The Ruthless Truth blog

by: Allison Bricker

WASHINGTON D.C. – Senators Charles Schumer, Democrat of New York and Lindsey Graham, Republican of South Carolina are meeting today with President Obama to discuss tactics on how best to orchestrate the appearance of bipartisanship regarding comprehensive immigration reform. However, immigration reform is not the sole reason for the Senators’ visit. Also on the agenda is the culmination of the plutocrat’s fetish like desire to track all Americans with yet another attempt at shackling us with a national identification card.

Video Courtesy: RonPaul2008DotCom

Since the events of September 11th, the aristocrats on the hill have sought a way to effectively track like cattle all U.S. Citizens; however, despite their relentless fearmongering of boogiemen terrorists, the American people have in large part resisted the attempt to achieve “safety” via a mirroring of 1970’s era East Germany.

In a fashion similar to when the FDIC proposed the “Know Your Customer Rule” before public backlash forced a retraction, the statist have returned to their default playbook to achieve their end by swaddling in a national identification card under the guise of “securing the borders”. Then Assistant Director of the FEDERAL RESERVE, Richard Small provided keen insight to the minds of plutocrats when he spoke at the Mid Atlantic Compliance Conference in 1999, quipping that success of “Know Your Customer” depended on simply renaming the provision in order to avoid public scrutiny; the Central Authority hopes to replicate a corresponding trajectory for the National ID.

Whereas, “Know Your Customer” finally became law upon passage of the unconstitutional USA PATRIOT Act, the National ID card has encountered continued resistance thanks both to the new-media and internet-at-large. First as REAL ID, then as the PASS Act, the National ID has thus far repeatedly run up against an ever-growing chorus of Americans awakening to a federal government intruding ever further into our personal lives and business.

As recently reported, efforts are now under way by Imperial Senators John McCain (R-AZ), Saxby Chambliss (R-GA), Scott “Tea-Party” Brown (R-MA), and seven other co-sponsors co-conspirators to indefinitely detain Americans merely upon suspicion and without trial. Further, details remain sparse on the Obama Administration and Director of National Intelligence Dennis C. Blair’s request to be granted authority by Congress to assassinate Americans suspected of committing belligerent acts against the Central Government. Now the seek to saddle us with a biometric ID which confirms identity be scanning the veins in our hands?

These several recent legislative maneuvers by the treasonous statists in Congress are scheming what can no less be described and ought rightfully be referred to as the “New Intolerable Acts”.

While we are fortunate to have a robust and growing body of enlightened pro-liberty advocates, thinkers, and teachers such as Representative Ron Paul, we must not rest upon their hard work to reclaim our quickly atrophying liberties. As his interview with Megyan Kelly of Fox News demonstrates, we must also consider utterly detaching ourselves form what was once referred to as “the fourth branch of government”, ergo the old-media, as it is obvious at least to this blogger, that they are but mere shills for the statists. Her inference that an erosion of our natural liberties is of no consequence and a necessary concession under the current events, shows her to be a cold lifeless traitor to human liberty.

Make no mistake, the world, why undeniably dangerous, has always appeared to be at an unrivaled level of hostility when viewed through the lens of the here and now. Whereas it took close to 2,000 years of human civilization for an imperfect generation to rightfully proclaim the individual as the standard-bearer of liberty, in full possession of our natural rights, and offer the opportunity to form a more perfect Union.

Let us not now shrink in the duty to be ever vigilant defenders of both our own and our posterity’s unalienable natural liberties in the face of this growing tyranny.

http://smargus.com/2010/03/rep-ron-paul-speaks-out-against-national-id-card-in-immigration-reform/

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By Richard Teitelbaum

Feb. 23 (Bloomberg) — When a congressional panel convened a hearing on the government rescue of American International Group Inc. in January, the public scolding of Treasury Secretary Timothy F. Geithner got the most attention.

Lawmakers said the former head of the New York Federal Reserve Bank had presided over a backdoor bailout of Wall Street firms and a coverup. Geithner countered that he had acted properly to avert the collapse of the financial system.

A potentially more important development slipped by with less notice, Bloomberg Markets reports in its April issue. Representative Darrell Issa, the ranking Republican on the House Committee on Oversight and Government Reform, placed into the hearing record a five-page document itemizing the mortgage securities on which banks such as Goldman Sachs Group Inc. and Societe Generale SA had bought $62.1 billion in credit-default swaps from AIG.

These were the deals that pushed the insurer to the brink of insolvency — and were eventually paid in full at taxpayer expense. The New York Fed, which secretly engineered the bailout, prevented the full publication of the document for more than a year, even when AIG wanted it released.

That lack of disclosure shows how the government has obstructed a proper accounting of what went wrong in the financial crisis, author and former investment banker William Cohan says. “This secrecy is one more example of how the whole bailout has been done in such a slithering manner,” says Cohan, who wrote “House of Cards” (Doubleday, 2009), about the unraveling of Bear Stearns Cos. “There’s been no accountability.”

CDOs Identified

The document Issa made public cuts to the heart of the controversy over the September 2008 AIG rescue by identifying specific securities, known as collateralized-debt obligations, that had been insured with the company. The banks holding the credit-default swaps, a type of derivative, collected collateral as the insurer was downgraded and the CDOs tumbled in value.

The public can now see for the first time how poorly the securities performed, with losses exceeding 75 percent of their notional value in some cases. Compounding this, the document and Bloomberg data demonstrate that the banks that bought the swaps from AIG are mostly the same firms that underwrote the CDOs in the first place.

