20131130

Inside a Bitcoin Mining Operation in Hong Kong

Inside a Bitcoin Mining Operation in Hong Kong

Bitcoin, everyone’s favourite decentralised, peer-to-peer digital cryptocurrency, is making headlines around the world.



Entrepreneur and journalist Xiaogang Cao posted pictures of a new HK-based mining operation being set up in an Kwai Chung industrial building…



Bitcoins are generated by ‘miners’ who devote computing power to solving mathematical puzzles. Whilst users could once mine bitcoins at home, setting up a mining operation nowadays involves a lot more infrastructure…

As more bitcoins come into circulation, the puzzles involved become increasingly difficult. The rewards are halved at regular intervals until 21 million bitcoins have been created – at which point, production will cease.




Over the coming years, even when accounting for Moore’s law, mining will only require more resources to be worthwhile… Though some governments are hesitant about the world’s first cryptocurrency, entrepreneurs are hoping Hong Kong will jump on the bandwagon.



HK’s new bitcoin farm involves one meter high transparent glass tanks, copper piping, cooling machines and computer boards soaked in bubbling 3M cooling liquid. LED lights flash constantly, though the facility is cool, safe and quiet.



Construction began in August, 2013. A crane was used to install cooling systems onto the roof . The cooling technique is one of the world’s most advanced, maintaining temperatures of below 37 degrees.



In a race against time, bitcoin mining began in October. And with an eye on the future, there is extra capacity built into the site…



The company behind the operation is Asicminer, who own multiple mining facilities. Cao said the facility was ‘quieter than a library’



Earlier this month, it was reported that a HK-based Bitcoin trading platform disappeared, taking with it up to US$5million worth of investment. One study showed that 45 percent of Bitcoin exchanges end up closing



Hong Kong could become a hub for Bitcoin use and mining. Hong Wrong’s Tony Wong said that the city has an edge due to ‘sound property rights, cheap electricity, widely available technology and service technicians’.

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Xiaogang Cao invites readers to donate to his crowdfunded charitable project (Chinese).



One bitcoin was worth around US$858 at the time of writing.
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20131129

Government Chemist Tampered With 40,000 Cases, Locking Countless Innocent Americans in Prison


Government Chemist Tampered With 40,000 Cases, Locking Countless Innocent Americans in Prison

Dookhan_Drug_Suspensions

In a maddening scandal that is rocking the state of Massachusetts, a government crime lab chemist has been caught intentionally forging signatures and tampering with evidence in as many as 40,000 cases, destroying the lives of countless innocent Americans.

Annie Dookhan worked as a chemist for the State of Massachusetts, and it turns out she had close relations with prosecutors.

These prosecutors were able to successfully convict innocent Americans because Dookhan would chemically taint the “evidence,” resulting in career boosts for the prosecutors while innocent men and women were torn from their families and locked in cells.

Prosecutors praised Dookhan’s work and depended on her to get the convictions they wanted.

Hundreds of “convicts” and defendents have already been released, and there are potentially thousands more waiting to be set free.

Norfolk County District Attorney Michael Morrissey is reviewing thousands of files to determine which cases must be thrown out or retried because of potentially tainted evidence. | Source: Tovia Smith/NPR
Norfolk County District Attorney Michael Morrissey is reviewing thousands of files to determine which cases must be thrown out or retried because of potentially tainted evidence. | Source: Tovia Smith/NPR

Dookhan used her position to forge results for nearly a decade.  ”I don’t think anyone ever perceived that one person was capable of causing this much chaos,” says Norfolk County District Attorney Michael Morrissey.

“You can see the entire walls full of boxes… in one of these cardboard boxes, there could be hundreds of cases … in each box,” says Morrissey.

Hundreds of defendants and “convicts” had been arguing that they were framed and claiming that the evidence used to convict them was mishandled. They were right.

In one recent case, a man was charged with “selling cocaine and heroin.”  His public defender, Julieann Hernon, believes that this man was a potential victim of Dookhan’s fake evidence and ought to be released.

“[Dookhan] was mis-testing evidence, dry-labbing evidence, saying she had ‘conducted tests’ when she had not, deliberately tainting drugs,” Hernon said.

“Certainly, I think, we have to presume a taint here when Annie Dookhan was the chemist in the case,” Hernon says.

In another recent case, defense attorney William Sullivan was able to successfully reverse his client’s prior “guilt” because Dookhan was the secondary chemist involved in the conviction.

Man in prison
Many other innocents have lost their careers, lost their children, and lost their marriages.

“This is a lab that was pretty much wholly and fully contaminated by Ms. Annie Dookhan,” Sullivan told the judge. “She had full access to everyone’s drugs.”

While many have been set free, they will never get the lost years of their lives back.

“The tragedy is that my client already did four years on this,” Sullivan says. “I mean, that is disturbing in itself.”

