http://www.youtube.com/watch?v=3a0CXIV7hRY
About Real-Time Magnetosphere Simulation
http://www2.nict.go.jp/y/y223/simulation/realtime/index.html
DECEMBER 26, 2009 AT 5:57 PM CDT
Brown reassures as bomb hunt turns to London 26 Dec 2009 The prime minister sought to reassure the public today after it was revealed a student based in the UK is suspected of trying to bomb a passenger jet. Gordon Brown spoke as the Metropolitan Police searched the home of Abdul Farouk Abdulmutallab, 23, who studied engineering at University College London. The Nigerian has been named by US authorities as the man responsible for trying to blow up a plane carrying 278 passengers as it landed in Detroit on Christmas Day. Brown said the incident had posed a "serious potential threat" and the government was prepared to take "whatever action necessary" to safeguard the public from further attacks.
Terror attack on US flight to Detroit investigated in London 26 Dec 2009 Searches are being carried out at a mansion flat in central London after a man with suspected links to al-Qaida [al-CIAduh] allegedly tried to blow up a transatlantic plane, Scotland Yard said today... Security has been stepped up at UK airports for passengers flying to the US, the Department for Transport said. Gordon Brown said the UK would take "whatever action was necessary" to protect passengers. UK airport operator BAA said searches on flights to the US would increase. A statement on the British Airways website said Washington had revised its security arrangements for all travellers to the US and they would only be allowed one piece of hand luggage.
Police search London addresses after plane attack 26 Dec 2009 Police have been searching premises in London today after a Nigerian man tried to ignite an explosive device on a flight from Amsterdam to Detroit. Prime Minister Gordon Brown said Britain had been working closely with US authorities and investigating the incident since it had happened. "Because of the serious potential threat posed by the incident, I have spoken to the Commissioner of the Metropolitan police, whose offices have been carrying out searches of properties in London," Brown said in a statement.
Investigators: Northwest Bomb Plot Planned by al-Qaeda in Yemen --Officials Say Bomb Materials Sewn Into Suspect's Underwear by Top Terror Bomb Maker 26 Dec 2009 The plot to blow up an American passenger jet over Detroit was organized and launched by al-Qaeda [al-CIAduh] leaders in Yemen who apparently sewed bomb materials into the suspect's underwear before sending him on his mission, federal authorities tell ABC News. Investigators say the suspect had more than 80 grams of PETN, a compound related to nitro-glycerin used by the military. The so-called shoe bomber, Richard Reid, had only about 50 grams kin his failed attempt in 2001 to blow up a U.S.-bound jet.
Man held over US plane bomb bid 26 Dec 2009 A Nigerian man believed to be linked to al Qaeda militants was in custody today after he tried to ignite an explosive device on a US passenger plane as it approached Detroit. The suspect, who suffered extensive burns, was overpowered by passengers and crew on the Christmas Day flight from Amsterdam. The passengers, two of whom suffered minor injuries
Officials say explosion on US plane was terror attack 26 Dec 2009 US authorities believe an incident involving a small explosion aboard a Delta-Northwest Airlines flight to Detroit on Friday was an attempted act of terrorism, a White House official said. The Transportation Security Administration said the person responsible for the incident was taken into custody and the plane, which departed from Amsterdam, had landed safely in Detroit. "We believe this was an attempted act of terrorism," a White House official told Reuters on condition of anonymity.
Airports Tighten Security After Failed Bomb Plot 25 Dec 2009 The Transportation Security Administration is enhancing security at airports around the country after a senior U.S. counterterrorism official said someone tried, but failed, to blow up a Delta/Northwest Airlines Flight 253 passenger plane. U.S officials say the passenger, Abdul Mudallad, a Nigerian citizen, claims he was acting on behalf of Al-Qaeda when he tried to blow up a flight Friday as it landed in Detroit from Amsterdam.
