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VOL. 02, NO. 35
DHS to Roll Out New Orwellian
Intelligence Program
By Samuel Culper Intelligence Editor
T
he Department of Homeland Security is spending $40 million
dollars to fund a “quantitative analysis” program for its Science and Technology Directorate. In a grant proposal published this month, DHS calls on colleges and universities to
submit plans to support the Center for Homeland Security
Quantitative Analysis.
August 26, 2016
Toldya: Cattle Futures Market
Disintegrating, Delinking From Cash
By Ann Barnhardt
According to the documents, grant winners will support “real-time
decision making to address homeland security-related threats and hazards” by conducting research and developing “mission-relevant
science and technology.”
“It is DHS’s intent to produce new capabilities and work with partners
and stakeholders at all levels to test these capabilities in operational
and strategic settings, and then take steps to make these solutions
available and useful to agencies at all levels.”
If it sounds Orwellian, it’s because it is Orwellian. It’s no secret that
DHS faces more challenges than it can handle. When we talk about
intelligence and complex problems, I often bring up efficiency. In order to compete, organizations have to be
efficient, and inefficiencies are a great contributor to falling behind. Analysis is nearly always the bottleneck in the
flow of information to decision makers. Organizations can collect massive amounts of data, but it’s rarely useful
until the information is evaluated by an analyst. A shortage of analysts typically leads to a shortage of analysis.
When decision makers don’t have evaluated information and insight into the data — what we can call “intelligence”
— they often make poor decisions.
The Center for Homeland Security Quantitative Analysis (CHSQA) shall develop the next generation of mathematical, computational, and statistical theories, as well as algorithms, methods, and tools to advance the quantitative
analysis capabilities of DHS.
For the past ten years, organizations have been realizing that the solution to that bottleneck is Big Data analytics —
or “quantitative analysis”. The DHS Quantitative Analysis program is a big data approach to problem-solving that
requires massive amounts of data (open source information, especially social media) being fed into databases for
storage, retrieval, and analysis. Algorithms will scan and organize data, find patterns, and then direct analysts to
high priority data points. This greatly speeds up the analysis process — removing the traditional bottleneck — because analysts no longer have to sift through all the collected data. In other words, this technology will help sift
through the haystack and deliver some needles to the analyst.
I
f you remember my open letter that I wrote upon
shutting down my commodity brokerage firm
(http://www.barnhardt.biz/the-one-about/the-one-aboutmy-shutting-down-my-brokerage-letter/) in November
of ARSH 2011, I ended it with the words of David from
Psalm 117: 23, “This is The Lord’s doing: and it is
wonderful in our eyes.”
At the time, I spoke those words through gritted teeth.
It stung to quit “early”. I had just turned 35. In my
mind, quitting, being “beaten” and failure are
admittedly intertwined.
Now? Oh, goodness. If I had a tambourine, I’d go
dancing down the street. Thank you, thank you, thank
you Jesus for extracting me out of that mess when You
did.
(Continued on page 2)
T
here is a war being waged in America,
but only one side is fighting. The progressives, or Marxists, or outright CommuBy T. L. Davis
nists have been waging war against middle
America, using every diabolical means available, for decades, perhaps a century, but middle America is too busy just trying to survive to bother with
them. Like the day when Barack Obama declared ISIS to be the Junior Varsity team, middle America considers this war being waged on them as insignificant to their lives, too distant and too petty. Yes, some useless and pathetic
residual guilt is responsible for some of their acquiescence.
There Is A Line
Yet, the Marxists have taken ground steadily, pushing and shoving against the pillars of traditional American culture until
they have begun to rattle the foundations. Still, middle America shrugs at these advancements, hopefully ignoring them,
waiting for something to cause the Marxists to give up. But, they will never give up. They are not stronger than middle
America, but they are more persistent. Right now, they are aided by every structure of government, the media and entertainment and sports figures, or so it seems. We will never really know the truth, because we get information from the
media and they are liars.
The media covers up for crimes, preferring the lies of omission to the truth of objective reporting. That is all really up to
them, but they have become nothing other than Baghdad Bob, who proclaimed to Iraqi television that there was nothing
amiss in Baghdad while American tanks rolled in the street behind him. That is our media today and like Baghdad Bob,
they are covering for their leaders: Barack Obama and Hillary Clinton. They sound as ridiculous as he did and are as transparent.
