Sep 102019
 
 September 10, 2019  Posted by at 1:43 pm Finance, Primers Tagged with: , , , , , , , , , , ,  11 Responses »


Pablo Picasso Composition “Peasants” 1906

 

It’s undoubtedly better to leave some stories alone, and this may be one of them. Putin’s spokesman Dmitry Peskov perhaps put it best when he called it “pulp fiction” (and what’s more American than that?). But this one is so exemplary of how the news is cooked up for you these days, let’s have a go anyway.

What makes this story so ideal for its purpose is that it involves intelligence and state secrets, so the news outlet that runs it doesn’t have to prove a thing; it can simply say it’s not authorized to divulge what it doesn’t write, while hinting it does know. Plus, it can use any number of covert sources.

But in the process, a damning picture can still be painted. And if that picture involves Donald Trump, and it’s CNN that’s painting it, well, we know what it’s going to look like. Here’s how it started at CNN yesterday (with some additions from today):

 

US Extracted Top Spy From Inside Russia In 2017

In a previously undisclosed secret mission in 2017, the United States successfully extracted from Russia one of its highest-level covert sources inside the Russian government, multiple Trump administration officials with direct knowledge told CNN. A person directly involved in the discussions said that the removal of the Russian was driven, in part, by concerns that President Donald Trump and his administration repeatedly mishandled classified intelligence and could contribute to exposing the covert source as a spy.

The decision to carry out the extraction occurred soon after a May 2017 meeting in the Oval Office in which Trump discussed highly classified intelligence with Russian Foreign Minister Sergey Lavrov and then-Russian Ambassador to the US Sergey Kislyak. The intelligence, concerning ISIS in Syria, had been provided by Israel. The disclosure to the Russians by the President, though not about the Russian spy specifically, prompted intelligence officials to renew earlier discussions about the potential risk of exposure, according to the source directly involved in the matter.

At the time, then-CIA Director Mike Pompeo told other senior Trump administration officials that too much information was coming out regarding the covert source, known as an asset.[..]

Asked for comment, Brittany Bramell, the CIA director of public affairs, told CNN: “CNN’s narrative that the Central Intelligence Agency makes life-or-death decisions based on anything other than objective analysis and sound collection is simply false. Misguided speculation that the President’s handling of our nation’s most sensitive intelligence—which he has access to each and every day—drove an alleged exfiltration operation is inaccurate.”

[..] White House press secretary Stephanie Grisham said, “CNN’s reporting is not only incorrect, it has the potential to put lives in danger.”

The removal happened at a time of wide concern in the intelligence community about mishandling of intelligence by Trump and his administration. Those concerns were described to CNN by five sources who served in the Trump administration, intelligence agencies and Congress. Those concerns continued to grow in the period after Trump’s Oval Office meeting with Kislyak and Lavrov. Weeks after the decision to extract the spy, in July 2017, Trump met privately with Russian President Vladimir Putin at the G20 summit in Hamburg and took the unusual step of confiscating the interpreter’s notes.

Afterward, intelligence officials again expressed concern that the President may have improperly discussed classified intelligence with Russia, according to an intelligence source with knowledge of the intelligence community’s response to the Trump-Putin meeting. Knowledge of the Russian covert source’s existence was highly restricted within the US government and intelligence agencies. According to one source, there was “no equal alternative” inside the Russian government, providing both insight and information on Putin.

 

Pretty bad, right? Well, we’re not done just yet. Here’s the BBC adding its two cents:

 

US Extracted High-Level Spy From Inside Russia In 2017, Reports Say

Russian media named the spy as former presidential administration official Oleg Smolenkov. The Kommersant newspaper said Mr Smolenkov went on holiday with his family to Montenegro in 2017 and disappeared, before a man with the same name and a woman with the same name as Mr Smolenkov’s wife purchased a house in the US state of Virginia, near Washington DC. Russian reports said Mr Smolenkov had worked for Yury Ushakov, a senior aide to President Putin.

Asked by the BBC on Tuesday about the reports, Kremlin spokesman Dmitry Peskov confirmed that Mr Smolenkov had worked for the presidential administration but denied that he had held a high-level position, adding that he had been sacked. Mr Peskov described the US media coverage of the reported extraction as “pulp fiction”.

