Thursday, 11 February 2010

Security guards do nothing as 15-year-old girl is beaten, punched, thrown to the ground, kicked and then robbed -

Watching - Security guards do nothing as 15-year-old girl is beaten, punched, thrown to the ground, kicked and then robbed -

Wednesday, 10 February 2010

Terrifying elevator ordeal at Burj Khalifa tower, the world’s tallest building -

Reading - Terrifying elevator ordeal at Burj Khalifa tower, the world’s tallest building -

Terrified passengers were left stranded between floors in the world’s tallest building after a lift broke as they were descending in the Burj Khalifa tower in Dubai.

Visitors queueing to descend from the observation deck on the 124th floor of the recently opened 828-metre (2,717ft) tower heard a crash and the sound of breaking glass from the lift shaft. Dust then billowed back into the room through the small gaps in the lift shaft doors.

The 15 passengers inside the lift were left stranded for 45 minutes before they were rescued by staff who dropped a ladder into the shaft and helped them to climb out to the observation deck. About 60 tourists who had heard the incident were left on the deck without explanation as security guards said that nothing was wrong. They were eventually joined by hysterical and dazed passengers from a second lift, who had been descending the tower when the incident occurred in the adjacent shaft. Their lift also stopped but was later safely returned to the observation deck, which was eventually evacuated via a service lift.

One visitor said that the initial lift failure sounded like “a small explosion”. It is still not clear whether anyone was injured. The Burj, which opened on January 4 with an extravagant firework display, was closed on Sunday after the incident.

Public access to the observation deck has been halted indefinitely, leaving hundreds of disgruntled tourists queueing for refunds for what should have been a highlight of their visit to the Gulf state. Emaar, the building’s developer, declined to comment on the incident but initially blamed its closure on “unexpectedly high traffic” in the tower. It later added that unspecified electrical problems could be to blame.

The lifts were promoted as one of the highlights of the tower. The fastest public lifts in the world, they reach more than 25mph (40k/ph), climbing to the top in about a minute. The observation deck was the only part of the tower to be opened so far. Saturday’s incident throws fresh doubt on the opening of other parts of the building.

The launch of the world’s tallest building was intended to be the crowning achievement of this small city-state, drawing a line under its financial difficulties. Instead it highlighted the emirate’s dependence on its neighbour’s support. It was renamed the Burj Khalifa instead of the Burj Dubai, in honour of Sheikh Khalifa bin Zayed bin Sultan al-Nahyan, the ruler of Abu Dhabi.

The Dumping Begins: Chinese Reserve Managers Notified That Any Non-USG Guaranteed Securities Must Be Divested

Reading - The Dumping Begins: Chinese Reserve Managers Notified That Any Non-USG Guaranteed Securities Must Be Divested

It appears that this time China's posturing is for real. Following up on our earlier post that Chinese military officials want to "punish" America by selling Treasuries, Asia Times Online is reporting that an explicit directive by the Chinese government has notified reserve managers to sell all risky US assets, including asset backed and corporates, and just hold on to explicitly guaranteed Treasuries and Agency debt. And from following TIC data we know that China's enthusiasm for MBS/Agencies over the past year has been matched solely by that of one Bill Gross.

From Asia Times:

Dollar-denominated risk assets, including asset-backed securities and corporates, are no longer wanted at the State Administration of Foreign Exchange (SAFE), nor at China’s large commercial banks. The Chinese government has ordered its reserve managers to divest itself of riskier securities and hold only Treasuries and US agency debt with an implicit or explicit government guarantee. This already has been communicated to American securities dealers, according to market participants with direct knowledge of the events.

It is not clear whether China’s motive is simple risk aversion in the wake of a sharp widening of corporate and mortgage spreads during the past two weeks, or whether there also is a political dimension. With the expected termination of the Federal Reserve’s special facility to purchase mortgage-backed securities next month, some asset-backed spreads already have blown out, and the Chinese institutions may simply be trying to get out of the way of a widening. There is some speculation that China’s action has to do with the recent deterioration of US-Chinese relations over arm sales to Taiwan and other issues. That would be an unusual action for the Chinese to take–Beijing does not mix investment and strategic policy–and would be hard to substantiate in any event.

