2013: Boston, paper gold, Obama signs Stock Act reversal, Homeland Security and food stamps

UPDATE 4.19.2013: MOAR about domestic military operations policy shifts w doc & video: http://www.hongpong.com/archives/2013/04/19/pentagon-domestic-operations-switches-pull-push-24-48hr-timelines-defense-suppor

20130415_whosbuying.jpg

Hang tight folks, it looks like we are on the cusp of another 'burst of change' on a few fronts. You should probably double the watts going to your news radar for at least 10-14 days, if you possibly can. And all those cheesy "financial systems" are getting Extra Discontinuous as they usually do when Collapse starts happening in various segments. I decided to cork out a very rough post on these topics, Your Mileage May Vary thx::

While the Boston situation loaded with symbolism like international flags & the JFK library fire attracts most attention, the reality is that bombings at events are pretty rare and unlikely to happen; once it does the media loops the same traumatizing video clips for web hits. The editorial style: giving viewers agog consciousness that spells ratings. I saw Good Morning America a few mornings ago, it was a massive blitz of domestic violence and a patina of Victoria's Secret models.

With that spectacle set aside for a moment, other trends hitting key points this week include a shady new Stock Act law being signed by Obama and dramatic corrections in several markets including particularly gold. Gotta give some space to the Hill, this is ridiculous:

President Obama quietly signed legislation Monday that rolled back a provision of the STOCK Act that required high-ranking federal employees to disclose their financial information online.

The White House announced Monday that the president had signed S. 716, which repealed a requirement of the Stop Trading on Congressional Knowledge (STOCK) Act requiring the disclosure, which had previously been delayed several times by Congress.

That provision, added to the bipartisan bill aimed at halting insider trading by members of Congress, would have required roughly 28,000 senior government officials to post their financial information online, and had come under harsh criticism from federal government employee unions.
Both chambers of Congress quickly — and near silently — approved the repeal legislation at the end of last week by unanimous consent, just before heading home to their districts.

The STOCK Act was signed by the president a little over one year ago in a highly visible signing ceremony, where he said the legislation would tackle the "deficit of trust" that exists between Washington and the rest of the nation.

The new law scraps a provision that had been hotly contested by federal employees, as well as found to be problematic and even dangerous for high-ranking government workers. Congress twice had passed legislation to delay its implementation. Under that provision, high-ranking government workers would have been required to post their financial information on a publicly available online database.

//////

PAPER GOLD BIG MOVES: The gold market is a peculiar misunderstood beast - it's like a bunch of stuff in vaults with IOU's attached to numbered bars. The IOUs underwrite the financial products like Exchange Traded Fund GLD "gold" - it is operated in reference to the underlying gold's supposed value, but it's not actually a contract providing recourse to the gold.

I flagged for some people a few days ago that the COMEX or commodities exchange gold market, as well as JP Morgan, has had large declines in physical gold reserves in the warehouses recently.

See just recently: 30% of CNT Silver Inventories Withdrawn from COMEX Vaults in 2 Days! | SilverDoctors.com // Why Is JPMorgan's Gold Vault, The Largest In The World, Located Next To The New York Fed's? | Zero Hedge // Especially: Comex Gold Inventories Collapse By Largest Amount Ever On Record

Now today a whopping 122 tons of 'paper gold' got flipped around & tons of margin hikes are getting called on gold traders in different markets around the world, forcing people to keep dumping gold in bursts.

Gold Crush Started With 400 Ton Friday Forced Sale On COMEX | Zero Hedge - tactical deals of the Mega short sale to break through the 'important' price of $1540. Aha... Via Ross Norman of Sharps Pixley,

"Futures trading is performed on a margined basis.. One fund in particular, based in Stamford Connecticut, was identified as the previous shorter of gold and has a history of being caught on the wrong side of the law on a few occasions. As baddies go - they fit the bill nicely.

......The value of the 400 tonnes of gold sold is approximately $20 billion but because it is margined, this short bet would require them to stump up just $1b. The modest short selling in Jan 2013 had prompted little response from the longs - raising questions about their real commitment. By forcing the market lower the Fund sought to prompt a cascade or avalanche of additional selling, proving the lie ; predictably some newswires were premature in announcing the death of the gold bull run doing, in effect, the dirty work of the shorters in driving the market lower still."

These charts are nuts. In recent years, gold drops coincided with bubbles in the S&P type prices, that then crashed. What Happened The Last Time We Saw Gold Drop Like This? | Zero Hedge see 2008 and 2011. Gold Drops Most In 30 Years | Zero Hedge

In recent weeks due to Japan's new hyper-loose monetary policy, crazy things have been happening around the Yen's value. (Australia is spiking moar than anything else it seems) Europe also has a new wave of trust destabilizing the banking system with various deals being attempted in Cyprus & Greece.

(see Which Country's Gold Will Be Sold Next? | Zero Hedge). Also the creditor fascist complex has angled to get at the Greek government's remaining stash of gold so that they can be sacrificed on the altar of the billionaires once and for all.

See also, All Eyes On The Gold Rout, Most Oversold In 14 Years | Zero Hedge . Gold Plummets By Most In 30 Years, Stocks Have Biggest Drop Of 2013 | Zero Hedge - this cuts across a lot of sectors. The CFTC needs to be looked at as well, as some of this material indicates.

The DJIA has been flying high above all of this, though even the corporate news points out that this whole phase of asset value inflation is at least partially due to the Fed's loose monetary policy. Housing prices are "up" they say, what could possibly go wrong?

//////

It's pretty sick meanwhile that an incredibly high level of food stamps are the formal basis for America's food security, at around 23,000,000 households and rising. When Obama entered office this was less than 15,000,000 households -- and the benefits per household are slowly being cut along with much of the social safety net programs both in Minnesota and nationwide. US Households On Foodstamps Hit Record High | Zero Hedge. USDA data.

FoodstampHousholds.jpg

This is a consequence of bailing out banks with trillions of dollars, collateralizing the American people and introducing tons of sovereign credit risk into the US Dollar, the Euro & beyond. It has altered the "biopolitics" of the US to the point that this many people cannot handle generating economic activity in this system to keep themselves alive - and clearly the amount parceled out is declining fast.

//////

CSA's [relatively cheap & nutritious food share subscriptions] and local barter-based currencies are among the more resilient network ideas that ought to get looked at right now. I think there is a pretty severe risk to the stability of the whole country (let alone world) when food stamp debit card systems keep that many millions of families from starving. If nothing else there needs to be fallback systems from the US Dollar & conventional banking system may abruptly halt or radically shift in value or stability. This is something people need to start getting their heads around - so that if the debit cards stop working, different ones operating on some other basis (ie local currencies) can be handed out & millions aren't put in such imminent danger. (see DepressionScrip.com for 1930s substitute local credit instruments - key!)

The food stamp debit cards are usually administered by big banks - giving them yet another lever of functions to 'terrorize' elected officials and bureaucrats into further handing over all the nation's "commons" through fraud & socially constructed economic schemes. The banks have probably the biggest, quickest "kill switch" on social stability. A trivial switch for them to hit compared to most!!

//////

Bitcoin had a big run-up for several days and now has retreated somewhere into the $50-100 range - for a good time keep an eye on Bitcoin Charts. Still, it seems like there's more than enough demand to keep it above $40. However the Bitcoin economy suffers from overly concentrated exchanges.

The biggest exchange, MtGox, has such a large market share - and can't keep up once really huge, shady order floods come in, that the whole Bitcoin economy tends to get "goxxed" and bog down, panic selling and various cats stepping in to buy all the way down.

I am doing a lot of research on Bitcoin right now including the various exchanges (LIST) - in the long run, Bitcoin and other alternative cryptocurrencies share certain features like peer-to-peer encryption/hashing based universal linear transaction registers called "blockchains", and ways of verifying those blockchains with CPU or GPU intensive cryptographic calculations to award more 'coins' and slowly expand the money supply while shoring up trust in the global account ledger.

A new website as well as local Facebook & Twitter accts are getting rolling :) Brand new: follow http://twitter.com/bitcoinmn and http://facebook.com/bitcoinmn for Minnesota Bitcoin goodies!

Bitcoin OTC order book is a chat network approach to decentralized exchange design with trust ranking (like eBay rankings in a way).

Good news for people interesting in making exchanges or intercambios in the form of Ripple, in the early stages an open source project with VC backing to build multi-currency exchanges and trust networks among peers. (chart) Some open source software is available on GitHub for Ripple and its "XRP" intermediary currency, which could then be a proxy to regular fiats or Bitcoin etc.

See also: wow Six reasons why Chinese people will drive the next bull market in bitcoin – Quartz

Mining Bitcoins takes power, but is it an “environmental disaster?” | Ars Technica - wattage will improve - and compared to the phenomenal amount of energy blown on fractional reserve banking derived parasitic functions, Bitcoin is nothing! Also: “Taming the bubble”: investors bet on Bitcoin via derivatives markets | Ars Technica

Paul Krugman Goes on the Attack: Calls Bitcoin “Antisocial” // The Antisocial Network of Bitcoins - NYTimes.com by Krugman! "We have huge economic problems, but green pieces of paper are doing fine — and we should let them alone." LOL that food stamp chart is definitely not keeping the great Keynesian up at night.

/////

A moment for weird Boston links: What did Peter Griffin know about Boston and when did he know it? Watch! Family Guy boston bombing - YouTube Yeah this petition is picking up steam - Petition | Demand that Seth MacFarlane make a public accounting for his foreknowledge of the Boston Bombing | Change.org

This is a popular item now: Boston to Deploy Mass-Casualty Tablet Device During Marathon

Excellent videography: Boston.com viral video page - Boston.com. Also: Israel honors war dead with somber Memorial Day - News - Boston.com

Oh also in that viral video above you can see the military incongruously popping up within about 1 minute 44 secs in Boston as Cryptogon and other news have noted. You'll want to check out TC Indymedia Exclusive: Secret 'Trigger' & blueprint for emergency domestic military crackdown plan revealed | HongPong.com about USNORTHCOM CONPLAN 3502 if you haven't already.

