U.S. DEPUTY DEFENSE SECRETARY CARTER ON THE U.S.- PHILIPPINE ALLIANCE

Deputy Defense Secretary Ash Carter, right center, meets with Philippine Defense Secretary Voltaire Gazmin, left center, at the Ministry of Defense in Manila, the Philippines, March 19, 2013. DOD photo by Glenn Fawcett

FROM: U.S. DEPARTMENT OF DEFENSE
Carter: U.S., Philippines Enjoy 'Longstanding' Alliance
By Cheryl Pellerin
American Forces Press Service

MANILA, Philippines, March 19, 2013 - On the third stop of his weeklong trip to Asia, Deputy Defense Secretary Ash Carter met today with top officials here and carried greetings from President Barack Obama and Defense Secretary Chuck Hagel to be delivered to President Benigno Aquino III.

During meetings with the president's executive secretary, Paquito Ochoa, Defense Secretary Voltaire Gazmin and Foreign Affairs Secretary Albert del Rosario, Carter discussed a range of regional range of regional security issues important to the U.S.-Philippines alliance.

Carter began his visit in Manila by meeting with Gazmin at Camp Aguinaldo, the military headquarters of the Philippine Army and the Armed Forces of the Philippines, or AFP. The men discussed the importance of the U.S.-Philippines alliance, including the continued U.S. commitment to work together on maritime domain awareness, capacity building of the AFP, defense modernization and continued assistance in counterterrorism. Carter emphasized the importance of working together to resolve incidents.

Later in the day, Carter met with del Rosario and senior Foreign Affairs Department officials, followed by a lunch that del Rosario hosted. The two discussed a range of issues including U.S.-Philippine efforts to enhance cooperation across security, diplomatic and economic sectors, the Association of Southeast Asian Nations and a code of conduct for resolving disputes in the South China Sea, as well as other bilateral and regional topics.

Carter wrapped up his Manila visit by meeting with Ochoa at the Malacanang Palace complex. The deputy defense secretary addressed issues involving the U.S. rebalance to Asia and concerns about the possible impact to that effort because of defense budget cuts. Discussions ranged from ASEAN and the regional security architecture to Philippine defense modernization efforts.

During a media interview this afternoon, Carter said he came here "because this region of the world is so important to America's future in many ways -- political and economic, but also in the security sphere."

And because of his position as deputy defense secretary, he said, "obviously, I'm focused on the security area. In that context, the United States has deep and abiding security roots here."

As he met with officials, Carter took time to share a more personal reason for his appreciation of the Philippines. A physicist by training, the deputy defense secretary received part of that training in at the Massachusetts Institute of Technology. In the coffee room there, he got to know a senior fellow from the MIT Center for International Studies.

"He was such a great advisor and mentor to students," Carter said of the man who turned out to be Benigno Aquino Jr., father of the current president of the Philippines. Aquino was assassinated in 1983.

"He and his wife would come to social events at MIT, ... and I got to know them and had great affection for them, ... so I've always had a little place in my heart for the Aquino family," he said. "And that's another good reason to be here in the Philippines."

The United States and the Philippines "have lots of human connections together, all of us," Carter said, "as well as having important global responsibilities and regional responsibilities that we exercise together."

U.S. engagement is part of what has helped to maintain the region's security structure since World War II, he added. Such engagement has allowed Japan, South Korea, the Philippines and the rest of Southeast Asia "to rise and prosper because they've had peace and security, and now China and India are rising and prospering."

The Philippines, Carter observed, "is a longstanding friend and ally and partner with us in providing that kind of security."

The United States recognized the Philippines as an independent state and established diplomatic relations in 1946. Except for the 1942-to-1945 Japanese occupation during World War II, the Philippines had been under U.S. sovereignty since the end of the Spanish-American War in 1898, according to a State Department fact sheet.

The U.S.-Philippine Bilateral Strategic Dialogue -- the third held last December in Manila -- advances discussion and cooperation on bilateral, regional and global issues. The United States has designated the Philippines a major non-NATO ally, and the nations have close security ties.

The Manila Declaration, signed in 2011, reaffirmed the 1951 U.S.-Philippines Mutual Defense Treaty as the foundation for a robust, balanced and responsive security partnership. Such a treaty, Carter said, "opens the door to the U.S.-Filipino relationship, which exists along with other key treaty relationships in the region."

During this week's Asia trip, the deputy defense secretary has visited South Korea and Japan, which are also key treaty partners. And the United States has important treaty relationships with Australia and Thailand.

"These longstanding treaty relationships and other kinds of emerging partnerships are ... part of a historical role that we play with countries in this part of the world -- to protect them, to protect us, but also, very importantly, that is what provides the foundation for peace and security in the region," he said.

"That's the climate in which all countries, the Philippines among them, have been able to ... develop politically and prosper economically in an environment of peace," Carter said. "That's what everybody deserves, and that's what we're about when we talk about our alliance with the Philippines and our alliance structure in this part of the world."

Fin prochaine des observations d’Herschel

Fin prochaine des observations d’Herschel

NEWS FROM AFGHANSTAN FOR MARCH 20, 2013

 

U.S. Army Staff Sgt. Claudia Caberoherbas, right, provides perimeter security outside a village where troops search for a weapons cache in the Spin Boldak district in Afghanistan's Kandahar province, March 3, 2013. Caberoherbas is assigned to the 2nd Infantry Division's Company B, 2nd Battalion, 23rd Infantry Regiment, 4th Striker Brigade Combat Team. U.S. Army photo by Staff Sgt. Shane Hamann

 

FROM: U.S. DEPARTMENT OF DEFENSE
Combined Force Arrests Taliban Facilitator in Kandahar
From an International Security Assistance Force Joint Command News Release

KABUL, Afghanistan, March 20, 2013 - A combined Afghan and coalition security force arrested a Taliban facilitator in the city of Kandahar in Afghanistan's Kandahar province today, military officials reported.

The facilitator was responsible for procuring components for improvised explosive devices, building them, and distributing them to other insurgents or personally planting them for attacks against Afghan and coalition forces, officials said.

In Afghanistan operations yesterday:

-- A combined force in Balkh province's Mazar-e Sharif district arrested a Taliban facilitator who is accused of procuring IED components, suicide vests and other weapons and distributing them to insurgents for attacks against Afghan and coalition forces. At the time of his arrest, he was believed to be actively planning an attack against high-ranking government officials in conjunction with celebrations marking the traditional Afghan new year, or Nowruz. The security force also arrested another insurgent.

-- In Helmand province's Nahr-e Saraj district, a combined force killed a man who was engaging in insurgent activity.

In other news, Afghan and coalition security forces today confirmed the death of a Taliban leader, Ruhulla, in Nangahar province's Khugyani district March 17. Ruhulla was a known IED expert responsible for numerous attacks against Afghan and coalition forces.

ANTARTIC INSECTS AND THE GENETICS OF HOW TO COPE WITH THE ENVIRONMENT

Photo:  Antartica.  Credi:  CIA World Factbook.

FROM: NATIONAL SCIENCE FOUNDATION
Antarctic and Arctic Insects Use Different Genetic Mechanisms to Cope With Lack of Water
Although they live in similarly extreme ecosystems at opposite ends of the world, Antarctic insects appear to employ entirely different methods at the genetic level to cope with extremely dry conditions than their counterparts that live north of the Arctic Circle, according to National Science Foundation- (NSF) funded researchers.

Writing in the Proceedings of the National Academy of Sciences, the researchers concluded, "Polar arthropods have developed distinct... mechanisms to cope with similar desiccating conditions."

The researchers noted that aside from the significance of the specific discovery about the genetics of how creatures cope in polar environments, the new finding is important because it shows how relatively new and developing scientific techniques, including genomics, are opening new scientific vistas in the Polar Regions, which were once thought to be relatively uniform and, relatively speaking, scientifically sterile environments.

"It's great to have an Antarctic animal that has entered the genomic era," said David Denlinger, a distinguished professor of entomology at Ohio State University and a co-author of the paper. "This paper, which analyzed the expression of thousands of genes in response to the desiccating environment of Antarctica, is just one example of the power that the genomic revolution offers for advancing polar science. "

The collaborative research which included contributions from scientists at Ohio State University, the Centre National de la Recherche Scientifique (National Center for Scientific Research) in France, Catholic University of Louvain in Belgium, Stanford University, and Miami University in Ohio--was supported in part by the Division of Polar Programs in NSF's Geosciences Directorate.

