Eeyores news

Snooping through the power socket
Power sockets can be used to eavesdrop on what people type on a computer.
Security researchers found that poor shielding on some keyboard cables means useful data can be leaked about each character typed.
By analysing the information leaking onto power circuits, the researchers could see what a target was typing.
The attack has been demonstrated to work at a distance of up to 15m, but refinement may mean it could work over much longer distances.
Hotel attack
"Our goal is to show that information leaks in the most unexpected ways and can be retrieved," wrote Andrea Barisani and Daniele Bianco, of security firm Inverse Path, in a paper describing their work.
The research focused on the cables used to connect PS/2 keyboards to desktop PCs.
... read the rest at the following link
http://news.bbc.co.uk/2/hi/technology/8147534.stm

Powerful Ideas: Military Develops 'Cybug' Spies
Miniature robots could be good spies, but researchers now are experimenting with insect cyborgs or "cybugs" that could work even better.
Scientists can already control the flight of real moths using implanted devices.
The military and spy world no doubt would love tiny, live camera-wielding versions of Predator drones that could fly undetected into places where no human could ever go to snoop on the enemy. Developing such robots has proven a challenge so far, with one major hurdle being inventing an energy source for the droids that is both low weight and high power. Still, evidence that such machines are possible is ample in nature in the form of insects, which convert biological energy into flight.
It makes sense to pattern robots after insects - after all, they must be doing something right, seeing as they are the most successful animals on the planet, comprising roughly 75 percent of all animal species known to humanity. Indeed, scientists have patterned robots after insects and other animals for decades - to mimic cockroach wall-crawling, for instance, or the grasshopper's leap.
... read the rest at the following link
http://news.yahoo.com/s/livescience/20090714/sc_livescience/powerfulideasmilitarydevelopscybugspies
Beamed Power For Dragonfly Spies
DANGER ROOM reader Justin posted this comment on yesterday’s piece about the British Police’s New Spy Drone :
During the Republican National Convention in 2004, I swear I saw a jet-black dragonfy hovering about 10 feet off the ground, precisely in the middle of 7th avenue. About six blocks later, marching toward Madison Sq. Garden, I saw another. Hovering. Motionless but for the wings beating. Dead center of the street, ten feet off the ground. Watching us.
In other words, I’m pretty sure smaller and stealthier gadgets are already in use for surveillance. Call me crazy.
Not that crazy. As far back as the 1970’s the CIA were experimenting with a micro air vehicle which looked like a dragonfly. Flight International reported last year:
Developed during the 1970s, the CIA has displayed a mock-up of the micro UAV in its museum at its headquarters in Langley,
Virginia since 2003. However until now no media organisation has been given access to the material that proved that the artificial dragonfly had been flight tested.
. In the 1970s the CIA was interested in the dragonfly concept as a small unmanned surveillance device. Flight cannot reveal exactly what materials have been seen, but can confirm the four-winged robotic insect achieved sustained flight…. The CIA’s entomopter dragonfly’s power supply and actuation system for its wings are still highly classified subjects.
The CIA drone really does look like a real dragonfly – see the photo to the left. The problem was apparently with the flight control system, as the craft could not cope with crosswinds. This type of problem can be solved much more easily with modern electronics. The big issue with a craft so small is the power supply. Until we can get something as compact and efficient as the biological version (and there already ecobots that power themslves by digesting insects), the answer for robotic insects is likely to be beamed power.
There has been a lot of serious work on this already (and let’s not talk about Tesla). As long ago as 1964, pioneer Bill Brown demonstrated a mini-helicopter powered by microwaves on the CBS News with Walter Cronkite. The craft was developed under a contract with the Air Force. NASA seem to believe that miocrowaves will be inherently inefficient because of how they spread out with range, and have been working on micro air vehicles remotely powered by laser.
But there has been more recent work on microwaves to power UAVs, using the body of the craft as an antenna to pick up power:
"We’ve already demonstrated we can transfer power with microwaves. We’ve performed tests on the safety issues of microwaves, and we’ve shown that having multiple ground stations [sending microwaves] is the best possible method, said Jenn. "Now we plan to show how we can power these UAVs using radar systems — systems the
Navy already has."
That was almost ten years ago. Beamed power micro UAVs would have obvious limitations – they’re not going to be flying hundreds of miles away over enemy territory. But for covert surveillance in the domestic arena, they might be just the thing. I have no idea whether there are any dragonfly spies out there yet; but if there aren’t now, there soon will be.
http://www.wired.com/dangerroom/2007/09/beamed-power-fo/

Australia swine flu passes 10,000, prefers 'young'
Australia's swine flu cases have topped 10,000 with officials in the worst-hit Asia-Pacific country reporting two deaths and warned the virus "preferred young people."
Health Minister Nicola Roxon said the national tally was now 10,387, more than 10 percent of the global total confirmed by the World Health Organization with 123 people in hospital.
South Australia and Queensland states reported two deaths of people with the disease, taking the national flu-linked toll to 22. A(H1N1) however has not yet been confirmed as the cause of any of the
... read the rest at the following link
http://www.breitbart.com/article.php?id=CNG.5eef86ae79464179681179084700cbde.be1&show_article=1

Swine flu fears close more summer camps
By KRISTEN WYATT – 9 hours ago
DENVER (AP) — Swine flu is keeping kids with asthma home from camp this summer.
The American Lung Association has advised its affiliated camps to close, including one in Colorado that was scheduled to begin next week. Champ Camp in Ward was a traditional sleep-away weeklong camp for boys and girls with asthma — no campfires allowed.
The decision came after four campers were hospitalized when they became sick at an affiliated camp in Julian, Calif., said Heather Grzelka, spokeswoman for the Washington-based Lung Association.
Grzelka said the association has about 50 affiliated camps nationwide, but that they are not run by her group and that she wasn't sure how many would close.
The American Lung Association of the Southwest called off three summer camps — the Champ Camp, plus camps in Tooele, Utah, and Reno, Nev. All were scheduled for July.
... read the rest at the following link
http://www.google.com/hostednews/ap/article/ALeqM5gyauxLxf2zgbM64GMDO7DjcnrkZgD99EKHRG0
Here is a place you can find a current swine flu map all the time and it is a good forum also
http://frc4u.org/portal/e107_plugins/forum/forum_viewtopic.php?2

Eeyores news and view

This coin comes from an interesting source http://www.futureworldcurrency.com/ If you go to there manifesto and look at what they want it is truely amazing, look at #10

ART. 10
It will be the responsibility of the world's future citizens and the governments they put in place to make our Project a reality. This project is driven by a firm belief in the unification and co-existence of different peoples. It aims to promote an increasingly equal distribution of the planet's resources and human intellect.

Medvedev Shows Off Sample Coin of New ‘World Currency’ at G-8
By Lyubov Pronina
July 10 (Bloomberg) -- Russian President Dmitry Medvedev illustrated his call for a supranational currency to replace the dollar by pulling from his pocket a sample coin of a “united future world currency.”
“Here it is,” Medvedev told reporters today in L’Aquila, Italy, after a summit of the Group of Eight nations. “You can see it and touch it.”
The coin, which bears the words “unity in diversity,” was minted in Belgium and presented to the heads of G-8 delegations, Medvedev said.
The question of a supranational currency “concerns everyone now, even the mints,” Medvedev said. The test coin “means they’re getting ready. I think it’s a good sign that we understand how interdependent we are.”
Medvedev has repeatedly called for creating a mix of regional reserve currencies as part of the drive to address the global financial crisis, while questioning the U.S. dollar’s future as a global reserve currency. Russia’s proposals for the G-20 meeting in London in April included the creation of a supranational currency.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aeFVNYQpByU4

Lawmaker says CIA director ended secret program
WASHINGTON (AP) - CIA Director Leon Panetta has terminated a "very serious" covert program the spy agency kept secret from Congress for eight years, Rep. Jan Schakowsky, a House Intelligence subcommittee chairwoman, said Friday.
Schakowsky is pressing for an immediate committee investigation of the classified program, which has not been described publicly. Rep. Silvestre Reyes, D-Texas, the chairman of the House Intelligence Committee, has said he is considering an investigation.
"The program is a very, very serious program and certainly deserved a serious debate at the time and through the years," Schakowsky told The Associated Press in an interview. "But now it's over."
Democrats revealed late Tuesday that CIA Director Leon Panetta had informed members of the House Intelligence Committee on June 24 that the spy agency had been withholding important information about a secret intelligence program begun after the Sept. 11 terrorist attacks.
Schakowsky described Panetta as "stunned" that he had not been informed of the program until nearly five months into his tenure as director.
Panetta had learned of the program only the day before informing the lawmakers, according to a U.S. intelligence official. The official spoke on condition of anonymity Friday because he was not authorized to discuss the program publicly.
Panetta has launched an internal probe at the CIA to determine why Congress was not told about the program. Exactly what the classified program entailed is still unclear.
The intelligence official said the program was "on-again/off-again" and that it was never fully operational, but he would not provide details.
Schakowsky, D-Ill., said Friday that the CIA and Bush administration consciously decided not to tell Congress.
"It's not as if this was an oversight and over the years it just got buried. There was a decision under several directors of the CIA and administration not to tell the Congress," she said.
Schakowsky, who chairs the Intelligence subcommittee on oversight and investigations, said in a Thursday letter to Reyes that the CIA's lying was systematic and inexcusable. The letter was obtained by The Associated Press on Friday.
She said Reyes indicated to her the committee would conduct a probe into whether the CIA violated the National Security Act, which requires, with rare exceptions, that Congress be informed of covert activities. She told AP she hopes to conduct at least part of the investigation for the committee.
She said this is the fourth time that she knows of that the CIA has misled Congress or not informed it in a timely manner since she began serving on the Intelligence Committee two and half years ago.
In 2008, the CIA inspector general revealed that the CIA had lied to Congress about the accidental shoot down of American missionaries over Peru in 2001. In 2007, news reports disclosed that the CIA had secretly destroyed videotapes of interrogations of a terrorist suspect.
She would not describe the other incident.
Schakowsky said she thinks Panetta is changing the CIA for the better, adding that the failure to inform Congress was indicative of "contempt" the Bush administration and intelligence agencies under him held for Congress.
"Many times I felt it was an annoyance to them to have to come to us and answer our questions," she said. "There was an impatience and a contempt for the Congress."
The House is expected to take up the 2010 intelligence authorization bill next week. It includes a provision that would require the White House to inform the entire committee about upcoming covert operations rather than just the "Gang of Eight"_ the senior members from both parties on the House and Senate Intelligence Committees and the Democratic and Republican leaders in both houses.
The White House this week threatened to veto the final version of the bill if it includes that provision.
Democratic aides said the language may be softened in negotiations with the Senate to address the White House's concern.
But Schakowsky said the wider briefings are the best remedy to avoiding future notification abuses.
Republicans charge that Democratic outrage about the Panetta revelation is just an attempt to provide political cover to House Speaker Nancy Pelosi, who in May accused the CIA of lying to her in 2002 about its use of waterboarding.
What Pelosi knew about the CIA's interrogation program and when she knew it _ and why she did not object to it sooner _ is expected to be emphasized by Republicans during debate over the intelligence bill.
http://www.federalnewsradio.com/?nid=27&sid=1699547