/////

SEE previously Meet the new Boss in Town: ICE spawns... HSI Homeland Security Investigations, for great justice & cocaine cowboys | HongPong.com

Homeland Security's New $3.9 Billion Headquarters - Businessweek. Money quote:

In February, one of the DHS’s more persistent naysayers, U.S. Representative John Mica, a Florida Republican, boasted about how he and his fellow party members had curtailed the project. He said he would also like to dismantle much of the DHS.

He’d better act swiftly. If the White House ever gets all the DHS’s divisions on one campus, nobody will want to move them again.

Homeland Security bloat and the great Unemployed: Word went around that ICE was serving a federal warrant pertaining to Boston. ICE is a unit of Department Homeland Security which spawned the little known HSI, or Homeland Security Investigations, division, a new kind of (literal) black helicopter FBI-style agency

The dip in metals and the odd security situation brought Cryptogon.com to recall a post from late 2012 from HomelandSecurityUs.com, the Northeast Intelligence Network site edited by Doug Hagmann & his son. They are pretty conservative and have a fair bit of alarming material about Homeland Security. See Flashback: Warning: "Watch The Metals, When They Dip. It Will Be A Good Indication That Things Are About To Happen."

I'm not even going to get into the stuff coming up about the bomb sniffing dogs and weird "training exercise" angles right now because this other stuff seems more pertinent right now. People that have been at this a long time frequently bump into "exercises" that happen to overlap with 'live events', the argument being many times that exercises created the opportunity for staged events at many previous key points -- though of course governments do run a *lot* of exercises with all their security bloatware anyway.

This is the late 2012 Hagmann interview with a purported Homeland Security "insider" which stated that a dip in precious metals, after the fiscal cliff sets the stage, would presage further economic chaos and an escalation of repression against the American people, along with a major collapse in standard of living. DHS Insider Report: Coming This Spring: "Life for the Average American is Going to Change Significantly". It is kind of "classic stuff" for those of us that keep an eye on these things. The earlier predictions of source "Rosebud" didn't really pan out much in 2012, as these things often don't. But timelines are hard to nail down even for "deep weird" sources with good faith. Take a little while to glance over this, even if it's not your usual fare.

"Rosebud": Stop thinking about a normal situation. The country is divided, which is exactly where Obama wants us to be. We are as ideologically divided as we were during the Civil War and that rift is growing every day. Add in a crisis – and economic crisis – where ATM and EBT cards will stop working. Where bank accounts will contain nothing but air. They are anticipating a revolution and a civil war rolled into one (emphasis added by this author).

We all saw what happened with the Feds & Occupy camps. The American Occupy-style organizing eased off as the US economy was in a kind of stasis during 2012, but if things tense up in 2013 we are looking at a different political situation. In Europe things have been moving at a much different tempo, along with a great deal of confusion, snaky liberal operations, and a rising neofascist & quasi-fascist network is taking root in many nations.

See also The Terrifying Reality of Long-Term Unemployment - Matthew O'Brien - The Atlantic

On a decidedly anti-alarmist tack, Bruce Schneier: The Boston Marathon Bombing: Keep Calm and Carry On - Bruce Schneier - The Atlantic

See TC Indymedia Exclusive: Secret 'Trigger' & blueprint for emergency domestic military crackdown plan revealed | HongPong.com

///////

MOAR LINX: A bunch of stuff sitting around you may find interesting.

Just weird - part of a scifi based GE marketing campaign: 'The Matrix' is back (in your hospital) | Technically Incorrect - CNET News

Is Facebook's Secretbook Secure? CRYPTOME Colin Powell & Malcolm McDowell at Bohemian Grove 2013-0347.pdf // Hacktivists as Gadflies - Socrates to Jeremy Hammond // DoD Communications Systems Breach in 9/11 Trials

A little grumpycat may be worth reading - Guest Post: Are Individuals The Property Of The Collective? | Zero Hedge amirite Minneapolis?!

In Control at Layer 2: a Tectonic Shift in Network Security| Whitepapers | TechRepublic - hacking optic networks.

Wells Fargo 401(k) Loans Jump 28% as Older Workers Borrow - Bloomberg

CNBC! USD/Bitcoin - MTGOXUSD - Stock Quotes

The Real Story Behind Facebook Moderation and Your Petty Reports | The Internet Offends Me

DARKWEBSEARCH: Shodan: The scariest search engine on the Internet - Apr. 8, 2013

Australian FiberFail with a last mile of copper, you idiots: FTTN a huge “mistake”, says ex-BT CTO | Delimiter

Peak Recovery? | Zero Hedge

11 Economic Crashes That Are Happening RIGHT NOW

Wordpress Mess going on: This plugin should help: WordPress › Limit Login Attempts « WordPress Plugins

////

Anyway this is just a few trends happening now... I feel like the overall tone of this post is pretty conservative, as a lot of the research is coming out of places with that editorial slant. Nonetheless these are sources of information and lines of analysis that anyone is welcome to look at and come to their own conclusions.

I think that we urgently need to get real and start considering lots of alternate solutions, hopefully to avoid more authoritarian and crisis driven, panicky policies, like those fostered in the climate of the Fear of Terrorism which they are going to tediously lay on with a trowel for weeks, alongside major economic instability.

Batten All the Hatches.

Infiltrating Hollywood: The Rise and Fall of The Spook Who Sat By the Door

I remember seeing Spook years ago on a rough videotape with horrible audio at the Soap Factory - shortly thereafter it was possible to obtain the DVD, based on a negative long-hidden in some film vault under a false name.

spook1.png

Spook is one of those incredible movies - a 1973 narrative of a black CIA agent turned domestic revolutionary. The FBI bullied United Artists into dropping the film -- based on an earlier book by Greenlee, which covers the global guerrilla strategies more deeply -- and the actors got blacklisted. Why would the FBI have a problem with a film where black gangs organize to demand autonomy, attack the police & seize military hardware?

Another key element, well done for such a low budget guerrilla project: the portrayal of the US military as a domestic civil repression force -- at least roughly similar to GARDEN PLOT National Guard style deployments seen more frequently back in those days. (GARDEN PLOT has been replaced with USNORTHCOM CONPLAN 3502 "Civil Disturbance Operations" as research here has documented)

spook3.png

There are plenty of funny moments in this film as well - the sense of humor strikes like a Cobra.

spook2.png

TRAILER:

FULL MOVIE! YAY - The Spook Who Sat by the Door by Director & producer Ivan Dixon, written & produced by Sam Greenlee, 102 mins.

I found this followup documentary via the film Hidden Colors' FB. Need to see this!! Infiltrating Hollywood: The Rise and Fall of the Spook Who Sat by the Door | Award Winning, Independent Documentary

Ostrow-Inside-Poster.png

Infiltrating Hollywood: The Rise and Fall of the Spook Who Sat by the Door is an award winning independent documentary on the controversial and FBI repressed 1973 black film The Spook Who Sat By the Door. The Spook Who Sat by The Door is widely hailed as a cult classic and one of the most important underground black productions of the era. The film was selected for preservation by the National Film Registry in 2012.

Through interviews, with author Sam Greenlee, Berlie Dixon, widow of director Ivan Dixon, Academy Award winning editor Michael Kahn, Melvin Van Peebles several actors from the film, investors, academics, Todd Boyd, Ed Guerrero, and Eric Pierson; archival footage and production documents, Infiltrating Hollywood tells the story of The Spook Who Sat by the Door from its inception as a novel to its release and repression.

San Diego Black Film Festival: Best Film, Sacramento International Film Festival: Best Film, Cine-Soul, Athens International Film Festival: Honorable Mention, Martha’s Vineyard African American Film Festival: Finalist HBO Documentary Competition, Saatchi and Saatchi Producer’s Award, International Black Film Festival of Nashville: Best Documentary, Hollywood Black Film Festival: Honorable Mention.

The Rise and Fall of The Spook Who Sat By The Door :Infiltrating Hollywood -Trailer for Infiltrating Hollywood: The Rise and Fall of the Spook Who Sat by the Door, a documentary on the making of the cult film classic. A Film by Christine Acham and Clifford Ward.

// Pt 1 interview //

"The Spook Who Sat By the Door" filmmaker, writer and community activist SAM GREENLEE Answer questions from callers and talks about his LEGENDARY MOVIE. He speaks on the struggle and obstacles when trying to releasing the controversial movie, why they were banned from shooting in Chicago, the reason he and Jesse Jackson dislike each other and more!!!!

// pt 1 of 4 "Project Brotherhood Power Hour" Shot by Lyle Muse

// Pt 2 Spook interview/

///

Sam Greenlee on black filmmaking today (posted in 2008):

///

Anyway these items are just excellent. Thanks Mr Greenlee & the actors who got blacklisted as punishment, good careers crushed including lead Lawrence Cook or "Dan Freeman". And screw Hollywood for papering over how they let the government suppress a film without any accountability.

FinCEN floats new Bitcoin related currency regulation advisory as criminal bankster operations sack depositors in Cyprus

UPDATE 3.28 - BITCOIN SURGES TO $92 - see http://www.forbes.com/sites/jonmatonis/2013/03/24/cyprus-goes-cashless-t...
for notes on Bitcoin's surge in popularity as a refuge from the Looting, and more context to the FinCEN stuff as well.

The FinCEN structure is one of those good at gracefully failing to say much about the huge volumes of drug money circulating in the Federal Reserve System. They are now setting their eyes on extending the Ontology of Fail into Bitcoin.

Since the Cyprus looting political situation has slid forward, Bitcoin apps have been going viral in Europe - particularly in the small Spanish iOS market. For some unclear reason Bitcoin's value has been going parabolic since the start of 2013.

Good intro, suggests the rideup not just because of Cyprus: Bitcoin bubble or new virtual currency? | | MacroBusiness

Bitcoin interest spikes in Spain as Cyprus financial crisis grows (Wired UK)

Spain turns to Bitcoin, prompting incoherent discussion on Today

Bitcoin analysis: Cyprus crisis increases virtual currency interest | BGR

Bitcoin apps soar in Spain – will the Cyprus shocker boost virtual currencies? - Yahoo! News

BREAKING: In Response To Building Cyprus Panic - BITCOIN HITS NEW ALL-TIME HIGH OF $50....er, $52, $54, $55 - Max Keiser // Bitcoin-Related Apps Spike In Spain Over Weekend, Alongside Cyprus

Bitcoin getting a boost from euro crisis - FRANCE 24

BrianLehrer.tv: Saving the Kimani Grays - YouTube & bookmark'd to an interview Erik Voorhees and Marc Hochstein. Includes the quickie intro video for Bitcoin.