Polar Programs manages the U.S. Antarctic Program, through which it coordinates all U.S. research on the southernmost continent and aboard ships in the Southern Ocean as well as providing the necessary logistical support.

The finding also adds to the developing picture of the Polar Regions as having similarities and yet subtle and perhaps very important differences, previously undetected by science. NSF-funded scientists late last year, for example, published research indicating that differing contributions of freshwater from glaciers and streams to the Arctic and Southern oceans may be responsible for the fact that the majority of microbial communities that thrive near the surface of the Polar oceans share few common members.

Although Antarctica's surrounding oceans and coastal margins are home to a variety of large creatures such as seals, penguins and whales, insect life is rare, except on the Antarctic Peninsula.

There, the Antarctic midge, Belgica antarctica, occupies its unique ecological niche.

The research team that produced the new findings collected specimens for their research from offshore islands near NSF's Palmer Station on Anvers Island in the Peninsula region.

Surrounded by an ocean, the Antarctic continent is a polar desert where creatures have adapted to life with infrequent access to liquid water. The researchers note that Antarctic midge larvae, for example, "are remarkably tolerant of dehydration, surviving losses of up to 70 percent of their body water."

They also note that, in general, "insects, in particular, are at high risk of dehydration because of their small body size and consequent high surface-area-to-volume ratio."

Among Antarctic insects, the ability to tolerate dehydration is an important evolutionary development, allowing the creatures to successful survive the cold and dry southern winter.

"The loss of water enhances acute freezing tolerance," they write. "In addition, overwintering midge larvae are capable of undergoing another distinct form of dehydration, known as cryoprotective dehydration.

Cryoprotective dehydration is a mechanism in which a gradual decrease in temperature in the presence of environmental ice "creates a vapor pressure gradient that draws water out of the body, thereby depressing the body fluid melting point and allowing larvae to remain unfrozen at subzero temperatures."

The researchers compared the midge's strategy to those of other terrestrial arthropods that cope with prolonged periods when water is lacking, including the Arctic springtail Megaphorura arctica and Folsomia candida, which are more widely distributed across the globe; both species are members of a group of arthropods, which are closely related to insects, known as Collembola.

The differences, they concluded, lie in the way that various genes express themselves.

After a detailed analysis of gene expression in the various species, the researchers concluded that "although B. antarctica and M. arctica are adapted to similar environments, our analysis indicated very little overlap in expression profiles between these two arthropods."

They add that "these differences in expression patterns may reflect different strategies for combating dehydration; whereas B. antarctica shuts down metabolic activity and waits for favorable conditions to return, F. candida [instead] relies on active water-vapor absorption to restore water balance during prolonged periods of desiccation."

They further add that because of the taxonomic difference between the Antarctic midge and the collembolan species with which gene expression was compared, more work is needed "to better understand the evolutionary physiology of dehydration tolerance in this taxonomic family."

-NSF-

SEC FILES FRAUD CHARGES REGARDING MEXICAN BONDS

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today filed fraud charges against E-Monee.com, Inc. ("E-Monee"), its president, Estuardo Benavides ("Benavides"), and one of its directors and a licensed Florida attorney, Robert B. Cook ("Cook"), for offering shares in E-Monee to investors under the false pretense that the company owned Mexican bonds worth billions of dollars.

The SEC’s complaint, filed in the United States District Court for the Southern District of Florida, charges E-Monee.com, Inc., Estuardo Benavides, 59, of Margate, Florida, and Robert C. Cook, 70, of Tequesta, Florida for fraudulently offering shares in E-Monee from at least January 2010 through May 2011, while claiming, among other things, the company owned Mexican bonds purportedly worth approximately $5 billion, and that E-Monee’s shares would substantially increase in value. The complaint alleges that the Mexican bonds the company owned, in reality, were essentially worthless and there was no valid basis for the claims by Benavides and Cook that E-Monee’s shares would substantially increase in value.

The SEC’s complaint charges E-Monee, Benavides and Cook with violations of Section 17(a)(1) and 17(a)(3) of the Securities Act of 1933. The SEC is seeking permanent injunctions and civil money penalties against all three defendants. The SEC will also seek penny stock bars against Benavides and Cook.

The SEC acknowledges the substantial assistance of the U.S. Secret Service in this investigation.

GEN. JACOBY TESTIFIES REGARDING NORTHCOM'S WATCH

FROM: U.S. DEPARTMENT OF DEFENSE
Northcom Maintains Watch Over Homeland, Commander Says
By Donna Miles
American Forces Press Service

WASHINGTON, March 19, 2013 - "We have the watch," the commander of U.S. Northern Command and North American Aerospace Defense Command told Congress today, emphasizing the dual commands' vigilance in protecting the homeland.

"That's my No. 1 priority mission," Army Gen. Charles H. Jacoby Jr. told the Senate Armed Services Committee, while acknowledging concerns that budget uncertainties could hamper the commands' ability to step ahead of evolving threats.

Jacoby reported on successes of Operation Noble Eagle, a mission stood up immediately after the 9/11 terrorist attacks and that continues today, providing "well-honed and uncompromising 24/7 defense of our skies."

But the security environment is becoming "increasingly complex and dynamic," he warned. "Threats are adapting and evolving. Technologies advance and proliferate, creating greater vulnerability in the homeland than ever before."

This complicates the homeland defense mission, he said, from cyber and ballistic missile defense to efforts to counter transnational criminal organizations.

Budget uncertainties add another wrinkle, he said, injecting additional uncertainties in what capabilities can be developed or procured to deal with these threats.

"Readiness concerns are sure to grow," Jacoby said. The most pressing, he said, will be unforecasted cuts to training and exercise programs that he called "fundamental to building partnerships essential for responding to events in the homeland."

"Unexpected loss of service capabilities and readiness could also, in the future, erode our ability to conduct our critical homeland defense missions," he said.

In the midst of these uncertainties, Northcom and NORAD will remain committed to deterring, preventing and defeating aggression against the United States and Canada, Jacoby said.
Meanwhile, Northcom also continues to focus on its mission of providing defense support to civil authorities, as required.

"Our citizens have a high expectation of our ability to defend and support them here in the homeland, and rightfully so," Jacoby told the Senate panel. "In the event of a natural or manmade disaster, Northcom meets those expectations by leveraging a tremendous capability and capacity of the Defense Department to support a lead agency," such as the Federal Emergency Management Agency.

Jacoby recognized Northcom's role in interagency response to Hurricane Sandy. "Hurricane Sandy offered us a glimpse of what a complex catastrophe which spanned several states and regions could look like," he said.

Jacoby called the appointment of dual-status commanders during the response one of the most important initiatives in the area of defense support to civil authorities in a decade that promotes a unity of effort among federal and state responders.

He pledged to continue maturing the successful dual-status command construct that Congress approved through the 2012 National Defense Authorization Act "so we will be ready to act swiftly and with unity of effort when the unthinkable happens and we are called."

In addition, he vowed to continue advancing security cooperation efforts with Mexico and the Bahamas. These efforts help the United States and its neighbors stand as a united force against their common goals, he said.

"When it comes to the security of North America and the shared pursuit of enduring stability and prosperity, we cannot afford to work in isolation," Jacoby said in his prepared statement.

NATO SEC. GENERAL RASMUSSEN DISCUSSES AFGHANISTAN

FROM: U.S. DEPARTMENT OF DEFENSE

NATO Secretary General Discusses Progress in Afghanistan

By Jim Garamone
American Forces Press Service

WASHINGTON, March 18, 2013 - Though setbacks may happen, real progress is taking place in Afghanistan, NATO Secretary General Anders Fogh Rasmussen said in Brussels today.

In a news conference at NATO headquarters, Rasmussen discussed a recent trip to Afghanistan's Helmand province, once a Taliban stronghold, to visit International Security Assistance Force service members and meet with Afghan officials.

Rasmussen said he saw a significant shift from NATO control and operations to Afghan forces in charge of security.

"The Afghan army and police are in charge of three quarters of the province," he added. "They are already conducting nearly all the security operations. ISAF's role has already shifted to training, advising and assisting."

Rasmussen stressed that in places such as Helmand, Afghan forces "are doing the job."

