We now learn – from Der Spiegel last week and today’s NYT – that Goldman Sachs has not only helped or encouraged some European governments to hide a large part of their debts, but it also endeavored to do so for Greece as recently as last November. These actions are fundamentally destabilizing to the global financial system, as they undermine: the eurozone area; all attempts to bring greater transparency to government accounting; and the most basic principles that underlie well-functioning markets. When the data are all lies, the outcomes are all bad – see the subprime mortgage crisis for further detail.
A single rogue trader can bring down a bank – remember the case of Barings. But a single rogue bank can bring down the world’s financial system.
Goldman will dismiss this as “business as usual” and, to be sure, a few phone calls around Washington will help ensure that Goldman’s primary supervisor – now the Fed – looks the other way.
But the affair is now out of Ben Bernanke’s hands, and quite far from people who are easily swayed by the White House. It goes immediately to the European Commission, which has jurisdiction over eurozone budget issues. Faced with enormous pressure from those eurozone countries now on the hook for saving Greece, the Commission will surely launch a special audit of Goldman and all its European clients.
Phi Beta Iota: The balance of the above article is a “must read.”
Here are two excellent items on the greedy cultish institutional culture of Goldman Sachs, which has its own revolving door in and out of the Federal government.
Average pay this recessionary year for the 30,000 staff is expected to be a record $700,000. Top earners will get tens of millions, several hundred thousand times more than a cleaner at the firm. When they have finished getting “filthy rich by 40”, as the company saying goes, these alpha dogs don’t put their feet up. They parachute into some of the most senior political posts in the US and beyond, prompting accusations that they “rule the world”. Number 85 Broad Street is the home of Goldman Sachs.
Goldman and the other big Wall Street firms have already won big on this round. They will plow even more money into defeating political candidates who have opposed them – for example, on credit card legislation. The Republicans see this coming and are rubbing their hands with glee.
With their incentive structure intact – they get the upside and regular folk get the downside – and their closest friends on their way back to power, Big Finance is ready to roll into the next great global boom-bust cycle.
Phi Beta Iota: President Obama still does not get it–he was funded to keep Senator McCain out of the office, now he is going to be unfunded to put the original Republican sell-outs (Senator Phil Gamm R-TX et al) back in. What the President especially does not get is that the only way to put Goldman Sachs back in its box is to let We the People out of ours. Electoral Reform in time for November 2010 (first four elements) and then 2012 does three things: 1) assures him of a second term; 2) buries the two-party tyranny; and 3) restores honest civil reality-based give and take to our democracy.
More Than Espionage: Open-source intelligence should be part of solution
Washington Times January 27, 2010 Pg. B3
By Andrew M. Borene
Here's some food for thought: White House policymakers and Congress can help develop an increasingly robust national intelligence capacity by investing new money in the pursuit of a centralized open-source intelligence (OSINT) infrastructure.
Phi Beta Iota: In 1992 it was the Central Intelligence Agency (CIA) and The MITRE Corporation that destroyed the emergent Open Source Intelligence (OSINT) movement. CIA refused to deal with OSINT unless everyone associated with it was a U.S. citizen with a SECRET clearance (we do not make this stuff up), and MITRE misled the US Government in such a way as to promote their Open Source Information System (OSIS) that ended up providing analysts mediocre high-side access to six open sources (LEXIS-NEXIS, Oxford Analytics, Jane's Information Group, Predicast and two other non-memorable sources). The US Marine Corps, which was the proponent for OSINT based on the lessons learned in creating the Marine Corps Intelligence Center (MCIC), argued for an outside the wire center of excellence that would have access to all sources in all languages (in part because the “experts” flogged by contracting firms may have been expert once, but are not “the” expert on any given topic for any given day–for that we prize European and Chinese and Latin American graduate students about to receive their PhD).