The banks should have to explain how they managed to buy protection from AIG primarily on securities that fell so sharply in value, says Daniel Calacci, a former swaps trader and marketer who’s now a structured-finance consultant in Warren, New Jersey. In some cases, banks also owned mortgage lenders, and they should be challenged to explain whether they gained any insider knowledge about the quality of the loans bundled into the CDOs, he says.

‘Too Uncanny’

“It’s almost too uncanny,” Calacci says. “If these banks had insight into the underlying loans because they had relationships with banks, originators or servicers, that’s at the least unethical.”

The identification of securities in the document, known as Schedule A, and data compiled by Bloomberg show that Goldman Sachs underwrote $17.2 billion of the $62.1 billion in CDOs that AIG insured — more than any other investment bank. Merrill Lynch & Co., now part of Bank of America Corp., created $13.2 billion of the CDOs, and Deutsche Bank AG underwrote $9.5 billion.

These tallies suggest a possible reason why the New York Fed kept so much under wraps, Professor James Cox of Duke University School of Law says: “They may have been trying to shield Goldman — for Goldman’s sake or out of macro concerns that another investment bank would be at risk.”

Poor Performers

Goldman Sachs spokesman Michael DuVally declined to comment.

Schedule A also makes possible a more complete examination of why AIG collapsed. Joseph Cassano, the former president of the AIG Financial Products unit that sold the swaps, said on a December 2007 conference call that his firm pulled back from selling swaps on U.S. subprime residential CDOs in late 2005. The list shows that the $21.2 billion in CDOs minted after 2005, mostly based on prime and commercial mortgages, performed as badly as or worse than the earlier subprime vintages.

A lawyer for Cassano declined to comment.

As details of the coverup emerge, so does anger at the perceived conflicts. Philip Angelides, chairman of the Financial Crisis Inquiry Commission, at a hearing held by his panel on Jan. 13, questioned how banks could underwrite poisonous securities and then bet against them. “It sounds to me a little bit like selling a car with faulty brakes and then buying an insurance policy on the buyer of those cars,” he said.

‘Part of the Coverup’

Janet Tavakoli, founder of Tavakoli Structured Finance Inc., a Chicago-based consulting firm, says the New York Fed’s secrecy has helped hide who’s responsible for the worst of the disaster. “The suppression of the details in the list of counterparties was part of the coverup,” she says.

E-mails between Fed and AIG officials that Issa released in January show that the efforts to keep Schedule A under wraps came from the New York Fed. Revelation of the messages contributed to the heated atmosphere at the House hearing.

“What date did you know there was a coverup?” Republican Congressman Brian Bilbray of California demanded of Geithner. Lawmakers used the word coverup more than a dozen times as they peppered Geithner with questions.

Geithner said that he wasn’t involved in matters of disclosure and that his former colleagues did the best they could. In a Jan. 19 statement, the New York Fed said, “AIG at all times remained responsible for complying with its disclosure requirements under the securities laws.”

The government has committed more than $182 billion to AIG and owns almost 80 percent of the company.

Document Withheld

In late November 2008, the insurer was planning to include Schedule A in a regulatory filing — until a lawyer for the Fed said it wasn’t necessary, according to the e-mails. The document was an attachment to the agreement between AIG and Maiden Lane III, the fund that the Fed established in November 2008 to hold the CDOs after the swap contracts were settled.

AIG paid its counter­parties — the banks — the full value of the contracts, after accounting for any collateral that had been posted, and took the devalued CDOs in exchange. As requested by the New York Fed, AIG kept the bank names out of the Dec. 24 filing and edited out a sentence that said they got full payment.

The New York Fed’s January 2010 statement said the sentence was deleted because AIG technically paid slightly less than 100 cents on the dollar.

Paid in Full

Before the New York Fed ordered AIG to pay the banks in full, the company was trying to negotiate to pay off the credit- default swaps at a discount or “haircut.”

By March 2009, responding to a request from Christopher Dodd, chairman of the Senate Committee on Banking, Housing and Urban Affairs, AIG released the names of the counterparty banks. In a filing later that month, AIG included Schedule A, showing bank names while withholding all identification of the underlying CDOs and the amounts of collateral each bank had collected. The document had more than 800 redactions.

In May 2009, AIG again filed Schedule A, this time with about 400 redactions. It revealed that Paris-based Societe Generale got the biggest payout from AIG, or $16.5 billion, followed by Goldman Sachs, which got $14 billion, and then Deutsche Bank and Merrill Lynch. It still kept secret the CDOs’ identification and information that would show performance.

‘Right to Know’

“This is something that belongs in the public domain because it was done with public money,” Issa says. “The public has the right to know what was done with their money and who benefited from it.” Now, thanks to Issa, the list is out, and specific information about AIG’s unraveling can be learned from it.

At the Jan. 27 hearing, the New York Fed was still arguing that the contents of Schedule A shouldn’t be fully disclosed. Thomas Baxter, the New York Fed’s general counsel, testified that divulging the names of the CDOs could erode their value: “We will be hurt because traders in the market will know what we’re holding.”

Tavakoli calls that wrong. With many CDOs, providing more information to the market will give the manager a greater chance of fetching a realistic price, she says.

Jack Gutt, a spokesman for the New York Fed, declined to comment, as did AIG’s Mark Herr.

Bad to Worse

Tavakoli also says that the poor performance of the underlying securities (which are actually specific slices or tranches of CDOs) shows they were toxic in the first place and were probably replenished with bundles of mortgages that were particularly troubled. Managers who oversee CDOs after they are created have discretion in choosing the mortgage bonds used to replenish them.

“The original CDO deals were bad enough,” Tavakoli says. “For some that allow reinvesting or substitution, any reasonable professional would ask why these assets were being traded into the portfolio. The Schedule A shows that we should be investigating these deals.”

