run turkey run

PIMCO | Now, however, with growth in doubt, it seems that the Fed has taken Charles Ponzi one step further. Instead of simply paying for maturing debt with receipts from financial sector creditors – banks, insurance companies, surplus reserve nations and investment managers, to name the most significant – the Fed has joined the party itself. Rather than orchestrating the game from on high, it has jumped into the pond with the other swimmers. One and one-half trillion in checks were written in 2009, and trillions more lie ahead. The Fed, in effect, is telling the markets not to worry about our fiscal deficits, it will be the buyer of first and perhaps last resort. There is no need – as with Charles Ponzi – to find an increasing amount of future gullibles, they will just write the check themselves. I ask you: Has there ever been a Ponzi scheme so brazen? There has not. This one is so unique that it requires a new name. I call it a Sammy scheme, in honor of Uncle Sam and the politicians (as well as its citizens) who have brought us to this critical moment in time. It is not a Bernanke scheme, because this is his only alternative and he shares no responsibility for its origin. It is a Sammy scheme – you and I, and the politicians that we elect every two years – deserve all the blame.

Still, as I’ve indicated, a Sammy scheme is temporarily, but not ultimately, a bondholder’s friend. It raises bond prices to create the illusion of high annual returns, but ultimately it reaches a dead-end where those prices can no longer go up. Having arrived at its destination, the market then offers near 0% returns and a picking of the creditor’s pocket via inflation and negative real interest rates. A similar fate, by the way, awaits stockholders, although their ability to adjust somewhat to rising inflation prevents such a startling conclusion. Last month I outlined the case for low asset returns in almost all categories, in part due to the end of the 30-year bull market in interest rates, a trend accentuated by QEII in which 2- and 3-year Treasury yields approach the 0% bound. Anyone for 1.10% 5-year Treasuries? Well, the Fed will buy them, but then what, and how will PIMCO tell the 500 billion investor dollars in the Total Return strategy and our equally valued 750 billion dollars of other assets that the Thanksgiving Day axe has finally arrived?

We will tell them this. Certain Turkeys receive a Thanksgiving pardon or they just run faster than others! We intend PIMCO to be one of the chosen gobblers. We haven’t been around for 35+ years and not figured out a way to avoid the November axe. We are a survivor and our clients are not going to be Turkeys on a platter. You may not be strutting around the barnyard as briskly as you used to – those near 10% annualized yields in stocks and bonds are a thing of the past – but you’re gonna be around next year, and then the next, and the next. Interest rates may be rock bottom, but there are other ways – what we call “safe spread” ways –to beat the axe without taking a lot of risk: developing/emerging market debt with higher yields and non-dollar denominations is one way; high quality global corporate bonds are another. Even U.S. Agency mortgages yielding 200 basis points more than those 1% Treasuries, qualify as “safe spreads.” While our “safe spread” terminology offers no guarantees, it is designed to let you sleep at night with less interest rate volatility. The Fed wants to buy, so come on, Ben Bernanke, show us your best and perhaps last moves on Wednesday next. You are doing what you have to do, and it may or may not work. But either way it will likely signify the end of a great 30-year bull market in bonds and the necessity for bond managers and, yes, equity managers to adjust to a new environment.

If a country gets the politicians it deserves, then the same can be said of an investor – you’re gonna get what you deserve. Vote No to Republican and Democratic turkeys on Tuesday and Yes to PIMCO on Wednesday. We hope to be your global investment authority for a new era of “SAFE spread” with lower interest rate duration and price risk, and still reasonably high potential returns. For us, and hopefully you, Turkey Day may have to be postponed indefinitely.

sharing power over public resources - participatory budgeting

Shareable | With city governments now declaring bankruptcy and cutting vital services, local officials may be wise to take the lead from Brazil and get their constituents directly involved in tough budgetary decisions. Politicians can be pressured to fund bank bailouts over health care by their campaign contributors, but their constituents won’t.