For updates: Bitcoin Watch

The rideup from ~ $47/Bitcoin to a pretty solid $64-72 range, likely due to Cyprus, shows that even if things cool off, Bitcoin demand definitely has reached a new audience.

This chart is from Mt. Gox, the largest Bitcoin exchange site.

chart.png

Here is the Euro chart, perhaps more relevant.

201303250051.jpg

Needless to say, the market spike has made Bitcoin mining quite a bit more profitable than only a few weeks ago.

Welcome To FinCEN.gov - FinCEN’s mission is to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.

FinCen Regulation of BitCoin and Virtual Currency

20 March 2013

A sends:

http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html

http://www.fincen.gov/statutes_regs/guidance/pdf/FIN-2013-G001.pdf

Guidance

FIN-2013-G001

Issued:

March 18, 2013

Subject:

Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies

            The Financial Crimes Enforcement Network ("FinCEN") is issuing this interpretive guidance to clarify the applicability of the regulations implementing the Bank Secrecy Act ("BSA") to persons creating, obtaining, distributing, exchanging, accepting, or transmitting virtual currencies.1 Such persons are referred to in this guidance as "users," "administrators," and "exchangers," all as defined below.2 A user of virtual currency is not an MSB under FinCEN's regulations and therefore is not subject to MSB registration, reporting, and recordkeeping regulations. However, an administrator or exchanger is an MSB under FinCEN's regulations, specifically, a money transmitter, unless a limitation to or exemption from the definition applies to the person. An administrator or exchanger is not a provider or seller of prepaid access, or a dealer in foreign exchange, under FinCEN's regulations.

Currency vs. Virtual Currency

            FinCEN's regulations define currency (also referred to as "real" currency) as "the coin and paper money of the United States or of any other country that [i] is designated as legal tender and that [ii] circulates and [iii] is customarily used and accepted as a medium of exchange in the country of issuance."3 In contrast to real currency, "virtual" currency is a medium of exchange that operates like a currency in some environments, but does not have all the attributes of real currency. In particular, virtual currency does not have legal tender status in any jurisdiction. This guidance addresses "convertible" virtual currency. This type of virtual currency either has an equivalent value in real currency, or acts as a substitute for real currency.

Background

            On July 21, 2011, FinCEN published a Final Rule amending definitions and other regulations relating to money services businesses ("MSBs").4 Among other things, the MSB Rule amends the definitions of dealers in foreign exchange (formerly referred to as "currency dealers and exchangers") and money transmitters. On July 29, 2011, FinCEN published a Final Rule on Definitions and Other Regulations Relating to Prepaid Access (the "Prepaid Access Rule").5 This guidance explains the regulatory treatment under these definitions of persons engaged in virtual currency transactions.

Definitions of User, Exchanger, and Administrator

            This guidance refers to the participants in generic virtual currency arrangements, using the terms "user," "exchanger," and "administrator."6 A user is a person that obtains virtual currency to purchase goods or services.7 An exchanger is a person engaged as a business in the exchange of virtual currency for real currency, funds, or other virtual currency. An administrator is a person engaged as a business in issuing (putting into circulation) a virtual currency, and who has the authority to redeem (to withdraw from circulation) such virtual currency.

Users of Virtual Currency

            A user who obtains convertible virtual currency and uses it to purchase real or virtual goods or services is not an MSB under FinCEN's regulations.8 Such activity, in and of itself, does not fit within the definition of "money transmission services" and therefore is not subject to FinCEN's registration, reporting, and recordkeeping regulations for MSBs.9

Administrators and Exchangers of Virtual Currency

            An administrator or exchanger that (1) accepts and transmits a convertible virtual currency or (2) buys or sells convertible virtual currency for any reason is a money transmitter under FinCEN's regulations, unless a limitation to or exemption from the definition applies to the person.10 FinCEN's regulations define the term "money transmitter" as a person that provides money transmission services, or any other person engaged in the transfer of funds. The term "money transmission services" means "the acceptance of currency, funds, or other value that substitutes for currency from one person and the transmission of currency, funds, or other value that substitutes for currency to another location or person by any means."11

            The definition of a money transmitter does not differentiate between real currencies and convertible virtual currencies. Accepting and transmitting anything of value that substitutes for currency makes a person a money transmitter under the regulations implementing the BSA.12 FinCEN has reviewed different activities involving virtual currency and has made determinations regarding the appropriate regulatory treatment of administrators and exchangers under three scenarios: brokers and dealers of e-currencies and e-precious metals; centralized convertible virtual currencies; and de-centralized convertible virtual currencies.

            a. E-Currencies and E-Precious Metals

            The first type of activity involves electronic trading in e-currencies or e-precious metals.13 In 2008, FinCEN issued guidance stating that as long as a broker or dealer in real currency or other commodities accepts and transmits funds solely for the purpose of effecting a bona fide purchase or sale of the real currency or other commodities for or with a customer, such person is not acting as a money transmitter under the regulations.14

            However, if the broker or dealer transfers funds between a customer and a third party that is not part of the currency or commodity transaction, such transmission of funds is no longer a fundamental element of the actual transaction necessary to execute the contract for the purchase or sale of the currency or the other commodity. This scenario is, therefore, money transmission.15 Examples include, in part, (1) the transfer of funds between a customer and a third party by permitting a third party to fund a customer's account; (2) the transfer of value from a customer's currency or commodity position to the account of another customer; or (3) the closing out of a customer's currency or commodity position, with a transfer of proceeds to a third party. Since the definition of a money transmitter does not differentiate between real currencies and convertible virtual currencies, the same rules apply to brokers and dealers of e-currency and e-precious metals.

            b. Centralized Virtual Currencies

            The second type of activity involves a convertible virtual currency that has a centralized repository. The administrator of that repository will be a money transmitter to the extent that it allows transfers of value between persons or from one location to another. This conclusion applies, whether the value is denominated in a real currency or a convertible virtual currency. In addition, any exchanger that uses its access to the convertible virtual currency services provided by the administrator to accept and transmit the convertible virtual currency on behalf of others, including transfers intended to pay a third party for virtual goods and services, is also a money transmitter.

            FinCEN understands that the exchanger's activities may take one of two forms. The first form involves an exchanger (acting as a "seller" of the convertible virtual currency) that accepts real currency or its equivalent from a user (the "purchaser") and transmits the value of that real currency to fund the user's convertible virtual currency account with the administrator. Under FinCEN's regulations, sending "value that substitutes for currency" to another person or to another location constitutes money transmission, unless a limitation to or exemption from the definition applies.16 This circumstance constitutes transmission to another location, namely from the user's account at one location (e.g., a user's real currency account at a bank) to the user's convertible virtual currency account with the administrator. It might be argued that the exchanger is entitled to the exemption from the definition of "money transmitter" for persons involved in the sale of goods or the provision of services. Under such an argument, one might assert that the exchanger is merely providing the service of connecting the user to the administrator and that the transmission of value is integral to this service. However, this exemption does not apply when the only services being provided are money transmission services.17

            The second form involves a de facto sale of convertible virtual currency that is not completely transparent. The exchanger accepts currency or its equivalent from a user and privately credits the user with an appropriate portion of the exchanger's own convertible virtual currency held with the administrator of the repository. The exchanger then transmits that internally credited value to third parties at the user's direction. This constitutes transmission to another person, namely each third party to which transmissions are made at the user's direction. To the extent that the convertible virtual currency is generally understood as a substitute for real currencies, transmitting the convertible virtual currency at the direction and for the benefit of the user constitutes money transmission on the part of the exchanger.

            c. De-Centralized Virtual Currencies

            A final type of convertible virtual currency activity involves a de-centralized convertible virtual currency (1) that has no central repository and no single administrator, and (2) that persons may obtain by their own computing or manufacturing effort.

            A person that creates units of this convertible virtual currency and uses it to purchase real or virtual goods and services is a user of the convertible virtual currency and not subject to regulation as a money transmitter. By contrast, a person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is engaged in transmission to another location and is a money transmitter. In addition, a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency.

Providers and Sellers of Prepaid Access

            A person's acceptance and/or transmission of convertible virtual currency cannot be characterized as providing or selling prepaid access because prepaid access is limited to real currencies. 18

Dealers in Foreign Exchange

            A person must exchange the currency of two or more countries to be considered a dealer in foreign exchange.19 Virtual currency does not meet the criteria to be considered "currency" under the BSA, because it is not legal tender. Therefore, a person who accepts real currency in exchange for virtual currency, or vice versa, is not a dealer in foreign exchange under FinCEN's regulations.

* * * * *

            Financial institutions with questions about this guidance or other matters related to compliance with the implementing regulations of the BSA may contact FinCEN's Regulatory Helpline at (800) 949-2732.

1 FinCEN is issuing this guidance under its authority to administer the Bank Secrecy Act. See Treasury Order 180-01 (March 24, 2003). This guidance explains only how FinCEN characterizes certain activities involving virtual currencies under the Bank Secrecy Act and FinCEN regulations. It should not be interpreted as a statement by FinCEN about the extent to which those activities comport with other federal or state statutes, rules, regulations, or orders.

2 FinCEN's regulations define "person" as "an individual, a corporation, a partnership, a trust or estate, a joint stock company, an association, a syndicate, joint venture, or other unincorporated organization or group, an Indian Tribe (as that term is defined in the Indian Gaming Regulatory Act), and all entities cognizable as legal personalities." 31 CFR § 1010.100(mm).

3 31 CFR § 1010.100(m).

4 Bank Secrecy Act Regulations - Definitions and Other Regulations Relating to Money Services Businesses, 76 FR 43585 (July 21, 2011) (the "MSB Rule"). This defines an MSB as "a person wherever located doing business, whether or not on a regular basis or as an organized or licensed business concern, wholly or in substantial part within the United States, in one or more of the capacities listed in paragraphs (ff)(1) through (ff)(7) of this section. This includes but is not limited to maintenance of any agent, agency, branch, or office within the United States." 31 CFR § 1010.100(ff).

5 Final Rule - Definitions and Other Regulations Relating to Prepaid Access, 76 FR 45403 (July 29, 2011),

6 These terms are used for the exclusive purpose of this regulatory guidance. Depending on the type and combination of a person's activities, one person may be acting in more than one of these capacities.

