Sunday 22 March 2015

New System for Police to “Detect Gunshots” is Also Recording Your Private Conversations



It’s been almost a week since New York Police Department deployed a new ShotSpotter gunshot detection system. However, the innovation has raised privacy concerns among New Yorkers while tracking loud bangs, the system records private conversations.
Questions arose after New York Police Department deployed 300 hidden microphone sensors around the city. They are aimed at identifying the sound of gunshots, and then activate nearby cameras and immediately alert law enforcement officials.

The two-year pilot program will cost New York a total of $1.5million annually.
Both the mayor Bill de Blasio and police commissioner William Bratton say that ShotSpotter should help officers to respond more quickly to shootings. According to statistics, in 75 percent of cases when people hear a gun shot sound, they do not report it to the police.
The ShotSpotter is aimed at fixing that. Its sensors are connected to thousands of cameras set up around the city as part of the its Domain Awareness System, an all-seeing intelligence-analysis complex that collects and analyzes data captured by surveillance cameras, gunshot detectors, license plate readers, Geographic Information Systems mapping and social media feeds.

Four years ago the department tested another system, but rejected the technology, as it could not identify the difference between real gunfire and similar sounds, like a car backfiring. Today’s system is said to be more sensitive.
Police commissioner William Bratton, who used to be a member of ShotSpotter’s board of directors, before returning to the NYPD in January 2014, says in the future, ShotSpotter will be able to identify which type of a gun was used, and whether multiple shots were fired from different guns.
But the system and especially how capable it is of recording people’s voices has raised serious privacy concerns.
“The concern is that if conversations are capable of being intercepted, that’s a bigger problem. That’s like a Big Brother. And that’s not about one’s safety that’s just now meddling everyday conversations of people. And the question is what police is going to do with those conversations?” lawyer Frank Camera told RT.
A display of the NYPD ShotSpotter gunfire-detection system is seen in New York March 16, 2015 (Reuters / Shannon Stapleton)
A display of the NYPD ShotSpotter gunfire-detection system is seen in New York March 16, 2015 (Reuters / Shannon Stapleton)
In January, Camera defended two people arrested after a loud street quarrel ended with fatal shooting the previous month. They were detained and accused, with the ShotSpotter recording of the altercation – in which both men can be heard arguing – likely to be used as evidence.
Camera says the talk was recorded very clearly, while the detecting system was aimed only for gunshots.
Devices have been installed across 15 square miles in New York districts with both the highest rate of shots fired and gunshot victims. But what disturbs ordinary New York residents is that it’s unclear exactly where they are placed. A draft law approved by New York City Council obliges police to make quarterly reports specifying what exactly ShotSpotters recorded. And it’s still unknown if and how his information will be used later.

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SOURCE: RT

Friday 20 March 2015

The Order of Chaeronea

GCIves
The Order of Chaeronea
Poet, radical freethinker, and early gay rights activist George Cecil Ives founded a secret society called the Order of Chaeronea, which was established to end the oppression of homosexuals and offer a safe space for gay men to communicate. It was named after the Battle of Chaeronea (338 BC), where hundreds of men from the Sacred Band of Thebes, all of them lovers, were killed. “An elaborate system of rituals, ceremonies, a service of initiation, seals, codes, and passwords were used by the members. The Secret Society became a worldwide organization and Ives took advantage of every opportunity to spread the word about the “Cause.” Ives unsuccessfully tried to recruit Oscar Wilde after they met at the Author’s Club in 1892. Just a few years later, Wilde’s sexuality would land him on trial for gross indecency, after which he was imprisoned.

