New Productivity Apps May Forever Change The Way Computers Are Used!

Posted By on November 18, 2013

Back in December of last year, Apple’s co-founder Steve Wozniak talked about IT (Information Technology) Forecasts for 2013.  One of his thoughts listed in Forbes click here: (http://www.forbes.com/sites/ericsavitz/2012/12/13/woz-the-great-and-powerful-his-it-forecasts-for-2013/) involved BYOD. That stands for Bring Your Own Device, meaning iPad’s and cell phones that can work on office projects and utilize computer access from anywhere.  Here is a look at what the great Waz is thinking about.

Businesses will think differently about BYOD and consumerization of IT

BYOD – bring your own device – is a complicated topic, but one of the main advantages is the ability to work with the device you’re familiar with – the one you choose to use in your own life to connect with the people and things that are important to you. And we personalize our devices to make them truly our own. You can’t pick up a colleague’s smartphone and be just as productive with it – key apps will be missing, app icons will be placed in different physical locations, the screen size may be too big or small for your purposes, and in the end limit your effectiveness.

Businesses will continue to adapt to employees’ needs and the BYOD trend, but they will always want to provide employees with mobile devices, which inevitably feel more like company property. However, I think employees will not think twice about personalizing these devices the way they personalize their own devices in the coming year more so than ever. Businesses will learn that it is worth investing resources to diversify the platforms and devices they provide and support – not just for efficiency’s sake but to also increase morale. “Choice” is happiness and will become a motivational tool enterprises use to their advantage.

And finally, collaboration will transcend platforms.

It will be increasingly important for any given collaboration package or other app to run on a multitude of platforms – not just one. Taking the easy way out and developing for just one platform will not be acceptable. To be fair though, this multi-platform support imperative extends way beyond BYOD. Like I said in the beginning, 2013 is going to be the year of choice. Whether it’s your phone or the company’s, working from your office or the coffee shop, one option isn’t going to cut it anymore and the companies who can anticipate the next way to use technology smartly and effectively are the ones that will rise to the top this year.

Interestingly, HopTo ticker symbol HPTO, (www.hopto.coma small software company in Campbell California has just released (Thursday, November 14) their comprehensive mobile workspace Apple iPad app, and it’s right in line with what the great Wozniak was explaining above. They’ve build a program that allows BYOD Apple iPad’s to work perfectly on two of Microsoft’s most important  programs, Word and Excel, and it operates without old style screen scraping techniques used by competitors.

This is a big big thing. The program allows computers to be accessed independent of their location from anywhere, and at any time including the ability to multitask multiple documents at the same time.  It also allows access to aggregate documents wherever they are stored i.e., public clouds including drop box, google drive, box,or sky dive, and personal clouds, home PC and work PC.  While other companies (LogMeIn, GoToMyPC,and Splash Top), have the ability to do some or all of these things, they use an older screen scrapping technology which does not size the program to screen properly.  We would suggest anyone using BYOD go to the Apple app store or HopTo’s website and download this free HopTo app and see just how transformational it really is. 

Lastly, this proves that many small companies can be inovative and early to market with new IT (Information Technology).

Sources: Wise Dog Research, Forbes, www.hopto.com

 

2048-Bit Encryption And “Perfect Forward Secrecy” Hopes To Slow Down The NSA

Posted By on November 17, 2013

The National Institute of Standards and Technology has determined that known computing power won’t be able to break 2048-bit encryption until at least 2030. Anyone willing to bet it happens much sooner….

NSA (National Security Agency) spy programs have “the great potential for doing serious damage to the competitiveness” of U.S. companies, Richard Salgado, Google’s director of law enforcement and information security, told a Senate subcommittee Nov. 13.

Yahoo will make encrypted connections standard by January for all its Mail users with 2048-bit digital keys, Sarah Meron, a spokeswoman for the Sunnyvale, California-based company, said in an e-mail.

Facebook, in addition to moving toward 2048-bit encryption keys, is accelerating a tactic known as “perfect forward secrecy” that prevents the NSA from deciphering the communications of users if it obtains a security code, Jodi Seth, a company spokeswoman, said in an e-mail.

Google has led the industry in adopting security practices, and made security changes back in 2010.

For more understanding of the NSA, click on the blue highlight…..http://en.wikipedia.org/wiki/National_Security_Agency

Sources: Wise Dog Research, Bloomberg

The Taxation Office

Posted By on November 16, 2013

The Taxation Office recently sent an agent out to get follow up information on a situation that needed clarification! The Taxation Office suspected that a fishing boat owner wasn’t paying proper wages to his deckhand. Here is how that meeting went.

Taxation AUDITOR:    ” I need a list of your employees and how much you pay them”.

Boat Owner: “Well, there’s Clarence, my deckhand, he’s been with me for 3 years. I pay him $1,000 a week plus free room and board. Then there’s the mentally challenged guy. He works about 18 hours every day and does about 90% of the work around here. He makes about $10 per week, pays his own room and board, and I buy him a bottle of Bundaberg rum and a dozen Crown Lagers every Saturday night so he can cope with life. He also gets to sleep with my wife occasionally”.

Taxation AUDITOR:  “That’s the guy I want to talk to – the mentally challenged one”.

Boat Owner:   “That’d be me. How can I help you?”

The Internet Is Weaponized, Are You The Target? QUANTUM Knows!

Posted By on November 16, 2013

Thanks to Edward Snowden, it is common knowledge and not just conspiracy theory, that every bit of information sent out into the wired or wireless world ether is scanned, probed, intercepted… and ultimately recorded by the NSA and subsequently all such information can be used against any U.S. citizen or anybody else for that matter.

And TOR (The Onion Router) which we reviewed here by clicking on the blue lettering…( What Exactly Is Tor, And How Did It Work Anonymously?) may not be so anonymous anymore. Why you say? User cookies, those inserted by both advertising networks and services, also serve as great identifiers for NSA targeting. Yet a web browser only reveals these cookies when communicating with such sites. A solution lies in the NSA’s QUANTUMCOOKIE attack, which they’ve utilized to de-anonymize Tor users.

Wired magazine reports, (Click on the blue to read)… “The internet backbone — the infrastructure of networks upon which internet traffic travels — went from being a passive infrastructure for communication to an active weapon for attacks.”

This from Wired and Zero Hedge:

Enter the QUANTUM program….

According to revelations about the QUANTUM program, the NSA can “shoot” (their words) an exploit at any target it desires as his or her traffic passes across the backbone. It appears that the NSA and GCHQ were the first to turn the internet backbone into a weapon; absent Snowdens of their own, other countries may do the same and then say, “It wasn’t us. And even if it was, you started it.”

If the NSA can hack Petrobras, the Russians can justify attacking Exxon/Mobil. If GCHQ can hack Belgacom to enable covert wiretaps, France can do the same to AT&T. If the Canadians target the Brazilian Ministry of Mines and Energy, the Chinese can target the U.S. Department of the Interior. We now live in a world where, if we are lucky, our attackers may be every country our traffic passes through except our own.

Which means the rest of us — and especially any company or individual whose operations are economically or politically significant — are now targets. All cleartext traffic is not just information being sent from sender to receiver, but is a possible attack vector.

Which is basically packet injection:

The QUANTUM codename is deliciously apt for a technique known as “packet injection,” which spoofs or forges packets to intercept them. The NSA’s wiretaps don’t even need to be silent; they just need to send a message that arrives at the target first. It works by examining requests and injecting a forged reply that appears to come from the real recipient so the victim acts on it.

The technology itself is actually pretty basic. And the same techniques that work on on a Wi-Fi network can work on a backbone wiretap. I personally coded up a packet-injector from scratch in a matter of hours five years ago, and it’s long been a staple of DefCon pranks.

Traditionally, packet injections has been used mostly for censorship purposes:

The most infamous use of packet injection prior to the Snowden leaks was censorship, where both internet service providers (ISPs) and the Great Firewall of China injected TCP reset packets (RST) to block undesired traffic. When a computer receives one of these injected RST packets, it closes the connection, believing that all communication is complete.

Although public disclosure forced ISPs to stop this behavior, China continues to censor with injected resets. It also injects the Domain Name System (DNS) — the system all computers use to turn names such as “www.facebook.com” into IP addresses — by inserting a fake reply whenever it sees a forbidden name. (It’s a process that has caused collateral damage by censoring non-Chinese internet traffic).

And user identification, especially in making Tor obsolete. That’s right: all users of Tor believing they hide behind the veil of anonymity – you aren’t.

User cookies, those inserted by both advertising networks and services, also serve as great identifiers for NSA targeting. Yet a web browser only reveals these cookies when communicating with such sites. A solution lies in the NSA’s QUANTUM COOKIE attack, which they’ve utilized to de-anonymize Tor users.

A packet injector can reveal these cookies by replying to an unnoticed web fetch (such as a small image) with a HTTP 302 redirect pointing to the target site (such as Hotmail). The browser now thinks “hey, should really go visit Hotmail and ask it for this image”. In connecting to Hotmail, it reveals all non-secure cookies to the wiretap. This both identifies the user to the wiretap, and also allows the wiretap to use these cookies.

So for any webmail service that doesn’t require HTTPS encryption, QUANTUMCOOKIE also allows the wiretap to log in as the target and read the target’s mail. QUANTUMCOOKIE could also tag users, as the same redirection that extracts a cookie could also set or modify a cookie, enabling the NSA to actively track users of interest as they move across the network — although there is no indication yet that the NSA utilizes this technique.

But all of the above are largely passive interception and surveillance strategies. Where it gets interesting is when the NSA’s mission is…

User Attack

The NSA has a collection of FOXACID servers, designed to exploit visitors. Conceptually similar to Metasploit’s WebServer browser autopwn mode, these FOXACID servers probe any visiting browser for weaknesses to exploit.

All it takes is a single request from a victim passing a wiretap for exploitation to occur. Once the QUANTUM wiretap identifies the victim, it simply packet injects a 302 redirect to a FOXACID server. Now the victim’s browser starts talking to the FOXACID server, which quickly takes over the victim’s computer. The NSA calls this QUANTUMINSERT.

The NSA and GCHQ used this technique not only to target Tor users who read Inspire (reported to be an Al-Qaeda propaganda magazine in the English language) but also to gain a foothold within the Belgium telecommunication firm Belgacom, as a prelude to wiretapping Belgium phones.

One particular trick involved identifying the LinkedIn or Slashdot account of an intended target. Then when the QUANTUM system observed individuals visiting LinkedIn or Slashdot, it would examine the HTML returned to identify the user before shooting an exploit at the victim. Any page that identifies the users over HTTP would work equally well, as long as the NSA is willing to write a parser to extract user information from the contents of the page.

Other possible QUANTUM use cases include the following. These are speculative, as we have no evidence that the NSA, GCHQ, or others are utilizing these opportunities. Yet to security experts they are obvious extensions of the logic above.