In decades hence, the media will be forced to wear the shame they should feel today, but that is another article for another day.
The crowds in the streets of Milwaukee are not, as it might seem to them, their own masters . They are foot soldiers in a
bigger battle. The Marxists came for Russia and China, what reason would they have to bypass America? How?
Through convincing the discontented that they could get satisfaction by attacking the enemies of the masters. Time after
time, place after place, it was all the same. Barack Obama, perhaps the most notable Marxist of our time, with the background to prove it, is pulling all the strings. It was clear when his Attorney General indicated that the Obama Administration would stand behind Black Lives Matter no matter what. That was the signal, in front of the whole nation, that the
administration was with them.
So, this is what the Marxists want: America. They will use Muslim jihadists; they will use discontented minorities from
the inner cities; they will use IRS agents; they will use the power of the United States government; they will use the media; they will use sports figures; they will use relatives within the family.
We are about to see the masks come off. That is what this is all about, all of this unrest, all of these riots. It is time for
them to show middle America what progress they have made over the past century. Of course, they have to make a serious push to get our guns, first. They have to disarm the populace they intend to enslave. Then they will offer the chance
to live our lives as before, watching television, texting, facebooking, etc, all under the new standards and rules of communication, you understand.
There is a line where middle America figures it out and begins to fight back. I don't know where that is, but it is there.
We saw it on 9/12, however fleeting it might have been. Perhaps it is when they realize that their children will be beaten
and killed to satisfy the bloodlust of a tyrant. All I know is, if they do not see the line by then, it is because they are on the
wrong side of it.
I quit primarily because of Jon Corzine’s brazen
theft of $1.6 billion of segregated customer funds, with
ZERO consequence and, in fact, the clear cooperation
of the CME Group, the CFTC, SEC, National Futures
Association (a straight-up, textbook racketeering
organization if ever there was one), judiciary, Department of Justice and United States Congress. MFGlobal
will go down in history as a watershed event that
publicly blew the lid off of the true state of lawless
oligarchy in the former United States – even though
only a handful of people ever really heard about it, and
even fewer understood it.
Yes, I did also perceive, and spoke and wrote at length
about the futures markets descent into total fraud and
eventual irrelevance because of High Frequency
Trading – that is to say, computer algorithms taking
over the market, and making them basically impossible
to trade. This all began at roughly the same time that
the Chicago Mercantile Exchange changed from being a
non-profit entity to a for-profit entity. Once that shift
was made, the CME management no longer cared about
protecting market integrity, and thus protecting the market participants themselves, but rather in generating as
much income as possible. To that end, two things
happened: first, the CME stopped performing its
primary function of acting as the universal guarantor
and backstop. Corzine swept the MF Global customer
accounts in order to pay his proprietary margin call on
his hyper-leveraged in-house repo and credit default
swap trades with JP Morgan and Goldman Sachs. The
CME did not immediately step in and guarantee the
$1.6 billion in customer accounts despite the fact that
their emergency slush fund at the time topped $8
billion. This left the MF Global customers not only the
victims of theft with zero legal recourse, but refused to
allow then to EXIT THEIR TRADES, thus exposing
them to incomprehensible risk. That was when we knew
that the CME was truly finished and that the whole
Godforsaken mess would implode upon itself eventually.
Second, when the CME transitioned to for-profit, their
drive became to generate as much income from
“transaction fees” as possible.
(Continued on page 3)
“He that sows thorns, should not go barefoot”.— Benjamin Franklin
PAGE 1
VOL. 02, NO. 35
WWW.APPALACHIANMESSENGER.INFO
August 26, 2016
CALENDAR OF EVENTS
Sept 8—The Well Armed Woman, Murphy Chapter, Murphy, NC, 6 p.m. A women’s group dedicated to
educating, equipping and empowering women gun owners. Meeting at Christian Martial Arts Center, 56
Valley River Ave, downtown Murphy. Contact Carrie Brekke at [email protected] for information.
Sept 12—The Well Armed Woman, Georgia Mountain Chapter, Blairsville, GA. 5:30 p.m. A women’s group dedicated to
educating, equipping and empowering women gun owners. Meeting at 226 Gainesville Hwy, Suite C, Blairsville. Contact
Carrie Brekke at [email protected] for information.