84 sick cadets isolated at Air Force Academy
AIR FORCE ACADEMY, Colo. (AP) - The Air Force Academy says 84 cadets with flu-like symptoms have been isolated are being tested for swine flu.
Academy spokeswoman Capt. Corinna Jones told The Gazette in Colorado Springs Thursday that most of the cadets are "doolies", members of the incoming freshman class who began training June 25. She said the cadets under isolation in a dormitory began coughing and showing other upper respiratory symptoms over the past two days.
The academy has contacted the U.S. Centers for Disease Control and Prevention and the Air Force Surgeon General's office.
Jones says tests have been sent to a laboratory in San Antonio for analysis, and results are expected within 24 hours.
http://www.federalnewsradio.com/?nid=29&sid=1714503

Chips in official IDs raise privacy fears
Climbing into his Volvo, outfitted with a Matrics antenna and a Motorola reader he'd bought on eBay for $190, Chris Paget cruised the streets of San Francisco with this objective: To read the identity cards of strangers, wirelessly, without ever leaving his car.
It took him 20 minutes to strike hacker's gold.
Zipping past Fisherman's Wharf, his scanner downloaded to his laptop the unique serial numbers of two pedestrians' electronic U.S. passport cards embedded with radio frequency identification, or RFID, tags. Within an hour, he'd "skimmed" four more of the new, microchipped PASS cards from a distance of 20 feet.
Increasingly, government officials are promoting the chipping of identity documents as a 21st century application of technology that will help speed border crossings, safeguard credentials against counterfeiters, and keep terrorists from sneaking into the country.
But Paget's February experiment demonstrated something privacy advocates had feared for years: That RFID, coupled with other technologies, could make people trackable without their knowledge.
He filmed his heist, and soon his video went viral on the Web, intensifying a debate over a push by government, federal and state, to put tracking technologies in identity documents and over their potential to erode privacy.
Putting a traceable RFID in every pocket has the potential to make everybody a blip on someone's radar screen, critics say, and to redefine Orwellian government snooping for the digital age.
"Little Brother," some are already calling it - even though elements of the global surveillance web they warn against exist only on drawing boards, neither available nor approved for use.
But with advances in tracking technologies coming at an ever-faster rate, critics say, it won't be long before governments could be able to identify and track anyone in real time, 24-7, from a cafe in Paris to the shores of California.
On June 1, it became mandatory for Americans entering the United States by land or sea from Canada, Mexico, Bermuda and the Caribbean to present identity documents embedded with RFID tags, though conventional passports remain valid until they expire.
Among new options are the chipped "e-passport," and the new, electronic PASS card - credit-card sized, with the bearer's digital photograph and a chip that can be scanned through a pocket, backpack or purse from 30 feet.
Alternatively, travelers can use "enhanced" driver's licenses embedded with RFID tags now being issued in some border states: Washington, Vermont, Michigan and New York. Texas and Arizona have entered into agreements with the federal government to offer chipped licenses, and the U.S. Department of Homeland Security has recommended expansion to non-border states. Kansas and Florida officials have received DHS briefings on the licenses, agency records show.
The purpose of using RFID is not to identify people, says Mary Ellen Callahan, the chief privacy officer at Homeland Security, but "to verify that the identification document holds valid information about you."
An RFID document that doubles as a U.S. travel credential "only makes it easier to pull the right record fast enough, to make sure that the border flows, and is operational" - even though a 2005 Government Accountability Office report found that government RFID readers often failed to detect travelers' tags.
Critics warn that RFID-tagged identities will enable identity thieves and other criminals to commit "contactless" crimes against victims who won't immediately know they've been violated.
Neville Pattinson, vice president for government affairs at Gemalto, Inc., a major supplier of microchipped cards, is no RFID basher. He's a board member of the Smart Card Alliance, an RFID industry group, and is serving on the Department of Homeland Security's Data Privacy and Integrity Advisory Committee.
In a 2007 article published by a newsletter for privacy professionals, Pattinson called the chipped cards vulnerable "to attacks from hackers, identity thieves and possibly even terrorists."
RFID, he wrote, has a fundamental flaw: Each chip is built to faithfully transmit its unique identifier "in the clear, exposing the tag number to interception during the wireless communication."
Once a tag number is intercepted, "it is relatively easy to directly associate it with an individual," he says. "If this is done, then it is possible to make an entire set of movements posing as somebody else without that person's knowledge."
Echoing these concerns were the AeA - the lobbying association for technology firms - the Smart Card Alliance, the Institute of Electrical and Electronics Engineers, the Business Travel Coalition, and the Association of Corporate Travel Executives.
Meanwhile, Homeland Security has been promoting broad use of RFID even though its own advisory committee on data integrity and privacy issued caveats. In its 2006 draft report, the committee concluded that RFID "increases risks to personal privacy and security, with no commensurate benefit for performance or national security," and recommended that "RFID be disfavored for identifying and tracking human beings."
For now, chipped PASS cards and enhanced driver's licenses are not yet widely deployed in the United States. To date, roughly 192,000 EDLs have been issued in Washington, Vermont, Michigan and New York.
But as more Americans carry them "you can bet that long-range tracking of people on a large scale will rise exponentially," says Paget, a self-described "ethical hacker" who works as an Internet security consultant.
But Gigi Zenk, a spokeswoman for the Washington state Department of Licensing, says Americans "aren't that concerned about the RFID" in a time when "tracking an individual is much easier through a cell phone."
In the wake of the Sept. 11 attacks - and the finding that some terrorists entered the United States using phony passports - the State Department proposed mandating that Americans and foreign visitors carry "enhanced" passport booklets, with microchips embedded in the covers.
In February 2005, when the State Department asked for public comment, it got an outcry: Of the 2,335 comments received, 98.5 percent were negative, with 86 percent expressing security or privacy concerns, the department reported in an October 2005 notice in the Federal Register.
Identity theft and "fears that the U.S. Government or other governments would use the chip to track and censor, intimidate or otherwise control or harm them" were of "grave concern," it noted. Many Americans worried "that the information could be read at distances in excess of 10 feet."
Those citizens, it turns out, had cause.
According to department records obtained by researchers at the University of California, Berkeley, under a Freedom of Information Act request and reviewed by the AP, discussion about security concerns with the e-passport occurred as early as January 2003 but tests weren't ordered until the department began receiving public criticism two years later.
(AP) In this May 28, 2009 photo, a new "enhanced" United States passport lies, at left, beside an...
When the AP asked when testing was initiated, the State Department said only that "a battery of durability and electromagnetic tests were performed" by the National Institute of Standards and Technology, along with tests "to measure the ability of data on electronic passports to be surreptitiously skimmed or for communications with the chip reader to be eavesdropped," testing which "led to additional privacy controls being placed on U.S. electronic passports ... "
In 2005, the department incorporated metallic fibers into the e-passport's front cover, to reduce the read range, and added encryptions and a feature that required inspectors to optically scan the e-passport first for the chip to communicate wirelessly.
But what of concerns about the e-passport's read range?
In its October 2005 Federal Register notice, the State Department reassured Americans that the e-passport's chip would emit radio waves only within a 4-inch radius, making it tougher to hack.
But in May 2006, at the University of Tel Aviv, researchers directly skimmed an encrypted tag from several feet away. At the University of Cambridge in Britain, a student intercepted a transmission between an e-passport and a legitimate reader from 160 feet.
The State Department, according to its own records obtained under FOIA, was aware of the problem months before its Federal Register notice and more than a year before the e-passport was rolled out in August 2006.
"Do not claim that these chips can only be read at a distance of 10 cm (4 inches)," Frank Moss, deputy assistant Secretary of State for passport services, wrote in an April 22, 2005, e-mail to Randy Vanderhoof, executive director of the Smart Card Alliance. "That really has been proven to be wrong."
The chips could be skimmed from a yard away, he added - all a hacker would need to read e-passport numbers, say, in an elevator.
In February 2006, an encrypted Dutch e-passport was hacked on national television, and later, British e-passports were hacked. The State Department countered that European e-passports weren't as safe as their American counterparts because they lacked safety features such as the anti-skimming cover. Recent studies have shown, however, that more powerful readers can penetrate that metal sheathing.
The RFIDs in enhanced driver's licenses and PASS cards contain a silicon computer chip attached to a wire antenna, which transmits a unique identifier via radio waves when "awakened" by an electromagnetic reader.
The technology they use is designed to track products through the supply chain. These chips, known as EPCglobal Gen 2, are intended to release their data to any inquiring Gen 2 reader within a 30-foot radius.
The government says remotely readable ID cards transmit only RFID numbers, which correspond to records stored in secure government databases. Even if a hacker were to copy an RFID number onto a blank tag and place it into a counterfeit ID, officials say, the forger's face still wouldn't match the true cardholder's photo in the database.
Still, computer experts say government databases can be hacked. Others worry about a day when hackers might deploy readers at "chokepoints," such as checkout lines, skim RFID numbers from people's driver's licenses, then pair those numbers to personal data skimmed from chipped credit cards (though credit cards are harder to skim). They imagine stalkers skimming RFID tags to track their targets, and fear government agents compiling chip numbers at peace rallies, mosques or gun shows, simply by strolling through a crowd with a reader.
Others worry more about the linking of chips with other identification methods, including biometric technologies, such as facial recognition.
Should biometrics be coupled with RFID, "governments will have, for the first time in history, the means to identify, monitor and track citizens anywhere in the world in real time," says Mark Lerner, spokesman for the Constitutional Alliance, a network of nonprofit groups, lawmakers and citizens opposed to remotely readable identity and travel documents.
The International Civil Aviation Organization, the U.N. agency that sets global standards for passports, now calls for facial recognition in all e-passports.
http://apnews.myway.com/article/20090712/D99CRDAG0.html

Gay couple detained near Mormon plaza after kiss
SALT LAKE CITY – A gay couple say they were detained by security guards on a plaza owned by the Mormon church and later cited by police, claiming it stemmed from a kiss on the cheek.
The Church of Jesus Christ of Latter-day Saints said that the men became argumentative and refused to leave after being asked to stop their "inappropriate behavior." The men say they were targeted because they are gay.
Matt Aune said he and his partner, Derek Jones, were walking home from a concert nearby on Thursday night, cutting through the plaza near the Salt Lake City Mormon temple.
Aune, 28, said he gave Jones, 25, a hug and kiss and that the two were then approached by a security guard, who asked them to leave, telling them they were being inappropriate and that public displays of affection aren't allowed on the property. He said other guards arrived and the men were handcuffed.
"We asked what we were doing wrong," Aune told The Associated Press.
Church spokeswoman Kim Farah said in a statement Friday that the men were "politely asked to stop engaging in inappropriate behavior — just as any other couple would have been."
"They became argumentative and used profanity and refused to leave the property," she said. The church did not immediately respond to a request for more comment.
Police later arrived and both men were cited with misdemeanor trespassing, Salt Lake City Police Sgt. Robin Snyder said.
"It doesn't matter what they were asked to leave for," Snyder said. "If they are asked to leave and don't they are ... trespassing."
The church has been the target of protests over its support of a ban on gay marriage in California.
http://news.yahoo.com/s/ap/20090711/ap_on_re_us/us_mormon_church_trespassing_1

