Turning Poverty Into A Multibillion-Dollar Industry
June 8th, 2010Via: NPR:
Payday lending operations have grown rapidly in the United States since the early 1990s. At the industry’s peak a few years ago, there were more payday lenders in the United States than McDonald’s and Burger King stores — combined.
“The payday lender is kind of the emergency banker for the working poor,” explains journalist Gary Rivlin. “The idea is that you have some bills that you have to pay today — your check isn’t coming for a couple weeks, and you can take a loan out against that upcoming check.”
In return, a person agrees to pay interest on the loan — which can be up to “200 percent interest or more on their money,” Rivlin says. “It’s a bridge loan to cover a gap, but the problem is, the gap keeps getting wider and wider.”
Rivlin goes behind the scenes of the payday lending industry in his new book Broke, USA, which examines the $33 billion-a-year “poverty industry.” Rivlin, who attended an annual conference of check cashers to learn industry tips, says he decided to write about the industry because of its rapid growth in recent years.
“I was intrigued by how big these companies had become,” he says. “It used to be that you could drive a Cadillac and have a nice big home through check-cashing or as a pawnbroker. But now people are making tens of millions, if not hundreds of millions, off of these businesses. I wanted to explore a world that seemed upside down to me — where people with little money in their pockets was good for business.”
Gold: Record High
June 8th, 2010WARNING: This is not a recommendation to buy, sell of hold any financial instrument.
Short term gold longs, beware of the possible double top situation around the $1250 level.
Via: Bloomberg:
Gold rose to a record on demand for a haven from financial turmoil in Europe.
Gold futures rose to $1,254.50 an ounce in New York and also touched highs in sterling, euros and Swiss francs. European equities fell and Fitch Ratings said the U.K. must deepen budget cuts to protect its top credit rating. Gold has gained 13 percent this year as investors have lost confidence in currencies. The euro has plunged 17 percent against the dollar.
“The fear in Europe is very palpable, and it’s spreading to the U.S.,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “Gold is the beneficiary of increased worries about expanding sovereign debt, slowing economies and the temptation to devalue currencies. The market is focused on the expanding contagion.”
Afghanistan: The Longest War in American History
June 8th, 2010As long as you don’t count the Cold War, but never mind all of that.
Via: ABC News:
The Afghan war was enormously popular when it began on a fall Sunday eight and a half years ago. Less than a month had passed since the September 11 attacks, and President Bush could draw on deep wells of support when he ordered air strikes against Kabul, Jalalabad and the Taliban stronghold at Kandahar.
“We are supported,” Bush said that day, with only slight exaggeration, “by the collective will of the world.”
By mid-November American forces had driven the Taliban from the capital; at month’s end Kandahar was in the U.S. sights; in early December the Taliban leadership fled, and Marines set up a base near the Kandahar airfield.
No one proclaimed “Mission Accomplished,” but they might as well have. Surely, it seemed, this would be a brief campaign.
On the one-year anniversary, in October 2002, Secretary of Defense Donald Rumsfeld told CNN, “The Taliban are gone. The Al Qaeda are gone.”
And yet here we are, nearly a decade since that October Sunday, and the end of this often-tabbed “Other War” is hard to see, or fathom. Under the order of a new commander-in-chief, the U.S. is now “surging” forces into Afghanistan; a new and complex mission looms in Kandahar; and the Taliban are “surging,” too – to devastating effect.
As I began this column we received word that 15 more coalition soldiers had been killed in the last two days in Afghanistan; 11 of the dead were American. Their names will be added to a grim roster whose numbers recently cleared 1,000.
And today “The Other War” has gained a fresh and dubious distinction: it is the longest war in our nation’s history, surpassing the conflict in Vietnam.
Hooked on Gadgets, and Paying a Mental Price
June 8th, 2010Via: New York Times:
When one of the most important e-mail messages of his life landed in his in-box a few years ago, Kord Campbell overlooked it.
Not just for a day or two, but 12 days. He finally saw it while sifting through old messages: a big company wanted to buy his Internet start-up.
“I stood up from my desk and said, ‘Oh my God, oh my God, oh my God,’ ” Mr. Campbell said. “It’s kind of hard to miss an e-mail like that, but I did.”
The message had slipped by him amid an electronic flood: two computer screens alive with e-mail, instant messages, online chats, a Web browser and the computer code he was writing. (View an interactive panorama of Mr. Campbell’s workstation.)
While he managed to salvage the $1.3 million deal after apologizing to his suitor, Mr. Campbell continues to struggle with the effects of the deluge of data. Even after he unplugs, he craves the stimulation he gets from his electronic gadgets. He forgets things like dinner plans, and he has trouble focusing on his family.
His wife, Brenda, complains, “It seems like he can no longer be fully in the moment.”
This is your brain on computers.
Scientists say juggling e-mail, phone calls and other incoming information can change how people think and behave. They say our ability to focus is being undermined by bursts of information.
These play to a primitive impulse to respond to immediate opportunities and threats. The stimulation provokes excitement — a dopamine squirt — that researchers say can be addictive. In its absence, people feel bored.