HTTP cache poisoning. Web browsers often cache critical scripts, such as the ubiquitous Google Analytics script ‘ga.js’. The packet injector can see a request for one of these scripts and instead respond with a malicious version, which will now run on numerous web pages. Since such scripts rarely change, the victim will continue to use the attacker’s script until either the server changes the original script or the browser clears its cache.

Zero-Exploit Exploitation. The FinFly “remote monitoring” hacking tool sold to governments includes exploit-free exploitation, where it modifies software downloads and updates to contain a copy of the FinFisher Spyware. Although Gamma International’s tool operates as a full man-in-the-middle, packet injection can reproduce the effect. The injector simply waits for the victim to attempt a file download, and replies with a 302 redirect to a new server. This new server fetches the original file, modifies it, and passes it on to the victim. When the victim runs the executable, they are now exploited — without the need for any actual exploits.

Mobile Phone Applications. Numerous Android and iOS applications fetch data through simple HTTP. In particular, the “Vulna” Android advertisement library was an easy target, simply waiting for a request from the library and responding with an attack that can effectively completely control the victim’s phone. Although Google removed applications using this particular library, other advertisement libraries and applications can present similar vulnerabilities.

DNS-Derived Man-in-the-Middle. Some attacks, such as intercepting HTTPS traffic with a forged certificate, require a full man in the middle rather than a simple eavesdropper. Since every communication starts with a DNS request, and it is only a rare DNS resolver that cryptographically validates the reply with DNSSEC, a packet injector can simply see the DNS request and inject its own reply. This represents a capability upgrade, turning a man-on-the-side into a man-in-the-middle.

One possible use is to intercept HTTPS connections if the attacker has a certificate that the victim will accept, by simply redirecting the victim to the attacker’s server. Now the attacker’s server can complete the HTTPS connection. Another potential use involves intercepting and modifying email. The attacker simply packet-injects replies for the MX (Mailserver) entries corresponding to the target’s email. Now the target’s email will first pass through the attacker’s email server. This server could do more than just read the target’s incoming mail, it could also modify it to contain exploits.

Amplifying Reach. Large countries don’t need to worry about seeing an individual victim: odds are that a victim’s traffic will pass one wiretap in a short period of time. But smaller countries that wish to utilize the QUANTUMINSERT technique need to force victims traffic past their wiretaps. It’s simply a matter of buying the traffic: Simply ensure that local companies (such as the national airline) both advertise heavily and utilize in-country servers for hosting their ads. Then when a desired target views the advertisement, use packet injection to redirect them to the exploit server; just observe which IP a potential victim arrived from before deciding whether to attack. It’s like a watering hole attack where the attacker doesn’t need to corrupt the watering hole.

Can anything be done to prevent the NSA’s internet army from running over a world that spends the bulk of its time in its reaches? Not much:

The only self defense from all of the above is universal encryption. Universal encryption is difficult and expensive, but unfortunately necessary. Encryption doesn’t just keep our traffic safe from eavesdroppers, it protects us from attack. DNSSEC validation protects DNS from tampering, while SSL armors both email and web traffic.

There are many engineering and logistic difficulties involved in encrypting all traffic on the internet, but its one we must overcome if we are to defend ourselves from the entities that have weaponized the backbone.

Alas, in the battle against the NSA, the biggest enemy is not the authoritarian state’s Super Big Brother, but apathy itself. It is that war that is by far the most important one, and which America has already lost.

Sources: Wise Dog, Zero Hedge, Wired

 

New Hidden Taxes Target The Rich

Posted By on November 14, 2013

We’ve been saying that the rich are going to make themselves into colorful targets for new hybrid taxes, click here to read about it, (I’m Smarter, That’s Why I’m Richer Than You…), so here we go….they’re just getting started with the hidden tax trickery!

Luxury real estate broker Ron Aioso says there is a tax that is rarely discussed that also helps fund Obamacare. It is a tax on high-income taxpayers when they sell their homes.

Franklin Lakes, N.J. was listed on Forbes.com in 2010 as one of “America’s Most Expensive ZIP Codes”, with a median home price of $1.3M.

Aioso says homeowners in a neighborhood like this could really be impacted by the Obamacare tax.

“Where we are today in a luxury area, you look and you see this home behind me, somebody like this is really affected,” he said.

If you are single with an adjusted gross income of $200,000 or file jointly with an income of $250,000 or more, you may be impacted. Once you sell your home, any profits over the first $500,000 are already subject to a capital gains tax. And now those profits will have an additional 3.8% tax to fund Obamacare.

Aioso noted that there is also a lot of confusion surrounding this tax and many homeowners know little about it.

“I think more than anything we need some education on it so people fully understand what is this 3.8%? What am I paying?” Aioso said.

Sources: Wise Dog Research, My9NJ.com

Cashin’s Comments…From The Floor Of The New York Stock Exchange, But This Isn’t About The Stock Market..Read On

Posted By on November 13, 2013

Arch Crawford sends out dosey of a note last night (Tuesday)……  Arch is renowned for his astrological calls on the stock market but this note of caution is not astrological. It is based on a helio-centric theory of astronomy advanced by John H. Nelson, an engineer at RCA back in the early 1950’s. In the days before satellites, global radio signals could often be disrupted by upper atmosphere disturbances (ionization), which, Nelson maintained, were linked to solar flares and sunspots. Nelson attempted to predict the flares and spots by developing a kind of tidal theory for the sun. Just as the tides on Earth vary according to the movement and relationship of the moon and sun; Nelson thought the angles of the planets might affect the “tides” of the sun.

If you are still awake…..

This from Art Cashin, written in his Cashin Comments Daily Report, from the floor of The New York Stock Exchange:

Last night, Arch Crawford sent the following email to some friends and subscribers:

We have written for awhile that Solar Storms will disrupt portions of electrical grids on the earth. Energy of storms heaviest Nov 13 & 23. There’s Great danger of “inconvenience”; some danger that the grids will fail. Article on pg 3 of WSJ Monday says the scientists are confused by the actions of the SUN. My work is NOT confused. Solar turmoil will Max-Out within +/-20 hours of noon on Wednesday (Nov 13).  Light/X-Rays/Gamma-Rays will get here in 8.5 minutes after solar events; Electrons in 6-16 hours; Damaging Protons on avg. 2.5 days. We recommend having extra food/water/cash on hand just in case. Also, Pray that it is a “glancing blow”!   First a little background.   Arch is renowned for his astrological calls on the stock market but the above caution is not astrological.  It is based on a helio-centric theory of astronomy advanced by John H. Nelson, an engineer at RCA back in the early 1950’s.   In the days before satellites, global radio signals could often be disrupted by upper atmosphere disturbances (ionization), which, Nelson maintained, were linked to solar flares and sunspots.  Nelson attempted to predict the flares and spots by developing a kind of tidal theory for the sun.   Just as the tides on Earth vary according to the movement and relationship of the moon and sun; Nelson thought the angles of the planets might affect the “tides” of the sun. 

Art Cashin also knows a thing or two about astrology himself, so here’s his reply:

I became acquainted with Nelson’s helio-centric tidal theories in line with some stock market cycle work I did back in the 1970s.   Now that you know more than you need (or want) to know about solar system astrophysics, let me suggest I differ with Arch on this one.  The planets he cites are Jupiter, Uranus and Pluto.  Jupiter, due to its size, was a key to Nelson’s theory but Uranus and Pluto less so.  So, if I am right (hopefully), we may have an event but not a huge one.  [Now, if it were Jupiter and Saturn, where’s the cellar?]

Update: November 15….        Art Cashin

An Astrophysical Update  In Wednesday’s Comments, we noted that our pal, Arch Crawford, had cautioned some friends and clients about a possible event on the sun.
 
Now since your phone didn’t go down nor you iPad explode, you may think nothing happened.  That’s not quite correct.
 
There was, in fact, a solar flare and a rather large one at that  the largest in the recent series of flares.  And, it even occurred near the time that Arch had projected.
 
But, luckily for all of us, it was not the super flare that Arch thought might be an outside possibility.
 
We hope Arch keeps us in mind when he sees any future possibilities.  Forewarned is forearmed even in the solar system. 

 

Sources: Wise Dog Research, Art Cashin, Arch Crawford

 

Scientists Warn Of Extreme Risk At Fukushima…Is Japan Listening, We Hope So!

Posted By on November 9, 2013

 If this doesn’t scare you, nothing will!

The Japanese nuclear agency has green-lighted the removal of the spent fuel rods from Fukushima reactor 4′s spent fuel pool. The operation is scheduled to begin this month. Hmm…..

The head of the U.S. Department of Energy correctly notes:

The success of the cleanup also has global significance. So we all have a direct interest in seeing that the next steps are taken well, efficiently and safely.

If one of the pools collapsed or caught fire, it could have severe adverse impacts not only on Japan … but the rest of the world, including the United States. Indeed, a Senator called it a national security concern for the U.S.:

The radiation caused by the failure of the spent fuel pools in the event of another earthquake could reach the West Coast within days. That absolutely makes the safe containment and protection of this spent fuel a security issue for the United States.

….

Award-winning scientist David Suzuki says that Fukushima is terrifying, Tepco and the Japanese government are lying through their teeth, and Fukushima is “the most terrifying situation I can imagine”.

Suzuki notes that reactor 4 is so badly damaged that – if there’s another earthquake of 7 or above – the building could come down. And the probability of another earthquake of 7 or above in the next 3 years is over 95%.

Suzuki says that he’s seen a paper that says that if – in fact – the 4th reactor comes down, “it’s bye bye Japan, and everyone on the West Coast of North America should evacuate. Now if that’s not terrifying, I don’t know what is.”

The Telegraph reports:

The operator of Japan’s crippled Fukushima nuclear power plant … will begin a dry run of the procedure at the No. 4 reactor, which experts have warned carries grave risks.

***

Did you ever play pick up sticks?” asked a foreign nuclear expert who has been monitoring Tepco’s efforts to regain control of the plant. “You had 50 sticks, you heaved them into the air and than had to take one off the pile at a time.

“If the pile collapsed when you were picking up a stick, you lost,” he said. “There are 1,534 pick-up sticks in a jumble in top of an unsteady reactor 4. What do you think can happen?

I do not know anyone who is confident that this can be done since it has never been tried.”

ABC notes:

One slip-up in the latest step to decommission Japan’s crippled Fukushima nuclear plant could trigger a “monumental” chain reaction, experts warn.

***

Experts around the world have warnedthat the fuel pool is in a precarious state – vulnerable to collapsing in another big earthquake.

Yale University professor Charles Perrow wrote about the number 4 fuel pool this year in the Bulletin of Atomic Scientists.

“This has me very scared,” he told the ABC.

