Wednesday, July 31, 2013

Massive solar flare narrowly misses Earth, EMP disaster barely avoided

Trade your motor vehicles for a horse. Dig a well and install a manual pump. Invest in candles. Plant a garden. Learn archery. Learn how to make sauerkraut, beer, wine, smoked ham, and other foods that do not require refrigeration.

EMP electrical grid collapse is a real problem. Probability is low, but it would be a big mess. Electric grid is 1 of 17 infrastructure systems that need protection from the sun, natural hazards, and enemies. I doubt if politicians will do what is needed.

Interesting video on the site, CIA ex-director speech. Bureaucrats entertain each other but little work gets done.

> http://washingtonexaminer.com/massive-solar-flare-narrowly-misses-earth-emp-disaster-barely-avoided/article/2533727 >
> Would we have survived, without electricity, for the rest of the HOT > summer ?
> (NO A/C, Fans, Refrigerators in our homes & Stores etc.) maybe water > also shut off. > Back up Generators are only a temporary fix until out of fuel ! > Most Fuel-pumps at Gas-Stations would have shut down !
>
> >
>
> Massive solar flare narrowly misses Earth, EMP disaster barely avoided >
> >
> Share on print > Share > on em >
> >
> The earth barely missed taking a massive solar punch in the teeth two > weeks ago, an "electromagnetic pulse" so big that it could have > knocked out power, cars and iPhones throughout the United States. >
> Two EMP experts told Secrets that the EMP flashed through earth's > typical orbit around the sun about two weeks before the planet got there. >
> "The world escaped an EMP catastrophe," said Henry Cooper, who lead > strategic arms negotiations with the Soviet Union under President > Reagan, and who now heads High Frontier, a group pushing for missile > defense. >
> "There had been a near-miss about two weeks ago, a Carrington-class > coronal mass ejection crossed the orbit of the Earth and basically > just missed us," said Peter Vincent Pry, who served on the > Congressional EMP Threat Commission from 2001-2008. He was referring > to the 1859 EMP named after astronomer Richard Carrington that melted > telegraph lines in Europe and North America. >
> "Basically this is a Russian roulette thing," added Pry. "We narrowly > escape from a Carrington-class disaster." >

Bank blacklist boosts gold, cash and bank fee income

Rained all night and all day yesterday. It looked over so I went to the beach. Big black cloud blew in and it started raining, 30 minutes after I got there. I did absorb some electrons out of the water before I left.

Gold and fees are tools for deflating the sheeple. Millions of unbanked, mostly poor or illegal persons. They use cash or pay high fees for basic services. Gold for storing wealth, recycled through pawn shops often every month for year after year at very high effective interest rates. This system coud be stopped by federal government programs but will not because banks and pawnshops oppose losing their fees.

I used to argue for gold and oil investments 30 years ago to add portfolio diversification. That rationale has vanished. Now gold and oil is part of the banking system, owned by bankers, heavily advertised in the media, fox news, fortune magazine, etc.

Even though banks own lots of gold, Banks don't mind if gold price falls because during periods of price stability and long bull markets the banks already made money off the paper shorts, and maybe can force physical delivery to reduce their gold hoard (and rebuy if price falls too much.) Banks also know how to make the price stabilize or dip enough to make money off call options long and then let the price go back up to protect their net long position (which they can reverse if needed). They can use their physical gold hoard in conjunction with the ability to write paper to make money not matter what gold prices do.

Aluminum is similar -- banks own a lot of it in warehouses.

Banks own stuff and can manipulate the price of stuff and will manipulate prices in their favor. Whether you are long or short is likely that a bank is on the opposite side of the market and the bank will win, not you. If the bank loses they will get bailed out by tax payers. You will still lose.

There is no way to outsmart bankers on banking without becoming a banker. Most people cannot do that work. So most people they repeatedly get caught in traps set up by banks!

http://nyti.ms/131xPjB

NYTimes: Over a Million Are Denied Bank Accounts for Past Errors

Mistakes like a bounced check or a small overdraft have effectively blacklisted many Americans from the mainstream financial system, leading to fees for cashing checks, paying bills and wiring money.
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Tuesday, July 30, 2013

racism, extermination, socialism, education

Anti-white Racism has Reached Critical Mass in America

The Obama Administration will be actively encouraging race violence with taxpayer funds. Whites will be the scapegoat for failed economic policies. The vast majority of guns and ammo in the U.S. belong to whites. That is the reason for the big push to restrict guns and make ammo unavailable ("Its not for the children"). I have spoken with many whites with Zimbabwe passports fleeing that country. When hyperinflation hit the economy Zimbabwe President Mugabe blamed the white farmers for the problems of the blacks and blacks attacked them. Whites were driven from their homes and raped and killed. Later the government gave those homes and ranches to the blacks.

Ron

http://www.infowars.com/obamacare-supporters-sign-petition-for-mandatory-euthanasia-of-senior-citizens/
*Obamacare Supporters Sign Petition For “Mandatory Euthanasia” Of Senior Citizens People eagerly sign as activist tells them “We’re going to put them to sleep like you would your dog” Dice was able to gather several signatures for the fake petition, telling people in San Diego that they were signing to support putting senior citizens “to sleep” in order to save healthcare costs. “All I needed to do was mention the key words ‘Will you help Obama’ and people sign just about anything,” ** *

*Montana Bear Tragedy *

*This is a very sad story about a bear**... Everybody should heed the warnings not to feed wildlife because they become dependent and don't forage for themselves any longer. It is such a tragedy to see what has been done to our country's wildlife. The photo below captures a disturbing trend that is beginning to affect U.S. wildlife.*

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*Animals that formerly were self-sufficient are now showing signs of belonging to the Democrat Party. They have apparently learned to just sit and wait for the government to step in and provide for their care and sustenance. This photo is of a black bear in Montana turned Democrat. He's nicknamed Bearack Obearma. It is believed that he has become a campground organizer.*

SCHOOL BUS IN JAPAN*

**
SCHOOL BUS IN INDIA*
**

*.........and which country do I get when I have a technical problem with my computer?*
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Monday, July 29, 2013

Outlaw NSA data collection. Terrorists cannot electronically control horses.

New York Times article says politicians of various persuasions are upset and will probably pass laws to reduce the NSA surveillance tactics. Politicians can interview NSA analysts to see what they have been doing. Reward whistle-blowers a million dollars for exposing any illegal activity. If Goldman Sachs has been getting private emails to engage in insider trading, then all guilty parties should go to jail. Investigate analysts trading behavior and email access to see if they used their job to get rich, or helped their friends and family to get rich.

I wonder if NSA will get sued for auto accidents? "NSA took over my car" USA needs to return to horse-based transportation. Horses have built-in computers that cannot be taken over electronically by the NSA or terrorists. Horses do not need a drop of imported oil. Horses can go many places that autos cannot, without paved roads. Horses can swim. Horses are edible. Riders without helmets and cowboy hats can get vitamin D from the sun. Eliminate vehicular smog. Horses can be bred locally and reduce the balance of trade deficit. Horse cost is low enough that financing would not be needed, usually. Provide employment for lower skilled American blacksmiths instead of overpaid Germans. Reduce welfare costs and government deficits.

"those NSA programs allowed even low-level analysts to search the private emails and phone calls of Americans. “The NSA has trillions of telephone calls and emails in their databases that they’ve collected over the last several years,” “And what these programs are, are very simple screens, where all an analyst has to do is enter an email address or an IP address, and It searches that database and lets them listen to the calls or read the emails of everything that the NSA has stored, or look at the browsing histories or Google search terms that you’ve entered, and it also alerts them to any further activity that people connected to that email address or that IP address do in the future.” http://abcnews.go.com/blogs/politics/2013/07/glenn-greenwald-low-level-nsa-analysts-have-powerful-and-invasive-search-tool/

*http://nyti.ms/16dJIqy

NYTimes: Momentum Builds Against N.S.A. Surveillance The movement to significantly rein in surveillance by the National Security Agency began on the political fringes but has built up support from Republican and Democratic leaders. *

Automotive takeover schemes to be detailed at Defcon hacker conference

By*Darren Murph* postedJul 28th, 2013 at 7:31 PM13

Sunday, July 28, 2013

bad drugs from India. Generics. Plead guilty. Half billion dollar fine.

I heard that the Veteran's administration just gave them an exclusive contract despite this scandal.

Obama does not care about veterans!

http://www.nytimes.com/2013/05/14/business/global/ranbaxy-in-500-million-settlement-of-generic-drug-case.html?_r=1&

Generic Drug Maker Pleads Guilty in Federal Case

The generic drug maker Ranbaxy pleaded guilty on Monday to federal drug safety violations and will pay $500 million in fines to resolve claims that it sold subpar drugs and made false statements to the Food and Drug Administration about its manufacturing practices at two factories in India, the company and federal prosecutors announced Monday. The settlement is the largest in history involving a generic manufacturer and drug safety, the Justice Department said.

Ranbaxy has been operating under a consent decree with the Food and Drug Administration since last year after federal officials identified a host of manufacturing lapses at plants in India and one in the United States, and concluded that the company, which is a subsidiary of the Japanese pharmaceutical company Daiichi Sankyo, submitted false data to the F.D.A. Ranbaxy has not exported drugs from the two Indian factories, known as Paonta Sahib and Dewas, to the United States since 2008.

As part of the settlement on Monday, Ranbaxy pleaded guilty to three felony counts of violating the federal drug safety law and four of making false statements to the F.D.A. The company acknowledged that it failed to conduct proper safety and quality tests of several drugs manufactured at the Indian plants, including generic versions of many common medicines, like gabapentin, which treats epilepsy and nerve pain, and the antibiotic ciprofloxacin.

In the case of gabapentin — of special note because of the high stakes involved in treating patients with epilepsy — the company admitted that between June and August in 2007, it knew that certain batches had tested positive for “unknown impurities” and had unreliable shelf lives. But Ranbaxy waited until October of that year to alert the F.D.A. and announce a recall, which ultimately involved more than 73 million pills.

Ranbaxy workers were also lax in ensuring that certain batches of drugs remained effective throughout their estimated shelf life, and prosecutors said the company tested some products weeks or months after it told the F.D.A. that it had done so.