Now, the challenge for NATO and partner nations shifts from doing the mission to sustaining the effort, he said. "That means providing the training they need in leadership," he told reporters. "That means specialized skills such as logistics, management and maintenance."

The ISAF mission ends at the end of 2014, and Rasmussen acknowledged that the mission will not be easy. "There will be hard fighting. There will be casualties, and there may be setbacks," he said. "But already Afghanistan's forces are stronger than they have been at any other moment in history. They will continue to grow stronger, more effective and more experienced. And we are determined to support them through 2014 and beyond."

Security is just one aspect of progress in the country, he noted. Local governments are taking hold in Helmand, the secretary general said, and elected district councils are investing funds in development.

"This is the Afghan people's chance to take control of their security and to take control of their destiny," he added. "I believe, and the Afghans with whom I spoke believe, that this is a chance which they must seize."

In the Afghan capital of Kabul, Rasmussen said, he met with young Afghans who are committed to a democratic and stable country.

"A new generation has emerged in Afghanistan," he said. "This young generation wants a new way of life, not a return to the dark days of the past. The Afghan people have tasted freedom and seen what progress can bring. In the future, the enemies of Afghanistan must not only fight a strong Afghan army, they will also have to fight the aspirations of the Afghan people toward freedom, peace and prosperity."

HHS CLAIMS MANY GET SICK DUE TO IMPROPER FOOD HANDLING

Photo Credit:  FDA

FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
From the U.S. Department of Health and Human Services, I’m Nicholas Garlow with HHS HealthBeat.

Eat and be well? The Centers for Disease Control and Prevention says that, each year, 1 in 6 of us gets sick from food, largely due to improper handling and cooking of ingredients.

At the CDC, researcher Hannah Gould:

"Four foods have been linked to many outbreaks in the last two years. Beef, poultry, such as chicken and turkey, milk, particularly milk th at hasn’t been pasteurized, and fish."

Gould says you can’t tell when something has gone bad just by looking and smelling. So she says the best treatment is prevention in preparation. Clean by washing your hands and food prep surfaces. Separate so meat doesn’t touch vegetables. And cook and chill to correct temperatures.

An article on food handling is in CDC’s Morbidity and Mortality Weekly Report.

HHS HealthBeat is a production of the U.S. Department of Health and Human Services. I’m Nicholas Garlow.

Last revised: March 12, 2013

SECRETARY OF STATE KERRY MAKES REMARKS WITH IRISH FOREIGN MINISTER EAMON GILMORE

FROM: U.S. DEPARTMENT OF STATE, U.S.
Remarks With Irish Foreign Minister Eamon Gilmore
Remarks
John Kerry
Secretary of State
Treaty Room
Washington, DC
March 18, 2013


SECRETARY KERRY: Good afternoon, everybody. What a pleasure for me to welcome the Tánaiste here, our good Foreign Minister Eamon Gilmore. Thank you very, very much. He was kind enough to come all the way to Shannon Airport the other day to meet me when I was coming back from the Middle East. And we had a wonderful – I can’t even remember, it was early morning or late afternoon, it was such a mix. But we had a great visit.

It’s my pleasure now to welcome him here. He’s come in to celebrate St. Patrick’s Day, and we’re very happy to wish all the people of Ireland a Happy St. Patrick’s Day. You know what Ireland means to America, and particularly to those of us from Boston. So it’s great to welcome you here. We are so appreciative for the partnership for the EU presidency and the agenda of Ireland right now as the EU president. And in addition to that, the trade initiatives, the economic initiatives, their leadership on human rights and other issues, and the process that continues to bring peace to Northern Ireland.

We’re very, very appreciative, so welcome.

FOREIGN MINISTER GILMORE: Thank you very much, indeed, Secretary Kerry. And it’s a great pleasure to meet you again, and in particular, to meet you on – we no longer say St. Patrick’s Day. It’s kind of more St. Patrick’s week now, but – (laughter) – we’re here for St. Patrick’s week.

And I want to, first of all, emphasize again the very close cooperation that exists between Ireland and the United States. We’re hugely appreciative of the support that the United States and successive administrations have given to the efforts to bring peace to Northern Ireland and to maintain the peace in Ireland. We have a particular relationship now because Ireland holds the presidency of the European Union at this critical time when we are beginning the process of developing a trade and investment partnership between the United States and the European Union, which I believe will be to the mutual benefit of both the U.S. and Europe, and particularly Ireland because of the large amount of direct investment that we got from the United States.

And of course, we work in cooperation in a number of areas internationally. We – our aid programs, for example, we work together in Africa, the Thousand Days Initiative, the Scaling Up Nutrition addressing world hunger. And we are now both members of the Human Rights Council of the United Nations, where we give high priority to a range of human rights issues.

So it’s a great pleasure to meet you here again. I’m glad to meet you on home turf. And again, I remember very fondly the discussions that we had in Shannon. I can’t promise that I’ll meet you every time that you pass through Shannon. (Laughter.)

SECRETARY KERRY: Promise me my Guinness? (Laughter.) I had a wonderful half-pint.

FOREIGN MINISTER GILMORE: Very moderate.

SECRETARY KERRY: Very moderate.

FOREIGN MINISTER GILMORE: Thank you.

SECRETARY KERRY: Thank you. Great to see you. Thank you. Thank you all very much.

45th Space Wing Launches Second SBIRS GEO Satellite

45th Space Wing Launches Second SBIRS GEO Satellite

Press Briefing | The White House

Press Briefing | The White House

SEC OBTAINS ASSET FREEZE AGAINST MASSACHUSETTS-BASED INVESTMENT ADVISER STEALING MONEY FROM CLIENTS

FROM:  SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission today announced an asset freeze against a Massachusetts-based investment adviser charged with stealing money from clients who were given the false impression they were investing in a hedge fund.

In a complaint unsealed today in federal court in Boston, the SEC alleges that Gregg D. Caplitz and Insight Onsite Strategic Management in Wilmington, Mass., raised at least $1.1 million from clients that was used for purposes other than investing in the hedge fund they purported to manage. Investor money was merely transferred to the firm's chief investment officer and other members of her family who spent it on personal expenses. The firm reported in SEC filings that it has $100 million in assets under management, however the purported hedge fund actually has no assets.

U.S. District Judge Mark L. Wolf granted the SEC's request for an emergency court order to freeze the assets of Caplitz and his firm as well as others who received investor money and have been named as relief defendants for the purposes of recovering investor funds in their possession.

According to the SEC's complaint, Caplitz's scheme began around 2009. For example, Caplitz convinced one client and his wife to invest $275,000 in the hedge fund that Caplitz claimed would generate them about $1,000 per month in returns. Caplitz also solicited a 20-year client who after considering his sales pitch decided not to invest in the hedge fund because she considered it too risky of an investment for someone her age. But Caplitz apparently took action to obtain funds from the client's IRA account and wired thousands of dollars to an Insight Onsite Strategic Management bank account. The client was not aware of the transfers and did not authorize them.

The SEC alleges that instead of using investor funds to purchase shares in a hedge fund or to manage or develop a hedge fund, Caplitz transferred control of client money to Rosalind Herman, his friend who works at the firm. Investor funds also were transferred to her sons Brad and Brian Herman, daughter-in-law Charlene Herman, and a company called Knew Finance Experts. The Hermans, who all live in Las Vegas, own that company. The Hermans used investor money to pay legal bills and other personal expenses at gas stations, drugstores, and restaurants.

The SEC alleges that as part of his scheme, Caplitz obtained funds from a real estate investment trust (REIT) by falsely representing that a hedge fund he operated was interested in making an investment in that trust. The public, non-traded REIT gave $135,000 to Caplitz so he could conduct due diligence on the REIT as a precursor to his making a $5 million investment that never materialized.

The SEC alleges that Caplitz and Insight Onsite Strategic Management violated Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5, Section 17(a) of the Securities Act of 1933, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The Complaint seeks a permanent injunction plus disgorgement, prejudgment interest, and a penalty against Caplitz and his firm. The complaint also names the four Hermans and Knew Finance Experts as relief defendants and seeks disgorgement plus prejudgment interest.

CFTC COMMISSION CHILTON SPEAKS AT NATION GRAIN AND FEED ASSOCIATION'S ANNUAL CONVENTION

Photo:  Food.  Credit:  National Institue Of Health.