The shadow network


For the last two decades, US foreign and intelligence strategies have resulted in a global ‘war on terror’ consisting of prolonged military invasions in the Muslim world and comprehensive surveillance of civilian populations. These strategies have been incubated, if not dictated, by a secret network inside and beyond the Pentagon
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Established under the Clinton administration, consolidated under Bush, and firmly entrenched under Obama, this bipartisan network of mostly neoconservative ideologues sealed its dominion inside the US Department of Defense (DoD) by the dawn of 2015, through the operation of an obscure corporate entity outside the Pentagon, but run by the Pentagon.
In 1999, the CIA created its own venture capital investment firm, In-Q-Tel, to fund promising start-ups that might create technologies useful for intelligence agencies. But the inspiration for In-Q-Tel came earlier, when the Pentagon set up its own private sector outfit.
Known as the ‘Highlands Forum,’ this private network has operated as a bridge between the Pentagon and powerful American elites outside the military since the mid-1990s. Despite changes in civilian administrations, the network around the Highlands Forum has become increasingly successful in dominating US defense policy.
Giant defense contractors like Booz Allen Hamilton and Science Applications International Corporation are sometimes referred to as the ‘shadow intelligence community’ due to the revolving doors between them and government, and their capacity to simultaneously influence and profit from defense policy. But while these contractors compete for power and money, they also collaborate where it counts.

Wednesday 18 March 2015

FBI would rather shield its surveillance powers from judicial review than prosecute criminals



A non-disclosure agreement signed by the Erie County Sheriff's Office shows that the FBI would rather protect its power to use stingrays from public scrutiny and constitutional challenge than prosecute criminals.
Writing to order the release of documents sought by the NYCLU in a public records lawsuit against the Sheriff's Office, Judge Patrick NeMoyer describes the content of a non-disclosure agreement pertaining to cell site simulator technology.
[T]he Sheriff’s Office is instructed, upon the request of the FBI, to seek dismissal of a criminal prosecution…in lieu of making any possibly compromising public or even case-related revelations of any information concerning the cell site simulator or its use.
In February, The Washington Post published a story about a person who personally benefited from the government's refusal to openly discuss its use of stingrays. In a Florida armed robbery case, prosecutors offered a defendant "the deal of the century" instead of submitting evidence about its use of a stingray in court. Facing years in prison, the man accepted a plea of six months probation after his lawyer demanded that prosecutors present evidence about police use of the stingray.
In light of the New York judge's description of the non-disclosure agreement signed by Eerie County's Sheriff, it seems highly likely the Florida robbery suspect benefited from a well established, federal policy—not a one off decision based on local prosecutorial discretion.
The FBI's interest in shielding stingray surveillance from public scrutiny and judicial review hasn't prevented a relatively open conversation in media and privacy circles about the widespread law enforcement use of these powerful tools. It has, on the other hand, prevented courts from ruling on the constitutionality of stingray spying. Just last week, Virginia became the first state to pass a law explicitly requiring a warrant for stingray surveillance.
The Eerie County judge who ruled in favor of the NYCLU in the state records lawsuit revealed a lot of information about stingrays in his decision, made public today. Among other things, Judge NeMoyer writes that documents submitted by the Sheriff's office for his review show that the police used their stingray equipment 47 times between May 1, 2010 and October 3, 2014. According to the judge's description of documents describing these searches, the Eerie County Sheriff's Office and local law enforcement who used their stingray only obtained a court order to do so once, in the October 2014 case.
Stay tuned for more information about the Eerie County Sheriff's deployment of stingrays, as the documents described by the judge become available for public review. And congratulations to the New York Civil Liberties Union on their victory. Happy Sunshine Week!

Tuesday 17 March 2015

Every year, COWS kill more people than SHARKS,yet nobody ever makes a horror movie about them


Cows Are Deadlier Than You Ever Knew
Every year, cows kill more people than sharks. And yet nobody ever makes a horror movie about them, and there's no Cow Week. These deadly beasts have managed to stay completely under the radar... until now. Find out just why cows are so deadly.