Furthermore, demonstrating just how seriously China is approaching a populist-driven adversarial stance with the US, was earlier speculation that instead of unpegging its currency (a move much desired by the US administration in its goal to further weaken the dollar and make China less competitive in the export market), China would reduce its trade balance not by the traditional way of currency inflation, but by the economic textbook footnote approach of raising salaries.

Higher labor costs would cut Chinese export competitiveness while boosting domestic spending power and sustaining economic growth, according to the bank. Premier Wen Jiabao’s government has been pressed by U.S. and European officials to end a 19- month yuan peg to the dollar to help diminish trade and investment imbalances that contributed to the credit crisis.

“Wage increases are a better option because they largely benefit Chinese workers,” Tao Dong, a Credit Suisse economist in Hong Kong who has covered the Chinese and Asian economies for more than 15 years, said in an interview yesterday. “Currency appreciation will only result in Chinese exporters losing out to competitors in countries such as Malaysia and Mexico.”

The strategy may limit gains in the yuan to 3 percent this year, according to Tao. This month’s 13 percent increase in minimum wage in eastern China’s Jiangsu province indicates that higher pay will play an important role in officials’ efforts to rebalance growth in the fastest-growing major economy, Tao said.

The wage decision “argues against a large one-off yuan revaluation,” Ben Simpfendorfer, an economist with Royal Bank of Scotland in Hong Kong, wrote in a note this week.

One thing is certain - China will now focus on doing precisely the opposite of what America would urge Chinese authorities to do, in order to establish itself as the focal point of negotiating leverage and increasingly humiliate the Obama regime. If this involves selling USTs or corporates (both fixed income and equities) so be it. This is further confirmed by carefully worded disclosure in today's copy of China Securities Journal:

The China Securities Journal, a government-backed daily, accused the U.S. in a tough-worded front page editorial of playing the "exchange rate card."

It said that, just as China didn't interfere with Federal Reserve purchases of U.S. Treasuries, "the U.S. has no right to interfere in China's exchange rate policy."

"Whether or not to appreciate is our own business," the newspaper said.

"Whether it will appreciate, when and by how much is an integral part of China's monetary policy."

It is not clear when the asset divestiture directive takes place or if it is already being enforced. Juding by the afterhours action in futures and the currency markets, some dumping may already be taking place. Alternatively, we now know just who it is that sell into every rally (yes, even in this market, every buyer is matched with a seller).

Magnitude 4.3 Quake Wakes Up Chicago Area -

Reading - Magnitude 4.3 Quake Wakes Up Chicago Area -

A rare moderate earthquake struck northern Illinois Wednesday morning, waking up residents in the Chicago area.

The 4.3 magnitude quake, centered 48 miles west of Chicago near the city of Sycamore, hit at 4 a.m. local time at a depth of about 3 miles, the USGS reported.

Geophysicist Amy Vaughn told the Chicago Sun Times the earthquake was "very widely felt" and the USGS phone lines were flooded with calls from residents asking about the shaking.

"It's mostly people who said 'we woke up and we thought we were going crazy,'" Vaughn said. "Mostly it’s rattling people awake."

Kane County sheriff's spokesman Lt. Pat Gengler told the Associated Press dispatchers have been flooded with calls from startled residents, though no injuries or damage have been reported.

Gengler said several residential and business alarms were triggered, but deputies haven't been called for assistance.

Residents reported being shaken out of bed and finding books and tools scattered across the floor after falling from shelves.

Walter Mockus of St. Charles told the Chicago Tribune. "The whole house shook. The chimes that hang were all ringing. It was so loud, I thought a plane had gone down."

On Twitter, user RosaMCabrera wrote: "Earthquake woke us! In ravenswood it was a second or so."

