Announcing: Slashdot Deals - Explore geek apps, games, gadgets and more. (what is this?)

Thank you!

We are sorry to see you leave - Beta is different and we value the time you took to try it out. Before you decide to go, please take a look at some value-adds for Beta and learn more about it. Thank you for reading Slashdot, and for making the site better!



Firing a Laser Into Your Brain Could Help Beat a Drug Addiction

Dainsanefh The Government will not allow it (156 comments)

Because if they does, the plan to enrich the military industrial complex known as the "War on Drugs" will be over.

about 2 years ago

Krebs Hacker Unmasked, Hit Ars and Wired's Honan

Dainsanefh Re:Young punks, too stupid in most ways that matte (164 comments)

People who think like you, sir, is the problem why this country recidivism rate is so high.

He stole NO money. If you are talking about damages caused by leaked information (which are supposed to be free anyway) you are a dumbass for not having hacker or ID theft insurance. There are many company who offer that for cheap.

about 2 years ago

Aaron Swartz's Estate Seeks Release of Documents

Dainsanefh Government Debt and Deficits Are Not the Problem. (131 comments)

There are two quite different perspectives in the set of speeches at this conference. Many on our morning panels – Steve Keen, William Greider, and earlier Yves Smith and Robert Kuttner – have warned about the economy being strapped by debt. The debt we are talking about is private-sector debt. But most officials this afternoon focus on government debt and budget deficits as the problem – especially social spending such as Social Security, not bailouts to the banks and Federal Reserve credit to re-inflate prices for real estate, stocks and bonds.

Government deficit spending into the economy is the solution. The problem is private debt. And in contrast to Federal Reserve and Treasury bailout policy, we view the problem not as real estate prices too low to cover bank reserves. The problem is the carrying charges on this private debt, and the fact that debt service is eating into personal income – and also business income – to deflate the economy.

Mortgage debt that is still leading to foreclosures, evictions, and is depressing the real estate market for most buyers except for all-cash hedge funds;

We have been urging a write-down of mortgage debt in line with the debtor’s ability to pay, or to bring debt service in line with current market prices. The administration has bailed out the banks for their bad loans, but has kept the debts in place for most of the population. Its promise of debt write-downs has been empty.

Student loan debt, now the second largest debt in the US at around $1 trillion, is the one kind of debt that has been growing since 2008. It is depriving new graduates of the ability to start families and buy new homes. This debt is partly a byproduct of cutbacks in federal and local aid to the universities, and partly of turning them into profit centers – financializing education to squeeze out an economic surplus to invest in real estate and financial holdings, to pay much higher salaries to upper management (but not to professors, who are being replaced by part-time, un-tenured help), and especially to create a thriving high-profit, zero-risk, government guaranteed loan business for banks.

This is not really “socializing” student loans. Its social effects are regressive and negative. It is a bank-friendly giveaway that is helping polarize the economy.

The character of the stock market has been turned upside down. Instead of raising equity capital to reduce corporate debt ratios, corporate takeovers are being financed with debt.

Business debt service is still crowding out the use of corporate cash flow for new tangible investment and hiring. This is especially the case for companies bought in leveraged buyouts for corporate or management takeovers. Shareholder activism is forcing industrial companies to yield financial returns, such as using earnings for stock buy-backs to bid up stock market prices (and thereby increase the value of management stock options). We thus are seeing a buildup of financial capital, not of industrial capital.

The result of the private-sector debt overhang is a self-feeding spiral of debt deflation. Revenue earmarked to pay bankers is not available to spend on goods and services. Lower consumer spending is a major reason why firms are not investing in tangible capital to produce more output. Markets shrink, shopping malls close down, and empty stores are appearing for rent on major shopping streets from New York City to London.

Slowing employment is causing a state and local budget squeeze. Something has to give – and it is largely pension plans, infrastructure spending and social programs.

However, the one kind of debt we are not worried about is government debt. That’s because governments have little problem paying it. They do not need to balance their budget with tax revenue, because their central bank can simply print the money. On balance, the overall public debt rarely needs to be paid down. As Adam Smith noted in The Wealth of Nations, no government in history ever has paid off its public debt.

Today, governments do not even have to pay interest on money their central banks create. (Think of the Civil War greenbacks.) Even for borrowing from bondholders, Treasury borrowing costs are now the lowest in history. As for the monetary effect of governments running budget deficits, there is little threat of commodity-price inflation. Price rises are concentrated where special interests are able to indulge in monopoly pricing and rent extraction.