Long before the global finance crisis, residents of Porto Alegre, Brazil were having trouble getting essential services from their government. The city was bankrupt and residents were lacking proper sewage, clean water, and other necessary infrastructure due to rampant corruption. In order to more equitably and efficiently distribute scarce public funds, Porto Alegre became the first town to formally adopt a process called participatory budgeting. This process allows its residents to directly decide how public funds will be spent though open deliberation in budget assemblies and voting. Since 1989, when the program started, city-wide participation in budgetary decision-making increased from 1,000 to over 50,000, while doubling the town’s access to many essential services.

Now over 1200 local governments across the world use participatory budgeting, including most municipalities in Brazil, several other Latin American countries, Europe, and a smattering of towns in Canada, Africa, and Asia. Peru, the U.K. and the Dominican Republic have national participatory budgeting laws that apply to all their local governments, and the UN acknowledges participatory budgeting as a core component of good democratic governance.

Yet this process remained largely unheard of in the U.S. until last year when it sprouted up in an unlikely place, Chicago’s 49th Ward, a community which speaks over 80 different languages within two square miles. Last year, residents of the ward, invited by their city representative Joe Moore, made proposals and voted on its $1.3 million discretionary budget for capital infrastructure. At a series of neighborhood assemblies, residents brainstormed project ideas and selected representatives who would transform those ideas into concrete proposals. Representatives split into six thematic issue committees to spend four months meeting with experts, conducting research, and developing budget proposals before the big vote. As Moore wrote in a letter to his constituents, it "exceeded even my wildest dreams. It was more than an election. It was a community celebration and an affirmation that people will participate in the civic affairs of their community if given real power to make real decisions." Now some candidates in Chicago’s other wards are running on a participatory budgeting platform.

Participatory budgeting as a model usually allows residents to propose, discuss, and vote on public spending projects. It is frequently initiated to address resource inequalities, as well as corruption in the budget allocation process and lack of transparency and accountability. It can also have the potent side effect of creating a more engaged and empowered citizenry through a taste of direct democracy. Fist tap Dale.

community forrestry in mexico

NYTimes | As an unforgiving midday sun bore down on the pine-forested mountains here, a half-dozen men perched across a steep hillside wrestled back mounds of weeds to uncover wisps of knee-high seedlings.

Freeing the tiny pines that were planted last year is only one step of many the town takes to nurture the trees until they grow tall, ready for harvesting in half a century. But the people of Ixtlán take the long view.

“We’re the owners of this land and we have tried to conserve this forest for our children, for our descendants,” Alejandro Vargas said, leaning on his machete as he took a break. “Because we have lived from this for many years.”

Three decades ago the Zapotec Indians here in the state of Oaxaca in southern Mexico fought for and won the right to communally manage the forest. Before that, state-owned companies had exploited it as they pleased under federal government concessions.

They slowly built their own lumber business and, at the same time, began studying how to protect the forest. Now, the town’s enterprises employ 300 people who harvest timber, produce wooden furniture and care for the woodlands, and Ixtlán has grown to become the gold standard of community forest ownership and management, international forestry experts say.

Mexico’s community forest enterprises now range from the mahogany forests of the Yucatán Peninsula to the pine-oak forests of the western Sierra Madre. About 60 businesses, including Ixtlán, are certified by the Forest Stewardship Council in Germany, which evaluates sustainable forestry practices. Between 60 and 80 percent of Mexico’s remaining forests are under community control, according to Sergio Madrid of the Mexican Civic Council for Sustainable Forestry.

“It’s astounding what’s going on in Mexico,” said David Barton Bray, an expert on community forestry at Florida International University who has studied Ixtlán.

The Mexican government plans to showcase its success in community forestry at the global climate talks in Cancún next week. Despite fractious negotiations over reducing carbon emissions, talks on paying developing countries to protect their forests have moved further ahead than most other issues.

