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America Fumes After Xerox "Routine Backup Test" Leave 17 States Without Foodstamps

Tyler Durden's picture




 

Yesterday millions of "shoppers" living on the government dole left their shopping carts in droves in checkout counters, exited countless foodstamp-accepting stores, and made Wal-Marts and other general merchandise stores into veritable ghost towns, after a power outage at Xerox Corp, made EBT usage in 17 states for most of Saturday impossible, and left tens of millions of poverty-level Americans unable to engage in one of their favorite pastimes: shop with other people's money. In short: the Welfare States of America were probably closer to a state of outright revolution than at any time before in history. And had the EBT stoppage continues into today and tomorrow, things would have certainly spilled out from the shopping aisle to main streets where the people's anger may have culminated in an violent expression of disgust at a state which gives with one hand and a xerox company that takes with the other.

AP Reports:

People in Ohio, Michigan and 15 other states found themselves temporarily unable to use their food stamp debit-style cards on Saturday, after a routine test of backup systems by vendor Xerox Corp. resulted in a system failure. Xerox announced late in the evening that access has been restored for users in the 17 states affected by the outage, hours after the first problems were reported.

 

"Restarting the EBT system required time to ensure service was back at full functionality," spokeswoman Jennifer Wasmer said in an email. An emergency voucher process was available in some of the areas while the problems were occurring, she said.

 

U.S. Department of Agriculture spokeswoman Courtney Rowe underscored that the outage was not related to the government shutdown.

Ok, so the EBT failure not related to a government shutdown. It was, however, related to a simple "glitch" in a "Just-In-Time" world of peak complexity, which quickly cascaded through the logistical supply chain, and crippled the "purchasing" power of tens of millions of Americans, which potentially could have resulted in lethal consequences.

This was precisely the topic of our recent post "From Cascading Complexity To Systemic Collapse: A Walk Thru "Society's Equivalent Of A Heart Attack" which many read but few seem to have grasped. Recall from the article: "The extent of our contemporary complex global system dependencies, and our habituation to a long period of broadly stable economic and complexity growth means a systemic collapse would present profound and existential challenges." Such as resulting from a power outage at... Xerox Corp? If there is any better example of a system crossing the chaotic threshold due to a black swan event, we have yet to find it.

And while this time it took just 12 hours to return the system to order, what would have happened if the failure states had propagated, and led to subsequent systemic failures on their own, halting down peripheral social choke points, and resulting in a freeze of the "backup and restore" capacity of society. In short: this time, we - and especially those 46 million Americans on foodstamps - were lucky. Next time, luck may be in short supply.

More from AP:

Earlier Saturday shoppers left carts of groceries behind at a packed Market Basket grocery store in Biddeford, Maine, because they couldn't get their benefits, said shopper Barbara Colman, of Saco, Maine. The manager put up a sign saying the EBT system was not in use. Colman, who receives the benefits, called an 800 telephone line for the program and it said the system was down due to maintenance, she said.

 

"That's a problem. There are a lot of families who are not going to be able to feed children because the system is being maintenanced," Colman said. She planned to reach out to local officials. "You don't want children going hungry tonight because of stupidity," she said.

 

Colman said the store manager promised her that he would honor the day's store flyer discounts next week.

 

Wasmer said the states affected by the temporary outage also included Alabama, California, Georgia, Iowa, Illinois, Louisiana, Massachusetts, Maryland, Mississippi, New Jersey, Oklahoma, Pennsylvania, Texas and Virginia.

 

Ohio's cash and food assistance card payment systems went down at 11 a.m., said Benjamin Johnson, a spokesman for the Ohio Department of Job and Family Services. Johnson said Xerox asked retailers to revert to a manual system, meaning customers could spend up to $50 until the system was restored.

 

Illinois residents began reporting problems with their cards — known as LINK in that state — on Saturday morning, said Januari Smith, spokeswoman for the Illinois Department of Human Services.

 

Smith said that typically when the cards aren't working retailers can call a backup phone number to find out how much money customers have available in their account. But that information also was unavailable because of the outage, so customers weren't able to use their cards.

 

"It really is a bad situation but they are working to get it fixed as soon as possible," Smith said.

 

In Clarksdale, Miss. — one of the poorest parts of one of the poorest states in the nation — cashier Eliza Shook said dozens of customers at Corner Grocery had to put back groceries when the cards failed Saturday because they couldn't afford to pay for the food. After several hours, she put a sign on the front door to tell people about the problem.

 

"It's been terrible," Shook said in a phone interview. "It's just been some angry folks. That's what a lot of folks depend on."