Among the CDOs on Schedule A with notional values of more than $1 billion, the worst performer was a tranche identified as Davis Square Funding Ltd.’s DVSQ 2006-6A CP. It was held by Societe Generale, underwritten by Goldman Sachs and managed by TCW Group Inc., a Los Angeles-based unit of SocGen, according to Bloomberg data. It lost 77.7 percent of its value — though it isn’t in default and continues to pay.

SocGen spokesman James Galvin and TCW spokeswoman Erin Freeman declined to comment.

Documentation Needed

Ed Grebeck, CEO of Tempus Advisors, a global debt market strategy firm in Stamford, Connecticut, agrees that more digging is necessary. “You need all the documentation and more than that, all the e-mails,” he says. “That would allow us to understand what went wrong and how to fix it going forward.”

Neil Barofsky, the special inspector general for the Troubled Asset Relief Program, who delivered a report on the AIG bailout in November, says he’s not finished. He has begun a probe of why his office wasn’t provided all of the 250,000 pages of documents, including e-mails and phone logs, that Issa’s committee received from the New York Fed.

Schedule A provides some answers — and raises questions that need to be tackled to avoid the next expensive bailout.

–With assistance by Hugh Son and Laurie Meisler in New York. Editors: Robert Dieterich, Vince Bielski

To contact the reporter on this story: Richard Teitelbaum in New York at +1-212-617-6863 or rteitelbaum1@bloomberg.net

To contact the editor responsible for this story: Michael Serrill at +1-212-617-6767 or mserrill@bloomberg.net

-0- Feb/23/2010 05:01 GMT

http://www.businessweek.com/news/2010-02-23/secret-aig-document-shows-goldman-sachs-minted-most-toxic-cdos.html

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Richard Teitelbaum
Bloomberg
Tue, 23 Feb 2010 09:04 EST