In developing countries, where the rule of law is weak and enforcement spotty, simply declaring a forest off-limits does little to prevent illegal logging or clearing land for agriculture or development. “Unless local communities are committed to conserving and protecting forests it’s not going to happen,” said David Kaimowitz, a former director of the Center for International Forestry Research, or Cifor, who is now at the Ford Foundation. “Government can’t do it for them.”

A recent Cifor study reported that more than a quarter of the forests in developing countries are now being managed by local communities. The trend is worldwide — from China to Brazil.

how terahertz waves tear apart dna - redux

Technology Review | The evidence that terahertz radiation damages biological systems is mixed. "Some studies reported significant genetic damage while others, although similar, showed none," say Boian Alexandrov at the Center for Nonlinear Studies at Los Alamos National Laboratory in New Mexico and a few buddies. Now these guys think they know why.

Alexandrov and co have created a model to investigate how THz fields interact with double-stranded DNA and what they've found is remarkable. They say that although the forces generated are tiny, resonant effects allow THz waves to unzip double-stranded DNA, creating bubbles in the double strand that could significantly interfere with processes such as gene expression and DNA replication. That's a jaw dropping conclusion.

And it also explains why the evidence has been so hard to garner. Ordinary resonant effects are not powerful enough to do do this kind of damage but nonlinear resonances can. These nonlinear instabilities are much less likely to form which explains why the character of THz genotoxic
effects are probabilistic rather than deterministic, say the team.

This should set the cat among the pigeons. Of course, terahertz waves are a natural part of environment, just like visible and infrared light. But a new generation of cameras are set to appear that not only record terahertz waves but also bombard us with them. And if our exposure is set to increase, the question that urgently needs answering is what level of terahertz exposure is safe. (Original Post date 11/01/09)

unified quest 2011

Video - Army Unified Quest 2011 training exercises.

high society exhibition

Video - Wellcome Collection exhibition High Society.

Wellcome Collection | From ancient Egyptian poppy tinctures to Victorian cocaine eye drops, Native American peyote rites to the salons of the French Romantics, mind-altering drugs have a rich history. 'High Society' will explore the paths by which these drugs were first discovered - from apothecaries' workshops to state-of-the-art laboratories - and how they came to be simultaneously fetishised and demonised in today's culture.

With the illicit drug trade estimated by the UN at $320 billion (£200bn) a year and new drugs constantly appearing on the streets and the internet, it can seem as if we are in the grip of an unprecedented level of addiction. Yet the use of psychoactive drugs is nothing new, and indeed our most familiar ones - alcohol, coffee and tobacco - have all been illegal in the past.

high society a history of mind-altering drugs

Video - High Society a History of Mind-Altering Drugs.

ThamesandHudson | High Society explores the spectrum of mind-altering substances across the globe and throughout history. Beautifully illustrated with rarely seen material, this striking, lyrical and rigorously researched book puts its controversial subject into the widest possible context.

Every society is a high society. Every day, people drink coffee on European terraces and kava in Pacific villages, sniff cocaine in American suburbs and petrol in Aborigine slums, chew betel nut in Indonesian markets and coca leaf on Andean mountainsides, swallow ecstasy tablets in the clubs of Amsterdam and opium pills in the deserts of Rajasthan, and smoke ya'aba in Thai nightclubs, hashish in Himalayan temples and tobacco in every nation on earth.

Acclaimed cultural historian Mike Jay paints vivid portraits of the roles that drugs playas medicines, religious sacraments, status symbols and coveted trade goods. He traces the understanding of intoxicants from the botanicals of the classical world through the mind-bending self-experiments of early scientists to the present 'war on drugs', and reveals how the international trade in substances such as tobacco, tea and opium shaped the modern world.

before the big bang?

Video - Sir Roger Penrose original Newton Institute lecture on the Weyl Curvature hypothesis first of nine.