And Terryamerson said: "Thought it was the biggest snow plow ever that woke me up this morning. No it was 4.3 earthquake!"

Early reports suggest the quake was felt across three states: Illinois, Indiana and Wisconsin.

Tuesday, 9 February 2010

Congress votes to spend $50 million of the taxpayers’ money to buy 3,000 acres of beachfront on Caribbean Island -

Reading - Congress votes to spend $50 million of the taxpayers’ money to buy 3,000 acres of beachfront on Caribbean Island -

If you are hoping to visit the newest crown jewel in America's park system chosen by Congress, throw away the car keys and open up your wallet. The 2,900 pristine acres of beachfront property were not cheap -- or even in the United States.

The property soliciting accusations of "pork" from critics is the Castle Nugent National Historic Park. It's in the U.S. Virgin Islands, about a thousand miles from Miami and an expensive jet ride to get there.

Two weeks ago, on a near party line vote, a huge Democratic majority in the House agreed to spend $50 million to buy the former cotton plantation on the island of St. Croix.

"This is a beautiful and important natural and cultural resource that is in danger of being lost forever," Virgin Island delegate, Donna Christiansen, told House colleagues in January.

"The site to be designated as the Castle Nugent National Historic Park continues to be heralded as one of the last pristine areas in the region."

The mixture of dry forest and rangeland offers picturesque views of the Caribbean Sea, but good luck getting there. Critics in Congress say the purchase is wasteful and irresponsible, especially with unemployment at 10 percent and the nation in debt.

"Now is not the time to spend up to $50 million dollars of the taxpayers’ money to buy nearly 3,000 acres of beachfront property on a Caribbean Island," said Rep. Doc Hastings, (R-Wash.), ranking Republican on the House Natural Resources Committee. "We can't afford a price tag for a new park in St Croix, just as many Americans will never be able to afford a visit there."

Democrats approved the purchase, even though the National Park Service has yet to complete a study on the purchase.

"We don't have the money to do this," said Rep Jason Chaffetz, (R - Utah). "Currently the National Park Service has an estimated $9 billion in backlog maintenance on existing parks. Why should the people of Iowa, Rhode Island or California or Utah have to continue to pay and supplement the people there on St Croix for this property?"

But a majority on St. Croix, where the economy depends on tourism, support the purchase.

"It allows us to maintain the natural beauty of St. Croix and also at the same time it allows for the historic nature of the property," Virgin Islands Governor, John de Jongh Jr., told Fox News.

The land is currently used as a cattle ranch. It includes an estate house and two row houses where the owners kept slaves that worked on the plantation. Most of the land is owned by the Gasperi family, who bought the land in the 1950's and approached the U.S. Government about four years ago about buying it.

"It's beautiful, it's lush, it's green," Mauro Gasperi said. "It contains a beautiful reef in front that we want to maintain as clean and as pristine as when we first bought it."

The Gasperi family maintains it wants to sell the land to the U.S. government in order to protect it from developers. Critics in Congress say there is nothing stopping them from doing that. They don't have to sell, or the family could impose a conservation easement on the land, preventing development forever.

"Sometimes you have to say, enough is enough," Rep. Rob Bishop of Utah told the House in January. "We heard it is (the Gasperi's) desire that this land not be developed, but preserved in its current condition. It seems to me they are in the perfect position to accomplish that goal as landowners."

The Senate is now expected to take up a similar bill.

Here's the final passage roll call vote on H.R. 3726: ^[1]

Naked Body Scanner Images Of Film Star Printed, Circulated By Airport Staff -

Reading - Naked Body Scanner Images Of Film Star Printed, Circulated By Airport Staff -

Claims on behalf of authorities that naked body scanner images are immediately destroyed after passengers pass through new x-ray backscatter devices have been proven fraudulent after it was revealed that naked images of Indian film star Shahrukh Khan were printed out and circulated by airport staff at Heathrow in London.

UK Transport Secretary Lord Adonis said last week that the images produced by the scanners were deleted “immediately” and airport staff carrying out the procedure are fully trained and supervised.