Police lose battle over evidence of 'British 9/11' plot --Scotland Yard must reveal whether it had CIA intelligence 26 Dec 2009 Scotland Yard has been ordered to reveal whether it has any evidence to support America’s claim that Britain was saved from a 9/11-style disaster by the CIA’s secret foreign interrogation centres. The Times has won a case under the Freedom of Information Act forcing British police to say whether the US stopped a plot to fly planes into Canary Wharf and Heathrow. The claim was made by President [sic] Bush when he first acknowledged the existence of a clandestine CIA prison network created to fight his War on of Terror. Scotland Yard has been given 35 days to comply or appeal. If it admits that there is no such intelligence, it would undermine any political defence for America’s strong-arm tactics in fighting terrorism.
Software fraudster 'fooled CIA' into terror alert --Spooks 'f*cking livid' 24 Dec 2009 A con man fooled US spooks into grounding international flights by selling them "technology" to decode al-Qaeda messages hidden in TV broadcasts, it's claimed. A long and highly entertaining Playboy article explains that in 2003, Dennis Montgomery was chief technology officer at Reno, Nevada-based eTreppid Technologies. Montgomery reportedly convinced the CIA that he had software that could detect and decrypt "barcodes" in broadcasts by Al Jazeera, the Qatari news station.
Friend of Fort Hood gunman 'killed in attack on Yemen hideout' 26 Dec 2009 An American-born radical Islamist, believed to have links to the Fort Hood gunman accused of killing 13 colleagues last month, may have been among 30 militant leaders killed when Yemeni aircraft bombed suspected al-Qaeda hideouts. Anwar al-Awlaki, who reportedly corresponded by e-mail with Major Nidal Malik Hasan before the shooting at the Texan base, was thought to have been attending an al-Qaeda meeting in Rafadh when the airstrikes took place on Thursday. At least 34 [alleged] members of the terror organisation were killed, according to the Yemeni Embassy in Washington. A similar number were killed in a raid last week.
Obusha opens new war front; lamestream media focuses on bogus terror incidents to provide popular support for 'war on terror:' U.S.-aided attack in Yemen thought to have killed Aulaqi, 2 al-Qaeda leaders 25 Dec 2009 Yemeni forces, backed by the United States, launched a major attack Thursday on a meeting of senior al-Qaeda [al-CIAduh] operatives thought to include the Yemeni American cleric linked to the suspect in the Fort Hood shootings [?!?], U.S. and Yemeni officials said. U.S. officials believe that the cleric, Anwar al-Aulaqi, was probably killed in the assault, as were two al-Qaeda leaders, according to a senior Obama administration official. One of those leaders was the head of the terrorist network's operations on the Arabian Peninsula and once served as Osama bin Laden's personal secretary; the other was a Saudi national and former detainee at the U.S. prison at Guantanamo Bay, Cuba. Yemeni officials, tribal leaders and eyewitnesses said it was not clear whether Aulaqi and the al-Qaeda leaders were killed or wounded in the strike [so they can be re-killed another day].
In Pakistan, militants blow up three more schools 25 Dec 2009 'Pakistani militants' have reduced three state-run schools to ruins across the country's volatile northwest, where the government has launched a major counterinsurgency operation. The bomb attacks targeted two schools in the Khyber tribal district near the border with Afghanistan, a Press TV correspondent reported. "Militants blew up a government boys' high school and a middle school with explosives around 3.00 am (2100 GMT)," tribal administration official Rehan Gul Khattak said. [Blowing up schools? That's (exclusively) a Blackwater-US drone-CIA black ops thing.]
Afghanistan another Vietnam, says captive US soldier 25 Dec 2009 An American trooper in Taliban captivity says that the United States has lost its grip on the Afghan war, urging the American people to help stop the 'nonsense.' "I'm afraid to tell you that this war has slipped from our fingers and it's just going to be our next Vietnam unless the American people stand up and stop all this nonsense," said US soldier Bowe Robert Bergdahl in a video released by the militants on Friday, the AFP news agency reported... Taliban spokesman Yousuf Ahmadi told AFP that the soldier "is not being tortured or tormented" by the militants [unlike how the US treats its captives].