Mosquito pools test positive for West Nile virus
July 11, 2009 - 5:04pm
WASHINGTON (AP) - D.C. Department of Health officials say three mosquito pools have tested positive for the West Nile virus.
Officials said Saturday the mosquito pools were collected from a block on Washington Boulevard southwest, near Fort McNair.
No one in D.C. have been infected by West Nile virus this year. In 2008, six residents tested positive for the virus.
The health department recommends that residents eliminate mosquito breeding areas around their home by removing standing water.
http://www.wtop.com/?nid=596&sid=1715806

Eeyores news and view

Copyright laws threaten our online freedom
By Christian Engström Published: July 7 2009 18:10 Last updated: July 7 2009 18:10
If you search for Elvis Presley in Wikipedia, you will find a lot of text and a few pictures that have been cleared for distribution. But you will find no music and no film clips, due to copyright restrictions. What we think of as our common cultural heritage is not “ours” at all.
On MySpace and YouTube, creative people post audio and video remixes for others to enjoy, until they are replaced by take-down notices handed out by big film and record companies. Technology opens up possibilities; copyright law shuts them down.
EDITOR’S CHOICE
Curb on content threatens France Telecom - Jul-07.E-retailers find big brands hard to touch - Jul-07..This was never the intent. Copyright was meant to encourage culture, not restrict it. This is reason enough for reform. But the current regime has even more damaging effects. In order to uphold copyright laws, governments are beginning to restrict our right to communicate with each other in private, without being monitored.
File-sharing occurs whenever one individual sends a file to another. The only way to even try to limit this process is to monitor all communication between ordinary people. Despite the crackdown on Napster, Kazaa and other peer-to-peer services over the past decade, the volume of file-sharing has grown exponentially. Even if the authorities closed down all other possibilities, people could still send copyrighted files as attachments to e-mails or through private networks. If people start doing that, should we give the government the right to monitor all mail and all encrypted networks? Whenever there are ways of communicating in private, they will be used to share copyrighted material. If you want to stop people doing this, you must remove the right to communicate in private. There is no other option. Society has to make a choice.
The world is at a crossroads. The internet and new information technologies are so powerful that no matter what we do, society will change. But the direction has not been decided.
The technology could be used to create a Big Brother society beyond our nightmares, where governments and corporations monitor every detail of our lives. In the former East Germany, the government needed tens of thousands of employees to keep track of the citizens using typewriters, pencils and index cards. Today a computer can do the same thing a million times faster, at the push of a button. There are many politicians who want to push that button.
The same technology could instead be used to create a society that embraces spontaneity, collaboration and diversity. Where the citizens are no longer passive consumers being fed information and culture through one-way media, but are instead active participants collaborating on a journey into the future.
The internet it still in its infancy, but already we see fantastic things appearing as if by magic. Take Linux, the free computer operating system, or Wikipedia, the free encyclopedia. Witness the participatory culture of MySpace and YouTube, or the growth of the Pirate Bay, which makes the world’s culture easily available to anybody with an internet connection. But where technology opens up new possibilities, our intellectual property laws do their best to restrict them. Linux is held back by patents, the rest of the examples by copyright.
The public increasingly recognises the need for reform. That was why Piratpartiet – the Pirate party – won 7.1 per cent of the popular vote in Sweden in the European Union elections. This gave us a seat in the European parliament for the first time.
Our manifesto is to reform copyright laws and gradually abolish the patent system. We oppose mass surveillance and censorship on the net, as in the rest of society. We want to make the EU more democratic and transparent. This is our entire platform.
We intend to devote all our time and energy to protecting the fundamental civil liberties on the net and elsewhere. Seven per cent of Swedish voters agreed with us that it makes sense to put other political differences aside in order to ensure this.
Political decisions taken over the next five years are likely to set the course we take into the information society, and will affect the lives of millions for many years into the future. Will we let our fears lead us towards a dystopian Big Brother state, or will we have the courage and wisdom to choose an exciting future in a free and open society?
The information revolution is happening here and now. It is up to us to decide what future we want.
The writer is the Pirate party’s member of the European parliament
http://www.ft.com/cms/s/0/87c523a4-6b18-11de-861d-00144feabdc0.html

U.S. mortgage fraud 'rampant' and growing-FBISAN FRANCISCO, July 7 (Reuters) - U.S. mortgage fraud reports jumped 36 percent last year as desperate homeowners and industry professionals tried to maintain their standard of living from the boom years, the FBI said on Tuesday.
Suspicious activity reports rose to 63,713 in fiscal year 2008, which ended last September, from 46,717 the year before. California and Florida, centers of the housing bust, had the highest numbers of suspicious reports as foreclosures jumped, the stock market dropped and credit dried up.
"These combined factors uncovered and fueled a rampant mortgage fraud climate fraught with opportunistic participants desperate to maintain or increase their current standard of living," the Federal Bureau of Investigation said in its report.
"Industry employees sought to maintain the high standard of living they enjoyed during the boom years of the real estate market and overextended mortgage holders were often desperate to reduce or eliminate their bloated mortgage payments," it said.
http://www.reuters.com/article/bondsNews/idUSN0751853920090707

White House among targets of sweeping cyber attack
WASHINGTON (AP) -- The powerful attack that overwhelmed computers at U.S. and South Korean government agencies for days was even broader than realized, also targeting the White House, the Pentagon and the New York Stock Exchange.
An early analysis of the malicious software used in the attack found its targets also included the National Security Agency, Homeland Security Department, State Department, the Nasdaq stock market and The Washington Post. Many of the organizations appeared to successfully blunt the sustained attacks.
The Associated Press obtained the target list from security experts analyzing the attack. It was not immediately clear who might be responsible or what their motives were.
The attack was remarkably successful. Some of the affected government Web sites -- such as the Treasury Department, Federal Trade Commission and Secret Service -- were still reporting problems days after it started during the July 4 holiday.
http://finance.yahoo.com/news/Government-Web-sites-attacked-apf-1342411279.html?x=0&.v=5

Two Canada hog workers hit by new non-pandemic flu
SASKATOON, Saskatchewan, July 7 (Reuters) - Two farm workers in Western Canada have become infected with a new flu virus, health officials said on Tuesday, stressing the strain was not related to the H1N1 pandemic.
The two workers, both employees at a hog barn operation in the province of Saskatchewan, have fully recovered. A third case is under investigation.
The new virus contains genes from a seasonal human H1N1 flu strain and a flu virus common in the swine population called triple reassortant H3N2, said Dr. Greg Douglas, Saskatchewan's chief veterinary officer.
The virus is not connected to the H1N1 strain, sometimes referred to as swine flu, that has killed more than 400 people worldwide. That strain is believed to have begun in Mexico and has been labeled a pandemic by the World Health Organization.
There are no signs of increased illness in the hog herd, Douglas added.
"This is a human health issue," he said. "Saskatchewan pork continues to be safe ... This is not a food safety issue at all."
Concern about the issue of pigs becoming infected with the H1N1 flu has been heightened in Canada since a herd in Alberta became infected in April. A human worker who had visited Mexico was initially suspected as the source but was later ruled out.
The Saskatchewan farm is not under quarantine, but the owner has agreed not to move the pigs, said Dr. Frank Plummer, chief science adviser for the Public Health Agency of Canada.
The virus would likely not have been detected at all if not for heightened influenza testing as a result of the pandemic, Plummer said.
"Any time there's a new influenza A strain, we have to be concerned about it, but these events occur and are almost always dead ends," he said.
All workers on the hog farm are being vaccinated. Douglas said he expects the hogs will eventually go to slaughter as they normally would.
The workers have been in Saskatchewan for about one year and had not recently traveled, said Dr. Moira McKinnon, Saskatchewan's chief medical officer.
Plummer said the new virus was likely transmitted from the pigs to the workers, but said the source of transmission of the pandemic H1N1 virus on the Alberta hog farm, which was quarantined in April, was probably human.
More than a dozen countries have banned Canadian hogs or pork since the quarantine.
Bob Harding, executive director of the Canadian Swine Health Board, said there is concern that markets could misinterpret the new virus's connection to swine.
http://www.alertnet.org/thenews/newsdesk/N08342126.htm

Eeyores news and view

Plan to protect D.C. from nuke EMP attack
Defense initiative focuses on saving government
Posted: June 25, 2009 12:00 am Eastern © 2009 WorldNetDaily
Editor's Note: The following report is excerpted from Joseph Farah's G2 Bulletin, the premium online newsletter published by the founder of WND. Subscriptions are $99 a year or, for monthly trials, just $9.95 per month for credit card users, and provide instant access for the complete reports.
Air Force One
WASHINGTON – As North Korea threatens a missile launch on Hawaii and Iran continues to develop its own nuclear war capabilities, President Obama has greenlighted a plan to save the federal government from the devastating capabilities of a nuclear electro-magnetic pulse attack on the U.S, according to a report in Joseph Farah's G2 Bulletin.
As WND has reported, a high-altitude nuclear EMP attack potentially could disrupt or damage electronic systems over much of the U.S., William Graham, chairman of the Commission to Assess the Threat to the United States From Electromagnetic Pulse Attack, told a hearing of the House Armed Services Committee in July 2008.
The commission concluded Iran is not only covertly developing nuclear weapons. Since 2005 Tehran has been testing ballistic missiles designed to destroy America's technical infrastructure, effectively neutralizing the world's lone superpower.
Detonated at a height of 60 to 500 kilometers above the continental U.S., one nuclear warhead could cripple the country – knocking out electrical power and circuit boards and rendering the U.S. domestic communications impotent.
Keep in touch with the most important breaking news stories about critical developments around the globe with Joseph Farah's G2 Bulletin, the premium, online intelligence news source edited and published by the founder of WND.
In 2005, the Senate Judiciary Subcommittee on Terrorism, Technology and Homeland Security chaired by Sen. John Kyl, R-Ariz., held a hearing on the EMP threat.
"An electromagnetic pulse (EMP) attack on the American homeland, said one of the distinguished scientists who testified at the hearing, is one of only a few ways that the United States could be defeated by its enemies – terrorist or otherwise," wrote Kyl. "And it is probably the easiest. A single Scud missile, carrying a single nuclear weapon, detonated at the appropriate altitude, would interact with the Earth's atmosphere, producing an electromagnetic pulse radiating down to the surface at the speed of light. Depending on the location and size of the blast, the effect would be to knock out already stressed power grids and other electrical systems across much or even all of the continental United States, for months if not years."
While few preparations have been made since 2005 to protect the American heartland, the Defense Information Systems Agency plans to install a presidential network in the Washington area this year that will be able to survive an attack by a nuclear weapon that generates a high-altitude electromagnetic pulse.
The agency started work on the network last year to install communications equipment resistant to damage by an EMP attack. The network was developed at the direction of the "National Security Presidential Directive on Survivable Senior Leadership Communications in a HEMP Environment." It features Promina network switches from Network Equipment Technologies Inc. and manage communications over a specially designed and deployed Voice over Internet Protocol network.
DISA developed the HEMP system, which includes upgrades to a UHF network serving senior leadership in the Washington area, as part of a National Emergency Action Decision Network to serve the president, secretary of defense and other senior leaders. John Garing, DISA chief information officer and director of strategic planning, said the network supports radio systems on helicopters and feeds into the HEMP network. Funding for all systems in the National Emergency Action Decision Network is pegged at less than $1 million.
The systems will be installed in ground installations and executive aircraft, including Air Force One, four VIP Boeing 757s and two VIP Boeing 737 aircraft.
DISA also asked for $49.5 million in its fiscal 2010 budget for the Crisis Management System, a "high-performance, closed network that provides classified multimedia teleconferencing for the president, Cabinet secretaries, designated agency directors and their staffs," budget documents noted.
http://wnd.com/index.php?fa=PAGE.view&pageId=102023