The resulting distractions can have deadly consequences, as when cellphone-wielding drivers and train engineers cause wrecks. And for millions of people like Mr. Campbell, these urges can inflict nicks and cuts on creativity and deep thought, interrupting work and family life.
While many people say multitasking makes them more productive, research shows otherwise. Heavy multitaskers actually have more trouble focusing and shutting out irrelevant information, scientists say, and they experience more stress.
And scientists are discovering that even after the multitasking ends, fractured thinking and lack of focus persist. In other words, this is also your brain off computers.
“The technology is rewiring our brains,” said Nora Volkow, director of the National Institute of Drug Abuse and one of the world’s leading brain scientists. She and other researchers compare the lure of digital stimulation less to that of drugs and alcohol than to food and sex, which are essential but counterproductive in excess.
Technology use can benefit the brain in some ways, researchers say. Imaging studies show the brains of Internet users become more efficient at finding information. And players of some video games develop better visual acuity.
More broadly, cellphones and computers have transformed life. They let people escape their cubicles and work anywhere. They shrink distances and handle countless mundane tasks, freeing up time for more exciting pursuits.
For better or worse, the consumption of media, as varied as e-mail and TV, has exploded. In 2008, people consumed three times as much information each day as they did in 1960. And they are constantly shifting their attention. Computer users at work change windows or check e-mail or other programs nearly 37 times an hour, new research shows.
The nonstop interactivity is one of the most significant shifts ever in the human environment, said Adam Gazzaley, a neuroscientist at the University of California, San Francisco.
“We are exposing our brains to an environment and asking them to do things we weren’t necessarily evolved to do,” he said. “We know already there are consequences.”
Mr. Campbell, 43, came of age with the personal computer, and he is a heavier user of technology than most. But researchers say the habits and struggles of Mr. Campbell and his family typify what many experience — and what many more will, if trends continue.
For him, the tensions feel increasingly acute, and the effects harder to shake.
The Campbells recently moved to California from Oklahoma to start a software venture. Mr. Campbell’s life revolves around computers. (View a slide show on how the Campbells interact with technology.)
He goes to sleep with a laptop or iPhone on his chest, and when he wakes, he goes online. He and Mrs. Campbell, 39, head to the tidy kitchen in their four-bedroom hillside rental in Orinda, an affluent suburb of San Francisco, where she makes breakfast and watches a TV news feed in the corner of the computer screen while he uses the rest of the monitor to check his e-mail.
Major spats have arisen because Mr. Campbell escapes into video games during tough emotional stretches. On family vacations, he has trouble putting down his devices. When he rides the subway to San Francisco, he knows he will be offline 221 seconds as the train goes through a tunnel.
Their 16-year-old son, Connor, tall and polite like his father, recently received his first C’s, which his family blames on distraction from his gadgets. Their 8-year-old daughter, Lily, like her mother, playfully tells her father that he favors technology over family.
“I would love for him to totally unplug, to be totally engaged,” says Mrs. Campbell, who adds that he becomes “crotchety until he gets his fix.” But she would not try to force a change.
“He loves it. Technology is part of the fabric of who he is,” she says. “If I hated technology, I’d be hating him, and a part of who my son is too.”
Always On
Mr. Campbell, whose given name is Thomas, had an early start with technology in Oklahoma City. When he was in third grade, his parents bought him Pong, a video game. Then came a string of game consoles and PCs, which he learned to program.
In high school, he balanced computers, basketball and a romance with Brenda, a cheerleader with a gorgeous singing voice. He studied too, with focus, uninterrupted by e-mail. “I did my homework because I needed to get it done,” he said. “I didn’t have anything else to do.”
He left college to help with a family business, then set up a lawn mowing service. At night he would read, play video games, hang out with Brenda and, as she remembers it, “talk a lot more.”
In 1996, he started a successful Internet provider. Then he built the start-up that he sold for $1.3 million in 2003 to LookSmart, a search engine.
Mr. Campbell loves the rush of modern life and keeping up with the latest information. “I want to be the first to hear when the aliens land,” he said, laughing. But other times, he fantasizes about living in pioneer days when things moved more slowly: “I can’t keep everything in my head.”
No wonder. As he came of age, so did a new era of data and communication.
At home, people consume 12 hours of media a day on average, when an hour spent with, say, the Internet and TV simultaneously counts as two hours. That compares with five hours in 1960, say researchers at the University of California, San Diego. Computer users visit an average of 40 Web sites a day, according to research by RescueTime, which offers time-management tools.
As computers have changed, so has the understanding of the human brain. Until 15 years ago, scientists thought the brain stopped developing after childhood. Now they understand that its neural networks continue to develop, influenced by things like learning skills.
So not long after Eyal Ophir arrived at Stanford in 2004, he wondered whether heavy multitasking might be leading to changes in a characteristic of the brain long thought immutable: that humans can process only a single stream of information at a time.
Going back a half-century, tests had shown that the brain could barely process two streams, and could not simultaneously make decisions about them. But Mr. Ophir, a student-turned-researcher, thought multitaskers might be rewiring themselves to handle the load.
