Saturday, September 05, 2009

thymos and psyche

Thymos | Greek thought evolved an intriguing division of mental life into two souls, the Thymos (pron: "theemos") and the Psyche.
  • The Thymos pertains to the active soul, what we today refer to thought, consciousness, awareness, etc.
  • It was associated with breath, heart and liver. Breath was identified with soul, as in most ancient systems of philosophy (the Hindu "atman" comes from the word for "breathing") and with language (breath is what you need to utter sounds). Liver was reputed to be the origin of emotions (there must have been painful liver diseases at the time :-). The heart was considered the seat of desires and intentions.
  • The Psyche is the immanent soul, independent from the body, a precursor of the eternal soul of Christianity that survives the body in the other world.
It appears that this was a very ancient belief, predating civilizations, as the same distinction can be found in most ancient cultures: in Egypt there were the ba and ka, in China the p'o and hun, in Judaism the nephesh and the ruach, in Buddhism the kama-manas and the buddhi-manas, in Zoroastrianism the daena and the urvan. Countless esoteric beliefs, all derived from ancient theosophies, distinguish between an active entity (alaya-vijnana, karana-sarira) and a passive entity (manas, suksma-sarira). Interestingly, the concept was abolished by Christianity but resurfaced in Islam (the ruh and the nafs).

In ancient Greece the Thymos became the active, rational and mortal part of the person (the part that has control over the body), while the Psyche became the quiescent and immortal part of the person.

The Thymos became a core concept of Socrates' philosophy. In Socrates' theology the doctrine of Thymos is a meditation on the history of philosophy from Homer to Socrates himself, by which Socrates hails the passage from unconscious philosophizing to rational self-consciousness. Interestingly, Socrates warned against the dangers of self-awareness. He warned that consciousness would cost us greatly, both in terms of desire to live and in terms of our harmony with nature. In Plato's late dialogues this contradiction has a happy ending, as Socrates finds in conscious thought the meaning of life itself.

Platonic philosophy elevated the Thymos above the Psyche. The Psyche is viewed as a sort of lower mind that can connect with either a higher mind (nous), that a Christian may perhaps interpret as God, or with the Thymos, that a Christian cannot interpret because it has no correspondent. Thymos is the cause of anger and passion. In a sense, it is opposite of meditation.

economics from the religious right

TheocracyWatch | From Let There Be Markets: The Evangelical Roots of Economics:

[Writing about the early eighteen hundreds] For [evangelicals] it was unthinkable that capitalism led to class conflict, for that would mean that God had created a world at war with itself. The evangelicals believed in a providential God, one who built a logical and orderly universe, and they saw the new industrial economy as a fulfillment of God's plan. The free market, they believed, was a perfectly designed instrument to reward good Christian behavior and to punish and humiliate the unrepentant.

At the center of this early evangelical doctrine was the idea of original sin: we were all born stained by corruption and fleshly desire, and the true purpose of earthly life was to redeem this. The trials of economic life-the sweat of hard labor, the fear of poverty, the self-denial involved in saving-were earthly tests of sinfulness and virtue. While evangelicals believed salvation was ultimately possible only through conversion and faith, they saw the pain of earthly life as means of atonement for original sin.

Moreover, they regarded poverty as part of a divine program. Evangelicals interpreted the mental anguish of poverty and debt, and the physical agony of hunger or cold, as natural spurs to prick the conscience of sinners. They believed that the suffering of the poor would provoke remorse, reflection, and ultimately the conversion that would change their fate. In other words, poor people were poor for a reason, and helping them out of poverty would endanger their mortal souls. It was the evangelicals who began to see the business mogul as an heroic figure, his wealth a triumph of righteous will. more

The God-given Right of Property Owners
"The purpose of government is to protect the life, liberty and property of all individuals, by punishing evildoers and encouraging the righteous." (America's Providential History p.20) On p. 128-129 the book discusses the "Biblical" principles of the Constitution proposed by Samuel Adams, "Father of the American Revolution." The third prinicple is the "right to property," which is one of the "rights of Colonists as Christians."

"Scripture defines God as the source of private property...Ecclesiastes 5:19 states, 'For every man to whom God has given riches and wealth, He has also empowered him to eat from them'...Also in I Chronicles 29:12, 'Both riches and honor come from Thee." (pps 187-188)

The Texas GOP Platform also espouses the absolute right of property owners which puts them in league with the Constitution in Exile movement described in a New York Times article, April 17, 2005.

calvin, the free market, and poverty..,


TalktoAction | Max Weber noted the synergy between fundamentalist Calvinism and Free Market ideologies in his famous book, The Protestant Ethic and the Spirit of Capitalism.~1. In the United States this created a particular frame in which the idea of personal initiative and rugged individualism was linked to a blame-the-victim narrative. Anyone who fell through the cracks of a Free Market economy had no one to blame but themselves. This frame shifts attention away from structural, institutional, and systemic causes of poverty and toward individual failure.

The idea behind “Faith-Based Initiatives” is to remove the government’s communal responsibility to design an equitable economic system. This is justified by the underlying ideological claims of fundamentalist Calvinism and Free Market ideologies.

Friday, September 04, 2009

genomic study yields plausible cause of colony collapse disorder


Infection Research | Researchers report that they have found a surprising but reliable marker of colony collapse disorder (CCD), a baffling malady that in 2007-2008 killed off more than a third of commercial honey bees in the U.S. Their study, in the Proceedings of the National Academy of Sciences, is the first to identify a single, objective molecular marker of the disorder, and to propose a data-driven hypothesis to explain the mysterious disappearance of American honey bees.

The new study made use of the genome and a genome-based tool, the microarray, to look for differences in gene expression in the guts of healthy honey bees and in those from hives afflicted by CCD. Such microarray analyses normally identify only active genes. But Reed Johnson, a University of Illinois doctoral student in entomology and first author on the study, noticed that the microarrays were turning up large quantities of fragmented ribosomal RNA (rRNA) in the bees affected by CCD.

Ribosomes are the factories in which proteins are made, but Johnson observed that this rRNA contained adenosine-rich sequences not seen in normal ribosomes. Such "polyadenylation" is believed to be a sign of ribosome degradation. "The one consistent indicator of CCD across samples collected at multiple times and in multiple places was the overabundance of ribosomal fragments," entomology professor and department head May Berenbaum said.

vanishing bees

RegMorrison | The wholesale disappearance of bees, sometimes called the Vanishing Bee Syndrome or Colony Collapse Disorder, has resulted in the loss of a quarter of all managed honey-bee colonies in the US since 1990. And a growing number of European and Asian nations, have reported similar declines.

Despite intensive research, the collapse of US bee populations remains largely unexplained. Two species of mite have been implicated in some of this carnage, but about a quarter of the current decline seems unrelated to any specific cause.

A variety of agencies have been suggested, but the multiplicity of potential villains suggests that it may, in fact, be due to a degradation of the bees’ immune system.