There was no suggestion on Tuesday that President Trump directly compromised the source in Russia, and reports said that widespread media speculation about US intelligence conclusions had contributed to the decision to extract the source. Last year, Russian operatives travelled to England and used a nerve agent in an assassination attempt against a former Russian military intelligence officer, Sergei Skripal, who had spied for the British.

 

Isn’t it just lovely how they manage to throw in Skripal there at the end? Took a bit of stretching, but the BBC is plenty flexible.

Okay, so this alleged spy is extracted (or “exfiltrated”) by US intelligence, and then buys a home in Virginia. But not only that, he buys it under his own name. Presumably so that if Putin wants to find the man who divulged all those secrets for 10 years+, he can just Google him. Here’s NBC:

 

Possible Russian Spy For CIA Now Living In Washington Area

A former senior Russian official is living in the Washington area under U.S. government protection, current and former government officials tell NBC News. NBC News is withholding the man’s name and other key details at the request of U.S. officials, who say reporting the information could endanger his life. Yet the former Russian government official, who had a job with access to secrets, was living openly under his true name.

An NBC News correspondent went to the man’s house in the Washington area and rang the doorbell. Five minutes later, two young men in an SUV came racing up the street and parked immediately adjacent to the correspondent’s car. The men, who identified themselves only as friends of the Russian, asked the correspondent what he was doing there.

[..] The [New York] Times said the source was “the American government’s best insight into the thinking of and orders” from Putin, and was key to the CIA’s assessment that Putin favored Donald Trump’s candidacy and personally ordered the hacking of the Democratic National Committee.

The Times previously reported that the source was considered so sensitive that then-CIA Director John Brennan had declined to refer to the person in the top secret Presidential Daily Brief during the final months of the Obama administration. Brennan sent reports from the source to the president and a small group of top national security aides in a separate, white envelope to assure its security, the Times reported.

[..] NBC News has not confirmed that the Russian living near the nation’s capital fed the CIA information about Russian election interference. But for reasons that NBC News is withholding, he fits the profile of someone who may have had access to information about Putin’s activities and who would have been recruitable by American intelligence officials.

Two former FBI officials told NBC News they believe he is the source referred to in the CNN and New York Times report. The Russian will likely be moved from the place he is currently living in the interest of keeping him safe, current and former officials said.

 

He will be moved in the interest of keeping him safe. That is just brilliant. What, you think Putin will be upset at no longer being able to Google his whereabouts?

To remain fair, let’s give RT some space, too, shall we?

 

Was Key CIA Spy ‘Extracted’ From Moscow Over #Russiagate Fears?

Media outlets in Russia immediately began speculating as to the identity of the alleged mole, quickly settling on Oleg Smolenkov, state advisor of the third class who had worked at the Russian embassy in Washington before 2010. Smolenkov took his wife and three children on vacation to Montenegro on July 14, 2017, whereupon they vanished without a trace. The police have been investigating their disappearance as possible murder.

[..] Russian Senator Franz Klintsevich, deputy head of the Defense and Security Committee, dismissed CNN’s story as “fake” and “carrying out orders for another attempt to discredit Trump,” according to TASS. Most of the US mainstream media outlets spent the past three years promoting the notorious ‘Russiagate’ conspiracy theory on behalf of the Democrats, and have refused to acknowledge any wrongdoing even though special counsel Robert Mueller failed to find anything to incriminate the president after a two-year investigation.

Moreover, CNN and MSNBC have hired a number of former intelligence officials, whose fingerprints have been all over ‘Russiagate,’ as anti-Trump pundits.

 

John Brennan, James Clapper, here’s looking at you. There was no need today to read much further in order to find out that the secret info Trump is accused of divulging to “the Russians” had already been published first by no other than…CNN on March 31 2017. There was no secret. Other than perhaps, says Aaron Maté, that Israel was the source. But trust us, Putin would have known that.

After the Mueller report fiasco, one would think the media who don’t like Trump would be more careful with their reporting, and before reporting it. But they just keep at it.

In the process, as quoted above, through their false reporting and false claims, it’s they who are endangering lives, not Donald Trump:

Brittany Bramell, the CIA director of public affairs, told CNN: “CNN’s narrative that the Central Intelligence Agency makes life-or-death decisions based on anything other than objective analysis and sound collection is simply false. Misguided speculation that the President’s handling of our nation’s most sensitive intelligence—which he has access to each and every day—drove an alleged exfiltration operation is inaccurate.” [..]

White House press secretary Stephanie Grisham said, “CNN’s reporting is not only incorrect, it has the potential to put lives in danger.”

