bit more annoying as somebody started working on it, but nobody really cared. Nobody wanted to put the money into it to get rid of the business or at least try to. And then it got to be a problem. Then everybody started caring about it. And then I started finding solutions. And like any human society anywhere, they said, I have to be elected into office. I mean, this is not really it, but seriously, long-term solutions are not part of the business here. It's part of our culture.   That solution was, for example, Bayesian filters or Fs, Bayesian filters. And if we see, for example, Viagra within one instance of an eye, all these evasion techniques that bad guys came up with, that's cool. I mean, seriously, we used some Fs, Bayesian filters like bad guys learned and started using one instead of eye. Then I started using mail relays. Again, it could have been the other way, but I don't really care right now. And we started using blacklists, like maps. And then I started using zombies and they can email from all over the world. Any time we actually killed the fire right now, get rid of this problem right now, what we actually accomplished was, hey, we are teaching the bad guys. We're educating them. We're throwing them into an evolutionary route that we are not choosing. We are making things worse. And I can tell you, it's the same with botnets. It's the same everywhere. And that's what brings me to the superbug theory. Now, superbug is not a new theory. I mean, doctors really liked antibiotics. You had a flu. The flu, they gave you antibiotics. You had a cold. They gave you antibiotics. And what they actually did was create some sort of stronger bugs that could resist antibiotics. And they kept doing it. And that brings me back to monoculture. Everything is windows.  They've been out there and getting worse. Eventually, they get so bad that we have to kill them right now. Every time we do something like that, no matter if it's terrorism, no matter if it's botnets, no matter if it's spam, we just kill the problem right now. I'm repeating myself. I know, but it's important to me. And make it worse. Educate the bad guy. So the superbug theory is where I wanted to get to. And that's why botnets are not really the problem now. Who is the enemy? I keep speaking of there are bad guys out there, fud. I'm not giving any facts. Well, it used to be a rival or an opponent really, not really an enemy. Because I'll give you an example for the dynamic DNS providers. Dynamic DNS providers are really, really good for the bad guys. They can run botnets using DNS really easily. They tell all the bad bots, connect that address. Then when somebody kills the server, because that's how you deal with the botnet, you kill the commanding control server, which is bad because then the bad guy just moves up to another server and starts investigating and educating themselves and getting to be better at it. Again, superbugs. But basically, when dynamic DNS providers are perfect for them, they go online, they open a new account, they get some free DNS, free domain, free whatever, and just point the botnet over there. That's basically how it works. And the dynamic DNS providers, one second, dynamic DNS providers really suffer. Because imagine 100,000 bots, and bots are not very nice internet users. They just keep asking the same question, how do I connect over there? Where is that A record? And they really weigh down on the dynamic DNS providers. The dynamic DNS provider says, okay, this is a botnet. It's in breach of my acceptable use policy. I will map this botnet address to 1980 addresses, localhost, whatever. And that's acceptable to the bad guy because it says, hey, I've used the service, but I need it again. They found me out. I'll just use it again, re-register.  So far they've been contesting for the same resources. They live in the same realm, but don't really come to combat, open combat. But what if the dynamic DNS provider says, I'll sink all the botnet.  I'll take the botnet away from the bad guy. The bad guy gets pissed. And that's open warfare.  That makes it an enemy. And why I wanted to stick to this point for a minute, which is not really related to the lecture, is because this is an enemy to the infrastructure.  Seriously, who cares if the infrastructure survives? And I try a lot and I can't really find the people yet, but the infrastructure is at the serious risk.  Okay, whatever you do at home, whatever you're having fun with, that's cool.   And that's fud. That's FUD. That's fear, uncertainty, and doubt. And I didn't want to say that until I could give you some facts. Now, what do we do about it today? Yes, it depends. It could be tens of thousands of dollars a week, it could be millions, it depends on who you are. Okay, the question was why are you relying on dine DNS for something that is critical to your infrastructure when you make millions? You don't rely on only dine DNS, but when you come, I don't have time to cover it right now, but just think about why do botnets use IRC? Seriously, why use IRC? It's perfect for them. I mean, I don't have time to cover it because this is not a botnet lecture right now, but something does not have to be extremely complicated to be good.  