During his tenure as Director of the Community Open Source Program Office (COSPO), Dr. Joe Markowitz, the only person ever to actually understand OSINT within CIA, closely followed by Carol Dumaine, founder of the Global Futures Partership, tried four years in a row, with the support of Charlie Allen, then Deputy Director for Collection (DDCI/C), to get an OSINT program line established. Four years in a row, Joan Dempsey, then Deputy Director for Community Management (DDCI/CM) refused. The secret IC is incapable of creating an Open Source Agency (OSA) as called for by the 9-11 Commission, and any money it puts in that direction will be wasted unless the Simmons-Steele-Markowitz recommendations briefed to the Office of Management and Budget (OMB) are respected.
Dr. Markowitz is also the author of the OSINT portions of vital Defense Science Board reports such as Transitions to and from Hostilities, and is unique within the CIA alumni for understanding both the needs of defense and the possibilities of OSINT. COSPO was an honest effort–CIA/OSC is not.
CIA and LEXIS-NEXIS still do not get it–they both want a monopoly on a discicpline they do not understand and cannot monopolize. The US Government is a BENEFICIARY of OSINT, not its patron, and any endeavor that is not outside the wire, transparent, and under diplomatic and civil affairs auspices, is destined to fail, just as CIA/OSC has failed all these years, just as LEXIS-NEXIS, Oxford Analytica, and Jane's Information Group have failed on substance all these years. They profit from government ignorance, they do not profit from actually connecting the government to sources that are largely free, not online, and not in English.
Warning: Your Cell Phone May Be Hazardous to Your Health (GQ)
Christopher Ketcham
Ever worry that that gadget you spend hours holding next to your head might be damaging your brain? Well, the evidence is starting to pour in, and it's not pretty. So why isn't anyone in America doing anything about it?
Phi Beta Iota: This is “old” news that is still news because neither the government nor the public actually pay attention. We've known since the 1980's that Soviet emission controls were ten times tougher than ours, and now in Afghanistan as we find UAVs and all other devices conflicting with each other across old “dumb” (assigned) spectrum, we are learning, AGAIN, why spectrum consciousness matters. Open Spectrum and smart devices are the way to go, along with public truth-telling about electromagnetic emissions as part of the “true cost” of all devices.
In a small study, parents ordered about 20 percent fewer calories for their kids when they chose from a menu with nutrition information on it, Dr. Pooja Tandon of the University of Washington and colleagues reported online in the journal Pediatrics.
“One hundred calories over time and at a population level is actually a significant amount in terms of being able to avert weight gain,” Tandon told MedPage Today.
Phi Beta Iota: This is noteworthy as an example of the importance of providing the public with “true cost” information at the point of every sale–not just of food, but of all products and services. What most businesses have not realizes that that the only sustainable business is one that is both green and attractive to an informed public. Advertising should NOT be a tax-deductible expense, providing truthful information about any product or service should be tax deductible.
Cars are evil, right? But what if they ran on hydrogen, did 300 miles per gallon, were leased rather than owned, and were produced under an open source business model…
Riversimple’s network electric car is a hydrogen fuel cell powered car, with unique technologies that enable it to run on a 6kW fuel cell, with a fuel consumption equivalent to 300 miles per gallon and greenhouse gas emissions at 30g per km, well-to-wheel – less than a third of that from the most efficient petrol-engine cars currently available.
It also has the potential to be 10 times cleaner still if the hydrogen is produced from renewable energy.
Phi Beta Iota: “Open Everything” is not just a meme, it is the gameplan for the simple reason that open everything abolishes scarcity and makes it possible to create a prosperous world at peace. Intelligence-driven peace and prosperity. What a concept.
Simon Johnson, former chief economist of the IMF, lays out the political case for “Trust Busting” in the 21st Century — it is a political argument that Andrew Jackson and Teddy Roosevelt would have understood and probably approved of.
At this stage in the electoral cycle, Democrats should be running hard against big banks and their consequences. Some roots of our current economic difficulties lie in the Clinton 1990s, but the real origins can be traced to the financial deregulation at the heart of the Reagan Revolution – and all the underlying problems became much worse in eight years of George W. Bush’s unique brand of excess and neglect.
The theme for the November midterms should be: Which part of the 8 million jobs lost [since December 2007] do you not understand? The big banks must be reined in and forced to break themselves up, or we’ll head directly for another such crisis.
Instead, the Democrats have fallen into a legislative and electoral trap that – amazingly – they built for themselves.
