Former Chief Financial Officer of ABN AMRO Found Shot to Death
July 6th, 2009Via: Reuters:
The former chief financial officer of Dutch banking group ABN AMRO was found dead Sunday after being missing for nearly a week, Britain’s Daily Mail newspaper reported, citing unnamed sources.
Huibert Boumeester, a Dutch national, apparently killed himself, the paper said.
Boumeester, who was also the one-time CEO of ABN AMRO Asset Management, went missing on June 22. London’s Metropolitan Police said at the time that two of his guns were missing as well. [ID:nLO557743]
In a statement on Monday, Britain’s Thames Valley Police would say only that the unidentified body of a man was found Sunday morning in Winkfield, about 48 kilometres (30 miles) west of London. He apparently died of gunshot wounds.
An ABN spokeswoman told Reuters the bank had no information on Boumeester’s reported death, but that its thoughts were with his family.
New Zealand Government Orders 300,000 Doses of Untested, Unlicensed Swine Flu Vaccine for Health Workers
July 6th, 2009Via: TVNZ:
The government is spending millions of dollars to import a swine flu vaccination for front line health workers – even though it has not been licensed yet.
It has ordered 300,000 doses of the vaccine but it is unlikely to be available until December.
The targeted campaign aimed at supporting frontline services in health, emergency and other critical services.
Prime Minister John Key says that is enough to give 150,000 people the required two doses.
Key says it is important people at the frontline can feel safe.
He says he wants to be in a position of having the vaccine and not needing it, rather than the other way around.
Global demand for the vaccine is high and Key says it was important to get in quick and get enough for the priority group of New Zealanders.
The news comes as fears over swine flu rise, following news three New Zealanders have died from the illness.
Health Minister Tony Ryall says the vaccine have to be licensed by Medsafe in New Zealand before it’s used.
Ryall says no swine flu vaccination has been licensed anywhere in the world but he expects the doses being bought to get the nod by December.
Iran Clerics Declare Election Invalid and Condemn Crackdown
July 6th, 2009Via: Times Online:
Iran’s biggest group of clerics has declared President Mahmoud Ahmadinejad’s re-election to be illegitimate and condemned the subsequent crackdown.
The statement by the Association of Researchers and Teachers of Qom is an act of defiance against the Supreme Leader, Ayatollah Ali Khamenei, who has made clear he will tolerate no further challenges to Mr Ahmadinejad’s “victory” over Mir Hossein Mousavi.
“It’s a clerical mutiny,” said one Iranian analyst. “This is the first time ever you have all these big clerics openly challenging the leader’s decision.” Another, in Tehran, said: “We are seeing the birth of a new political front.”
Professor Ali Ansari, head of Iranian Studies at St Andrews University, said: “It’s highly significant. It shows this is nowhere near resolved.”
The association’s statement also shows how deeply the political establishment is divided, and the extent to which the Supreme Leader now derives his power from military might, not moral authority. It makes it much harder for the regime to arrest Mr Mousavi and other opposition leaders.
At the weekend a top aide to Mr Khamenei demanded that Mr Mousavi and other opponents be tried for “terrible crimes”, and the elite Revolutionary Guards accused them of “trying to overthrow the Islamic establishment”.
U.S. Special Forces Briefing to Congressman Exposes Involvement in 19 Latin American Countries During 2009 Including Honduras
July 6th, 2009Via: Wikileaks:
This confidential US Special Forces (7th, US Southern Command), briefing dated 17 May 2009 was created for Florida Congressman Miller. Although unclassified, it specifies a For Official Use Only (FOUO) distribution restriction.
On page 7 of the document, it is proudly proclaimed that the 7h Special Forces Group has conducted missions in every Latin American country.
On page 10 a map is given, revealing Special Forces deployments to 19 Latin American countries during 2009 alone, including two bases or missions in Honduras.
The briefing provides a history of the Special Forces such as its genesis as the covert action arm of the OSS (the intelligence arm of which became the CIA). Notable is a graph of Special Forces growth. Its numbers now substantially eclipse its previous 1968 peak during the height of the cold war.
Programmer Steals Software That Runs Goldman Sachs’ Automated Trading Systems
July 6th, 2009Update: Programmer Out on Bail
Via: Reuters:
A former Goldman Sachs Group Inc computer programer accused of stealing secret trading codes from the financial firm has been released from federal custody after posting bail, authorities said on Monday.
