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After graduating from Brown University in 2009 with a bachelor’s degree in comparative literature and completing a Fulbright scholarship in Brazil, Cassie Owens was left with a few dollars on her stipend and no job in sight. So, Ms. Owens returned home to her mother in Philadelphia.

“I moved back home pretty much for lack of money and prospects,” she says. Owens’s cousin, Evon Burton, who also returned home after graduating from Morehouse College in 2009, adds, “The choice is to go out and be in debt or to pursue your dreams and save up money at home, in a safe, stable environment.”

Owens and Burton are among the scores of so-called “boomerang kids,” young adults who move out of the family home for school or work and then return home. Unable to find well-paying work in a weak economy, escalating numbers of young adults – as many as 3 in 10 – are returning home to the family nest, resulting in the highest share of young adults living in multigenerational households since the 1950s, according to a Pew Research Center report released Thursday.

The consumer-price index climbed 0.4 percent, matching the median forecast of economists surveyed by Bloomberg News, after increasing 0.2 percent the prior month, the Labor Department reported today in Washington. The so-called core measure, which excludes more volatile food and energy costs, climbed 0.1 percent, less than projected.

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But “this is more than just a data center,” says one senior intelligence official who until recently was involved with the program. The mammoth Bluffdale center will have another important and far more secret role that until now has gone unrevealed. It is also critical, he says, for breaking codes. And code-breaking is crucial, because much of the data that the center will handle—financial information, stock transactions, business deals, foreign military and diplomatic secrets, legal documents, confidential personal communications—will be heavily encrypted. According to another top official also involved with the program, the NSA made an enormous breakthrough several years ago in its ability to cryptanalyze, or break, unfathomably complex encryption systems employed by not only governments around the world but also many average computer users in the US. The upshot, according to this official: “Everybody’s a target; everybody with communication is a target.”

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In the process—and for the first time since Watergate and the other scandals of the Nixon administration—the NSA has turned its surveillance apparatus on the US and its citizens. It has established listening posts throughout the nation to collect and sift through billions of email messages and phone calls, whether they originate within the country or overseas. It has created a supercomputer of almost unimaginable speed to look for patterns and unscramble codes. Finally, the agency has begun building a place to store all the trillions of words and thoughts and whispers captured in its electronic net. And, of course, it’s all being done in secret. To those on the inside, the old adage that NSA stands for Never Say Anything applies more than ever.

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The data stored in Bluffdale will naturally go far beyond the world’s billions of public web pages. The NSA is more interested in the so-called invisible web, also known as the deep web or deepnet—data beyond the reach of the public. This includes password-protected data, US and foreign government communications, and noncommercial file-sharing between trusted peers. “The deep web contains government reports, databases, and other sources of information of high value to DOD and the intelligence community,” according to a 2010 Defense Science Board report. “Alternative tools are needed to find and index data in the deep web … Stealing the classified secrets of a potential adversary is where the [intelligence] community is most comfortable.” With its new Utah Data Center, the NSA will at last have the technical capability to store, and rummage through, all those stolen secrets. The question, of course, is how the agency defines who is, and who is not, “a potential adversary.”

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According to Binney—who has maintained close contact with agency employees until a few years ago—the taps in the secret rooms dotting the country are actually powered by highly sophisticated software programs that conduct “deep packet inspection,” examining Internet traffic as it passes through the 10-gigabit-per-second cables at the speed of light.

The software, created by a company called Narus that’s now part of Boeing, is controlled remotely from NSA headquarters at Fort Meade in Maryland and searches US sources for target addresses, locations, countries, and phone numbers, as well as watch-listed names, keywords, and phrases in email. Any communication that arouses suspicion, especially those to or from the million or so people on agency watch lists, are automatically copied or recorded and then transmitted to the NSA.

The scope of surveillance expands from there, Binney says. Once a name is entered into the Narus database, all phone calls and other communications to and from that person are automatically routed to the NSA’s recorders. “Anybody you want, route to a recorder,” Binney says. “If your number’s in there? Routed and gets recorded.” He adds, “The Narus device allows you to take it all.” And when Bluffdale is completed, whatever is collected will be routed there for storage and analysis.

According to Binney, one of the deepest secrets of the Stellar Wind program—again, never confirmed until now—was that the NSA gained warrantless access to AT&T’s vast trove of domestic and international billing records, detailed information about who called whom in the US and around the world. As of 2007, AT&T had more than 2.8 trillion records housed in a database at its Florham Park, New Jersey, complex.

