<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:wfw="http://wellformedweb.org/CommentAPI/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
	xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
	>

<channel>
	<title>Brainwaving &#187; social commentary</title>
	<atom:link href="http://www.brainwaving.com/tag/social-commentary/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.brainwaving.com</link>
	<description></description>
	<lastBuildDate>Mon, 04 Jul 2011 18:37:28 +0000</lastBuildDate>
	<language>en</language>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
	<generator>http://wordpress.org/?v=3.0.1</generator>
		<item>
		<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>
		<comments>http://www.brainwaving.com/2011/04/11/how-a-big-us-bank-laundered-billions-from-mexicos-murderous-drug-gangs/#comments</comments>
		<pubDate>Mon, 11 Apr 2011 22:49:24 +0000</pubDate>
		<dc:creator>Brainwaving Admin</dc:creator>
				<category><![CDATA[Social Insight]]></category>
		<category><![CDATA[banks]]></category>
		<category><![CDATA[brainwave]]></category>
		<category><![CDATA[Crime]]></category>
		<category><![CDATA[Drug Policy]]></category>
		<category><![CDATA[drugs]]></category>
		<category><![CDATA[future]]></category>
		<category><![CDATA[Latin America]]></category>
		<category><![CDATA[money laundering]]></category>
		<category><![CDATA[politics]]></category>
		<category><![CDATA[prohibition]]></category>
		<category><![CDATA[social commentary]]></category>
		<category><![CDATA[The Guardian]]></category>

		<guid isPermaLink="false">http://www.brainwaving.com/?p=1538</guid>
		<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>
<div id="article-wrapper">
<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>
</div>
<div id="article-body-blocks">
<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>
</div>
</div>
]]></content:encoded>
			<wfw:commentRss>http://www.brainwaving.com/2011/04/11/how-a-big-us-bank-laundered-billions-from-mexicos-murderous-drug-gangs/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Time for Change</title>
		<link>http://www.brainwaving.com/2011/04/11/time-for-change/</link>
		<comments>http://www.brainwaving.com/2011/04/11/time-for-change/#comments</comments>
		<pubDate>Mon, 11 Apr 2011 22:37:01 +0000</pubDate>
		<dc:creator>Amanda Feilding</dc:creator>
				<category><![CDATA[Drug Policy]]></category>
		<category><![CDATA[Altered States]]></category>
		<category><![CDATA[Amanda Feilding]]></category>
		<category><![CDATA[Beckley Foundation]]></category>
		<category><![CDATA[brainwave]]></category>
		<category><![CDATA[cocaine]]></category>
		<category><![CDATA[Consciousness]]></category>
		<category><![CDATA[drugs]]></category>
		<category><![CDATA[Evolution]]></category>
		<category><![CDATA[futorology]]></category>
		<category><![CDATA[Global Cannabis Commission]]></category>
		<category><![CDATA[politics]]></category>
		<category><![CDATA[prohibition]]></category>
		<category><![CDATA[social commentary]]></category>

		<guid isPermaLink="false">http://www.brainwaving.com/?p=1532</guid>
		<description><![CDATA[In 1998 the UN declared: &#8220;a drug-free world, we can do it!&#8221; In reality, we cannot. The War on Drugs has failed. According to all available indices, it is no longer defendable. Vast expenditure on drug law enforcement has resulted in increasing levels of overall drug-use and lowered drug prices. 2011 is the 50th anniversary [...]]]></description>
			<content:encoded><![CDATA[<p>In 1998 the UN declared: &#8220;a drug-free world, we can do it!&#8221; In reality, we cannot.</p>
<p>The War on Drugs has failed. According to all available indices, it is no longer defendable. Vast expenditure on drug law enforcement has resulted in increasing levels of overall drug-use and lowered drug prices. 2011 is the 50th anniversary of the 1961 UN Convention, which lies at the root of the criminalizing approach to drug control. Now is the perfect time to re-evaluate our approach.</p>
<p>Of all regions in the world, Latin America has perhaps been the most affected by the unintended consequences of global prohibition. Huge criminal markets have at times turned countries such as Colombia, Guatemala and Mexico into nigh-on war zones. Drug enforcement and eradication in one Andean country has displaced production into neighboring countries and back in turn, in an ongoing cycle. The criminalization of drug control has seen the numbers of those incarcerated for drug offenses (even the possession of minor amounts for personal consumption) rise to levels that overwhelm judicial systems. Currently there are over 10 million people in prison worldwide.</p>
<p>However, Latin America, as the region that has suffered the most, is now leading the way to an open and frank discussion of drugs. Recent declarations from certain politicians show a much greater understanding of the problems than those coming from some of their Western counterparts. In Peru, former President and current presidential candidate Alejandro Toledo declared himself open to full decriminalization. Whilst he nuanced his argument a few days later, the declaration itself shows that Latin American governments are becoming increasingly progressive in their nature. The Latin American Commission on Drugs and Democracy, led by former presidents of Brazil, Colombia and Mexico, has declared its outright opposition to a &#8220;misguided and counter-productive war.&#8221;</p>
<p>The most significant declaration of all, however, may well be that of current Colombian President Juan Manuel Santos. Santos is head of a country traditionally felt to be one of the US&#8217; major allies in the War on Drugs. However, President Santos has declared himself open to a discussion on alternative approaches that may reduce both the risks and harms associated with illegal drugs. A recipient of major US aid, Colombia cannot turn away directly from Plan Colombia, but Santos&#8217; comments show that Colombian drug policy may be slowly turning against the whirlpool of US foreign policy.</p>
<p>A fellow Andean country, Bolivia, has recently seen more and more countries support its proposals to reform the international prohibition of chewing the coca leaf. Flexibility and cultural sensitivity are vital within approaches to drug conventions. Drug control regimes should be respectful of human rights and take account of different cultural norms in societies around the world. There must be the freedom for individual countries to work out what is best for them. The one-fit-all model has shown itself to be highly destructive.</p>
<p>Various countries such as Portugal have shown how successful a change in policy can be. They have demonstrated that the decriminalization of use and a commitment to provide health and rehabilitation programs as alternatives to incarceration, together with a sustained educational program, can diminish the harms associated with drug-use. Both Hungary and the Czech Republic criminalized use in 1999. However, studies showed that this policy had been a disaster and brought more social costs than benefits. Consequently, both countries reversed this policy (in 2003 and 2010 respectively). We cannot let such lessons go unheeded. We must learn from these examples.</p>
<p>It is time for a new approach. The 1961 UN Single Convention on Narcotic Drugs, with its zero-tolerance approach, was written in a very different context to today, both socially and politically. A rewriting of the UN Convention would enable us to move forward from the present impasse. Individual countries should have more freedom to be able to decriminalize the personal use of drugs and, should the country so wish, to legally regulate certain substances, such as cannabis, thereby being able to control and label their content, and tax them. This would have the advantage of saving vast sums on the continuation of the coercive approach, as well as raising substantial tax to implement an educational and treatment approach to drug-use. It would also solve the problem of hundreds of billions of dollars going into the hands of criminals each year.</p>
<p>The Beckley Foundation Global Initiative for Drug Policy Reform 2011-2012 is proposing such a model.</p>
<p>2011 is the 50th anniversary of the 1961 UN Convention, the 40th anniversary of the UK Misuse of Drugs Act and the 10th anniversary of the Portuguese drug decriminalisation. There has never been a more appropriate time for change.</p>
]]></content:encoded>
			<wfw:commentRss>http://www.brainwaving.com/2011/04/11/time-for-change/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Do You Want to Live Forever?</title>
		<link>http://www.brainwaving.com/2011/03/29/do-you-want-to-live-forever/</link>
		<comments>http://www.brainwaving.com/2011/03/29/do-you-want-to-live-forever/#comments</comments>
		<pubDate>Tue, 29 Mar 2011 08:43:45 +0000</pubDate>
		<dc:creator>Brainwaving Admin</dc:creator>
				<category><![CDATA[Big Ideas]]></category>
		<category><![CDATA[brain science]]></category>
		<category><![CDATA[brainwave]]></category>
		<category><![CDATA[cognitive enhancement]]></category>
		<category><![CDATA[drugs]]></category>
		<category><![CDATA[Evolution]]></category>
		<category><![CDATA[futorology]]></category>
		<category><![CDATA[nature]]></category>
		<category><![CDATA[Science]]></category>
		<category><![CDATA[social commentary]]></category>
		<category><![CDATA[Spirituality]]></category>

		<guid isPermaLink="false">http://www.brainwaving.com/?p=1528</guid>
