Big Pharma Pills will have Nano devices to track patients

Natural News

The emerging field of nanotechnology is currently gaining a lot of attention across many industries. Nanotechnology allows scientists to manipulate individual atoms and molecules to create unique materials and even micro-scale devices, and this is leading to a wide range of applications in clothing, textiles, electronics and even food and medicine.

Sounds great, right? Except for the fact that, like genetic modification of food crops, nanotechnology tampers with Mother Nature in a way that’s largely untested for safety. And here’s something really bizarre: The pharmaceutical industry may soon begin using nanotechnology to encode drug tablets and capsules with brand and tracking data that you swallow as part of the pill.

To really explain how this works, let me simplify how nanotechnology works so you’ll see why this is so bizarre (and potentially dangerous). Instead of using materials and elements as they’re found in nature to build and construct things, nanotechnologists are deconstructing the basic building blocks of these materials and elements to make completely new ones. In other words, nanoscientists are reconstructing the molecular building blocks of our world without yet knowing what it will do to humans and to the environment.

The long-term consequences of nanotechnology are still largely unknown because not a single formidable study has ever been conducted on this emerging science that proves it to be safe. In fact, most of the studies that have been conducted on nanotechnology show that it’s actually detrimental to health and to the environment (which I’ll cover further, below).

But that hasn’t stopped Big Pharma from potentially adopting it for use in a new tracking and identification system that could be integrated into the very drug pills and capsules that millions of people swallow every day.

By the way, I’ve also posted a video explaining all this. Check it out here: http://naturalnews.tv/v.asp?v=93626…

Nano-encrypted bar code in every dose

Now don’t get me wrong. Big Pharma isn’t the only industry using nanotechnology despite a complete lack of safety evidence. “Nanoparticles” are present in sunscreens, fabric protectors, plastic food liners, and other products. But what’s different about the nanoparticles soon to be found in a pill near you is that they are capable of storing data about where the drug was made, when it was made, and where it has traveled.

It’s a lot like the bar codes used on parcels to track them along their shipping journeys, except that in the drugs, it’s a molecular bar code that people will be swallowing. During digestion of the pill, the nano data bits will be distributed throughout your body and can become lodged in your body’s tissues.

A company that’s introducing this system for pharmaceuticals, says it this way on its website:

“In the NanoEncryption process, NanoCodes are incorporated directly onto tablets, capsules and vial caps. These codes may be associated with an unlimited amount of manufacturer-determined data, including product information (strength and expiration date), manufacturing information (location date, batch and lot number) and distribution information (country, distributor, wholesaler and chain).”

So if you take these drugs, you’ll be swallowing nano “hard drives” that can store data — data that will be distributed throughout your body and can be read by medical technicians who could then track what drugs you took in the past. And what’s the rationale for this? According to the company, it’s to “defen[d] against pharmaceutical counterfeiting and illegal diversion”.

It sounds like a good idea, right? Unfortunately, there’s a whole lot more to this technology than meets the eye.

Editor’s Note: UPDATE 1 — The company originally mentioned in this story now denies what NaturalNews reported. Their own website text as quoted in this story, was apparently misleading, and they now claim they do not use nano “material” of any kind to achieve their nano encoding. We are temporarily removing the name of this company from this story while we attempts to sort out the truth of the matter. In the past, we’ve had many company rush to change their own website text after we ran a story on them. All quotes published in this story were 100% accurate at the time of publication, and we made a good faith attempt to report this story accurately.

$1.2 Quadrillion Derivatives Market Dwarfs World GDP

AOL Finance

One of the biggest risks to the world’s financial health is the $1.2 quadrillion derivatives market. It’s complex, it’s unregulated, and it ought to be of concern to world leaders that its notional value is 20 times the size of the world economy. But traders rule the roost — and as much as risk managers and regulators might want to limit that risk, they lack the power or knowledge to do so.

A quadrillion is a big number: 1,000 times a trillion. Yet according to one of the world’s leading derivatives experts, Paul Wilmott, who holds a doctorate in applied mathematics from Oxford University (and whose speaking voice sounds eerily like John Lennon’s), $1.2 quadrillion is the so-called notional value of the worldwide derivatives market. To put that in perspective, the world’s annual gross domestic product is between $50 trillion and $60 trillion.

To understand the concept of “notional value,” it’s useful to have an example. Let’s say you borrow $1 million to buy an apartment and the interest rate on that loan gets reset every six months. Meanwhile, you turn around and rent that apartment out at a monthly fixed rate. If all your expenses including interest are less than the rent, you make money. But if the interest and expenses get bigger than the rent, you lose.

