Ecuador: Army and Police Exchange Gunfire

October 1st, 2010

Via: BBC:

Soldiers in Ecuador have rescued President Rafael Correa from a police hospital after a day of protests by security forces angry at benefit cuts.

Mr Correa was rescued after soldiers opened fired on dissident police.

Moments after being freed he appeared on the balcony of Quito’s presidential palace and spoke to thousands of cheering supporters.

He thanked the crowds and said he had just lived through the saddest day of his government.

The violence came after dark on a day of unrest in Ecuador that the president and his supporters said amounted to an an attempted coup.

Mr Correa had been holed up in the police hospital, where he was treated after being hit by tear gas in a confrontation.

Hundreds of police, angry over a law that would cut their benefits, appeared to have prevented him from leaving the clinic.

Under cover of darkness Mr Correa was reportedly smuggled out of the hospital in a wheelchair even as a gunbattle between troops and police was under way.

Unrest had been reported across Ecuador on Thursday amid anger at a new law cutting benefits for public servants.


FDIC PROPOSING “TEMPORARY UNLIMITED INSURANCE COVERAGE” FOR NONINTEREST-BEARING TRANSACTION ACCOUNTS BEGINNING 31 DECEMBER 2010

October 1st, 2010

Via: FDIC:

The Federal Deposit Insurance Corporation (FDIC) Board of Directors today approved the issuance of a proposed rule to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act to provide depositors at all FDIC-insured institutions unlimited deposit insurance coverage on noninterest-bearing transaction accounts beginning December 31, 2010 through December 31, 2012.

“In October 2008, the FDIC instituted a program providing unlimited protection for noninterest- bearing transaction accounts at participating banks and found it to be highly successful in providing stability at those institutions during one of the most severe economic downturns in our history,” said FDIC Chairman Sheila C. Bair. “The Dodd-Frank provision is different from the FDIC’s program but continues the purpose of that program as we emerge from the economic crisis.”

Under the proposal, the FDIC will create a new, temporary deposit insurance category for noninterest-bearing transaction accounts. These accounts are primarily checking accounts used by businesses for payrolls, accounts payable and other purposes.


Federal Reserve to Become Largest Holder of U.S. Debt in Just Over a Month?

October 1st, 2010

Via: ZeroHedge:

Probably the most interesting thing in this week’s Fed balance sheet update is that Treasurys held by the Fed are now $812 billion, an increase of $7 billion from the week before, which those who follow the FRBNY’s almost daily POMO liquidity explosion know all too well. Indicatively, Japan owns $821 billion and China, $847 billion. We believe that within one week the Fed will surpass Japan as the second largest holder of Treasurys, and China, the current top holder, in just over a month.

Related: In 2009, the Federal Reserve Bought 80% of U.S. Debt


Despite Clinton Pledge, State Department to Pay Out Billions More to Mercenaries

September 30th, 2010

Via: Wired:

Get ready to meet America’s new mercenaries. They could be the same as the old ones.

A new multibillion-dollar private security contract to protect U.S. diplomats is “about to drop” as early as this week, say two State Department sources, who requested anonymity because the contract is not yet finalized and they are not authorized to speak with the press.

So much for Secretary of State Hillary Rodham Clinton’s one-time campaign pledge to ban “private mercenary firms.”

Neither source would say which private security firms have won the four-year contract or how much it will ultimately be worth. The last Worldwide Protective Services contract, awarded in 2005, went to Blackwater, Triple Canopy and DynCorp. Rough estimates place that contract’s value at $2.2 billion.

This one is likely to be even more lucrative. That’s because this time, the reduction and forthcoming withdrawal of U.S. troops in Iraq is causing the State Department to splurge on private security.


The U.S. Military Depends on China for the Metals Required to Build Smart Bombs

September 30th, 2010

Via: Bloomberg:

A senior manager at a company that churns out metals routinely used in U.S. smart bombs pauses in mid-sentence when his phone rings: a Wall Street stockbroker looking for information. He makes a note to have an assistant call back — someone who is fluent in English, not just Chinese.

“It’s a seller’s market now,” says Bai Baosheng, 43, puffing a cigarette in his office in Baotou, China, where his company sells bags of powder containing a metallic element known as neodymium, vital in tiny magnets that direct the fins of bombs dropped by U.S. Air Force jets in Afghanistan.

