July 10, 2012

Scranton, Penn., City Workers to Take Mayor to Court Over Across-the-board Minimum Wage Salaries

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Pa. Mayor Cuts City Workers' Pay to Minimum Wage

July 10, 2012

AP - Unions representing workers in the northeastern Pennsylvania city of Scranton expect to file a federal lawsuit against the city after the mayor abruptly cut their pay to minimum wage.

The attorney for three unions, including firefighters and police, tells The Times-Tribune of Scranton (http://bit.ly/LEtMXt ) he expects to file several legal actions, including a motion to hold Mayor Chris Doherty in contempt of court for violating a judge's order to pay full wages.

Doherty last week cut the pay for about 400 employees to the federal minimum wage of $7.25 per hour. He says it was the only way for the cash-strapped city to pay bills, and promises to restore pay once finances are stabilized.

Doherty is locked in a dispute with Scranton's city council over a financial recovery plan as it faces a $16.8 million budget deficit.

Scranton, Pennsylvania City Workers Battle Mayor Over Minimum Wage Pay Cuts

July 10, 2012

Huffington Post - Unions representing workers in the northeastern Pennsylvania city of Scranton expect to file a federal lawsuit against the city after the mayor abruptly cut their pay to minimum wage.

Doherty last week cut the pay for about 400 employees to the federal minimum wage of $7.25 per hour. He says it was the only way for the cash-strapped city to pay bills, and promises to restore pay once finances are stabilized.

Doherty is locked in a dispute with Scranton's city council over a financial recovery plan as it faces a $16.8 million budget deficit.

Pennsylvania City Workers to Take Mayor to Court Over Across-the-board Minimum Wage Salaries

July 10, 2012

Fox News - Employees of a Pennsylvania city, who have all seen their salaries cut to minimum wage as the mayor grapples with budget problems, are hoping a judge restores their paychecks in full.

Scranton Mayor Chris Doherty cut everyone's pay -- including his own -- on Friday, saying the state's sixth-largest city is broke because the City Council blocked his proposed tax increase. Doherty, a Democrat, warned nearly 400 police officers, firefighters and public works employees about his doomsday plan, prompting a Lackawanna County judge to order the city to pay full wages to all employees, citing that it is a violation of their contracts. Hours later, the payday envelopes went out, and, despite the judge's order, they were light.
"They are now going to have to throw their bills in a hat and randomly pick what gets paid on time."
- John Judge, President of Scranton's Firefighters Union
“This needs to be resolved," Scranton firefighter and president of the local firefighters union John Judge told FoxNews.com. "My members are getting a check for $7.25 an hour. These are people that are the head of their households. They have mortgages. They have other living costs. They are now going to have to throw their bills in a hat and randomly pick what gets paid on time.”
The judge was not in his chambers Monday, but attorneys for the local city workers' unions were planning to go to court Tuesday morning to ask him to hold Doherty in contempt of court for violating the injunction.

In addition to scaling back wages, Doherty's move cut off overtime, worker's compensation and disability.

The city of Scranton has battled budget woes for years, but the problems reached a boiling point after the City Council blocked Doherty's plan to raise taxes to cover a $16.8 million shortfall, opting instead to borrow money to cover the budget gap.
“The mayor is trying to strong-arm the council into doing what he wants, but it’s the city’s employees that are paying the price,” Judge said, adding that the workers in his department saw their paystubs go from about $1,500 every two weeks after deductions to a gross pay of about $600. “This is not a case of no cash. It’s a cash-flow problem.”
The cuts were sudden, as city employees were only given eight days' notice. Doherty also claimed last week that there is only $5,000 left in the city’s accounts.
“The employees are the ones in the middle of this battle between the mayor and the council," said Sam Vitris, president of the public works union. “We’ve had four or five recovery plans over the years and none of them seemed to have worked. The stalemate between them has led the city to run out of money.”
Doherty has maintained for months that if the City Council had not refused his 2012 budget proposal, which included a 29 percent tax hike, the city would not be in a dire situation. Doherty did not return repeated calls for comment.

July 9, 2012

Obama, the False Prophet, Seems Destined to Win Re-election

Obama Wins, Even With High Unemployment: Morici

July 9, 2012

The following is a guest blog written for CNBC by Peter Morici, professor at the Robert H. Smith School of Business at the University of Maryland, and former chief economist at the U.S. International Trade Commission.

CNBC - Unemployment hangs stubbornly above 8 percent. Yet, defying election history, President Obama would handily win a second term if voters went to the polls today.

Governor Romney has not capitalized on the stagnant economy, because after sewing up the GOP nomination, he failed to move quickly on issues critical to key demographic groups, and act on the challenger's imperative to offer a better alternative to the President's policies.

To win conservative primary voters, Governor Romney rejected the Dream Act, which enjoyed bi-partisan sponsorship in Congress and would permit young adults brought to America illegally as children to earn citizenship by completing two years of college or military service.

After securing the nomination, Mr. Romney failed to define a compromise position more acceptable to Hispanic voters, and permitted President Obama to preempt the issue by suspending deportation of those young adults. President Obama enjoys an overwhelming lead among Hispanic voters.

Governor Romney vows to repeal Obamacare but is vague about what would replace it. The President's health care reforms may be too expensive and encourage private firms to offshore jobs to escape costly coverage for employees; however, the law contains provisions popular among the elderly and with women-for example, much improved Medicare prescription drug coverage and coverage for children with chronic conditions.

No surprise! President Obama leads Governor Romney in Florida-a must win state for any Republican candidate, along with Texas, given the Democrat's lock on California and New York. And the President enjoys a significant lead among women in battleground states.

On the economy, Governor Romney sounds like a broken record, repeating an annoying theme and undermining his appeal. Constantly harping President Obama's economic policies have failed, he asserts his business experience qualifies him to create millions of new American jobs.

Voters recognize President Obama inherited a bigger mess than any president since FDR, managed to stabilize the economy and created more than 3.6 million jobs since the recovery began in October 2009.

At Bain Capital, Governor Romney earned his fortune reorganizing troubled companies-often shutting facilities, outsourcing jobs and firing employees.

Little in that history indicates he knows much about shaping public policies to encourage new industries, attract private investment, instigate innovation, and generally help U.S. companies compete in global markets and bring jobs to America.

During the early days of his campaign, he talked a lot about the right things-dealing with unfair competition from China and developing domestic oil-but since, he has loaded up on Bush Administration economic advisors, and emphasized broader themes like deregulation and tax and spending cuts.

He has not explained how his proposals on trade, energy, health care, banking, taxation, and regulation would create jobs-now, not down the road by unshackling Adam Smith's "invisible hand."

President Obama, in the spirit of Harry Truman, is out on the hustings in Pennsylvania and the Middle West extolling his rescue of GM (GM) and Chrysler, his vision for clean energy jobs, and an America that puts the middle class first.

The President's claims may be thin on facts, especially given the massive debt he is piling up to pay for it all; however, in that part of the country, considerable progress has been accomplished.

The President leads Governor Romney in the polls in Ohio, Pennsylvania, Illinois, Michigan, and Wisconsin.

To win, Governor Romney must go to those places-spend lots of time, not just advertising dollars-and explain exactly how he intends to bring back jobs from Asia and create new ones, get banks lending to businesses again, and lower healthcare costs without throwing too many Americans into the breach of an unaffordable free market.