FROM: U.S COMMODITY FUTURES TRADING COMMISSION
"The New Prospectors"
Speech of Commissioner Bart Chilton to the National Grain and Feed Association’s, 117th Annual Convention, San Francisco, California
March 18, 2013
Introduction: The Gold Rush

Hi-ya! Thanks to Todd Kemp for the invitation to be with you in San Francisco, the great Dianne Feinstein's city. Nancy Pelosi's town. And a state that boasts many superb government servants like Senator Barbara Boxer and your earlier speaker Congressman Jim Costa.

It is hard to believe this is NGFA’s 117th convention. That’s way back. Your first was held in 1894. Wow!

I'm going to ask you to go with me now, to take a little trip, even further back—back to 1848.

It was a time of adventure and gambling on the future in a lawless land. That's when James Marshall discovered gold, about 140 miles from here. Not many people knew about the discovery. One fellow who had the ability to publicize the discovery, actually waited to do so. Samuel Brannan was the publisher of the San Francisco Star. Before touting the discovery, he set up a store to cater to gold prospectors. Then, he publicized the discovery. And he ran around San Francisco with a jar of gold in his clutches saying something like, "Gold, it's gold I tell ya!" And he made a fortune.

Brannan, and there's a street named after him, was the original business prospector who made it big on the Gold Rush. But there were many business prospectors who never picked up a pan or a pick themselves. Levi Strauss, whose company is still headquartered here, first profited in dry goods and then with those first-ever, blue jean baby queen, riveted, denim work pants. Henry Wells and William Fargo formed Wells Fargo with those iconic stage coaches transporting people and money. They focus on the money now, with $1.42 trillion—one of the largest banks out there. And there was John Studebaker who traveled from Pennsylvania to prospect in his own way. He made and sold wheel barrows and did extremely well. With his profits, he headed to Indiana where he started that famous Studebaker company. First they built wagons, then years later they built those wonderful cars—cars like the Silver Hawk, with those fins. My father owned one and let me drive it when I was 16. "Be safe, Bart. Two hands on the wheel at all times, 10 and 2, 10 and 2."

The Chicago Prospectors: CBOT

In that same year, 1848, roughly 2,100 miles to the east, in Chicago, there was yet another group of business prospectors. These guys had nothing to do with the Gold Rush, but were trying to figure out a way to solve an immense problem in grain markets. You know the story: farm prices were whipsawed with wild boom and bust cycles. When farmers harvested, the cash markets usually tanked. Then, some months later, when the supply bottomed out, processors and consumers would pay profoundly for the commodities

This assemblage of 25 business prospectors, in addition to grain merchants and a banker, included a druggist, bookseller and a tanner. They met above a feed store on Water Street, and they started the Chicago Board of Trade (CBOT).

CBOT was a place to gather ‘round and haggle, and it worked. It helped even out prices and provided for some risk transfer. What this commodity cadre created was to markets what the Gold Rush was to California

With regard to markets, there remain commercial producers (farmers and processors, etc.), and speculators. The speculators, prospecting, mining and digging their way through these markets for their own riches, continue to gamble that they can make money from a futures contract by selling it later if prices change. While some things are still the same, commercials and speculators, a lot has transformed since 1848. We’ve come a long way, baby.

Morphing Market Prospectors

So here we are 164 years later, and like the gold prospectors who changed the way they ventured for gold, the markets prospectors—in particular the speculators—have also changed, or morphed. The question I ask as a regulator is this: Are markets still performing the purposes envisioned by those 25 imaginative market prospectors who met above that feed store on Water Street in Chicago?

Today, we have two new types of market prospectors, speculating in markets.

Massive Passives

First, we have seen a "financialization" of commodity markets by a class of traders I call Massive Passives. Let me explain. Investors looking to diversify their holdings sought out the derivatives world. Between 2005 and 2008 we saw roughly $200 billion come into the regulated futures markets in the U.S.—there was even more that we don’t know about in the previously unregulated swaps world.

Say a pension fund wanted to diversify into commodities. There’s nothing wrong with that from my perspective (although I know some Members of Congress who disagree), but the type of trading that they do is different than what speculators have typically done. Instead of getting in and out of markets, maybe based upon a drought or other natural disaster, or in the energy markets getting in or out related to the driving season, these very large funds, pension funds and others like exchange traded funds (ETFs) bought and held their market positions. They invested in futures markets more like they invest in security markets. They are both massive in size, and fairly passive in their trading strategy. They are fairly price insensitive. They don’t get in or out of the market because prices change a little here or there. They are in it for the longer term.

I’m not suggesting the Massive Passives shouldn’t be allowed to do this, but it is different and it has impacted markets. It has helped push prices up at times, and when we have seen large price movements, we have then witnessed some reciprocal downturns. There are many studies that document this phenomenon.

Here’s the worrisome part: too much concentration in markets can influence prices and these Massive Passive traders, have contributed to price abnormalities.

Now, many people would say that any liquidity is good liquidity. But, are we sure? There are times when there is so much Massive Passive liquidity on the buy side—those going long and staying long—that prices cannot be based on the fundamentals of supply and demand. We’ve seen it.

Take 2008, when crude went from right around $99.62 at the beginning of the year to $145.29 in July, then all the way back to $31.41 in December. For those that claim the Massive Passives had no role in that market distortion, explain how it happened. I’ve asked hundreds of times and there have been no efforts to enlighten us.

Now, if some of you think, as I do, that the Massive Passive influx was problematic in 2008, what’s happened since then? We’ve seen well over the amount of speculation we had in 2008 at various times since then. With such large concentrations of market participants being these new speculative prospectors, it continues to raise the concern about how prices can be distorted and contorted. That’s not good for the traditional market participants like many of you. It’s not good for consumers and it isn’t good for our economy.

In response to what was going on in 2008, Congress instructed us (as part of the Dodd-Frank financial reform law in 2010) to put in place what are called speculative position limits. To date, they’re not in place. There’s fierce opposition from the largest speculative prospectors on earth. However, we are working to get them in place and we will do so. Word!

We need to have our hands firmly on the wheel to ensure markets are safe—10 and 2, 10 and 2.

Cheetahs

In addition to the Massive Passives, we have some new prospectors speculating in markets with the most advanced computer technology. High frequency traders (HFTs), "cheetahs" I call them, due to their incredible speed, are out there 24/7/365 prospecting for micro dollars in milliseconds. That’s how speedily they trade.

If you divide a second into 1000 parts, they trade in those teeny tiny fractions of a second. If you’re going 100 miles an hour, a millisecond is the time it takes you to go two inches. I know that’s true because it’s on the Internet. You can’t put anything on the Internet that isn’t true. (I’m a French model, bonjour!)

There are some noble things about these high frequency trading cheetahs. They are, admittedly, very innovative prospectors in their own right. Some use complex algorithms that boggle the mind. The cheetahs also add some liquidity to markets. However, it is "fleeting liquidity" and at times "fantasy liquidity." Let’s think on this a bit more, shall we?

Fleeting Liquidity: These cheetah traders want to get in and outta markets in a hurry. In fact, they don’t want to hold any risk for very long—for sure they don’t want to carry it overnight. So, when we think back to those original market prospectors in 1848, a speculator might hold a farmer’s risk for many months. Not today. If you want to off-load your wheat, bean or corn crop risk for 5 seconds, I have just the cats for you. This liquidity is, at best, fleeting liquidity, and that is different. Do the cheetahs help fulfill the vision of those original Chicago prospectors—those guys above the feed store? I’m not sayin’ what the cheetahs are doing in this regard is bad. I’m just sayin’.

Fantasy Liquidity: Then, there is the appearance of liquidity that is, in numerous instances, really an illusion—fantasy liquidity

The Commodity Exchange Act (CEA or Act) is our regulatory bible. Section 4c of the CEA says that it is: "unlawful for any person to offer to enter into, or confirm the execution of a transaction involving the purchase or sale of any commodity for future delivery … if the transaction … (i) is, of the character of, or is commonly known to the trade as, a ‘‘wash sale’’ or ‘‘accommodation trade."

And there are exchange rules out there that say, "No person shall place or accept buy and sell orders in the same product and expiration month … where the person knows or reasonably should know that the … transaction(s) [is a] wash sale(s). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades."

Another exchange rule says, "No Market Participant shall … c. make or report any wash trade...."