Well almost Judicial Restraint, i guess as close as we will come too it.
Court says strip search violated girl's rights
WASHINGTON — The Supreme Court's decision Thursday striking down the strip search of an eighth-grade girl for prescription-strength ibuprofen requires schools nationwide to weigh more carefully how intrusively they search for drugs.
By an 8-1 vote, the justices ruled that school officials in a rural Arizona district violated the Fourth Amendment rights of Savana Redding when they forced her to take off her clothes after an unverified tip that she had the pain relief pills. The court emphasized the difference between a routine search of a backpack and a search that exposes a student's private parts. Justice Clarence Thomas dissented.
The decision, which differs from signals the justices sent during oral arguments in April, also departs from a recent trend giving administrators wide latitude to search for drugs in schools.
Writing for the court, Justice David Souter said an official must have a "reasonable suspicion of danger" regarding the drugs sought and a belief they could be hidden in a student's underwear before making "the quantum leap from outer clothes and backpacks to exposure of intimate parts."
Matthew Wright, lawyer for the Safford school district, predicted the decision would have a "chilling effect" on administrators responding to threats of drugs. Francisco Negron, lawyer for the National School Boards Association, said the decision could be confusing for school officials, who typically lack formal training in drugs yet would have to consider whether the contraband they seek is dangerous enough to do to a strip search.
Savana Redding, who was 13 at the time of the search and is now 19, said, "I'm so glad that they recognized that my rights were violated. I don't want this to happen to anyone else." Her lawyer, Adam Wolf, a lawyer with the American Civil Liberties Union who argued the case, added, "Today's ruling affirms that schools are not constitutional dead zones."
In October 2003, after Assistant Principal Kerry Wilson heard from a student that Redding might have ibuprofen, he asked a school nurse and administration assistant, both women, to search Savana in the nurse's office. They asked her to take off her shirt and pants, then to pull out her bra and underpants to see whether she was hiding any pills.
No pills were found. Savana's mother, April Redding, sued, saying school officials breached Savana's rights under the Fourth Amendment protection from unreasonable searches. A lower U.S. appeals court ruled for Redding and said Safford officials were financially responsible for harm to her.
In affirming that her rights were violated, Souter said a strip search requires officials to have an "indication of danger (and) reason to suppose that Savana was carrying pills in her underwear."
Souter was joined by Chief Justice John Roberts and Justices John Paul Stevens, Antonin Scalia, Anthony Kennedy, Ruth Bader Ginsburg and Stephen Breyer and Samuel Alito. Dissenting Justice Thomas said the decision allows judges "to second-guess" officials trying to ensure student safety.
By a separate vote of 7-2, the court said that because rulings in this area of the law have not been clear, Safford officials are shielded from financial responsibility for their actions. Stevens and Ginsburg dissented from that part of the ruling in Safford Unified School District No. 1 v. Redding.
During oral arguments April 21, many justices voiced more sympathy for school administrators than for Redding. Several, including Souter and Roberts, appeared open to arguments that administrators need considerable leeway to look for drug abuse. Ginsburg was most forceful on the other side. In a concurring opinion Thursday, Ginsburg emphasized the humiliation Savana endured, including being forced to sit on a chair outside Wilson's office even after the search found no pills.
http://www.usatoday.com/news/washington/judicial/2009-06-25-scotus-strip-search_N.htm

US swine flu cases may have hit 1 million June 26, 2009 - 12:53am AP Medical Writer
ATLANTA (AP) - Swine flu has infected as many as 1 million Americans, U.S. health officials said Thursday, adding that 6 percent or more of some urban populations are infected. The estimate voiced by a government flu scientist Thursday was no surprise to the experts who have been closely watching the virus.
"We knew diagnosed cases were just the tip of the iceberg," said Dr. William Schaffner, a Vanderbilt University infectious diseases expert who was in Atlanta for the meeting of a vaccine advisory panel.
Lyn Finelli, a flu surveillance official with the Centers for Disease Control and Prevention, made the 1 million estimate in a presentation to the vaccine panel. The number is from mathematical modeling, based on surveys by health officials.
Regular seasonal flu sickens anywhere from 15 million to 60 million Americans each year.
The United States has roughly half the world's swine flu cases, with nearly 28,000 reported to the CDC so far. The U.S. count includes 3,065 hospitalizations and 127 deaths.
The percentage of cases hospitalized has been growing, but that may be due to closer scrutiny of very sick patients. It takes about three days from the time symptoms appear to hospitalization, Finelli said, and the average hospital stay has been three days.
Other health problems have been a factor in most cases: About one in three of the hospitalized cases had asthma, 16 percent diabetes, 12 percent have immune system problems and 11 percent chronic heart disease.
The numbers again highlight how the young seem to be particularly at risk of catching the new virus. But data also show that the flu has been more dangerous to adults who catch it.
The average age of swine flu patients is 12, the average age for hospitalized patients is 20, and for people who died, it was 37. It seems to be deadliest to people 65 and older, with deaths in more than 2 percent of elderly people infected, Finelli said.
Also at the meeting, CDC officials made projections about flu vaccines expected to be available to protect against both seasonal and swine flu this fall.
More than 25 million doses of seasonal flu vaccine should be available by early September, CDC officials and vaccine manufacturers said.
The same five manufacturers that make the seasonal vaccine are producing swine flu vaccine as well. As many as 60 million doses of vaccine to protect against the new virus could be ready by September, said Robin Robinson, an official with the federal agency that oversees vaccine manufacture and distribution. That prediction seemed a bit optimistic, others at the meeting said.
The vaccinations might be given as two shots, spaced 21 days apart. But the vaccine has to be tested before it's made available to the public.
http://wtop.com/?nid=106&sid=1661303

H1N1 / 6,000 Deaths / The Pandemic is Here
Those who dismiss H1N1 as a panic-fest are profoundly wrong - even the mild version in a country like Canada could kill thousands. And the nightmare scenario? That would be really scary
So it's here at last. After months of will-it-won't-it anticipation, H1N1 officially went pandemic on June 11.
Yet despite increasing numbers of cases in over 70 countries, many still think it a fuss over nothing: "What's the big deal? It's just ordinary flu." It is worrying that even Canadians are saying this, although they know from recent memory what it is to experience a big disease outbreak.
Many in Britain are saying the same thing. One high-profile commentator, Simon Jenkins in the Guardian newspaper, asserted that swine flu was a panic stoked in order "to posture and spend," saying that health scares such as this enable media-hungry doctors, public-health officials and drug companies to benefit by manipulating fright.
Those who dismiss H1N1 as a panic-fest are profoundly wrong. This "ordinary flu" might have real consequences to many Canadians.
Canada has an excellent flu vaccination program and good access to medical care. Nonetheless, 6,000 to 8,000 Canadians die of seasonal flu each year, mostly older people or those with other health problems. These are people's mothers and grandfathers, uncles and fathers. Ordinary flu causes a great many deaths, even in a country such as Canada.
Let's say that H1N1 continues to be mild and is no worse than seasonal flu. "Mild" means having up to five days feeling really unwell with fever, cough, sore throat and muscle aches, and then a further week before one feels able to return to work and normal life.
The old story about the difference between flu and a cold holds good: If a $50 bill is dropped outside your front door, if you've got a cold, you'll go pick it up; if you've got flu, not even $50 will get you out of bed.
This is a novel flu. While people over 50 seem to have some immunity, perhaps because of the Asian flu of 1957, those who are younger have not been exposed before and have no defences in place. Current H1N1 attack rates are about 20 per cent. That is, one in five people exposed to this new flu will come down with symptoms like the ones above; exposure can result from merely touching a surface where there are viruses, because someone else has touched it. Pretty much everyone who comes into contact with other people will be exposed to this flu, sooner or later.
4-PER-CENT IMPACT ON GDP
That means 20 per cent of the population becoming sick, with perhaps another 10 per cent of the working population home looking after them. Think about the effects on business, on transport, on day-to-day life, of so many people being off sick at the same time. Flu is estimated to have a 4-per-cent impact on a country's GDP.
And think about its effect on hospitals. Not on its effect on patients requiring intensive care, but its effect on staffing. A tanker drivers' strike in Britain bought our hospitals to a halt in less than a week. Why? Because schools didn't have fuel for heating and were closed, working mothers had to stay home to look after their children. Where are there are large proportion of working mothers? In nursing and allied health services.
There are 33 million people in Canada. At an attack rate of 20 per cent, six million people would develop flu. The death rate in Canada is currently tiny, at roughly 0.1 per cent (12 deaths, 4,905 cases). But 0.1 per cent of six million is 6,000. These 6,000 will not be just the old and the sick, whose deaths, extraordinarily, don't seem to greatly concern many commentators, but will include previously healthy twentysomethings (such as three of those admitted to intensive care units in Britain), pregnant women and a disproportionate number of those sections of the population that are genetically particularly susceptible. Such effects are already appearing in Canada with outbreaks of severe illness among previously healthy native people in Manitoba.
This is not scaremongering. This is reality.
Many people expect that all medical staff will turn up for work during a flu pandemic. Toronto's experience of SARS in 2003 shows that they won't, and cannot be made to do so. Many of them won't be able to, because they are looking after family at home, and some will fear catching flu and its effects. Normal hospital schedules will grind to a halt, meaning that far fewer elective procedures such as hip replacements and heart surgery can take place. It will inevitably cause deaths that should have been preventable. This is without the strain on services from many more people requiring respiratory support because of flu.
So why couldn't the hospital authorities make flu vaccines mandatory for health-care staff when they become available? Britain does not make this mandatory, and only 13 per cent of National Health Service Staff front-line staff voluntarily had seasonal flu vaccination in 2008-2009. Why? It's principally because staff think of flu as "ordinary," not something that causes severe illness. Recently, unvaccinated NHS staff were shown by Britain's Health Protection Agency to have been the cause of a major outbreak of flu among patients who were already critically ill in a hospital in Liverpool.
When people look upon the threat to themselves as "mild," they will not consider vaccination, which they feel has greater risks than the illness.
Playing in the background are current attitudes to vaccines, coloured by the long-running contention that the MMR vaccine is linked to autism, but also by the experience of swine flu in the United States in 1976.
THE FORT DIX PRECEDENT
In January, 1976, scores of army recruits at Fort Dix, N.J., complained of flu symptoms - not unusual at that time of year. But 18-year old Private David Lewis, with the bravado of youth, decided to ignore medical advice to go to bed; he went out on a strenuous all-night exercise in the bitter cold. At the end of the exercise, he collapsed. He died a few hours later. An autopsy revealed that his death was caused by a previously unknown variant of swine flu A/H1N1. But what really spooked the Centers for Disease Control was its similarity to the strain that had killed more than 40 million people across the world in 1918.
The CDC rightly decided to develop a swine-flu vaccine for use in the following flu season. But there were many production problems. It was on the point of being cancelled, when there was an outbreak of fatal pneumonia after the Pennsylvania convention of the American Legion. The media linked it with swine flu (although today it is known to have been what is called legionnaires' disease), and politicians joined in the clamour to push forward the swine-flu vaccination program.
The threat from swine flu was vastly exaggerated in the media, although it was already clear that the outbreak (which involved no more than 300 people) was over. President Gerald Ford took personal charge of a mass vaccination program, and it had deadly consequences.
With all manufacturing capacity devoted to swine flu, seasonal flu production stopped. That year, there was a particularly virulent strain of seasonal flu, and there were thousands more regular flu deaths than normal, largely in unvaccinated seniors. There was also the problem of vaccine side effects.
SIDE EFFECTS BECOME NUMEROUS
When millions of people are vaccinated, very rare side effects become numerous. About nine in every million of those vaccinated then developed Guillain-Barré syndrome, a paralytic disease. There were 500 cases and 25 deaths.
The batches may have been contaminated with a bacterium. In any case, the vaccination program was stopped, having only treated 24 per cent of the population.
This is not then. There are already thousands of cases, and vaccine technology is better than it was. But no vaccine is absolutely safe. There will be very rare side effects with new H1N1 vaccines too, and most have not yet been tested on children, who are one of the groups that are most likely to be vaccinated as a priority, because they seem to be especially affected. But people can only ever see risk from their own perspective.
It seems probable that, despite knowing that 6,000 or more Canadians might be prevented from dying and tens of thousands more prevented from having serious illness, people will concentrate on their own individual risks, with many choosing to remain unvaccinated. This places individuals at risk but also friends, family and loved ones and those who are unable to be vaccinated for one reason or another.
All this comes from a mild illness that many people think is not a risk and claim to be overhyped. Everyone should think again about the seriousness of pandemic flu.
Let us hope that the nightmare scenario of a new virus with the virulence of H5N1 (bird flu) and the transmissibility if H1N1 does not come to pass. That really would be scary.
http://www.theglobeandmail.com/news/opinions/h1n1-6000-deaths-the-pandemic-is-here/article1190655/

