Update no.601

Update from the Heartland

No.601

17.6.13 – 23.6.13

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

To all,

The follow-up news items:

-- The U.S. Department of Justice filed espionage charges against Edward Joseph Snowden.  The Department of State revoked his passport.  These were the first formal shots toward extraditing Snowden to the United States to stand trial for his crimes.  The government of Hong Kong decided the international provisional warrant for Snowden’s arrest was insufficient and the revocation of Snowden’s passport was untimely, as they allowed him to board a commercial flight to Shermetyevo International Airport in Moscow.  The Russian authorities have apparently not detained him during his layover.  Press reports suggest he is trying to make it to asylum in Venezuela or Ecuador with the support of WikiLeaks lawyers.

            The disclosure of U.S. classified material is one thing – bad enough in itself – however, this whole Snowden fiasco has also exposed British participation in the wide-ranging, international, electronic surveillance program.  I am angry enough with the damage to U.S. national security.  I am beyond incensed with the collateral damage to a primary ally.  As an American citizen, I apologize to the British People for the damage Snowden has done to their national security.

A wide variety of Press & media sources reported this week on the announcement of an EPIX Channel documentary film, scheduled to be broadcast on 17.July, titled: TWA Flight 800 (17.July.1996).  Some of the guys identified so far were inside the investigation and presumably have additional inside evidence beyond that material already disclosed.  You may recall, the USG aggressively prosecuted several people who disclosed inside information early in the investigation. 

            There has never been a debate about the Center Wing Tank (CWT) explosion being the primary cause of the in-flight break-up.  The B-747 CWT is generally used for long-range flights.  For TWA800, the CWT was essentially empty (less than 100 gal.), since that capacity was not needed for the aircraft loading and the New York-to-Paris route.  The CWT residual fuel at the temperatures that evening produced a combustible fuel-air atmosphere in the CWT.  The question has always been what ignited the CWT fuel-air mixture to explode?  There is no evidence -- zero -- in the publicly available data that would indicate an internal cause, i.e., the electrical spark hypothesis.  The missing scavenge pump was happenstance and pure conjecture . . . beyond that, highly unlikely based on construction and operation.  The fuel quantity probes operate at such low voltage to also be highly unlikely as a spark source.  Both would need multiple mechanical and electrical failures to produce a sufficient spark to ignite the fuel-air mixture.

            There would only be burn marks on the exterior with a substantial weapon, e.g., SM-2 SAM.  The key for small weapons like ManPADS, e.g., SA-7, FIM-92, is penetrations.  For example, it would have taken only one (1) high-velocity BB from a warhead to penetrate the skin of the CWT to ignite the fuel-air mixture inside.  The subjects in the documentary claim they had penetration evidence that was suppressed during the event investigation.  Hopefully, the documentary will show us the evidence along with the chain of custody to validate the hypothesis.

            Certainly, these guys needed to gain some distance from the investigation in order to disclose what they know and minimize the threat of prosecution.  Further, a big chunk of the USG's classified data should be declassified in 2016, which was when I thought we might see more of the evidence.  Needless to say, I will record the program and study the contents carefully.  Perhaps, the dam of silence has been breeched.

            FYI: Kevin Ready and I wrote TWA 800 – Accident or Incident?, which was published in print form in 1998.  We are working with the book’s publisher, Saint Gaudens Press, to release the book in digital eBook format next month.

News from the economic front:

-- The U.S. Federal Reserve forecasts that the unemployment rate should continue to decrease to 6.5% in 2014.  They are also estimating the nation’s Gross Domestic Product (GDP) should grow by 3% to 3.5%, compared with a 2.9% to 3.4% estimate in March. The forecast for next year's inflation was little changed.  The positive news was overshadowed by Fed Chairman Ben Bernanke’s public comment that sent the market’s all-a-twitter that the central bank may begin pulling back its US$85B per month bond-buying program later this year to completely end the program by the middle of next year.

-- An initial indication of manufacturing activity of People’s Republic of China (PRC) hit a nine-month low in June. , HSBC Holdings PLC announced the preliminary HSBC China Manufacturing Purchasing Managers Index (PMI), AKA HSBC Flash China PMI, dropped to 48.3 in June from a final reading of 49.2 in May. A reading below 50 indicates contraction.