You might be able to hedge this risk of a spike in interest rates by swapping that variable rate of interest for a fixed one. To do that you’d need to find a counter party who has an asset with a fixed rate of return who believed that interest rates were going to fall and was willing to swap his fixed rate for your variable one.

The actual cash amount of the interest rates swaps might be 1% of the $1 million debt, while that $1 million is the “notional” amount. Applying that same 1% to the $1.2 quadrillion derivatives market would leave a cash amount of the derivatives market of $12 trillion — far smaller, but still 20% of the world economy.

Getting a Handle on Derivatives Risk

How big is the risk to the world economy from these derivatives? According to Wilmott, it’s impossible to know unless you understand the details of the derivatives contracts. But since they’re unregulated and likely to remain so, it is hard to gauge the risk.

But Wilmott gives an example of an over-the-counter “customized” derivative that could be very risky indeed, and could also put its practitioners in a position of what he called “moral hazard.” Suppose Bank 1 (B1) and Bank 2 (B2) decide to hedge against the risk that Bank 3 (B3) and Bank 4 (B4) might fail to repay their debt to B1 and B2. To guard against that, B1 and B2 might hedge the risk through derivatives.

In so doing, B1 and B2 might buy a credit default swap (CDS) on B3 and B4 debt. The CDS would pay B1 and B2 if B3 and B4 failed to repay their loan. B1 and B2 might also bet on the decline in shares of B3 and B4 through a short sale.

At that point, any action that B1 and B2 might take to boost the odds that B3 and B4 might default would increase the value of their derivatives. That possibility might tempt B1 and B2 to take actions that would boost the odds of failure for B3 and B4. As I wrote back in September 2008 on DailyFinance’s sister site, BloggingStocks, this kind of behavior — in which hedge funds pulled their money out of banks whose stock they were shorting — may have contributed to the failures of Bear Stearns and Lehman Brothers.

It’s also the sort of conduct that makes it extremely difficult to estimate the risk of the derivatives market.

How Positive Feedback Loops Crash Markets

Another kind of market conduct that makes markets volatile is what Wilmott calls positive and negative feedback loops. These relatively bland-sounding terms mask some really scary behavior for investors who are not clued into it. Wilmott argues that a positive feedback loop contributed to the 22.6% crash in the Dow back in October 1987.

In the 1980s, a firm run by some former academics came up with the idea of portfolio insurance.

Their idea was that if investors are worried about their assets losing value, they can buy puts — the option to sell their investments at pre-determined prices. They can sell everything — which would be embarrassing if the market then started to rise — or they could sell a fixed proportion of their portfolio depending on the percentage decline in a particular stock market index.

This latter idea is portfolio insurance. If the Dow, for example, fell 3%; it might suggest that investors should sell 20% of their portfolio. And if the Dow fell 20%, it would indicate that investors should sell 100% of their portfolio.

That positive feedback loop — in which a stock price decline leads to more selling — boosts market volatility. Portfolio insurance causes more investors to sell as the market declines by, say 3%, which causes an even deeper plunge in the value of investors’ holdings. And that deeper decline leads to more selling. Before you know it, many investors are selling everything.

The portfolio insurance firm started off with $5 billion, but as its reputation spread, it ended up managing $50 billion. In 1987, that was a lot of money. So when that positive feedback loop got going, it took the Dow down 22.6% in a day.

The big problem back then was the absence of a sufficient number of traders using a negative feedback loop strategy. With a negative feedback loop, a trader would sell stocks as they rose and buy them as they declined. With a negative feedback loop strategy, volatility would be far lower.

Unfortunately, data on how much money has been going into negative and positive feedback loop strategies is not available. Therefore, it’s hard to know how the positive feedback loops have gained such a hold on the market.

But it is not hard to imagine that if a particular investor made huge amounts of money following a positive feedback loop strategy, other investors would hear about it and copy it. Moreover, the way traders get compensated suggests that it’s better for them to take more and more risk to replicate what their peers are doing.

Traders Make More Money By Following the Pack

There is a clear economic incentive for traders to follow what their peers are doing. According to Wilmott, to understand why, it helps to imagine a simplified example of a trading floor. Picture yourself as a new college graduate joining a bank’s trading floor with 100 traders. Those 100 traders each trade $10 million: They “win” if a coin toss lands on heads and “lose” if it lands on tails. But now imagine you’ve come up with a magic coin that has a 75% chance of landing on heads — you can make a better bet than the other 100 traders with their 50-50 coin.

