Chinese Government Allegedly Doesn’t Chase Gold Rallies

December 3rd, 2009

Via: Telegraph:

News that the rising powers of Asia are shifting a chunk of their fast-growing reserves into gold in a flight from Western paper currencies has emboldened investors to take out large gold bets on the futures markets or through exchange traded funds (EFT), leading to the parabolic rise in price over recent weeks.

However, officials in Beijing are aware that China’s $2.3 trillion reserves are now so enormous that the central bank cannot buy much gold without distorting the price, so they have adopted a de facto policy of buying in a calibrated fashion each time prices fall back to their rising trend line – “buying the dips” in trading parlance. Experts say that China is putting a floor under the gold price but does not chase rallies once they are under way.


Chelsea Clinton Engaged to Goldman Sachs Investment Banker

December 3rd, 2009

Via: CBS News:

Chelsea’s fiancé is an investment banker who works for Goldman Sachs.

The two met in Washington as teenagers and both attended Stanford University. Mezvinsky, Miller said, is no stranger to life in the public eye. Both of his parents served in Congress, and his father, Ed Mezvinsky, served time in federal prison for bank and wire fraud.


European Banks Growing Bigger ‘Sowing the Seeds’ of Next Crisis

December 3rd, 2009

Via: Bloomberg:

European banks are emerging from the credit crisis bigger than before, posing more risk to their national economies.

BNP Paribas SA, Barclays Plc and Banco Santander SA are among at least 353 European lenders that have increased in size since the beginning of 2007, according to data compiled by Bloomberg. Fifteen European banks now have assets larger than their home economies, compared with 10 lenders three years ago.

While the European Union has grabbed headlines for breaking up bailed-out banks, regulators haven’t reined in firms that shunned state aid and are too big to fail. European bank assets have grown 25 percent since the start of 2007, compared with a 20 percent increase at U.S. lenders, Bloomberg data show.

“We are sowing the seeds for the next crisis,” said David Lascelles, senior fellow at the London-based Centre for the Study of Financial Innovation, a research group. “What we have been doing in the last two years is making banks much bigger. It really goes against the currents of the time.”


Vanity Fair on Blackwater’s Erik Prince

December 3rd, 2009

Blackwater is a CIA cutout that got so big that it just happened to become a household name.

—Feds Investigating Blackwater USA for Selling Weapons to Iraqi Insurgency

We get into the Coincidence? category because the article just happens to be written by a “former” CIA attorney.

Via: Vanity Fair:

The truth about Prince may be orders of magnitude stranger than fiction. For the past six years, he appears to have led an astonishing double life. Publicly, he has served as Blackwater’s C.E.O. and chairman. Privately, and secretly, he has been doing the C.I.A.’s bidding, helping to craft, fund, and execute operations ranging from inserting personnel into “denied areas”—places U.S. intelligence has trouble penetrating—to assembling hit teams targeting al-Qaeda members and their allies. Prince, according to sources with knowledge of his activities, has been working as a C.I.A. asset: in a word, as a spy. While his company was busy gleaning more than $1.5 billion in government contracts between 2001 and 2009—by acting, among other things, as an overseas Praetorian guard for C.I.A. and State Department officials—Prince became a Mr. Fix-It in the war on terror. His access to paramilitary forces, weapons, and aircraft, and his indefatigable ambition—the very attributes that have galvanized his critics—also made him extremely valuable, some say, to U.S. intelligence.


Yahoo, Verizon: Our Spy Capabilities Would ‘Shock’, ‘Confuse’ Consumers

December 3rd, 2009

Via: Wired:

Want to know how much phone companies and internet service providers charge to funnel your private communications or records to U.S. law enforcement and spy agencies?

That’s the question muckraker and Indiana University graduate student Christopher Soghoian asked all agencies within the Department of Justice, under a Freedom of Information Act (FOIA) request filed a few months ago. But before the agencies could provide the data, Verizon and Yahoo intervened and filed an objection on grounds that, among other things, they would be ridiculed and publicly shamed were their surveillance price sheets made public.

Yahoo writes in its 12-page objection letter (.pdf), that if its pricing information were disclosed to Soghoian, he would use it “to ’shame’ Yahoo! and other companies — and to ’shock’ their customers.”

“Therefore, release of Yahoo!’s information is reasonably likely to lead to impairment of its reputation for protection of user privacy and security, which is a competitive disadvantage for technology companies,” the company writes.

