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		<title>How a big US bank laundered billions from Mexico&#8217;s murderous drug gangs</title>
		<link>http://www.brainwaving.com/2011/04/11/how-a-big-us-bank-laundered-billions-from-mexicos-murderous-drug-gangs/</link>
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		<pubDate>Mon, 11 Apr 2011 22:49:24 +0000</pubDate>
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		<description><![CDATA[As the violence spread, billions of dollars of cartel cash began to seep into the global financial system. But a special investigation by the Observer reveals how the increasingly frantic warnings of one London whistleblower were ignored. A soldier guards marijuana that is being incinerated in Tijuana, Mexico. Photograph: Guillermo Arias/AP On 10 April 2006, [...]]]></description>
			<content:encoded><![CDATA[<p>As the violence spread, billions of dollars of cartel cash began to seep  into the global financial system. But a special investigation by the  Observer reveals how the increasingly frantic warnings of one London  whistleblower were ignored.</p>
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<div id="main-content-picture"><img class="alignleft" src="http://static.guim.co.uk/sys-images/Observer/Pix/pictures/2011/4/1/1301681009143/Mexico-drugs-007.jpg" alt="Mexico drugs" width="414" height="248" /></p>
<div>A soldier guards marijuana that is being incinerated in Tijuana, Mexico. Photograph: Guillermo Arias/AP</div>
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<p>On 10 April 2006, a DC-9 jet landed in the port city of Ciudad del Carmen, on the Gulf of <a title="More from guardian.co.uk on Mexico" href="http://www.guardian.co.uk/world/mexico">Mexico</a>,  as the sun was setting. Mexican soldiers, waiting to intercept it,  found 128 cases packed with 5.7 tons of cocaine, valued at $100m. But  something else – more important and far-reaching – was discovered in the  paper trail behind the purchase of the plane by the Sinaloa  narco-trafficking cartel.</p>
<p>From <a href="http://www.guardian.co.uk/">the Guardian</a> by Ed Vulliamy</p>
<p>During a 22-month investigation by  agents from the US Drug Enforcement Administration, the Internal Revenue  Service and others, it emerged that the cocaine smugglers had bought  the plane with money they had laundered through one of the biggest banks  in the <a title="More from guardian.co.uk on United States" href="http://www.guardian.co.uk/world/usa">United States</a>: Wachovia, now part of the giant Wells Fargo.</p>
<p>The  authorities uncovered billions of dollars in wire transfers,  traveller&#8217;s cheques and cash shipments through Mexican exchanges into  Wachovia accounts. Wachovia was put under immediate investigation for  failing to maintain an effective anti-money laundering programme. Of  special significance was that the period concerned began in 2004, which  coincided with the first escalation of violence along the US-Mexico  border that ignited the current drugs war.</p>
<p>Criminal proceedings  were brought against Wachovia, though not against any individual, but  the case never came to court. In March 2010, Wachovia settled the  biggest action brought under the US bank secrecy act, through the US  district court in Miami. Now that the year&#8217;s &#8220;deferred prosecution&#8221; has  expired, the bank is in effect in the clear. It paid federal authorities  $110m in forfeiture, for allowing transactions later proved to be  connected to drug smuggling, and incurred a $50m fine for failing to  monitor cash used to ship 22 tons of cocaine.</p>
<p>More shocking, and  more important, the bank was sanctioned for failing to apply the proper  anti-laundering strictures to the transfer of $378.4bn – a sum  equivalent to one-third of Mexico&#8217;s gross national product – into dollar  accounts from so-called <em>casas de cambio</em> (CDCs) in Mexico, currency exchange houses with which the bank did business.</p>
<p>&#8220;Wachovia&#8217;s  blatant disregard for our banking laws gave international cocaine  cartels a virtual carte blanche to finance their operations,&#8221; said  Jeffrey Sloman, the federal prosecutor. Yet the total fine was less than  2% of the bank&#8217;s $12.3bn profit for 2009. On 24 March 2010, Wells Fargo  stock traded at $30.86 – up 1% on the week of the court settlement.</p>
<p>The  conclusion to the case was only the tip of an iceberg, demonstrating  the role of the &#8220;legal&#8221; banking sector in swilling hundreds of billions  of dollars – the blood money from the murderous drug trade in Mexico and  other places in the world – around their global operations, now bailed  out by the taxpayer.</p>
<p>At the height of the 2008 banking crisis,  Antonio Maria Costa, then head of the United Nations office on drugs and  crime, said he had evidence to suggest the proceeds from drugs and  crime were &#8220;the only liquid investment capital&#8221; available to banks on  the brink of collapse. &#8220;Inter-bank loans were funded by money that  originated from the <a title="More from guardian.co.uk on Drugs trade" href="http://www.guardian.co.uk/world/drugs-trade">drugs trade</a>,&#8221; he said. &#8220;There were signs that some banks were rescued that way.&#8221;</p>
<p>Wachovia  was acquired by Wells Fargo during the 2008 crash, just as Wells Fargo  became a beneficiary of $25bn in taxpayers&#8217; money. Wachovia&#8217;s  prosecutors were clear, however, that there was no suggestion Wells  Fargo had behaved improperly; it had co-operated fully with the  investigation. Mexico is the US&#8217;s third largest international trading  partner and Wachovia was understandably interested in this volume of  legitimate trade.</p>
<p>José Luis Marmolejo, who prosecuted those running one of the <em>casas de cambio</em> at the Mexican end, said: &#8220;Wachovia handled all the transfers. They never reported any as suspicious.&#8221;</p>
<p>&#8220;As  early as 2004, Wachovia understood the risk,&#8221; the bank admitted in the  statement of settlement with the federal government, but, &#8220;despite these  warnings, Wachovia remained in the business&#8221;. There is, of course, the  legitimate use of CDCs as a way into the Hispanic market. In 2005 the  World Bank said that Mexico was receiving $8.1bn in  remittances.</p>
<p>During research into the Wachovia Mexican case, the <em>Observer</em> obtained documents previously provided to financial regulators. It  emerged that the  alarm that was ignored came from, among other places,  London, as a result of the diligence of one of the most important  whistleblowers of our time. A man who, in a series of interviews with  the <em>Observer</em>, adds detail to the documents, laying bare the  story of how Wachovia was at the centre of one of the world&#8217;s biggest  money-laundering operations.</p>
<p>Martin Woods, a Liverpudlian in his  mid-40s, joined the London office of Wachovia Bank in February 2005 as a  senior anti-money laundering officer. He had previously served with the  Metropolitan police drug squad. As a detective he joined the  money-laundering investigation team of the National Crime Squad, where  he worked on the British end of the Bank of New York money-laundering  scandal in the late 1990s.</p>
<p>Woods talks like a police officer – in  the best sense of the word: punctilious, exact, with a roguish humour,  but moral at the core. He was an ideal appointment for any bank eager to  operate a diligent and effective risk management policy against the  lucrative scourge of high finance: laundering, knowing or otherwise, the  vast proceeds of criminality, tax-evasion, and dealing in arms and  drugs.</p>
<p>Woods had a police officer&#8217;s eye and a police officer&#8217;s  instincts – not those of a banker. And this influenced not only his  methods, but his mentality. &#8220;I think that a lot of things matter more  than money – and that marks you out in a culture which appears to  prevail in many of the banks in the world,&#8221; he says.</p>
<p>Woods was set  apart by his modus operandi. His speciality, he explains, was his  application of a &#8220;know your client&#8221;, or KYC, policing strategy to  identifying dirty money. &#8220;KYC is a fundamental approach to anti-money  laundering, going after tax evasion or counter-terrorist financing. Who  are your clients? Is the documentation right? Good, responsible banking  involved always knowing your customer and it still does.&#8221;</p>
<p>When he  looked at Wachovia, the first thing Woods noticed was a deficiency in  KYC information. And among his first reports to his superiors at the  bank&#8217;s headquarters in Charlotte, North Carolina, were observations on a  shortfall in KYC at Wachovia&#8217;s operation in London, which he set about  correcting, while at the same time implementing what was known as an  enhanced transaction monitoring programme, gathering more information on  clients whose money came through the bank&#8217;s offices in the City, in  sterling or euros. By August 2006, Woods had identified a number of  suspicious transactions relating to <em>casas de cambio</em> customers in Mexico.</p>
<p>Primarily,  these involved deposits of traveller&#8217;s cheques in euros. They had  sequential numbers and deposited larger amounts of money than any  innocent travelling person would need, with inadequate or no KYC  information on them and what seemed to a trained eye to be dubious  signatures. &#8220;It was basic work,&#8221; he says. &#8220;They didn&#8217;t answer the  obvious questions: &#8216;Is the transaction real, or does it look synthetic?  Does the traveller&#8217;s cheque meet the protocols? Is it all there, and if  not, why not?&#8217;&#8221;</p>
<p>Woods discussed the matter with Wachovia&#8217;s global  head of anti-money laundering for correspondent banking, who believed  the cheques could signify tax evasion. He then undertook what banks call  a &#8220;look back&#8221; at previous transactions and saw fit to submit a series  of SARs, or suspicious activity reports, to the authorities in the UK  and his superiors in Charlotte, urging the blocking of named parties and  large series of sequentially numbered traveller&#8217;s cheques from Mexico.  He issued a number of SARs in 2006, of which 50 related to the <em>casas de cambio</em> in Mexico. To his amazement, the response from Wachovia&#8217;s Miami office,  the centre for Latin American business, was anything but supportive –  he felt it was quite the reverse.</p>
<p>As it turned out, however, Woods  was on the right track. Wachovia&#8217;s business in Mexico was coming under  closer and closer scrutiny by US federal law enforcement. Wachovia was  issued with a number of subpoenas for information on its Mexican  operation. Woods has subsequently been informed that Wachovia had six or  seven thousand subpoenas. He says this was &#8220;An absurd number. So at  what point does someone at the highest level not get the feeling that  something is very, very wrong?&#8221;</p>
<p>In April and May 2007, Wachovia –  as a result of increasing interest and pressure from the US attorney&#8217;s  office – began to close its relationship with some of the <em>casas de cambio</em>.  But rather than launch an internal investigation into Woods&#8217;s alerts  over Mexico, Woods claims Wachovia hung its own money-laundering expert  out to dry. The records show that during 2007 Woods &#8220;continued to submit  more SARs related to the <em>casas de cambio</em>&#8220;.</p>
<p>In July 2007, all of Wachovia&#8217;s remaining 10 Mexican <em>casa de cambio</em> clients operating through London suddenly stopped doing so. Later in  2007, after the investigation of Wachovia was reported in the US  financial media, the bank decided to end its remaining relationships  with the Mexican <em>casas de cambio</em> globally. By this time, Woods  says, he found his personal situation within the bank untenable; while  the bank acted on one level to protect itself from the federal  investigation into its shortcomings, on another, it rounded on the man  who had been among the first to spot them.</p>
<p>On 16 June Woods was  told by Wachovia&#8217;s head of compliance that his latest SAR need not have  been filed, that he had no legal requirement to investigate an overseas  case and no right of access to documents held overseas from Britain,  even if they were held by Wachovia.</p>
<p>Woods&#8217;s life went into  freefall. He went to hospital with a prolapsed disc, reported sick and  was told by the bank that he not done so in the appropriate manner, as  directed by the employees&#8217; handbook. He was off work for three weeks,  returning in August 2007 to find a letter from the bank&#8217;s compliance  managing director, which was unrelenting in its tone and words of  warning.</p>
<p>The letter addressed itself to what the manager called  &#8220;specific examples of your failure to perform at an acceptable  standard&#8221;. Woods, on the edge of a breakdown, was put on sick leave by  his GP; he was later given psychiatric treatment, enrolled on a stress  management course and put on medication.</p>
<p>Late in 2007, Woods  attended a function at Scotland Yard where colleagues from the US were  being entertained. There, he sought out a representative of the Drug  Enforcement Administration and told him about the <em>casas de cambio</em>,  the SARs and his employer&#8217;s reaction. The Federal Reserve and officials  of the office of comptroller of currency in Washington DC then &#8220;spent a  lot of time examining the SARs&#8221; that had been sent by Woods to  Charlotte from London.</p>
<p>&#8220;They got back in touch with me a while  afterwards and we began to put the pieces of the jigsaw together,&#8221; says  Woods. What they found was – as Costa says – the tip of the iceberg of  what was happening to drug money in the banking industry, but at least  it was visible and it had a name: Wachovia.</p>
<p>In June 2005,  the DEA, the criminal division of the Internal Revenue Service and the  US attorney&#8217;s office in southern Florida began investigating wire  transfers from Mexico to the US. They were traced back to correspondent  bank accounts held by <em>casas de cambio</em> at Wachovia. The CDC accounts were supervised and managed by a business unit of Wachovia in the bank&#8217;s Miami offices.</p>
<p>&#8220;Through  CDCs,&#8221; said the court document, &#8220;persons in Mexico can use hard  currency and … wire transfer the value of that currency to US bank  accounts to purchase items in the United States or other countries. The  nature of the CDC business allows money launderers the opportunity to  move drug dollars that are in Mexico into CDCs and ultimately into the  US banking system.</p>
<p>&#8220;On numerous occasions,&#8221; say the court papers,  &#8220;monies were deposited into a CDC by a drug-trafficking organisation.  Using false identities, the CDC then wired that money through its  Wachovia correspondent bank accounts for the purchase of airplanes for  drug-trafficking organisations.&#8221; The court settlement of 2010 would  detail that &#8220;nearly $13m went through correspondent bank accounts at  Wachovia for the purchase of aircraft to be used in the illegal  narcotics trade. From these aircraft, more than 20,000kg of cocaine were  seized.&#8221;</p>
<p>All this occurred despite the fact that Wachovia&#8217;s  office was in Miami, designated by the US government as a  &#8220;high-intensity money laundering and related financial crime area&#8221;, and a  &#8220;high-intensity drug trafficking area&#8221;. Since the drug cartel war began  in 2005, Mexico had been designated a high-risk source of money  laundering.</p>
<p>&#8220;As early as 2004,&#8221; the court settlement would read,  &#8220;Wachovia understood the risk that was associated with doing business  with the Mexican CDCs. Wachovia was aware of the general industry  warnings. As early as July 2005, Wachovia was aware that other large US  banks were exiting the CDC business based on [anti-money laundering]  concerns … despite these warnings, Wachovia remained in business.&#8221;</p>
<p>On  16 March 2010, Douglas Edwards, senior vice-president of Wachovia Bank,  put his signature to page 10 of a 25-page settlement, in which the bank  admitted its role as outlined by the prosecutors. On page 11, he signed  again, as senior vice-president of Wells Fargo. The documents show  Wachovia providing three services to 22 CDCs in Mexico: wire transfers, a  &#8220;bulk cash service&#8221; and a &#8220;pouch deposit service&#8221;, to accept &#8220;deposit  items drawn on US banks, eg cheques and traveller&#8217;s cheques&#8221;, as spotted  by Woods.</p>
<p>&#8220;For the time period of 1 May 2004 through 31 May 2007,  Wachovia processed at least $$373.6bn in CDCs, $4.7bn in bulk cash&#8221; – a  total of more than $378.3bn, a sum that dwarfs the budgets debated by  US state and UK local authorities to provide services to citizens.</p>
<p>The  document gives a fascinating insight into how the laundering of drug  money works. It details how investigators &#8220;found readily identifiable  evidence of red flags of large-scale money laundering&#8221;. There were  &#8220;structured wire transfers&#8221; whereby &#8220;it was commonplace in the CDC  accounts for round-number wire transfers to be made on the same day or  in close succession, by the same wire senders, for the … same account&#8221;.</p>
<p>Over  two days, 10 wire transfers by four individuals &#8220;went though Wachovia  for deposit into an aircraft broker&#8217;s  account. All of the transfers  were in round numbers. None of the individuals of business that wired  money had any connection to the aircraft or the entity that allegedly  owned the aircraft. The investigation has further revealed that the  identities of the individuals who sent the money were false and that the  business was a shell entity. That plane was subsequently seized with  approximately 2,000kg of cocaine on board.&#8221;</p>
<p>Many of the  sequentially numbered traveller&#8217;s cheques, of the kind dealt with by  Woods, contained &#8220;unusual markings&#8221; or &#8220;lacked any legible signature&#8221;.  Also, &#8220;many of the CDCs that used Wachovia&#8217;s bulk cash service sent  significantly more cash to Wachovia than what Wachovia had expected.  More specifically, many of the CDCs exceeded their monthly activity by  at least 50%.&#8221;</p>
<p>Recognising these &#8220;red flags&#8221;, the US attorney&#8217;s  office in Miami, the IRS and the DEA began investigating Wachovia, later  joined by FinCEN, one of the US Treasury&#8217;s agencies to fight money  laundering, while the office of the comptroller of the currency carried  out a parallel investigation. The violations they found were, says the  document, &#8220;serious and systemic and allowed certain Wachovia customers  to launder millions of dollars of proceeds from the sale of illegal  narcotics through Wachovia accounts over an extended time period. The  investigation has identified that at least $110m in drug proceeds were  funnelled through the CDC accounts held at Wachovia.&#8221;</p>