Sergey Aleynikov, 39, was arrested by the FBI on Friday and charged with “theft of trade secrets.” He met the terms of his $750,000 bail and was released Monday, said FBI spokesman James Margolin.
Aleynikov is accused of misusing computer codes that belong to his former employer, a New York-based financial institution that authorities did not identify in court papers but sources say is Goldman Sachs.
A transcript of Aleynikov’s appearance before U.S. Magistrate Kevin Nathaniel Fox in Manhattan on Saturday also shows that Aleynikov worked for Goldman.
His lawyer, Sabrina Shroff, said at that proceeding that Aleynikov told authorities after his arrest that he did not intend to sell the information or use it “contrary to my employment agreement with Goldman Sachs.”
Goldman has not seen its business or clients harmed by the purported computer breach, a source familiar with the situation said on Monday. The firm declined to comment.
The case could shed light on the workings of intricate trading systems developed by Goldman. It also raises questions about the security of lucrative Wall Street proprietary trading operations.
However, the New York Stock Exchange said on Monday there was no connection between the alleged security breach and an error that dropped Goldman from a trading report the NYSE issued last week.
Aleynikov, a Russian immigrant living in New Jersey, was arrested on Friday night as he got off a flight at Newark Liberty International Airport, according to an FBI affidavit filed in the case.
Aleynikov had been held at the Metropolitan Detention Center in Brooklyn.
Terms of his bail required a $750,000 personal recognizance bond to be secured by three financially responsible people.
His bail also included $75,000 in cash, and Aleynikov was ordered to surrender his travel documents and not to access the computer data at issue in the case.
A preliminary hearing was scheduled for August 3.
A “For Sale” sign stood on the lawn of Aleynikov’s home on Monday night in Little Falls, New Jersey. The vacated two-story Colonial-style home, whose open mailbox had letters peeking out, was listed as “priced to sell” in an online advertisement by an area real estate agency.
Authorities contend Aleynikov stole codes used for sophisticated automated stock and commodities trading. They say Aleynikov, who earned $400,000 a year at Goldman, improperly copied proprietary computer code and then uploaded it to a computer server in Germany.
After he was arrested, he told authorities he had only intended to collect “open source” files on which he had worked but “later realized that he had obtained more files than he intended,” the FBI agent said in the court papers.
The FBI said Aleynikov worked at the financial institution from May 2007 until June 5, when he left to work for a new company focused on high-volume automated trading.
Aleynikov’s wife, Elina, told Reuters on Sunday that her husband is innocent. She said in a phone interview from the couple’s New Jersey home that her husband worked hard for Goldman and has been a good citizen who has lived in the United States for 19 years.
— End Update —
Don’t miss the following Zero Hedge piece for more: Is A Case Of Quant Trading Sabotage About To Destroy Goldman Sachs?
In the 5 days immediately preceeding his departure from “Financial Institution” (potentially GS), Sergey allegedly downloaded 32 megs of ultra top-secret quant trading proprietary code, that, according to Special Agent McSwain’s affidavit, he then proceeded to encrypt and upload to a website in Germany, with a UK owner. One can only imagine the value of this “code” not only to Goldman but to the highest bidder. After all, from the affidavit: “certain features of the [code], such as speed and efficiency by which it obtains and processes market data, gives the Financial Institution a competitive advantage among other firms that also engage in high-volume automated trading.The Financial Institution further believes that, if competing firms were to obtain the [code] and use its features, the Financial Institution’s ability to profit from the [code]’s speed and efficiency would be significantly diminished.” Needless to say, many others are now also likely hot on the trail of the code.
Via: Reuters:
Did someone try to steal Goldman Sachs’ secret sauce?
While most in the US were celebrating the 4th of July, a Russian immigrant living in New Jersey was being held on federal charges of stealing top-secret computer trading codes from a major New York-based financial institution—that sources say is none other than Goldman Sachs.
The allegations, if true, are big news because the codes the accused man, Sergey Aleynikov, tried to steal is the secret code to unlocking Goldman’s automated stocks and commodities trading businesses. Federal authorities allege the computer codes and related-trading files that Aleynikov uploaded to a German-based website help this major “financial institution” generate millions of dollars in profits each year.