A Ranbaxy spokesman said the issues with gabapentin, also known as Neurontin, outlined in the plea agreement had no bearing on the safety or effectiveness of the drugs, and the F.D.A. said it did not receive any reports of patients being harmed by the drugs made at the plants in question.

In a statement Monday, Ranbaxy noted that the settlement involved conduct that occurred several years ago and said it had already set aside $500 million in anticipation of the penalties. The company is paying $150 million in a criminal fine and forfeiture, with the remainder going to settle civil claims brought by the federal government and all 50 states. A former Ranbaxy executive who alerted the federal government to the problems will receive close to $49 million in compensation for his role as a whistle-blower.

“Today’s announcement marks the resolution of this past issue,” Arun Sawhney, the chief executive of Ranbaxy, said in the statement. “We are pleased to continue bringing safe, effective and quality medicines to market for the benefit of consumers in the U.S. and other parts of the world.”

Ranbaxy’s troubles have not been limited to the lapses outlined in the federal settlement. Last November, the company halted production of generic Lipitor while it investigated why glass particles turned up in pills distributed to the public. The problem was traced to a cracked glass lining in a tank at another plant in India and Ranbaxy resumed production in February.

“I think what comes out of this suit is that Ranbaxy has really deep problems with quality control, and this case was essentially the canary in the coal mine,” said Patrick Burns, a spokesman for Taxpayers Against Fraud, a whistle-blower advocacy group.

Others say the company’s problems highlight how little oversight federal drug safety officials have of overseas plants. Studies that have shown the F.D.A. inspects foreign generic manufacturing plants about once every seven to 13 years, compared with once every two years for domestic manufacturers. A law passed last year will eventually require the F.D.A. to apply the same standards when inspecting all manufacturing plants, regardless of location. But some worry that federal budget cuts are slowing the adoption of that law.

“They just happened to stumble across the Ranbaxy problem at those two plants in India,” said Joe Graedon, a pharmacologist who runs a consumer Web site, the People’s Pharmacy, which has raised questions about the safety of generic drugs. “Ranbaxy was the biggest and one of the best in India. What about all the smaller ones? What does that say about them?”

Those who defend the generic-drug industry point out that the overwhelming majority of generic products are as safe and effective as their brand-name counterparts. And brand-name companies have encountered their share of quality problems: Johnson & Johnson is operating under a consent decree because of problems at manufacturing plants, and in 2010, the drug maker GlaxoSmithKline paid $750 million in criminal and civil fines to resolve a federal whistle-blower suit that highlighted problems at a factory in Puerto Rico.

Mr. Burns said the recent cases — and the large rewards earned by whistle-blowers — show that there is a renewed focus on drug quality. “The point is, the government is willing to pay money in order to catch these people and that’s a very strong message,” he said. “Hopefully it’s also a strong message for companies that they have got to clean up their act.”

Facebook making money

Vote on Facebook if you want your ideas heard. Facebook is popular because it is easy to useand many use it. Can express yourself and look up information. Like people you have not heard from in decades, like military people. Old photos,... Information not available elsewhere on the internet.

http://bits.blogs.nytimes.com/2013/07/25/facebooks-stock-soars-amid-rosy-growth-expectations/

*Facebook’s Stock Soars Amid Rosy Growth Expectations*
*Facebook’s stock levitated nearly 30 percent on Thursday, to $34.36 a share, after a****second-quarter earnings report **that was****far stronger than Wall Street had predicted **.*

Securities analysts raised their revenue and profit estimates and stock-price targets for the social networking company, which has seen sentiment about its prospects swing widely since its initial public offering at $38 a share in May 2012. Even the bears were impressed with the company’s second-quarter performance. Richard Greenfield of BTIG Research, who had long recommended that investors sell Facebook’s stock, put out a report on Wednesday declaring, “We were wrong.” In an interview on Thursday, Mr. Greenfield said: “The reality was that I don’t think I’ve ever raised my estimates on a company of this size by that much. They literally crushed my expectations.” The big rise in the company’s mobile revenue, to 41 percent of its total ad revenue, is the principal factor driving the change in perceptions, as I explored inan article in Thursday’s Times . But investors also seem to be giving Facebook more credit for its growth potential than they were in the past. Mr. Greenfield, for example, now predicts that the company will have revenue of $9.3 billion next year, up from his previous estimate of $7.4 billion. Facebook, which has about 1.2 billion users worldwide, said it has more than one million active advertisers, including all of the biggest global brands — a doubling from a year ago. The company said it sees great opportunity in reaching out to small local businesses, which are getting simplified tools to run ads, as well as in offering more sophisticated tools for big consumer brands. Sheryl Sandberg, Facebook’s chief operating officer, said that 88 million to 100 million people are on Facebook during primetime TV hours in the United States.

Sheryl Sandberg, Facebook’s chief operating officer, said after the company released its quarterly earnings report on Wednesday that video was “tremendously important” for Facebook users as well as marketers.
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Dangerous Cheap Walmart Drugs.pdf

Saturday, July 27, 2013

Lake County pot farm raid reveals horrifying tale of teen's captivity

Hippies are not harmless laid back pot heads.

They cause a lot of trouble: guns, drugs, cash,...

Humboldt, Lake, Mendocino, etc. are slummy hippie pot head counties.
They are destroying the environment with chemicals and destroying people with drugs.

But the Weather can be good.
Legal drugs can kill people just as dead as illegal drugs, and maybe more people take them:

http://articles.mercola.com/sites/articles/archive/2013/07/27/pill-poppers.aspx?e_cid=20130727_DNL_art_1&utm_source=dnl&utm_medium=email&utm_content=art1&utm_campaign=20130727

a lab at GlaxoSmithKline (GSK), where 2 million chemical compounds are kept in a vault. Scientists know little about their effects; each could be lethal or lifesaving. Through a process that could be described as finding a needle in a haystack, scientists methodically introduce a known disease molecule to each of the 2 million substances, one at a time, and assess whether anything happens. If ‘something’ happens, further tests are then conducted to find out what and why. Literally hundreds of millions of such tests are conducted, and it takes about $1 billion and an estimated 15 years of work to reach the ultimate goal: a licensed drug. Despite what most are led to believe, just because the drug makes it through the regulatory process it’s no guarantee of safety. Typically, more information is learned about a drug after it’s been released to the market than before, because only then does it get the widespread exposure that clinical trials cannot simulate. It’s usually after millions of people have already started taking a drug that severe, sometimes deadly, side effects are observed, but unfortunately for some, it will be realized too late. As stated in the documentary: “Drugs are not designed but discovered, and we only find out what they really do to us when we take them.” the head of drug discovery at GSK, even said: “In many ways you learn as much about your medicine after it’s launched as you knew before.” (Of course, GSK has also pleaded guilty to felony charges for knowingly manufacturing and selling adulterated drugs, a practice that adds even more of a ‘learning curve’ when drugs are released… )

*Lake County pot farm raid reveals horrifying tale of teen's captivity*

*L.A. girl, 15, was sexually abused and kept in a metal box, authorities say. Three men are in custody, and investigators say there may be other victims*.

*They found 1,200 marijuana plants, guns and other items. But the most horrifying discovery was the metal box the girl said she was kept in. She told police the men made her stay in it on two occasions for a total of three days, court records show.

Spray-painted on the outside was the first letter of the girl's name. Inside was a decal that "depicted an animal skull surrounding the shadow image of a human skull with the logo 'Bone Collector,'" according to the court documents.

The men put a hose through one of the holes to clean the girl and wash out the human waste inside, prosecutors alleged. Inside the box investigators found human hair and a poem the girl had written about being held inside the box.

A "rack" allegedly used for bondage and sex toys were also found on the property. Authorities alleged in court papers that Balletto called the girl a "trooper" because she didn't scream when she was in the box.*

*

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Balletto and Pearmain
Ryan Balletto, 30, left, and Patrick Pearmain, right, 25, are being held without bail.(Lake County Sheriff's Department/July26, 2013)

* Interactive map: Girl kept in metal box on pot farm
Interactive map: Girl kept in metal box on pot farm
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LUCERNE, Calif. -- Local residents of Lake County said they were horrified by allegations that two local marijuana farmers kidnapped a 15-year-old girl, sexually assaulted her and kept her inside a small tool box.

Sisters Marla and Andrea Swan own a home about eight miles away from the marijuana farm where the girl was allegedly held.

LAKEPORT, Calif. — When authorities raided the marijuana growing operation, they found greenhouses filled with plants over 6 feet tall, neatly lined with individual irrigation systems. But the rest of the property, one federal agent recalled, looked like a horror scene.

They found dilapidated trailers where farmers appeared to live, caches of weapons and a bloody towel.
"To me, it smacked of a scene from 'Deliverance,'" said David Prince, assistant special agent in charge of Homeland Security Investigations in Northern California. "If I was a plant, that's where I'd want to live. If I was a human, that's not where I'd want to live."

It was here, in a remote area east of Clear Lake in Northern California, that authorities allege a kidnapped teenage girl from Los Angeles County was sexually abused and occasionally held captive in a metal box. The box — about 4-by-2-by-2 feet — sat outside one of the trailers, with holes drilled through the lid and a blanket inside.

The box "had been altered to imprison a human," a federal criminal complaint read.

In charges unsealed in San Francisco, federal officials allege that two men had abused the girl and forced her to help with their marijuana production. The girl eventually called authorities from a West Sacramento hotel, where she was rescued, officials said.

The suspects — Ryan Alan Balletto, 30, and Patrick Steven Pearmain, 25 — face numerous felony charges. TheLos Angeles Police Department arrested a third man, Eric Edgar, on suspicion of sexual assault.

Immigration and Customs Enforcement agents had been investigating the 680-acre property owned by Balletto since December 2011, court documents showed.

The girl was reported missing April 2 from a San Fernando Valley home, according to the LAPD. Cmdr. Andy Smith said detectives believe she was living on the streets of Hollywood when she came in contact with Balletto.

A few weeks later, LAPD detectives received a tip that the girl was being held inside some kind of box at an undisclosed location in Northern California. The detectives eventually learned that she was in Lake County with Balletto and informed authorities there.