<p>The  settlement concludes by discussing Wachovia&#8217;s &#8220;considerable co-operation  and remedial actions&#8221; since the prosecution was initiated, after the  bank was bought by Wells Fargo. &#8220;In consideration of Wachovia&#8217;s remedial  actions,&#8221; concludes the prosecutor, &#8220;the United States shall recommend  to the court … that prosecution of Wachovia on the information filed …  be deferred for a period of 12 months.&#8221;</p>
<p>But while the federal  prosecution proceeded, Woods had remained out in the cold. On Christmas  Eve 2008, his lawyers filed tribunal proceedings against Wachovia for  bullying and detrimental treatment of a whistleblower. The case was  settled in May 2009, by which time Woods felt as though he was &#8220;the most  toxic person in the bank&#8221;. Wachovia agreed to pay an undisclosed  amount, in return for which Woods left the bank and said he would not  make public the terms of the settlement.</p>
<p>After years of  tribulation, Woods was finally formally vindicated, though not by  Wachovia: a letter arrived from John Dugan, the comptroller of the  currency in Washington DC, dated 19 March 2010 – three days after the  settlement in Miami. Dugan said he was &#8220;writing to personally recognise  and express my appreciation for the role you played in the actions  brought against Wachovia Bank for violations of the bank secrecy act …  Not only did the information that you provided facilitate our  investigation, but you demonstrated great personal courage and integrity  by speaking up. Without the efforts of individuals like you, actions  such as the one taken against Wachovia would not be possible.&#8221;</p>
<p>The  so-called &#8220;deferred prosecution&#8221; detailed in the Miami document is a  form of probation whereby if the bank abides by the law for a year,  charges are dropped. So this March the bank was in the clear. The week  that the deferred prosecution expired, a spokeswoman for Wells Fargo  said the parent bank had no comment to make on the documentation  pertaining to Woods&#8217;s case, or his allegations. She added that there was  no comment on Sloman&#8217;s remarks to the court; a provision in the  settlement stipulated Wachovia was not allowed to issue public  statements that contradicted it.</p>
<p>But the settlement leaves a sour  taste in many mouths – and certainly in Woods&#8217;s. The deferred  prosecution is part of this &#8220;cop-out all round&#8221;, he says. &#8220;The  regulatory authorities do not have to spend any more time on it, and  they don&#8217;t have to push it as far as a criminal trial. They just issue  criminal proceedings, and settle. The law enforcement people do what  they are supposed to do, but what&#8217;s the point? All those people dealing  with all that money from drug-trafficking and murder, and no one goes to  jail?&#8221;</p>
<p>One of the foremost figures in the training of  anti-money laundering officers is Robert Mazur, lead infiltrator for US  law enforcement of the Colombian Medellín cartel during the epic  prosecution and collapse of the BCCI banking business in 1991 (his story  was made famous by his memoir, <em>The Infiltrator</em>, which became a movie).</p>
<p>Mazur,  whose firm Chase and Associates works closely with law enforcement  agencies and trains officers for bank anti-money laundering, cast a keen  eye over the case against Wachovia, and he says now that &#8220;the only  thing that will make the banks properly vigilant to what is happening is  when they hear the rattle of handcuffs in the boardroom&#8221;.</p>
<p>Mazur  said that &#8220;a lot of the law enforcement people were disappointed to see a  settlement&#8221; between the administration and Wachovia. &#8220;But I know there  were external circumstances that worked to Wachovia&#8217;s benefit, not least  that the US banking system was on the edge of collapse.&#8221;</p>
<p>What  concerns Mazur is that what law enforcement agencies and politicians  hope to achieve against the cartels is limited, and falls short of the  obvious attack the US could make in its war on drugs: go after the  money. &#8220;We&#8217;re thinking way too small,&#8221; Mazur says. &#8220;I train law  enforcement officers, thousands of them every year, and they say to me  that if they tried to do half of what I did, they&#8217;d be arrested. But I  tell them: &#8216;You got to think big. The headlines you will be reading in  seven years&#8217; time will be the result of the work you begin now.&#8217; With  BCCI, we had to spend two years setting it up, two years doing  undercover work, and another two years getting it to trial. If they want  to do something big, like go after the money, that&#8217;s how long it  takes.&#8221;</p>
<p>But Mazur warns: &#8220;If you look at the career ladders of law  enforcement, there&#8217;s no incentive to go after the big money. People  move every two to three years. The DEA is focused on drug trafficking  rather than money laundering. You get a quicker result that way – they  want to get the traffickers and seize their assets. But this is like  treating a sick plant by cutting off a few branches – it just grows new  ones. Going after the big money is cutting down the plant – it&#8217;s a  harder door to knock on, it&#8217;s a longer haul, and it won&#8217;t get you the  short-term riches.&#8221;</p>
<p>The office of the comptroller of the  currency is still examining whether individuals in Wachovia are  criminally liable. Sources at FinCEN say that a so-called &#8220;look-back&#8221; is  in process, as directed by the settlement and agreed to by Wachovia,  into the $378.4bn that was not directly associated with the aircraft  purchases and cocaine hauls, but neither was it subject to the proper  anti-laundering checks. A FinCEN source says that $20bn already examined  appears to have &#8220;suspicious origins&#8221;. But this is just the beginning.</p>
<p>Antonio  Maria Costa, who was executive director of the UN&#8217;s office on drugs and  crime from May 2002 to August 2010, charts the history of the  contamination of the global banking industry by drug and criminal money  since his first initiatives to try to curb it from the European  commission during the 1990s. &#8220;The connection between organised crime and  financial institutions started in the late 1970s, early 1980s,&#8221; he  says, &#8220;when the mafia became globalised.&#8221;</p>
<p>Until then, criminal  money had circulated largely in cash, with the authorities making the  occasional, spectacular &#8220;sting&#8221; or haul. During Costa&#8217;s time as director  for economics and finance at the EC in Brussels, from 1987, inroads  were made against penetration of banks by criminal laundering, and  &#8220;criminal money started moving back to cash, out of the financial  institutions and banks. Then two things happened: the financial crisis  in Russia, after the emergence of the Russian mafia, and the crises of  2003 and 2007-08.</p>
<p>&#8220;With these crises,&#8221; says Costa, &#8220;the banking  sector was short of liquidity, the banks exposed themselves to the  criminal syndicates, who had cash in hand.&#8221;</p>
<p>Costa questions the  readiness of governments and their regulatory structures to challenge  this large-scale corruption of the global economy: &#8220;Government  regulators showed what they were capable of when the issue suddenly  changed to laundering money for terrorism – on that, they suddenly  became serious and changed their attitude.&#8221;</p>
<p>Hardly surprising,  then, that Wachovia does not appear to be the end of the line. In August  2010, it emerged in quarterly disclosures by HSBC that the US justice  department was seeking to fine it for anti-money laundering compliance  problems reported to include dealings with Mexico.</p>
<p>&#8220;Wachovia  had my résumé, they knew who I was,&#8221; says Woods. &#8220;But they did not want  to know – their attitude was, &#8216;Why are you doing this?&#8217; They should  have been on my side, because they were compliance people, not  commercial people. But really they were commercial people all along.  We&#8217;re talking about hundreds of millions of dollars. This is the biggest  money-laundering scandal of our time.</p>
<p>&#8220;These are the proceeds of  murder and misery in Mexico, and of drugs sold around the world,&#8221; he  says. &#8220;All the law enforcement people wanted to see this come to trial.  But no one goes to jail. &#8220;What does the settlement do to fight the  cartels? Nothing – it doesn&#8217;t make the job of law enforcement easier and  it encourages the cartels and anyone who wants to make money by  laundering their blood dollars. Where&#8217;s the risk? There is none.</p>
<p>&#8220;Is  it in the interest of the American people to encourage both the drug  cartels and the banks in this way? Is it in the interest of the Mexican  people? It&#8217;s simple: if you don&#8217;t see the correlation between the money  laundering by banks and the 30,000 people killed in Mexico, you&#8217;re  missing the point.&#8221;</p>
<p>Woods feels unable to rest on his laurels. He  tours the world for a consultancy he now runs, Hermes Forensic  Solutions, counselling and speaking to banks on the dangers of  laundering criminal money, and how to spot and stop it. &#8220;New York and  London,&#8221; says Woods, &#8220;have become the world&#8217;s two biggest laundries of  criminal and drug money, and offshore tax havens. Not the Cayman  Islands, not the Isle of Man or Jersey. The big laundering is right  through the City of London and Wall Street.</p>
<p>&#8220;After the Wachovia  case, no one in the regulatory community has sat down with me and asked,  &#8216;What happened?&#8217; or &#8216;What can we do to avoid this happening to other  banks?&#8217; They are not interested. They are the same people who attack the  whistleblowers and this is a position the [British] Financial Services  Authority at least has adopted on legal advice: it has been advised that  the confidentiality of banking and bankers takes primacy over the  public information disclosure act. That is how the priorities work:  secrecy first, public interest second.</p>
<p>&#8220;Meanwhile, the drug  industry has two products: money and suffering. On one hand, you have  massive profits and enrichment. On the other, you have massive  suffering, misery and death. You cannot separate one from the other.</p>
<p>&#8220;What  happened at Wachovia was symptomatic of the failure of the entire  regulatory system to apply the kind of proper governance and adequate  risk management which  would have prevented not just the laundering of  blood money, but the global crisis.&#8221;</p>
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		<title>Gold Farming: Virtual Slavery?</title>
		<link>http://www.brainwaving.com/2011/03/28/gold-farming-virtual-slavery/</link>
		<comments>http://www.brainwaving.com/2011/03/28/gold-farming-virtual-slavery/#comments</comments>
		<pubDate>Mon, 28 Mar 2011 11:54:47 +0000</pubDate>
		<dc:creator>Brainwaving Admin</dc:creator>
				<category><![CDATA[Social Insight]]></category>
		<category><![CDATA[Computers]]></category>
		<category><![CDATA[Evolution]]></category>
		<category><![CDATA[future]]></category>
		<category><![CDATA[social commentary]]></category>
		<category><![CDATA[technology]]></category>

		<guid isPermaLink="false">http://www.brainwaving.com/?p=1524</guid>
		<description><![CDATA[It was an hour before midnight, three hours into the night shift with nine more to go. At his workstation in a small, fluorescent-lighted office space in Nanjing, China, Li Qiwen sat shirtless and chain-smoking, gazing purposefully at the online computer game in front of him. The screen showed a lightly wooded mountain terrain, studded [...]]]></description>
			<content:encoded><![CDATA[<p>It was an hour before midnight, three hours into the night shift with nine more to go. At his workstation in a small, fluorescent-lighted office space in Nanjing, China, Li Qiwen sat shirtless and chain-smoking, gazing purposefully at the online computer game in front of him. The screen showed a lightly wooded mountain terrain, studded with castle ruins and grazing deer, in which warrior monks milled about. Li, or rather his staff-wielding wizard character, had been slaying the enemy monks since 8 p.m., mouse-clicking on one corpse after another, each time gathering a few dozen virtual coins — and maybe a magic weapon or two — into an increasingly laden backpack.</p>
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<div><img class="alignleft" style="border: 0pt none;" src="http://graphics8.nytimes.com/images/2007/06/17/magazine/17avatar190.1.jpg" border="0" alt="" width="190" height="253" /></p>
<div>Robbie Cooper for the <a href="http://www.nytimes.com/2007/06/17/magazine/17lootfarmers-t.html?pagewanted=7&amp;_r=1" target="_blank">New York Times</a></div>
<p>The end of a 12-hour shift at Donghua Networks in Jinhua, China.</p>
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<p>Twelve hours a night, seven nights a week, with only two or three nights off per month, this is what Li does — for a living. On this summer night in 2006, the game on his screen was, as always, World of Warcraft, an online fantasy title in which players, in the guise of self-created avatars — night-elf wizards, warrior orcs and other Tolkienesque characters — battle their way through the mythical realm of Azeroth, earning points for every monster slain and rising, over many months, from the game’s lowest level of death-dealing power (1) to the highest (70). More than eight million people around the world play World of Warcraft — approximately one in every thousand on the planet — and whenever Li is logged on, thousands of other players are, too. They share the game’s vast, virtual world with him, converging in its towns to trade their loot or turning up from time to time in Li’s own wooded corner of it, looking for enemies to kill and coins to gather. Every World of Warcraft player needs those coins, and mostly for one reason: to pay for the virtual gear to fight the monsters to earn the points to reach the next level. And there are only two ways players can get as much of this virtual money as the game requires: they can spend hours collecting it or they can pay someone real money to do it for them.</p>
<p>At the end of each shift, Li reports the night’s haul to his supervisor, and at the end of the week, he, like his nine co-workers, will be paid in full. For every 100 gold coins he gathers, Li makes 10 yuan, or about $1.25, earning an effective wage of 30 cents an hour, more or less. The boss, in turn, receives $3 or more when he sells those same coins to an online retailer, who will sell them to the final customer (an American or European player) for as much as $20. The small commercial space Li and his colleagues work in — two rooms, one for the workers and another for the supervisor — along with a rudimentary workers’ dorm, a half-hour’s bus ride away, are the entire physical plant of this modest $80,000-a-year business. It is estimated that there are thousands of businesses like it all over China, neither owned nor operated by the game companies from which they make their money. Collectively they employ an estimated 100,000 workers, who produce the bulk of all the goods in what has become a $1.8 billion worldwide trade in virtual items. The polite name for these operations is youxi gongzuoshi, or gaming workshops, but to gamers throughout the world, they are better known as gold farms. While the Internet has produced some strange new job descriptions over the years, it is hard to think of any more surreal than that of the Chinese gold farmer.</p>
<p>The market for massively multiplayer online role-playing games, known as M.M.O.’s, is a fast-growing one, with no fewer than 80 current titles and many more under development, all targeted at a player population that totals around 30 million worldwide. World of Warcraft, produced in Irvine, Calif., by Blizzard Entertainment, is one of the most profitable computer games in history, earning close to $1 billion a year in monthly subscriptions and other revenue. In a typical M.M.O., as in a classic predigital role-playing game like Dungeons &amp; Dragons, each player leads his fantasy character on a life of combat and adventure that may last for months or even years of play. As has also been true since D. &amp; D., however, the romance of this imaginary life stands in sharp contrast to the plodding, mathematical precision with which it proceeds.</p>
<p>Players of M.M.O.’s are notoriously obsessive gamers, not infrequently dedicating more time to the make-believe careers of their characters than to their own real jobs. Indeed, it is no mere conceit to say that M.M.O.’s are just as much economies as games. In every one of them, there is some form of money, the getting and spending of which invariably demands a lot of attention: in World of Warcraft, it is the generic gold coin; in Korea’s popular Lineage II, it is the “adena”; in the Japanese hit Final Fantasy XI, it is called “gil.” And in all of these games, it takes a lot of this virtual local currency to buy the gear and other battle aids a player needs to even contemplate a run at the monsters worth fighting. To get it, players have a range of virtual income-generating activities to choose from: they can collect loot from dead monsters, of course, but they can also make weapons, potions and similarly useful items to sell to other players or even gather the herbs and hides and other resources that are the crafters’ raw materials. Repetitive and time-intensive by design, these pursuits and others like them are known collectively as “the grind.”</p>
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<p>For players lacking time or patience for the grind, there has always been another means of acquiring virtual loot: real money. From the earliest days of M.M.O.’s, players have been willing to trade their hard-earned legal tender — dollars, euros, yen, pounds sterling — for the fruits of other players’ grinding. And despite strict rules against the practice in the most popular online games, there have always been players willing to sell. The phenomenon of selling virtual goods for real money is called real-money trading, or R.M.T., and it first flourished in the late 1990s on <a title="More information about eBay Inc." href="http://topics.nytimes.com/top/news/business/companies/ebay_inc/index.html?inline=nyt-org">eBay</a>. M.M.O. players looking to sell their virtual armor, weapons, gold and other items would post them for auction and then, when all the bids were in and payment was made, arrange with the highest bidder to meet inside the game world and transfer the goods from the seller’s account to the buyer’s.</p>