The platform is one of the things that apparently gives Goldman a leg-up over the competition when it comes to rapid-fire trading of stocks and commodities. Federal authorities say the platform quickly processes rapid developments in the markets and uses top secret mathematical formulas to allow the firm to make highly-profitable automated trades.
The criminal case has the potential to shed a light on the inner workings of an important profit center for Goldman and other Wall Street firms. The federal charges also raise serious questions about the safeguards Wall Street firms deploy to protect their proprietary trading systems.
The criminal case began to unfold on the evening of July 3 when Aleynikov was arrested by FBI agents at Newark Liberty Airport, after returning from Chicago. Aleynikov had just started a job with another firm in Chicago, after leaving the big firm in NY in early June. It appears the financial institution allegedly victimized by Aleynikov had alerted federal authorities that its former employee might be up to no good.
On July 4, Aleynikov was processed on a “theft of trade secrets” charge in a criminal complaint that was filed in federal court in Manhattan. As of this afternoon, he was still being held in federal custody pending posting of bail.
A Goldman spokesman declined to comment on the incident. A spokeswoman for the US Attorney in the Southern District of New York didn’t comment. Authorities reportedly took all the computers from Aleynikov’s home in New Jersey.
Sabrina Shroff, Aleynikov’s lawyer, says the facts will bear out that her client is innocent. She’s hoping he will be released from custody soon.
His wife, Elina, says her husband is innocent. Speaking in a phone interview from the couple’s New Jersey home, she says her husband worked hard for Goldman Sachs and has been a good citizen–noting he’s lived in the US for 19 years. She seems mystified that federal authorities would arrest him on the eve of a holiday.
The Federal Bureau of Investigations, in charging Aleynikov, says he began working for the major financial institution in May 2007 as a computer programmer and left in early June. That would appear to match the description of a man named Serge Aleynikov, as it is listed on the social networking website LinkedIn.
The bio information for Aleynikov on LinkedIn says he joined Goldman in May 2007 and was vice president for equity strategy. The bio says he was responsible for “development of a distributed real-time co-located high-frequency trading platform.” In his own words, he goes on to describe the platform as “a very low latency (microseconds) event-driven market data processing, strategy and order submission engine.”
The case against Aleynikov may explain why the New York Stock Exchange moved quickly in the past week to alter its methodology for reporting program stock trading. Goldman often was at the top of the chart–far ahead of its competitors.
On the week ending June 19, Goldman, for instance, was ranked first on the NYSE program trading list. But on the week of June 22, Goldman mysteriously didn’t appear on the list of the top 15 firms at all. It simply vanished without any explanation. Then the NYSE announced it would change some of the data for calculating the trading report. The Zerohedge blog was all over this controversy a week ago.
And now Tyler Durden of ZeroHedge has come in with his own excellent analysis of this strange, strange criminal case. I highly recommend reading it.
It’s possible Goldman asked the NYSE to alter some of its reporting methodology after the firm discovered that someone may have infiltrated the proprietary computer codes it uses.
Here’s the way the criminal complaint describes the Goldman trading platform:
The Financial Institution has devoted substantial resources to developing and maintaining a computer platform that allows the Financial Institution to engage in sophisticated high-speed, and high-volume trades on various stock and commodities markets. Among other things, the platform is capable of quickly obtaining and processing information regarding rapid developments in these markets.
Meanwhile, federal authorities appear to believe Aleynikov, who has lived in the US for more than a dozen years but frequently travels back-and-forth to his native Russia, may have had help. The German website that Aleynikov allegedly uploaded the stolen information to is registered to a person in London. That, of course, gives rise to speculation about this all being a case of international espionage.
This case is quickly unfolding and there’s plenty more information to unearth about Aleynikov. For instance, it appears that he and his wife are competitive ballroom dancers–there are some videos of them on youtube.com. The job he took in Chicago, according to the criminal complaint, paid nearly three times more than his $400,000 salary at Goldman.
Which Chicago firm hired Aleynikov? Inquiring minds want to know. But you can rule out the giant hedge fund conglomerate Citadel. It’s not them.
Also there’s more to learn about anyone who might have been helping him and the fallout this may have for Goldman. When he was arrested, Aleynikov told the FBI he “only intended to collect ‘open source’ files on which he had worked, but later realized that he had obtained more files than he intended.” But authorities say after he uploaded the files he encrypted them and “erased” the program he used to encrypt them.