Such a massive extinction of bees in the US, home of Genetically Modified crops, should be cause for extreme alarm here in Australia, given the current deterioration in agricultural environments, the acceleration of global warming, and the imminent acceptance of GM crops.

Widespread ignorance of genetics and the evolutionary process is a common impediment to grasping the nature and size of this problem. For example, there is a general belief that there are specific ‘genes for’ this or that structure or behaviour—even some academics have been seduced by this comforting myth. In fact of course, genes code for protein. Nothing more. Structure and behaviour are emergent by-products that inevitably arise from the administration of that protein. Reg Morrison's website.

Thursday, September 03, 2009

britain facing blackouts for the first time since the 70's

Telegraph | Britain is facing the prospect of widespread power cuts for the first time since the 1970s, government projections show. Demand for power from homes and businesses will exceed supply from the national grid within eight years, according to official figures.

The shortage of supplies will hit the equivalent of many as 16 million families for at least one hour during the year, it is forecast. Not since the early 1970s when the three-day week was introduced to preserve coal has Britain faced the prospect of reationing energy use.

The gap between Britain’s energy needs and demand throws fresh doubt on the Government’s assertion that renewable energy can make up for dwindling nuclear and coal capabilities.

Over the next 10 years, one third of Britain’s power-generating capacity needs to be replaced with cleaner fuels. But last night the Conservatives said that Labour had refused to face up to the problem.

The admission that Britain will face power-cuts is contained in a document that accompanied the Government’s Low Carbon Transition Plan, which was launched in July.

measuring economic growth by lights

Vox | Given the low quality of GDP measures for countries and the almost total absence of GDP measures for sub-national units such as cities, we propose a readily available proxy: satellite data on lights at night. The best use of lights data is to examine growth in GDP rather than GDP levels, so that cross-country differences in how lights spatially and culturally reflect consumption are differenced out.

We start by examining cross-country GDP growth rates, focusing on the period 1992-2003, and develop a statistical framework for optimally combining the growth in lights measure for each country with estimates of GDP growth from the World Development Indicators. We first establish that changes in lights are well related to particular positive or negative economic growth episodes for particular regions and times and, more generally, that growth in lights is a good predictor of growth in GDP measures. As an illustration (Elvidge et al, 2005), Figure 1 contrasts the big increase in lights from 1992 to 2002 in the Eastern European countries of Poland, Hungary, and Romania with the distinct dimming of lights to the east in the former Soviet Republics of Moldova and the Ukraine, which endured a harsh transition process.

Next, we develop a framework to optimally combine measured GDP growth with growth in lights to obtain a best estimate of true GDP growth. The objective is to minimise the variance of true GDP growth from its best estimate. The weights placed on the World Bank GDP growth measure and the lights growth measure depend in part on the ratio of signal to total variance in the World Bank measure.

Applying our method to the countries given a data quality grade D in the Penn World Tables, we get estimates of true GDP growth that are starkly different from conventional measures.

Wednesday, September 02, 2009

zero population and zero oil growth

EnergyBulletin | In 2007-2008 using FAO and IFPRI data, the number of people facing acute food shortage or starvation increased by about 9% to attain more than 950 million. The same year, the last year of what is called 'vigorous' global economic growth before the present crisis, the world economy grew by about 4% using IMF data. Summarizing: 4% global economy growth produced 9% more starving people.

To be sure, this reality can be swept aside as a problem of income distribution, piranha capitalism, bad technology, inappropriate crops, or whatever, necessitating yet more economic growth to resolve. More economic growth, the prayer wheel continues, is facilitated or even directly generated by population growth. The same type of logic reversals and acts of faith, we can note, have always been a basis for religious philiosophy, for example the agonizing question of the ranks and types of angels, why some are not good and their messenger role for connecting us to God, or not.

Eating Oil: For How Much Longer?
The simple fact that "belle epoque" economic growth in 2007-2008 was far outstripped by the increase in numbers of starving people underlines an uncomfortable reality for population boomers. Economic growth does not at all guarantee that people eat, let alone eat more. Also, we can note, the most basic cause in history for population declines is neither disease nor war - but food shortage.

The vast majority of starving persons in today's world are poor and exist outside the mainly white OECD countries. The OECD countries are still able to generate food surpluses, and food linked problems include mass obesity and transgenic animal-human crossover viruses brewed by Belsen agriculture, pesticides, and agrochemicals. How the OECD countries are presently still able to attain or create food surpluses is very simple to explain: they burn a lot more oil than poor countries. Whatever the calls for Green Energy, in the OECD countries of the real world present, OECD national food production in the real world present is totally oil dependent.

In some countries of the OECD, specially Japan, this has attained extreme highs, Japan using an average of more than 12 barrels direct oil consumption per hectare (about 80 GJ) for rice production each year. If the new Democratic Party government obtains its way, and succeeds in inciting Japanese families to reproduce French-style or US-style and achieve French or US population growth (about 0.6 million a year for France and 2.8 million a year for the USA) Japan's agricultural oil burn will inexorably rise, barring green tech miracles.

defense contracting in afghanistan at record high

FAS | There are more Department of Defense contractors in Afghanistan today than there are uniformed U.S. military personnel, according to a new report from the Congressional Research Service. Not only that, the ratio of contractors to troops in Afghanistan is higher than in any prior military engagement in U.S. history.

“As of March 2009, there were 68,197 DOD contractors in Afghanistan, compared to 52,300 uniformed personnel. Contractors made up 57% of DOD’s workforce in Afghanistan. This apparently represented the highest recorded percentage of contractors used by DOD in any conflict in the history of the United States,” the CRS report (pdf) said. A copy of the report was obtained by Secrecy News.

At a time when the deployment of U.S. forces in Afghanistan may be increased (or reduced), the CRS report casts a detailed and fairly nuanced spotlight on the role of defense contractors there. The report notes, for example, that more than 75% of the DoD contractor personnel in Afghanistan are local nationals. Only about 15% are U.S. citizens.

Contractors provide essential logistical, translation and other services, while offering increased flexibility. But they also pose management challenges in monitoring performance and preventing fraud. In the worst cases, “abuses and crimes committed by armed private security contractors and interrogators against local nationals may have undermined U.S. efforts in Iraq and Afghanistan,” the CRS report noted. See “Department of Defense Contractors in Iraq and Afghanistan: Background and Analysis,” August 13, 2009.

ethiopia, population, famine, and fate...,

Tehran Times | A quarter-century after a million Ethiopians died in the great hunger of 1984-85, the country is heading into another famine. The spring rains failed entirely, and the summer rains were three weeks late. But why is famine is stalking Ethiopia again?

The Ethiopian government is authoritarian, but it isn’t incompetent. It gives fertilizer to farmers and teaches best practices. By the late 90s the country was self-sufficient in food in good years, and the government had created a strategic food reserve for the bad years.

So why are we back here again? Infant deaths are already over two per 10,000 per day in Somali, the worst-hit region of Ethiopia. (Four per day counts as full-scale famine.) Country-wide, 20 percent of the population already depends on the dwindling flow of foreign food aid, and it will get worse for many months yet. What have the Ethiopians done wrong?