<p>Until very recently, in fact, eBay was a major clearinghouse for commodities from every virtual economy known to gaming — from venerable sword-and-sorcery stalwarts EverQuest and Ultima Online to up-and-comers like the Machiavellian space adventure Eve Online and the free-form social sandbox Second Life. That all came to an official end this January, when eBay announced a ban on R.M.T. sales, citing, among other concerns, the customer-service issues involved in facilitating transactions that are prohibited by the gaming companies. But by then the market had long since outgrown the tag-sale economics of online auctions. For years now, the vast majority of virtual goods has been brought to retail not by players selling the product of their own gaming but by high-volume online specialty sites like the virtual-money superstores IGE, BroGame and Massive Online Gaming Sales — multimillion-dollar businesses offering one-stop, one-click shopping and instant delivery of in-game cash. These are the Wal-Marts and Targets of this decidedly gray market, and the same economic logic that leads conventional megaretailers to China in search of cheap toys and textiles takes their virtual counterparts to China’s gold farms.</p>
<p>Indeed, on the surface, there is little to distinguish gold farming from toy production or textile manufacture or any of the other industries that have mushroomed across China to feed the desires of the Western consumer. The wages, the margins, the worker housing, the long shifts and endless workweeks — all of these are standard practice. Like many workers in China today, most gold farmers are migrants. Li, for example, came to Nanjing, in the country’s industry-heavy coastal region, from less prosperous parts. At 30, he is old for the job and feels it. He says he hopes to marry and start a family, he told me, but doesn’t see it happening on his current wages, which are not much better than what he made at his last job, fixing cars. The free company housing means his expenses aren’t high — food, cigarettes, bus fare, connection fees at the local wang ba (or Internet cafe) where he goes to relax — but even so, Li said, it is difficult to set aside savings. “You can do it,” he said, “but you have to economize a lot.”</p>
<p>This is the quick-sketch picture of the job, however, and it misses much. To sit at Li’s side for an hour or two, amid the dreary, functional surroundings of his workplace, as he navigates the Technicolor fantasy world he earns his living in, is to understand that gold farming isn’t just another outsourced job.</p>
<p>When the night shift ends and the sun comes up, Li and his co-workers know it only by the slivers of daylight that slip in at the edges of the plastic sheeting taped to the windows against the glare. As Li clocks out, another worker takes his seat, takes control of his avatar and carries on with the same grim routines amid the warrior monks of Azeroth. On most days Li’s replacement is 22-year-old Wang Huachen, who has been at this gold farm for a year, ever since he completed his university course in law. Soon, Wang told me, he will take the test for his certificate to practice, but he seems in no particular hurry to.</p>
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<p>“I will miss this job,” he said. “It can be boring, but I still have sometimes a playful attitude. So I think I will miss this feeling.”</p>
<p>Two workstations away, Wang’s co-worker Zhou Xiaoguang, who is 24, also spends the day shift massacring monks. To watch his face as he plays, you wouldn’t guess there was anything like fun involved in this job, and perhaps “fun” isn’t exactly the word. As anyone who has spent much time among video-gamers knows, the look on a person’s face as he or she plays can be a curiously serious one, reflective of the absorbing rigors of many contemporary games. It is hard, in any case, for Zhou to say where the line between work and play falls in a gold farmer’s daily routines. “I am here the full 12 hours every day,” he told me, offhandedly killing a passing deer with a single crushing blow. “It’s not all work. But there’s not a big difference between play and work.”</p>
<p>I turned to Wang Huachen, who remained intent on manipulating an arsenal of combat spells, and asked again how it was possible that in these circumstances anybody could, as he put it, “have sometimes a playful attitude”?</p>
<p>He didn’t even look up from his screen. “I cannot explain,” he said. “It just feels that way.”</p>
<p>In 2001, Edward Castronova, an economist at Indiana University and at the time an EverQuest player, published a paper in which he documented the rate at which his fellow players accumulated virtual goods, then used the current R.M.T. prices of those goods to calculate the total annual wealth generated by all that in-game activity. The figure he arrived at, $135 million, was roughly 25 times the size of EverQuest’s R.M.T. market at the time. Updated and more broadly applied, Castronova’s results suggest an aggregate gross domestic product for today’s virtual economies of anywhere from $7 billion to $12 billion, a range that puts the economic output of the online gamer population in the company of Bolivia’s, Albania’s and Nepal’s.</p>
<p>Not quite the big time, no, but the implications are bigger, perhaps, than the numbers themselves. Castronova’s estimate of EverQuest’s G.D.P. showed that online games — even when there is no exchange of actual money — can produce actual wealth. And in doing so Castronova also showed that something curious has happened to the classic economic distinction between play and production: in certain corners of the world, it has melted away. Play has begun to do real work.</p>
<p>This development has not been universally welcomed. In the eyes of many gamers, in fact, real-money trading is essentially a scam — a form of cheating only slightly more refined than, say, offering 20 actual dollars for another player’s Boardwalk and Park Place in Monopoly. Some players, and quite a few game designers, see the problem in more systemic terms. Real-money trading harms the game, they argue, because the overheated productivity of gold farms and other profit-seeking operations makes it harder for beginning players to get ahead. Either way, the sense of a certain economic injustice at work breeds resentment. In theory this resentment would be aimed at every link in the R.M.T. chain, from the buyers to the retailers to the gold-farm bosses. And, indeed, late last month American WoW players filed a class-action suit against the dominant virtual-gold retailer, IGE, the first of its kind.</p>
<p>But as a matter of everyday practice, it is the farmers who catch it in the face. Consider, for example, a typical interlude in the workday of the 21-year-old gold farmer Min Qinghai. Min spends most of his time within the confines of a former manufacturing space 200 miles south of Nanjing in the midsize city of Jinhua. He works two floors below the plywood bunks of the workers’ dorm where he sleeps. In two years of 84-hour farming weeks, he has rarely stepped outside for longer than it takes to eat a meal. But he has died more times than he can count. And last September on a warm afternoon, halfway between his lunch and dinner breaks, it was happening again.</p>
<p>The World of Warcraft monsters he faces down — ferocious, gray-furred warriors of the Timbermaw clan of bearmen — are no match for his high-level characters, but they do fight back and sometimes they get the better of him. And so it appeared they had just done. Distracted from his post for a moment, Min returned to find his hunter-class character at the brink of death, the scene before him a flurry of computer-animated weapon blows. It wasn’t until the fight had run its course and the hunter lay dead that Min could make out exactly what had happened. The game’s chat window displayed a textual record of the blows landed and the cost to Min in damage points. The record was clear: the monsters hadn’t acted alone. In the middle of the fight another player happened by, sneaked up on Min and brought him down.</p>
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<p>Min leaned back and stretched, then set about the tedious business of resurrecting his character, a drawn-out sequence of operations that can put a player out of action for as long as 10 minutes. In farms with daily production quotas, too much time spent dead instead of farming gold can put the worker’s job at risk. And in shops where daily wages are tied to daily harvests, every minute lost to death is money taken from the farmer’s pocket. But there are times when death is more than just an economic setback for a gold farmer, and this was one of them. As Min returned to his corpse — checking to make sure his attacker wasn’t waiting around to fall on him again the moment he resurrected — what hurt more than the death itself was how it happened, or more precisely, what made it happen: another player.</p>
<p>It isn’t that WoW players don’t frequently kill other players for fun and kill points. They do. But there is usually more to it when the kill in question is a gold farmer. In part because gold farmers’ hunting patterns are so repetitive, they are easy to spot, making them ready targets for pent-up anti-R.M.T. hostility, expressed in everything from private sarcastic messages to gratuitous ambushes that can stop a farmer’s harvesting in its tracks. In homemade World of Warcraft video clips that circulate on YouTube or GameTrailers, with titles like “Chinese Gold Farmers Must Die” and “Chinese Farmer Extermination,” players document their farmer-killing expeditions through that same Timbermaw-ridden patch of WoW in which Min does his farming — a place so popular with farmers that Western players sometimes call it China Town. Nick Yee, an M.M.O. scholar based at Stanford, has noted the unsettling parallels (the recurrence of words like “vermin,” “rats” and “extermination”) between contemporary anti-gold-farmer rhetoric and 19th-century U.S. literature on immigrant Chinese laundry workers.</p>
<p>Min’s English is not good enough to grasp in all its richness the hatred aimed his way. But he gets the idea. He feels a little embarrassed around regular players and sometimes says he thinks about how he might explain himself to those who believe he has no place among them, if only he could speak their language. “I have this idea in mind that regular players should understand that people do different things in the game,” he said. “They are playing. And we are making a living.”</p>
<p>It is a distinction that game companies understand all too well. Like the majority of M.M.O. companies, Blizzard has chosen to align itself with the customers who abhor R.M.T. rather than the ones who use it. A year ago, Blizzard announced it had identified and banned more than 50,000 World of Warcraft accounts belonging to farmers. It was the opening salvo in a continuing eradication campaign that has effectively swept millions in farmed gold from the market, sending the exchange rate rocketing from a low of 6 cents per gold coin last spring to a high of 35 cents in January.</p>
<p>Of course, nobody expected the farmers’ equally rule-breaking customers to be punished too. Among players, the R.M.T. debate may revolve around questions of fairness, but among game companies, the only question seems to be what is good for business. Cracking down on R.M.T. buyers makes poorer marketing sense than cracking down on sellers, in much the same way that cracking down on illegal drug suppliers is a better political move than cracking down on users. (Only a few companies have found a way to make R.M.T. part of their business model. <a title="More information about Sony Corporation" href="http://topics.nytimes.com/top/news/business/companies/sony_corporation/index.html?inline=nyt-org">Sony</a> Online Entertainment, which publishes EverQuest, has started earning respectable revenues from an experimental in-game auction system that charges players a small transaction fee for real-money trades.) As Mark Jacobs, vice president at Electronic Arts and creator of the classic M.M.O. Dark Age of Camelot, put it: “Are you going to get more sympathy from busting 50,000 Chinese farmers or from busting 10,000 Americans that are buying? It’s not a racial thing at all. If you bust the buyers, you’re busting the guys who are paying to play your game, who you want to keep as customers and who will then go on the forums and say really nasty things about your company and your game.”</p>
<p>The cost to farmers of being expelled from WoW can be steep. At the very least, it means a temporary drop in productivity, because the character has to be to built up all over again, as well as the loss of all the loot accumulated in that character’s account. Given the stakes, some Chinese gold farms have found that the best way to get around their farmers’ pursuers is to make it hard to distinguish professionals from players in the first place. One business that specializes in doing just that is located a few blocks from the gold farm where Min Qinghai works. The shop floor is about the same size, with about the same number of computers in the same neat rows, but you can tell just walking through the place that it is a more serious operation. For one thing, there are a lot more workers: typically 25 on the day shift, 25 on the night shift, each crew punching in and out at a time clock just inside the entrance. Nobody works without a shirt here; quite a few, in fact, wear a standard-issue white polo shirt with the company initials on it. There is also a crimson version of the shirt, reserved for management and worn at all times by the shift supervisor, who, when he isn’t prowling the floor, sits at his desk before a broad white wall emblazoned with foot-high Chinese characters in red that spell: unity, collaboration, integrity, efficiency.</p>
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<p>The name of the business is Donghua Networks, and its specialty is what gamers call “power leveling.” Like regular gold farming, power leveling offers customers an end run around the World of Warcraft grind — except that instead of providing money and other items, the power leveler simply does the work for you. Hand over your account name, password and about $300, and get on with your real life for a while: in a marathon of round-the-clock monster-bashing, a team of power levelers will raise your character from the lowest level to the highest, accomplishing in four weeks or less what at a normal rate of play would take at least four months.</p>
<p>For Donghua’s owners — 26-year-old Fei Jianfeng and 36-year-old Bao Donghua, both former gold-farm wage workers themselves — moving the business out of farming and into leveling was an easy call. Among other advantages, they say, power leveling means fewer banned accounts. Because the only game accounts used are the customers’ own, there is much less risk of losing access to the virtual work site. For their workers, however, the advantages are mixed. Though there is a greater variety of quests and quarries to pursue, the pay isn’t any better, and some workers chafe at the constraints of playing a stranger’s character, preferring the relative autonomy of farming gold.</p>
<p>As one Donghua power leveler said of his old gold-farming job, “I had more room to play for myself.”</p>
<p>It may seem strange that a wage-working loot farmer would still care about the freedom to play. But it is not half as strange as the scene that unfolded one evening at 9 o’clock in the Internet cafe on the ground floor of the building where Donghua has its offices. Scattered around the stifling, dim wang ba, 10 power levelers just off the day shift were merrily gaming away. Not all of them were playing World of Warcraft. A big, silent lug named Mao sat mesmerized by a very pink-and-purple Japanese schoolgirls’ game, in which doe-eyed characters square off in dancing contests with other online players. But the rest had chosen, to a man, to log into their personal World of Warcraft accounts and spend these precious free hours right back where they had spent every other hour of the day: in Azeroth.</p>
<p>Such scenes are not at all unusual. At the end of almost any working day or night in a Chinese gaming workshop, workers can be found playing the same game they have been playing for the last 12 hours, and to some extent gold-farm operators depend on it. The game is too complex for the bosses to learn it all themselves; they need their workers to be players — to find out all the tricks and shortcuts, to train themselves and to train one another. “When I was a worker,” Fan Yangwen, who is now 21 and in Donghua’s main office providing technical support, told me, “I loved to play because when I was playing, I was learning.” But learning to play or learning to work? I asked. Fan shrugged. “Both.”</p>
<p>Fan himself is a striking case of how off-hours play can serve as a kind of unpaid R. and D. lab for the farming industry. He is that rarest of World of Warcraft obsessives, a Chinese gold farmer who has actually bought farmed gold. (“Sure, I bought 10,000 once,” he said, “I don’t have time to farm all that!”) When Fan shows up at the wang ba after work, it is a minor event; the other Donghua workers pull their chairs over to watch him play — his top-level warlock character is an unbelievable powerhouse that no amount of money, real or virtual, can buy.</p>
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<p>What makes Fan’s dominance so impressive to his peers is that he achieved it in regions of the game that are all but inaccessible to the working gold farmer or power leveler. Therein lies what is known as the end game, the phase of epic challenges that begins only when the player has accumulated the maximum experience points and can level up no more. The rewards for meeting these challenges are phenomenal: rare weapons and armor pieces loaded with massive power boosts and showy graphics. And the greatest cannot be traded or given away; they can only be acquired by venturing into the game’s most difficult dungeons. That requires becoming part of a tightly coordinated “raid” group of as many as 40 other players (any fewer than that, and the entire group will almost certainly “wipe” — or die en masse without killing any monsters of note). Each player has a shot at the best items when they drop, and players must negotiate among themselves for the top prizes. These end-game hurdles have some subtle but significant effects. For one thing, they force the growth of “guilds” — teams of dozens, sometimes hundreds, of players who join together to hit high-end dungeons on a regular basis. For another, they shut farmers out from an entire class of virtual goods — the most marketable in the game if only they could be traded.</p>