There is now a great deal of evidence confirming the existence of a very hot and dense early stage of the universe. Much of this data comes from a detailed study of the cosmic microwave background (CMB)—radiation from the early universe that was most recently measured by NASA's WMAP satellite. But the information presents new puzzles for scientists. One of the most blatant examples is an apparent paradox related to the second law of thermodynamics. Although some have argued that the hypothesis of inflationary cosmology solves some of the puzzles, profound issues remain. In this talk, Professor Penrose will describe a very different proposal, one that suggests a succession of universes prior to our own.

the true size of africa

Fist tap Dale.

africa's lion reawakens

Nasdaq | With a new constitution, bold economic targets and an ambitious social development strategy, Kenya is determined to become the new star of Africa. All the signs so far suggest it may yet achieve its goal.

On a recent fact-finding mission to Kuala Lumpur, members of a Kenyan government delegation were surprised when their Malaysian hosts, after greeting them warmly, thanked them for their help in making Malaysia's capital city such a success. "They explained that, several decades earlier, Malaysia sent a similar delegation to Nairobi to find out how to create a modern capital city," says one of the members of Kenyan team. "They told us Kenya's capital was the model for Kuala Lumpur," he adds.

Decades later, and with the tables unequivocally turned, Kenya is taking a very careful look at how Malaysia and the other Asian tigers built their tremendously successful economies from the ground up. With the lessons it is learning, Kenya aims not just to replicate their success but to exceed it.

To anyone who hasn't visited Kenya recently, the country's claims and ambitions may sound like wild hubris. Even the most optimistic reputable estimate of GDP per head puts the figure at only $1,000 a year. Unemployment is rife, particularly in rural areas. The country's economy has a track record that is patchy, to say the least, and it's in a corner of East Africa that's more often associated with famine, war and piracy than with rapid and stable economic growth and social progress. But spend a little time in the bustling, vibrant capital or in the lush landscape of the fabled Rift Valley and suddenly the Kenyan leaders' vision of their country as one of the world's rising economic stars-Africa's lion to Asia's tigers-doesn't seem so far-fetched after all.

Conceived more than a decade ago, that vision is now becoming a reality. In late August, Kenya's president Mwai Kibaki signed the country's new constitution into law. As he did so, creating what many are calling the "second republic," Kibaki said: "This new constitution is an embodiment of our best hopes, aspirations, ideals and values for a peaceful and more prosperous nation." His words capture the spirit of the new Kenya, a country that is driving hard to become the de facto gateway to East Africa, the principal trade hub between Africa and Asia, and the region's economic and political powerhouse.

The country has an ambitious infrastructure construction program, a determination to upgrade its power generation grid and transform the country into a green energy leader, and a new constitutional structure that will help Kenya establish a fairer and more transparent political system and a more balanced economy. Through its "Vision 2030" program, Kenya has committed to promoting economic growth, creating "a middle-income country providing a high quality of life to all its citizens."

As well as promoting domestic growth, Kenya is looking for international partners to help it achieve its ambitious plans to grow its financial services, manufacturing and outsourcing industries. In its effort to modernize and grow its economy Kenya is also blazing a trail that other similar emerging markets will want to follow.

Mugo Kibati, director general of Vision 2030, says the organization's mission boils down to achieving one simple goal: "We want every kid growing up to be assured of a job," he says. "We have an overarching vision to transform Kenya into a globally competitive, prosperous nation with a high quality of life for all by the year 2030." If the goal is clear cut, the process of achieving it is anything but simple and will involve a transformation not just of the constitutional structure of the country but of its culture.

why you should be scared of china's food price inflation

Yahoo Finance | If you listen to the Fed, inflation is non-existent, especially when you strip out "volatile" items like food. That's fine and good, as long as you don't have to eat...

But, of course, everybody has to eat; that's why policymakers around the world were alarmed by China's recent CPI report, which showed food prices rose 10.1% in October. A separate report showed a basket of produce rose a shocking 62% on a year-over-year basis in the first 10 days of November.