It’s not just the White House, the CIA itself says it too.

Asking for a friend: You think the country’s still capable of having a normal conversation?

 

 

 

 

May 202018
 
 May 20, 2018  Posted by at 10:13 am Finance Tagged with: , , , , , , , , , , , ,  4 Responses »


Roman Vishniac Isaac Street, Krakow 1930s

 

Stefan Halper: The FBI Informant Who Monitored the Trump Campaign (GG)
IG Horowitz Finds FBI, DOJ Broke Law In Clinton Probe (ZH)
China Agrees To Bolster Purchases Of US Goods (CNBC)
With Iran Sanctions Trump Made Europeans Look Like The Fools They Are (RT)
Europe, China, Russia Discussing New Deal For Iran (R.)
Now Facebook Serves NATO’s Agenda (McDonald)
Hedge Funds Bet On Big Turnaround By Italy’s Mid-Tier Banks (R.)
Companies Are Now Paying Off Their Employees’ Student Loans (CNBC)
What Happens In An Internet Minute In 2018? (WEF)
Drunk People Are Better at Creative Problem Solving (HBR)

 

 

Why not just call him a spy?

Stefan Halper: The FBI Informant Who Monitored the Trump Campaign (GG)

An extremely strange episode that has engulfed official Washington over the last two weeks came to a truly bizarre conclusion on Friday night. And it revolves around a long-time, highly sketchy CIA operative, Stefan Halper. Four decades ago, Halper was responsible for a long-forgotten spying scandal involving the 1980 election, in which the Reagan campaign – using CIA officials managed by Halper, reportedly under the direction of former CIA Director and then-Vice-Presidential candidate George H.W. Bush – got caught running a spying operation from inside the Carter administration. The plot involved CIA operatives passing classified information about Carter’s foreign policy to Reagan campaign officials in order to ensure the Reagan campaign knew of any foreign policy decisions that Carter was considering.

Over the past several weeks, House Republicans have been claiming that the FBI during the 2016 election used an operative to spy on the Trump campaign, and they triggered outrage within the FBI by trying to learn his identity. The controversy escalated when President Trump joined the fray on Friday morning. “Reports are there was indeed at least one FBI representative implanted, for political purposes, into my campaign for president,” Trump tweeted, adding: “It took place very early on, and long before the phony Russia Hoax became a “hot” Fake News story. If true – all time biggest political scandal!”

In response, the DOJ and the FBI’s various media spokespeople did not deny the core accusation, but quibbled with the language (the FBI used an “informant,” not a “spy”), and then began using increasingly strident language to warn that exposing his name would jeopardize his life and those of others, and also put American national security at grave risk. On May 8, the Washington Post described the informant as “a top-secret intelligence source” and cited DOJ officials as arguing that disclosure of his name “could risk lives by potentially exposing the source, a U.S. citizen who has provided intelligence to the CIA and FBI.”

Read more …

Excellent from Zero Hedge. Things are going to change. Read the whole thing.

IG Horowitz Finds FBI, DOJ Broke Law In Clinton Probe (ZH)

As we reported on Thursday, a long-awaited report by the Department of Justice’s internal watchdog into the Hillary Clinton email investigation has moved into its final phase, as the DOJ notified multiple subjects mentioned in the document that they can privately review it by week’s end, and will have a “few days” to craft any response to criticism contained within the report, according to the Wall Street Journal. “Those invited to review the report were told they would have to sign nondisclosure agreements in order to read it, people familiar with the matter said. They are expected to have a few days to craft a response to any criticism in the report, which will then be incorporated in the final version to be released in coming weeks.” -WSJ

Now, journalist Paul Sperry reports that “IG Horowitz has found “reasonable grounds” for believing there has been a violation of federal criminal law in the FBI/DOJ’s handling of the Clinton investigation/s and has referred his findings of potential criminal misconduct to Huber for possible criminal prosecution.” Sperry also noted on Twitter that the FBI and DOJ had been targeting former National Security Advisor Mike Flynn before his December 2016 phone call with Russian Ambassador Sergey Kislyak, stemming from photos of Flynn at a December 2015 Moscow event with Vladimir Putin (and Jill Stein). As we reported in March, Attorney General Jeff Sessions appointed John Huber – Utah’s top federal prosecutor, to be paired with IG Horowitz to investigate the multitude of accusations of FBI misconduct surrounding the 2016 U.S. presidential election.