<p>For a long time the Donghua bosses, Fei and Bao (known even to employees as Little Bai and Brother Bao), could do no more than nurse their envy of the raiding guilds’ access to the end game. But Fan’s prowess pointed to another way of looking at it: raiding guilds weren’t the competition, they realized; they were the solution. Donghua would put together a team of 40 employees. They would train the team in all the hardest dungeons. And then, for a few hundred dollars, the team would escort any customer into the dungeon of his or her choice. And when the customer’s longed-for item dropped, the team would stand aside and let the customer take it, no questions asked. Thus would the supposedly unmarketable end-game treasures find their way into the R.M.T. market. And thus would gold farming, of a sort, find its way at last into the end game.</p>
<p>When Brother Bao and Little Bai put their team together in April of last year, Min Qinghai, a veteran Donghua employee at the time, was among the first to make the roster.</p>
<p>“Before I joined the raiding team, I’d never worked together with so many people,” Min told me. They were 40 young men in three adjoining office spaces, and it was chaotic at first. Two or three supervisors moved among them, calling out orders like generals. A dungeon raid is always a puzzle: figuring out which tactics to use to kill each boss is the main challenge; doing so while coordinating 40 players can be dizzying. But members of the team raided just as diligently as they had power-leveled: 12 hours a day, 7 days a week, making their way through the complexities of a different dungeon every day.</p>
<p>There was a lot of shouting involved, at least in the beginning. Besides the orders called out by the supervisors, there were loud attempts at coordination among the team members themselves. “But then we developed a sense of cooperation, and the shouting grew rarer,” Min said. “By the end, nothing needed to be said.” They moved through the dungeons in silent harmony, 40 intricately interdependent players, each the master of his part. For every fight in every dungeon, the hunters knew without asking exactly when to shoot and at what range; the priests had their healing spells down to a rhythm; wizards knew just how much damage to put in their combat spells.</p>
<p>And Min’s role? The translator struggled for a moment to find the word in English, and when I hazarded a guess, Min turned directly to me and repeated it, the only English I ever heard him speak. “Tank,” he said, breaking into a rare, slow smile, and why wouldn’t he? The tank — the heavily armored warrior character who holds the attention of the most powerful enemy in the fight, taking all its blows — is the linchpin of any raid. If the tank dies, everybody else will soon die too, as a rule.</p>
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<p>“Working together, playing together, it felt nice,” Min said. “Very . . . shuang.” The word means “open, clear, exhilarating.” “You would go in, knowing that you were fighting the bosses that all the guilds in the world dream of fighting; there was a sense of achievement.”</p>
<p>The end arrived without warning. One day word came down from the bosses that the 40-man raids were suspended indefinitely for lack of customers. In the meantime, team members would go back to gold farming, gathering loot in five-man dungeons that once might have thrilled Min but now presented no challenge whatsoever. “We no longer went to fight the big boss monsters,” Min said. “We were ordered to stay in one place doing the same thing again and again. Everyday I was looking at the same thing. I could not stand it.”</p>
<p>Min quit and took the farming job he works at still. The new job, with its rote Timbermaw whacking, could hardly be less exciting. But it is more relaxed than Donghua was, less wearying — “Working 12 hours there was like working 24 here” — and he couldn’t have stayed on in any case, surrounded by reminders of the broken promise of tanking for what might have been the greatest guild on Earth.</p>
<p>In the meantime, Min is doing his best to forget that his work has anything at all to do with play or that he ever let himself believe otherwise. But even with a job as monotonous as this one, it isn’t easy. On his usual hunt one day, he accidentally backed into combat with a higher-level monster. Losing life fast, he grabbed his mouse and started to flee. He hunched over his keyboard, leaning into his flight, flushed now by the chase. His boss, 26-year-old Liu Haibin, an inveterate gamer himself, wandered by and began to cheer him on: “Yeah, yeah, yeah . . . go!”</p>
<p>Finally the monster quit the chase, and Min got away with no consequence more untoward than having to explain himself. “It’s instinctual — you can’t help it,” he said. “You want to play.”</p>
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		<title>Hackerville: How a Remote Town in Romania Has Become Cybercrime Central</title>
		<link>http://www.brainwaving.com/2011/02/14/hackerville-how-a-remote-town-in-romania-has-become-cybercrime-central/</link>
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		<pubDate>Mon, 14 Feb 2011 09:53:06 +0000</pubDate>
		<dc:creator>Brainwaving Admin</dc:creator>
				<category><![CDATA[Social Insight]]></category>
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		<guid isPermaLink="false">http://www.brainwaving.com/?p=1516</guid>
		<description><![CDATA[Three hours outside Bucharest, Romanian National Road 7 begins a gentle ascent into the foothills of the Transylvanian Alps. Meadowlands give way to crumbling houses with chickens in the front yard, laundry flapping on clotheslines. But you know you’ve arrived in the town of Râmnicu Vâlcea when you see the Mercedes-Benz dealership. From Wired Magazine [...]]]></description>
			<content:encoded><![CDATA[<p><strong>Three hours outside Bucharest</strong>, Romanian National  Road 7 begins a gentle ascent into the foothills of the Transylvanian  Alps. Meadowlands give way to crumbling houses with chickens in the  front yard, laundry flapping on clotheslines. But you know you’ve  arrived in the town of <a href="http://maps.google.com/maps?q=R%C3%A2mnicu+V%C3%A2lcea,+V%C3%A2lcea,+Romania&amp;oe=UTF-8&amp;ie=UTF8&amp;hl=en&amp;geocode=FVI-sAIdBPFzAQ&amp;split=0&amp;sll=37.0625,-95.677068&amp;sspn=23.875,57.630033&amp;hq=&amp;hnear=R%C3%A2mnicu+V%C3%A2lcea,+V%C3%A2lcea,+Romania&amp;ll=45.104546,24.367676&amp;spn=10.932144,17.687988&amp;z=6">Râmnicu Vâlcea</a> when you see the Mercedes-Benz dealership.</p>
<p>From <a href="http://www.wired.com/" target="_blank">Wired Magazine</a></p>
<p>It’s in the middle of a grassy field, shiny sedans behind gleaming  glass walls. Right next door is another luxury car dealership selling a  variety of other high-end European rides. It’s as if the sheer magic of  wealth has shimmered the glass-and-steel buildings into being.</p>
<p>In fact, expensive cars choke the streets of Râmnicu Vâlcea’s  bustling city center—top-of-the-line BMWs, Audis, and Mercedes driven by  twenty- and thirtysomething men sporting gold chains and fidgeting at  red lights. I ask my cab driver if these men all have high-paying jobs,  and he laughs. Then he holds up his hands, palms down, and wiggles his  fingers as if typing on a keyboard. “They steal money on the Internet,”  he says.</p>
<p>Among law enforcement officials around the world, the city of 120,000  has a nickname: Hackerville. It’s something of a misnomer; the town is  indeed full of online crooks, but only a small percentage of them are  actual hackers. Most specialize in ecommerce scams and malware attacks  on businesses. According to authorities, these schemes have brought tens  of millions of dollars into the area over the past decade, fueling the  development of new apartment buildings, nightclubs, and shopping  centers. Râmnicu Vâlcea is a town whose business is cybercrime, and  business is booming.</p>
<p><strong>At a restaurant</strong> in a neighborhood of apartment  buildings and gated bungalows, I meet Bogdan Stoica and Alexandru  Frunza, two of just four local cops on the digital beat. Stoica, 32, is  square-shouldered and stocky, with a mustache and prominent stubble. His  expression rarely changes. Frunza, 29, is tall and clean shaven. He’s  the funny one. “My English will improve after I have a few beers,” he  says. We sit at a table on the edge of a big courtyard, piped-in  Romanian pop music blaring.</p>
<p>Stoica and Frunza grew up in Râmnicu Vâlcea. “The only cars on the  streets were those made by Dacia,” Stoica says, referring to the  venerable Romanian carmaker. Access to information was limited, too:  Weekday television consisted of two hours of state-run programming,  mostly devoted to covering the dictator, <a href="http://topics.nytimes.com/topics/reference/timestopics/people/c/nicolae_ceausescu/index.html">Nicolae Ceauşescu</a>. “We had half an hour of cartoons on Sunday,” Stoica says.</p>
<p>In 1989, a revolution that began with anti-government riots ended  with the execution of Ceauşescu and his wife, and the country began the  switch to a market economy. By 1998, when Stoica finished high school  and went off to the police academy in Bucharest, another revolution was  beginning: the Internet. Râmnicu Vâlcea was better off than many towns  in this relatively poor country—it had a decades-old chemical plant and a  modest tourism industry. But many young men and women struggled to find  work.</p>
<p>No one really knows how or why those kids started scamming people on  the Internet. “If you find out, you let us know,” says Codruţ Olaru,  head of Romania’s Directorate for Investigation on Organized Crime and  Terrorism. Whatever the reason, online crime was widespread by 2002.  Cybercafés offered cheap Internet access, and crooks in Râmnicu Vâlcea  got busy posting fake ads on eBay and other auction sites to lure  victims into remitting payments by wire transfer. Eventually, FBI agents  in the US and Bucharest started to get interested.</p>
<p>In the early days, the perpetrators weren’t exactly geniuses. One of  the first cases out of the region involved a team based in the  neighboring town of Piteşti. One crook would post ads for cell phones;  the other picked up the wired money for orders that would never ship.  The two men had made a few hundred dollars from victims in the US, and  the guy receiving the cash hadn’t even bothered to use a fake ID. “I  found him sitting in an Internet café, chatting online,” says Costel  Ion, a Piteşti cop who had been working the cybercrime beat. “He just  confessed.”</p>
<p>But as in any business, the scammers innovated and adapted. One early  advance was establishing fake escrow services: Victims would be asked  to send payments to these supposedly trustworthy third parties, which  had websites that made them look like legitimate companies. The scams  got better over the years, too. To explain unbelievably low prices for  used cars, for example, a crook would pose as a US soldier stationed  abroad, with a vehicle in storage back home that he had to sell. (That  tale also established a plausible US contact to receive the money,  instead of someone in Romania.) In the early years, the thieves would  simply ask for advance payment for the nonexistent vehicle. As word of  the scam spread, the sellers began offering to send the cars for  inspection—asking for no payment except “shipping.”</p>
<p>The con artists got even sneakier. “They learned to create scenarios,” says Michael Eubanks, an <a href="http://romania.usembassy.gov/embassy/law_enforcement.html">FBI agent in Bucharest</a>.  “We’ve seen email between criminals with instructions on how to respond  to different questions.” The scammers started hiring English speakers  to craft emails to US targets. Specialists emerged to occupy niches in  the industry, designing fake websites or coordinating low-level  confederates.</p>
<div><img class="alignleft" src="http://www.wired.com/magazine/wp-content/images/19-02/ff_hackerville_romania2b_f.jpg" alt="Photo: Nick Waplington" width="315" height="472" />Internet scammers and their underlings have turned Râmnicu Vâlcea into a hub of international organized crime.<br />
Photo: Nick Waplington</p>
</div>
<p>By 2005, Romania had become widely known as a  haven for online fraud, and buyers became wary of sending money there.  The swindlers adapted again, arranging for payments to be wired to other  European countries, where accomplices picked up the cash. A new entry  level evolved, people who’d act as couriers and money launderers for a  cut of the take. These money mules were called arrows, and their  existence elevated Râmnicu Vâlcea to a hub of international organized  crime.</p>
<p>Many arrows were Romanians living in Western Europe and the US; some  were youngsters from Râmnicu Vâlcea who had moved overseas expressly for  the job. They’d go to wire transfer offices to collect remittances from  victims, then turn around and wire that money—minus a commission—to  Râmnicu Vâlcea or to other arrows in the network. The system served as a  kind of firewall, making it much more difficult for law enforcement to  track the masterminds.</p>
<p>Back home, the local police were starting to realize they needed  people on the cybercrime beat full-time. Frunza, who’d studied  informatics in high school before attending the police academy, was  working drug cases in Bucharest when he decided to come home. He ended  up joining Stoica on the hunt for online con artists. The two learned  that suspects expect leniency from the police because their crimes  target only foreigners. “The guys will often say, ‘I am not stealing  from our countrymen,’” Frunza says. “But a crime is a crime. You have to  pay for it.”</p>
<p>Nowadays, Stoica and Frunza occasionally find themselves  investigating a childhood acquaintance or, conversely, running into  known criminals in social situations. Frunza used to play on the same  soccer team as a suspect who was under surveillance. Those connections  have helped the two cops pose a formidable challenge to the industry.</p>
<p>A little after 11 pm, Stoica hushes our conversation and tells me to  turn around and check out a table across the courtyard, where a small  group of flashily dressed young men has just arrived with two blond  women who seem barely out of their teens. The men are all under  investigation. “It’s a small city,” Stoica says.</p>
<div><img class="alignleft" src="http://www.wired.com/magazine/wp-content/images/19-02/ff_hackerville_romania3_f.jpg" alt="Photo: Nick Waplington" width="315" height="447" />The sudden appearance of luxury car dealerships among the grass fields marks the entrance into Râmnicu Vâlcea.<br />
Photo: Nick Waplington</p>
</div>
<p><strong>Defining the town</strong> center of  Râmnicu Vâlcea is a towering shopping mall that looks like a giant  glass igloo. The streets are lined with gleaming storefronts—leather  accessories, Italian fashions—serving a demand fueled by illegal income.  Near the mall is a nightclub, now closed by police because its backers  were shady. New construction grinds ahead on nearly every block. But  what really stands out in Râmnicu Vâlcea are the money transfer offices.  At least two dozen Western Union locations lie within a four-block area  downtown, the company’s black-and-yellow signs proliferating like the  Starbucks mermaid circa 2003.</p>
<p>Driving past a block of low-rise buildings with neatly trimmed  hedges, Stoica notes a couple of apartments owned by people currently  under investigation. “I don’t know if the people of Râmnicu Vâlcea are  too smart or too stupid,” Stoica says grimly. “They talk a lot to each  other. One guy learns the job from another. They ask their high school  friends: ‘Hey, do you want to make some money? I want to use you as an  arrow.’ Then the arrow learns to do the scams himself.”</p>
<p>It’s not so different from the forces that turn a neighborhood into,  say, New York’s fashion district or the aerospace hub in southern  California. “To the extent that some expertise is required, friends and  family members of the original entrepreneurs are more likely to have  access to those resources than would-be criminals in an isolated  location,” says Michael Macy, a <a href="http://sdl.soc.cornell.edu/index.html">Cornell University sociologist</a> who studies social networks. “There may also be local political resources that provide a degree of protection.”</p>
<p>Online thievery as a ticket to the good life spread from the early  pioneers to scores of young men, infecting Râmnicu Vâlcea’s social  fabric. The con artists were the ones with the nice cars and fancy  clothes—the local kids made good. And just as in Silicon Valley, the  clustering of operations in one place made it that much easier for more  to get started. “There’s a high concentration of people offering the  kinds of services you need to build a criminal scheme,” says Gary  Dickson, an FBI agent who worked in Bucharest from 2005 to 2010. “If  your specialty is auction frauds, you can find a money pick-up guy. If  you’re a money pick-up guy, you can find a buyer for your services.”</p>
<p><strong>Stoica and Frunza</strong> both complain that they’re  fighting an unstoppable tide with limited resources. But they haven’t  been entirely unsuccessful—in fact, the 2008 case that first revealed  the anatomy of Râmnicu Vâlcea’s fraud networks stemmed from Stoica’s  investigation of a young entrepreneur named Romeo Chita.</p>
<p>Stoica says Chita started out as an arrow in the UK, and he was good.  He moved up the ranks and eventually hired a few friends to establish  his own ring. The Romanian authorities began investigating him in 2006,  when he started buying new cars every few months and going to clubs  every night with no apparent source of legitimate income. Chita launched  an Internet service provider called NetOne, which authorities believe  he was using as a shelter for fraudulent activity. When cops wanted to  identify his customers, Stoica says, Chita usually told them that NetOne  didn’t keep records.</p>
<div><img class="alignright" src="http://www.wired.com/magazine/wp-content/images/19-02/ff_hackerville_romania4_f.jpg" alt="Photo: Nick Waplington" width="315" height="472" />Western Union signs have multiplied downtown like the Starbucks mermaid circa 2003.<br />
Photo: Nick Waplington</p>
</div>
<p>In January 2008, an informant gave Stoica  the cell numbers of two men working for Chita. The police tapped the  phones, and the next day one of the men sent Chita a text message with  money transfer control numbers—unique numeric sequences required to pick  up cash. Stoica and his team followed up with surveillance of Chita and  his associates, which established what Stoica calls “the money  circuit,” the route through which the funds flowed from victims in the  US to Chita and others. Prosecutors now allege that the operation turned  into something a little more sophisticated than the usual Râmnicu  Vâlcea scam. For example, the case against them details a con known as  spear phishing—sending email to US companies that appeared to be from  the IRS, the Department of Justice, or some other agency. Through Trojan  horses attached to these emails, Chita’s group could obtain the  companies’ bank account numbers and passwords. Allegedly, they even  hired people in Las Vegas—Stoica says some were homeless—to open fake  corporate bank accounts and receive the money.</p>