		<description><![CDATA[This show is all about the radical ideas of a Cambridge biomedical gerontologist called Aubrey de Grey who believes that, within the next 20-30 years, we could extend life indefinitely by addressing seven major factors in the aging process. He describes his work as Strategies for Engineered Negligible Senescence (SENS).]]></description>
			<content:encoded><![CDATA[<p>This show is all about the radical ideas of a Cambridge biomedical gerontologist called Aubrey de Grey who believes that, within the next 20-30 years, we could extend life indefinitely by addressing seven major factors in the aging process. He describes his work as Strategies for Engineered Negligible Senescence (SENS).</p>
<p><object id="VideoPlayback" style="width: 400px; height: 326px;" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="100" height="100" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="src" value="http://video.google.com/googleplayer.swf?docid=-3329065877451441972&amp;hl=en&amp;fs=true" /><param name="allowfullscreen" value="true" /><embed id="VideoPlayback" style="width: 400px; height: 326px;" type="application/x-shockwave-flash" width="100" height="100" src="http://video.google.com/googleplayer.swf?docid=-3329065877451441972&amp;hl=en&amp;fs=true" allowfullscreen="true"></embed></object></p>
]]></content:encoded>
			<wfw:commentRss>http://www.brainwaving.com/2011/03/29/do-you-want-to-live-forever/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<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>
<div id="articleInline">
<div id="inlineBox">
<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>
</div>
</div>
</div>
<p><a name="secondParagraph"></a></p>
<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>
<p><a name="secondParagraph"></a></p>
<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>
<p><a name="secondParagraph"></a></p>
<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>
<p><a name="secondParagraph"></a></p>
<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>
<p><a name="secondParagraph"></a></p>
<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>
<p><a name="secondParagraph"></a></p>
<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>
<p><a name="secondParagraph"></a></p>
<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>
]]></content:encoded>
			<wfw:commentRss>http://www.brainwaving.com/2011/03/28/gold-farming-virtual-slavery/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<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>
		<comments>http://www.brainwaving.com/2011/02/14/hackerville-how-a-remote-town-in-romania-has-become-cybercrime-central/#comments</comments>
		<pubDate>Mon, 14 Feb 2011 09:53:06 +0000</pubDate>
		<dc:creator>Brainwaving Admin</dc:creator>
				<category><![CDATA[Social Insight]]></category>
		<category><![CDATA[Computers]]></category>
		<category><![CDATA[Crime]]></category>
		<category><![CDATA[futorology]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[internet]]></category>
		<category><![CDATA[politics]]></category>
		<category><![CDATA[prohibition]]></category>
		<category><![CDATA[Science]]></category>
		<category><![CDATA[social commentary]]></category>
		<category><![CDATA[technology]]></category>
		<category><![CDATA[Wired Magazine]]></category>

		<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>
]]></content:encoded>
			<wfw:commentRss>http://www.brainwaving.com/2011/02/14/hackerville-how-a-remote-town-in-romania-has-become-cybercrime-central/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>The neurons that shaped civilization</title>
		<link>http://www.brainwaving.com/2011/02/14/the-neurons-that-shaped-civilization/</link>
		<comments>http://www.brainwaving.com/2011/02/14/the-neurons-that-shaped-civilization/#comments</comments>
		<pubDate>Mon, 14 Feb 2011 09:44:56 +0000</pubDate>
		<dc:creator>Brainwaving Admin</dc:creator>
				<category><![CDATA[Science of the Mind]]></category>
		<category><![CDATA[Altered States]]></category>
		<category><![CDATA[Beckley Foundation]]></category>
		<category><![CDATA[brainwave]]></category>
		<category><![CDATA[cognitive enhancement]]></category>
		<category><![CDATA[Consciousness]]></category>
		<category><![CDATA[emotion]]></category>
		<category><![CDATA[Evolution]]></category>
		<category><![CDATA[nature]]></category>
		<category><![CDATA[neural activity]]></category>
		<category><![CDATA[Science]]></category>
		<category><![CDATA[social commentary]]></category>

		<guid isPermaLink="false">http://www.brainwaving.com/?p=1512</guid>
		<description><![CDATA[Neuroscientist Vilayanur Ramachandran outlines the fascinating functions of mirror neurons. Only recently discovered, these neurons allow us to learn complex social behaviors, some of which formed the foundations of human civilization as we know it.]]></description>
			<content:encoded><![CDATA[<p>Neuroscientist Vilayanur Ramachandran outlines the fascinating functions  of mirror neurons. Only recently discovered, these neurons allow us to  learn complex social behaviors, some of which formed the foundations of  human civilization as we know it.</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="446" height="326" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowScriptAccess" value="always" /><param name="wmode" value="transparent" /><param name="bgColor" value="#ffffff" /><param name="flashvars" value="vu=http://video.ted.com/talks/dynamic/VilayanurRamachandran_2009I-medium.flv&amp;su=http://images.ted.com/images/ted/tedindex/embed-posters/VilayanurRamachandran-2009I.embed_thumbnail.jpg&amp;vw=432&amp;vh=240&amp;ap=0&amp;ti=724&amp;introDuration=15330&amp;adDuration=4000&amp;postAdDuration=830&amp;adKeys=talk=vs_ramachandran_the_neurons_that_shaped_civilization;year=2009;theme=unconventional_explanations;theme=a_taste_of_tedindia;theme=evolution_s_genius;theme=how_we_learn;theme=how_the_mind_works;event=TEDIndia+2009;&amp;preAdTag=tconf.ted/embed;tile=1;sz=512x288;" /><param name="src" value="http://video.ted.com/assets/player/swf/EmbedPlayer.swf" /><param name="bgcolor" value="#ffffff" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="446" height="326" src="http://video.ted.com/assets/player/swf/EmbedPlayer.swf" flashvars="vu=http://video.ted.com/talks/dynamic/VilayanurRamachandran_2009I-medium.flv&amp;su=http://images.ted.com/images/ted/tedindex/embed-posters/VilayanurRamachandran-2009I.embed_thumbnail.jpg&amp;vw=432&amp;vh=240&amp;ap=0&amp;ti=724&amp;introDuration=15330&amp;adDuration=4000&amp;postAdDuration=830&amp;adKeys=talk=vs_ramachandran_the_neurons_that_shaped_civilization;year=2009;theme=unconventional_explanations;theme=a_taste_of_tedindia;theme=evolution_s_genius;theme=how_we_learn;theme=how_the_mind_works;event=TEDIndia+2009;&amp;preAdTag=tconf.ted/embed;tile=1;sz=512x288;" bgcolor="#ffffff" wmode="transparent" allowscriptaccess="always" allowfullscreen="true"></embed></object></p>
]]></content:encoded>
			<wfw:commentRss>http://www.brainwaving.com/2011/02/14/the-neurons-that-shaped-civilization/feed/</wfw:commentRss>
		<slash:comments>2</slash:comments>
		</item>
		<item>
		<title>Inside the Battle to Define Mental Illness</title>
		<link>http://www.brainwaving.com/2011/01/31/inside-the-battle-to-define-mental-illness/</link>
		<comments>http://www.brainwaving.com/2011/01/31/inside-the-battle-to-define-mental-illness/#comments</comments>
		<pubDate>Mon, 31 Jan 2011 10:51:55 +0000</pubDate>
		<dc:creator>Brainwaving Admin</dc:creator>
				<category><![CDATA[Science of the Mind]]></category>
		<category><![CDATA[Altered States]]></category>
		<category><![CDATA[brain science]]></category>
		<category><![CDATA[brainwave]]></category>
		<category><![CDATA[cognitive enhancement]]></category>
		<category><![CDATA[Consciousness]]></category>
		<category><![CDATA[drugs]]></category>
		<category><![CDATA[emotion]]></category>
		<category><![CDATA[future]]></category>
		<category><![CDATA[neural activity]]></category>
		<category><![CDATA[perception]]></category>
		<category><![CDATA[politics]]></category>
		<category><![CDATA[Science]]></category>
		<category><![CDATA[social commentary]]></category>
		<category><![CDATA[Wired Magazine]]></category>

		<guid isPermaLink="false">http://www.brainwaving.com/?p=1505</guid>
		<description><![CDATA[Every so often Al Frances says something that seems to surprise even him. Just now, for instance, in the predawn darkness of his comfortable, rambling home in Carmel, California, he has broken off his exercise routine to declare that “there is no definition of a mental disorder. It’s bullshit. I mean, you just can’t define [...]]]></description>
			<content:encoded><![CDATA[<p><strong>Every so often</strong> Al Frances says something that seems to surprise even him. Just now, for instance, in the predawn darkness of his comfortable, rambling home in Carmel, California, he has broken off his exercise routine to declare that “there is no definition of a mental disorder. It’s bullshit. I mean, you just can’t define it.” Then an odd, reflective look crosses his face, as if he’s taking in the strangeness of this scene: <a href="http://www.psychiatrictimes.com/dsm-5/content/article/10168/1425378">Allen Frances</a>, lead editor of the fourth edition of the American Psychiatric Association’s<em>Diagnostic and Statistical Manual of Mental Disorders</em> (universally known as the <a href="http://allpsych.com/disorders/dsm.html"><em>DSM</em>-IV</a>), the guy who wrote the book on mental illness, confessing that “these concepts are virtually impossible to define precisely with bright lines at the boundaries.” For the first time in two days, the conversation comes to an awkward halt.</p>
