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Sunday, March 30, 2014

Raymond Chandler evening: Has Benjamin Black taken over John Banville?

John Banville’s detective noir takes a Philip Marlowe turn. Is one of our greatest novelists just genre-slumming?

Salon.com

Raymond Chandler evening: Has Benjamin Black taken over John Banville?

Thursday, March 20, 2014

CNN Asks Whether BLACK HOLE Swallowed Malaysian Airlines Flight 370

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CNN Asks Whether BLACK HOLE Swallowed Malaysian Airlines Flight 370

Tuesday, March 18, 2014

Black Part Of Town Moves Across Town

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Black Part Of Town Moves Across Town

Thursday, March 13, 2014

The Black Financial and Fraud Report

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The Black Financial and Fraud Report

Tuesday, March 11, 2014

Unreal CNN Op-Ed Column Highlights Why Miami-Dade School Superintendent Pressured Police To Hide Criminal Conduct of Black Male Students…

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Unreal CNN Op-Ed Column Highlights Why Miami-Dade School Superintendent Pressured Police To Hide Criminal Conduct of Black Male Students…

Thursday, March 6, 2014

USS Truxtun – Guided Missile Destroyer – Headed To Black Sea Amid Ukraine/Crimea Crisis…

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USS Truxtun – Guided Missile Destroyer – Headed To Black Sea Amid Ukraine/Crimea Crisis…

Tuesday, March 4, 2014

On the Romantic Era Roots of Black Metal

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On the Romantic Era Roots of Black Metal

Friday, February 28, 2014

Black Tuesday Redux? Media Predicted Economic Collapse for March 4, 2014

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Black Tuesday Redux? Media Predicted Economic Collapse for March 4, 2014

Monday, February 24, 2014

Jeff Smith: Why Black Democratic Mayors and GOP Governors Are BFFs

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Jeff Smith: Why Black Democratic Mayors and GOP Governors Are BFFs

HAA HAA: Will Another Creditanstalt Be Revealed Once The Hypo Alpe Aldria "Black Box" Is Opened?

HAA HAA: Will Another Creditanstalt Be Revealed Once The Hypo Alpe Aldria "Black Box" Is Opened?
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/02/HAA_0.jpg

Recall that the bank which precipitated the first Great Depression was Austria’s Creditanstalt, which declared bankruptcy on May 11, 1931 and which resulted in a global financial crisis, after its failure waterfalled into the chain-reaction of bank failures that marked the first systemic financial collapse. As part of CA’s rescue, Chancellor Otto Ender distributed the share of bailout costs between the Republic, the National Bank of Austria and the Rothschild family (and as a bit of historic trivia, following the Austrian Anschluss to Nazi Germany in 1938, Creditanstalt-Bankverein was targeted for a variety of reasons, leading to the arrest of Louis Nathaniel Rothschild and his imprisonment for the losses suffered by the Austrian state when the bank collapsed. Aggrieved, he emigrated to the US in 1939 after more than one year in custody).

A little over 80 years later, while the world is knee deep in explaining how snow during the 4th warmest January on record is the culprit for an abrupt and dramatic slowdown in world growth, and is following the geopolitical developments out of Crimea with great attention, the real action may once again be taking place in the small, quaint and quiet central European country, where yet another bank may be sowing the seeds of further financial mayhem.

Presenting Hypo Alpe Aldria (or “HAA” although certainly not funny as in funny HAA HAA: more shortly), a bank which in reality has been in the news for years following its nationalization in 2009 by the Austrian government to prevent a bank collapse. In fact, just last week, Austrian Chancellor Werner Faymann said the government is right to avert the collapse of Hypo Alpe-Adria-Bank International AG, as he cited the precedent of Creditanstalt, whose crash helped trigger the 1930s depression. “The crash of Creditanstalt in 1931 caused economic meltdown,” Faymann told parliament’s lower house in Vienna today. “There was a consensus in 2009 to act where necessary, to avoid the mistakes of the 1930s, to avoid a collapse by nationalizing and by installing protection measures at the European level.”