A generation after Chinese leader Deng Xiaoping made mastering neodymium and 16 other elements known as rare earths a priority, China dominates the market, with far-reaching effects ranging from global trade friction to U.S. job losses and threats to national security.

The U.S. handed its main economic rival power to dictate access to these building blocks of modern weapons by ceding control of prices and supply, according to dozens of interviews with industry executives, congressional leaders and policy experts. China in July reduced rare-earth export quotas for the rest of the year by 72 percent, sending prices up more than sixfold for some elements.

Military officials are only now conducting an inventory of where and how U.S. suppliers use the obscure but essential substances — including those that silence the whoosh of Boeing Co. helicopter blades, direct Raytheon Co. missiles and target guns in General Dynamics Corp. tanks.

“The Pentagon has been incredibly negligent,” said Peter Leitner, who was a senior strategic trade adviser at the Defense Department from 1986 to 2007. “There are plenty of early warning signs that China will use its leverage over these materials as a weapon.”


Ireland: Banking Wreck

September 30th, 2010

Via: Bloomberg:

Ireland is preparing to take majority control of Allied Irish Banks Plc and pump extra cash into Anglo Irish Bank Corp., raising the cost of repairing the financial system to as much as 50 billion euros ($68 billion).

“The Irish banking system is at rock bottom today,” Finance Minister Brian Lenihan said today in a Bloomberg Television interview in Dublin. He rejected speculation Ireland will need outside help. “It can only revive from now because it’s recapitalized and reformed,” he said.

Ireland’s deteriorating finances fueled investor concerns that it would become the first government after Greece to tap the 750 euro-billion rescue fund set up by the European Union and International Monetary fund to stanch the debt crisis. Irish bonds have plunged this month, sending the yield on 10-year securities to higher than any other euro nation except Greece.

The cost of bailing out the country’s banks may ultimately rise to about 50 billion euros, under a “stress case” scenario for Anglo Irish, according to figures published by the country’s finance ministry and the central bank in Dublin today. The base case estimate is about 45 billion euros, the figures show. Allied Irish may need as much as 3 billion euros.

Among the biggest Irish lenders, only Bank of Ireland Plc and Irish Life & Permanent Plc will remain outside state control after the bailouts.


Average Distressed Property Sells at 26% Discount; Inventory of These Properties Still Increasing

September 30th, 2010

Via: Bloomberg:

Homes in the foreclosure process sold at an average 26 percent discount in the second quarter as almost one-fourth of all U.S. transactions involved properties in some stage of mortgage distress, according to RealtyTrac Inc.

A total of 248,534 homes that sold in the period had received a default or auction notice or been seized by banks, RealtyTrac said in a report today. The number was up 5 percent from the first quarter and down 20 percent from a year earlier, according to the Irvine, California-based data seller.

“We’re still clearly building up more distressed inventory,” Rick Sharga, RealtyTrac’s senior vice president, said in a telephone interview. “That will either put downward pressure on prices or keep them from going up.”

The discount reflects the average sales price of homes in the foreclosure process compared with properties not in distress, according to RealtyTrac. About 24 percent of all homes sold were in some stage of foreclosure, down from 31 percent in the first quarter. The average price of a distressed property was $174,198, up from $171,971, the company said.

Foreclosures are adding to a swelling U.S. housing supply as an unemployment rate of 9.6 percent and the end of a federal homebuyer tax credit dampen purchases. Home seizures in August reached a record for the third time in five months, with more than 95,000 repossessions, RealtyTrac said earlier this month. Home prices dropped in July, the eighth consecutive year-over- year decline, the Federal Housing Finance Agency said Sept. 22.


Fort Hood: Army’s Largest Base Had Four Apparent Suicides in One Weekend

September 30th, 2010

Via: CNN:

Four soldiers from Fort Hood, Texas died over the week. In all four cases, it appears the soldiers, all decorated veterans from the wars in Iraq or Afghanistan, took their own lives, according to Christopher Haug, a Fort Hood spokesman.

If confirmed as suicides, it would be on top of 14 other suicides on the base this year. Base officials called a news conference for Wednesday afternoon to discuss the problem of suicides at the huge base in central Texas.

“Every one of these is tragic,” said Maj. Gen. William Grimsley, the post commander. “It’s personally and professionally frustrating as a leader.”