The governor hasn't done that, and instead, President has been able to define the campaign in terms of the Obama way or the old way-a.k.a. George W. Bush redux in the person of Mitt Romney.

That's everyone's poltergeist.

'Dr. Doom' Sees Perfect Storm for Economy

Roubini: My 'Perfect Storm' Is Unfolding Now

The man who predicted the housing crisis says four worrisome factors are unfolding right now.

July 9, 2012

CNBC - "Dr. Doom" Nouriel Roubini, says the "perfect storm" scenario he forecast for the global economy earlier this year is unfolding right now as growth slows in the U.S., Europe as well as China.

In May, Roubini predicted four elements -

  1. stalling growth in the U.S.,
  2. debt troubles in Europe,
  3. a slowdown in emerging markets, particularly China, and
  4. military conflict in Iran
- would come together in to create a storm for the global economy in 2013.

"(The) 2013 perfect storm scenario I wrote on months ago is unfolding," Roubini said on Twitter on Monday.
Chinese inflation data released on Monday, suggested that the economy is cooling faster than expected, while employment data out of the U.S. on Friday indicated that jobs growth was tepid for a fourth straight month in June.

Roubini said that unlike in 2008 when central banks had "policy bullets" to stimulate the global economy, this time around policymakers are "running out of rabbits to pull out of the hat."

Policy easing moves by the European Central Bank (ECB), Bank of England (BoE) and the People's Bank of China (PBoC) last week did little to inspire confidence in global stock markets.
"Levitational force of policy easing can only temporarily lift asset prices as gravitational forces of weaker fundamentals dominate over time," he said.
Bill Smead, CEO of Smead Capital Management, agrees that there is little central banks can do arrest the global slowdown.

Last week, he told CNBC that there is "virtually zero chance" that pump-priming by central banks will succeed, suggesting that policymakers should instead let the economic bust work itself through the system.

Military Prepares for Martial Law Takeover



Army Manual Outlines Plan To Kill Rioters, Demonstrators In America

“Warning shots will not be fired”

July 6, 2012

Infowars.com - A newly leaked US Army Military Police training manual for “Civil Disturbance Operations” outlines how military assets are to be used domestically to quell riots, confiscate firearms and even kill Americans on U.S. soil during mass civil unrest.

The document (PDF), which is dated 2006 and was used for a self-learning course at the U.S. Army Military Police School at Fort McClellan, makes it clear that the operations described in the manual apply to both “CONUS and OCONUS,” meaning inside the Continental United States and outside the Continental United States.

The document outlines how military assets will be used to “help local and state authorities to restore and maintain law and order” in the event of mass riots, civil unrest or a declaration of martial law.

The primary function of military assets will be focused around, “breaking up unauthorized gatherings and by patrolling the disturbance area to prevent the commission of lawless acts,” states the document, adding, “during operations to restore order, military forces may present a show of force, establish roadblocks, break up crowds, employ crowd control agents, patrol, serve as security forces or reserves, and perform other operations as required.”

The manual also describes how prisoners will be processed through temporary internment camps under the guidance of U.S. Army FM 3-19.40 Internment/Resettlement Operations, which as we reported earlier this year, outlines how internees would be “re-educated” into developing an “appreciation of U.S. policies” while detained in prison camps inside the United States.

On page 20 of the manual, rules regarding the use of “deadly force” in confronting “dissidents” are made disturbingly clear with the directive that a, “Warning shot will not be fired.”

The manual includes lists of weapons to be used against “rioters” or “demonstrators,” including “antiriot grenades.” It also advises troops to carry their guns in the “safe port arms” stance, a psychological tactic aimed at “making a show of force before rioters.” Non-lethal weapons and water cannons are also included.

The document also explains how the military will be involved in spying on and gathering information on dissidents to identify the, “Existence of persons, groups, or organizations which have distinctively threatened or are creating disturbances.”

“Crowd control agents” will also be deployed for the purpose of “reducing resistance,” states the manual, which also implies that troops will be used to confiscate firearms.

“Restrictions on the sale, transfer, and possession of sensitive material such as gasoline, firearms, ammunition, and explosives will help control forces in minimizing certain forms of violence,” states the document on page 40.

“Consideration may be given to evacuating sensitive items, such as weapons from stores,” the manual also states on page 27.

The document emphasizes how troops should make every effort, “to avoid appearing as an alien invading force and to present the image of a restrained and well-disciplined force whose sole purpose is to help to restore law and order with a minimum loss of life and property.”

This 115 page manual represents a shocking new insight into how the U.S. military will be used domestically to violently quell unrest in the aftermath of a total economic collapse or other national emergency.

Preparations for using troops to deal with mass civil unrest on U.S. soil have been in the works for years.

Back in 2008, U.S. troops returning from Iraq were earmarked for “homeland patrols” with one of their roles including helping with “civil unrest and crowd control”.

In December 2008, the Washington Post reported on plans to station 20,000 more U.S. troops inside America for purposes of “domestic security” from September 2011 onwards, an expansion of Northcom’s militarization of the country in preparation for potential civil unrest following a total economic collapse or a mass terror attack.

A report produced that same year by the U.S. Army War College’s Strategic Institute warned that the United States may experience massive civil unrest in the wake of a series of crises which it termed “strategic shock.”

“Widespread civil violence inside the United States would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security,” stated the report, authored by [Ret.] Lt. Col. Nathan Freir, adding that the military may be needed to quell “purposeful domestic resistance”.

Rex 84, short for Readiness Exercise 1984, was established under the pretext of a “mass exodus” of illegal aliens crossing the Mexican/US border.

During the Iran-Contra hearings in 1987, however, it was revealed that the program was a secretive “scenario and drill” developed by the federal government to suspend the Constitution, declare martial law, assign military commanders to take over state and local governments, and detain large numbers of American citizens determined by the government to be “national security threats.”

With many Americans now becoming “pre-revolutionary” as a result of their fury at the Obama administration and equally unpopular lawmakers in Washington, potential civil unrest could spring not just from a poverty-stricken underclass, but also the shrinking middle class.

Perhaps that’s why the Department of Homeland Security is increasingly focusing its anti-terror apparatus on white middle class Americans, portraying them as domestic terrorists in a series of PSA videos. In addition, ‘Occupy’ protesters are also now being characterized as terrorists.

July 8, 2012

FAA Releases Lists of Public and Private Entities Who Have Applied for Authorization to Fly Drones

Drone Census Tracks U.S. Government's Secret Swarms

July 6, 2012

InnovationNewsDaily - Who flies the robotic skies? Drones have evolved from the U.S. military's battlefield scouts into the hottest new gadgets for Homeland Security and local police departments. That growing swarm of flying robots in the U.S. has spawned a new effort to track down drone usage among government entities.

Here is the deal for the 2012 U.S. Drone Census. Anyone can anonymously submit contact information for government entities or institutions suspected of using drones, so that the Electronic Frontier Foundation and MuckRock (a watchdog group that files Freedom of Information requests) can leap into action by filing a public record request. Such efforts could help U.S. citizens find out about neighborhood police departments or local colleges using drones in their proverbial backyard.

Early legwork by MuckRock has already turned up a drone-related contract between the University of Arizona and defense contractor Raytheon. Another public records request led the Boston Police Department to go on record as saying it has no drone plans.

Drones have plenty of legitimate uses among agencies, universities and police departments. They can do many surveillance or monitoring jobs far more efficiently than manned aircraft or helicopters, and often much more cheaply. Still, many people have concerns about drones becoming a common sight in U.S. skies.