Saudi would have nuked Houthis: Yemeni MP 25 Dec 2009 Yemeni lawmaker Yahya al-Houthi says Saudi Arabian warplanes are engaged in the relentless bombardment of civilian positions in Yemen's war-torn north. In an interview with Press TV on Friday, the Yemeni lawmaker accused the Saudi army of using internationally banned weapons in its attacks on villages in the northern province of Sa'ada, regretting the high civilian toll from the raids. If Riyadh had nuclear weapons, it would have used them against the Houthi fighters, the lawmaker charged.
In fresh Iraq violence, 18 people killed 25 Dec 2009 More than a dozen people have died as a fresh wave of violence hits Iraq despite tightened security measures for Christmas and the Shia occasion of Ashura. Six people were killed and 26 others wounded in a bomb explosion in Baghdad's eastern district of Sadr City on Friday when a roadside bomb struck a procession to mark the anniversary of the third Shia Imam's martyrdom...
Two dozen killed in blasts across Iraq 24 Dec 2009 Over two dozen people have been killed and more than 150 others have been wounded in a string of bomb attacks across Iraq ahead of Christmas and Ashura. In the worst Thursday attack in the central Iraqi town of Hilla in Babil Province, twin car bombs killed 15 people, including the provincial councilor, Naama al-Bakri, a senior member of the ruling Dawaa Party, and injured 70 others.
Probe confirms CIA black jails in Lithuania 26 Dec 2009 After the unexpected resignation of Lithuania's intelligence chief, a controversial parliamentary probe confirms the existence of CIA-run black jails in the Baltic state. The parliamentary panel report caused considerable consternation after confirming that the CIA ran at least two black prisons in Lithuania where 'terror suspects' may have been held.
Iran: US nukes biggest threat to global security 24 Dec 2009 Iran's top nuclear negotiator Saeed Jalili says the US should be relieved of its veto power and disarmed over the use of atomic bombs on Hiroshima and Nagasaki during World War II. "The least penalty for the United States is its disarmament and disqualifying its veto power," said Jalili during his visit to Hiroshima. "Unfortunately not only was not the US condemned for Hiroshima massacre but it was also awarded with veto power in the (UN) Security Council," he said.
Israeli soldiers shoot dead six Palestinians 26 Dec 2009 Israeli soldiers have shot dead six Palestinians and left a fourth one wounded in separate incidents in the West Bank and the north of the Gaza Strip. According to a Palestinian medical source, three Palestinians were killed in northern Gaza as they were on their way to cross over a wall to work in Israel on Saturday.
Barak cracks down on army 'mutineers' 24 Dec 2009 Defense Minister Ehud Barak, Israel's most decorated soldier, is targeting army-linked seminaries that produce many of the country's combat troops because the young soldiers are refusing to move against Jewish settlers in the West Bank. Barak's action has incensed Israel's right wing, which supports the settlers and has vowed to oppose the 10-month freeze on settlement building announced by Prime Minister Binyamin Netanyahu, under pressure from Washington, in late November.
Their lukewarm pandemic was the dry-run. School vaccinations could expand as byproduct of swine flu pandemic 25 Dec 2009 Top public health officials see this year's swine flu vaccination efforts as an opportunity to consider large-scale immunization campaigns at the nation's schools. Local and state health departments were charged with administering the estimated 259 million doses the federal government bought to 'fight' the H1N1 influenza virus. A total of 34 states incorporated public and private schools into their campaigns. [See: Baxter working on vaccine to stop swine flu, though admitted sending live pandemic flu viruses to subcontractor 26 Apr 2009 and Killer flu recreated in the lab 07 Oct 2004.]