Many other innocents have lost their careers, lost their children, and lost their marriages.

Michael Morrissey, Norfolk County District Attorney, is now sifting through thousands of files to find out which should be thrown out because of Dookhan’s corruption and deceit.

In federal court, many innocents received even harsher sentences due to prior convictions based on Annie Dookhan’s fake “evidence.”

Several civil suits are getting started by those accused of crimes based on Dookhan’s tampering, accusing Dookhan of trampling on their rights to fair trials.

“I screwed up big time. I messed up. I messed up bad. It’s my fault. I don’t want the lab to get in trouble,” Dookhan was reported as saying.

Of course, Dookhan’s “screw up” — a “screw up” that she intentionally committed for nearly a decade — will never bring back the lives that have been destroyed.

In analyzing Dookhan’s career, it was found that she also routinely invented fanciful job titles for herself. Examples include “special agent of operations” and “on-call terrorism super­visor.” She would testify in court as an “expert.”

She maintained her composure year after year as innocents were bound and forced into prison cages.

The relationships she had with prosecutors are also under scrutiny.  Dookhan once told a prosecutor in an email that she couldn’t use her expert testimony at a trial. The prosecutor replied, “No no no!!! I need you!!!”

Was the prosecutor intentionally depending on Dookhan’s deception to score a conviction and a career boost?

Related: Number of US Prisoners Now Exceeds High School Teachers and Engineers

Many of the prosecutors became devoted fans of Dookhan and wanted to take her out for drinks, saying she was on their “dream team.”  The Boston Globe provided an email between Dookhan and a prosecutor with whom she had a particularly friendly relationship:

“Glad we are on the same team,” he once wrote Dookhan — including one day in May 2010 when he told her he needed a marijuana sample to weigh at least 50 pounds so that he could charge the owners with drug trafficking.

“Any help would be greatly appreciated!” he wrote, punctuating each sentence with a long string of exclamation points. “Thank you!”
Two hours later, Dookhan responded: “OK . . . definitely Trafficking, over 80 lbs.” ­Papachristos thanked her profusely.

Boston attorney David Meier found that in Dookhan’s nine-year government position, over 40,ooo people may have had their cases tainted by Dookhan.
But the devastation done to families is impossible to calculate.

Dookhan is now facing charges of her own.  If she is convicted she will receive a relatively light sentence of three to five years, which has outraged citizens even more.

20131125

Nuclear deal with Iran a 'historic mistake', Benjamin Netanyahu says

Nuclear deal with Iran a 'historic mistake', Benjamin Netanyahu says

Israel's political establishment arose in unison on Sunday to denounce as inadequate an interim agreement hammered out with Iran to rein in its nuclear programme.

Benjamin Netanyahu, the Israeli prime minister, led the chorus of indignation, calling the deal struck in Geneva between Iran and the so-called P5 plus one – the US, Britain, France, Russia, China and Germany – "a historic mistake".

"What was achieved last night in Geneva is not a historic agreement; it is a historic mistake," he told Sunday's weekly cabinet meeting "Today the world has become a much more dangerous place because the most dangerous regime in the world has taken a significant step toward attaining the most dangerous weapon in the world.

Condemning the six powers for "ignoring the UN Security Council decisions that they themselves led", he added: "This agreement and what it means endanger many countries including, of course, Israel. Israel is not bound by this agreement. The Iranian regime is committed to the destruction of Israel and Israel has the right and the obligation to defend itself, by itself, against any threat.

Mr Netanyahu's comments came after a procession of ministers and senior officials had earlier taken aim at a "bad deal" which they said effectively left Iran as a nuclear threshold state.

In the most graphic criticism, Naftali Bennett, the trade and industry minister and leader of the far-Right Jewish Home party, warned that it could be the precursor to a nuclear "suitcase bomb" attack on a major Western city.

"If in another five years a suitcase nuke explodes in New York or Madrid, it will be because of the deal that was signed this morning," Mr Bennett, a member of the Israeli security cabinet, told Army Radio.

20131119

The Navy’s newest warship is powered by Linux

The Navy’s newest warship is powered by Linux



The USS Zumwalt getting a coat of paint at Bath Iron Works. The ship is exotic in many ways, but it runs on off-the-shelf computing technology.
General Dynamics Bath Iron Works
When the USS Zumwalt (DDG 1000) puts to sea later this year, it will be different from any other ship in the Navy's fleet in many ways. The $3.5 billon ship is designed for stealth, survivability, and firepower, and it's packed with advanced technology. And at the heart of its operations is a virtual data center powered by off-the-shelf server hardware, various flavors of Linux, and over 6 million lines of software code.

On October 10, I flew up to Rhode Island to visit Raytheon's Seapower Capability Center in Portsmouth, where engineers assembled and pre-tested the systems at the heart of the Zumwalt and are preparing to do the same for the next ship in line, the USS Michael Monsoor—already well into construction. There, Raytheon's DDG-1000 team gave me a tour of the centerpiece of the ship's systems—a mockup of the Zumwalt's operations center, where the ship's commanding officer and crew will control the ship's sensors, missile launchers, guns, and other systems.

