Software for Pentagon Costs Americans Tens of Billions of Dollars Per Year, Winds Up Being Owned by Corporations

August 4th, 2010

Would you like some air conditioned tents to go with that?

Via: Defense News:

The Department of Defense spends tens of billions of dollars annually creating software that is rarely reused and difficult to adapt to new threats. Instead, much of this software is allowed to become the property of defense companies, resulting in DoD repeatedly funding the same solutions or, worse, repaying to use previously created software.

The lack of a coherent set of policies and regulations for the DoD’s intellectual property has eroded the U.S. military competitive advantage, leading to compromised missions and lost lives. Improvised explosive device countermeasure systems can’t be upgraded rapidly without replacing entire systems; personnel position systems can’t update in real time; billions are wasted on software radios that don’t interoperate.

The byzantine rules governing the military’s intellectual property portfolio use an antiquated rights structure where the contractor always retains copyright, and therefore effective monopoly, control over taxpayer-funded software ideas. By contrast, commercial industry ruthlessly exercises control over its own software ideas.


American Owner of DC9 Carrying 5.5 Tons of Cocaine Had Been Investigated for Drug Trafficking a Decade Ago

August 4th, 2010

Via: Mad Cow Productions:

The American owner of record of the DC9 airliner which took off from St Petersburg in April of 2006 and was busted in Mexico carrying an astonishing 5.5 tons of cocaine Mexico had been the subject of a drug trafficking investigation ten years earlier.

According to a DEA report on the DC9 sent to Luis Correa, the Director of Venezuela’s National Anti-Drug Office, Frederic Geffon was investigated by US Customs in Tampa, Florida in 1995, after being identified as an aircraft-broker-dealer working with drug traffickers.

“Frederic J. GEFFON DOB: 08.02.1948, home address 10316 Paradise Blvd, Treasure Island, Florida, was the subject of an investigation by US Customs in Tampa, Florida in 1995,” stated a DEA report on the highly-publicized DC9 incident in the Yucatan to Luis Correa, the Director of Venezuela’s National Anti-Drug Office. “GEFFON was identified in 1995 as an aircraft-broker-dealer working with drug traffickers.”

Yet despite being no stranger to Federal law enforcement officials, Frederic Geffon, the owner of record of the DC9, was never charged with any crime.

Similar government action—or inaction—was occuring in Mexico with respect to a second figure in the ill-fated DC9 drug move.

The pilot of the DC9, Carmelo Vasquez Guerra, was—inexplicably and with no explanation—released by Mexican authorities sometime after being taken into custody.

The two nation’s drug policy, when it comes to this particular drug trafficking organization, is apparently “Catch and Release.”


Criminal Demand For High Denomination Euro Banknotes Saving Eurozone

August 4th, 2010

To make their criminal enterprises work, the drug cartels of Mexico need to move billions of dollars across borders. That’s how they finance the purchase of drugs, planes, weapons and safe houses, Senator Gonzalez says.

“They are multinational businesses, after all,” says Gonzalez, as he slowly loads his revolver at his desk in his Mexico City office. “And they cannot work without a bank.”

—Banks Financing Mexico Gangs Admitted in Wells Fargo Deal

Via: Wall Street Journal:

Gangsters, drug dealers and money launderers appear to be playing their part in helping shore up the financial stability of the euro zone.

That’s thanks to their demand, according to European authorities, for high-denomination euro bank notes, in particular the €200 and €500 bills. The European Central Bank issues these notes for a hefty profit that is welcome at a time when its response to the financial crisis has called its financial strength into question.

The high-value bills are increasingly “making the euro the currency of choice for underground and black economies, and for all those who value anonymity in their financial transactions and investments,” wrote Willem Buiter, chief economist at Citigroup, in a recent research report. The business of issuing euro notes, produced at almost zero cost, is “wildly profitable” for the ECB, Mr. Buiter wrote.

…

The ECB and its member governments are beneficiaries of the demand.

The profit a central bank gains from issuing currency—as well as from other privileges of a central bank, such as being able to demand no-cost or low-cost deposits from banks—is known as seigniorage. It normally accrues to national treasuries once the central banks account for their own costs.

The ECB’s gains from seigniorage are becoming increasingly important this year.

The ECB has taken hundreds of billions of euros of assets of unknown quality on to its balance sheet as it has reacted to the global financial crisis.

It holds more than €600 billion in collateral from banks to which it has made loans, and more than €400 billion in securities it holds outright, including government bonds.

Overall, the ECB’s balance sheet has grown to almost €2 trillion. It has a capital base of €78 billion. That creates leverage that makes it look like a “hedge fund on steroids,” Mr. Buiter wrote. It wouldn’t need to lose much on these assets to wipe out its thin cushion of capital.