The U.S. military and government agencies don't hold a monopoly on flying drones — ordinary U.S. citizens can fly their own small drones within a limited distance and altitude based on current FAA regulations. But DIY drone owners who want to pack their flying robots for an airline flight may want to take precautions to avoid drawing unwanted official scrutiny.

Today's aircraft-size drones remain restricted to military airspace or border patrol, but the Federal Aviation Administration's (FAA) interim rules already allow police and fire departments to operate drones weighing 25 pounds or less. The FAA plans to open up regular U.S. airspace to drones by 2015.

The FAA has also released lists of public and private entities who have applied for authorization to fly drones in the U.S. — the result of a previous Freedom of Information Act lawsuit filed by the Electronic Frontier Foundation. Examples from include the U.S. Air Force, the NASA Ames Research Center and the Miami-Dade County Police Department.

Anyone curious about the U.S. military's drone activities worldwide can turn to a separate project by the independent researchers of Public Intelligence. Their project has mapped the Department of Defense's usage of drones based on publicly released documents.

July 7, 2012

IRS Set to Police You on Health Care

The Tax Man Cometh to Police You on Health Care

July 7, 2012AP - The Supreme Court's decision to uphold most of President Barack Obama's health care law will come home to roost for most taxpayers in about 2½ years, when they'll have to start providing proof on their tax returns that they have health insurance.

That scenario puts the Internal Revenue Service at the center of the debate, renewing questions about whether the agency is capable of policing the health care decisions of millions of people in the United States while also collecting the taxes needed to run the federal government.

Under the law, the IRS will provide tax breaks and incentives to help pay for health insurance and impose penalties on some people who don't buy coverage and on some businesses that don't offer it to employees.

The changes will require new regulations, forms and publications, new computer programs and a big new outreach program to explain it all to taxpayers and tax professionals. Businesses that don't claim an exemption will have to prove they offer health insurance to employees.

The health care law "includes the largest set of tax law changes in more than 20 years," according to the Treasury inspector general who oversees the IRS. The agency will have to hire thousands of workers to manage it, requiring significant budget increases that already are being targeted by congressional Republicans determined to dismantle the president's signature initiative.

"Knowing the complexity of the health law, there's no question that the IRS is going to struggle with this," said Rep. Charles Boustany Jr., R-La., chairman of the House Ways and Means oversight subcommittee. "The IRS wants more resources. Well, we need to start digging down into what are they doing with the resources and personnel."

Treasury spokeswoman Sabrina Siddiqui said,

"The overwhelming majority of funds used by the agency to implement the Affordable Care Act go to administer the premium tax credits, which will be a tax cut averaging about $4,000 for more than 20 million middle-class people and families."

The Supreme Court, in its 5-4 ruling, upheld the mandate that most Americans get health insurance. The majority said Congress has the power to enforce the mandate under its taxing authority. The decision labeled the penalties a tax, noting that they will be collected by the IRS.

Those who don't get qualified health insurance will be required to pay the penalty — or tax — starting for the 2014 tax year, unless they are exempt because of low income, religious beliefs, or because they are members of American Indian tribes.

The penalty will be fully phased in by 2016, when it will be $695 for each uninsured adult or 2.5 percent of family income, whichever is greater, up to $12,500. The nonpartisan Congressional Budget Office estimates that 4 million people will pay the penalty that year.

The law, however, severely limits the ability of the IRS to collect the penalties. There are no civil or criminal penalties for refusing to pay it and the IRS cannot seize bank accounts or dock wages to collect it. No interest accumulates for unpaid penalties.

So how can the IRS enforce the mandate? Scary letters and threats to withhold tax refunds.

The law allows the IRS to withhold tax refunds to collect the penalty, and most filers get refunds. This year, 77 percent of the 135 million individual income tax returns processed by the IRS qualified for a refund. The average refund: $2,707.

For those who don't qualify for a refund, a stern letter from the IRS can be effective, even if it doesn't come with the threat of civil or criminal penalties, said Elizabeth Maresca, a former IRS trial attorney who supervises the Tax & Consumer Litigation Clinic at the Fordham University law school.

"Most people pay because they're scared, and I don't think that's going to change," Maresca said.

The IRS has not yet issued procedures for taxpayers to prove they have insurance. But IRS Commissioner Douglas Shulman, in a 2010 speech, said he envisioned a process similar to the one used by taxpayers to report interest or investment income.

Under this scenario, an insurance company would send the taxpayer and the IRS forms each year verifying that the taxpayer has qualified insurance. Taxpayers would file the forms with the IRS along with their returns, and the IRS would check them to make sure they match the information supplied by the insurance companies.

The IRS says it is well on its way to gearing up for the new law but has offered little information about its long-term budget and staffing needs, generating complaints from Republican lawmakers and concern from government watchdogs.

The IRS is expected to spend $881 million on the law from 2010 through 2013, hiring more than 2,700 new workers and upgrading its computer systems. But the IRS has not made public information about its spending plans in the following years, when the bulk of the health care law takes effect.

The lack of information makes it impossible to determine whether the IRS will have adequate workers to enforce the health care law, the Treasury inspector general for tax administration said in a report three weeks ago. The report, however, concluded that "appropriate plans had been developed to implement tax-related provisions" of the law.

In 2010, House Ways and Means Committee Republicans issued a report saying the IRS may need as many as 16,500 additional auditors, agents and other employees "to investigate and collect billions in new taxes from Americans."

That assessment has been widely cited by opponents of the law. The IRS disputes the jobs number but hasn't offered another one.

"That is a made-up number with no basis in fact," IRS spokesman Dean Patterson said in an email. "The 2012 budget calls for about 1,200 employees for the IRS to implement the (Affordable Care Act), and the vast majority of those employees are needed to build technology infrastructure to support payments like the new tax credits for individuals and small businesses."

Republicans on the House committee have accused the IRS of obscuring its cost of putting in place the health care law by absorbing it into in other parts of the agency's budget. They cite a June report by the Government Accountability Office that said the IRS has not always accurately identified spending related to the new health care law.

"The agency's repeated lack of transparency to Congress and its failure to provide accountability to the American taxpayers raises fundamental concerns about implementation authorities vested to the IRS," the top four Republicans on the Ways and Means Committee wrote in a June 27 letter to the IRS commissioner.

The committee chairman, Rep. Dave Camp, R-Mich., has scheduled a hearing on the tax implications of the Supreme Court's ruling for Tuesday.

California Gets Green Light to Build Nation's First Dedicated High-speed Rail Line

California High-Speed Rail Gets Green Light

July 7, 2012

AP - California lawmakers gave the green light to start building the nation's first dedicated high-speed rail line, a multibillion dollar project that will eventually link Los Angeles and San Francisco.

The move marked major political victories for Democratic Gov. Jerry Brown and the Obama administration. Both have promoted bullet trains as job generators and clean transportation alternatives.

In a narrow 21-16 party-line vote that involved intense lobbying by the governor, legislative leaders and labor groups, the state Senate approved the measure marking the launch of California's ambitious bullet train, which has spent years in the planning stages.

"The Legislature took bold action today that gets Californians back to work and puts California out in front once again," Brown said.

Brown pushed for the massive infrastructure project to accommodate expected growth in the nation's most populous state, which now has 37 million people. State and federal officials also said high-speed rail would create jobs.

