XIAM007 - Making Unique Observations in a Very Cluttered World

Monday, 1 August 2011

THE TRUTH ABOUT THE DEBT DEAL: It's Pretty Much Meaningless - pushes the most difficult decisions off into the future -

THE TRUTH ABOUT THE DEBT DEAL: It's Pretty Much Meaningless - pushes the most difficult decisions off into the future -
magician

The "historic, bipartisan compromise" reached to raise the debt limit does not end the struggle to reign in the federal deficit — in fact, it pushes the most difficult decisions off into the future.

More surprising, the debt deal actually cuts almost nothing now--it just promises future cuts that may or may not materialize.

There are very few specific cuts in the deal — and the $1 trillion in immediate cuts are almost entirely constituted of caps on future spending. And those caps are not required to be honored by future congresses.

The "real" spending cuts to current programs will come out of a bipartisan committee of Representatives and Senators, which is charged with finding an additional $1.5 trillion in savings from the federal deficit.

But White House and Republican leaders appear split on exactly what the so-called "Super Committee" can do.

In a presentation to his caucus, Speaker of the House John Boehner said it would "be effectively...impossible for [the] Joint Committee to increase taxes," even though it could consider reforming the tax code.

White House officials strongly pushed back on that remark, saying revenue-increasing reform is possible — even though it almost certainly would not be able to get through Congress.

The committee is modeled on "BRAC" or the Base Realignment and Closure Commission, whose recommendations are presented to Congress for a straight up-or-down vote with no amendments allowed. Instead of non-partisan commissioners, each congressional leader will appoint three members of Congress to the committee.

If the Super-Committee can't reach an agreement, or their recommendations cannot pass Congress, deep "real" spending cuts, which are painful to both sides, would take effect. For Democrats, entitlement cuts are at risk, while Republicans would see cuts to defense spending.

Additionally, President Barack Obama has the ability to veto an extension of the Bush tax cuts if he deems the committee's solution insufficiently "balanced."

So, again, other than cuts to federally subsidized student loans to graduate and professional school students, the debt deal actually cuts NOTHING now, and only promises future reductions that may never materialize.

In short, for the past month, Congress has been arguing about little more than an agreement to reach an agreement at some point in the future. Your tax dollars at work.

Bank posts $11.5 billion profit, announces 30,000 job cuts... -

HSBC will shed 30,000 jobs as it retreats from countries where it is struggling to compete, Europe's biggest bank said on Monday after it reported a surprise rise in first-half profit.

Shares in HSBC rose over 4 percent after it unveiled first-half pretax profits of $11.5 billion, up from $11.1 billion a year ago and better than the $10.8 billion average in a Reuters poll of analysts.

The bank also said it had cut 5,000 jobs following restructuring of operations in Latin America, the United States, Britain, France and the Middle East and that it would cut another 25,000 between now and 2013.

"There will be further job cuts," Chief Executive Stuart Gulliver told reporters on a conference call. "There will be something like 25,000 roles eliminated between now and the end of 2013."

The cuts equate to roughly 10 percent of HSBC's total workforce. They come on top of planned reductions in overall headcount in a program of disposals that also forms part of a plan to focus on HSBC's Asian operations.

The bank is reversing a strategy that had been criticized for "planting flags" around the world.

Gulliver's far-reaching plan unveiled three months ago aims to slash costs and he intends to sell, shut or slim down retail banking in 39 countries.

HSBC said on Sunday it would sell 195 U.S. branches to First Niagara Financial for about $1 billion in cash, and close another 13 of the 470 sites it had.

The bank also intends to sell HSBC's U.S. credit card portfolio, which has more than $30 billion in assets, a move which would free up capital. Capital One Financial Corp and Wells Fargo are among the bidders, sources have said.

Another suitor could be Barclays.

HSBC is the first of Britain's big banks to report for the quarter. Rivals are also cutting jobs and shaking up their business model as the euro zone debt crisis has hit fixed income trading revenues hard and tougher regulations are hurting returns for investors.

The bank on Monday highlighted risks to global economic recovery from increased regulation, particularly as governments grapple with sovereign debt crises and try to plug holes in their budgets.

CBO Scores "Bipartisan" Plan At Half Of S&P Required Savings; Only 2% Of Total Cuts To Take Place Before Obama Reelection -

It was only a week ago that S&P said anything under $4 trillion in deficit cuts would be an automatic downgrade for the US. So according to the CBO's just released score of the bipartisan budget, the S&P will have to cut its rating of the US in half, since the total budget cuts will be just over 50% of what S&P demanded previously. And here's the funny part: of the $917 billion in known cuts (the other $1.2 billion is factored but not even the CBO has any clue what it will look like), a whopping 2% in cuts will take places before the Obama election. 2%! This whole charade is there only to make sure the president is reelected. Oh, and of course to make sure S&P does not downgrade the US. Which is where we get back to the fun. THE FUN. Because as it turns out, that whole $4 trillion thing.... S&P was only kidding. "It appears that the perception Standard & Poor's seemed to harbour, that the U.S. needed to find a $4trn sized package in order to keep its triple A rating, is unfounded. Two credit research reports published today point to the testimony given by S&P president Deven Sharma to the Congressional House Financial Services subcommittee on Wednesday, where he seems to believe his firm has been misquoted in media reports." There you go: to S&P $2.1 trillion (of which $1.2 trillion may never even materialize) will end up being just as good, if not better than $4 trillion. And that, ladies and gentlemen, is how a rating agency regains credibility and stuff.

