Why Does the Spending Freeze Exempt the Military?
January 26th, 2010Mmm hmm.
Via: The Atlantic:
President Obama’s announced freeze on non-military discretionary spending will be chewed over by analysts and spit on by both liberals and skeptical conservatives. But one aspect of the policy that won’t receive much chewing over is its qualifier: “non-military.” Even during periods of great deficit hawkery, it’s become rote in Washington to consider military spending impregnable to the forces of budget cuts. I think this is a horrible mistake.
Last year I wrote an article for the Daily Beast that asked the White House and Congress to debate the Afghanistan escalation as though the additional resources were real money, paid for by real taxes, whose addition counted against our real deficit. Here was my last paragraph:
To be sure, there is a dimension to the Afghanistan debate that goes far beyond red and black ink. There is no mechanism for the CBO to score the critical bank-shot of securing Pakistan by strengthening our presence along the Afghan border. Also, scaling down could help our financial integrity in the eyes of the Chinese, but it will impugn our moral integrity in the world’s eyes if we permit a reign of extremist terror marked by scourges of stonings. I don’t mean to combat our generals’ advice with my own. I’m only calling for elected officials to consider the cost of war just as they would consider the cost of any other use of taxpayer dollars. Generals on the ground advocating for an expensive counterinsurgency are only reciting their best opinion. That’s their job. The president should balance their recommendations with our capacity to fulfill them. That’s his.
The Obama freeze does not “consider the cost of war just as [it] would consider the cost of any other use of taxpayer dollars.” The Obama freeze does the opposite. It treats military spending as something too precious to be touched by the frostbite.
From Spas to Banks, Mexico Economy Rides on Drugs
January 26th, 2010In other news: SEC Mulled National Security Status for AIG Details
Via: Reuters:
Mexico probably made more money in 2009 moving drugs than it did exporting oil, its single biggest legitimate foreign currency earner.
From the white Caribbean beaches of Cancun to violent towns on the U.S. border and the beauty parlors of Mexico City’s wealthy suburbs, drug cash is everywhere in Mexico. It has even propped up the country’s banking system, helping it ride out the financial crisis and aiding the country’s economy.
Smuggled into Mexico mostly from the United States in $100 bills, narco money finds its way onto the books of restaurants, construction firms and bars as drug lords try to legitimize their cash and prevent police from tracing it.
“Mexico is saturated with this money,” said George Friedman, who heads geopolitical analysis firm Stratfor.
In western Mexico, drug money started pouring into Zapopan and nearby Guadalajara in the 1980s as the Sinaloa cartel bought hospitals and real estate, said Martin Barron, a researcher at the institute that trains Mexico’s organized crime prosecutors.
Now residents in the region known in Mexico for its piety say drug smugglers barely make an effort to disguise themselves.
A strip of fancy boutiques in Zapopan was financed with drug money, says Jaime Ramirez, a local newspaper columnist who has been reporting on the drug world for two decades. As well as the Grupo Collins factory in Zapopan, a nearby car wash is also on the U.S. Treasury’s black list.
A local cemetery draws relatives of traffickers who were among the 17,000 people killed in the drug war in Mexico since 2006. “A lot of narcos are buried there. You should see it on Fathers’ Day,” Ramirez said, as a black pick-up truck with tinted windows pulled in.
Zapopan residents just shrug their shoulders when a wealthy neighbor displays traits seen as typical of a drug trafficker — wearing cowboy gear, playing loud “norteno” music from the country’s north or holding lavish parties attended by guests who arrive in pick-up trucks or SUVs.
“Living alongside them is normal,” Ramirez said. “Everybody knows when a neighbor is on the shady side.”
My U.S. Credit Card Was Deactivated After I Sent $20 to Wikileaks
January 26th, 2010Wikileaks is down for fund raising. I sent them $20 using my U.S. credit card.
The next day, Bank of America’s Magic 8 Ball deactivated my account and sent this to me:
Irregular Credit Card Activity
Account: Bank of America ending in XXXX
Date: 01/25/2010
We detected irregular activity on your Bank of America Credit Card on 01/25/2010. For your protection, you must verify this activity before you can continue using your card.
Please visit www.bankofamerica.com/myfraudprotection to review your account activity, or call us immediately at 1.800.383.0618 in the US, International call collect via the international operator at 757.677.4701. We will review the activity on your account with you and upon verification, we will remove any restrictions placed on your account.
I was pretty wild, so I decided to call in. I spent about twenty minutes on the phone verifying this, that and the other thing. I had to talk to two different BofA fraud department people. But this is the kicker: The last thing they asked was for me to name a close relative and the state in which they live.
I said, “Let me get this straight: You know who my close relatives are and where they live?”
“Oh yes, it’s a public records database.”
“And we’re going through all of this over $20.”
“Well, sir, our system—”
“Never mind, I’ll do what you say.”
*shaking head*
I complied and they turned my stuff back on again and let my $20 contribution to Wikileaks go through. All of this is over 20 effing dollars?!?