As a follow up, as Bloomberg also reports, the fate of HAA – whatever it ends up being – may have significant political consequences for the Austrian government. Again Bloomberg reports that “support for Austria’s ruling coalition is slipping five months after it won a narrow majority as inaction over the nationalized Hypo Alpe-Adria Bank International AG lifts backing for protest parties. Latest polls suggest voters are losing trust in Social Democratic Chancellor Werner Faymann and People’s Party Vice Chancellor Michael Spindelegger and warming to the euro-skeptic Freedom Party before May’s European Parliament elections. The Green and Neos parties also stand to gain, said Hubert Sickinger, a political scientist at the University of Vienna.”

“The ruling parties have a problem,” Sickinger said in an interview. “They postponed the Hypo Alpe ‘dead bank’ problem hoping that the economy would change but they’ve known since early 2013 that this wouldn’t help.”

One party that has been quite vocal on the issue of HAA is the Austrian Freedom Party nationalists, who seek to restrict immigration, and which has the most to gain from detouring the status quo as they would finish first in the EU parliamentary election, according to a Feb. 14 Gallup poll commissioned by the Oesterreich newspaper. The Freedom Party under deceased leader Joerg Haider helped build Hypo Alpe from a regional lender into one of the biggest banks in the Balkans.

“The European elections will be payback day” over the government’s handling of Hypo Alpe, said Franz Schellhorn, director of Agenda Austria, a Vienna-based research group.

“Anger is growing,” Schellhorn said in an interview today. “This black box has to be opened to see what is going on inside.”

It is the “opening of this black box” that suddenly has the entire investment community on edge, even if most of them hope the story simply goes away as it has for the past five years. Only this time it may be impossible to once again kick the can, er, box.

And while the legacy story of the post-bail out HAA may be known, it is the recent developments that are largely unknown and where the risks lie. This can be seen in the recent dramatic drop in HAA bond prices.

So why should people care about HAA? Bank of America explains:

The real surprise of the Hypo Alpe Adria (HAA) situation is not that bondholders may lose money, but the sight of the third richest country in Europe by per capita income apparently looking for ways out of paying what are clearly guaranteed debts of a 100% nationalized bank, for HAA debt is guaranteed by the Austrian State of Carinthia under a deficiency guarantee. The Austrian Finance Minister may be targeting a contribution from bondholders, according to reports on Bloomberg on Friday, We would consider it an astonishing turn of events if this actually ever came to pass, with wide-ranging negative implications for investors in not just Austria but potentially Europe as a whole.

What are the other implications from a potential HAA fallout? Here are the cliff notes:

Direct impacts: other Austrian banks?

Erste Bank and RBI will likely trade as proxies in any negative newsflow which could pressure their spreads. They aren’t really affected, though, in our view.

Indirect: negative for marginal banks

The Carinthia guarantee is a throwback to a very different banking world – when banks enjoyed implicit and explicit institutional support. Those days are over. We underline
that we have moved to a bail-in regime where investors will contribute to the costs of bank clean-up. This has implications for other very marginal banks e.g. the Cooperative Bank in the UK which we think is struggling.

Why the fuss? Who pays for HAA?

The European Commission in its decision on State Aid (dated 3rd Sept 2013) puts the capital need at €5.4bn in a stressed scenario. Liquidity needs are put at up to €3.3bn, meaning that the total outlay could be as high as an extra €8.7bn, in addition to the billions that have already been committed by the current and former shareholders. HAA’s total assets as of June 2013 were ‘only’ €31.3bn, recall.

What kind of outcomes for HAA?

We struggle to see how those positing bondholder losses get around the guarantee from Carinthia and all that implies. However, with lower cash prices in many of the bonds, perhaps the way forward opens up for e.g. substitution (of Austria for Carinthia) at a discount. There may also be the time value of return of principal to factor in.

Negative outcomes: maybe tough to do

If the Austrian Government decides to be tough, then the negative scenarios for HAA bondholders are potentially many. The Government may be somewhat hampered however by the fact that HAA bonds under the 2006 Prospectus are issued under German Law.

* * *

For the extended, and must read, notes on what Hypo may lead to, here is the full note from Bank of America’s Richard Thomas:

Funny HAA HAA or funny peculiar? Implications of Hypo Alpe Adria

HAA – the implications

The emerging crisis re: how to resolve Austria’s Hypo Alpe Adria (HAA) looks like it’s already one destined for the textbooks.

It has been rumbling around in our ‘bank peripheral vision’ for years as a problem child but now seems to be coming to a head because of what appears to be increased political pressure for a solution that potentially involves the imposition of senior bondholder losses in the mix. As such, we need to look at it to see what read-across, if any, there is to other European banks, as it seems to represent a hardening of attitudes to bank resolution amongst one of Europe’s richest countries.