Cook County sheriff set to hire hundreds 24 Dec 2009 (IL) The Cook County Sheriff's Department says it is set to make hundreds of hires in coming months. Sheriff Tom Dart said Wednesday that his department is prepared to hire more than 500 correctional officers next year. The first class of recruits is to come in January. The sheriff's office says the jobs are available because of a federal mandate that more officers be added at the Cook County Jail.
Cellphone Searches (The New York Times) 26 Dec 2009 The Ohio Supreme Court has struck an important blow for privacy rights, ruling that the police need a warrant to search a cellphone. The court rightly recognized that cellphones today are a lot more than just telephones, that they hold a wealth of personal information and that the privacy interest in them is considerable. This was the first such ruling from a state supreme court. It is a model for other courts to follow.
U.S. promises unlimited financial assistance to Fannie Mae, Freddie Mac 25 Dec 2009 The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress. The Christmas Eve announcement by the Treasury Department means that it can continue to run the companies, which were seized last year, as arms of the government for the rest of President Obama's current term. But even as the administration was making this open-ended financial commitment, Fannie Mae and Freddie Mac disclosed that they had received approval from their federal regulator to pay $42 million in Wall Street-style compensation packages to 12 top executives for 2009.
Previous lead stories: 'Good' Taliban destroy Afghan Army base 20 Dec 2009 Forces under the command of a leader considered to be one of the "good Taliban" by the Pakistani military destroyed an Afghan Army camp. Taliban forces commanded by Mullah Nazir blew up an the Afghan Army base, which was just across the border from the Angoor Adda region in Pakistan. The region is under the control of Nazir, a Pakistani Taliban commander. "Sources said the Taliban planted explosives all over the base and blew it up, destroying bunkers and installations," Dawn reported. The based was destroyed after "a contingent stationed there moved out of the fortified compound." The Taliban and "a group of tribesmen" then looted the base. [See: Rep.: US may be 'funding the very insurgents we are trying to fight' --Congress investigating charges of 'protection racket' by Afghanistan contractors 17 Dec 2009.]
US anti-drug effort in Afghanistan criticized 23 Dec 2009 The State Department's internal watchdog on Wednesday criticized the agency's nearly $2 billion anti-drug effort in Afghanistan for poor oversight and lack of a long-term strategy. The department's inspector general said the Afghanistan counter-narcotics program is hampered by too few personnel and rampant corruption among Afghan officials. [The US mission in Afghanistan is to keep the gas and opium pipelines flowing. See: Trail of Afghanistan's drug money exposed By Julien Mercille 16 Dec 2009 The total revenue generated by opiates within Afghanistan is about $3.4 billion per year. Of this figure, according to UNODC, the Taliban get only 4% of the sum... The remaining 75% is captured by government officials, the police, local and regional power brokers and traffickers - in short, many of the groups now supported (or tolerated) by the United States and NATO are important actors in the drug trade.]
The suspense is over and it is inevitable that the monstrous medical care bill will become law. There is no way to sanitize this thing, period. It is the ultimate "Progressivist" legacy.
Paul Krugman, perhaps the most visible "Progressive" today, supports this bill because it vastly expands the scope of the state in our lives. Like most "Progressives," Krugman believes many things about a state controlled by people he supports. Among the "Progressive" beliefs are:
Few people actually know everything that exists in this long and convoluted bill. However, that is unimportant, for in the end, the executive branch and its bureaucracies, not Congress, will interpret what the bill contains.
Most people still have the civics book ideas in their heads regarding law and the three branches of government. Americans are taught from grammar school on that the federal government has three branches: Congress, the Executive Branch, and the Federal Courts. According to the civics lessons, Congress makes the laws, the Executive Branch carries out the laws, and the Federal Courts interpret the laws.
That "model" of government disappeared even before the Progressive Era gripped the country a century ago, but it gained in strength during the Great Depression. "Progressives" such as Theodore Roosevelt and Herbert Croly, believed that people had become so advanced through "science" that they no longer needed to be subjected to the messy and (to them) "chaotic" processes of private markets and legislative debate. The "experts" already knew what needed to be done, and anything done by legislatures and markets to delay the directives of the "experts" should be swept away. READ MORE ...