Over 20 years ago, I learned how to be a ship watch stander a few miles from the Raytheon facility at the Navy's Surface Warfare Officer School. But the operations center of the Zumwalt will have more in common with the fictional starship USS Enterprise's bridge than it does with the combat information centers of the ships I went to sea on. Every console on the Zumwalt will be equipped with touch screens and software capable of taking on the needs of any operator on duty, and big screens on the forward bulkhead will display tactical plots of sea, air, and land.

Perhaps it's appropriate that the first commanding officer of the Zumwalt will be Captain James Kirk (yes, that's actually his name). But considering how heavily the ship leans on its computer networks, maybe they should look for a chief engineer named Vint Cerf.

Off the shelf and on the ship




Enlarge / Data center in a box: Electronic Modular Enclosures being configured at Raytheon's Portsmouth, Rhode Island, facility.
In the past, you couldn't just put off-the-shelf computer systems aboard a ship for mission critical tasks—when I was aboard the USS Iowa, we had to shut down non-tactical systems before the guns were fired because the shock and vibration would crash systems hard. So typically, individual computer systems are ruggedized. But that adds heavily to the cost of the systems and makes it more difficult to maintain them.

The design of the Zumwalt solves that problem by using off-the-shelf hardware—mostly IBM blade servers running Red Hat Linux—and putting it in a ruggedized server room. Those ruggedized server rooms are called Electronic Modular Enclosures (EMEs), sixteen self-contained, mini data centers built by Raytheon.

Measuring 35 feet long, 8 feet high, and 12 feet wide, the 16 EMEs have more than 235 equipment cabinets (racks) in total. The EMEs were all configured and pre-tested before being shipped to Bath, Maine, to be installed aboard the Zumwalt. The EME approach lowered overall cost of the hardware itself, and allows Raytheon to pre-integrate systems before they're installed. "It costs a lot to do the work in the shipyard," said Raytheon's DDG-1000 deputy program manager Tom Moore, "and we get limited time of access."

Each EME has its own shock and vibration damping, power protection, water cooling systems, and electromagnetic shielding to prevent interference from the ship's radar and other big radio frequency emitters.

The EMEs tap into the Total Ship Computing Environment, the Zumwalt's shipboard Internet. Running multiple partitioned networks over a mix of fiber and copper, TSCE's redundantly switched network system connects all of the ship's systems—internal and external communications, weapons, engineering, sensors, etc.—over Internet protocols, including TCP and UDP. Almost all of the ship's internal communications are based on Voice Over IP (with the exception of a few old-school, sound-powered phones for emergency use).




Enlarge / A diagram of the Zumwalt's control systems and their connections to the Total Ship Computing Environment.
There's also some wireless networking capability aboard the Zumwalt, but Raytheon officials giving me the tour were not at liberty to discuss just what sort of wireless this is. Still, that capability is supposed to allow for roving crew members to connect to data from the network while performing maintenance and other tasks.

Systems that weren't built to be wired into an IP network—other "programs of record" within the ship, which are installed across multiple classes of Navy ships—are wired in using adaptors based on single-board computers and the Lynx OS real-time Linux operating system. Called Distributed Adaptation Processors, or DAPs, these systems connect things like the ship's engineering systems, fire suppression systems, missile launchers, and radio and satellite communications gear into the network so they can be controlled by networked clients.

It looks like you want to launch a missile




Enlarge / The mock-up of the Zumwalt's operations center at Raytheon's Portsmouth facility, complete with haze-gray paint, has the exact dimensions of the space on the ship itself. The Zumwalt will include a second level to host the operations of units deployed with the ship.
Some of those networked clients were what I was looking at in the mocked-up Zumwalt operations center. The operations center isn't just where screens are watched and commands are shouted—the whole ship can be practically run from the space, from guns and missiles to engines. There's no "radio room" on the Zumwalt; all the communications are managed from the operations center. The ship's guns are fully automated and operated by an operations center watch stander instead of a gunner's mate in the mount. Theoretically, the ship could even be steered from the ops center—the ship is piloted by computer, not a helmsman. And all of these tasks are performed from the same type of console.




Enlarge / The Mark 57 vertical launch system, developed by Raytheon, can carry a mix of anti-ship, anti-aircraft, and land attack cruise missiles. It communicates with the operations center over the ship's network.
Called the Common Display System, or CDS (pronounced as "keds" by those who work with it), the three-screen workstations in the operations center are powered by a collection of quad-processor Intel motherboards in an armored case, which gives new meaning to the nautical phrase "toe buster." Even the commanding officer's and executive officer's chairs on the bridge have CDS workstations built-in. Each CDS system can run multiple Linux virtual machines atop LynuxWorx's LynxSecure, a separation kernel tthat has been implemented in CDS as a hypervisor. This allows the workstation to connect to various networks partitioned by security level and purpose. "Every watch stander station runs out of the same box," Raytheon's DDG-1000 developer lead Robert Froncillo told me. "So they can sit at any CDS and bring up their station."