“It is very important to stress that the images which are captured by body scanners are immediately deleted after the passenger has gone through the body scanner,” Adonis told the London Evening Standard.

Adonis was forced to address privacy concerns following reports that the images produced by thescanners broke child pornography laws in the UK. When the scanners were first introduced, it was also speculated that images of famous people would be ripe for abuse as the pictures produced by the devices make genitals “eerily visible” according to journalists who have investigated trials of the technology.

However, the Transport Secretary’s assurances were demolished after it was revealed on the BBC’s Jonathan Ross show Friday that Indian actor Shahrukh Khan had passed through a body scan and later had the image of his naked body printed out and circulated by Heathrow security staff.

“I was in London recently going through the airport and these new machines have come up, the body scans. You’ve got to see them. It makes you embarrassed – if you’re not well endowed,” said Khan, referring to how the scans produce clear images of a person’s genitals.

“You walk into the machine and everything – the whole outline of your body – comes out,” he said.

“I was a little scared. Something happens [inside the scans], and I came out. Then I saw these girls – they had these printouts. I looked at them. I thought they were some forms you had to fill. I said ‘give them to me’ – and you could see everything inside. So I autographed them for them,” stated Khan.

The story was carried by Yahoo News under the headline “Shah Rukh signs off sexy body-scan printouts at Heathrow”.

Khan’s reference to “girls” with printouts of his naked body scan can only refer to female airport security staff responsible for processing the images produced by the scanners, “professionals” who are supposed to instantly delete the images, according to Lord Adonis.

The revelation that airport security staff are completely abusing any notion of the professionalism promised by authorities by printing out and circulating images of naked body scans should set alarm bells ringing, especially in light of the fact that such images of minors break child pornography laws. British authorities have made it mandatory for travelers to submit to the naked body scanners when asked and have overturned previous rules that prevented under 18’s from passing through the devices.

Within days of the devices being introduced at Heathrow, staff have abused their professionalism and printed out naked scans of a famous actor for their own titillation.

We were promised all along that the body scanners “increased privacy” because they were only accessible to a single staff member who had no personal contact with the passenger taking the scan, in addition to the assurance that the images could not be saved and were instantly deleted. It in fact turns out that airport staff have been saving, printing and circulating naked body scans in complete violation of these supposed guarantees.

Furthermore, we were told that the identity of the person undergoing the virtual strip search would also be kept private. The fact that Heathrow employees must have known that the actor was about to take the body scan in order to print out copies of the image also proves this claim to be a total fallacy.

The abuse of the naked body scan images in this instance is a total violation of every data protection law in the UK. Far from treating the story in a comical manner, Khan should be filing a very expensive lawsuit and preparing for a successful and lucrative outcome.

In the meantime, the revelation that the naked body scanner images are being freely printed out and circulated by airport security staff should prove to be the death knell for plans on behalf of governments worldwide to institute the scanners on a widespread basis.

Courts have consistently found that strip searches are only legal when performed on a person who has already been found guilty of a crime or on arrestees pending trial where a reasonable suspicion has to exist that they are carrying a weapon. Subjecting masses of people to blanket strip searches in airports reverses the very notion of innocent until proven guilty.

Barring people from flying and essentially treating them like terrorists for refusing to be humiliated by the virtual strip search is a clear breach of the basic human right of freedom of movement.Security experts agree that such scanners would not even have stopped the incident that has been exploited to justify their widespread introduction – the Christmas Day underwear bomber.

Not only have the scanners proven to be a total violation of privacy, but major international radiation safety groups are now warning of the health risks they pose.

Despite governments claiming that backscatter x-ray systems produce radiation too low to pose a threat, the Inter-Agency Committee on Radiation Safety concluded in their report that governments must justify the use of the scanners and that a more accurate assessment of the health risks is needed.

Pregnant women and children should not be subject to scanning, according to the report, adding that governments should consider “other techniques to achieve the same end without the use of ionizing radiation.”