"No economy can grow faster than its transportation network allows," U.S. Transportation Secretary Ray LaHood said in a statement. "With highways between California cities congested and airspace at a premium, Californians desperately need an alternative."

The bill authorizes the state to begin selling $4.5 billion in voter-approved bonds that includes $2.6 billion to build an initial 130-mile stretch of the high-speed rail line in the agriculturally rich Central Valley. That allows the state to draw another $3.2 billion in federal funding.

The first segment of the line will run from Madera to Bakersfield.

Senate Republicans blasted the decision, citing the state's ongoing budget problems. They said project would push California over a fiscal cliff. No GOP senators voted for the bill Friday.

The final cost of the completed project from Los Angeles to San Francisco is projected to be $68 billion.

"It's unfortunate that the majority would rather spend billions of dollars that we don't have for a train to nowhere than keep schools open and harmless from budget cuts," Sen. Tom Harman, R-Huntington Beach, said in a statement.

Dan Richard, chairman of the California High-Speed Rail Authority, which is managing the project, said California would have lost billions of dollars in federal aid if the Senate fails to pass the bill before adjourning Friday for a monthlong recess.

California entered a contract that called for the federal government to provide money for building the Central Valley segment if the state also put up its share, he said.

"Not only will California be the first state in the nation to build a high-speed rail system to connect our urban centers, we will also modernize and improve rail systems at the local and regional level," Richard said Friday.

California was able to secure more federal aid than expected after Florida, Ohio and Wisconsin turned down money.

Before Friday's vote, at least half a dozen Democrats in the 40-member Senate remained opposed, skeptical or uncommitted. Some were concerned about how the vote would impact their political futures, while others were wary about financing and management of the massive project.

In recent days, Democratic leaders included more state funding to improve existing rail systems in an effort to entice support for the bullet train.

The bill authorizes the state to sell nearly half of a $10 billion high-speed rail bond that voters approved four years ago under Proposition 1A. In addition to financing the first segment of high-speed rail, it allocates a total of $1.9 billion in bonds for regional rail improvements in Northern and Southern California.

The upgrades include electrifying Caltrain, a San Jose-San Francisco commuter line, and improving Metrolink commuter lines in Southern California.

One dissenter, Sen. Joe Simitian, D-Palo Alto, said public support had waned for the project, and there were too many questions about financing to complete it.

"Is there additional commitment of federal funds? There is not. Is there additional commitment of private funding? There is not. Is there a dedicated funding source that we can look to in the coming years? There is not," Simitian said.

The Bay Area Council, a group of business leaders from the San Francisco Bay and Silicon Valley areas, cheered the vote.

The bill, which already passed the state Assembly, heads to Brown for his signature.

Obama Makes 'No Apologies' for Health Care Law



In First Election Bus Tour, Defiant Obama Touts His Health Care Law

July 7, 2012

The Ticket - President Barack Obama promised cheering supporters in Ohio that he would "make no apologies" for his overhaul of health care and mocked rival Mitt Romney's apparent change of heart on his own approach in Massachusetts.

"When you hear all these folks saying, 'Oh, no, no, this is a tax, this is a burden on middle-class families,' let me tell you, we know because the guy I'm running against tried this in Massachusetts and it's working just fine--even though now he denies it," Obama told about 300 supporters at Dobbins Elementary School in the village of Poland.

The president brought up health care often on this week's two day bus tour--the first of this election cycle. On Friday, the president's reelection campaign promoted an interview with an NBC affiliate in Cincinnati in which he hit Romney for changing his tune on whether the individual mandate—the requirement that people have health insurance—is a penalty or a tax. Romney says it's a tax in Obamacare but a penalty in his own plan.

"One of the things that you learn as president is that what you say matters and your principles matter," Obama scolded in the interview. "And sometimes, you've got to fight for things that you believe in and you can't just switch on a dime."

The debate has flared because the Supreme Court upheld Obama's signature domestic policy achievement under Congress's taxing power. Republicans have seized on that to accuse the president of breaking a pledge not to raise taxes on middle-class families. The White House insists that the fine imposed is a penalty, not a tax.

"We're going to charge you a penalty to make sure that you're not unloading those costs on everybody else," Obama said in Poland. "It will affect less than 1 percent of the population, because most Americans are responsible and do the right thing. I make no apologies for it."

"We're going to keep it moving forward. It was the right thing to do two years ago, it's the right thing to do now, and we're going to keep moving," he said.

Obama's argument highlighted an interesting aspect of Campaign 2012: While pundits confidently predicted that he would not run on the health care law, which remains unpopular, the president rarely misses a chance to highlight it on the stump.

There is no doubt that the economy remains both the top issue on voters' minds and Obama's greatest vulnerability. But the president has shown no hesitation about making health care an integral part of this appeal to supporters.

Here he is, again, in Poland:

"I'm running because I continue to be convinced that in a country like ours, the greatest country on Earth, nobody should go bankrupt just because they get sick. I am proud of the work we did."

Here he is in Sandusky, Ohio, on Thursday:

"I'm running because the health care law that we passed was the right thing to do … we fought so hard to make that happen, and now the Supreme Court has ruled. It is time for us to move forward. We don't need to reargue the last two years. I'm willing to work with anybody who wants to make it work, who wants to improve health care in this country and lower costs for individual families. But I don't want to just keep on having political arguments that are based on politics and not on facts."

Here is part of what he said is in Maumee, Ohio, on Thursday:

"I'm running because I believe that in America, nobody should go bankrupt because they get sick. I'll work with anybody who wants to work with me to continue to improve our health care system and our health care laws. But the law I passed is here to stay.

And here is a very small sample of what he said in in Parma, Ohio on Thursday: "I couldn't be prouder of the work that we have done in getting this health care law passed."

In Parma, the president met—and embraced—Natoma Canfield, a cancer survivor whose letter about health care inspired him to fight for his overhaul. The letter reportedly hangs in the Oval Office.

More Americans Convinced of Climate Change After Extreme Weather

More Americans Convinced of Climate Change After Extreme Weather

July 7, 2012

The Lookout - Every summer it seems like a different kind of out-of-control weather pattern decides to strike. In the past month alone, we've experienced deadly Colorado wildfires, early-season heat waves and a wind-whipping hurricane, convincing formerly dubious Americans that climate change is actually real, according to the Associated Press.

"Many people around the world are beginning to appreciate that climate change is under way, that it's having consequences that are playing out in real time and, in the United States at least, we are seeing more and more examples of extreme weather and extreme climate-related events," Jane Lubchenco, head of the National Oceanic and Atmospheric Administration (NOAA), told the AP.

Climate change used to be a "nebulous concept," removed from everyday life, said Lubchenco. Not anymore. Extreme weather events have given the term actual meaning, making it more concrete.

"Perceptions in the United States...are in many cases beginning to change as [people] experience something first-hand that they at least think is directly attributable to climate change," she said.
She cited "skyrocketing" demand for NOAA's data from individuals and groups across America as one way to tell people are paying closer attention to the science behind the storms.

Although it's hard to say that a specific event was caused by climate change, the phenomenon does result in extreme weather incidents happening more frequently.

"Where there is more energy in a system, events such as fires, heat waves and storms" will occur more often, Tim Profeta, Founding Director of the Nicholas Institute for Environmental Policy Solutions at Duke University told Yahoo News. And if such episodes lead to an increase in climate awareness, well, that's a good thing, he says.

July 6, 2012

Drought Reaches Record 56% of Continental U.S.