We do not express an opinion or investment recommendation on the securities of HAA itself. Using conventional bank analysis, we believe that HAA is potentially uninvestable not only because of its evident non-viability and the lack of appetite to save it but also because of the allegations of past misconduct, as widely reported in the press, and what appears to be ongoing incompetence e.g. leasing invoicing ‘irregularities’ in Italy provided against as recently as in 1H13 numbers. The outcome for bondholders will ultimately be based on Austria’s view of its obligations and how it deals with the Carinthia guarantee, in our view. We expect that prices will therefore trade according to the last comment from someone important – highly unpredictable. For example, they were down on Friday following comments from the Austrian FinMin, but up this morning on comments over the weekend from the Head of the Austrian Central Bank. A final decision on what happens could be many months out.

For us, the shock of the current situation is not so much about bail-in being applied in the case of a failed bank – like most credit investors, we are used to this by now. The real surprise of the situation is the sight of the third richest country in Europe by per capita income apparently trying to manoeuvre out of paying what are clearly guaranteed debts (HAA debt is guaranteed by the State of Carinthia). We would consider it an astonishing turn of events if this actually ever came to pass, with wide ranging negative implications for investors in not just Austria but Europe as a whole.

Direct implications?

The read across from HAA to other banks is weak, in our view. However, there are a few implications to highlight which may impact spreads.

The most directly impacted bank would seem to be Bayerische Landesbank (BYLAN), former owner of the bank and where there is still some outstanding exposure. BofAML analyst Jeroen Julius talked about this in his note on BYLAN last week here. We remain Underweight-70% the BYLAN 5.75% T2 bonds. There is still an outstanding line of €2.3bn from BYLAN to HAA of which we understand €1.8bn was due at end 2013 – by March (if not sooner) then this will need to move to an impaired classification. HAA is saying that these monies are an equity substitute and are trying to claw back €2.3bn already repaid. Our view is that BYLAN may sacrifice some of the outstanding amount in any settlement but seem unlikely to have to pay back the repaid amount. In the meantime, it seems that they do have a say in some of the levers which Austria may want to use in resolving HAA, so their negotiating stance looks solid.

Other widely traded banks where spreads could come under pressure are Erste Bank and RBI. We will likely see these banks trade as proxies in any negative newsflow which could pressure their spreads – their illiquid CDS is probably already trading some 10-15bps wider in senior and ~13bps wider in sub CDS. These banks should be much more sensitive to negative news from Central and Eastern Europe rather than Austria though, in our view, given their focus on emerging economies.

RBI’s exposure to Austria reflects its domicile and the corporate ties between Austrian companies and the EE corporates where most of RBI’s operations are placed. It does not have direct exposure to the Austrian complex in the way that e.g. BAWAG or Erste Bank have. The RBIAV 6% is probably down a point from its highs in the last week or so. We see the impact on RBI as quite tangential: if Austria takes a tough stance with bondholders, it’s more negative for sentiment on the banks, given that it implies a reduced sovereign exposure – so hardly negative for the sovereign from e.g. higher debt levels, albeit lower contingent liabilities.

About half of Erste Bank’s credit risk exposure is to Austria. It is therefore more of an ‘Austrian’ bank than RBI but that’s not really the problem here, in our view.

We are still very comfortable with RBI at this point, especially given the recent capital increase. However, we recommend reducing risk by switching into lower cash priced bonds versus higher cash price bonds. That means out of e.g. the 6.625% bond with a cash price of about €113 into lower cash priced bonds like the 6% (€106.5) or the 5.163%, though this is a much more illiquid security. We downgrade the 6.625% bonds to Underweight-30%.

Indirect implications?

The wider implications of what happens in the HAA case include:

If we do move to some kind of forced loss imposition from Austria on these bonds, then it probably isn’t a good moment for bank risk (or indeed European risk). However, as we explain, in this case loss imposition is rather tricky to do, given the existence of the guarantees from Carinthia.

Whatever happens, we see the HAA situation as reflecting a growing impatience with marginal and near-failing banks and that a hard line is likely to be followed in resolving them. It underlines that we have moved to a bail-in regime where investors will contribute to the costs of bank clean-up. This has implications for other very marginal banks e.g. the Cooperative Bank in the UK which we think is struggling. Underweight-70% the 11% T2 bonds of the Coop Bank at £123.