Verizon was also part of the program, Binney says, and that greatly expanded the volume of calls subject to the agency’s domestic eavesdropping. “That multiplies the call rate by at least a factor of five,” he says. “So you’re over a billion and a half calls a day.” (Spokespeople for Verizon and AT&T said their companies would not comment on matters of national security.)

After he left the NSA, Binney suggested a system for monitoring people’s communications according to how closely they are connected to an initial target. The further away from the target—say you’re just an acquaintance of a friend of the target—the less the surveillance. But the agency rejected the idea, and, given the massive new storage facility in Utah, Binney suspects that it now simply collects everything. “The whole idea was, how do you manage 20 terabytes of intercept a minute?” he says. “The way we proposed was to distinguish between things you want and things you don’t want.” Instead, he adds, “they’re storing everything they gather.” And the agency is gathering as much as it can.

Once the communications are intercepted and stored, the data-mining begins. “You can watch everybody all the time with data- mining,” Binney says. Everything a person does becomes charted on a graph, “financial transactions or travel or anything,” he says. Thus, as data like bookstore receipts, bank statements, and commuter toll records flow in, the NSA is able to paint a more and more detailed picture of someone’s life.

The NSA also has the ability to eavesdrop on phone calls directly and in real time. According to Adrienne J. Kinne, who worked both before and after 9/11 as a voice interceptor at the NSA facility in Georgia, in the wake of the World Trade Center attacks “basically all rules were thrown out the window, and they would use any excuse to justify a waiver to spy on Americans.” Even journalists calling home from overseas were included. “A lot of time you could tell they were calling their families,” she says, “incredibly intimate, personal conversations.” Kinne found the act of eavesdropping on innocent fellow citizens personally distressing. “It’s almost like going through and finding somebody’s diary,” she says.

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Sitting in a restaurant not far from NSA headquarters, the place where he spent nearly 40 years of his life, Binney held his thumb and forefinger close together. “We are, like, that far from a turnkey totalitarian state,” he says.

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Meanwhile, over in Building 5300, the NSA succeeded in building an even faster supercomputer. “They made a big breakthrough,” says another former senior intelligence official, who helped oversee the program. The NSA’s machine was likely similar to the unclassified Jaguar, but it was much faster out of the gate, modified specifically for cryptanalysis and targeted against one or more specific algorithms, like the AES. In other words, they were moving from the research and development phase to actually attacking extremely difficult encryption systems. The code-breaking effort was up and running.

Comment No: 57019
Date: 3/14/2012

Comment Text:

Dear CFTC Staff,

Hello, I am a current JPMorgan Chase employee. This is an open letter to all commissioners and regulators. I am emailing you today b/c I know of insider information that will be damning at best for JPMorgan Chase. I have decided to play the role of whistleblower b/c I no longer have faith and belief that what we are doing for society is bringing value to people. I am now under the opinion that we are actually putting hard working Americans unaware of what lays ahead at extreme market risk. This risk is unnecessary and will lead to wide-scale market collapse if not handled properly. With the release of Mr. Smith’s open letter to Goldman, I too would like to set the record straight for JPM as well. I have seen the disruptive behavior of superiors and no longer can say that I look up to employees at the ED/MD level here at JPM. Their smug exuberance and arrogance permeates the air just as pungently as rotting vegetables. They all know too well of the backdoor crony connections they share intimately with elected officials and with other institutions. It is apparent in everything they do, from the meager attempts to manipulate LIBOR, therefore controlling how almost all derivatives are priced to the inherit and fraudulent commodities manipulation. They too may have one day stood for something in the past in the client-employee relationship. Does anyone in today’s market really care about the protection of their client? From the ruthless and scandalous treatment of MF Global client asset funds to the excessive bonuses paid by companies with burgeoning liabilities. Yes, we at JPMorgan that are in the know are fearful of a cascading credit event being triggered in Greece as they have hidden derivatives in excess of $1 Trillion USD. We at JPMorgan own enough of these through counterparty risk and outright prop trading that our entire IB EDG space could be annihilated within a few short days. The last ten years has been market by inflexion point after inflexion point with the most notable coming in 2008 after the acquisition of Bear.

I wish to remain anonymous as of now as fear of termination mounts from what I am about to reveal. Robert Gottlieb is not my real name; however he is a trader that is involved in a lawsuit for manipulative trading while working with JPMorgan Chase. He was acquired during our Bear Stearns acquisition and is known to be the notorious person shorting in the silver future market from his trading space, along with Blythe Masters, his IB Global boss. However, with that said, we are manipulating the silver futures market and playing a smaller (but still massively manipulative) role in manipulating the gold futures market. We have a little over a 25% (give or take a percentage) position in the short market for silver futures and by your definition this denotes a larger position than for speculative purposes or for hedging and is beyond the line of manipulation.