His passion was personal. He had spent seven years in Israeli intelligence after being weeded out of the air force — partly, he felt, because he was not a good multitasker. Could his brain be retrained?
Mr. Ophir, like others around the country studying how technology bent the brain, was startled by what he discovered.
The Myth of Multitasking
The test subjects were divided into two groups: those classified as heavy multitaskers based on their answers to questions about how they used technology, and those who were not.
In a test created by Mr. Ophir and his colleagues, subjects at a computer were briefly shown an image of red rectangles. Then they saw a similar image and were asked whether any of the rectangles had moved. It was a simple task until the addition of a twist: blue rectangles were added, and the subjects were told to ignore them. (Play a game testing how well you filter out distractions.)
The multitaskers then did a significantly worse job than the non-multitaskers at recognizing whether red rectangles had changed position. In other words, they had trouble filtering out the blue ones — the irrelevant information.
So, too, the multitaskers took longer than non-multitaskers to switch among tasks, like differentiating vowels from consonants and then odd from even numbers. The multitaskers were shown to be less efficient at juggling problems. (Play a game testing how well you switch between tasks.)
Other tests at Stanford, an important center for research in this fast-growing field, showed multitaskers tended to search for new information rather than accept a reward for putting older, more valuable information to work.
Researchers say these findings point to an interesting dynamic: multitaskers seem more sensitive than non-multitaskers to incoming information.
The results also illustrate an age-old conflict in the brain, one that technology may be intensifying. A portion of the brain acts as a control tower, helping a person focus and set priorities. More primitive parts of the brain, like those that process sight and sound, demand that it pay attention to new information, bombarding the control tower when they are stimulated.
Researchers say there is an evolutionary rationale for the pressure this barrage puts on the brain. The lower-brain functions alert humans to danger, like a nearby lion, overriding goals like building a hut. In the modern world, the chime of incoming e-mail can override the goal of writing a business plan or playing catch with the children.
“Throughout evolutionary history, a big surprise would get everyone’s brain thinking,” said Clifford Nass, a communications professor at Stanford. “But we’ve got a large and growing group of people who think the slightest hint that something interesting might be going on is like catnip. They can’t ignore it.”
Mr. Nass says the Stanford studies are important because they show multitasking’s lingering effects: “The scary part for guys like Kord is, they can’t shut off their multitasking tendencies when they’re not multitasking.”
Melina Uncapher, a neurobiologist on the Stanford team, said she and other researchers were unsure whether the muddied multitaskers were simply prone to distraction and would have had trouble focusing in any era. But she added that the idea that information overload causes distraction was supported by more and more research.
A study at the University of California, Irvine, found that people interrupted by e-mail reported significantly increased stress compared with those left to focus. Stress hormones have been shown to reduce short-term memory, said Gary Small, a psychiatrist at the University of California, Los Angeles.
Preliminary research shows some people can more easily juggle multiple information streams. These “supertaskers” represent less than 3 percent of the population, according to scientists at the University of Utah.
Other research shows computer use has neurological advantages. In imaging studies, Dr. Small observed that Internet users showed greater brain activity than nonusers, suggesting they were growing their neural circuitry.
At the University of Rochester, researchers found that players of some fast-paced video games can track the movement of a third more objects on a screen than nonplayers. They say the games can improve reaction and the ability to pick out details amid clutter.
“In a sense, those games have a very strong both rehabilitative and educational power,” said the lead researcher, Daphne Bavelier, who is working with others in the field to channel these changes into real-world benefits like safer driving.
There is a vibrant debate among scientists over whether technology’s influence on behavior and the brain is good or bad, and how significant it is.
“The bottom line is, the brain is wired to adapt,” said Steven Yantis, a professor of brain sciences at Johns Hopkins University. “There’s no question that rewiring goes on all the time,” he added. But he said it was too early to say whether the changes caused by technology were materially different from others in the past.
Mr. Ophir is loath to call the cognitive changes bad or good, though the impact on analysis and creativity worries him.
He is not just worried about other people. Shortly after he came to Stanford, a professor thanked him for being the one student in class paying full attention and not using a computer or phone. But he recently began using an iPhone and noticed a change; he felt its pull, even when playing with his daughter.
“The media is changing me,” he said. “I hear this internal ping that says: check e-mail and voice mail.”
“I have to work to suppress it.”
Kord Campbell does not bother to suppress it, or no longer can.
Interrupted by a Corpse
It is a Wednesday in April, and in 10 minutes, Mr. Campbell has an online conference call that could determine the fate of his new venture, called Loggly. It makes software that helps companies understand the clicking and buying patterns of their online customers.
Mr. Campbell and his colleagues, each working from a home office, are frantically trying to set up a program that will let them share images with executives at their prospective partner.
But at the moment when Mr. Campbell most needs to focus on that urgent task, something else competes for his attention: “Man Found Dead Inside His Business.”
That is the tweet that appears on the left-most of Mr. Campbell’s array of monitors, which he has expanded to three screens, at times adding a laptop and an iPad.