The Carinthia guarantee is a throwback to a very different banking world – when banks enjoyed implicit and explicit institutional support. Those days are over. Such support often allowed excessive expansion on the back of cheap funding – we can point to the continued need for adjustment in the Landesbank sector for evidence of that.

One final point: in our view there would be a negative read-across to the German Landesbanken more generally if a way was found around the deficiency guarantee in this case. The Landesbanken heavily rely on State guarantees. For example, HSH Nordbank has a €10bn guarantee (that helps its capital position) form Hamburg and Schleswig- Holstein.

Funny HAA HAA or funny peculiar?

A special case?

We think there is a good argument for saying that HAA is a special case amongst European banks. One can read its downfall and subsequent full nationalization as a familiar juxtaposition of overexpansion (in the former Yugoslavia) without sufficient risk controls being in place as a result of too cheap funding, owing to its funding guarantee from the Austrian State of Carinthia (currently rated A2 by Moody’s). Yet the narrative is worsened by allegations of serious past misconduct involving money laundering, fraud and possibly murder. See for example The Economist, Sept 9th 2010 or the New York Times, October 20th 2010.

Whilst mismanagement may well have been a feature of some European banks before the crisis; we would hesitate to attribute this level of alleged misconduct, however, to even many of the most stressed European banks. The nature of the allegations, in our view, serves to underline Austrian public antipathy for taxpayers having to pay for the continuing losses at the bank. It also differentiates it sharply from other European, and of course Austrian, banks. HAA’s situation and alleged misconduct is simply too severe to have systemic implications for other Austrian banks, in our view.

Could there be a haircut? Wait!

Bloomberg reports that two thirds of the Austrian public is against the use of further public monies being used to prop up the bank. With such a powerful consensus against such a move and elections next year, it’s not surprising that recently the rhetoric has turned firmly towards finding solutions for HAA that involve imposing losses somewhere – anywhere – other than at the door of the Austrian taxpayer. Hence, the comments from the Finance Minister Spindelegger on Feb 21 that Austria was looking at ways to get bondholders to contribute.

So far, so straightforward: the only problem is that the bulk of HAA senior bonds enjoy a deficiency guarantee from the State of Carinthia. This complicates the burden sharing. We note, by the way, that the EC ruling on State Aid for HAA made no mention of senior bondholder losses at all. Is it really possible to get around the deficiency guarantee and impose losses?

Our understanding is that the deficiency guarantee is not quite like other guarantees. It’s this ‘gap’ that allowed Moody’s to downgrade HAA to Baa2 from A1 on Feb 14. It means that a creditor must have attempted in vain to satisfy his or her claims against (in this case) HAA first before he can use the guarantee, though not if bankruptcy proceedings were already started. Non-payment alone may not be sufficient to invoke the guarantee, absent due process. Even so, it still looks to us that it’s just a matter of time before creditors could ask Carinthia to satisfy their claims. It seems doubtful that the State could afford to perform on the guarantee however with the €12.3bn or more of bonds being many multiples of Carinthia’s income, according to Moody’s. It seems hardly credible that we could be looking at bankruptcy of a Federal State of one of the richest countries in Europe.

Hence, the dilemma. This really would be a new departure for a European country – we’ve had bondholder haircuts before, but not on instruments guaranteed by a governmental entity like Carinthia.

What’s the size of the hole at HAA?

The European Commission in its decision on State Aid (dated 3rd Sept 2013) puts the capital need at €5.4bn in its stressed, or worst case, scenario. Similarly, the liquidity needs are put at €3.3bn in the stressed scenario, assuming that the above capital is provided in cash, meaning that the total outlay could be as high as €8.7bn, in addition to the billions that have already been committed by the current and former shareholders. HAA’s total assets as of June 2013 were ‘only’ €31.3bn, remember, and of this, €3.5bn was already earmarked as for disposal – giving a pro forma number of €27.8bn. To put this in further context, existing capital resources at HAA (equity plus sub debt) are €3bn, and provisions existing already are €3.5bn. Loans net of provisions are ~€17bn.