Tokyo would have to be evacuated because [the] caesium and other poisons that are there will spread very rapidly.

Former Japanese ambassador Akio Matsumura warns that – if the operation isn’t done right – this could one day be considered the start of “the ultimate catastrophe of the world and planet”:

Nuclear expert Arnie Gundersen and physician Helen Caldicott have both said that people should evacuate the Northern Hemisphere if one of the Fukushima fuel pools collapses.

Japan’s Top Nuclear Regulator Says that The Operation Carries a “Very Large Risk Potential”

Even the head of Japan’s nuclear agency is worried. USA Today notes:

Nuclear regulatory chairman Shunichi Tanaka, however, warned that removing the fuel rods from Unit 4 would be difficult because of the risk posed by debris that fell into the pool during the explosions.

It’s a totally different operation than removing normal fuel rods from a spent fuel pool,” Tanaka said at a regular news conference. “They need to be handled extremely carefully and closely monitored. You should never rush or force them out, or they may break.”

He said it would be a disaster if fuel rods are pulled forcibly and are damaged or break open when dropped from the pool, located about 30 meters (100 feet) above ground, releasing highly radioactive material. “I’m much more worried about this than contaminated water,” Tanaka said

….

Fuel rod expert Arnie Gundersen – a nuclear engineer and former senior manager of a nuclear power company which manufactured nuclear fuel rods – recently explained the biggest problem with the fuel rods:

I think they’re belittling the complexity of the task. If you think of a nuclear fuel rack as a pack of cigarettes, if you pull a cigarette straight up it will come out — but these racks have been distorted. Now when they go to pull the cigarette straight out, it’s going to likely break and release radioactive cesium and other gases, xenon and krypton, into the air. I suspect come November, December, January we’re going to hear that the building’s been evacuated, they’ve broke a fuel rod, the fuel rod is off-gassing.

Gundersen provides additional details:

The racks are distorted from the earthquake — oh, by the way, the roof has fallen in, which further distorted the racks.

The net effect is they’ve got the bundles of fuel, the cigarettes in these racks, and as they pull them out, they’re likely to snap a few. When you snap a nuclear fuel rod, that releases radioactivity again, so my guess is, it’s things like krypton-85, which is a gas, cesium will also be released, strontium will be released. They’ll probably have to evacuate the building for a couple of days. They’ll take that radioactive gas and they’ll send it up the stack, up into the air, because xenon can’t be scrubbed, it can’t be cleaned, so they’ll send that radioactive xenon up into the air and purge the building of all the radioactive gases and then go back in and try again.

It’s likely that that problem will exist on more than one bundle. So over the next year or two, it wouldn’t surprise me that either they don’t remove all the fuel because they don’t want to pull too hard, or if they do pull to hard, they’re likely to damage the fuel and cause a radiation leak inside the building. So that’s problem #2 in this process, getting the fuel out of Unit 4 is a top priority I have, but it’s not going to be easy. Tokyo Electric is portraying this as easy. In a normal nuclear reactor, all of this is done with computers. Everything gets pulled perfectly vertically. Well nothing is vertical anymore, the fuel racks are distorted, it’s all going to have to be done manually. The net effect is it’s a really difficult job. It wouldn’t surprise me if they snapped some of the fuel and they can’t remove it.

The Japan Times writes:

The consequences could be far more severe than any nuclear accident the world has ever seen. If a fuel rod is dropped, breaks or becomes entangled while being removed, possible worst case scenarios include a big explosion, a meltdown in the pool, or a large fire. Any of these situations could lead to massive releases of deadly radionuclides into the atmosphere, putting much of Japan — including Tokyo and Yokohama — and even neighboring countries at serious risk.

Postscript: As challenging as removing the fuel rods from the pool at unit 4 will be, it will be even harder at units 1 through 3. Specifically, it’s too radioactive for Tepco to even get a look at what’s going on in those 3 reactor pools, and they have no idea how to do it. Indeed, the technology does not even exist to approach those reactors, as the high radiation levels quickly destroy even robots.

Nuclear fuel rod expert Gundersen says the pool at unit 3 is in much worse shape than at 4:

Unit 3 is worse [than No. 4]. Mechanically its rubble, the pool is rubble. It’s got less fuel in it [than unit 4, but] structurally the pool has been dramatically weakened. And, god nobody has even gotten near it yet.

Have a nice day!

Wise Dog Research, Zero Hedge, George Washington’s Blog,  Japan Times, USA Today,  The Telegraph, ABC

The “World’s Strongest Cyclone Ever” Slams Into The Philippines With 200 MPH Winds

Posted By on November 8, 2013

It looks like half of the Philippine islands sugar cane crop could be destroyed as a result of the Typhoon, according to Bloomberg.

This is the equivalent of a Category 5 hurricane hitting the Philippines today. With sustained winds of 315 kph (195 mph) and gusts as strong as 380 kph (235 mph), Haiyan was probably the strongest tropical cyclone to hit land anywhere in the world in recorded history .But “If it maintains its strength, there has never been a storm this strong making landfall anywhere in the world,” said Jeff Masters, founder of Weather Underground in Ann Arbor, Michigan. “This is off the charts.”

Wise Dog, Zero Hedge, Bloomberg

Legal Experts: Why Even TOTALLY INNOCENT People Should Avoid Talking To Law Enforcement

Posted By on November 8, 2013

A law school professor and former criminal defense attorney says you should never agree to be interviewed by the police!  It just makes common sense to have a lawyer present if you are approched by law enforcement.

There are so many federal and state laws in the United States now, that no one can keep track of them all, and everyone violates laws every day without even knowing it..

Interestingly, the Supreme Court ruled this year that (click on the blue highlight to read ) your silence CAN be used against you (the link is to the website of one of America’s top constitutional law professors) … at least until you’re read your Miranda rights.  Therefore, if you remain silent when police are questioning you, it is very important to tell the police that you are exercising your right to remain silent.  As the Atlantic notes (click the blue highlight):

…….

Basically, if you’re ever in any trouble with police… and want to keep your mouth shut, you will need to announce that you’re invoking your Fifth Amendment right instead of, you know, just keeping your mouth shut.  [Supreme Court] opinion “Petitioner’s Fifth Amendment claim fails because he did not expressly invoke the privilege against self-incrimination in response to the officer’s question,”.

Sources: Zero Hedge,   Wise Dog Research,   The Atlantic Wire

“Keep Your Own Insurance” Bill Heads For A Vote With Both House And Senate Versions

Posted By on November 7, 2013

It’s only fair play to admit when something’s wrong especially if it’s obvious.  The President’s health plan has termites in it, and the termites will take down the whole structure if not fixed soon.

From The Hill:

House Republican leaders announced Wednesday the lower chamber will vote next week on a bill that would allow people to keep their health insurance plan if they like it. 

Upton’s bill authorizes insurance companies to keep offering plans that they have said need to be canceled because of ObamaCare’s new insurance standards. Since early October, companies have sent out millions of notices to enrollees saying their plans will be scrapped and, in many cases, replaced by more expensive plans.

The Keep Your Health Plan Act, H.R. 3350, was introduced last week by House Energy & Commerce Committee Chairman Fred Upton (R-Mich.) and more than two dozen Republicans. As of Wednesday, co-sponsorship had grown to 88 members and still growing.

“Despite the president’s repeated promise of ‘if you like your plan, you can keep it,’ many Americans are now learning the sad reality that their current plan will no longer exist beginning on Jan. 1,” Upton said last week. “Instead they are forced to purchase healthcare that they cannot afford through a system that does not even work, and that’s just not fair.”

Even the Democrats want in on this,  including two in the Senate — Sens. Mary Landrieu (D-La.) and Joe Manchin (D-W.Va.) — who have proposed a similar bill.

Sources: www.TheHill.com, Wise Dog Research

I’m Smarter, That’s Why I’m Richer Than You – Is The Rich War Cry…Uh, Maybe, Then Again Maybe Not!… But Either Way Governments Are Getting A Little More Desperate Now, And The Rich Are Making Themselves Into Very Colorful Feathered Targets For New Mega Wealth Taxes!

Posted By on November 5, 2013

The easy target with colorful feathers spread wide are the rich and the super rich.  Ice Cap Asset Management explains and the IMF builds the case…..Absent economic growth, higher taxes are the only perceived option. Be prepared.

Ice Cap in summary….”Meanwhile, our analysis of the global economy continues to show a lack of any acceleration. Instead growth remains quite stagnant. As a result, we fully expect to see tax increases in many countries with a particular focus on property taxes, surtaxes on the rich, as well as the potential for a one-off wealth tax on everyone but the poor.”

“Investors should expect unusual times to continue.”

Here are a few snipets from a presentation given by Ice Cap Asset Management…

Those that truly follow global markets and understand the very big picture painted by our central banks and government finance departments understand that financial markets today do not represent the economic reality that we have all been trained to believe. After all, the confusion emanating from financial markets, individual companies, and macro data points certainly bakes one big confusion pie. It just seems that nothing makes sense. Or does it?

Further on…..

Since losses or write-downs will only be delayed, we should understand that the only way for governments to seemingly get their fiscal house under control is first to rely upon a significantly stronger economy – the kind of economic miracle that will allow a country to grow out of their debt problems. This mystical economic miracle has never occurred: don’t hold your breath waiting.

This leaves our governments with the option of increasing taxes and/or reducing spending. As we’ve seen in Europe and America, governments are simply incapable of spending less. They may find a way of slowing the amount of spending growth, but at the end of the day the net effect is still more spending, more deficits and subsequently – more debt.

In their minds, this leaves higher taxes as the only option. And, of course when their eyes spy who, and what, they can tax – the transformation from tiny pupils to mammoth saucers is complete; the wealthy are about to get hit with some pretty big tax bills.

There’s no escaping it. The wealthy make up a minority, meaning they do not control the vote. How much the wealthy can really contribute, is irrelevant; as President Obama says they must “pay their fair share.” Of course, what is swinging in the wind is the subjective definition of the all important word – fair.

To begin with, the IMF produces a very nice, voter friendly summary of the exact benefits of taxing the super rich. Reading the tea leaves, it shows a 1% tax on the top 10% of the richest Americans will produce tax revenue equal to 1.7% of GDP. Better still, if the Americans taxed the really, really rich an extra 1% on top of the already proposed 1%, this will dream up a wind-fall of 3.1% of the GDP.

On paper, this sounds marvelous. With America running about a 7% spending deficit in 2012, this new IRS Form will help to cut the deficit almost in half. Better still, if we can all hope (there’s that word again) for real economic growth of 4% – deficits everywhere would be under control.

Now, this dream of taxing the super rich is not only beginning in America, it is already doing full-on cartwheels in the most socialist country in the world – France.

Dropping down a page we read……

The point we make, is that many countries around the world have now reached the stage where they realize the tax noose is their only way out of fiscal hell.