The announcement came one day after Inspector General Michael Horowitz confirmed that he will also be investigating allegations of FBI FISA abuse. While Huber’s appointment fell short of the second special counsel demanded by Congressional investigators and concerned citizens alike, his appointment and subsequent pairing with Horowitz is notable – as many have pointed out that the Inspector General is significantly limited in his abilities to investigate. Rep. Bob Goodlatte (R-VA) noted in March “the IG’s office does not have authority to compel witness interviews, including from past employees, so its investigation will be limited in scope in comparison to a Special Counsel investigation,” Sessions’ pairing of Horowitz with Huber keeps the investigation under the DOJ’s roof and out of the hands of an independent investigator.

Read more …

You’ll need to put meat on that bone.

China Agrees To Bolster Purchases Of US Goods (CNBC)

China and the U.S. have mutually agreed to “substantially reduce” the yawning trade imbalance between the two countries, a joint statement read on Saturday, in a move that will involve the Chinese boosting more of what they buy from American producers. Amid fears of a global trade war and rising tensions between the world’s two largest economies, both China and the U.S. have entered bilateral talks to bolster cooperation. In a statement issued by the White House, both parties forged a “consensus on taking effective measures to substantially reduce the United States trade deficit in goods with China.”

Just a day ago, both countries were sharply at odds over a claim, made by White House Economic Advisor Larry Kudlow, that China would move to cut its trade deficit with the U.S. by $200 billion annually. That characterization was disputed by Chinese officials. Left unclear was exactly how much the Chinese would boost its purchases of U.S. goods. The Wall Street Journal reported on Saturday that China’s delegation rebuffed American demands to commit to an exact deficit reduction figure, and the two sides bickered all night over the statement’s language. The trade imbalance has long been a thorny and intractable topic in the Sino-US relationship.

Commerce Department data recently showed that imbalance between what China buys from the U.S. and vice versa hit a record in 2017 at over $375 billion. However, President Donald Trump has staked a resolution of the dispute on his personal relationship with Chinese President Xi Jinping. This week, Kudlow stated that China was “meeting many” Trump administration demands to cut its U.S. surplus. The statement released on Saturday struck a conciliatory tone. “To meet the growing consumption needs of the Chinese people and the need for high-quality economic development, China will significantly increase purchases of United States goods and services. This will help support growth and employment in the United States,” it read.

Read more …

John Laughland: “..the constitutional charter of the EU subordinates it to NATO, which the USA dominates legally and structurally ..”

With Iran Sanctions Trump Made Europeans Look Like The Fools They Are (RT)

First, the links between the EU and the US are not only very long-standing, they are also set in stone. NATO and the EU are in reality Siamese twins, two bodies born at the same time which are joined at the hip. The first European community was created with overt and covert US support in 1950 in order to militarize Western Europe and to prepare it to fight a land war against the Soviet Union; NATO acquired its integrated command structure a few months later and its Supreme Commander is always an American.

Today the two organizations are legally inseparable because the consolidated Treaty on European Union, in the form adopted at Lisbon in 2009, states that EU foreign policy “shall respect” the obligations of NATO member states and that it shall “be compatible” with NATO policy. In other words, the constitutional charter of the EU subordinates it to NATO, which the USA dominates legally and structurally. In such circumstances, European states can only liberate themselves from US hegemony, as Donald Tusk said they should, by leaving the EU. It is obvious that they are not prepared to do that.

Second, EU leaders have burned their own bridges with other potential partners, especially Russia. Angela Merkel traveled to Russia on Friday but only a few weeks ago more than half of the EU member states expelled scores of Russian diplomats and encouraged non-EU European states like Ukraine and Montenegro to do the same, in retaliation for the poisoning in Salisbury of Sergei and Julia Skripal.

How is Mrs Merkel going to convince Mr Putin to join her in keeping Iran’s nuclear program under control if she officially thinks that Mr Putin is guilty of secretly stockpiling and using chemical weapons for assassinations in the West? Only a few weeks later, in mid-April, Britain and France, together with the US, attacked Syria on the basis that its army had used chemical weapons at Douma with Russian backing. If they try to turn on the charm now in Sochi or in Moscow, do they really expect the Russians can take them seriously?

Read more …

It might yet work.

Europe, China, Russia Discussing New Deal For Iran (R.)

