January 2014 archive

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

January 10 is the 10th day of the year in the Gregorian calendar. There are 355 days remaining until the end of the year (356 in leap years).

On this day in 1901, a gusher signals start of U.S. oil industry

A drilling derrick at Spindletop Hill near Beaumont, Texas, produces an enormous gusher of crude oil, coating the landscape for hundreds of feet and signaling the advent of the American oil industry. The geyser was discovered at a depth of over 1,000 feet, flowed at an initial rate of approximately 100,000 barrels a day and took nine days to cap. Following the discovery, petroleum, which until that time had been used in the U.S. primarily as a lubricant and in kerosene for lamps, would become the main fuel source for new inventions such as cars and airplanes; coal-powered forms of transportation including ships and trains would also convert to the liquid fuel.

Crude oil, which became the world’s first trillion-dollar industry, is a natural mix of hundreds of different hydrocarbon compounds trapped in underground rock. The hydrocarbons were formed millions of years ago when tiny aquatic plants and animals died and settled on the bottoms of ancient waterways, creating a thick layer of organic material. Sediment later covered this material, putting heat and pressure on it and transforming it into the petroleum that comes out of the ground today.

(emphasis mine)

There had long been suspicions that oil might be under [“Spindletop Hill.” The area was known for its sulfur springs and bubbling gas seepages that would ignite if lit. In August 1892, George W. O’Brien, George W. Carroll, Pattillo Higgins and others formed the Gladys City Oil, Gas, and Manufacturing Company to do exploratory drilling on Spindletop Hill. The company drilled many dry holes and ran into trouble, as investors began to balk at pouring more money into drilling with no oil to show for it.

Pattillo Higgins left the company and teamed with Captain Anthony F. Lucas, the leading expert in the U.S. on salt dome formations. Lucas made a lease agreement in 1899 with the Gladys City Company and a later agreement with Higgins. Lucas drilled to 575 feet (180 m) before running out of money. He secured additional funding from John H. Galey and James M. Guffey of Pittsburgh, but the deal left Lucas with only a small share of the lease and Higgins with nothing.

Lucas continued drilling and on January 10, 1901, at a depth of 1,139 ft (347 m), what is known as the Lucas Gusher or the Lucas Geyser blew oil over 150 feet (50 m) in the air at a rate of 100,000 barrels per day (16,000 m3/d)(4,200,000 gallons). It took nine days before the well was brought under control. Spindletop was the largest gusher the world had seen and catapulted Beaumont into an oil-fueled boomtown. Beaumont’s population of 10,000 tripled in three months and eventually rose to 50,000. Speculation led land prices to increase rapidly. By the end of 1902, over 500 companies were formed and 285 active wells were in operation.

Production began to decline rapidly after 1902, and the wells produced only 10,000 barrels per day (1,600 m3/d) by 1904. On November 14, 1925, the Yount-Lee Oil Company brought in its McFaddin No. 2 at a depth of about 2,500 feet (800 m), sparking a second boom, which culminated in the field’s peak production year of 1927, during which 21,000,000 barrels (3.3 GL) were produced. Over the ten years following the McFaddin discovery, over 72,000,000 barrels (11.4 GL) of oil were produced, mostly from the newer areas of the field. Spindletop continued as a productive source of oil until about 1936. It was then mined for sulfur from the 1950s to about 1975.

America’s first documented oil spill

On March 8, 1971 a burglary took place in Media, PA. That wouldn’t be significant except for the target, the local FBI office, and the documents that were taken opened a can of worms that blew the lid off of the covert, and sometimes illegal, FBI program called COINTELPRO, an acronym for COunter INTELligence PROgram. The police and FBI, Hoover had over 200 agents on the case, were never able to find the perpetrators of the break-in. Now, 43 years later. with the statute of limitations expired, the burglars have some in from the cold.

They were never caught, and the stolen documents that they mailed anonymously to newspaper reporters were the first trickle of what would become a flood of revelations about extensive spying and dirty-tricks operations by the F.B.I. against dissident groups.