Drought Reaches Record 56% of Continental U.S.

July 6, 2012

Live Science - The United States is parched, with more than half of the lower 48 states experiencing moderate to extreme drought, according to a report released today (July 5).

Just under 56 percent of the contiguous United States is in drought conditions, the most extensive area in the 12-year history of the U.S. Drought Monitor. The previous drought records occurred on Aug. 26, 2003, when 54.79 percent of the lower 48 were in drought and on Sept 10, 2002, when drought extended across 54.63 percent of this area.

When including the entire nation, the monitor found 46.84 percent of the land area meets criteria for various stages of drought, up from 42.8 percent last week. Previous records: 45.87 percent in drought on Aug. 26, 2003, and 45.64 percent on Sept. 10, 2002.

"The recent heat and dryness is catching up with us on a national scale," Michael Hayes, director of the National Drought Mitigation Center at the University of Nebraska-Lincoln, said in a statement. "Now, we have a larger section of the country in these lesser categories of drought than we've previously experienced" in the past 12 years.

The monitor uses a ranking system that goes from D0 (abnormal dryness) to D1 (moderate drought), D2 (severe drought), D3 (extreme drought) and D4 (exceptional drought).

At the lower end of the scale, moderate drought involves some damage to crops and pastures, and low water levels in streams, reservoirs or wells. Areas in exceptional drought would experience widespread crop and pasture losses and water shortages that lead to water emergencies. Currently, 8.64 percent of the country would meet criteria for either extreme or exceptional drought.

"During 2002 and 2003, there were several very significant droughts taking place that had a much greater areal coverage of the more severe and extreme drought categories," Hayes said. "Right now we are seeing pockets of more severe drought, but it is spread out over different parts of the country.

"It's early in the season, though. The potential development is something we will be watching," he added.

Further into the past, the United States has experienced some really serious droughts, including one in the 1930s, the Dust Bowl drought, and another in the 1950s, each of which lasted five to seven years and covered large swaths of the continental United States. Droughts are one of the most costly weather-related events in terms of economics and loss of life, according to the National Oceanic and Atmospheric Administration (NOAA). Between 1980 and today, 16 drought events cost $210 billion, according to a recent report.

While no single event like this year's extensive drought can be said to be the result of global warming, scientists say more extreme weather should be expected as the planet warms, according to a report compiled by the Intergovernmental Panel on Climate Change (IPCC) in 2011. That year, there were 12 $1-billion disasters.

In particular, the report authors predicted that with climate change there would be an increase in certain types of extreme weather, including daily high temperatures, heat waves, heavy precipitation and droughts, in some places.

The U.S. Drought Monitor is a joint endeavor by the National Drought Mitigation Center, NOAA, the U.S. Department of Agriculture and drought observers across the country.

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First Election in 80 Years with No Military Service on Either Ticket

Draft McDonnell? This Could Be First Election in 80 Years with No Military Service on Either Ticket

July 6, 2012

The Ticket - The last time a presidential election was held in which neither ticket included a former military service member, the Chicago Cubs had just played in the World Series, Al Capone was furnishing his prison cell, and a gallon of gas cost a dime.

For the first time in decades, it could happen again. (And we're not talking about a winning season for the Cubbies.) Of those rumored to be on Mitt Romney's short list for vice president, only one, Virginia Gov. Bob McDonnell, has served in the military. McDonnell attended the University of Notre Dame on an Army ROTC scholarship and served on active duty in Grafenwohr, Germany, and Newport News, Va., until 1981. McDonnell remained in the Army Reserves, and retired as a Lt. Colonel 16 years later.

Since 1944, at least one of the presidential candidates for a major party has spent time in the military. Neither President Barack Obama nor Vice President Joe Biden were eligible for the draft during the Vietnam War . Obama was 8 years old when the lottery was reinstated in 1969, and Biden was 28, making him too old. Romney was eligible, but received four deferments, first as a student and then for his mission work in France for the Church of Jesus Christ of Latter-day Saints. Of course, all could have enlisted in the service voluntarily at some point in their lives if they wanted to.

To find a time when military experience wasn't provided by a vice presidential candidate, you have to go back to 1932, when John Nance Garner joined Franklin D. Roosevelt's campaign against Herbert Hoover and Charles Curtis. (Roosevelt did serve as Assistant Secretary of the Navy, a civilian position, during the Wilson administration.)

Most of those campaigning in recent years for the job of commander-in-chief had military experience: John McCain attended the U.S. Naval Academy and was held prisoner while fighting in Vietnam. John Kerry fought in Vietnam and George W. Bush served in the Air National Guard. Al Gore was a specialist in the Army, and both Bob Dole and George H.W. Bush fought in World War II. Walter Mondale was an Army corporal from 1951-53; Ronald Reagan was an Army captain and Jimmy Carter spent time as a lieutenant in the Navy.

The New York Times this week unveiled a helpful infographic that charts the careers of eight possible contenders for the Republican vice presidential slot that includes McDonnell, New Jersey Gov. Chris Christie, Louisiana Gov. Bobby Jindal, Florida Sen. Marco Rubio, South Dakota Sen. John Thune, Ohio Sen. Rob Portman, former Minnesota Gov. Tim Pawlenty and Wisconsin Rep. Paul Ryan. For most, their years before their first election were spent as private attorneys, lobbyists and businessmen.

Not included in the Times piece were female possibilities, including New Hampshire Sen. Kelly Ayotte, Washington Rep. Cathy McMorris Rodgers and New Mexico Gov. Susana Martinez. None of these women served either, although Ayotte and McMorris Rodgers are both married to retired servicemen.

July 5, 2012

After Destroying the Mammal Populations in the Florida Everglades, Invasive Pythons Go After Bird Nests

Florida's Invasive Pythons Go After Bird Nests

Not content to be waiting predators, they now are searching out and devouring eggs

April 6, 2012

Live Science - Burmese pythons, native to southern Asia, have taken up a comfortable residence in the state of Florida, especially in the Everglades. In addition to out-competing native wildlife for resources and habitat, the pythons are eating the native wildlife.

After destroying the mammal populations in the Florida Everglades, pythons have turned to attacking birds to feed their 16-foot-long hunger. The snakes are not only eating the area's birds, but also the birds' eggs straight from the nest.

"This finding is significant because it suggests that the Burmese python is not simply a sit-and-wait predator, but rather is opportunistic enough to find the nests of birds," study researcher Carla Dove of the Smithsonian Museum of Natural History said in a statement. "Although the sample size is small, these findings suggest that the snakes have the potential to negatively affect the breeding success of native birds."

Rangers started noticing the Burmese python's presence in 2000, when two snakes were removed from national lands. The number of pythons has skyrocketed, with more than 300 pythons being removed from the Everglades every year since 2007. Scientists suspect initially these invasive species escaped from homes that were keeping them as household pets.

Researchers don't know their true numbers, but estimate at least tens of thousands of the giant snakes inhabit the National Everglades Park. Their presence hasn't just terrorized rangers; it has also dramatically affected local mammal populations.

The researchers monitored the python's diet by combing through their stomach contents. A previous study of 300 pythons captured in the Everglades National Park found that more than 25 species of birds made up about 25 percent of the python's diet.

In the latest study, the researchers describe three cases in which they've found eggs inside pythons, proof that the invasive snakes are attacking nests. Most snakes that eat eggs have special adaptations to puncture the shells, but because the pythons are so large, and eat relatively small eggs, they can just swallow them whole, the researchers suspect.