Sept 16-18—Prepper Camp, Saluda NC. Prepper Camp is a national event held in the foothills of the Appalachian
Mountains and located in a campground venue that allows you to experience preparedness information, survival skills, and
camp-craft activities. Learn what you need to survive, meet speakers and vendors that have preparedness items that you
need, all in an environment where you can swim, camp, fish, boat, hike, and cook-out. $75.00/ages 16 and up includes all
classes/admission for the entire 3 day weekend. Ticket sales end August 31. See www.preppercamp.com/ for more.
Oct 1-2—John C. Campbell Folk School Fall Festival, Brasstown, NC. 10 am – 5 pm. This is the 42nd anniversary of this
treasured annual celebration of Appalachian culture. Visit over 240 fine craft exhibitors tucked along the school's winding
wooded paths. Over 40 artisans demonstrations. Enjoy bluegrass, gospel, folk, and Celtic music and dance performances
on both days. Adults $5, ages 12-17 $3, 12 and under free. One Folk School Road, Brasstown.
Oct 6—Women On Target Clinic, Murphy, NC. 10 am. (Rain date Wed., Oct 12). For women only, this is a NRA safe gun
class focusing on helping women learn how to shoot firearms in a safe and supportive environment. A firearm will be provided if needed and ammo will be available at market price. Pre-registration required. Cost $40, lunch included. Meeting
at the Practical Pistol Training Range. Contact [email protected] or call 706-896-6075.
Oct 15—Appalachian Homesteaders’ Network Prepper Fair, Bryson City, NC. 11:00 am - 6 pm. Come meet and greet
like-minded people. There will be vendors and free BBQ (while it lasts). Event will be held rain or shine; if rain it will be
held at the Alarka fire house next door. From US 74 at Bryson City take Exit 64, turn East onto Alarka Road, go approx. 3
miles. Location will be on the left at 3301 Alarka Road.
DHS to Roll Out New Orwellian
Intelligence Program
(Continued from page 1)
There’s no doubt that DHS is becoming a domestic
intelligence agency. Whatever reason DHS was created
— ostensibly to find terrorists and keep the homeland
secure — it’s taking steps that should give us
pause. Does DHS really need these capabilities?
But perhaps the most troubling part of this project is that
DHS asks:
At what point do private individuals accept biometrics
and data collection as an accepted social process?
Biometrics is going to have a profound and growing
impact on American society, as foreshadowed by the
desire of DHS to normalize biometric collection of
Americans. I should know. My last assignment was a
Senior Analyst on the Defense Department’s Biometrics
Intelligence Program where we tracked down insurgents
in Iraq and Afghanistan.
By collecting location information (via cell phones, for
instance), social media posts and other open source information, along with biometrics, DHS is going to be
able to build a pattern of life analysis for any member of
the public. (To see part of what that looks like, see
SPACE Analysis; readfomag.com/2016/04/communitysecurity-toolkit-space-analysis/.) America is entering a
Brave New World.
And the brain was from, uh, "Abby" someone.
www.carolinareadiness.com
• Bulk & Freeze Dried Food
• Berkey Water Purifiers
• First Aid Kits
• Canning Supplies
• Non-electric Items
• Camping Supplies
• Knives & Tactical Gear
• Quick Clot
• Lodge Cookware
• Aladdin Oil Lamps
• Grain Mills
• Sun Ovens
CAROLINA READINESS SUPPLY
“By failing to prepare, you are preparing to fail.”
Benjamin Franklin
99126543
Grant proposals for the Center of Excellence for
Homeland Security Quantitative Analysis must be
submitted by November. You can find the link and
download the Grant Opportunity at readfomag.com.
EDITORIAL STAFF
Sam Culper—Intelligence Editor
David DeGerolamo—General Editor
NC Girl—Layout & General Editor
Robert Gore—Financial Editor
Doc Grouch —Medical Editor
Peter White—General Editor
“Each of us has a natural right, from God, to defend his person, his liberty, and his property.” ― Frédéric Bastiat
PAGE 2
VOL. 02, NO. 35
WWW.APPALACHIANMESSENGER.INFO
August 26, 2016
APPALACHIAN HOMESTEADERS’ NETWORK
PREPPER FAIR
SATURDAY, OCTOBER 15TH
11 AM - 6 PM
RAIN OR
SHINE
BRING
FRIENDS
AND
FAMILY
(IF RAIN - WILL
MOVE TO
ALARKA
FIRE HOUSE
BBQ
VENDORS
(FREE WHILE IT LASTS)
• BACK ALLEY ARMS
• CAROLINA READINESS
•
•
MEET & GREET
GREET
SUPPLY
LIKE-MINDED P E O P L E
OLD GROUCH MILITARY
SURPLUS
PRACTICAL PREPPERS
S P O N S O R S : CADD Graphics • K&B Meat Processing •
Western Rifle Shooters Association
BRYSON CITY
Directions: From US 74 at Bryson City take Exit 64.