Deliberate Attacks on People

In the United States, the CDC estimates that about twenty-two people are killed by cows each year, and of those cow attacks, seventy-five percent were known to be deliberate attacks. One third of the killings were committed by cows that had previously displayed aggressive behavior.
People know that bulls are dangerous, and it's true. When animal behaviorists analyzed 21 cases that occurred across a four-state area, they found that bulls were responsible for ten of the deaths. Cows were responsible for six deaths. What's really chilling is that, in five cases, people were killed by multiple cows in group attacks.
Group attacks can be surprisingly well-coordinated. When they're feeling defensive, cows will gather in a circle, all facing outwards, lowering their heads and stamping the ground. When they're feeling offensive, certain cows lead the charge. One man, who was attacked while walking his dog along a path, reported, "I fell forwards and rolled into a ball and every time I tried to get up they jumped on me; they were rolling me along the hill with their legs trying to get me to open up. There were seven or eight cows. There were a couple leaders."
Even the people who survive cow attacks rarely brush them off. In 2014, a mountaineer and cyclist was leading a race through a pasture when a group of cows attacked him. He received fractures on eight ribs, a shoulder, and a part of his spine. A woman, attacked the same year, got six broken ribs and a punctured lung. Cows mostly trample and kick people, but if they get their head beneath their victim they can literally throw a person into the air and let them fall back down on the ground.
Humans may not be able to trust cattle, but non-humans have been known to employ cows as security. Sheep raised with cows will run into the center of the cow-herd when faced with a threat, knowing that if things get hairy, the cows will take care of business.

Battle Cows

Because they move slowly and require a lot of grass and water, cows are impractical standard weapons of war. That hasn't stopped people from using them as improvised weapons, especially if the other side was dumb enough to bring them along. A herd of cows' potential to do damage is even more infamous. Anyone with even a passing familiarity with old Westerns knows what's going to happen when someone shouts, "Stampede!"
Cows Are Deadlier Than You Ever Knew
George Armstrong Custer wrote a memoir in which he described Native Americans inducing cattle to stampede as either a distraction tactic or an outright attack. No matter what the purpose, soldiers knew that they had to take the cattle in hand before doing anything else. Another book, tellingly entitled The Uncivilized Races of Men in All Countries of the World and written in 1878, recounts the conflict between the Boers and the Zulu. The author, Reverend John George Wood writes, "The Zulus have sometimes outwitted the Boers, by introducing inside of a camp at night, scouts, who speared the cattle frightening them into a stampede." Both books insist this is not the right way to fight a war, but admit the tactic is a good one. A stampede of cows is a scary thing.

Kamikaze Cows

Cows don't have to intend anyone's death in order to kill them. Any fifteen hundred pound animal can do a lot of damage, which is why some motorists, driving beside cliffs in rural country, have been amused by signs warning them about falling cows. It wasn't so much of a joke when, in Switzerland, over the course of a few weeks, twenty-eight cows either fell or jumped over a cliff. A man in Brazil was killed by a cow that fell on his car. And, in Indiana, drivers along a highway were startled when a trailer on an overpass tipped over and rained cows on them. A bull survived the fall and ran amok on the highway, attacking a tow-truck driver.

The Summer of the Cow

Many people think that the book Jaws (which became an iconic movie) was based on the events that occurred in July of 1916. Over twelve days, five people along the coast of New Jersey were attacked by sharks. Four of them died. It was called "the summer of the shark."
People would be embarrassed to call summer of 2009 "the summer of the cow," but in eight weeks, in Britain alone, cows racked up the same number of casualties. (That was also the summer that cows started jumping off the cliff in Switzerland.)
Cows Are Deadlier Than You Ever Knew
Two of the victims were walking their dogs — and dogs are often a factor in cow attacks. Cows become agitated by the quick-moving dogs and attack the dog. When the owner steps in to try to save their dog, the cows turn on them. Sometimes, however, factors beyond anyone's control can instigate aggressive behavior. The fourth casualty, a farmer, was probably trampled after a passing fire engine startled his cows.
After the multiple deaths, the cows turned on a politician. David Blunkett, a British Member of Parliament, was attacked by cows as he walked his dog. He escaped with only a black eye and a cracked rib, but it started people talking about safety measures around cows. The usual commonsense precautions figured highly on most how-to lists. Walkers were to give cows a wide berth and keep control of their dogs.
Then things got weird. One list of tips includes, "Remember, you are in charge. You need to know you're in control for the cows to know you're in control."
How, exactly, are we supposed to do that?