Ignore everything I just said, please. There needs to be legitimate services that are using that particular host that it would be a problem if you just killed it entirely. If you go ahead and you put a colo somewhere and it's, you know, the CNC and it's the DNS and so on, pull the plug on it and you've just killed illegitimate services. The idea is to mix the illegitimate botnet with the legitimate dynamic DNS, and that's why they do it. Amen to that. Next issue. And thank you to Dan Kaminsky, who is not drunk.   Come on. Hold on, we'll get to that. Now, what do we actually do about it today? Okay, first of all, there are vendors. Anti-virus vendors, anti-spam vendors. Let's even say ISPs, okay? Vendors, a lot of vendors who try to give you solutions. Then there are more vendors who try to sell you stuff.  Seriously, there are companies such as Message Labs, Maps, Spamhouse, companies that really do good for the internet. They're still vendors. And they look at their small way of making money and if they can do good with it, that's cool. Then we have research funds and research in general, such as the NSF, Army, Navy, DARPA, whatever. There is symptom-based response. For example, hand spam, okay? The FTC recently came up with something that they claim will report to every ISP, or they will report to ISP the bots. Again, the bots are not the problem. Some are concerned and any infected machine will have 10 more bots on it at least. But the botnets are the problem. But say they will report the bots. So what they do is look at emails, spam emails, and find the zombies that send them. Now, out of all the numbers, out of all the drones and bots out there, how many of them send spam? A lot, but not quite that many from the whole, the entire of the botnet population. Now here I have to discuss the botnet population, how many bots are actually out there, because that's what people keep asking me. So I'll make this quick.   And that's what botnets are. But if I have to answer the question, I'll discuss research that has been happening and related for quite some time now. How often, or how soon, when you start scanning the Internet, when you put the machine on the Internet, will it get scanned? A few years ago it was put the machine on the Internet, it got scanned 36 hours after that. A couple of years ago I checked, and depending on the ISP I checked on, I got scanned once every two seconds to once every 20 minutes. Kevin Mitnick, I believe, made some check and got around the same conclusions. On the site and the sites, the Internet's availability time is about 20 minutes, or something like that. It keeps coming up and down. So basically, say it's not every two seconds like at my house, okay? Say you actually get scanned for the easy vulnerabilities automatically by viruses, worms, whatever you want to call them right now, hacking tools every 20 minutes, once. Now, on broadband providers, out of all their clients, how many would be easily exploitable? Now, when you get to the potential population of that, and how many bots you can get installed on one machine, because basically I count the bots as how many samples are installed or working on each machine per IP address, per machine, you get a huge number. Now, if you wanted to count it another way, say you've seen cold botnets, and that's not my research that somebody else has. Say you've found botnets and you followed them, and you checked and saw that several botnets have the same IP addresses coming back. Again, they're time of day issues, DHCP issues. Sometimes you see a Linux machine and then it's a Windows machine. But you actually see IP addresses returning. If you take that cut between the different groups, you may try and get to the point where you see the entire Omega. This is David Dagdon's research at Georgia Tech. Now, he says, by the limited research he has done, he's seen about 20 million bots, I'm sorry. That's nothing. If I had to give a number, I'd just say 40 million, but that's nothing, people. Seriously. And why would I care about the number?  