National Virtual Translation Center
May 6th, 2010I had never heard about the National Virtual Translation Center before today. (It came up in one of my feeds on NSA.)
Via: Monterey Herald:
The new National Virtual Translation Center at Fort Ord will be formally opened at 1 p.m. Friday.
The center will serve as the hub for national security translation needs for groups ranging from the Central Intelligence Agency to the FBI to the National Security Agency.
Rep. Sam Farr, D-Carmel, will attend a ribbon-cutting ceremony in the main lobby of the Defense Manpower Data Center, 400 Gigling Road.
U.S. to Expand Pakistan Drone Strikes
May 6th, 2010Via: Al Jazeera:
The Central Intelligence Agency (CIA) has been granted approval by the US government to expand drone strikes in Pakistan’s tribal regions in a move to step up military operations against Taliban and al-Qaeda fighters, officials have said.
Federal lawyers backed the measures on grounds of self-defence to counter threats the fighters pose to US troops in neighbouring Afghanistan and the United States as a whole, according to authorities.
The US announced on Wednesday that targets will now include low-level combatants, even if their identities are not known.
Barack Obama, the US president, had previously said drone strikes were necessary to “take out high-level terrorist targets”.
Dodd’s ‘Financial Reform’ Bill Is a Black Hole
May 6th, 2010Via: Josh Fulton:
Chris Dodd, everybody’s favorite hairdo, has introduced a “tough” financial “reform” bill that he claims will “limit the risk [financial institutions] can assume.” Of course, most people with a pulse realize that a 1565 page bill introduced by one of the top recipients of financial industry lobbyist money in Congress probably will do little to ‘reform’ the financial industry in the best interests of the American people. That, however, doesn’t fully capture the perniciousness of this bill. When we look at it closely, we can see it is one of the most dangerous bills introduced in Congress in years.
One of the worst parts of Dodd’s bill is that it institutionalizes “too big to fail.” Bank holding companies with assets greater than $50 billion and nonbank financial companies supervised by the Board of Governors of the Federal Reserve are required to pay into a $50 billion “orderly liquidation fund.” (Dodd gave verbal assurance on May 4th that this provision would be eliminated, but Dodd’s bill still needs to be reconciled with the House bill, which contains a $150 billion fund.) Why should a fund be necessary to liquidate a business? Well, to pay off creditors, that’s why. That’s the premise of “too big to fail”: if a large, interconnected firm fails, it could cause the collapse of its creditors, which could in turn cause the collapse of the entire economy. (If you believe that one, I’ve got some land in Florida to sell you.)
Freddie Mac Seeks More Government Funds
May 6th, 2010It must be nice having “unlimited financial backing” from Uncle $ugar when you’re short a few billion here and there.
Via: Reuters:
Freddie Mac, the second-largest provider of U.S. residential mortgage funds, on Wednesday asked for an additional $10.6 billion in federal aid after it lost $8 billion in the first quarter.
The company warned it would continue to need billions more in government funds because the housing market remains fragile.
The loss was $6.7 billion before a $1.3 billion dividend payment on senior preferred stock owned by the U.S. Treasury.
Freddie Mac has been struggling to contain losses sustained from its massive exposure to the U.S. housing market, which has suffered its worst downturn since the 1930s.
Fearing that losses would harm Freddie Mac’s ability to support housing, the government put the company in conservatorship in September 2008 and late last year pledged unlimited financial backing.
Chief Executive Charles Haldeman said the company is focused on strengthening its underwriting standards and improving credit quality.
“Though more needs to be done, we are seeing some signs of stabilization in the housing market, including house prices and sales in some key geographic areas,” Haldeman said in a statement.
“But as we have noted for many months now, housing in America remains fragile with historically high delinquency and foreclosure levels, and high unemployment among the key risks.”
Freddie Mac, in a regulatory filing, predicted that U.S. home prices would fall further over the “near term” before any sustained recovery in housing. It said it expects “a significant increase in distressed sales.”
Research Credit: SW
Many Possible Triggers for Wider Euro Debt Crisis
May 5th, 2010Why can’t the ECB just eat the debt, like the Federal Reserve has been eating it?
Does anyone know why not?
It doesn’t seem fair that Uncle Sugar can rally its silly confetti by feeding it into a shredder. The ECB should be able to do the same with its confetti, right?
Via: Reuters:
Europe may be months, conceivably weeks away from an expanded debt crisis that cuts more countries off from access to the markets and forces fresh emergency action by rich governments or the European Central Bank.
The many potential triggers for an expanded crisis include a failed bond auction, any signs that Athens or donor nations were backing away from a 110 billion euro ($141 billion) bailout of Greece, and a freezing up of Europe’s interbank money market.
…
Greece became unable to finance its debt at affordable rates when its 10-year government bond yield soared near 10 percent in April. The euro zone’s other weak countries have not reached that stage; Portugal’s yield was below 6 percent on Wednesday.