Warning: They've Got a Taste For Blood

It's possible that all the trouble we have with cows goes back to one spectacularly ill-advised news story. In 1931 Time magazine published an article about the positive effects of feeding a cow meat. The article starts off by saying, "Dairymen on the Didsbury Jersey farms at Didsbury, Alberta, last week argued that it was a meat diet which caused one of their cows, Waikiki Xenia's Fanny, to produce almost pure cream." Who could resist the potential for profit? Perhaps farmers tried it, and turned their cows into blood thirsty killers.
Or perhaps it was something that was always natural to them. A cow in India made headlines a few years ago for eating about fifty chicks, one of them on camera. In an article about meat-eating deer, one io9 reader with nerves of steel, reported to us that cows occasionally also eat barn kittens.

Sunday 15 March 2015

Suicide bombers set off explosives near two churches in the eastern city of Lahore Pakistan

A Christian woman mourns for a family member who was killed from Sunday's suicide bombing attack.
A Christian woman mourns for a family member who was killed from Sunday's suicide bombing attack. 
Suicide bombers set off explosives near two churches in the eastern city of Lahore on Sunday as worshippers were gathered inside, killing 14 people, officials said, in the latest attack against religious minorities in the country.
In the tense aftermath, angry mobs burned to death one person they believed was involved in the attacks and tried to lynch another, said Haider Ashraf, deputy inspector general for Lahore. Two police who were protecting the churches were also killed in the explosions, which he said were caused by suicide bombers.
At least 70 people were wounded, said Zahid Pervez, the provincial director general of health, who gave the death toll.
The explosions occurred in quick succession in the Christian neighbourhood of Youhana Abad at two churches while parishioners were celebrating Sunday services inside. The churches are about 600 metres apart.
A spokesman for a Pakistani Taliban faction claimed responsibility, saying it was the work of two suicide bombers.
One unidentified witness told Pakistan's Geo television that the main gate to one of the churches targeted was closed so people were using a smaller gate.
"One bomber exploded himself near that gate, that created chaos and during the course there was another blast," he said.
In the aftermath of the blasts the mood quickly turned violent. Much of the country is on edge after years of militant violence including an attack on a Peshawar school in December that killed 150 people — mostly students.
Local television footage showed an angry crowd beating a person they thought was connected to the attack, while others attacked buses in the city.
Militants appear to be targeting minorities more intensively recently, including attacks on a string of mosques belonging to members of the Shia Muslim minority sect. In 2013, twin blasts at a church in Peshawar killed 85 people.
"There will be more of such attacks," warned Ahsanullah Ahsan, a spokesman for the Taliban faction, in a statement emailed to reporters.
Life in Pakistan can be fraught with danger for religious minorities, especially Christians. They have been targeted by extremist Sunni Muslim militants who object to their faith and see them as being closely aligned with the West. They are also often discriminated against in the wider society.