Now, another issue, and symptom-based response crew at the FTC came up with this issue and said, report bots to the ISPs, not bots and bots, and they're reporting the spam bots. They're reporting the symptom of the symptom which is the zombies that send out spam. Great. A for effort, that's about it. I'm glad they're doing it, but it's nothing. Shoot the customer. I really like that. I want to shoot the customer seriously. Blocking port 25 is one of the best things out there that can be done to stop spam. I hope Larish from Spam Els will be here again to explain that. But basically, loss of end-to-end, blocking port 25, blocking all these ports. No matter why now, or if it's a good or bad idea, it's shooting the customer. That's how ISPs are dealing with it. I'm not saying it's bad, I'm not saying it's good. I actually like it, but it's shooting the customer. That's how we deal with it currently. Now to business, why DA? And as we said, DA is a mailing list. Well, it gives us community and industry involvement, basically. I'll discuss what it is exactly as I go. You see the antivirus industry, academia, dynamic DNS providers, law enforcement, ISPs. There are other groups out there that work on the problem, and I'll discuss them in a minute, but none of them have the scope. I'll continue in a second. Long-term study and research. Killing fires is bad. Walking mall was bad. Today, when you actually kill, but it not just jumps to the next IP address, the next compromise host, they actually learn from it. They become better at what they do. It's bad for us. Long-term research study is critical. R&D, ways and means. Finding new solutions, following technological, operational evolution by the other side. Doing all that and still maintaining the vetting, and vetting does not mean secret NSA club where nobody can enter, hey, I'm lecturing in DEF CON for very few people, but still lecturing in DEF CON. The point is getting as many people involved as possible who care about the infrastructure and actually having the internet around. Now, this is not easy, but it's critical. Now, what does that mean? What can we do that this closed group of ISPs can't, or a closed group of antivirus gods can't? Antiviruses care about signatures, libraries, which is great. That's their business plan, model, whatever.  What do we do? First of all, we can do trace back. Okay, tracking down the botnet authors, controllers, whatever, creating intelligence database on who they are. Actionable intelligence, law enforcement cooperation. Get the intelligence, give it to law enforcement. Law enforcement does not care. What do I mean by that?  And not because they are bad people. Actually, it's the opposite. Law enforcement cares. They can't do squat. We see a very large increase in their caring in the recent year, especially. They want to do good, but they care a lot more about the murderers out there than they should. They do not have the resources to invest in this. Plan simple. And it's not really their fault. It's policy. Policy from upstairs that dictates this. And I can tell you we have somebody who actually knows from his hard work who the bagel author is. And he gave them information. He gave them pictures of the guy. And they didn't do squat. Shit. Nothing. So, again, I love the guys in law enforcement, and they are trying, but they can't because their hands are tied. So we can't count on them. Sorry, but that's the way it is. Now, reverse engineering, working actually on the samples rather than just the networks, IDSS, flows, whatever, shows us where they are technologically. What they can do. We can find the buttons better. And it's cool. Financial trace back. If you work with law enforcement or the financial industry, you see phishing. You can actually trace back from all ways, not just on the network, not just on the sample level. Financial trace back. See where the money is going. Which is basically the only thing the feds knew how to do with phishing until very recently. Cooperation. That's a critical part. We have to work together to see the big picture because everybody is an expert. But nobody, except if you work together, can see the macro level image. Seriously, we'll talk about Casey in a minute, but she says, for example, the research community is looking for ideas on what to research. The industry needs solutions and nobody is talking to one another. Now, DA and DA related project, again, DA is a mailing list because we had to start somewhere and that's where we started. Carsnet. That's David Dagon from GA Tech. He does amazing work to study botnets and he can't find funding. The bad guys have millions and he can't find funding. But, that's a database basically for us to follow everything, gather information. Pretty cool. Snort for ISPs. Rather dead project right now, but we're working on it. Getting signatures out to detect botnets not bots. Passive DNS application is critical. I do not have time to talk about it. I'm sorry, but it's critical. If you want, google it. AS based reporting, getting the reports out to ISPs. Monthly shaming.  We need to shame them and we are actually managing to change the map of the internet every month. But, basically it's, okay, we managed to get that ISP to work with us, which means okay, the botnet controls are going to run to another ISP now. But we change the map every month.  