UK Repossessions Up 50% in a Year

May 15th, 2009

Via: BBC:

The number of homes repossessed in the UK rose to 12,800 in the first three months of the year, the Council of Mortgage Lenders (CML) has said.

This was up 23% from the 10,400 in the previous three months and 50% up on the 8,500 in the same period last year.


U.S. Winter Wheat Forecast Down About 20 Percent

May 15th, 2009

Via: AP:

The nation’s farmers are expected to harvest about 20 percent less winter wheat this season, in part because of fewer planted acres and exacerbated by floods and other weather conditions, the Kansas Agricultural Statistics Service said.

Nationwide, winter wheat production was forecast at 1.5 billion bushels, down 20 percent from last year. The nation’s production is expected to come from 34 million acres with average yields of 44 bushels per acre. Winter wheat acreage this season is down 14 percent.

“The drought really got Texas and it was the freeze that finished up the better Oklahoma wheat-producing areas. And southern Kansas was touched by the freeze as well,” said Mike Woolverton, grain marketing economist at Kansas State University.

Tuesday’s forecast comes at a time when wet conditions are keeping farmers from planting their spring wheat. The window for spring-planted wheat typically ends by mid-May; after that yield potential plummets because of hot weather during pollination, Woolverton said.

Wheat planting is far behind schedule in Montana, North Dakota and Minnesota, he said. Some farmers are now considering putting those acres instead into soybeans, which can be planted later in the season when their fields dry out.

But in Kansas, the nation’s largest wheat-producing state, the winter wheat crop was expected to be down only 4 percent from a year ago. The state was spared much of the freeze damage because its wheat was less mature and therefore less vulnerable when temperatures dipped below freezing in April. Cool, wet weather since then also helped the Kansas wheat crop recover.


Detainee Who Gave False Iraq Data Dies In Prison in Libya

May 15th, 2009

Via: Washington Post:

A former CIA high-value detainee, who provided bogus information that was cited by the Bush administration in the run-up to the Iraq war, has died in a Libyan prison, an apparent suicide, according to a Libyan newspaper.

A researcher for Human Rights Watch, who met Ibn al-Sheikh al-Libi at the Abu Salim prison in Tripoli late last month, said a contact in Libya had confirmed the death.

Libi was captured fleeing Afghanistan in late 2001, and he vanished into the secret detention system run by the Bush administration. He became the unnamed source, according to Senate investigators, behind Bush administration claims in 2002 and 2003 that Iraq had provided training in chemical and biological weapons to al-Qaeda operatives. The claim was most famously delivered by then-Secretary of State Colin L. Powell in his address to the United Nations in February 2003.

Powell later called the speech a “blot” on his record, saying he was not given all available intelligence and analysis within the government. The Defense Intelligence Agency and some analysts at the CIA had questioned the veracity of Libi’s testimony, which was obtained after the prisoner was transferred to Egyptian custody for questioning by the CIA, according to Senate investigators.

In their book “Hubris: The Inside Story of Spin, Scandal, and the Selling of the Iraq War,” Michael Isikoff and David Corn said Libi made up the story about Iraqi training after he was beaten and subjected to a “mock burial” by his Egyptian interrogators, who put him in a cramped box for 17 hours. Libi recanted the story after being returned to CIA custody in 2004.

When President George W. Bush ordered the 2006 transfer to Guantanamo Bay, Cuba, of high-value detainees previously held in CIA custody, Libi was pointedly missing. Human rights groups had long suspected that Libi was instead transferred to Libya, but the CIA had never confirmed where he was sent.

“I would speculate that he was missing because he was such an embarrassment to the Bush administration,” said Tom Malinowski, the head of the Washington office of Human Rights Watch. “He was Exhibit A in the narrative that tortured confessions contributed to the massive intelligence failure that preceded the Iraq war.”


Cryptogon Readers Send Contributions and Sign Up for Hosting with Blue Host

May 15th, 2009

I am very late with bookkeeping this month. I apologize for that.

Thank you to these kind people for sending contributions in the first half of May:

Pookie $75
Eileen $40
Eileen $40 (Farmlet)
JS $25
BP $50
SM $20
DR $10
AB $20
DR NZ$50
MS CA$25
CS £10

Thanks also goes out to the owners of the following sites for signing up for hosting with BlueHost:

Flying Flamingos Indoor Futbol Club

Wise Gaming

As a result, Cryptogon received $180.


April Earnings

May 15th, 2009

Earnings for April came to a total of $1796.59; a great result. While the month started out very slow (in terms of earnings) reader RP dropped a huge $750 contribution on us. Also, your Amazon activity turned out to be some of the heaviest ever. Note: While the vast majority of Amazon activity happens on the main amazon.com site, Cryptogon readers in Germany earn us more in commissions from amazon.de than all of the other international Amazon sites combined.

Whatever you did to help keep us going in April, thank you.