Set aside for a moment questions about the accuracy of the data -- or whether inflation in China is the result of Ben Bernanke's QE2 or China's own easy money policies, and consider:

* -- An estimated 200 million migrant workers have moved from rural areas to Chinese cities in recent decades, with another 400 million predicted to follow suit in the next 20 years, according to The Independent.
* -- China had an urban population of 620 million by the end of 2009, which was 46.6 percent of the nation's total population, China Daily reports. Urban residents are expected to comprise about 52 percent of the Chinese population by 2015, and 65 percent by 2030.

That's a lot of mouths to feed and a big reason why Adrian Day of Adrian Day Asset Management is "extremely scared" about the potential for food price spikes to lead to rioting -- and even wars in the coming years.

Food is just one of myriad commodities China needs to secure in vast quantities in order to maintain its blistering growth, not to mention the legitimacy of the government. It's also the most basic, which is why Day is so concerned, as discussed in detail in the accompanying video.

Unlike some experts - notably Niall Ferguson - Day does not believe the U.S. and China are inevitably on a collision course. But it's worth noting another report that came out last week: The government's annual assessment of China's military capabilities, where there's evidence of another kind of highly disturbing "inflation."

is it possible for africa to become the world's food basket?

Video - Africa 2010- The Redesign Of Africa's Role in the New Global Economy

NEPAD | "Without food, the medicines and drugs in hospitals and clinics become ineffective or even dangerous to the sick; without food, children cannot learn well in schools; without food, the labour force cannot be productive; without food, you cannot maintain the police service and national defence forces and without food, we cannot maintain peace keeping forces anywhere in the world", said H.E Prof. Bingu Wa Mutharika, President of the Republic of Malawi and Chairperson of the African Union, at the official opening session of the Conference African Ministers of Agriculture (CAMA), today 28 October 2010, in Lilongwe, Malawi.

The President indicated that agriculture accounts for about 70 percent of Africa's labour force, and contributes to over 25 percent of its Gross Domestic Product.

According to President Mutharika, the important component of the African Food Basket is the determination of the staples grown in different African countries and the creation of reliable data banks through the use of information and communication technologies. "Within each region and between various regions, we should encourage local farmers and investors from other African countries to grow any stable crops for export to countries where these are needed", he advised.

Under the theme "Delivering on Africa's Agriculture Development Agenda" the Conference was hosted by the Government of Malawi and organised by the Africa Union Commission (AUC) and the NEPAD Planning and Coordinating Agency (NEPAD Agency).

The 14th Ordinary Summit of the Assembly of Heads of State and Government of the African Union declared that 'within a period of five years, Africa must be able to feed itself'. It is in this regard that Prof. Mutarika said, "the African Union decided to place highest priority on agriculture and food security as the basis for economic transformation and change within the short period of time".

china shifts from u.s. treasuries to hard assets

Barrons | THIS YEAR, FOR THE FIRST TIME EVER, China has been investing more overseas in assets like iron, oil and copper than it puts into U.S. government bonds.

China in this year's first half spent $31 billion on hard assets, compared with $23 billion on Treasuries and other U.S. government bonds. Experts say China's investments in each of these asset classes will total about $55 billion for the full year. But even a tie marks a major turnaround from China's previous practices. For many years, the mainland spent next to nothing on hard assets abroad, while its purchases of U.S. government debt ranged as high as $100 billion a year.

Why does China now have such a voracious appetite for hard assets? The most frequently cited reason is its need to feed its rapidly expanding industrial base. True enough. But it's also important to see China's reduction in Treasury purchases and its sharp increase in hard-asset deals as part of its currency strategy. It's widely accepted that the Chinese currency, the yuan, is undervalued against the dollar, perhaps by as much as 40%. Based on moves made in the past few years, it seems likely that Chinese officials will let the yuan, which is pegged to the dollar, rise by 2% to 3% against the greenback each year.

In the face of such a weak dollar, it doesn't make much sense to keep investing heavily in Treasuries or any other dollar-based asset. The annual interest payments can easily be outweighed by the loss in the dollar's value. There are serious concerns in Beijing, too, about the creditworthiness of U.S. debt. The smarter bet is to invest in assets that are likely to hold their value, or even increase in value, as the dollar continues its slide.

