Daily Digest 8/6 - The Credibility Trap, Gold Fizzles Or Gold Fixed?
Schneier on Security (Chris M.)
Unfortunately, manufacturers and consumers are deceived and misled into a false sense of security by electronic credentials, codes, and biometrics. We have seen this often, even with high security locks. Our rule: electrons do not open doors; mechanical components do. If you can compromise the mechanisms then all the credentials, encryption, fingerprint readers, and other gizmos and gimmicks mean nothing.
If the CFTC in fact does 'drop' the investigation without presenting findings, one could consider that a slap in the face of the American public which on the whole asked for the investigation to be done in the first place, by the regulators who purportedly are hired and paid to serve their interests.
Profits continued to grow for ExxonMobil and Chevron, while dropping slightly for ConocoPhillips and Shell compared to last year. ExxonMobil saw a 67 percent increase in profits while Chevron enjoyed an 11 percent increase. The New York Times reported that these slightly lower profits compared to the second quarter of 2011 were linked to “international benchmark prices for oil [which] had declined by more than 7 percent in the second quarter, compared to the same period last year when turmoil in North Africa and the Middle East caused a spike in oil prices.
Our myopic egocentric view of the world keeps most from seeing the truth. Our entire financial system has been corrupted and captured by a small cabal of rich, powerful, and prominent men. It is as it always has been. History is filled with previous episodes of debt fueled manias, initiated by bankers and politicians that led to booms, fraud, panic, and ultimately crashes. The vast swath of Americans has no interest in history, financial matters or anything that requires critical thinking skills. They are focused on the latest tweet from Kim Kardashian about her impending nuptials to Kanye West, the latest rumors about the next American Idol judge or the Twilight cheating scandal.
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Gold Fizzles, Or Gold Fixed? (Dana T.)
Noting that he is “a firm believer in the view that the feds have a vested interest in keeping the gold price under wraps,” Norcini nevertheless stressed the big decline in open interest (total contracts outstanding) recently: “The gold and silver markets are currently moving lower because the hot-money crowd has currently lost interest in them and is putting its money to work in other markets for the time being as they chase profits. Markets in sideways patterns do not make money for hedge funds.”
This disaster follows other technology-related screw-ups and controversies, including the NASDAQ seizure during the Facebook (FB) IPO, a massive problem with another electronic trading system, BATS, during its IPO, and the ongoing controversy about the impact and fairness of high-frequency trading, in which hedge funds and other institutions physically locate their computer system close to the stock exchanges to gain a millisecond edge over their competitors.
“India’s basic energy shortage is compounded by the policy of selling electricity to consumers at politically correct prices,” the Hindustan Times wrote in an editorial. “The government-owned distribution monopolies in the states have all but lost their ability to buy power because their political bosses force them to sell it cheap, sometimes free, to voters.”
The two say that their Solar Bag can purify two and a half gallons of water in six hours, the same amount of time it typically takes other systems to treat much less water. Unfortunately, the bags aren’t yet being commercially produced; the two are currently looking for a backer. They say that the material costs for one Solar Bag amount to just $5, and possibly less if manufactured in bulk.
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