The real answer (which everybody carefully avoids) is that they have had too many babies. Ethiopia’s population at the time of the last famine was 40 million. Twenty-five years later, it is 80 million. You can do everything else right – give your farmers new tools and skills, fight erosion, create food reserves – and if you don’t control the population, you are just spitting into the wind.

It is so obvious that this should be the start of every conversation about the country. Even if the coming famine in Ethiopia kills a million people, the population will keep growing. So the next famine, ten or fifteen years from now, will hit a country of a hundred million people, trying to make a living from farming on land where only 40 million faced starvation in the 1980s. It is going to get much uglier in Ethiopia.

Yet it’s practically taboo to say that. The whole question of population, instead of being central to the debate about development, about food, about climate change, has been put on ice. The reason, I think, is that the rich countries are secretly embarrassed, and the poor countries are deeply resentful.

the denizens of peak oil denial

ASPO | World oil production grew eight-fold between 1945 and 2000. The peak oil story is about our inability to sustain that trend. Today’s modest “excess” of oil supply — the result of shrinking demand due to the global recession plus Saudi investments — may last another year or two. But in the background resource nationalism, credit constraints, reduced drilling, armed conflict, and regional geological limits are kicking in hard. By 2012, global production will be downshifting into reverse, with a larger world population forced to divvy up a shrinking supply.

Debunking peak oil is like railing against gravity or aging. Consider the table below, based on worldwide production data in BP’s Annual Statistical Review. It summarizes production trends for the world’s 30 largest oil-producing nations, which account for 94% of the world’s daily output.

The track record here is ugly. A decade ago, only four of the world’s top 30 oil producers were in decline; now the number is 11 and growing. The UK had been steadily increasing production during the 1990s, as had Norway. Mexican production surged in the late 1990s. Now all three are in decline and the UK is an importer, despite the use of best-in-class technology throughout the North Sea. Indonesia, a former oil exporter, became a net oil importer within the last two years.

Brazil’s oil future looks promising, but Russia’s oil story likely includes a plateau or worse. The Chinese admit they are near peak production, hence their push to buy capacity abroad. What’s your bet that peace will break out in Iraq and Nigeria to allow production to grow? Or that Chavez and Putin will turn over a new leaf, and that Iran will make nice?

The math is straightforward and compelling. Sure, technology has helped grow deepwater supply, but that has only been enough to keep oil production flat, or “at peak/plateau,” since 2005.

Tuesday, September 01, 2009

why is the national guard recruiting for 'internment' cops?

WND | An ad campaign featured on a U.S. Army website seeking those who would be interested in being an "Internment/Resettlement" specialist is raising alarms across the country, generating concerns that there is some truth in those theories about domestic detention camps, a roundup of dissidents and a crackdown on "threatening" conservatives.

Are you an enemy of the state? Get the bumper sticker that lets everyone know you have no apologies for being right!

The ads, at the GoArmy.com website as well as others including Monster.com, cite the need for:

"Internment/Resettlement (I/R) Specialists in the Army are primarily responsible for day-to-day operations in a military confinement/correctional facility or detention/internment facility. I/R Specialists provide rehabilitative, health, welfare, and security to U.S. military prisoners within a confinement or correctional facility; conduct inspections; prepare written reports; and coordinate activities of prisoners/internees and staff personnel.
Internment specialist
United States Army National Guard
Job Title : Internment specialist
Job Reference : usang
Location : United States
Posted on : Wed May 07, 2008
Job category: Law Enforcement, National Guard, Enlisted
Job Description
The National Guard internment/resettlement specialist is an essential member of the law enforcement team. This specialist is primarily responsible for the operations in a military confinement/correction facility or detention/internment facility. Duties include:
- Assisting with the supervision and management of confinement and detention
- Providing security in a facility
- Counseling individual prisoners for rehabilitation
- Preparing reports on prisoners or programs

Training
National Guard training usually is scheduled to accommodate a member’s civilian life, whether it is for the job or school. Each member first attends Initial Entry Training. After basic training, a solider then reports for Advanced Individual Training, which may vary in length depending on your specialty. Training continues for one drill weekend each month and one annual training period, which is usually two weeks in the summer.

Helpful skills
An ideal candidate for the National Guard internment/resettlement specialist should:
- Be interested in law enforcement
- Remain calm in stressful situations
The campaign follows by only weeks a report from the U.S. Department of Homeland Security warning about "right-wing extremists" who could pose a danger to the country – including those who support third-party political candidates, oppose abortion and would prefer to have the U.S. immigration laws already on the books enforced.

there won't be any separate peace

Breton | Last week the Oil Drum featured an article about the very wealthy making preparations for whatever catastrophe the post-peak future has in stock. Many commentators have pointed out that mercenaries understand very quickly there is more money to be done by cutting their rich but helpless employers' throat than by defending them. The very fact than some people – including a few billionaires, apparently – believe a doomsday gated community is a viable response to peak energy tells a more about the preconceptions and fantasies which stand in the way of a successful adaptation to the changes peak oil heralds.

Mercenaries' dubious loyalty is, of course, the first obstacle to the building of reasonably enduring billionaires' lifeboats. Basing one's security on hired sword is one of history's most popular losing bet, even if on the short run it is not necessarily a stupid one. All rulers in history have faced the same conundrum : if you can't enforce your decisions, your power is basically worth nothing, on the other hand, if you give your enforcer too much power, he may well replace you. That's why rulers who didn't trust their own people, relied recruited their soldiers and advisors abroad or among despised minorities : because they won't have the connections to stage a coup.

Of course, on the long run it rarely works. Sooner or later, mercenaries entrench themselves within society, become a part of it and put themselves in position of kingmakers... at the very least.

washington capitulates: peak oil is real

Safehaven | Each year, generally in May, the Energy Information Administration publishes a less-than-eagerly-anticipated tome called the International Energy Outlook, 250+ pages of mind-numbing text, charts, graphs, and tables.

No one reads it. The mainstream media ignore it.

It's the product of the best prognosticators in the Department of Energy. Okay, that may be what puts most people off. But if you're patient enough to dig into it, it will cough up some fascinating nuggets of information.

The present edition is no exception. The report refrains from spelling out the conclusion that seems most obvious from its data. However, confirming a trend begun just last year, the 2009 edition clearly reveals that the government has been forced to admit that Peak Oil is coming. Moreover, it's expected to arrive much faster than was believed as recently as two years ago.

By '08, they had put the info into table form, and look what happened:

Same table, '09:

Projected production, as you can see, is suddenly shriveling up. From 107.5 million b/d of oil projected for 2030 in 2007, to 102.9 million b/d in 2008, to this year's meager expectation for 93.1 million. That's a drop of 13.4% in only two years, and posits production growth of only 11.6 million b/d (14.2%) from 2006 levels.