The other point we make, is that people are catching on and are in the process of moving their wealth to protect what they have earned.

Yet, this battle between the rich and the state will eventually pause as soon as the state realizes that they have to tax everyone.

A few weeks ago, the IMF published a whopper of a tax study. For some reason, the main stream media either ignored the most important policy paper of the year, or maybe they were simply distracted with Washington’s debt ceiling crisis. Considering, one is the result of the other, it’s only prudent for your investment and tax professionals to consider the implications.

The so-called Super Tax is buried deep on page 49………. In its simplest form, the IMF suggests taxing everyone 10% of their net worth. Yes, net worth – not your income. The good news is that in the minds of the IMF, this will restore some level of debt sustainability.

The biggest jaw droppers include the recommendation that this 10% be implemented overnight, without any warning whatsoever. The IMF believe that if the super tax is implemented overnight, people will actually feel all warm and fuzzy as they’ll instantly believe the tax will never be repeated and that it will not distort tax payer and investor behavior.

In sum…..

Absent economic growth, higher taxes are the only perceived option. Be prepared.

Sources: IMF, www.icecapassetmanagement.com, Wise Dog Research

Meet the 0.0001% – 166 Americans Who Made Over $50 Million In 2012

Posted By on November 4, 2013

Here we go, it’s the roaring 20’s all over again but even more so now!  Never in U.S. history have so many individuals earned over $50 million per year.

Never before has the divide between the wealthy and the poor been so wide (never).

The source of this catalyst for unrest in society, as Mark Spitznagel warned, is not runaway entrepreneurial capitalism, which rewards those who best serve the consumer in product and price. (Would we really want it any other way? No we wouldn’t) There is another force that has turned a natural divide into a chasm: the Federal Reserve. The relentless expansion of credit by the Fed creates artificial disparities based on political privilege and economic power.

The actual distribution of wealth in America is mind-boggling – the following shows the pattern of income is similar to a power-log function (often referred to by Didier Sornette as the basis for his bubble indicator)…

As Spitznagel concludes so succinctly:

The Fed is transferring immense wealth from the middle class to the most affluent, from the least privileged to the most privileged. This coercive redistribution has been a far more egregious source of disparity than the president’s presumption of tax unfairness (if there is anything unfair about approximately half of a population paying zero income taxes) or deregulation.

Pitting economic classes against each other is a divisive tactic that benefits no one. Yet if there is any upside, it is perhaps a closer examination of the true causes of the problem. Before we start down the path of arguing about the merits of redistributing wealth to benefit the many, why not first stop redistributing it to the most privileged?”

Sources: Wise Dog Research, ZeroHedge, Mark Spitznagel

Rich Man, Poor Man….How Do We Fix It?

Posted By on November 4, 2013

Back on October 27 we did a report on the worlds wealth pyramid titled A Travesty Of Grandiose Proportions (click the blue lettering to review).  The report discusssed the great disconnect in the world today between the wealth of the super rich and everyone else. Now, in todays review, we are going to touch on income extremes, with hopes it can somehow be fixed before the whole system falls apart. Something is clearly wrong when 47% of workers earn a poverty level income. Similarly, there is something wrong when 1% of workers earn 14% of all income. Actually though, we agree with Bruce Krasting that in the end, things probably can’t be fixed (until there are riots in the streets). 

From  Bruce Krasting:

America’s tax system and the major social programs (Medicaid and Obamacare) are driven by income. The Social Security Administration has put out a report on income in America. The data covers all wage earners (153.6 million workers and the $6.5 Trillion they earned). The Following is a pic of the report (link), if you’re working, you’re somewhere on this page:

Let’s start at the top of the pile, those that are making the really big bucks. For example, consider the number of people who made $50m in 2012 (the 0.0001%). There are 166 people in this group. Who are these folks? Basketballer Lebron James made the list, so did actors/performers Robert Downey Junior, Beyonce, Cameron Diaz and Christian Bale. From the corporate side we have Disney’s Robert Iger and Apple’s Tim Cooke.

Who are the wealthy in America? Anyone making over a million bucks a year is certainly on the list. The plus $1M set totaled 119,400 people (0.08%). These lucky few earned a total of $170b (3% of all income). How much should these folks be paying in taxes? Let’s go hog wild and nail them with a tax of 90%. The incremental revenue (they already are taxed at 39.6%) would be $85b, but sadly, that only covers five weeks of Social Security benefits.

The IRS defines ‘rich’ as an individual with annual income of $200k ($250k per couple). This income level marks the 1%:

The top 1.6m workers (1% of total) earned $900b (14% of all income). This is the measure of US income inequality. The 1% earn 14% of the pie. If the federal tax rate were increased to 75% (double current), it would increase revenue for Uncle Sam by about $150B. That does not fill a $1 trillion bucket, and it would be an economic disaster to set tax levels at Tax REFrench rates. Bottom line – the notion that taxing the rich is a solution is all wet.

So who is left in the middle? There were 41m workers (23% of total) who made more than $50k and less than $250k. This group earned $3.5T (52% of total income). So the middle is where the money is; a quarter of all workers earn half of all income.

If Washington needs more revenue, it must come from the folks in the middle. But the reality is that the middle is already taxed from every direction (they also pay state income taxes, Social Security and other payroll taxes, property and sales taxes. So once again, raising taxes as a way of balancing the nation’s ledger seems to be a very difficlt task.

What to make of all these numbers? Something is clearly wrong when 47% of workers earn a poverty level income. Similarly, there is something wrong when 1% of workers earn 14% of all income. The obvious solution is to tax those on the top and transfer it down to the bottom. But that is what we are already doing; more of the same is not going to change the outcome.

Now consider the bottom. In the case of Medicaid, the cut off for availability is equal to 138% of the Federal Poverty Level (FPL). For a single person the number is $16,600, for a couple it’s $22,000, for a family of four it’s $33,000. The average income for all individuals/families that might qualify for Medicaid is about $25,000. If you look that up on the Social Security chart you see that a whopping 46% of all income earners can qualify for Medicaid.

Wise Dog Research, Bruce Krasting’s blog

A Trillion Isn’t What It Used To Be!

Posted By on October 31, 2013

If you look back in history, it took the United States 192 years to rack-up $1 trillion of debt.  Then, the next $1 trillion of debt took only 30 years.  Astonishingly, now we are going through $1 trillion each year.

Source: Wise Dog Research

The Canadian Mint Is Working On A New Digital Money Project Called ‘MintChip’, No It’s Not Ice Cream…It’s A New Form Of Digital Currency, Does BitCoin Ring A Bell?

Posted By on October 31, 2013

BitCoin may have become the fuzzy model for countries around the world to modify the digital money idea. Software engineers for Crown Corp in Canada will begin pilot testing a novel form of digital currency that so far has received little attention.  It has the potential to revolutionize how we do business. “Where we’re going is not a road that has been travelled,” said Marc Brûlé, head of the MintChip project and chief financial officer of the Mint. “It has its challenges but there are lots of people who are encouraging us.”

According to the Financial Post, the initiative has mostly been cloaked in secrecy — apart from an app building contest last year aimed at coming up with new ways of using the currency. Beyond that, the Mint has been determinedly tight-lipped about what it’s up to.

MintChip is “the future of money,” according to the Mint’s promotional video, which goes on to present it as a digital version that would be legal tender, just like physical dollars and cents. You would hold it on a smartphone or other electronic device, just like a wallet. More to come on this dynamic new technology.

Now you may ask just who is Crown Corp? It’s a fair question.

From Wikipedia:

Canadian Crown corporations are enterprises owned by the federal state (the Crown, or Queen, in right of Canada or a provincial state (the Crown, or Queen, in right of a province); they are established by an act of the relevant parliament and report to that body via a minister of the Crown in the relevant cabinet though they are “shielded from constant government intervention and legislative oversight” and thus “generally enjoy greater freedom from direct political control than government departments.”

Crown corporations have a long standing presence in the country and have been instrumental in the formation of the state. They can provide services required by the public that otherwise would not be economically viable as a private enterprise, or don’t fit exactly within the scope of any ministry. They are involved in everything from the distribution, use, and price of certain goods and services to energy development, resource extraction, public transportation, cultural promotion, and property management.

Learn about BitCoin here http://en.wikipedia.org/wiki/Bitcoin  and www.bitcoin.com

WiseDog Research, Wilipedia

The United States Is Now The Worlds Largest Oil Producer, Yes…You Heard It Right

Posted By on October 30, 2013

So maybe this has something to do with the stock markets being so strong. It’s no secret that cheap oil is critical to long term growth in big economies like the United States.

Reuters News: The U.S. has  surpassed Saudi Arabia as the biggest oil producer in the world.

You read that correctly: “The jump in output from shale plays has led to the second biggest oil boom in history,” stated Reuters on October 15. “U.S. output, which includes natural gas liquids and biofuels, has swelled 3.2 million barrels per day (bpd) since 2009, the fastest expansion in production over a four-year period since a surge in Saudi Arabia’s output from 1970-1974.”

The United States also has the largest refining capacity in the world, and is still by far the largest consumer of oil in the world (though China is catching up). Our refineries require 15 million barrels of oil a day. That means even though domestic production has dramatically increased to about 8 million barrels, the US still has to import between 7 and 8 million barrels of foreign oil a day, but there are estimates that by 2019 the US will be a net exporter of oil.

For more information on this article: www.caseyresearch.com/cdd/us-1-in-oil-so-why-isnt-gasoline-0.80-per-gallon   

Wise Dog Research

U.S. Budget Deficit Narrows To 5-Year Low On Record Revenue

Posted By on October 30, 2013

Surprised as we are, somehow we don’t think it was employment gains that powered this giant revenue collection….capital gains taxes would make more sense being that stock markets are at all time highs!

Bloomberg:

  • The U.S. posted its smallest budget deficit in five years as employment gains helped propel revenue to a record.
  • Spending exceeded receipts by $680.3 billion in the 12 months ended Sept. 30, the narrowest gap since 2008, compared with a $1.09 trillion shortfall in fiscal 2012, the Treasury Department said today in Washington.
  • In September, the U.S. recorded a $75.1 billion surplus, little changed from the surplus in the same month a year earlier.
  • Revenue jumped 15.2 percent to $301.4 billion in September from a year earlier, bringing the annual figure to $2.77 trillion, today’s report showed.
  • Spending increased 21.5 percent to $226.4 billion last month, contributing to a 12-month total of $3.45 trillion, it showed.

Wise Dog Research, Bloomberg

Financial Musical Chairs… But When The Music Stops, Who Will Have A Seat?

