May Earnings
June 4th, 2008Cryptogon and Farmlet earnings from all sources came to a total of $1,469.38 in May. That is just shy of 3X the minimum monthly goal of $500.
Thank you to all cash contributors. You’re the main reason why we’re up.
Cryptogon readers are still using BullionVault for their professional, Good Delivery, gold vaulting needs. Thank you for that.
BullionVault has implemented a new feature for affiliates that summarizes referrals to their system. Overall, Cryptogon has referred sixty U.S. Dollar accounts with deposits of $873,473, seven Euro accounts with deposits of €155,655 and five Sterling accounts with deposits of £32,811. In other words, Cryptogon readers have about US$1.17 MILLION on deposit with BullionVault. Woh.
It should be noted that I am a BullionVault client, as well as an affiliate for their service.
Thanks to the owners of the following domains for signing up for hosting with BlueHost:
customclassicbooks.com
disinterest.org
loveleov.com
michaeldavidandre.com
xerostomia-metal.com
BlueHost is offering a more compelling deal than ever. Unlimited storage. Unlimited bandwidth. Host unlimited domains. Point and click installation and upgrades for WordPress and dozens of other open source scripts. Too many other features to list. All for $6.95 per month. If you have been thinking about starting a site, or switching hosts, seriously consider BlueHost.
A few people are still ordering emergency food supplies from Nitro-Pak. Thanks for remembering to do that via Cryptogon. Nitro-Pak is the oldest, the biggest and the best in the business. I’m pleased to be able to work with them.
HAHA. Cryptogon readers have over one million dollars on deposit with BullionVault, but only $944 worth of food was ordered from Nitro-Pak in May. You guys crack me up.
Thanks also for remembering to start all of your Amazon sessions via Cryptogon. It all adds up.
Finally, I’d like to thank Financial Web for continuing their generous sponsorship of Cryptogon.
Four Japanese Gang Figures Got Liver Transplants at UCLA
June 4th, 2008Follow-up on, This Mob Is Big in Japan.
Via: Los Angeles Times:
UCLA Medical Center and its most accomplished liver surgeon provided a life-saving transplant to one of Japan’s most powerful gang bosses, law enforcement sources told The Times.
In addition, the surgeon performed liver transplants at UCLA on three other men who are now barred from entering the United States because of their criminal records or suspected affiliation with Japanese organized crime groups, said a knowledgeable law enforcement official who spoke on condition of anonymity.
The four surgeries were done between 2000 and 2004 at a time of pronounced organ scarcity. In each of those years, more than 100 patients died awaiting liver transplants in the Greater Los Angeles region.
The surgeon in each case was Dr. Ronald W. Busuttil, executive chairman of UCLA’s surgery department, according to another person familiar with the matter who also spoke on condition of anonymity. Busuttil is a world-renowned liver surgeon who co-edited a leading text on liver transplantation and is one of the highest-paid employees in the University of California system.
There is no evidence that UCLA or Busuttil knew at the time of the transplants that any of the patients had ties to Japanese gangs, commonly called yakuza. Both said in statements that they do not make moral judgments about patients and treat them based on their medical need.
U.S. transplant rules do not prohibit hospitals from performing transplants on either foreign patients or those with criminal histories.
The most prominent transplant recipient, Tadamasa Goto, had been barred from entering the U.S. because of his criminal history, several current and former law enforcement officials said. Goto leads a gang called the Goto-gumi, which experts describe as vindictive and at times brutal.
The FBI helped Goto obtain a visa to enter the United States in 2001 in exchange for leads on potentially illegal activity in this country by Japanese criminal gangs, said Jim Stern, retired chief of the FBI’s Asian criminal enterprise unit in Washington.
Goto got his liver, Stern said, but provided the bureau with little useful information on Japanese gangs.
“I don’t think Goto gave the bureau anything of significance,” Stern said. Goto “came to the States and got a liver and was laughing back to where he came from. . . . It defies logic.”
Although Stern was not involved with the deal, he said he learned the details when he became unit chief in 2004 and continues to be troubled by what happened.
After the transplant, Goto was again barred from reentering the U.S., said the first law enforcement official, who was not authorized to discuss the matter publicly and therefore requested anonymity.
But Goto continued to receive medical care from Busuttil in Japan. The doctor traveled there and examined Goto on more than one occasion, said Goto’s Tokyo-based lawyer, Yoshiyuki Maki — and evaluated Goto while he was in custody in 2006.
Busuttil’s medical opinion was cited in a successful court petition to have Goto released for medical care at a Tokyo hospital, Maki said.