So, wash sales are clearly against the law, and against exchange rules. However, in voluminous instances these cheetahs are engaged in this activity. When they do so, it might appear to be liquidity, but it is not. It isn’t really there. It’s fantasy liquidity. The cheetahs are essentially singing that old Billy Idol tune:

"Oh dancing with myself

Well there’s nothing to lose

And there’s nothing to prove

I’ll be dancing with myself."

Well, they have nothing to lose or prove because they aren’t taking on any risk whatsoever—zero, zippo, nada. They aren’t providing liquidity when they wash whatsoever.

Why would the cheetahs do that? Why would any exchange allow that? There are algorithms out there to stop cheetah trading programs from washing. They call this wash blocker technology. Why don’t all the cheetahs use it? We should require that they do so. Well, those are good questions which deserve more review. We need to ensure that we have the correct policies and procedures in place.

Oh, one final point: these HFT cheetahs aren’t even mentioned in Dodd-Frank. These traders were part and parcel to the Flash Crash on May 6th, 2010 when the markets dropped precipitously in 20 minutes time. However, Dodd-Frank was nearly finished and no new language was added. So I think Congress needs to act to give us some fairly basic regulatory tools to assist in our efforts to somewhat cage the cheetahs. During the Gold Rush, prior to California becoming a state, it was a lawless wild west. They set up Vigilante Committees that took the law into their hands. Well, I’m not suggesting that, but here are just some of the things that I’ve called on Congress to consider.

One: Cheetahs need to be registered. As crazy as it sounds, they don’t have to be registered now. Once they are registered, it provides us with authority to examine their books and records, among other things, which is a key to our oversight and enforcement duties.

Two: They should be required to test their programs before they are put into the live production environment. Some do that already, but it’s sort of on the honor system. Markets are too important to leave this matter to chance.

Three: These cheetah programs also need to have built-in kill switches that shut them down, should they become feral. After all, a runaway automated trading system is actually what instigated the Flash Crash. Yup, didn’t have both hands on the wheel and it caused a crash.

Four: Our penalty levels have become antiquated. In many cases, we are currently limited to $140,000 in civil monetary penalties per violation. That needs to go up—and not just for HFTs—but for all market participants, both individuals and entities, who break the rules.

With these changes, and potentially some others, we can have safer markets, 10 and 2.

Conclusion

When we look back at those prospectors in 1848, in California and in Chicago, they really set the stage for some unbelievable development on the coast and in markets, respectively. Both were monumental undertakings—spanning all those miles—and impact us still.

And while futures markets have worked exceedingly well since that time, we are seeing some of the new prospectors having an influence which can be problematic. Both the Massive Passives and the cheetahs raise a lot of concerns. The question, as with most things in government and life, is balance. How do we protect the good parts of what is going on while avoiding potential obstacles that can limit the important functions of these markets from the beginning? What we don’t want is another tragic story of gaming and adventure in a lawless land

What would those guys above that feed store on Water Street say? And here’s why asking that question is so important: those guys established the Chicago Board of Trade for purposes of price discovery. When markets work well, they are good for folks involved in the commercial business of the underlying commodity. It works for the prospecting speculators—be they Massive Passives or cheetahs or others, and it works for consumers. So we have a responsibility to ensure these markets are efficient and effective and that we have steady hands on the wheel—10 and 2, 10 and 2.

Thank you.

SECRETARY OF STATE KERRY SPEAKS AT ROSS SEA CONSERVATION RECEPTION IN WASHINGTON, DC

FROM: U.S. DEPARTMENT OF STATE
Remarks at the Ross Sea Conservation Reception
Remarks
John Kerry
Secretary of State
National Geographic
Washington, DC
March 19, 2013

Well, it’s my pleasure to follow the comedian from New Zealand. (Laughter.) I’m happy to follow two guys who speak kind of funny. (Laughter.)

What a pleasure to be here with Ambassador Mike Moore, former prime minister, who is a great person and a terrific leader. And I am so grateful to him for the leadership of New Zealand, a country I’ve had a chance to visit several times beginning way back when I was in the United States Navy; and also my friend Bob Carr, and thank you, Mr. Minister, for being here with us. I told him today I have not yet been lucky enough to get down under, but I am sure to get there very, very soon and I look forward to it.

Really privileged to have these two gentlemen supporting this endeavor, and I’m particularly grateful to the Pew Charitable Trust and to National Geographic. Terry, thank you so much for making this available tonight. Everybody’s favorite magazine; I think we all grew up with it and it just stays extraordinary. And tonight you’ll share in a film which will really underscore the importance of everything that that magazine tries to impart to all of us and has stood for all of these years.

I am a child of the ocean in many ways. From the first moment when I was a kid up at Cape Cod dipping my toes into Buzzards Bay looking for clams, literally a three or four year-old being shown the wonders of the ocean, shrimping and other things, to a time when we used to gather mussels in the evening and an hour later cook them and enjoy an incredible meal. Today, very difficult to find mussels anywhere in that area.

So I’ve watched the transition. I’ve seen it. As a senator I was privileged to bring efforts before the United Nations with Ted Stevens to end driftnet fishing, and also to try to work hard to preserve through a number of fisheries bills – I think I rewrote the Magnuson Fisheries Act at least three or four times – as we tried to get the balance right and protect our fisheries.

I’ve seen the struggle with respect to invasive species and I have seen this fragile ecosystem change before our very eyes, whether it’s a problem of acidification, a problem of pollution and development, a problem of ice melt and potential ecosystem collapse, to the rise of the sea levels, which is happening in various parts of the world more so than elsewhere, to the overfishing that takes place in almost every single fishery on the face of the planet.

We call this beautiful planet that we are privileged to inhabit for a short period of time, we call it Earth, but it could well have been called Ocean because three-quarters of it is ocean. And the oceans are responsible in many ways for life because of the cycle of rain and humidity and all of the protein and life that comes from the ocean. So we can’t be casual about it. We can’t be casual about it. And it is clear that we have an enormous challenge ahead of us as we face the extraordinary excess that we see with respect to each of those issues that I talked about: energy policy that results in acidification, the bleaching of coral, the destruction of species, the change in the Arctic because of the ice melt, and the change in the krill, the population of whales. The entire system is interdependent, and we toy with that at our peril.

So it is vital that we’ve come to this moment where we begin to see that this is not just an environmental issue. This is a security issue. It’s an economic security issue. It’s a national security issue. And it is in many ways a challenge with respect to energy security and our approach to energy policy, and ultimately it is a challenge to our commitment to science and facts and ultimately our basic sense of faith and what we believe in and our responsibility as human beings on this planet.

So climate change is coming back in a sense as a serious international issue because people are experiencing it firsthand. The science is screaming at us, literally, demanding that people in positions of public responsibility at least exercise the so-called "precautionary principle" to balance the equities and not knowing completely the outcomes at least understand what is happening and take steps to prevent potential disaster. I’ve often said to people, "What is the worst that could happen to you if you make a decision to put good energy policy in place and respond to what the science and the facts are telling us?" Well, the worst that can happen to you if you would employ a lot of people in alternative and renewable and clean energy; you would have less hospitalizations, cleaner air, more children with less asthma; and you would create an enormous number of jobs by moving to those new energy possibilities and policies and infrastructure. That’s the worst that can happen to you.

What if the other people are wrong and we are right; what’s the worst that can happen? The destruction of the ecosystem as we live with it today. So that’s really what’s on the line, and I’m here to tell you that, proudly, President Obama has put this agenda back on the front burner where it belongs, that he has in his Inauguration Address and in his State of the Union Address and in the policies he’s working on now said we are going to try to exercise leadership because of its imperatives.

So I want to thank the Pew Foundation and National Geographic for joining in this imperative. We need to try to pass the Law of the Sea. We attempted to do that earlier and we will continue to try to press for that. But most important when it comes to the Ross Sea and Antarctica, we’re not going to wait for a crisis before we take action. I think we’re making a smart choice now. We’re proud to join with New Zealand and Australia, two countries that have an extraordinary understanding of the sea and commitment to protecting it and who have been great stewards.

The Ross Sea, as we heard from Karen earlier, is a natural laboratory. And we disrespect it at our peril, as we do the rest of the ocean. The environment there is so extreme, as we know, that it’s difficult to live as a penguin or a killer whale or a seal, but they’ve adapted. And in their adaptation, we’ve learned what a remarkably diverse and productive ecosystem it is. We’ve learned from the scientists who go down there at McMurdo Station and spend those critical months trying to research it and understand it.