If that isn't an admission that the era of Peak Oil is upon us, what is?

Monday, August 31, 2009

the great american bank robbery



William K. Black, the former litigation director of the Federal Home Loan Bank Board who investigated the Savings and Loan disaster of the 1980s, discusses the latest scandal in which a single bank, IndyMac, lost more money than was lost during the entire Savings and Loan crisis. He will examine the political failure behind this economic disaster, in which not only massive fraud has taken place, but a vast transfer of wealth from the poor and middle class continues as the federal government bails out the seemingly reckless, if not the criminal. Black teaches economics and law at the University of Missouri, Kansas City and is the author of The Best Way to Rob a Bank Is to Own One. (Run Time: 1 hour, 38 min.)

Sunday, August 30, 2009

renewables target will take 100 years...,

TheAustralian | EXXONMOBIL Australia chairman John Dashwood has expressed scepticism at federal laws requiring 20 per cent of electricity be sourced from renewable sources by 2020, saying such a transformation was likely to take 100 years.

Mr Dashwood said the transformation would take "a mammoth effort".

"Renewable energy growth is unlikely to even match the forecast growth for the overall electricity market," Mr Dashwood told an American Chamber of Commerce in Australia business luncheon today.

"History shows that transforming the primary sources of energy require enormous investments in infrastructure and is likely to be a 100-year challenge," he said.

"However, energy needs must be meet in the interim with available and affordable options."

Mr Dashwood said ExxonMobil's own research had shown that by 2030 fossil fuels would still supply about three-quarters of the world's total energy demand.

happy 150th oil! so long and thanks for modern civilization


Wired | One hundred and fifty years ago on Aug. 27, Colonel Edwin L. Drake sunk the very first commercial well that produced flowing petroleum.

The discovery that large amounts of oil could be found underground marked the beginning of a time during which this convenient fossil fuel became America’s dominant energy source.

But what began 150 years ago won’t last another 150 years — or even another 50. The era of cheap oil is ending, and with another energy transition upon us, we’ve got to scavenge all the lessons we can from its remarkable history.

“I would see this as less of an anniversary to note for celebration and more of an anniversary to note how far we’ve come and the serious moment that we’re at right now,” said Brian Black, an energy historian at Pennsylvania State University and and author of the book Petrolia. “Energy transitions happen and I argue that we’re in one right now and that we need to aggressively look to the future to what’s going to happen after petroleum.”

When Drake and others sunk their wells, there were no cars, no plastics, no chemical industry. Water power was the dominant industrial energy source. Steam engines burning coal were on the rise, but the nation’s energy system — unlike Great Britain’s — still used fossil fuels sparingly. The original role for oil was as an illuminant, not a motor fuel, which would come decades later.

Before the 1860s, petroleum was a well-known curiosity. People collected it with blankets or skimmed it off naturally occurring oil seeps. Occasionally they drank some of it as a medicine or rubbed it on aching joints.

Some people had the bright idea of distilling it to make fuel for lamps, but it was easier to get lamp fuel from pig fat or whale oil or converted coal. Without a steady supply, there was no point in developing a whole system and infrastructure dedicated to petroleum.

starving for gas


Online Opinion | Nowadays not many people seem aware that nearly everything they eat and most of what they drink is produced using nitrogen fertilisers. And nitrogen fertilisers are almost entirely made from natural gas.

Indeed half the world's people would not be here today were it not for the tripling in global food production achieved largely through the use of this invaluable petrochemical byproduct. Admirers of Brillat-Savarin might plausibly contend the present human race is mostly made of gas.

Today’s high-yielding food crops, to a very great degree, depend on high levels of applied nitrogen: without it, yields collapse. Since the Green Revolution the entire world food supply has become more and more critically reliant on this input.

However, worldwide, natural gas reserves are running out just as quickly as oil which, presumably, is why China wishes to secure such a long term contract for gas from Australia and no doubt many other suppliers.

Earlier this month the International Energy Agency's chief economist Dr Fatih Birol told Britain’s The Independent newspaper that world oil production will peak within 10 years. The average rate of decline in the world’s 800 major oilfields is now 6.7 per cent a year - almost double what it was two years ago. "One day we will run out of oil. It will not be today or tomorrow, but one day we will run out of oil and we have to leave oil before oil leaves us. We have to prepare ourselves for that day," he said.

The same story, though far less well advertised, applies to natural gas which, within a few years of oil, will also reach its peak and start to decline. According to the International Fertilizer Industry Association, natural gas currently furnishes the feedstock for 97 per cent of the world’s nitrogen fertilisers. As gas output dwindles these will become increasingly scarce and unaffordable to most farmers, Australia’s included.

Unless a replacement source of ammonia for making fertiliser is found, then quite simply, global food output will - probably quite quickly - revert towards what it was in the 1960s, around a third of what we enjoy today. Those who are tempted to deride this statement can easily test the proposition in the privacy of their own backyard or balcony by growing one lettuce or tomato plant in plain sand with a standard N fertiliser, and one without.

In the 1960s we only had three billion mouths to feed (one billion of them actually starving). By the time the gas runs low and global food supplies start their downward plummet, there will be eight billion humans on the planet. According to UN population forecasts this number will be reached in 2025.

Furthermore about five billion of these people will live in cities. Unlike the 1960s, most will have not the slightest capacity or knowledge of how to produce their own food.

Saturday, August 29, 2009

bloomberg lp vs. the fed

Bloomberg | The Fed has refused to name the financial firms it lent to or disclose the amounts or the assets put up as collateral under the emergency programs, saying disclosure might set off a run by depositors and unsettle shareholders.

Bloomberg LP, the New York-based company majority-owned by Mayor Michael Bloomberg, sued on Nov. 7 under the Freedom of Information Act on behalf of its Bloomberg News unit.

Public Interest
“Our argument is that the public interest in disclosure outweighs the banks’ interest in secrecy,” said Thomas Golden, a lawyer with New York-based Willkie Farr & Gallagher LLP who represents Bloomberg.

Preska’s Aug. 24 ruling rejected the Fed’s argument that the records should remain private because they are trade secrets and would scare customers into pulling their deposits.

“What has the Fed got to hide?” said Senator Bernie Sanders, a Vermont independent who sponsored a bill to require the Fed to submit to an audit by the Government Accountability Office. “The time has come for the Fed to stop stonewalling and hand this information over to the public,” he said in an e- mail.

The Clearing House Association LLC, an industry-owned group in New York that processes payments between banks, filed a declaration that accompanied the request for a stay.

Negative Consequences
“Experience in the banking industry has shown that when customers and market participants hear negative rumors about a bank, negative consequences inevitably flow,” Norman Nelson, vice president and general counsel for the group, said in the document. “Our members have accessed the discount window with the understanding that the Fed will not disclose information about their borrowing, especially their identity.”

Members of the Clearing House are ABN Amro Holding NV, Bank of America Corp., Bank of New York Mellon Corp., Citigroup Inc.Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase Inc., UBS AG, U.S. Bancorp and Wells Fargo & Co.