<p>The same month that Stoica began pursuing Chita, a police officer  stopped a car for speeding in the Westlake suburb of Cleveland, Ohio.  About to write a ticket, the cop noticed some drug paraphernalia in the  car and arrested the two men inside. A further search turned up eight  cell phones, two computers, fake IDs, two dozen money transfer receipts,  and $63,000 in cash. The pair turned out to be Romanian and eventually  confessed to being arrows for an organization authorities traced back to  Chita. They had spent most of January driving around the Midwest,  picking up money from various Western Union and MoneyGram locations.  Their confessions led to more wiretaps and surveillance in the US and  Romania over the following months, uncovering a network of at least two  dozen accomplices.</p>
<p>That summer, Romanian authorities and FBI agents conducted <a href="http://www.mediafax.ro/english/romanian-authorities-arrest-24-suspects-in-internet-crime-frauds-2782723">a series of raids</a> on both sides of the Atlantic. Chita spent 14 months in custody before  being granted a provisional release pending the completion of his trial,  still pending. On an org chart filed in Stoica’s office, Chita’s photo  remains at the top.</p>
<p><strong>Class Café</strong> is an inviting coffee shop with a terrace  that overlooks a quiet street. It’s nearly empty when I walk in—just  the owner behind the counter and a young couple at a corner table.</p>
<p>Stoica discouraged me from attempting this meeting, but I wanted to  know what an alleged kingpin looks like. I ask the owner if he knows  where Chita is, and he offers to call him. After a brief phone  conversation, he hangs up and tells me that Chita is in Bucharest. I  remind him that Chita isn’t allowed to leave Râmnicu Vâlcea under the  terms of his release, and the owner smiles. He spends a few more minutes  on the phone, then hangs up again and asks me to sit. Chita is on his  way.</p>
<p>I take a table on the terrace. During our tour of town, Stoica had  pointed out Chita’s silver Mercedes on the road, so I ignore the green  Jaguar that drives up until a man in Bermuda shorts, canvas shoes, and a  white T-shirt climbs out, enters the café, and approaches my table. He  introduces himself as Chita’s brother, Marian. He licks his lips  nervously and fidgets with an iPhone. “Chita’s coming,” he says after  lighting a cigarette and making some phone calls. “But he’s a little  drunk.”</p>
<p>A few minutes later, Chita walks around the corner and ambles into  the café. Boyish, dressed in shorts, a light-blue polo shirt, and  flip-flops, he looks more like a college student than a criminal  mastermind. Despite the reputation of Râmnicu Vâlcea’s underworld as  relatively free of violence, he has brought along some muscle—a young  man in dark glasses with a big tattoo on his arm. The bodyguard slams a  beer bottle down on the table and flexes his hand, as if getting ready  for a boxing match.</p>
<p>Chita shakes my hand dourly and sits down next to me, looking away.  Two other men join us. The young couple from the corner comes over to  greet Chita with fawning smiles and handshakes. They clearly recognize  him, too. The café owner gets up and leaves. As he walks away, he looks  at me gravely and says, “Good luck.”</p>
<div><img class="alignleft" src="http://www.wired.com/magazine/wp-content/images/19-02/ff_hackerville_romania5_f.jpg" alt="Photo: Nick Waplington" width="315" height="472" />Râmnicu  Vâlcea has become the Silicon Valley of online thievery— a place where  the clustering of operations makes boot-strapping a criminal start-up  easier.<br />
Photo: Nick Waplington</p>
</div>
<p>The tattooed man leans toward me ominously. “Were you sent by Barack  Obama?” he asks. I say that I wasn’t, and everyone but me lights  cigarettes. Marian, getting increasingly jumpy, demands to know my true  agenda. Finally, I spell my name and tell him to search for my stories  on his iPhone. He Googles me and shows the screen to his brother.  Everybody relaxes a bit, and I silently give thanks for wireless  broadband.</p>
<p>Marian asks the young couple to translate for Chita, and they agree  to stay. Chita has them tell me to stand, then he pats me down, asking  if I’m wearing a wire.</p>
<p>“What do you say to the charges against you?” I ask.</p>
<p>“They are fake,” Chita says, in English.</p>
<p>Marian adds, “It’s all bullshit.” For clarification.</p>
<p>Chita continues with his defense in Romanian, and the couple  translates enthusiastically. “He doesn’t even know how to speak English,  so it is impossible for him to post ads or exchange email with buyers,”  the young woman says. “He doesn’t even have an email address,” she  says. “How can he do fraud on the Internet?”</p>
<p>I press Chita about the wiretapped conversations, but his tattooed  bodyguard interrupts loudly. “You go back to your hotel room, we send  you some nice pussy,” he says, raising his hand for a high five that I  feel obligated to meet. The two men beside him laugh, and Chita takes a  final drag from his cigarette before rising from his chair. He’s in no  mood to discuss the evidence. “This interview is over,” Marian says.</p>
<p>They saunter out of the café and onto the sidewalk, looking  surprisingly banal for guys accused of organized cybercrime, enjoying  the good life with little effort or risk. Officials have <a href="http://www.wired.com/threatlevel/2010/04/romania-cyber-thieves/">dismantled a few fraud rings</a> in recent years—there were just 188 arrests in all of Romania in 2010—but scores remain in business.</p>
<p>I am left with the friendly couple that helped with the translating.  The young man says he’s heard about Chita from his friends and has seen  his name in the papers. He tells me he has just received a diploma in  engineering from an institution in Bucharest and is now looking for a  job here in Râmnicu Vâlcea, his hometown. “I haven’t found anything  yet,” he says. Thinking about Marian’s Jag and Chita’s Mercedes, I  wonder if he’ll consider a job as an arrow. It’s like Frunza told me at  the restaurant: “You arrest two of them and 20 new ones take their  place,” he said. “We are two police officers, and they are 2,000.”</p>
<p><em>Yudhijit Bhattacharjee</em> (yudhijit@gmail.com) <em>is a staff writer at</em> Science. <em>He wrote about decoding a spy’s messages in issue 18.02.</em></p>
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		<title>WikiLeaks cables: Bangladeshi &#8216;death squad&#8217; trained by UK government</title>
		<link>http://www.brainwaving.com/2010/12/22/wikileaks-cables-bangladeshi-death-squad-trained-by-uk-government/</link>
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		<pubDate>Wed, 22 Dec 2010 11:07:08 +0000</pubDate>
		<dc:creator>Brainwaving Admin</dc:creator>
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		<description><![CDATA[Rapid Action Battalion, accused of hundreds of extra-judicial killings, received training from UK officers, cables reveal The British government has been training a Bangladeshi paramilitary force condemned by human rights organisations as a &#8220;government death squad&#8221;, leaked US embassy cables have revealed. By Fariha Karim and Ian Cobain for the Guardian Members of the Rapid [...]]]></description>
			<content:encoded><![CDATA[<h2>Rapid Action Battalion, accused of hundreds of extra-judicial killings, received training from UK officers, cables reveal</h2>
<p>The British government has been training a Bangladeshi paramilitary  force condemned by human rights organisations as a &#8220;government death  squad&#8221;, leaked US embassy cables have revealed.</p>
<p>By Fariha Karim and <a href="http://www.guardian.co.uk/profile/iancobain">Ian Cobain</a> for <a href="http://www.guardian.co.uk/" target="_blank">the Guardian</a></p>
<p>Members of the  Rapid Action Battalion (RAB), which has been held responsible for  hundreds of extra-judicial killings in recent years and is said to  routinely use torture, have received British training in &#8220;investigative  interviewing techniques&#8221; and &#8220;rules of engagement&#8221;.</p>
<p>Details of the  training were revealed in a number of cables, released by WikiLeaks,  which address the counter-terrorism objectives of the US and UK  governments in <a title="More from guardian.co.uk on Bangladesh" href="http://www.guardian.co.uk/world/bangladesh">Bangladesh</a>. One cable <a href="http://www.guardian.co.uk/world/us-embassy-cables-documents/165499">makes clear that the US would not offer any assistance</a> other than human rights training to the RAB – and that it would be  illegal under US law to do so – because its members commit gross human  rights violations with impunity.</p>
<p>Since the RAB was established six  years ago, it is estimated by some human rights activists to have been  responsible for more than 1,000 extra-judicial killings, described  euphemistically as &#8220;crossfire&#8221; deaths. In September last year the  director general of the RAB said his men had killed 577 people in  &#8220;crossfire&#8221;. In March this year he updated the figure, saying they had  killed 622 people.</p>
<p>The RAB&#8217;s use of torture has also been  exhaustively documented by human rights organisations. In addition,  officers from the paramilitary force are alleged to have been involved  in kidnap and extortion, and are frequently accused of taking large  bribes in return for carrying out crossfire killings.</p>
<p>However, the  cables reveal that both the British and the Americans, in their  determination to strengthen counter-terrorism operations in Bangladesh,  are in favour of bolstering the force, arguing that the &#8220;RAB enjoys a  great deal of respect and admiration from a population scarred by  decreasing law and order over the last decade&#8221;. In one cable, the US  ambassador to Dhaka, James Moriarty, <a href="http://www.guardian.co.uk/world/us-embassy-cables-documents/187025">expresses the view</a> that the RAB is the &#8220;enforcement organisation best positioned to one  day become a Bangladeshi version of the US Federal Bureau of  Investigation&#8221;.</p>
<p>In another cable, Moriarty <a href="http://www.guardian.co.uk/world/us-embassy-cables-documents/206936">quotes British officials</a> as saying they have been &#8220;training RAB for 18 months in areas such as  investigative interviewing techniques and rules of engagement&#8221;. Asked  about the training assistance for the RAB, the Foreign Office said the  UK government &#8220;provides a range of human rights assistance&#8221; in the  country. However, the RAB&#8217;s head of training, Mejbah Uddin, told the  Guardian that he was unaware of any human rights training since he was  appointed last summer.</p>
<p>The cables make clear that British training for RAB officers began three years ago under the last Labour government.</p>
<p>However,  RAB officials confirmed independently of the cables that they had taken  part in a series of courses and workshops as recently as October, five  months after the formation of the coalition government. Asked whether  ministers had approved the training programme, the Foreign Office said  only that William Hague, the foreign secretary, and other ministers, had  been briefed on counter-terrorism spending.</p>
<p>The US ambassador  explains in the cables that the US government is &#8220;constrained by RAB&#8217;s  alleged human rights violations, which have rendered the organisation  ineligible to receive training or assistance&#8221; under laws which prohibit  American funding or training for overseas military units which abuse  human rights with impunity.</p>
<p>Human rights organisations say the RAB  cannot be reformed, noting that its human rights record has  deterioriated still further in the last 12 months. Human Rights Watch  has repeatedly described the RAB as a government death squad.</p>
<p>Brad  Adams, the organisation&#8217;s Asia director, said: &#8220;RAB is a Latin  American-style death squad dressed up as an anti-crime force. The  British government has let its desire for a functional counter-terrorism  partner in Bangladesh blind it to the risks of working with RAB, and  the legitimacy that it gives to RAB inside Bangladesh. Furthermore, it  is not clear that the British government has ever made it a priority at  the highest levels to tell RAB that if it doesn&#8217;t change, it will not  co-operate with it.&#8221;</p>
<p>Amnesty International has also repeatedly  condemned the RAB, while the Bangladeshi human rights organisation  Odhikar has painstakingly documented the RAB&#8217;s involvement in  extra-judicial killings and torture since the creation of the force in  March 2004.</p>
<p>Asked to comment on the rights groups&#8217; concern about  the RAB, the Foreign Office said: &#8220;We do not discuss the detail of  operational counter-terrorism cooperation. Counter-terrorism assistance  is fully in line with our laws and values.&#8221; At least some of the British  training has been conducted by serving British police officers, working  under the auspices of the National Policing Improvement Agency (NPIA),  which was established in 2007 to build policing capacity and standards.  Recent courses for RAB have been provided by officers from West Mercia  and Humberside Police.</p>
<p>Asked whether it believed it was  appropriate for British officers to be training members of an  organisation condemned as &#8220;a government death squad&#8221;, and whether  courses in investigative interviewing techniques might not render  torture more effective, an NPIA spokesman said the courses had been  approved by the government and by the Association of Chief Police  Officers.</p>
<p>&#8220;The NPIA has given limited support to the Bangladeshi  Police and the RAB in technical areas of policing such as forensic  awareness, management of crime scenes and recovery of evidence.  Throughout the training we have emphasised the importance of respecting  the human rights of witnesses, suspects and victims.&#8221;The purpose of our  sanctioned engagement is to support the development and improvement of  professional policing that supports democratic, human rights-based  practices linked to the rule of law in countries that may have different  laws, faiths and policing practices from our own.&#8221;</p>
<p>It is  understood that there have been disagreements within the Foreign Office  about the British government&#8217;s involvement with the RAB. Some officials  have argued that the partnership with the RAB is an essential component  of the UK&#8217;s counter-terrorism strategy in the region, while others have  expressed concern that the relationship could prove damaging to  Britain&#8217;s reputation.</p>
<p>Successive Bangladeshi governments have  promised to end the RAB&#8217;s use of murder. The current government promised  in its manifesto that it would end all extra-judicial killings, but  they have continued following its election two years ago.In October last  year, the shipping minister, Shahjahan Khan, speaking in a discussion  organised by the BBC, said: &#8220;There are incidents of trials that are not  possible under the laws of the land. The government will need to  continue with extra-judicial killings, commonly called crossfire, until  terrorist activities and extortion are uprooted.&#8221;</p>
<p>In December last  year the high court in Dhaka ruled that such killings must be brought  to a halt following litigation by victims&#8217; familes and human rights  groups, but they continue on an almost weekly basis. Most of the victims  are young men, some are alleged to be petty criminals or are said to be  left-wing activists, and the killings invariably take place in the  middle of the night.</p>
<p>In the most recent &#8220;crossfire&#8221; killings, the  RAB reported that it had shot dead Mohammad Mamun, 25, in the town of  Tangail, shortly after midnight on Monday, and that 90 minutes later its  officers in Dhaka, 50 miles to the south, had shot dead a second man,  Taku Alam, 30. Today the RAB announced it had shot dead a 45-year-old  man, Anisur Rahman, said to be a member of the Communist party in the  west of the country.</p>
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		<title>A Police Chief with a Difference</title>
		<link>http://www.brainwaving.com/2010/12/16/a-police-chief-with-a-difference/</link>
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		<pubDate>Thu, 16 Dec 2010 11:53:45 +0000</pubDate>
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		<description><![CDATA[Kiran Bedi has a surprising resume. Before becoming Director General of the Indian Police Service, she managed one of the country&#8217;s toughest prisons &#8212; and used a new focus on prevention and education to turn it into a center of learning and meditation. Before she retired in 2007, Kiran Bedi was one of India’s top [...]]]></description>
			<content:encoded><![CDATA[<p>Kiran Bedi has a surprising resume. Before becoming Director General of  the Indian Police Service, she managed one of the country&#8217;s toughest  prisons &#8212; and used a new focus on prevention and education to turn it  into a center of learning and meditation.</p>
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<p>Before she retired in 2007, Kiran Bedi was one of India’s top cops.  As the first and highest-ranking female officer in the national police  force, she earned a reputation for being tough yet innovative on the  job. Her efforts to prevent crime, reform prisons, end drug abuse, and  support women’s causes earned her a Roman Magsaysay Award, the Asian  equivalent of the Nobel Prize. Bedi also served as a police adviser to  the UN Secretary General.</p>
<p>In retirement, Bedi has become one of  the most trusted and admired community leaders in India. She advocates  for social change and civic responsibility through her books, columns,  and a popular reality-TV show. She reaches out to more than 10,000  people daily through her two NGOs, Navjyoti and India Vision Foundation,  which provide education, training, counseling and health care to the  urban and rural poor. Her latest initiative, Mission Safer India, aims  to ensure that police log and address citizen complaints. Her life is  the subject of the 2008 documentary <em>Yes, Madam Sir</em>, narrated by Helen Mirren.</p>
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		<title>Wikileaks&#8217; aim to defeat &#8220;Authoritarian Conspiracy&#8221;</title>
		<link>http://www.brainwaving.com/2010/12/14/wikileaks-aim-to-defeat-authoritarian-conspiracy/</link>
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		<pubDate>Tue, 14 Dec 2010 12:29:19 +0000</pubDate>
		<dc:creator>Brainwaving Admin</dc:creator>
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		<description><![CDATA[The following is an interesting analysis (by ‘zunguzungu’) of a text by Wikileaks leader Julian Assange, probably written around 2006. See the paper: State and Terrorist Conspiracies For additional analysis, see here. By Michel Bauwens for the P2P Foundation Analysis: (nearly quoted in full) “Most of the news media seems to be losing their minds over Wikileaks without [...]]]></description>