It’s not clear why the authorities and apparently Goldman waited so long to move on Aleynikov, even though they knew he had uploaded the information weeks ago.
One question investors need to ask is whether this incident will have any impact on Goldman’s second-quarter earnings. The alleged wrongoing by Aleynikov took place at the beginning of the month–although it’s not clear if it had any material impact on automated trading.
Update: The NYSE has not stopped reported program trading results. Instead, it’s altered the method it uses for putting together that report.
More: Goldman: Pwned?
Research Credit: Treason Holdings, dilinger
Afghan Drug Trade: “Most of the government officials are involved.”
July 5th, 2009Via: McClatchy:
When it’s harvest time in the poppy fields of Kandahar, dust-covered Taliban fighters pull up on their motorbikes to collect a 10 percent tax on the crop. Afghan police arrive in Ford Ranger pickups — bought with U.S. aid money — and demand their cut of the cash in exchange for promises to skip the farms during annual eradication.
Then, usually late one afternoon, a drug trafficker will roll up in his Toyota Land Cruiser with black-tinted windows and send a footman to pay the farmers in cash. The farmers never see the boss, but they suspect that he’s a local powerbroker who has ties to the U.S.-backed Afghan government.
Everyone wants a piece of the action, said farmer Abdul Satar, a thin man with rough hands who tends about half an acre of poppy just south of Kandahar. “There is no one to complain to,” he said, sitting in the shade of an orange tree. “Most of the government officials are involved.”
Afghanistan produces more than 90 percent of the world’s opium, which was worth some $3.4 billion to Afghan exporters last year. For a cut of that, Afghan officials open their highways to opium and heroin trafficking, allow public land to be used for growing opium poppies and protect drug dealers.
The drug trade funnels hundreds of millions of dollars each year to drug barons and the resurgent Taliban, the militant Islamist group that’s killed an estimated 450 American troops in Afghanistan since 2001 and seeks to overthrow the fledgling democracy here.
What’s more, Afghan officials’ involvement in the drug trade suggests that American tax dollars are supporting the corrupt officials who protect the Taliban’s efforts to raise money from the drug trade, money the militants use to buy weapons that kill U.S. soldiers.
…
The narcotics trade in Afghanistan would be impossible without government officials and the Taliban on the payroll, said the man in the brown turban. “The link between them is a natural one.”
The man should know. He’s a drug dealer in Kandahar who provides money to purchase opium culled from poppy on local farms and arranges for it to be shipped to markets near the city.
The owner of several shoe and electronics shops in Kandahar, he sat in a plastic chair in a small office tucked away on the second floor of a bare concrete building. As he described the inner workings of the opium trade, he spat tobacco from under the fold of his cheek into a silken floral print handkerchief.
“The drug smuggler tells a police commander to transport a certain amount of drugs, for example, from the city to Maiwand District” — on the northwest edge of Kandahar province — “and pays him 100,000 Pakistani rupees,” about $1,200, said the dealer, who asked that his name not be used for fear of running afoul of local warlords or officials. “And then from Maiwand, he pays the Taliban another 100,000 rupees to take it farther,” to heroin labs in the southern province of Helmand and on to Pakistan or Iran.
The dealer offered introductions to the Taliban or to the provincial governor, but there was one man he didn’t wish to discuss: Ahmed Wali Karzai.
According to several Afghan former officials in the region, however, the major drug traffickers in southern Afghanistan don’t worry much about getting caught because they’re working under the protection of Karzai and other powerful government officials.
For example, a former top Afghan intelligence official recounted an incident from about five years ago, when, he said, his men arrested a Taliban commander who was involved with drugs at a key narcotics-trafficking point between Helmand and the Pakistani border.
Late on the evening of the arrest, a local prosecutor dropped by and said that Ahmed Wali Karzai wanted the militant released, according to Dad Mohammed Khan, who was the national intelligence directorate chief of Helmand province for about three years before he became a member of the national parliament.
Khan said he released the Taliban commander, a man known as Haji Abdul Rahim, because he didn’t want to tangle with the president’s brother.
A week after his conversation with McClatchy, Khan — a large man with a bushy black beard who had a reputation for dealing with enemies ruthlessly — was killed by a roadside bomb that most attribute to the Taliban.
Khan, however, isn’t the only one to accuse Ahmed Wali Karzai of ties to drug trafficking.