Lithuania provided all the necessary conditions for operating a CIA secret prison for terror detainees, a parliamentary investigation has confirmed.
In light of the report, Lithuania’s prime minister has called for a crackdown on corruption in the country’s security services.
… historian and investigative journalist Webster Tarpley says that now that the official probe has proven the allegations true, the official US media is trying to cover the story up.
‘This is a very bitter pill [for Lithuania],’ Tarpley told RT. ‘It is clear that as a price for NATO membership, Lithuania was forced to let the CIA run wild with kidnappings, secret prisons and no charges, no due process, no notifications to the International Red Cross – none of this stuff.’
Click here to view Webster Tarpley’s recent interview on Russia Today
The season for sharing: Christmas brings gifts to the people of Vilcabamba, Ecuador
(NaturalNews) Christmas was in full swing in Vilcabamba, Ecuador this year, where numerous foreigners participated in widespread gift-giving. I took part in a half-day gift distribution effort where two local business men from Vilcabamba joined with two...
Just 16 Ships Expel as Much Pollution as All the Cars in the World
(NaturalNews) Large shipping vessels have become commonplace in today's global marketplace as goods are imported and exported across the world. While the high levels of pollution they create are something that most people don't think too much about, some...
Brain Fitness should be Alongside All Fitness Protocols
We all share worries about brain decline, especially among the aging population. Scientists have long concluded that mental processing does slow with age. According to most studies, the human brain stops growing in its early 20s, after which...
The Cause Behind the Great Potato Famine (And Why it's Coming Back)
(NaturalNews) Researchers have sequenced the genome of the fungus responsible for the Great Irish Potato Famine in the 1800s, uncovering the reason that the organism continues to plague potato farmers to this day. "This pathogen has an exquisite ability...
Hundreds of Chemicals Found in Newborns
The umbilical cord is the lifeline of infants; it brings nutrients and oxygen to the baby. These days, it also brings hundreds of poisons. Recently, the Environmental Working Group tested the umbilical cord blood of ten American minority...
Merry Christmas from NaturalNews and the Health Ranger
(NaturalNews) Here's a Merry Christmas to all the NaturalNews readers from the Health Ranger. And yes, I do specifically mean Merry Christmas. I don't mean just "Happy Holidays" or "happy winter break" or even "happy end-of-year time off." What I mean...
December 24, 2009 - The oil industry is more powerful today than at any other time in history save the early 20th century. Thanks to last year's record run-up in oil prices, seven of the world's most valuable corporations are now oil companies. Yet just one of those companies has become the focus of intense consumer ire.
Perhaps the largest coordinated activist campaign in history is being launched against the San Ramon-based Chevron Corporation. Foregoing boycotts and other traditional market campaign techniques, non-governmental organizations are creatively communicating the business case for why Chevron should change its ways, focusing on mobilizing company shareholders and consumers to compel the company to come clean and pursue social and environmental leadership.
This unprecedented campaign to make Chevron the poster child of corporate irresponsibility has already persuaded pension funds in California, Maryland, New York, and Pennsylvania to consider selling a total of $12 billion in Chevron shares on the grounds that the firm is mismanaging its operations around the globe. The prime focus of this ongoing anti-Chevron effort has been the company's annual shareholder meetings, but protests at the Richmond refinery and a series of movie and PR stunts have been also been effective tactics. READ MORE....
Sovcomflot, Russia's largest shipping company, will start delivering Russian oil and gas in the eastern direction of its Arctic shipping lane in the summer, the company head said on Saturday.
At a meeting with Russian Prime Minister Vladimir Putin, Sergei Frank said Sovcomflot was planning to launch pilot shipments of Russian hydrocarbon reserves in the eastern direction of the Northern Sea Route, from the Atlantic to the Pacific via Russia's Arctic, later this year.
"We will make such pilot deliveries in the summer," he said.