Obama Mulls ‘Indefinite Detention’ of Terror Suspects

May 14th, 2009

Via: AFP:

As part of its plans to close Guantanamo Bay, the Obama administration is considering holding some of the detainees indefinitely and without trial on US soil, US media reported Thursday.

President Barack Obama’s “administration is weighing plans to detain some terror suspects on US soil — indefinitely and without trial — as part of a plan to retool military commission trials that were conducted for prisoners held in Guantanamo Bay,” The Wall Street Journal said.

The proposal, which is part of the administration’s internal deliberations on how to deal with the prisoners ahead of a planned closure of the controversial US military prison next year, is being shared with some lawmakers, it added.

White House officials contacted by AFP had no immediate comment on the detainee deliberations.

Republican Senator Lindsey Graham, who met with White House Counsel Greg Craig this week about the Guantanamo plans, told the Journal that the administration was namely seeking authority for indefinite detentions granted by a national security court.

“This is a difficult question. How do you hold someone in prison without a trial indefinitely?” asked Graham, who, along with former Republican presidential nominee Senator John McCain, has pressed for reinstating the military commissions to try Guantanamo detainees.


Boy and Girl Explorer Scouts Train to Fight Terrorists, and More

May 14th, 2009

This is a cross between America Fuck Yeah and Starship Troopers.

Via: New York Times:

Ten minutes into arrant mayhem in this town near the Mexican border, and the gunman, a disgruntled Iraq war veteran, has already taken out two people, one slumped in his desk, the other covered in blood on the floor.

The responding officers — eight teenage boys and girls, the youngest 14 — face tripwire, a thin cloud of poisonous gas and loud shots — BAM! BAM! — fired from behind a flimsy wall. They move quickly, pellet guns drawn and masks affixed.

“United States Border Patrol! Put your hands up!” screams one in a voice cracking with adolescent determination as the suspect is subdued.

It is all quite a step up from the square knot.

The Explorers program, a coeducational affiliate of the Boy Scouts of America that began 60 years ago, is training thousands of young people in skills used to confront terrorism, illegal immigration and escalating border violence — an intense ratcheting up of one of the group’s longtime missions to prepare youths for more traditional jobs as police officers and firefighters.

“This is about being a true-blooded American guy and girl,” said A. J. Lowenthal, a sheriff’s deputy here in Imperial County, whose life clock, he says, is set around the Explorers events he helps run. “It fits right in with the honor and bravery of the Boy Scouts.”

The training, which leaders say is not intended to be applied outside the simulated Explorer setting, can involve chasing down illegal border crossers as well as more dangerous situations that include facing down terrorists and taking out “active shooters,” like those who bring gunfire and death to college campuses. In a simulation here of a raid on a marijuana field, several Explorers were instructed on how to quiet an obstreperous lookout.

“Put him on his face and put a knee in his back,” a Border Patrol agent explained. “I guarantee that he’ll shut up.”

One participant, Felix Arce, 16, said he liked “the discipline of the program,” which was something he said his life was lacking. “I want to be a lawyer, and this teaches you about how crimes are committed,” he said.

Cathy Noriego, also 16, said she was attracted by the guns. The group uses compressed-air guns — known as airsoft guns, which fire tiny plastic pellets — in the training exercises, and sometimes they shoot real guns on a closed range.

“I like shooting them,” Cathy said. “I like the sound they make. It gets me excited.”


U.S. ‘Sham’ Bank Bail-Outs Enrich Speculators, Says Buy-Out Chief Mark Patterson

May 14th, 2009

Via: Telegraph:

The US Treasury’s effort to stabilise the banking system through the TARP programme is a hopelessly ill-conceived policy that enriches speculators at public expense, according to the buy-out firm supposed to be pioneering the joint public-private bank rescues.

“The taxpayers ought to know that we are in effect receiving a subsidy. They put in 40pc of the money but get little of the equity upside,” said Mark Patterson, chairman of MatlinPatterson Advisers.

The comments are likely to infuriate Tim Geithner, the US Treasury Secretary, because MatlinPatterson took advantage of the TARP’s matching funds to buy Flagstar Bancorp in Michigan. His confession appears to validate concerns that the bail-out strategy is geared towards Wall Street.

Under the convoluted deal agreed earlier this year, MatlinPatterson has come to own 80pc of the shares while the US government has ended up with under 10pc.

Mr Patterson said the US Treasury is out of its depth and seems to be trying to put off drastic action by pretending that the banking system is still viable.

“It’s a sham. The banks are insolvent. The US government is trying to sedate the public because they are down to the last $100bn (£66bn) of the $700bn TARP funds. They think they’re doing this for the greater good of society,” he said, speaking at the Qatar Global Investment Forum.

Mr Patterson said it would be better for the US to bite the bullet as Britain has done, accepting that crippled lenders must be nationalised. “At least the British are not hiding the bail-out,” he said.

MatlinPatterson said private equity and hedge funds were deluding themselves in hoping to go back to business as usual after the trauma of the last 18 months.