The only chart from the CBO that matters:

Indian man has hysterectomy after doctors find uterus -

The Indian man, identified as Ryalu, was admitted to a hospital near Bhopal, Madhya Pradesh, after complaining of severe stomach pains.

Doctors suspected a normal hernia, but when they carried out an exploratory operation they were shocked to discover it had been caused by a female uterus, ovaries, Fallopian tubes, a cervix and underdeveloped vaginal tissue.

Dr Pramod Kumar Shrivastava, a surgeon at the Chhindwara district hospital said the patient had external male organs, was fit from working in the fields, and lived a normal life.

"Usually the contents of the Hernia Sac are abdomen organs like large intestines and small intestines but when we operated on the patient we were surprised to find female reproductive organs. We have removed the organs through a hysterectomy and repaired the hernia.

"The sac contained quite developed uterus, both the ovaries, Fallopian tubes, cervix and a tissue which is undeveloped but apparently looks like vaginal tissue," he explained.

Men build small flying spy drone that cracks Wi-Fi and cell data -

Men build small flying spy drone that cracks Wi-Fi and cell data -

WASP_drone-wi-fi

The safety of Wi-Fi networks may be in danger from small threats flying above us. An airplane hobby shop owner and an ex-Air Force official team up to create a drone that cracks into Wi-Fi and cell phones.

Built by Mike Tassey and Richard Perkins, the Wireless Aerial Surveillance Platform (otherwise known as the WASP) is a flying drone that has a 6-foot wingspan, a 6-foot length and weighs in at 14 pounds. The small form factor of the unmanned aerial vehicle allows it to drop under radar and is often mistaken for a large bird. It was built from an Army target drone and converted to run on electric batteries rather than gasoline. It can also be loaded with GPS information and fly a predetermined course without need for an operator. Taking off and landing have to be done manually with the help of a mounted HD camera, though. However, the most interesting aspect of the drone is that it can crack Wi-Fi networks and GSM networks as well as collect the data from them.

It can accomplish this feat with a Linux computer on-board that’s no bigger than a deck of cards. The computer accesses 32GB of storage to house all that stolen data. It uses a variety of networking hacking tools including the BackTrack toolset, as well as a 340-million-word dictionary to guess passwords. In order to access cell phone data, the WASP impersonates AT&T and T-Mobile cell phone towers and fools phones into connecting to one of the eleven antennas on-board. The drone can then record conversations to the storage card, and avoids dropping the call due to the 4G T-mobile card routing communications through VoIP.

Amazingly, this was accomplished without breaking a single FCC regulation. The drone relies on the frequency band used for Ham radios to operate. Not wanting to get into legal trouble with AT&T and T-Mobile, they tested the technology in isolated areas to avoid recording phone conversations other than their own. The duo will discuss how to build the WASP at the DEFCON 19 hacking conference starting Thursday in Las Vegas.

NJ Transit Bus Idles for 5 Hours With Dead Driver -

Officials are trying to determine why a NJ Transit bus with a dead driver inside idled for nearly five hours at the Port Authority terminal in New York.

Thomas Truex was found slumped in a passenger seat hours after he dropped off his last passengers Thursday morning.

The bus was parked near a curb where drivers routinely stop for a bathroom or coffee break.

Port Authority Spokesman Steve Coleman told The Record newspaper officials probably need to take a look at coordination to make sure anything out of the ordinary is checked out.

Officials began looking for Truex, who drove a bus for 26 years, after he failed to return to the Meadowlands garage at 3 p.m.

His death is not considered suspicious.

Sunday, 31 July 2011

PBS announces 'Mister Rogers' next generation spin-off -

It’s a beautiful day … in Daniel Tiger’s neighborhood?

A decade after children’s classicMister Rogers’ Neighborhoodceased production, PBS has just announced an animated spin-off to the series hosted by a familiar personality from the original show. Titled Daniel Tiger’s Neighborhood, the series will have original Mister Rogers characters grown up and with children of their own living in the Neighborhood of Make Believe. Four-year-old Tiger (son of the original Tiger) will be the star. The “next generation” concept intends to use the musical education strategies pioneered by Fred Rogers’ landmark original program, which was in production from 1968 to 2001 and continued airing on PBS until about three years ago.

Daniel Tiger’s Neighborhood will launch in fall of 2012 as part of the PBS Kids pre-school lineup and represents the first show launched by the Fred Rogers Company since the original program.