In 2004, an Afghan Defense Ministry brigade reportedly had a similar run-in with Karzai. The brigade pulled over a truck in Kandahar and found heroin hidden under sacks of concrete, according to the corps commander who oversaw the unit, Brig. Gen. Khan Mohammed.
Shortly afterward, the brigade leader, a man named Habibullah Jan, got a phone call from Ahmed Wali Karzai demanding that he release the truck, Mohammed said. That call was followed by one from a member of President Karzai’s staff, Mohammed said.
Jan later became a parliament member and publicly accused Ahmed Wali Karzai of being a criminal. Jan was killed last year in a sophisticated ambush in Kandahar under circumstances that remain unclear. The Taliban haven’t taken responsibility for the attack.
“Ahmed Wali Karzai has very close links with the drug smugglers,” said Mohammed, who was sipping tea as he sat on a cushion at his home in Kabul. “The house that he’s living in in Kandahar right now is owned by a very big drug smuggler.”
Flood of Afghan Heroin Fuels Drug Plague in Russia
July 5th, 2009Via: McClatchy:
The drugs usually reach Russia from Tajikistan and Kazakhstan in trucks or, in smaller amounts, tucked away in train compartments or nervous travelers’ stomachs.
The trade is nothing new in Russia, but after the U.S.-led invasion of Afghanistan in 2001, it exploded. Afghan opium production climbed from 3,400 metric tons in 2002 to a record 8,200 metric tons in 2007, partly because U.S. and NATO-led troops put a low priority on curbing it. Heroin flooded into Central Asia, and on to Russia.
“When I heard the Americans were going to enter Afghanistan I thought they were going to solve the problem, to stop the drugs,” said Yevgeny Roizman, who had connections with Russian organized crime before he became a member of parliament. He now runs an anti-drug organization in the city of Yekaterinburg, another big heroin-distribution hub north of Chelyabinsk.
“But in the period after they came, there was a big increase in the region . . . ,” Roizman added. “It makes me think the Americans have done nothing to stop the drug trafficking.”
Although it’s an unintended consequence of the U.S. action in Afghanistan, some Russian officials trace the growing problem to an American plot.
Viktor Ivanov, the head of Russia’s Federal Drug Control Service, the national drug enforcement agency, told parliament in May that it was reasonable to “call the flow of Afghan opiates the second edition of opium wars.” He was referring to the 19th-century war between Britain and China sparked by exports of opium from British India to China.
Ivanov isn’t alone.
“I can name you a lot of politicians in Russia who said that the Americans specially arranged the situation in Afghanistan so that we would receive a lot of drugs, and this is the real aim of their occupation,” said Andrei Klimov, the deputy head of the foreign affairs committee in Russia’s lower house of parliament. “I’m not sure this is true, but who knows.”
The U.S. government takes no direct responsibility for fueling Russia’s drug problem.
“I would say the entire international community is responsible. The U.N. Security Council looked favorably on the U.S. and NATO doing what they’re doing in Afghanistan,” a State Department official said, referring to the U.N. mandate backing the foreign presence in the country. “So when critics like Russia say the U.S. and NATO aren’t doing enough, well, it’s really the entire international community that needs to take action on this.”
A second State Department official pointed to the lack of Russian effort to provide assistance in Afghanistan.
“The Russians have had opportunities to come to the table on this and to provide alternative options,” the official said. “If this really was a priority for them, we could work something out.”
Both officials were authorized to speak to a reporter only if they weren’t identified.
In Russia, it’s much easier to blame a U.S. conspiracy than to bring up the subject of corrupt officials, the Russian mafia and their involvement in the drug trade.
Russia’s Federal Drug Control Service wouldn’t respond to McClatchy’s questions over the course of a month, nor would the Interior Ministry or the national intelligence service. The Russian government routinely suppresses basic information about drug-related trials, even the names of defendants.
Igor Khokhlov, a senior researcher at the Academy of Sciences, a government-funded research institute, has researched the drug trade and concluded that high-level authorities aren’t involved.
“They have safer and better ways to benefit from their high offices,” he said in an e-mail interview.
However, it’s almost impossible to do business in Russia, legal and otherwise, without a “krysha” — a Russian word that means “roof” — a patron to protect a businessman from corrupt government officials, criminals and other realities of modern Russia. It seems unlikely that kryshas could operate in Russia’s estimated annual $15 billion drug-trafficking industry without high-level government contacts.