The burglary in Media, Pa., on March 8, 1971, is a historical echo today, as disclosures by the former National Security Agency contractor Edward J. Snowden have cast another unflattering light on government spying and opened a national debate about the proper limits of government surveillance. The burglars had, until now, maintained a vow of silence about their roles in the operation. They were content in knowing that their actions had dealt the first significant blow to an institution that had amassed enormous power and prestige during J. Edgar Hoover’s lengthy tenure as director.

“When you talked to people outside the movement about what the F.B.I. was doing, nobody wanted to believe it,” said one of the burglars, Keith Forsyth, who is finally going public about his involvement. “There was only one way to convince people that it was true, and that was to get it in their handwriting.”

Two weeks after the burglary, Washington Post reporter Betty Medsger ran the first story exposing the FBI’s blanket surveillance of the peace and civil rights movement, the tactics of disinformation and deception the bureau used to silence protesters.

But the document that would have the biggest impact on reining in the F.B.I.’s domestic spying activities was an internal routing slip, dated 1968, bearing a mysterious word: Cointelpro.

Neither the Media burglars nor the reporters who received the documents understood the meaning of the term, and it was not until several years later, when the NBC News reporter Carl Stern obtained more files from the F.B.I. under the Freedom of Information Act, that the contours of Cointelpro – shorthand for Counterintelligence Program – were revealed.

Since 1956, the F.B.I. had carried out an expansive campaign to spy on civil rights leaders, political organizers and suspected Communists, and had tried to sow distrust among protest groups. Among the grim litany of revelations was a blackmail letter F.B.I. agents had sent anonymously to the Rev. Dr. Martin Luther King Jr., threatening to expose his extramarital affairs if he did not commit suicide.

“It wasn’t just spying on Americans,” said Loch K. Johnson, a professor of public and international affairs at the University of Georgia who was an aide to Senator Frank Church, Democrat of Idaho. “The intent of Cointelpro was to destroy lives and ruin reputations.”

The eight burglars never met again as a group. When the statute of limitations had expired, the FBI closed the case. Ms. Medsger wrote that only one of the burglars was on the final list of suspects. Three of the burglars have decided to remain anonymous.

Democracy needs whistleblowers. That’s why I broke into the FBI in 1971

By Bonnie Raines

Like Snowden, we broke laws to reveal something that was more dangerous. We wanted to hold J Edgar Hoover accountable

I vividly remember the eureka moment. It was the night we broke into an FBI office in Media, Pennsylvania, in March 1971 and removed about 1,000 documents from the filing cabinets. We had a hunch that there would be incriminating material there, as the FBI under J Edgar Hoover was so bureaucratic that we thought every single thing that went on under him would be recorded. But we could not be sure, and until we found it, we were on tenterhooks. [..]

Looking back on what we did, there are obvious parallels with what Edward Snowden has done in releasing National Security Agency documents that show the NSA’s blanket surveillance of Americans. I think Snowden’s a legitimate whistleblower, and I guess we could be called whistleblowers as well. [..]

Democracy needs whistleblowers. Snowden was in a position to reveal things that nobody could dispute. He has performed a legitimate, necessary service. Unlike us, he revealed his own identity, and as a result, he’s sacrificed a lot. [..]

Nowadays, the country is divided once again, but I don’t see much concern about the abuses that are happening today, like the surveillance of mosques in America, using agent provocateurs. I hear people say, “I don’t care,” the government can do what it needs to do as long as it protects me from terrorism …” To me, that’s giving the authorities blanket permission to cross the line again.

Dissent and accountability are the lifeblood of democracy, yet people now think they just have to roll over in the name of “anti-terrorism”. Members of government thinks it can lie to us about it, and that they can lie to Congress. That concerns me for the future of my children and grandchildren, and that too makes me feel I can talk about, at my age, doing something as drastic as breaking-in to an FBI office in the search for truth.

Why are these two tales of fraud not the same in the eyes of the law?

Charges for 106 in Huge Fraud Over Disability

By William K. Rashbaum and James C. McKinley Jr.JAN. 7, 2014

The retired New York City police officers and firefighters showed up for their psychiatric exams disheveled and disoriented, most following a nearly identical script.