We are not sure how to handle that yet. There are some parts of the world we can't reach, but we're working on it. And I'll get to that in a second. Then there's granics. You'll hear about that in the future. I'm not going to talk about it. Drone armies, at least I think so. I have no idea. Any Harry Potter fans here? No?  Now, MWP is another mailing list. We had a lot of off-topic posts.  But it's a community. It's not completely operational. There are other lists that are operational. Spam it malware sites. You spam it via email. It's malware. We'll take it down. Captures, okay? There are many other companies that see these files online. We'll find them and we'll take them down. Now, I'm not supposed to say kill the site, but that's what we do. We do it legally, which means in lawyer talk I would prefer to say something like, we find the data, collect it, give it to the respectable authority to review and to review, investigate, and validate or whatever themselves and then proceed according to their acceptable policy or whatever.  Now, worm propagation site takes down. For example, if there is a worm in download samples, updates, whatever from some site, we'll take it down. We'll stop the worm from spreading. Fishing sites take downs. We don't do that anymore right now. I'll explain why later, but we still follow it very, very closely. Global law enforcement coordination and tracking of fishing groups. Law enforcement can work together very good.  Seriously. And we have managed by giving them the actionable intelligence that they don't have. We managed to get several law enforcement agencies around the world working on taking these guys down because they make money. We can stop them from moving the botnet or the fishing or whatever to just another server by changing the economics and make it not worth their while. That's basically it. And fishing on a net. We want to gather all these fishes, companies such as MessageLabs, Spamhouse, all these guys. Send us the fishes. We'll report them to ISPs. We'll get the shelf life of a fishing server and ask them later. Sorry, I got five minutes. I'm serious. I'm sorry. Other projects. There are other lists out there, other projects. For example, NSP, SECFRI, SP's to Work, you can Google it. The ANINET project, they don't want to work with law enforcement. They're peer researchers. APWG anti-fishing working groups in the United States and APEX in the UK.  I have high hopes. Microsoft, people. Microsoft is doing a lot.  That's what I believe their motives are. They're hiring a lot of people. But whatever their motives are, they're not really hiding as far as I see it. They do a lot of good. They actually do something. Now as far as I see it, the stakeholders so far that I've been able to find, I'll get to Casey first, I'm sorry. Internet governance, you might have heard Paul Vicks' lecture.  And the point is we can go lower in debt, it's trust. For example, nothing prevents me from going down with a 5 kilo hammer or kicking the nuts or killing, basically. In real life, okay. Dan, my glock is at home. No, seriously. You guys are watching me. There are laws, there is fear. I don't know what's stopping me from doing that right now. But that's mid-space. On the internet, nothing stops me from doing that. For example, when people threaten sites for take down, 10K right now, I'll take you down. In real life, especially in the States as far as I understand it from movies in Hollywood, protection money is really good. Works really good.  And you might pay him or he'll set your store on fire. Now once you've paid, it is likely that the guy won't set your store on fire. Further, if anybody else comes to you and say, hey, pay me or I'll set your store on fire, this guy will protect you. On the internet, they say, okay, pay me 10K right now or I'll set your store on fire. How do you know he won't? First off, it's the internet. Second, he can't stop anybody else from doing it anyway. And the point is, if I meet somebody online, say from Korea or Japan, he doesn't know me, I don't know him. Why would he trust me? Why would she trust me? No reason. They may be the bad guy that's trying to take me down. Would I share information with them? The bad guys are sharing information, making money, everything. We do not share information. We do not get things done. Now if we don't get a way to cooperate and get things done, somebody else will find a way to do it for us. According to Casey again, I'm misrepresenting your ideas. That's as to be clear. But as far as I understand their ideas, every network in the world ever built, transportation network, whatever, somebody came and made some order. That somebody was usually or always the government. Do we want the government, your government, my government to come in and try and make the internet fold in place? They're already trying, that's as far as I can see. Here in the States, everywhere. And I doubt they'll succeed. What I see, basically, I'm not worried as Casey is. I believe it will either be Microsoft or the Mob, the Russian Mob. Now you can quote me, that he said the Russian Mob and the Microsoft. But seriously, these are the stakeholders right now. They make money, and Microsoft and the Russian Mob. Exactly. Thank you for asking that question. Now, I love Microsoft. Seriously, they're doing a good job out there. I don't know why they care. They may have their own ideas, but they're doing a good job. They're the only ones. Now, cooperation, trust, just getting things done, basically. We need to solve these problems.  