Portugal sold 500 million euros in six-month Treasury bills on Wednesday at a yield of 2.955 percent, which was about four times the rate at the last such sale on March 3 but was well below maximum levels in the secondary market. This was seen as a moderately positive sign by analysts.
Spain is expected to succeed in selling 2-3 billion euros of government bonds on Thursday, although at a much higher yield than in its last auction, analysts said.
Nevertheless, every debt sale by weak euro zone states in coming months is likely to be viewed as a potential flashpoint for an expanded crisis. Portugal plans to offer more T-bills on May 19 and Spain plans another bond sale on May 20.
Annunziata estimated Spain’s bond spreads were still low enough for it to borrow at current rates for at least a year or more without doing serious damage to its finances. Portugal can keep borrowing at current rates for at least a year, he said.
But he added, “The problem, as for exchange rates, is also the speed of the movement. If spreads keep widening then markets could more quickly lose confidence and the problem would be the quantity of available financing, not the cost.”
Meanwhile, the Greek bailout package announced this week imposes such harsh austerity measures on Greece that the markets will continue doubting the country’s political will and economic ability to stick to the package.
Any sign that the government of Prime Minister George Papandreou was backing off from key fiscal reforms in the face of public opposition could raise the prospect of a Greek debt restructuring or default, triggering an expanded crisis.
The European Commission and the International Monetary Fund will monitor Greece’s progress every quarter and link aid disbursements to those reviews. The reviews could become triggers for an expanded crisis if Germany, where public opinion strongly opposes helping Greece, decides Athens is not meeting aid conditions and balks at a disbursement.
The markets could also panic if commercial banks around Europe, which have cut off funding lines to Greek banks, decide to do the same to banks in Portugal, Ireland and Spain.
So far the stresses in the money markets do not approach those seen at the peak of the global crisis. The two-year euro zone swap spread, which measures the aversion of lenders to deal with any but the most creditworthy borrowers, has widened to 65 basis points, its widest since mid-March 2009, but is far below the record 130 bps hit in October 2008.
However, large Spanish and Portuguese banks are having to pay a higher price to access the interbank market, and this premium could widen if sovereign debt markets sink further.
Obama Biggest Recipient of BP Campaign Cash
May 5th, 2010Flashback: Drill Baby, Drill: Obama to Open Offshore Areas to Oil Drilling for First Time
Via: Reuters:
While the BP oil geyser pumps millions of gallons of petroleum into the Gulf of Mexico, President Barack Obama and members of Congress may have to answer for the millions in campaign contributions they’ve taken from the oil and gas giant over the years.
BP and its employees have given more than $3.5 million to federal candidates over the past 20 years, with the largest chunk of their money going to Obama, according to the Center for Responsive Politics. Donations come from a mix of employees and the company’s political action committees — $2.89 million flowed to campaigns from BP-related PACs and about $638,000 came from individuals.
On top of that, the oil giant has spent millions each year on lobbying — including $15.9 million last year alone — as it has tried to influence energy policy.
During his time in the Senate and while running for president, Obama received a total of $77,051 from the oil giant and is the top recipient of BP PAC and individual money over the past 20 years, according to financial disclosure records.
In Congress, Sen. Mary Landrieu (D-La.), who last week cautioned that the incident should “not be used inappropriately” to halt Obama’s push for expansion of offshore drilling, has been one of the biggest beneficiaries of BP’s largesse. Her comments created some blowback, with critics complaining that she is too blasé about the impact of the disaster, even though she was among the first lawmakers to call for a federal investigation into the spill.
Portugal May Be Cut by Moody’s as Contagion Spreads
May 5th, 2010Via: Bloomberg:
Portugal may have its credit rating cut by Moody’s Investors Service as the country struggles to reduce its budget deficit and revive economic growth a sign that contagion from the Greek crisis is spreading.
Moody’s today placed its Aa2 rating on review for a possible downgrade, a process that will conclude within three months, the company said in a statement. The rating is currently the third-highest investment grade.
Investors are shifting their attention to Portugal after surging bond yields forced Greece to seek a 110 billion-euro ($142 billion) bailout from the euro region and the International Monetary Fund. The extra yield that they demand to hold Portuguese bonds over German bunds last week rose to the highest since 1997 and Bundesbank President Axel Weber today warned that the euro region faces “grave contagion effects.”
“Today’s rating action reflects the recent deterioration of Portugal’s public finances as well as the economy’s long-term growth challenges,” Moody’s said. The company “believes that increased risk discrimination in the financial markets may raise Portugal’s financing costs for some time to come.”
Trading Alert/Speculators Only: Buy EUR/USD Stopped Out
May 5th, 2010
WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
Update: Europe’s Big Fat Greek Blood Bath
1.2805
—End Update—
Update: Hooo Weee
It’s not called a falling knife fer nuthin!