Dollar Falls on China Call for World Currency; Stocks Pare Gain
June 26 (Bloomberg) -- The dollar weakened and stocks pared their advance after China’s central bank reiterated a call for a “super sovereign currency” and said the country’s financial institutions face a tougher environment this year.
The Dollar Index that measures the currency’s performance against six trading partners fell as much as 0.8 percent at 1:01 p.m. in London after China’s central bank also said the International Monetary Fund should manage part of members’ foreign reserves. The Dow Jones Stoxx 600 Index of European shares added 0.3 percent, trimming an advance of as much as 1.3 percent. Standard & Poor’s 500 Index futures fell 0.2 percent.
China, the biggest foreign owner of U.S. Treasuries, cut its holdings of government notes and bonds by $4.4 billion to $763.5 billion in April, according to data released on June 15 in Washington. People’s Bank of China Governor Zhou Xiaochuan in March urged the IMF to expand the functions of its unit of account and move toward an international reserve currency to reduce dependence on the dollar.
“In the longer term there will be diversification among global central banks,” said Beat Siegenthaler, chief emerging markets strategist at TD Securities Ltd. in London. “These comments tend to remind traders of that, but there’s still a question about the time horizon.”
The Dollar Index fell below 80 as the People’s Bank of China said that the IMF relies on too few foreign currencies. The central bank was commenting in an assessment of the country’s financial situation at the end of 2008 posted on its Web site today.
Special Drawing Rights
Group of 20 leaders on April 2 gave approval for the IMF to raise $250 billion by issuing Special Drawing Rights, or SDRs, the artificial currency that the agency uses to settle accounts among its member nations. It also agreed to put another $500 billion into the IMF’s war chest.
"There’s a very strong case to be made for reducing the reliance on the dollar,” said Steven Barrow, a currency strategist with Standard Bank Plc in London. “But the market is making a mountain out of a mole hill. Among the BRIC countries, China seems the least positive about the idea. If they talk down the dollar they’re talking down a vast bulk of their assets.”
The asset quality and profitability of China’s financial institutions face challenges and the correction in the country’s property market may raise banks’ credit risks, the central bank also said today.
The yen also headed for a weekly loss against the euro. Japan’s benchmark interest rate is 0.1 percent and the U.S.’s is between zero and 0.25 percent, compared with 1 percent in the euro region and Norway’s 1.25 percent.
OECD Forecast
Today’s gains in European stocks trimmed the Stoxx 600’s second-straight weekly drop to 1.5 percent after a three-month, 36 percent rally drove price-earnings valuations to the highest level in five years. The Organization for Economic Cooperation and Development boosted its forecast for the economy of its 30 member nations for the first time in two years this week, while a U.S. government report today may show consumer spending rose in May for the first time in three months.
“Risk appetite is coming back,” Peter Redward, the head of Asian emerging-markets research at Barclays Plc in Singapore, said in an interview with Bloomberg Television. “We’re now seeing the effects of fiscal and monetary stimulus beginning to kick in and those themes are going to continue.”
Stocks gained in Asia and Europe after Bridgestone Corp., the world’s largest tiremaker, narrowed its loss forecast. Bridgestone gained 8.5 percent in Tokyo.
Emerging Markets
The MSCI Emerging Markets Index rose 1.8 percent. While the 22-country benchmark has dropped 1.2 percent this month, it’s headed for the best quarterly gain on record, up 34 percent since March.
OAO Lukoil, Russia’s second-biggest oil producer, advanced 1.6 percent as crude gained, while OAO GMK Norilsk Nickel, the country’s biggest mining company, added 6.7 percent as copper climbed 1.8 percent this week to $5,119 a metric ton on the London Metal Exchange. The Micex is recovering from a retreat this month that sent it down more than 20 percent from its June 1 peak, the world’s first benchmark equity index to enter a bear market since global stocks began rallying in March.
Crude oil for August delivery rose as much as 1.5 percent to $71.29 a barrel on the New York Mercantile Exchange after Nigerian militants said they attacked a Royal Dutch Shell Plc offshore oil field late yesterday, hours after an offer of an amnesty by President Umaru Yar’Adua.
New Zealand’s dollar weakened 0.3 percent versus the U.S. dollar after the nation’s statistics bureau said gross domestic product declined 1 percent in the first quarter. The median of 11 estimates in a Bloomberg News survey was for a 0.7 percent contraction.
U.S. Consumer Spending
A report at 8:30 a.m. in Washington will show consumer purchases in the U.S. increased 0.3 percent after falling 0.1 percent in April, according to the median forecast of 76 economists surveyed by Bloomberg News.
A U.S. report yesterday showed gross domestic product shrank last quarter at a 5.5 percent pace, slower than the 5.7 percent decrease previously estimated by the government.
Futures on the S&P 500 slid 0.3 percent today after the GDP report helped send the gauge up 2.1 percent yesterday.
Stocks and credit markets have rebounded since the U.S. government and Federal Reserve pledged $12.8 trillion to combat the first global recession in five decades and almost $1.5 trillion in losses and writedowns at financial firms from the collapse of subprime mortgages.
The cost of borrowing in dollars for three months in London fell below 0.6 percent for the first time today, according to the British Bankers’ Association. The London interbank offered rate, or Libor, that banks charge for three-month loans fell less than half a basis point to 0.598 percent.
Libor-OIS
The Libor-OIS spread, which measures banks’ reluctance to lend, has narrowed to 38 basis points, from a record 364 basis points in October, following the collapse of Lehman Brothers Holdings Inc. Analysts covering S&P 500 companies began to boost 2009 profit estimates for the first time this year in May as economists predicted the U.S. economy will start to expand next quarter, weekly data compiled by Bloomberg show.
Global market liquidity is at its strongest level since November, according to an index updated today by the Bank of England. The index, which measures market prices, including gaps between bid and offer prices, the ratio of returns to trading volumes, and spreads in the credit market, reached a low in April.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aLpv3.MFL1Oc

Eeyores news and view

Sign of the times, in which we are living in

Government Land-Grab Moves Forward
The nation took a step closer to the largest federal land grab in the nation’s history last week, according to the National Cattlemen’s Beef Association (NCBA).
That’s thanks to passage of the Clean Water Restoration Act (CWRA) by the Senate Environment and Public Works Committee.
In basic terms the CRWA (S. 787) would grant the federal government authority of all water – both navigable, which it now presides over, as well as non-navigable.
Without defining and confining federal authority to navigable waters, an NCBA spokesman said, “…the CWRA would expand federal regulatory control to unprecedented levels – essentially putting stock tanks, drainage ditches, any puddle or water feature found on family farms and ranches – potentially even ground water – under the regulatory strong-arm of the federal government.”
Though the bill was amended last week, NCBA officials explain, “The amendment is a smoke screen that allegedly takes care of agricultural concerns by exempting prior-converted croplands from federal jurisdiction. Cattle are generally not grazed on prior-converted croplands, so this amendment does nothing to mitigate the potential damage to livestock production from this legislation. The amendment is a diversion from the real issue, which is the removal of the word ‘navigable’ from the definition of waters.”
NCBA and Public Lands Council oppose the legislation because it obviously infringes on private property rights, but also because it limits the state partnerships and flexibility that have made the current Clean Water Act successful.
http://beefmagazine.com/beefstockertrends/0623-government-land-grab-moves-forward/