We have many projects. Maybe you have some ideas, too.  But still, get involved. If you believe this is important, I do. We need help. Yes, I'm coming to DEF CON, and I'm saying we need help.  Then, and you will be able to answer your questions instead of me or with me. Go farming. What about farming?  I mean, they're good guys. They're good guys, the ITF, but they suck. I mean, seriously, how long have they been dragging their feet on DNS Sack right now? 15 years, 11 years? You answer that. DNS Sack is an interesting scene. Farming basically gets into the idea of attacking the infrastructure. Really, though, when we're already talking about botnets at the size of a quarter million to eventually multi-million infected hosts, the endpoints are getting owned, en masse. There's a thing called a Byzantine problem.  And there's ways of organizing the networks so they can go kill the generals that turn against you and such. There's a critical mass of hosts that if they're on your network and they're bad, you die. And, I don't know, is it 250,000? Is it a couple million? Is it 50% of your customer base? Eventually, online banking is really going to have to start accepting the possibility that too many of its customers are actually not its customers, but are coming from corrupted hosts. Already, if you go to Kinkos, you will see, they say, please do not use online banking. Or at least they say, please do not use anything with personally sensitive information. This is a result of a case in New York where a Chinese immigrant actually put botnet or Trojan code on all of the publicly available hosts. So there's a couple of things that I wanted to say, because it's going to be on film, and I'm going to be able to say, hey, I totally predicted that. Last year, like I said, the botnet control data right now, DNS directs you to command and control servers. Eventually, they're just going to put commands in the command and control servers. At the scale of when you have all these machines, they can stop saying, okay, I want you to take everyone on this bank and send money, send all the money. They can start doing really intelligent things. When you have multi-million nodes broken into, you can say, let's find everyone who's sending money to everyone else. Let's build a graph and let's find out who are the people who are receiving money from anyone. In other words, all the stuff the bank does to find fraud, the fraud people can use to find targets. So I want to have your baby. I want to have your baby. So, no, I mean, the canonical attack becomes, okay, I find one guy who receives money from 10,000 different people. I put a tax on every transaction of, say, 1%, 10%. I hide the fact that the tax was applied because I control the interface on everyone. The money moves over to the guy. The bank thinks it's normal because the bank's always seeing money move and the guy never actually gets any extra money because he gets his account drained of the extra money. These are the kind of threats that really happen when every single, you know, enlarged numbers of end points are broken into and it stops being about a couple thousand here or there. This kind of stuff is going to happen. And, you know, I don't know if you guys know this, the financial network is kind of converging on sending money instantaneously when all of the security stuff is really saying, hey, slow down. We need to check. We need to go back. So it's a real question, what is going to happen to the speeding up of the financial system? And it's a real, real question, are we going to be able to do online banking with personal computers in a year and a half? This botnet stuff that Gotti is doing every day he does what he does is another day we can use online banking. That's enough. Now, online banking is one issue. Basically, we need to work together. We need to find solutions. We need to get things done because we use the internet no matter who we are.  And with that, I'll take another question and finish because, yes, I am with Demosad and I'm going to send quads after you. I do send the quads after them. If you watch the MI6 site, by the way, I just heard it last week, you will actually see that they say, mess with us and we'll mess with you. MI6 people, they're cool. It's not just in newsletter. It's a whole effort of trying to get things done. So contact me. You have my email address. Gotti at certgovayeroge.linuxbox.org. Contact me. Talk to me. We need help. That's it. Thank you.