Posted By on October 28, 2013

JP Morgan has a report out that is reviewed in part below. Everybody should take time to read it.  The economy is being stimulated with excess liquidity like never before in history. When it slows or stops, we will have a Stanely Druckenmiller event, i.e., Druckenmiller said recently (September 11)….that financial markets could readjust to lower priced levels instantaneously upon changes in Fed policy You can read what Stanely Druckenmiller said by clicking on the blue letters here (Stanley Druckenmiller Reviews Key Issues That In His Opinion Will Effect The U.S. Economy). J.P. Morgan says below….The amount of excess liquidity, i.e. the infamous “liquidity bubble” in the global fungible system is “the most extreme ever in terms of its magnitude”. 

From JPM:

Excess money supply is currently at record high positive territory. The residual of the regression turned positive in May 2012 and has risen steadily since then. This is both because of real money supply increasing and money demand decreasing due to lower uncertainty (Figure 3). In particular, global M2 is up $3tr or 4.6% since the beginning of the year (to September), outperforming the Global CPI inflation index which is up by only 2% since then. Global M2 reached $66tr in September this year.

Of the $3tr increase in global M2 money supply in the first three quarters of the year, around $1tr is due to G4 countries, i.e. US, Euro area, UK and  Japan. The remaining $2tr is due to EM countries, driven by strong bank lending growth in EM. As we highlighted last week, EM bank loan credit creation has been unaffected by the EM selloff in the summer and was running in July/August at a $170bn per month pace. So strong credit growth in EM economies continues to boost our measure of excess liquidity.

And the conclusion:

The rise in excess liquidity, i.e. the residual in the model of Figure 4, is supportive for risky assets especially when we compare the past nine months with the period between the end of 2010 and the beginning of 2012 when excess money supply was negative. Looking further back in Figure 4, we can see three major episodes of excess liquidity (i.e. positive residual): 1993-1995, 2001-2006 and Oct 2008-Sep 2010. These were periods of strong asset price inflation suggesting that excess liquidity could have been a factor supporting markets at the time. The current episode of excess liquidity, which began in May 2012, appears to have been the most extreme ever in terms of its magnitude.


To summarize:

  • In just the first 9 months of 2013, DM countries have injected $1 trillion in liquidity sourced exclusively by central banks; EMs have injected another $2 trillion driven by bank loan demand.
  • The total global M2 is over $66 trillion, growing at an annualized pace of over 6%.
  • The amount of excess liquidity, i.e. the infamous “liquidity bubble” in the global fungible system is “the most extreme ever in terms of its magnitude”

Wise Dog Research, J.P. Morgan, Zero hedge

A Travesty Of Grandiose Proportions

Posted By on October 27, 2013

Never before has the world seen such disparity of wealth between rich and everyone else.  Out comes the pen and off goes another letter to our worthless Congress.  Will they even read it?

John Maudlin, in his new book Code Red, (to be released on Monday, Oct. 28) reviewed the latest key figures concerning record wealth disparity, and it’s a doozy….  the wealthiest few (0.6% , YES, .06%…control 40% of the world’s wealth) and the remaining 99.4% (with a diminished middle class on the path to extinction), along with a rapidly rising class of poor –  fight over the scraps.

Here are some  interesting numbers from Credit Suisse:

The bottom line: 29 million, or 0.6% of those with any actual assets under their name, own $87.4 trillion, or 39.3% of all global assets.

Included in the top of the pyramid pictured below is: 29 million US dollar millionaires, a group which contains less than 1% of the world’s adult population,  but collectively owns nearly 40% of all global household wealth.

At the start of the millennium, financial assets accounted for well over half of the household portfolio, but the share declined until 2008, at which point the global wealth portfolio was equally split between financial and nonfinancial assets (mostly property). In the period since 2008, the balance has again tipped slightly towards financial assets.

Sources: Wise Dog Research, Credit Suisse, John Mautlin

When General Motors Went Bankrupt Back In 2009, The Pontiac Car Brand Was Killed On A Government Whim!

Posted By on October 26, 2013

We always liked the GM Pontiac brand, established back in 1926, with an early model called The Chief, which started as a companion make for General Motors’ Oakland name plate.  It quickly overtoke its parent in popularity, and supplanted the Oakland brand entirely by 1931. Interestingly, Pontiac always had a theme and closeness to Native American Indians, originally built in Pontiac, Michigan, the early cars had an Indian mascot as a hood orniment, and a popular Pontiac Chieftain line of models starting in 1952. Finally the downward facing Arrow became the new logo…..  For the rest of its life Pontiac, became a performance companion make just above Chevrolet. Interesting tid bit….Motor Trend magazine picked the entire Pontiac line as its 1959 Car of the Year.

GM killed the Pntiac name brand on government orders, according to former GM Vice Chairman Bob Lutz. Bob was speaking at an event at the Petersen Museum in Los Angeles, and expanded his comments more in a Q&A. 

The Feds basically wanted to get GM down to Cadillac and Chevrolet. They said, “you don’t need all these brands. You need one prestige brand, and one mass-market brand.” And we said “well we can’t get rid of Buick because Buick is important in China, and if Buick becomes an orphan in the United States then the Chinese are no longer gonna be interested in it.” And the Feds said “Fair enough, but everything else goes.” We said well we’d also like to keep GMC. They said “well, GMC is basically just like Chevrolet,” and we said “that may be true, there may be a lot of shared components, but GMC has an entirely different image, a different customer base, and people are willing to pay different prices for a GMC, and here’s the profitability,” and the Feds said “whoops, okay, keep GMC.”

So now we had Buick, GMC, Cadillac, and Chevrolet, and then, I wanted, badly wanted, to keep Pontiac, because Pontiac was on its way back, and it had been mismanaged for a number of years, you know, with ‘rebuild excitement,’ and the excitement was only in the plastic body cladding, mechanically there was nothing about Pontiac in the 90s that would make your heart beat faster. And with the solstice and solstice coupe, and with the Pontiac G8, which was a great car. We were embarked on a strategy of making pontiac different from the rest of GM in that Pontiac wouldn’t get any front wheel drive cars, they would all be rear-wheel drive, and the next G6, was going to use the architecture of the cadillac ATS, it was going to be a 3-series sized rear-wheel Pontiac, with basically the Cadillac ATS ‘de-premiumized,’ obviously, a lot of the cost taken out, but still fundamentally that architecture.

That was going to be the next G6, and I think we could’ve moved pontiac away from every other American volume brand and really started positioning it as attractive US alternative to some of the, and obviously at much lower prices than the european rear-wheel drive cars, but the Feds said “yeah, let’s just, how much money have you made on pontiac in the last 10 years?” and the answer was “nothing.” So, it goes. And, when the guy who is handing you the check for 53 billion dollars says I don’t want pontiac, drop pontiac or you don’t get the money, it doesn’t take you very long to make up your mind.

But I think it is a shame, Pontiac was on its way back, and it was killed before it, before the plant could really sprout blossoms, you know, it was well on its way. So, I agree with you, I think Pontiac was a great, wonderful history, mismanaged for a number of years in the 80s and 90s and it was clearly on its way back, and we were starting to see a very good customer base in solstices and especially in the G8, which was favorably compared in a lot of road tests to the BMW 5-series, people would say dynamically the car is as good and it’s more powerful and way cheaper, but that was too bad. but you can’t go through Chapter 11 without some really harmful effects.

Wise Dog,  Petersen Museum

Silk Road Not So Silky…And The Encryption Not So Encrypted

Posted By on October 26, 2013

Well, there she blows…..$29 million thought to be safely locked up in BitCoins by Ross William Ulbricht also known as The Dread Pirate, just fell out of the sky and into the laps of the Fed’s. Actually it looks like the encryption code wasn’t as tough to crack as thought. Read more about this by clicking here; The BitCoin Model Is Being Challenged By A Huge Federal Bust Of Anonymous Internet Kingpin Silk Road Website And Owner  and here:  The Big Question We’re Currently Asked About, Relates To The Silk Road Website…Yes, The One That Was Just Taken Down By The FBI…So What Exactly Is Tor, And How Did It Work Anonymously? 

According to Reuters:

Federal prosecutors have found an additional $29 million, or 144,336 BitCoins, belonging to Silk Road’s” the Dread Pirate”. The stash was discovered on “computer hardware” belonging to Ulbricht. The repossessed electronic money, whose encryption technologies was thought to be highly secure has now been impounded and will likely remain on the FBI’s hard disks indefinitely.

  • Authorities said the haul represented the largest ever Bitcoin seizure.
  • Ulbricht’s lawyer could not be contacted on Friday evening (local time), but had previously told reporters his client denied the charges.
  • The currency, which has been in existence since 2008, first came under scrutiny by law enforcement officials in mid-2011 after media reports surfaced linking bitcoins to Silk Road.
  • The US Attorney’s Office said with nearly 30,000 bitcoins previously seized, federal agents have now collected more than $US33 million in bitcoins based on current value.
  • Ulbricht is due to appear in court within weeks to face criminal charges of narcotics trafficking conspiracy, computer hacking conspiracy and money laundering conspiracy.

Sources: Wise Dog, Reuters

John McAffee Say’s He’s Got The Problem Of NSA Spying Fixed!

Posted By on October 25, 2013

Hmm…Anti-virus legend and wild man John McAffee claims that he has created a $100 hardware router which will block NSA snooping…..he goes on to say there’s no way (for the government) to track who you are or where you are.  Sounds great, but the biggest problem is – does anyone really believe him?  And even if McAffee did have a fix for this problem, we have no doubt what so ever that the NSA would have the algo’s craked lickedy splickedy.

Wise Dog Research

Powerful Nations And Mega Large Companies Fight Back Against NSA Spying

Posted By on October 25, 2013

This is what can happen when power is abused,….we think it is just the begining of efforts to neutralize U.S. power around the world.. Much of the new telecommunications infrastructure layout is said to be built to avoid American spying.  Can’t say that we can blame them!

One of India’s largest newspapers – The Hindu – reports:

Most of Brazil’s global internet traffic passes through the United States, so [the Brazilian] government plans to lay underwater fiber optic cable directly to Europe and also link to all South American nations to create what it hopes will be a network free of US eavesdropping.

A consortium of telecom and undersea cable companies competing for the contracts for the proposed BRICS cable show what they think the project should look like:

(BRICS stands for Brazil, Russia, India, China and South Africa)

The BRICS countries have the muscle to pull this off. Each of the BRICS countries are in the top 25 largest economies in the world. China has the world’s 2nd largest economy, India is 3rd, Russia 6th, Brazil 7th, and South Africa 25th.

China is also said to be dropping IBM hardware like a hot potato due to security concerns. Intel and AMD may not be far behind.

And we can add another defector…..Germany is also rolling out a system that would keep all data within Germany’s national borders.

Sources: Wise Dog Research, Washington Blog

Soon To Be Proposed USA FREEDOM Act Could Rein In Abuses Of The Patriot Act

Posted By on October 25, 2013

Off to Washington D.C. goes another letter to our Congressman…..