Verizon took a different stance. It objected to the release (.pdf) of its Law Enforcement Legal Compliance Guide because it might “confuse” customers and lead them to think that records and surveillance capabilities available only to law enforcement would be available to them as well — resulting in a flood of customer calls to the company asking for trap and trace orders.

“Customers may see a listing of records, information or assistance that is available only to law enforcement,” Verizon writes in its letter, “but call in to Verizon and seek those same services. Such calls would stretch limited resources, especially those that are reserved only for law enforcement emergencies.”

Other customers, upon seeing the types of surveillance law enforcement can do, might “become unnecessarily afraid that their lines have been tapped or call Verizon to ask if their lines are tapped (a question we cannot answer).”

Verizon does disclose a little tidbit in its letter, saying that the company receives “tens of thousands” of requests annually for customer records and information from law enforcement agencies.


Warning on U.S. Muni Market Threat

December 2nd, 2009

Via: Financial Times:

States need to consider permanent budgetary changes to close ballooning deficits or risk “significant cracks” in the municipal bond market, the lieutenant governor of New York said on Monday.

Richard Ravitch said New York and other states had historically relied on temporary measures to balance budgets in downturns as a bridge to recovery, a strategy that was unsustainable.

“If nothing changes, you will see significant cracks in the $3,000bn [municipal bond] market,” said Mr Ravitch, a long-time fixture in New York public office who served as an adviser to the governor during New York City’s financial crisis in the 1970s. He is now devising a four-year financial plan for New York state.

The US recession has sapped state tax receipts, with revenue falling for four consecutive quarters, says the Nelson A Rockefeller Institute of Government, a research group. That has left states grappling with budget shortfalls projected to reach $350bn in the fiscal years 2010 and 2011, according to the Center on Budget and Policy Priorities.


Gold, the Comex and Exchange for Physical

December 2nd, 2009

Via: Jesse’s Café Américain:

The conclusion we reach for now is that if one is counting on the ability to receive delivery of physical gold from the Comex for whatever purposes, then don’t. You will wait and fight and stand in queue to obtain the goods from Enron nation.

The theme of the day is ‘appearance versus reality’ in the lair of the vampire squid.

Research Credit: Pookie


Israeli Police Arrest Mossad Spy on “Training Exercise” After He Placed “Fake Bomb” Under Car

December 2nd, 2009

Mmm hmm. Israel better mobilize the brave Ziofascist Twitbook forces to clear this one up.

Via: BBC:

A trainee spy for Israel’s secret service agency Mossad was arrested by Tel Aviv police while taking part in a training operation, media reports say.

The young trainee was spotted by a female passer-by as he planted a fake bomb under a vehicle in the city.

He was only able to persuade police he was a spy after being taken in by an officer for questioning on Monday.

The authorities have refused to comment on the story although Israeli media outlets have expressed their surprise.

‘Just a drill’

Mossad does not tell local uniformed police about its training exercises.

The country’s commercial Channel 10 said it hoped the agency’s operatives were “more effective abroad”, AFP news agency reported.

Niva Ben-Harush, the woman who reported the novice’s suspicious behaviour to police, told Ynet News that 15 minutes after she made the call, Tel Aviv’s port was closed and people evacuated.

She said police initially asked her to come with them and identify the suspect.

“But after a few minutes, they told me it was just a drill,” she said.

Up to three agency employees were believed to have been suspended following the incident, Ynet reported.

It quoted the prime minister’s office as saying it did “not respond to information about such activities undertaken by security agencies or attributed to them”.


North Korea Implements 100 to 1 Reverse Split on Currency

December 2nd, 2009

When a medium of exchange isn’t tied to anything but the whims of psychopaths, this kind of thing is the inevitable result.

Thank you, Dear Leader.

Via: Telegraph:

In an alleged bid to curb inflation and suppress its growing black market, North Korea implemented a currency revaluation on Monday, according to Yonhap, the South Korean news agency.

The exchange rate between old and new currencies is 100 to 1, with the old denomination of 1,000 won notes being replaced by 10 won notes.

Research Credit: Lagavulin


State of Texas Saving Newborn DNA Samples

December 2nd, 2009

Via: KXAN:

When Andrea Beleno was expecting her first child, she never dreamed his blood would become the focus of a federal lawsuit.

Neither did the other families who are suing the State of Texas to protect the medical privacy of their children.

Each year, more than 400,000 babies are born in Texas. State law mandates that before newborns leave the hospital, his or her heel will be pricked and five drops of blood are collected.