Hi guys, welcome to a new vlog. Man, the first vlog of 2020. Guess what we're doing, guys? Guess what? We're going to Epcot, I think. It's getting later in the day, but I think we're gonna go. It's pretty chilly out. I'm gonna change, but I wanted to show you my outfit. That's the whole reason why I pulled out the camera right now to start the video. I'm wearing this little cute outfit.  Also, I put the Gucci bag down there just because I thought it made good room decor. I absolutely love this, but the unfortunate thing is there's tiny little holes here. This is not warm at all. When I move, I can feel the air go through, so that's why I'm gonna just change. Probably take off the belt and just put my oversized sweatshirt on, the one that says Disney, and it's yellow because I got that for Christmas. I think it'll be really cute. It's supposed to get pretty cold later tonight, so that's why I'm just gonna change. Yeah, so I just wanna start the video, and I hope you guys are having a good new year. I know that there's some crazy stuff that happened this past week in Washington and everything, but I try to keep everything super positive, just so you can have some entertainment. So yeah, I guess I will see you guys probably in the car when we get ready to go, or when we are on our way. Okay, so we are on our way to Epcot Valor's Interrupting Me, like, formal. Do you always carry your ticket with you? I always carry my ticket with me. Me too. I keep it formal. I always carry my ticket with me too. She is very looking a lot stylish, that makes no sense. She's looking stylish with her fedora, homeless person jacket, and my grandma's jacket, who's now dead.  Hangin' out.  And we're gonna see the other mother. Yeah, after she gets off at work. Hopefully I'll get some good footage. Like, last time we went to Epcot, I didn't get, like, any footage. Oh, I'll make sure you get good footage. No, I know. Valor is a pro. Okay, so we made it to Epcot, and I can't wait to see the new fountain, cause they've redone it a little bit, so I guess we'll go over there first. I kinda wanna get a picture. Hopefully I'll get a good one. Thanks for visiting us today. Oh, the announcement's comin' on. As you all may know, or may not know, it is the Festival of the Arts at Epcot. This is one of their festivals. I think they only do a festival, like, every so often these days. Like, there's always one going on. Isn't that right, Valor? That's right. Valor wants to get a picture here, so. Oh, and here's her jacket that she's wearing. The Where Magic Lives jean jacket. So, this is the giant fountain. They put this glass thing with the new logo of Epcot. At least I think that's the new logo. Don't really know for sure. But overall, it's so cute. Very, like, modern. I really like the glass in the way it's, like, shaped and everything. So, I'm glad I came to see this, because I saw some Instagram pictures of it. It looked pretty cool. Okay, so right now we're going to the Disney Vacation Club member lounge to visit Sherry. So, we're just waiting for some people to pass right now. Hi, everyone! Yeah, they're Sherry and her element. There's this cute little, like, art piece for photos here. I think that's adorable. I just had to film it for you guys. I was kind of awkward when, like, other people are, like, in the shot. But I just want to show you guys, because I thought that was cute. I didn't get a photo there. I did, however, get a photo in front of the new fountain sculpture, so that's cool. It came out pretty good. One really cool thing about the arts festival is obviously the artwork. So, over here we have tons of paintings and stuff. Valerie, say it again for the camera. I have a baby Yoda fetish. She really does. So, she needs to see this artwork piece. Valerie's just a little obsessed. Aww, baby Yoda. All right, I want to show you guys. This is kind of like the last one I showed you, but for the festival of the arts, they have these paintings where you can go in and, like, take a photo. I think that's adorable. It's very creative. Oh, wait, here's Valerie. Get in there, Valerie. Wave to us. Oh, you blend right in. You blend right in. We're making another stop into the art gallery here. And we're gonna look at all the pretty paintings. Ooh, this one has really good detail. Wow. Valerie loved looking at this stuff. Which one are you looking at, Valerie? I think over there, it's too sad looking. Oh, it's baby Yoda and a cradle. Yeah, he looks a little sad in that one. All right, Valerie, explain to us what you're eating here. I am having what they're calling a sushi donut. Basically, got tuna and shrimp and salmon. Yeah, I'm gonna eat at the land, living with the land a little later with Sherry. But this is basically like the sushi trees that they had, but it's just shaped like a donut. Had to capture this because I think this is just a beautiful shot right here. This is Italy. Got some construction going on over there, but oh my goodness, just beautiful. Gotta get a beautiful shot of Germany. They still have their decorations up. Okay guys, so I got my giant pretzel in Germany. And the funny story about this was one time we were walking and I dropped it. And this lady goes, where did you find that? And like my whole pretzel was on the floor. Valerie and I have to go laugh at that. That is some pretty cool work right there. Oh my gosh. Okay, so we've come into the land now and we're gonna eat at the Garden Grill. I think Sherry and I are going to. Valerie already ate, already saw that. So yeah, I just had to update the vlog. We're just sitting here waiting for Sherry to get off work. All right, so Sherry is here. We are not going to eat here. We're just gonna go home, I think. It's so cold. It really is. Yeah, so we're just gonna go and then eat at home, I guess. Sounds like a good idea. But can we just take a moment and look at how gorgeous this is. So freaking pretty. The sculpture, the glass piece, so pretty. The fountain changes colors. It's so cool, so pretty. Oh man, you can't see us, never mind. Okay guys, so I'm just coming on to you in the video. I hope you guys enjoyed it. I hope you all liked seeing the new fountain. If you did, don't forget to subscribe. Give this video a thumbs up and I'll see you guys in my next video. Bye.