1.2850
Ok, it’s through three weekly supports now. Look out below.
—End Update—
Falling knife into multiple support area, bullish RSI divergence on hourly interval, intraday stochastics steamrolled flat, mainstream news driving extreme bearish sentiment, Can the euro survive?, etc.
Currently 1.2898
Stop 1.2865
Have fun. Don’t get decapitated.
Woman Screams “There Is No Witness Protection Program!” as She Stabs People in California Store
May 5th, 2010Very likely run of the mill madness, but just in case…
Via: KNX1070:
Layla Trawick used a butcher’s knife and a carving knife to attack four people in a busy Southern Calif. Target store Monday afternoon, according to officials.
Using both blades at the same time – one in each hand – she slashed in a downward arc like in the movie “Psycho,” sheriff’s spokesman Steve Whitmore said.
“She was literally walking up and down the aisles slashing people,” he said.
Police say Trawick, 34, was arrested when an off-duty sheriff’s deputy pulled his gun and ordered the woman to the ground as screaming shoppers ran from the building.
A mother holding her baby was stabbed in the neck and was taken to the hospital, where she was in stable condition, Whitmore said. The baby was unhurt and all four victims are expected to survive.
One witness said she was shopping for a Mother’s Day card when she heard someone screaming, “There is no witness protection program!” as chaos broke out in the store.
“I don’t know what it means but she was yelling that repeatedly and at the top of her lungs,” said Katy Winn, a freelance photographer from West Hollywood.
Winn said she dropped her basket and dashed across the store to the women’s section, where she hid behind the clothing racks.
Los Angeles County Sheriff’s Deputy Clay Grant Jr., said he was picking up paper towels and other items when people around him started running and screaming.
Grant, 26, grabbed his duty weapon, identified himself as a sheriff’s deputy and ordered the woman to drop the knives, he said. She ran away and he followed her from aisle to aisle.
Grant was wearing a white T-shirt, camouflage shorts and running shoes so several shoppers mistook him for a gunman, adding to the sense of panic, sheriff’s Sgt. Josh Mankini said. He followed Trawick from aisle to aisle, until she turned and waved the knives at him from above her head.
But he decided not to shoot because he didn’t feel his life was in jeopardy, he said. For a second time, he ordered her to drop the knives and finally she complied.
“I was more concerned about the knife, more than what she was saying,” Grant said. “Her facial expression was someone who was lost, confused, didn’t know exactly where they were.”
Trawick was arrested with the help of private security guards and held on $1 million bail on suspicion of attempted murder. Investigators were trying to determine whether the Antioch woman got the knives in the store.
Research Credit: BP
Roundup-Resistant Super Weeds
May 5th, 2010The New York Times piece below states the following about glyphosate: “It kills a broad spectrum of weeds, is easy and safe to work with, and breaks down quickly, reducing its environmental impact.”
Please see: Study Released in Argentina Puts Glyphosate Under Fire:
Criticism of the soy farming model intensified recently when research released by Argentina’s top medical school showed that a leading chemical used in soy farming may be harmful to human health. The study has alarmed policymakers in the South American nation.
A study released by an Argentine scientist earlier this year reports that glyphosate, patented by Monsanto under the name “Round Up,” causes birth defects when applied in doses much lower than what is commonly used in soy fields.
The study was directed by a leading embryologist, Dr. Andres Carrasco, a professor and researcher at the University of Buenos Aires. In his office in the nation’s top medical school, Dr. Carrasco shows me the results of the study, pulling out photos of birth defects in the embryos of frog amphibians exposed to glyphosate. The frog embryos grown in petri dishes in the photos looked like something from a futuristic horror film, creatures with visible defects—one eye the size of the head, spinal cord deformations, and kidneys that are not fully developed.
Via: New York Times:
Just as the heavy use of antibiotics contributed to the rise of drug-resistant supergerms, American farmers’ near-ubiquitous use of the weedkiller Roundup has led to the rapid growth of tenacious new superweeds.
To fight them, Mr. Anderson and farmers throughout the East, Midwest and South are being forced to spray fields with more toxic herbicides, pull weeds by hand and return to more labor-intensive methods like regular plowing.
“We’re back to where we were 20 years ago,” said Mr. Anderson, who will plow about one-third of his 3,000 acres of soybean fields this spring, more than he has in years. “We’re trying to find out what works.”
Farm experts say that such efforts could lead to higher food prices, lower crop yields, rising farm costs and more pollution of land and water.
“It is the single largest threat to production agriculture that we have ever seen,” said Andrew Wargo III, the president of the Arkansas Association of Conservation Districts.
The first resistant species to pose a serious threat to agriculture was spotted in a Delaware soybean field in 2000. Since then, the problem has spread, with 10 resistant species in at least 22 states infesting millions of acres, predominantly soybeans, cotton and corn.
Research Credit: SP