The now former Chairman of the Bank, Mr. Liebscher, has previously commented that HAA could require up to €4bn of further capital (‘only €400mn a year over 10 years’). Capital needs could vary considerably if assets were transferred out of the regulatory capital environment e.g. to an asset management company, since these require much less capital. We note too that Weiner has reported that the loss for the year at HAA may have grown to €1.8bn (from the €0.8bn at half year 2013) – we think it’s likely that is already reflected in the EC’s numbers though we’re not completely sure.

The €5.4bn of capital needs calculated by the EC could be higher or lower therefore but let’s use it as a basis for thinking about outcomes. Are there any offsets? Certainly,
HAA believes so. It is claiming that €4.6bn of funds extended to the bank in 2008 by BayernLB is an equity substitution under Austrian Law. €2.3bn of this is still outstanding (it’s not being serviced by HAA) but HAA has applied to the Munich Regional Court for a return of amounts that they’ve already paid back. Our core case is that BayernLB will lose some of this money (if only to settle the case) but we have no real idea how much they and HAA would settle at, of course, or if they will settle at all.

How (much) could bondholders pay?

Is it conceivable that the senior bondholders could be expected to contribute a sizeable chunk of the €5.4bn? As of end-June 2013, issued bonds at HAA totaled €11.1bn (we exclude Pfandbriefe); we don’t have data for any redemptions in 2H13. We do however know that there is a very substantial redemption of senior debt on March 17th of €750m (the HAA 3.75% bond). Again, the interim financials showed a cash balance of €2.6bn at the bank which on its own should comfortably cover the repayment. We are more skeptical about HAA’s liquidity, given the continued deterioration of its financial position implied by the reported further €1bn loss in 2H13. Perhaps it is this that is focusing the attention of Austrian policymakers on bondholders.

Repaying this bond would be a substantial cash outflow from the bank and bondholders would be getting par – these bonds are currently quoted at a mid-cash price of ~€96 but the bid/offer is something like 5 points, underlining the huge uncertainty. But it would also probably be taken as a pointer towards future treatment of bonds and so, if repaid, would likely positively impact prices.

The €5.4bn additional capital need would imply a forced senior bondholder haircut of anything from 20% upwards in our view depending on what is considered the pool of bailin-able liabilities, though admittedly we find it quite hard to believe this will be the actual outcome at this point. This number could be kept down not least by any settlement with BayernLB – and we can’t really imagine that Austria will make a zero contribution here. Even the €5.4bn total capital needs number calculated by the EC is ‘only’ about 2% of Austrian GDP.

We also struggle to see how those positing bondholder losses get around the guarantee from Carinthia and all that implies. It’s this, we think, that is the really interesting part for European bank bondholders. We have seen headlines suggesting that the Republic of Austria would substitute itself as guarantor for the bonds, subject to bondholders agreeing to a substantial haircut. When the bonds were at par, that looked really unlikely, but with e.g. the 2016 and 2017 bonds having traded down so dramatically in the last few days (currently quoted with a cash price at around €85-86), perhaps the conditions are beginning to evolve for this type of liability management.

Ultimately, we think it’s unlikely that Carinthia could pay back bondholders and remain solvent itself – as Moody’s highlights in its downgrade of the State on Feb 14 2014, the debt outstanding is some six times Carinthia’s 2013 budgeted operating revenue. Recall that HAA is 100% owned by the Republic of Austria – it seems unlikely that the shareholder would enforce the insolvency of a regional State without acting itself.

We also wonder if there is some leeway in terms of the timing difference implied by the final payment under the deficiency guarantee – how prompt might this be? Months? Years? Longer? If it could be demonstrated that bondholders would have to wait many years before getting any of their principal back, then perhaps there is the basis for an offer that gives investors liquidity today, albeit at a discounted price.

What could induce bondholders to agree to any changes?

We suspect that this is currently under consideration – there likely is little limit to the scenarios that could be conceived, but it all depends on the view the Republic takes of itself in the markets and its concerns about any likely fallout from its actions. Freezing the liabilities of the bank and the guarantee? Rescission of the guarantee? Anything is possible but perhaps some of these worst scenarios are not the most probable. However, what is clear is that the outcome for bondholders, as we have seen before in these haircut scenarios, is highly unpredictable and politicized.

In spite of the Austrian Finance Minister’s comments to the contrary, we are of the view that most HAA bonds are still with the original, investment grade, investor base. We believe that the rotation into ‘trader’ or ‘hot money’ hands is probably only still at the beginning – only recently have we heard that blocks of bonds have been coming out, rather than the trading of very small amounts. This could change rapidly in the coming weeks if Austria decides to step up the bondholder loss rhetoric of course but at this point, it would be ordinary money managers, we think, who would be absorbing most of the losses, not hot money or speculators.

