Obama Staffer Wants ‘Cognitive Infiltration’ of Conspiracy Groups
January 14th, 2010The American fascist would prefer not to use violence. His method is to poison the channels of public information.
—Henry A. Wallace, The Danger of American Fascism
Sunstein’s paper may be downloaded here. Wow. Clip a clothes peg over your nose if you try to make it through that one.
Via: Raw Story:
In a 2008 academic paper, President Barack Obama’s appointee to head the Office of Information and Regulatory Affairs advocated “cognitive infiltration” of groups that advocate “conspiracy theories” like the ones surrounding 9/11.
Cass Sunstein, a Harvard law professor, co-wrote an academic article entitled “Conspiracy Theories: Causes and Cures,” in which he argued that the government should stealthily infiltrate groups that pose alternative theories on historical events via “chat rooms, online social networks, or even real-space groups and attempt to undermine” those groups.
As head of the Office of Information and Regulatory Affairs, Sunstein is in charge of “overseeing policies relating to privacy, information quality, and statistical programs,” according to the White House Web site.
Sunstein’s article, published in the Journal of Political Philosphy in 2008 and recently uncovered by blogger Marc Estrin, states that “our primary claim is that conspiracy theories typically stem not from irrationality or mental illness of any kind but from a ‘crippled epistemology,’ in the form of a sharply limited number of (relevant) informational sources.”
By “crippled epistemology” Sunstein means that people who believe in conspiracy theories have a limited number of sources of information that they trust. Therefore, Sunstein argued in the article, it would not work to simply refute the conspiracy theories in public — the very sources that conspiracy theorists believe would have to be infiltrated.
Goldman Pump Fake Sachs
January 13th, 2010Captain Obvious swoops low, smiles and says, “Glad to be of service! Happy trading.”
Via: New York Times:
For years, Wall Street whispered that Goldman Sachs profited handsomely by trading ahead of — or even against — its own clients. On Tuesday, a Goldman executive made an unusual admission that, in some cases, the rumors were true, Andrew Ross Sorkin writes in The New York Times.
In an e-mail message to select clients, Thomas C. Mazarakis, the head of Goldman’s fundamental strategies group, acknowledged that his unit often provided investment ideas that the firm had already traded on. Sometimes Goldman has even taken the opposite approach, betting against particular instruments that the group has recommended.
“We may trade, and may have existing positions, based on trading ideas before we have discussed those trading ideas with you,” he wrote.
The statement comes as the firm faces growing criticism over its role in the financial crisis, and is a rare acknowledgment of Goldman’s conflicts with certain of its clients.
“The way that the business is evolving is that it is laden with conflicts of interest,” Anant K. Sundaram, a professor of finance at Dartmouth’s Tuck School of Business, said.
Last month, the Securities and Exchange Commission and Congress began investigating how Goldman and other firms had created bundles of mortgages known as collateralized debt obligations, or C.D.O.’s, that were sold to investors at the same time that the banks had privately bet against the instruments. Some of these C.D.O.’s later fell in value, creating losses for those clients who bought them — and profits for Goldman.
Goldman also prevailed upon ratings agencies to assign the C.D.O.’s high investment grades, even as it planned to short, or bet against, the securities.
The e-mail message is a blunt acknowledgment of what often appeared in the fine print of Goldman’s marketing materials. Lucas van Praag, a Goldman spokesman, said in a statement: “We have been providing this disclosure, which we think is best practice, for a number of years and there is nothing new in the disclosure you were sent.”
But Mr. Mazarakis’s letter also highlights the enormous clout wielded by Goldman’s army of traders, many of whom make enormous bets using the firm’s own capital and who provide the bulk of the firm’s immense profits. Goldman insists that its trading business is done on behalf of its clients.
The Children of Cyberspace: Old Fogies by Their 20s
January 13th, 2010After recoiling in horror as I read the New York Times piece below, I started to wonder…
Is the command line interface the solution to this… phenomenon?
And things like BASIC, LOGO and Zork? If using the machines from the command line doesn’t make the kids want to go run around outside a little more, at least they won’t turn into Twitbook zombies by the time they’re ten.
Via: New York Times:
One obvious result is that younger generations are going to have some very peculiar and unique expectations about the world. My friend’s 3-year-old, for example, has become so accustomed to her father’s multitouch iPhone screen that she approaches laptops by swiping her fingers across the screen, expecting a reaction.
And after my 4-year-old niece received the very hot Zhou-Zhou pet hamster for Christmas, I pointed out that the toy was essentially a robot, with some basic obstacle avoidance skills. She replied matter-of-factly: “It’s not a robot. It’s a pet.”
…
Children my daughter’s age are also more likely to have some relaxed notions about privacy. The idea of a phone or any other device that is persistently aware of its location and screams out its geographic coordinates, even if only to friends, might seem spooky to older age groups.