Saturday 14 March 2015

Turkey’s Family Ministry Says Minecraft Promotes Violence, Must Be Banned

Turkey wants to ban Minecraft. The Family and Social Policies Ministry of Turkey has concluded that the popular video game encouraged children to resort to violence, hence must be banned in the country.
A report prepared by Turkey’s Children Services General Directorate, explained: “Although the game can be seen as encouraging creativity in children by letting them build houses, farmlands and bridges, mobs [hostile creatures] must be killed in order to protect these structures. In short, the game is based on violence”.
minecraft2
A spokesperson from Mojang, developer of Minecraft sold to Microsoft for $2.5 billion in 2014, responded to the possibility of Minecraft’s ban in Turkey:
“Minecraft is enjoyed by many players in a wide variety of ways. Many enjoy the creative freedom that’s presented by Minecraft and its tools; some are more interested by the opportunity to explore a landscape without boundaries and to go on exciting adventures with friends. We encourage players to cooperate in order to succeed, whether they’re building, exploring, or adventuring.
“The world of Minecraft can be a dangerous place: it’s inhabited by scary, genderless monsters that come out at night. It might be necessary to defend against them to survive. If people find this level of fantasy conflict upsetting, we would encourage them to play in Creative Mode, or to enable the Peaceful setting. Both of these options will prevent monsters from appearing in the world”.
The report claims that players must kill hostile creatures in order to protect their creations, therefore kids would lose empathy for real animals. The report further claims that the game would lead to social isolation and would expose children to online bullying.

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Soccer player gets 8 years in prison for killing referee



Jon Bieniewicz's widow, Kris Bieniewicz, addresses the court as she gives the last victim's impact statement and holds up a soccer "red flag' in the courtroom of Wayne County Circuit Court Judge Thomas Cameron on Friday, March 13, 2015 in Detroit.  Bassel Saad  was sentenced to at least eight years in prison for a punch that killed  Bieniewicz, a Detroit-area referee.  (AP Photo/Detroit News, Todd McInturf)  DETROIT FREE PRESS OUT; HUFFINGTON POST OUT
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A widow held up a red card, signaling ejection, as a weekend soccer player was sentenced Friday to at least eight years in prison for a punch that killed a Detroit-area referee.
The case against Bassel Saad has put a spotlight on out-of-control recreational athletes and inspired Michigan lawmakers to consider new crimes for assaults on sports referees.
The death of John Bieniewicz was "senseless, meaningless," his wife, Kris Bieniewicz, told the judge. "All because of a call on a soccer field. It's a game. It's a game that we teach our kids as soon as they can walk."
Saad pleaded guilty to involuntary manslaughter, admitting he punched Bieniewicz during a game last summer at a Livonia park. Bieniewicz, 44, was preparing to call a penalty that would have ejected the Dearborn auto mechanic.
Bieniewicz died two days later.
A red card signals ejection in soccer. Kris Bieniewicz pulled one from her pocket at the end of her remarks in court, although Saad had his back to the gallery and didn't see it.
She said the sentence and plea deal were generous, adding: "It will always be murder in my eyes."
"One man has enough pent-up frustration, enough vengeance in his heart, that with one blow he can take my husband's life and in the process destroy not only my family but his family," Bieniewicz said.
Saad, 37, will be eligible for parole after eight years. The maximum punishment is 15 years in prison, and he also could be deported. He expressed remorse and said he prays daily for the Bieniewicz family, which includes two children.
"I hope he's with us, he can hear me. ... I hope one day they forgive me," Saad said.
The sentence followed terms of a plea deal reached in February that trumps an initial charge of second-degree murder. Saad was ordered to pay $9,200 in funeral expenses.
"For better or for worse, you've come to personify all that's wrong with many people's belief about the escalation of violence in sports," Wayne County Judge Thomas Cameron told him.
The victim's sisters and mother referred to Bieniewicz as a selfless son and sibling who didn't miss a family member's birthday and was a natural confidante.
"Our hearts are broken," mother Barbara Bieniewicz said.
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Follow Ed White at http://twitter.com/edwhiteap

Friday 13 March 2015

The Secret Service’s latest embarrassment seems like a rejected plot point from a Judd Apatow movie