That’s where seigniorage comes in.

In recent years, the profits on its issue of new paper currency have been running at €50 billion. In 2008, the year of the Lehman Brothers crisis, it was €80 billion.

Even with conservative assumptions about future growth of currency in circulation—at, say, 4% a year, which is in line with the ECB’s 2% inflation target plus a margin for economic growth—Mr. Buiter estimates future seigniorage profits for the central bank between €2 trillion and €6.9 trillion.

Thanks to seigniorage, he says, the ECB is “super solvent.”

More: Buiter, Gangsters and Euros – Oh My

Research Credit: tochigi


Feds Admit Storing Checkpoint Body Scan Images

August 4th, 2010

Via: Cnet:

For the last few years, federal agencies have defended body scanning by insisting that all images will be discarded as soon as they’re viewed. The Transportation Security Administration claimed last summer, for instance, that “scanned images cannot be stored or recorded.”

Now it turns out that some police agencies are storing the controversial images after all. The U.S. Marshals Service admitted this week that it had surreptitiously saved tens of thousands of images recorded with a millimeter wave system at the security checkpoint of a single Florida courthouse.

Research Credit: rmf


Fructose Helps Cancer Proliferate

August 4th, 2010

In the Reuters piece below, we see, “Americans take in large amounts of fructose, mainly in high fructose corn syrup, a mix of fructose and glucose that is used in soft drinks, bread and a range of other foods.”

Now, what are poor people being dosed with? That’s right…

Via: Reuters:

Pancreatic tumor cells use fructose to divide and proliferate, U.S. researchers said on Monday in a study that challenges the common wisdom that all sugars are the same.

Tumor cells fed both glucose and fructose used the two sugars in two different ways, the team at the University of California Los Angeles found.

They said their finding, published in the journal Cancer Research, may help explain other studies that have linked fructose intake with pancreatic cancer, one of the deadliest cancer types.

“These findings show that cancer cells can readily metabolize fructose to increase proliferation,” Dr. Anthony Heaney of UCLA’s Jonsson Cancer Center and colleagues wrote.

“They have major significance for cancer patients given dietary refined fructose consumption, and indicate that efforts to reduce refined fructose intake or inhibit fructose-mediated actions may disrupt cancer growth.”

Americans take in large amounts of fructose, mainly in high fructose corn syrup, a mix of fructose and glucose that is used in soft drinks, bread and a range of other foods.


Gulf Loop Current Stalls Due to BP Incident?

August 4th, 2010

Via: Pure Energy Systems News:

Oceanographic satellite data now shows that as of July 28, the Loop Current in the Gulf of Mexico has stalled as a consequence of the BP oil spill disaster. This according to Dr. Gianluigi Zangari, an Italian theoretical physicist, and major complex and chaotic systems analyst at the Frascati National Laboratories in Italy.

Research Credit: Eileen


Russian Wheat Harvest Down Sharply Due to Drought and Fires

August 4th, 2010

Via: Kansas City Star:

Drought and raging wildfires have destroyed one-fifth of the wheat crop in Russia and sent wheat prices soaring around the world.

The fear that Russia, a major wheat producer, will have to cut exports by at least 30 percent is good news for U.S. farmers, who now are getting more money to go along with a bumper crop this year.

That big harvest, analysts point out, should spare U.S. consumers much increase in the prices of bread and other wheat-based foods despite the problems in Russia.

Any price increases will hit consumers hardest in wheat-deficient areas such as the Middle East, Africa and parts of Asia.

The severe drought in Russia is thought to be the country’s worst in 130 years. Most of the damage to the wheat crop has been caused by the drought, but now wildfires are sweeping farmlands in western Russia.

The Associated Press reported that the director of a small state farm outside Moscow said fire destroyed its entire wheat crop one night before the harvest.

“The fruits of the year’s labor of the farm went up in smoke. This is very painful,” Pavel Grudinin, director of Lenin State Farm, said on Russian television.

The drought is also affecting harvests in Ukraine and Kazakhstan, Russia’s neighboring wheat-producing countries.

Troubles with wheat crops aren’t confined to that part of the world. Heavy rains during the planting season destroyed much of Canada’s crop. The Canadian Wheat Board, the marketing agency for the country’s farmers, is forecasting a 35 percent drop in the harvest.

The crop disasters have fed an unyielding price rally. In July alone, prices at the Chicago Board of Trade surged 42 percent, the biggest monthly gain in half a century.

In Chicago, wheat prices breached $7 a bushel Tuesday for the first time since September 2008.

At the Kansas City Board of Trade, the leading exchange for hard red winter wheat, prices are at a 13-month high, closing Tuesday at $6.85 a bushel.