This may not seem like a big deal to most people. But on past ships, workstations tended to be purpose-built for a specific weapons system or sensor. That meant every system had a different configuration and interface, and you couldn't have a watch stander handle multiple tasks without having to switch seats. The CDS workstation uses common USB interfaces for its peripheral devices (such as trackballs and specialized button panels) and is equipped with touchscreens, as well, so that watch standers have a choice between "classic" and touch interfaces.

That doesn't mean there's necessarily a "Clippy" to help new operators master their systems. The Raytheon team has had sailors in to perform usability assessments from before code was even written, showing them screen shots of interfaces to get feedback from users. "We had a chief that said, 'We don't want any 'wizards,'" said Froncillo.




A digital illustration of how the Zumwalt's operations center will look, complete with its second-level suite for hosting operations for air detachments and other units deployed aboard.
Raytheon
Putting all of the pieces together is a collection of middleware running on those IBM blade servers. Many of the shipboard systems use a commercial publish/subscribe middleware platform to send updates to operator consoles. But for other systems that need to be more tightly coupled (like, for example, missile launch commands), the Navy has specified the use of the Common Object Request Broker Architecture (CORBA)—the military's favorite mission-critical middleware model. (The software for the Joint Tactical Radio System's software-defined radios was also developed using CORBA.)

The next release




Enlarge / The Zumwalt bow-on at Bath Iron Works. DDG-1001, the USS Michael Monsoor, sits behind her, more than 60 percent complete.
The Zumwalt may not have sailed yet, but its software has already shipped six times. When Release 5 was completed, Raytheon brought in more sailors to test the system, tethering it to the company's Total Ship System Simulator to run through a number of combat scenarios. "We did antisubmarine warfare, air, and land attack missions," Froncillo said. The lessons learned were incorporated into release 6, and 7 will be installed on the ship before the ship's "shakedown" cruise. Another upgrade will be installed post-delivery, and continual improvements will be made as the software is deployed to the other two ships in the class.

But the life of the technology being deployed on the Zumwalt won't end there. CDS will be used as part of the Navy's Aegis Modernization Program to upgrade the systems of the fleet's guided missile cruisers and destroyers. "And there are a lot of things we're developing that will be reused," Moore said.

Considering how much has been spent over the past decade trying to get the Zumwalt built, and the other technologies that were developed in the process, one can hope that more than just the software gets some reuse.

20131118

Stone-tipped spears predate existence of humans by 85,000 years


Stone-tipped spears predate existence of humans by 85,000 years


Remains of the world’s oldest known stone-tipped throwing spears, described in a new paper, and so ancient that they actually predate the earliest known fossils for our species by 85,000 years.

There are a few possible implications, and both are mind-blowing. The first is that our species could be much older than previously thought, which would forever change the existing human family tree.

The second, and more likely at this point, is that a predecessor species to ours was extremely crafty and clever, making sophisticated tools long before Homo sapiens emerged.

Homo heidelbergensis, aka Heidelberg Man, lived in Africa, Europe and western Asia from at least 600,000 years ago. He clearly got around, and many think this species was the direct ancestor ofHomo sapiens in Africa and Neanderthals in Europe and Asia.

The new paper, published in the latest PLoS ONE, focuses on the newly identified stone-tipped spears, which date to 280,000 years ago. They were found at an Ethiopian Stone Age site known as Gademotta.

Sahle, a postdoctoral researcher at the University of California at Berkeley’s Human Evolution Research Center, and his team analyzed the weapons. They determined that the spears were made from obsidian found near the site. The toolmakers had to craft the pointy spearhead shapes and spear shafts. They then needed to attach the points securely to the shafts. Even today, all of this would require skill, concentration and multiple steps.

Could a Steve Jobs-like innovator within the Heidelberg Man set have come up with this useful tool and production process?

Possibly, according to Sahle.

“Technological advances were not necessarily associated with anatomical changes (among Homo species),” he said. “The advances might have started earlier.”

The intelligence needed to create such tools could therefore have predated our present body type. Based on the recreations I’ve seen of Heidelberg Man (and Heidelberg Woman), they did look very much like us. They were known to have been fairly tall and muscular.

As for why innovative tools from this period are known only from this site in Ethiopia, Sahle has some ideas.

“High-quality raw materials were nearby, so those could have allowed for the full expression of technological skills,” he said.

“Second, a bigger population was supported at the site,” he continued. With more individuals around, there would have been a greater chance for the spread of innovative ideas. If there was indeed a Steve Jobs-type in the mix, he would have been able to influence more individuals and perhaps even created a prehistoric spear-making assembly line of sorts.