Now, you’ve probably never asked a waiter – any of you – for a nice Antarctic tooth fish, I suspect. You’re probably more used to ordering it as a Chilean sea bass. But American researchers working in the Ross Sea have actually discovered that the tooth fish produces a special antifreeze protein, and whenever ice crystals form in the fish’s cells, these proteins latch onto them and actually ferry the ice out of the body. That discovery has launched a whole new scientific field of structural biology, and it’s helping us to think now about other adaptations to extreme environment in new ways. It also has commercial applications. Think about perhaps fluffier bread or ice cream that stays frozen without ice crystals in it. These are real possibilities.

Another group of researchers from my home state of Massachusetts have done remarkable work studying the physiology of seals as they dive in the Ross Sea. And they’ve actually learned – they’ve helped unlock our understanding of hypoxia, which is a condition that develops when the body is deprived of oxygen. As a result of that, they have actually developed a treatment that has dealt with hypoxic newborns and saved more than 10,000 babies a year. That’s what we can learn, as well as many, many other things that we could talk about.

So imagine the possibilities of these discoveries that await us if we can encourage our innovators and our inventors to put our shoulder to the wheel and have the maximum preservation of the opportunity of that laboratory.

That’s why it is so important for the Commission for the Conservation of Antarctic Marine Living Resources to approve our proposals to establish this Marine Protected Area – and you’ve heard all the comparisons from Ambassador Mike Moore about roughly the size of this, that, several Californias, Alaska. It’s extraordinary. It will be quite simply the largest protected area in the world.

Now, I know the value of that, and the reason I know the value of that is I was the author in the Senate of the Marine Sanctuary called Stellwagen Bank off our cape. And we have seen what that preservation has been able to do. Imagine what this would do as a baseline study for what happens to the species that assemble in that area as we preserve a component of it as a managed fishery and the rest of it as a baseline laboratory for all of this research.

We also support the important proposal of Australia, the EU, and France that they have developed for protection of East Antarctica.

So my friends, I’d just summarize by saying this to you: Antarctica is a collection of superlatives. It is the highest, the coldest, the windiest, the driest, the most pristine, and the most remote place on Earth. And it has beguiled humankind for centuries as people have sought to understand it. Starting in the 1700s, explorers struggled to chart its contours and to cross its desolation without any guarantee ever of a safe return. And still today, curiosity and sheer doggedness are what draw people from all around the world to explore its southernmost shore.

So we signed the Antarctic Treaty in 1959. For those who doubt the benefit of treaties, go look at what we have achieved there, not to mention so many others. The world has shown that we can work together to ensure that Antarctica remains a place devoted to peace and devoted to expanding the human understanding of this fragile planet that we live on. This is one of the last places we could do this, and I think we owe it to ourselves to make it happen.

So I thank you for coming here tonight. I noticed coming in here there were a number of empty wine glasses on the tables, so I know you didn’t waste your time completely before I got here. (Laughter.) But I hope this movie will inspire you. I hope the support of our wonderful friends who understand the ocean as well as any people on this planet and who have worked to preserve it, I hope that will inspire all of you to connect to the rest of America and the rest of the world to apply our human responsibility during this time of stewardship that we have on this fragile planet.

Thank you for being here tonight. Thank you most of all for what you’re going to do. I’d just remind you, in the 1970s there wasn’t really an environment movement in America. We didn’t have an EPA. Just think of that. We had no EPA. And it wasn’t until Rachel Carson wrote her Silent Spring and inspired people to become activists that people became aware of Love Canal and Woburn dump and places which give people cancer and kill citizens.

And all of a sudden, people decided we don’t want to live next to these places, we think there’s a different choice. And 20 million people came out of their homes on one single day. They targeted the 12 worst votes in the United States Congress, labeled them the Dirty Dozen, and kicked seven of them out of Congress in the 1972 election. You know what happened? It unleashed a torrent of activity so that we passed the Clean Air Act, Safe Drinking Water Act, Marine Mammal Protection Act, Coastal Zone Management Act, Safe Drinking Water Act, and even created the EPA, which Richard Nixon, whose idea it was not, signed it into law. (Laughter and applause.)

So folks, that’s what being here is all about. That’s what tonight’s inspiration is all about. We can change everybody’s attitude about this because it matters to all of us. Thank you and God bless. (Applause.)

ATTORNEY GENERAL HOLDER SPEAKS ON ANNIVERSARY CELEBRATION OF GIDEON V. WAINWRIGHT

FROM: U.S DEPARTMENT OF JUSTICE
Attorney General Eric Holder Speaks at the Justice Department's 50th Anniversary Celebration of the U.S. Supreme Court Decision in Gideon v. Wainwright

Washington, D.C. ~ Friday, March 15, 2013

Thank you, Tony [West], for those kind words – and for your leadership as Acting Associate Attorney General. It’s a privilege to stand with you and Deborah [Leff] today – and to be among so many good friends and distinguished guests here in the Great Hall. I’d like to extend a special welcome to former Vice President [Walter] Mondale, Justice [Elena] Kagan, Nina Totenberg, each of our panelists, and all of the federal and state leaders, policymakers, and jurists who are here this afternoon – particularly Representative [John] Conyers; Representative [Chaka] Fattah; Chief Justice [Wallace] Jefferson, of the Texas Supreme Court; and Chief Judge [Jonathan] Lippman, of the New York Court of Appeals. Thank you for taking part in this important ceremony. It’s an honor to join you in commemorating the 50th anniversary of the Supreme Court’s landmark decision in Gideon v. Wainwright.

Today’s observance marks a unique opportunity to remind professionals from across our nation’s legal community about the sacred responsibilities that every one of us shares. It provides a chance to call attention to the needs that we all must fulfill – and the challenges that prosecutors, public defenders, and policymakers throughout the country are called to address. And it’s an important moment not merely to reflect on our past, but to plan for the future – and recommit ourselves to the ideals laid out in Justice Hugo Black’s historic opinion.

Fifty years ago this Monday – writing for a unanimous Supreme Court – Justice Black observed that: it "seems to us to be an obvious truth" that "in our adversary system, any person haled into court, who is too poor to hire a lawyer, cannot be assured of a fair trial unless counsel is provided to him." This constituted a watershed moment – and a critical step forward – in our nation’s enduring pursuit of equal justice for all.

By holding that every defendant charged with a serious crime has the right to an attorney – even if he or she cannot afford one – the Court recognized the significance of legal assistance in safeguarding due process. It furthered the aspirations of countless lawyers and activists who, throughout history, have stood up – and spoken out – for the common humanity and basic rights of every citizen. And it paved the way for the expansion of the right to counsel in the years that followed.

Yet the journey that led to this momentous decision began quite humbly – with an act as simple as it was profoundly optimistic. In 1961, a poor drifter named Clarence Earl Gideon was arrested in Florida on charges of theft. He was forced to conduct his own defense, after his request for a court-appointed attorney was denied. After a jury found him guilty – and even after his petition to the Florida Supreme Court was turned away – he remained undeterred. He drafted another petition – in pencil, on prison stationery. And he addressed it to the United States Supreme Court.

In this extraordinary document – which is on display for this event here at the Department, just a short distance from my office on the fifth floor – Clarence Earl Gideon appealed to the principles of fairness and equality that have always defined our justice system and stood at the core of our identity as a nation. In five handwritten pages, he laid out a straightforward argument that would – in the words of my predecessor, Attorney General Robert Kennedy – change "the whole course of legal history . . . ."

As Gideon would go on to write in a reply brief: "It makes no difference how old I am or what color I am or what church I belong too if any. The question is I did not get a fair trial. The question is very simple. I requested the court to appoint me [an] attorney and the court refused."

In June of 1962, the Supreme Court granted Gideon’s petition – and selected a prominent Washington lawyer to lead the team representing him. We’re honored to have one of the members of this team, Abe Krash, here with us today – and I’d like to invite him to stand so we can give him a round of applause.

Meanwhile, the Florida Attorney General’s office began reaching out to its 49 counterparts – asking for their support as it prepared to argue the other side of the case. But this strategy backfired when Minnesota’s Attorney General – a young man named Walter Mondale, who was only a few years out of law school – strongly disagreed with Florida’s position.

Thanks largely to then-Attorney General Mondale’s advocacy – a total of 22 states signed on to an amicus brief in support of Clarence Earl Gideon. Only two submitted a brief supporting Florida. And on March 18, 1963 – when the Supreme Court unanimously held that Gideon’s right to due process had been violated – the foundation of America’s legal system was forever altered.