			<content:encoded><![CDATA[<p>The following is an <a href="http://zunguzungu.wordpress.com/2010/11/29/julian-assange-and-the-computer-conspiracy-%E2%80%9Cto-destroy-this-invisible-government%E2%80%9D/">interesting analysis</a> (by ‘zunguzungu’) of a text by Wikileaks leader Julian Assange, probably written around 2006.</p>
<p>See the paper: <a href="http://cryptome.org/0002/ja-conspiracies.pdf">State and Terrorist Conspiracies</a></p>
<p>For additional analysis, see <a href="http://workwithoutdread.blogspot.com/2010/11/assange-and-information-restriction.html">here</a>.</p>
<p>By Michel Bauwens for the <a href="http://blog.p2pfoundation.net/" target="_blank">P2P Foundation</a></p>
<p><strong>Analysis:</strong></p>
<p>(nearly quoted in full)</p>
<p><em>“Most of the news media seems to be losing their minds over Wikileaks without actually reading these essays, even though he describes the function and aims of an organization like Wikileaks in pretty straightforward terms. But, to summarize, he begins by describing a state like the US as essentially an authoritarian conspiracy, and then reasons that the practical strategy for combating that conspiracy is to degrade its ability to conspire, to hinder its ability to “think” as a conspiratorial mind. The metaphor of a computing network is mostly implicit, but utterly crucial: he seeks to oppose the power of the state by treating it like a computer and tossing sand in its diodes.</em></p>
<p><em>He begins by positing that conspiracy and authoritarianism go hand in hand, arguing that since authoritarianism produces resistance to itself — to the extent that its authoritarianism becomes generally known — it can only continue to exist and function by preventing its intentions (the authorship of its authority?) from being generally known. It inevitably becomes, he argues, a conspiracy:</em></p>
<blockquote><p><em>Authoritarian regimes give rise to forces which oppose them by pushing against the individual and collective will to freedom, truth and self realization. Plans which assist authoritarian rule, once discovered, induce resistance. Hence these plans are concealed by successful authoritarian powers. This is enough to define their behavior as conspiratorial.</em></p></blockquote>
<p><em>The problem this creates for the government conspiracy then becomes the organizational problem it must solve: if the conspiracy must operate in secrecy, how is it to communicate, plan, make decisions, discipline itself, and transform itself to meet new challenges? The answer is: by controlling information flows. After all, if the organization has goals that can be articulated, articulating them openly exposes them to resistance. But at the same time, failing to articulate those goals to itself deprives the organization of its ability to process and advance them. Somewhere in the middle, for the authoritarian conspiracy, is the right balance of authority and conspiracy.</em></p>
<p><em>His model for imagining the conspiracy, then, is not at all the cliché that people mean when they sneer at someone for being a “conspiracy theorist.” After all, most the “conspiracies” we’re familiar with are pure fantasies, and because the “Elders of Zion” or James Bond’s SPECTRE have never existed, their nonexistence becomes a cudgel for beating on people that would ever use the term or the concept. For Assange, by contrast, a conspiracy is something fairly banal, simply any network of associates who act in concert by hiding their concerted association from outsiders, an authority that proceeds by preventing its activities from being visible enough to provoke counter-reaction. It might be something as dramatic as a loose coalition of conspirators working to start a war with Iraq/n, or it might simply be the banal, everyday deceptions and conspiracies of normal diplomatic procedure.</em></p>
<p><em>He illustrates this theoretical model by the analogy of a board with nails hammered into it and then tied together with twine:</em></p>
<blockquote><p><em>First take some nails (“conspirators”) and hammer them into a board at random. Then take twine (“communication”) and loop it from nail to nail without breaking. Call the twine connecting two nails a link. Unbroken twine means it is possible to travel from any nail to any other nail via twine and intermediary nails…Information flows from conspirator to conspirator. Not every conspirator trusts or knows every other conspirator even though all are connected. Some are on the fringe of the conspiracy, others are central and communicate with many conspirators and others still may know only two conspirators but be a bridge between important sections or groupings of the conspiracy… Conspirators are often discerning, for some trust and depend each other, while others say little. Important information flows frequently through some links, trivial information through others. So we expand our simple connected graph model to include not only links, but their “importance.” … Return to our board-and-nails analogy. Imagine a thick heavy cord between some nails and fine light thread between others. Call the importance, thickness or heaviness of a link its weight. Between conspirators that never communicate the weight is zero. The “importance” of communication passing through a link is difficult to evaluate apriori, since its true value depends on the outcome of the conspiracy. We simply say that the “importance” of communication contributes to the weight of a link in the most obvious way; the weight of a link is proportional to the amount of important communication flowing across it. Questions about conspiracies in general won’t require us to know the weight of any link, since that changes from conspiracy to conspiracy.</em></p></blockquote>
<p><em>Such a network will not be organized by a flow chart, nor would it ever produce a single coherent map of itself (without thereby hastening its own collapse). It is probably fairly acephalous, as a matter of course: if it had a single head (or a singular organizing mind which could survey and map the entirety), then every conspirator would be one step from the boss and a short two steps away from every other member of the conspiracy. A certain amount of centralization is necessary, in other words (otherwise there is no conspiracy), but too much centralization makes the system vulnerable.</em></p>
<p><em>To use The Wire as a ready-to-hand example, imagine if Avon Barksdale was communicating directly with Bodie. All you would ever have to do is turn one person — any person — and you would be one step away from the boss, whose direct connection to everyone else in the conspiracy would allow you to sweep them all up at once. Obviously, no effective conspiracy would ever function this way. Remember Stringer Bell’s “is you taking notes on a criminal fucking conspiracy?” To function effectively, the primary authority has to be disassociated from all other members of the conspiracy, layers of mediation which have to be as opaque as possible to everyone concerned (which a paper trail unhelpfully clarifies). But while the complexity of these linkages shield the directing authority from exposure, they also limit Avon Barksdale’s ability to control what’s going on around him. Businesses run on their paperwork! And the more walls you build around him, the less he might be able to trust his lieutenants, and the less they’ll require (or tolerate) him.</em></p>
<p><em>This, Assange reasons, is a way to turn a feature into a bug. And his underlying insight is simple and, I think, compelling: while an organization structured by direct and open lines of communication will be much more vulnerable to outside penetration, the more opaque it becomes to itself (as a defense against the outside gaze), the less able it will be to “think” as a system, to communicate with itself. The more conspiratorial it becomes, in a certain sense, the less effective it will be as a conspiracy. The more closed the network is to outside intrusion, the less able it is to engage with that which is outside itself (true hacker theorizing).</em></p>
<p><em>His thinking is not quite as abstract as all that, of course; as he quite explicitly notes, he is also understanding the functioning of the US state by analogy with successful terrorist organizations. If you’ve seen The Battle of Algiers, for example, think of how the French counter-terrorist people work to produce an organizational flow chart of the Algerian resistance movement: since they had overwhelming military superiority, their inability to crush the FLN resided in their inability to find it, an inability which the FLN strategically works to impede by decentralizing itself. Cutting off one leg of the octopus, the FLN realized, wouldn’t degrade the system as a whole if the legs all operated independently. The links between the units were the vulnerable spots for the system as a whole, so those were most closely and carefully guarded and most hotly pursued by the French. And while the French won the battle of Algiers, they lost the war, because they adopted the tactics Assange briefly mentions only to put aside:</em></p>
<blockquote><p><em>How can we reduce the ability of a conspiracy to act?…We can split the conspiracy, reduce or eliminating important communication between a few high weight links or many low weight links. Traditional attacks on conspiratorial power groupings, such as assassination, have cut high weight links by killing, kidnapping, blackmailing or otherwise marginalizing or isolating some of the conspirators they were connected to.</em></p></blockquote>
<p><em>This is the US’s counterterrorism strategy — find the men in charge and get ’em — but it’s not what Assange wants to do: such a program would isolate a specific version of the conspiracy and attempt to destroy the form of it that already exists, which he argues will have two important limitations. For one thing, by the time such a conspiracy has a form which can be targeted, its ability to function will be quite advanced. As he notes:</em></p>
<blockquote><p><em>“A man in chains knows he should have acted sooner for his ability to influence the actions of the state is near its end. To deal with powerful conspiratorial actions we must think ahead and attack the process that leads to them since the actions themselves can not be dealt with.”</em></p></blockquote>
<p><em>By the time a cancer has metastasized, in other words, antioxidents are no longer effective, and even violent chemotherapy is difficult. It’s better, then, to think about how conspiracies come into existence so as to prevent them from forming in the first place (whereas if you isolate the carcinogen early enough, you don’t need to remove the tumor after the fact). Instead, he wants to address the aggregative process itself, by impeding the principle of its reproduction: rather than trying to expose and cut particular links between particular conspirators (which does little to prevent new links from forming and may not disturb the actual functioning of the system as a whole), he wants to attack the “total conspiratorial power” of the entire system by figuring out how to reduce its total ability to share and exchange information among itself, in effect, to slow down its processing power. As he puts it:</em></p>
<blockquote><p><em>Conspiracies are cognitive devices. They are able to outthink the same group of individuals acting alone Conspiracies take information about the world in which they operate (the conspiratorial environment), pass through the conspirators and then act on the result. We can see conspiracies as a type of device that has inputs (information about the environment), a computational network (the conspirators and their links to each other) and outputs (actions intending to change or maintain the environment).</em></p></blockquote>
<p><em>Because he thinks of the conspiracy as a computational network, he notes in an aside that one way to weaken its cognitive ability would be to degrade the quality of its information:</em></p>
<blockquote><p><em>Since a conspiracy is a type of cognitive device that acts on information acquired from its environment, distorting or restricting these inputs means acts based on them are likely to be misplaced. Programmers call this effect garbage in, garbage out. Usually the effect runs the other way; it is conspiracy that is the agent of deception and information restriction. In the US, the programmer’s aphorism is sometimes called “the Fox News effect”.</em></p></blockquote>
<p><em>I’m not sure this is what he means, but it’s worth reflecting that the conspiracy’s ability to deceive others through propaganda can also be the conspiracy’s tendency to deceive itself by its own propaganda. So many people genuinely drink the Kool-Aid, after all. Would our super-spies in Afghanistan ever have been so taken in by the imposter Taliban guy if they didn’t, basically, believe their own line of propaganda, if they didn’t convince themselves — even provisionally — that we actually are winning the war against Talibothra? The same is true of WMD; while no one in possession of the facts could rationally conclude that Saddam Hussein then (or Iran now) are actually, positively in pursuit of WMD’s, this doesn’t mean that the people talking about ticking time bombs don’t actually believe that they are. It just means they are operating with bad information about the environment. Sometimes this works in their favor, but sometimes it does not: if Obama thinks Afghanistan is winnable, it may sink his presidency, for example, while the belief of his advisors that the economy would recover if the government rescued only the banks almost certainly lost the midterm elections for the Democrats (and was the death-knell for so many of the Blue Dogs who were driving that particular policy choice). Whether this actually hurts the conspiracy is unclear; those Blue Dogs might have lost their seats, but most of them will retire from public service to cushy jobs supported by the sectors they supported while they were in public service. And lots of successful politicians do nothing but fail.</em></p>
<p><em>This is however, not where Assange’s reasoning leads him. He decides, instead, that the most effective way to attack this kind of organization would be to make “leaks” a fundamental part of the conspiracy’s information environment. Which is why the point is not that particular leaks are specifically effective. Wikileaks does not leak something like the “Collateral Murder” video as a way of putting an end to that particular military tactic; that would be to target a specific leg of the hydra even as it grows two more. Instead, the idea is that increasing the porousness of the conspiracy’s information system will impede its functioning, that the conspiracy will turn against itself in self-defense, clamping down on its own information flows in ways that will then impede its own cognitive function. You destroy the conspiracy, in other words, by making it so paranoid of itself that it can no longer conspire:</em></p>
<blockquote><p><em>The more secretive or unjust an organization is, the more leaks induce fear and paranoia in its leadership and planning coterie. This must result in minimization of efficient internal communications mechanisms (an increase in cognitive “secrecy tax”) and consequent system-wide cognitive decline resulting in decreased ability to hold onto power as the environment demands adaption. Hence in a world where leaking is easy, secretive or unjust systems are nonlinearly hit relative to open, just systems. Since unjust systems, by their nature induce opponents, and in many places barely have the upper hand, mass leaking leaves them exquisitely vulnerable to those who seek to replace them with more open forms of governance.</em></p></blockquote>
<p><em>The leak, in other words, is only the catalyst for the desired counter-overreaction; Wikileaks wants to provoke the conspiracy into turning off its own brain in response to the threat. As it tries to plug its own holes and find the leakers, he reasons, its component elements will de-synchronize from and turn against each other, de-link from the central processing network, and come undone. Even if all the elements of the conspiracy still exist, in this sense, depriving themselves of a vigorous flow of information to connect them all together as a conspiracy prevents them from acting as a conspiracy. As he puts it:</em></p>
<blockquote><p><em>If total conspiratorial power is zero, then clearly there is no information flow between the conspirators and hence no conspiracy. A substantial increase or decrease in total conspiratorial power almost always means what we expect it to mean; an increase or decrease in the ability of the conspiracy to think, act and adapt…An authoritarian conspiracy that cannot think is powerless to preserve itself against the opponents it induces.</em></p></blockquote>
<p><em>In this sense, most of the media commentary on the latest round of leaks has totally missed the point. After all, why are diplomatic cables being leaked? These leaks are not specifically about the war(s) at all, and most seem to simply be a broad swath of the everyday normal secrets that a security state keeps from all but its most trusted hundreds of thousands of people who have the right clearance. Which is the point: Assange is completely right that our government has conspiratorial functions. What else would you call the fact that a small percentage of our governing class governs and acts in our name according to information which is freely shared amongst them but which cannot be shared amongst their constituency? And we all probably knew that this was more or less the case; anyone who was surprised that our embassies are doing dirty, secretive, and disingenuous political work as a matter of course is naïve. But Assange is not trying to produce a journalistic scandal which will then provoke red-faced government reforms or something, precisely because no one is all that scandalized by such things any more. Instead, he is trying to strangle the links that make the conspiracy possible, to expose the necessary porousness of the American state’s conspiratorial network in hopes that the security state will then try to shrink its computational network in response, thereby making itself dumber and slower and smaller.</em></p>
<p><em>Early responses seem to indicate that Wikileaks is well on its way to accomplishing some of its goals. As Simon Jenkins put it (in a great piece in its own right) “The leaks have blown a hole in the framework by which states guard their secrets.” And if the diplomats quoted by Le Monde are right that, “we will never again be able to practice diplomacy like before,” this is exactly what Wikileaks was trying to do. It’s sort of pathetic hearing diplomats and government shills lament that the normal work of “diplomacy” will now be impossible, like complaining that that the guy boxing you out is making it hard to get rebounds. Poor dears. If Assange is right to point out that his organization has accomplished more state scrutiny than the entire rest of the journalistic apparatus combined, he’s right but he’s also deflecting the issue: if Wikileaks does some of the things that journalists do, it also does some very different things. Assange, as his introductory remarks indicate quite clearly, is in the business of “radically shift[ing] regime behavior.”</em></p>
