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Obama Is Right: We Need to Expand Social Security. But Not For Everybody.

Mother Jones

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On Wednesday President Obama joined the retirement crisis bandwagon:

A lot of Americans don’t have retirement savings. Even if they’ve got an account set up, they just don’t have enough money at the end of the month to save as much as they’d like because they’re just barely paying the bills. Fewer and fewer people have pensions they can really count on, which is why Social Security is more important than ever.

We can’t afford to weaken Social Security. We should be strengthening Social Security. And not only do we need to strengthen its long-term health, it’s time we finally made Social Security more generous, and increased its benefits so that today’s retirees and future generations get the dignified retirement that they’ve earned.

I concur in part and dissent in part. First the dissent: it’s not true that “fewer and fewer” people have pensions they can count on. There has been a change in the number of old-style pensions (“defined-benefit plans”) vs. 401(k)-style pensions (“defined-contribution plans”), but the overall share of workers covered has stayed pretty steady:

The total share of workers in pension plans of one kind or another was 45 percent in 1979 and 45 percent in 2011. There’s been virtually no change over the past 30 years.

But wait! Those old-style pensions were more generous. Surely that’s what Obama meant by pensions that people “can really count on”? Not so much, it turns out. The Center for Retirement Research at Boston College has been warning about the retirement crisis for some time, but recently they re-analyzed pension data based on new NIPA data that allows a more accurate look at pension accruals. Here’s their updated chart:

The total pension wealth of the American public has barely budged even as the source of pension wealth has changed dramatically. It was about 13 percent of total wages in 1984 and 14 percent in 2012. CRR’s conclusion from this new data is that “the accumulation of retirement assets has not declined as a result of the shift from defined benefit to defined contribution plans.” As they cheerfully admit, “We are going to have to change our story!”

Now it’s true, in theory, that old-style pensions were safer than 401(k) plans, which bob up and down with the stock market. But this difference is often overstated. For one thing, 401(k) plans generally show fairly steady growth over any time frame more than three or four years. Even the Great Recession only weakened them from 2009-12, and they’ve recovered very nicely since then. For another, all those old pension funds were invested in stocks and bonds as well, and if the market goes south, they go south as well. The most recent example of this is the Teamsters’ Central States Pension Fund.

That said, I concur in part with President Obama. Probably the biggest problem with 401(k)-style plans is that they tend to benefit high earners more than old-style pensions did. The difference isn’t enormous—though we can’t say for sure since distributional detail isn’t available for past decades—but it’s probably true that 401(k)s are somewhat less generous to low earners than older defined-benefit plans were. This is not a fatal defect, however, and it’s one that’s being addressed fairly successfully already. Another problem with 401(k) plans is high fees, and that’s also a problem that’s being addressed—though for my money it could stand to be addressed with considerably more vigor.

Here’s what all this adds up to: the best way to address retirement security is to continue reforming 401(k) plans and to expand Social Security—but only for low-income workers. Middle-class workers are generally doing reasonably well, and certainly as well as they did in the past. We don’t need a massive and expensive expansion of Social Security for everyone, but we do need to make Social Security more generous for the bottom quarter or so of the population that’s doing poorly in both relative and absolute terms. This is something that every liberal ought to support, and hopefully this is the bandwagon that President Obama in now on.

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Obama Is Right: We Need to Expand Social Security. But Not For Everybody.

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Organic industry sales put Monsanto’s to shame

Organic industry sales put Monsanto’s to shame

By on May 19, 2016Share

If there was some stock index fund that covered organic food businesses, I’d want to invest my savings in it. In the United States organic food sales have grown steadily at around 10 percent a year since the Great Recession (and at higher rates before that), which puts the stock market to shame.

In 2015 organic product sales revenue grew 11 percent, while the rest of the food market grew at a rate of 3 percent, according to the Organic Trade Association’s annual survey of the industry. Total sales reached $43.3 billion, which makes the organic industry a force to be reckoned with. For comparison, Monsanto brought in just under $15 billion in revenue last year, and Whole Foods brought a little over $15 billion.

When people have the disposable income they’re pretty quick to take a step up the price ladder from commodity food. Organic food still only amounts to five percent of the U.S. market, which suggests that there’s room for more growth.

The term organic doesn’t automatically mean the food is produced with the best environmental practices, or that it’s healthier and tastier, but it often is: The higher prices provide farmers with bigger margins, and that gives them a greater ability to attend to quality and stewardship.