They had been coached on how to fail memory tests, feign panic attacks and, if they had worked during the Sept. 11, 2001, terrorist attacks, to talk about their fear of airplanes and entering skyscrapers, prosecutors said. And they were told to make it clear they could not leave the house, much less find a job. [..]

Former police officers who had told government doctors they were too mentally scarred to leave home had posted photographs of themselves fishing, riding motorcycles, driving water scooters, flying helicopters and playing basketball.

“The brazenness is shocking,” Cyrus R. Vance Jr., the Manhattan district attorney, said on Tuesday.

While those fraudsters were being indicted, arrested and arraigned, these fraudster were planning their next rip off of their investors.

JPMorgan Is Penalized $2 Billion Over Madoff

By Ben Protess and Jessica Silver-Greenberg

Preet Bharara, the United States attorney in Manhattan, and Jamie Dimon, the chief executive of JPMorgan Chase, gathered in Lower Manhattan as Mr. Bharara’s prosecutors were considering criminal charges against Mr. Dimon’s bank for turning a blind eye to the Ponzi scheme run by Bernard L. Madoff. Mr. Dimon and his lawyers outlined the bank’s defense in the hopes of securing a lesser civil case, according to people briefed on the meeting. [..]

Within weeks of meeting Mr. Bharara and recognizing their limited bargaining power, JPMorgan’s lawyers accepted the $1.7 billion penalty, the people briefed on the meeting said, which was within the range that prosecutors initially proposed. The bank also agreed to pay $350 million to the Office of the Comptroller of the Currency, accepting the agency’s only offer, one of the people said.

It could have been worse for the bank. At one point, prosecutors were weighing whether to demand that the bank plead guilty to a criminal charge, a move that senior executives feared could have devastating ripple effects. Rather than extracting a guilty plea, prosecutors struck a so-called deferred-prosecution agreement, suspending an indictment for two years as long as JPMorgan overhauls its controls against money-laundering. [..]

For JPMorgan, the Madoff case is the bank’s latest steep payout to the government. In November, JPMorgan paid a record $13 billion to the Justice Department and other authorities over its sale of questionable mortgage securities in the lead-up to the financial crisis. All told, after paying these settlements, JPMorgan will have paid out some $20 billion to resolve government investigations over the last 12 months. [..]

And critics of Wall Street are unsatisfied, noting that Mr. Bharara’s office opted to defer prosecution and did not charge any JPMorgan employees with wrongdoing.

“Banks do not commit crimes; bankers do,” said Dennis M. Kelleher, the head of Better Markets, an advocacy group.

A United States District Judge for the Southern District of New York, Jed Rakoff, wants to know why have no high-level executives been prosecuted for the financial crisis

Five years have passed since the onset of what is sometimes called the Great Recession. While the economy has slowly improved, there are still millions of Americans leading lives of quiet desperation: without jobs, without resources, without hope.

Who was to blame? Was it simply a result of negligence, of the kind of inordinate risk-taking commonly called a “bubble,” of an imprudent but innocent failure to maintain adequate reserves for a rainy day? Or was it the result, at least in part, of fraudulent practices, of dubious mortgages portrayed as sound risks and packaged into ever more esoteric financial instruments, the fundamental weaknesses of which were intentionally obscured?

If it was the former – if the recession was due, at worst, to a lack of caution – then the criminal law has no role to play in the aftermath. [..]

But if, by contrast, the Great Recession was in material part the product of intentional fraud, the failure to prosecute those responsible must be judged one of the more egregious failures of the criminal justice system in many years. [..]

In striking contrast with these past prosecutions, not a single high-level executive has been successfully prosecuted in connection with the recent financial crisis, and given the fact that most of the relevant criminal provisions are governed by a five-year statute of limitations, it appears likely that none will be. It may not be too soon, therefore, to ask why. [..]