The case is Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan).

the problem with federal reserve transparency

The Atlantic | Last week, the Federal Reserve lost a lawsuit. As a result, it is required to disclose the details of loans in some of its lending programs. Currently, this information is kept secret, and the Fed insists it must remain that way. As a result, the Fed is expected to appeal the case. It has already requested a delay on enforcement of the court order. After all, once the cat is out of the bag, it's not really possible to put it back in. I think the question at hand is a difficult one. I've got mixed feelings on which side is right.

First, what's the Fed's argument for keeping this information secret? Bloomberg explains the Fed's reasoning given to the judge, Loretta Preska:
Preska's Aug. 24 ruling rejected the Fed's argument that the records should remain private because they are trade secrets and would scare customers into pulling their deposits.
The trade secret argument seems a bit of a stretch. Are there really banks out there claiming that the secret to their success is getting loans from the Federal Reserve? That seems highly unlikely.

The other argument, however, is relevant and important. I see it as the crux of the Fed's case. Let's imagine your bank needed an emergency loan from the Federal Reserve. Currently, you'd never find out, since it's secret. But if the Fed ultimately loses the case, then imagine if its emergency loan balance listing by bank became published daily for public consumption. You could see your bank on there. That might, and probably should, cause some alarm to those banks' customers.

The Fed's argument is essentially that disclosing this information will cause bank panics. Ignorance is bliss. If people never find out about these loans, then assuming the bank pays it back, everything will turn out fine. Why scare the public for no reason?

rising plague

The Scientist | How do you look the family members of a critically ill patient in the eyes and tell them that their loved one is going to die because there are no drugs left to treat their illness? I'm an infectious diseases specialist. I'm not supposed to have to bear such bad news to patients or their families. I expect to cure my patients' infections, and their families and friends hope that I can. It's been that way ever since the 1940s, when penicillin burst onto the scene. But this is the 21st century, and things are different now.

The discovery of antibiotics in the mid 20th century was nothing less than a revolution in public health and medicine. It was a revolution as significant to human civilization as the discoveries of Isaac Newton or Thomas Edison's first light bulb. Physicians trained in the era immediately preceding the dawn of antibiotics learned how to resign themselves to the fact that they could not change the course of their patients' illnesses in most cases. Their job was largely to make an accurate diagnosis so they could relate the unalterable prognosis to the patient. In an instant, antibiotics changed all that by empowering physicians to eradicate diseases with aplomb. What a stunning power to acquire!

How ghastly then, having acquired this brilliant power, to watch helplessly as it shrinks back into history, leaving us once again at the mercy of even the most mundane microbes. That's the reality that we're facing now. Rising Plague is a fervent plea -- in the words of the poet -- that we not let antibiotics "go gentle into that good night."

In my latest book I describe how the relentless escalation of antibiotic resistance has created a critical need for new antibiotics. Just when we need it most, the discovery and development of new antibiotics is dying. I share with you real patient stories to underscore that the loss of effective antibiotics is not a hypothetical problem. Antibiotic resistance is killing thousands of people every year, and devastating their families. I know this because I have seen it first-hand.

The antibiotic problem didn't take shape overnight. And one can't blame physician misuse of antibiotics for all of our problems. Despite how widespread that belief is, it does not reflect reality, and it serves as a poor foundation for effective response planning.

We instead must alter our worldview of antibiotics and bacteria. Bacteria have been creating and defeating antibiotics for 20 million times longer than humans have known of the chemicals' existence. We will never stop antibiotic resistance from occurring.

Friday, August 28, 2009

fresh narrative....,

OilandGlory | John Bumgarner, a former cyber-security expert for the CIA and other U.S. intelligence agencies, is attracting much attention for his report concluding that Russia's military offensive in Georgia last year was coordinated with a pre-arranged civilian cyber-attack on the country. What appears to have gone unreported is Bumgarner's conclusion that the region's oil apparatus was a strategic target of the overall conventional-and-cyber offensive.

The 100-page report, conducted for the U.S. Cyber-Consequences Unit, where Bumgarner is director of research, was distributed to U.S. officials and security experts. Bumgarner and I chatted by phone, and he emailed me the nine-page executive summary (thanks to Josh Foust for agreeing to post it at Registan.net. Incidentally, Foust has a good piece on the media war between Russia and Georgia at CJR).

Bumgarner says the report is the result of an examination of hundreds of public Internet forums, sharing of data with sources at home and abroad, and his own reporting on the attack from almost the instant it began. Others have reported that much of the findings were already known; but Bumgarner's findings appear to be the difference between barstool talk and authentic data. Nor is the report the kid-stuff such as carried out last week against 45 million Twitter users along with Facebook members, apparently by a Georgian blogger calling himself Syxymu (the blogger's attempt to Latinize the name of the Abkhazian capital, Sukhumi.).

defying experts - rogue computer code still lurks

NYTimes | Like a ghost ship, a rogue software program that glided onto the Internet last November has confounded the efforts of top security experts to eradicate the program and trace its origins and purpose, exposing serious weaknesses in the world’s digital infrastructure.

The program, known as Conficker, uses flaws in Windows software to co-opt machines and link them into a virtual computer that can be commanded remotely by its authors. With more than five million of these zombies now under its control — government, business and home computers in more than 200 countries — this shadowy computer has power that dwarfs that of the world’s largest data centers.

Alarmed by the program’s quick spread after its debut in November, computer security experts from industry, academia and government joined forces in a highly unusual collaboration. They decoded the program and developed antivirus software that erased it from millions of the computers. But Conficker’s persistence and sophistication has squelched the belief of many experts that such global computer infections are a thing of the past.

“It’s using the best current practices and state of the art to communicate and to protect itself,” Rodney Joffe, director of the Conficker Working Group, said of the malicious program. “We have not found the trick to take control back from the malware in any way.”

Researchers speculate that the computer could be employed to generate vast amounts of spam; it could steal information like passwords and logins by capturing keystrokes on infected computers; it could deliver fake antivirus warnings to trick naïve users into believing their computers are infected and persuading them to pay by credit card to have the infection removed.

There is also a different possibility that concerns the researchers: That the program was not designed by a criminal gang, but instead by an intelligence agency or the military of some country to monitor or disable an enemy’s computers. Networks of infected computers, or botnets, were used widely as weapons in conflicts in Estonia in 2007 and in Georgia last year, and in more recent attacks against South Korean and United States government agencies. Recent attacks that temporarily crippled Twitter and Facebook were believed to have had political overtones.

Yet for the most part Conficker has done little more than to extend its reach to more and more computers. Though there had been speculation that the computer might be activated to do something malicious on April 1, the date passed without incident, and some security experts wonder if the program has been abandoned.

gut harbors antibiotic resistance

The Scientist | The millions of microbes that crowd the human intestinal tract are teeming with new antibiotic resistance genes that could jump to disease-causing pathogens, according to researchers from Harvard University.