Here’s our explainer on what organic signifies.

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Organic industry sales put Monsanto’s to shame

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Another Pension Fund Goes South After the Great Recession

Mother Jones

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Here’s the latest big pension fund in trouble:

More than a quarter of a million truckers, retirees and their families could soon see their pension benefits severely cut — even though their pension fund is still years away from running out of money.

….Like many other pension plans, the Central States Pension Fund suffered heavy investment losses during the financial crisis that cut into the pool of money available to pay out benefits. While the stock market has recovered since then, the improvements were not enough to make up for the shortfall….That imbalance left the fund paying out $3.46 in pension benefits for every $1 it received from employers. The shortfall has resulted in the fund paying out $2 billion more in benefits than it receives in employer contributions each year.

One of the big criticisms of 401(k) style retirement plans is that they can lose a bundle when the stock market tanks. And sure enough, that’s exactly what happened during the Great Recession. The value of 401(k) plans fell dramatically, causing a lot of pain for people who were close to retirement.

But don’t let that make you nostalgic for the good old days of defined-benefit pensions. Sure, they promise a steady retirement income, but promises are only as good as the money to back them up. This means that pension funds which lost a lot of money during the Great Recession are in no better shape than 401(k) plans that did the same. There’s no magic here.

What’s more, 401(k) plans have rebounded since the depths of the recession: taking into account both their losses and their subsequent gains during the recovery, the average 401(k) balance has grown more than 10 percent per year between 2007 and 2013. Apparently that’s not the case for the Central States Pension Fund. Perhaps those much-maligned 401(k) plans are a better retirement vehicle than their critics give them credit for?

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Another Pension Fund Goes South After the Great Recession

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Here’s How Donald Trump Treats the Little People

Mother Jones

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It’s pretty common knowledge that Donald Trump lies routinely about his wealth and his businesses. He can get away with this because he runs a private company and isn’t required to open his books to the public.

But there was one period in his life when he ran a public company. Here’s the backstory: During the ’80s, Trump invested heavily in Atlantic City casinos. He ended up owning three of them, culminating in the Trump Taj Mahal, a billion-dollar monstrosity that was ill conceived and poorly run, hemorrhaging money from the day it opened. Trump had borrowed heavily during this period, guaranteeing many of the loans personally, and this was the last straw. His company was bankrupt.

He would have been personally bankrupt, too, but his creditors decided to put him on a leash and let him try to work his way out. He made steady progress, but the casinos continued to be a millstone around his neck. By the mid-’90s, however, the stock market was getting hot and lots of small investors, then as now, were mesmerized by the Trump name. So Trump decided that as long as there were lots of rubes who still thought he was a great businessman, he might as well take advantage of them. Timothy O’Brien tells the story in TrumpNation:

In a masterstroke of financial maneuvering, and in a tribute to the sucker-born-every-minute theorem, Trump managed to take two of the Trump casinos—the Plaza and the Taj Mahal—public in 1995 and 1996, at a time when Donald was unable to make his bank payments and was heading toward personal bankruptcy. The stock sales allowed Donald to buy the casinos back from the banks and unload huge amounts of debt. The offering yanked Donald out of the financial graveyard and left him with a 25 percent stake in a company he once owned entirely.

In one fell swoop someone else became responsible for the debts that almost sank Donald…Exactly what investors thought they might get for their Trump Hotels investment wasn’t entirely clear. Donald had already demonstrated that casinos weren’t his forte, and investors were buying stock in a company that was immediately larded with debts that made it difficult, if not impossible, to upgrade the operations.

…Allan Sloan, the financial writer who had opined with great accuracy on many things Trump, offered a fair warning to Trump Hotels’ investors: “Shareholders and bondholders have to be total fools ever to think that Donald Trump will put their interests ahead of his own.”…Donald spent several years proving Sloan correct.

…Just a few months after Trump Hotels absorbed the Taj, Donald sold his last Atlantic City casino, the Castle, to the public company. That is, Donald sold his own casino, with all of its heavy debts, to a public company he controlled. The $490 million price tag for the Castle was about $100 million more than analysts thought it was worth…sending the company’s stock into a nosedive from which it never recovered.

Although Trump Hotels’ shares were sinking and there were no earnings to be seen, Donald paid himself $7 million for his handiwork at the company in 1996…Jerry Useem at Fortune took note in 2000 of Donald’s “disquieting” tendency to “use the casino company as his own personal piggy bank.” In addition to the multimillion-dollar bonuses Donald was lifting out of Trump Hotels, Useem pointed out that “the pilots of his personal 727 are on the casino company’s payroll” and that in 1998 Donald “had the already cash-strapped company lend him $26 million to pay off a personal loan.”