On Nixon Tapes, Ambivalence Over Abortion, Not Watergate
WASHINGTON — On Jan. 23, 1973, when the Supreme Court struck down laws criminalizing abortion in Roe v. Wade, President Richard M. Nixon made no public statement. But privately, newly released tapes reveal, he expressed ambivalence.
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Nixon worried that greater access to abortions would foster “permissiveness,” and said that “it breaks the family.” But he also saw a need for abortion in some cases — like interracial pregnancies, he said.
“There are times when an abortion is necessary. I know that. When you have a black and a white,” he told an aide, before adding, “Or a rape.”
Nine months later, Nixon forced the firing of the special prosecutor looking into the Watergate affair, Archibald Cox, and prompted the resignations of Attorney General Elliot L. Richardson and Deputy Attorney General William D. Ruckelshaus. The next day, Ronald Reagan, who was then governor of California and would later be president, told the White House that he approved. Reagan said the action, which would become known as the “Saturday Night Massacre,” was “probably the best thing that ever happened — none of them belong where they were,” according to a Nixon aide’s notes of the private conversation.
Those disclosures were among the revelations in more than 150 hours of tape and 30,000 pages of documents made public on Tuesday by the Nixon Presidential Library, a part of the National Archives. The audio files were posted online, as were a sampling of the documents.
The tapes were recorded by the secret microphones in the Oval Office from January and February 1973. They shed new light on an intense moment in American history, including Nixon’s second inauguration, the Vietnam War cease-fire, and the trial of seven men over the break-in at the Democrats’ headquarters at the Watergate complex amid mounting revelations about their ties to the White House.
The tapes also capture more mundane details of life in the White House — conversations about what to pack for a trip, when to schedule a trip to the barber, whether the president’s wife would enjoy going to Trader Vic’s for dinner.
Most segments of the tapes relating to the Watergate scandal, which would lead to Nixon’s resignation 20 months later, have already been released. But there are some new materials that were previously held back because the audio quality was so poor that archives officials could not be certain whether they contained discussion of any classified topics. Improvements in audio technology have allowed archives staff to clear additional ones.
They include a Jan. 5, 1973, conversation between Nixon and his aide Charles W. Colson in which they discussed the possibility of granting clemency to E. Howard Hunt Jr., one of the Watergate conspirators, according to a log compiled by archives staff. Scholars say the same topic was addressed in several other tapes that were previously made public.
The documents also include nine pages of handwritten notes by a domestic policy aide about plans for what the White House would say about the dismissal of the Watergate special prosecutor, Mr. Cox.
The tapes also provide new material about the circumstances surrounding the Paris treaty to end the United States’ military involvement in Vietnam.
A call between Nixon and Mr. Colson just after midnight on Jan. 20 showed that Nixon anticipated, when the treaty was announced, that he would be vindicated for continuing to bomb North Vietnam. He especially relished the hit that he believed members of Congress who opposed the war — whose public statements he pronounced “treasonable” — would suffer.
Several conversations center on the pressure Nixon placed on South Vietnam’s president, Nguyen Van Thieu, to accept the cease-fire agreement. Ken Hughes, a Nixon scholar and research fellow at the Presidential Recordings Project at the University of Virginia, said he was struck by listening on one of the new tapes to Nixon’s telling his national security adviser, Henry A. Kissinger, that to get Thieu to sign the treaty, he would “cut off his head if necessary.”
Mr. Hughes said the conversation bolstered his view that Nixon, Thieu and Mr. Kissinger knew at the time that the cease-fire could not endure, and that it was not “peace with honor,” as Nixon described it, so much as a face-saving way for the United States to get out of the war. In 1975, North Vietnam would violate the cease-fire and conquer South Vietnam.
The tapes also include a phone call from February 1973 between Nixon and the evangelist Billy Graham, during which Mr. Graham complained that Jewish-American leaders were opposing efforts to promote evangelical Christianity, like Campus Crusade. The two men agreed that the Jewish leaders risked setting off anti-Semitic sentiment.
“What I really think is deep down in this country, there is a lot of anti-Semitism, and all this is going to do is stir it up,” Nixon said.
At another point he said: “It may be they have a death wish. You know that’s been the problem with our Jewish friends for centuries.”
The documents also include three newly declassified pages from a National Security Council brief discussing secret Israeli efforts to build a nuclear weapon.
http://www.nytimes.com/2009/06/24/us/politics/24nixon.html?_r=1

Md. officials announce swine flu-related death
June 23, 2009 - 2:30pm
BALTIMORE - Maryland health officials are announcing the state's first confirmed swine-flu related death.
The Department of Health and Mental Hygiene said Tuesday that an elderly Baltimore-area resident with a swine flu infection and serious underlying medical conditions has died.
Health officials say that swine flu was a contributing factor in the death, but they will not release personal details about the case, including specific underlying health conditions.
The Centers for Disease Control and Prevention reports that 87 people who contracted swine flu have died.
Maryland officials have confirmed 370 swine flu cases, but say it is likely a fraction of the total cases statewide as many people are not tested and recover within a week.
http://wtop.com/?nid=25&sid=1702853

NKorea threatens US; world anticipates missile
SEOUL, South Korea – North Korea threatened Wednesday to wipe the United States off the map as Washington and its allies watched for signs the regime will launch a series of missiles in the coming days.
Off China's coast, a U.S. destroyer was tailing a North Korean ship suspected of transporting illicit weapons to Myanmar in what could be the first test of U.N. sanctions passed to punish the nation for an underground nuclear test last month.
The Kang Nam left the North Korean port of Nampo a week ago with the USS John S. McCain close behind. The ship, accused of transporting banned goods in the past, is believed bound for Myanmar, according to South Korean and U.S. officials.
The new U.N. Security Council resolution requires member states to seek permission to inspect suspicious cargo. North Korea has said it would consider interception a declaration of war and on Wednesday accused the U.S. of seeking to provoke another Korean War.
"If the U.S. imperialists start another war, the army and people of Korea will ... wipe out the aggressors on the globe once and for all," the official Korean Central News Agency said.
The warning came on the eve of the 59th anniversary of the start of the three-year Korean War, which ended in a truce in 1953, not a peace treaty, leaving the peninsula in state of war.
The U.S. has 28,500 troops in South Korea to protect against an outbreak of hostilities.
Tensions have been high since North Korea launched a long-range rocket in April and then conducted its second underground atomic test on May 25.
Reacting to U.N. condemnation of that test, North Korea walked away from nuclear disarmament talks and warned it would fire a long-range missile.
North Korea has banned ships from the waters off its east coast starting Thursday through July 10 for military exercises, Japan's Coast Guard said.
South Korea's Yonhap news agency reported Wednesday that the North may fire a Scud missile with a range of up to 310 miles (500 kilometers) or a short-range ground-to-ship missile with a range of 100 miles (160 kilometers) during the no-sail period.
A senior South Korean government official said the no-sail ban is believed connected to North Korean plans to fire short- or mid-range missiles. He spoke on condition of anonymity, citing department policy.
U.S. defense and counterproliferation officials in Washington said they also expected the North to launch short- to medium-range missiles. The officials spoke on condition of anonymity to discuss sensitive intelligence.
South Korea will expedite the introduction of high-tech unmanned aerial surveillance systems and "bunker-buster" bombs in response to North Korea's provocations, the Chosun Ilbo newspaper said, citing unidentified ruling party members.
Meanwhile, a flurry of diplomatic efforts were under way to try getting North Korea to return to disarmament talks.
Russia's top nuclear envoy, Alexei Borodavkin, said after meeting with his South Korean counterpart that Moscow is open to other formats for discussion since Pyongyang has pulled out of formal six-nation negotiations.
In Beijing, top U.S. and Chinese defense officials also discussed North Korea. U.S. Defense Undersecretary Michele Flournoy was heading next to Tokyo and Seoul for talks.
South Korea has proposed high-level "consultations" to discuss North Korea with the U.S., Russia, China and Japan.
http://news.yahoo.com/s/ap/20090624/ap_on_re_as/as_koreas_nuclear_91

Eeyore's News and view

Swine flu 'could infect up to half the population' Health authorities told to set up testing and drug distribution centres in case of autumn outbreak By Jonathan Owen
Sunday, 21 June 2009
Primary care trusts are to set up anti-viral drug distribution centres and swine flu testing clinics amid fears that the infection could spread out of control.
The Chief Medical Officer, Sir Liam Donaldson, wrote to health authorities last week urging hospitals to test all patients who show signs of flu-like symptoms. He wrote: "Transmission from person to person in this country is increasingly common. There is evidence that sporadic cases are arising with no apparent link either to cases elsewhere in the UK or to travel abroad."
The letter followed an earlier warning from Sir Liam that millions of Britons could fall victim to swine flu in the coming months. Government officials admitted last night that illness rates from the virus could reach 50 per cent.
Primary care trusts are now being briefed to expect that the pandemic could affect as much as 40 per cent of the workforce before the end of the year, with many worried that there could be a surge of cases in the autumn, according to health industry sources.
The Department of Health sought to reassure the public last night. A spokesman said: "Previous pandemics have seen total illness levels of 25-35 per cent. So our plans are as robust as possible, we have based them on illness rates of 50 per cent, though we do not anticipate it being this high in the current pandemic. Based on this figure, the workforce could be reduced by 15-20 per cent at the pandemic's peak. In the unlikely event that every school closed, this could rise to 35 per cent." He said it was impossible to predict when the pandemic would peak, but added: "As part of ongoing planning, the NHS is being asked to ensure that antiviral collection points could, if needed, be put into action in a week."
Keen to avoid panic, the Government is careful to present official statistics showing "laboratory-confirmed" cases, which currently stand at 2,244. Yet the true scale of infections is far higher than headline figures suggest. The total number of cases either confirmed by laboratory tests or "clinically presumed" currently stands at 3,725.
Almost 400 cases of swine flu in Britain have occurred as a result of in-country transmission, according to latest figures from the European Centre for Disease Control. The virus is continuing to gain ground, with a number of people falling ill without having been abroad or in contact with previously confirmed cases – a signal that transmission is "growing in some areas of the country", according to the Health Protection Agency. The HPA said: "We would need to have a significant number of people where you really don't know how they have got it for it to be classified as sustained community transmission. We are getting closer to that, but are not there yet."
This comes a week after Jacqui Fleming, 38, of Glasgow, became the first person to die from swine flu outside North America. Since then, health officials in Birmingham have said they can no longer contain the spread of the virus, and in Glasgow, a series of swine flu testing clinics have been set up.
Meanwhile, calls to NHS hotlines have almost doubled in the past week. Latest figures from NHS Direct reveal that 2,356 calls about swine flu were made on Thursday 18 June, up from 1,280 a week earlier.
Under a new scheme that began in June, hundreds of people calling NHS Direct about swine flu have been sent swab kits to return for testing.
Economic toll: Pandemic to cost Britain £42bn
£42bn losses are predicted to hit Britain as a result of a three per cent fall in gross domestic product (GDP) due to the swine flu pandemic, according to a new report from the Oxford Economics think tank, due to be released tomorrow. Researchers claim that swine flu could threaten already fragile businesses and put further strains on financial markets in what could become a "vicious cycle that postpones the recovery".
Deflation is a "significant risk" as a result of the pandemic's impact on the economy – putting back economic recovery by two years, says the report. The predictions are based on a 30 per cent infection rate, should a pandemic begin in October and last for six months.
A $2.5 trillion cut in global GDP is a possibility – with a flu outbreak in the autumn hitting the world economy just as it starts to recover from the credit crunch.
http://www.independent.co.uk/life-style/health-and-families/health-news/swine-flu-could-infect-up-to-half-the-population-1711552.html


Prof. Dr. Sigmundur Gudbjarnason and associates’ research carried out since 1992 reveals that the seeds and leaves of the Icelandic variety of Angelica archangelica contain potent bioactive compounds that help prevent viral infections, such as cold and flu.
The compounds found in the Icelandic angelica herb are known to restrict viral proliferation and strengthen the body against infection by viruses, according to Dr. Gudbjarnason, head of research and development at SagaMedica and former President of the University of Iceland.
What can we learn from the 1918 flu pandemic to help prevent Influenza A (swine flu)?
Dr. Gudbjarnason says, “There are several important antiviral compounds in Angelica archangelica that might be important in prevention of viral infections. This should be considered if the Influenza A becomes a more severe epidemic and flu medication becomes scarce”
During the time of the Spanish influenza (1), there are accounts of Angelica archangelica being used as flu treatment in Denmark. Recent studies linking the origin of the swine flu virus to the Spanish influenza (2) of 1918 further suggest that the herb may prove to be an effective prophylactic for swine flu prevention people can use to avoid infection if the Influenza A virus becomes more severe.
Preventing colds and flu with natural herbs
Icelandic Angelica archangelica provides the basis for a variety of supplements from SagaMedica.
Herbal remedies SagaPro and Voxis lozenges are made using angelica leaf and therefore contain the antiviral compounds in question. They may be used to prevent viral infection.
More information at www.sagamedica.com
http://www.icenews.is/index.php/2009/06/16/icelandic-angelica-prevention-for-swine-flu