<p>From <a href="http://www.wired.com/" target="_blank">Wired Magazine</a> by Gary Greenburg</p>
<p>But he recovers quickly, and back in the living room he finishes explaining why he came out of a seemingly contented retirement to launch a bitter and protracted battle with the people, some of them friends, who are creating the next edition of the <cite>DSM</cite>. And to criticize them not just once, and not in professional mumbo jumbo that would keep the fight inside the professional family, but repeatedly and in plain English, in newspapers and magazines and blogs. And to accuse his colleagues not just of bad science but of bad faith, hubris, and blindness, of making diseases out of everyday suffering and, as a result, padding the bottom lines of drug companies. These aren’t new accusations to level at psychiatry, but Frances used to be their target, not their source. He’s hurling grenades into the bunker where he spent his entire career.</p>
<p>As a practicing psychotherapist myself, I can attest that this is a startling turn. But when Frances tries to explain it, he resists the kinds of reasons that mental health professionals usually give each other, the ones about character traits or personality quirks formed in childhood. He says he doesn’t want to give ammunition to his enemies, who have already shown their willingness to “shoot the messenger.” It’s not an unfounded concern. In its first official response to Frances, the <a href="http://www.psych.org/">APA</a> diagnosed him with “pride of authorship” and pointed out that his royalty payments would end once the new edition was published—a fact that “should be considered when evaluating his critique and its timing.”</p>
<p>Frances, who claims he doesn’t care about the royalties (which amount, he says, to just 10 grand a year), also claims not to mind if the APA cites his faults. He just wishes they’d go after the right ones—the serious errors in the <cite>DSM</cite>-IV. “We made mistakes that had terrible consequences,” he says. Diagnoses of <a href="https://health.google.com/health/ref/Autism">autism</a>, attention-deficit hyperactivity disorder, and bipolar disorder skyrocketed, and Frances thinks his manual inadvertently facilitated these epidemics—and, in the bargain, fostered an increasing tendency to chalk up life’s difficulties to mental illness and then treat them with psychiatric drugs.</p>
<p>The insurgency against the <cite>DSM</cite>-5 (the APA has decided to shed the Roman numerals) has now spread far beyond just Allen Frances. Psychiatrists at the top of their specialties, clinicians at prominent hospitals, and even some contributors to the new edition have expressed deep reservations about it. Dissidents complain that the revision process is in disarray and that the preliminary results, made public for the first time in February 2010, are filled with potential clinical and public relations nightmares. Although most of the dissenters are squeamish about making their concerns public—especially because of a surprisingly restrictive nondisclosure agreement that all insiders were required to sign—they are becoming increasingly restive, and some are beginning to agree with Frances that public pressure may be the only way to derail a train that he fears will “take psychiatry off a cliff.”</p>
<p>At stake in the fight between Frances and the APA is more than professional turf, more than careers and reputations, more than the $6.5 million in sales that the <cite>DSM</cite> averages each year. The book is the basis of psychiatrists’ authority to pronounce upon our mental health, to command health care dollars from insurance companies for treatment and from government agencies for research. It is as important to psychiatrists as the Constitution is to the US government or the Bible is to Christians. Outside the profession, too, the <cite>DSM</cite> rules, serving as the authoritative text for psychologists, social workers, and other mental health workers; it is invoked by lawyers in arguing over the culpability of criminal defendants and by parents seeking school services for their children. If, as Frances warns, the new volume is an “absolute disaster,” it could cause a seismic shift in the way mental health care is practiced in this country. It could cause the APA to lose its franchise on our psychic suffering, the naming rights to our pain.</p>
<div><img title="DSM-5 Sparks Psychiatric Revolt" src="http://www.wired.com/magazine/wp-content/images/19-01/ff_dsmv2_f.jpg" alt="Photo: Garry Mcleod; Origami: Robert Lang" width="660" height="527" />Allen Frances is worried that the <cite>DSM</cite>-5 will &#8220;take psychiatry off a cliff.&#8221;<br />
Photo: Susanna Howe; photographed at Café Sabarsky, Neue Galerie, NYC</p>
</div>
<p><strong>This is hardly</strong> the first time that defining mental illness has led to rancor within the profession. It happened in 1993, when feminists denounced Frances for considering the inclusion of “late luteal phase dysphoric disorder” (formerly known as premenstrual syndrome) as a possible diagnosis for <cite>DSM</cite>-IV. It happened in 1980, when psychoanalysts objected to the removal of the word <a href="http://en.wikipedia.org/wiki/Neurosis">neurosis</a>—their bread and butter—from the <a href="http://www.psych.org/MainMenu/Research/DSMIV/History_1/DSMIIIRandDSMIV.aspx"><cite>DSM</cite>-III</a>. It happened in 1973, when gay psychiatrists, after years of loud protest, finally forced a reluctant APA to acknowledge that homosexuality was not and never had been an illness. Indeed, it’s been happening since at least 1922, when two prominent psychiatrists warned that a planned change to the nomenclature would be tantamount to declaring that “the whole world is, or has been, insane.”</p>
<p>Some of this disputatiousness is the hazard of any professional specialty. But when psychiatrists say, as they have during each of these fights, that the success or failure of their efforts could sink the whole profession, they aren’t just scoring rhetorical points. The authority of any doctor depends on their ability to name a patient’s suffering. For patients to accept a diagnosis, they must believe that doctors know—in the same way that physicists know about gravity or biologists about mitosis—that their disease exists and that they have it. But this kind of certainty has eluded psychiatry, and every fight over nomenclature threatens to undermine the legitimacy of the profession by revealing its dirty secret: that for all their confident pronouncements, psychiatrists can’t rigorously differentiate illness from everyday suffering. This is why, as one psychiatrist wrote after the APA voted homosexuality out of the <cite>DSM</cite>, “there is a terrible sense of shame among psychiatrists, always wanting to show that our diagnoses are as good as the scientific ones used in real medicine.”</p>
<p>Since 1980, when the <cite>DSM</cite>-III was published, psychiatrists have tried to solve this problem by using what is called descriptive diagnosis: a checklist approach, whereby illnesses are defined wholly by the symptoms patients present. The main virtue of descriptive psychiatry is that it doesn’t rely on unprovable notions about the nature and causes of mental illness, as the <a href="http://psychology.about.com/od/sigmundfreud/p/sigmund_freud.htm">Freudian theories</a> behind all those “neuroses” had done. Two doctors who observe a patient carefully and consult the <cite>DSM</cite>’s criteria lists usually won’t disagree on the diagnosis—something that was embarrassingly common before 1980. But descriptive psychiatry also has a major problem: Its diagnoses are nothing more than groupings of symptoms. If, during a two-week period, you have five of the nine symptoms of <a href="https://health.google.com/health/ref/Major+depression">depression</a> listed in the <cite>DSM</cite>, then you have “major depression,” no matter your circumstances or your own perception of your troubles. “No one should be proud that we have a descriptive system,” Frances tells me. “The fact that we do only reveals our limitations.” Instead of curing the profession’s own malady, descriptive psychiatry has just covered it up.</p>
<p>The <cite>DSM</cite>-5 battle comes at a time when psychiatry’s authority seems more tenuous than ever. In terms of both research dollars and public attention, molecular biology—neuroscience and genetics—has come to dominate inquiries into what makes us tick. And indeed, a few tantalizing results from these disciplines have cast serious doubt on long-held psychiatric ideas. Take schizophrenia and bipolar disorder: For more than a century, those two illnesses have occupied separate branches of the psychiatric taxonomy. But research suggests that the same genetic factors predispose people to both illnesses, a discovery that casts doubt on whether this fundamental division exists in nature or only in the minds of psychiatrists. Other results suggest new diagnostic criteria for diseases: Depressed patients, for example, tend to have cell loss in the hippocampal regions, areas normally rich in serotonin. Certain mental illnesses are alleviated by brain therapies, such as transcranial magnetic stimulation, even as the reasons why are not entirely understood.</p>