Diplomats from Europe, China and Russia are discussing a new accord to offer Iran financial aid to curb its ballistic missile development and meddling in the region, in the hope of salvaging its 2015 nuclear deal, a German newspaper reported on Sunday. The officials will meet in Vienna in the coming week under the leadership of senior European Union diplomat Helga Schmid to discuss next steps after the May 8 decision by U.S. President Donald Trump to pull out of a 2015 nuclear accord with Iran, the Welt am Sonntag newspaper said, citing senior EU sources. Germany, France, Britain, Russia and China would participate in the meeting, but the United States would not, it said. It was not immediately clear if Iran – which has resisted calls to curb its ballistic missile program in the past – would take part.

Under the 2015 deal, Iran agreed to curb its nuclear program in return for the lifting of most Western sanctions. One of the main complaints of the Trump administration was that the accord did not cover Iran’s missile program or its support for armed groups in the Middle East which the West considers terrorists. Concluding a new agreement that would maintain the nuclear provisions and curb ballistic missile development efforts and Tehran’s activities in the region could help convince Trump to lift sanctions against Iran, the paper said. “We have to get away from the name ‘Vienna nuclear agreement’ and add in a few additional elements. Only that will convince President Trump to agree and lift sanctions again,” the paper quoted a senior EU diplomat as saying.

Read more …

CIA, military, they all want in.

Now Facebook Serves NATO’s Agenda (McDonald)

Facebook has engaged a think tank funded by weapons manufacturers, branches of the US military and Middle-Eastern monarchies to safeguard the democratic process. It’s akin to hiring arsonists to run the fire brigade.
If Facebook truly wanted to “protect democracy and elections worldwide,” it would build a broad coalition of experts and activists from a wide and disparate range of the countries it serves. Instead, the American social media giant has outsourced the task to NATO’s propaganda wing. For the uninitiated, the Atlantic Council serves as the American-led alliance’s chief advocacy group. And its methods are rather simple: it grants stipends and faux academic titles to various activists that align with NATO’s agenda.

Thus, lobbyists become “fellows” and “experts,” while the enterprise constructs a neutral sheen, which is rarely (if ever) challenged by Western media outlets – often reliant on its employees for easy comment and free op-eds. While that has always been ethically questionable, Facebook’s latest move, given its effective monopoly position, is far more sinister. Because it is now tied to a “think tank” which has proposed terrorist attacks in Russia and has demanded Russian-funded news outlets be forced to register as “foreign agents” in the United States. Make no mistake: this is a dream scenario for NATO and those who depend on it for their livelihoods and status. Because the Atlantic Council is now perfectly positioned to be the tail wagging the Facebook dog in the information space.

On Thursday, the social network announced how it was “excited to launch a new partnership with the Atlantic Council, which has a stellar reputation looking at innovative solutions to hard problems.” It then added that “experts” from the Atlantic Council’s Digital Forensic Research Lab (DFRL) will liaise closely with Facebook’s “security, policy and product teams” to offer “real-time insights and updates on emerging threats and disinformation campaigns from around the world.” Now, this sort of talk would be fine if Facebook had assembled a diverse group, comprised of stakeholders from a wide range of democracies. But, by selecting a clearly biased actor to police “misinformation and foreign interference” during “elections and other highly sensitive moments” and also work to “help educate citizens as well as civil society,” Mark Zuckerberg’s team has essentially made their company a tool of the US military agenda.

Read more …

Wonder what the new government will do to this.

Hedge Funds Bet On Big Turnaround By Italy’s Mid-Tier Banks (R.)

Major hedge funds have picked Italian mid-tier banks as one of Europe’s few remaining recovery plays, betting they will shed billions of euros in bad loans. Europe’s 2010-2012 debt crisis left Italy’s banks with among the euro zone’s biggest hangovers, some 285 billion euros ($338 billion) of soured debt on their balance sheets. But when Credito Valtellinese sold new shares in a February rights issue for eight times its market value, they were lapped up by hedge funds in the United States and Britain. Now the mid-sized Italian bank counts Algebris Chief Investment Officer Davide Serra, Toscafund Asset Management and a hedge fund run by Eurizon Capital SGR among its biggest investors, Thomson Reuters data shows.