When a congressional panel convened a hearing on the government rescue of American International Group Inc. in January, the public scolding of Treasury Secretary Timothy F. Geithner got the most attention.
Lawmakers said the former head of the New York Federal Reserve Bank had presided over a backdoor bailout of Wall Street firms and a coverup. Geithner countered that he had acted properly to avert the collapse of the financial system.
A potentially more important development slipped by with less notice, Bloomberg Markets reports in its April issue. Representative Darrell Issa, the ranking Republican on the House Committee on Oversight and Government Reform, placed into the hearing record a five-page document itemizing the mortgage securities on which banks such as Goldman Sachs Group Inc. and Societe Generale SA had bought $62.1 billion in credit-default swaps from AIG.
These were the deals that pushed the insurer to the brink of insolvency — and were eventually paid in full at taxpayer expense. The New York Fed, which secretly engineered the bailout, prevented the full publication of the document for more than a year, even when AIG wanted it released.
That lack of disclosure shows how the government has obstructed a proper accounting of what went wrong in the financial crisis, author and former investment banker William Cohan says. "This secrecy is one more example of how the whole bailout has been done in such a slithering manner," says Cohan, who wrote "House of Cards" (Doubleday, 2009), about the unraveling of Bear Stearns Cos. "There’s been no accountability."
CDOs Identified
The document Issa made public cuts to the heart of the controversy over the September 2008 AIG rescue by identifying specific securities, known as collateralized-debt obligations, that had been insured with the company. The banks holding the credit-default swaps, a type of derivative, collected collateral as the insurer was downgraded and the CDOs tumbled in value.
The public can now see for the first time how poorly the securities performed, with losses exceeding 75 percent of their notional value in some cases. Compounding this, the document and Bloomberg data demonstrate that the banks that bought the swaps from AIG are mostly the same firms that underwrote the CDOs in the first place.
The banks should have to explain how they managed to buy protection from AIG primarily on securities that fell so sharply in value, says Daniel Calacci, a former swaps trader and marketer who’s now a structured-finance consultant in Warren, New Jersey. In some cases, banks also owned mortgage lenders, and they should be challenged to explain whether they gained any insider knowledge about the quality of the loans bundled into the CDOs, he says.
‘Too Uncanny’
"It’s almost too uncanny," Calacci says. "If these banks had insight into the underlying loans because they had relationships with banks, originators or servicers, that’s at the least unethical."
The identification of securities in the document, known as Schedule A, and data compiled by Bloomberg show that Goldman Sachs underwrote $17.2 billion of the $62.1 billion in CDOs that AIG insured — more than any other investment bank. Merrill Lynch & Co., now part of Bank of America Corp., created $13.2 billion of the CDOs, and Deutsche Bank AG underwrote $9.5 billion.
These tallies suggest a possible reason why the New York Fed kept so much under wraps, Professor James Cox of Duke University School of Law says: "They may have been trying to shield Goldman — for Goldman’s sake or out of macro concerns that another investment bank would be at risk."
Poor Performers
Goldman Sachs spokesman Michael DuVally declined to comment.
Schedule A also makes possible a more complete examination of why AIG collapsed. Joseph Cassano, the former president of the AIG Financial Products unit that sold the swaps, said on a December 2007 conference call that his firm pulled back from selling swaps on U.S. subprime residential CDOs in late 2005. The list shows that the $21.2 billion in CDOs minted after 2005, mostly based on prime and commercial mortgages, performed as badly as or worse than the earlier subprime vintages.
A lawyer for Cassano declined to comment.
As details of the coverup emerge, so does anger at the perceived conflicts. Philip Angelides, chairman of the Financial Crisis Inquiry Commission, at a hearing held by his panel on Jan. 13, questioned how banks could underwrite poisonous securities and then bet against them. "It sounds to me a little bit like selling a car with faulty brakes and then buying an insurance policy on the buyer of those cars," he said.
‘Part of the Coverup’
Janet Tavakoli, founder of Tavakoli Structured Finance Inc., a Chicago-based consulting firm, says the New York Fed’s secrecy has helped hide who’s responsible for the worst of the disaster. "The suppression of the details in the list of counterparties was part of the coverup," she says.
E-mails between Fed and AIG officials that Issa released in January show that the efforts to keep Schedule A under wraps came from the New York Fed. Revelation of the messages contributed to the heated atmosphere at the House hearing.
"What date did you know there was a coverup?" Republican Congressman Brian Bilbray of California demanded of Geithner. Lawmakers used the word coverup more than a dozen times as they peppered Geithner with questions.
Geithner said that he wasn’t involved in matters of disclosure and that his former colleagues did the best they could. In a Jan. 19 statement, the New York Fed said, "AIG at all times remained responsible for complying with its disclosure requirements under the securities laws."
The government has committed more than $182 billion to AIG and owns almost 80 percent of the company.
Document Withheld
In late November 2008, the insurer was planning to include Schedule A in a regulatory filing — until a lawyer for the Fed said it wasn’t necessary, according to the e-mails. The document was an attachment to the agreement between AIG and Maiden Lane III, the fund that the Fed established in November 2008 to hold the CDOs after the swap contracts were settled.
AIG paid its counter­parties — the banks — the full value of the contracts, after accounting for any collateral that had been posted, and took the devalued CDOs in exchange. As requested by the New York Fed, AIG kept the bank names out of the Dec. 24 filing and edited out a sentence that said they got full payment.
The New York Fed’s January 2010 statement said the sentence was deleted because AIG technically paid slightly less than 100 cents on the dollar.
Paid in Full
Before the New York Fed ordered AIG to pay the banks in full, the company was trying to negotiate to pay off the credit- default swaps at a discount or "haircut."
By March 2009, responding to a request from Christopher Dodd, chairman of the Senate Committee on Banking, Housing and Urban Affairs, AIG released the names of the counterparty banks. In a filing later that month, AIG included Schedule A, showing bank names while withholding all identification of the underlying CDOs and the amounts of collateral each bank had collected. The document had more than 800 redactions.
In May 2009, AIG again filed Schedule A, this time with about 400 redactions. It revealed that Paris-based Societe Generale got the biggest payout from AIG, or $16.5 billion, followed by Goldman Sachs, which got $14 billion, and then Deutsche Bank and Merrill Lynch. It still kept secret the CDOs’ identification and information that would show performance.
‘Right to Know’
"This is something that belongs in the public domain because it was done with public money," Issa says. "The public has the right to know what was done with their money and who benefited from it." Now, thanks to Issa, the list is out, and specific information about AIG’s unraveling can be learned from it.
At the Jan. 27 hearing, the New York Fed was still arguing that the contents of Schedule A shouldn’t be fully disclosed. Thomas Baxter, the New York Fed’s general counsel, testified that divulging the names of the CDOs could erode their value: "We will be hurt because traders in the market will know what we’re holding."
Tavakoli calls that wrong. With many CDOs, providing more information to the market will give the manager a greater chance of fetching a realistic price, she says.
Jack Gutt, a spokesman for the New York Fed, declined to comment, as did AIG’s Mark Herr.
Bad to Worse
Tavakoli also says that the poor performance of the underlying securities (which are actually specific slices or tranches of CDOs) shows they were toxic in the first place and were probably replenished with bundles of mortgages that were particularly troubled. Managers who oversee CDOs after they are created have discretion in choosing the mortgage bonds used to replenish them.
"The original CDO deals were bad enough," Tavakoli says. "For some that allow reinvesting or substitution, any reasonable professional would ask why these assets were being traded into the portfolio. The Schedule A shows that we should be investigating these deals."
Among the CDOs on Schedule A with notional values of more than $1 billion, the worst performer was a tranche identified as Davis Square Funding Ltd.’s DVSQ 2006-6A CP. It was held by Societe Generale, underwritten by Goldman Sachs and managed by TCW Group Inc., a Los Angeles-based unit of SocGen, according to Bloomberg data. It lost 77.7 percent of its value — though it isn’t in default and continues to pay.
SocGen spokesman James Galvin and TCW spokeswoman Erin Freeman declined to comment.
Documentation Needed
Ed Grebeck, CEO of Tempus Advisors, a global debt market strategy firm in Stamford, Connecticut, agrees that more digging is necessary. "You need all the documentation and more than that, all the e-mails," he says. "That would allow us to understand what went wrong and how to fix it going forward."
Neil Barofsky, the special inspector general for the Troubled Asset Relief Program, who delivered a report on the AIG bailout in November, says he’s not finished. He has begun a probe of why his office wasn’t provided all of the 250,000 pages of documents, including e-mails and phone logs, that Issa’s committee received from the New York Fed.
Schedule A provides some answers — and raises questions that need to be tackled to avoid the next expensive bailout.

http://www.sott.net/articles/show/203435-Secret-AIG-Document-Shows-Goldman-Sachs-Minted-Most-Toxic-CDOs

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The National Animal Identification System

by Rady Ananda

Global Research, January 4, 2010

- 2010-01-03

Animal traceability is gaining governmental support in two key US beef markets, which may bolster reinvigoration of the National Animal Identification System in the United States. Though NAIS remains a despised voluntary program today, we may see its full implementation under S 510, the Food Safety Modernization Act.