The three cases include a 14-pound (about 6 kilogram) male python stretching some 8.5 feet (about 2.6 meters) in length, which they collected near a house in Florida's Miami-Dade County. The snake threw up 10 guinea fowl eggs soon after it was captured. The team discovered the remains of two bird eggs in another python collected for the study — a female weighing 30 pounds (about 13 kg), with a length of more than 10 feet (3 m).

The shell fragments from the two bird eggs were analyzed and compared with eggshell samples in the Smithsonian collection. They turned out to be from a bird called a limpkin, a large wading bird found in marshes and listed as a "species of special concern" by the Florida Fish and Wildlife Conservation Commission.

"Our observations confirm that invasive Burmese pythons consume not only adult birds but also eggs, revealing a previously unrecognized risk from this introduced predator to nesting birds," Dove said. "How frequently they are predating on bird eggs is hard to know."

The study is detailed in the March 2012 issue of the journal Reptiles & Amphibians: Conservation and Natural History.

July 3, 2012

Flashback: Ruling Elite Plan to Transform Cash into Electronic Information with Cellphone-linked Bank Accounts, Using Stores that Exist in Every Neighborhood and Every Village as Banking Surrogates

The powers-that-be can’t make cash go away, but they can make it easier to transform cash into electronic information, which is all a bank account is, really. Once money is “de-materialized,” it can be sent around electronically at very low cost. The fastest, most convenient way to achieve this transformation globally is to use the stores that exist in every neighborhood and every village as banking surrogates.

Fortunately, the spread of mobile phones across the developing world is already making this transition possible. In Africa alone, twice the number of people who have bank accounts have mobile phones. Banking transactions through mobile phones draw on an existing infrastructure, allowing “banking beyond branches” to occur for both financial service providers and their customers in rural areas. By working together, financial institutions, telecom companies, and retail networks are working to vastly expand access to electronic and mobile-banking services, and even to switch to electronic delivery of social welfare transfers and other assistance.

Imagine if every person had access to a transactional account via an electronic network. Beyond access to a savings account, clients could also use such networks for remittances and other person-to-person transfers and payments (and government would use the electronic platforms for social welfare and other government-to-person payments — which currently reach approximately 170 million low-income households). The record of these payments could provide the basis of a financial history. Policymakers and regulators also have a lot to gain. The financial identities promulgated by massive financial access via electronic systems make transactions more visible and traceable.

To Help the Poor, Get Rid of Their Cash

December 31, 2011

Jamie Zimmerman and Ignacio Mas (Christian Science Monitor) – The recent ad spot for M-Kesho, the groundbreaking mobile phone-linked bank account launched earlier this year in Kenya, is endearingly playful. To gently teasing music, a man with a jar of coins digs a gigantic hole in an empty grass field. He sticks his jar deep in the mud, but finds that the hole he’s dug is now too deep to get out of.
“There are easier ways to look after your money,” a voiceover tells us.
No kidding.

In the fight against poverty, achieving global access to financial services holds enormous potential. Even the poorest need tools to help maintain their daily needs, prepare for sudden adverse events like illness, and build assets to pull themselves out of poverty. Saving is the best tool both to reduce the risk of destitution and to increase wealth. Yet more than 2.5 billion people today lack access to formal financial services, which could help them achieve these feats.

Not long ago, conventional wisdom held that the poor cannot and do not save. Now, the imperative of formal savings services for the bottom of the pyramid is finally getting its well-deserved spotlight. On November 12 at the G20, world leaders put financial inclusion among the nine core pillars of economic growth in their Action Plan for Development. Four days later, the Bill & Melinda Gates Foundation made a further $500 million commitment to financial inclusion, and in particular, access to savings accounts.

Cash is an obstacle

What stands in the way of global access to financial services? It may come as a surprise, but the single biggest obstacle is cash. In short, cash is expensive.

The poor tend to live in an entirely cash-based economy. But banks find it too costly to sustain branches in disadvantaged areas to collect the small amounts of hard cash that poor people can save. So poor customers have to travel miles just to make a deposit — wasting time and running up transport costs.

We can’t make cash go away. But we can make it easier to transform cash into electronic information, which is all a bank account is, really. Once money is “de-materialized,” it can be sent around electronically at very low cost. The fastest, most convenient way to achieve this transformation globally is to use the stores that exist in every neighborhood and every village as banking surrogates.

Fortunately, the spread of mobile phones across the developing world is already making this transition possible. In Africa alone, twice the number of people who have bank accounts have mobile phones. Banking transactions through mobile phones draw on an existing infrastructure, allowing “banking beyond branches” to occur safely for both financial service providers and their customers in rural areas.

By working together, financial institutions, telecom companies, and retail networks are working to vastly expand access to electronic and mobile-banking services, and even to switch to electronic delivery of social welfare transfers and other assistance.

Kenya’s M-Pesa, the mobile money transfer service that began in 2007, is now used by more than half of the adult population. The secret: you can deposit and withdraw at any of 20,000 stores. That’s 20 times the number of Kenya’s bank branches.

A huge opportunity

Electronic banking platforms like mobile phones and point-of-sale devices that leverage mobile technology hold the promise of providing poor savers with the proximity and liquidity they need. But the opportunity is actually much larger.

Imagine if every person had access to a transactional account via an electronic network that was convenient, affordable, and trusted. Beyond access to a savings account, clients could also use such networks for remittances and other person-to-person transfers and payments. Vitally, the record of these payments could provide the basis of a financial history, in turn providing customers with access to credit products, and bolstering entrepreneurship.

Policymakers and regulators also have a lot to gain. The financial identities promulgated by massive financial access via electronic systems reduce the informal economy, making transactions more visible and traceable. At the same time, electronic platforms can improve the efficiency of social welfare and other government-to-person payments — which currently reach approximately 170 million low-income households worldwide by reducing the costs of delivering cash to poor beneficiaries.

As long as cash dominates the economic lives of the poor, and the systems that service them, massive access to financial services, including savings, will remain an elusive goal. It is time to get cash out of the way and put financial services in the palm of every hand, freeing up the poor's time and resources to invest in their small businesses, health care, and education.

Jamie Zimmerman is director of the Global Assets Project at the New America Foundation. Ignacio Mas is deputy director of the Financial Services for the Poor team at the Bill & Melinda Gates Foundation.

Read More...

July 2, 2012

Flashback: Hidden Spy Tools, Like Bugs in Cell Phones and Other Appliances, are Tracking You

Malware, four short lines of computer code hidden among millions of lines of computer programming language that run your cell phone and all its applications, can allow someone to spy on you using your cell phone, and you will have no idea it's even happening. These four lines of instructions hide a program that allows the person who installed it on your phone to take every bit of information from your cell phone: your pictures, your personal addresses, your data, etc. The spyware is a lurking danger that turns your cell phone into a secret listening device, an instrument used to spy against you. The spyware also allows someone to listen in on cell phone calls in real time, as they are happening, and allows someone to track your movements in real time. Even with your cell phone turned off, investigators could still dial in and listen to the conversation while standing several miles away. Your cell phone becomes a monitor of you and the use of your phone. As cell phones are getting more advanced, so is the spyware: for example, there's an exploit that allows someone to say 'open up that video camera and let me record everything happening right now.'