Grimsley did not announce any major action or response during the news conference. “I don’t think there is a simple answer,” he said.

The recent spate of incidents, began Friday Sept. 24 when the body of Pvt. Antonio E. Heath, 24, of Warren, New York, was found in Temple, Texas, the victim of a gunshot wound. Heath was deployed to Iraq for most of 2009 and earned a number of medals including the Army Commendation Medal.

The next day, Master Sgt. Baldemar Gonzales, 39, of Victoria, Texas was found dead in his residence on Fort Hood. During his service he had fought in Operation Desert Storm and Operation Iraqi Freedom. During that time he earned a Bronze Star, a Meritorious Service Medal with one oak leaf cluster, an Army Commendation Medal with four oak leaf clusters as well as numerous other decorations.

That same day the body of Sgt. Timothy Ryan Rinella, 29, of Chester, Virginia, was found in his home in Copperas Cove, just outside of Fort Hood. He had an “apparent gunshot wound,” according to information released by Fort Hood.

Rinella served three tours of duty in Iraq and one tour in Afghanistan.

And then on Sunday, Sgt. Michael F. Franklin and his wife, Jessie, were found dead of apparent gunshot wounds in their home on the post. The case is being investigated as a murder-suicide. They were the parents of a 6-year-old daughter and 2-year-old son. Franklin served two tours of duty in Iraq in just the past four years, earning an Army Commendation Medal with two oak leaf clusters and several other decorations.


Researchers Find Phone Apps Sending Data Without Notification

September 30th, 2010

Via: PhysOrg:

Publicly available cell-phone applications from application markets are releasing consumers’ private information to online advertisers, according to a joint study by Intel Labs, Penn State, and Duke University.

Flicking through a wallpaper app with backgrounds of Mickey Mouse and a tropical waterfall, Peter Gilbert gets a plain, black and white text notification on his smartphone.

A third of the way down the screen it says, “Taint: Phone Number, IMEI, ICCID (sim card identifier).” The message alerts Gilbert that the wallpaper app has sent his phone’s number and other identifying information to imnet.us. Checking online, it appears the address is a website in Shenzhen, China.

The notification came from TaintDroid, a prototype extension to the Android mobile-phone platform designed to identify apps that transmit private data. The phone-based tool monitors how applications access and use privacy sensitive data, such as location, microphone, camera and phone numbers, and provides feedback within seconds of using a newly installed app.

TaintDroid recently identified that 15 of 30 randomly selected, popular, free Android Marketplace applications sent users’ private information to remote advertising servers and two-thirds of the apps handled data in ambiguous ways.


‘Slavery’ Uncovered on Trawlers Fishing for Europe

September 30th, 2010

Via: Guardian:

Shocking evidence of conditions akin to slavery on trawlers that provide fish for European dinner tables has been found in an investigation off the coast of west Africa.

Forced labour and human rights abuses involving African crews have been uncovered on trawlers fishing illegally for the European market by investigators for an environmental campaign group.

The Environmental Justice Foundation found conditions on board including incarceration, violence, withholding of pay, confiscation of documents, confinement on board for months or even years, and lack of clean water.

The EJF found hi-tech vessels operating without appropriate licences in fishing exclusion zones off the coast of Sierra Leone and Guinea over the last four years. The ships involved all carried EU numbers, indicating that they were licensed to import to Europe having theoretically passed strict hygiene standards.

“We didn’t set out to look at human rights but rather to tackle the illegal fishing that’s decimating fish stocks, but having been on board we have seen conditions that unquestionably meet the UN official definition of forced labour or modern-day slavery,” EJF investigator Duncan Copeland said. A report on the abuses is published by the foundation today.

Its photographs and film of the areas in which the crews were working and sleeping show quarters with ceilings less than a metre high where the men cannot stand up. Temperatures in the fish holds on some vessels where men were being required to sort, process and pack fish for lucrative European and Asian markets were 40 to 45 degrees, with no ventilation, On some vessels the crews of up to 200 had little access to clean drinking water.

The trawlers have mostly been identified engaging in pirate fishing off west Africa. Many of the men on board have been recruited from the area around the Senegalese capital, Dakar. Others have been recruited from rural areas of Asia, including China and Vietnam, by agents.

According to a recent estimate illegal fishing accounts for between 13% and 31% of total catches worldwide each year, but accurate figures are hard to come by.


« Previous Page — Next Page »