A 2008 U.N. report concluded that Russian organized-crime groups “provide protection to drug trafficking networks in exchange for a share of the proceeds.”
U.S.-Built Bridge is Windfall for Illegal Afghan Drug Trade
July 5th, 2009Via: McClatchy:
In August 2007, the presidents of Afghanistan and Tajikistan walked side by side with the U.S. commerce secretary across a new $37 million concrete bridge that the Army Corps of Engineers designed to link two of Central Asia’s poorest countries.
Dressed in a gray suit with an American flag pin in his lapel, then-Commerce Secretary Carlos Gutierrez said the modest two-lane span that U.S. taxpayers paid for would be “a critical transit route for trade and commerce” between Afghanistan and Tajikistan.
Today, the bridge across the muddy waters of the Panj River is carrying much more than vegetables and timber: It’s paved the way for drug traffickers to transport larger loads of Afghan heroin and opium to Central Asia and beyond to Russia and Western Europe.
Standing near his truck in a dusty patch on the Afghan side of the river, Yar Mohammed said it was easy to drive drugs past the Afghan and Tajik border guards.
“It’s an issue of money,” Mohammed said, to the nods and grins of the small group of truckers gathered around him near the bridge at Nizhny Panj. “If you give them money, you can do whatever you want.”
The roots of the global drug trade are often a murky tangle of poverty, addiction, violence and corruption. However, it’s clear why the dirt-poor former Soviet Central Asian republic of Tajikistan is on the verge of becoming a narco-state.
After the U.S.-led invasion of Afghanistan in 2001, the United States and other Western powers looked the other way as opium and heroin production surged to record levels, making Afghanistan by far the world’s biggest producer.
Much of the ballooning supply of drugs shipped across Afghanistan’s northern border, up to one-fifth of the country’s output, has traveled to and through Tajikistan. The opium and heroin funded rampant corruption in Tajikistan and turned the country, still hobbled by five years of civil war in the 1990s, into what at times seems like one big drug-trafficking organization.
Every day last year — extrapolating from United Nations estimates — an average of more than 4 metric tons of opium, which can be made into some 1,320 pounds of heroin, moved on the northern route. Put another way, the equivalent of nearly 6 million doses of pure heroin — at 100 milligrams each — is carried across the northern Afghan border each day.
After it’s cut with other substances and sold on the street corners and in the apartment stairwells of Russia and Western Europe, the main retail markets for Central Asian heroin, that could produce at least 12 million doses.
Nevertheless, it’s clear even to a casual visitor at the bridge that neither the Afghan or the Tajik border guards have much interest in curbing, or even inspecting, the exports that pass in front of them.
In fact, as the Afghan drug supply has grown, Tajik seizures have fallen. In 2004, Afghanistan produced 4,200 metric tons of opium, and some 5 metric tons of heroin or its equivalent in opium were seized in Tajikistan, according to U.N. figures. Last year, with Afghan cultivation rising to 7,700 metric tons of opium, Tajik authorities seized less than 2 metric tons of heroin.
Although the United States wields enormous influence in both countries, their drug problems have taken a back seat to the war against the Taliban. Until the past year, Afghanistan’s growing drug production was at best a midlevel priority for Washington, and the U.S. hasn’t pressed Tajik President Emomali Rahmon to rein in his country’s drug trafficking, Western officials said. Nor, they said, has any other Western government with troops in Afghanistan.
All along the Afghan-Tajik border, smugglers for years have thrown sacks of heroin over the Panj River, waded across when the water is low, set up flotillas of car tires and used small ferries or footbridges.
The U.S.-financed bridge has made drug trafficking even easier, truck driver Mohammed said with a toothy smile: “You load the truck with drugs.”
The ferry that used to operate at Nizhny Panj carried about 40 trucks a day. The bridge can carry 1,000 vehicles daily.
Research Credit: Ebbing
Virologist to Make His Case for Lab Origin of Swine Flu
July 5th, 2009Via: Peter’s New York:
Back in April, when the first cases of swine flu were diagnosed in Mexico, Gibbs examined the genetic structure of the virus that had been posted on a public database. His analysis led him to speculate that the virus may have been the result of a laboratory error. He contacted the Geneva, Switzerland-based World Health Organization with his conjecture, and scientists there scrutinized his findings, concluding, however, that the virus was most likely a product of nature.