The agency is investigating an incident involving two agents who crashed a car into a White House Security barricade after attending a retirement party for a colleague at a nearby bar, theWashington Post reported. The barricade was set up to block off an active bomb investigation, and the agents, who had been drinking, possibly ran over the suspicious package.
By itself, potentially running over a bomb after an alleged night of drinking would raise serious questions, but in recent years the Secret Service has bounced from one alcohol-and-incompetency fueled scandal to the next: prostitutes and partying in El Salvador, prostitutes and partying in Colombia, a drunk agent passed out in the hallway of a hotel in The Netherlands, plus another in Miami, an armed contractor in the elevator, sniper bullets that hit the White House, last fall’s fence jumper, and the downplaying of the fence jumper. Nearly two years ago, a woman was shot and killed by Capitol Police and Secret Service officers during a car chase after she made a U-turn and fled a White House checkpoint. A wrongful death suit has been filed by the family of the woman, Miriam Carey.
Last fall's effort to regain the public’s trust started with the resignation of Julia Pierson, the agency’s director. But this month’s episode brought back the argument that the agency needs an outsider to address its organizational, staffing, budgetary and cultural issues (Pierson’s replacement, Joseph Clancy, is a 27-year veteran of the department).
“I believe we need a leader from the outside to transform the agency back to its elite status,” Representative Jason Chaffetz, the chairman of House Oversight committee, told the New York Times, adding “It’s never good to be drunk at work, especially if you are in the Secret Service.” Such an outsider would also need to dismantle the agency’s party culture, and its unique ability to discredit its own good work. 
The Secret Service, signed into existence on the last day of President Lincoln’s life, eventually came into being, in part, because the person tasked with protecting Lincoln that day was drinking on the job. When Lincoln was assassinated at Ford’s Theatre in 1865, he had been assigned one guard, Washington cop John Parker. When John Wilkes Booth shot the president, Parker was having a drink in a bar one building over. It was Lincoln’s assassination (along with Presidents James Garfield and William McKinley) that led to the agency being put in charge of the president’s safety in 1901.
Since 1901 the Secret Service has stopped multiple assassination attempts, with one exception. Last October, Vanity Fair’s Susan Cheever looked at the behavior of the agents the night before John F. Kennedy was assassinated, and painted a picture of poor management and poor decisions—the men were rarely fed, and, after a day of sparse meals, nine agents went out in search of food. Instead they found “Scotch and Sodas, cigarettes, and a few cans of beer,” and stayed out late, some until 3 a.m.
One of the agents alive in 2014 challenged the idea that drinking played a role in his reaction to the attack, but even at the time Americans were upset by reports of the agents' antics, according to Cheever. “Obviously men who have been drinking until nearly three a.m. are in no condition to be trigger-alert or in the best physical shape to protect anyone,” Drew Pearson wrote in The Washington Post.

Next month is the 150th anniversary of the Lincoln assassination, and the country has no doubt come a long way in protecting its presidents. Still, the agency has a long way to go before it once again live up to the its motto: “Worthy of Trust and Confidence.”

Wednesday 11 March 2015

Last Great Run For The U.S. Dollar, The Death Of The Euro And 74 Trillion In Currency Derivatives At Risk