On a side note, I do not work directly with accounts that would have been directly impacted by the MF Global fiasco but I have heard through other colleagues that we have involvement in the hiding of client assets from MF Global. This is another fraudulent effort on our part and constitutes theft. I urge you to forward that part of the investigation on to the respective authorities.

There is something else that you may find strange. During month-end December, we were all told by our managers that this was going to be a dismal year in terms of earnings and that we should not expect any bonuses or pay raises. Then come mid-late January it is made known that everyone received a pay raise and/or bonus, which is interesting b/c just a few weeks ago we were told that this was not likely and expected to be paid nothing in addition to base salary. January is right around the time we started increasing our short positions quite significantly again and this most recent crash in gold and silver during Bernanke’s speech on February 29th is of notable importance, as we along with 4 other major institutions, orchestrated the violent $100 drop in Gold and subsequent drops in silver.

As regulators of the free people of this country, I ask you to uphold the most important job in the world right now. That job is judge and overseer of all that is justice in the most sensitive of commodity markets. There are many middle-income people that invest in the physical assets of silver, gold, as well as mining stocks that are being financially impacted in a negative way b/c of our unscrupulous shorts in the precious metals commodity sector. If you read the COT with intent you will find that commercials (even though we have no business being in the commercial sector, which should be reserved for companies that truly produce the metal) are net short by a long shot in not only silver, but gold.

It is rather surprising that what should be well known liabilities on our balance sheet have not erupted into wider scale scrutinization. I call all honest and courageous JPMorgan employees to step up and fight the cronyism and wide-scale manipulation by reporting the truth. We are only helping reality come to light therefore allowing a real valuation of our banking industry which will give investors a chance to properly adjust without being totally wiped out. I will be contacting a lawyer shortly about this matter, as I believe no other whistleblower at JPMorgan has come forward yet. Our deepest secrets lie within the hands of honest employees and can be revealed through honest regulators that are willing to take a look inside one of America’s best kept secrets. Please do not allow this to turn into another Enron.

Earlier this month, Petraeus mused about the emergence of an “Internet of Things” — that is, wired devices — at a summit for In-Q-Tel, the CIA’s venture capital firm. “‘Transformational’ is an overused word, but I do believe it properly applies to these technologies,” Petraeus enthused, “particularly to their effect on clandestine tradecraft.”

All those new online devices are a treasure trove of data if you’re a “person of interest” to the spy community. Once upon a time, spies had to place a bug in your chandelier to hear your conversation. With the rise of the “smart home,” you’d be sending tagged, geolocated data that a spy agency can intercept in real time when you use the lighting app on your phone to adjust your living room’s ambiance.

“Items of interest will be located, identified, monitored, and remotely controlled through technologies such as radio-frequency identification, sensor networks, tiny embedded servers, and energy harvesters — all connected to the next-generation internet using abundant, low-cost, and high-power computing,” Petraeus said, “the latter now going to cloud computing, in many areas greater and greater supercomputing, and, ultimately, heading to quantum computing.”

Now, as Interpol searches for the collection on the illegal antiquities markets, questions are still being raised about the nature of the theft. One thing most seem to agree on: The heist was an inside job.

The move will isolate Iran financially by making it almost impossible for money to flow in and out of the country via official banking channels.

It will hit its oil industry, but may also have a heavy impact on Iranians who live abroad and send money home.

The move follows EU sanctions against Iran over its nuclear programme.

The US and its allies accuse Iran of trying to develop nuclear weapons – a charge it denies.

Iran last week agreed to hold talks with six major world powers over its nuclear programme, although no date or venue has been set.

Almost all banking transactions pass through Belgium-based Swift, the Society for Worldwide Interbank Financial Telecommunication, which is sometimes called the “glue” that holds the financial system together.

So when a postal worker repeatedly ran across two unkempt children at the scene, she grew concerned and this week contacted authorities to report that the pair had apparently been living there for months.

Now child welfare agents are trying to unravel the story of the siblings, a 5-year-old boy and an 11-year-old girl, whose parents are in prison and whose home was a dilapidated vehicle at the end of a muddy, one-lane road.

The postal carrier saw the kids Wednesday near Houston, and the two were swiftly placed in foster care while authorities investigate.

“The little girl’s hair was just matted, like a stray dog’s,” Vanessa Picazo said.