Of course, the progress heralded by the Court’s opinion – and the sweeping changes it demanded from coast to coast – would not happen overnight. And they could never be handed down from the bench. In many ways, this decision would have to be put into action by the American people – and their state and local leaders.

In the decades since this remarkable case – and Gideon’s retrial, at which he was found not guilty – public defender systems have been established in some states and strengthened in others. Additional court actions have expanded the right to counsel in juvenile and certain misdemeanor cases. And our nation has made significant strides in fulfilling the promise of Gideon – and ensuring quality representation for more of those who need it.

Yet, despite half a century of progress – even today, in 2013, far too many Americans struggle to gain access to the legal assistance they need. And far too many children and adults routinely enter our juvenile and criminal justice systems with little understanding of the rights to which they’re entitled, the charges against them, or the potential sentences they may face.

In short, America’s indigent defense systems exist in a state of crisis. Like many of you, this is something I’ve seen firsthand. As a judge on the District of Columbia Superior Court – and, later, as United States Attorney for the District of Columbia – I frequently witnessed the devastating consequences of inadequate representation. I saw that wrongful convictions and unjust sentences carry a moral cost that’s impossible to measure – and undermine the strength, integrity, and public trust in our legal system. I also recognize that, in purely economic terms, they drain precious taxpayer resources – and constitute an outrageous waste of court funds on new filings, retrials, and appeals just because the system failed to get it right the first time.

Today – together – it’s time to declare, once again, that this is unacceptable – and unworthy of a legal system that stands as an example for all the world. It’s time to reclaim Gideon’s petition – and resolve to confront the obstacles facing indigent defense providers. Most of all, it’s time to speak out – with one voice – to rally our peers and partners at every level of government and the private sector to this important cause.

I’m proud to say that today’s Justice Department is rising to this challenge. And we’re responding to this call not with despair, but with dedication – and a plan for action. Alongside allies like the American Bar Association – which developed the landmark Ten Principles of a Public Defense Delivery System – my colleagues and I are fighting to institute the policies we need to improve representation for the disadvantaged. And we’re engaging with leaders like the National Association of Criminal Defense Lawyers, the National Legal Aid & Defender Association, state government officials, nonprofits, NGOs, and many others to drive this work into the future.

At the center of our efforts is the Department’s Access to Justice Initiative – a new component I launched in 2010 to help ensure that basic legal services are available, affordable, and accessible to everyone in this country – regardless of status or income. Under the past leadership of the incomparable Professor Larry Tribe and Mark Childress – and, today, thanks to the hard work of Acting Senior Counselor Deborah Leff and her staff – the Access to Justice Initiative is collaborating with a wide range of partners to broaden access to quality representation, highlight best practices, and bring new allies into this work.

In addition, through the Office of Justice Programs and other components, the Department is developing concrete steps to help us better understand and address indigent defense issues. Last year, in New Orleans, I unveiled a grant program known as "Answering Gideon’s Call," through which the Bureau of Justice Assistance awarded $1.2 million in funding to four states – each of which has partnered with a research organization to track outcomes. Under another initiative funded by the National Institute of Justice – and totaling $1.6 million – we’re supporting research projects examining "holistic defense" approaches, studying factors that lead juveniles to waive their right to counsel, and evaluating the challenges of representing indigent defendants with mental health disorders.

Beyond this, we’re striving to bring stakeholders together – including law enforcement, court officials, prosecutors, indigent defense providers, and correctional officers – to refine existing programs such as Edward Byrne Memorial Justice Assistance Grants. We are developing a national-level "Census of Public Defender Offices" to provide a snapshot of the efforts that are underway across America, determine what works, and assess training and resource needs. For the first time ever, we’re helping to offer free training sessions to jurists and other legal professionals who serve Indian Country. We’re working with the ABA to examine – and potentially mitigate – the collateral consequences that often accompany certain convictions. And we’re using the Department’s enforcement authorities in targeted ways to prompt defense system reform.

These and other initiatives are proof of the Justice Department’s steadfast commitment to protecting the rights and interests of the most vulnerable among us. There can be no question that this work shows tremendous promise – and we can all be proud of the efforts that so many of you are helping to lead. Yet there’s also no denying that much remains to be done.

Fortunately, all of this is only the beginning. And today, I’m pleased to announce that the Justice Department will soon offer $1.8 million in new resources and tools to fulfill the rights guaranteed by Gideon; to provide assistance to the jurisdictions that need it most; and to bolster national efforts to build effective public defense systems across America.

Through a second "Answering Gideon’s Call" grant initiative – focused on improving the effectiveness of right-to-counsel services – BJA will soon award over $700,000 to a non-profit organization and its partners to support training and technical assistance based on the ABA’s Ten Principles. They will also re-evaluate qualified applications for last year’s grants under this program, and will offer more than a quarter million dollars – each – to two past applicants.

In addition, the Office of Juvenile Justice and Delinquency Prevention will provide $400,000 to fund a project improving the level of systemic advocacy, the quality of representation for indigent juveniles, and the kinds of support available to the juvenile indigent defense bar. The National Training and Technical Assistance Center will commit a total of $90,000 for technical assistance to help several states meet their constitutional obligations to provide competent representation for the poor. And BJA will provide $50,000 to implement the "Measures for Justice" initiative in Milwaukee – a rigorous evaluation tool that will help illuminate strategies for success and empower criminal justice stakeholders to make the changes they need.

Of course, all of this assistance – and support for cutting-edge research – is dependent on funding that’s made available by Congress. And in 2013, our funding is impacted by the "sequester" – which cut over $1.6 billion from the Justice Department’s budget, including $100 million from essential grant programs like the ones I’ve just announced.

Put simply, this Department cannot afford to lose such a significant portion of its budget – particularly in a time of uncommon challenges, when many legal assistance organizations are facing shortfalls, and state and local officials have been asked to do more with less. That’s why it’s imperative that Congressional leaders quickly adopt a balanced deficit reduction plan to stop these untenable cuts. And it’s also why – today, more than ever before – prosecutors and defenders must come together to make the most of limited resources.

As we look toward the future, we all must collaborate to improve our justice system. Since becoming Attorney General four years ago, I’ve urged my colleagues to step up and do just that. And I’m pleased that the dedicated men and women of the United States Attorney community have taken this to heart – and many are working closely with the defense bar in a variety of contexts.

For instance, in Nebraska – and in the Southern District of Iowa – our U.S. Attorneys regularly meet with federal public defenders to discuss areas of mutual concern. In the Eastern District of Michigan, federal prosecutors are partnering with the Federal Defender’s Office to hold public events – and plan additional forums for discussion about pretrial services and other issues with the defense bar.

Here in Washington, Justice Department leaders have worked with Federal Public Defenders – and counsel appointed under the Criminal Justice Act – to develop best practices for dealing with electronically stored information, or ESI, during the discovery process. And we’ve begun preliminary discussions about conducting a joint training session right here in the Great Hall – so prosecutors can learn alongside public defenders and CJA counsel from across the United States.

In the end, this may be the single most important legacy of Gideon: that it serves as a reminder of the obligation entrusted to every legal professional – not merely to serve clients or win cases, but to do justice. It stands as a testament to the fact that the structures and mechanisms of our legal system, far from being etched in stone, remain works in progress. And it’s a powerful example of how – in this great country – even the humblest hands can help to bend the arc of history just a little further toward justice.

Although Clarence Earl Gideon did not live to see even the tenth anniversary of this pivotal decision, his story – and his indelible, handwritten words – remind us that we cannot rest in our efforts to see that justice is done. And we must never stop fighting to realize the principle that we have come to know by his name – by guaranteeing that every person in this country can access quality legal representation any time they come before the criminal justice system.

Colleagues, this is our solemn responsibility – and our moral calling. And as I look over this crowd today, and reflect on how far we’ve come in the last 50 years – despite the challenges of the hour and the obstacles ahead – I can’t help but feel confident in where our indigent defense efforts will lead us over the next 50.

So let us seize this moment – and take advantage of this opportunity – to act with optimism, and without delay; to stay true to the values that have always guided our steps forward; and to stand up for the ideals that must always drive our ongoing pursuit of a more free, more just, and more perfect Union.

Thank you.