Trump’s fans were conned into buying up his debt-laden properties and turning them into a public company. Trump, who plainly had no interest in running a casino and had demonstrated no corporate management skills during the prior decade, paid himself millions of dollars from the company’s coffers for doing essentially nothing. He then unloaded his third casino onto the public company at an inflated price.

The public company didn’t show a profit during a single year of its existence. In 2004 the stock was delisted and the company forced into Chapter 11 reorganization. It was renamed Trump Entertainment Resorts, but with Trump still at the helm it continued to pile up losses and amassed debts of nearly $2 billion. In 2008, after missing a $53 million bond payment, it declared bankruptcy yet again and Trump resigned as the company’s chairman. Its investors lost all their money.

In case you’re curious, this is how Trump treats the little people. Some of the investors in his casinos were big guns who should have known better. But plenty of them were moms and pops who believed Trump when he insisted he was the greatest businessman the world had ever known. Trump didn’t care: He figured he could fleece them, and he did. That’s what happens to people who trust Donald Trump.

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Here’s How Donald Trump Treats the Little People

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Fragile Global Economy Is Starting to Crack Up

Mother Jones

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I woke up a little late this morning, but maybe that turned out to be a good thing. The Dow Jones plunged a thousand points within minutes of opening, but by the time I saw the news it had already recouped about half of that loss:

You can probably guess what triggered this:

The stock drop was fueled by what China’s state media is already calling “Black Monday,” in which markets there recorded their biggest one-day plunge in eight years amid growing fears over an economic slowdown.

On Friday, China reported its worst manufacturing results since the global financial crisis, a new sign of woe for the world’s second-largest economy, which surprised investors earlier this month by announcing it would devalue its currency. China’s benchmark Shanghai Composite index has fallen by nearly 40 percent since June, after soaring more than 140 percent last year.

Markets around the world are crashing, and as usual that means seeking safety in the good old US of A:

Investors stampeded into relatively safe assets such as U.S. government bonds, the Swiss franc and the yen. The yield on the 10-year Treasury note dropped below 2% during Asian trading and recently was 1.976%, the lowest level since April.

….“A lot of markets abroad have seen a low amount of liquidity so investors are turning to the U.S. market to hedge,” said Jeffrey Yu, head of single-stock derivatives trading at UBS AG….While the selloff began as an emerging markets story, with China’s stock market offering very little liquidity to investors due in part to technical stock-trading halts, investors have had to turn to the most liquid market to sell, which is the U.S., Mr. Yu said.

Now can we finally get a statement from the Fed saying that they no longer have any immediate plans to raise interest rates? Please?

See the article here – 

Fragile Global Economy Is Starting to Crack Up

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The Insane Story Behind Trump’s Deleted Nazi Tweet

Mother Jones

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Earlier today, Donald Trump tweeted out a campaign poster featuring what appeared to be men in Nazi uniforms, superimposed over the American flag. The tweet was swiftly deleted, but not before the internet went to work tracking down the original image, sourced to the stock photography website iStock.

Mother Jones can now reveal that the image in question was taken at a World War II reenactment near Kent, England, some time within the last five years, according to its photographer, George Cairns. We reached Cairns by Skype at his home in St Albans, a town just north of London, where he was hanging out playing video games when his Twitter feed started to blow up in response to the Trump story.

George Cairns, photographer. Supplied.

Cairns is a British freelance stock photographer and photography instructor who says he frequents war reenactments as good locations to pick up realistic-looking stock images—not just of Nazis, but also of American GIs and other soldiers. Cairns said he didn’t know much about Donald Trump beyond the controversy over a golf course the billionaire and GOP presidential contender bought in Scotland last year.

So what does Cairns make of Trump using his image to endorse his candidacy?

“Well luckily, it’s not endorsed him in a sense… So that’s a good thing,” he said. “I’m not a Trump supporter. I can sleep OK tonight.”

In an almost impossibly bizarre coincidence, this isn’t the first time the Cairns family has been caught up in a photo kerfuffle involving Nazis and American politicians. George’s brother John is also a stock photographer, and took the image of Nazi reenactors that was accidentally used in a flier for the campaign of North Carolina state legislator Tim Spear in 2010.