Yet most of the speeches you will hear this afternoon will warn about the rising government debt, not private-sector debt. The press follows this hand wringing, urging governments to balance the budget to restore “fiscal responsibility.”

The problem is that “fiscal responsibility” is economically irresponsible, as far as full employment and economic recovery are concerned, less government spending shrinks the circular flow between the private sector’s producers and consumers. That is the essence of Modern Monetary Theory (MMT) that Steve Keen here, and Yves Smith in the earlier panel, have been writing about in our blogs.

So, I needn’t elaborate here on how the United States should look at Greece, Spain, and other Eurozone disaster areas, that lack a central bank to monetize deficit spending into the economy to restore growth. “Fiscal responsibility” and “smart investment policy” are mutually exclusive. What really is responsible is for the government to spend enough money into the economy to keep employment and production thriving.

Instead, the government is creating new debt mainly to bail out the banks and keep the existing debt overhead in place – instead of writing down the debts.

So, governments from the United States to Europe face a choice: to save the economy, or to save the banks and bondholders from taking a loss by keeping the debt overhead in place and re-inflating real estate prices to a level high enough to cover the debts attached to the property whose underwater mortgages are weighing down the banking system.

The problem is rising housing prices increase the cost of living, and hence of employing labor. When I started to work on Wall Street fifty years ago, banks had a basic rule in lending mortgage money: mortgage debt service should not exceed 25% of family income. A year ago, Sheila Bair recommended limiting mortgage lending to 32% of income. Washington’s most recent rules for providing housing loan guarantees raised the ratio to 43%.

When it comes to analyzing comparative advantage among nations, the key no longer is food or prices for other goods and services. Financial charges and taxes are the key. The typical blue-collar family budget provides the explanation for why the United States is losing its industrial advantage.
        Housing (rent or home ownership) 40%
        Other bank debt 10 to 15%
        FICA wage withholding 13%
        Other taxes 15%

Only 20 to 25% of the family’s budget is free to buy the commodities being produced. This means that Say’s Law – the circular flow of income and spending between employers and their work force – is diverted to pay debt service, and also to pay including Social Security and Medicare taxes as a user fee instead of these services being paid for out of the general fiscal budget by progressive taxation falling mainly on what Adam Smith, John Stuart Mill, and their Progressive Era followers urged: land rent, natural resource rent, monopoly rent, and luxuries.

A Keynesian economist would point to excess saving as the problem. But debt repayment has changed the character of saving in today’s debt-ridden economies. In the 1930s, Keynes pointed to savings being a leakage from the economy’s circular flow. What he meant by “saving” was mainly non-spending – keeping income in bank accounts or other liquid or illiquid financial investment.

But savings rates have risen since 2008 for quite a different reason. America’s recovery of savings rate from zero in 2007 is not a result of people building up saving for a rainy day. What the National Income and Product accounts report as “saving” is actually paying down debt. It is a negation of a negation.

This is what debt deflation means. The antidote should be more government spending and larger deficits – as well as debt forgiveness.

Bank lobbyists are urging just the opposite set of policies. They have implanted a false memory and a false economic theory blaming hyperinflation on deficit spending. The reality is that every hyperinflation in history has come from paying foreign debts, not domestic debts.

Germany’s Weimar inflation resulted from the Reichsbank having to pay reparations to the Allied Powers. It sold German currency on the foreign exchange markets for sterling, francs and dollars – far beyond Germany’s ability to obtain foreign exchange by exporting. Germany had been stripped of its coal and steel production capacity and its ability to export was limited. So, the currency plunged.

Declining exchange rates caused import prices to rise. The general price level followed suit behind the umbrella effect of higher import prices. More money had to be printed to pay for transactions purposes at the higher price level. Every serious study of the German hyperinflation – and also those of France and, later, of Chile – shows the same sequence of causation from foreign debt payment to currency depreciation, rising domestic prices, and, finally, to new money creation.

The German economy suffered from austerity imposed by over-indebtedness. The same was true of debt-strapped Third World economies from the 1960s onward under IMF austerity programs, and it is true of eurozone countries today. Austerity and lower government spending did not make these economies more competitive. It worsened their balance of payments and made their distribution of wealth and income more unequal as economies polarized between creditors and debtors.

The policy lesson for today is that to avoid debt deflation, falling markets, and unemployment, the economy needs to be revived. The way to do this is what was called for and, indeed, promised four years ago: a write-down of debts in keeping with the ability to pay.