When I asked the second person on the phone why this happened, she said that it was probably because I hardly use my credit card. She said something like, “There wasn’t much of a profile to go on with this account.” Ah. The AI was displeased with my lack of consumption, I guess. And when I did use my card, it was to give money to an organization that is despised by most governments and other criminal organizations everywhere.
Irregular activity. Irregular activity. Danger. Enemy Combatant. The Homeland Is Threatened. Danger. Danger. Threat Level Ludicrous. Hope. Change we can believe in.
For f*ck’s sake already.
I explained that I used the card because it’s a simple matter to generate the one time use virtual credit card number online and she was, “Mmm hmmm”ing me, and was there anything else she could help me with today…
* Just hang up the phone, Kevin. Just hang up the phone. Don’t say anything that might cause her to push the panic button and get you added to additional shit lists, etc. *
I hung up the phone.
No Climategate Prosecutions
January 26th, 2010Via: Bishop Hill:
However, when the Climategate emails were released I noticed several email from Mike Hulme predating 2005, which appeared to contradict the earlier assertion that all such emails had been lost. Intrigued, I wrote to the Information Commissioner asking that this be investigated and today I had my response.
First off, I was told that while there appeared to be a problem, I needed to be clear that there would be no prosecutions under the terms of the Freedom of Information Act, regardless of the final outcome of the investigation. Although withholding or destroying information is a criminal offence under the terms of the Act, apparently no prosecutions can be brought for offences committed more than six months prior. As anyone who has made a UK FoI request knows, it can take six months to exhaust the internal review process before the ICO even becomes involved. The ICO can then take another six months before starting his investigation.
The upshot is that the FoI Act’s section allowing criminal prosecutions is to all intents and purposes a dead letter and the ICO officer actually volunteered this conclusion himself – “the Act is flawed” was the way he put it. The ICO is apparently going to take this up with the Ministry of Justice, which is fine but will be of little help for those who are interested in seeing justice done.
It seems quite clear that civil servants are able to withhold and destroy information without any consequences and it’s interesting to ponder how such a dramatic flaw can have found its way into the terms of the Act. Of course we in the UK are used to poorly drafted laws finding their way onto the statute books, but we might also consider the thought that Sir Humphrey might have knowingly inserted this crucial error, in order to ensure that when push came to shove he could keep things quiet without any concerns that he might find himself in hot water.
Conspiracy theory? Perhaps, but you have to admit, it’s a possibility.
Cryptogon Readers Send Contributions
January 26th, 2010HB sent $10 and D sent $25. Thank you.
Nanosecond Trading Strains Infrastructure: Firms Failing to Control Their Algorithms
January 26th, 2010See: Trading Shares in Milliseconds
Via: Financial Times:
An explosion in trading propelled by computers is raising fears that trading platforms could be knocked out by rogue trades triggered by systems running out of control.
trading-thumb.jpgTrading in equities and derivatives is being driven increasingly by mathematical algorithms used in computer programs. They allow trading to take place automatically in response to market data and news, deciding when and how much to trade similar to the autopilot function in aircraft.
Analysts estimate that up to 60 per cent of trading in equity markets is driven in this way.
Concerns have been highlighted by news that NYSE Euronext, the transatlantic exchange operator, has fined Credit Suisse proprietary trading arm for the first time for failing to control its trading algorithms. In the Credit Suisse case, its system bombarded the NYSE’s systems with hundreds of thousands of “erroneous messages” in 2007, slowing down trading in 975 shares.
The case was far from isolated, say traders. CME Group, the Chicago-based futures exchange, is investigating a case this month where a trader in “mini” S&P Index futures contracts “inadvertently traded approximately 200,000 contracts as both buyer and seller”.
Last year, the London Stock Exchange suffered a three-hour outage after its trading system collapsed under the strain of a huge volume of orders. Some traders blamed the spike in volumes from algorithmic trading.
Frederic Ponzo, managing partner at GreySpark Partners, a consultancy, said: “It is absolutely possible to bring an exchange to breaking point by having an ‘algo’ entering into a loop so that by sending them at such a rate the exchange can’t cope.”
December Home Sales Decline Was Largest in More than 40 Years
January 25th, 2010Via: AP:
Sales of previously occupied homes took the largest monthly drop in more than 40 years last month, sinking more dramatically than expected after lawmakers gave buyers additional time to use a tax credit.
The report reflects a sharp drop in demand after buyers stopped scrambling to qualify for a tax credit of up to $8,000 for first-time homeowners. It had been due to expire on Nov. 30. But Congress extended the deadline until April 30 and expanded it with a new $6,500 credit for existing homeowners who move.
“It’s ‘exit stage left’ for first-time homebuyers,” wrote Guy LeBas, an analyst with Janney Montgomery Scott.
December’s sales fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million, from an unchanged pace of 6.54 million in November, the National Association of Realtors said Monday. Sales had been expected to fall by about 10 percent, according to economists surveyed by Thomson Reuters.
The report “places a large question mark over whether the recovery can be sustained when the extended tax credit expires,” wrote Paul Dales, U.S. economist with Capital Economics.