But before Lake County sheriff's officials could raid Balletto's property, they got a call from the girl, records show. She told them she was fine and staying with Balletto. A detective traced the call to the hotel, and authorities there found her in a room with Pearmain.

Authorities say they collected a bag full of marijuana,prescription drugs , condoms and a pregnancy test from the hotel room. Pearmain also had a notebook on him that had an apparent script for the girl to read to police over the phone, authorities say.

Then, authorities raided the marijuana farm. "It was kind of like opening Pandora's box," said Lake County sheriff's Sgt. Dennis Ostini.

They found 1,200 marijuana plants, guns and other items. But the most horrifying discovery was the metal box the girl said she was kept in. She told police the men made her stay in it on two occasions for a total of three days, court records show.

Spray-painted on the outside was the first letter of the girl's name. Inside was a decal that "depicted an animal skull surrounding the shadow image of a human skull with the logo 'Bone Collector,'" according to the court documents.

The men put a hose through one of the holes to clean the girl and wash out the human waste inside, prosecutors alleged. Inside the box investigators found human hair and a poem the girl had written about being held inside the box.

A "rack" allegedly used for bondage and sex toys were also found on the property. Authorities alleged in court papers that Balletto called the girl a "trooper" because she didn't scream when she was in the box.

Authorities said the investigation is ongoing. U.S. Atty. Northern District spokesman Joshua Eaton said there could be more victims.
Many unanswered questions remain, including the exact connection between the girl and the suspects. It's unclear how much time she spent at the Lake County property or why she called police when she did.

Balletto and Pearmain pleaded not guilty last week to charges of federal conspiracy to distribute marijuana, using a minor in a drug operation and possession of a firearm to further drug trafficking.

Balletto was booked into Lake County jail on suspicion of cultivating and possessing marijuana, lewd or lascivious acts on a 15-year-old child and being a felon with a firearm. Pearmain was booked on suspicion of cultivating and possessing marijuana, conspiracy to commit a crime, kidnapping and committing a rape and unlawful sex with a minor.

Lake County Dist. Atty. Don Anderson said Friday that his office initially filed its own criminal charges against Balletto and Pearmain. But after consulting with the U.S. attorney's office, he dropped those charges until the federal case moved forward.

"We're going to hold back and let our victim recuperate and feel better about herself, and then look more into the sex crimes," he said.
Both men were being held without bail. They are due in San Francisco federal court Wednesday.

For authorities, what started as a fairly standard marijuana-growing case became something much more bizarre. "The marijuana is really in the back seat," Prince said. "The welfare of the child … has everyone very concerned."

Grunts, Professor McManus Missouri University of Science and Technology

My neighbor died. Vietnam Veteran, Marine.

Disabled, shot, scars, Agent Orange damage...

I last saw him at the beach.

Like he would say "still alive."

I should have been a grunt.

I am very well suited for it.

I almost dropped out of Air Force ROTC to join the Marines Platoon Leader program but I was almost done so went ahead and finished it.

John McManus: In praise of ‘grunts’

John McManus's new book.jpg

John McManus, Missouri S&T historian.

Today’s military relies on a lot of technology to fight battles.

But troops – not technology – win the wars.

So says Missouri S&T historian John C. McManus in his new book about America’s ground forces,

Grunts: Inside the American Infantry Combat Experience, World War II Through Iraq.

The foot soldier has been the most indispensable – and most overlooked – factor in wartime victory,

says McManus, an associate professor of U.S. military history.

“The true difference makers in wars will be the soldiers on the ground,”

McManus says. “Now, they need a lot of support, and the technology makes a difference.

But in the end, who tips the balance? The guy on the ground.”

Grunts examines 10 pivotal battles over the past six decades –

from the 1944 fight on the island of Guam to counterinsurgency combat in Iraq –

and concludes that the skills and courage of American troops were the deciding factor in each.

Policymakers “tend to shrink from the realities of war,” says McManus.

“It’s brutal, it’s vulgar, it’s violent, it’s wasteful, and it tends to be fought on the ground.”

Despite the increasing reliance on technology in modern military action –

from aerial drones to global positioning systems –

ground troops continue to play an important role, McManus says.

“It’s only natural that Americans would look toward our strengths, and technology is a strength.

But at exactly the time the ground soldiers were supposed to become obsolete, the exact opposite has happened.

“Based on what’s happened in very recent history, I don’t believe this will change,” McManus adds.

“I believe we need to shape our national policy” to emphasize the importance of infantry.

For instance, McManus suggests that the Marine Corps and Army receive a larger share of the defense budget.

“Infantry units always seem to be under strength, overwrought and overworked,” McManus says.

“They do most of the fighting and dying, and yet they get the minority of appropriation in the budget. I just don’t see how that can be.”

Grunts is the result of nearly a decade of archival research, battlefield visits, personal interviews with veterans and intensive study.

“I had enough materials for 10 books instead of 10 chapters,” McManus says. The new book is McManus’ ninth.

Friday, July 26, 2013

pesticides, dangerous list, safe

I usually live in pesticide-free zones with clean air and water. But food has pesticides. Big city people often eat healthier than people living in polluted farm regions. San Francisco for example has vegetable and fruit stands all over. I used them all the time since I left the military such as in Boston. Never bought potato chips, crackers,... Bread, pasta rarely. I only recently discovered canned foods. not good but maybe ok in emergencies. Can never trust restaurants.

http://en.wikipedia.org/wiki/Pesticide_residue#.22Dirty_dozen.22_and_.22clean_fifteen.22 choosing to buy certain organic food can significantly lower residue exposure by as much as about 90%. The group came up with a list of fruits and vegetable that are recommended to avoid as they are known to contain high levels of pesticide residues. These foods, referred to as the "Dirty Dozen" readily absorb pesticides and retain them, so even if washed, they will still have noticeable levels of residues. The ability of a fruit or vegetable to retain or repel pesticides is dependent on its outer shell or protective layer. Fruits such as strawberries are more likely to absorb and retain pesticides than pineapples are.^ ^

Dirty Dozen

* celery
* peaches
* strawberries
* apples
* domestic blueberries
* nectarines
* sweet bell peppers
* spinach, kale and collard greens
* cherries
* potatoes
* imported grapes
* lettuce

Clean Fifteen

* onions
* avocados
* sweet corn
* pineapples
* mango
* sweet peas
* asparagus
* kiwi fruit
* cabbage
* eggplant
* cantaloupe
* watermelon
* grapefruit
* sweet potatoes
* sweet onions
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The Scandal of Computer Security. Trusted Platform Module. Are you really you?

If implemented this and similar systems can greatly enhance security (Required for Microsoft Windows 8.1 certification but is NOT on Apple Computers)

http://en.wikipedia.org/wiki/Trusted_Platform_Module

Combined with biometrics such as the retina scans on Illinois driver licenses that stops illegals

http://www.govtech.com/public-safety/Biometrics-Stems-Drivers-License-Fraud.html
When an Illinois driver gets his or her photo taken at a Department of Motor Vehicles, the picture is sent to an enormous database and compared to other photos to find potential identity fraud. The Illinois DMV biometric-based facial recognition technology is part of a growing trend that has spread to approximately 20 states. Biometrics is the study of methods for recognizing individuals based on one or more physical or behavioral traits. The Illinois program has been a huge success, finding more than 5000 cases of identity fraud. Of the cases, 4600 involved people with one fraudulent identification, and 600 cases involved people with two or more fraudulent identifications.

The Scandal of Computer Security

http://insights.wired.com/profiles/blogs/the-scandal-of-computer-security?xg_source=msg_appr_blogpost#axzz2a493pyPZ

The U.S. has become a digital civilization. Our industry, defense, medical care, entertainment, and communications all largely rely on information technology. In recent months, it has become increasingly evident that this digital civilization is under attack and that its protective strategies are failing.

Everywhere in the news are accounts of computer security hacks. Targets range from the New York Times, which was hit with 45 pieces of undetected malware in three months, to the Financial Times’ corrupted email system.

Even more troubling are the attacks on American intellectual property. According to the Pentagon, Chinese and Russian hackers have gained access to the very industrial base on which U.S. diplomacy and defense rests. the loss of American intellectual property in cyber-attacks "the greatest transfer of wealth in history."

All this is happening while the nation spends close to $50 billion on "computer security" as computer users fumble daily for passwords, usernames, PINs, and reset buttons. The DoD alone commands 65,000 IT professionals with a budget of $12.5 billion, most of which is spent on ineffective post-hack software security systems.

security giants themselves fall victim to attacks. For example, Symantec, whose software identified just one of the 45 New York Times attacks, suffered a raid on its own Norton Utility source code assets. And its major rival McAfee inadvertently launched a devastating attack of its own, depriving millions of its customers of network access.

This pattern of ever-increasing expenditures with ever-deteriorating results bespeaks a failed technological paradigm and calls for a new approach to the problem. Fortunately such a new approach is readily available.

Rain Rolla Missouri University of Science & Technolgy

Rain all day today. Missouri is green and beautiful. I used the mostly sunny day yesterday to drive to Rolla,the Missouri University of Science and Technology. Might be a good place to live. A small, quaint, all-white university town on I-44 freeway 2 hours from downtown Saint Louis. The university has higher admissions ACT scores than all of the University of Californias except for Berkeleythat is a half point higher. Most of the students I saw walking around were from India or China. No-nonsense businesslike atmosphere. Mostly an engineering collegewith some supporting graduate programs. Library has a small but excellent collection of Finance and Economics books.