<p><em>If Wikileaks is a different kind of organization than anything we’ve ever seen before, it’s interesting to see him put himself in line with more conventional progressivism. Assange isn’t off base, after all, when he quotes Theodore Roosevelt’s words from his 1912 Progressive party presidential platform as the epigraph to the first essay; Roosevelt realized a hundred years ago that “Behind the ostensible government sits enthroned an invisible government owing no allegiance and acknowledging no responsibility to the people,” and it was true, then too, that “To destroy this invisible government, to befoul this unholy alliance between corrupt business and corrupt politics is the first task of statesmanship.” Assange is trying to shit all over this unholy alliance in ways that the later and more radical Roosevelt would likely have commended.</em></p>
<p><em>It’s worth closing, then, by recalling that Roosevelt also coined the term “muckraker,” and that he did so as a term of disparagement. Quoting from Pilgrim’s Progress, he cited the example of the “Muck-Raker” who could only look down, whose perspective was so totally limited to the “muck” that it was his job to rake, he had lost all ability to see anything higher. Roosevelt, as always, is worth quoting:</em></p>
<blockquote><p><em>In Bunyan’s Pilgrim’s Progress you may recall the description of the Man with the Muck-rake, the man who could look no way but downward, with the muckrake in his hand; who was offered a celestial crown for his muck-rake, but who would neither look up nor regard the crown he was offered, but continued to rake to himself the filth of the floor…the Man with the Muck-rake is set forth as the example of him whose vision is fixed on carnal instead of on spiritual things. Yet he also typifies the man who in this life consistently refuses to see aught that is lofty, and fixes his eyes with solemn intentness only on that which is vile and debasing. Now, it is very necessary that we should not flinch from seeing what is s vile and debasing. There is filth on the floor, and it must be scraped up with the muck-rake; and there are times and places where this service is the most needed of all the services that can be performed. But the man who never does anything else, who never thinks or speaks or writes save of his feats with the muck-rake, speedily becomes, not a help to society, not an incitement to good, but one of the most potent forces for evil. There are, in the body politic, economic, and social, many and grave evils, and there is urgent necessity for the sternest war upon them. There should be relentless exposure of and attack upon every evil man, whether politician or business man, every evil practice, whether in politics, in business, or in social life. I hail as a benefactor every writer or speaker, every man who, on the platform, or in book, magazine, or newspaper, with merciless severity makes such attack, provided always that he in his turn remembers that the attack is of use only if it is absolutely truthful…</em></p></blockquote>
<p><em>Roosevelt was many things when he uttered those words, but he was not wrong. There is a certain vicious amorality about the Mark Zuckerberg-ian philosophy that all transparency is always and everywhere a good thing, particularly when it’s uttered by the guy who’s busily monetizing your radical transparency. And the way most journalists “expose” secrets as a professional practice — to the extent that they do — is just as narrowly selfish: because they publicize privacy only when there is profit to be made in doing so, they keep their eyes on the valuable muck they are raking, and learn to pledge their future professional existence on a continuing and steady flow of it. In muck they trust.</em></p>
<p><em> </em></p>
<p><em>According to his essay, Julian Assange is trying to do something else. Because we all basically know that the US state — like all states — is basically doing a lot of basically shady things basically all the time, simply revealing the specific ways they are doing these shady things will not be, in and of itself, a necessarily good thing. In some cases, it may be a bad thing, and in many cases, the provisional good it may do will be limited in scope. The question for an ethical human being — and Assange always emphasizes his ethics — has to be the question of what exposing secrets will actually accomplish, what good it will do, what better state of affairs it will bring about. And whether you buy his argument or not, Assange has a clearly articulated vision for how Wikileaks’ activities will “carry us through the mire of politically distorted language, and into a position of clarity,” a strategy for how exposing secrets will ultimately impede the production of future secrets. The point of Wikileaks — as Assange argues — is simply to make Wikileaks unnecessary”.</em></p>
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		<title>Was the poisoning of a French town in 1951 an LSD trial?</title>
		<link>http://www.brainwaving.com/2010/08/25/was-the-poisoning-of-a-french-town-in-1951-an-lsd-trial/</link>
		<comments>http://www.brainwaving.com/2010/08/25/was-the-poisoning-of-a-french-town-in-1951-an-lsd-trial/#comments</comments>
		<pubDate>Wed, 25 Aug 2010 07:41:17 +0000</pubDate>
		<dc:creator>Joe Murray</dc:creator>
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		<guid isPermaLink="false">http://www.brainwaving.com/?p=1444</guid>
		<description><![CDATA[On August 16th 1951 a number of people in the quiet southern French town of Pont St.Esprit began to fall ill. Stomach pains were soon followed by violent and often terrifying hallucinations. Local hospitals were soon overwhelmed and more than thirty people were taken to asylums in nearby towns. It was soon decided that the [...]]]></description>
			<content:encoded><![CDATA[<p>On August 16th 1951 a number of people in the quiet southern French town of Pont St.Esprit began to fall ill. Stomach pains were soon followed by violent and often terrifying hallucinations. Local hospitals were soon overwhelmed and more than thirty people were taken to asylums in nearby towns. It was soon decided that the cause was bread poisoning and the evidence pointed to just one Bakery. The reason, it was believed was &#8216;ergot&#8217;, a fungal infection found in Rye bread which had often caused mass poisonings in Medieval times.</p>
<p>Listen to the fascinating BBC Radio documentary <a href="http://www.bbc.co.uk/iplayer/console/b00tg1y1" target="_blank">here</a></p>
<p>But documents obtained by the American writer Hank Albarelli suggest that rather than simple &#8216;ergot&#8217; there was a strong possibility that the symptoms and the nature of the outbreak were not a tragic accident. In his research in to the mysterious death of the CIA biochemist Frank Olson and his post-war work on LSD and its uses as a biochemical weapon he got hold of papers implying Olson&#8217;s connection with the Pont St Esprit outbreak.</p>
<p>Mike follows up the claims talking to experts in LSD and its impact, historians of the cold-war search for the perfect biochemical weapon and agricultural scientists specialising in ergot poisoning. He also visits the town of Pont St Esprit and talks to one survivor, the local postman Leon Armundier, about the events of 1951. Leon describes of the horrors he faced as a young man, being forced into a straight-jacket for a week as burning sensations and images of snakes raged around him.<br />
Many in the town are uneasy at re-opening the old story about Le Pain Maudit &#8211; the evil bread &#8211; preferring the establishment &#8216;truth&#8217; that it was just a tragic accident. But there are some who believe a proper examination of the facts still hasn&#8217;t taken place.</p>
<div id="supporting-content">
<div>
<h2>The French Media</h2>
<div><img src="http://wwwimg.bbc.co.uk/programmes/i/512xn/bad64aa716caa3c8149e22dbeda384d920108d61.jpg" alt="" />How one French magazine covered the incident in 1951.</p>
</div>
</div>
<div>
<h2>Victim</h2>
<div><img src="http://wwwimg.bbc.co.uk/programmes/i/512xn/918daea098ba42dd70368b88275ca70ce2dffe72.jpg" alt="" />Leon Armunier, now 86, was a victim of Le Pain Maudit.</p>
</div>
</div>
<div>
<h2>CIA Document</h2>
<div><img src="http://wwwimg.bbc.co.uk/programmes/i/512xn/2a0db11b3b578f07b1b834ebba736cb1481636a0.jpg" alt="" />Contemporary CIA document referring to Pont Saint Esprit.</p>
</div>
</div>
<div>
<h2>The Hospital</h2>
<div><img src="http://wwwimg.bbc.co.uk/programmes/i/512xn/e8db980ffe8e3302966924cbe12345f5907e5760.jpg" alt="" />Local hospital, now closed, where the victims were taken.</p>
</div>
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<div>
<h2>Pont Saint Esprit by the River Rhone</h2>
<div><img src="http://wwwimg.bbc.co.uk/programmes/i/512xn/92759d5d2096fbf6dda6ac4918152a4221c6fdda.jpg" alt="" /></div>
</div>
</div>
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		<title>Monkey Economicus?</title>
		<link>http://www.brainwaving.com/2010/08/04/monkey-economicus/</link>
		<comments>http://www.brainwaving.com/2010/08/04/monkey-economicus/#comments</comments>
		<pubDate>Wed, 04 Aug 2010 10:41:04 +0000</pubDate>
		<dc:creator>Cosmo</dc:creator>
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		<guid isPermaLink="false">http://www.brainwaving.com/?p=1427</guid>
		<description><![CDATA[Laurie Santos looks for the roots of human irrationality by watching the way our primate relatives make decisions. A clever series of experiments in &#8220;monkeynomics&#8221; shows that some of the silly choices we make, monkeys make too. Laurie Santos studies primate psychology and monkeynomics &#8212; testing problems in human psychology on primates, who (not so [...]]]></description>
			<content:encoded><![CDATA[<p>Laurie Santos looks for the roots of human irrationality by watching the way our primate relatives make decisions. A clever series of experiments in &#8220;monkeynomics&#8221; shows that some of the silly choices we make, monkeys make too.</p>
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<p>Laurie Santos studies primate psychology and monkeynomics &#8212; testing problems in human psychology on primates, who (not so surprisingly) have many of the same predictable irrationalities we do.</p>
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		<title>A Ladies&#8217; Man and Shameless</title>
		<link>http://www.brainwaving.com/2010/07/13/a-ladies-man-and-shameless/</link>
		<comments>http://www.brainwaving.com/2010/07/13/a-ladies-man-and-shameless/#comments</comments>
		<pubDate>Tue, 13 Jul 2010 09:18:02 +0000</pubDate>
		<dc:creator>John Perry Barlow</dc:creator>
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		<guid isPermaLink="false">http://www.brainwaving.com/?p=1371</guid>
		<description><![CDATA[Das ewig weibliche zieht uns hinan. The eternally feminine leads us forward. &#8211; Goethe He who binds himself to a joy does the winged life destroy, But he who kisses the joy as it flies lives in Eternity&#8217;s sunrise. &#8211; William Blake Only connect. &#8211; E. M. Forster I&#8216;m finally ready to declare myself. I [...]]]></description>
			<content:encoded><![CDATA[<p><span style="font-size: medium;"> </span></p>
<blockquote><p>Das ewig weibliche zieht uns hinan.</p>
<p><em>The eternally feminine leads us forward.</em></p>
<p>&#8211; Goethe</p>
<p><em>He who binds himself to a joy does the winged life destroy,<br />
But he who kisses the joy as it flies lives in Eternity&#8217;s sunrise.</em></p>
<p>&#8211; William Blake</p>
<p><em>Only connect.</em></p>
<p>&#8211; E. M. Forster</p></blockquote>
<p><span style="font-size: x-large;">I</span><span style="font-size: medium;">&#8216;m finally ready to declare myself. I am a ladies&#8217; man. A womanizer. A libertine. A rake. A rogue. A roué. A goddamn running loose dog. I&#8217;d admit to being a lecher, but that word implies a solipsistic predation that I hope never applies to any of my relations with the mysterious sex.</span><span style="font-size: medium;">This</span></p>
<p>is about something more sacred than anything a drooling wanker could appreciate.</p>
<p>This is about worship. From the time the testosterone kicked in, I have knelt at the altar of that<br />
which is female in this world. I love women. What I love in them is something that moves and must be free to do so. I love their smells, their textures,</p>
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<p>their complexities, the inexhaustible variety of their psychic weather patterns.  I love to flirt with them, dance with them, and to discourse with them endlessly on the differences between men and women. I love to make love.</p>
<p>The sexual fires have always burned bright in my brainstem. Priapically preoccupied, I&#8217;ve written poetry by the ream, stormed police lines, ridden broncs, thrown punches and generally embarrassed myself on countless occasions. (Actually, I suspect that history consists largely of foolish things men have done to show off for women.)</p>
<p>There are probably twenty-five or thirty women &#8212; I certainly don&#8217;t count them &#8212; for whom I feel an abiding and deep emotional attachment. They&#8217;re scattered all over the planet. They range in age from less than half to almost twice my own. Most of these relationships are not actively sexual. Some were at one time. More never will be. But most of them feel as if they could become so. I love the feel of that tension, the delicious gravity of possibilities.</p>
<p>I must also admit that for me this gravity generally increases with novelty. The New, the fresh<br />
<img src="http://www.nerve.com/files/personalessays/barlow/shameless/pull2.gif" alt="" width="250" height="170" align="RIGHT" />and unknown expanses of the emotional frontier, hold a fascination for me that I wish they did not. This breeds superficiality and the appearance of a hunger for conquest. But, unfortunately, I love the<br />
voltage, the charged gap between two people that can draw across itself such huge flows of<br />
information from so many parts of us. I love the feel of human bandwidth &#8212; intercourse<br />
on all channels &#8212; and there is so much more to exchange when nothing is yet known.</p>
<p>Despite many clear and cosmic messages that women (and death) were meant to be the curricula of my life &#8212; my dharma &#8212; and that practically everything I&#8217;ve done has been about trying to understand them, I resisted formal matriculation into this perilous course of study until well past the age when most men have already given up and settled into monogamies as comfortable and unquestioned as their football loyalties.</p>
<p>And now, late in my forties, I doubt I&#8217;ll ever be monogamous again. For reasons I&#8217;ll explain, I feel strangely exiled into a condition of emotional wandering. I think my heart will travel widely. I want to know as many more women as time and their indulgence will permit me.</p>
<p>Even so, I also want to go on loving the women I love now &#8212; and I do love them &#8212; for the rest of<br />
my life. These are relationships that have already lasted much longer than most marriages, even though some of them had to endure the hiatus of my own previous monogamies, one imposed by society, the other by what felt like an act of God.</p>
<p><strong>The Road to Hell</strong></p>
<p><img src="http://www.nerve.com/files/personalessays/barlow/shameless/photo1.jpg" border="0" alt="" width="263" height="327" align="right" />I tried monogamy despite feeling from the get-go that being monogamous made as much sense as declaring that I liked, say, mashed potatoes and gravy so darned much that I would resolve to eat nothing else for the rest of my life.</p>
<p>So I got married and stayed that way for seventeen years, attempting with some grim success to impose fidelity on myself. It was, I figured, the price I had to pay in return for a good place to raise kids. And though I loved my ex-wife, and still do, I wasn&#8217;t in love with her. Didn&#8217;t believe in it, actually. I thought being in love was a myth people had invented to punish themselves for lacking it.</p>
<p>Fidelity always felt like work: an act of will rather than nature. As time passed, nature gradually<br />
gained the upper hand, as she almost always does. I was never quite able to stop flirting &#8212; a form of exchange that has always felt holy to me &#8212; nor was I able to disguise from my wife my<br />
undiminished appreciation of other women. This led to sexual distance between us, and I started to get hungry. There began to be incidents of what is called, in rock n roll, &#8220;offshore drilling.&#8221;</p>
<p>Not realizing that women hate deceit even more than they hate infidelity &#8212; and they <em>always</em><br />
know &#8212; I turned into a sneak and a liar. I became someone I couldn&#8217;t respect, and so I left my<br />
marriage.</p>
<p>Not long after that, I experienced the miracle of <em>voluntary</em> monogamy for one brief and<br />
blissful period, during which, at the age of forty-six, I did fall in love for the first time in my<br />
life. During the year that followed, it was as though there were no other women except in the most abstract sense. I still delighted in the presence of pulchritude, but it was an appreciation as sublime in its detachment as my enjoyment of nature&#8217;s other wonders. I didn&#8217;t want to <em>do</em> anything about these beauties, any more than <img src="http://www.nerve.com/files/personalessays/barlow/shameless/pull3.gif" border="0" alt="" width="196" height="130" align="left" />I would want <em>do</em> something about sunsets or Bach fugues. Cynthia<br />
was the only woman. But two days before we were to be married, I put her on a plane in Los Angeles<br />
and somewhere between there and New York the virus that had been secretly consuming her stopped her<br />
heart.</p>
<p>The most important consequence of losing Cynthia is that I now believe in the human soul. I had to see it and, once seen, it became obvious to me.  No longer did I dismiss it as a biological<br />
artifact, a kind of software that arises in the electrochemical sputterings of the squishyware and<br />
cannot run otherwise. Rather I can feel the soul as an independent though immaterial identity that wears bodies like a costume.</p>