YES, we’re in favor of changing the often abused Patriot Act.  This movement already has more than 50 co-sponsors. There is also a bipartisan coalition called’ StopWatching US’, that includes Congressman Amash, and the coalition includes hundreds of organizations from all sides of the political spectrum. The petition on reining in NSA surveillance has received more than 575,000 signatures so far….and they can add one more from www.theststedtruth.com

Breitbart News has learned that Rep. James Sensenbrenner (R-WI) will introduce major legislation to rein in NSA surveillance activities of American citizens on Tuesday. 

The United and Strengthening America by Fulfilling Rights and Ending Eavesdropping, Dragnet Collection, and Online Monitoring Act, or USA FREEDOM Act, is somewhat of a step beyond the controversial “Amash Amendment” that narrowly failed to pass the House in July that would have stripped funding for NSA programs collecting the telephone records of those in the United States.

Sensenbrenner is the former Chairman of the House Judiciary Committee and current Chairman of the subcommittee on Terrorism and Homeland Security. He was also the original sponsor of the PATRIOT Act. The Wisconsin lawmaker has previously stated that the PATRIOT Act was “deliberately drafted to prevent [the] data mining” yet the NSA interpreted his legislation to justify their dragnet style surveillance of American citizens. His support, as the drafter of the PATRIOT Act, could be influential with a few of his national security oriented Republican colleagues.

The Guardian has seen a draft of the bill. Here are the key points:

• Ending bulk metadata collection. Section 215 of the Patriot Act would be tightened to place more onus on intelligence agencies to show they are looking for specific suspects and do not inadvertently sweep up information on innocent Americans. They would have to show a Fisa court judge that the target was thought to be an agent of a foreign power, was engaged in activity that was the subject of an investigation, or was an individual in contact with an agent of foreign power.

• Disclosure. The attorney general would be required to publicly disclose decisions by the Foreign Intelligence Surveillance (Fisa) court that contain a significant construction or interpretation of law, but may continue to classify confidential parts. Specific information on individuals would not be disclosed, but the policy changes would be. The intent is that the bill would end “secret laws” being made behind closed doors by the Fisa courts and the intelligence community.

• Greater transparency. Internet and telephone companies that received Fisa court orders would be allowed to report the number of Fisa orders and national security letters complied with, and number of users on whom information was demanded.

• Privacy advocate. The bill creates an office of special advocate within the Fisa court who would have standing to appear to represent the public and privacy concerns. They would be chosen from a list recommended by Obama’s privacy and civil liberties oversight board but a Fisa court judge would appoint from that list. This judicial appointment would have the power to appeal Fisa court decisions.

• Foreign loopholes. The bill amends section 702 (b) of the Foreign Intelligence Surveillance Act to prevent intelligence agencies from “reverse targeting” that may allow them to intercept email and internet communications of Americans. It also calls on the US inspector general to investigate whether current minimization procedures adequately protect the constitutional rights of US persons and gives more legal powers to the privacy and civil liberties oversight board.

• Other loopholes. Title 4 of Fisa, known as the pen register and trap-and-trace provisions, would be amended to make sure the government does not just rebuild its metadata dragnet using different authorities.

Sources: Wise Dog Research, The Guardian, Wikipedia, Breitbart News

NSA (National Security Agency) Spied On An Estimated 124 Billion Phone Calls In One Month According To The Guardian And Other Sources

Posted By on October 24, 2013

So….. Is the United States the new bully of the world? It’s an interesting question. 

We have talked in the past about In-Q-Tel, the CIA partnership with new upstart companies, and how many of these companies deal with computer  communications encryption software and related type stuff…..Here is the www.iqt.org mission statement from their website.

The IQT Mission

We identify, adapt, and deliver innovative technology solutions to support the missions of the Central Intelligence Agency and broader U.S. Intelligence Community.

An by the way, they list their portfoolio of companies, and the areas in which they’re working in. Here is one specific area:

Analytics & Infrastructure

The Advanced Analytics and Infrastructure practice is focused on technologies that provide enhanced analytic capabilities while also addressing increased demand for computing resources. IQT is identifying technologies that make it easier to deploy, provision, and secure IT systems, and tools to facilitate information discovery, detect trends and patterns, uncover relationships, and put global events in context.

Now on to our story at hand……The NSA

According to top-secret documents released by multiple news outlets, the National Security Agency recorded information on more than 124 billion phone calls during a 30-day period earlier this year, including around 3 billion calls from the U.S..

The Guardian:  Documents revealing details about the NSA’s Boundless Informant program show that information regarding billions of phone calls and computer communications was collected by the agency from across the world.

According to the Guardian, which first reported on the top secret program earlier this year, Boundless Informant “allows users to select a country on a map and view the meta data volume and select details about the collections against that country’.” Multiple leaked screenshots of the Boundless Informant program show that information on around 124.8 billion phone calls were collected in just 30-days this year, according to documents released by the Guardian and other news sites.

The documents provide a window into the sheer volume of data being collected by the NSA as late as March of this year, according to the Guardian.

The NSA’s data collection effort were compiled from the multiple sources and organized on Wednesday by members of intelligence website Cryptome, which regularly publishes government documents and other information.

Much of the information recorded by the NSA appears to have originated in the greater Middle East.

The majority of the calls monitored by the NSA appeared to have come from Pakistan and Afghanistan, where 13.76 billion and 21.98 billion calls were collected over the time period, according to the Boundless Informant “heat map” (click on blue to view) revealed by the Guardian.

Boundless Informant appears to have collected information from hundreds of million calls traced back to Germany in a single 30-day-period, according to documents published by Der Spiegel Online.

Spain accounted for another 61 million and Italy for 46 million, according to the published screenshots and tallies posted to Cryptome.

France’s Le Monde newspaper alleged this week that the NSA recorded more than 70 million phone calls through January of this year. However, U.S. Director of National Intelligence James Clapper immediately rejected the claim.

Another 97 billion bits of information were pulled by the NSA from global computer networks, according to the map and original story by the Guardian.

Here is a little background on the NSA……Courtesy of Wikipedia.

The main NSA headquarters and operations building is what James Bamford, author of Body of Secrets: Anatomy of the Ultra-Secret National Security Agency, describes as “a modern boxy structure” that appears similar to “any stylish office building.” The building is covered with one-way dark glass, which is lined with copper shielding in order to prevent espionage by trapping in signals and sounds. It contains 3,000,000 square feet, or more than 68 acres (28 ha) of floor space; Bamford said that the U.S. Capitol “could easily fit inside it four times over.

On January 6, 2011 a groundbreaking ceremony was held to begin construction on NSA’s first Comprehensive National Cyber-security Initiative (CNCI) Data Center, known as the “Utah Data Center” for short. The $1.5B data center is being built at Camp Williams, Utah, located 25 miles (40 km) south of Salt Lake City, and will help support the agency’s National Cyber-security Initiative. It is expected to be operational by September 2013. Hmm…….

Sources: The  Guardian, Wise Dog Research, Wickipedia

Japan Wilts From With-In…..

Posted By on October 21, 2013

In Japan, diapors for old people now out sell diapors for babys….and it just gets worse from there.   A recent study showed a third of the people under 30 in Japan have never dated at all. That explains Japan’s fertility rate, which is 1.39 for women, compared with 1.93 in the U.S., according to the Ministry of Health, Labour and Welfare.

Japan’s population decline is no mystery either. It peaked in 2005, but is poised in 2014 to shrink to 125.2 million, down from 126.5 million in 2012, according to data compiled by Bloomberg.

Enen worse, Japan’s Institute of Population and Social Security reports an astonishing 90% of young women believe that staying single is “preferable to what they imagine marriage to be like”.

This isn’t just Japan, as many of the shifts there are occurring in other advanced nations, too. Across urban Asia, Europe and America, people are marrying later or not at all, birth rates are falling, single-occupant households are on the rise and, in countries where economic recession is worst, young people are living at home.

From The Gardian:

Official alarmism doesn’t help. Fewer babies were born here in 2012 than any year on record. (This was also the year, as the number of elderly people shoots up, that adult incontinence pants outsold baby nappies in Japan for the first time.) Kunio Kitamura, head of the JFPA, claims the demographic crisis is so serious that Japan “might eventually perish into extinction”.

Japan’s under-40s appear to be losing interest in conventional relationships. Millions aren’t even dating, and increasing numbers can’t be bothered with sex. For their government, “celibacy syndrome” is part of a looming national catastrophe. Japan already has one of the world’s lowest birth rates. Its population of 126 million, which has been shrinking for the past decade, is projected to plunge a further one-third by 2060. Aoyama believes the country is experiencing “a flight from human intimacy” – and it’s partly the government’s fault.

The number of single people has reached a record high. A survey in 2011 found that 61% of unmarried men and 49% of women aged 18-34 were not in any kind of romantic relationship, a rise of almost 10% from five years earlier. Another study found that a third of people under 30 had never dated at all. (There are no figures for same-sex relationships.) Although there has long been a pragmatic separation of love and sex in Japan – a country mostly free of religious morals – sex fares no better. A survey earlier this year by the Japan Family Planning Association (JFPA) found that 45% of women aged 16-24 “were not interested in or despised sexual contact”. More than a quarter of men felt the same way.

The Guardian; Wise Dog Research

 

Help In The Economy Can Come In Many Ways… For The U.S. In 2013, There Has Been “A Mild Weather Year” Of Epic Proportions

Posted By on October 19, 2013

A New Study ranks 2013 as one of the least extreme U.S. weather years ever, with many ‘bad weather’ events at ‘historically low levels’.  This has helped the U.S. economy by sending many commodities to unexpectedly low levels.

‘Whether you’re talking about tornadoes, wildfires, extreme heat or hurricanes, the good news is that weather-related disasters in the US are down  this year dramatically compared to recent years and,  in a number of cases, down to historically low levels.’

Tornadoes: ‘lowest total in several decades’

Number of Wildfires: ‘On pace to be the lowest it has been in the past ten years’

Extreme Heat: The number of 100 degree days may ‘turn out to be the lowest in about 100 years of records’

Hurricanes: ‘We are currently in the longest period (8 years) since the Civil War Era without a major hurricane strike in the US (i.e., category 3, 4 or 5)’ ( last major hurricane to strike the US was Hurricane Wilma in 2005).

Source: Wise Dog Research

Let’s Throw Every One Of Them Out Of Office….It Will take Six Years, But It’s Something That Has To Be Done!

Posted By on October 17, 2013

The U.S. Congress, what a bunch of thieven’ bums….

Last night, after more than two weeks of utterly embarrassing theater, the government in the Land of the Entitled inked a deal to kick the can down the road for a few more months. And in doing so, they set a very dangerous precedent.

