Charleston Man Receives $525 Federal Fine for Failing to Pay for a $0.89 Refill

Some of you may wonder why of all the stories out there today I decided to focus on the $525 fine a construction worker in South Carolina received a for refilling his drink without paying. The reason is to highlight the difference between what happens when a peasant breaks the law versus when a banker does it.

In this case, citizen Christopher Lewis refilled his drink without paying at the VA Medical Center in downtown Charleston. For this horrific offense (a refill costs $0.89), he was hauled into a room by the Federal Police Force and given a ticket for $525. Even worse, he was told not to ever come back to the premises, so he ended up losing his job as well.

So for this undoubtably minor offense, Mr. Lewis received a fine almost 600x greater than the cost of the crime and lost his ability to support himself. Compare that to the slap on the wrist banks receive when they are caught engaging in criminal behavior that leads to the theft of billions of dollars. At the worst, they pay a fine that is only a fraction of the profits and no one goes to jail, so the law actually incentivizes major financial crime. Meanwhile, if a peasant steps out of line, even for the most minor offense, the full brute force of federal law comes down like a ton of bricks. This is one of the main reasons why the social fabric of society is being torn apart, and unfortunately, there will be a hefty price to pay for it in the future.

This is a theme I have written about time and time again, most recently in a two part series, which I suggest reading:

Some Money Launderers are “More Equal” than Others

Some Money Launderers are More Equal than Others Part 2 – CEO of BitInstant is Arrested

From WCSC News we learn that:

CHARLESTON COUNTY, SC (WCSC) – A North Charleston man was hit with a federal fine for refilling his drink without paying. The on-site construction worker says he didn’t know refills at the VA Medical Center in downtown Charleston came at a price, and Wednesday, during his lunch hour, he was slapped with federal charges.

The ticket was issued by the Federal Police Force at the VA Medical Center in downtown Charleston after Christopher Lewis refilled his soda without paying the $0.89. A hospital spokesperson called it a “theft of government property.”

“Every time I look at the ticket, it’s unbelievable to me,” says Lewis, who works construction. “I can’t fathom the fact that I made a $0.89 mistake that cost me $525.”

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New Report from Princeton and Northwestern Proves It: The U.S. is an Oligarchy

Despite the seemingly strong empirical support in previous studies for theories of majoritarian democracy, our analyses suggest that majorities of the American public actually have little influence over the policies our government adopts. Americans do enjoy many features central to democratic governance, such as regular elections, freedom of speech and association, and a widespread (if still contested) franchise. But we believe that if policymaking is dominated by powerful business organizations and a small number of affluent Americans, then America’s claims to being a democratic society are seriously threatened.

From a recent study titled Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens by Martin Gilens of Princeton University and Benjamin I. Page of Northwestern University

In response to the publication of an academic study that essentially proves the United States is nothing more than an oligarchy, many commentators have quipped sentiments that go something like “so tell me something I don’t know.” While I agree that the conclusion is far from surprising to anyone paying attention, the study is significant for two main reasons.  

First, there is a certain influential segment of the population which has a disposition which requires empirical evidence and academic studies before they will take any theory seriously. Second, some of the conclusions can actually prove quite helpful to activists who want to have a greater impact in changing things. This shouldn’t be particularly difficult since their impact at the moment is next to zero.

What is most incredible to me is that the data under scrutiny in the study was from 1981-2002. One can only imagine how much worse things have gotten since the 2008 financial crisis. The study found that even when 80% of the population favored a particular public policy change, it was only instituted 43% of the time. We saw this first hand with the bankster bailout in 2008, when Americans across the board were opposed to it, but Congress passed TARP anyway (although they had to vote twice).

Even more importantly, several years of supposed “economic recovery” has not changed the public’s perception of the bankster bailouts. For example, a 2012 study showed that only 23% percent of Americans favored the bank bailouts and the disgust was completely bipartisan, as the Huffington Post points out. 

Personally, I think the banker bailouts will go down as one of the most significant turning points in American history. Despite widespread disapproval, Congress passed TARP and it was at that moment that many Americans “woke up” to the fact they are nothing more than economic slaves with no voice. That they are serfs. Even more importantly, once oligarchs saw what they could get away with they kept doubling down and doubling down until we find ourselves in the precarious position we are in today. A society filled with angst and resentment at the fact that the 0.01% have stolen everything.