 

Mississippi Department of Human Services director Rickey Berry confirmed that Xerox, the state's EBT vendor, had computer problems.

 

"I know there are a lot of mad people," Berry said.

 

Sheree Powell, a spokeswoman for the Oklahoma Department of Human Services, started receiving calls around 11:30 a.m. about problems with the state's card systems. More than 600,000 Oklahomans receive SNAP benefits, and money is dispersed to the cards on the first, fifth and 10th days of every month, so the disruption came at what is typically a high-use time for the cards.

 

Oklahoma also runs a separate debit card system for other state benefits like unemployment payments. Those cards can be used at ATMs to withdraw cash. Powell said Xerox administers both the EBT and debit card systems, and they both were down initially.

 

Powell said that some grocery store cashiers had been speculating that the federal government's shutdown caused the problem, but state officials have been assured that that is not the case.

 

Powell said Oklahoma's Xerox representative told them that the problems stemmed from a power failure at a data center.

 

"It just takes a while to reboot these systems," she said.

A reboot which, one prays, does not lead to the dreaded BSOD which however can't be fixed on a wink and a prayer.

In the meantime, we hope that it is not lost on people that the weakest glitch in perhaps the most important daily government welfare system of all, happens to be a power fuse at the all too private Xerox Corp. Because while we knew that the toner maker determines the "wealth effect" of the uber wealthy, if only metaphorically, little did we know that nearly 50 million Americans' daily bread also depends on toner.

 

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Sun, 10/13/2013 - 12:35 | 4050124 dognamedabu
dognamedabu's picture

Look at the bright side, they created extra paid work hours for tens of thousands of people. 

Mon, 10/14/2013 - 18:03 | 4054107 Obviousman
Obviousman's picture

For heaven's sake, read this.  Your argument, taken to its logical conclusion, implies there would be an even brighter side had they vandalized the store, or even burned it down.

Sun, 10/13/2013 - 12:48 | 4050155 abbottmd
abbottmd's picture

if they could put the items back, they'd be well-qualified for a job stocking grocery store shelves. Can't do any work.... the system "owes them"... I am sure they think they "paid into it"

Sun, 10/13/2013 - 13:34 | 4050330 therevolutionwas
therevolutionwas's picture

And then there are those who open up a wallet, fat with big bills, and pull out the EBT card.

Sun, 10/13/2013 - 12:42 | 4050136 abbottmd
abbottmd's picture

the first EBT card payment, someone might feel a little embarassed or uneasy about getting something for nothing. By the sixth one, if it's 12 hours late, they riot - take note.

Sun, 10/13/2013 - 12:45 | 4050146 I Write Code
I Write Code's picture

Power failure, I doubt it.  Some dufus tripping over a critical power or network cord - maybe.  Under-desk electric heaters tripping the fuse on primary server power - maybe.

But they did get it back up in reasonable time, and I salute them for it, really, DR tests that go bad can tank a system for a week or more, easily.

Hey, stuff happens.  LOL when it's not my stuff.

Sun, 10/13/2013 - 12:44 | 4050147 PennilessPauper
PennilessPauper's picture

"When the lights go down in the city." By Journey

https://www.youtube.com/watch?v=n9tyMp5A03k

I guess that means Journey loves Anarchy?  Or they just hate the EBT card?

Sun, 10/13/2013 - 12:56 | 4050177 liz pendens
liz pendens's picture

17 lousy states?

Good thing all 53 didn't go down.

-BHO

Sun, 10/13/2013 - 13:05 | 4050212 Mototard at Large
Mototard at Large's picture

The networks that suport these systems are increasingly complex and therefore unreliable, especially the payments and settlements systems at the core of our entire economy.  http://www.brokenmirrors.ca/?p=230 

Sun, 10/13/2013 - 13:36 | 4050333 q99x2
q99x2's picture

Why back up a system that is broken? I guess that is so they can restore it.

Sounds like Xerox

Sun, 10/13/2013 - 13:58 | 4050420 myshadow
myshadow's picture

"Yesterday millions of "shoppers" living on the government dole left their shopping carts in droves in checkout counters, exited countless foodstamp-accepting stores, and made Wal-Marts"

 

Who writes this shit? I think Red State has some column space available. There are people who this actually helps and this ayn rand/paul ryan view of Americans who have been fucked in this economy, just love to go on the dole is bullshit.