Once this debt overhead is addressed, tax reform is needed to prevent a debt bubble from recurring. A tax system, that favors debt financing rather than equity, and that favors asset-price “capital” gains and windfall gains over wages and industrial profits earned by producing tangible output, has been largely to blame. Also needing reform is tax favoritism for the offshore fictitious accounting, that has become increasingly unrealistic in recent years.

Unless government fiscal policy addresses these issues, the U.S. economy will face the same kind of debt-deflation pressures and fiscal austerity, that is now tearing the eurozone apart.

There is something striking about the arrangement of talks for later this afternoon. In contrast to the majority on this panel (Steve Keen and William Greider), we saw the crisis coming and warned publicly about it. Steve’s printed bio for this conference gives the Financial Times article, that acknowledged this and reproduced my flow chart of the economy. Second, on that flow chart, you will see that for every half a trillion in federal deficit spending since the 2008 crisis, the Federal Reserve and Treasury have spent twice as much – $1 trillion – in providing new credit to the banks.

President Obama announced that he hoped the banks would lend it out. So, the solution by his advisors, including some here today, is for the economy to “borrow its way out of debt.” The aim of the Fed and Treasury subsidies of the commercial banks is to re-inflate housing prices, stock and bond prices – on credit – that means on debt.

This, obviously, will make matters worse. But what will make them worse of all is the demand that the government “cure” the public-sector deficit by spending less, generally, and, specifically, by cutting Social Security and Medicare. As in the case of the recent FICA withholding, ostensibly to fund Social Security, the effect of less public spending into the economy is to force the private sector more deeply into debt.

I find there to be something hypocritical about this. Instead of writing down debts of the 99% to keep their financial heads above water, the government is trying to save the banks and the 1% – at public expense. Why do they call for governments to balance the budget by pushing the economy at large deeper into debt, while trying to save the banks from taking a loss?

The ultimate question to be posed is, thus, whether the economy really needs Wall Street and the banks to be made whole on credit, that has been created largely to inflate asset prices (the Bubble Economy) and to gamble on derivatives and computer programs (Casino Capitalism), without really interfacing with the industrial sector and employment – except to provide takeover credit for leveraged buyouts, that load down companies further with debt?

Placed in this context, the financial problem, thus, turns into a structural social problem.

about 2 years ago

How the U.S. Sequester Will Hurt Science and Tech

Dainsanefh DEFUND DOJ,DHS (522 comments)

To prevent another Aaron Swartz tragedy from happening.

about 2 years ago

DoJ Admits Aaron Swartz's Prosecution Was Political

Dainsanefh ANARCHY IS REAL DEMOCRACY (326 comments)

DOWN WITH THE U.S. ZIONIST OCCUPIED GOVERNMENT ggggggggggggggggggggggggggggggggggggggggggggggggggg

about 2 years ago

Ask Slashdot: Is the Bar Being Lowered At Universities?

Dainsanefh AFFIRMATIVE ACTION IS TO BLAME (605 comments)

Inner city teachers are required to pass their students or they might get shot by the students. The primary / secondary education system here is a joke. We need to start rounding up certain people and terminate.

However, unfortunately, one of their own is now living in 1600 Pennsylvania Avenue NW, Washington, D.C.

about 2 years ago

Lawmakers Say CFAA Is Too Hard On Hackers

Dainsanefh You people ask for it (154 comments)

Anarchy is only REAL form of democracy.

about 2 years ago

US Postal Service Discontinuing Saturday Mail Delivery

Dainsanefh HEIL HITLER (582 comments)

This is not a Christan country. This is a Zionist country. The government is controlled by Zionist. Usury is their game, their lifeblood.

The Zionist controlled Federal Reserve System would not let the Postal Savings System revive again. Period.

about 2 years ago

HR Departments Tell Equifax Your Entire Salary History

Dainsanefh yeah big guy with a big mouth (472 comments)

tell me where to get credit or grants for the money to even get a business started. People only fund/loan ESTABLISHED business.