Two weeks later, their pediatrician collects another five drops of blood. The blood cards are submitted to the Texas Department of State Health Services as part of the Newborn Screening program. One or two drops are used to screen for a list of serious medical conditions.

The parents are not objecting to the screening. They object to what the state is doing with the leftover blood samples.

Beginning in 2002, the State began saving the leftover specimens, unbeknownst to parents and without their consent.

“It made me really mad that nobody asked me if they could keep my sons DNA,” said Andrea Beleno.

Her son’s DNA was among millions of banked samples stored at Texas A&M Health Science Center School of Rural Public Health.

“It makes me suspicious and I think there’s really no reason for the state to have a database of the blood of and the DNA of every single person who has been born here,” said Beleno. “There’s no legitimate reason for that.”

The state said there is a legitimate reason: Research.

According to court documents, the state admits some of the blood samples collected for the newborn screening program were used for other purposes, but said it was done in accordance with federal and state law.

“The government still has to ask,” said Boleno. “They can’t just take it. And everyone has the right to make that decision for themselves.”

Jim Harrington, an attorney for the Texas Civil Rights Project, who is representing Beleno and the other families in the federal lawsuit, said it violates the Fourth and 14th Amendments of the U. S. Constitution.

”It’s a bad thing,” said Harrington. “You have to consent to give up the right. And in this case it’s your right of privacy and your kid’s right of privacy.”

The lawsuit prompted change in the Texas Legislature. House Bill 1672 allows the State to keep and use the samples for research, but requires parents be informed and given the option of having their children’s leftover blood samples destroyed after screening. The state has 60 days to destroy the blood cards after receiving the official notification form from parents.

The form directs the state to destroy the card containing the dried blood spots, but does not insure any information gathered from the generic material is deleted.

According to the Use and Storage of Newborn Screening Bloodspot Cards information provided to parents, identifying information linking a child to a particular bloodspot is not allowed outside of the Department of State Health Services without advance consent of the child’s parent or guardian unless otherwise provided by law.

Patient privacy expert Dr. Deborah Peel said those words, “unless otherwise provided by law” create a huge loophole.

“It’s not secret, it means they can share it and use it for research for public health,” said Peel. “There are many laws that allows the use of samples, like newborn blood samples for public health uses and screening and so forth. So, no, you are not protected. That allows all kinds of people to see it.”

House Bill 1672 allows the stored samples to be used in research if approved by what is called an Institutional Review Board. IRB’s are supposed to safeguard privacy and protect patients, but are not open to the public.

The IRB board appointed to oversee research on the stored bloodspots consists almost entirely of State employees. Harrington says that makes the process questionable.

“This is not a true independent professional review board,” he said.

Perhaps most concerning, is the confidentiality clauses added to the new law that were designed to protect the identity of the newborns. The law states that reports, records and information obtained or developed by the department are confidential and are exempt from the Texas Public Information Act, and are not subject to subpoena.

In addition, anyone involved in the program, including state employees or employees of a contractor or subcontract can be compelled to testify in any kind of judicial proceeding as to the existence or contents of any records, reports or information.

The law does not allow for public disclosure of information such as who is involved and what kind of research is being conducted using the stored blood samples.

Jim Harrington said that is a problem.

“The reason we brought the suit was because of their secret, surreptitious conduct and then they turn around and are doing the exact same thing again,” said Harrington. “And every time, of course, the government is not open and clear and transparent, it raises flags all over the place about what’s really going on and what are they really up to?”

The issue of retaining newborn screening samples is not unique to Texas. Other states are dealing with the same issues. Balancing privacy issues with what is in the best interest of the public is a fine line. The federal government has invested millions in regional and national newborn screening collaborations.

National DNA Database

In 2006 and 2007, then, Senator Obama, filed legislation that would create a national DNA database. The same bill was filed by Sen. Patrick Kennedy in 2008 . The bills required parental consent, but all three died in the Senate.

Study finds support by some parents

Not everyone is opposed to collecting, storing and using DNA from the newborn screening program for later use. A study by the University of Michigan found that when asked for consent, only 24 percent of parents objected to using their newborns blood samples for research. That number jumped to 72 percent of parents who were somewhat or very unwilling when asked if the samples could be used without permission.

Andrea Beleno said she may have consented, if asked. But after seeing how the State of Texas has handled the issue, her mind is made up.

“For me and my family,” said Beleno, “No, you can’t have our DNA.”

So far, more than 8,200 other families have made that same decision to opt out of allowing the state to use their child’s genetic material.


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