So, welcome to my version of the December Daily. For December of 2020, I decided to do my version of a December Daily, which was less of a daily Happy Merry Christmas journal, which is, I think, what a December Daily is, but I could be wrong. I really, to be honest, haven't done a lot of research into December Daily. I just know it's a term that's been bandied about for years. I am, despite the fact that there's a million videos out there, I don't think I've ever watched any one of them. And I am in a December Daily Facebook group, but I haven't really, other than joining it, I haven't looked at it at all. So, correct me if I'm wrong, please feel free, but be nice. But for my version of a December Daily, I really wanted to focus on current world situations and try to make the best of something that totally sucks, to be honest with you and Frank. So, you know, this month in 2020, we can't see our families like we would like to. We can't do things the way we're used to. You know, I can't see my parents who are only an hour and a half away or my niece and her son and she's got a new baby on the way. I haven't seen them in a year, any of them in a year. My other niece, Megan and her wife, Tiffany, I miss being able to hug them all and have dinner with them all and that. And we haven't seen my mother-in-law or my brother-in-law and his family in California in over a year because of what's going on. So, normally in December, we would be traveling around and seeing people and having parties here at the house and inviting friends over. And we're not going to get to do any of that. I'll be lucky if I get to see the kids. So, you know, that's a thing. But instead of being depressed about it, we're going to acknowledge it. We're going to talk about it because it's not healthy to not talk about it and not acknowledge things that are happening in your life and in the world. That's not a good thing. But we're going to acknowledge it and we're going to try to find the bright spots in the darkness. For me, in 2020, I've rediscovered my love of hand stitching and embroidery. I have reconnected with people that I haven't been able to connect with in a while. We're all home, we're all available. Even if the connection's only over Zoom, I've been able to do that. And to be honest, I kind of like that the husband's working at home, to be honest with you. Don't tell him I said that. I'm going to go over some of the parts I'm going to be using in my version of the December Daily. Your version, of course, is going to look different for you. I'm going to do mine in a Molesk and Cayet notebook. The paper is a bit thin, so it wouldn't take watercolor or paint very well, but it does take pen and marker, highlighter marker pretty well. I will be gluing things in, but it is a sewn spine. It probably is going to get pretty fat and puffy, but that's okay. There is a little bit of a pocket in the back where if I get some notes or keepsakes and I want to stuff in the journal as the month progresses, I can do that. Pick the one that works for you. I like the size of this. I debated about making a journal for this project, but I have a bunch of these. We're going to use what I have. I have these little to-do sticky notes. Now, I've had these, I don't know where I got them. They might have been at Target in those dollar bins they have up in front, but instead of like to-do chores, we're going to have like breathe unplug, which is really important, especially when you're stressed. Unplug and turn things off. Go read a book, go for a walk, turn some music on, do some stitching. Whatever it is, it calms you and relaxes you. But we'll be having to-do things that are more like that. We will be picking positive affirmation cards once a day to have that be the focus of our page. And I was going to, I have a bunch of these cards and this is a download in my Etsy shop. I'll put the link in the video description. And there's a DIY video that I'll also link. And once you get the download and then you print and make your own cards, and I have a few sets of these, and I was thinking about taking this particular set and then pulling a card and then just stapling it in, but I'm lazy. And so I thought, well, why don't we show people a different way? Yes, you could do that. You could make the cards and you could pull one and staple it in. But you could also get the download and you could print them on sticker paper, which I did, and then make it into a sticker. I plan on pulling a card and then finding the word in here and then sticking it on. I have my Christmas bunny cross stitch, which I'm going to put on the front of my journal. I have written a couple of sort of poems. I think they need some refinement that I'm going to put on the first page, which will be the title page of the journal, which I'll be making today. I have some... This is actually pieces of a tissue box that I thought the colors might work for this journal. And I have some of my sticker flakes. These are some winter flakes.  