Korean War: The local College of the Ozarks sent students to Washington DC for Armistice day. They have a large memorial in a dignified room in the Student Faculty Community center2 photos attached.

http://collegeresults.org/search1ba.aspx?institutionid=178615,110680,110635,110662,445188,110671,110644,110705,178411 University of California-Berkeley
Missouri University of Science and Technology
Truman State University
University of California-Los Angeles
University of California-San Diego
University of California-Santa Barbara
University of California-Davis
University of California-Santa Cruz
University of California-Riverside
University of California-Merced

ACT Scores:
29.0
28.0
27.5
27.5
27.0
26.0
26.0
25.0
22.0
21.0

College of the Ozarks has recently been recognized by the Department of Defense 60th Anniversary of the Korean War (KW60) Commemoration Committee as a local KW60 Ambassador. The program, initiated in 2010, seeks to honor the service and sacrifice of Korean War Veterans, commemorate key events of the war and educate Americans about the Korean War’s significance. The Korean War is often referred to as “The Forgotten War.” As a KW60 Ambassador, College of the Ozarks hopes to propel Korean War Veterans and their contributions to greater public awareness. It will focus on establishing a local voice of sincere appreciation for the selfless service and sacrifices that Korean War veterans made on behalf of all Americans. “The College is humbled to play an active role in ensuring our Korean Veterans know that they are appreciated,” said C of O Executive Vice President Fred Mullinax. “We plan to accomplish this several ways in the coming months and already have an exhibit paying tribute to the Korean War and its Veterans for public viewing on display at The Keeter Center.” The College also plans to participate in the Korean War Armistice Day 2013 in Washington, D.C., and send C of O students and Korean War Veterans on Patriotic Education Travel to Korea in October. As part of the program, the College plans to thank and honor as many of our nation’s treasured Veterans as possible in a heartfelt, meaningful way. If you are a Korean War Veteran or know of a Korean War Veteran who may be interested in being recognized with an official Certificate of Appreciation signed by the Secretary of Defense, please contact the College of the Ozarks Public Relations office at (417) 690-2212. For more information on the official Korean War 60th Anniversary, please visit www.koreanwar60.com.
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comparecolleges (6).pdf

Fed Head: Woman or man? Yellin or Summers? Boost bank profits from gold, oil price increases or decreases.

Should Obama bow to feminists and nominate Janet Yellin (one of the 3 California girls from Berkeley) who is the most pro-inflation leaning governor and can trickle down inflate the lower classes to help Hilary Clinton win the presidency?

Or should he nominate Larry Summers who can try to keep inflation bottled up in the big banks for the rich 1%? Summers is protege of Robert Rubin, Greenspan, and a good source of advice for Obama and can keep the recovery going without too much inflation for the masses, just the bankers.

Banks have huge piles of gold, aluminum, oil and other commodities. They can sell short contracts on those commodities that will not pay off so will boost bank profits if commodity prices rise or stay about the same. Short contracts are also useful for banks if the price falls because the banks can deliver the physical commodity. So the short contract buyer will be stuck with a falling knife as the the price falls even if they do collect a little insurance money.

After a price collapse the banks will come in and scoop up the gold at low prices. Then banks will profit as prices recover. Banks will also profit by selling short contracts as prices rise because speculators will be afraid that the recent price collapse history will repeat itself.

Price oscillations benefit the cool logical rich 1% who can calculate and wait while the 99% poor trade based on emotion more than analysis. Eventually cycles reverse course. What goes up must go down. What goes down must go up. By careful spreadsheet calculations the bankers know where in the cycle prices are at any point in time. (Adjusting for all the extraneous factors which they in part control and know.) So they know when to be short or long or when to hold physical or the various forms of paper.

Thus the rich get richer and the poor get poorer. Control of the Fed and politicians is a major way the rich get richer. Other ways are detailed in the book below "Free Lunch"

http://nyti.ms/16ga09z

NYTimes: In Tug of War Over New Fed Leader, Some Gender Undertones

The choice of who will succeed Ben S. Bernanke to lead the Federal Reserve is roiling Washington as it revives questions about the dearth of women in its top economic policy positions.

Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and Stick You with the Bill)
Free Lunch answers the great mystery of our time: How did our strong and growing economy give way to job uncertainty, debt, bankruptcy, and fear for millions of Americans? Acclaimed reporter David Cay Johnston reveals how government policies and spending have reached deep into the wallets of the many to benefit the top 1% of the wealthiest.

He shows exactly who has been getting free lunches from the government—from $100 million to Warren Buffett, to $1.3 billion to the owners of the Yankees and Mets. But of course there’s really no such thing as a free lunch. The taxpayer always picks up the bill. With his in depth reporting, vivid stories, and sharp analysis, Johnston reveals the forces that shape our everyday economic lives—and shows us how we can finally make things better.

Editorial Reviews

The U.S. government is serving out a free lunch, but, alas, it's a feeding frenzy for those already fat on cash cows. As big businesses continue to reap the benefits of government subsidies--many unnecessary and unjustifiable--Americans are throwing away billions of tax dollars every year to make these companies richer.

Through a variety of anecdotal but quite expansive evidence and legitimate research, Johnston reveals that the true dividing line in Washington is between the corporatists and "peopleists," that is representatives who bend over backwards for businesses and those who want to protect citizens.

As a narrator, Johnston's passion is evident just as much as his annoyance and frustration with the current state of affairs.

often his discussion of numbers (particularly when discussing shifting percentages of different levels of class income over the past 40 years) can easily confuse the reader.

“A journalistic missile launched against the myth that those who mooch off the government are mostly on the lower rungs… This is a provocative, highly readable and well-documented work.” —South Florida Sun-Sentinel

“As an investigative reporter, Johnston is a big-game hunter. He skewers popular plutocrats like Buffett, digs up the dirt on unsavory sources of Paris Hilton’s fortune and details Apple executive Steve Jobs’s backdated stock options thievery.” —The Nation

“If you’re concerned about congressional earmarks, hedge fund tax breaks, subsidies to sports teams, K Street lobbyists, the state of our health-care system, to say nothing of the cavernous gap between rich and poor, you’ll read this fine book—as I did—with a growing sense of outrage.” —John C. Bogle, founder and former chairman, The Vanguard Group

“Johnston is an indefatigable reporter whose work recalls the muckraking epics of the Progressive era.” —Portland Oregonian

“An engaging look at how the superrich consistently— and outrageously—rely on public handouts while preaching about free markets and wasteful entitlement programs all the way to the bank.” —Mother Jones

About the Author

David Cay Johnston, a Pulitzer Prize- winning investigative reporter, recently retired from The New York Times. Over his forty-year career he has won many honors, including a George Polk Award, and has uncovered so many tax dodges that he was called the “de facto chief tax enforcement officer of the United States.” His two most recent books—Free Lunch and Perfectly Legal—were both New York Times bestsellers.

From AudioFile

Here's a shocking novel with an amazing plot. Donald Trump, Ken Lay, and George Steinbrenner all conspire to siphon billions of dollars from the American middle class. Wait--it's not a novel! It's all true! Hang on to your wallets as NEW YORK TIMES reporter David Cay Johnston documents the various "corporate welfare" ploys used by sports franchises, retailers, megacorps, and anybody else who knows how to parlay a bad balance sheet into political patronage. The rich don't just get richer--they get way richer. Johnston narrates his own work with a newscaster's tone and perspective. His direct tone keeps listeners engaged throughout. R.W.S.

Tuesday, July 23, 2013

less exercise, more sauerkraut and Müesli Müsli

Thunderstorm right now. Thunderstorm this morning. Big Thunderstorm yesterday so I went to weight room yesterday for over 2 hours after a 20 day break and got a thorough workout. Very sore today. Actually we get a fair amount of sun most days even with all the storms blowing through. But not enough sun to get very hot. Nights are cool. I don't like to go to weight room indoors when it is sunny and beautiful at the beach.

I have greatly reduced exercise to allow better recovery. Most people get far too little exercise. But I am pretty sure I often get too much exercise. Should be recovered without soreness before working the same muscles. Working sore muscles may tear down muscles faster than building them up. Also I am trying to let soles of feet repair blisters and bruises. When feet hurt too much cannot exercise the muscles properly. Flatland Californians do not appreciate the problems of walking and driving on rugged terrain with lots of "weather."

All foods have good and bad aspects. I continue to eat some starchy carbohydrates as a portfolio diversification strategy. Carbo foods will contain some nutrients that are not in high-fat and high-protein foods. I notice my waistline immediately start to grow. Carbos stimulate fat storage. Fat is an active tissue that regulates energy delivery to the blood, especially brown fat that I probably have a lot of. Brown fat is great for skipping meals and long distance endurance events that I engage in almost daily. Well tuned fat keeps energy flowing regardless of how long since last meal and how much exercise is performed. Some fat may be a good thing. Active fat is a good thing. Not the huge slabs of nearly dead fat that obese accumulate.

Particularly I rediscover raw oats (last used when I was 15 on my first diet). Swiss and Germans have been eating raw oat health foods for over 100 years http://en.wikipedia.org/wiki/Muesli
despitehttp://thewellnessproject.net.au/2012/11/14/why-you-should-never-eat-raw-oats/

More info below on oats that are reputed to be very healthy. Cooked oats has been my staple all my life. 95% of oats is fed to horses. I also get plenty of non-starchy vegetables that also contain carbohydrates

I recently made 2 quarts of sauerkraut in less than 5 minutes. Just crush in big jar (with the right tool). then wait 10 days until it gets ripe. It costs $12 at the Korean store but I make it for $1! Maybe I should go into business. Tastes wonderful. Am developing my own recipe . I like garlic, onion, red pepper from New Mexico. Sometimes I use juicer, like to add celery juice (you need a lot of liquid so the entire vegetables are submerged).

http://www.proteinpower.com/drmike/low-carb-library/why-we-get-fat/ We now know why we get fat. Excess insulin drives fat into the fat cells increasing the fat cell mass, ultimately leading to the state we call obesity. If we keep walking this progression back, the next question has to be, Why do we make too much insulin? We make too much insulin because we eat too many carbohydrates, especially sugar and other refined carbohydrates. With that statement, we’re starting to edge into controversial territory, but it’s only territory populated by the ignorant. The hard science is emphatic that carbs are a pure insulin play. Eat them and your insulin goes up. Some people with a little learning may be quick to point out that protein drives insulin up as well. This is true, but with a catch. Protein drives both insulin and glucagon up, so you don’t have the pure insulin effect. Only carbs will give you that. With carbs, insulin goes up while glucagon goes down. With meat and other proteins, the effects of the elevated insulin are muted by the concomitant rise in glucagon. (Glucagon isn’t called insulin’s counter-regulatory hormone for nothing.)
In obese people, insulin is almost always elevated – even when they haven’t just finished a meal. These chronically elevated insulin levels trap the fat in the fat cells, and, in fact, turn the fat pathway into the fat cell into a one-way street. Fat can get in, but it can’t get out. If the fat does get out, the excess insulin tells the mitochondria not to burn it anyway, so it just gets sent back to the fat cells.