On the left screen, Mr. Campbell follows the tweets of 1,100 people, along with instant messages and group chats. The middle monitor displays a dark field filled with computer code, along with Skype, a service that allows Mr. Campbell to talk to his colleagues, sometimes using video. The monitor on the right keeps e-mail, a calendar, a Web browser and a music player.
Even with the meeting fast approaching, Mr. Campbell cannot resist the tweet about the corpse. He clicks on the link in it, glances at the article and dismisses it. “It’s some article about something somewhere,” he says, annoyed by the ads for jeans popping up.
The program gets fixed, and the meeting turns out to be fruitful: the partners are ready to do business. A colleague says via instant message: “YES.”
Other times, Mr. Campbell’s information juggling has taken a more serious toll. A few weeks earlier, he once again overlooked an e-mail message from a prospective investor. Another time, Mr. Campbell signed the company up for the wrong type of business account on Amazon.com, costing $300 a month for six months before he got around to correcting it. He has burned hamburgers on the grill, forgotten to pick up the children and lingered in the bathroom playing video games on an iPhone.
Mr. Campbell can be unaware of his own habits. In a two-and-a-half hour stretch one recent morning, he switched rapidly between e-mail and several other programs, according to data from RescueTime, which monitored his computer use with his permission. But when asked later what he was doing in that period, Mr. Campbell said he had been on a long Skype call, and “may have pulled up an e-mail or two.”
The kind of disconnection Mr. Campbell experiences is not an entirely new problem, of course. As they did in earlier eras, people can become so lost in work, hobbies or TV that they fail to pay attention to family.
Mr. Campbell concedes that, even without technology, he may work or play obsessively, just as his father immersed himself in crossword puzzles. But he says this era is different because he can multitask anyplace, anytime.
“It’s a mixed blessing,” he said. “If you’re not careful, your marriage can fall apart or your kids can be ready to play and you’ll get distracted.”
The Toll on Children
Father and son sit in armchairs. Controllers in hand, they engage in a fierce video game battle, displayed on the nearby flat-panel TV, as Lily watches.
They are playing Super Smash Bros. Brawl, a cartoonish animated fight between characters that battle using anvils, explosives and other weapons.
“Kill him, Dad,” Lily screams. To no avail. Connor regularly beats his father, prompting expletives and, once, a thrown pillow. But there is bonding and mutual respect.
“He’s a lot more tactical,” says Connor. “But I’m really good at quick reflexes.”
Screens big and small are central to the Campbell family’s leisure time. Connor and his mother relax while watching TV shows like “Heroes.” Lily has an iPod Touch, a portable DVD player and her own laptop, which she uses to watch videos, listen to music and play games.
Lily, a second-grader, is allowed only an hour a day of unstructured time, which she often spends with her devices. The laptop can consume her.
“When she’s on it, you can holler her name all day and she won’t hear,” Mrs. Campbell said.
Researchers worry that constant digital stimulation like this creates attention problems for children with brains that are still developing, who already struggle to set priorities and resist impulses.
Connor’s troubles started late last year. He could not focus on homework. No wonder, perhaps. On his bedroom desk sit two monitors, one with his music collection, one with Facebook and Reddit, a social site with news links that he and his father love. His iPhone availed him to relentless texting with his girlfriend.
When he studied, “a little voice would be saying, ‘Look up’ at the computer, and I’d look up,” Connor said. “Normally, I’d say I want to only read for a few minutes, but I’d search every corner of Reddit and then check Facebook.”
His Web browsing informs him. “He’s a fact hound,” Mr. Campbell brags. “Connor is, other than programming, extremely technical. He’s 100 percent Internet savvy.”
But the parents worry too. “Connor is obsessed,” his mother said. “Kord says we have to teach him balance.”
So in January, they held a family meeting. Study time now takes place in a group setting at the dinner table after everyone has finished eating. It feels, Mr. Campbell says, like togetherness.
No Vacations
For spring break, the family rented a cottage in Carmel, Calif. Mrs. Campbell hoped everyone would unplug.
But the day before they left, the iPad from Apple came out, and Mr. Campbell snapped one up. The next night, their first on vacation, “We didn’t go out to dinner,” Mrs. Campbell mourned. “We just sat there on our devices.”
She rallied the troops the next day to the aquarium. Her husband joined them for a bit but then begged out to do e-mail on his phone.
Later she found him playing video games.
The trip came as Mr. Campbell was trying to raise several million dollars for his new venture, a goal that he achieved. Brenda said she understood that his pursuit required intensity but was less understanding of the accompanying surge in video game.
His behavior brought about a discussion between them. Mrs. Campbell said he told her that he was capable of logging off, citing a trip to Hawaii several years ago that they called their second honeymoon.
“What trip are you thinking about?” she said she asked him. She recalled that he had spent two hours a day online in the hotel’s business center.
On Thursday, their fourth day in Carmel, Mr. Campbell spent the day at the beach with his family. They flew a kite and played whiffle ball.
Connor unplugged too. “It changes the mood of everything when everybody is present,” Mrs. Campbell said.
The next day, the family drove home, and Mr. Campbell disappeared into his office.