“Fred Rogers revolutionized children’s media with Mister Rogers’ Neighborhood, and Daniel Tiger’s Neighborhood continues on this path of innovation, helping the next generation of young children learn and grow in new ways,” said Lesli Rotenberg, senior vp, PBS. “Joining the PBS Kids family of series that cover important curricular areas like literacy and science,Daniel Tiger’s Neighborhood fills a critical gap in children’s media today: modeling the behaviors and habits that kids need in order to excel in formal learning settings – essentially, learning how to learn. It’s important for kids to learn pro-social skills like cooperation and listening, so that when they start school they are able to focus on the material at hand.”

Australian civil servant wants workers comp for motel room sex injuries -

An Australian woman is suing the government for compensation after a light fixture came crashing down on her face while she was having motel room sex on business trip.

An Australian civil servant is suing the government for workers compensation after she was injured in her motel room while having sex on a business trip.

The woman, who was not identified, was having sex with a man described as an “acquaintance” when a glass light fixture came crashing down on her face from the wall above the bed, Australia’s Daily Telegraph reports.

The light injured her nose, mouth and a tooth, and caused "a consequent psychiatric injury" described as an adjustment disorder.

The motel room was arranged and paid for by her employer, and the woman’s lawyer is arguing that she is entitled to the same compensation as someone who slips in the shower.

But the Australian government’s workplace safety body, which rejected her compensation claim for the motel sex injury, argued that sex is not a “necessary activity” for a motel room in the same way that showering, sleeping or eating is.

The woman’s lawyer, Leo Grey, told the Australian Federal Court that this “isn’t a case about sex,” according to the Daily Telegraph.

Rather, his client should be compensated for her injuries because they were caused "during the course of her employment,” as she had booked into the motel in a country town ahead of an early meeting the next day.

"This is no different than slipping over in the shower or being bashed by a gang of thugs after a dispute over a woman," Grey said.

He also argued that sex is a “lawful sexual activity” and considered reasonable behavior for a motel room.

There is no rule barring Australian government employees from having visitors in their rooms during business trips, he said.

In his court statement, the woman's male "acquaintance" said they were "going hard,” Australian newspaper The Age reports.

"I do not know if we bump the light or it just fell off," he reportedly said.

"I think she was on her back when it happened but I was not paying attention because we are rolling around.”

Dubai Company Billed U.S. $900 for $7.05 Iraq Electric Switch, Audit Says -

A U.S. contractor in Iraq overbilled the Pentagon by at least $4.4 million for spare parts and equipment, including $900 for an electronic control switch valued at $7.05, according to a new audit.

Based on the questionable costs identified in a $300 million contract with Dubai-based Anham LLC, the U.S. should review all its contracts with the company in Iraq and Afghanistan, which total about $3.9 billion, said Special Inspector General for Iraq Reconstruction Stuart Bowen.

“The audit found weak oversight in multiple areas that left the government vulnerable to improper overcharges,” Bowen wrote in the forward to his 30th quarterly report, released today. The contract in question was funded with a combination of money earmarked for Iraqi Security Forces and Army operations and maintenance funds.

Among the “egregious examples of overbilling” by Anham were $4,500 for a circuit breaker valued at $183.30, $3,000 for a $94.47 circuit breaker and $80 for a small segment of drain pipe valued at $1.41.

Bowen’s office called for an in-depth review of the entire contract after discovering “significant weaknesses” in government oversight, questionable competition practices and possible undisclosed ownership affiliations between Anham and some of its subcontractors.

Meet the countries in the Triple-A debt club - 17 countries have the world's highest credit rating, AAA -

Meet the countries in the Triple-A debt club - 17 countries have the world's highest credit rating, AAA -

These 17 countries have the world's highest credit rating, AAA from both Moody's and Standard & Poor's, but the U.S. risks losing that high standing if lawmakers don't raise the debt ceiling.

These 17 countries have the world's highest credit rating, AAA from both Moody's and Standard & Poor's, but the U.S. risks losing that high standing if lawmakers don't raise the debt ceiling.

Amid the contentious debt ceiling debate, the United States is at risk of being booted out of a prestigious group of countries that boast a spotless credit rating.

Only 17 countries in the world -- currently including the U.S. -- hold the highly coveted triple-A rating from both Standard & Poor's and Moody's. (S&P rates an additional three countries as triple-A, that aren't featured on Moody's list).

Germany, Canada, France, Norway, Sweden and Switzerland are among those with the undisputed stamp of approval -- so is the Isle of Man, a British crown dependency off Ireland's east coast, and Singapore (both of which are too small to see on our CNNMoney map above.)

Now, S&P and Moody's are questioning the United States' membership in this exclusive club.

The triple-A rating enables nations to borrow funds at a low cost, because their governments are considered stable and their bonds safe.

The U.S. for example, has seen its dollar become the world's No. 1 reserve currency because its bonds are held in such high regard by investors. They're backed by the "full faith and credit of the U.S. government" -- which until now, has never seriously been called into question.