They found more than 90 undiscovered bacterial genes capable of conferring antibiotic resistance hiding in microbes harvested from two healthy adults. They report their findings in Science today (August 27).

"I thought this was an incredibly cool story," Gerry Wright, McMaster University chemical biologist, told The Scientist. "It tells you just how ignorant we are of microbial ecology."

Wright, director of McMaster's Michael G. DeGroote Institute for Infectious Disease Research, said that the findings raise several key questions. "If there's so much resistance out there, how come [antibiotics] work at all?" asked Wright, who was not involved with the study. "It either means that we really don't understand how antibiotics work or we really don't understand how microbes work."

This lack of understanding is underscored by the fact that humans have exposed their bodies to a potentially dangerous flood of antibiotics -- directly in medicines and indirectly through agriculture and cleaning products -- for decades. This exposure has likely selected for the newly discovered antibiotic resistance genes in our internal microbiome, according to lead author Morten Sommer, a postdoc in Harvard geneticist George Church's lab. "And that could be a problem when the microbiome interacts with disease-causing microbes," he told The Scientist.

Thursday, August 27, 2009

china eyes ban on rare metal exports

Telegraph | Beijing is drawing up plans to prohibit or restrict exports of rare earth metals that are produced only in China and play a vital role in cutting edge technology, from hybrid cars and catalytic converters, to superconductors, and precision-guided weapons. China mines over 95% of the worlds rare earth minerals and is looking to hoard its resources.

A draft report by China’s Ministry of Industry and Information Technology has called for a total ban on foreign shipments of terbium, dysprosium, yttrium, thulium, and lutetium. Other metals such as neodymium, europium, cerium, and lanthanum will be restricted to a combined export quota of 35,000 tonnes a year, far below global needs.

China mines over 95pc of the world’s rare earth minerals, mostly in Inner Mongolia. The move to hoard reserves is the clearest sign to date that the global struggle for diminishing resources is shifting into a new phase. Countries may find it hard to obtain key materials at any price.

Alistair Stephens, from Australia’s rare metals group Arafura, said his contacts in China had been shown a copy of the draft -- `Rare Earths Industry Devlopment Plan 2009-2015’. Any decision will be made by China’s State Council.

“This isn’t about the China holding the world to ransom. They are saying we need these resources to develop our own economy and achieve energy efficiency, so go find your own supplies”, he said.

Mr Stephens said China had put global competitors out of business in the early 1990s by flooding the market, leading to the closure of the biggest US rare earth mine at Mountain Pass in California - now being revived by Molycorp Minerals.

New technologies have since increased the value and strategic importance of these metals, but it will take years for fresh supply to come on stream from deposits in Australia, North America, and South Africa. The rare earth family are hard to find, and harder to extract.

Mr Stephens said Arafura’s project in Western Australia produces terbium, which sells for $800,000 a tonne. It is a key ingredient in low-energy light-bulbs. China needs all the terbium it produces as the country switches wholesale from tungsten bulbs to the latest low-wattage bulbs that cut power costs by 40pc.

No replacement has been found for neodymium that enhances the power of magnets at high heat and is crucial for hard-disk drives, wind turbines, and the electric motors of hybrid cars. Each Toyota Prius uses 25 pounds of rare earth elements. Cerium and lanthanum are used in catalytic converters for diesel engines. Europium is used in lasers.

Blackberries, iPods, mobile phones, plams TVs, navigation systems, and air defence missiles all use a sprinkling of rare earth metals. They are used to filter viruses and bacteria from water, and cleaning up Sarin gas and VX nerve agents.

Arafura, Mountain Pass, and Lynas Corp in Australia, will be able to produce some 50,000 tonnes of rare earth metals by the mid-decade but that is not enough to meet surging world demand.

New uses are emerging all the time, and some promise quantum leaps in efficiency. The Tokyo Institute of Technology has made a breakthrough in superconductivity using rare earth metals that lower the friction on power lines and could slash electricity leakage.

The Japanese government has drawn up a “Strategy for Ensuring Stable Supplies of Rare Metals”. It calls for `stockpiling’ and plans for “securing overseas resources’. The West has yet to stir.

another view on the flu...,


Der Spiegel | Interview with Epidemiologist Tom Jefferson - 'A Whole Industry Is Waiting For A Pandemic'

The world has been gripped with fears of swine flu in recent weeks. In an interview with SPIEGEL, epidemiologist Tom Jefferson speaks about dangerous fear-mongering, misguided, money-driven research and why we should all be washing our hands a lot more often.

SPIEGEL: Mr. Jefferson, the world is living in fear of swine flu. And some predict that, by next winter, one-third of the world's population might be infected. Are you personally worried? Are you and your family taking any precautions?

Tom Jefferson: I wash my hands very often -- and it's not all because of swine flu. That's probably the most effective precaution there is against all respiratory viruses, and the majority of gastrointestinal viruses and germs as well.

SPIEGEL: Do you consider the swine flu to be particularly worrisome?

Jefferson : It's true that influenza viruses are unpredictable, so it does call for a certain degree of caution. But one of the extraordinary features of this influenza -- and the whole influenza saga -- is that there are some people who make predictions year after year, and they get worse and worse. None of them so far have come about, and these people are still there making these predictions. For example, what happened with the bird flu, which was supposed to kill us all? Nothing. But that doesn't stop these people from always making their predictions. Sometimes you get the feeling that there is a whole industry almost waiting for a pandemic to occur.

SPIEGEL: Who do you mean? The World Health Organization (WHO)?

Jefferson: The WHO and public health officials, virologists and the pharmaceutical companies. They've built this machine around the impending pandemic. And there's a lot of money involved, and influence, and careers, and entire institutions! And all it took was one of these influenza viruses to mutate to start the machine grinding.

high speed trading goes off the street

Marketplace | Kai Ryssdal: It usually takes a while for Congress to catch on to exactly what Wall Street's doing. A couple of months ago the big story was high-frequency trading. How super speedy computers and complicated software could be skewing the market in favor of just a handful of firms.

Well, this week the Senate asked the SEC to take a look at the practice. One estimate by the research firm Tabb Group says almost three-quarters of all Wall Street trades are done by high-speed computers. Jill Barshay explains the action doesn't really happen on Wall Street at all.

JILL BARSHAY: When Vasant Dhar was running a hedge fund, he worked out what a lot of big banks and top flight money managers are realizing these days: You don't have to take big risks to make a lot of money. Instead, you just need speed.

VASANT Dhar: If you can have that edge, where you can get in your order a millisecond faster than someone else, then you're there before someone else was.

And being there first means making a fraction of a penny. Do that a few million times and you're talking real money. High-frequency trading is all about volume. The more trades you execute, the more money you make.

Dhar: So it's like a cash machine with very little risk. That's what's really appealing about it. You just make money every day.

The high-frequency trader's building blocks are a lightning-fast computer and software that can buy shares by the bushel in the blink of an eye. There's one more key component: location.