But the stated opinion of those government entities asked to examine the financial crisis overall is not that no fraud was committed. Quite the contrary. For example, the Financial Crisis Inquiry Commission, in its final report, uses variants of the word “fraud” no fewer than 157 times in describing what led to the crisis, concluding that there was a “systemic breakdown,” not just in accountability, but also in ethical behavior. [..]

Without giving further examples, the point is that, in the aftermath of the financial crisis, the prevailing view of many government officials (as well as others) was that the crisis was in material respects the product of intentional fraud. In a nutshell, the fraud, they argued, was a simple one. Subprime mortgages, i.e., mortgages of dubious creditworthiness, increasingly provided the chief collateral for highly leveraged securities that were marketed as AAA, i.e., securities of very low risk. How could this transformation of a sow’s ear into a silk purse be accomplished unless someone dissembled along the way? [..]

Thus, Attorney General Eric Holder himself told Congress:

   It does become difficult for us to prosecute them when we are hit with indications that if you do prosecute-if you do bring a criminal charge-it will have a negative impact on the national economy, perhaps even the world economy.

To a federal judge, who takes an oath to apply the law equally to rich and to poor, this excuse-sometimes labeled the “too big to jail” excuse-is disturbing, frankly, in what it says about the department’s apparent disregard for equality under the law.

As a wind instrumentalist, I’ve yet to encounter an instructor who doesn’t stress the importance of proper posture. From duration to phrasing to tone, nearly every aspect of playing a wind instrument depends on how straight your spine is. Improper posture means that your body is out of alignment with its own structure, preventing your lungs from expanding to their fullest potential.

With this background information, I wasn’t surprised in the slightest to learn that a person’s posture is critical to their physical, mental, and even social health. Healthy posture allows your spine to do what it was designed to do- provide strength and stability to your skeletal structure. When we slouch or stoop regularly, our muscles are put in the position of working overtime to keep us balanced.

Whether we are sitting, standing, sleeping, or walking, the curvature of our backbone has a strong effect on how these activities serve us. In an age where computers are necessary to a majority of the workforce and “computer slouch” is a subsequent epidemic, paying attention to our posture requires daily vigilance.

The body’s skeletal system can become accustomed to being misaligned, leading to conditions such as arthritis, constipation, poor circulation, persistent aches and stress. Feelings of fatigue are all-too-common today, which can be linked to people’s inefficient muscle use due to poor posture. Your posture can convey a great deal about you to other people as well.

The old adage of communication being heavily influenced by body language rings truest through the way you carry yourself. There is a reason weak, sniveling characters are referred to as “spineless”.  Evolutionarily-imbedded assumptions are formed by others when we trudge through our daily lives in a slump, and studies have shown slouching deepens depression.

Fortunately like any habit, poor posture can be remedied by mindful practice. Fixing our posture is the quickest and cheapest (read: free) way to improve our physique from the inside out. Here is a list of techniques from the American Chiropractic Association to correct your posture and to cure the dreaded computer slouch:

• When sitting, be sure that your back is straight and your shoulders are pulled back, with your butt touching the back of your chair. Distribute your weight evenly on both hips and keep your feet flat to the floor.

• When sleeping, try placing a pillow between your legs if you tend to sleep on your side. If you sleep on your back, place a pillow underneath your knees. And if you’re the type that enjoys sleeping on your stomach, do what you can to change your sleeping habits as this is an unnatural curvature for your spine.

• When standing, keep your shoulders back and your head level, not forward or back. Your earlobes should be in line with your shoulders.

• When working, make your work come to you! Do not lean in or strain yourself to read your papers/computer screen/etc., but try sitting closer or bringing it near to your face. If you do heavy lifting on the job, it’s all in the legs. Avoid bending forward with your knees straight and absolutely no jerking movements.

Outside of everyday habits, there are good practices to improve posture as well. Tai-Qi Walking is a very useful method of improving balance and posture at the same time. The Wall Test is a good way to measure your posture and keep it correct throughout your day. And as for that computer slouch, try these stretches out regularly.

Ironically, good posture practices will actually feel foreign and uncomfortable at first- keep at it! In the words of social psychologist Amy Cuddy, “Fake it ’til you become it”.