Another thing that the study noted was that average citizens sometimes got what they wanted, but this is almost always when their preferences overlap with the oligarchs. When this occurs it is entirely coincidental, and in many cases may the result of public opinion being molded by the elite-controlled special interest groups themselves. How pathetic.

I read the entire 42 page study and have highlighted what I found to be the key excerpts below. Please share with others and enjoy:

Multivariate analysis indicates that economic elites and organized groups representing business interests have substantial independent impacts on U.S. government policy, while average citizens and mass-based interest groups have little or no independent influence. The results provide substantial support for theories of Economic Elite Domination and for theories of Biased Pluralism, but not for theories of Majoritarian Electoral Democracy or Majoritarian Pluralism.

Until very recently, however, it has been impossible to test the differing predictions of these theories against each other within a single statistical model that permits one to analyze the independent effects of each set of actors upon policy outcomes.

A major challenge to majoritarian pluralist theories, however, is posed by Mancur Olson’s argument that collective action by large, dispersed sets of individuals with individually small but collectively large interests tends to be prevented by the “free rider” problem. Barring special circumstances (selective incentives, byproducts, coercion), individuals who would benefit from collective action may have no incentive to personally form or join an organized group. If everyone thinks this way and lets George do it, the job is not likely to get done. This reasoning suggests that Truman’s “potential groups” may in fact be unlikely to form, even if millions of  peoples’ interests are neglected or harmed by government. Aware of the collective action problem, officials may feel free to ignore much of the population and act against the interests of the average citizen.

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FBI Plans to Have 52 Million Photos in Facial Recognition Database by 2015

I have highlighted the Electronic Frontier Foundation (EFF) and it great work on this website on many occasions. The organization has been at the forefront of many privacy and civil liberties related issues, including the increasing use of drones by the U.S. government domestically, unconstitutional NSA spying, as well as a host of other issues.

The latest article from them that caught my attention was published a couple of days ago, and shines light on the disturbing push by the FBI to create an extensive facial recognition database, which will include criminal and non-criminal photos alike. The information received by the EFF via a Freedom of Information Act (FOIA) request, demonstrates that the feds may have a mugshot database with up to 52 million photos by 2015.

The program is called Next Generation Identification (NGI), and the aspect of it that bothers the EFF most is the fact that non-criminal and criminal photos will be combined in the same database. So someone who has no criminal record can suddenly be flagged as a suspect just because an algorithm says so. What’s worst, research shows that the potential for false positive identification increases as the dataset increases.

To see if your state is participating, take a look at this map courtesy of the EFF.

Screen Shot 2014-04-16 at 10.52.50 AM

More from the EFF:

New documents released by the FBI show that the Bureau is well on its way toward its goal of a fully operational face recognition database by this summer.

EFF received these records in response to our Freedom of Information Act lawsuit for information on Next Generation Identification (NGI)—the FBI’s massive biometric database that may hold records on as much as one third of the U.S. population. The facial recognition component of this database poses real threats to privacy for all Americans.

NGI builds on the FBI’s legacy fingerprint database—which already contains well over 100 million individual records—and has been designed to include multiple forms of biometric data, including palm prints and iris scans in addition to fingerprints and face recognition data. NGI combines all these forms of data in each individual’s file, linking them to personal and biographic data like name, home address, ID number, immigration status, age, race, etc. This immense database is shared with other federal agencies and with the approximately 18,000 tribal, state and local law enforcement agencies across the United States.

The records we received show that the face recognition component of NGI may include as many as 52 million face images by 2015.
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How the CEO of HFT Firm Virtu Financial is Demanding a Taxpayer Bailout in Florida

What the financial crisis, subsequent taxpayer bailouts, zero prosecutions of financial industry participants and further consolidation of the economy by oligarchs has taught us more than anything else is that the super rich and politically connected are not allowed to fail. Apparently, this may also apply to the head of one of the largest firms in what is quickly becoming the most despised “industry” in the nation.