<p>Some mental health researchers are convinced that the <cite>DSM</cite> might soon be completely revolutionized or even rendered obsolete. In recent years, the National Institute of Mental Health has launched an effort to transform psychiatry into what its director, Thomas Insel, calls clinical neuroscience. This project will focus on observable ways that brain circuitry affects the functional aspects of mental illness—symptoms, such as anger or anxiety or disordered thinking, that figure in our current diagnoses. The institute says it’s “agnostic” on the subject of whether, or how, this process would create new definitions of illnesses, but it seems poised to abandon the reigning <cite>DSM</cite> approach. “Our resources are more likely to be invested in a program to transform diagnosis by 2020,” Insel says, “rather than modifying the current paradigm.”</p>
<p>Although the APA doesn’t disagree that a revolution might be on the horizon, the organization doesn’t feel it can wait until 2020, or beyond, to revise the <cite>DSM</cite>-IV. Its categories line up poorly with the ways people actually suffer, leading to high rates of patients with multiple diagnoses. Neither does the manual help therapists draw on a body of knowledge, developed largely since <cite>DSM</cite>-IV, about how to match treatments to patients based on the specific features of their disorder. The profession cannot afford to wait for the science to catch up to its needs. Which means that the stakes are higher, the current crisis deeper, and the potential damage to psychiatry greater than ever before.</p>
<p><a href="http://www.brainwaving.com/wp-content/uploads/2011/01/Psychiatry-Table.png"><img class="aligncenter size-full wp-image-1506" title="Psychiatry Table" src="http://www.brainwaving.com/wp-content/uploads/2011/01/Psychiatry-Table.png" alt="" width="534" height="477" /></a></p>
<p><strong>Allen Frances’ revolt</strong> against the <cite>DSM</cite>-5 was spurred by another unlikely revolutionary: <a href="http://en.wikipedia.org/wiki/Robert_Spitzer_%28psychiatrist%29">Robert Spitzer</a>, lead editor of the <cite>DSM</cite>-III and a man believed by many to have saved the profession by spearheading the shift to descriptive psychiatry. As the <cite>DSM</cite>-5 task force began its work, Spitzer was “dumbfounded” when <a href="http://www.psych.org/MainMenu/Research/DSMIV/DSMV/MeettheTaskForce/DarrelARegierMDMPH.aspx">Darrel Regier</a>, the APA’s director of research and vice chair of the task force, refused his request to see the minutes of its meetings. Soon thereafter, he was appalled, he says, to discover that the APA had required psychiatrists involved with the revision to sign a paper promising they would never talk about what they were doing, except when necessary for their jobs. “The intent seemed to be not to let anyone know what the hell was going on,” Spitzer says.</p>
<p>In July 2008, Spitzer wrote a letter to <em>Psychiatric News</em>, an APA newsletter, complaining that the secrecy was at odds with scientific process, which “benefits from the very exchange of information that is prohibited by the confidentiality agreement.” He asked Frances to sign onto his letter, but Frances declined; a decade into his retirement from Duke University Medical School, he had mostly stayed on the sidelines since planning for the <cite>DSM</cite>-5 began in 1999, and he intended to keep it that way. “I told him I completely agreed that this was a disastrous way for <cite>DSM</cite>-5 to start, but I didn’t want to get involved at all. I wished him luck and went back to the beach.”</p>
<p>But that was before Frances found out about a new illness proposed for the <cite>DSM</cite>-5. In May 2009, during a party at the APA’s annual convention in San Francisco, he struck up a conversation with Will Carpenter, a psychiatrist at the University of Maryland. Carpenter is chair of the Psychotic Disorders work group, one of 13 <cite>DSM</cite>-5 panels that have been holding meetings since 2008 to consider revisions. These panels, each comprising 10 or so psychiatrists and other mental health professionals, report to the supervising task force, which consists of the work-group chairs and a dozen other experts. The task force will turn the work groups’ proposals into a rough draft to be field-tested, revised, and then ratified—first by the APA’s trustees and then by its 39,000 members.</p>
<p>At the party, Frances and Carpenter began to talk about “<a href="http://www.dsm5.org/ProposedRevisions/Pages/proposedrevision.aspx?rid=412">psychosis risk syndrome</a>,” a diagnosis that Carpenter’s group was considering for the new edition. It would apply mostly to adolescents who occasionally have jumbled thoughts, hear voices, or experience delusions. Since these kids never fully lose contact with reality, they don’t qualify for any of the existing psychotic disorders. But “throughout medicine, there’s a presumption that early identification and intervention is better than late,” Carpenter says, citing the monitoring of cholesterol as an example. If adolescents on the brink of psychosis can be treated before a full-blown psychosis develops, he adds, “it could make a huge difference in their life story.”</p>
<p>This new disease reminded Frances of one of his keenest regrets about the <cite>DSM</cite>-IV: its role, as he perceives it, in the epidemic of bipolar diagnoses in children over the past decade. Shortly after the book came out, doctors began to declare children bipolar even if they had never had a manic episode and were too young to have shown the pattern of mood change associated with the disease. Within a dozen years, bipolar diagnoses among children had increased 40-fold. Many of these kids were put on antipsychotic drugs, whose effects on the developing brain are poorly understood but which are known to cause obesity and diabetes. In 2007, a series of investigative reports revealed that an influential advocate for diagnosing bipolar disorder in kids, the Harvard psychiatrist Joseph Biederman, failed to disclose money he’d received from Johnson &amp; Johnson, makers of the bipolar drug <a href="http://www.ncbi.nlm.nih.gov/pubmedhealth/PMH0000944">Risperdal</a>, or risperidone. (The <cite>New York Times</cite> reported that Biederman told the company his proposed trial of Risperdal in young children “will support the safety and effectiveness of risperidone in this age group.”) Frances believes this bipolar “fad” would not have occurred had the <cite>DSM</cite>-IV committee not rejected a move to limit the diagnosis to adults.</p>
<p>Frances found psychosis risk syndrome particularly troubling in light of research suggesting that only about a quarter of its sufferers would go on to develop full-blown psychoses. He worried that those numbers would not stop drug companies from seizing on the new diagnosis and sparking a new treatment fad—a danger that Frances thought Carpenter was grievously underestimating. He already regretted having remained silent when, in the 1980s, he watched the pharmaceutical industry insinuate itself into the APA’s training programs. (Annual drug company contributions to those programs reached as much as $3 million before the organization decided, in 2008, to phase out industry-supported education.) Frances didn’t want to be “a crusader for the world,” he says. But the idea of more “kids getting unneeded antipsychotics that would make them gain 12 pounds in 12 weeks hit me in the gut. It was uniquely my job and my duty to protect them. If not me to correct it, who? I was stuck without an excuse to convince myself.”</p>
<p>At the party, he found Bob Spitzer’s wife and asked her to tell her husband (who had been prevented from traveling due to illness) that he was going to join him in protesting the <cite>DSM</cite>-5.</p>
<p>Throughout 2009, Spitzer and Frances carried out their assault. That June, Frances published a broadside on the website of <em><a href="http://www.psychiatrictimes.com/">Psychiatric Times</a></em>, an independent industry newsletter. Among the numerous alarms the piece sounded, Frances warned that the new <cite>DSM</cite>, with its emphasis on early intervention, would cause a “wholesale imperial medicalization of normality” and “a bonanza for the pharmaceutical industry,” for which patients would pay the “high price [of] adverse effects, dollars, and stigma.” Two weeks later, the two men wrote a letter to the APA’s trustees, urging them to consider forming an oversight committee and postponing publication, in order to avoid an “embarrassing <cite>DSM</cite>-5.” Such a committee was convened, and it did recommend a delay, because—as its chair, a former APA president, later put it—”the revision process hadn’t begun to coalesce as much as it should have.” In December 2009, the APA announced a one-year postponement, pushing publication back to 2013. (The organization insists that Frances “did not have an impact” on the rescheduling of the revision.)</p>
<div><img title="DSM 5 Sparks Psychiatric Revolt" src="http://www.wired.com/magazine/wp-content/images/19-01/ff_dsmv3_f.jpg" alt="Illustration: Owen Gildersleeve" width="660" height="590" />Illustration: Owen Gildersleeve</p>
</div>
<p><strong><a href="http://www.webofnarcissism.com/forums/index.php?topic=6585.5;wap2">James Scully</a></strong>, medical director of the APA, fills the big leather chair in his office overlooking the Potomac River and the government buildings beyond. He’s a large, ruddy-faced man with a shock of white hair, and when he leans forward, his monogrammed cuffs perched on his knees, to deliver his assessment of Frances, even though it’s only two words—”he’s wrong”—you can hear his rising gorge and the sense of betrayal that seems to be swelling behind it.</p>