Technology use is growing for Mrs. Campbell as well. She divides her time between keeping the books of her husband’s company, homemaking and working at the school library. She checks e-mail 25 times a day, sends texts and uses Facebook.
Recently, she was baking peanut butter cookies for Teacher Appreciation Day when her phone chimed in the living room. She answered a text, then became lost in Facebook, forgot about the cookies and burned them. She started a new batch, but heard the phone again, got lost in messaging, and burned those too. Out of ingredients and shamed, she bought cookies at the store.
She feels less focused and has trouble completing projects. Some days, she promises herself she will ignore her device. “It’s like a diet — you have good intentions in the morning and then you’re like, ‘There went that,’ ” she said.
Mr. Nass at Stanford thinks the ultimate risk of heavy technology use is that it diminishes empathy by limiting how much people engage with one another, even in the same room.
“The way we become more human is by paying attention to each other,” he said. “It shows how much you care.”
That empathy, Mr. Nass said, is essential to the human condition. “We are at an inflection point,” he said. “A significant fraction of people’s experiences are now fragmented.”
Research Credit: ltcolonelnemo
New Oil Plume Evidence Uncovered
June 7th, 2010Via: CNN:
As if the pictures of birds, fish and animals killed by floating oil in the Gulf of Mexico is not disturbing enough, scientists now say they have found evidence of another danger lurking underwater.
The University of South Florida recently discovered a second oil plume in the northeastern gulf. The first plume was found by Mississippi universities in early May.
USF has concluded microscopic oil droplets are forming deep water oil plumes. After a weeklong analysis of water samples, USF scientists found more oil in deeper water.
“These hydrocarbons are from depth and not associated with sinking degraded oil but associated with the source of the Deep Horizon well head,” said USF Chemical Oceanographer David Hollander.
Through isotopic or microscopic fingerprinting, Hollander and his USF crew were able to show the oil in the plume came from BP’s blown out oil well. The surface oil’s so-called fingerprint matched the tiny underwater droplet’s fingerprint.
“We’ve taken molecular isotopic approaches which is like a fingerprint on a smoking gun,” Hollander said.
U.S. Intelligence Analyst Arrested in Wikileaks Video Probe
June 7th, 2010I have a bit of trouble believing what Wired is reporting here.
One just can’t go “rummaging through” compartmented files. Each person with access to a particular compartment would have to be individually cleared for that compartment.
Say the compartmented thing is a new spy plane that is designated with the codeword AAA. Bob works on one of the sensors that has the codeword AAA/BBB. Jim works on the avionics. That compartment is AAA/CCC. Bob, feeling bored one day, can’t just go have a look at the AAA/CCC avionics data. He wouldn’t have access. Jim, likewise, can’t access the AAA/BBB sensor compartment.
Also, I’ve heard stories from people with access to various classified, “air gapped” systems and they report that there’s no way to get data off of those systems because the floppy and optical drives are removed and USB is disabled or the ports have been filled in with epoxy to prevent the use of flash drives.
Obviously, there’s the way that things are supposed to work in theory, and then there’s what happens on the ground. Are there TS/SCI systems with CDRW drives and working USB ports? That would be hilarious and encouraging if true.
Then there’s this:
From the chat logs provided by Lamo, and examined by Wired.com, it appears Manning sensed a kindred spirit in the ex-hacker. He discussed personal issues that got him into trouble with his superiors and left him socially isolated, and said he had been demoted and was headed for an early discharge from the Army.
In other words, this guy wouldn’t have access to jack shit if this is true. The first thing they would do is pull his access if there were issues with his superiors.
Read about what happened to Russell Tice when he got on the wrong end of his supervisors at the NSA. He went from intercept operations to fueling and cleaning NSA vehicles and then unloading the NSA’s furniture at its warehouses!
Where am I going here? I don’t know. I’m just saying that some of this doesn’t make any sense.
Via: Wired:
Federal officials have arrested an Army intelligence analyst who boasted of giving classified U.S. combat video and hundreds of thousands of classified State Department records to whistleblower site Wikileaks, Wired.com has learned.
SPC Bradley Manning, 22, of Potomac, Maryland, was stationed at Forward Operating Base Hammer, 40 miles east of Baghdad, where he was arrested nearly two weeks ago by the Army’s Criminal Investigation Division. A family member says he’s being held in custody in Kuwait, and has not been formally charged.
Manning was turned in late last month by a former computer hacker with whom he spoke online. In the course of their chats, Manning took credit for leaking a headline-making video of a helicopter attack that Wikileaks posted online in April. The video showed a deadly 2007 U.S. helicopter air strike in Baghdad that claimed the lives of several innocent civilians.
He said he also leaked three other items to Wikileaks: a separate video showing the notorious 2009 Garani air strike in Afghanistan that Wikileaks has previously acknowledged is in its possession; a classified Army document evaluating Wikileaks as a security threat, which the site posted in March; and a previously unreported breach consisting of 260,000 classified U.S. diplomatic cables that Manning described as exposing “almost criminal political back dealings.”