Sun, 10/13/2013 - 13:58 | 4050421 myshadow
myshadow's picture

"Yesterday millions of "shoppers" living on the government dole left their shopping carts in droves in checkout counters, exited countless foodstamp-accepting stores, and made Wal-Marts"

 

Who writes this shit? I think Red State has some column space available. There are people who this actually helps and this ayn rand/paul ryan view of Americans who have been fucked in this economy, just love to go on the dole is bullshit.

Sun, 10/13/2013 - 14:34 | 4050563 vegas
vegas's picture

Just a preview of the carnage once Chalky and his thugs can no longer borrow money to give to its base of low information numbnuts. When that moment comes, Greece will look like a picnic in the park compared to what we are likely to see. It's not a matter of "if", only "when".

 

http://vegasxau.blogspot.com

Sun, 10/13/2013 - 16:01 | 4050817 Bugsquasher
Bugsquasher's picture

Just a dry run for the real chaos to come.

Sun, 10/13/2013 - 17:54 | 4051056 Composter
Composter's picture

Why the outrage about a few billions in food stamps for 50 million Americans, most of them Gentiles ?

 

the day before 9-11, the US gov. announced the loss of $1+ Trillion, from the Pentagon or somewhere.

Quoth Pentagon spokesperson Rabbi Dov Zakheim.

$1 Trillion for Black Ops & Israel.

 

People who wring their hands about food stamps may be ignorring some much larger crimes.

Sun, 10/13/2013 - 17:54 | 4051057 Composter
Composter's picture

Why the outrage about a few billions in food stamps for 50 million Americans, most of them Gentiles ?

 

the day before 9-11, the US gov. announced the loss of $1+ Trillion, from the Pentagon or somewhere.

Quoth Pentagon spokesperson Rabbi Dov Zakheim.

$1 Trillion for Black Ops & Israel.

 

People who wring their hands about food stamps may be ignorring some much larger crimes.

Sun, 10/13/2013 - 18:46 | 4051204 boeing747
boeing747's picture

Tomorrow while house announced 'in last few days, we experienced ED problems (EBT difficulty), but the worst already behind us, let's forward from obamafood to obamacare'.

Sun, 10/13/2013 - 18:52 | 4051215 StychoKiller
StychoKiller's picture

FSA! FSA! FSA!

Sun, 10/13/2013 - 18:58 | 4051229 bombdog
bombdog's picture

We just got a new Xerox printer in the office. Have to reboot it all the time it's a gigantic lump of crap. God help anyone that depends on Xerox for food.

Sun, 10/13/2013 - 19:06 | 4051249 kwatinhu
kwatinhu's picture

Hopefully some rightwing, nut job, libertarian, anarchist, tea party, hostage taker computer hacker is working on a way to make this happen often and randomly on symbolic days like the day before Thanksgiving, Christmas, KWANZAA !!!

Sun, 10/13/2013 - 19:29 | 4051316 mobydick
mobydick's picture

Michelle Obama says 'Let them eat cake'

Sun, 10/13/2013 - 19:28 | 4051318 abbottmd
abbottmd's picture

In the old days of church and community-based charity, these EBT recipients would be humbled and show some gratitude, but in the days of the EBT debit card, it's all an expected payout from a faceless government regime that "owes them". I say we need some more outages, and remind people that the hand that giveth can also taketh away, and on the margins it might help wean a few more off the dole. Not many, but at least a few.

Sun, 10/13/2013 - 20:28 | 4051466 Element
Element's picture

 

 

Peak complexity; funny you should mention that as this happened to me Saturday night:

Commonwealth Bank ATMs shut down across Australia
 
Posted October 13, 2013 08:26:02
 
The Commonwealth Bank is investigating why all its automatic teller machine (ATM) services stopped working last night. Customers nationwide were unable to withdraw money from all ATMs between 7:00pm and 10:00pm.

 

http://www.abc.net.au/news/2013-10-13/commonwealth-bank-atms-shut-down-a...

 

My other accounts still worked, so was isolated and probably temporary, but I did have to check to be sure it wasn't all the banks. I've been reading way too much zh and Reggie Middleton to ever presume it's a technical outage.

Sun, 10/13/2013 - 20:49 | 4051520 U4 eee aaa
U4 eee aaa's picture

On the positive side, at least the retailers now have a good excuse for slow sales this quarter

Mon, 10/14/2013 - 10:28 | 4052550 MeelionDollerBogus
MeelionDollerBogus's picture

oh SNAP!

... too soon?

:-)

Mon, 10/14/2013 - 17:58 | 4054090 Obviousman
Obviousman's picture

If Obama's tantrum works and he retains a stranglehold on our health care, the next blown fuse at Xerox (or HHS) is going to KILL PEOPLE.

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