If you're in Greenwich, Conn., and you place an order to buy a stock, it could take a half-a-thousandth of a second for the order to reach an exchange. But if your computer is sitting in the same building with the exchanges' matching engines, the computers that put buyers and sellers together, your order gets to the exchange 50 times faster.

seeking..,

Slate | "The brain seems to be more stingy with mechanisms for pleasure than for desire," Berridge has said. This makes evolutionary sense. Creatures that lack motivation, that find it easy to slip into oblivious rapture, are likely to lead short (if happy) lives. So nature imbued us with an unquenchable drive to discover, to explore. Stanford University neuroscientist Brian Knutson has been putting people in MRI scanners and looking inside their brains as they play an investing game. He has consistently found that the pictures inside our skulls show that the possibility of a payoff is much more stimulating than actually getting one.

Just how powerful (and separate) wanting is from liking is illustrated in animal experiments. Berridge writes that studies have shown that rats whose dopamine neurons have been destroyed retain the ability to walk, chew, and swallow but will starve to death even if food is right under their noses because they have lost the will to go get it. Conversely, Berridge discovered that rats with a mutation that floods their brains with dopamine learned more quickly than normal rats how to negotiate a runway to reach the food. But once they got it, they didn't find the food more pleasurable than the nonenhanced rats. (No, the rats didn't provide a Zagat rating; scientists measure rats' facial reactions to food.)

That study has implications for drug addiction and other compulsive behaviors. Berridge has proposed that in some addictions the brain becomes sensitized to the wanting cycle of a particular reward. So addicts become obsessively driven to seek the reward, even as the reward itself becomes progressively less rewarding once obtained. "The dopamine system does not have satiety built into it," Berridge explains. "And under certain conditions it can lead us to irrational wants, excessive wants we'd be better off without." So we find ourselves letting one Google search lead to another, while often feeling the information is not vital and knowing we should stop. "As long as you sit there, the consumption renews the appetite," he explains.

Actually all our electronic communication devices—e-mail, Facebook feeds, texts, Twitter—are feeding the same drive as our searches. Since we're restless, easily bored creatures, our gadgets give us in abundance qualities the seeking/wanting system finds particularly exciting. Novelty is one. Panksepp says the dopamine system is activated by finding something unexpected or by the anticipation of something new. If the rewards come unpredictably—as e-mail, texts, updates do—we get even more carried away. No wonder we call it a "CrackBerry."

The system is also activated by particular types of cues that a reward is coming. In order to have the maximum effect, the cues should be small, discrete, specific—like the bell Pavlov rang for his dogs. Panksepp says a way to drive animals into a frenzy is to give them only tiny bits of food: This simultaneously stimulating and unsatisfying tease sends the seeking system into hyperactivity. Berridge says the "ding" announcing a new e-mail or the vibration that signals the arrival of a text message serves as a reward cue for us. And when we respond, we get a little piece of news (Twitter, anyone?), making us want more. These information nuggets may be as uniquely potent for humans as a Froot Loop to a rat. When you give a rat a minuscule dose of sugar, it engenders "a panting appetite," Berridge says—a powerful and not necessarily pleasant state.

If humans are seeking machines, we've now created the perfect machines to allow us to seek endlessly. This perhaps should make us cautious. In Animals in Translation, Temple Grandin writes of driving two indoor cats crazy by flicking a laser pointer around the room. They wouldn't stop stalking and pouncing on this ungraspable dot of light—their dopamine system pumping. She writes that no wild cat would indulge in such useless behavior: "A cat wants to catch the mouse, not chase it in circles forever." She says "mindless chasing" makes an animal less likely to meet its real needs "because it short-circuits intelligent stalking behavior." As we chase after flickering bits of information, it's a salutary warning.

Wednesday, August 26, 2009

climate wars - 3 part radio show canadian broadcast corp.

CBC | About 2 years ago I noticed that the military in various countries, and especially in the Pentagon, were beginning to take climate change seriously. Now, it's the business of the military to find new security threats. It's also in their own self-interest, since they need a constant supply of threats in order to justify their demands on the taxpayers' money, so you should always take the new threats that the soldiers discover with a grain of salt. You know, never ask the barber whether you need a haircut.

But I did start to look into this idea that global warming could lead to wars. It turned into a year-long trek talking to scientists, soldiers and politicians in a dozen different countries. I have come back from that trip seriously worried, and there are four things I learned that I think you ought to know.

The first is that a lot of the scientists who study climate change are in a state of suppressed panic these days. Things seem to be moving much faster than their models predicted.

The second thing is that the military strategists are right. Global warming is going to cause wars, because some countries will suffer a lot more than others. That will make dealing with the global problem of climate change a lot harder.

The third is that we are probably not going to meet the deadlines. The world's countries will probably not cut their greenhouse gas emissions enough, in time, to keep the warming from going past 2 degrees celsius. That is very serious.

And the fourth thing is that it may be possible to cheat on the deadlines. I think we will need a way to cheat, at least for a while, in order to avoid a global disaster.

That's what this series is going to deal with, and we'll be lucky if we get through it all in 3 episodes. But I’m going to start by giving you an example of what that global disaster might look like, and the best way to do that is with a scenario. This is NOT a prediction of what the future will look like, because there are far too many variables and sheer unknowns to predict the world of, say, 2046. It’s just a plausible example of what 2046 could look like if we get it wrong over the next ten or fifteen years. - Gwynne Dyer

a perfect storm of shortages

BBCNews | As the world's population grows, competition for food, water and energy will increase. Food prices will rise, more people will go hungry, and migrants will flee the worst-affected regions.

That's the simple idea at the heart of the warning from John Beddington, the UK government's chief scientific adviser, of a possible crisis in 2030.

Specifically, he points to research indicating that by 2030 "a whole series of events come together":

* The world's population will rise from 6bn to 8bn (33%)
* Demand for food will increase by 50%
* Demand for water will increase by 30%
* Demand for energy will increase by 50%

He foresees each problem combining to create a "perfect storm" in which the whole is bigger, and more serious, than the sum of its parts.

frontrunning and now the "trading huddle"

BusinessInsider | We find it hard to believe that the top hedge funds in the world get a lot of value out of Buy/Sell ideas from analysts, unless they're blatantly telegraphing market-moving reports, in which case that could be trouble.

Still, this timeline looks pretty damning:

Susanne Craig at WSJ takes a deep dive into the practices of Goldman Sachs (GS) stock analysts, and notes that preferred clients get, well, preferred access to ideas and advice.

Here's the nut of it:

Goldman Sachs Group Inc. research analyst Marc Irizarry's published rating on mutual-fund manager Janus Capital Group Inc. was a lackluster "neutral" in early April 2008. But at an internal meeting that month, the analyst told dozens of Goldman's traders the stock was likely to head higher, company documents show.

The next day, research-department employees at Goldman called about 50 favored clients of the big securities firm with the same tip, including hedge-fund companies Citadel Investment Group and SAC Capital Advisors, the documents indicate. Readers of Mr. Irizarry's research didn't find out he was bullish until his written report was issued six days later, after Janus shares had jumped 5.8%.