By now, pretty much everyone in America knows about Michael Lewis’ book Flash Boys, which exposes the high frequency trading (HFT) industry for the money-sucking parasite it is. However, what will really get your blood boiling, particularly if you live in Florida, is how the CEO of one of the biggest players in the HFT space, Virtu Financial, is looking for taxpayers to bail-out his poorly performing investment in the Florida Panther NFL hockey franchise. This takes having “some nerve” to a whole new level of absurdity.

From Bloomberg:

Vincent Viola, whose high-frequency trading firm plans to raise millions of dollars in an initial public offering next month, is seeking tax dollars to help cover the bills for the Florida Panthers hockey team he bought six months ago.

Viola asked lawmakers in South Florida’s Broward County to use $64 million in taxpayer funds for arena bond payments owed by the team, which says it’s losing money as attendance has fallen to a 14-year low. Officials in Broward, which encompasses Fort Lauderdale on the Atlantic Coast, disagree on how to proceed, with some saying that if they don’t pick up the tab, the team may move and leave taxpayers with $225 million in debt and an empty arena.

Sounds a lot like the nonsense we all head that went something like “we must bail-out and not regulate banking criminals otherwise they will leave the U.S.” Oh the horror, these crooks might take their organized crime elsewhere…

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The Homeless in NYC Are Now Living in Tiny Spaces in the Frame of the Manhattan Bridge

I just got back to Colorado from 10 days in my hometown of New York City. It’s always fun to see friends and family as well as take stock of how much things have changed since I left. There is no question about it, NYC feels more like “Disneyland for Wall Street” than ever before. The very rich are doing very well, everyone else, not so much. We are often told by charlatans and mainstream media propagandists that this mythical rising tide of wealth lifts all boats. If that’s the case, I find it quite perplexing that the homeless population in America’s financial center is exploding five years into the so-called recovery. Meanwhile, let’s not forget that 22% of the city is on food stamps.

How is this possible? Because we have witnessed five years of egregious corruption and crony capitalist theft, not a genuine recovery. That’s how.

The war on the homeless has been accelerating in recent years, as city officials across the nation would rather hide the problem that admit the economic recovery is bullshit. In most cases, the measures are subtle, but have the desired effect of pushing homeless people away from public view (in Columbia, South Carolina it is not so subtle and you need a $120 weekly permit to feed the homeless). NYC officials are a bit more nuanced. For example, I was shocked to see a sign posted in a park in Manhattan that said adults can’t come in without children. It looked something like this:

Screen Shot 2014-04-14 at 10.25.22 AM

No matter what spin somebody may put on this, the primary goal is to keep homeless people away.

I grew up in New York City and was a toddler in the early 1980’s, not exactly the safest period in the city. I remember playing in the parks around my parents’ apartment and there were homeless people everywhere. It was a part of my childhood for better or worse, but it was reality. I think I was better off knowing the homeless existed than if they had all been pushed away to the outskirts and everyone pretended they weren’t there.

The thing is, many of the very wealthy in New York City want to believe this bullshit story that things are generally getting better. Meanwhile, the statistics speak for themselves, and according to HUD, the homeless population in NYC increased 13% last year. That’s quite disturbing five years into raging bull market for stocks.

Moving along, we now we find that homeless people are living in coffin-sized spaces inside the frame of the Manhattan Bridge.

From the New York Post:

Crafty hobos are turning the Manhattan Bridge into a veritable shantytown, complete with elaborate plywood shacks that are truly “must see to believe.”

One of the coffin-sized living spaces — which have been built into the bridge frame near the Manhattan entrance — is secured with a flimsy bike lock and bolted to a metal beam by its inhabitant.

The pods are built into the underside of the upper deck, below car traffic but above the subway and bike lanes.

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Why the Standoff at the Bundy Ranch is a Very Big Deal

If you haven’t been following the unfolding drama at the Bundy Ranch about 80 miles northeast of Las Vegas you need to start now. The escalating confrontation between irate local residents and federal agents of the Bureau of Land Management (BLM) has the potential to take a very dangerous turn for the worse at any moment, as hundreds of militia members from states across the country are expected to descend upon the area and make a stand with 67-year-old Nevada rancher Cliven Bundy.