So far the bet seems to be paying off as Italy’s bank shares have risen 15% year-to-date against a fall of 1% for European banks, while Credito Valtellinese stock has risen 7.5% since the rights issue completion. Although the price-to-book ratio of Italian banks has improved since Rome announced a state bailout fund in 2016, it trades around 8% below the European sector average. Even the possible formation of a new government comprising two anti-establishment parties has not put off many of the funds contacted by Reuters, some of whom invested in Greek government bonds on a similar bet, who said the investment stacked up despite the vagaries of Italian politics.

Italy’s bad loans are a legacy of the recession that followed the debt crisis and with small and medium-sized businesses heavily dependent on bank lending, the soured loans have long been a drag on the third biggest euro zone economy. But pressure from regulators has begun to have an impact and the ratio of gross impaired loans to total loans has fallen to 14.5% from 17.3% a year ago, Bank of Italy data shows ..

Read more …

But move away from paying for the education.

Companies Are Now Paying Off Their Employees’ Student Loans (CNBC)

Student loan assistance, which started as a niche offering by a handful of companies, is finding its way into the mainstream menu of workplace benefits. “This is certainly emerging as a new and very important benefit,” said David Pratt, a professor at Albany Law School who studies employee benefits. This year, Fidelity began to offer businesses a way to contribute to their workers’ education debt. Since then, more than two dozen companies have signed up and it expects that number to double by the year’s finish. “This is going to grow rapidly over time,” said Asha Srikantiah, vice president of workplace emerging products at Fidelity. “We’re seeing so many more people who have debt and who are overwhelmed by that.”

Indeed, 7 in 10 college graduates have student loan debt. The average person leaves school $30,000 in arrears, while nearly 20% owe more than $100,000. Americans are now more burdened by education loans than they are by credit card or auto debt. [..] one of the factors likely contributing to the nation’s swelling student loan debt is that the number of employers helping their workers with their original education costs is shrinking. Company contributions to undergraduate education expenses dropped to 53% in 2017, from 61% in 2013, according to the Society for Human Resource Management. During that same time period, graduate school assistance at work also fell, to 50% from about 60%.

Read more …

100 trillion emails per year.

What Happens In An Internet Minute In 2018? (WEF)

In your everyday life, a minute might not seem like much. But when it comes to the vast scale of the internet, a minute of time goes much further than you ever could have imagined. That’s because the internet has a degree of scale that our linear human brains are unaccustomed to operating on. Today’s infographic is from Lori Lewis and Chadd Callahan of Cumulus Media, and it shows the activity taking place on various platforms such as Facebook or Google in each 60 second span. It really helps put an internet minute in perspective.

The numbers for these services are so enormous that they can only be shown using the 60 second time scale. Any bigger, and our brains can’t even process these massive quantities in any useful capacity. Here are just a few key numbers scaled to a monthly basis, for fun: • 42,033,600,000 Facebook logins • 159,840,000,000 Google searches • 1,641,600,000,000 WhatsApp messages sent • 8,078,400,000,000 emails sent On an annualized basis, the data becomes even more ridiculous, with something close to 100 trillion emails sent.

Read more …

The world’s biggest problems are solved in bars.

Drunk People Are Better at Creative Problem Solving (HBR)

Professor Andrew Jarosz of Mississippi State University and colleagues served vodka-cranberry cocktails to 20 male subjects until their blood alcohol levels neared legal intoxication and then gave each a series of word association problems to solve. Not only did those who imbibed give more correct answers than a sober control group performing the same task, but they also arrived at solutions more quickly. The conclusion: drunk people are better at creative problem solving.

JAROSZ: You often hear of great writers, artists, and composers who claim that alcohol enhanced their creativity, or people who say their ideas are better after a few drinks. We wanted to see if we could find evidence to back that up, and though this was a small experiment, we did. We gave participants 15 questions from a creative problem-solving assessment called the Remote Associates Test, or RAT—for example, “What word relates to these three: ‘duck,’ ‘dollar,’ ‘fold’?”; the answer to which is “bill.” We found that the tipsy people solved two to three more problems than folks who stayed sober. They also submitted their answers more quickly within the one-minute-per-question time limit, which is maybe even more surprising.

HBR: So alcohol doesn’t slow us down mentally after all? It still does, but we think that creative problem solving is one area in which a key effect of drunkenness—loss of focus—is a good thing. In an exercise like the RAT, it’s important not to fixate on your first thought, and alcohol seems to help that seemingly irrelevant stuff slip in. When we asked participants how much they relied on strategic thinking versus sudden insights to solve the problems, the intoxicated people reported solving via insight on 10% more problems than their sober counterparts did.

Read more …