You might think that the best strategy for you would be to bet your $10 million on that magic coin. But you’d be wrong. According to Wilmott, if the magic coin lands on a head but the other 100 traders flip tails, the bank loses $1 billion while you get a relatively paltry $10 million.

The best possible outcome for you is a 37.5% chance that everyone makes money (the 75% chance of you tossing heads multiplied by the 50% chance of the other traders getting a head). If instead, you use the same coin as everyone else on the floor, the probability of everyone getting a bonus rises to 50%.

When Traders Say ‘Jump,’ Risk Managers Ask ‘How High?’

Traders are a huge source of profit on Wall Street these days and they have an incentive to bet together and to bet big. According to Wilmott, traders get a bonus based on the one-year profits of those on their trading floor. If the trading floor makes big money, all the traders get a big bonus. And if it loses money, they get no bonus — but at least they don’t have to repay their capital providers for the losses.

Given that bonus structure, a trader is always better off risking $1 billion than $1 million. So if the trader, who is the king of the hill at the bank, asks a lowly risk manager to analyze how much risk the trader is taking, that risk manager is on the spot. If the risk manager comes back with a risk level that limits how big a bet the trader can take, the trader will demand that the risk manager recalculate the risk level lower so the trader can take the bigger bet.

Traders also manipulate their bonuses by assuming the existence of trading profits before they are actually realized. This happens when traders get involved with derivatives that will not unwind for 20 years.

Although the profits or losses on that trade have not been realized at the end of the first year, the bank will make an assumption about whether that trade made or lost money each year. Given the power traders wield, they can make the number come out positive so they can receive a hefty bonus — even though it is too early to tell what the real outcome of the trade will be.

How Trader Incentives Caused the CDO Bubble

Wilmott imagines that this greater incentive to follow the pack is what happened when many traders were piling into collateralized debt obligations. In Wilmott’s view, CDO risk managers who had analyzed a future scenario in which housing prices fell and interest rates rose would have concluded that the CDOs would become worthless under that scenario. He imagines that when notified of that possible outcome, CDO traders would have demanded that the risk managers shred that nasty scenario so they could keep trading more CDOs.

Incidentally, the traders who profited by going against the CDO crowd were lone wolves whose compensation did not depend on following the trading floor pack. This reinforces the idea that big bank compensation policies drive dangerous behavior that boosts market volatility.

What You Don’t Understand, You Can’t Properly Regulate

Wilmott believes that derivatives represent a risk of unknown proportions. But unless there is a change to trader compensation policies — one which would force traders to put their compensation at risk for the life of the derivative — then this risk could remain difficult to manage.

Unfortunately, he thinks that regulators aren’t in a good position to assess the risks of derivatives because they don’t understand them. Wilmott offers training in risk management. While traders and risk managers at banks and hedge funds have taken his course, regulators so far have not.

And if regulators don’t understand the risks in derivatives, chances are great that Congress does not understand them either.

Cybersecurity: The Takeover of the Internet

By Luis R. Miranda
The Real Agenda
May 1, 2010

In the United States, a recent version of a bill was passed by the House Of Representatives, which will give the Federal cybersecurityCommunications Commission (FCC) complete dominion over the web. The bill includes the creation of a new sector of internet security which will include the training, research and coordination of cyberspace. It allows the National Institute of Standards and Technology (NIST) to create a program to recruit children from Kindergarten up to 12 years old to teach them how to carry out internet surveillance, as part of the new Cyber Army. The scholarship program that will fund the training will teach the students how to create and identity management systems used to control access to the web, computer networks, and data. It will also create a series of standards which all service providers will have to meet in order to remain active. Internet users will have to put up with endless requirements, which include the use of government issued software. Bye, bye Linux!

In section 12, subsection 4, the document reads: “We shall provide a procedure to identify K-12 students to participate in summer work and internship programs that will lead to the certification of a federal information technology workforce standards…” In other words, anyone who intends to work anywhere close to the internet, will need to be certified by the federal government, and the federal government will assure itself it will have the “humans resources” to carry this plan out by recruiting children as young as 5 years of age.