<p>Of all the things that Frances is wrong about—and there are many, Scully says, including his position on psychosis risk syndrome—the confidentiality agreement seems to be the one that really galls. First of all, it’s simply an intellectual property agreement “about who owns the product.” Second, he insists, this is the most open and transparent <cite>DSM</cite> revision ever, certainly more open than the process that produced Spitzer’s and Frances’ manuals, which were written in the pre-Internet era, before it was possible to field, as the task force has, 8,000 online comments on the proposed changes.</p>
<p>The agreement may well be mere intellectual property boilerplate. But, as I explain to Scully and later to APA research chief Darrel Regier, that hasn’t reassured all the psychiatrists who’ve had to sign it. They fret privately that the <cite>DSM</cite>-5 will create “monumental screwups” that will turn the field into a “laughingstock.” They accuse the task force of “not knowing where they’re going” and of “not having managed this right from the very beginning.” They worry that the “slipshod nature of the whole process” will lead to a “crappy product” that alienates clinicians even as it makes psychiatry “look capricious and silly.” None of them, however, are willing to go on record, for fear—unfounded or not—of “retaliation” and “reprisal.”</p>
<p>Regier wants to know who said these things.</p>
<p>Not all the dissidents are insisting on anonymity. E. Jane Costello, codirector of the Center for Developmental Epidemiology at Duke Medical School, says she doesn’t mind going on record because she’s “too small a fish” for them to bother with. Costello was one of two psychiatrists who resigned from the Childhood Disorders work group in spring 2009. In her resignation letter, which she subsequently made public, Costello excoriated the <cite>DSM</cite> committee for refusing to wait for the results of longitudinal studies she was planning and for failing to underwrite adequate research of its own. The proposed revisions, she wrote, “seem to have little basis in new scientific findings or organized clinical or epidemiological studies.” (In a response, the APA cited “several billions of dollars” already spent over the past 40 years on research the revision is drawing upon.)</p>
<p>To critics, the greatest liability of the <cite>DSM</cite>-5 process is precisely this disconnect between its ambition on one hand and the current state of the science on the other. Of particular concern is a proposal to institute “dimensional assessment” as part of all diagnostic evaluations. In this approach, clinicians would use standardized, diagnostic-specific tests to assign a severity rating to each patient’s illness. Regier hopes that these ratings, tallied against data about the course and outcome of illnesses, will eventually lead to psychiatry’s holy grail: “statistically valid cutpoints between normal and pathological.” Able to reliably rate the clinical significance of a disorder, doctors would finally have a scientific way to separate the sick from the merely suffering.</p>
<p>No one, not even Frances, thinks it’s a bad idea to augment the current binary approach to diagnosis, in which you either have the requisite symptoms or you don’t, with a method for quantifying gradations in illness. Dimensional assessment could provide what Frances calls a “governor” on absurdly high rates of diagnosis—by <cite>DSM</cite> criteria, epidemiologists have noted, a staggering 30 percent of Americans are mentally ill in any given year—and thereby solve both a public health problem and a public relations problem.</p>
<p>But <a href="http://asp.cumc.columbia.edu/facdb/profile_list.asp?uni=mbf2&amp;DepAffil=Psychiatry">Michael First</a>, a Columbia University psychiatrist who headed up the <cite>DSM</cite>-5’s <a href="http://lucarinfo.com/czblog/117/">Prelude Project</a> to solicit feedback before the revision, believes that implementing dimensional assessment right now is a tremendous mistake. The tests, he says, are nowhere near ready for use; while some of them have a long track record, “it seems that many of them were made up by the work groups” without any real-world validation. Bad tests could be disastrous not just for the profession, which would erect its diagnostic regime on a shaky foundation, but also for patients: If the tests have been sanctioned in the <cite>DSM</cite>, insurance companies could use them to cut off coverage for patients deemed not sick enough. “If they really want to do dimensional assessment,” First says, “they should wait the five or 10 years it would take for the scales to be ready.”</p>
<p>Regier won’t say how many of the tests are usable yet. “I don’t think it will be useful to get into this level of detail,” he emails. He acknowledges that dimensional assessment is still evolving, and he says the<cite>DSM</cite>-5 field trials—studies in which doctors will test the rough draft of the manual with patients—will help refine the tests. But the field trials, too, are bumping up against formidable deadlines. Although trials were scheduled to begin in May 2010, as of October only a pilot study was actually under way—and protocols for the rest of the trials couldn’t be finalized until that study was completed. Meanwhile, Regier has pegged May 2013 as a drop-dead date for publication of the new manual, which means that two sets of field trials and revisions must be completed by September 2012.</p>
<p>The time crunch only gives critics more fuel. Frances, on hearing of the trials’ delay, BlackBerried out a communiqué about the task force’s “Keystone Kops” missteps—the “<a href="http://www.rubegoldberg.com/">Rube Goldberg design</a>,” the “numerous measures signifying nothing,” the “criteria sets that are unusable because so poorly written.” All of which, he wrote, will lead to “a mad dash to dreck at the end.”</p>
<p><strong>When the rough draft</strong> of the <cite>DSM</cite>-5 was released, in February 2010, the diagnosis that had galvanized Frances—psychosis risk syndrome—wasn’t included. But another new proposed illness had taken its place: “attenuated psychotic symptoms syndrome,” which has essentially the same symptoms but with a name that no longer implies the patient will eventually develop a psychosis. In principle, Carpenter says, that change “eliminates the false-positive problem.” This is not as cynical as it might sound: Carpenter points out that a kid having even occasional hallucinations, especially one distressed enough to land in a psychiatrist’s office, is probably not entirely well, even if he doesn’t end up psychotic. Currently, a doctor confronted with such a patient has to resort to a diagnosis that doesn’t quite fit, often an anxiety or mood disorder.</p>
<p>But attenuated psychotic symptoms syndrome still creates a mental illness where there previously was none, giving drugmakers a new target for their hard sell and doctors, most of whom see it as part of their job to write prescriptions, more reason to medicate. Even Carpenter worries about this. “I wouldn’t bet a lot of money that clinicians will hold off on antipsychotics until there’s evidence of more severe symptoms,” he says. Nonetheless, he adds, “a diagnostic manual shouldn’t be organized to try to adjust to society’s problems.”</p>
<p>His implication is that the rest of medicine, in all its scientific rigor, doesn’t work that way. But in fact, medicine makes adjustments all the time. As obesity has become more of a social problem, for instance, doctors have created a new disease called metabolic syndrome, and they’re still arguing over the checklist of its definition: the blood pressure required for diagnosis, for example, and whether waist circumference should be a criterion. As Darrel Regier points out, diabetes is defined by a blood-glucose threshold, one that has changed over time. Whether physical or mental, a disease is really a statistical construct, a group of symptoms that afflicts a group of people similarly. We may think our doctors are like Gregory House, relentlessly stalking the biochemical culprits of our suffering, but in real medicine they are more like Darrel Regier, trying to discern the patterns in our distress and quantify them.</p>
<p>The fact that diseases can be invented (or, as with homosexuality, uninvented) and their criteria tweaked in response to social conditions is exactly what worries critics like Frances about some of the disorders proposed for the <cite>DSM</cite>-5—not only attenuated psychotic symptoms syndrome but also binge eating disorder, temper dysregulation disorder, and other “sub-threshold” diagnoses. To harness the power of medicine in service of kids with hallucinations, or compulsive overeaters, or 8-year-olds who throw frequent tantrums, is to command attention and resources for suffering that is undeniable. But it is also to increase psychiatry’s intrusion into everyday life, even as it gives us tidy names for our eternally messy problems.</p>
<p>I recently asked a former president of the APA how he used the <cite>DSM</cite> in his daily work. He told me his secretary had just asked him for a diagnosis on a patient he’d been seeing for a couple of months so that she could bill the insurance company. “I hadn’t really formulated it,” he told me. He consulted the<cite>DSM</cite>-IV and concluded that the patient had obsessive-compulsive disorder.</p>