As an added twist, we note that HAA bonds issued under the August 2006 Prospectus are under German Law (rather than Austrian). Again, this points in the direction of either repayment of the bonds under the guarantee, or a negotiated settlement with bondholders, rather than the imposition of an arrangement by the Austrian Government, since legally they may not have the flexibility to do much else.

* * *

In conclusion all we have to add is that it would indeed be supremely ironic if the “strong” foreign law bond indenture would be tested, and breached, not by Greek bonds, as so many expected in late 2011 and early 2012, but by one of the last contries in Europe which is still AAA-rated. We would find it less ironic if the next leg of the global financial crisis was once again unleashed by an Austrian bank: after all history does rhyme…

Zero Hedge

Read more about HAA HAA: Will Another Creditanstalt Be Revealed Once The Hypo Alpe Aldria "Black Box" Is Opened? and other interesting subjects concerning Economy at TheDailyNewsReport.com

Friday, February 21, 2014

NYC Health Report: More Black Babies Aborted Than Born in New York City

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NYC Health Report: More Black Babies Aborted Than Born in New York City

Saturday, February 15, 2014

Chinese film "Black Coal, Thin Ice" wins Berlinale"s Golden Bear

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Wednesday, February 12, 2014

DARPA Continues To Push “Black Box” Brain Chip

Pentagon wants to “help” soldiers and seniors by implanting devices to trigger memories

Steve Watson
Infowars.com
February 10, 2014

The Defense Advanced Research Projects Agency (DARPA), the research arm of the military, is continuing to develop implantable brain chips, according to documents newly posted as part of the agency’s increased “transparency” policy.

The agency is seeking to develop a portable, wireless device that “must incorporate implantable probes” to record and stimulate brain activity – in effect, a memory triggering ‘black box’ device.

The process would entail placing wires inside the brain, and under the scalp, with electrical impulses fired up through a transmitter placed under the skin of the chest area.

Bloomberg first picked up the story last week, and since then several tech blogs have jumped on board, describing the technological push as part project to help injured soldiers, and part an initiative set up by the Obama administration to find treatments for brain disorders, such as Alzheimer’s.

In reality, this project has been ongoing for years, decades in fact. And given that the Pentagon war machine is spear-heading it, with $ 70m of funding, one must seriously question why the DoD suddenly gives a damn about war wounded vets, never mind everyday Americans with brain disorders.

Microchip expert Katherine Albrecht recently warned Infowars of the dangers of DARPA’s brain implant technology

The documents state that rather than aid general memory loss, such a device would enable the ability to recover “task-based motor skills” like driving cars, operating machinery, tying shoe laces or even flying planes. It would also help recover memory loss surrounding traumatic events – according to the documents.

Memory loss surrounding trauma occurs for a reason, so the individual can, at some point, slowly work back toward living a normal life. One has to wonder, from this description, whether DARPA’s brain implant, would merely facilitate “patching up”, soldiers, and sending them back out to duty, as if they were defective robots.

Indeed, that is the kind of transhumanism project that DARPA revels in. Just last year it was revealed that a DARPA team has constructed a machine that functions like a human brain and would enable robots to think independently and act autonomously.

There have also long been reports of DARPA seeking to develop technology that enables military masters to literally control the brains of soldiers and make them want to fight. A 2008 report for the US military detailed this initiative, along with possible weaponry including “Pharmacological landmines” that release chemicals to incapacitate enemy soldiers and torture techniques that involve delivering electronic pulses into the brains of terror suspects.

The report, titled “Emerging Cognitive Neuroscience and Related Technologies”, detailed by Wired and the London Guardian, was commissioned by the Defense Intelligence Agency, the intelligence wing of the Department of Defense. It contains scientific research into the workings of the human mind and suggestions for the development of new war fighting technologies based upon the findings.

In a section focusing on mind control, the report states

If we can alter the brain, why not control it? [...] One potential use involves making soldiers want to fight. Conversely, how can we disrupt the enemy’s motivation to fight? [...] How can we make people trust us more? What if we could help the brain to remove fear or pain? Is there a way to make the enemy obey our commands?