“Thirdly, there was a mega lake at the site,” Sahle said. “It might have attracted stable occupations there, further fueling technological advances.”

It’s not clear yet what the prehistoric ancestral humans were hunting with the spears. A mishmash of animal remains was found, but the researchers haven’t been able to tease them apart yet.

What is clear is that the spears were thrown from a distance at prey, instead of thrust into victims, Neanderthal-style.

20131117

Swiss outrage over executive pay sparks a movement in Europe

Swiss outrage over executive pay sparks a movement in Europe


Here’s an idea for how to end corporate greed and reverse the trend of growing income inequality worldwide: impose a new rule that would limit the pay of top executives to just 12 times that of the lowest-paid employees at the same firm. In other words, prevent CEOs from earning more in one month than the lowliest shop-floor worker earns in a year.

This proposal might sound like something cooked up by Occupy Wall Street or another radical protest movement, but in fact it comes from the heartland of a nation not usually known for its disdain of money-making: Switzerland. On Nov. 24, the Swiss will vote in a referendum on whether to enshrine the 1:12 pay ratio — in their national constitution, no less.

The initiative is backed by an assortment of mainstream political groups, including the Social Democratic Party and the Greens, who argue that CEO pay in Switzerland has gotten out of control and needs to be reined in. They quote a raft of figures to show that the ratio of top to bottom earners in Swiss firms has grown from about 1 to 6 in 1984, to 1 to 43 today. And that’s just the average. In some companies, especially banks, the gap is much wider, with top executives such as Brady Dougan, the American CEO of Credit Suisse, and Andrea Orcel, head of investment banking at UBS, earning hundreds of times as much as their juniors.

The campaign’s backers consider salary inequality to be a social injustice. A video cartoon made by the Social Democrats features a Swiss nurse who is astounded by the way top manager salaries have grown to “astronomical” proportions, even as hers has barely increased. Regula Rytz, a co-head of the Greens, says that a constitutional amendment is necessary because neither the government nor business has “a recipe against the self-service mentality in corporate suites.”

Swiss business, meanwhile, has made a so-far successful effort to sway public opinion. A month ago, public opinion for and against the initiative was split at about 44 percent. Swiss business launched a public relations campaign, warning that the measure would spark an exodus of corporations. Employers’ associations commissioned studies that predicted lost jobs and higher taxes if the measure is passed. The latest polls this week suggest that the measure is unlikely to be approved, with just over 50 percent opposing it.

Even so, the issue isn’t likely to go away, and is gaining traction beyond Switzerland. Kristina Schüpbach, leader of the youth wing of the Social Democrats and one of the campaign initiators, says that “the main thing this time is to get a result that sends a strong signal” — to business and government. Significantly, the 1:12 campaign has made inroads in Spain, where the opposition Social Democrats have just adopted it as official policy. Schüpbach says the idea of setting a ceiling on pay ratios is also being discussed within the opposition Social Democratic Party in Germany. And more broadly, the issue of executive pay has become a red-hot political topic in France and elsewhere on the continent.

Bruce Kogut, director of the Sanford C. Bernstein Center for Leadership and Ethics at Columbia Business School, says the issue resonates in Europe “because people care more about equity” than they do in the U.S. But he also sees salary caps as a reaction to the pain of the financial crisis. “There have not been major consequences. Collective expiation of guilt and responsibility is lacking,” Kogut says.

Switzerland, with its history of Calvinism and the Protestant work ethic, is particularly fertile ground for this issue. The nation has lived through a series of corporate calamities in the past decade, including the collapse of Swissair in 2001 after it racked up an unmanageable level of debt. One of the most shocking blows to many Swiss was the state rescue of UBS in 2008, after the bank incurred giant losses from its foray into American mortgage-backed securities and other derivatives.

Huge payouts to executives at struggling companies have added fuel to the flames. The referendum campaigners point out that last year, UBS paid out a total of 2.5 billion Swiss francs in bonuses, at the same time as it reported a 2.5 billion franc loss. Pro-reform activists have calculated that it would take an ordinary bank employee as much as 385 years to earn the 18.5 million franc ($20 million) compensation package given to Orcel, the investment bank head, when he joined UBS from Merrill Lynch last year. (UBS has defended the package, claiming that it compensates Orcel for a loss of deferred pay when he left Merrill Lynch. The total bonus pool, the bank says, was paid out to a range of employees and not just top management.)

Orcel was already at UBS last March, when in a previous referendum, the Swiss approved an initiative that gives shareholders of listed Swiss companies a binding say in the compensation paid to their directors. It also sharply curtailed “golden handshakes” and other special bonuses.