“Hillary Clinton, and several thousand diplomats around the world are going to have a heart attack when they wake up one morning, and find an entire repository of classified foreign policy is available, in searchable format, to the public,” Manning wrote.
Wired.com could not confirm whether Wikileaks received the supposed 260,000 classified embassy dispatches. To date, a single classified diplomatic cable has appeared on the site: released last February, it describes a U.S. embassy meeting with the government of Iceland. E-mail and a voice mail message left for Wikileaks founder Julian Assange on Sunday were not answered by the time this article was published.
The State Department said it was not aware of the arrest or the allegedly leaked cables. The FBI was not prepared to comment when asked about Manning.
Army spokesman Gary Tallman was unaware of the investigation but said, “If you have a security clearance and wittingly or unwittingly provide classified info to anyone who doesn’t have security clearance or a need to know, you have violated security regulations and potentially the law.”
Manning’s arrest comes as Wikileaks has ratcheted up pressure against various governments over the years with embarrassing documents acquired through a global whistleblower network that is seemingly impervious to threats from adversaries. Its operations are hosted on servers in several countries, and it uses high-level encryption for its document submission process, providing secure anonymity for its sources and a safe haven from legal repercussions for itself. Since its launch in 2006, it has never outed a source through its own actions, either voluntarily or involuntarily.
Manning came to the attention of the FBI and Army investigators after he contacted former hacker Adrian Lamo late last month over instant messenger and e-mail. Lamo had just been the subject of a Wired.com article. Very quickly in his exchange with the ex-hacker, Manning claimed to be the Wikileaks video leaker.
“If you had unprecedented access to classified networks 14 hours a day 7 days a week for 8+ months, what would you do?” Manning asked.
From the chat logs provided by Lamo, and examined by Wired.com, it appears Manning sensed a kindred spirit in the ex-hacker. He discussed personal issues that got him into trouble with his superiors and left him socially isolated, and said he had been demoted and was headed for an early discharge from the Army.
When Manning told Lamo that he leaked a quarter-million classified embassy cables, Lamo contacted the Army, and then met with Army CID investigators and the FBI at a Starbucks near his house in Carmichael, California, where he passed the agents a copy of the chat logs. At their second meeting with Lamo on May 27, FBI agents from the Oakland Field Office told the hacker that Manning had been arrested the day before in Iraq by Army CID investigators.
Lamo has contributed funds to Wikileaks in the past, and says he agonized over the decision to expose Manning — he says he’s frequently contacted by hackers who want to talk about their adventures, and he’s never considered reporting anyone before. The supposed diplomatic cable leak, however, made him believe Manning’s actions were genuinely dangerous to U.S. national security.
“I wouldn’t have done this if lives weren’t in danger,” says Lamo, who discussed the details with Wired.com following Manning’s arrest. “He was in a war zone and basically trying to vacuum up as much classified information as he could, and just throwing it up into the air.”
Manning told Lamo that he enlisted in the Army in 2007 and held a Top Secret/SCI clearance, details confirmed by his friends and family members. He claimed to have been rummaging through classified military and government networks for more than a year and said that the networks contained “incredible things, awful things … that belonged in the public domain, and not on some server stored in a dark room in Washington DC.”
He first contacted Wikileaks’ Julian Assange sometime around late November last year, he claimed, after Wikileaks posted 500,000 pager messages covering a 24-hour period surrounding the September 11, 2001 terror attacks. ”I immediately recognized that they were from an NSA database, and I felt comfortable enough to come forward,” he wrote to Lamo. He said his role with Wikileaks was “a source, not quite a volunteer.”
Manning had already been sifting through the classified networks for months when he discovered the Iraq video in late 2009, he said. The video, later released by Wikileaks under the title “Collateral Murder,” shows a 2007 Army helicopter attack on a group of men, some of whom were armed, that the soldiers believed were insurgents. The attack killed two Reuters employees and an unarmed Baghdad man who stumbled on the scene afterward and tried to rescue one of the wounded by pulling him into his van. The man’s two children were in the van and suffered serious injuries in the hail of gunfire.
“At first glance it was just a bunch of guys getting shot up by a helicopter,” Manning wrote of the video. “No big deal … about two dozen more where that came from, right? But something struck me as odd with the van thing, and also the fact it was being stored in a JAG officer’s directory. So I looked into it.”
In January, while on leave in the U.S., Manning visited a close friend in Boston and confessed he’d gotten his hands on unspecified sensitive information, and was weighing leaking it, according to the friend. “He wanted to do the right thing,” says 20-year-old Tyler Watkins. “That was something I think he was struggling with.”
Manning passed the video to Wikileaks in February, he told Lamo. After April 5 when the video was released and made headlines Manning contacted Watkins from Iraq asking him about the reaction in the U.S.
“He would message me, Are people talking about it?… Are the media saying anything?,” Watkins said. “That was one of his major concerns, that once he had done this, was it really going to make a difference?… He didn’t want to do this just to cause a stir. … He wanted people held accountable and wanted to see this didn’t happen again.”