7 How a person engages in "obtaining" a virtual currency may be described using any number of other terms, such as "earning," "harvesting," "mining," "creating," "auto-generating," "manufacturing," or "purchasing," depending on the details of the specific virtual currency model involved. For purposes of this guidance, the label applied to a particular process of obtaining a virtual currency is not material to the legal characterization under the BSA of the process or of the person engaging in the process.

8 As noted above, this should not be interpreted as a statement about the extent to which the user's activities comport with other federal or state statutes, rules, regulations, or orders. For example, the activity may still be subject to abuse in the form of trade-based money laundering or terrorist financing. The activity may follow the same patterns of behavior observed in the "real" economy with respect to the purchase of "real" goods and services, such as systematic over- or under-invoicing or inflated transaction fees or commissions.

9 31 CFR § 1010.100(ff)(1-7).

10 FinCEN's regulations provide that whether a person is a money transmitter is a matter of facts and circumstances. The regulations identify six circumstances under which a person is not a money transmitter, despite accepting and transmitting currency, funds, or value that substitutes for currency. 31 CFR § 1010.100(ff)(5)(ii)(A)-(F).

11 31 CFR § 1010.100(ff)(5)(i)(A).

12 Ibid.

13 Typically, this involves the broker or dealer electronically distributing digital certificates of ownership of real currencies or precious metals, with the digital certificate being the virtual currency. However, the same conclusions would apply in the case of the broker or dealer issuing paper ownership certificates or manifesting customer ownership or control of real currencies or commodities in an account statement or any other form. These conclusions would also apply in the case of a broker or dealer in commodities other than real currencies or precious metals. A broker or dealer of e-currencies or e-precious metals that engages in money transmission could be either an administrator or exchanger depending on its business model.

14 Application of the Definition of Money Transmitter to Brokers and Dealers in Currency and other Commodities, FIN-2008-G008, Sept. 10, 2008. The guidance also notes that the definition of money transmitter excludes any person, such as a futures commission merchant, that is "registered with, and regulated or examined by…the Commodity Futures Trading Commission."

15 In 2011, FinCEN amended the definition of money transmitter. The 2008 guidance, however, was primarily concerned with the core elements of the definition - accepting and transmitting currency or value - and the exemption for acceptance and transmission integral to another transaction not involving money transmission. The 2011 amendments have not materially changed these aspects of the definition.
16 See footnote 11 and adjacent text.

17 31 CFR § 1010.100(ff)(5)(ii)(F).

18 This is true even if the person holds the value accepted for a period of time before transmitting some or all of that value at the direction of the person from whom the value was originally accepted. FinCEN's regulations define "prepaid access" as "access to funds or the value of funds that have been paid in advance and can be retrieved or transferred at some point in the future through an electronic device or vehicle, such as a card, code, electronic serial number, mobile identification number, or personal identification number." 31 CFR § 1010.100(ww). Thus, "prepaid access" under FinCEN's regulations is limited to "access to funds or the value of funds." If FinCEN had intended prepaid access to cover funds denominated in a virtual currency or something else that substitutes for real currency, it would have used language in the definition of prepaid access like that in the definition of money transmission, which expressly includes the acceptance and transmission of "other value that substitutes for currency." 31 CFR § 1010.100(ff)(5)(i) .

19 FinCEN defines a "dealer in foreign exchange" as a "person that accepts the currency, or other monetary instruments, funds, or other instruments denominated in the currency, of one or more countries in exchange for the currency, or other monetary instruments, funds, or other instruments denominated in the currency, of one or more other countries in an amount greater than $1,000 for any other person on any day in one or more transactions, whether or not for same-day delivery." 31 CFR § 1010.100(ff)(1).

12 [sic] As our response is not in the form of an administrative ruling, the substance of this letter should not be considered determinative in any state or federal investigation, litigation, grand jury proceeding, or proceeding before any other governmental body.

//////////////

I thought this dubious speech was kind of interesting. Moar Fear of Bitcoin!!

ASSOCIATION OF CERTIFIED ANTI-MONEY LAUNDERING SPECIALISTS (ACAMS) 18TH ANNUAL INTERNATIONAL AML AND FINANCIAL CRIME CONFERENCE

REMARKS OF JENNIFER SHASKY CALVERY
DIRECTOR
FINANCIAL CRIMES ENFORCEMENT NETWORK
ASSOCIATION OF CERTIFIED ANTI-MONEY LAUNDERING SPECIALISTS (ACAMS)
18TH ANNUAL INTERNATIONAL AML AND FINANCIAL CRIME CONFERENCE
MARCH 19, 2013
HOLLYWOOD, FL

          Good morning. I want to start by thanking our hosts, THE ASSOCIATION OF CERTIFIED ANTI-MONEY LAUNDERING SPECIALISTS, for the opportunity to join you at this year's conference.

          Some of you may have heard me speak recently about FinCEN's broad mission, and how important it is for us to build strong public-private partnerships for us to achieve success. I cannot emphasize this fact enough. Our nation's financial institutions play a vital role in our efforts to safeguard the financial system from illicit use, combat money laundering, and promote national security. And we do this through the collection, analysis, and dissemination of financial intelligence and strategic use of our financial authorities.

          FinCEN depends on the information financial institutions provide to us, and today I'd like to focus on what our analysts do with that information. FinCEN is a leader in the analysis of Bank Secrecy Act (BSA) data and financial intelligence. Our advanced analytic tools and highly skilled analysts play a unique role in analyzing and integrating BSA data and other information to accomplish three ends: (1) map illicit finance networks; (2) identify compromised financial institutions and jurisdictions; and (3) understand the current methods and schemes for illicit finance. These three key pieces of analysis are critical to enable our stakeholders - law enforcement, regulators, foreign partners, and industry - to take action against money laundering and terrorist financing.

          FinCEN's analysis depends primarily on the excellent information you provide - it is the baseline from which our analysts work. During my time at FinCEN, I have been continually impressed by the exceptionally high caliber of FinCEN's analytical team. What our analysts do now - and do very well - is look across that data to find interconnections to support ongoing law enforcement cases, to find trends and patterns within that data, and to understand the overall changes and shifts within it. They will also combine those findings with other information sources, such as law enforcement data or publicly available data, and enhance the picture.

          Where our analysts are going - and we're not there yet, but we are on the cusp of these capabilities - is to take our analysis to a whole new level. Currently, we are capable of dissecting law enforcement and BSA information to identify a specific methodology for illicit finance in a particular segment of the financial industry related to a particular type of crime. We are also capable of using such information to identify entirely new and unknown bad actors engaged in similar activity in other parts of the country. However, right now this is long and arduous work as analysts sift through hundreds and sometimes thousands of reports. Very soon, new capacities made possible by our internal technology modernization, will allow our analysts to deal with such data sets to find leads in a fraction of the time previously necessary. Very soon, we will be able to point law enforcement and other stakeholders precisely to where they should be looking. Our analysts, working hand-in-hand with our superb technology team, are now putting these new capacities into place.

          FinCEN does this analysis well now - and having seen the initial results from our new capabilities, I am excited about where we are headed. I am committed to making this a central role for FinCEN in the 21st Century. So today, I'd like to talk to you about some of the work we are doing and where our cutting-edge analytical efforts are taking us as we seek to remain out in front of emerging payment systems, identify and track third party money launderers, and uncover trends and patterns in the BSA data.

Emerging Payment Systems

          I'd like to begin today by discussing how FinCEN's analysts are working hard to stay ahead of the curve in understanding emerging payment systems and related financial flows and vulnerabilities and to put that information into the hands of those customers who need it most.

          As we all know, during the past decade, the development of new market space and new types of payment systems have emerged as alternatives to traditional mechanisms for conducting financial transactions, allowing developing countries to reach beyond underdeveloped infrastructure and reach those populations who previously had no access to banking services. For consumers and businesses alike, the development and proliferation of these systems are a significant continuing source of positive impact on global commerce.

          These new systems have also expanded the boundaries of "money transmission" as more sophisticated payment systems have become available. And the inherent added complexity of these systems opens them to potential misuse by criminals.

          FinCEN's analysts are continually working to understand the schemes and methods used to exploit emerging payment methods for money laundering and terrorist financing, and to develop related guidance for law enforcement. This guidance provides law enforcement with information on key sectors' operations, recordkeeping practices, and efforts to identify and counter vulnerabilities.

          Partnership is key. As our analysts develop their understanding of these new systems, they are significantly aided by working directly with the financial industry. This partnership enables them to better follow financial trails and realistically understand financial mechanisms.

          For instance, FinCEN's analysts are working to finalize a bulletin that will explore the relatively new payment technology of digital currency systems. FinCEN's bulletin will help "de-mystify" the digital currency realm by explaining to the broader law enforcement community how these systems work. The bulletin will also address the role of traditional financial institutions as intermediaries.

          We're viewing our analytic work in this space as an important part of an ongoing conversation between industry and law enforcement. FinCEN is dedicated to learning more about digital currency systems, along with other emerging mechanisms, to protect those systems from abuse and to aid law enforcement in ensuring that they are getting the leads and information they need to prosecute the criminal actors. As our knowledge base develops, in concert with you, we will look to leverage our new capabilities to identify trends and patterns among the interconnection points of the traditional financial sector and these new payment systems.

          To date, FinCEN's analysts have explored and produced reference products for law enforcement on many traditional and emerging payment systems. These include: cross border funds transfers and correspondent accounts, money transmitters, online payment systems, prepaid cards, and mobile payments. FinCEN's analysts then follow up this work by providing in-person analysis and training to thousands of investigators each year.

          In addition to developing products to help law enforcement follow the financial trails of emerging payments methods, FinCEN also develops guidance for the financial industry to clarify their regulatory responsibilities as they relate to emerging areas.

          In fact, just yesterday, FinCEN issued interpretive guidance to clarify the applicability of BSA regulations to virtual currencies. The guidance responds to questions raised by financial institutions, law enforcement, and regulators concerning the regulatory treatment of persons who use virtual currencies or make a business of exchanging, accepting, and transmitting them.