Animal traceability is gaining governmental support in two key US beef markets, which may bolster reinvigoration of the National Animal Identification System (NAIS) in the United States, despite a recent funding cut to $5.3 million. Japan and South Korea, are now moving toward mandatory traceability on imports. South Korea plans to mandate animal monitoring by 2010, and Japan’s new prime minister vowed to mandate it for beef imports, according to a pro-NAIS report at Food Safety News.*

Though NAIS remains a voluntary program despised by independent ranchers, we may see its full implementation under S 510, (fka HR 2749), the Food Safety Modernization Act (FSMA). A summary by the Congressional Research Service advises that S 510:

“Requires the Secretary of Agriculture to … improve the capacity of the Secretary to track and trace raw agricultural commodities,” and it “[r]equires the Secretary, acting through the Director of the Centers for Disease Control and Prevention (CDC), to enhance foodborne illness surveillance systems.”

Linn Cohen-Cole wrote a scathing critique of the FSMA in HR 2749: Totalitarian Control of the Food Supply. She believes that S 510 will mark “an end to US sovereignty over food.” She (and many others) perceive it as part of a World Trade Organization plan to grant corporations control over all food. S 510 will be raised in the Senate in January.

Behind Global Animal Tracing

The top markets for US beef are Mexico, Canada, Japan and South Korea, accounting for 90% of total beef exports. Mexico and Canada already implement animal tracing.

In 2004, Japan and Korea drastically reduced US beef imports after a series of contamination events, including the discovery of bovine spongiform encephalopathy (BSE, or mad cow disease). In 2003, the US sold nearly $2 billion in beef to both markets; in 2004 that figure dropped to $33 million.

Top markets for U.S. beef

(accounting for over 90% of total beef exports)

Source: USDA Economic Research Service, http://bit.ly/7z5oEx

That all changed after the 2003 creation of a new voluntary Japan Agricultural Standard (JAS) program to certify the traceability of imported beef. Iowa State University reports:

“Results from consumer focus groups indicate that Japanese consumers will pay 20 percent more for domestic foods with specific safety assurances and production information. This response is generally supported by price differences at retail outlets.”

Japanese reluctance to buy cattle that was fed genetically modified feed and a steady stream of drugs has also created a booming organic market. By 2008, US beef exports to Japan rose to $439 million. Consumer confidence in more strictly regulated labeling has improved the Japanese market for US beef. That confidence may be misplaced, as Jim Hightower points out in Think your food’s organic? Think again.

By 2006, sixty-five nations, including South Korea, implemented full or partial bans on importing U.S. beef products, citing fears that testing for BSE lack rigor, per a USA Today opinion piece that condemns the USDA ban on private testing for BSE.

When South Korea president, Lee Myung-bak, tried to reopen the US beef market in 2008, over 100,000 protesters took to the streets over several days, causing the resignation of his entire cabinet. [See this Al Jazeera YouTube.] An interim agreement was reached allowing the import of cattle less than 30 months old. Younger cattle are believed to be less susceptible to BSE.

But Does Animal Tracing Protect the Food Supply?

Governments seem focused on animal tracing as the magic bullet to protect the food supply. In Japan – where reputation is more important than wealth – consumers trust government-regulated tracing and labeling schemes that identify the farm-to-fork path an animal takes. This may force the US to adopt tracing, in order to re-open its market.

Cows with rBGH-induced mastis stand in shit on factory farms

But animal tracing does not address food contamination caused by concentrated animal feeding operations (CAFOs), where thousands of animals are crammed into tiny stalls, barely able to move. Because of their close quarters, lack of exercise and sunlight, and an unnatural diet of genetically modified grains, diseases spread like wildfire. To counter this, factory farms give the animals heavy doses of antibiotics, creating super-virulent strains of “super bugs” that are antibiotic resistant.

Animal tracing also does not address the unsanitary conditions of meat processing plants, which have been deregulated under HACCP – the Hazard Analysis Critical Control Points program that removes independent inspections. Under HACCP, food processing plants monitor themselves.

In September, the Agricultural Appropriations conference committee cut funding by more than 60% for NAIS, a reduction of nearly two-thirds from the $14.6 million requested by the U.S. Department of Agriculture. This may be in response to the massive outcry by ranchers during the NAIS Listening Sessions earlier this year. Ranchers cited cost, privacy, and an unfair advantage to factory farms, which are required to tag only one out of 100,000 head.

The Farm to Consumer Legal Defense Fund claims that NAIS won’t achieve food safety. Instead, it suggests that we:

• Decentralize the livestock industry and encourage local, diversified farms, which would increase animal health, food security, and food safety;

• Increase inspections of imported animals and agricultural products and bar the entry of animals from countries with known disease problems; and

Improve enforcement of existing laws and inspections of large slaughterhouses and food processing facilities, including unannounced spot inspections at those large facilities.

Instead of animal tracing, the US food supply would be better protected by banning concentrated animal feeding operations that allow disease to spread like wildfire. A ban on CAFOs would vastly improve the health of animals, and protect the environment from all the drug-laden manure produced in large operations.

Food safety can also be achieved by encouraging the spread and diversification of small farms. Promotion of local, organic food would invigorate local economies, improve the environment and increase public health. S 510 threatens small farms, with its over-reaching attempt at control of the food supply.