<p>“Did it change the way you treated her?” I asked, noting that he’d worked with her for quite a while without naming what she had.</p>
<p>“No.”</p>
<p>“So what would you say was the value of the diagnosis?”</p>
<p>“I got paid.”</p>
<p><strong>As scientific understanding</strong> of the brain advances, the APA has found itself caught between paradigms, forced to revise a manual that everyone agrees needs to be fixed but with no obvious way forward. Regier says he’s hopeful that “full understanding of the underlying pathophysiology of mental disorders” will someday establish an “absolute threshold between normality and psychopathology.” Realistically, though, a new manual based entirely on neuroscience—with biomarkers for every diagnosis, grave or mild—seems decades away, and perhaps impossible to achieve at all. To account for mental suffering entirely through neuroscience is probably tantamount to explaining the brain <em>in toto,</em>a task to which our scientific tools may never be matched. As Frances points out, a complete elucidation of the complexities of the brain has so far proven to be an “ever-receding target.”</p>
<p>What the battle over <cite>DSM</cite>-5 should make clear to all of us—professional and layman alike—is that psychiatric diagnosis will probably always be laden with uncertainty, that the labels doctors give us for our suffering will forever be at least as much the product of negotiations around a conference table as investigations at a lab bench. Regier and Scully are more than willing to acknowledge this. As Scully puts it, “The <cite>DSM</cite> will always be provisional; that’s the best we can do.” Regier, for his part, says, “The <cite>DSM</cite>is not biblical. It’s not on stone tablets.” The real problem is that insurers, juries, and (yes) patients aren’t ready to accept this fact. Nor are psychiatrists ready to lose the authority they derive from seeming to possess scientific certainty about the diseases they treat. After all, the <cite>DSM</cite> didn’t save the profession, and become a best seller in the bargain, by claiming to be only provisional.</p>
<p>It’s a problem that bothers Frances, and it even makes him wonder about the wisdom of his crusade against the <cite>DSM</cite>-5. Diagnosis, he says, is “part of the magic,” part of the power to heal patients—and to convince them to endure the difficulties of treatment. The sun is up now, and Frances is working on his first Diet Coke of the day. “You know those medieval maps?” he says. “In the places where they didn’t know what was going on, they wrote ‘Dragons live here.’”</p>
<p>He went on: “We have a dragon’s world here. But you wouldn’t want to be without that map.”</p>
<p><em>Gary Greenberg</em> (<a href="http://www.garygreenbergonline.com/">garygreenbergonline.com</a>) <em>is the author of</em> Manufacturing Depression: The Secret History of a Modern Disease.</p>
]]></content:encoded>
			<wfw:commentRss>http://www.brainwaving.com/2011/01/31/inside-the-battle-to-define-mental-illness/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>The AI Revolution Is On</title>
		<link>http://www.brainwaving.com/2011/01/31/the-ai-revolution-is-on/</link>
		<comments>http://www.brainwaving.com/2011/01/31/the-ai-revolution-is-on/#comments</comments>
		<pubDate>Mon, 31 Jan 2011 09:56:01 +0000</pubDate>
		<dc:creator>Brainwaving Admin</dc:creator>
				<category><![CDATA[Science & Technology]]></category>
		<category><![CDATA[AI]]></category>
		<category><![CDATA[brain science]]></category>
		<category><![CDATA[brainwave]]></category>
		<category><![CDATA[cognitive enhancement]]></category>
		<category><![CDATA[Computers]]></category>
		<category><![CDATA[Consciousness]]></category>
		<category><![CDATA[futorology]]></category>
		<category><![CDATA[future]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[internet]]></category>
		<category><![CDATA[neural activity]]></category>
		<category><![CDATA[robotics]]></category>
		<category><![CDATA[Science]]></category>
		<category><![CDATA[social commentary]]></category>
		<category><![CDATA[technology]]></category>
		<category><![CDATA[Wired Magazine]]></category>

		<guid isPermaLink="false">http://www.brainwaving.com/?p=1501</guid>
		<description><![CDATA[Diapers.com warehouses are a bit of a jumble. Boxes of pacifiers sit above crates of onesies, which rest next to cartons of baby food. In a seeming abdication of logic, similar items are placed across the room from one another. A person trying to figure out how the products were shelved could well conclude that [...]]]></description>
			<content:encoded><![CDATA[<p><strong>Diapers.com warehouses</strong> are a bit of a jumble. Boxes of pacifiers sit above crates of onesies, which rest next to cartons of baby food. In a seeming abdication of logic, similar items are placed across the room from one another. A person trying to figure out how the products were shelved could well conclude that no form of intelligence—except maybe a random number generator—had a hand in determining what went where.</p>
<p>From <a href="http://www.wired.com/" target="_blank">Wired Magazin</a>e by <em>Steven Levy</em></p>
<p>But the warehouses aren’t meant to be understood by humans; they were built for bots. Every day, hundreds of robots course nimbly through the aisles, instantly identifying items and delivering them to flesh-and-blood packers on the periphery. Instead of organizing the warehouse as a human might—by placing like products next to one another, for instance—Diapers.com’s robots stick the items in various aisles throughout the facility. Then, to fill an order, the first available robot simply finds the closest requested item. The storeroom is an ever-shifting mass that adjusts to constantly changing data, like the size and popularity of merchandise, the geography of the warehouse, and the location of each robot. Set up by <a href="http://www.kivasystems.com/">Kiva Systems</a>, which has outfitted similar facilities for Gap, Staples, and Office Depot, the system can deliver items to packers at the rate of one every six seconds.</p>
<p>The Kiva bots may not seem very smart. They don’t possess anything like human intelligence and certainly couldn’t pass a Turing test. But they represent a new forefront in the field of artificial intelligence. Today’s AI doesn’t try to re-create the brain. Instead, it uses machine learning, massive data sets, sophisticated sensors, and clever algorithms to master discrete tasks. Examples can be found everywhere: The Google global machine uses AI to interpret cryptic human queries. Credit card companies use it to track fraud. Netflix uses it to recommend movies to subscribers. And the financial system uses it to handle billions of trades (with only the occasional meltdown).</p>
<p>This explosion is the ironic payoff of the seemingly fruitless decades-long quest to emulate human intelligence. That goal proved so elusive that some scientists lost heart and many others lost funding. People talked of an AI winter—a barren season in which no vision or project could take root or grow. But even as the traditional dream of AI was freezing over, a new one was being born: machines built to accomplish specific tasks in ways that people never could. At first, there were just a few green shoots pushing up through the frosty ground. But now we’re in full bloom. Welcome to AI summer.</p>
<p>Today’s AI bears little resemblance to its initial conception. The field’s trailblazers in the 1950s and ’60s believed success lay in mimicking the logic-based reasoning that human brains were thought to use. In 1957, the AI crowd confidently predicted that machines would soon be able to replicate all kinds of human mental achievements. But that turned out to be wildly unachievable, in part because we still don’t really understand how the brain works, much less how to re-create it.</p>
<p>So during the ’80s, graduate students began to focus on the kinds of skills for which computers were well-suited and found they could build something like intelligence from groups of systems that operated according to their own kind of reasoning. “The big surprise is that intelligence isn’t a unitary thing,” says Danny Hillis, who cofounded Thinking Machines, a company that made massively parallel supercomputers. “What we’ve learned is that it’s all kinds of different behaviors.”</p>
<p>AI researchers began to devise a raft of new techniques that were decidedly not modeled on human intelligence. By using probability-based algorithms to derive meaning from huge amounts of data, researchers discovered that they didn’t need to teach a computer how to accomplish a task; they could just show it what people did and let the machine figure out how to emulate that behavior under similar circumstances. They used <a href="http://en.wikipedia.org/wiki/Genetic_algorithm">genetic algorithms</a>, which comb through randomly generated chunks of code, skim the highest-performing ones, and splice them together to spawn new code. As the process is repeated, the evolved programs become amazingly effective, often comparable to the output of the most experienced coders.</p>
<p>MIT’s Rodney Brooks also took a biologically inspired approach to robotics. His lab programmed six-legged buglike creatures by breaking down insect behavior into a series of simple commands—for instance, “If you run into an obstacle, lift your legs higher.” When the programmers got the rules right, the gizmos could figure out for themselves how to navigate even complicated terrain. (It’s no coincidence that iRobot, the company Brooks cofounded with his MIT students, produced the Roomba autonomous vacuum cleaner, which doesn’t initially know the location of all the objects in a room or the best way to traverse it but knows how to keep itself moving.)</p>