Frank said the goal was to expand oil and gas markets for domestic energy producers and enter new ones.
The businessman said though shipments via the Arctic had been made before, the scale and cargoes were different.
"We are cooperating closely with the transportation and nuclear power ministries, and with the federal office of Rosatomflot [state-run civil nuclear fleet corporation] now to arrange everything properly for [oil and gas] shipments," Frank said.
He said the eastward shipment experience would later be used in the development of West Siberia's Yamal fields and also for liquefied natural gas (LNG) supplies.
NOVO-OGARYOVO, December 26 (RIA Novosti)
http://en.rian.ru/russia/20091226/157382462.html
26 December, 2009, 02:03
Imagine living life trapped in your own body – unable to move, unable to speak. This is reality for many people who have survived strokes, injured their spines, or suffered other damage to their nervous systems.
But hope may be in sight, thanks to emerging research in Moscow.
“By imagining the movement of the left hand, the patient can make the lights switch on, or by imagining the movement of the right hand, he can learn to switch the TV set on. Since we take the signal right from the brain, this functions potentially even in cases when the patient can’t move his hands at all, when the muscle activity is zero,” says Vadim Roshin, research officer from the Russian Academy of Science.
Aleksandr Kaplan at Moscow State University is developing devices that use the brain’s basic electrical signals to control machines that can help – but he thinks they can do much more.
In one basic program, sensors read the brain’s impulses and send the message to a computer, in this case working to put a puzzle game together. Currently, there are several teams across the globe working on this.
Kaplan’s focus is on increasing the machine’s efficiency, with the goal of introducing this technology for everyday use.
“The main thing is you can use your thoughts directly, without using your muscles. Why use your muscles if you can do the same with just your thoughts? Why do you need to press a button if you have the thought in your brain already? This is the essence of brain-computer interface. We decipher electrical activity and send instructions directly, bypassing muscles,” explains Prof. Aleksandr Kaplan.
The equipment is expensive and the technology is still years from mainstream use. Also, the headwear might not be the best-looking in the world.
However, they promise that, as the technology develops, they will work on something that looks a little bit better. And fashion may be a small price to pay for somebody to be able to interact with the world around them.
End Of The Year: U.S. Recruits Worldwide For Afghan War - by Rick Rozoff - 2009-12-24 |
- by Sherwood Ross - 2009-12-25 http://www.globalresearch.ca/index.php?context=va&aid=16646If Iraq war spending helped plunge the U.S. economy into its worst slump since the Depression, what does President Obama think his escalation of the Afghan war will do it?
Besides forcing taxpayers to cough up fresh billions to enable the Pentagon to chase down a few hundred Taliban fighters, the Afghan war is liable to continue to inflate oil prices---and this means more than the ongoing swindle of motorists at the pump.
Higher oil prices also slow the global economy, causing our trading partners to buy fewer Made-in-USA goods, thus reducing demand for our products and leading to layoffs.
Spending money on war also siphons billions of dollars from truly productive uses.
“Today, no serious economist holds the view that war is good for the economy,” write Nobel Prize-winning economist Joseph Stiglitz and Harvard government finance expert Linda Bilmes in their book “The Three Trillion Dollar War: the True Cost of The Iraq Conflict.”
Referring to Iraq, they write, “The question is not whether the economy has been weakened by the war. The question is only by how much.” They note, “Oil prices started to soar just as the war began, and the longer it has dragged on, the higher prices have gone.”
Even so, by their estimate, (a word they stress,) the increased price of oil attributed to the war comes “to somewhat in excess of $1.6 trillion.” Not only consumers but State and local governments “have had to cut back other spending to pay the higher prices of oil imports.” READ MORE.... |
The U.S. spends more for war annually than all state governments combined spend for the health, education, welfare, and safety of 308 million Americans.
Joseph Henchman, director of state projects for the Tax Foundation of Washington, D.C. says the states collected a total of $781 billion in taxes in 2008.