As part of the bargain codified in HR 2775 (which President Obama signed into law), this was slipped into the bill… the Treasury Department is authorized to SUSPEND the debt ceiling. In other words, for all intents and purposes, there is now NO LIMIT to government borrowing.

This limitless borrowing authority will expire on February 7, 2014. But it sets the precedent that dismissing the debt ceiling is a perfectly viable course of action.

Wise Dog Rrsearch

The U.S. Government Issues New Ben’s

Posted By on October 9, 2013

Yep…new $100 dollar bills (notes) started to circulate yesterday.  This project was said to be in development for over 10 years as a joint effort by The Federal Reserve, U.S. Department of the Treasury, U.S. Bureau of Engraving and Printing, and the U.S. Secret Service.  First year production is expected to be around 3.4 billion with print facilities in Washington D.C. and Fort Worth, Texas. 

Some interesting tid bits… More then half of all the new notes printed will end up being circulated outside the United States according to the Federal Reserve. The new note will cost about 12.6 cents each to produce, up from around 8 cents for the old notes.

The average life span of a $1 bill is less than 22 months, according to the Federal Reserve Bank of Atlanta; $5 bills last about 16 months; $10 bills last about 18 months; and $20 bills last approximately two years. Lesser-used bills, such as $50 bills stay around for about 4.6 years and $100 dollar bills usually last about 7.4 years (but often  longer). Coins last about 25 years or more.

Here are some of the new currency features as described by the Federal Reserve BoardThe redesigned $100 note includes two new security features: a blue 3-D security ribbon with images of bells and 100s when tilted, and a color-changing bell in an inkwell. The new features, and additional features retained from the previous design, such as a watermark, offer the public a simple way to visually authenticate the redesigned $100 note.

Famous Quotes From Benjamin Franklin

Posted By on October 7, 2013

It takes many good deeds to build a good reputation, and only one bad one to lose it!                         

           Benjamin Franklin

 

The Interbrand Best Global Brands 14’th Annual Survey Is Out

Posted By on October 6, 2013

The Interbrand Best Global Brands survey was recently released, (September 30,2013)……Founded in 1974, Interbrand is the world’s leading brand consultancy!

Bloomberg BusinessWeek notes,Coca Cola the soft drink giant had held the No. 1 ranking for 13 consecutive years but fell to No. 3 in this year’s report. Interbrand values the Apple brand #1 at about $98 billion, and other tech companies such as #2 Google, #4 IBM, and #5 Microsoft finished rounded out the top five. Here’s a look at the twists and turns of the top 10 brands in the Interbrand study, which analyzes a brand’s financial strength and influence, going back to 2000.

 

Here’s the whole list:

 

Interbrand’s 2013 Best Global Brands  
2013RANK       2012RANK       BRAND       SECTOR         2013 BRANDVALUE(USD $billion)         % CHANGEIN BRANDVALUE  
1       2       Apple       Technology         98.316         28%  
2       4       Google       Technology         93.291         34%  
3       1       Coca-Cola       Beverages         79.213         2%  
4       3       IBM       Business Services         78.808         4%  
5       5       Microsoft       Technology         59.546         3%  
6       6       GE       Diversified         46.947         7%  
7       7       McDonald’s       Restaurants         41.992         5%  
8       9       Samsung       Technology         39.610         20%  
9       8       Intel       Technology         37.257         -5%  
10       10       Toyota       Automotive         35.346         17%  
11       11       Mercedes-Benz       Automotive         31.904         6%  
12       12       BMW       Automotive         31.839         10%  
13       14       Cisco       Technology         29.053         7%  
14       13       Disney       Media         28.147         3%  
15       15       HP       Technology         25.843         -1%  
16       16       Gillette       FMCG         25.105         1%  
17       17       Louis Vuitton       Luxury         24.893         6%  
18       18       Oracle       Technology         24.088         9%  
19       20       Amazon       Retail         23.620         27%  
20       21       Honda       Automotive         18.490         7%  
21       23       H&M       Apparel         18.168         10%  
22       22       Pepsi       Beverages         17.892         8%  
23       24       American Express       Financial Services         17.646         12%  
24       26       Nike       Sporting Goods         17.085         13%  
25       25       SAP       Technology         16.676         7%  
26       28       IKEA       Home Furnishings         13.818         8%  
27       27       UPS       Transportation         13.763         5%  
28       36       eBay       Retail         13.162         20%  
29       34       Pampers       FMCG         13.035         15%  
30       29       Kellogg’s       FMCG         12.987         8%  
31       31       Budweiser       Alcohol         12.614         6%  
32       33       HSBC       Financial Services         12.183         7%  
33       32       J.P. Morgan       Financial Services         11.456         0%  
34       39       Volkswagen       Automotive         11.120         20%  
35       30       Canon       Electronics         10.989         -9%  
36       37       Zara       Apparel         10.821         14%  
37       35       Nescafé       Beverages         10.651         -4%  
38       38       Gucci       Luxury         10.151         7%  
39       42       L’Oréal       FMCG         9.874         12%  
40       41       Philips       Electronics         9.813         8%  
41       43       Accenture       Business Services         9.471         8%  
42       45       Ford       Automotive         9.181         15%  
43       53       Hyundai       Automotive         9.004         20%  
44       48       Goldman Sachs       Financial Services         8.536         12%  
45       51       Siemens       Diversified         8.503         13%  
46       40       Sony       Electronics         8.408         -8%  
47       44       Thomson Reuters       Media         8.103         -4%  
48       50       Citi       Financial Services         7.973         5%  
49       52       Danone       FMCG         7.968         6%  
50       47       Colgate       FMCG         7.833         2%  
51       55       Audi       Automotive         7.767         8%  
52       69       Facebook       Technology         7.732         43%  
53       46       Heinz       FMCG         7.648         -1%  
54       63       Hermès       Luxury         7.616         23%  
55       60       adidas       Sporting Goods         7.535         12%  
56       57       Nestlé       FMCG         7.527         9%  
57       19       Nokia       Electronics         7.444         -65%  
58       61       Caterpillar       Diversified         7.125         13%  
59       58       AXA       Financial Services         7.096         5%  
60       68       Cartier       Luxury         6.897         26%  
61       49       Dell       Technology         6.845         -10%  
62       59       Xerox       Business Services         6.779         1%  
63       62       Allianz       Financial Services         6.710         8%  
64       72       Porsche       Automotive         6.471         26%  
65       73       Nissan       Automotive         6.203         25%  
66       64       KFC       Restaurants         6.192         3%  
67       56       Nintendo       Electronics         6.086         -14%  
68       65       Panasonic       Electronics         5.821         1%  
69       66       Sprite       Beverages         5.811         2%  
70       N/A       Discovery       Media         5.756         NEW  
71       54       Morgan Stanley       Financial Services         5.724         -21%  
72       84       Prada       Luxury         5.570         30%  
73       75       Shell       Energy         5.535         16%  
74       74       Visa       Financial Services         5.465         11%  
75       70       Tiffany & Co.       Luxury         5.440         5%  
76       77       3M       Diversified         5.413         16%  
77       82       Burberry       Luxury         5.189         20%  
78       67       MTV       Media         4.980         -12%  
79       78       Adobe       Technology         4.899         8%  
80       85       John Deere       Diversified         4.865         15%  
81       79       Johnson & Johnson       FMCG         4.777         9%  
82       83       Johnnie Walker       Alcohol         4.745         10%  
83       87       Kia       Automotive         4.708         15%  
84       76       Santander       Financial Services         4.660         -2%  
85       N/A       Duracell       FMCG         4.645         NEW  
86       81       Jack Daniel’s       Alcohol         4.642         7%  
87       71       Avon       FMCG         4.610         -11%  
88       91       Ralph Lauren       Apparel         4.584         14%  
89       N/A       Chevrolet       Automotive         4.578         NEW  
90       80       Kleenex       FMCG         4.428         2%  
91       88       Starbucks       Restaurants         4.399         8%  
92       92       Heineken       Alcohol         4.331         10%  
93       89       Corona       Alcohol         4.276         5%  
94       86       Pizza Hut       Restaurants         4.269         2%  
95       90       Smirnoff       Alcohol         4.262         5%  
96       96       Harley-Davidson       Automotive         4.230         10%  
97       94       MasterCard       Financial Services         4.206         8%  
98       99       Ferrari       Automotive         4.013         6%  
99       98       Moët & Chandon       Alcohol         3.943         3%  
100       100       Gap       Apparel         3.920         5%  
                       

Sources:  Wise Dog Research, BUSINESS WIRE,  Interbrand ,Bloomberg
BusinessWeek

The Big Question We’re Currently Asked About, Relates To The Silk Road Website…Yes, The One That Was Just Taken Down By The FBI…So What Exactly Is Tor, And How Did It Work Anonymously?

Posted By on October 4, 2013

Well, Tor seems to be a very deep subject, pun intended…..and in fact we don’t profess to know everything about it, but we’ll try to explain things as best as possible here.

Tor was originally an acronym for The Onion Router (TOR),and is free software for enabling online anonymity. Tor directs Internet traffic through a free, worldwide, volunteer network consisting of more than three thousand relays to conceal a user’s location or usage from anyone conducting network surveillance or traffic analysis. Using Tor makes it more difficult to trace Internet activity, including “visits to Web sites, online posts, instant messages, and other communication forms”, back to the user and is intended to protect the personal privacy of users, as well as their freedom and ability to conduct confidential business by keeping their internet activities from being monitored.

“Onion Routing” refers to the layers of the encryptio used. The original data, including its destination, are encrypted and re-encrypted multiple times, and are sent through a virtual circuit comprising successive, randomly selected Tor relays. Each relay decrypts a “layer” of encryption to reveal only the next relay in the circuit, in order to pass the remaining encrypted data on to it. The final relay decrypts the last layer of encryption and sends the origanal data, without revealing or even knowing its sender, to the destination. This method reduces the chance of the original data being understood in transit and, more notably, conceals the routing of it.

So now you know!

But here are a few more interesting things about TOR.

Tor found its origins under DARPA and the U.S. Naval Research Laboratory. which had been instrumental in the early development of onion routing….Just so you know, Darpa stands for The (Defense Advanced Research Projects Agency). It is an agency of the United States Department of Defense responsible for the development of new technologies for use by the military. DARPA has been responsible for funding the development of many technologies which have had a major effect on the world, including computer networking, as well as NLS, and an important precursor to the contemporary ubiquitous graphical user interface. Darpa and IN-Q-TEL have been involved in multitudes of new super high technologies. In-Q-Tel of Arlington, Virginia, is a not-for-profit venture capital firm that invests in high-tech companies (many of which are listed and trade on various stock exchanges) for the purpose of keeping the Central Intelligence Agency (CIA), and other intelligence agencies equipped with the latest in information technology in support of the United States intelligence capability. You can go to www.iqt.org and see some of the things they are currently working on. 