http://www.ncbi.nlm.nih.gov/pubmed/21371020 The ketogenic diet inhibits the mammalian target of rapamycin (mTOR) pathway. Department of Neurology and the Hope Center for Neurological Disorders, Washington University School of Medicine, St Louis, Missouri

http://www.ncbi.nlm.nih.gov/pubmed/19887594
Am J Physiol Endocrinol Metabolism
Calorie restriction increases fatty acid synthesis and whole body fat oxidation rates. Dept. of Nutritional Sciences and Toxicology, Univ. of California at Berkeley,
Calorie restriction increases longevity and retards the development of many chronic diseases

http://en.wikipedia.org/wiki/Rolled_oats
Whole oats are an excellent source of thiamine, iron, and dietary fiber. Whole oats are also the only source of antioxidant compounds known as avenanthramides; these are believed to have properties which help to protect the circulatory system from arteriosclerosis. Oat products also contain beta-glucan, which may help people with Type 2 diabetes control their blood glucose level, and help stimulate the immune system to fight off bacterial infections.

http://en.wikipedia.org/wiki/Avenanthramide
Antioxidant: experiments indicate they have significant antioxidant activities. In human and animal tests, this antioxidant capacity provides health benefits ranging from reduced rate of LDL oxidation to protecting against cancers and heart disease. Because of its antioxidant properties, high levels of avenanthramide are desirable in oat grain. They are tranilast analogues and have anti-inflammatory and antifibrotic properties, probably due to TGF-beta inhibitory effects.

Anti-inflammatory and anti-itch properties: Ancient literature describes the anti-inflammatory and antipruritic properties of oatmeal. In 1978 the U.S. Food and Drug Administration (FDA) external review panel noted that colloidal oatmeal was safe and effective for the symptomatic relief of dry skin and itching.
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Extermination by Cancer. SHTF glyphosate, ecosystem collapse

DDT is better he says. Glyphosate causes cancer, school shootings,... can get a lot worse and kill billions of people. Glyphosate (roundup) kills weeds by giving them AIDS so they are killed off by disease. It also damages your gut flora so will ruin your brain and give you many diseases especially cancer. It also greatly changes the soil ecosystem that is the basis for farming and all life. Used much more in the past 10 years so effects still not apparent.

Colonel Huber, a Purdue U professor very good interview at down the page at
http://articles.mercola.com/sites/articles/archive/2012/09/22/superbugs-destruct-food-supply.aspx#_edn6

or

http://www.greenpasture.org/fermented-cod-liver-oil-butter-oil-vitamin-d-vitamin-a/dr-huber-and-the-impact-of-glyphosate-in-the-food-chain/

Huber is emeritus soil scientist of Purdue University, and a retired U.S. Army Colonel who served as an intelligence analyst, for 41 years, active and reserves. In Nebraska, he stood ramrod straight for three hours with no notes and spoke with an astonishing depth and range of knowledge on crucial, controversial matters of soil science, genetic engineering, and the profound impact of the widely used herbicide glyphosate upon soil and plants, and ultimately upon the health of animals and human beings.

Dressed in a conservative dark suit and tie, Huber set the stage for his presentation by observing that he has been married for 52 years, and has 11 children, 36 grandchildren, and a great-grandchild on the way. He then began his formal talk with a Biblical quote: “All flesh is grass.” – Isaiah 4:6. With this he emphasized the foundational reality that the biotech grains we eat, as well as the biotech grains eaten by cows, hogs, and chickens, are grown in vast herbicide-treated fields.

For the domineering giants of industrial agriculture — multinational corporations, universities, and governments — Huber’s assertions about the impact of glyphosate, and the mounting scientific questions about GMO crops, may be as significant and disrupting as Martin Luther’s “heretical” act in 1517. That’s when Luther nailed his 95 theses to the door of the Castle Church in Wittenberg, Germany to challenge the systemic problems in the almighty institutions of his era. Luther disputed the claim that spiritual forgiveness from sins could be legitimately sold for money. Huber and other researchers say they are accumulating evidence that — along with the 2010 report of the U.S. President’s Cancer panel which bluntly blames chemicals for the staggering prevalence of cancers — raises profoundly challenging questions about the chemical and genetic-engineering practices of industrial agriculture. The challenge, if it holds up, has implications not just for agricultural institutions, but also for the primary food chain serving the Earth’s population.

Sunday, July 21, 2013

Government subsidized mortgages, Government sponsored enterprises

Glenn,

The goal of these welfare programs is to help poor people buy houses, import illegal immigrants to build those houses, saddle those poor buyers with big mortgages that take 30 years to pay off, saddle the taxpayer with the costs of these welfare programs including bailouts if anything goes wrong. Taxpayers have paid $180,000,000,000 for this already and will pay more in the future.

I don't think we want to have a lot of this if we want an upscale resort and high property values, even if it is legal for owners to take out such a mortgage. Maybe we can change the bylaws to prohibit any FNMA GNMA mortgages on any of our units. We also may want to get prospective buyers credit score. And prospective renters credit score. Low scores may result in a foreclosure down the line and lowered property values. Rich people can pay more and are less likely to default and can often pay cash without any mortgage at all.

At any rate, the NYT article below says politicians are trying to get rid of FNMA and GNMA

Joe

http://www.huduser.org/Publications/pdf/gsegoals.pdf

Fannie Mae and Freddie Mac, the two large government sponsored enterprises (GSEs) that provide a secondary market for conventional home mortgages, have been subject to quantitative goals for the portion of their business that represents mortgages on housing for lower income families and families in underserved areas. ... this study finds evidence that the goals have helped to make homeownership more attainable for low- and moderate-income families. In addition, the study finds that the GSEs have helped to increase overall lending volumes to lower income families through their purchases of seasoned loans, an effect that the authors attribute to the goals. Finally, the authors find suggestive evidence that homeownership rates have increased faster for low- and moderate-income ... examination procedures create strong incentives for lenders to originate as many loans as possible to low- and moderate-income borrowers and in low- and moderate-income neighborhoods

‘implicit’ Federal guarantee arising from their Federal charters, results in a significant cost advantage over other private institutions.

http://www.bloomberg.com/news/2013-06-24/senators-to-introduce-bill-to-end-fannie-mae-freddie-mac.html

A bill to be offered by Senators Bob Corker and Mark Warner reflects a prevailing view among lawmakers that the two government-sponsored enterprises should cease to exist

http://www.nytimes.com/2013/06/27/opinion/nocera-the-end-of-fannie-and-freddie.html

introduced a complicated bill that is intended to solve, once and for all, the problem known as Fannie Mae and Freddie Mac. It has now been nearly five years since Fannie and Freddie were put into conservatorship by the Treasury Department. this can’t last forever. Conservatorship was supposed to be temporary. Although Fannie and Freddie are now making a gaggle of money, that money is not reducing the government’s $180 billion bailout of the two companies.

Meanwhile, many Republicans have been screaming that the financing of housing should be left to the private market and that Fannie and Freddie must be put out of business. (They believe, wrongly, that Fannie and Freddie caused the financial crisis.) And the Obama White House — shocker! — has punted.

Thus we have Corker-Warner. (The bill has six other co-sponsors, three from each party.) The first thing to note about it is that, by god, it actually would eliminate Fannie and Freddie; the two companies are supposed to be wound down within five years.

cancer, diet, exercise, Re: Is Sugar Really Toxic?

Ron,

Very interesting statistics on what people actually eat and who gets the half trillion dollars spent on food: http://www.usda.gov/factbook/chapter2.pdf

I agree. Sugar fuels cancer (and many other diseases).

Another issue that Taubes covers that Jabr does not is that sugar increases appetite through several mechanisms. I can feel it daily when I run out of glucose and my body converts more into fat burning mode. People who eat more sugars often "sugar crash" a few hours after a carbo-laden meal and have to have a sugar "fix" to get their blood sugar back up. Sugar crash is painful, and they get ravenous. Worse, after they eat more sugars or carbos the body is attacked by carbos and insulin spikes so that the body shovels food into the fat storage instead of burning the food. So they are still experiencing a deep hunger and they feel weak (low energy of the obese). Taubes covers this better over chapters than I can say it in a sentence. I thought he was crazy when I first heard him on PBS 2 years ago. I kept listening and remembered my own experiences. He was right.

The composition of the diet determines how hungry people feel and how much they eat. Bittman: " all calories are not created equal. By definition, all calories give off the same amount of energy when burned, but your body treats sugar calories differently, and that difference is damaging." Chart below shows how Americans higher carbo eating last 4 decades caused the diabetes obesity cancer epidemics.

Jabr's last paragraph punch line is right in that total calories and exercise are important. People can eat healthy but still get fat if they eat too much and do not exercise.

http://www.cdc.gov/mmwr/preview/mmwrhtml/mm5304a3.htm

Ron wrote:
> Bob,
>
> Not discussed are the effects of glucose on cancer cells. Glucose > which appears to wear the white hat in Taube's scenario is readily > absorbed by all cells to produce energy as the article mentions. Not > mentioned is that glucose more readily heads to cancerous cells in the > body where it is absorbed for energy for cancerous division and > metastasis of the cancer. A PET scan is used to detect cancer cells in > the body. The patient typically is injected with a radioactive glucose > solution. After a 90 minute wait the PET scan is used to detect any > cancer by tracing any absorbing of radiation by cancer cells if they > are present. One online doctor (name escapes me. Could have been > Russell Blaylock) a couple of years back referred to sugar as > "fertilizer for cancer cells." >
> Ron
> *Is Sugar Really Toxic? Sifting through the Evidence * >
> *Scientific American ^ > > *| July 15, 2013 | Ferris Jabr
> Our very first experience of exceptional sweetness—a dollop of > buttercream frosting on a parent’s finger; a spoonful of strawberry > ice cream instead of the usual puréed carrots—is a gustatory > revelation that generally slips into the lacuna of early childhood. > Sometimes, however, the moment of original sweetness > is preserved. A > YouTube video from > February 2011 begins with baby Olivia staring at the camera, her face > fixed in rapture and a trickle of vanilla ice cream on her cheek. When > her brother Daniel brings the ice cream cone near her once more, she > flaps her arms and arches her whole body to reach it.