It concludes that “drugs can be utilized to achieve abnormal, diseased, or disordered psychology” and also suggests that scanners able to read the intentions or memories of soldiers could be developed.

The report clearly does not rule out the use of such mind scanning technology on civilians as it suggests that “In situations where it is important to win the hearts and minds of the local populace, it would be useful to know if they understand the information being given them.”

It also suggests that the technology will one day have applications in counter-terrorism and crime-fighting and “might be good enough to help identify people at a checkpoint or counter who are afraid or anxious.”

The notion of “recording” brain activity is also something that DARPA has long sought to master. The concept may seem completely outlandish, yet it has been the central focus of DARPA activities for some time with projects such as LifeLog, which seeks to gain a multimedia, digital record of everywhere a person goes and everything they see, hear, read, say and touch.

Wired Magazine has reported:

On the surface, the project seems like the latest in a long line of DARPA’s “blue sky” research efforts, most of which never make it out of the lab. But DARPA is currently asking businesses and universities for research proposals to begin moving LifeLog forward.

“What national security experts and civil libertarians want to know is, why would the Defense Department want to do such a thing?” the article asks. The answer lies in the stated goal of the US military – “Total Spectrum Dominance”.

Furthermore, assertions that the neuro technology would not be in any way dominant over a person’s capacity to think, does not tally with DARPA’s Brain Machine Interfaces enterprise, a $ 24 million project reported on in the August 5, 2003 Boston Globe.

The project is developing technology that “promises to directly read thoughts from a living brain – and even instill thoughts as well… It does not take much imagination to see in this the makings of a matrix-like cyberpunk dystopia: chips that impose false memories, machines that scan for wayward thoughts, cognitively augmented government security forces that impose a ruthless order on a recalcitrant population.” The Globe reported.

Government funded advances in neurotechnology which also focus on developing the ability to essentially read people’s minds should also set alarm bells ringing.

It is also well documented that the military and the federal government have been dabbling in mind control and manipulation experimentation for decades.

Brain implants are a very scary proposition, however, and selling such a thing to veterans, and especially to the wider American populace, may be a harder task than selling them a pill to pop. Which is why some, including one former DARPA director and now a Google executive, have also been developing devices such as edible chips and e-tattoos.

Transhumanism is trendy!

—————————————————————-

Steve Watson is the London based writer and editor for Alex Jones’ Infowars.com, and Prisonplanet.com. He has a Masters Degree in International Relations from the School of Politics at The University of Nottingham, and a Bachelor Of Arts Degree in Literature and Creative Writing from Nottingham Trent University.

This article was posted: Monday, February 10, 2014 at 12:47 pm

Tags: eugenics, science, technology, war

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DARPA Continues To Push “Black Box” Brain Chip

Tuesday, February 11, 2014

Shirley Temple Black, Screen Darling, Dies at 85

Arts|Shirley Temple Black, Screen Star, Dies at 85

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Shirley Temple Black, who as a dimpled, precocious and determined little girl in the 1930s sang and tap-danced her way to a height of Hollywood stardom and worldwide fame that no other child has reached, died on Monday night at her home in Woodside, Calif. She was 85.

Her publicist, Cheryl Kagan, confirmed her death.

Ms. Black returned to the spotlight in the 1960s in the surprising new role of diplomat, but in the popular imagination she would always be America’s darling of the Depression years, when in 23 motion pictures her sparkling personality and sunny optimism lifted spirits and made her famous. From 1935 to 1939 she was the most popular movie star in America, with Clark Gable a distant second. She received more mail than Greta Garbo and was photographed more often than President Franklin D. Roosevelt.

The little girl with 56 perfect blonde ringlets and an air of relentless determination was so precocious that the usually unflappable Adolphe Menjou, her co-star in her first big hit, “Little Miss Marker,” described her as “an Ethel Barrymore at 6” and said she was “making a stooge out of me.”

Shirley Temple Agence France-Presse — Getty Images

When she turned from a magical child into a teenager, audience interest slackened, and she retired from the screen at 22. But instead of retreating into nostalgia, she created a successful second career for herself.

After marrying Charles Alden Black in 1950, she became a prominent Republican fund-raiser. She was appointed a delegate to the United Nations General Assembly by President Richard M. Nixon in 1969. She went on to win wide respect as the United States ambassador to Ghana from 1974 to 1976, was President Gerald R. Ford’s chief of protocol in 1976 and 1977, and became President George H. W. Bush’s ambassador to Czechoslovakia in 1989, serving there during the fall of Communism in Eastern Europe.