Besides the programs described above, the bill also talks about the creation of new protocols that will provide enhanced security. All software made available will have to first be reviewed by the government and then pre-aproved. Again, bye bye open source! Coincidentally, Google has announced the creation of their own version of the internet; which many worried citizens recognize as a beta test for the coming internet 2.0. Among some of the suggested practices that would be adopted under this internet 2.0, is the use of biometric identification in order to access the web. This would allow the government and its technology partners -AKA Microsoft, Google, AT&T, Verizon and others- to further monitor anyone who uses the web, since such identification would narrow down the work to a single individual operating from a specific computer at a specific location. This type of practices have been put in place by technology manufacturers in computers, external hard drives and other devices, which were biometrically enabled. Recently, Microsoft unveiled the latest version of their Xbox game console which features a 5 megapixel camera that activates on movement and recognizes specific body movements.

Section 7, which talks about licensing and certification of cybersecurity professionals reads: “Beginning three years after the enactment of this act, it shall be unlawful for any individual to engage in business in the United States or to be employed in the United States as a provider of cybersecurity services to any federal agency or information system or network … who is not licensed and certified by the program.” Reading further into the bill, it is clear the mentioned networks include not only the all public ones, but also all private ones.

The Comprehensive National Cybersecurity Initiative will give the President emergency powers -to be added to the ones he got under the Patriot Act- that include contingencies to limit the publication of content, access to the internet and shut down of the web. Some presidential aides as well as technology professional who support the bill tried to dampen critics concerns alleging the president already has vast powers to regulate the Internet during emergencies. No one would think the government’s intent is to take advantage of a bill like this in order to limit or end access to the net, if it was not for the crystal clear statements that government officials have put out with respect to net neutrality, internet 2.0, access to the web and so on. One of the best examples we can use to illustrate what the military industrial complex is planning to do is the most recent statements by Barack Hussein Obama’s Regulatory Czar, Cass Sunstein. He said websites should be mandated remove “rumors” and “hateful” or “absurd” statements, usually contained in “right wing” websites. “In the era of the Internet, it has become easy to spread false or misleading rumors about almost anyone,” Sunstein writes. “Some right-wing websites like to make absurd and hateful remarks about the alleged relationship between Barack Obama and the former radical Bill Ayers; one of the websites’ goals was undoubtedly to attract more viewers. “On the Internet as well as on talk radio, altruistic propagators are easy to find; they play an especially large role in the political domain. When Sean Hannity, the television talk show host, attacked Barack Obama because of his alleged associations, one of his goals might have been to promote values and causes that he cherishes.”

The kind of policies bills like the passed in the U.S. House of Representatives wants to implement, are also being proposed and adopted elsewhere in the world. In Australia, senators are rocking their newly acquired powers, by telling the citizens what is legal and what is illegal to say or publish on the web. One of the many people advancing censorship in the land down under is Senator Steve Fielding, who is a member of the party called Family First. He wants all X-rated content banned for everyone, including adults. Mr. Fielding is open to wide censorship on the internet.

Meanwhile in Indonesia, the local government is following on the steps of the United States and Australia. “There are myriad violations by Internet users in Indonesia. We don’t have any intention to move backward… but we don’t want people to think that the government ignores matters like pornography on the Internet.” Recent laws passed in Indonesia were adopted despite firm opposition and widespread protests. The bill was supported by conservative Muslim groups such as the Prosperous Justice Party (PKS), which traces its origins back to Egypt’s outlawed Muslim Brotherhood.

Governments and organizations that support internet censorship and push for cybersecurity acts usually cite pornography, rumors, hate speech and conspiracy theories as the reasons to intervene with what is written and read online. In reality, however, such plans are efforts to minimize or eliminate dissent, much like some governments like Venezuela, Iran, Saudi Arabia and Cuba close newspapers and television stations that challenged the “official position”.

In the United Kingdom, a bill labeled as The Digital Economy Bill includes a new code to limit Internet access. Local reports warn that the government may bypass the regular consultation process to bring it into force. The bill in the UK contains two clauses, 10 and 11, which are particularly worrisome. They would enable Ofcom to move forward with technical measures as soon as the Initial Obligations code has been introduced. This is seen as a government plan to jump the gun, and ahead to limit the Internet without following the appropriate steps. According to the site IPINTEGRITY.com, the rules included in the bill mirror the language of ‘limitations’ contained in the Universal Services directive in the E.U. Telecoms Package.

What other goals do these kind of internet bills will try to achieve?

Back in the United States, section 5 of the Cybersecurity bill states: “The transfer of cybersecurity standards, processes, technology and techniques, will be developed by NIST.” Both NIST and the FCC, have praised Google’s initiative to build a high speed version of the internet. At the same time, the FCC is in the process of submitting a National Broadband Plan which will effectively limit the amount of time and areas a user can access. In addition, internet users would be charge by the use of bandwidth, the amount of downloads and so on. Among the plans to be implemented with the new cybersecurity bill is the “harmonization” of the web. This means, people will eventually have to use software approved by federal agencies in order to access the world wide web.