So that's the only way to get these because these aren't available for sale. These are some rainbow paint splotch flakes and these are for sale in my SD shop. So I pulled both of these to probably use in this journal. I also have some Christmas scrapbooking paper. I don't do lots of Christmas crafts, so I actually had to go buy this for this project because I just don't have any Christmas paper or anything. I have a few more bits and pieces coming that we'll be using. You will kind of notice they're sort of a cool wintery theme. That has to do with some stuff, again, that's going on over in My Creative Year Facebook groups. If you want to know more about that, again, you've got to be a member of the group. So going forward for December, we are going to be working on my version of the December Daily. We are going to be creating sort of art journal, written journal sort of pages, using a positive affirmation quotes, finding the light, the brightness in the darkness trying to make the best of a bad situation, if you will. This Christmas, again, is going to be a tough one because we can't see and do what we're normally used to doing. Instead of documenting all the things we can't do, let's find out what we can do. Let's make the best of a tough situation. Let's try to turn it around and find something positive about it, if you will, and let's journal it as a reminder and a document of what happened this year in 2020. So I am going to get started with today's video and I will see you at the end. Okay, so there is the cover for my December journal. I like the way it turned out. I did start writing the words on here a few days ago, and this was originally part of this, but as I was writing this, I added, no matter how we are affected. And then I like the way that sounded, and plus I ran out of room, but I also like the way that sounded, but I still wanted to use this so I put it on the cover. Now, as I go along in the month, I will probably add more things to the front and back cover, not all the parts I ordered are in yet. But before I do anything, I need to let this dry overnight because now the bunny is sticky with a yes-paste, but I like my title page. That's a perfect opening descriptor to what's going on in the rest of the journal. And I also did cut two new pieces of plastic to use. I use them behind the pages I'm currently working on to not only give myself something harder to write on because this is thin paper, but also because I tend to be kind of messy and if there's any bleed through or anything like that, it helps protect the other pages and or the cover. So anyway, I'm ready to go. I can't wait to get started. All right, so we're going to let that dry and then we're going to get started on page two in the next video. And yeah, I hope that you choose to join this with me. I hope that you're brave enough to share what you're doing in total or in part. And I would love to see what you're doing and I'd love to share ideas with you about how you're getting through and all the things for the things. And yeah, whether you're watching this over in Patreon or you're watching the sped-through version on YouTube or my creative year, I hope that you choose to do a kind of unique interesting 2020 version of a December daily with me. So that's it for right now. Don't forget to keep your chin up. We can get through together.  If we choose to look, I'm choosing to look. Not that I'm ignoring the conversation because that's not healthy. We will do what we need to and we will talk about it. We will work through the stress and ignoring it won't make it go away, but there is a lesson to be learned and there is a bright spot somewhere I have all faith. So that's it right now. If you can support the free content here on YouTube or in the Facebook art groups, please do so. There are ways to do that in the video description. If nothing else, you can click on my link tree list of links which has my Etsy shop and Amazon affiliate stuff and PayPal tip jar and Patreon and Instagram if you just want to follow me on Instagram and all the things for the things. So check it out. If you have a favorite content creator either here on YouTube or over in Facebook, they probably have a way for you to support them. If you can't find one, check it out. Ask them. Check out their video description so that's a good place to start. That's it right now. Stay safe. Stay healthy. Stay creative. Work through your stress and your new version of your December daily with me and above all, go out and do something nice for yourself because you deserve it. I'll see you later. Bye guys.


So, before we move on, does everyone know who their pre-assigned partner is that I announced on Friday? Jeremiah? Well, I have two partners and my two partners are Jayden in front of me and Richard. Great. Thank you. So, you do know who your partners are. Is there anyone that doesn't know, doesn't remember? Okay. So, here's what you're going to do. Up here, I have two focus questions for you that you are going to be mindful of as you are analyzing two reading passages fairly short and a couple of primary source images or photos. Your two focus questions that you really, really need to look for evidence and closely read for are, what were the positive and negative impacts of cross-cultural contact between Native Americans and Europeans? Some of you guys just gave me responses for that. And how was Native American life altered after Europeans discovered the new world? Before we can move on, I need someone to define altered. What does it mean if something is altered? Noah? Changed in a way like, like changed, yeah, changed. It could be good or bad. Yeah. Right. So long as we understand it's changed. So, that's what you're looking for.