Update no.600

Update from the Heartland

No.600

10.6.13 – 16.6.13

Blog version:  http://heartlandupdate.blogspot.com/

To all,

The follow-up news items:

-- The National Security Agency (NSA), its PRISM surveillance program and the Snowden treason [599] remain active debate topics, as noted in the Comment Section below as well as within our clan.  Our youngest son and I had quite the debate last night [a week ago, Sunday] on this issue.  Boiled down, whether the NSA monitored message content or just recorded the message metadata is a fait accompli; what really matters, the potential for abuse is astronomical.  Whether they read the message . . . they can!  Unless or until we can establish firewalls between the Intelligence Community and the politicos & law enforcement & spec ops operatives, we must have some form of checks & balances in place; carte blanche with the power of these tools is simply not acceptable no matter how valuable they are in the War on Islamic Fascism.

"That's just my opinion, but I could be wrong."

Cheers,

Cap

P.S.: Not surprisingly, the surveillance question is rapidly expanding to virtually all means of modern communications across all borders around the world.  If Snowden’s actions are not treason, then I suppose there is no such thing as treason.  He cannot hide behind some altruistic, the people-must-know nonsense.  There can be no doubt that what he has done is aiding and abetting the enemy during time of war.

-- The federal government announced this week they will take steps to comply with Judge Edward Korman’s order in Tummino v. Hamburg [USDC NY ED no. 12-cv-763 (ERK)(VVP) (2013); 4.April.2013] [595], namely, they intend to approve the Plan B emergency contraceptive for sale to any age person without a prescription.  Unfortunately, in the government’s near infinite bureaucracy, the manufacturer must start the application process again, from the beginning, which means the actual approval process may take another year to achieve.  I suppose on the plus-side, the delay time gives parents another year to prepare their children for that responsibility, to avoid the need for emergency contraceptives as well as its proper use should the need arise.  Regrettably, I doubt many parents will do so, as that is not the socially conservative culture in this Grand Republic.  We prefer ignorance over knowledge when it comes to the sexual education of our children.

Bishop John Shelby Spong led the Episcopal Diocese of Newark for 24 years until his retirement in 2001, and offered a clear, concise explanation of religion, regardless of denomination or practice.  For your consideration, URL: http://www.upworthy.com/best-explanation-of-religion-i-have-ever-heard-and-im-practically-an-atheist?c=upw1

On Thursday, the Supreme Court issued their decision in the case of Association for Molecular Pathology v. Myriad Genetics, Inc. [569 U.S. ___ (2013); no. 12-398].  I have not read the ruling, as yet; however, I wanted to note the unanimous decision against Myriad Genetics, Inc., which “owns” the patent to the BRCA1 gene – the marker for susceptibility to breast cancer.  Angelina Jolie’s decision to undergo a prophylactic, radical, double mastectomy based upon BRCA1 test results – an expensive test she can afford but many others cannot – has highlighted the benefit and application of genetic screening.  As a consequence of the Myriad Genetics ruling, the breast cancer, genetically disposed, screening test is expected to dramatically lower the price, making the critical testing more accessible to other people.  I look forward to reading the decision soon.

News from the economic front:

-- Standard & Poor's maintained its U.S. credit rating at a double-A-plus and raised its prognosis to stable from negative, citing the strengthening U.S. economy and improving cooperation in Congress.  I am not so sure of the latter reason, but then again, it does not take much to improve from dysfunctional.  So far, S&P is the only major credit ratings agency to do so.

-- The Bank of Japan monetary policy board announced their intention to hold the banks’ monetary program steady, buying enough assets to expand Japan’s monetary base at an annual pace of about ¥60T (US$612B), to achieve an inflation target of 2% per annum.  The board noted an increase in exports and industrial production as well as improving “resilience” in private consumption.

-- The Wall Street Journal reported that seven of the largest U.S. banks, including Bank of America, J.P. Morgan Chase and Citigroup, will have an additional two years to comply with the “swaps push-out” rule and spin off some lucrative derivatives trades into separate units.  The banks will now have until 16.July.2015.  I see something quite different in this little news item; this is yet one more reason those damnable, too-big-to fail banks must be broken up to separate the boring banking business from their risky gambling activities.