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

-- The trial of Tom A.W. Hayes, 33, a British citizen and former UBS & Citigroup trader, is scheduled to begin next month in Southwark Crown Court.  The Serious Fraud Office charged him with various crimes related to the LIBOR manipulation scandal, covering a period from August 2006 to September 2010 – half related to his time at UBS and half to his time at Citigroup in Japan.  Hayes, and another former UBS trader, Roger Darin, 41, of Switzerland, have also been charged with conspiracy by the United States Justice Department in a criminal complaint that was unsealed in December.  I expect these two may be key witnesses for the prosecution of others, including executives who sanctioned their criminal activities.

-- 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.600:

“Here's one of my rare responses, its rareness not to infer any particular importance but just to suggest that my morning is less scheduled than normal, and it's length not to infer any lack of appreciation for your entire offering:

   “1.   ...checks and balances...

            Did you note the wonderful lock step litany of assurances from all the high ranking officials who testified the other day, calculated to convince us by a barrage of positive propaganda that our government is dedicated to personal freedom of all citizens?  I felt so much better, after I threw up.

   “2.    ...treason...  during time of war...

              We, unfortunately, are not at war, because Congress has not figured out how to declare war.

   “3.     ...Bishop Spong...

              As an Episcopalian, proud of our claim (usually true) to allow God-given human reasoning to question human invented dogma, I've been a quiet fan of Spong for decades, impressed every time I've heard him speak and seldom inspired to doubt his sincerity and dedication to basic teachings of Jesus (as contrasted with the foolishness constructed by men who over the centuries felt power in defining and refining the undefinable and unrefinable.   (Hey, that's was not bad!  You can quote me on that.)

“Hope your medical reports are encouraging and your coffee is hot.”

My response:

            Thx.  Just another number for me.

            Re: “surveillance.”  The administration is in a tough crack.  They have to defend the PRISM program, while attempting to assuage the near universal apprehension regarding USG intrusion into our private affairs.  Conversely, the bad guys cannot be allowed to hide behind our rights.  The balance must be in there somewhere.

            Re: “treason.”  If the only definition of war is a congressional joint resolution signed by the President that is explicitly labeled “This is a declaration of war” or equivalent, then I suppose I must reluctantly agree.  However, I do believe SCOTUS has at least partially established the AUMF’s as essentially or comparatively a state of war.

            Re: “Spong.”  I had not heard or read about him before; so, an appreciated voice of reason, it seems to me.

            Re: “medical.”  Next checkup in August.  So far so good.

Comment to the Blog:

“You get the message of Snowden’s action and point it out. The potential for abuse is staggering. Then you insist he has committed treason. Is that not a conflict? My opinion is that he acted on his conscience at great cost to himself in order to try to end the tyrannous government I keep hearing from gun owners might be in the future. It’s already here, y’all missed it, and he’s trying to do something about it.

“Bishop Spong points out some saner positions for Christians. His scope, for me, remains within the Judeo-Christian outlook rather than covering ‘religion’ in general, but it’s a good job all the same.

“I tend to oppose patenting any part of humans, but this is a new and extremely complex field of law. I do not look forward to the tangles that will result from this particular branch of medicine/technology.”

My response to the Blog:

Calvin,

            Re: Snowden’s treason.  No. I see no conflict.  I accept that individuals within the government may have a crisis of conscience regarding the work they are doing, or the orders they are given to execute.  There is an established process to raise issues with the government’s conduct.  Snowden did not avail himself of that process.  He unilaterally chose to betray his oath, his country, and the very people he claims to be acting on behalf of in this instance.  Snowden chose to act as prosecutor, judge, jury and executioner.  There is no way on God’s little green earth his actions were noble, even if the government was tyrannical, which I do not agree to either.  He may be trying to do something, but it is not to help We, the People.  I see his actions as narcissistic, egocentric, self-serving, and otherwise a betrayal of the trust placed in him.  He placed himself above all others in the determination of right and wrong.  I am critical of the government, of various administrations, and of agents, but I do not betray this Grand Republic.

            Re: Spong.  Early on, he refers to “all religions,” and yet he speaks from his Episcopal education, experience and background; so, it should not be surprising that he speaks from his Christian foundation.  His basic premise remains valid & accurate – religion is about control.