          FinCEN's rules define certain businesses or individuals as money services businesses (MSBs) depending on the nature of their financial activities. MSBs have registration requirements and a range of anti-money laundering, recordkeeping, and reporting responsibilities under FinCEN's regulations. The guidance considers the use of virtual currencies from the perspective of several categories within FinCEN's definition of MSBs.

          The guidance explains how FinCEN's "money transmitter" definition applies to certain exchangers and system administrators of virtual currencies depending on the facts and circumstances of that activity. Those who use virtual currencies exclusively for common personal transactions like receiving payments for services or buying goods online are not affected by this guidance. Those who are intermediaries in the transfer of virtual currencies from one person to another person, or to another location, are money transmitters that must register with FinCEN as MSBs unless an exception applies. Some virtual currency exchangers are already registered with FinCEN as MSBs, though not necessarily as money transmitters. The guidance clarifies definitions and expectations to ensure that businesses engaged in similar activities are aware of their regulatory responsibilities.

Third Party Money Launderers

          Analysts at FinCEN work on the front lines with law enforcement to help address head-on some of the U.S. government's highest investigative priorities. Healthcare fraud and tax fraud (by identity theft) are both serious and growing drains on U.S. government programs, with losses estimated in the hundreds of billions of dollars.

          To combat these serious and growing frauds, FinCEN has partnered with the Department of Justice, the Internal Revenue Service, and officials within the Department of Health and Human Services to provide targeted analysis of individuals and organizations engaged in fraud. In this effort, FinCEN has to date analyzed more than 270,000 BSA filings in support of more than 300 healthcare fraud investigations.

          FinCEN's mapping of the illicit finance networks used to move such fraud proceeds revealed that check cashers are a key node. They are often used to cash out fraudulent healthcare claims and fraudulent tax returns. While we cannot determine what percentage of the overall illicit proceeds pass through complicit check cashers, we assess that such third-party money launderers comprise a crucial link in the movement of fraudulent proceeds by significant organized criminal actors.

          But here is where FinCEN's analysts have taken their work to the next level. In mapping these networks, FinCEN has also uncovered distinct and unique trends concerning the laundering of fraud proceeds through check cashers. Illegal proceeds from healthcare fraud and tax return fraud by identity theft are moved through the U.S. financial system in identifiable ways, leading FinCEN to identify markers of these transactions.

          FinCEN's review of suspicious activity reports related to these cases reveals several indicators of money laundering in multiple transactional models. Often these transactions involved a third party closely linked to a check casher. FinCEN determined that many of these third parties received ACH credits from Medicare, Medicaid, or private insurance companies.

          FinCEN analysts continue to provide ongoing support to investigations into laundering healthcare and tax fraud proceeds. And we will leverage our analytic findings to better inform industry of key indicators to improve their awareness and enhance BSA filings received on these actors. Our analysts are committed to proactively identifying financial institutions involved in the laundering of proceeds of frauds against the U.S. government. We believe that using this information will be key to furthering both criminal and civil enforcement actions, and preventing such fraudulent activity in the future.

Uncovering Trends and Patterns

          In addition to providing case support, some of you may know that FinCEN has, for many years, carried out trends and pattern analyses of the information contained in the millions of SARs and CTRs that financial institutions send to FinCEN annually. For example, FinCEN studies the BSA records filed on U.S. dollar and foreign currency movement and transactions associated with Mexico and other foreign jurisdictions. These high level analyses aid in detection of illicit financial activity of specific targeted groups, such as Mexican drug trafficking organizations and other transnational criminal organizations operating in the United States and elsewhere.

          For example, our advanced data matching algorithms have allowed us to increase match rates between CMIRs, CTRs, and SARs by over 50 percent in some jurisdictions. This gives us insight into dollar flow from a foreign jurisdiction to the point the dollars are deposited into a U.S. bank, from which we can work to ultimately identify the foreign beneficiary of a wire emanating from the account.

          In another example, analysts have developed a product that allows investigators to review, evaluate, and compare the transactional and aggregate remittance activity of MSB agents using various "red flag" indicators to assist in the identification of agents acting as third party money launderers.

Advanced Analytics

          Naturally, FinCEN's ability to conduct this kind of complex analysis would be impossible without the BSA data financial institutions provide.

          There are also technical challenges to producing timely, cogent, and actionable intelligence products, useful to both our policy leaders and to field personnel. As I noted, filing protocols and the data within FinCEN reports vary from form to form, particularly with respect to those forms not filed strictly by financial institutions, such as the CMIR and Form 8300. Because of these variances, FinCEN analysts are challenged to find innovative solutions to match and fuse data as part of their mapping of illicit finance networks, identification of compromised financial institutions and jurisdictions, and understanding of schemes and methods for illicit finance.

          In the very recent past, our analysts often needed to develop ad hoc tools to help analyze the data because our technical backbone was unable to sufficiently support the layers of tasks required to query, download, integrate, sort, connect, and chart the data.

          Last fall, FinCEN began rolling out a key component in our IT Modernization Program to improve upon our ability to conduct analysis and make the BSA data available to a large number of federal and state agencies, including law enforcement and regulators. FinCEN Query allows users to easily access, query, and analyze 11 years of BSA data; apply filters to narrow search results; and utilize enhanced data capabilities. Our users are now able to look at the information more comprehensively, and we are excited to work with them in making sure that your filings become more valuable than ever before in this new system.

          To give you an idea of the value of the information your institutions provide, in the months since FinCEN Query went live last September, there have been over 1.1 million queries of the BSA data by more than 6,400 users. This past Wednesday alone, there were over 20,000 queries of the BSA data through FinCEN Query.

          With our technology advancements, we are now getting closer to being able to leverage predictive analytics to take our work even further. This will provide us with the ability to work with our law enforcement partners, review their top completed investigations, understand the money laundering indicators present in our data, parse through the existing BSA forms, and then develop automated business rules that will allow us to provide agencies with new leads indicative of similar illicit activity elsewhere.

          For example, FinCEN is working towards developing business rules based on information provided by our law enforcement and regulatory partners. Our goal is to dive deeper into aggregated regional and state level data to extract underlying drivers and trends between and among regions. We are doing this by automating the detection of regions and industries with significant changes, reviewing BSA records, and drilling down to understand which financial institutions are on the front lines of seeing changes in trends and patterns.

          Moving forward, we expect to use the strategic application of business rules on the data industry provides to not only detect, but also to "predict" where certain types of money laundering, such as the placement of dollars in connection with trade-based money laundering activities, might be manifested.

          This type of predictive analysis will significantly improve our intelligence and enforcement efforts by allowing us to focus on those vulnerable regions or financial sectors where money laundering or financial crimes are most prevalent. Furthermore, it will allow us to provide new leads to law enforcement, alert our regulatory partners, and develop "red flags" for industry so we can provide feedback on the kind of information that would be helpful in their SAR reporting.

          We are beginning to touch the very early parts of this capability; we are very excited to be heading in this direction and I greatly look forward to seeing the products when we are able to reach full implementation.

          In another aspect of our modernization, financial institutions will be required to utilize the new FinCEN reports, including CTRs and SARs, starting April 1, 2013. The new FinCEN reports were specifically developed to work with the new FinCEN Query system that we just rolled out, and these new FinCEN reports allow us, law enforcement, and regulators to slice and dice the information submitted in a much more advanced way.

          We're happy that more and more institutions are coming on board with the new formats in advance of the deadline. As of last Friday, approximately 90 percent of the batch-filed SARs and CTRs received from the largest financial institutions, and 60 percent of single SAR or CTR filings received (typically from smaller financial institutions), were submitted using the new formats. We know that industry is working hard to make the changes. One thing I want to point out in particular with respect to the new formats is the guidance that we put out last March with respect to new fields.

          As that guidance clearly explains, the new FinCEN CTR and FinCEN SAR do not create any new obligations or otherwise change existing statutory and regulatory expectations. Financial institutions must provide the most complete and accurate information known to them. They are not under an obligation to collect non-mandatory information simply because there is now a field for it. However, just as has always been the case, if financial institutions have information that is pertinent to a report, they need to be able to include it in the report, so that the CTR, SAR, or other FinCEN report is complete and accurate.

          FinCEN has and will continue to provide additional guidance and training materials in support of the new reports through Webinars, FAQs, and other publications and materials. And to keep this rapidly approaching deadline fresh in everyone's minds, we continue to work with our regulatory and industry partners by issuing our own reminders to industry.

          As a result of all the work that is being done within the industry, at FinCEN, and in partnership with regulatory and law enforcement partners, the adoption of the new reports will prove extremely valuable to our shared fight against money laundering, terrorist financing, and other financial crimes.

Conclusion

          My remarks today have focused extensively on the work being done by FinCEN's analytical team - not only their ongoing efforts, but where we are heading in the future. From the time I arrived at FinCEN, I have been continually impressed by the fascinating work our analysts are doing, and even more so, by their dedication each and every day to FinCEN's mission, and their desire to make a real difference as public servants.

          I've been in government long enough to know that FinCEN's analysts can stand toe-to-toe alongside the best analysts in the federal government and around the world. And to be their champion as Director of FinCEN is an honor. It is gratifying to hear how passionately our analysts feel about their work. In their own words, here is what some of them have to say:

"Arriving at FinCEN as an analyst from the banking compliance sector opened up a whole new world for me. I was really excited to join FinCEN because for the first time I would be able to view and analyze all of the SARs associated with a case and gain a better understanding of how my SARs were being used by FinCEN, as well as our Federal, state, and local partners. My first assignment was to analyze the movement "repatriation" of U.S. dollar currency from Mexico and the players engaged in the wholesale banknote industry. This project relied heavily on my banking knowledge, but it also required me to work alongside law enforcement, regulators, and the financial industry in a whole new capacity. I learned how best to review and analyze BSA data, but more importantly, I was having a real-time impact on the fight against Mexican Drug Cartels and their ability to place large amounts of illicit dollars back into the U.S. financial system. It was amazing that as a new analyst I could make such a difference."

"As a career analyst, I truly enjoy coming to work every day here at FinCEN for many reasons, but specifically because I am challenged by analyzing the BSA, adding value to a law enforcement case, developing a methodology for how money is laundered through a specific industry, or identifying a money laundering network. I think the best way to describe my job is to imagine five different 1,000 piece puzzles mixed together in a pile. My job is to try and determine how to put together each puzzle, while not knowing how many actual puzzles are in front of me. It's truly a rewarding and satisfying experience once you've finished a "puzzle" and are confident that you know not only what you're looking at, but that you can explain it to others."