“I have photos of American soldiers as well,” Cairns said. “But for some reason, politicians seem to be downloading Nazis.”

The photo isn’t a massive moneymaker for the photographer. “I’ve sold that image twice this year,” Cairns said. Yesterday, Cairns made $8.64 on a sale. Today, $1.71. “I can buy a coffee!” he joked.

In the world of stock photography, you have basically no control over who uses your photos, Cairns said. The best you can do is pick keywords for the images you upload that let people know exactly what they’re buying. In this case, Cairns said, Trump’s people should have been able to tell what they were looking at.

“I tried to keyword it carefully so people would be aware that it’s WWII fascists.”

This article – 

The Insane Story Behind Trump’s Deleted Nazi Tweet

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Router Failure Grounds Entire United Fleet

Mother Jones

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Greece is in trouble. China is in trouble. Puerto Rico is in trouble. The New York Stock Exchange has been shut down over a “technical issue.” And United Airlines has halted all its flights:

United midday on Wednesday said that the grounding had been caused by a computer-network router that malfunctioned, which disrupted its passenger reservations system. That meant that many passengers couldn’t check in for their flights. The disruption affected some places more than others, but it covered the entire network, which was why United decided to ground its entire mainline and United Express fleet worldwide.

Yikes! The malfunction of a single router torpedoed United’s reservation system for an entire day? That must be a pretty delicate network they’re running there.

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Router Failure Grounds Entire United Fleet

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Inside the Bizarre Cow Trials of the 1920s

Mother Jones

From a 1920 USDA publication titled, “Runts—and the Remedy”

A version of this article was originally published on Gastropod.

Something extremely bizarre took place in the early decades of the 20th century, inspired by a confluence of trends. Scientists had recently developed a deeper understanding of genetics and inherited traits; at the same time, the very first eugenics policies were being enacted in the United States. And, as the population grew, the public wanted cheaper meat and milk. As a result, in the 1920s, the USDA encouraged rural communities around the United States to put bulls on the witness stand—to hold a legal trial, complete with lawyers and witnesses and a watching public—to determine whether the bull was fit to breed.

In 1900, the average dairy cow in America produced 424 gallons of milk each year. By 2000, that figure had more than quadrupled, to 2,116 gallons. In the latest episode of Gastropod—a podcast that looks at food through the lens of science and history—we explore the incredible science that transformed the American cow into a milk machine. But we also uncover the disturbing history of prejudice and animal cruelty that accompanied it.

Livestock breeding was a normal part of American life at the dawn of the 20th century, according to historian Gabriel Rosenberg. The United States, he told Gastropod, was “still largely a rural and agricultural society,” and farm animals—and thus some more-or-less scientific forms of selective breeding—were ubiquitous in American life.

Meanwhile, the eugenics movement was on the rise. Founded by Charles Darwin’s cousin, Francis Galton, eugenics held that the human race could improve itself by guided evolution—which meant that criminals, the mentally ill, and others of “inferior stock” should not be allowed to procreate and pass on their defective genes. America led the way, passing the first eugenic policies in the world. By the Second World War, 29 states had passed legislation that empowered officials to forcibly sterilize “unfit” individuals.

Combine the growing population, the desire for cheap meat and milk, and the increasing popularity of eugenics, and the result, Rosenberg said, was the “Better Sires: Better Stock” program, launched by the USDA in 1919. In an accompanying essay, “Harnessing Heredity to Improve the Nation’s Live Stock,” the USDA’s Bureau of Animal Industry proclaimed that, each year, “a round billion dollars is lost because heredity has been permitted to work with too little control.” The implication: Humans needed to take control—and stop letting inferior or “scrub” bulls reproduce!

The “Better Sires: Better Stock” campaign included a variety of elements to encourage farmers to mate “purebred” rather than “scrub” or “degenerate” sires with their female animals. Anyone who pledged to only use purebred stock to expand their herd was awarded a handsome certificate. USDA field agents distributed pamphlets entitled “Runts—and the Remedy” and “From Scrubs to Quality Stock,” packed with charts showing incremental increases of dollar value with each improved generation as well as testimonials from enrolled farmers.

The USDA’s script for prosecuting an inferior bull. The document was unearthed by Duke historian Gabriel Rosenberg, who is writing a book on the subject.