Section 6, which details the new standards NIST will put in place, indicates that those who do not comply with federal regulations will be barred from using the internet. Subsection 2.2, again touches on the FCC’s prerogative to decide what are safe standards and to allow access to the web only to those Internet Service Providers (ISP’s) and other companies that meet those standards. In other words, companies that provide internet services and the users themselves will have to operate under the federal governments boundaries or simply forget about what up until now has been a freely accessed medium. This type of policies match Cass Sunstein’s views regarding the use of the web. He says: “freedom usually works, but in some contexts, it is an incomplete corrective.” He proposes a “chilling effect” on “damaging rumors” or using “corrective” measures to deter future rumor mongers. WND reported about Sunstein’s “First Amendment New Deal” also known as a new “Fairness Doctrine” that includes the creation of a panel of “nonpartisan experts” to force “diversity of view” on the airwaves. The regulatory Czar’s radical proposal is contained in his 1993 book “The Partial Constitution.

Section 8, which talks about Domain Name Contracts, gives an advisory panel created by the act veto power on decisions made by the assistant secretary of commerce for Communications and Information with respect to renewal or modification of the Internet Assigned Numbers Authority for the operation of Domain Name System. This seems to echo what was stated by the two representatives who presented the cybersecurity bill. “We must protect our critical infrastructure at all costs—from our water to our electricity, to banking, traffic lights and electronic health records,” Jay Rockefeller said. Olympia Snowe agreed with her colleague: “if we fail to take swift action, we, regrettably, risk a cyber-Katrina.” The governments that approve bills like the ones in the U.S., and initiatives like the ones in Indonesia, Australia, New Zealand, the United Kingdom and other countries, will certainly follow on the steps China has left behind. There, “companies like Cisco Systems, Nortel Networks, Microsoft, Sun Microsystems and Websense – stand accused of aiding and abetting human rights violations,” states the website campaignforliberty.com. The group Amnesty International documented violations committed by Chinese authorities which have introduced regulations, closed LAN houses, spied on and blocked e-mails, taken down search engines as well as foreign news and politically-sensitive websites. More recently, a new filtering system was put to work, with the intention of banning a list of key words and terms”. Such control, it seems, can be implemented either through a central organization that will oversee all internet providers and users, or through regional and local management posts, which the American bill states, will be established through the monetary support of non-profit organizations which will serve as branches for the centralized cybersecurity center.

Groups concerned with the far reaching powers the bill appropriates to the president -whomever he or she happens to be- as well as federal agencies are already mobilizing to show their opposition. GoPetition.com, is a place where people can sign a petition to reject S773. The site correctly states that if the bill passes, “Barack Obama can silence his dissenters directly by ordering a shutdown of all Americans’ access to the Internet. The Internet is a free marketplace of ideas and information and not a federal government property.” Another site called thepetitionsite.com also prompts people to make their voice heard by signing their petition. “If you’re on this site, then you probably know how useful the internet is for the sharing of information.” And it continues, “You also probably enjoy the many ways you can interact with others and entertain yourself. This will all come to and end if the cybersecurity Act of 2009 (s773) passes.” The website freedomfactory.us begins its opposition by citing what many internet users are familiar with: “The usual threats and scare tactics are used to justify giving Big Brother greater powers, including giving the President the power to shut down portions of the internet he deems a threat to national security, and access to vast amounts of digital data currently legally off limits.”

Shelly Roche, from breakthematrix.com pointed out a very important issue. The more dis-centralized the management and control of the web is, the harder it is to “take it down” or significantly hack it to a level where it poses a threat to users or companies. “If common practices are forced on private companies via a federal certification program, hackers will have a road map that, once deconstructed, could unlock every compliant network.”

Just like the neoconservatives used Leo Strauss’ theory to create fictitious threats in the 20th century, engaging the fundamentalist Christians at home to build support, now communist/fascist infected federal governments have created a fake cyber threat in order to push their agenda to limit access to the world wide web. Just like the neocons succeeded in creating the fake war on terror based on a false premise and alliances with terrorist groups around the world -which they themselves financed and directed- now the liberals, -also controlled by banking interests- are trying to tighten the grip on the only medium that challenges their power and control; the only medium that brought some real freedom of information to the people; the only medium that put the brakes on their plan to create a global technocracy, to consolidate their scientific dictatorship.