Global Research Articles by Rady Ananda

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by Tom Burghardt

Global Research, October 27, 2009

Antifascist Calling… – 2009-10-24

That social networking sites and applications such as Facebook, Twitter and their competitors can facilitate communication and information sharing amongst diverse groups and individuals is by now a cliché.
It should come as no surprise then, that the secret state and the capitalist grifters whom they serve, have zeroed-in on the explosive growth of these technologies. One can be certain however, securocrats aren’t tweeting their restaurant preferences or finalizing plans for after work drinks.
No, researchers on both sides of the Atlantic are busy as proverbial bees building a "total information" surveillance system, one that will, so they hope, provide police and security agencies with what they euphemistically call "actionable intelligence."
Build the Perfect Panopticon, Win Fabulous Prizes!
In this context, the whistleblowing web site Wikileaks published a remarkable document October 4 by the INDECT Consortium, the Intelligence Information System Supporting Observation, Searching and Detection for Security of Citizens in Urban Environment.
Hardly a catchy acronym, but simply put INDECT is working to put a human face on the billions of emails, text messages, tweets and blog posts that transit cyberspace every day; perhaps your face.
According to Wikileaks, INDECT’s "Work package 4" is designed "to comb web blogs, chat sites, news reports, and social-networking sites in order to build up automatic dossiers on individuals, organizations and their relationships." Ponder that phrase again: "automatic dossiers."
This isn’t the first time that European academics have applied their "knowledge skill sets" to keep the public "safe"–from a meaningful exercise of free speech and the right to assemble, that is.
Last year The Guardian reported that Bath University researchers’ Cityware project covertly tracked "tens of thousands of Britons" through the installation of Bluetooth scanners that capture "radio signals transmitted from devices such as mobile phones, laptops and digital cameras, and using the data to follow unwitting targets without their permission."
One privacy advocate, Simon Davies, the director of Privacy International, told The Guardian: "This technology could well become the CCTV of the mobile industry. It would not take much adjustment to make this system a ubiquitous surveillance infrastructure over which we have no control."
Which of course, is precisely the point.
As researchers scramble for a windfall of cash from governments eager to fund these dubious projects, European police and security agencies aren’t far behind their FBI and NSA colleagues in the spy game.
The online privacy advocates, Quintessenz, published a series of leaked documents in 2008 that described the network monitoring and data mining suites designed by Nokia Siemens, Ericsson and Verint.
The Nokia Siemens Intelligence Platform dubbed "intelligence in a box," integrate tasks generally done by separate security teams and pools the data from sources such as telephone or mobile calls, email and internet activity, bank transactions, insurance records and the like. Call it data mining on steroids.
Ironically enough however, Siemens, the giant German electronics firm was caught up in a global bribery scandal that cost the company some $1.6 billion in fines. Last year, The New York Times described "a web of secret bank accounts and shadowy consultants," and a culture of "entrenched corruption … at a sprawling, sophisticated corporation that externally embraced the nostrums of a transparent global marketplace built on legitimate transactions."
According to the Times, "at Siemens, bribery was just a line item." Which just goes to show, powering the secret state means never having to say you’re sorry!
Social Network Spying, a Growth Industry Fueled by Capitalist Grifters
The trend by security agencies and their corporate partners to spy on their citizens has accelerated greatly in the West since the 9/11 terrorist attacks.
This multi-billion industry in general, has been a boon for the largest American and European defense corporations. Among the top ten companies listed by Washington Technology in their annual ranking of the "Top 100" prime government contractors, all ten–from Lockheed Martin to Booz Allen Hamilton–earned a combined total of $68 billion in 2008 from defense and related homeland security work for the secret state.
And like Siemens, all ten corporations figure prominently on the Project on Government Oversight’s Federal Contractor Misconduct Database (FCMD), which tracks "contract fraud, environmental, ethics, and labor violations." Talk about a rigged game!
Designing everything from nuclear missile components to eavesdropping equipment for various government agencies in the United States and abroad, including some of the most repressive regimes on the planet, these firms have moved into manufacturing the hardware and related computer software for social networking surveillance in a big way.
Wired revealed in April that the FBI is routinely monitoring cell phone calls and internet activity during criminal and counterterrorism investigations. The publication posted a series of internal documents that described the Wi-Fi and computer hacking capabilities of the Bureau’s Cryptographic and Electronic Analysis Unit (CEAU).
New Scientist reported back in 2006 that the National Security Agency "is funding research into the mass harvesting of the information that people post about themselves on social networks."
And just this week in an exclusive report published by the British high-tech publication, The Register, it was revealed that "the government has outsourced parts of its biggest ever mass surveillance project to the disaster-prone IT services giant formerly known as EDS."
That work is being conducted under the auspices of the Government Communications Headquarters (GCHQ), the British state’s equivalent of America’s National Security Agency.
Investigative journalist Chris Williams disclosed that the American computer giant HP, which purchased EDS for some $13.9 billion last year, is "designing and installing the massive computing resources that will be needed to analyse details of who contacts whom, when where and how."
Work at GCHQ in Cheltenham is being carried out under "a secret project called Mastering the Internet." In May, a Home Office document surfaced that "ostensibly sought views on whether ISPs should be forced to gather terabytes of data from their networks on the government’s behalf."
The Register reported earlier this year that telecommunications behemoth Detica and U.S. defense giant Lockheed Martin were providing GCHQ with data mining software "which searches bulk data, such as communications records, for patterns … to identify suspects." (For further details see: Antifascist Calling, "Spying in the UK: GCHQ Awards Lockheed Martin £200m Contract, Promises to ‘Master the Internet’," May 7, 2009)
It seems however, that INDECT researchers like their GCHQ/NSA kissin’ cousins in Britain and the United States, are burrowing ever-deeper into the nuts-and-bolts of electronic social networking and may be on the verge of an Orwellian surveillance "breakthrough."
As New Scientist sagely predicted, the secret state most certainly plans to "harness advances in internet technology–specifically the forthcoming ‘semantic web’ championed by the web standards organisation W3C–to combine data from social networking websites with details such as banking, retail and property records, allowing the NSA to build extensive, all-embracing personal profiles of individuals."
Profiling Internet Dissent
Pretty alarming, but the devil as they say is in the details and INDECT’s release of their "Work package 4" file makes for a very interesting read. And with a title, "XML Data Corpus: Report on methodology for collection, cleaning and unified representation of large textual data from various sources: news reports, weblogs, chat," rest assured one must plow through much in the way of geeky gibberish and tech-speak to get to the heartless heart of the matter.
INDECT itself is a rather interesting amalgamation of spooks, cops and academics.
According to their web site, INDECT partners include: the University of Science and Technology, AGH, Poland; Gdansk University of Technology; InnoTech DATA GmbH & Co., Germany; IP Grenoble (Ensimag), France; MSWiA, the General Headquarters of Police, attached to the Ministry of the Interior, Poland; Moviquity, Spain; Products and Systems of Information Technology, PSI, Germany; the Police Service of Northern Ireland, PSNI, United Kingdom (hardly slouches when it comes to stitching-up Republicans and other leftist agitators!); Poznan University of Technology; Universidad Carlos III de Madrid; Technical University of Sofia, Bulgaria; University of Wuppertal, Germany; University of York, Great Britain; Technical University of Ostrava, Czech Republic; Technical University of Kosice, Slovakia; X-Art Pro Division G.m.b.H, Austria; and finally, the Fachhochschule Technikum, also in Austria.