Watkins doesn’t know what else Manning might have sent to Wikileaks. But in his chats with Lamo, Manning took credit for a number of other disclosures.
The second video he claimed to have leaked shows a May 2009 air strike near Garani village in Afghanistan that the local government says killed nearly 100 civilians, most of them children. The Pentagon released a report about the incident last year, but backed down from a plan to show video of the attack to reporters.
As described by Manning in his chats with Lamo, his purported leaking was made possible by lax security online and off.
Manning had access to two classified networks from two separate secured laptops: SIPRNET, the Secret-level network used by the Department of Defense and the State Department, and the Joint Worldwide Intelligence Communications System which serves both agencies at the Top Secret/SCI level.
The networks, he said, were both “air gapped” from unclassified networks, but the environment at the base made it easy to smuggle data out.
“I would come in with music on a CD-RW labeled with something like ‘Lady Gaga’, erase the music then write a compressed split file,” he wrote. “No one suspected a thing and, odds are, they never will.”
“[I] listened and lip-synced to Lady Gaga’s ‘Telephone’ while exfiltrating possibly the largest data spillage in American history,” he added later. ”Weak servers, weak logging, weak physical security, weak counter-intelligence, inattentive signal analysis… a perfect storm.”
Manning told Lamo that the Garani video was left accessible in a directory on a U.S. Central Command server, centcom.smil.mil, by officers who investigated the incident. The video, he said, was an encrypted AES-256 ZIP file.
Manning’s aunt, with whom he lived in the U.S., had heard nothing about his arrest when first contacted by Wired.com last week; Debra Van Alstyne said she last saw Manning during his leave in January and they had discussed his plans to enroll in college when his four-year stint in the Army was set to end in October 2011. She described him as smart and seemingly untroubled, with a natural talent for computers and a keen interest in global politics.
She said she became worried about her nephew recently after he disappeared from contact. Then Manning finally called Van Alstyne collect on Saturday. He told her that he was okay, but that he couldn’t discuss what was going on, Van Alstyne said. He then gave her his Facebook password and asked her to post a message on his behalf.
The message reads: “Some of you may have heard that I have been arrested for disclosure of classified information to unauthorized persons. See CollateralMurder.com.”
An Army defense attorney then phoned Van Alstyne on Sunday and said Manning is being held in protective custody in Kuwait. “He hasn’t seen the case file, but he does understand that it does have to do with that Collateral Murder video,” Van Alstyne said.
Manning’s father said Sunday that he’s shocked by his son’s arrest.
“I was in the military for 5 years,” said Brian Manning, of Oklahoma. “I had a Secret clearance, and I never divulged any information in 30 years since I got out about what I did. And Brad has always been very, very tight at adhering to the rules. Even talking to him after boot camp and stuff, he kept everything so close that he didn’t open up to anything.”
His son, he added, is “a good kid. Never been in trouble. Never been on
drugs, alcohol, nothing.”
Lamo says he felt he had no choice but to turn in Manning, but that he’s now concerned about the soldier’s status and well-being. The FBI hasn’t told Lamo what charges Manning may face, if any.
The agents did tell Lamo that he may be asked to testify against Manning. The Bureau was particularly interested in information that Manning gave Lamo about an apparently-sensitive military cybersecurity matter, Lamo said.
That seemed to be the least interesting information to Manning, however. What seemed to excite him most in his chats was his supposed leaking of the embassy cables. He anticipated returning to the states after his early discharge, and watching from the sidelines as his action bared the secret history of U.S. diplomacy around the world.
“Everywhere there’s a U.S. post, there’s a diplomatic scandal that will be revealed,” Manning wrote. “It’s open diplomacy. World-wide anarchy in CSV format. It’s Climategate with a global scope, and breathtaking depth. It’s beautiful, and horrifying.”
Autism: Mainstream Medicine Learns About GAPS
June 7th, 2010Incredibly, Dr. Natasha Campbell-McBride and her book, Gut and Psychology Syndrome weren’t mentioned in this article.
Via: Telegraph:
Autism could be turned into a “preventable” disorder after British scientists develop a simple test for the condition.
Diagnosis of autism has always been difficult and often the condition remains unrecognised until too late for treatment to have a maximum effect.
But now researchers at Imperial College London have discovered a potential way of spotting the disorder in children as young as six months old.
They have found that children with autism spectrum disorder (ASD) also suffer from disorders in their gut and that this can be detected with a simple urine test.
That would mean that intensive behavioural and social treatment could begin before the disease has caused any permanent psychological damage.
Professor Jeremy Nicholson, the author of the study, said: “Children with autism have very unusual gut microbes which we can test for before the full blown symptoms of the disease come through.
“If that is the case then it might become a preventable disease.”
It is estimated that around one in 100 people have autism, meaning there are around 500,000 in Britain.
The condition covers a wide spectrum of disorders with cases ranging from relatively mild problems with social interaction to more severe difficulties in behaviour such as not speaking or copying, rigid routines and social isolation.
While the causes of the condition remain a mystery, early and intensive treatment is known to help alleviate the symptoms.
The problem is that diagnosis can be difficult and often relies on waiting for the symptoms to develop by which time a lot of damage has been done.