For a rough comparison, according to Wikipedia data, the total budget for defense in fiscal year 2010 will be at least $880 billion and could possibly top $1 trillion. That’s more than all the state governments collect.
Henchman says all American local governments combined (cities, counties, etc.) collect about $500 billion in taxes. Add that to total state tax take and you get over $1.3 trillion. This means Uncle Sam’s Pentagon is sopping up nearly as much money as all state, county, city, and other governmental units spend to run the country.
If the Pentagon figure of $1 trillion is somewhat less than all other taxing authorities, keep in mind the FBI, the various intelligence agencies, the VA, the National Institutes of Health (biological warfare) are also spending on war-related activities. READ MORE>>>
http://pubrecord.org/nation/6376/federal-spending-exceeds-state/
MAP | 6.0 | 2009/12/26 08:57:25 | -5.561 | 131.130 | 57.0 | BANDA SEA |
Magnitude | 6.0 |
---|---|
Date-Time |
|
Location | 5.561°S, 131.130°E |
Depth | 57 km (35.4 miles) |
Region | BANDA SEA |
Distances | 270 km (165 miles) N of Saumlaki, Tanimbar Islands, Indonesia 345 km (215 miles) W of Dobo, Aru Islands, Indonesia 765 km (475 miles) N of DARWIN, Northern Territory, Australia 2700 km (1680 miles) E of JAKARTA, Java, Indonesia |
December 24, 2009
Barack Obama played a practical joke on a political colleague by phoning into a radio station and pretending to be a disgruntled voter.
The US president posed as 'Barry from DC' as a wind-up on Governor of Virginia Tim Kaine.
He said: 'Governor Kaine this is actually the president the United States here.
He said: 'That means a lot a lot. As I think back about my four years as governor I still think my happiest day as governor was in November 2008 and the great work we did across the nation and in Virginia was spectacular.
'We're lucky and the nation is lucky, It's been an amazing first year of your administration.'
But Obama couldn't resist poking more fun at the governor's expense.
He said: 'We are just very proud of you, we continue to think that your wife is probably a little superior to you, as I think people feel about the First Lady.
'You and me have to stick together as we're married to better people.'
The market mayhem since the global financial meltdown began in 2008 has provided fertile soil for proponents of a branch of investment theory which holds that market cycles move in phase with the Moon.
Now, backed with decades of data and behaviour that can no longer be explained by purely rational analysis, the lunar theory has slipped into the mainstream.
In a piece of research that involved 14 of its senior analysts from across five leading financial centres scrutinising data from 32 leading indices over several decades, Macquarie Securities has arrived at a startling discovery: the two days on either side of the new lunar month represent most of the positive returns on equity markets for the next four weeks.
"Using data since 1988 for a wide variety of indices," the report concluded, "it is quite clear that a strong surge in returns can be seen leading into the turn of the (lunar) month."
The analysts are quick to dismiss the idea that the theory applies only to markets in Asia -- a part of the world where belief in the lunar theory, especially in Hong Kong and Japan, is better established.
"The effect is not just an Asian effect, it happens globally," the Macquarie report said.
"Of the 32 markets we examined, all showed higher than average returns around the turn of the (lunar) month ... and for many of the markets, the average return for the rest of the month was below, or close to, zero."
Equity markets, it seems, act as a particularly sensitive barometer for the invisible impact of lunar cycles on human psychology -- an influence that has been widely assumed for centuries, but never solidly proven by science.
Macquarie points to two academic studies, which found that returns around the new moon are nearly double that of the corresponding full moon phase.
Using MSCI index data from the same 32 equity bourses and tracking decades of data, the Macquarie report found that: "In many markets, a very clear increase in average returns can be seen leading into the lunar new month."
The results, the analysis said, showed that without exception every market showed a very slight increase in the average return over the new moon period.
Other brokerage firms have latched on to parts of the lunar theory. Analysts at CLSA recently pointed out to clients that the recent near-collapse of the global credit and financial system was presaged by the lunar cycle.