Iron ore in Sierra Leone. Mines in South Africa. Coal and gas in Australia. Oil in Brazil and Venezuela. Even Canada's timber industry is reviving as a result of demand from China. Just last week, China jacked up estimates for how much uranium it will need for nuclear power plants (see story, "Uranium's Unhealthy Glow.")

The recent move by the Federal Reserve to start buying $600 billion of government bonds, known as QE2, will only hasten China's rush for hard assets. Because it amounts to printing money, "QE2 makes the dollar even less attractive," notes Jim Lennon, head of commodities at Macquarie Bank in London. "It's certainly a policy orientation of China to diversify, and they are buying commodities as a strategic investment, and opportunistically."

africa's infrastructure deficit creates economic opportunity

Mmegi | The Development Bank of Southern Africa executive coordinator Lesetsa Matshekga said that the continent's biggest infrastructure deficit existed within the power generation sector. He noted that around 22, 000 MW of crossborder transmission lines would be needed within the next couple of years. While sub-Saharan Africa was home to 800-million people, it generated the same quantum of power as Spain.

Physical infrastructure remains Africa's most significant constraint as far as economic development goes, however, the backlog also represents big investment and business opportunities head of research and information at South Africa's Industrial Development Corporation (IDC), Jorge Maia, said. Speaking at the Gordon Institute of Business Science Business of Africa conference in Johannesburg, Maia said that some $93-billion a year was needed to build infrastructure in sub-Saharan Africa alone.

With the region expected to show economic growth of 5,5% a year over the next five years, the development of infrastructure creates a wealth of opportunity.

"As the region and Africa keeps on growing, this infrastructure gap will just become more evident," said Maia.
There are several limiting factors that come into play in the development of infrastructure on the continent, the most significant of which is a large funding gap.

However, AngloGold Ashanti CEO Mark Cutifani said at the conference that private companies could, to a large extent, assist in bridging some of these funding gaps.

"If African governments and private enterprises are able to work together, and form public-private partnerships, this can fill the gap to some extent."

Cutifani emphasised that infrastructure cooperation and an enabling environment created by governments across the continent were imperative for the future development of Africa.

"The time has come to develop infrastructure beyond colonial borders in Africa, from east to west and from north to south."

Maia agreed, but added that Africa also had to rethink the pricing of its existing infrastructure and services. He pointed out that Africa was the most expensive continent to transport goods.

"This is something that can easily be readjusted."

corporate mercenaries in arizona and south carolina

Targetfreedom | APS is a private investigations and security contractor functioning in only two states, as of yet – South Carolina and Arizona. Its staff is drawn from former law enforcement and military personnel and its services http://www.apsops.com/services.html range from property and nightclub security to community patrol. The latter, which is stated clearly on the APS website, is particularly concerning due to the fact that, while there may be a place for private security firms, “community patrol” is a local police duty. Interestingly enough, APS patrol cars are similar to Horry County and Myrtle Beach city police cars and have been seen in the area before. Whether or not these vehicles were patrolling is unknown. However, a presence has clearly been established.

Nevertheless, without the benefit of local advertising, one might have been lulled into thinking that the new cars patrolling their neighborhoods with “Advanced Protection Services” painted on the side were merely the result of the creation of another specialized task force designed to harass the citizenry and waste taxpayer money. Unfortunately, while this would be bad enough, it appears that South Carolina has now been invaded by a miniature version of Blackwater Xe. This is a clear indication of the rise of the trend in private security firms engaging in work that was once done by local police who are allegedly accountable to the people.