Before I get into any sort of analysis about what this means within the bigger picture of American politics and society, we need a little background on the situation. The saga itself has been ongoing for two decades and the issue at hand is whether or not Mr. Bundy can graze his 900 head of cattle on a particular section of public lands in Clark County. Cliven Bundy has been ordered to stop on environmental grounds to protect the desert tortoise, but he has stood his ground time and time again. As a result, the feds have now entered the area and are impounding his cattle. According to CNN, Between Saturday and Wednesday, contracted wranglers impounded a total of 352 cattle. The Bundy family, as well as a variety of local residents have already had confrontations with the BLM agents. Tasers have been used and some minor injuries reported. Most significantly, militia members from across the country have already descended upon the area and it seems possible that hundreds may ultimately make it down there.

To me, the argument of who is right and who is wrong in this situation is the least interesting part of the story. I have noted time and time again that the feds are becoming increasingly out of control and belligerent to American citizens. We know the stories (think Aaron Swartz) and we know the overall trend. However, the reason the Bundy Ranch confrontation is so interesting, is that for whatever reason this particular incident seems to be striking a chord of dissent. It is often times the most random, unforeseen and innocuous things that spark social/political movements. This standoff has it all.

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The Revolving Door Spins Again – Former SEC Enforcer to Join Private Equity Giant KKR

Nothing is more important to a fully streamlined corrupt crony capitalist economy as the ever-present “revolving door” between regulatory agencies and the industries/companies they regulate. These moves have become so pervasive in American society that it is simply impossible to keep up with them all, but I try my best to cover the most egregious examples whenever possible. As a refresher, I suggest reading the following:

How Obama’s Chief Negotiators on the Trans-Pacific Partnership Treaty Received Huge Bonuses from Mega Banks

Revolving Door 2014: Former Head of the Federal Communications Commission Joins Carlyle

Journalism’s Revolving Door: Washington Post’s National Security Editor Joins the State Department

The Pentagon’s Revolving Door with Defense Contractors…Some Shocking Statistics

How Jack “Bailout Bonus” Lew Got to Treasury

It Never Ends: Top Obama Housing Advisor Jumps Ship to Wells Fargo

Meet Liz Fowler: Architect of ObamaCare Jumps Ship to Johnson & Johnson

Meet Mary Jo White: The Next SEC Chief and a Guaranteed Wall Street Patsy

I recognize that’s a lot of catching up to do, but you get my point. There were many other posts I didn’t even mention in the interest of not overdoing it.

In any event, last evening we were informed of another example. Bruce Karpati, a former top Securities and Exchange Commission lawyer, is moving on to become global chief compliance officer at private equity giant KKR. He left the SEC last May when he was  chief of the Enforcement Division’s Asset Management Unit. Naturally, he went to work for an asset manager, Prudential’s mutual fund unit specifically. Now that he thinks enough time has passed, he is going for the real money.

From the Wall Street Journal:

Bruce Karpati, a former top Securities and Exchange Commission lawyer, is heading to private-equity giant KKR & Co. to become global chief compliance officer, said people familiar with the matter.

Mr. Karpati, most recently the chief compliance officer for Prudential Financial Inc’s mutual fund business, is expected to start at KKR later this month, one of the people said.

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Crony Congress – Rep. Mike Rogers Has Links to the Benghazi Scandal Yet is in Charge of the Investigation

For those of you who don’t know Congressman Mike Rogers, he is the Representative hailing from Michigan’s Eighth District. He is also one of the biggest blowhard, chicken-hawk defenders of unconstitutional NSA spying in all of Washington D.C.

Back in 2012, he gave his support to internet spy bill CISPA by proclaiming: “Stand for America! Support this bill!” Naturally, this clown would also serve as Chairman of the House Intelligence Committee.

Rogers is notorious for being one of the staunchest critics of Glenn Greenwald. For example, earlier this year he made up all sort of lies about Greenwald in an attempt to smear the journalist. In response, Greenwald had the following to say about Rogers back in February:

“First is that he’s not only lying, and he is lying, but he not only is lying but he knows that he’s lying. This what is Mike Rogers is notorious for in Washington is literally making things up and smearing political opponents and journalists he doesn’t like.

