cryptogon.com

The new forays into Georgia — even as Georgian President Mikhail Saakashvili on signed a cease-fire pledge — appeared to show Russian determination to subdue the small, U.S.-backed country, which has been pressing for NATO membership.

The latest developments indicate that Russian troops have invaded Georgia proper from the separatist province of Abkhazia while most Georgian forces are locked up in fighting around another breakaway region of South Ossetia.

The West has sharply criticized Russia’s military response to Georgia’s attack on South Ossetia as disproportionate, and the world’s seven largest economic powers urged Russia on Monday to accept an immediate cease-fire and agree to international mediation.

U.S. Secretary of State Condoleezza Rice and her colleagues from the Group of Seven leading industrialized nations spoke by telephone and pledged their support for a negotiated solution to the conflict that has been raging since Friday between the former Soviet state and Russia, a State Department official said, speaking on condition of anonymity because the call had not yet been formally announced.

Nana Intskerveli, the Georgian Defense Ministry’s spokeswoman, said Russian armored personnel carriers rolled into the base in Senaki, about 20 miles inland from the Black Sea port of Poti.

Georgian Interior Ministry spokesman Shota Utiashvili said Russian forces also took over police stations in the town of Zugdidi — about 20 miles from the base and also outside Abkhazia.

In Moscow, a government official who spoke on condition of anonymity because he was not authorized to give his name, confirmed the move into Senaki and said it was intended to prevent Georgian troops from concentrating.

Local police found 53 firearms, including large-caliber guns, grenade launchers, machineguns, pistols, sniper’s rifles and more than 15,000 rounds of ammunition of various sizes. According to Kyrgyz Deputy Minister of the Interior Temirkan Subanov, there were two employees of the U.S. embassy with diplomatic immunity and ten members of the American military, allegedly in the country to train Kyrgyz special forces. “Interior Ministry staff questioned them about the weapons and ammunition to determine their purpose. We received information from residents of a new house that they were constantly moving things into and out of that house. None of the U.S. citizens were detained or arrested. All of them were simply questioned,” Subanov said.

When central banks intervene in the currency markets, they exchange their currency for dollars. Central banks then use the dollars they acquire to buy US government debt instruments so that they can earn interest on their money. The debt instruments central banks acquire are held in custody for them at the Federal Reserve, which reports this amount weekly.

On July 16, 2008 (the closest date of the weekly reports to the July 15th low in the Dollar Index), the Federal Reserve reported holding $2,349 billion of US government paper in custody for central banks. In its report released today, this amount had grown over the past three weeks to $2,401 billion, a 38.4% annual rate of growth. To put this phenomenally high growth rate into perspective, for the twelve months ending this past July 16th, assets in the Federal Reserve’s custody account grew by 17.3%, which is less than one-half the growth rate experienced over the past three weeks.

What they did not realise was that what they were watching was in fact computer graphics, meticulously created over a period of months and inserted into the coverage electronically at exactly the right moment.

The fireworks were there for real, outside the stadium. But those responsible for filming the extravaganza decided in advance it would be impossible to capture all 29 footprints from the air.

As a result, only the last, visible from the camera stands inside the Bird’s Nest was captured on film.

The trick was revealed in a local Chinese newspaper, the Beijing Times, at the weekend.

Gao Xiaolong, head of the visual effects team for the ceremony, said it had taken almost a year to create the 55-second sequence. Meticulous efforts were made to ensure the sequence was as unnoticeable as possible: they sought advice from the Beijing meteorological office as to how to recreate the hazy effects of Beijing’s smog at night, and inserted a slight camera shake effect to simulate the idea that it was filmed from a helicopter.

Foreign money, which up to now has focused its attention on investing in iconic commercial real estate – like Barneys New York and the Chrysler Building – is now moving to scoop up tens of thousands of discounted foreclosed homes across the country.

One sovereign fund, said to have earmarked $29 billion to purchase foreclosed residential real estate, recently hired a West Coast mortgage broker and is starting to search for bargains, The Post has learned.

The search, which is being carried out, in part, by Field Check Group mortgage consultant Mark Hanson, who was retained by the broker, Steve Iversen, is concentrating on single- and multi-family REO (real estate owned) homes, or homes that have already been taken over by the mortgagee.

Neither Iversen nor Hanson would disclose the name of the client, but sources told The Post it’s a sovereign fund.