            Re: patenting DNA.  I have not read the Supremes’ reasoning, as yet.  This arena is only one of a myriad of complicated, human technical issues.  I have not read the Myriad Genetics case, yet, but I will.

 . . . follow-up contribution:

“The notion that Snowden could accomplish anything by following the chain of command is ludicrous. Power corrupts; absolute power corrupts absolutely. How you can see a government that claims a right to kill anyone at any time without due process or to perform lesser evils such as monitoring communications of people not shown to be involved in crimes and confiscating reporters' notes as not tyrannical eludes me.

“I note, and agree with, Bishop Spong's statements amounting to the human element being the issue with religion. He clearly believes in a God, just not the manipulative approach of organized religion.”

 . . . my follow-up response:

            Re: Snowden treason.  There is a wide variety of legal means available for dissatisfied contractors serving the government to illuminate or initiate public debate regarding perceived or alleged misconduct of the government.   There is no public evidence he attempted to use any of those means.  He chose betrayal.  I trust he shall suffer the consequences of that betrayal.  Whether he is prosecuted for treason is yet to be determined.

            Re: enemies of the State.  Whether the government is tyrannical or carrying out its primary constitutional task is an assessment for every citizen.  I will also add, there is a monumental difference between objection to the conduct of an administration or the government across several administrations, and threatening national security – the security of all citizens far beyond the government.  Freedom does NOT give any citizen the unilateral right to be prosecutor, judge, jury and executioner.  Snowden did not attack enemies of the State; he attacked the State itself – all of us.

            Re: Spong.  My interpretation of his opinions as well.

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

Cheers,

Cap                        :-)

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                        :-)

Update no.599

Update from the Heartland

No.599

3.6.13 – 9.6.13

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

To all,

The follow-up news items:

-- The President signed into law the latest attempt by Congress to protect the nation’s highest awards for valor in combat – Stolen Valor Act of 2013 [PL 113-012; H.R.258; Senate: unanimous consent; House: 390-3-0-40(2); 127 Stat. xxx; 3.June.2013].  You may recall the Supreme Court case – United States v. Alvarez [567 U.S. ___ (2012); 28.June.2012] [563] – that declared the previous congressional attempt unconstitutional {Stolen Valor Act of 2005 [PL 109-437; 120 Stat. 3266; 20.December.2006] [450, 454, 560]}.  The new law appears to fully address the Court’s concerns with the previous law, so it should stand up to judicial scrutiny.  I hope so, and it is about time.

Many of us have seen the General Mills Cheerios commercial with the precocious, beautiful, little girl asking her mother about the cereal being heart-healthy, and taking the box and pouring the contents on her dozing father’s chest to convey her concern for his health.  Now, we hear there are more than a few folks in this Grand Republic who have expressed outrage over this commercial because her mother has light skin pigmentation and her father has dark skin pigmentation.  Such bigoted outrage literally enrages me, which is not good for my blood pressure.  Fortunately, for all of us, General Mills has defied the racist protest and thankfully so.  Freedom of Speech is not always eloquent or proper, and such is Liberty.

As the public debate regarding the government’s electronic surveillance activities rages on, we learn the name of the traitor . . . or in some quarters, he may be referred to as a noble whistleblower.  He chose to publicly disclose his identity for reasons unknown.  He is Edward Snowden, 29, a former CIA employee, and until recently, an electronic infrastructure contractor for the consulting firm Booz Allen Hamilton assigned to National Security Agency (NSA).  How he gained access to such a highly classified compartmented program as PRISM will be a paramount concern to the government and rightly so.  Snowden apparently gathered numerous PRISM documents and flew off to Hong Kong to turn over the documents to the Guardian's Glenn Greenwald.  The Washington Post and the Guardian have confirmed Snowden’s identity as Greenwald’s source.  Snowden claims he did this to let the American People know what their government was doing.  Unfortunately, he also told the enemies of the United States valuable information regarding the capabilities of the government.