          There is no doubt that we will never run out of puzzles to complete. And as the escalation of transnational criminal threats to the U.S. financial system has increased, so too has the imperative to ensure that FinCEN is fully maximizing its potential to disrupt this activity. I am hopeful that my remarks today have given you new insight into the team at FinCEN working to respond to these threats.

          But we can't do it alone. Your financial institutions are the eyes and ears in the fight against terrorists and other bad guys. The BSA data starts with you. It is the key to our defenses and we are depending on you. I am committed to maximizing our ability to be effective partners and colleagues.

          FinCEN is a critical partner in the fight against money laundering and terrorist financing. Our talented and dedicated team is committed to that mission. We have an incredible opportunity to serve the American public and to contribute to the safety of this country and the world. FinCEN will meet the challenges ahead working together with you, law enforcement, and our regulatory partners.

          Thank you once again for inviting me here to speak with you today.

###

Get back to us when you help get some money laundering banksters in jail!

NEW VIDEOS: Interviews from Enbridge blockade in Leonard MN & Indigenous Canadians barred from their consulate by Minneapolis police

Got a batch of videos here from the last week to check out. Glad to have a little chance to bring these interesting projects, including Idle No More MN & the Enbridge Blockade near Leonard MN (also known as the encampment) going strong since late February. All these videos are basically unedited and you can remix them as Creative Commons at your leisure!

Interview w Tom Goldtooth, Indigenous Environmental Network, the Native fight for natural world

Really fascinating interview, unedited, with Indigenous Environmental Network longtime organizer Tom Goldtooth inside the kitchen tent at the Enbridge Blockade/encampment near Leonard MN. Covers capitalism, colonialism, Indigenous organizing and tar sands resistance. Thanks Tom!

VIDEO - CREATIVE COMMONS W REMIX!

https://www.facebook.com/EnbridgeBlockade?ref=ts&fref=ts

https://www.facebook.com/pages/Indigenous-Environmental-Network/18626498...

Interview with Tito Ybarra, Enbridge protest encampment organizer & Native comedian

Interview with Tito Ybarra, camped at Enbridge Encampment/blockade at Leonard MN. A popular native comedian has been bottomlining the camp protesting above several pipelines operated by Enbridge without an easement on Red Lake ceded land. Covers humor in politics, organizing the camp & more.

SUBSCRIBE: The 1491s: http://www.youtube.com/user/the1491s

Slapping Medicine Man: http://www.youtube.com/watch?v=MVWLHMZ-ceE

Learn the AIM Song: Singing lessons by the 1491s: http://www.youtube.com/watch?v=xJ89HBfaLs4

Follow Tito: https://www.facebook.com/TitoBAYBAY

Comedy page: https://www.facebook.com/TitoComedy?fref=ts

https://www.facebook.com/EnbridgeBlockade?ref=ts&fref=ts

https://www.facebook.com/pages/Indigenous-Environmental-Network/18626498...

////////////

So these are the videos from the March 20 Idle No More protest in Minneapolis. @tshirttoby also shot a livestream.

Canadian citizens barred from access to their Consulate in downtown Minneapolis as IdleNoMore protesters try to register their concerns with the Canadian govt.

This is related to a major Idle No More symposium happening Friday Mar 21st

INFO https://www.facebook.com/events/449434278463290/?ref=3

VIDEO - CREATIVE COMMONS W REMIX!

PT1 http://youtu.be/fQHAB0QgoTc

PT2 http://youtu.be/cQ8nr3oO7qk

PT3 http://youtu.be/g19DQUKu2rA

LOL wow for the House of Cards: Cyprus bank confiscations likely beta test for mass filching of deposits across western world. "Cannot possibly comment"

Admittedly this is a little bit speculative but it looks pretty big.

lol wow I can't believe they are triggering a huge EU bank run in Cyprus by confiscating big slabs of bank accounts to satiate the European Central Bankers - it's blamed on rich Russians who 'deserve' to have their savings jacked en masse.

SEE: Cyprus: The World’s Biggest "Poker Game" | Zero Hedge. It is mind boggling, they could just isolate bad bank debt or "paper" Iceland style, but instead of course it's way more fun to traumatize everyone by stealing their money point-blank as a "stability levy". This is because when you get down to it, fractional reserve banking is a crisis-driven paper scam system, and the scamsters gotta get paid up front regardless of what insane precedent is set...

I just finished watching the old 1990s UK House of Cards series & Cyprus is the finale setting - and lol the gas reserves are the big deal, just like the secret oilfield in the TV show. Similar scam to nuke savers floated in Australia as well. See CASH GRAB: Inactive bank accounts to be seized | News.com.au && After Cyprus, Who Is Next? | Zero Hedge

A still from the pivotal endgame of House of Cards:

7510_4_large.jpg

Says a Cypriot bank employee: "Are we the guinea pigs? There's a feeling they are trying this out on us before they do it elsewhere." Cyprus bailout: 'people are panicking, they're afraid of losing their money' | World news | The Guardian

Are you ready for your Skinner box, ladies & gentlemen? The Big Theft is in Beta Testing! We must pay off all bank bondholders 100%, just eat the deposits!

As the Great British Leader Francis Urquhart put it: You might very well think that, but I cannot possibly comment

7510_1_large.jpg

Cyprus bailout: big implications in a small-scale rescue | World news | guardian.co.uk

Could The "Cyprus Fiasco" Occur In The United States? | Zero Hedge (you think?)

#Cyprus Depositors Vent Fury Through Social Media | Zero Hedge

Europe Scrambling With Last Minute Revision To Cyprus Deposit Confiscation Plan | Zero Hedge

Meanwhile out of control domestic loansharking nukes Detroit - cause BOND HOLDERS GOTTA GET PAID AS SOCIETY CRUMBLES: Wall Street: $474 Million, Detroit: 0 | Zero Hedge

The Rape Of Cyprus By The European Union & The IMF | Zero Hedge

Trololol for Rooskies with Bruce Krasting: Two Sides of Cyprus | Zero Hedge

ART: NEOFEUDALISMUS: Nein Nein Nein! | Zero Hedge

For Everyone Shocked By What Just Happened... And Why This Is Just The Beginning | Zero Hedge

Saxo Bank CEO: "This Is Full-Blown Socialism And I Still Can't Believe It Happened" | Zero Hedge

Germany And IMF's Initial Deposit Haircut Demand: 40% Of Total | Zero Hedge - stay classy, International Monetary Fund.

JPMorgan Asks "Has Europe Bazookaed Itself In The Foot", Answers "Yes" | Zero Hedge

ALSO: Let's look at the ol Fascist electoral outlook / unemployment chart: via Guest Post: Why Europe Is Still In Peril, In Two Charts | Zero Hedge

NOW:
euro-unemployment.png

THEN:

chart-german-unemployment-and-nazi-links.jpg

Well champs, what next? I think ruthless Tories running false flags, but who knows?

tumblr_mijrx3qMLF1rtyh7lo1_400.jpg

Stay Fly: Holy Smokes

Oh I dearly hope this is an authentic photo - isn't it easily the greatest news photograph ever? Floating around, see : Something Out of The Godfather... | E L V O M I T A R . C O M etc.

29551_10151411849205033_1020597159_n.jpg

Good luck to the Catholics, they need help like all of us. Regardless, there's no swag like Vatican swag.

The three main figures in this pic would make a solid Goodfellas trio.

Gallani, checking his phone, is the maestro, the schemer, but his rough touch sets in motion awkward consequences.

Agostini, upper right corner there, agonizes over the hijinks of the others. Looks down, closes his eyes, fingers the Rosary.

De Fiore, upper left, is the financial specialist, the man with the leads. He's the one who rolls with the Swiss bankers.

Drago lights the cigarette - he is of course the fixer, the tall man on the run, ever craning down, looking in on his operations.

Cuocco, facing away, mendacious but bumbling, he's a convenient scapegoat for the others and always a step behind.

City Pages Poll: A time for quixotic votes?

This is a bit of a joke, but after some really bad turns lately, a friend trying to raise my spirits a bit suggested that it would be a good idea to get people to vote for HongPong.com on Best Local Blog on CityPages. Is this high profile? Not really. Trendy? No. In with the cool cats? Dubious. Likely to win or even make top 5? HaHa.

If there is anyone who *really* deserves it it's Rich Neumeister & Open Secrets blog (http://opensecretsmn.blogspot.com/) , if only because no one else has really been following the matter of secret stuff in MN.

But I would say this site has done as much to circulate interesting new news as any non-corporate MN blog in 2012, including publishing hundreds of pages no one outside the system has seen before. Plus you can annoy the establishment more efficiently than any other choice.

Some highlights: Helping on the DRE drug scandal including publishing the BCA internal report along with working on the earlier video report & followups - which has 158,281 views right now, the MnDOT tracking system documents, Among the earliest Occupy Sandy notes. In early 2013 the MPD Strategic Information Center. In March a new FBI FOIA doc drop from spying campaigns on anarchists in Minnesota and Iowa.

Even the last story of 2012, about the Homeland Security TSA team and possible Vikings drone, spurred more coverage of the TSA's bloated unnecessary role at the NFL, though the drone was claimed not to be a government item. Also covered Idle No More at MOA and the first IdleNoMore protest in the US at the Canadian consulate.

On less local: The story on Homeland Security Investigations (HSI), an almost totally unknown & quite crazy new police agency in the federal government -- and indeed basically no one had blogged about it, or written mainstream stories addressing their growing collection of scary domestic riot battlewagons that are once again a popular meme.

For the weird goings-on, the shady FawkesSec case. Perhaps more significantly, domestic detention facilities material turned up. The shady world of domestic military policies stemming from the 2008 Republican National Convention -- analysis of this led to a story that got some bounce at least!

Also, the Wisconsin recall & the crushing of the Ron paul movement. Homeland Security crackdown on the Occupy movement. The development of post-Facebook social networking alternatives.

It is not a huge number of posts over the year but I would say they are not too shabby and usually bring something new and unusual to light.

Instead of buddying up to the usual suspects and playing their game, the narrative thread over the last year has cut its own path, with great support from sources and friends.