Turn East onto Alarka Road (away from Bryson City).
Stay on Alarka Road for approximately 3 miles.
Location will be on the left, 3301 Alarka Rd.
Feeling the heat from the sweltering
summer sun?
The Farmer’s Almanac predicts a 50%
chance of a First Frost by October 15, 2016
for the Murphy, NC Area.
Toldya: Cattle Futures Market Disintegrating, Delinking From Cash
(Continued from page 1)
Enter the High Frequency Trading paradigm. The CME saw the immense volume of trade that HFT would and
does generate, and saw that their “future” was not in you know, actual, legitimate hedging and price discovery of
physical commodities, but rather in turning the CME into a giant computer gaming platform.
It also bears mentioning at this
point that the CME opened up and
began actively soliciting and
incentivizing with reduced margin
requirement rates Central Banks,
as in the Federal Reserve Bank of
the U.S., the European Central
Bank, the Bank of Japan, etc., yes,
central banks that have the ability
to PRINT THEIR OWN MONEY,
to trade the markets. The CME
knew as well as you and I know
that allowing an entity that can
literally print its own money to meet margin calls effectively destroys the concept of price convergence and price
discovery of physical commodities. AND the incomprehensibly sick notion that it is okay for Central Banks to
trade the derivatives markets on THEIR OWN SOVEREIGN DEBT PAPER. But they did not and do not care. All
they care about is the massive income generated by the fees paid on every transaction by these enormous, highvolume “customers”.
Well, well. Now we have a report over at Zerohedge that my old markets (http://www.zerohedge.com/news/201608-18/another-market-descends-chaos-it%E2%80%99s-madness-market-makes-major-moves-no-reason) – the
Live Cattle futures markets – are basically now a completely untradable, unusable monstrosity, and all of the remaining “human” traders and hedgers are throwing up their hands and leaving, because the HFT influence over the
markets has caused MASSIVE volatility . Volatility so severe that the intra-day margin calls, of which there could
be several in both directions per day, are potentially ruinous to any sort of legitimate client.
I wrote about exactly this all the way back in ARSH 2011. I warned that the death knell of these markets would be
the DELINKAGE of the cash (physical) market from the futures markets. I wrote my explanation in the context of
metals, but it is now happening with cattle.
TRAUMA CLASS
Taught by
“SKINNY MEDIC”
8 Hours of
Instruction
Beginning at
9:00 AM
Two Class
Dates:
Nov. 12th &
Dec. 3rd
And yes, this feeds EXACTLY into my cattle marketing DVD set (http://www.barnhardt.biz/ann-barnhardtscattle-marketing-dvd-set/), which is all about discerning not merely price, but VALUE of physical commodities,
and value is a completely different animal from price. Once VALUE is determined, one can then see which classes
of a given physical commodity (in this case, cattle of all sizes and types) are OVERVALUED and which are
UNDERVALUED, and the profit spreads between them. The price becomes almost irrelevant, and is really only a
function of UNITS, not informative in-and-of-itself for discerning which cattle should be SOLD and which cattle
should be BOUGHT within the spectrum. Further, volatility becomes not only manageable, but sometimes beneficial as it causes unskilled marketers who operate on emotion to inject profit opportunity into the physical market
because of their bad, emotionally-driven decisions. So long as the SELL and the BUY are executed at the same
time, the overall price level in that moment is irrelevant, and volatility becomes moot – provided, of course, that
one is NOT leveraged, or only very, very minimally leveraged. Leverage re-exposes even the soundest marketer to
risk. Leverage is dumb, no matter how low the interest rate. Again, this paragraph is talking about PHYSICAL
commodities. The futures markets are FINISHED, and if you trade them, you are A FOOL, and will deserve
whatever you get.
SAVE THE DATE!
Class to be taught in Haywood County, NC.
Location TBD.
$65/Person per class.
Contact MtnPrepperClass @ yahoo.com for information.
“Do not pray for an easy life, pray for the strength to endure a difficult one”. - Bruce Lee
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