Definitions are provided by   www.Wikipediacom

Sources…..Wise Dog, www.wikipedia.com

Meet The Real Estate Housing Market “Vampire REOs” Where Many Americans Live Mortgage-Free

Posted By on October 3, 2013

Zero Hedge is just out with this interesting article concerning the housing markets and what they call artifical price gains. Yeh, we agree, the whole free market system has been rigged in one way or another since 2009.

ZeroHedge:

Concerning Foreclosure stuffing. We explained this scheme by banks to limit the amount of available for sale inventory as follows: “since the properties not entering the foreclosure pipeline are effectively kept out of inventory, even shadow inventory, and thus the distressed end market, the monthly drop in foreclosures has acted as a form of subsidy to the housing market, as month after month less inventory than otherwise should, enters the market…. What this has resulted in is a logical increase in prices of the properties that are on the market.” Today, the mainstream has finally caught on, and courtesy of RealtyTrac has come up with its own name for this subsidy: Vampire REOs.

In a press release overnight, the foreclosure tracking service RealtyTrac, observed that a stunning 47% of bank-owned homes are still occupied by their previous owners who were foreclosed on, creating “vampire REOs.

Vampire REOs are bank-owned homes that are still occupied by the previous homeowner who was foreclosed on. On the surface these properties often will look like normal, non-distressed homes, but beneath the surface they represent a shadow inventory that is becoming more imminent as rising home prices motivate banks to sell off these homes to try to recoup their losses on soured loans.

The vampires are particularly acute in Miami (64%), Houston (65%), Los Angeles (61%) which have nearly two thirds of bank-owned properties falling into the “vampire REO” category. This means that in order to generate a housing scarcity, millions of deadbeat Americans have been given a carte blanche to live mortgage-free, in some cases for years, and in a state of default in their existing homes, as the banks have no incentive to actually clear out the properties to which they have title, making home purchases for everyone else – those who have the funds and are willing to purchase a home – impossible due to artificially los supply and artificially high prices.

Putting the problem in perspective, Emmett Laffey, CEO of Laffey Fine Homes International said that “The New York metro area is experiencing a spike in mortgage defaults, however, there are very few vacant foreclosures or bank-owned properties that are languishing on the market.” “Typically these types of properties are sold well within 30 days of hitting the market,” he added. Except when they never make the market.

Of course, now that home prices have been artificially boosted courtesy of just this foreclosure process “stuffing”, “banks likely wish to sell these homes sooner rather than later as home prices have been rising” predicts RealtyTrac.

However, therein lies the dilemma: since the primary driver of home price appreciation has been fake scarcity, either due to Vampire REOs or Zombie foreclosures (the far more traditional homes that are still languishing in the foreclosure process but have been vacated by the homeowner being foreclosed), the second that banks unclog the foreclosure pipeline exit and begin selling this uber-shadow inventory, the entire facade of the fake housing non-recovery will begin to crumble as one after another bank scramble to hit the highest bid possible, before some other bank does so.

Expect the broader mainstream media to begin reporting on this phenomenon in another 6-8 weeks, about the time when the Y/Y increase in home prices is solidly rolling over, and the usual 18 months delay behind Zero Hedge.

Finally, those curious to see how many foreclosed homes are being occupied mortgage free in their metro area, the following interactive chart from RealtyTrac has the answer.

Wise Dog

The BitCoin Model Is Being Challenged By A Huge Federal Bust Of Anonymous Internet Kingpin Silk Road Website And Owner

Posted By on October 2, 2013

Reuters reports: U.S. law enforcement authorities raided an Internet site that served as a marketplace for illegal drugs, including heroin and cocaine, and arrested its owner, the Federal Bureau of Investigation said on Wednesday. The FBI arrested Ross William Ulbricht, known as “Dread Pirate Roberts,” in San Francisco on Tuesday, according to court filings. Federal prosecutors charged Ulbricht with one count each of narcotics trafficking conspiracy, computer hacking conspiracy and money laundering conspiracy, according to a court filing.

Governments of the world won’t stand for having taxed transactions (revenue) stolen away by anonymous ghost rogue websites using borderless currency (money without a country) . The U.S. has now made it very clear, it can and will take down anyone, anywhere no matter how sophisticated the setup is. 

Today, Silk Road, one of the largest anonymous and stelth built websites thought to use the most advanced alogos anywhere (maybe not?), and one that used and aggressively promoted the use of BitCoin, was shut down by the U.S. government. Yep, kaput, knocked out and flatened like a banana peel run over by a 16 wheeler. Done. They are no more.

For an understanding of just what a BitCoin is, here is a link reviewing its definition….   http://en.wikipedia.org/wiki/Bitcoin

In a Forbes interview back in August with link shown below, site opperator Ross William Ulbricht, known as “Dread Pirate Roberts,” was quoted as saying the value of the business could be 10 or maybe 11 figures, our math says that’s at least 1,000 million or in other words a billion dollars.  Hmm…tradeable market values of BitCoin’s were plunging after the news of this bust.

Here’s one of the many Q and A from the Forbes interview, this question is about security: 

On the subject of security: What really protects you and Silk Road’s users from law enforcement? I understand you use Tor, PGP, and Bitcoin. Anything else I’m missing? Are you confident that these things can stand up to law enforcement’s surveillance tactics? Or the NSA’s?

I am, unless they have cracked the modern encryption algorithms, which I highly doubt. There are a multitude of security measures we take to secure the infrastructure that powers Silk Road, but I can’t go into details lest I empower those that would try to do us harm. There are a couple of little features that aim to improve security, such as incognito browsing which hides all of the images and the Silk Road logo, so it will be harder to tell what you are up to if someone else is in the room.

Further into the Forbes Interview: The Value Of Silk Road……

As far as my monetary net-worth is concerned, the future value of Silk Road as an organization dwarfs its and my liquid assets. At this point I wouldn’t sell out for less than 10 figures, maybe 11.

Goodby yellow brick road, hello rusty old steel bars.

Forbes Online did an interview back on August 14,2013 with Digital Lord: The Silk Road’s Dread Pirate Roberts (Q&A). Here is the link:

     http://www.forbes.com/sites/andygreenberg/2013/08/14/an-interview-with-a-digital-drug-lord-the-silk-roads-dread-pirate-roberts-qa/

Sources Wise Dog, Forbes,Reuters

Housing “Recovery” Showing New Cracks, This One Will Expand!

Posted By on October 2, 2013

Wise Dog Sources:

“We know from experience that if Carlyle Group is a seller (of anything), then you’ll want to be a seller also.  Yes, they are that good.”   “They buy wholesale, and sell retail or above. There’s no meat left on the bone when they’re done!”

Via Bloomberg,

Carlyle Group LP, the private-equity firm with more than a third of its $2.3 billion U.S. real estate fund in apartments, is reducing holdings of multifamily housing as rent growth slows from a post-recession surge.

The company is considering apartment sales as rising construction reduces multifamily shortages and price gains for rental properties make them less attractive for private-equity firms that seek returns of 20 percent or more.

“Our capital was useful at the front edge of the recovery.” [in other words, we sparked the bubble and now we want out]

Apartment-rent growth is slowing as the U.S. homebuying market rebounds and a wave of multifamily building adds to supply. In the third quarter, tenants on average paid 3 percent more than a year earlier after landlord concessions, down from 3.9 percent annual growth in effective rents in 2012 

“This remains well below what one would usually expect given such a low national vacancy rate,” Ryan Severino, senior economist at Reis, said in the report. “This reflects continued modest employment and income growth.”

“Investors really want the new Class A properties so we’re selling into that demand,” Stuckey said.

“Our basic view is we’re in a low-growth environment,”

Wise Dog

Computer Security Firm McAfee Warns Of ObamaCare Phishing Scams

Posted By on October 1, 2013

Pay attention class, there will be a quiz on this!

Security firm McAfee warned Tuesday that hackers are likely to take advantage of the rollout of ObamaCare exchanges this week by launching phishing attacks aimed at stealing personal information.

Phishing attacks are designed to dupe users into revealing credit-card numbers or other confidential data by delivering phony links or attachments in emails and messages on social media sites.

Like many forms of cyber attacks, phishing scams have become more sophisticated in recent years, highlighted by a number of high-profile schemes that hit media companies like The Associated Press earlier this year.

“They’re getting very good at what they do,” said Davis. “It’s important that consumers take a cautionary note before they do anything. Step back and explore a way to verify this is legitimate and the source.”

McAfee warned it is seeing an increasing number of phishing schemes that try to trick users on social media sites like Facebook (FB), LinkedIn (LNKD) and Twitter, which is set to go public later this year.

The security firm lists a number of specific ways users can defend against phishing attacks.

  • Install patches on your operating system as soon as possible to prevent hackers from exploiting known security vulnerabilities.
  • Download the most up-to-date version of your Internet browser to deploy the latest security measures
  • Double check the domain name of a website to ensure it’s legitimate. Look for “https:” in the URL to confirm SSL encryption is being used
  • Don’t click on links in unsolicited email and ignore messages that call users to action by saying “your account will be terminated.” Rely on the phone instead and be sure to use numbers verified outside of the e-mail.
  • Be extra vigilant about downloading software and e-mail attachments from the Internet like free screen savers that may contain keyloggers or screen scrapers that can steal information.

 Wise Dog 

 
 
 

 

“Trust” Is Fading Into The Sunset

Posted By on October 1, 2013

Yikes… heading down hill with no brakes!

The 10 Most Powerfull Corporations In The World

Posted By on September 27, 2013

Below are the top 10 corporations by market cap listed in 5 year increments spanning the last 21 years, actually the last increment was 6 years. While the names have changed at the very top, the premise has not.  And…the winner for 2013 is (drum roll) Apple. But pay attention to this, nobody has stayed number one for very long! In fact, most don’t even stay in the top ten. Exxon and GE have been star performers the longest.

Wise Dog

Inflation Based On Three Easy Comparisons…..

Posted By on September 26, 2013

Based on the graph below, a new car is the deal of the decade, in fact it’s the best deal going back multiple decades!

Wise Dog

Student Loans…Look At This Insane Graph Of Parabolic Student Loan Debt – Much Of Which Is ‘A University Or College Sales Pitch That’s Not Much Different Then A Car Salesman’

Posted By on September 26, 2013

“Soaring higher education costs are further widening the achievement gap as non-wealthy students are forced to become debt-serfs to pay for college”. This is a system that forces poor and middle income households to shoulder student loans for decades in return for marginal-return degrees. It is wrong and recklessly predatory. Yet this is the system that higher education supports. In fact the financial model for many universities now have new profit incentives built into the revenue model (for the university of course). Part of that model requires students stay on campus in student dorms for their first two years at a substantial cost.

Wise Dog

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