The unidentified fund joins individual US investors, hedge funds and Wall Street banks in kicking the tires of REO homes, which have fallen in value so much that they are now tempting investments.

A sovereign fund would have two distinct advantages over other investors – the depressed value of the US dollar makes the homes a bargain, and sovereign funds have deeper pockets.

The sovereign fund of Abu Dhabi, for example, has a reported $875 billion in assets, while Norway has $391 billion, Singapore has $303 billion and Kuwait has $264 billion in their sovereign funds, which are funded by proceeds from oil sales.

The Abu Dhabi Investment Authority is expected to announce next month what type of US distressed assets they will be investing in and real estate is at the top of the list, according to a report in Financial Times last week.

ADIA did not respond to an e-mail question about REO investments.

So far, prices on bulk sales of REO properties vary based on location and are selling from 60 cents to 80 cents on the dollar. Hanson started out offering 40 cents on the dollar for about $2.5 billion worth of California properties owned by IndyMac and Washington Mutual but was turned down. The banks refused to comment.

Hanson is now willing to pay 50 cents to 60 cents on the dollar for a collection of California REOs worth at least $500 million.

Let’s not have a collective heart attack, at least not yet. The people on the right side of the security fence are the ones who have figured this out so far. But this has very serious implications for the 2.6 million people who had pacemakers installed from 1990 to 2002 (the stats available from the researchers). It also presents product liability problems for the five companies that make pace makers.

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Fu and Halperin said they used a cheap $1,000 system to mimic the control mechanism. It included a software radio, GNU radio software, and other electronics. They could use that to eavesdrop on private data such as the identity of the patient, the doctor, the diagnosis, and the pacemaker instructions. They figured out how to control the pacemaker with their device.

“You can induce the test mode, drain the device battery, and turn off therapies,” Halperin said.

The 1,774-kilometre (1,109-mile) Baku-Tbilisi-Ceyhan (BTC) oil pipeline is the world’s second longest and takes oil from Azerbaijan to Western markets.

Prime Minister Lado Gurgenidze told Georgian television: “The area of the Baku-Ceyhan pipeline was bombed by Russian planes. Miraculously, the pipeline was not damaged.”

“We call on Russia to cease attacks on Georgia by aircraft and missiles, respect Georgia’s territorial integrity, and withdraw its ground combat forces from Georgian soil,” U.S. Secretary of State Condoleezza Rice said in a statement.

Rice issued her statement as Georgia, a former Soviet state that now wants to join NATO, said it would declare martial law and battled to get control of the rebel enclave, which was fortified by Russian forces.

Georgia said Russian fighter jets bombed container tankers and a shipbuilding plant in the port of Poti, prompting Washington’s sharpest rebuke of Russia since the crisis began.

“We deplore the Russian military action in Georgia, which is a violation of Georgian sovereignty and territorial integrity,” U.S. Ambassador Zalmay Khalilzad told reporters at a U.N. Security Council meeting in New York.

The State Department summoned the Charge d’Affaires at Russia’s Embassy in Washington, Aleksander Darchiyev, to see Rice’s deputy John Negroponte, who pressed Moscow to stop its military activities in Georgia.

“The deputy secretary said that we deplore today’s Russian attacks by strategic bombers and missiles, which are threatening civilian lives,” said State Department spokesman Robert Wood of Negroponte’s meeting with the Russian diplomat.

“These attacks mark a dangerous and disproportionate escalation of tension,” he added.

Both Rice and the White House urged an immediate cease-fire in South Ossetia, and U.S. officials said they would send an envoy to the region to help mediate.

As fighting raged in and around the South Ossetian capital of Tskhinvali, Georgian President Mikheil Saakashvili said Russia and Georgia were at war.

It might seem that you were paying the same amount — about $4 a gallon — but you wouldn’t be. You would be getting, say, a mere 120 ounces instead of 128, and you would be paying more for gas.

If gas stations labeled the change clearly, would there be riots in the street? Would weary consumers simply shrug and pay the same for less at the pump?

We don’t really know how people would react. But something very much like this is already occurring at the supermarket, what Tod Marks, a senior editor at Consumer Reports, calls “the incredibly shrinking package” strategy.

The repackaging trick isn’t new. Who hasn’t opened a box of cereal or a bag of chips and marveled at the abundance of air with the food? But Mr. Marks, who tracks the grocery industry, said, “It’s definitely happening a lot more than it used to.”