Every week, Goldman analysts offer stock tips at a gathering the firm calls a "trading huddle." But few of the thousands of clients who receive Goldman's written research reports ever hear about the recommendations.

This story will bring fresh, unwanted attention to the bank, which is reeling from a string of undesirable media stories.

Tuesday, August 25, 2009

friedmanist assault on peak oil theory...,

NYTimes | REMEMBER “peak oil”? It’s the theory that geological scarcity will at some point make it impossible for global petroleum production to avoid falling, heralding the end of the oil age and, potentially, economic catastrophe. Well, just when we thought that the collapse in oil prices since last summer had put an end to such talk, along comes Fatih Birol, the top economist at the International Energy Agency, to insist that we’ll reach the peak moment in 10 years, a decade sooner than most previous predictions (although a few ardent pessimists believe the moment of no return has already come and gone).

Like many Malthusian beliefs, peak oil theory has been promoted by a motivated group of scientists and laymen who base their conclusions on poor analyses of data and misinterpretations of technical material. But because the news media and prominent figures like James Schlesinger, a former secretary of energy, and the oilman T. Boone Pickens have taken peak oil seriously, the public is understandably alarmed.

A careful examination of the facts shows that most arguments about peak oil are based on anecdotal information, vague references and ignorance of how the oil industry goes about finding fields and extracting petroleum. And this has been demonstrated over and over again: the founder of the Association for the Study of Peak Oil first claimed in 1989 that the peak had already been reached, and Mr. Schlesinger argued a decade earlier that production was unlikely to ever go much higher.

goldman's golden goose grab...,

NYTimes | “A geek who writes code — those guys are now the valuable guys,” Mr. Donefer said.

The spate of lawsuits reflects the highly competitive nature of ultrafast trading, which is evolving quickly, largely because of broader changes in stock trading, securities industry experts say.

Until the late 1990s, big investors bought and sold large blocks of shares through securities firms like Morgan Stanley. But in the last decade, the profits from making big trades have vanished, so investment banks have become reluctant to take such risks.

Today, big investors divide large orders into smaller trades and parcel them to many exchanges, where traders compete to make a penny or two a share on each order. Ultrafast trading is an outgrowth of that strategy.

As Mr. Aleynikov and other programmers have discovered, investment banks do not take kindly to their leaving, especially if the banks believe that the programmers are taking code — the engine that drives trading — on their way out.

This spring, Mr. Aleynikov quit Goldman to join Teza Technologies, a new trading firm, tripling his salary to about $1.2 million, according to the complaint. He left Goldman on June 5. In the days before he left, he transferred code to a server in Germany that offers free data hosting.

At Mr. Aleynikov’s bail hearing, Joseph Facciponti, the assistant United States attorney prosecuting the case, said that Goldman discovered the transfer in late June. On July 1, the company told the government about the suspected theft. Two days later, agents arrested Mr. Aleynikov at Newark.

After his arrest, Mr. Aleynikov was taken for interrogation to F.B.I. offices in Manhattan. Mr. Aleynikov waived his rights against self-incrimination, and agreed to allow agents to search his house.

He said that he had inadvertently downloaded a portion of Goldman’s proprietary code while trying to take files of open source software — programs that are not proprietary and can be used freely by anyone. He said he had not used the Goldman code at his new job or distributed it to anyone else, and the criminal complaint offers no evidence that he has.

Why he downloaded the open source software from Goldman, rather than getting it elsewhere, and how he could at the same time have inadvertently downloaded some of the firm’s most confidential software, is not yet clear.

At Mr. Aleynikov’s bail hearing, Mr. Facciponti said that simply by sending the code to the German server, he had badly damaged Goldman.
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The MSM has finally gotten around to narratizing the frontrunning fraud perpetrated by Goldman Sachs. This summer has already shown the issue to complex to be digested by the public at large. So justice, as with political leadership, is reduced to a lowest common denominator in which the people will get precisely what their effort and attention spans lead them to deserve.

the "fantastical and absurd" report...,

FinancialSense | Perhaps you've heard or read about the Maltese-flagged freighter named Arctic Sea, which recently disappeared in the Atlantic Ocean and was subsequently recovered after various contradictory reports. According to Filin, the Arctic Sea had been loaded with four X-55 cruise missiles while docked at the Baltic Sea port of Kaliningrad. The missiles were without warheads, as the warheads were shipped separately on another vessel . Filin alleges that the warheads were customized for carrying Soviet-produced biochemical material previously "shipped to Iran from Russia by air."

According to Filin, the contraband aboard the Arctic Sea was masked by timber loaded in Finland, and the ship's destination was Algeria, where representatives of the Iranian Revolutionary Guard were waiting to take delivery. Filin wrote: "Russian specialists would arrive in Iran within the near future, who would prepare the aviation system of Iranian Su-24 aircraft to use the X-55 in combat conditions and train representatives of the Iranian armed forces in the operational use of the system." The reason for the transfer of biochemical material to Iran, along with modified warheads and missiles, is to give Iran a counterstrike potential in the event of an Israeli strike against Iran's nuclear weapons facilities.

In this way Russia strengthens Iran while weakening the position of Israel and the United States. It goes without saying that Moscow envisions the destabilization of the Middle East and the disruption of its main centers of oil production and shipping. Should Iran unleash biochemical warheads against Israel, there would be a further escalation of violence with the result that oil prices would reach -- according to Filin -- $200-$300 per barrell. The consequences, of course, would be devastating for the oil-dependent Western economies, which are already suffering from widespread financial troubles.

On the Russian side, however, high oil prices would empower the Russian state while stabilizing the Iranian clerical regime under a defiant nationalist banner. Moscow also envisions the closing of the Strait of Hormuz, a massive mobilization of terrorists, and a fresh violence in Iraq. According to Filin, "Upon learning of the Arctic Sea and its cargo, a major Western state that favors a strategic partnership with Ukraine, was prepared to intercept the ship. But fearing this would cause a serious international scandal that would disrupt the 'reboot' of its relations with the Putin regime, the [aforesaid] state decided to act informally, which it did."

In other words, the pirates that siezed the Arctic Sea off the coast of Sweden were American special forces (disguised as Swedish police). This embarrassing episode, according to Filin, enraged the Kremlin which subsequently lashed out at the pro-American regime in Ukraine. For reasons unstated by Filin, the Kremlin believes that Ukraine was responsible for alerting the Americans about the Arctic Sea and its cargo. Consequently, Russian President Medvedev wrote a scathing open letter to Ukrainian President Yuschenko, calling his policies "deliberately anti-Russian." This resulted in heightened tensions between Russia and Ukraine.

Master Arbitrageur Nancy Pelosi Is At It Again....,

🇺🇸TUCKER: HOW DID NANCY PELOSI GET SO RICH? Tucker: "I have no clue at all how Nancy Pelosi is just so rich or how her stock picks ar...