“This is not a normal recession and there will be no V-shaped recovery. The crisis has destroyed leveraged companies. We’re going to see a catastrophic increase in the number of LBO’s (leveraged buyouts) going into default because they’re knee-deep in debt and no solution exists since they can’t refinance,” he said.

“Alfa hedge funds have been making their money by gambling with excessive leverage, so the knife that cuts off leverage is going to cut off their heads as well,” he said.

Like many bears, Mr Patterson expects the great crunch to end in deliberate inflation, deemed a lesser evil than outright depression.

“The US government has thrown 29pc of GDP at this crisis compared to 8pc in the early 1930s. The Fed’s balance sheet has risen from $900bn to $2.7 trillion to bail out the system. America has to do it because the only way out is to debase the currency, but that is going to lead to some very high inflation three years down the road,” he said.

Matlin Patterson, however, has missed the Spring rebound, the most powerful rise in equities in over 70 years. “We shorted the equity rally because we thought it was lunatic. We’ve kept adding positions seven times, and we’re still holding,” he said. Ouch!


Canadian Scientist Caught Smuggling Ebola Genetic Material Into U.S.

May 14th, 2009

Via: AFP:

A Canadian scientist has been arrested for smuggling 22 vials stolen from Canada’s National Microbiology Lab, used in Ebola and HIV research, into the United States, Canadian and US officials said Wednesday.

Konan Michel Yao, 42, “was taken into custody” while crossing the border from Manitoba province into the western US state of North Dakota on May 5, said a spokeswoman for the Public Health Agency of Canada, which operates the lab.

According to US prosecutor Lynn Jordheim, Yao was detained for carrying unidentified biological materials in vials wrapped in aluminium foil inside a glove and packaged in a plastic bag, along with electrical wires, in the trunk of his car.

Yao said in an affidavit he stole the vials, described as research vectors, from the Winnipeg lab on his last day of work there on January 21.

He told US border guards he was taking them to his new job with the National Institutes of Health at the Biodefense Research Laboratory in Bethesda, Maryland.

US authorities feared their contents could pose a terrorist threat. But tests later showed “they are not hazardous,” said Jordheim.

“This turned out not to be a terrorism-related case,” he said by telephone from North Dakota. “It appears to be exactly as he (Yao) said. However, he still faces possible charges for smuggling the vials into the United States.”

Yao, meanwhile, remains in US custody after waiving his right to bail and preliminary hearings, as he awaits a possible grand jury indictment for smuggling, he said.

A Public Health Agency of Canada spokeswoman told AFP Yao “was working on vaccines for the Ebola virus and HIV, among other things.”

“But he only had access to harmless and non-infectious materials, similar to what you’d find in a hospital or university lab. He did not have access to dangerous materials.”

The Ivory Coast-born scientist is said to have studied at Laval University in Quebec and briefly worked at the University of Manitoba’s plant sciences department.

Research Credit: S


Cargo Ships Treading Water Off Singapore, Waiting for Work

May 14th, 2009

Via: New York Times:

To go out in a small boat along Singapore’s coast now is to feel like a mouse tiptoeing through an endless herd of slumbering elephants.

One of the largest fleets of ships ever gathered idles here just outside one of the world’s busiest ports, marooned by the receding tide of global trade. There may be tentative signs of economic recovery in spots around the globe, but few here.

Hundreds of cargo ships — some up to 300,000 tons, with many weighing more than the entire 130-ship Spanish Armada — seem to perch on top of the water rather than in it, their red rudders and bulbous noses, submerged when the vessels are loaded, sticking a dozen feet out of the water.

So many ships have congregated here — 735, according to AIS Live ship tracking service of Lloyd’s Register-Fairplay in Redhill, Britain — that shipping lines are becoming concerned about near misses and collisions in one of the world’s most congested waterways, the straits that separate Malaysia and Singapore from Indonesia.

The root of the problem lies in an unusually steep slump in global trade, confirmed by trade statistics announced on Tuesday.

China said that its exports nose-dived 22.6 percent in April from a year earlier, while the Philippines said that its exports in March were down 30.9 percent from a year earlier. The United States announced on Tuesday that its exports had declined 2.4 percent in March.

“The March 2009 trade data reiterates the current challenges in our global economy,” said Ron Kirk, the United States trade representative.

More worrisome, despite some positive signs like a Wall Street rally and slower job losses in the United States, is that the current level of trade does not suggest a recovery soon, many in the shipping business say.

“A lot of the orders for the retail season are being placed now, and compared to recent years, they are weak,” said Chris Woodward, the vice president for container services at Ryder System, the big logistics company.

Western consumers still adjusting to losses in value of their stocks and homes are in little mood to start spending again on nonessential imports, said Joshua Felman, the assistant director of the Asia and Pacific division of the International Monetary Fund. “For trade to pick up, demand has to pick up,” he said. “It’s very difficult to see that happening any time soon.”


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