Dollars Euros - Public DomainAre we on the verge of an unprecedented global currency crisis?  On Tuesday, the euro briefly fell below $1.07 for the first time in almost a dozen years.  And the U.S. dollar continues to surge against almost every other major global currency.  The U.S. dollar index has now risen an astounding 23 percent in just the last eight months.  That is the fastest pace that the U.S. dollar has risen since 1981.  You might be tempted to think that a stronger U.S. dollar is good news, but it isn’t.  A strong U.S. dollar hurts U.S. exports, thus harming our economy.  In addition, a weak U.S. dollar has fueled tremendous expansion in emerging markets around the planet over the past decade or so.  When the dollar becomes a lot stronger, it becomes much more difficult for those countries to borrow more money and repay old debts.  In other words, the emerging market “boom” is about to become a bust.  Not only that, it is important to keep in mind that global financial institutions bet a tremendous amount of money on currency movements.  According to the Bank for International Settlements, 74 trillion dollarsin derivatives are tied to the value of the U.S. dollar, the value of the euro and the value of other global currencies.  When currency rates start flying around all over the place, you can rest assured that someone out there is losing an enormous amount of money.  If this derivatives bubble ends up imploding, there won’t be enough money in the entire world to bail everyone out.
Do you remember what happened the last time the U.S. dollar went on a great run like this?
As you can see from the chart below, it was in mid-2008, and what followed was the worst financial crisis since the Great Depression…
Dollar Index 2015
A rapidly rising U.S. dollar is extremely deflationary for the overall global economy.
This is a huge red flag, and yet hardly anyone is talking about it.
Meanwhile, the euro continues to spiral into oblivion…
Euro U.S. Dollar
How many times have I said it?  The euro is heading to all-time lows.  It is going to go to parity with the U.S. dollar, and then it is eventually going to go below parity.
This is going to cause massive headaches in the financial world.
The Europeans are attempting to cure their economic problems by creating tremendous amounts of new money.  It is the European version of quantitative easing, but it is having some very nasty side effects.
The markets are starting to realize that if the value of the U.S. dollar continues to surge, it is ultimately going to be very bad for stocks.  In fact, the strength of the U.S. dollar is being cited as the primary reason for the Dow’s 332 point decline on Tuesday
The Dow Jones industrial average fell more than 300 points to below the index’s 50-day moving average, wiping out gains for the year. The S&P 500 also closed in the red for the year and breached its 50-day moving average, which is an indicator of the market trend. Only the Nasdaq held onto gains of 2.61 percent for the year.
There’s “concern that energy and the strength in the dollar will somehow be negative for the equities,” said Art Hogan, chief market strategist at Wunderlich Securities. He noted that the speed of the dollar’s surge was the greatest market driver, amid mixed economic data and concerns about the Federal Reserve raising interest rates.
And as I noted above, when the U.S. dollar rises the things that we export to other nations become more expensive and that hurts our businesses.
Despite reassurance from The Fed that a strengthening dollar is positive for US jobs, The White House has now issued a statement that a “strengthening USD is a headwind for US growth.”
But even more important, a surging U.S. dollar makes it more difficult for emerging markets all over the world to borrow new money and to repay old debts.  This is especially true for nations that heavily rely on exporting commodities
It becomes especially ugly for emerging market economies that produce commodities. Many emerging market countries rely on their natural resources for growth and haven’t yet developed more advanced industries. As the products of their principal industries decline in value, foreign investors remove available credit while their currency is declining against the U.S. dollar. They don’t just find it difficult to pay their debt – it is impossible.
It has been estimated that emerging markets have borrowed more than 3 trillion dollars since the last financial crisis.
But now the process that created the emerging markets “boom” is starting to go into reverse.
The global economy is fueled by cheap dollars.  So if the U.S. dollar continues to rise, that is not going to be good news for anyone.
And of course the biggest potential threat of all is the 74 trillion dollar currency derivatives bubble which could end up bursting at any time.
The sophisticated computer algorithms that financial institutions use to trade currency derivatives are ultimately based on human assumptions.  When currencies move very little and the waters are calm in global financial markets, those algorithms tend to work really, really well.
But when the unexpected happens, some of the largest financial firms in the world can implode seemingly overnight.
Just remember what happened to Lehman Brothers back in 2008.  Unexpected events can cripple financial giants in just a matter of hours.
Today, there are five U.S. banks that each have more than 40 trillion dollars of total exposure to derivatives of all types.  Those five banks are JPMorgan Chase, Bank of America, Goldman Sachs, Citibank and Morgan Stanley.
By transforming Wall Street into a gigantic casino, those banks have been able to make enormous amounts of money.
But they are constantly performing a high wire act.  One of these days, their reckless gambling is going to come back to haunt them, and the entire global financial system is going to be severely harmed as a result.
As I have said so many times before, derivatives are going to be at the heart of the next great global financial crisis.
And thanks to the wild movement of global currencies in recent months, there are now more than 74 trillion dollars in currency derivatives at risk.
Anyone that cannot see trouble on the horizon at this point is being willingly blind.

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