            Every citizen should hold a healthy concern for the increasing capacity of the State to intrude upon and violate our fundamental right to privacy.  Yet, I urge moderation and a broader perspective as we debate the surveillance question.  All of the publicly available information indicates the NSA collected metadata attached to electronic communication, i.e., from, to, duration, et cetera.  The Supreme Court decided in Smith v. Maryland [442 U.S. 735 (1979); 20.June.1979] [232] that pen registers, the equivalent of electronic metadata, were beyond the “reasonable expectation of privacy” test, i.e., such collection did not violate a citizen’s fundamental right to privacy. 

            Let us avoid jumping to conclusions.  I have maintained for a long time the need for and right to intelligence data collection that is respectfully of every citizen’s constitutional rights.  Concomitantly, enemies of the State cannot hide behind the Constitution.  I will say, if Snowden did what he claims to have done, then he is a traitor and must be prosecuted to the fullest extent of the law.  Lastly, I am disappointed, staggered, shocked and otherwise gobsmacked that anyone with Snowden’s background, employment status and capabilities could ever gain access to TOP SECRET – PRISM intelligence data or any other Sensitive Compartmented Information (SCI) at any level.  I am far more concerned about the protection of SCI than I am the government’s surveillance effort.

News from the economic front:

-- The Financial Stability Oversight Council, led by the Treasury Department, has finally taken the first long-awaited step to address market vulnerabilities, proposing that a first round of large, non-bank financial companies.  They voted to designate several companies, like American International Group (AIG) and Prudential Financial, as “systemically important” and should face tougher government oversight.   Better late than never, but about freakin’ time.

-- The Wall Street Journal reported that the Federal Housing Administration (FHA) could face losses as high as US$115B over the next 30 years under a previously undisclosed stress test conducted last year to determine how the government mortgage-insurance agency would fare under an extremely severe economic scenario.

-- The U.S. International Trade Commission (ITC) decided Apple’s iPhone violated a Samsung patent and issued an exclusion order barring the importation of various Apple mobile devices, including the iPhone 3GS & 4, and the iPad 2 & 3G.  The order does not affect the latest Apple products – iPhone 5 and iPad 4.

-- The Wall Street Journal also reported that investors are apparently returning to their old ways as they seek synthetic Collateralized Debt Obligations (CDO).  J.P. Morgan Chase and Morgan Stanley bankers in London are moving to assemble synthetic CDOs to satisfy the voracious demand for higher returns amid rock-bottom interest rates.  Not a good sign, it seems to me.

-- The Labor Department reported the U.S. economy added 175,000 jobs in May, although the unemployment rate rose slightly to 7.6% from 7.5% in April.  The economic recovery continues, albeit at a rather slow pace.

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

-- The European Union is seeking to put the scandal-ridden LIBOR lending rate under stricter supervision a pan-European unit based in Paris, in a far-reaching overhaul of pricing methods for everything from oil and gold to property.

-- U.S. and British authorities are preparing to bring criminal charges against former employees of Barclays for their alleged roles in trying to manipulate benchmark interest rates, marking an escalation of a global investigation now entering its sixth year.

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

·      Barclays [UK] – US$454M fine [550]

·      Bank of America [U.S.]

·      BTMU [Japan]

·      Citibank [U.S.]

·      Credit Suisse [Switzerland]

·      Deutsche Bank [Germany] – US$654M LIBOR profit [578]; set aside €500M (US$641M) for LIBOR liability [589]

·      Lloyds TSB [UK]

·      HSBC [UK]

·      HBOS [UK]

·      JPMorgan Chase [U.S.]

·      Rabobank [Netherlands]

·      RBC [Canada]

·      RBS [UK] – £390M (US$612.6M) in fines, 21 employees involved [582]

·      UBS [Switzerland] – US$1.5B fine, two charged [575]

·      West LB [Germany]

·      Norinchuckin [Japan]

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

Comments and contributions from Update no.598:

Comment to the Blog:

“Housing prices have rebounded to what I suspect is their appropriate level. Let us remember that the reason the prices collapsed was a ‘bubble’ caused by speculation and fraud in derivatives markets. Under those conditions, the prices should not return to their pre-collapse levels until some future time when inflation or other “natural” factors take them there independently.

“In whose imagination would an unregulated digital currency exchange not become a tool for criminals? All together now: ‘Duuuuhhhh.’