-- The Wall Street Journal also reported that last year the U.S. posted the biggest increase in oil production in the world and the largest increase in U.S. history.  The increased production comes primarily from newly developed, tight-oil fields such as those in North Dakota.   The surge in fresh crude supplies is helping to restrain global oil prices and advance U.S. foreign-policy goals.

London Inter-Bank Offered Rate (LIBOR) Debacle [552]:

-- The Financial Times [of London] reported that the Monetary Authority of Singapore (MAS) has dramatically expanded the global rate-rigging probe.  They sanctioned 20 international banks after finding that 133 traders attempted to manipulate three different kinds of interest rate and foreign exchange rate benchmarks.  Rather than fine the banks, the MAS ordered banks to leave more money on deposit – at zero interest – with the central bank for one year.  Also, the worst offenders were ordered to increase their reserves by more than S$1B (US$800M), while others were required to increase reserves by S$700-800M.  The usual suspects are among the identified banks.  I have updated the infamous-16 list and added the additional banks to the tracking list below.

-- So we don’t lose focus . . . the infamous 16, involved, international banks are:

• Barclays [UK] – US$454M fine [550]; Singapore sanctions [600]
• Bank of America [U.S.] – Singapore sanctions [600]
• BTMU [Japan] – Singapore sanctions [600]
• Citigroup [U.S.] – Singapore sanctions [600]
• Credit Suisse [Switzerland] – Singapore sanctions [600]
• Deutsche Bank [Germany] – US$654M LIBOR profit [578]; set aside €500M (US$641M) for LIBOR liability [589]; Singapore sanctions [600]
• Lloyds TSB [UK]
• HSBC [UK] – Singapore sanctions [600]
• HBOS [UK]
• JPMorgan Chase [U.S.] – Singapore sanctions [600]
• Norinchuckin [Japan]
• Rabobank [Netherlands]
• RBC [Canada]
• RBS [UK] – £390M (US$612.6M) in fines, 21 employees involved [582]; Singapore sanctions [600]
• UBS [Switzerland] – US$1.5B fine, two charged [575]; Singapore sanctions [600]
• West LB [Germany]

Added to the list by the Monetary Authority of Singapore [600]:

• ING [Netherlands] – Singapore sanctions [600]
• BNP Paribas [France] – Singapore sanctions [600]
• Crédit Agricole [France] – Singapore sanctions [600]
• DBS [Singapore] – Singapore sanctions [600]
• Oversea-Chinese Banking Corporation [Singapore] – Singapore sanctions [600]
• Standard Chartered [UK] – Singapore sanctions [600]
• United Overseas Bank [Singapore] – Singapore sanctions [600]
• Australia and New Zealand Banking Group Ltd. [Australia] – Singapore sanctions [600]
• Macquarie [Australia] – Singapore sanctions [600]
• Commerzbank [Germany] – Singapore sanctions [600]

I trust none of us will lose sight of what these banks have done.

Comments and contributions from Update no.599:

“I like Sen. Warren's ideas on banking. Too big to fail is also too big to manage and too big to regulate.”

From the attachment:

“Look, I’m somebody who believes we really should have boring banking.  That banking should be – the part that’s about savings accounts and checking accounts and our money system – should be separated from the kind of risk-taking that Wall Street traders want to take.  That was originally what the Glass-Steagall Act was about, it was repealed in 1999.  There was an effort to get it into Dodd-Frank in the 2010 bill.  That effort failed.  I think we really do need that kind of separation.  We need to go back to boring banking.  The who want to take risks need to take risks with their own money and do it somewhere else.”

-- Elizabeth Warren.

{NOTE: The Glass-Steagall Act to which she refers is actually the Banking Act of 1933 [PL 73-066; 48 Stat. 162; 16.June.1933]; and Dodd-Frank is actually the Dodd-Frank Wall Street Reform and Consumer Protection Act [PL 111-203; H.R.4173; 124 Stat. 1376; 21.July.2010].}

My reply:

            Spot on, I’d say.  Boring banking indeed!  Precisely my position as well.