As markets teetered on the brink of oblivion in 2008, the true panic began exactly on the 27th day of the seventh lunar cycle. Eerily, that same phase marked the height of panic during the great market crashes of 1857, 1907, 1929, 1987 and 1997.
The Macquarie report, which acknowledges that investors are unlikely to adapt their strategies to fit the new research, concludes that the relevance of the theory is "probably slightly more powerful than, say, betting that good value stocks outperform in the long run".
December 24, 2009
As I have previously noted, credit default swaps are destabilizing for the economy. See this and this.
Now, Princeton University economists and computer scientists have demonstrated that financial derivatives are also inherently vulnerable to fraudulent pricing.
PhysOrg summarizes Princeton's findings:
In a result that may have implications for financial regulation, researchers from computer science and economics have revealed potentially impenetrable problems with the pricing of financial derivatives. They show that sellers of these investments could purposefully include pieces of bad risk that no buyer could detect even with the most powerful computers.
The research focused on collateralized debt obligations, or CDOs, an investment tool that combines many mortgages with the promise of spreading out and lowering the risk of default. The team examined what would happen if a seller knew that some mortgages were "lemons" and structured a package of CDOs to benefit himself. They found that the manipulation may be impossible for buyers to detect either at time of sale or later when the derivative loses money.
The team consists of Sanjeev Arora, director of Princeton's Center for Computational Intractability, his colleague Boaz Barak, economics professor Markus Brunnermeier, and computer science graduate student Rong Ge.
It is now standard wisdom that a major culprit in the 2008 financial meltdown was use of simplistic mathematical models of risk at financial firms. This paper, released as a working draft Oct. 15, suggests that the problems may go deeper.
"We are cautioning that even if you have the right model it's not easy to price derivatives," Arora said. "Making the models more complicated will not make these effects go away, even for computationally sophisticated."
Arora noted that the problem arises from asymmetric information between buyers and sellers, and goes against conventional wisdom in economic theory, which holds that derivatives reduce the negative effects of such unequal information.
"Standard economics emphasizes that securitization can mitigate the cost of asymmetric information," Brunnermeier said. "We stress that certain derivative securities introduce additional complexity and thus a new layer of asymmetric information that can be so severe it overturns the initial advantage."
Brunnermeier noted that the finding came from combining computer science and finance, which has not been done before but has the potential for further insights. “I anticipate that both fields can enrich each other,” he said.
On December 1st, President Obama talked about withdrawing U.S. troops from Afghanistan within 18 months.
Everyone now knows that there is no firm withdrawal date from Afghanistan. See this and this.
But in testimony to the Senate Armed Services Committee on December 2nd, Secretary of State Hillary Clinton actually gave a much longer horizon for the presence of U.S. troops in America:
Senator UDALL.— So, in an ideal world, we would get the job done militarily in the short term; in the medium and long term, we would have a presence in the region, economically, diplomacy, and politically.
Secretary CLINTON. Well, as we have with so many other countries— obviously, we have troops in a limited number of countries around the world; some have been there for 50, 60 years, but we have long-term economic assistance and development programs in many others. And we think that’s a likely outcome in both Afghanistan and Pakistan, that we would be there with a long-term commitment.
Does this mean that U.S. troops will be in Afghanistan in 50 year?
On the surface, Clinton's statement could be interpreted to mean that troops will leave sooner, but that America will have long-term economic assistance and development programs in Afghanistan for many decades to come.
However, U.S. charities working in Afghanistan report that they are subject to Pentagon sponsorship and control, and so the Afghani people view them as part of the U.S. military (which hampers their aid work).
Therefore, whether or not troops will remain in Afghanistan for a half century or more, the Afghani people and the rest of the world may consider it a permanent occupation.
Remember also that - while the U.S. government has promised to withdraw by December 31, 2011 from Iraq - the U.S. is building numerous permanent military bases in that country. (see this, this, this, this, this, this, this, this, this, and this). So talk is cheap.