<p>The fruits of the AI revolution are now all around us. Once researchers were freed from the burden of building a whole mind, they could construct a rich bestiary of digital fauna, which few would dispute possess something approaching intelligence. “If you told somebody in 1978, ‘You’re going to have this machine, and you’ll be able to type a few words and instantly get all of the world’s knowledge on that topic,’ they would probably consider that to be AI,” Google cofounder Larry Page says. “That seems routine now, but it’s a really big deal.”</p>
<p>Even formerly mechanical processes like driving a car have become collaborations with AI systems. “At first it was the automatic braking system,” Brooks says. “The person’s foot was saying, I want to brake this much, and the intelligent system in the middle figured when to actually apply the brakes to make that work. Now you’re starting to get automatic parking and lane-changing.” Indeed, Google has been developing and testing cars that drive themselves with only minimal human involvement; by October, they had already covered 140,000 miles of pavement.</p>
<p>In short, we are engaged in a permanent dance with machines, locked in an increasingly dependent embrace. And yet, because the bots’ behavior isn’t based on human thought processes, we are often powerless to explain their actions. Wolfram Alpha, the website created by scientist Stephen Wolfram, can solve many mathematical problems. It also seems to display how those answers are derived. But the logical steps that humans see are completely different from the website’s actual calculations. “It doesn’t do any of that reasoning,” Wolfram says. “Those steps are pure fake. We thought, how can we explain this to one of those humans out there?”</p>
<p>The lesson is that our computers sometimes have to humor us, or they will freak us out. Eric Horvitz—now a top Microsoft researcher and a former president of the <a href="http://www.aaai.org/home.html">Association for the Advancement of Artificial Intelligence</a>—helped build an AI system in the 1980s to aid pathologists in their studies, analyzing each result and suggesting the next test to perform. There was just one problem—it provided the answers too quickly. “We found that people trusted it more if we added a delay loop with a flashing light, as though it were huffing and puffing to come up with an answer,” Horvitz says.</p>
<p>But we must learn to adapt. AI is so crucial to some systems—like the financial infrastructure—that getting rid of it would be a lot harder than simply disconnecting HAL 9000’s modules. “In some sense, you can argue that the science fiction scenario is already starting to happen,” Thinking Machines’ Hillis says. “The computers are in control, and we just live in their world.” Wolfram says this conundrum will intensify as AI takes on new tasks, spinning further out of human comprehension. “Do you regulate an underlying algorithm?” he asks. “That’s crazy, because you can’t foresee in most cases what consequences that algorithm will have.”</p>
<p>In its earlier days, artificial intelligence was weighted with controversy and grave doubt, as humanists feared the ramifications of thinking machines. Now the machines are embedded in our lives, and those fears seem irrelevant. “I used to have fights about it,” Brooks says. “I’ve stopped having fights. I’m just trying to win.”</p>
<p><em>Senior writer Steven Levy</em> (<a href="mailto:steven_levy@wired.com">steven_levy@wired.com</a>)</p>
]]></content:encoded>
			<wfw:commentRss>http://www.brainwaving.com/2011/01/31/the-ai-revolution-is-on/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Deers of Perception</title>
		<link>http://www.brainwaving.com/2011/01/28/deers-of-perception/</link>
		<comments>http://www.brainwaving.com/2011/01/28/deers-of-perception/#comments</comments>
		<pubDate>Fri, 28 Jan 2011 13:20:15 +0000</pubDate>
		<dc:creator>Charlotte Walsh</dc:creator>
				<category><![CDATA[Health & Happiness]]></category>
		<category><![CDATA[Altered States]]></category>
		<category><![CDATA[Amanda Feilding]]></category>
		<category><![CDATA[Beckley Foundation]]></category>
		<category><![CDATA[brain science]]></category>
		<category><![CDATA[brainwave]]></category>
		<category><![CDATA[climate change]]></category>
		<category><![CDATA[cognitive enhancement]]></category>
		<category><![CDATA[Consciousness]]></category>
		<category><![CDATA[drugs]]></category>
		<category><![CDATA[Environment]]></category>
		<category><![CDATA[Evolution]]></category>
		<category><![CDATA[nature]]></category>
		<category><![CDATA[perception]]></category>
		<category><![CDATA[religious experience]]></category>
		<category><![CDATA[Science]]></category>
		<category><![CDATA[social commentary]]></category>
		<category><![CDATA[Spirituality]]></category>

		<guid isPermaLink="false">http://www.brainwaving.com/?p=1497</guid>
		<description><![CDATA[These reindeer have been fed a mushroom that makes their urine hallucinogenic. Or have they? Sam Williams visits Carsten Höller&#8217;s new &#8216;scientific experiment&#8217; What could be more festive than spending a night locked in an art gallery with a dozen reindeer and a fridge full of psychedelic drugs?Soma, Carsten Höller&#8216;s current installation in a former railway [...]]]></description>
			<content:encoded><![CDATA[<p>These reindeer have been fed a mushroom that makes their urine hallucinogenic. Or have they? Sam Williams visits Carsten Höller&#8217;s new &#8216;scientific experiment&#8217;</p>
<p>What could be more festive than spending a night locked in an art gallery with a dozen reindeer and a fridge full of psychedelic drugs?<a title="Soma" href="http://www.somainberlin.org/exhibition/concept.html?L=1">Soma</a>, <a title="More from guardian.co.uk on Carsten Höller" href="http://www.guardian.co.uk/artanddesign/carsten-holler">Carsten Höller</a>&#8216;s current installation in a former railway station in Berlin, purports to be offering exactly that. A pen running the length of the <a title="Hamburger Bahnhof" href="http://www.hamburgerbahnhof.de/text.php">Hamburger Bahnhof</a>, now the city&#8217;s contemparary art museum, contains 12 reindeer, 24 canaries, eight mice and two flies. Giant toadstool sculptures are planted on a mushroom clock that the reindeer can turn with their antlers, and at the centre is a mushroom-shaped &#8220;floating hotel&#8221; – a bed on a platform complete with minibar, yours for €1,000 a night. (There&#8217;s also a <a title="raffle" href="http://www.somainberlin.org/lottery-drawing.html?L=1">raffle</a> giving away free places.)</p>
<p>The twist is that this is meant to be a scientific experiment, in which half the reindeer have been fed &#8220;fly agaric&#8221; mushrooms, which they consume naturally in the wilds of Siberia. It makes their urine hallucinogenic (some people believe that this is the origin of the story of Santa Claus&#8217;s sleigh being pulled by flying, red-nosed reindeers).</p>
<p>The urine is collected by handlers and stored in fridges by the walls, which also hold both dried and fresh fly agaric mushrooms. By day they&#8217;re locked, but at night the fridges are opened, allowing people staying over to sample the contents. However, because only half the reindeer are fed the mushrooms, it&#8217;s impossible to know which bottles, if any, contain hallucinogenic urine.</p>
<p>Tanja Klein, 28, won a competition to spend the night in the museum with her boyfriend, Sachar Kriwoj, 30. &#8220;I wasn&#8217;t going to go and drink six bottles of reindeer urine to find out,&#8221; says Klein. &#8220;I&#8217;m not into drugs, I&#8217;m into art.&#8221;</p>
<p>Höller hasn&#8217;t tried the urine, but he has tried the mushrooms. &#8220;They&#8217;re very unpleasant,&#8221; he says, speaking from his home in Stockholm. &#8220;And you throw up. The first four times I tried it, I became comatose. Then you wake up, throw up, and you don&#8217;t know where you are, or how long you&#8217;ve been asleep. The sixth time, I started to chant like a Tibetan monk.&#8221;</p>
<p>The title Soma comes from the name of the sacred libation drunk by the Indo-Persian followers of the Vedic religion, Hinduism&#8217;s 5,000-year-old parent. Its ancient text, the Rigveda, contains 114 hymns to &#8220;creative juice&#8221;, supposed to offer immortality. The recipe was lost, but in the 1960s researcher <a title="Robert Wasson" href="http://www.imaginaria.org/wasson/life.htm">Robert Wasson</a> hypo-thesised that soma was based on the fly agaric mushroom.</p>
<p>Höller&#8217;s installation sets out to test this hypothesis – and the possibility that art may change perceptions even more effectively than drugs. It takes the form of an experiment set in a playground: from that giant &#8220;double mushroom clock&#8221; the reindeer move with their antlers, to the &#8220;mice square&#8221;, based on an actual playground in Paris designed by sculptor <a title="Pierre Szekely" href="http://www.szuv.hu/pierreszekely/eletrajz_e.html">Pierre Székely</a>.</p>