I don’t know about you, but I find it rather ironic that the European Union, ostensible guardians of democracy and human rights, have turned for assistance in their surveillance projects to police and spy outfits from the former Soviet bloc, who after all know a thing or two when it comes to monitoring their citizens.
Right up front, York University’s Suresh Manadhar, Ionnis Klapaftis and Shailesh Pandey, the principle authors of the INDECT report, make their intentions clear.
Since "security" as the authors argue, "is becoming a weak point of energy and communications infrastructures, commercial stores, conference centers, airports and sites with high person traffic in general," they aver that "access control and rapid response to potential dangers are properties that every security system for such environments should have."
Does INDECT propose building a just and prosperous global society, thus lessening the potential that terrorist killers or other miscreants will exploit a "target rich environment" that may prove deadly for innocent workers who, after all, were the principle victims of the 2004 and 2007 terrorist outrages in Madrid and London? Hardly.
As with their colleagues across the pond, INDECT is hunting for the ever-elusive technological quick-fix, a high-tech magic bullet. One, I might add, that will deliver neither safety nor security but rather, will constrict the democratic space where social justice movements flourish while furthering the reach of unaccountable security agencies.
The document "describes the first deliverable of the work package which gives an overview about the main methodology and description of the XML data corpus schema and describes the methodology for collection, cleaning and unified representation of large textual data from various sources: news reports, weblogs, chat, etc."
The first order of business "is the study and critical review of the annotation schemes employed so far for the development and evaluation of methods for entity resolution, co-reference resolution and entity attributes identification."
In other words, how do present technologic capabilities provide police, security agencies and capitalist grifters with the ability to identify who might be speaking to whom and for what purpose. INDECT proposes to introduce "a new annotation scheme that builds upon the strengths of the current-state-of-the-art," one that "should be extensible and modifiable to the requirements of the project."
Asserting that "an XML data corpus [can be] extracted from forums and social networks related to specific threats (e.g. hooliganism, terrorism, vandalism, etc.)," the authors claim they will provide "different entity types according to the requirements of the project. The grouping of all references to an entity together. The relationships between different entities" and finally, "the events in which entities participate."
Why stop there? Why not list the ubiquitous "other" areas of concern to INDECT’s secret state partners? While "hooliganism, terrorism, vandalism, etc.," may be the ostensible purpose of their "entity attributes identification" project, surely INDECT is well aware that such schemes are just as easily applicable to local citizen groups, socialist and anarchist organizations, or to the innumerable environmental, human rights or consumer campaigners who challenge the dominant free market paradigm of their corporate sponsors.
The authors however, couldn’t be bothered by the sinister applications that may be spawned by their research; indeed, they seem quite proud of it.
"The main achievements of this work" they aver, "allows the identification of several types of entities, groups the same references into one class, while at the same time allows the identification of relationships and events."
Indeed, the "inclusion of a multi-layered ontology ensures the consistency of the annotation" and will facilitate in the (near) future, "the use of inference mechanisms such as transitivity to allow the development of search engines that go beyond simple keyword search."
Quite an accomplishment! An enterprising security service or capitalist marketing specialist need only sift through veritable mountains of data available from commercial databases, or mobile calls, tweets, blog posts and internet searches to instantaneously identity "key agitators," to borrow the FBI’s very 20th century description of political dissidents; individuals who could be detained or "neutralized" should sterner methods be required.
Indeed, a surveillance scheme such as the one INDECT is building could greatly facilitate–and simplify–the already formidable U.S. "Main Core" database that "reportedly collects and stores–without warrants or court orders–the names and detailed data of Americans considered to be threats to national security," as investigative journalists Tim Shorrock and Christopher Ketchum revealed in two disturbing reports last year.
The scale of "datasets/annotation schemes" exploited by INDECT is truly breathtaking and include: "Automatic Content Extraction" gleaned from "a variety of sources, such as news, broadcast conversations" that identify "relations between entities, and the events in which these participate."
We next discover what is euphemistically called the "Knowledge Base Population (KBP)," an annotation scheme that "focuses on the identification of entity types of Person (PER), Organization (ORG), and Geo-Political Entity (GPE), Location (LOC), Facility (FAC), Geographical/Social/Political (GPE), Vehicle (VEH) and Weapon (WEA)."
How is this accomplished? Why through an exploitation of open source materials of course!
INDECT researchers readily aver that "a snapshot of Wikipedia infoboxes is used as the original knowledge source. The document collection consists of newswire articles on the order of 1 million. The reference knowledge base includes hundreds of thousands of entities based on articles from an October 2008 dump of English Wikipedia. The annotation scheme in KBP focuses on the identification of entity types of Person (PER), Organization (ORG), and Geo-Political Entity (GPE)."
For what purpose? Mum’s the word as far as INDECT is concerned.
Nothing escapes this panoptic eye. Even popular culture and leisure activities fall under the glare of security agencies and their academic partners in the latest iteration of this truly monstrous privacy-killing scheme. Using the movie rental firm Netflix as a model, INDECT cites the firm’s "100 million ratings from 480 thousand randomly-chosen, anonymous Netflix customers" as "well-suited" to the INDECT surveillance model.
In conclusion, EU surveillance architects propose a "new annotation & knowledge representation scheme" that "is extensible," one that "allows the addition of new entities, relations, and events, while at the same time avoids duplication and ensures integrity."
Deploying an ontological methodology that exploits currently available data from open source, driftnet surveillance of news, broadcasts, blog entries and search results, and linkages obtained through a perusal of mobile phone records, credit card purchases, medical records, travel itineraries, etc., INDECT claims that in the near future their research will allow "a search engine to go beyond simple keyword queries by exploiting the semantic information and relations within the ontology."
And once the scheme is perfected, "the use of expressive logics … becomes an enabler for detecting entity relations on the web." Or transform it into an "always-on" spy you carry in your pocket or whenever you switch on your computer.
This is how our minders propose to keep us "safe."
CIA Gets In on the Fun
Not to be outdone, the CIA has entered the lucrative market of social networking surveillance in a big way.
In an exclusive published by Wired, we learn that the CIA’s investment arm, In-Q-Tel, "want to read your blog posts, keep track of your Twitter updates–even check out your book reviews on Amazon."
Investigative journalist Noah Shachtman reveals that In-Q-Tel "is putting cash into Visible Technologies, a software firm that specializes in monitoring social media. It’s part of a larger movement within the spy services to get better at using "open source intelligence"–information that’s publicly available, but often hidden in the flood of TV shows, newspaper articles, blog posts, online videos and radio reports generated every day." Wired reported:

Visible crawls over half a million web 2.0 sites a day, scraping more than a million posts and conversations taking place on blogs, online forums, Flickr, YouTube, Twitter and Amazon. (It doesn’t touch closed social networks, like Facebook, at the moment.) Customers get customized, real-time feeds of what’s being said on these sites, based on a series of keywords. (Noah Shachtman, Exclusive: U.S. Spies Buy Stake in Firm that Monitors Blogs, Tweets," Wired, October 19, 2009)

Although In-Q-Tel spokesperson Donald Tighe told Wired that it wants Visible to monitor foreign social media and give American spooks an "early-warning detection on how issues are playing internationally," Shachtman points out that "such a tool can also be pointed inward, at domestic bloggers or tweeters."
According to Wired, the firm already keeps tabs on 2.0 web sites "for Dell, AT&T and Verizon." And as an added attraction, "Visible is tracking animal-right activists’ online campaigns" against meat processing giant Hormel.
Shachtman reports that "Visible has been trying for nearly a year to break into the government field." And why wouldn’t they, considering that the heimat security and even spookier black world of the U.S. "intelligence community," is a veritable cash-cow for enterprising corporations eager to do the state’s bidding.
In 2008 Wired reports, Visible "teamed-up" with the Washington, DC-based consulting firm "Concepts & Strategies, which has handled media monitoring and translation services for U.S. Strategic Command and the Joint Chiefs of Staff, among others."
According to a blurb on the firm’s web site they are in hot-pursuit of "social media engagement specialists" with Defense Department experience and "a high proficiency in Arabic, Farsi, French, Urdu or Russian." Wired reports that Concepts & Strategies "is also looking for an ‘information system security engineer’ who already has a ‘Top Secret SCI [Sensitive Compartmentalized Information] with NSA Full Scope Polygraph’ security clearance."
In such an environment, nothing escapes the secret state’s lens. Shachtman reveals that the Office of the Director of National Intelligence (ODNI) "maintains an Open Source Center, which combs publicly available information, including web 2.0 sites."
In 2007, the Center’s director, Doug Naquin, "told an audience of intelligence professionals" that "’we’re looking now at YouTube, which carries some unique and honest-to-goodness intelligence…. We have groups looking at what they call ‘citizens media’: people taking pictures with their cell phones and posting them on the internet. Then there’s social media, phenomena like MySpace and blogs’."
But as Steven Aftergood, who maintains the Secrecy News web site for the Federation of American Scientists told Wired, "even if information is openly gathered by intelligence agencies it would still be problematic if it were used for unauthorized domestic investigations or operations. Intelligence agencies or employees might be tempted to use the tools at their disposal to compile information on political figures, critics, journalists or others, and to exploit such information for political advantage. That is not permissible even if all of the information in question is technically ‘open source’."
But as we have seen across the decades, from COINTELPRO to Operation CHAOS, and from Pentagon media manipulation during the run-up to the Iraq war through driftnet warrantless wiretapping of Americans’ electronic communications, the secret state is a law unto itself, a self-perpetuating bureaucracy that thrives on duplicity, fear and cold, hard cash.

Tom Burghardt is a frequent contributor to Global Research. Global Research Articles by Tom Burghardt

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