> Considering that our cells depend on sugar for energy, it makes sense > that we evolved an innate love for sweetness. How much sugar we > consume, however—as well as how it enters the body and where we get it > from in the first place—has changed dramatically over time. Before > agriculture, our ancestors presumably did not have much control over > the sugars in their diet, which must have come from whatever plants > and animals were available in a given place and season. Around 6,000 > BC, people in New Guinea began to grow sugarcane > , > chewing and sucking on the stalks to drink the sweet juice within. > Sugarcane cultivation spread to India, where by 500 BC people had > learned to turn bowls of the tropical grass’s juice into crude > crystals > . > From there sugar traveled with migrants and monks to China, Persia, > northern Africa and eventually to Europe in the 11th century.

> For more than 400 years, sugar remained a luxury in Europe—an exotic > spice—until manufacturing became efficient enough to make “white gold” > much more affordable. Christopher Columbus brought sugarcane to the > New World in 1493 and in the 16th and 17th centuries European powers > established sugarcane plantations > > in the West Indies and South America. Sugar consumption in England > increased by 1,500 percent > > between the 18th and 19th centuries. By the mid 19th century, > Europeans and Americans had come to regard refined sugar as a > necessity. Today, we add sugar in one form or another to the majority > of processed foods > (PDF) > we eat—everything from bread, cereals, crunchy snacks and desserts to > soft drinks, juices, salad dressings and sauces—and we are not too > stingy about using it to sweeten many raw and whole foods as well.

> By consuming so much sugar we are not just demonstrating weak > willpower and indulging our sweet tooth—we are in fact poisoning > ourselves according to a group of doctors, nutritionists and > biologists, one of the most prominent members of which is Robert > Lustig of the University of > California, San Francisco, famous for his viral YouTube video “Sugar: > The Bitter Truth .” A few > journalists, such as Gary Taubes and Mark Bittman > , have > reached similar conclusions > . > Sugar, they argue, poses far greater dangers than cavities and love > handles; it is a toxin that harms our organs and disrupts the body’s > usual hormonal cycles. Excessive consumption of sugar, they say, is > one of the primary causes of the obesity epidemic and metabolic > disorders like diabetes, as well as a culprit of cardiovascular > disease. More than one-third of American adults and approximately 12.5 > million children and adolescents in the U.S. are obese > . In 1980, 5.6 million > Americans were diagnosed with diabetes; in 2011 more than 20 million > Americans had the illness. >
> >
> The argument that sugar is a toxin depends on some technical details > about the different ways the human body gets energy from different > types of sugar. Today, Americans eat most of their sugar in two main > forms: table sugar and high-fructose corn syrup. A molecule of table > sugar, or sucrose, is a bond between one glucose molecule and one > fructose molecule—two simple sugars with the same chemical formula, > but slightly different atomic structures. In the 1960s, new technology > allowed the U.S. corn industry to cheaply convert corn-derived glucose > intro fructose and produce high fructose corn syrup, which—despite its > name—is almost equal parts free-floating fructose and glucose: 55 > percent fructose, 42 percent glucose and three percent other sugars. > Because fructose is about twice as sweet as glucose, an inexpensive > syrup mixing the two was an appealing alternative to sucrose from > sugarcane and beets.
> Regardless of where the sugar we eat comes from, our cells are > interested in dealing with fructose and glucose, not the bulkier > sucrose. Enzymes in the intestine split sucrose into fructose and > glucose within seconds, so as far as the human body is concerned > sucrose and high-fructose corn syrup are equivalent. The same is not > true for their constituent molecules. Glucose travels through the > bloodstream to all of our tissues, because every cell readily converts > glucose into energy. In contrast, liver cells are one of the few types > of cells that can convert fructose to energy, which puts the onus of > metabolizing fructose almost entirely on one organ. The liver > accomplishes this primarily by turning fructose into glucose and > lactate. Eating exceptionally large amounts of fructose taxes the > liver: it spends so much energy turning fructose into other molecules > that it may not have much energy left for all its other functions. A > consequence of this energy depletion is production of uric acid > , which research has > linked to gout, kidney stones and high blood pressure.

> The human body strictly regulates the amount of glucose in the blood. > Glucose stimulates the pancreas to secrete the hormone insulin, which > helps remove excess glucose from blood, and bolsters production > of the hormone leptin > , which > suppresses hunger. Fructose does not trigger insulin production and > appears to raise levels of the hormone grehlin, which keeps us hungry. > Some researchers have suggested that large amounts of fructose > encourage people to eat more than they need. In studies > with animals and people by > Kimber Stanhope of > the University of California Davis and other researchers, excess > fructose consumption has increased fat production > , especially in the liver > , and raised levels of > circulating triglycerides, which are a risk factor for clogged > arteries and cardiovascular disease. Some research has linked a fatty > liver to insulin resistance > —a condition in > which cells become far less responsive to insulin than usual, > exhausting the pancreas until it loses the ability to properly > regulate blood glucose levels. Richard Johnson > > of the University of Colorado Denver has proposed that uric acid > produced by fructose metabolism also promotes insulin resistance > . In turn insulin > resistance is thought to be a major contributor to obesity and Type 2 > diabetes; the three disorders often occur together.
> Because fructose metabolism seems to kick off a chain reaction of > potentially harmful chemical changes inside the body, Lustig, Taubes > and others have singled out fructose as the rotten apple of the sugar > family. When they talk about sugar as a toxin, they mean fructose > specifically. In the last few years, however, prominent biochemists > and nutrition experts have challenged the idea that fructose is a > threat to our health and have argued that replacing fructose with > glucose or other sugars would solve nothing. First, as fructose expert > John White > points out , fructose > consumption has been declining for more than a decade, but rates of > obesity continued to rise during the same period. Of course, > coinciding trends alone do not definitively demonstrate anything. A > more compelling criticism is that concern about fructose is based > primarily on studies in which rodents and people consumed huge amounts > of the molecule—up to 300 grams > of > fructose each day, which is nearly equivalent to the total sugar in > eight cans of Coke—or a diet in which the vast majority of sugars were > pure fructose. The reality is that most people consume far less > fructose than used in such studies and rarely eat fructose without > glucose. >
> >
> On average, people in America and Europe eat between 100 and 150 grams > of sugar each day, about half of which is fructose. It’s difficult to > find a regional diet or individual food that contains only glucose or > only fructose. Virtually all plants have glucose, fructose and > sucrose—not just one or another of these sugars. Although some fruits, > such as apples and pears, have three times as much fructose as > glucose, most of the fruits and veggies we eat are more balanced. > Pineapples, blueberries, peaches, carrots, corn and cabbage, for > example, all have about a 1:1 ratio of the two sugars. In his /New > York Times Magazine/ article > , > Taubes claims that “fructose…is what distinguishes sugar from other > carbohydrate-rich foods like bread or potatoes that break down upon > digestion to glucose alone.” This is not really true. Although > potatoes and white bread are full of starch—long chains of glucose > molecules—they also have fructose and sucrose. Similarly, Lustig has > claimed that the Japanese diet promotes weight loss because it is > fructose-free, but the Japanese consume plenty of sugar—about 83 grams > a day > > on average—including fructose in fruit, sweetened beverages and the > country’s many meticulously crafted confectioneries. High-fructose > corn syrup was developed and patented > in part by Japanese > researcher Yoshiyuki Takasaki in the 1960s and ’70s.