Mobile phones are becoming a bigger part of our lives, and we could start using them as combined diaries and wallets. Among other things, the next generation of cell phones will be used to keep tabs on our health, store cash and make transactions. By next year about 1 in 3 new smartphones will have accelerometers; pressure sensors and gyroscopes will follow, and soon your handset may keep tabs on your health and pay your bills too. Your phone could act as a wellness diary, and start to integrate data with the primary health records kept by your doctor.

These changes could well be exploited in much the same way that email and the internet can be used to "phish" for personal information such as bank details. M-commerce, in which phones are used to transfer money or pay for shopping, is already expanding rapidly. Phones with built-in fingerprint scanners are already on the market, and Sharp has experimented with face recognition on handsets, though hackers have recently shown that face recognition is easily defeated with just a photograph.Meanwhile, Apple is thought to be considering adding biometric security measures, such as a fingerprint scanner, to future iPhones.

Cell Phone Spy Dangers

June 20, 2010

CBS4, Miami - A CBS4 I-Team investigation into your safety and security raises troubling questions about your cell phone and how it might be used against you. We're not talking about how a cell phone and its records could be used in a court of law, although that's a possibility too, but how it can be used as a tool to spy on your life by people meant to do you harm.

What's worse, the technology is so advanced that experts say people can spy on you using your cell phone and you will have no idea it's even happening.

I-Team investigator Stephen Stock spent the last six months researching how this technology works.

Talking, texting and tweeting you see it all the time.

If they appear to be everywhere, the US Census bureau says they truly are. In a nation of 309 million people officials estimate there are as many as 200 million cell phones.

The majority of Americans use all these cell phones to talk, text or tweet.

But all this high tech communication hides a dark and troubling danger.
"I don't think the general public is aware how insidious this can be," said private investigator and cell phone spyware expert Tim Wilcox.
Wilcox owns and runs one of the premier private investigative companies in the country, International Investigators, Inc. International Investigators does a lot of things. But one of the company's specialties and expertise is uncovering and exposing hidden spy tools like bugs in cell phones and other appliances.

Click here to go to the International Investigators' website.
"It takes about 90 seconds to download the spyware, and you're in business," said Wilcox of some versions of this software that can be loaded onto someone's cell phone.
The spyware is a lurking danger that turns your cell phone into a secret listening device, an instrument used to spy against you. Worse yet, you'll likely never know it is on your phone.
"There could be anywhere from three to five or six million cell phones that are infected with spyware (at any one time)," said Wilcox.
This spyware, otherwise called malware, can be found through a simple search on the Internet. The software can be loaded onto your phone in a matter of minutes or even seconds. Once it is on your phone and operating, it can turn your cell phone against you.
"I put $70 malware onto a phone (for demonstration) through blue tooth and then onto this computer," said Daniel Smith, an expert in uncovering and defeating this type of spyware.
Smith, a recent graduate of Purdue University's College of Technology, is an expert at finding and getting rid of malware on all kinds of computers and cell phones. Smith works for International Investigators, Inc. And he travels the country investigating complaints of people who believe their cell phones are being used to spy on them.
"That's the file name that's controlling my phone," Smith said as he showed the I-Team a small piece of computer code, four short lines, hidden among millions of lines of computer programming language that run his cell phone and all its applications.
Smith demonstrated for the CBS4 I-Team how easy it can be to install and listen in, and how hard it is to detect that the malware is even present.
"This is what we're looking for?" asked I-Team investigator Stephen Stock pointing to the computer screen. "Four lines of code?"

"Four lines of code," said Smith. "That is the file in the computer, the spyware."
These four lines of instructions hide a program that allows the person who installed it on your phone to take every bit of information from your cell phone, your pictures, your personal addresses, your data, your life.
"Now you have a list of everything that's on my phone," said Smith as he showed how the spyware quickly downloaded everything from his cell phone for the I-Team to view on another, disconnected computer.
To find out exactly how this all works, the CBS4 I-Team bought and installed several versions of spyware on anchor Jawan Strader's blackberry. We did all of this with his knowledge and participation.

During the installation and running of some versions of the software, the I-Team ran into several glitches. Sometimes the software allowed us to "spy" and sometimes it didn't.

The I-Team discovered this type of spyware doesn't always work on all cell phones. The older and less sophisticated the phone, apparently the harder it is to use them to "spy."

But once the I-Team got the software working, the capability was scary. The I-Team could read all of Jawan's e-mails. The I-Team read all of his text messages. I-Team investigator Stephen Stock also got alerts on his cell phone every time Jawan got a call, an e-mail or a text. That way Stock could monitor Jawan's incoming communication at all times.

And even though Jawan met meeting behind closed doors with news director Cesar Aldama and assistant news director Nick Bourne, even with the blackberry turned off, investigator Stock could still dial in and listen to the conversation while standing several miles away.

And the closed-door meetings' participants would never have known that Stock was listening had the I-Team not told them. Remember the cell phone was off. Despite that, Stock was able to use the spyware to dial in and listen using the Blackberry's speaker feature. Experts say that same thing can be done using a cell phone's camera feature.

The spyware also allows someone to listen in on cell phone calls in real time, as they are happening.

The I-Team also used the spyware to track our expert, Daniel Smith's, movements in real time. All while he was in Indiana, as the I-Team sat in Miami.

All of this is illegal in the United States without a court warrant. However, this spyware software is sold on the Internet by offshore companies.

Our experts say as many as 5 to 6% of all cell phones in the US may have once had or now have this spyware on them.
"This is a stack of the complaints we get from people worried about their phones being infected with spyware," said Tim Wilcox as he showed the I-Team a thick folder filled with e-mails and letters from people complaining that someone apparently is spying on them.

"And you get three or four of these a week?" asked I-Team investigator Stock.

"We get three to four every day," replied Wilcox.
To learn more about the risks associated with spyware on your cell phone, the I-Team also traveled to Purdue University in West Lafayette, Indiana, to talk to one of the world's experts on cyber-security, Richard Mislan.
"It (the cell phone) becomes a monitor of you and the use of your phone," said Mislan, Assistant Professor at Purdue's College of Technology.
For more on Purdue's College of Technology's click here.

Assistant Professor Mislan also serves on the FBI's Cyber Crimes Task Force, is Editor of Small Scale Digital Device Forensics Journal, and is director of Mobile Forensics World.

Mislan and his students at Purdue's College of Technology research just about anything you can think of when it comes to cell phones.

Mislan says ability of the spyware technology to spy is limited only by your phone's capabilities.
"The phones are getting more advanced," said Mislan. "And so -- say we added a video at this point or a video camera option on this phone. Well maybe now there's an exploit that allows me to say 'open up that video camera and let me record everything happening right now.'"
Mislan's office is filled with old, used phones used in his research. Some of the old phones date back to the beginning of cell phones. Others are the most advanced, high tech mobile tools on the market.

Mislan said he worries that the public and even government regulators don't realize the safety and security risks this spyware poses to the public.
"Eventually something is going to happen for us to really step back (and assess and do something about this)," said Mislan.
While he doesn't like to talk about his clients, and said there are things he is prohibited from saying, research papers published by Mislan show he and his team have done work for the CIA, the FBI, the National Security Agency and military intelligence.

As for the risk to the public posed by this technology, Mislan speaks freely and unequivocally.
"The more high profile phones you go, the smarter they are, the more data that can be exploited," said Mislan.
In fact, the federal government is using this technology to check out American citizens without a warrant.