By far the most peculiar aspect of the campaign, however, came in 1924, when the USDA published its “Outline for Conducting a Scrub-Sire Trial.” This mimeographed pamphlet, which Rosenberg recently unearthed, contained detailed instructions on how to hold a legal trial of a non-purebred bull, in order to publicly condemn it as unfit to reproduce. The pamphlet calls for a cast of characters to include a judge, a jury, attorneys, and witnesses for the prosecution and the defense, as well as a sheriff, who should “wear a large metal star and carry a gun,” and whose role, given the trial’s foregone conclusion, was “to have charge of the slaughter of the condemned scrub sire and to superintend the barbecue.”

In addition to an optional funeral oration for the scrub sire and detailed instructions regarding the barbecue or other refreshments (“bologna sandwiches, boiled wieners, or similar products related to bull meat” are recommended), the pamphlet also includes a script that begins with the immortal lines: “Hear ye! Hear ye! The honorable court of bovine justice of ___ County is now in session.” The county’s case against the scrub bull is laid out: that he is a thief for consuming “valuable provender” while providing no value in return, that he is an “unworthy father,” and that his very existence is “detrimental to the progress and prosperity of the public at large.” Several pages and roughly two hours later, the trial concludes with the following stage direction: “The bull is led away and a few moments later a shot is fired.”

Within a month of publication, the USDA reported receiving more than 500 requests for its scrub-sire trial pamphlets. Across the country, the court of bovine justice was convened at county fairs, cattle auctions, and regional farmers’ association meetings, forming a popular and educational entertainment.

These bull trials may seem like a forgotten, bizarre, and ultimately amusing quirk of history, but, as Rosenberg reminded Gastropod, “They are talking about a lot more than just cattle genetics here.”

Indeed, the very same year—1924—that the USDA published its “Outline for Conducting a Scrub-Sire Trial,” the state of Virginia passed its Eugenical Sterilization Act. Immediately, Dr. Albert Sidney Priddy, Director of the Virginia State Colony for Epileptics and Feebleminded, filed a petition to sterilize Carrie Buck, an 18-year-old whom he claimed had a mental age of 9, and who had already given birth to a supposedly feeble-minded daughter (following a rape). Buck’s case went all the way to the Supreme Court, with Justice Oliver Wendell Holmes Jr. upholding the decision in a 1927 ruling that concluded: “Three generations of imbeciles are enough.” Historians estimate that more than 60,000 Americans were sterilized in the decades leading up to the Second World War, with many more persecuted under racist immigration laws and marriage restrictions.

Eugenics, with its philosophical kinship to Nazism, largely fell out of favor in the United States by World War II. But the ideas promoted in the bull trials—that humans can and should take increasing control of animal genetics in order to design the perfect milk machine—have gained ground throughout the past century, as breeding has become ever more technologically advanced. As we discuss in this episode of Gastropod, the drive to improve dairy cattle through livestock breeding has led to huge innovations—in IVF, in genomics, and in big-data analysis—as well as much more milk. But it has also continued, for better and for worse, to highlight the ethical problems that stem from this kind of techno-utopian approach to reproduction.

In this episode of Gastropod, we find out about the bull trials of the 1920s and meet the most valuable bull in the world, as we explore the history and the high-tech genomic science behind livestock breeding today. Along the way, we tease out its larger, thought-provoking, and frequently deeply troubling implications for animal welfare and society in general. Listen below.

Gastropod is a podcast about the science and history of food. Each episode looks at the hidden history and surprising science behind a different food and/or farming-related topic—from aquaculture to ancient feasts, from cutlery to chili peppers, and from microbes to Malbec. It’s hosted by Cynthia Graber, an award-winning science reporter, and Nicola Twilley, author of the popular blog Edible Geography. You can subscribe via iTunes, email, Stitcher, or RSS for a new episode every two weeks.

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Inside the Bizarre Cow Trials of the 1920s

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Greek Investors Apparently Surprised By Stuff No One Should Be Surprised About

Mother Jones

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The latest news from Greece is a bit peculiar:

Prime Minister Alexis Tsipras told his new cabinet on Wednesday that he would move swiftly to negotiate debt relief, but would not engage in a confrontation with creditors that would jeopardize a more just solution for the country….Later, the new finance minister, Yanis Varoufakis, appeared to harden the tone, saying that Greece’s bailout deals were “a toxic mistake” and that the new government was determined to change the logic of how the crisis had been tackled.

While many Greeks were hopeful that Mr. Tsipras would follow through with even a fraction of his populist promises, investors were more rattled. The Athens Stock Exchange, which already had billions of euros in value wiped out during Greece’s election campaign, fell around 7.5 percent in midday trading on Wednesday after slumping around 11 percent on Tuesday. Shares in financial companies in Greece plummeted more than 17 percent on Wednesday.