Last year, it was discovered that a private security company, American Police Force, had entered the small town of Hardin, Montana and had assumed the duties of patrolling the town and enforcing laws. APF had originally been contracted to provide security at a detention center near Hardin. However, not long after, residents were answering to them as if they were real law enforcement personnel. APF “officers” were soon driving around in police patrol vehicles, harassing citizens, and acting as if they were truly the authority in Hardin. Only after the independent media, such as Alex Jones’ Infowars, exposed APF did the mercenaries leave Hardin.

Private security forces, DynCorp specifically, were also used in the aftermath of Katrina in New Orleans. The use of private security forces in war theatres such as Iraq and Afghanistan is bad enough, but their use against the American people is unconscionable. Unfortunately, this is a trend that is continuing to grow by leaps and bounds every year. While one can argue that there is a place for private security companies, there is no argument to be made for their assuming duties designated to local police forces. It is important for everyone to remember that private security forces, whether contracted out by the government, businesses, or acting alone, have no jurisdiction. They are not police officers and should not be treated as such.

It’s not likely that many local police officers appreciate private security being brought in to do the jobs designated to them — especially when these contractors make many times more money than public officers for doing the same (if not less) amount of work. Thus, it is important for everyone — average citizens and police officers alike — to speak up and stop private security forces from invading our communities. For those communities that have already been invaded, it’s time to make your voices heard and drive them out.

the coming tea party civil war

MotherJones | In the months leading up to the midterm congressional elections, the tea party movement managed to tamp down on its internal divisions in pursuit of a shared goal of defeating Democrats. But with the elections over, the movement's fault lines are starting to show, and tensions between the tea party's social conservative and libertarian wings are poised to explode into an all-out civil war.

"It's easier for them to be united around the political agenda of defeating Democrats than it is going to be agreeing on a legislative agenda," observes Peter Montgomery, a senior fellow at the liberal advocacy group People for the American Way.

The most recent example of an emerging schism: Some tea party activists have linked arms with the gay conservative group GOProud to demand that the new GOP congressional leadership stick to the tea party's core fiscal issues and not those of evangelical Christians. They sent a letter to House Speaker-in-waiting John Boehner and Senate Minority Leader Mitch McConnell imploring them "to resist the urge to run down any social issue rabbit holes in order to appease the special interests." They write:

Already, there are Washington insiders and special interest groups that hope to co-opt the Tea Party's message and use it to push their own agenda—particularly as it relates to social issues. We are disappointed but not surprised by this development. We recognize the importance of values but believe strongly that those values should be taught by families and our houses of worship and not legislated from Washington, D.C.

abortion common ground - a pro-life agenda

Slate | A few weeks ago, pro-life and pro-choice thinkers met at Princeton's University Center for Human Values for an open-minded discussion of their differences and possible areas of collaboration. There was plenty of disagreement, and in the weeks since, there's been lots of sniping back and forth about whether the conference was slanted, what was agreed to, and the perfidy of the other side. But the conference did illuminate several steps each side could take to advance a common agenda. Today I'll examine the lessons for pro-lifers. Tomorrow I'll examine the lessons for pro-choicers.

laissez faire les bankster gangsters

Video - Matt Taibbi discusses his new book 'Griftopia' with Danny Schecter in the First Tuesdays Series at McNally Jackson NYC on Nov 3 2010.

Alternet | Deterrence -- it's the vaunted idea behind "tough on crime" sentences for violent offenses. Lock the door, throw away the key, and the theory says that heinous acts will be prevented.

However, things haven't worked out that way because the toughest "tough on crime" policies are most focused on crimes of passion, derangement and destitution -- crimes that are often not calculated and therefore not deterrable. This is probably one of the reasons why the murder rate has been higher in death penalty states than in non-death penalty states, leading most criminologists to conclude that capital punishment does not hinder conventional homicide.

But what about crimes of economic homicide? These are the opposite of crimes of passion. When, say, a speculator securitizes bad mortgages and peddles them to pension funds as safe investments, that fraud involves exactly the kind of calculation that might be deterred via the prospect of harsh punishment.