After winning an honorary Academy Award at the age of 6 and earning $ 3 million before puberty, Shirley Temple grew up to be a level-headed adult. When her cancerous left breast was removed in 1972, at a time when operations for cancer were shrouded in secrecy, she held a news conference in her hospital room to speak out about her mastectomy and to urge women discovering breast lumps not to “sit home and be afraid.” She is widely credited with helping to make it acceptable to talk about breast cancer.

Shirley Jane Temple was born in Santa Monica, Calif., on April 23, 1928. From the beginning, she and her mother, Gertrude, were a team (“I was absolutely bathed in love,” she remembered); her movie career was their joint invention. Her precocious success was due to both her own charm and her mother’s persistence.

A statement released by her family said, “We salute her for a life of remarkable achievements as an actor, as a diplomat, and most importantly as our beloved mother, grandmother, great-grandmother, and adored wife for fifty-five years of the late and much missed Charles Alden Black.”

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Shirley Temple Black, Screen Darling, Dies at 85

Sunday, February 9, 2014

Judge Rules White Girl Will Be Tried As Black Adult

Judge Rules White Girl Will Be Tried As Black Adult
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Read more about Judge Rules White Girl Will Be Tried As Black Adult and other interesting subjects concerning Humor at TheDailyNewsReport.com

Thursday, February 6, 2014

Black Openly Gay Judge Would Be Federal Bench"s First

Florida Sen. Marco Rubio has indicated he won

hide captionFlorida Sen. Marco Rubio has indicated he won’t block the nomination of Judge Darrin Gayles, who would be the first openly gay black man to serve on the federal bench.

Darrin P. Gayles, a Florida state circuit judge, appears to be on track to become the nation’s first openly gay black man to serve on the federal bench.

President Obama on Wednesday nominated Gayles, a former assistant U.S. attorney, to fill a vacancy on the U.S. District Court for the Southern District of Florida.

His nomination, among four made by Obama, comes months after GOP Sen. Marco Rubio of Florida used his home-state prerogative to block the president’s nomination of circuit judge William Thomas of Miami, who is also gay and black, for the same position. Rubio initially backed Thomas’ nomination.

That reversal appears unlikely to be Gayles’ fate.

In an emailed statement, Rubio said he welcomes the president’s nomination, adding that: “I do not anticipate having an objection to moving forward on any of these nominations pending the outcome of the customary background check conducted on every nominee.”

Rubio, however, said he was disappointed that the president took a pass on Republican finalists for the bench who were “jointly suggested by Sen. [Bill] Nelson and myself.” Nelson is a Florida Democrat.

Last year, Rubio withdrew his support for Thomas’ nomination, citing concerns about his fitness for the position. He questioned sentences the judge meted out in a hit-and-run case, and Thomas’ decision to disallow a murder case confession because he found the suspects hadn’t been properly informed of their Miranda rights.

Thomas’ supporters asserted that he was being blocked from the higher bench because he’s black and openly gay.

“We hope Sen. Rubio doesn’t change his mind on [Gayles] as well,” said Fred Sainz of the Human Rights Campaign, one of the nation’s largest LGBT rights organizations.

Steve Thai of the Gay and Lesbian Victory Institute, which works to get gay Americans elected to office and appointed to federal positions, lauded Gayles’ nomination.

“We commend the administration for nominating a qualified jurist who will also add diversity to the federal bench,” Thai said in a statement. “If confirmed, Judge Gayles will be the nation’s first black, openly gay federal judge, and he will reflect the talent and commitment that exists in communities that are underrepresented in public service.”

According to a bio released by the White House Wednesday, Gayles has served as a circuit judge since 2011 when he was appointed by then-Gov. Charlie Crist. He previously was a county judge, an assistant U.S. attorney for the Southern District of Florida, and assistant district counsel at the U.S. Immigration and Naturalization Service.

He graduated from Howard University and received his law degree from George Washington University.

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Microchip expert Katherine Albrecht recently warned Infowars of the dangers of DARPA’s brain implant technology

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Tuesday, February 11, 2014

Arts|Shirley Temple Black, Screen Star, Dies at 85

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Sunday, February 9, 2014

Thursday, February 6, 2014