The Times is not naming the other three transplant recipients in this article because neither they nor their lawyers could be reached.
Related: Jake Adelstein: Characteristics and Tendencies of the Goto Gumi Organization
The World According to Monsanto
June 3rd, 2008Guys, I’m very behind with posts. One of the reasons is because I watched this documentary tonight.
Please find the time to watch this and share it around.
I’ll catch up on posts tomorrow.
Watch: The World According to Monsanto
Via: GreenPeace:
A new movie has dealt yet another severe blow to the credibility of US based Monsanto, one of the biggest chemical companies in the world and the provider of the seed technology for 90 percent of the world’s genetically engineered (GE) crops.
The French documentary, called “The world according to Monsanto” and directed by independent filmmaker Marie-Monique Robin, paints a grim picture of a company with a long track record of environmental crimes and health scandals.
The story starts in the White House, where Monsanto often got its way by exerting disproportionate influence over policymakers via the “revolving door”. One example is Michael Taylor, who worked for Monsanto as an attorney before being appointed as deputy commissioner of the US Food and Drug Administration (FDA) in 1991. While at the FDA, the authority that deals with all US food approvals, Taylor made crucial decisions that led to the approval of GE foods and crops. Then he returned to Monsanto, becoming the company’s vice president for public policy.
Thanks to these intimate links between Monsanto and government agencies, the US adopted GE foods and crops without proper testing, without consumer labeling and in spite of serious questions hanging over their safety. Not coincidentally, Monsanto supplies 90 percent of the GE seeds used by the US market.
Monsanto’s long arm stretched so far that, in the early nineties, the US Food and Drugs Agency even ignored warnings of their own scientists, who were cautioning that GE crops could cause negative health effects. Other tactics the company uses to stifle concerns about their products include misleading advertising, bribery and concealing scientific evidence.
Two Miami Police Officers Protected Shipments of Cocaine
June 2nd, 2008Via: WSVN:
Two veteran Miami police officers were charged Friday with providing protection for purported shipments of cocaine and stolen goods in an eight-month undercover FBI operation.
Officer Geovani Nunez and Detective Jorge Hernandez, both 13-year veterans of the Miami Police Department, were paid a combined $39,500 by a man they thought was involved in numerous illegal businesses, prosecutors said. That man, however, was secretly an FBI informant and all of their conversations were taped.
U.S. Attorney R. Alexander Acosta said the case was particularly disheartening in a year when several South Florida police officers have died in the line of duty.
“It is sad that a handful of individuals choose to repay their colleagues’ sacrifice through criminal conduct,” Acosta said.
Nunez and Hernandez were released on bail after appearing briefly in court Friday. Their lawyers said they would fight the charges, which carry potential life sentences.
Nunez’s attorney, Michael Catalano, said the FBI sting means that all of the allegedly illegal conduct was staged and not real.
“They are charged with committing crimes that did not exist,” he said.
It’s was not immediately clear if Hernandez had an attorney.
Court documents show that Nunez got involved with the informant in March 2007 after losing a part-time job at a Miami nightclub. Eventually he and Hernandez allegedly helped protect shipments — sometimes using their police cars to escort trucks — of what they thought were stolen televisions and computers and at least 12 kilograms of cocaine.
Research Credit: offthereservation
Updating: Expert Witness and Family Found Dead in San Clemente Home
June 2nd, 2008Original: Expert Witness and Family Found Dead in San Clemente Home
UPDATE 1: June 2, 2008: Grace Ucar Maintained Wiki Page on Bacillus Anthracis (Cause of Anthrax Disease)
As with all strange cases, we note the Coincidences:
Bacillus anthracis, from MicrobeWiki, Edited by Grace Ucar
Obviously, it’s not weird for a girl who majored in biology to maintain such a reference. We’ll probably never know just how weird the rest of it got.
—End Update—
Chinese Communist Gangster Ran His Own Private Army
June 2nd, 2008But how many times did he watch Apocalypse Now?
Via: Telegraph:
Yang Shukuan drove round the city of Tangshan in an armoured personnel carrier and owned a fleet of other military vehicles – as well as a Rolls-Royce, two Ferraris and 20 other cars.
He also had a cache of arms, some of which he “borrowed” from friends in the police, and used his quasi-military force to intimidate his opponents.
The case has highlighted how “gangster capitalism” has taken over parts of provincial China.
Although he mixed with police and served as an official government adviser, Yang’s gang consisted of ex-convicts and other unemployed local men, the court found.