Hacker Spoofs Cell Phone Tower to Intercept Calls

August 4th, 2010

Via: Wired:

A security researcher created a cell phone base station that tricks cell phones into routing their outbound calls through his device, allowing someone to intercept even encrypted calls in the clear.

The device tricks the phones into disabling encryption and records call details and content before they’re routed on their proper way through voice-over-IP.

The low-cost, home-brewed device, developed by researcher Chris Paget, mimics more expensive devices already used by intelligence and law enforcement agencies – called IMSI catchers – that can capture phone ID data and content. The devices essentially spoof a legitimate GSM tower and entice cell phones to send them data by emitting a signal that’s stronger than legitimate towers in the area.

“If you have the ability to deliver a reasonably strong signal, then those around are owned,” Paget said.

Paget’s system costs only about $1,500, as opposed to several hundreds of thousands for professional products. Most of the price is for the laptop he used to operate the system.

Doing this kind of interception “used to be a million dollars, now you can do it with a thousand times less cost,” Paget said during a press conference after his attack. “If it’s $1,500, it’s just beyond the range that people can start buying them for themselves and listening in on their neighbors.”

Paget’s device captures only 2G GSM calls, making AT&T and T-Mobile calls, which use GSM, vulnerable to interception. Paget’s aim was to highlight vulnerabilities in the GSM standard that allows a rogue station to capture calls. GSM is a second-generation technology that is not as secure as 3G technology.

Encrypted calls are not protected from interception because the rogue tower can simply turn it off. Although the GSM specifications say that a phone should pop up a warning when it connects to a station that does not have encryption, SIM cards disable that setting so that alerts are not displayed.

“Even though the GSM spec requires it, this is a deliberate choice on the cell phone makers,” Paget said.

The system captures only outbound calls. Inbound calls would go directly to voicemail during the period that someone’s phone is connected to Paget’s tower.

The device could be used by corporate spies, criminals, or private investigators to intercept private calls of targets.

“Any information that goes across a cell phone you can now intercept,” he said, except data. Professional grade IMSI catchers do capture data transfers, but Paget’s system doesn’t currently do this.


And Now… A Vaccine Against Stress

August 4th, 2010

Oh sure.

Via: CBS News:

Stressed out? There’s no app for that, but soon enough there might be a vaccine.

Dr Robert Sapolsky, a neuroscience professor at Stanford, says after 30 years of studying stress, his team might be on the verge of a novel cure.

“To be honest, I’m still amazed that it works,” Sapolsky told Wired in an August profile.

Sapolsky has long theorized that, unlike some animals, humans are unable to turn off stress chemicals used for the fight-or-flight mechanism. A class of hormone called glucocorticoids are one of the chief offenders, according to Sapolsky.

So his team has pioneered a way to bootstrap a “herpes virus to carry engineered ‘neuroprotective’ genes deep into the brain to neutralize the rogue hormones before they can cause damage,” according to the Daily Mail.

Sounds properly science fiction, but will it work?

So far, rat studies have gone well, according to the British paper. Human trials are still years away.

Until then, don’t give up your yoga mat.


Web Attack Uses Google Geolocation Database to Identify Address of Routers

August 4th, 2010

First of all, as usual with stories like this, I have to refer back to my old essay that deals with the Ugly Truth About Online Anonymity.

Second, this hack isn’t new. See the Skyhook Wireless antics, circa 2008.

Third, the article below doesn’t make it clear, but this will only reveal your exact location if you’re using a wi-fi router that is in Google’s location services database.

So, yes, “Privacy is dead, people,” like the man says, but it’s not because of this. This is just another blunt blow of the rubber hose on the lifeless body of privacy.

Via: BBC:

One visit to a booby-trapped website could direct attackers to a person’s home, a security expert has shown.

The attack, thought up by hacker Samy Kamkar, exploits shortcomings in many routers to find out a key identification number.

It uses this number and widely available net tools to find out where a router is located.

Demonstrating the attack, Mr Kamkar located one router to within nine metres of its real world position.

‘Creepy’ attack

Many people go online via a router and typically only the computer directly connected to the device can interrogate it for ID information.

However, Mr Kamkar found a way to booby-trap a webpage via a browser so the request for the ID information looks like it is coming from the PC on which that page is being viewed.

He then coupled the ID information, known as a MAC address, with a geo-location feature of the Firefox web browser. This interrogates a Google database created when its cars were carrying out surveys for its Street View service.

This database links Mac addresses of routers with GPS co-ordinates to help locate them. During the demonstration, Mr Kamkar showed how straightforward it was to use the attack to identify someone’s location to within a few metres.

“This is geo-location gone terrible,” said Mr Kamkar during his presentation. “Privacy is dead, people. I’m sorry.”

Research Credit: GP


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