Still, imposing caps on pay ratios turns out to be quite a bit harder than it sounds. Coming up with reliable statistics is a particular challenge. Publicly-traded companies in America and in many European countries are required to disclose the salaries and benefits paid to their CEO and other top executives. But obtaining data for the lowest-paid workers is much harder. Some Swiss opponents of the referendum question the accuracy of the figures issued by the campaign initiators.

The U.S. is an example of how difficult and politically fraught such an exercise can be. Three years ago, under section 953(b) of the Dodd-Frank Act, Congress ordered public companies to disclose the ratio of CEO pay to the annual median compensation of employees. So far, however, this stipulation has not been enforced, and the HR Policy Association’s Center on Executive Compensation, for one, believes the enforcement is “not worth the cost” to companies.

Supporters of income equality would argue that in the United States, even more so than Switzerland, such an investment is worthwhile. The Economic Policy Institute calculates that the CEO-to-worker compensation ratio in the top 350 largest U.S. firms is 231:1, including realized stock options. That’s more than five times the gap in Switzerland. According to the institute, CEO compensation grew by more than 725 percent between 1978 and 2011, at a time when the annual compensation of a typical private-sector worker grew by just 5.7 percent.

In both the U.S. and Switzerland, the public debate over pay ratios is just getting started. Schüpbach, the organizer of the Swiss initiative, says that even if the referendum doesn’t produce a majority vote in favor of the measure on majority on Nov. 24, the campaign will continue. “There’ll be a second, third or fourth attempt,” she says.

It remains to be seen whether even these renewed efforts will put a brake on runaway executive pay. But at the least, they put business on the defensive to justify huge packages.

20131116

Janet Yellen On The Financial Crisis: "I Didn’t See Any Of That Coming Until It Happened"

Janet Yellen On The Financial Crisis: "I Didn’t See Any Of That Coming Until It Happened"

Ms. Yellen told the Financial Crisis Inquiry Commission in 2010 that she and other San Francisco Fed officials pressed Washington for new guidance, sharing the problems they were seeing. But Ms. Yellen did not raise those concerns publicly, and she said that she had not explored the San Francisco Fed’s ability to act unilaterally, taking the view that it had to do what Washington said.

“For my own part,” Ms. Yellen said, “I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.” Her startled interviewers noted that almost none of the officials who testified had offered a similar acknowledgment of an almost universal failure.

20131115

Pope Francis: corrupt should be tied to a rock and thrown into the sea

Pope Francis: corrupt should be tied to a rock and thrown into the sea

Pope Francis has delivered a fiery sermon against corruption, quoting a passage from the Bible in which Jesus said some sinners deserve to be tied to a rock and thrown into the sea.

In one of his strongest-worded homilies since he was elected in March, the Argentinean pontiff said Christians who lead “a double life” by giving money to the Church while stealing from the state are sinners who deserve to be punished.

Quoting from the Gospel of St Luke in the New Testament, he said “Jesus says: It would be better for him if a millstone were put around his neck and he be thrown into the sea.”

While he did not allude directly to corruption within the Catholic Church, his remarks come just days after a scandal erupted inside an ancient religious order linked to the Vatican, and as he forges ahead with a determined effort to root out cronyism within the Holy See and financial irregularities in the scandal-tainted Vatican bank.

The Pope described people engaged in corruption as “whitewashed tombs”, explaining that “they appear beautiful from the outside, but inside they are full of dead bones and putrefaction.” A life based on corruption is “varnished putrefaction”, the Pope said.

The Jesuit Pope may have been hailed for adopting a softer, more inclusive stance on sensitive subjects such as homosexuality and divorce since his election in March, but his sermons and homilies often include stern, fire-and-brimstone language and references to the Devil.

Pope Francis made the remarks during his daily morning Mass inside Casa Santa Marta, the Vatican guesthouse which he has chosen to live in after spurning the much grander apostolic apartments on the other side of St Peter’s Basilica.

It was the second time in just a few days that he had targeted the evils of corruption.

On Friday he had strong words for Catholics who grow wealthy from graft and use tainted money to shower their children with gifts and send them to expensive schools.

“Those who take kickbacks have lost their dignity and give their children dirty bread”, he said.

Corruption was as much of an addiction as taking drugs — “We might start with a small bribe, but it’s like a drug,” he said.

He prayed “that the Lord may change the hearts of those who worship the kickback god”.

The most recent scandal to hit the Catholic Church was exposed last week, when the head of a 440-year-old religious order was arrested on suspicion of bringing trumped-up charges against rivals in a bid to be re-elected.

Renato Salvatore, 58, was allegedly so desperate to be re-elected Superior General of the Camillians, also known as the Order of Ministers to the Sick, that he invented false charges against two rival priests who were opposed to his nomination.

The unfounded charges resulted in the two priests, Rosario Messina and Antonio Puca, being hauled off to a police station in Rome, with the result that they were unable to cast their votes against Father Salvatore at a general assembly of the order, which was founded in 1582 and recognised by Pope Sixtus V in 1586.