The info: Vote in the Best of the Twin Cities 2013 Readers' Poll - Minneapolis - Arts - Dressing Room

And vote here: City Pages Poll. Vote for who you like!!

Reviewing the 2013 stories cheered me up though. It's hard to get a sense of direction, some kind of feeling there's traction from writing on the ethereal interwebs.

There's been a lot of hard parts of life to get through lately -- hug your friends. I'm taking a few days away from the digital sphere of madness -- unable to promote this Quixotic mission in the interwebs -- but back around next week.

Disgusting new FDA rule change would let toxic aspartame in the Children's flavored milk! It fries Insulin sweetness response - Yukkk

Blah this is just worth posting quickly. There is only one public comment on there right now. I have to say the Federal Register website is markedly better than it used to be, good for them.

Saw this via: Activist Post: Aspartame in Milk Without a Label? Big Dairy Petitions FDA For Approval. Also CBCNews reported that sweeteners do affect metabolism Feb 17 2013: Artificial sweeteners tied to obesity, Type 2 diabetes - Health - CBC News

Diet pop and other artificially sweetened products may cause us to eat and drink even more calories and increase our risk for obesity and Type 2 diabetes, researchers are learning.

Former McGill University researcher Dana Small specializes in the neuropsychology of flavour and feeding at Yale University in New Haven, Conn. Small said there's mounting evidence that artificial sweeteners have a couple of problematic effects. Sugar substitutes such as sucralose and aspartame are more intensely sweet than sugar and may rewire taste receptors so less sweet, healthier foods aren't as enjoyable, shifting preferences to higher calorie, sweeter foods, she said.

Small and some other researchers believe artificial sweeteners interfere with brain chemistry and hormones that regulate appetite and satiety. For millennia, sweet taste signalled the arrival of calories. But that's no longer the case with artificial sweeteners.

"The sweet taste is no longer signalling energy and so the body adapts," Small said in an interview with CBC News. "It's no longer going to release insulin when it senses sweet because sweet now is not such a good predictor of the arrival of energy."

Susan Swithers, a psychology professor at Purdue University in West Lafayette, Ind., studies behavioural neuroscience. "Exposure to high-intensity sweeteners could change the way that sweet tastes are processed," she says.

"A number of epidemiological studies show that people who do consume high intensity sweeteners show differences in metabolic responses, have an increased risk for things like Type 2 diabetes and also have an increased risk for overweight and obesity."

This week, researchers in France who followed the drinking habits of 66,000 women for 14 years reported that both regular and diet pop increase the risk of developing Type 2 diabetes, but the risk was higher among diet drinkers — 15 per cent higher for consumption of as little as 500 ml per week and 59 per cent higher for those having 1.5 litres per week.

Not expecting TV stations and newspapers dependent on aspartame-contaminated product advertising to really talk about this much.

Hence the logical thing to do is put this crap into the state subsidized school lunch milk. Quality Industrial Eugenics in Action. I thought it was interesting the manufacturers have done psychological research to determine what labels are attractive to children -- they should really have to post all of that material on the Internet if they are going to do such creepy research. It reminds me of insane "rational" Germans.

Here it is:::

Federal Register | Flavored Milk; Petition to Amend the Standard of Identity for Milk and 17 Additional Dairy Products : This article has a comment period that ends in 87 days (05/21/2013).

Notice; Request For Comments, Data, And Information.

The Food and Drug Administration (FDA) is announcing that the International Dairy Foods Association (IDFA) and the National Milk Producers Federation (NMPF) have filed a petition requesting that the Agency amend the standard of identity for milk and 17 other dairy products to provide for the use of any safe and suitable sweetener as an optional ingredient. FDA is issuing this notice to request comments, data, and information about the issues presented in the petition.

........

The IDFA and NMPF jointly submitted a citizen petition (Ref. 1) on March 16, 2009, requesting that FDA amend the standard of identity in part 131 (21 CFR part 131) for milk (§ 131.110). Specifically, the petition requests that FDA amend § 131.110(c)(2) to allow the use of “any safe and suitable” sweetener in optional characterizing flavoring ingredients used in milk. [1] The petition also requests that FDA similarly amend the standards of identity for 17 other milk and cream products. Those standards (hereinafter referred to as the “additional dairy standards”) are as follows: Acidified milk (§ 131.111), cultured milk (§ 131.112), sweetened condensed milk (§ 131.120), nonfat dry milk (§ 131.125), nonfat dry milk fortified with vitamins A and D (§ 131.127), evaporated milk (§ 131.130), dry cream (§ 131.149), heavy cream (§ 131.150), light cream (§ 131.155), light whipping cream (§ 131.157), sour cream (§ 131.160), acidified sour cream (§ 131.162), eggnog (§ 131.170), half-and-half (§ 131.180), yogurt (§ 131.200), lowfat yogurt (§ 131.203), and nonfat yogurt (§ 131.206). The petition asks that the standards of identity for these products be amended to provide for the use of any safe and suitable sweetener in the optional ingredients. [2]

IDFA and NMPF request their proposed amendments to the milk standard of identity to allow optional characterizing flavoring ingredients used in milk (e.g., chocolate flavoring added to milk) to be sweetened with any safe and suitable sweetener—including non-nutritive sweeteners such as aspartame. IDFA and NMPF state that the proposed amendments would promote more healthful eating practices and reduce childhood obesity by providing for lower-calorie flavored milk products. They state that lower-calorie flavored milk would particularly benefit school children who, according to IDFA and NMPF, are more inclined to drink flavored milk than unflavored milk at school. As further support for the petition, IDFA and NMPF state that the proposed amendments would assist in meeting several initiatives aimed at improving the nutrition and health profile of food served in the nation's schools. Those initiatives include state-level programs designed to limit the quantity of sugar served to children during the school day. Finally, IDFA and NMPF argue that the proposed amendments to the milk standard of identity would promote honesty and fair dealing in the marketplace and are therefore appropriate under section 401 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 341).

The petition acknowledges that the use of non-nutritive sweeteners in optional characterizing flavoringingredients in milk is allowed under the existing regulatory scheme, with certain additional requirements. The regulatory framework governing the naming of standardized foods that do not fully comply with the relevant standards of identity changed with the passage of the Nutrition Labeling and Education Act of 1990 and FDA's rulemaking establishing the Agency's requirements for foods named by use of a nutrient content claim and a standardized term (§ 130.10 (21 CFR 130.10)). Section 130.10(d) allows the addition of safe and suitable ingredients to a food named by use of a nutrient content claim and a standardized term when these ingredients are used to, among other things, add sweetness to ensure that the modified food is not inferior in performance characteristic to the standardized food even if such ingredients are not specifically provided for by the relevant food standard. Therefore, while the milk standard of identity in § 131.110 only provides for the use of “nutritive sweetener” in an optional characterizing flavor, milk may contain a characterizing flavor that is sweetened with a non-nutritive sweetener if the food's label bears a nutrient content claim (e.g., “reduced calorie”) and the non-nutritive sweetener is used to add sweetness to the product so that it is not inferior in its sweetness property compared to its standardized counterpart. However, IDFA and NMPF argue that nutrient content claims such as “reduced calorie” are not attractive to children, and maintain that consumers can more easily identify the overall nutritional value of milk products that are flavored with non-nutritive sweeteners if the labels do not include such claims. Further, the petitioners assert that consumers do not recognize milk—including flavored milk—as necessarily containing sugar. Accordingly, the petitioners state that milk flavored with non-nutritive sweeteners should be labeled as milk without further claims so that consumers can “more easily identify its overall nutritional value.”

As to the additional dairy standards, IDFA and NMPF state that administrative efficiency counsels in favor of similar changes. As long as FDA is dedicating resources to amending the standard of identity for milk, they argue, the Agency should also amend the standards for these products at the same time. They state that it is most efficient to consider all of the proposals together. According to the petition, the requested changes to the additional dairy standards present the same issues as the milk standard, and it is therefore appropriate to consider all of the requested changes together.

........

FDA requests that interested persons submit comments, data, and information concerning the need for, and the appropriateness of, amending the standard of identity for milk and the additional dairy standards. FDA specifically requests comment and supporting data, as appropriate, on the following matters:

1. The petition states that amending the standard of identity for milk (§ 131.100) to allow the use of “any safe and suitable” sweetener in optional characterizing flavoring ingredients would promote honesty and fair dealing in the interest of consumers by creating consistency in the naming of flavored milk products because flavored milk could contain a non-nutritive sweetener without bearing a nutrient content claim (e.g., “reduced sugar”) as part of its name. Would the proposed amendments promote honesty and fair dealing in the interest of consumers?

2. If the standard of identity for milk is amended as requested by petitioners, milk manufacturers could use non-nutritive sweeteners in flavored milk without a nutrient content claim in its labeling. Will the inclusion of the non-nutritive sweeteners in the ingredient statement provide consumers with sufficient information to ensure that consumers are not misled regarding the characteristics of the milk they are purchasing?

3. The petition states that flavored milk labels that bear nutrient content claims such as “reduced calorie” are unattractive to children. What, if any, data are available on children's purchase habits with regard to flavored milks labeled as “reduced calorie flavored milk,” “no sugar added,” “less sugar,” etc?

4. The petition states that if FDA dedicates resources to amending the standard of identity for milk, for purposes of administrative efficiency the Agency should also amend the Additional Dairy Standards because the issues presented are the same with respect to the use of non-nutritive sweeteners. Would amending the Additional Dairy Standards as requested promote honesty and fair dealing in the interest of consumers? If the labels of these products do not bear nutrient content claims, would the inclusion of non-nutritive sweeteners in the ingredient statements provide consumers with sufficient information to distinguish between the two types of products (i.e., sweetened with nutritive versus non-nutritive sweeteners) so that consumers are not misled? [3]

5. The petition notes that ice cream is permitted to contain either a nutritive or non-nutritive sweetener without the label bearing a nutrient content claim or otherwise distinguishing the two types of products from one another. Are the considerations underlying FDA amendments to the standard of identity for ice cream [4] applicable to the requested amendments to the standard of identity for milk or the Additional Dairy Standards?

6. If the standard of identity for milk and the Additional Dairy Standards are amended in the manner requested by the petition, what will be the effect on search costs [5] for consumers who would like to determine whether a product contains a nutritive or non-nutritive sweetener?