And look, you said "If you're any good at what you do", there are people with disabilities that are no good at whatever they do, they should also be entitle to a job if they want to work.

about 2 years ago

North Korea Announces 3rd Nuclear Test, Anti-US Aims

Dainsanefh Re:A strange game.... (597 comments)

Yes, arresting someone who are exercising the first amendment right to criticize a certain religion by making an obscure youtube video that nobody talks or cares about until Mr. Hussein Obama blames on it. Nice Application of Streisand effect.

about 2 years ago

MS Won't Release Study Disputing Munich's Linux-Switch Savings

Dainsanefh Konichiwa (268 comments)

Nice, no NVIDIA/ATI, where do i get SiS / S3 video card?

about 2 years ago

MS Won't Release Study Disputing Munich's Linux-Switch Savings

Dainsanefh Ditto (268 comments)

I for one will not want RMS and alikes working at my organization.

about 2 years ago

Kuwait Sentences Two Men To Jail For Tweets Criticizing Ruler

Dainsanefh In an anarchy (91 comments)

this BS will not happen.

about 2 years ago

America's Real Criminal Element: Lead

Dainsanefh Re:So Africa (627 comments)

The truth is so hard to swallow, leftists are resorting to name calling to make themselves legitimate.

about 2 years ago

Adam Lanza Destroyed His Computer Before Rampage

Dainsanefh AMERICAN SUPERIORITY COMPLEX (1719 comments)

IS THE reason why our country refuse to learn from others about gun control.

more than 2 years ago



JPMorgan Chase customers see zero balances after technical glitch

Dainsanefh Dainsanefh writes  |  about 2 years ago

Dainsanefh (2009638) writes "March 19, 2013
JPMorgan Chase customers see zero balances after technical glitch
Customers speculated on Twitter that the bank's systems had been hacked
By John Ribeiro | IDG News Service

Customers of JPMorgan Chase reported seeing zero balances in their accounts both online and on mobile, and speculated that the bank's systems had been hacked into.

The bank however clarified late Monday that it was having a technology problem regarding customers' balance information that it was working to resolve.

The speculation on social networks like Twitter that the bank was hacked was probably based on DDoS (distributed denial of service) attacks that U.S. banks have faced in recent months. A group calling itself "Izz ad-Din al-Qassam Cyber Fighters," for example, launched DDoS attacks on the websites of several U.S. banks during September and October, disrupting online and mobile banking services for long periods."

Link to Original Source

Cyprus bailout crisis shakes markets

Dainsanefh Dainsanefh writes  |  about 2 years ago

Dainsanefh (2009638) writes "Eurozone finance ministers demanded on Sunday that Cypriots pay up to 10% of their bank deposits in exchange for a €10bn (£8.5bn) bailout, prompting panic across the island as people rushed to cash machines to withdraw their savings."
Link to Original Source

Congressman introduce bill to ban minting of trillion-dollar coin

Dainsanefh Dainsanefh writes  |  about 2 years ago

Dainsanefh (2009638) writes "Lawmakers are still positioning themselves for a debt ceiling fight in a few months, but one Republican congressman wants to snuff out a particular idea immediately: the U.S. Treasury minting $1 trillion platinum coins to avert a debt ceiling showdown.

Rep. Greg Walden (R-Ore.) has introduced a bill to specifically ban President Barack Obama from minting the coins.

The trillion-dollar coin has been previously discussed on Slashdot:

Link to Original Source

Cops to Congress: We need logs of Americans' text messages

Dainsanefh Dainsanefh writes  |  more than 2 years ago

Dainsanefh (2009638) writes "State and local law enforcement groups want wireless providers to store detailed information about your SMS messages for at least two years — in case they're needed for future criminal investigations."
Link to Original Source

AMD hires bank to explore sale options

Dainsanefh Dainsanefh writes  |  more than 2 years ago

Dainsanefh (2009638) writes "Advanced Micro Devices has hired JPMorgan Chase & Co to explore options, which could include a potential sale, as the chipmaker struggles to find a role in an industry increasingly focused on mobile and away from traditional PCs, according to three sources familiar with the situation."
Link to Original Source

IRS pays out billions in tax refunds due to ID theft

Dainsanefh Dainsanefh writes  |  more than 2 years ago

Dainsanefh (2009638) writes "The IRS is paying out billions of dollars in fraudulent tax refunds to identity thieves; a problem that the tax service’s inspector general told CNBC is a “growing problem” involving numbers that are increasing “exponentially.”

In a new report to be issued Thursday, the inspector general for the IRS says that tax thieves are stealing the identities of taxpayers and then filing bogus returns on their behalf and collecting fraudulent refunds as a result."