Is this the death of the dollar?
After two smugglers were stopped last week with what at first appeared to be $134bn in US state bonds, the tension and paranoia surrounding the fate of the dollar hit a new high.
By Edmund Conway Published: 7:32PM BST 20 Jun 2009
Border guards in Chiasso see plenty of smugglers and plenty of false-bottomed suitcases, but no one in the town, which straddles the Italian-Swiss frontier, had ever seen anything like this. Trussed up in front of the police in the train station were two Japanese men, and beside them a suitcase with a booty unlike any other. Concealed at the bottom of the bag were some rather incredible sheets of paper. The documents were apparently dollar-denominated US government bonds with a face value of a staggering $134bn (£81bn).
How on earth did these two men, who at first refused to identify themselves, come to be there, trying to ride the train into Switzerland carrying bonds worth more than the gross domestic product of Singapore? If the bonds were genuine, the pair would have been America's fourth-biggest creditor, ahead of the UK and just behind Russia. No sooner had the story leaked out from the Italian lakes region last week than it sparked a panoply of conspiracy tales. But one resounded more than any other: that the men were agents of the Japanese finance ministry, in the country for the G8 meeting, making a surreptitious journey into Switzerland to sell off one small chunk of the massive mountain of US bonds stacked up in the Japanese Treasury vaults.
In the event, late last week American officials confirmed that the notes were forgeries. The men, it appeared, were nothing more than ambitious scamsters. But many remain unconvinced. And whether fake or otherwise, the story underlines one important point about the world economy at the moment: that the tension and paranoia surrounding the fate of the US dollar has hit a new high. It went to the heart of the big question: will the central bankers in Japan, China and elsewhere continue to support the greenback even in the wake of the worst financial crisis in modern history, or will they abandon it as America's economic hegemony dissipates?
Dollar obituaries are nothing new. The currency has been presumed dead more times than Shane Macgowan. But like the lead singer of The Pogues, the greenback has somehow withstood repeated knocks and scrapes over the years and lived on, battered, bruised and a couple of teeth the lighter, to fight another day. In the 1970s and 1980s there were plenty predicting its demise, although at that point the main challenger was the Japanese yen. And in the years preceding this crisis, economists and investors including Peter Schiff and George Soros were lining up to declare the dollar's demise as the world's reserve currency. In the late 1990s, the creation of the euro gave dollar sceptics another stick to beat the currency with, and no doubt the European currency has claimed some of the prominence in its first decade.
Now, following the collapse of the global financial system, those warnings have become louder still, and ever more difficult to dismiss – because this time around there are threatening noises coming from those who actually have the power to do something about it. First came a paper from Zhou Xiaochuan, the governor of the People's Bank of China (PBoC), a couple of months ago, positing the idea of introducing the special drawing right (SDR) – a kind of internal currency at the International Monetary Fund (IMF) – as an international reserve currency. These calls were then repeated, with more force, by the Russian president, Dmitry Medvedev, who last week declared that the world needed new reserve currencies in addition to the dollar.
And this time around, the dollar is most certainly suffering. Since 2002 its trade-weighted strength – calculated against a basket of other currencies – has fallen by more than a quarter, from 112 to 81 points. In the same period, the proportion of dollars held by reserve managers in leading central banks has also taken a dive. According to figures from the IMF, confirmed holdings of dollars in government vaults, from Beijing and Tokyo to London and Paris, fell from 71pc of reserves to 64.5pc between 2002 and 2008.
However, detecting what is really happening in the world of foreign exchange reserves is notoriously closer to an art than a science. For instance, figures from April seemed to suggest a fall in China's holdings of US Treasuries – something 'dollapocalypticists' pounced on at the time. But according to Brad Setser of the Council on Foreign Relations, the country was merely rejigging its Treasury portfolio rather than liquidating parts of it. In such an opaque world it is little wonder the conspiracy theories over those two Japanese smugglers show little sign of dissipating.
Nonetheless, for US Treasury Secretary Tim Geithner, who has inherited his predecessors' role as dollar wallah-in-chief, the currency's travails have made it all the more difficult for him to repeat the mantra that he "believes in a strong dollar" while keeping a straight face. Indeed, when he tried to insist at a university lecture in Beijing earlier this month that "Chinese financial assets are very safe," it drew floods of laughter from the audience.
He wasn't playing for laughs, but the irony of the situation is plain to see. If there were a textbook list of actions one could take to weaken a currency, the US (alongside most other developed nations) would be following it to the letter. It has cut interest rates to a whisker above zero; it has engaged in quantitative easing, pumping cash directly into the economy; it has committed to spending trillions of dollars on a fiscal stimulus package designed to pull the country out of recession; it has pledged tacitly to support its stricken banks so that no major institution is allowed to collapse. In any normal circumstances, actions like these would hammer a currency.
According to Stephen Jen of BlueGold Capital Management: "People are having second thoughts not simply because they don't like the dollar, but they are having second thoughts about whether US assets are obviously the strongest assets to own."
Like everything else, the currency's fate depends on how well the US authorities manage the crisis. The US is balanced on a knife-edge between possible Japan-style deflation as the weight of all its debts bear down on it and potential inflation as the force of all its powerful stimulus measures take root. No one knows for sure which way it will fall, but neither would be particularly good for the currency, and by extension for those who hold much in the way of dollar assets.
And China and all other major central banks which have trillions of dollars in their vaults, face something of a dilemma. Any fall in the greenback will cause the value of their investments to slide. Even if they wanted to exit, there seems no easy way of doing so without provoking some serious self-harm. Indeed, according to Olivier Accominotti, a PhD economist at Paris's Sciences Po university, the situation is not unlike that faced by France in the 1920s, as it sought to reduce its massive sterling reserves. The Bank of France found itself in a "sterling trap" in which it "could not continue selling pounds without precipitating a sterling collapse and a huge exchange loss for itself".
Neil Mellor, of Bank of New York Mellon, said: "We've got a situation where Geithner is smiling and has no choice but to stress the credibility and stability of the US financial and economic system, while the creditors [such as the Chinese] smile back and say they believe him, while at the same time giving hand signals to their reserve managers to get rid of these things."
Rather like the brinksmanship on display throughout the Cold War, it is a dilemma which applies itself to game theory. Both sides know that the dollar is set to weaken, but both could be set to suffer if they both allowed it to collapse at the same time. "If you are the Chinese it is in your interest to play the game – you've got a lot of dollars at stake – but in the long run you surely want to reduce your holdings and diversify them at the margins," says Mellor.
Still, with every passing week, the conjunction of different warning signals for the US currency seems to evolve and intensify. Recently, the alarm bell ringing most loudly has been the increase in yields on US Treasuries – a sign, some fear, of acute nervousness among institutional investors about the sheer scale of the cash the Obama administration is planning to borrow in coming years. The Federal Reserve's meeting next week is likely to be watched attentively by everyone with a stake in the game, as the central bank indicates whether it is planning to plough more dollars of newly-created cash into the economy.
But while the debate fixates on the greenback, the issues at heart here go far deeper. The dollar's fate is intertwined with that of the global economy. America is on the brink of losing its economic superpower status, which it will have to share with China at least, if not others, in the coming years. Holding such a position confers important responsibilities, none of which is more symbolic than providing the world's reserve currency – the currency against which all major commodities are denominated, and the de facto international unit of exchange in trade and finance.
It was a position enjoyed by UK sterling during the first waves of globalisation in the Victorian era and the final decades of the British Empire. Eventually, around the time of the Second World War, the dollar inherited the mantle. At first this was something enshrined in the Bretton Woods agreement of 1944, which fixed world currencies to the dollar, but although that system broke down in the 1960s and 1970s, it has remained the de facto currency of choice.
In a globalised world, with trade being carried out between hundreds of different nations by thousands of different companies, having an international standard makes sense: it enables traders to exchange goods more quickly and efficiently than they would have done otherwise. It may be invisible to us, but the vast majority of foreign exchange transactions – particularly those between smaller nations – involve the dollar. Exchange your sterling for Thai baht and you're actually swapping pounds for dollars for baht, whatever the exchange booth says. Even the much-vaunted exchange arrangements by the Brazilian and Chinese are designed not to disrupt these foundations, but merely to smooth things over for importers and exporters.
But a by-product of the dollar's dominance has been the skewing of the world's monetary system. By dint of having this blessed position, the US has been able to finance ever-larger current account and fiscal deficits, with both the government and the public borrowing from overseas, at cheap rates of interest. It has been able to sell US Treasuries at interest rates that other countries can only dream of because of this position as reserve currency. It has had a captive consumer – both because its government bonds are something of a safe haven and because those wishing to peg their currencies against the dollar and enhance their trade flows have little choice but to buy US Treasuries.
And this mutated international monetary system that has evolved since the 1960s is largely responsible for the crisis into which the world has tipped. Because it was able to borrow off other countries at such low rates without enduring the market punishment – in other words higher interest rates – America was able to build up massive current account deficits which poured a record amount of debt throughout its economy, which manifested itself in the financial crisis.
Indeed, as Mervyn King said in a speech earlier this year: "At the heart of the crisis was the problem identified but not solved at Bretton Woods – the need to impose symmetric obligations on countries that run persistent current account surpluses and not just on countries that run deficits. From that failure stemmed a chain of events, no one of which alone appeared to threaten stability, but which taken together led to the worst financial crisis any of us can recall."
When the PBoC's Zhou referred to the SDRs he was not merely questioning the dollar's pre-eminence. He was indicating something far more radical – that China supports plans for a new Bretton Woods-style agreement to manage the flows of cash around the world. At that seminal conference in 1944, John Maynard Keynes's original idea, which was watered down by Harry Dexter White of the US Treasury, was for an international reserve currency, Bancor, fixed against a basket of 30 currencies, and that countries would be penalised if their current accounts swung too far into surplus or deficit. It is an idea which is now being dusted off from history books by officials in finance ministries around the world, including in China.
Such a radical shake-up would cause earthquakes in the currency markets, a prospect which perhaps makes it unlikely. So in the absence of such a deal, how is the dollar's role likely to evolve in the coming years? The short answer is that no one should expect it to lose its reserve currency status any time soon. It took around half a century for Britain to cede this position to the US, even after being overtaken in true economic might.
One possibility is that the SDR may be used increasingly as a means of denominating assets in accounts, but this is something which would take place gradually, over a course of some years. But even if that is a bridge towards a multi-polar world, in which other currencies vie with the dollar for influence, it will take some time – perhaps 30 years or more, according to Stephen Jen. "People should look at history," he said, referring to sterling's pre-eminence in the first part of the 20th century. "There's a real incumbency advantage."
Jim O'Neill, chief economist at Goldman Sachs, sees the next few years as something of a "vacuum period".
"The BRIC countries [Brazil, Russia, India and China] are becoming so much more important, while the G7, including the US declines, which raises issues about the degree of dominance of the dollar. The problem is that the currencies of the BRICS are the ones that matter, but they won't let you export or use their currencies.
"Until we see another five years' of evidence over whether China is a more consumer-driven economy, becoming bigger and bigger, and whether the euro can have a successful second decade, the dollar looks set to remain dominant."
China has made some hints about loosening its hold over the yuan in recent months, but these are only early manoeuvres. A second step would be to allow the yuan to become a part of the SDR – whose own value is determined by those of a basket of currencies including the dollar, pound and euro. As Jen adds, there are certain prerequisites any contender to the crown of world reserve currency needs in its pocket.
"We have to ask this question: is Russia going to provide asset market that will be as liquid, reliable property rights, the rule of law, currency convertibility and so on? Will we see the same from the likes of China? Their task is very daunting."
Referring to the forged Treasury bonds picked up on the Japanese smugglers on the Swiss border, he adds: "There is a message here: we haven't heard much about anyone counterfeiting roubles. That is probably telling you something."
http://www.telegraph.co.uk/finance/economics/5586543/Is-this-the-death-of-the-dollar.html