I wonder what has the stock market so spooked? After all, Tsipras is just doing what he’s said he was going to do all along. Everyone expected him to take at least this hard a line on Greek debt, if not harder. So why the sudden panic? Shouldn’t this have been priced in long ago? What’s new here?

Continued:

Greek Investors Apparently Surprised By Stuff No One Should Be Surprised About

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The FBI Just Arrested an Alleged Russian Spy Who Wanted to Know How to Trigger an Economic Meltdown

Mother Jones

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On Friday, federal prosecutors in New York filed a complaint accusing three men, Evgeny Buryakov, Igor Sporyshev, and Victor Podobnyy, of spying for Russia. Buryakov, who was arrested in the Bronx on Monday, allegedly posed as a Russian bank official while working for Russia’s intelligence service, the SVR. According to the 26-page complaint, which was unsealed Monday, Buryakov had a good reason to choose that cover: He was interested in learning about high-speed Wall Street trading, automated trading algorithms, and “destabilization of markets.”

This is a real threat. As I reported in 2013, markets have become dramatically faster in the years since the collapse of Lehman Brothers. Automated trading algorithms can buy and sell financial products in less time than it takes you to blink. Markets move way too fast for regulators to monitor. On August 1, 2012, rogue computer code at Knight Capital ran for 45 minutes before anyone at the firm could stop it. By the end of the day, the company was insolvent. And that was just “a canary in the mine,” says Michael Greenberger, a University of Maryland law professor and former regulator at the Commodity Futures Trading Commission (CFTC). The big worry is trading algorithms causing “a series of cascade failures,” warns Bill Black, another former regulator. “If enough of these bad things occur at the same time, financial institutions can begin to fail, even very large ones.”

So is it possible Russian spies are trying to find out how to purposefully unleash this chaos? The complaint doesn’t make clear whether the alleged spies were trying to find out how to destabilize US markets or worried about Russian markets being destabilized. But “fears of algorithmic terrorism, where a well-funded criminal or terrorist organization could find a way to cause a major market crisis, are not unfounded,” John Bates, a computer scientist who, in the early 2000s, designed software behind complicated trading algorithms, wrote in 2011. “This type of scenario could cause chaos for civilization and profit for the bad guys and must constitute a matter of national security.”

According to the complaint, the FBI learned of the alleged spies’ interest in market destabilization by eavesdropping on a May 2013 phone call between Buryakov and Sporyshev, a Russian trade representative. Sporyshev was the person “responsible for relaying assignments from Moscow Center to Buryakov,” according to the complaint; Podobnyy was mostly responsible for “analyzing and reporting back to Moscow Center about the fruits of Buryakov’s intelligence-gathering efforts.” (Sporyshev and Podobnyy, who were protected by diplomatic immunity, were not arrested and have left the country.) Buryakov and Sporyshev usually met in person, but on that day they didn’t have time. On the phone, Sporyshev asked Buryakov what questions an unnamed Russian news organization should ask New York Stock Exchange executives that would be useful to Russian intelligence, according to the complaint. Buryakov allegedly suggested the news organization inquire about high-frequency and automated trading systems.

According to the complaint, Buryakov was especially interested in Exchange-Traded Funds (ETFs), which are baskets of financial products that are combined and bought and sold like stocks. Many Americans might assume the Russians were interested in destabilizing American markets, but “it might be the other way around, where they are concerned with us attacking them,” says Eric Hunsader, who runs Nanex, a market data firm that tracks high-speed trading. On April 23, 2014, Hunsader’s company tracked extremely unusual movement in trades of RSX, RUSL, and RUSS—three ETFs that are based on the Russian stock index. “It was something that was definitely manipulated,” Hunsader says. “You don’t generally see that kind of movement go on…Maybe they’re concerned about us screwing with them.”

But here’s another fear: If foreign intelligence services are looking into algorithms, high-speed trading, and destabilizing financial markets, nonstate actors are probably not that far behind.

Here’s a relevant excerpt from the complaint:

dc.embed.loadNote(‘//www.documentcloud.org/documents/1509342-buryakov-et-al-complaint/annotations/200527.js’);

Read the rest of the complaint against the alleged Russian spies here.

Source – 

The FBI Just Arrested an Alleged Russian Spy Who Wanted to Know How to Trigger an Economic Meltdown

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