Wife of French Ambassador to Lebanon Was On Downed Plane
January 25th, 2010Via: Reuters:
All 90 people aboard an Ethiopian Airlines plane were feared dead after it plunged into the Mediterranean, minutes after taking off from Beirut in stormy weather on Monday.
Flight ET409, a Boeing 737-800, heading for Addis Ababa, disappeared off the radar some five minutes after taking off at 2:37 a.m. (7:37 p.m. EST on Sunday) during a thunderstorm.
The Lebanese army said the plane had broken up in the air before plummeting into rough seas and hopes of finding any survivors faded 12 hours after the crash. Witnesses described the impact as a “flash that lit up the whole sea” and a “ball of fire.”
Lebanese President Michel Suleiman said he did not think the plane had been brought down deliberately, emphasizing “a sabotage attack is unlikely.”
Ethiopian Airlines CEO Girma Wake said he had spoken with Lebanese authorities who had no word of survivors.
Eighty-three passengers and seven crew were on the flight, Lebanese Transport Minister Ghazi al-Aridi said at the airport.
Twenty-four bodies have so far been recovered, at least six of Ethiopian origin, officials said. Some of the bodies were so unrecognizable from the impact of the crash that DNA testing would be needed to identify them.
The remains of mangled aircraft seats and luggage washed up on the shore south of Beirut where the airport’s main runway is located. Lebanese army patrol boats, helicopters and divers searched an area off Na’ameh, 10 km (six miles) south of the capital.
Fifty-four of those on board were Lebanese, 22 were Ethiopian, two were British and there were also Canadian, Russian, French, Iraqi and Syrian nationals.
Marla Pietton, wife of the French ambassador to Lebanon Denis Pietton, was on the plane, the French embassy said.
Lebanese lawmaker Nawwar el-Saheli had been due to take the flight but canceled at the last minute because of a scheduled parliamentary meeting on Monday.
Hospitals Should “Be Extra Careful with Linear Accelerators”
January 25th, 2010This piece is classic New York Times. There must be an editorial template at that rag. Write about atrocity, smooth it over with experts and a clear, non-sticky Everything Is OK gel.
The article below reads like this:
Behold the marvels of modern medicine. Sure, atrocities happen here and there. Well, maybe more often than that. Well, we don’t know because they’re covered up a lot. But did we mention the marvels of modern medicine? Ok, good.
Via: New York Times:
As Scott Jerome-Parks lay dying, he clung to this wish: that his fatal radiation overdose — which left him deaf, struggling to see, unable to swallow, burned, with his teeth falling out, with ulcers in his mouth and throat, nauseated, in severe pain and finally unable to breathe — be studied and talked about publicly so that others might not have to live his nightmare.
Sensing death was near, Mr. Jerome-Parks summoned his family for a final Christmas. His friends sent two buckets of sand from the beach where they had played as children so he could touch it, feel it and remember better days.
Mr. Jerome-Parks died several weeks later in 2007. He was 43.
A New York City hospital treating him for tongue cancer had failed to detect a computer error that directed a linear accelerator to blast his brain stem and neck with errant beams of radiation. Not once, but on three consecutive days.
Soon after the accident, at St. Vincent’s Hospital in Manhattan, state health officials cautioned hospitals to be extra careful with linear accelerators, machines that generate beams of high-energy radiation.
But on the day of the warning, at the State University of New York Downstate Medical Center in Brooklyn, a 32-year-old breast cancer patient named Alexandra Jn-Charles absorbed the first of 27 days of radiation overdoses, each three times the prescribed amount. A linear accelerator with a missing filter would burn a hole in her chest, leaving a gaping wound so painful that this mother of two young children considered suicide.
…
Regulators and researchers can only guess how often radiotherapy accidents occur. With no single agency overseeing medical radiation, there is no central clearinghouse of cases. Accidents are chronically underreported, records show, and some states do not require that they be reported at all.
In June, The Times reported that a Philadelphia hospital gave the wrong radiation dose to more than 90 patients with prostate cancer — and then kept quiet about it. In 2005, a Florida hospital disclosed that 77 brain cancer patients had received 50 percent more radiation than prescribed because one of the most powerful — and supposedly precise — linear accelerators had been programmed incorrectly for nearly a year.
Dr. John J. Feldmeier, a radiation oncologist at the University of Toledo and a leading authority on the treatment of radiation injuries, estimates that 1 in 20 patients will suffer injuries.
Most are normal complications from radiation, not mistakes, Dr. Feldmeier said. But in some cases the line between the two is uncertain and a source of continuing debate.
“My suspicion is that maybe half of the accidents we don’t know about,” said Dr. Fred A. Mettler Jr., who has investigated radiation accidents around the world and has written books on medical radiation.
Sam’s Club cuts 11,200 jobs, 10 Percent of Workforce
January 25th, 2010Via: Reuters:
Sam’s Club, the warehouse club division of Wal-Mart Stores Inc is cutting roughly 11,200 jobs, or about 10 percent of its workforce, as it outsources in-store product demonstrations and eliminates positions used to recruit new business members.