<p>I finally had the answer to a question I&#8217;d been asked shortly before I met her. I&#8217;d been speaking to a bunch of kids at the New York University film school about Virtual Reality when I got the usual question about virtual sex. This was such a predictable question that I had a mental tape I always ran in response to it that went something like: &#8220;I don&#8217;t get the fascination with virtual sex. Sex is about bodies, and being in VR is like having had your body amputated. What could be less sexy?&#8221;</p>
<p>At this point, a very embodied young woman in the front row raised her beautiful hand. &#8220;But don&#8217;t you think,&#8221; she asked, &#8220;that when it comes to sex, the body is just a prosthesis?&#8221;</p>
<p>My tape stopped running. &#8220;A prosthesis for what?&#8221;</p>
<p>&#8220;That&#8217;s the interesting question, isn&#8217;t it.&#8221; she smiled, all sphinxy.</p>
<p>Yeah. That was the interesting question alright, and Cynthia, in both the way she inhabited her body and the way she remained after leaving it, answered it for me. There is indeed a hand that moves the hand, there is a kiss that lives inside both sets of lips.</p>
<p>At that point I decided that, whatever the pressures of society or the propensity of most women to<br />
<img src="http://www.nerve.com/files/personalessays/barlow/shameless/pull4.gif" alt="" width="182" height="146" align="right" />insist on it, I wouldn&#8217;t attempt monogamy again unless and until I encountered someone who induced it in me as naturally as she did. And I like to believe that nothing would make me happier than to have that happen. To fall in love. To be singularly devoted again.</p>
<p>(But I have to confess to aspects of my current behavior pattern that are subconsciously designed to prevent this very thing from happening. If just once in your life you&#8217;ve put all of your emotional eggs in one basket, only to have that basket smashed almost immediately, it inclines you toward more distributed systems of emotional support.)</p>
<p>There is a central woman in my life, a luminous Swede who lives in San Francisco. She is the person I always call when I feel bad in the middle of the night. She is beautiful and funny, as game on an adventure as Indiana Jones; she is a sexual poet, and I love her.</p>
<p>That she is not the only woman in my life pains her &#8212; as will this piece &#8212; and I wish to cause her no pain. But I learned from my marriage what suffering can be inflicted by someone who tries unsuccessfully to contain himself in the service of someone else&#8217;s feelings.</p>
<p>And scrupulous honesty, though it requires courage on both sides, is a lot more practical than most men believe it to be. The fact that I don&#8217;t lie to her about these other encounters brings us closer rather than separating us. And sin, as Nietzsche said (and I often quote), is that which separates.</p>
<p><span><span style="font-size: medium;"><strong>A Pariah&#8217;s Advantages</strong></span></span></p>
<p><span><span style="font-size: medium;"><img src="http://www.nerve.com/files/personalessays/barlow/shameless/photo2.jpg" border="0" alt="" width="267" height="197" align="right" />While I&#8217;ve been honest about all this to my girlfriend and the other objects of my affection, I</span></span></p>
<p><span><span style="font-size: medium;"> haven&#8217;t come clean in public until now. It&#8217;s an odd omission. I&#8217;ve tried to write as candidly as</span></span></p>
<p><span><span style="font-size: medium;"> possible about my other deviations from standard American morality. I&#8217;m in the lucky position of being so de-institutionalized that I can</span></span></p>
<p><span><span style="font-size: medium;"> say whatever I like without fear of adverse economic consequences. Indeed, lunatic candor seems to be my primary product these days. Like Hunter S. Thompson, the badder I get, the better I get paid.</span></span></p>
<p><span><span style="font-size: medium;"> </span></span></p>
<p><span><span style="font-size: medium;"> </span></span></p>
<p><span><span style="font-size: medium;"> A bad reputation can set you free. After all, if you&#8217;ve already declared yourself to be a</span></span></p>
<p><span><span style="font-size: medium;"> pot-smoking, acid-addled slut, your opponents are forced to oppose your ideas on their merits,</span></span></p>
<p><span><span style="font-size: medium;"> rather than strategically revealing your hidden depravities. Shame is no weapon against the</span></span></p>
<p><span><span style="font-size: medium;"> shameless.</span></span></p>
<p><span><span style="font-size: medium;"> </span></span></p>
<p><span><span style="font-size: medium;"> </span></span></p>
<p><span><span style="font-size: medium;"> In fact, part of what motivates this public revelation is a belief that I am behaving morally,</span></span></p>
<p><span><span style="font-size: medium;"> despite following a course that society would generally condemn. My conscience is clear, a fact that</span></span></p>
<p><span><span style="font-size: medium;"> is not simply due to poor memory or an unwillingness to examine it carefully.</span></span></p>
<p><span><span style="font-size: medium;"> </span></span></p>
<p><span><span style="font-size: medium;"> </span></span></p>
<p><span><span style="font-size: medium;"> These admissions are also related to the fact that I find myself a few gray hair-breadths away from</span></span></p>
<p><span><span style="font-size: medium;"> turning fifty, an age beyond which surreptitious ladies&#8217; men become pathetic in direct proportion to</span></span></p>
<p><span><span style="font-size: medium;"> the uneasiness they feel with their own lascivious impulses.</span></span></p>
<p><span><span style="font-size: medium;"> </span></span></p>
<p><span><span style="font-size: medium;"> </span></span></p>
<p><span><span style="font-size: medium;"> The phrase &#8220;dirty old man&#8221; begins to haunt me, especially as I continue to find my pot-bellied old</span></span></p>
<p><span><span style="font-size: medium;"> self attracted to the same youthful feminine specifications that put steel in my poker when I was</span></span></p>
<p><span><span style="font-size: medium;"> twenty-five.</span></span></p>
<p><span><span style="font-size: medium;"><br />
<img src="http://www.nerve.com/files/personalessays/barlow/shameless/pull5.gif" alt="" width="180" height="109" align="LEFT" /></span></span></p>
<p>Yet that&#8217;s not all there is to it: for me, it is the combination of these two beauties, the inner and the outer, that draws me most<br />
compellingly. There are plenty of perfectly formed surfaces that have no light within them and they<br />
don&#8217;t do much for me. At the same time,<br />
there are beautiful souls within bodies that are the female equivalent of my own, and while some of<br />
these are close friends, they lack the sexual spice that really fuels most discourse between the<br />
sexes.</p>
<p>I thus remain convinced that there is something holy about beauty, whether attached to a woman or a waterfall,<br />
and I have the entire history of art &#8212; at least until the Twentieth Century &#8212; to back me up on<br />
this. I don&#8217;t think of beauty as being something that is part of a woman, but rather something like<br />
a mist that gathers around her that becomes more beautiful if illuminated brightly from within. The<br />
real beauty, the part that lasts, is in the soul and not the skin.</p>
<p>Even when one is seeking sex between souls, the &#8220;prostheses&#8221; they wear are not irrelevant.</p>
<p><strong>King Dick Meets My Inner Lesbian</strong></p>
<p><span><span style="font-size: medium;"><br />
But ironically enough, a lot of being sexy means getting past the root-level sex drive. One of the great moments in my sexual education came some years back when Dick Cavett was<br />
interviewing Raquel Welch at the height of her va-va-voomishness. &#8220;Tell me, Raquel,&#8221; he leered,<br />
&#8220;what&#8217;s your favorite erogenous zone?&#8221;</span></span></p>
<p>She paused, gave him a level look that completely revised my opinion of her intelligence, and said<br />
crisply, &#8220;My mind, Dick.&#8221;</p>
<p>The mind, I have since discovered, is just about every woman&#8217;s favorite erogenous zone, but it is<br />
<img src="http://www.nerve.com/files/personalessays/barlow/shameless/pull8.gif" alt="" width="180" height="109" align="RIGHT" /><br />
mystical terrain and must be explored with care and time. The dick, in its youthful phase, is not<br />
big on care or time. It is the very definition of urgency. It makes non-negotiable demands of its<br />
bearer that are related to the inner<br />
nature of its target only to the extent that some knowledge of her has strategic value in getting<br />
her into bed.</p>
<p>Now my formerly dictatorial appendage is more like an old sidekick. A fellow veteran. It doesn&#8217;t<br />
have the same reload rate of old, but there&#8217;s no <em>ejaculatio praecox</em> to worry about either.<br />
The old soldier can pace itself. And if it can&#8217;t spit five shots in quick succession, it&#8217;s no longer<br />
calling my shots as it once did. Into the vacuum of its diminished authority has risen my heretofore<br />
undiscovered inner lesbian.</p>
<p>My inner lesbian is a wonderful accomplice, since she knows a lot about what turns women on, is more<br />
attuned to sensuality than the old in-out, and believes strongly that the journey is the reward.<br />
This doesn&#8217;t mean that she is not interested in orgasms, but she knows that one great thing about<br />
being a woman is that if you can come at all &#8212; which a lamentably high percentage cannot &#8212; you can<br />
usually come a lot and in a variety of ways. She makes it a lot easier to get away from my own<br />
sexual objectives and into the multifarious delights of the joint critter, the one Shakespeare<br />
called &#8220;the beast with two backs.&#8221;</p>
<p>And creating that larger organism, making the Other into the Self, merging the Self into the Other<br />
is, after all, what sex is ultimately about. And of course, the point is not to have a self at all.<br />
To be Everything.</p>
<p><strong>The Infinity of Love</strong></p>
<p>All said, you&#8217;re probably wondering why any woman would want to become emotionally or physically<br />
involved with a man whose promiscuity is so freely confessed. Of course, many of them don&#8217;t. I<br />
eliminate a lot of opportunity by wearing my Don Juan warning placard so visibly (even then, the<br />
hesitant don&#8217;t leave me entirely bereft).</p>
<p>But most of the resistance to becoming involved with a self-admitted playboy has to do with that<br />
all-important female perception of being <em>special.</em> It is hard to feel that knowing there are<br />
<img src="http://www.nerve.com/files/personalessays/barlow/shameless/pull9.gif" alt="" width="203" height="131" align="LEFT" /><br />
others out there. But there is an answer to this, and finding it has enabled me to feel a deeper sense of connection not only with<br />
women but with all the rest of my species.</p>
<p>The answer is that everyone <em>is</em> special. So also is every relationship. The creature that<br />
forms<br />
between any one person and another is like no other creature in the world. It is theirs and theirs alone.<br />
Furthermore,<br />
while time and<br />
space and attention may be painfully finite, love is not. Love has no quantity to exhaust. It is a<br />
quality, a living thing, that grows stronger the more it is felt. The vigorous practice of love<br />
expands the heart and opens its apertures to the world.</p>
<p>In other words, to love a lot of women, you have to love them, without a trace of bullshit, one<br />
woman at a time. You have to bring each of them with you into the perfectly present, creating there<br />
a private zone of space and time that can be filled with that particular love. You won&#8217;t have any of<br />
the comforting (though generally broken) social conventions to assure you that your vulnerability is<br />
safe. There are no assurances at all except for those that come directly from the feeling of<br />
connection you can make together. You are, in effect, beating back the darkness with the light you<br />
generate yourselves.</p>
<p>When I judge myself, there is one question I ask: Would I want my daughters to encounter a man like<br />
me? And because I want them to be brave in their love, because I want their faith to be annealed by<br />
experience on the edge, I hope they find a few of my kind. But I hope they don&#8217;t bring too many of<br />
us home.</p>
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		<title>Noam Chomsky and Latin America</title>
		<link>http://www.brainwaving.com/2010/06/07/noam-chomsky-and-latin-america/</link>
		<comments>http://www.brainwaving.com/2010/06/07/noam-chomsky-and-latin-america/#comments</comments>
		<pubDate>Mon, 07 Jun 2010 13:14:31 +0000</pubDate>
		<dc:creator>fredarmesto</dc:creator>
				<category><![CDATA[Social Insight]]></category>
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		<category><![CDATA[Latin America]]></category>
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		<description><![CDATA[Noam Chomsky speaks about the future and predicts difficult situations for China and India. On the other hand he analyzes the appearance of progressiveness in Latin America as very important. For the first time in 500 years, LA is moving towards a degree of independence and a kind of integration and also is beginning to [...]]]></description>
			<content:encoded><![CDATA[<p>Noam Chomsky speaks about the future and predicts difficult situations for China and India. On the other hand he analyzes the appearance of progressiveness in Latin America as very important. For the first time in 500 years, LA is moving towards a degree of independence and a kind of integration and also is beginning to face some of its massive internal problems.</p>
<p>The following lines are excerpts from Democracy Now´s interview made by Amy Goodman.</p>
<p><strong>AMY GOODMAN:</strong> Where do you see American empire in ten, twenty, thirty years?</p>
<p><strong>NOAM CHOMSKY:</strong> Prediction in human affairs is very low—has very little success, too many complications. The United States, I think, will come out of the economic crisis, very likely, as the dominant superpower. There&#8217;s a lot of talk about China and India, and it&#8217;s real, they&#8217;re changing, but they&#8217;re just not in the same league. I mean, both China and India have enormous internal problems that the West doesn&#8217;t face.</p>
<p>You get kind of a picture of this by looking at the Human Development Index of the United Nations. The last time I looked, India was about 125th or something. And I think China was about eightieth. And China would be worse, I think, if it wasn&#8217;t such a closed society. In India, you sort of get better data, so you can see what&#8217;s happening. China is kind of closed. You don&#8217;t see what&#8217;s going on in the peasant areas, which are in turmoil, you know. They have environmental problems. They have huge—hundreds of millions of people are kind of like at the edge of starvation.</p>
<p>We don&#8217;t have—you know, we have problems, but not those problems. And even the industrial growth, which is there—you know, for part of the population, there&#8217;s been improvement. But when you take, say, India, where we know more, in the areas where high-tech industries developed—and it&#8217;s pretty impressive. I&#8217;ve visited some of the labs in Hyderabad. You know, it&#8217;s as good or better than MIT. But right nearby, the rate of peasant suicides is going up, very sharply, in fact. And it&#8217;s the same source. It&#8217;s the neoliberal policies, which privilege a certain sector of the population and a certain—and let the rest take care of themselves.</p>
<p><strong>AMY GOODMAN</strong>: And yet, the rise of progressives in Latin America?</p>
<p><strong>NOAM CHOMSKY:</strong> That&#8217;s important. I mean, Latin America, for the first time in 500 years, is moving towards a degree of independence and a kind of integration, which is a prerequisite for independence, and also at least is beginning to face some of its massive internal problems. I mean, Latin America has probably the worst inequality in the world. There&#8217;s a wealthy sector, small wealthy sector, which is extremely rich, but they have—their tradition is that they have no responsibility to the country, so they send their capital to Zurich. You know, they have their second homes in the Riviera, and their children study in Oxford or whatever. This is beginning to be faced in different ways, but it&#8217;s sort of happening all over the continent. And they are beginning to integrate. The United States obviously doesn&#8217;t like it. In fact, it&#8217;s barely reported most of the time.</p>
<p>So there was a very interesting case last September, when President Morales in Bolivia—Bolivia is, in my opinion at least, probably the most democratic country in the world. Nobody says that, but if you look at what happened in the last couple of years, there were huge, popular, mass organizations of the most repressed population in the hemisphere, the indigenous population, which for the first time ever has entered the political arena significantly and were able to elect a president from their own ranks and one who doesn&#8217;t give instructions to his army, but who&#8217;s following policies that were largely produced by the population. So he&#8217;s their representative, in a sense in which democracy is supposed to work.</p>
<p>And they know the issues. It&#8217;s not like our elections. They know the issues. They&#8217;re serious issues: control over resources, economic justice, cultural rights, and so on. You can say they&#8217;re right or wrong, but at least it&#8217;s functioning.</p>
<p>Now, the elites that have traditionally ruled the country, of course, don&#8217;t like it. And they&#8217;re threatening virtual secession. And, of course, the United States is backing them, as the media are. And it got to the point last summer, I suppose, where it led to real violence.</p>
<p>Well, there was a meeting of UNASUR, the Union of South American Republics—that&#8217;s all of South America—a meeting in Chile, Santiago, Chile. And it came out with a declaration, important declaration, in which it supported President Morales and opposed the—condemned the violence being led by the quasi-secessionist forces. And Morales responded, thanking them for their gesture of support, but also saying, correctly, that this is the first time in 500 years that South America is beginning to take its affairs in its own hands without the intervention of foreign powers, primarily the US. Well, that was so important that I don&#8217;t think it was even reported here. I mean, the meeting was known, so you see vague references to it. But it&#8217;s an indication of developments that are taking place in various ways.</p>
<p><a href="http://www.zcommunications.org/znet/viewArticle/21162">See Full interview</a>.</p>
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