In a series of email exchanges with Peter’s New York, Gibbs said he was not satisfied with the WHO’s critique, indicating that the basis for it was ambiguous.
“The WHO stated that they had no evidence to support my suggestion,” Gibbs said. “They made a very fair statement. However the principle reason for my conclusion remains—that none of the genes of the new virus had been sampled/found/caused epidemics since at least 2000, despite probably coming from at least two different parents on two continents, where other strains had been sampled.”
Gibbs said that might have been a coincidence, but the unusual placement of the virus on what what virologists call phylogenetic trees—a sort of schematic family history of the virus–also peeked his interest. On top of that, Gibbs observed that there was a lack of evidence that pig populations in North America, from which the virus is believed to have emerged, had been infected. Only the pigs on one farm in Canada have as yet been shown to have contracted the virus.
It has been established, said Gibbs, that swine easily contract the new flu from humans, and spread it among themselves. The absence of infection in the North American swine, Gibbs noted, may be evidence that the swine had already contracted the disease and built up immunity, or that they were vaccinated against viruses that resembled the novel swine flu closely enough for them to have been protected against it. Gibbs said the one Canadian herd that came down with the novel swine flu had not been inoculated, and that the evidence therefore leans toward inoculation as the reason North American pigs are disease free. That, in turn, would support a theory, according to Gibbs, that “the virus in the vaccine may be the immediate progenitor of the new human virus. ”
Gibbs said he would have been more satisfied if scientists at the WHO had examined the lists of all the vaccines licensed for production in the United States and Mexico and determined that none of them harbored strains from which the swine flu could have descended. He said he had been unable to locate such lists to make the determination himself.
Gibbs spells out fairly clearly how he thinks the new virus might have emerged due to a laboratory error. In manufacturing a vaccine, each of the viruses to be protected against must first be bred and then sterilized to prevent their further multiplication. When a subject is inoculated, the body reacts to the “killed” viral fragments and produces antibodies that provide protection against the live virus. Gibbs said that if the sterilization process was not carried out properly, pigs could end up being given live viruses, and instead of being protected, would contract the disease. The live viruses would then have a chance to multiply and exchange genetic material within the infected pig in a process known as reassortment, and a new virus could emerge and spread to humans as a “swine flu.”
The study of viruses is overlaid with a complex nomenclature and labyrinthine concepts and arguments in the field of genetics that are unfamiliar to the average layman. But the implications are far reaching, a fact not lost on the general public or on Gibbs.
Early this year, the Deerfield, Ill. based drug firm Baxter International Inc. shipped experimental vaccines for human flu that were contaminated with the bird flu. The cocktail of influenzas, if it had not been discovered by alert laboratory specialists in the Czech Republic in February, could have been administered to subjects, after which, some experts feared, the two viruses could have undergone reassortment, producing a new virus that possessed the lethality of bird flu and the communicability of human flu. Bird flu is a deadly disease that kills close to half its victims, but resists spread from human to human. Human flu, on the other hand, is far more benign, but is easily spread through human contact. A recombined virus with the characteristics of each of the two could conceivably wipe out almost half the world’s population.
Gibbs steers clear of elaborate intrigues that some believe are behind the new flu’s emergence. “Whenever I’ve thought something has resulted from a conspiracy, it usually turns out to be from a ‘cock-up,’” he said. The importance of establishing whether or not the flu emerged from a laboratory, he emphasized, is “to try to avoid a recurrence.”
He did admit, however, that there was a definite risk to the public of escaping pathogens held in government and private facilities.
“There are many historical precedents that are conveniently forgotten,” said Gibbs. “The recent Baxter incident seems to have been one.”
“The reappearance in 1977 of the H1N1 (virus) last seen in 1950 after a period of non-evolution,” which he speculated could represent “suspended animation in a freezer,” was another instance in which pathogens might have escaped from a laboratory. Gibbs also cited the escape of foot-and-mouth disease from a British government laboratory facility in 2007.
Asked if the resurrection of the viral agent for the deadly 1918 “Spanish” flu, which was reconstituted in 2005 by scientists at the Centers for Disease Control and Prevention for research purposes, was a safe proposition, he answered, “No, definitely not.”
“It’s exactly the same principle as should apply to all high security labs,” said Gibbs. “If it ain’t ‘there’ it can’t get out, whereas if it is, then there is always the possibility, however remote, that it might get out.”