Link to Original Source

Glitched HFT Program bring down Knight Capital

Dainsanefh Dainsanefh writes  |  more than 2 years ago

Dainsanefh (2009638) writes "Shares of Knight Capital Group (KCG) are down sharply Thursday morning after the firm announced realized losses of approximately $440 million dollars as the result of erroneous trades entered Wednesday morning. Prior to the announcement analysts had estimated Knight's losses would be as much as $170 million. Knight blames a faulty software installation for the mistake which they claim has been corrected."
Link to Original Source

Ron Paul effectively ending presidential campaign

Dainsanefh Dainsanefh writes  |  more than 2 years ago

Dainsanefh (2009638) writes "Ron Paul, Mitt Romney’s lone remaining rival for the Republican presidential nomination, announced Monday that he would stop spending money on the party’s 11 remaining primaries, in effect suspending his campaign.

Apart from President Obama and Romney, Paul has raised more money than any other White House contender this year – more than $36 million. His calls for strict adherence to the Constitution and his no-nonsense manner have spawned a vocal and well organized group of followers, but not enough to give him a realistic shot at the presidency."

Link to Original Source

10 years after CmdrTaco proposal

Dainsanefh Dainsanefh writes  |  more than 2 years ago

Dainsanefh (2009638) writes "Quoting the article:

Ten years ago this morning, Slashdot founder Rob "CmdrTaco" Malda, foregoing the traditional bended-knee, used his insider access to one of the tech world's most prominent public forums to issue a 79-word Valentine's Day marriage proposal to Kathleen Fent.

As the anniversary of the proposal approached, I thought it would be fun to ask the principals to share their memories of that day and thoughts about it since, as just one case study of how this type of public proposal — be it on Slashdot, a billboard or the stadium Jumbotron — holds up over the years. Any regrets? Would they recommend it? ... Here's our e-mail exchange:

Rob, what were you thinking during the 15 minutes between posting the proposal and receiving Kathleen's answer?

I was pretty confident she would say yes, but I was NOT as confident that she would read Slashdot for several hours. I was really dreading the lag, and timed the post to coincide with when I figured she would arrive at her office. Right as I clicked save, one of my co-workers immediately realized what I was doing, and I got some "good lucks" and appropriate teasing. But I won't lie: I was nervous as hell.


Kathleen, what was your reaction the moment you read your name in that headline and realized what was happening?

I knew something was afoot when I left for work and Rob said "See you soon!" I decided to check Slashdot right away when I got to work to see what was going on. When I saw my name in the proposal, I slammed my hand down on the desk and screamed, "Oh my god!" before I could even read the entire article. I started to hyperventilate.

Everyone rushed back to my cubicle to see what was the matter. I had to resist the urge to phone Rob at home, knowing that an email reply was much more fitting for the eventual story we'd tell. This was long before texting was commonplace, or I would have texted him the answer.

Rob, what did you think of the outpouring of well wishes — and snark — from the Slashdot community?

There was some pretty witty stuff in there. Kathleen pointed out a few random comments that she thought were funny. She read every single comment, but I was thankful for the moderation system that day because it was a (popular) story and it had its fair share of mean in it that I was able to skip. But mostly it was very positive: The vast majority of the Slashdot community strongly supported me throughout my time there, and this story might be the single loudest example of that.


Kathleen, do you think most women would appreciate receiving this style of public proposal? Should guys go for it?

While a gigantically public proposal SEEMS romantic in the movies and whatnot, I would NOT NOT NOT recommend it for anyone else. Too risky, with the chance of extreme public humiliation for both parties. The pressure and emotional response to even a private proposal is a lot to bear gracefully, and knowing everyone is waiting and watching for your answer (especially for those poor gals on the JumboTron at a sporting event) can be too much.

I'm glad the only people to see me blubber and freak out were my co-workers, and I was able to compose myself before I responded. That being said, it was the perfect way for Rob to propose to me, and I am still very flattered that he put himself out there, so to speak.

OK, Rob, your turn: Would you recommend that other guys propose so publicly?

I never really felt like I was proposing in public. Slashdot was more like a big squabbling extended family. I felt more like I was doing it at a family reunion. I wasn't surrounded by strangers, I was surrounded by friends. And on a more micro scale, a few very close friends and I got to experience that window between proposal and acceptance. It rates as my favorite story during my tenure at Slashdot, and one the greatest moments of my life.

At that point in our relationship, Kathleen and I had been living together for a while. Since then we've really built a life together, with a home and kids running around inside it. The truth is that my present life would have been the same even if I had proposed to her in the most isolated place on earth. But that wasn't who we were in 2002. So I guess my advice is to do what is right for you. I did, and I've never regretted it.

Last question, Kathleen: Is Rob still a dork?



Link to Original Source


Dainsanefh has no journal entries.

Slashdot Login

Need an Account?

Forgot your password?