Cheers,

Cap

P.S.: The banking system is comprised of public sector as well as commercial for profit enterprises and is an essential element of infrastructure in business and commerce.  Without a strong, stable, reliable and dependable banking system, the process of modern business will break down.  We received a stark wake-up call in 2008.  Dodd-Frank is woefully inadequate, and we still have these damnable, too-big-to-fail banks that have already returned to risky business by gambling with other people’s money along with the integrity of the whole banking system.

Another contribution:

“You are right on with Snowden.  He is clearly a traitor if he has done what he claims (and I believe he has and he is) and I hope we do get him and quickly prosecute him to the fullest extent.  It doesn’t go unnoticed that the last traitor in a similar way, Mr. Wikileaks is STILL awaiting justice.  What takes so long? And meanwhile, where is the deterrent to those who have similar warped judgment.

“You are also right that a bigger question is how to fix the processes that should have caught an 'exception' like Snowden.  Fool me once.... or so the line goes.”

My response:

            I imagine many of these traitors, betrayers, and so-called whistleblowers are driven by some self-obsessed noble purpose, perhaps we could call it the superman complex; they convince themselves the government is wrong no matter what it does and it is their duty to expose the wrong-do’ers in the nasty government.

            Intellectually, the question of whether a traitor’s actions are noble whistle-blowing or treason depends on public reaction.  So far, I would say Snowden is not faring so well.  Independent of Snowden’s actions, the challenge for citizens with trusted access is how to handle situations where they believe the government is wrong, e.g., Daniel Ellsberg.  It is quite a conundrum.

            I’m fairly certain there will be a comprehensive examination of need-to-know access.  I still can’t imagine how a computer contractor got access to SCI like PRISM.

A different contribution:

“Holy cow-- I didn't even notice the 'skin pigments' in the Cheerios ad.  BTW, Cheerios should have a tie-in ad to the new "Lone Ranger" movie coming out.  Cheerios was the long-time radio and TV sponsor of the show when we were kids!”

My reply:

Jan,

            Yeah, I watch that commercial so many times, and I think about those damnable racist comments . . . angers me to no end.  I want to confront those idiots to ask them what the freak they are thinking.  All I see is such a beautiful, little girl in that flood of ugly comments.

            Good point about the “Lone Ranger.”  Makes me want to go buy a whole case of Cheerios.

Another contribution:

“Reference the on-going hoopla regarding the government's electronic surveillance activities, I would like to add a resounding ‘AMEN’ to your sentiment of ‘I am far more concerned about the protection of SCI than I am the government’s surveillance effort’.

“The potential damage that this man has done will never be fully appreciated by the public.”

An interesting query:

“I noted your current Update is no.599.  I am curious what your plan of attack is for your Update 67 weeks from now, on September 22, 2014, when your weekly Update will be no.666?  I find it ironic your Update #666 falls one day prior to the Fall Equinox.

“My job is strategic planning & paranoia.”

My response:

            Well, now, interesting question.  First, no plan as yet.  Second, if I was a superstitious man or a believer in the literal interpretation of the Book of Revelations, I might consider skipping Update no.666, in similar fashion as more than a few tall buildings have no floor numbered 13 [they have a 13th floor; they just don’t call it by that number].  I suppose for those concerned about such things, they should skip reading the Update that week.

Comment to the Blog:

“This comment arrives late. For that and other reasons, it will be brief as well.

“Rather than debate the general intelligence issues again, I'll emphasize another issue you mentioned. When did the government acquire that misplaced confidence in private contractors that allowed Mr. Snowden access to large amounts of sensitive information? Methinks the Ayn Rand nutbars have completed their takeover of the government.”

My response to the Blog:

            Re: “contractors.”  OMG, spot on, brother!  I understand the need to supplement, permanent, active employees, but for the life of me, I do not understand how a contractor is given access to SCI-compartmented information.  He was not an employee of the NSA or the United States Government; he was an employee of a commercial consulting company.  Someone has some major splainin’ to do.

My very best wishes to all.  Take care of yourselves and each other.

Cheers,

Cap                        :-)