> Not only do many worrying fructose studies use unrealistic doses of > the sugar unaccompanied by glucose, it also turns out that the rodents > researchers have studied metabolize fructose in a very different way > than people do—far more different than originally anticipated. Studies > that have traced fructose’s fantastic voyage > through the > human body suggest that the liver converts as much as 50 percent of > fructose into glucose, around 30 percent of fructose into lactate and > less than one percent into fats. In contrast, mice and rats turn more > than 50 percent of fructose into fats, so experiments with these > animals would exaggerate the significance of fructose’s proposed > detriments for humans, especially clogged arteries, fatty livers and > insulin resistance.
> In a series of meta-analyses examining dozens of human studies, John > Sievenpiper > > of St. Michael’s Hospital in Toronto and his colleagues found no > harmful effects of typical fructose consumption on body weight > , blood pressure > or uric > acid production . In a > 2011 study, Sam Sun —a > nutrition scientist at Archer Daniels Midland, a major food processing > corporation—and his colleagues analyzed data about sugar consumption > collected from more than 25,000 Americans between 1999 and 2006. Their > analysis confirmed that > people almost never eat fructose by itself and that for more than 97 > percent of people fructose contributes less daily energy than other > sugars. They did not find any positive associations between fructose > consumption and levels of trigylcerides, cholesterol or uric acid, nor > any significant link to waist circumference or body mass index (BMI). > And in a recent /BMC Biology/ Q&A > , renowned sugar expert > Luc Tappy > > of the University of Lausanne writes: “Given the substantial > consumption of fructose in our diet, mainly from sweetened beverages, > sweet snacks, and cereal products with added sugar, and the fact that > fructose is an entirely dispensable nutrient, it appears sound to > limit consumption of sugar as part of any weight loss program and in > individuals at high risk of developing metabolic diseases. There is no > evidence, however, that fructose is the sole, or even the main factor > in the development of these diseases, nor that it is deleterious to > everybody.”
> To properly understand fructose metabolism, we must also consider in > what form we consume the sugar, as explained in a recent paper > by David > Ludwig > , > Director of the New Balance Foundation Obesity Prevention Center of > Boston Children’s Hospital and a professor at Harvard. Drinking a soda > or binging on ice cream floods our intestines and liver with large > amounts of loose fructose. In contrast, the fructose in an apple does > not reach the liver all at once. All the fiber in the fruit—such as > cellulose that only our gut bacteria can break down—considerably slows > digestion. Our enzymes must first tear apart the apple’s cells to > reach the sugars sequestered within. “It’s not just about the fiber in > food, but also its very structure,” Ludwig says. “You could add > Metamucil to Coca Cola and not get any benefit.” In a small but > intriguing study > (PDF), > 17 adults in South Africa ate primarily fruit—about 20 servings with > approximately 200 grams of total fructose each day—for 24 weeks and > did not gain weight, develop high blood pressure or imbalance their > insulin and lipid levels.
> To strengthen his argument, Ludwig turns to the glycemic index, a > measure of how quickly food raises levels of glucose in the blood. > Pure glucose and starchy foods such as Taubes’s example of the potato > have a high glycemix index; fructose has a very low one. If fructose > is uniquely responsible for obesity and diabetes and glucose is > benign, then high glycemic index diets should not be associated with > metabolic disorders—yet they are > . A small percentage of > the world population may in fact consume so much fructose that they > endanger their health because of the difficulties the body encounters > in converting the molecule to energy. But the available evidence to > date suggests that, for most people, typical amounts of dietary > fructose are not toxic. >
>
> Even if Lustig is wrong to call fructose poisonous and saddle it with > all the blame for obesity and diabetes, his most fundamental directive > is sound: eat less sugar. Why? Because super sugary, energy-dense > foods with little nutritional value are one of the main ways we > consume more calories than we need, albeit not the only way. It might > be hard to swallow, but the fact is that many of our favorite > desserts, snacks, cereals and especially our beloved sweet beverages > inundate the body with far more sugar than it can efficiently > metabolize. Milkshakes, smoothies, sodas, energy drinks and even > unsweetened fruit juices all contain large amounts of free-floating > sugars instantly absorbed by our digestive system.
> Avoiding sugar is not a panacea, though. A healthy diet is about so > much more than refusing that second sugar cube and keeping the cookies > out of reach or hidden in the cupboard. What about all the excess fat > in our diet, so much of which is paired with sugar and contributes to > heart disease? What about bad cholesterol and salt? “If someone is > gaining weight, they should look to sugars as a place to cut back,” > says Sievenpiper, “but there’s a misguided belief that if we just go > after sugars we will fix obesity—obesity is more complex than that. > Clinically, there are some people who come in drinking way too much > soda and sweet beverages, but most people are just overconsuming in > general.” Then there’s all the stuff we really should eat more of: > whole grains; fruits and veggies; fish; lean protein. But wait, we > can’t stop there: a balanced diet is only one component of a healthy > lifestyle. We need to exercise too—to get our hearts pumping, > strengthen our muscles and bones and maintain flexibility. Exercising, > favoring whole foods over processed ones and eating less overall > sounds too obvious, too simplistic, but it is actually a far more > nuanced approach to good health than vilifying a single molecule in > our diet—an approach that fits the data. Americans have continued to > consume more and more total calories each year—average daily intake > increased (PDF) by 530 > calories between 1970 and 2000—while simultaneously becoming > less and less > physically active > . > Here’s the true bitter truth: Yes, most of us should make an effort to > eat less sugar—but if we are really committed to staying healthy, > we’ll have to do a lot more than that.
> *About the Author:* Ferris Jabr is an associate editor focusing on > neuroscience and psychology. Follow on Twitter @ferrisjabr > . >
>

Facebook, comic books, cartoons, images, text, emotions vs facts

Facebook is loaded with cartoons and other images, some of which are cute, interesting, to the point, and/or influential if they get relayed and "go viral." I remember enjoying comic books when I was 4 years old in Missouri, and read a lot of political cartoons while in college. I can see how images and some text can have a big impact, even if lies. There is evidently a huge industry in making these little cartoons. I don't find them very useful in learning anything for myself, though. Plain text with footnotes is much needed, along with occasional photos or images. Learn something new instead of reinforce preconceptionsby entertainment. Most images are distracting and trigger emotions instead of convey facts.
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Bank aluminum conspiracy. Gold. copper, other physical assets?

Aluminum warehouses. A legal way for banks to make a billion dollars per year according to current regulations. Banks have lots of fiat money with which they can hire the best MBAs and lawyers to design complicated schemes to exploit laws written by idiot politicians.

Why should taxpayers pay bailouts to banks and take on risk for more future bailouts to banks in order to allow banks to engage in risky non-bank enterprises? Taxpayers are deflating themselves in order to help banks inflate themselves! Why don't they inflate the elderly and veterans with higher social security payments and zero-interest loans for veterans.

1,500,000 tons of aluminum is 3,000,000,000 pounds of alumimum. Do banks really need this much aluminum? This scheme pays less than a penny off each soft drink can but when multiplied by billions of cans that adds up to real money.

http://nyti.ms/18uGD9d

NYTimes: A Shuffle of Aluminum, but to Banks, Pure Gold

Regulators have allowed banks to buy companies that trade in commodities, resulting in huge profits for the banks

Henry Ford auto ethanol Hemp Potatoes

I was not aware of all this. I do support legalizing industrial hemp(not for smoking). I also support legalizing moonshine whiskey for personal consumption provided the still issolar powered or bicycle powered. People should home-brew all the alcohol they need for autos and drinking, They should not have to pay taxes, permits or fees to do so. Walking is the best mode of transportation but if people drive they should use the right fuel. There is quite a lot on this blogincluding Diesel Daimler Mercedes Benz.

http://www.hempcar.org/ford.shtml"There's enough alcohol in one year's yield of an acre of potatoes to drive the machinery necessary to cultivate the fields for one hundred years." - Henry Ford

Pioneering automotive engineer Henry Ford held many patents on automotive mechanisms, but is best remembered for helping devise the factory assembly approach to production that revolutionized the auto industry by greatly reducing the time required to assemble a car.Born in Wayne County, Michigan, Ford showed an early interest in mechanics, constructing his first steam engine at the age of 15. In 1893 he built his first internal combustion engine, a small one-cylinder gasoline model, and in 1896 he built his first automobile.In June 1903 Ford helped establish Ford Motor Company. He served as president of the company from 1906 to 1919 and from 1943 to 1945.In addition to earning numerous patents on auto mechanisms, Ford served as a vice president of the Society of Automotive Engineers when it was founded in 1905 to standardize U.S. automotive parts.

Shamefully, Ford was an anti-Semitic and Nazi sympathizer. It is paradoxical that Henry Ford (considered to be one of America's greatest minds) should also be preoccupied with racism.

Fuel of the Future.When Henry Ford told a New York Times reporter that ethyl alcohol was "the fuel of the future" in 1925, he was expressing an opinion that was widely shared in the automotive industry. "The fuel of the future is going to come from fruit like that sumach out by the road, or from apples, weeds, sawdust -- almost anything," he said. "There is fuel in every bit of vegetable matter that can be fermented. There's enough alcohol in one year's yield of an acre of potatoes to drive the machinery necessary to cultivate the fields for a hundred years."

Ford recognized the utility of the hemp plant. He constructed a car of resin stiffened hemp fiber, and even ran the car on ethanol made from hemp. Ford knew that hemp could produce vast economic resources if widely cultivated.Ford's optimistic appraisal of cellulose and crop based ethyl alcohol fuel can be read in several ways. First, it can be seen as an oblique jab at a competitor. General Motors had come to considerable grief that summer of 1925 over another octane boosting fuel called tetra-ethyl lead, and government officials had been quietly in touch with Ford engineers about alternatives to leaded gasoline additives. Secondly, by 1925 the American farms that Ford loved were facing an economic crisis that would later intensify with the depression. Although the causes of the crisis were complex, one possible solution was seen in creating new markets for farm products. With Ford's financial and political backing, the idea of opening up industrial markets for farmers would be translated into a broad movement for scientific research in agriculture that would be labelled "Farm Chemurgy."

Why Henry's plans were delayed for more than a half century:Ethanol has been known as a fuel for many decades. Indeed, when Henry Ford designed the Model T, it was his expectation that ethanol, made from renewable biological materials, would be a major automobile fuel. However, gasoline emerged as the dominant transportation fuel in the early twentieth century because of the ease of operation of gasoline engines with the materials then available for engine construction, a growing supply of cheaper petroleum from oil field discoveries, and intense lobbying by petroleum companies for the federal government to maintain steep alcohol taxes. Many bills proposing a National energy program that made use of Americas vast agricultural resources (for fuel production) were killed by smear campaigns launched by vested petroleum interests. One noteworthy claim put forth by petrol companies was that the U.S. government's plans "robbed taxpayers to make farmers rich".

Gasoline had many disadvantages as an automotive resource. The "new" fuel had a lower octane rating than ethanol, was much more toxic (particularly when blended with tetra-ethyl lead and other compounds to enhance octane), generally more dangerous, and contained threatening air pollutants. Petroleum was more likely to explode and burn accidentally, gum would form on storage surfaces and carbon deposits would form in combustion chambers of engines. Pipelines were needed for distribution from "area found" to "area needed". Petroleum was much more physically and chemically diverse than ethanol, necessitating complex refining procedures to ensure the manufacture of a consistent "gasoline" product
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Saturday, July 20, 2013

Gold in warehouses caused price boom, Fed rethinking move allowing banks to trade physical commodities

2 articles below detail the conspiracy to manipulate gold and other commodities to deflate the sheeple. Big Banks bought warehouses, mines, tankers to control physical gold, oil, and other commodities. They sought and got regulatory permission to hoard and deal in physicals in the early 2000s that enabled them to start a gold oil boom, reversing 20 years of stagnation. (Below are charts of gold and oil prices.) Particularly Goldman Sachs, Morgan Stanley, JPMorgan, Citgroup... Big banks are not eelymosynary. Big Banks make profits at your expense, hoarding commodities to ignite a boom. Banks own the Federal Reserve bank which helps bankers inflate themselves while deflating the 99% poor.

The Fed and smaller banks need to gang up on the big banks and get them out of physicals so they do not bankrupt themselves and the whole economy. Selling off physicals will also collapse the price of gold and oil as they dump their hoarded inventories, warehouses, mines, and ships. Regulators should not have changed the law to allow such nonsense.

Banks need to get back to banking and get out of commodity price manipulation and speculation. If they do not clean up their act now then big government will come in and clean up for them. Obama Hilary Clinton would like to see $1.00 gasoline and $400 gold before the election to ensure Democrats win the House and Senate and Presidency.