DOD SAYS TRAINING INCIDENT KILLS 7 SERVICE MEMBERS

FROM: U.S. DEPARTMENT OF DEFENSE
Training Incident Kills 7 Service Members at Nevada Depot
From a 2nd Marine Expeditionary Force News Release

MARINE CORPS BASE CAMP LEJEUNE, N.C., March 19, 2013 - Seven service members were killed and several others were injured last night when an incident occurred during a training exercise at Hawthorne Army Depot, Nev.

The injured were transported to area hospitals for treatment and further evaluation. The identities of those killed will be released 24 hours after next of kin are notified.

"We send our prayers and condolences to the families of Marines involved in this tragic incident," said Marine Corps Maj. Gen. Raymond C. Fox, 2nd Marine Expeditionary Force commanding general. "We remain focused on ensuring that they are supported through this difficult time. We mourn their loss, and it is with heavy hearts we remember their courage and sacrifice."

The cause of the incident is under investigation.

HHS SAYS FIT BODY LEADS TO FIT MIND

FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Middle-aged aerobics and older brains
From the U.S. Department of Health and Human Services, I’m Ira Dreyfuss with HHS HealthBeat.

A study indicates that people who stay aerobically fit in middle age might be less likely to develop dementia later. At the Cooper Institute in Dallas, researchers saw this in 24 years of data on about 20,000 people. Researcher Laura DeFina:

"With increasing cardiorespiratory fitness levels, there was decreased development of all-cause dementia in later life."

For instance, people in the fittest 20 percent around age 50 were 36 percent less likely than those in the least-fit 20 percent to be diagnosed with dementia after age 65.

DeFina notes other studies have found better blood flow in brains of fitter people.

The report in Annals of Internal Medicine was supported by the National Institutes of Health.

HHS HealthBeat is a production of the U.S. Department of Health and Human Services. I’m Ira Dreyfuss.

Last revised: March 19, 2013

HHS SAYS 71 MILLION AMERICANS WILL RECEIVE PREVENTITIVE CARE DUE TO AFFORDABLE CARE ACT

Credit:  Veterans Affairs

FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Affordable Care Act extended free preventive care to 71 million Americans with private health insurance
Health Care Law’s third anniversary sees health costs slowing down, more value for consumers

Health and Human Services (HHS) Secretary Kathleen Sebelius announced today that about 71 million Americans in private health insurance plans received coverage for at least one free preventive health care service, such as a mammogram or flu shot, in 2011 and 2012 because of the Affordable Care Act. The new data was released in a report from HHS today.

Additionally, an estimated 34 million Americans in traditional Medicare and Medicare Advantage plans have received at least one preventive service, such as an annual wellness visit at no out of pocket cost because of the health care law.

Taken together, this means about 105 million Americans with private health plans and Medicare beneficiaries have been helped by the Affordable Care Act’s prevention coverage improvements.

Preventive services, consumer protections, and other reforms under the Affordable Care Act are giving millions of Americans of all ages more value for their health care dollars and contributing to the slowest growth in health care costs in 50 years.

"Preventing illnesses before they become serious and more costly to treat helps Americans of all ages stay healthier," Secretary Sebelius said. "No longer do Americans have to choose between paying for preventive care and groceries."

Secretary Sebelius released the preventive services report as HHS celebrates the Affordable Care Act’s third anniversary this week. The law is keeping down costs and providing more value for consumers and taxpayers through new consumer protections, holding insurance companies accountable, building a smarter health care system, and providing seniors with vital savings on their prescription drugs.

The Affordable Care Act is giving Americans better value for their health insurance plans by:
Eliminating lifetime dollar caps on essential health benefits, and phasing out annual caps. About 105 million Americans no longer have to fear their benefits will disappear when they need them most because their insurer put a lifetime cap on the amount it would pay.
Prohibiting health insurance companies from denying coverage to children based on a pre-existing condition, such as asthma or cancer.
And in 2014, it will be illegal for health insurance companies to deny coverage to any American or to charge more because of a pre-existing condition. No longer will 129 million Americans with health conditions have to fear seeing their premiums increased or getting locked out of the insurance market.
The law will also make it illegal for a health insurer to charge women more simply because they are women. "That means," Secretary Sebelius said, "being a woman will no longer be a pre-existing condition."

U.S. CONFRONTS TRANSNATIONAL CRIME IN CENTRAL AMERICA

A U.S. Navy sailor pulls rear security on a rivercraft in Corozal, Belize, during joint river operations as part of Southern Partnership Station 2013 in the U.S. 4th Fleet area of responsibility, Feb. 25, 2013. Southern Partnership Station is an annual deployment that exchanges training and expertise between U.S. military and civilian agencies and their counterparts in Central and South America and the Caribbean. U.S. Air Force photo by Staff Sgt. Ashley Hyatt

FROM:  U.S. DEPARTMENT OF DEFENSE
Southern Partnership Station Confronts Transnational Crime
By Donna Miles
American Forces Press Service

WASHINGTON, March 18, 2013 - Working with three Central American counterparts to help them build capability to counter transnational criminals, participants in Southern Partnership Station 2013 are supporting U.S. Southern Command's outreach to the region, and by extension, U.S. national security, a Southcom official told American Forces Press Service.

After completing the first stop of their visit, to Belize, participants arrived last week in Guatemala, where they will remain through the month's end, reported Navy Cmdr. Robert Skinner, maritime plans chief for Southcom's future operations directorate. They then will continue on for bilateral engagements in Honduras before wrapping up the overall mission in late May.

Throughout the U.S. 4th Fleet operation, the focus is on building partner-nation capacity to help regional nations better stand up to challenges than transcend their national borders, Skinner said.

To support the mission, USNS Swift, a high-speed catamaran, left Mayport, Fla., in mid-February with an embarked command element and members of every military service and participants from the Coast Guard, the FBI and other government agencies.

The assigned units are focusing on locally identified needs, such as port security, noncommissioned officer professional development, operational risk management, medical readiness, outboard motor maintenance and patrol-craft operation, Navy Lt. Cmdr. Corey Barker, the 4th Fleet public affairs officer, reported.

In Belize, Seabees from Construction Battalion Maintenance Unit 202 built an open-bay structure to support Belize Defense Force operations while members of Riverine Squadron 2 helped their Belizean counterparts improve skills in interdiction and security team inserts and extractions on the water.

Meanwhile, agents from the Naval Criminal Investigative Service's Security Training Assistance and Assessment Team Atlantic spent almost three weeks sharing law enforcement techniques with Belizean coast guard and police forces.

With the mission now unfolding in Guatemala, about 150 service members are concentrating their efforts on explosive ordnance disposal teams and riverine and law enforcement operations. Additionally, Seabees are helping to improve infrastructure at the Guatemalan military's Kaibil base.

"Swift is a unique platform that allows us to make lasting bonds with our partner nations in Latin America," said Navy Cmdr. Bob Poling, the mission commander. "What we do on this deployment will make a difference and it will have a lasting impact on our partners in the region."

The Southern Partnership Station mission is part of Southcom's broader Partnership of the Americas maritime engagement strategy, Skinner explained. Adopted in 2008, the strategy provides a coordinated, holistic approach to U.S. maritime engagement in Central and South America and the Caribbean.

Other key elements of the strategy include Continuing Promise, which features medical services and humanitarian and civic activities, and Southern Seas, which encompasses a variety of large-scale, multilateral exercises and exchanges designed to improve operational readiness and enhance relationships in the region, Skinner said.

Southern Partnership Station is more bilateral in nature, offering an opportunity for participants to focus on specific capability gaps partner nations identify. This, Skinner said, helps to make them stronger partners and enables them to play a greater role in confronting transnational criminals and drug traffickers that no single country can confront alone.

The mission, along with other Southcom-sponsored engagements in the theater, also promotes regional interoperability so nations can better work together to address these challenges, Skinner said.

"We feel we have common interests and security concerns," he said. "The transitional challenges we have requires cooperative action among the different states. And by building up our partner nations, we are multiplying our own capabilities downrange."

Southern Partnership Station also makes an important statement in reaffirming the United States' commitment to its regional neighbors, Skinner said.

"We want to be an enduring partner," he said. "We want to be their partner of choice."

(Navy Lt. Cmdr. Corey Barker, public affairs officer for the U.S. 4th Fleet, and Air Force Master Sgt. Chris Stagner contributed to this article.)