His company, Huayun, had been set up in 1998 to be a front for his criminal activities.
“They illegally possessed guns, ammunition and other firearms, persecuted ordinary citizens and seriously disrupted the local economic and social order,” the court said, convicting him of operating a criminal gang, intimidation, fraud, inciting violence, fighting in public and disorder.
Oil: Margin Requirements Tripled on Nymex and Ice Futures Exchanges
June 2nd, 2008I’m in no position to assess the impact that this will have. The initial margin requirements were a joke, so is tripling them a meaningful improvement? I don’t know.
I better stick to my squiggly lines and chicken entrails, which have come in handy. Remember what I told you about that weekly stochastic on oil? *grin* Wound up like a three day clock… Extreme for weeks…
Via: Telegraph:
Two of the world’s largest energy exchanges have forced traders to deposit significantly more money when investing to curb volatility in energy markets and drive out speculators.
The exchanges and related clearing houses have found themselves at the centre of the growing storm over claims that speculators have been behind the recent rise in oil prices to record levels.
The New York Mercantile Exchange (Nymex) and ICE Futures Europe in London, the former International Petroleum Exchange, have now tripled “margin calls” for some contracts.
They hope the increased margin calls will reduce volatility and force out some of the more speculative players.
Nymex has announced a threefold increase in margin calls for long-dated Brent crude futures in New York. As a result margin calls on some contracts will jump from $100 to $300 for clearing members.
On more popular contracts, such as Brent for one-month delivery, the margin call will rise by 12.5pc to $450 for clearing members.
For investors with sizeable positions, the increase could mean the difference between a profit and a loss and appears to have already forced some speculative traders to close their positions.
The move, introduced by ICE earlier in the week and followed by Nymex yesterday, has coincided with a fall in the price of oil by around $7 a barrel from last week’s record high of more than $135. In London yesterday, a barrel of Brent crude for July delivery was up 88 cents at $127.77 in late trading. In New York, a barrel of sweet crude was up $1.34 at $127.96.
Rob Laughlin, senior energy broker for MF Global in London, said that, as a result of the increases, many “smaller speculators have finally taken their money and run”. However, Walter Lukken, acting chairman of the US Commodities Futures Trading Commission, yesterday dismissed the idea that raising margin calls would help long- term, saying it would just force speculators to go elsewhere.
A spokesman for Nymex would not explain why the margin calls had been raised, except to say that the calls are based on a formula linked to volume and volatility and are assessed on a daily basis.
The ICE in London, where the contracts are cleared by LCH.Clearnet, has also increased margin calls – for a “lot” of Brent crude, for example, the initial margin call has risen by a third to $10,000.
LCH.Clearnet said the margin call was raised because of “a change in the nature of the volatility across the oil curves”. Lehman Bros’ chief energy economist Edward Morse blamed the spike in oil prices on Wall Street analysts repeatedly raising their forecasts. The investment bank described the price rise as a repeat of the dotcom bubble of the late 1990s.
In a research note, entitled “Oil dotcom”, Mr Morse and Lehman’s fixed income and commodities research team argue that the ratcheting up of forecasts for oil is partly to blame for the recent increase.
“Fundamental changes cannot explain sudden, severe price or curve movements,” wrote Mr Morse. “As in the dotcom period, when “new economy” stocks became popular, a growing number of Wall Street analysts have been repeatedly raising their forecasts as oil prices have risen.”
Cryptogon Reader Sent Contribution
June 1st, 2008J sent $20. Thank you.
Spam Sales Rising
June 1st, 2008Via: AP:
Love it, hate it or laugh at it — at least it’s inexpensive.
Sales of Spam — that much maligned meat — are rising as consumers are turning more to lunch meats and other lower-cost foods to extend their already stretched food budgets.
What was once cheeky, silly and the subject of a musical (as Monty Python mocked the meat in a can), is now back on the table as people turn to the once-snubbed meat as costs rise, analysts say.
Food prices are increasing faster than they’ve risen since 1990, at 4 percent in the U.S. last year, according to the Agriculture Department. Many staples are rising even faster, with white bread up 13 percent last year, bacon up 7 percent and peanut butter up 9 percent.
There’s no sign of a slowdown. Food inflation is running at an annualized rate of 6.1 percent as of April, according to the Bureau of Labor Statistics.
The price of Spam is up too, with the average 12 oz. can costing about $2.62. That’s an increase of 17 cents, or nearly 7 percent, from the same time last year. But it’s not stopping sales, as the pork meat in a can seems like a good alternative to consumers.