"What if a bank CEO was given life without parole?" I asked Taibbi. "What if instead of country club jail, one of these guys was shown experiencing prison like a regular convict? That would have to stop some of the worst stuff, right?"

"Right, and go a step further," Taibbi countered. "How about putting a few of them in the electric chair? Are you telling me Goldman Sachs execs aren't then going to change?"

We both busted out laughing -- and hard. Not at the truth behind the theorizing, but at the idea that any of it would actually happen today. In 2005, Washington couldn't even pass a post-Enron proposal to hold CEOs legally liable for their companies' corporate tax fraud. So the notion that the same money-dominated capital will now subject CEOs to anything remotely "tough on crime" is, well, far-fetched.

And yet, the hypothetical is compelling, isn't it? That's because it highlights how our society misapplies deterrence -- and how it might apply the concept more successfully.

The necessity of such a criminal justice shift should be obvious. With financial fraud now so sophisticated and pervasive, we clearly need zero-tolerance solutions to change Wall Street's culture. Indeed, without true shock-and-awe deterrence, most regulatory reform will likely be an ineffectual thumb in the economic dike -- just as the thieves desire.

german protesters overwhelm german police

Video - German protesters clash with German police to stop nuclear waste train.

Aletho | Like the Roman legions vanquished in the Teutoburger Wald in Lower Saxony in 9 AD, the 17,000 police officers that marched into the woods around the nuclear storage facility in Gorleben in northern Germany on Sunday morning looked invincible. Police personnel from France, Croatia and Poland had joined in the biggest security operation ever mounted against protestors against the a train carrying nuclear waste to a depot in an isolated part of Lower Saxony’s countryside. Helicopters, water canons and police vehicles, including an armoured surveillance truck, accompanied an endless column of anti-riot police mounted on horses and also marching down the railway tracks into the dense woods. Tens of thousands of anti riot police clattered along the tracks, their helmets and visors gleaming in the morning sun, and wearing body armour, leg guards and carrying batons.

But by Sunday night, those same police officers were begging the protestors for a respite.

Trapped in black, icy woods without supplies or reinforcements able to reach them because of blockades by a mobile fleet of farmer’s tractors, the exhausted and hungry police officers requested negotiations with the protestors. A water cannon truck was blocked by tractors, and yet the police still had to clear 5000 people lying on the railway track at Harlingen in pitch darkness. The largest ever police operation had descended into chaos and confusion in the autumn woods of Lower Saxony, defeated by the courage and determination of peaceful protestors who marched for miles through woods to find places to lie down on the tracks and to scoop out gravel to delay the progress of the “the train from hell.”

The police union head Reiner Wendt gave vent to the general frustration when he issued a press statement via the DPA news agency last night saying the police had reached exhaustion point and needed a break. Behind the scenes, a battle seemed to be raging between the police chiefs, tucked up in their warm headquarters urging more action, and the exhausted officers on the ground.

The police on the ground won out. The Castor train – called a “Chernobyl on wheels” because it has been carrying 133 tonnes of highly radioactive waste to an unsafe depot – was stopped in the middle of the countryside and Nato barbed wire was placed around it. Lit by floodlights and guarded by a handful of police, the most dangerous train on the planet was forced to a halt after a 63 hour journey across France and Germany.

The defeat of the legions at Teutoburg marked the end of the attempt by the Roman empire to conquer Germania magna. And the failure of the biggest ever police operation two thousand years later in the woods of Lower Saxony to tame women, elderly people and school children protesting the government’s nuclear policy, could well also go down as a turning point.

The Berlin government can no longer rely on the discredited mainstream media to control the way people see issues. Too many people recognise it to be a tool of propaganda. The government now needs to resort to brute force to bludgeon through decisions that enrich corporations and banks and impoverish everyone else. But the police forces at its disposal are simply not sufficient given the scale of the protests now gripping Germany. Only 1,500 police reinforcements could be mustered on Morning from the entire territory to deal with road blockades by thousands of protestors aiming to delay the transport of the nuclear waste on the final leg of its journey.