The I-Team learned of a half dozen cases across the country in states as varied as New Jersey, West Virginia, Maryland, Texas, New York and Pennsylvania, where federal magistrates were asked to throw out cases because federal agents had tracked people in real time through their cell phone. In these cases, the cell phone monitoring took place without a hearing, without a warrant without even legal probable cause.

One of the cases has now gone to a Federal Court of Appeals in Pennsylvania.
"It's an incredibly intrusive thing for the government to be able to track you," said Jay Stanley of the American Civil Liberties Union.
Stanley heads the technology and liberty program at the American Civil Liberties headquarters in Washington, D.C. The ACLU has joined some of the court cases listed above in fighting some of the federal prosecutors' actions.
"It's not that hard if you're a bad guy then they can get a warrant on you. If you're not a bad guy then why do they want to track you?" said Stanley.
Stanley, the ACLU and the Electronic Frontier Foundation have joined efforts in at least two federal cases trying to stop this use of spying on citizens through cell phones without a court order.
"The government is trying to claim they should be able to get location information about your phone both where you've been in the past and also in some cases tracking you in real time without going through the Fourth Amendment," said Stanley. "And without showing a probable cause that you're involved in wrongdoing and getting a warrant."
Click here for a link to the Electronic Frontier's Foundation and a listing of the cases in question.

So far, in all but one case the federal magistrates, judges, even an appeals court, have ruled against the federal investigators and for requiring proof of probable cause.
"If I told somebody back in 1975, 'You know what, in 30 years every American practically is going to be carrying a tracking device with them that tells the government everywhere they go live and in real time,'" said Stanley. "That person would have said I guess that means the Soviet Union is going to win the Cold War."
Uncovering The Threat Of Cell Phone Spyware

The Pocket Spy: Will Your Smartphone Rat You Out?

October 14, 2009

NewScientist - ... A decade ago, our phones' memories could just about handle text messages and a contacts book. These days, the latest smartphones incorporate GPS, Wi-Fi connectivity and motion sensors. They automatically download your emails and appointments from your office computer, and come with the ability to track other individuals in your immediate vicinity. And there's a lot more to come. Among other things, you could be using the next generation of phones to keep tabs on your health, store cash and make small transactions -- something that's already happening in east Asia (see "Future Phones" below).

These changes could well be exploited in much the same way that email and the internet can be used to "phish" for personal information such as bank details. Indeed, some phone-related scams are already emerging, including one that uses reprogrammed cellphones to intercept passwords for other people's online bank accounts.
"Mobile phones are becoming a bigger part of our lives," says Andy Jones, head of information security research at British Telecommunications. "We trust and rely on them more. And as we rely on them more, the potential for fraud has got to increase."
So just how secure is the data we store on our phones? If we are starting to use them as combined diaries and wallets, what happens if we lose them or they are stolen? And what if we simply trade in our phones for recycling?

According to the UK government's Design and Technology Alliance Against Crime (DTAAC), 80 per cent of us carry information on our handsets that could be used to commit fraud -- and about 16 per cent of us keep our bank details on our phones. I thought my Nokia N96 would hold few surprises, though, since I had only been using it for a few weeks when I submitted it to DiskLabs. Yet their analysts proved me wrong ...

In February, Google launched Latitude, networking software for smartphones that shares your location with friends. It can be turned off, but campaign group Privacy International is concerned by Latitude's complex settings and says it is possible the program could broadcast your location to others without your knowledge.
"Latitude could be a gift to stalkers, prying employers, jealous partners and obsessive friends," the organisation warns.
A phone-based calendar could also leave you vulnerable. Police in the UK have already identified burglaries that were committed after the thief stole a phone and then targeted the individual's home because their calendar said they were away on holiday, says Joe McGeehan, head of Toshiba's research lab in Europe and leader of DTAAC's Design Out Crime project, which recently set UK designers the challenge of trying to make cellphones less attractive to people like hackers and identity thieves.
"It's largely opportunistic, but if you've got all your personal information on there, like bank details, social security details and credit card information, then you're really asking for someone to 'become' you, or rob you, or invade your corporate life," McGeehan says ...
Future Phones

By next year about 1 in 3 new smartphones will have accelerometers. Pressure sensors and gyroscopes will follow, and soon your handset may keep tabs on your health and pay your bills too.

For example, Nokia is experimenting with adding biosensors capable of monitoring heart and breathing rates, as well as glucose and oxygen levels in the blood.
"Your phone could act as a wellness diary, and start to integrate data with the primary health records kept by your doctor," says Marc Bailey, a researcher at the Nokia Research Centre in Cambridge, UK.
Meanwhile mobile commerce, or M-commerce, in which phones are used to transfer money or pay for shopping, is already expanding rapidly. Cellphone users in Japan can buy train or airline tickets with their handset, while people in Afghanistan, the Philippines and east Africa can use their handsets to transfer money to each other.
"M-commerce is coming, and the expectation is that it will become prevalent in the UK and other European countries within four years," says Joe McGeehan, head of Toshiba's research lab in Europe.

Though these developments should bring many benefits, security is expected to become a problem. "As soon as you put money on anything, criminals become more interested in it," says McGeehan.

To counter this, manufacturers are developing more secure ways of encrypting data on handsets. According to Nokia, users will be able to alter security settings depending on how much data they want available at any one time. Phones with built-in fingerprint scanners are already on the market, and Sharp has experimented with face recognition on handsets, though hackers have recently shown that face recognition is easily defeated with just a photograph.

Meanwhile, Apple is thought to be considering adding biometric security measures, such as a fingerprint scanner, to future iPhones. However effective these security features are, though, they will only work when turned on.

Phone Security Q & A If I delete a message or photo on my phone will it disappear completely?

Data often remains on a phone's memory chip until it is overwritten. Phones also create extra copies that are spread around its memory. It is possible to overwrite files by copying new data onto the phone. Commercial software will "zero fill" a memory or SIM card to overwrite it.

Where do recycled handsets end up?

According to Andy Jones, a security specialist at British Telecommunications, the main markets for recycled phones are Nigeria and China, "both of which are regarded as areas posing a high threat to the security of information."

What if I smash up my SIM card?

Forensic analysts can often recreate SIM cards using the data that's stored on the handset. How much information they can retrieve depends on the phone model. It is also possible to stick a damaged SIM card back together and then extract its data.

Can my movements be tracked, even if I don't have GPS on my phone?

A technique called cell site analysis can be used to track someone to within 10 to 15 metres, using cellphone masts to triangulate their position. GPS can give more detailed information, such as your altitude or the speed you are travelling at.

Can my handset be used to spy on me?

If someone can get direct access to your handset, they can install software that lets them listen to conversations and monitor text messages without your knowledge. Without direct access, they can still monitor your phone usage remotely, but not eavesdrop on your conversations. It is also possible to send text messages that look like they come from someone else -- a technique called SMS spoofing. This makes it possible to upload messages to someone else's Twitter account, or send your boss rude messages using a colleague's number.

How do I improve my phone's security?

Switch on all security options such as handset PIN codes. Download software to wipe your phone before you throw it away or send it for recycling. Consider buying a handset with fingerprint recognition security. Alternatively, add software that can find your phone or even take control of it remotely should it be stolen, allowing you to encrypt all data stored on it, disable it entirely or even make it emit a loud alarm.

Is it legal for my employer or partner to send my cellphone for analysis?

If it is a company phone, or was a present from your partner, beware. Chances are that they can claim legal ownership and so can do what they want with it.