US regulators close 3 small banks
June 20, 2009 - 2:42pm By MADLEN READ AP Business Writer
NEW YORK (AP) - Regulators have shut down three more small banks, pushing this year's tally of failed banks to 40.
One bank closed Friday was in North Carolina, another in Georgia, and the third was in Kansas. The wave of bank failures is expected to continue throughout the year as the weak housing market and rising unemployment rate cause more borrowers to default on their loans.
The Federal Deposit Insurance Corp. was appointed receiver of Cooperative Bank of Wilmington, N.C., Southern Community Bank of Fayetteville, Ga., and First National Bank of Anthony in Anthony, Kan.
The FDIC agreed to have First Bank of Troy, N.C., take over Cooperative Bank's 24 branches and nearly all of its assets. Cooperative Bank had total assets of $970 million and total deposits of $774 million.
United Community Bank of Blairsville, Ga., will assume Southern Community bank's five branches, its $307 million in deposits, and nearly all of its $377 million in assets.
And Bank of Kansas of South Hutchinson, Kan., will acquire First National Bank of Anthony's six branches, its $142.5 million in deposits, and nearly all of its $156.9 million in assets.
The FDIC will retain the remaining unacquired assets of all three failed banks to sell later. And with all three acquirers, the FDIC has entered into loss-sharing agreements to maximize returns on the assets and minimize disruptions for loan customers.
The FDIC said it estimates that Cooperative Bank's failure will cost the deposit insurance fund $217 million. Southern Community Bank's will cost $114 million, and First National Bank of Anthony's will cost $32.2 million.
The number of banks on the FDIC's list of "problem" institutions leaped to 305 in the first quarter _ the highest number since 1994, during the savings and loan crisis _ from 252 in the fourth quarter. The combined assets of those banks rose to $220 billion from $159 billion.
To be sure, most "problem" institutions don't fail, but the pace of failures has been much higher this year than in past years. The 40 institutions that have closed this year compare with 25 in all of 2008 and just three in 2007.
One silver lining is that while more banks are being shuttered this year than last, the size of the banks has tended to be smaller.
The largest U.S. bank failure ever was last year: Seattle-based thrift Washington Mutual Inc. fell in September, with about $307 billion in assets. It was acquired by JPMorgan Chase & Co. for $1.9 billion in a deal brokered by the FDIC.
The costliest bank failure was also in 2008, when the big California lender IndyMac Bank got seized and cost the FDIC's insurance fund an estimated $10.7 billion.
The FDIC expects U.S. bank failures to cost the deposit insurance fund around $70 billion through 2013.
http://www.wtop.com/?nid=111&sid=1659999

Struggle among Iran's clerics bursts into the open
TEHRAN, Iran (AP) — A backstage struggle among Iran's ruling clerics burst into the open Sunday when the government said it had arrested the daughter and other relatives of an ayatollah who is one of the country's most powerful men.
Tehran's streets fell mostly quiet for the first time since a bitterly disputed June 12 presidential election, but cries of "God is great!" echoed again from rooftops after dark, a sign of seething anger at a government crackdown that peaked with at least 10 protesters' deaths Saturday.
The killings drove the official death toll to at least 17 after a week of massive street demonstrations by protesters who say hardline President Mahmoud Ahmadinejad stole his re-election win. But searing images posted online — including gruesome video purporting to show the fatal shooting of a teenage girl — hinted the true toll may be higher.
Police and the feared Basij militia swarmed the streets of Tehran to prevent more protests and the government intensified a crackdown on independent media — expelling a BBC correspondent, suspending the Dubai-based network Al-Arabiya and detaining at least two local journalists for U.S. magazines.
English-language state television said an exile group known as the People's Mujahedeen had a hand in street violence and broadcast what it said were confessions of British-controlled agents in an indication of the government's readiness to crack down even harder.
Opposition leader Mir Hossein Mousavi warned supporters of danger ahead, and said he would stand by the protesters "at all times." But in letters posted on his allies' websites Saturday and Sunday, he said he would "never allow anybody's life to be endangered because of my actions" and called for pursuing fraud claims through an independent board.
The former prime minister, a longtime loyalist of the Islamic government, also called the Basij and military "our brothers" and "protectors of our revolution and regime." He may be trying to constrain his followers' demands before they pose a mortal threat to Iran's quixotic system of limited democracy constrained by Shiite clerics, who have ultimate authority.
His chances of success within the system would be far higher if he has backers among those clerics.
In the clearest sign yet of a splintering among the ayatollahs, state media announced the arrests of five family members of Ayatollah Hashemi Rafsanjani including his daughter Faezeh, a 46-year-old reformist politician vilified by hardliners for her open support of Mousavi.
"We are in uncharted territory," said Ahmad Sadri, a professor at Lake Forest College in Illinois who writes a column for an Iranian newspaper associated with reformist presidential candidate Mahdi Karroubi.
Rafsanjani heads the cleric-run Assembly of Experts, which can remove the supreme leader, the country's most powerful figure. He also chairs the Expediency Council, a body that arbitrates disputes between parliament and the unelected Guardian Council.
Rafsanjani and his family have been accused of corruption by Ahmadinejad. And the 75-year-old ayatollah was conspicuously absent Friday from an address by the country's supreme leader calling for national unity and siding with the president.
That fueled speculation that Rafsanjani, who has made no public comment since the election, may be working behind the scenes and favoring Mousavi.
The Assembly of Experts has not publicly reprimanded Supreme Leader Ayatollah Ali Khamenei since he succeeded Islamic Revolution founder Ayatollah Ruhollah Khomeini in 1989. But this crisis has rattled the once-untouchable stature of the supreme leader.
Protesters have openly defied his orders to leave the streets and witnesses said some shouted "Death to Khamenei!" at Saturday's demonstrations — a once unthinkable challenge.
State media said Rafsanjani's relatives had been held for their own protection and released later Sunday but experts said the message was clear.
"That is a major escalation and ratchets up the conflict with Rafsanjani," said Michael Wahid Hanna, a regional affairs analyst with the Century Foundation, a New York think tank. "It really raises the stakes."
At least some lower-ranking clergy also appeared to have broken with the supreme leader. Photos posted by a moderate conservative news website showed what appeared to be mullahs in brown robes and white turbans protesting alongside a crowd of young men, some wearing the green shirts or sashes symbolizing Mousavi's self-described "Green Wave" movement.
The images could not immediately be independently verified due to government restrictions on foreign media, who were banned from reporting on Tehran's streets.
Ahmadinejad appeared to be courting clerical support. State television showed him meeting with clerics at the presidential palace and telling them the election had demonstrated popular love for the regime.
He criticized British Prime Minister Gordon Brown and President Obama, who on Saturday urged Iranian authorities to halt "all violent and unjust actions against its own people."
"With that behavior you will not be among Iran's friends," Ahmadinejad said, in a potentially ominous sign for Obama's recent efforts to warm relations with Iran.
Strengthening Ahmadinejad's position, Iran's military issued a thinly veiled warning to Mousavi after days of silence.
"We are determined to confront plots by enemies aimed at creating a rift in the nation," said Gen. Gholam Ali Rashid, acting joint chief of the armed forces.
Foreign Minister Manouchehr Mottaki accused Britain of sending spies to manipulate the election, blasted France for "treacherous and unjust approaches" and said Germany had unfairly criticized Iran's government.
Blaming foreign conspirators is a staple of Iranian government rhetoric that resonates for many in a country with a long history of direct manipulation by Britain, the U.S., Russia and other powers.
British Foreign Secretary David Miliband "categorically" denied his country was meddling and German Chancellor Angela Merkel urged Iran anew to conduct a complete and transparent recount.
"This can only damage Iran's standing in the eyes of the world," Miliband said.
The British Broadcasting Corp. said its Tehran-based correspondent, Jon Leyne, had been asked to leave the country but its office remained open. Newsweek said journalist Maziar Bahari, a Canadian citizen, had been detained without charge and LIFE reported the arrest of the photojournalist who took an iconic photograph of a young woman in a headscarf making a "V" for victory gesture at the camera as white smoke roiled in the background. It did not reveal the photographer's name.
Reporters Without Borders said 23 journalists had been arrested during the past week.
There were unconfirmed reports of small demonstrations and clashes Sunday, and stores were closed in Tehran neighborhoods that saw violence the day. Life appeared to be normal in other parts of Tehran on Sunday, a weekday in Iran, but experts cautioned that it could be a brief lull and not the end of Iran's worst internal turmoil in three decades.
http://www.usatoday.com/news/world/2009-06-20-iran-saturday_N.htm

Suit accuses TSA of unreasonable airport detention
By JIM SALTER – 2 days ago
ST. LOUIS (AP) — A lawsuit filed Thursday against the Transportation Security Administration alleges a Ron Paul supporter was unreasonably detained at the St. Louis airport because he was carrying about $4,700 in cash.
The American Civil Liberties Union filed the lawsuit on behalf of Steven Bierfeldt, director of development for the Campaign for Liberty, an organization that grew out of Ron Paul's 2008 presidential campaign.
The organization had hosted an event in St. Louis that included the sale of tickets, T-shirts, stickers and other materials and Bierfeldt said he was carrying the cash proceeds in a metal box when he was detained at Lambert Airport for about 30 minutes on March 29.
The lawsuit does not seek money but asks the court to declare the TSA's actions unconstitutional and to prohibit the agency from similar searches when there is no evidence aircraft are endangered.
"It's obviously important that the safety of flights be ensured," Bierfeldt said in a telephone interview. "But subjecting innocent travelers like me who are doing nothing wrong — I think it diverts TSA away from its core mission of safeguarding air travel."
TSA spokesman Greg Soule said the agency would not comment on pending litigation.
Bierfeldt said he refused to answer when a TSA official asked what was in the box. Another TSA official arrived, and Bierfeldt was taken into a separate room where he used an iPhone in his jacket pocket to record the officials' questioning.
An audio clip provided by the ACLU includes repeated questions from a TSA official about why Bierfeldt was carrying so much money, and his repeated refusal to answer. On one occasion, the questioner swears and asks, "Is there any reason you're not answering questions?"
Bierfeldt answers, "Am I legally required to answer the question?"
Soule said while there is no limit to the amount of cash a person can travel with domestically, travelers must cooperate with the TSA screening process.
"Cooperation may involve answering questions about their property," Soule said. "A passenger who refuses to answer questions may be referred to appropriate authorities for further inquiry."
Bierfeldt's attorney, Ben Wizner, said the lawsuit does not challenge TSA's authority to search and detain those suspected of taking weapons, explosives or other dangerous objects onto planes.
"That's the whole purpose of airport searches," Wizner said. "These are not, however, open-ended criminal searches."
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