Members of the order wear black cassocks emblazoned with red Crusader-style crosses — the origins of the Red Cross symbol.

Father Salvatore was chosen by Pope Benedict XVI to participate in a general synod of bishops in October last year, five months before the German pontiff decided to resign from the papacy.

20131111

White guy wins after leading voters to believe he’s black


White guy wins after leading voters to believe he’s black

Dave Wilson chuckles as he talks about his unorthodox political campaign.

"I'd always said it was a long shot," Wilson says. "No, I didn't expect to win."
Still, he figured he'd have fun running, because he was fed up with what he called "all the shenanigans" at the Houston Community College System. As a conservative white Republican running in a district whose voters are overwhelmingly black Democrats, the odds seemed overwhelmingly against him.

Then he came up with an idea, an advertising strategy that his opponent found "disgusting." If a white guy didn't have a chance in a mostly African-American district, Wilson would lead voters to think he's black.

And it apparently worked. In one of the biggest political upsets in Houston politics this election season, Wilson -- an anti-gay activist and former fringe candidate for mayor -- emerged as the surprise winner over 24-year incumbent Bruce Austin. His razor thin margin of victory, only 26 votes, was almost certainly influenced by his racially tinged campaign.

"Every time a politician talks, he's out there deceiving voters," he says.
Wilson, a gleeful political troublemaker, printed direct mail pieces strongly implying that he's black. His fliers were decorated with photographs of smiling African-American faces -- which he readily admits he just lifted off websites -- and captioned with the words "Please vote for our friend and neighbor Dave Wilson."

One of his mailers said he was "Endorsed by Ron Wilson," which longtime Houston voters might easily interpret as a statement of support from a former state representative of the same name who's also African-American. Fine print beneath the headline says "Ron Wilson and Dave Wilson are cousins," a reference to one of Wilson's relatives living in Iowa.

"He's a nice cousin," Wilson says, suppressing a laugh. "We played baseball in high school together. And he's endorsed me."

Austin tried to answer the mailer with his own fliers showing Wilson's face, calling him a "right-wing hate monger" and saying he "advocated bringing back chain gangs to clean highways." But the campaign clearly caught him off guard.

"I don't think it's good," he said. "I don't think it's good for both democracy and the whole concept of fair play. But that was not his intent, apparently."
Just how much a role Wilson's mailers played in the campaign is unclear. Other incumbents running for re-election were forced into runoffs, perhaps because the community college system has come under intense criticism for insider business deals and spending money on overseas initiatives. And after 24 years in office, Austin's name should have been somewhat familiar to his constituents.

"I suspect it's more than just race," says Bob Stein, the Rice University political scientist and KHOU analyst. "The Houston Community College was under some criticism for bad performance. And others on the board also had very serious challenges."

Austin has said he plans to ask for a recount. But in an era of electronic voting, political analysts said Wilson's victory will probably hold and send him into office for a six-year term.

20131110

A Closer Look At Bank Bail-Ins And The Black Hole Of Our System

A Closer Look At Bank Bail-Ins And The Black Hole Of Our System
 
YOU THINK IT CAN'T HAPPEN HERE! Take your head out of the sand!


The bank bail-in rumble is growing louder. After the events in Cyprus, a small country and potentially meaningless in the eyes of most people, it seems that bail-in idea has spread like a virus across the Western world.

Only in the last week, we saw the following developments:

Slovenian parliament has approved bank bail-in rules. (source)

The leader of the Eurogroup Working Group (Thomas Wieser) revealed that the eurozone should introduce bank bail-in rules from 2016, as reported by the German Der Spiegel. (source)

UK based Co-operative Bank announced a bondholder bail-in rescue plan. (source)

All these events come right after the IMF super tax proposal of 10% on savings accounts of households with a positive net worth in Europe (reported on this site) earlier this month.

One could rightfully ask the question why this type of measures are considered in a world which is being flooded with liquidity on a scale that mankind has never seen before (whether one calls it money printing, quantitative easing, easy money, or helicopter money).

20131109

Changing a Bicycle Flat Tire Without Hands




****PLEASE Help Baby Jameson @ www.DontStopLiving.org*****
My name is Hector Picard and I'm a motivational speaker and 3x IRONMAN. Recently I cycled across the USA for a baby's future prosthetic arms - "Hands for Baby Jameson". *HELP* me raise money for Jameson's future prosthetic arms. I promised Jameson's parents I would one day teach him how to change a tire without hands and in his honor I created this video, "Changing a Bicycle Flat Tire Without Hands". Please share and enjoy!
To HELP visit *****www.DontStopLiving.org Thank you!