Kimberly Quan, a stay-at-home mom of three who lives just outside San Francisco, has been feeding her family more Spam in the last six months as she tries to make her food budget go further.
She cooks meals like Spam fried rice and Spam sandwiches two or three times a month, up from once a month previously.
Pulling Spam from the shelf prevents last-minute grocery store trips and overspending, said Quan, 38, of Pleasanton, Calif.
“It’s canned meat and it’s in the cupboard and if everything else is gone from the fridge, it’s there,” she said.
Spam’s maker, Hormel Foods Corp., reported last week that it saw strong sales of Spam in the second quarter, helping push up its profits 14 percent. According to sales information coming from Hormel, provided by The Nielsen Co., Spam sales were up 10.6 percent in the 12-week period ending May 3, compared to last year. In the last 24 weeks, sales were up nearly 9 percent.
The Austin, Minn.-based company, also known for the Jennie-O Turkey Store, has embarked on its first national advertising campaign for the 71-year-old brand in several years. They’ve credited the sales increase to that, along with new products like individually packaged “Spam Singles” slices. Also helping sales, executives said in an earnings conference call, was the fact that people looking to save money are skipping restaurant meals and eating more at home.
Spam sales are reaching across all spectrums, young and old and rich and poor, said Swen Neufeldt, Hormel’s group product manager for the area that includes Spam. Many of the eaters are new to Spam, which was created in 1937 and gained fame as the meat that fed Allied troops during World War II.
“We have significantly increased our household penetration,” Neufeldt said. “I think it’s a lot of folks that are coming into the brand perhaps for the first time and coming back to the brand.”
Hormel began its national advertising campaign, including print and television, for Spam in January. Neufeldt said such campaigns are planned in advance and it wasn’t tied to perceived weakness in the economy.
Consumers are quick to realize that meats like Spam and other processed foods can be substituted for costlier cuts as a way of controlling costs, said Marcia Mogelonsky, senior research analyst with Mintel International in Chicago.
These products have protein and decent nutritional value, and they provide some variety to consumers who may be bored because they’re eating more at home, she said.
“They might not have Spam at every single meal, but they might supplement a couple of meals,” she said.
Consumers are also using more coupons and paying more attention to sales, doing anything they can to save money, she said. You may be able to cut back on your driving due to high gas prices, but you’re not going to stop eating because of high food prices, she said.
Quan just bought a couple more cans of Spam on sale and some ramen, the instant noodle dish long a staple on college campuses. Her food and gas budgets are together, so she’s had to cut back on food spending while the cost of gas increases. Her favorite Spam meal? Spam and macaroni and cheese. She doesn’t skimp on nutrition, though. Quan serves her husband and three children — ranging in age from 4 to 11 — organic vegetables like salads, broccoli and carrots.
“It balances out,” she said.
Other companies are seeing similar boosts in their lunch meats. Kraft Foods Inc. reported last month that subsidiary Oscar Mayer, which makes hot dogs, bacon and cold cuts, saw double-digit revenue growth in the previous quarter in its Deli Fresh cold cuts. The company, based in Madison, Wis., has recently introduced new products including family sized deli-meat packs and deli carved, which offers thicker slices of meat.
April Smith has been changing the way she feeds her family in Broken Arrow, Okla., to keep up with rising costs. This summer the 33-year-old administrative assistant will feed her two boys, ages 11 and 8, more ramen for lunch. Normally they eat the noodle soup on Saturdays, but since ramen costs about a dime per pack, they’ll get it twice a week. Smith says she’ll throw in some leftover frozen vegetables to make it more nutritious.
“Since it’s cheap and easy, I figure why not let them eat it twice a week instead of once a week,” Smith said.
Research Credit: Eileen
Fed Might Accept Foreign Collateral
June 1st, 2008Via: MarketWatch:
The Federal Reserve is actively considering creation of a lending facility that would accept “very safe” foreign collateral from “sound” global banks in case of a widespread liquidity crisis, Fed Vice Chairman Donald Kohn said Thursday.
A new global discount window is “under active study,” Kohn said. “It is possible that over time, major central banks could perhaps agree to accept a common pool of very safe collateral, facilitating the liquidity management of global banks,” he said, stipulating that such loans only be made to sound institutions.
Kohn’s suggestion came in prepared remarks wrapping up a special conference in New York on liquidity in money markets that was sponsored by the New York Fed and the Columbia Business School.
“Market functioning remains far from normal,” Kohn said, pointing in particular to large spreads between overnight bank rates such as Libor and other short-term rates. Such large spreads indicate that markets still are in shock.