I have to turn off my computer due to thunderstorm. Cool very nice weather. Some dark clouds but not much rain so far. Was sunny for several hours around noon at the beach.

http://finance.yahoo.com/news/fed-rethinking-move-allowing-banks-204643620.html

The Federal Reserve is "reviewing" a landmark 2003 decision that first allowed regulated banks to trade in physical commodity markets, it said on Friday, a move that may send new shockwaves through ...

http://www.bloomberg.com/news/2013-07-20/fed-reviews-rule-on-big-banks-commodity-trades-after-complaints.html

Fed Reviews Rule on Big Banks’ Commodity Trades After Complaints

When the Federal Reserve gave JPMorgan Chase & Co. approval in 2005 for hands-on involvement in commodity markets, it prohibited the bank from expanding into the storage business because of the risk.

Five years later, JPMorgan bought one of the world’s biggest metal warehouse companies.

While the Fed won’t discuss why its regulators let that happen, the central bank announced yesterday that it’s reviewing a 2003 policy decision that set the precedent for letting deposit-taking banks trade physical commodities.

“The Federal Reserve regularly monitors the commodity activities of supervised firms and is reviewing the 2003 determination that certain commodity activities are complementary to financial activities and thus permissible for bank holding companies,” said Barbara Hagenbaugh, a Fed spokeswoman. She declined to elaborate.

That reconsideration comes as a Senate subcommittee prepares for a July 23 hearing to explore whether financial firms such as Goldman Sachs Group Inc. and Morgan Stanley should continue to be allowed to store metal, operate mines and ship oil. At a time when JPMorgan faces a potential fine for alleged manipulation of U.S. energy prices, the panel will discuss possible conflicts of interest in the business model, said its chairman, U.S. Senator Sherrod Brown, an Ohio Democrat.

*Potential Manipulation *

“When Wall Street banks control the supply of both commodities and financial products, there’s a potential for anti-competitive behavior and manipulation,” Brown said in an e-mailed statement. Goldman Sachs, Morgan Stanley and JPMorgan are the biggest Wall Street players in physical commodities.

Commodities revenue at the 10 largest banks slumped 24 percent last year to $6 billion, according to a Feb. 15 report from analytics company Coalition. Goldman Sachs ranked No. 1, followed by JPMorgan.

On June 27, four Democratic members of Congress wrote a letter asking Fed Chairman Ben S. Bernanke, among other things, how Fed examiners would account for possible bank runs caused by a bank-owned tanker spilling oil, and how the Fed would resolve a systemically important financial institution’s commodities activities if it were to collapse.

Given such attention, the Fed’s re-examination of its policy shows the central bank isn’t tone deaf to criticism, said Joshua Rosner, managing director at New York-based research firm Graham Fisher & Co. and a witness scheduled to testify at the hearing of a subcommittee of the Senate Banking, Housing and Urban Affairs Committee.

*Oversight Inconsistencies *

“Given the inconsistencies on its oversight on these issues, the Fed seems to be trying to cover its backside,” Rosner said.

For more than 50 years, the Bank Holding Company Act prevented federally guaranteed banks, such as JPMorgan, from direct participation in commodity markets. The prohibition didn’t pertain to Goldman Sachs and Morgan Stanley, which were investment banks, until they became bank holding companies in 2008. After that, the Fed gave both banks a five-year grace period, which expires in September, while regulators decided whether to curtail their activities related to metals, fuels and other goods.

Now, “it is virtually impossible to glean even a broad overall picture of Goldman Sachs’s, Morgan Stanley’s, or JPMorgan’s physical commodities and energy activities from their public filings with the Securities and Exchange Commission and federal bank regulators,” Saule Omarova, a University of North Carolina-Chapel Hill law professor, wrote in a November 2012 academic paper, “Merchants of Wall Street: Banking, Commerce and Commodities.”

*Stretched Regulators *

The added complexity makes the financial system less stable and more difficult to supervise, she said in an interview.

“It stretches regulatory capacity beyond its limits,” said Omarova, who is slated to be a witness at the Senate hearing. “No regulator in the financial world can realistically, effectively manage all the risks of an enterprise of financial activities, but also the marketing of gas, oil, electricity and metals. How can one banking regulator develop the expertise to know what’s going on?”

Goldman Sachs owns coal mines in Colombia, a stake in the railroad that transports the coal to port, part of an oil field off the coast of Angola and one of the largest metals warehouse networks in the world, among other investments. Morgan Stanley’s involvement includes Denver-based TransMontaigne Inc. a petroleum and chemical transportation and storage company, and Heidmar Inc., based in Norwalk, Connecticut, which manages more than 100 oil tankers, according to its website.

*Grace Period *

Mark Lake, a spokesman for New York-based Morgan Stanley, referred to company regulatory filings that said the bank didn’t expect to have to divest any of its activities after the grace period ends. He declined to comment further. To gain Fed approval, bank holding companies must show that their involvement in physical commodities would relate to a financial activity of the bank, according to the law. In its landmark decision in 2003, the Fed allowed Citigroup Inc. to continue making transactions in physical commodities after finding them complementary to the firm’s trading and investing in financial instruments. The New York-based bank otherwise would have been forced to divest its Phibro energy-trading unit. Citigroup agreed to sell Phibro to Occidental Petroleum in 2009.

*Inherited Arrangements *

JPMorgan, the biggest U.S. bank, inherited electricity sales arrangements in California and the Midwestern U.S. in 2008 when it bought failing investment bank Bear Stearns Cos. Its February 2010 purchase of RBS Sempra Commodities LLP’s worldwide oil and metal investments and European power and gas assets was also a distressed transaction. The European Union ordered Royal Bank of Scotland Group Plc to sell its controlling stake in the firm after a taxpayer bailout. Part of that deal was Liverpool, England-based Henry Bath & Son Ltd., a founding member of the London Metal Exchange in 1877 and the operator of 76 exchange-licensed warehouses in eight countries, according to LME data.

In a November 2005 order allowing JPMorgan to expand into trading physical commodities, the Fed mentioned such possible adverse effects as “undue concentration of resources, decreased or unfair competition, conflicts of interests or unsound banking practices.” All of them would probably be outweighed by the public benefit of introducing new competition to markets for physical commodities and commodity derivatives, according to the order. Derivatives are financial instruments used for speculation or to hedge risks and can derive their value from the prices of commodities.

*No Storage *

The 2005 order also directed JPMorgan to stay out of the business of extracting, storing or transporting commodities to minimize its exposure “to additional risks.” The central bank has not made public any order showing that it changed its mind. The Fed’s Hagenbaugh declined to comment, saying that supervisory information on an individual bank was confidential. JPMorgan spokesman, declined to comment. Neither Stephanie Allen, a Commodity Futures Trading Commission spokeswoman, nor Bryan Hubbard, her counterpart at the Office of the Comptroller of the Currency, which oversees retail banks, said they had any knowledge of a waiver.

*Detroit Warehouses *

In February 2010, Goldman Sachs bought Romulus, Michigan-based Metro International Trade Services LLC, which as of July 11 operates 34 out of 39 storage facilities licensed by the London Metal Exchange in the Detroit area, according to LME data. Since then, aluminum stockpiles in Detroit-area warehouses surged 66 percent and now account for 80 percent of U.S. aluminum inventory monitored by the LME and 27 percent of total LME aluminum stockpiles, exchange data from July 18 show. “The warehouse companies, which store both LME and non-LME metals, do not own metal in their facilities, but merely store it on behalf of the ultimate owners,” “In fact, LME warehouses are actually prohibited from trading all LME products.” Traders employed by the bank can steer metal owned by others into Metro facilities, creating a stockpile, said Robert Bernstein, an attorney who represents consumers who have complained to the LME about what they call artificial shortages of the metal.

*Supply Accumulates *

With so much metal already in storage, the warehouses can afford to offer incentives to owners of the metal to store even more, earning additional rent through volume. The LME requires a daily minimum amount of metal to leave the warehouses; it doesn’t specify how much can enter. As supply accumulates, traders can finance the metal. Financing typically involves the purchase of metal for nearby delivery and a promise to sell it at a later date to take advantage of a market in contango, where prices rise into the future. The transactions are made easier by record-low borrowing costs after central banks cut interest rates to boost economic growth. “Users who need the metal can’t get it, and the money they make is coming at the expense of the American consumer,” Since 2010, the additional cost to aluminum users is about $3 billion annually

*Glut Premiums *

Buyers have to pay premiums over the LME benchmark prices even with a glut of aluminum being produced. Premiums in the U.S. surged to a record 12 cents to 13 cents a pound in June, almost doubling from 6.5 cents in summer 2010, according to the most recent data available from Austin, Texas-based researcher Harbor Intelligence. Warehouses are creating logjams. “Restrictive and outdated warehousing rules are interfering with normal supply-and-demand dynamics, creating supply-chain bottlenecks, and preventing brewers and other aluminum users from getting aluminum in time and at fair market prices,”

The LME has proposed new guidelines, slated to take effect in April, that would link the amount of metal leaving a warehouse to the amount going in. The proposal would affect warehouses with waiting times longer than 100 days. The queue in Detroit is more than 400 days. If rents stay where they are, the rule change would cut Detroit-area warehouse fees by as much as 70 percent.

*Risky Forays *

It’s difficult to say how expansive the central bank’s review of banks’ commodities activities might be, said Rosner.

“Even if the Fed forces the sale of the warehouses, it’s unclear if they are serious about addressing our systemically risky banks’ forays into critical non-financial businesses,” he said. Already, tougher regulations and lower profits have convinced JPMorgan and Goldman Sachs to look for buyers for their warehouse networks, the Financial Times said. JPMorgan is near a deal with the Federal Energy Regulatory Commission to settle allegations that the bank manipulated electricity prices in California and the U.S. Midwest, the Wall Street Journal reported. A deal could cost the bank $500 million, the New York Times reported

*FERC Allegations *

The negotiations come after FERC ordered London-based Barclays and Deutsche Bank AG, Germany’s biggest bank, to pay fines for allegedly manipulating energy markets. Deutsche Bank agreed in January to pay $1.6 million with no admission of wrongdoing. Barclays said this month it would “vigorously” fight the $487.9 million in combined fines and penalties.

Financial regulators face an increasingly complex task at the largest U.S. banks. In 1990, the four biggest bank holding companies had, combined, about 3,000 subsidiaries, according to researchers at the Federal Reserve Bank of New York. By 2011, the top four had more than 11,000.