<p>One side of the hall is the &#8220;test&#8221;, the other the &#8220;control&#8221;. Reindeer on the test side are fed the mushrooms. (&#8220;At least in principle,&#8221; says Höller, helpfully.) On each side, the reindeer urine is spread on the food of the other animals. From observation posts, visitors watch the behaviour of the canaries, mice and houseflies for signs of intoxication and form their own conclusions. &#8220;The experiment is completed in the minds of the visitors,&#8221; says Höller. &#8220;It&#8217;s very unscientific.&#8221; In other words, it&#8217;s an open question whether the reindeer are even fed the mushrooms at all: the power of suggestion makes you likely to observe something that may not take place.</p>
<p>Experimentation has been a part of Höller&#8217;s work since he began his career as an artist while still an agricultural research scientist in the early 1990s. He went on to install 2006&#8242;s <a title="Test Site" href="http://arts.guardian.co.uk/flash/page/0,,1891219,00.html">Test Site</a>, in Tate Modern&#8217;s Turbine Hall, which allowed gallery-goers to throw themselves down double-helix slides.</p>
<p>Overnight visitors to Soma have reported some strange events. Florian Wojnar, a friend of Höller&#8217;s, spent the night in the museum with his 11-year-old son. &#8220;He was really excited, because at some point, there were seven reindeer on one side and five on the other. In the morning, we counted again and there were six on each. I never saw them move.&#8221;</p>
<p>Dorothée Brill, the museum&#8217;s lead curator, says: &#8220;As far as we can tell, nobody&#8217;s done anything they shouldn&#8217;t have.&#8221; Staff at the restaurant, however, report that some guests &#8220;drink the minibar dry&#8221;.</p>
<p>It&#8217;s hard to resist the suspicion that the exhibition is intended as a microcosm of society, an allegory for democracy, with extra privileges and more fun for those able to pay. And, if this is an experiment, make no mistake: it&#8217;s you in the lab. Meanwhile, those tempted to make a Christmas visit should bear in mind that the Hamburger Bahnhof is closed on Christmas Eve. &#8220;The reindeer have somewhere else to be that day,&#8221; the museum explained.</p>
<p>• Soma is at the Hamburger Bahnhof, Berlin, until 6 February. Details:<a href="http://somainberlin.org/">somainberlin.org</a></p>
]]></content:encoded>
			<wfw:commentRss>http://www.brainwaving.com/2011/01/28/deers-of-perception/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Time tangled up in Quantum&#8230;</title>
		<link>http://www.brainwaving.com/2011/01/25/time-tangled-up-in-quantum/</link>
		<comments>http://www.brainwaving.com/2011/01/25/time-tangled-up-in-quantum/#comments</comments>
		<pubDate>Tue, 25 Jan 2011 10:58:27 +0000</pubDate>
		<dc:creator>David Luke</dc:creator>
				<category><![CDATA[Extended Mind]]></category>
		<category><![CDATA[brainwave]]></category>
		<category><![CDATA[David Nutt]]></category>
		<category><![CDATA[Elegant Universe]]></category>
		<category><![CDATA[futorology]]></category>
		<category><![CDATA[future]]></category>
		<category><![CDATA[nature]]></category>
		<category><![CDATA[perception]]></category>
		<category><![CDATA[quantum]]></category>
		<category><![CDATA[Science]]></category>
		<category><![CDATA[social commentary]]></category>
		<category><![CDATA[telepathy]]></category>

		<guid isPermaLink="false">http://www.brainwaving.com/?p=1493</guid>
		<description><![CDATA[Why is it that psychologists still abhor parapsychology with all this stuff going on in physics? Dr. David Luke x Physicists describe method to observe timelike entanglement January 24, 2011 by Lisa Zyga (PhysOrg.com) &#8211; &#60; More information: S. Jay Olson and Timothy C. Ralph. &#8220;Extraction of timelike entanglement from the quantum vacuum.&#8221; arXiv:1101.2565v1 [quant-ph]&#62; [...]]]></description>
			<content:encoded><![CDATA[<div>Why is it that psychologists still abhor parapsychology with all this stuff going on in physics?</p>
<p>Dr. David Luke x<br />
<strong><br />
Physicists describe method to observe timelike entanglement</strong></p>
<p>January 24, 2011 by Lisa Zyga (PhysOrg.com) &#8211;</p>
<p>&lt; More information: S. Jay Olson and Timothy C. Ralph. &#8220;Extraction of timelike entanglement from the quantum vacuum.&#8221; arXiv:1101.2565v1 [quant-ph]&gt;</p>
<p>In &#8220;ordinary&#8221; quantum entanglement, two particles possess properties that are inherently linked with each other, even though the particles may be spatially separated by a large distance. Now, physicists S. Jay Olson and Timothy C. Ralph from the University of Queensland have shown that it&#8217;s possible to create entanglement between regions of spacetime that are separated in time but not in space, and then to convert the timelike entanglement into normal spacelike entanglement. They also discuss the possibility of using this timelike entanglement from the quantum vacuum for a process they call &#8220;teleportation in time.&#8221;</p>
<p>&#8220;To me, the exciting aspect of this result (that entanglement exists between the future and past) is that it is quite a general property of nature and opens the door to new creativity, since we know that entanglement can be viewed as a resource for quantum technology,&#8221; Olson told PhysOrg.com. &#8220;The greatest significance of our result is almost certainly in some application that is yet to be imagined.&#8221;</p>
<p>Olson and Ralph&#8217;s paper, which is posted at arXiv.org, describes how timelike entanglement can be converted into spacelike entanglement using two detectors.</p>
<p>&#8220;Essentially, a detector in the past is able to `capture&#8217; some information on the state of the quantum field in the past, and carry it forward in time to the future &#8212; this is information that would ordinarily escape to a distant region of spacetime at the speed of light,&#8221; Olson said. &#8220;When another detector then captures information on the state of the field in the future at the same spatial location, the two detectors can then be compared side-by-side to see if their state has become entangled in the usual sense that people are familiar with &#8212; and we find that indeed they should be entangled. This process thus takes a seemingly exotic, new concept (timelike entanglement in the field) and converts it into a familiar one (standard entanglement of two detectors at a given time in the future).&#8221;</p>
<p>In their study, the scientists also proposed a thought experiment in which they move a quantum state into the future using timelike entanglement as the resource. They call the process &#8220;teleportation in time.&#8221;</p>
<p>In the thought experiment, the physicists described two qubit detectors, one of which is coupled to the field in the past and one to the field in the future. First, the detector coupled to the past operates on a qubit and generates information about how the qubit can be detected. The qubit is then teleported into the future, essentially skipping over a middle period of time. Then the first detector is removed and the second, future-coupled detector is placed in the first detector&#8217;s spatial location, so that the detectors are separated in time but not in space. After a certain amount of time, the second detector receives the information from the first detector, which it uses to reconstruct the teleported qubit.</p>
<p>The physicists emphasized that there is an important symmetric time correlation that must be followed in order for the procedure to work. If the qubit is teleported at t=0, then the first detector must have operated the same amount of time before t=0 as the second detector operated after t=0. For example, if t=0 is 12:00, and the first detector operated at 11:45, then the second detector must wait to operate at exactly 12:15 in order to achieve entanglement. The scientists also noted that between 12:00 and 12:15, it&#8217;s impossible to recover the teleported qubit.</p>
<p>According to the physicists&#8217; previous work, such timelike entanglement should generate a new thermal effect arising from the quantum vacuum (the quantum vacuum is thought to exhibit several thermal effects, including Hawking radiation from black holes, though none of these thermal effects have been observed). The physicists predict that the new thermal effect may be easier to observe than other thermal effects using current technology. If such a procedure for extracting and converting timelike entanglement can be realized, then it could provide a way for scientists to directly observe the quantum entanglement inherent in the space-time vacuum for the first time.</p>
<p>&#8220;Entanglement is observed every day,&#8221; Olson said. &#8220;However, direct observation of entanglement in the vacuum state would be new, and being able to observe it would potentially enable us to use this entanglement as a resource for quantum technology. Since the vacuum state is the closest thing we have to `nothing&#8217; in physics (it is the state with zero ordinary particles around), observing and using the entanglement inherent in the vacuum as a technological resource would potentially give us a way to build quantum devices with just empty space as the most fundamental ingredient.&#8221;</p>
<p>© 2010 PhysOrg.com</p>
</div>
<p>&#8211;<br />
<img src="http://breakingconvention.co.uk/wp-content/uploads/2011/01/bannersmall.jpg" alt="" width="464" height="132" /></p>
]]></content:encoded>
			<wfw:commentRss>http://www.brainwaving.com/2011/01/25/time-tangled-up-in-quantum/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
	</channel>
</rss>