20131108

And The Latest Firm Under Investigation For Currency Manipulation Is... Goldman

And The Latest Firm Under Investigation For Currency Manipulation Is... Goldman

With JPM having stolen the spotlight for every possible instance of fraud and market manipulation in the past year, it was easy to forget there are other prominent banks that engage in precisely the same deceptive practices as, well, everyone else. One such prominent bank is none other than everyone's old favorite bloodthirsty mollusc, Goldman Sachs, which in a filing reported that "currencies and commodities were added to a list of financial products and related activities that are subject to investigation. The filing also added options trading and technology systems and controls to the list." So, pretty much everything is being investigated.

Bloomberg reports that "Investigators are looking at the firm’s “trading activities and communications in connection with the establishment of benchmark rates,” Goldman Sachs said in the filing. The company "is cooperating with all such regulatory investigations and reviews."

As noted above, Goldman is merely the latest bank to join pretty much everyone else, who is now under investigation.

At least eight banks including Citigroup Inc. (C) and JPMorgan Chase & Co. (JPM) have said they are being investigated by authorities examining the $5.3 trillion-a-day foreign-exchange market and are co-operating. Citigroup, JPMorgan and Barclays Plc (BARC) have suspended or put on leave some of their most senior currency traders amid the inquiry. No one has been accused of wrongdoing.


The U.S. Federal Reserve is examining legal and regulatory exemptions that have allowed banks including Goldman Sachs to trade and own raw materials such as oil, coal and metals, a person with knowledge of the matter said last month.

None of this should be surprising. What should, however, come as a big shock is that while JPM reported it has not had one trading loss either in Q3 or all of 2013 to date, Goldman just announced it lost money on a far more realistic 23% of all trading days, or 15 of 64, in the quarter.

It seems that unlike JPM, Goldman is taking the government's fraud investigations seriously.

20131104

UNH Researcher: Bees Underwent Massive Extinction When Dinosaurs Did


UNH Researcher: Bees Underwent Massive Extinction When Dinosaurs Did

A small carpenter bee. Credit: Sandra Rehan.

For the first time ever, scientists have documented a widespread extinction of bees that occurred 65 million years ago, concurrent with the massive event that wiped out land dinosaurs and many flowering plants. Their findings, published this week in the journal PLOS ONE, could shed light on the current decline in bee species.

Lead author Sandra Rehan, an assistant professor of biological sciences at UNH, worked with colleagues Michael Schwarz at Australia’s Flinders University and Remko Leys at the South Australia Museum to model a mass extinction in bee group Xylocopinae, or carpenter bees, at the end of the Cretaceous and beginning of the Paleogene eras, known as the K-T boundary.

Previous studies have suggested a widespread extinction among flowering plants at the K-T boundary, and it’s long been assumed that the bees who depended upon those plants would have met the same fate. Yet unlike the dinosaurs, “there is a relatively poor fossil record of bees,” says Rehan, making the confirmation of such an extinction difficult.

Rehan and colleagues overcame the lack of fossil evidence for bees with a technique called molecular phylogenetics. Analyzing DNA sequences of four “tribes” of 230 species of carpenter bees from every continent except Antarctica for insight into evolutionary relationships, the researchers began to see patterns consistent with a mass extinction. Combining fossil records with the DNA analysis, the researchers could introduce time into the equation, learning not only how the bees are related but also how old they are.

“The data told us something major was happening in four different groups of bees at the same time,” says Rehan, of UNH’s College of Life Sciences and Agriculture. “And it happened to be the same time as the dinosaurs went extinct.”

While much of Rehan’s work involves behavioral observation of bees native to the northeast of North America, this research taps the computer-heavy bioinformatics side of her research, assembling genomic data to elucidate similarities and differences among the various species over time. Marrying observations from the field with genomic data, she says, paints a fuller picture of these bees’ behaviors over time.

“If you could tell their whole story, maybe people would care more about protecting them,” she says. Indeed, the findings of this study have important implications for today’s concern about the loss in diversity of bees, a pivotal species for agriculture and biodiversity.

“Understanding extinctions and the effects of declines in the past can help us understand the pollinator decline and the global crisis in pollinators today,” Rehan says.

The article, “First evidence for a massive extinction event affecting bees close to the K-T boundary,” was published in the Oct. 23, 2013 edition of PLOS ONE (click to link to the article). Funding for the research was provided by Endeavour Research Fellowships (Rehan) and Australian Research Council Discovery Grants (Schwarz).

The University of New Hampshire, founded in 1866, is a world-class public research university with the feel of a New England liberal arts college. A land, sea, and space-grant university, UNH is the state's flagship public institution, enrolling 12,300 undergraduate and 2,200 graduate students.

Photographs available to download:
http://www.unh.edu/news/releases/2013/10/images/ceratina-6236.jpg
Caption: A small carpenter bee.
Credit: Sandra Rehan

http://www.unh.edu/news/releases/2013/10/images/rehan_beehunt-3942.jpg
Caption: UNH assistant professor of biological sciences Sandra Rehan searching for bees.
Credit: Sandra Rehan