But the newest batch of Internet users and cellphone owners will find these geo-intelligent tools to be entirely second nature, and may even come to expect all software and hardware to operate in this way.
Here is where corporations can start licking their chops. My daughter and her peers will never be “off the grid.” And they may come to expect that stores will emanate discounts as they walk by them, and that friends can be tracked down anywhere.
“If it’s something you grow up with, you have a completely different comfort with it than someone who has had to unlearn something about the world,” said Mr. Rainie, of the Pew project.
Move Your Money (Out of Giant Vampire Squid Banks)
January 13th, 2010Via: Move Your Money:
People all over the country are choosing to move their money out of bigger banks and into smaller, community-oriented financial institutions that generally avoided the reckless investments and schemes that helped cause the financial crisis.
Fueled by the personal initiatives of thousands, it’s a grassroots effort that has the potential to shift power in the financial system away from Wall Street and to Main Street.
Research Credit: Pookie
Monsanto’s GM Corn Damages Organs: A Comparison of the Effects of Three GM Corn Varieties on Mammalian Health
January 13th, 2010Via: International Journal of Biological Sciences:
We present for the first time a comparative analysis of blood and organ system data from trials with rats fed three main commercialized genetically modified (GM) maize (NK 603, MON 810, MON 863), which are present in food and feed in the world. NK 603 has been modified to be tolerant to the broad spectrum herbicide Roundup and thus contains residues of this formulation. MON 810 and MON 863 are engineered to synthesize two different Bt toxins used as insecticides. Approximately 60 different biochemical parameters were classified per organ and measured in serum and urine after 5 and 14 weeks of feeding. GM maize-fed rats were compared first to their respective isogenic or parental non-GM equivalent control groups. This was followed by comparison to six reference groups, which had consumed various other non-GM maize varieties. We applied nonparametric methods, including multiple pairwise comparisons with a False Discovery Rate approach. Principal Component Analysis allowed the investigation of scattering of different factors (sex, weeks of feeding, diet, dose and group). Our analysis clearly reveals for the 3 GMOs new side effects linked with GM maize consumption, which were sex- and often dose-dependent. Effects were mostly associated with the kidney and liver, the dietary detoxifying organs, although different between the 3 GMOs. Other effects were also noticed in the heart, adrenal glands, spleen and haematopoietic system. We conclude that these data highlight signs of hepatorenal toxicity, possibly due to the new pesticides specific to each GM corn. In addition, unintended direct or indirect metabolic consequences of the genetic modification cannot be excluded.
North Carolina Port Shut Down After Explosives Leak
January 13th, 2010Does this make sense to anyone?
The accident occurred about 4:40 a.m., when a forklift operator punctured a container, putting holes in nine 110-pound drums containing PETN, according to Scott Hembrook, a Coast Guard Sector North spokesman.
Via: New York Times:
An early morning accident at the port in Morehead City spilled as many as five gallons of a highly explosive chemical, prompting officials to close the port and issue a voluntary evacuation for the surrounding area.
By early evening, emergency officials had contained the spill of PETN, or the powerful explosive pentaerythritol tetranitrate, according to Karen Fox, a spokeswoman for the North Carolina State Ports Authority.
The port was scheduled to open for business at 8 a.m. on Wednesay and the voluntary evacuation was canceled.
“The incident has been resolved in a safe manner,” she said on Tuesday evening.
The accident occurred about 4:40 a.m., when a forklift operator punctured a container, putting holes in nine 110-pound drums containing PETN, according to Scott Hembrook, a Coast Guard Sector North spokesman. Local officials assured the public that there were no injuries at the port or damage to the environment, according to Ms. Fox.
“They have been able to mitigate a large amount of the explosive hazard, and it’s getting to a manageable point,” Mayor Jerry Jones said in a telephone interview Tuesday afternoon. “They have reduced the potential blast zone to one mile, down from two miles.”
Mr. Jones added: “There have been questions such as do we think it’s terrorism? I can say, ‘absolutely not.’ This was an accident.”While Ms. Fox said that explosive materials are handled routinely at this port, she added: “This is about the first time in two years that cargo like this has come into the port.”
She said that the cargo was shipped by a Spanish-based company, Maxam. According to the company’s North American Web site, the company manufactures and distributes explosives for blasting purposes in “mining, quarrying and construction industries.”
Messages left for the North American headquarters of Maxam, and with the port’s operating company, SSA Marine, were not immediately returned.
Investigators found evidence of the explosive PETN in the underwear of the Nigerian man who was accused of attempting to blow up a jetliner on Christmas Day. It was also the substance that Richard Reid concealed in his shoes during his attempt to blow up a jetliner in 2001.