“The Committee cited the IAEA’s 1996 Basic Safety Standards agreement, drafted over three decades, that protects people from radiation. Frequent exposure to low doses of radiation can lead to cancer and birth defects, according to the U.S. Environmental Protection Agency,”reported Bloomberg.

Chinese military proposed that their country boost defense spending, and sell U.S. bonds to punish Washington -

Reading - Chinese military proposed that their country boost defense spending, and sell U.S. bonds to punish Washington -

Senior Chinese military officers have proposed that their country boost defense spending, adjust PLA deployments, and possibly sell some U.S. bonds to punish Washington for its latest round of arms sales to Taiwan.

WORLD

The calls for broad retaliation over the planned U.S. weapons sales to the disputed island came from officers at China's National Defence University and Academy of Military Sciences, interviewed by Outlook Weekly, a Chinese-language magazine published by the official Xinhua news agency.

The interviews with Major Generals Zhu Chenghu and Luo Yuan and Senior Colonel Ke Chunqiao appeared in the issue published on Monday.

The People's Liberation Army (PLA) plays no role in setting policy for China's foreign exchange holdings. Officials in charge of that area have given no sign of any moves to sell U.S. Treasury bonds over the weapons sales, a move that could alarm markets and damage the value of China's own holdings.

While far from representing fixed government policy, the open demands for retaliation by the PLA officers underscored the domestic pressures on Beijing to deliver on its threats to punish the Obama administration over the arms sales.

"Our retaliation should not be restricted to merely military matters, and we should adopt a strategic package of counter-punches covering politics, military affairs, diplomacy and economics to treat both the symptoms and root cause of this disease," said Luo Yuan, a researcher at the Academy of Military Sciences.

"Just like two people rowing a boat, if the United States first throws the strokes into chaos, then so must we."

Luo said Beijing could "attack by oblique means and stealthy feints" to make its point in Washington.

"For example, we could sanction them using economic means, such as dumping some U.S. government bonds," Luo said.

The warnings from the PLA come after weeks of strains between Washington and Beijing, who have also been at odds over Internet controls and hacking, trade and currency quarrels, and President Barack Obama's planned meeting with the Dalai Lama, the exiled Tibetan leader reviled by China as a "separatist."

MILITARY SPENDING BOOST

Chinese has blasted the United States over the planned $6.4 billion arms package for Taiwan unveiled in late January, saying it will sanction U.S. firms that sell weapons to the self-ruled island that Beijing considers a breakaway province of China.

China is likely to unveil its official military budget for 2010 next month, when the Communist Party-controlled national parliament meets for its annual session.

The PLA officers suggested that budget should mirror China's ire toward Washington.

"Clearly propose that due to the threat in the Taiwan Sea, we are increasing military spending," said Luo.

Last year, the government set the official military budget at 480.7 billion yuan ($70.4 billion), a 14.9 percent rise on the one in 2008, continuing a nearly unbroken succession of double-digit increases over more than two decades.

The fresh U.S. arms sales threatened Chinese military installations on the mainland coast facing Taiwan, and "this gives us no choice but to increase defense spending and adjust (military) deployments," said Zhu Chenghu, a major general at China's National Defence University in Beijing.

In 2005, Zhu stirred controversy by suggesting China could use nuclear weapons if the United States intervened militarily in a conflict over Taiwan.

The United States switched official recognition from Taiwan to China in 1979. But the Taiwan Relations Act, passed the same year, guarantees Taiwan a continued supply of defensive weapons.

China has the world's biggest pile of foreign currency reserves, much of it held in U.S. treasury debt. China held $798.9 billion in U.S. Treasuries at end-October.

But any attempt to use that stake against Washington would probably maul the value of China's own dollar-denominated assets.

China has condemned previous arms sales, but has taken little action in response to them. But Luo said the country's growing strength meant that time has passed.

"China's attitude and actions over U.S. weapons sales to Taiwan will be increasingly tough," the magazine cited him as saying. "That is inevitable with rising national strength."

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