After reviewing the comments received, FDA will further evaluate the need for, and appropriateness of, the amendments requested by IDFA and NMPF and will decide what further actions are appropriate. For a copy of the petition filed by IDFA and NMPF please go to: http://www.regulations.gov and insert “Docket No. FDA-2009-P-0147” into the “Search” box.

(Authority: 21 U.S.C. 321 et seq.)

FOOTNOTES

1. Section 131.110(c)(2) currently allows the use of “nutritive sweetener” in optional characterizing flavoring ingredients used in milk.Show citation box

Back to Context

2. The National Yogurt Association (NYA) submitted a citizen petition on February 18, 2000 (Docket No. FDA-2000-P-0126) that requested that FDA make similar changes to the standards of identity for yogurt and cultured milk. Among other requested changes, the NYA petition asked that FDA amend the standards of identity for yogurt and cultured milk to permit the use of all safe and suitable sweeteners, while also revoking the standards of identity for lowfat and nonfat yogurt. In 2009, FDA proposed to grant the petition in part, and to deny it in part. See“Milk and Cream Products and Yogurt Products; Proposal to Revoke the Standards for Lowfat and Nonfat Yogurt and to Amend the Standard for Yogurt” (74 FR 2443, January 15, 2009). Thus, FDA has already requested comments on issues that are similar to the issues IDFA and NMPF raise with respect to yogurt, lowfat yogurt, nonfat yogurt, and cultured milk, and is addressing those issues through the rulemaking initiated in response to NYA's petition. Therefore, FDA is not currently requesting comments on IDFA and NMPF's suggested amendments to the yogurt, lowfat yogurt, nonfat yogurt, and cultured milk standards.

Back to Context

3. Although FDA requests comments relevant to the IDFA and NMPF petition, FDA does not seek comments regarding the requested amendments to the standards of identity for yogurt, lowfat yogurt, nonfat yogurt, and cultured milk. FDA has already sought and collected comments regarding similar amendments to those standards in a proposed rulemaking. See 74 FR 2443.

Back to Context

4. FDA amended the standard of identity for ice cream to allow for “any safe and suitable sweetener” to be used in ice cream. See “ Frozen Desserts: Removal of Standards of Identity for Ice Milk and Goat's Milk Ice Milk; Amendment of Standards of Identity for Ice Cream and Frozen Custard and Goat's Milk Ice Cream” (59 FR 47072, September 14, 1994) (Ref 2). Before FDA's amendment, the standard provided only for “nutritive carbohydrate sweeteners.”

Back to Context

5. Search costs include the time and energy it would take an average consumer to read a label and determine whether the product contained the nutritive sweetener or the artificial sweetener.

Bleck I will leave i there. What the hell is the difference between a nutritive sweetener and an artificial sweetener? Sweetness is a psyop and it's time to subsidize the toxic flow into the Childrens!

Previously: Apr 2011: Privatized environmental impact statements in Federal Register

Immortal Technique joins Alex Jones

This makes for some amusing Saturday afternoon viewing -- notable independent hiphop artist Immortal Technique joins Alex Jones for about 1hr20min. Getting right at the issues of Latin America, politics, immigration & moar. Format note: I would say that Jones interviews with a pretty wide cross section of subjects in the more mellow Infowars Nightly News setting works fairly well - it's more reflective than a quick newsradio news format. Good discussion of banks laundering drug money as well on HSBC and Wachovia/Wells Fargo.

Here is the trailer for Immortal's new movie:

Now available for purchase ~$17 http://store.viperrecords.com/product_p/roit.htm
IMDB page: http://www.imdb.com/title/tt1982854/
Announcement thread: http://www.immortaltechnique.co.uk/Thread-The-R-evolution-of-Immortal-Te...

UPDATE: Here is a classic 2006 video by my friend FluxRostrum w ImmortalTechnique & Alex Jones on the 5th anniversary of 9/11. For moar Flux: http://fluxview.com/USA/ & http://twitter.com/fluxrostrum

The Art of Failing Gracefully: DEA & DOJ need to cover up Sinaloa cartel informant Vicente Zambada, the quid-pro-quo system, "Fast & Furious" arms distribution for Great Justice!!!

Hundreds of billions of dollars, between cash flows and valuations, depend upon the ability of American law enforcement structures avidly maintaining their illusionary belief system about laundered drug money, informants, and banking systems. All of this is normal, they say, it's normal to throw the book at tons of little fish while mysteriously failing to find any really substantial laundered drug money or criminal prosecution for lawyers and bankers involved. The name of the game is to fail gracefully at detecting and punishing drug money in the banking system, to create a PSYOP of coherency on top of countless total ironies, structured protection & utter failures.

By the same token, the US government really always tends to nudge all markets into being dominated by a few big actors, whether "legal" or "gray" or "shadow" - be they milk producers or drug traffickers. They want to minimize the number of PayPals on the market, and the number of major drug players.

At some point it apparently came to pass that formal informant deals with favored cartels would also be inked -- the Sinaloa cartel even officially promoted as the proper dominator of certain "plazas" in public relations items. Because no one really cares about war on drugs policy -- it's not like this horrible policy affects the level of gun violence in North America -- nothing ever gets done about this at the federal level.

It's beginning to finally dawn on people that the secretive Federal Reserve System wire transfer networks - casually known as Fedline & Fedwire -- must somehow be involved [noted in Oct 2010], and I have never seen a single person even bother to claim to the contrary. The banking wire transfer systems are inextricably part of the "protected" drug money laundering system which is "protected" in the same formal way as at least some of these Sinaloa crucial informant thugs. Let's see if state police can pry into the Fed. LOL!!

So anyway, we have hard proof of it in court that Jesus Vicente Zambada-Niebla's attorney was in fact an informant operated expressly to pull intel from Sinaloa into the US government.

The questions: how much the "kingpin" deserves cover from that, especially since he was moving along Fast & Furious guns to waste other cartels & assorted innocent people? How many documents showing underlying protected illegal relationships will the judge force into the public record? How much 'controlled demolition' will the public tolerate in this relatively obscure case?

This gets a nice update from Abby Martin & Andrew Kennis: Next Big DEA Scandal | Interview with Andrew Kennis - YouTube

PREVIOUSLY (about halfway down many details): ECHELON GCSB military surveillance vs New Zealand & Kim Dotcom; IRC logs on Anonymous false flag attacks viewed anew; Barrett Brown setup via #OpCartel | HongPong.com [Oct 22 2012]

All of this insane crap is directly related to the formal FBI informant illegal operations system which gets exposed in tiny nibbles, for a little more documentation on illegal ops see recently The New 21st Century COINTELPRO Mobius Strip: Undisclosed Participation, "OTHERWISE ILLEGAL ACTIVITY," Federal & State Informants, drug ops auditing in MN [Jan 31 2012]. Unfortunately the DEA's habit of giving traffickers informant status means that more nasty drugs easily find their way into Minnesota from handled/protected figures in Chicago. Thanks so much, Federal Government!

LINX: Cartel Member Says Fast And Furious Aimed To Supply Guns To Sinaloa Cartel - Business Insider (Aug 10 2012)

Mexican Official Accuses CIA Of 'Managing' Not 'Fighting' The Drug Trade - Business Insider (July 24 2012)

One batch of Zambada Court files: http://narcosphere.narconews.com/userfiles/70/Pleadings.Sinaloa.Zambada.pdf

More recent Narcosphere items - not a bad place to start: Big Media Discovers US Special Ops are Targeting Mexican Crime Organizations | the narcosphere [January 21 2013]

Fast and Furious Blurs the Line Between Cops and Crooks | the narcosphere [Bill Conroy Jan 6 2013]

Banks Are "Where the Money Is" In The Drug War | the narcosphere [Bill Conroy Dec 1 2012]

Background from Narcosphere: US Government Informant Helped Sinaloa Narcos Stay Out of Jail | the narcosphere [Bill Conroy Aug 7 2011]

US Prosecutors Fear Jailbreak Plot by Sinaloa “Cartel” Leader Zambada Niebla | the narcosphere [Bill Conroy Sept 17 2011]

US Government Accused of Seeking to Conceal Deal Cut With Sinaloa “Cartel” | the narcosphere [Bill Conroy Oct 1 2011]

Zambada Niebla Case Exposes US Drug War Quid Pro Quo | the narcosphere [Bill Conroy Dec 10 2011]

/////////////

Further background: 'El Chapo' Guzmán, Mexico's Most Powerful Drug Lord - Newsweek and The Daily Beast

Lolzy fake letter of love: Mexican Drug Cartels Thank Obama for Gun Control Push - BlackListedNews.com

Why Americans Must End America’s Self-Generating Wars | Global Research [Peter Dale Scott - Aug 30 2012]

America’s Secret Deal with the Mexican Drug Cartels | Global Research [Tom Burghardt Sept 3 2012] - MORE: Antifascist Calling...

Top enforcement agencies don't track crimes by informants [USA TODAY Oct 7 2012]

Narco News: US, Mexican Officials Brokering Deals with Drug “Cartels,” WikiLeaks Documents Show

Narco News: Funcionarios mexicanos y de EEUU negocian con "cárteles" de droga, según documentos de WikiLeaks

Mexican Special Forces Employed as Death Squads in Drug War, Email Records Released by WikiLeaks Reveal | the narcosphere

SIGNALING SYSTEM USG <-> CARTELS: http://wikileaks.org/gifiles/docs/1747720_re-fwd-re-fw-from-mx1-2-.html - FAKEDRUGWARSIGINT is the lulziest form of SIGINT, who can deny??

The whole thing is such a spectacular sham it really calls into question whether federal prosecutors, informants, drug laws and the rest of the charade should even exist in the first place. It is truly a massive stage of fakeness, and frankly none of these people deserve to have any influence over the level of drugs available in society.

Not that drugs are harmless, clearly they all have some negative qualities, but clearly this entire schema is hosed well beyond the point of no return, and can only produce more violence and chemical dependency as it drags us all into hell. There are of course countless rabbit holes involving drug trafficking links with 'deep events' like the CIA, Iran-Contra, 9/11, the Taliban & al-Qaeda etc and I'm not going to get into that much here, though plenty of Iran-Contra related background fills the history of links above. Also as linked here what is the role of NORTHCOM anyway?

Syndicate content