More than 75 officials with the local fire and police departments, the Cherry Point Marine Corps’ Explosive Ordnance Disposal, and the Coast Guard contained the spill. By noon, nearly all the businesses in the port had closed. A two-mile portion of the waterway was closed to marine traffic, and sections of Interstate 70 were also closed.
“It’s pretty much a ghost town now,” Liz Stewart, a bartender at Rap’s Grill and Bar, said at about 12:30 on Tuesday. She had to park a half-mile from the bar, because the police had closed off the surrounding area. “We haven’t had a single person in all day, and we’re getting ready to close,” Ms. Stewart said.
Google Considers Pulling Out of China and Will Provide Uncensored Search Results in Wake of Chinese Information Warfare Operations
January 13th, 2010Via: GoogleBlog:
These attacks and the surveillance they have uncovered–combined with the attempts over the past year to further limit free speech on the web–have led us to conclude that we should review the feasibility of our business operations in China. We have decided we are no longer willing to continue censoring our results on Google.cn, and so over the next few weeks we will be discussing with the Chinese government the basis on which we could operate an unfiltered search engine within the law, if at all. We recognize that this may well mean having to shut down Google.cn, and potentially our offices in China.
SEC Orders AIG Bailout Details Sealed Until 2018
January 13th, 2010Via: Reuters:
It could take until November 2018 to get the full story behind the U.S. bailout of insurance giant American International Group (AIG.N) because of an action taken last year by the Securities and Exchange Commission.
In May, the SEC approved a request by AIG to keep secret an exhibit to a year-old regulatory filing that includes some of the details on the most controversial aspect of the AIG bailout: the funneling of tens of billions of dollars to big banks like Societe Generale, Goldman Sachs (GS.N), Deutsche Bank (DBKGn.DE) and Merrill Lynch.
The SEC’s Division of Corporation Finance, in granting AIG’s request for confidential treatment, said the “excluded information” will not be made public until Nov. 25, 2018, according to a copy of the agency’s May 22 order.
The SEC said the insurer had demonstrated the information in the exhibit, called Schedule A, “qualifies as confidential commercial or financial information.”
The expiration date for the SEC order falls on the 10th anniversary of Federal Reserve of New York’s decision to provide emergency financing to an entity set up to specifically acquire some $60 billion in collateralized debt obligations from 16 banks in the United States and Europe.
All the banks that got money from the Fed-sponsored entity — Maiden Lane III — had purchased insurance contracts, or credit default swaps, on those mortgage-related securities from AIG.
The SEC’s decision to approve AIG’s request for confidential treatment got scant attention at the time. But it could spark controversy now following the release last week of 14-month-old emails that reveal that some at the New York Fed had discussions with AIG officials about how much information should be disclosed to the public about the Maiden Lane III transaction.
The New York Fed, then led by Treasury Secretary Timothy Geithner, plays a critical role in the world of finance given its close dealings with all the major Wall Street banks, many of which were counterparties of AIG.
SEC spokesman John Nestor declined to comment on the reasons for granting AIG’s request to treat the exhibit as confidential.
Federal Reserve Seeks to Protect U.S. Bailout Secrets
January 12th, 2010Via: Bloomberg:
The Federal Reserve asked a U.S. appeals court to block a ruling that for the first time would force the central bank to reveal secret identities of financial firms that might have collapsed without the largest government bailout in U.S. history.
The U.S. Court of Appeals in Manhattan will decide whether the Fed must release records of the unprecedented $2 trillion U.S. loan program launched after the 2008 collapse of Lehman Brothers Holdings Inc. In August, a federal judge ordered that the information be released, responding to a request by Bloomberg LP, the parent of Bloomberg News.
“This case is about the identity of the borrower,” said Matthew Collette, a lawyer for the government, in oral arguments today. “This is the equivalent of saying ‘I want all the loan applications that were submitted.’”
Bloomberg argues that the public has the right to know basic information about the “unprecedented and highly controversial use” of public money. Banks and the Fed warn that bailed-out lenders may be hurt if the documents are made public, causing a run or a sell-off by investors. Disclosure may hamstring the Fed’s ability to deal with another crisis, they also argued. The lower court agreed with Bloomberg.
IRS Commissioner Doesn’t File His Own Taxes; Tax Code Too Complex
January 12th, 2010Via: The Hill:
IRS Commissioner Douglas Shulman does not file his own taxes in part because he believes the tax code is complex.
During an interview on C-SPAN’s “Newsmakers” program that aired on Sunday, Shulman said he uses a tax preparer for his own returns.
“I’ve used one for years. I find it convenient. I find the tax code complex so I use a preparer,” Shulman said.
Pressed on how he would make the tax code simpler, Shulman responded, “I don’t write the tax laws. Congress writes the tax laws so that’s a whole different discussion.”