Fears for the World’s Poor Countries as the Rich Grab Land to Grow Food
July 5th, 2009A pants shitting, must read.
Via: Guardian:
The acquisition of farmland from the world’s poor by rich countries and international corporations is accelerating at an alarming rate, with an area half the size of Europe’s farmland targeted in the last six months, reports from UN officials and agriculture experts say.
New reports from the UN and analysts in India, Washington and London estimate that at least 30m hectares is being acquired to grow food for countries such as China and the Gulf states who cannot produce enough for their populations. According to the UN, the trend is accelerating and could severely impair the ability of poor countries to feed themselves.
Today it emerged that world leaders are to discuss what is being described as “land grabbing” or “neo-colonialism” at the G8 meeting next week. A spokesman for Japan’s ministry of foreign affairs confirmed that it would raise the issue: “We feel there should be a code of conduct for investment in farmland that will be a win-win situation for both producing and consuming countries,” he said.
Olivier De Schutter, special envoy for food at the UN Office of the High Commissioner for Human Rights, said: “[The trend] is accelerating quickly. All countries observe each other and when one sees others buying land it does the same.”
The UN’s food and agricultural organisation and other analysts estimate that nearly 20m hectares (50m acres) of farmland – an area roughly half the size of all arable land in Europe – has been sold or has been negotiated for sale or lease in the last six months. Around 10m hectares was bought last year. The land grab is being blamed on wealthy countries with concerns about food security.
Some of the largest deals include South Korea’s acquisition of 700,000ha in Sudan, and Saudi Arabia’s purchase of 500,000ha in Tanzania. The Democratic Republic of the Congo expects to shortly conclude an 8m-hectare deal with a group of South African businesses to grow maize and soya beans as well as poultry and dairy farming.
India has lent money to 80 companies to buy 350,000ha in Africa. At least six countries are known to have bought large landholdings in Sudan, one of the least food-secure countries in the world.
Other countries that have acquired land in the last year include the Gulf states, Sweden, China and Libya. Those targeted include not only fertile countries such as Brazil, Russia and Ukraine, but also poor countries like Cameroon, Ethiopia, Madagascar, and Zambia.
De Schutter said that after the food crisis of 2008, many countries found food imports hit their balance of payments, “so now they want to insure themselves”.
“This is speculation, betting on future prices. What we see now is that countries have lost trust in the international market. We know volatility will increase in the next few years. Land prices will continue to rise. Many deals are even now being negotiated. Not all are complete yet.”
He said that about one-fifth of the land deals were expected to grow biofuel crops. “But it is impossible to know with certainty because declarations are not made as to what crops will be grown,” he said.
Some of the world’s largest food, financial and car companies have invested in land.
Alpcot Agro of Sweden bought 120,000ha in Russia, South Korea’s Hyundai has paid $6.5m (£4m) for a majority stake in Khorol Zerno, which owns 10,000ha in Eastern Siberia, while Morgan Stanley has bought 40,000ha in Ukraine. Last year South Korea’s Daewoo signed a 99-year lease for 1.3m hectares of agricultural land in Madagascar.
Devinder Sharma, analyst with the Forum for Biotechnology and Food Security in India, predicted civil unrest.
“Outsourcing food production will ensure food security for investing countries but would leave behind a trail of hunger, starvation and food scarcities for local populations,” he said. “The environmental tab of highly intensive farming – devastated soils, dry aquifer, and ruined ecology from chemical infestation – will be left for the host country to pick up.”
In Madagascar, the Daewoo agreement was seen as a factor in the subsequent uprising that led to the ousting of the president, Marc Ravalomanana. His replacement, Andry Rajoelina, immediately moved to repeal the deal.
Concern is mounting because much of the land has been targeted for its good water supplies and proximity to ports. According to a report last month by the London-based International Institute for Environment and Development, the land deals “create risks and opportunities”.
“Increased investment may bring benefits such as GDP growth and improved government revenues, and may create opportunities for economic development and livelihood improvement. But they may result in local people losing access to the resources on which they depend for their food security – particularly as some key recipient countries are themselves faced with food security challenges”, said the authors.
According to a US-based thinktank, the International Food Policy Research Institute, nearly $20bn to $30bn a year is being spent by rich countries on land in developing countries.
Research Credit: ltcolonelnemo