I defy Mike Rogers, if he wants to make that accusation, to come forward and present actual evidence that any journalist has stolen, has sold documents or stolen material or engaged in any kind of criminality. He has no evidence, he’s just making things up.”

You’d think a guy like Rogers who aggressively lobs untrue accusations against a journalist trying to inform the American public about government criminality would have a squeaky clean background himself. After all, he was a former FBI agent. You’d think that, but you’d be wrong.

Incredibly, Dick Morris points out that until recently Mike Rogers’ wife was the president and the CEO of the company that was contracted by the State Department to provide intelligence-based and physical security services. While this sort of crony capitalism is seen as “business as usual” in the cesspool that is D.C., the really crazy part of this story is that as Chairman of the House Intelligence Committee, Rogers is charged with investigating the adequacy of security at the Benghazi compound prior to the September 11, 2012 terrorist attack.

You can’t find a bigger conflict of interest than that…

Dick Morris writes:

Congressman Mike Rogers (R-Mich.), as Chairman of the House Intelligence Committee, is charged with investigating the adequacy of security at the Benghazi compound prior to the September 11, 2012 terrorist attack.

His wife, Kristi Clemens Rogers was the president and the CEO of the company that was contracted by the State Department to provide that security!

Mrs. Rogers, until recently, served as president and CEO of Aegis LLC, the contractor to the United States Department of State for intelligence-based and physical security services.

Aegis, a British private military company with overseas offices in Afghanistan, Bahrain, Iraq, Kenya, Nepal and the U.S., won a $10 billion, 5-year contract with the State Department to provide security for U.S. diplomatic posts around the world.

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An Iowa City with a Population of 7,000 Will Receive Armored Military Vehicle

I’ve covered the militarization of the domestic police force on several occasions on this website. For those of you who need a refresher, I suggest reading the following:

There are Over 50,000 SWAT Team Raids Annually in America

Retired Marine Colonel to New Hampshire City Council: “We’re Building a Domestic Army”

Video of the Day – Thuggish Militarized Police Terrorize and SWAT Team Iowa Family.

Moving along to the subject of today’s absurdity, the tiny city of Washington, Iowa with a population of 7,000 and 11 police officers, will be receiving a Mine Resistant Ambush Protected (MRAP) vehicle. Yes, they will be employing one of these in the field:

MRAP

These things normally cost $500,000, but will be given to Washington, Iowa for free under a Defense Department program that gives surplus military equipment to domestic law enforcement.

Matthew Byrd writes in the Daily Iowan that:

Sometimes the news is just so drearily awful that you have to sit back and almost appreciate the pure comedy induced by it.

Take this item from Washington, Iowa, where the local police have recently acquired an MRAP vehicle (short for Mine Resistance Ambush Protected) through a Defense Department program that donates excess vehicles originally produced for the wars in Iraq and Afghanistan to local police departments across the United States, including other Iowa towns such as Mason City and Storm Lake.

The MRAP weighs an impressive 49,000 pounds, stands 10-feet tall, and possesses a whopping six-wheel drive. Originally designed to resist landmines and IEDs, it sure seems like the MRAP will come in handy for the notorious war zone otherwise known as Washington County, Iowa.

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Are Tensions About to Flare Up Between the U.S., Iran and Russia Over Oil Barter Deal?

While people remain focused on Russia’s annexation of Crimea and fears that Putin may make aggressive moves in eastern Ukraine, it may be a barter deal between Russia and Iran for oil that takes tensions between the U.S. and Russia to a whole other level.

For example The Washington Post reports that:

As Russia seems poised to extend its land grab into eastern Ukraine, Vladimir Putin is also edging toward a deal with Iran that would make a mockery of the P5+1 interim agreement with Iran. News reports confirm that ”Russia could exchange non-monetary goods for up to 500,000 barrels of Iranian petroleum each day under the possible arrangement, which may ultimately pave the way for as much as $20 billion in trade, insiders told [Reuters] for a Wednesday report.” Mark Dubowitz of the Foundation for the Defense of Democracies, a sanctions guru, is quoted as saying, “If Washington can’t stop this deal, it could serve as a signal to other countries that the United States won’t risk major diplomatic disputes at the expense of the sanctions regime.” Even the State Department acknowledges that the deal would violate the interim deal.

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