“Yes, prosecuting Kaitlyn is clearly wrong, even more so because there is no risk of pregnancy by means of sex between two girls. Unless some hint of coercion exists (not alleged in this case), Kaitlyn’s love life is not anyone’s business. However, the puritanical forces in this country insist on sticking their noses into everyone’s bedroom.

“If/when the government seizes firearms, it will be a formality. Study the histories of Germany and Italy during the preface to World War II or any number of dictatorships since. Those who are so hysterical about supposedly rising up against a tyrannical government have already missed their chance. Bush 43 and Obama both clearly claim a “right” to kill anyone of their choice in the name of the “war on terror.” If you’re a danger to them, you’re next.”

My response to the Blog:

Calvin,

            Re: causes of banking collapse.  Housing speculation has apparently picked up where it left off in 2007.  The gambling by major banks has also restarted.  Apparently, there are few checks in place to prevent the unsustainable debt increase that got us into this mess in the first place.  This is where banking supervision is necessary.

            Re: unregulated digital currency exchange.  Spot on.  It’s about time the USG asserted its authority.

            Re: Kaitlyn.  Agreed.  The State’s intrusion into private matters must stop.  Freedom is too important.  The law must mature.  I would hope that we could evolve as a society to have a more realistic attitude toward sex and respect for privacy.  Kaitlyn is not a criminal.

            Re: firearms.  The choice is not ours, but rather each individual citizen.  Some of us trust the government; some of us don’t; the rest of us are undecided or skeptical.

            Re: right to kill.  Taken in isolation, yes, a danger and threat to us all.  However, placed in the greater context, it is not without constraints and it is consistent with the Constitution and the expectation that the Executive wage war successfully.  I do not see the president’s war powers as dictatorial as apparently you do. 

 . . . a follow-up comment:

“I'll only follow up on the ‘right’ to kill people. The context of that justification is dubious and ill-defined at best. The constraints are not accountable or transparent; therefore, they may not exist in useful forms. And no, I do not trust the governing people with this type of power. My personal political life goes back to Nixon, and my study of history goes back as far as written history. None of that gives me a reason to trust the people at the top of any given government.”

 . . . my follow-up response:

Calvin,

            Re: “right to kill.”  I certainly concede the current War on Islamic Fascism is ambiguous legally, which in turn makes the right to kill enemies of the State comparably confusing.  In this instance, I must lean toward the Commander-in-Chief, since he has far more information than we do.

            Re: “trust in government.”  I peg the genesis of my political life back to Barry Goldwater.  The right of the State to take a life in peacetime or civil circumstances is established by due process of law.  In wartime, the right is clearly the domain of the Executive.  There are numerous Supreme Court cases that substantiate the President’s war powers.  I think we all agree that we should be perpetually skeptical, watchful and critical of government.  We have to trust the government to an extent for society to function under the rule of law.

 . . . and a follow-up to the follow-up contribution:

“I'll say it again, it's not war unless someone can define a clear enemy nation or organization and state what constitutes victory or defeat in a quantifiable way.”

 . . . along with my response.

Calvin,

            Rather than continue around the same circle, I shall note the interesting legal question concerning the actions taken by Congress.  The President ended combat operations in Iraq on 15.December.2011, which presumably should have closed or terminated the Authorization for Use of Military Force Against Iraq Resolution of 2002 [PL 107-243; 116 Stat. 1498; 10.October.2002].  I have not seen either legislation or a court test of that premise.  Further, the President has publicly stated his intention to end combat operations in Afghanistan.  It is even less clear whether that action might terminate the Authorization for Use of Military Force [PL 107-040; 115 Stat. 224; 18.September.2001], since the latter law is less geographically specific.  Congress has renewed other laws associated with the War on Islamic Fascism.  At some point, we should expect them to not renew those laws and allow them to expire.  While the legal support for the War on Islamic Fascism is not as definitive as the Declaration of war with Japan [PL 77-328; 56 Stat. 795; 8.December.1941], the Supreme Court has generally supported the wartime footing of the AUMF laws, so far.  The law has a long way to go, but it is what it is.  History shall eventually judge what Congress and the two presidents so far have done in the War on Islamic Fascism.  More to follow, I’m sure.

Cheers,

Cap

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

Cheers,

Cap                        :-)