At present, children are assessed for autism through a lengthy process involving a range of tests that explore the child’s social interaction, communication and imaginative skills.
Early intervention can greatly improve the progress of children with autism but it is currently difficult to establish a firm diagnosis until children begin speaking.
The latest breakthrough shows that it is possible to distinguish between autistic and non-autistic children by looking at the by-products of gut bacteria and the body’s digestive processes in the children’s urine.
Prof Nicholson, who worked with the University of South Australia, said that the test, which costs as little as £5, could be used in children as young as six months old.
Most children are not diagnosed until they are at least two.
Eventually the link between the learning difficulties and the gut microbes could be established and that could lead to “probiotic” treatments or cures.
The researchers reached their conclusions by using a Nuclear Magnetic Resonance Spectroscopy which is able to analyse the make-up of chemicals.
They used the machine on samples three groups of children aged between three and nine – 39 children who had previously been diagnosed with autism, 28 non-autistic siblings of children with autism, and 34 children who did not have autism and did not have an autistic sibling.
They found that each of the three groups had a distinct chemical fingerprint. Non-autistic children with autistic siblings had a different chemical fingerprint than those without any autistic siblings, and autistic children had a different chemical fingerprint than the other two groups.
Now they want to test the technique on a larger group of younger children in the next two years with the idea of having it available within five years for full medical approval in five.
The findings were published in the journal of Proteome Research.
Connecticut Rating Cut by Fitch
June 7th, 2010Via: Bloomberg:
Connecticut, the state with the highest tax-supported debt, had its bond rating lowered one level to AA by Fitch Ratings as it prepares to borrow money to cover a budget deficit for a second straight year.
The state, whose residents are the wealthiest in the U.S., relies “on borrowing to address its ongoing fiscal challenges in the context of already high liabilities and large projected structural gaps,” Fitch analysts Doug Offerman and Laura Porter wrote in a press release today. The analysts didn’t immediately return calls seeking comment.
Connecticut is preparing to borrow $956 million to close a budget gap in the fiscal year beginning July 1, after borrowing money last year to cover a deficit of $947.6 million, the analysts said. Lawmakers also chose to draw down the state’s rainy-day fund and raise the top income tax for residents after tax collections fell almost 15 percent in the year ending June 30, 2009, according to Fitch.
No Secrets: Julian Assange’s Mission for Total Transparency
June 7th, 2010This is a very interesting piece about Julian Assange and WikiLeaks.
Via: The New Yorker:
He had come to understand the defining human struggle not as left versus right, or faith versus reason, but as individual versus institution. As a student of Kafka, Koestler, and Solzhenitsyn, he believed that truth, creativity, love, and compassion are corrupted by institutional hierarchies, and by “patronage networks”—one of his favorite expressions—that contort the human spirit. He sketched out a manifesto of sorts, titled “Conspiracy as Governance,” which sought to apply graph theory to politics. Assange wrote that illegitimate governance was by definition conspiratorial—the product of functionaries in “collaborative secrecy, working to the detriment of a population.” He argued that, when a regime’s lines of internal communication are disrupted, the information flow among conspirators must dwindle, and that, as the flow approaches zero, the conspiracy dissolves. Leaks were an instrument of information warfare.
…
“To be completely impartial is to be an idiot. This would mean that we would have to treat the dust in the street the same as the lives of people who have been killed.”
America’s $13 Trillion Debt Poised to Overtake GDP
June 6th, 2010Via: Bloomberg:
President Barack Obama is poised to increase the U.S. debt to a level that exceeds the value of the nation’s annual economic output, a step toward what Bill Gross called a “debt super cycle.”
The CHART OF THE DAY tracks U.S. gross domestic product and the government’s total debt, which rose past $13 trillion for the first time this month. The amount owed will surpass GDP in 2012, based on forecasts by the International Monetary Fund. The lower panel shows U.S. annual GDP growth as tracked by the IMF, which projects the world’s largest economy to expand at a slower pace than the 3.2 percent average during the past five decades.
“Over the long term, interest rates on government debt will likely have to rise to attract investors,” said Hiroki Shimazu, a market economist in Tokyo at Nikko Cordial Securities Inc., a unit of Japan’s third-largest publicly traded bank. “That will be a big burden on the government and the people.”
Gross, who runs the world’s largest mutual fund at Pacific Investment Management Co. in Newport Beach, California, said in his June outlook report that “the debt super cycle trend” suggests U.S. economic growth won’t be enough to support the borrowings “if real interest rates were ever to go up instead of down.”
Dan Fuss, who manages the Loomis Sayles Bond Fund, which beat 94 percent of competitors the past year, said last week that he sold all of his Treasury bonds because of prospects interest rates will rise as the U.S. borrows unprecedented amounts. Obama is borrowing record amounts to fund spending programs to help the economy recover from its longest recession since the 1930s.
“The incremental borrower of funds in the U.S. capital markets is rapidly becoming the U.S. Treasury,” Boston-based Fuss said. “Do you really want to buy the debt of the biggest issuer?”


