History’s Biggest Con

The world’s most successful con man is not in finance or politics. He is the scientist that runs the world’s biggest machine. He has defrauded the US taxpayer of tens of billions of dollars, and he’s not done yet.

This is the story of particle physics and its kingpin, Carlo Rubbia.

A Field Forged in Fear

Particle physics is the study of matter and space. Newton and Einstein are the most famous scientists in this field. For centuries, physicists went about their business largely unnoticed by the public. Then came nuclear weapons.

History’s most famous equation was given to us by Einstein. E = mc2. To military planners, the equation is important because it says that matter can be converted to pure energy. Prior to World War II, chemical munitions only used a billionth of that explosive potential. The atom bomb showed that chemical munitions could start a nuclear reaction that achieved a million-fold improvement. A decade later, atom bombs were used to trigger fusion in a hydrogen bomb, achieving another factor of forty improvement.

Naturally, after World War II, politicians recognized that particle physicists were the most dangerous people in the world. A single hydrogen bomb can wipe out a city like London. Particle physicists were organized under the Department of Energy and told to find out whether even greater horrors were possible. That mission was sustained by the Cold War competition with the Soviet Union.

This work was done at particle colliders. Over time, these became the world’s largest machines, costing hundreds of millions of dollars to build and operate.

Fortunately for the survival of the human race, by the mid-eighties we knew that the hydrogen bomb was the limit. Everything discovered by the particle colliders was unstable, lasting at most a millionth of a second. However, this was bad for particle physicists. They needed a new marketing message to convince politicians to give them billions so they could keep on building and running colliders.

Given that the researchers were inspired by the prospect of blowing up the world, perhaps we should have expected what came next.

The Final Theory of Everything

Every politician knows that politics is a contest of wills. In the halls of Congress and in the White House, palpable energy is generated by these contests. Politicians know that spirituality is real.

Could that energy be tapped? Well, not according to physics. In fact, Einstein’s theories seemed to prove that spiritual energy couldn’t exist. Remove all the matter from space and there is nothing left.

Physicists knew better. Richard Feynman, the quirky theorist from Cal Tech, spoke about going to Princeton to speak before the “Monster Minds.”

This, then, was the pitch: “We know that our theories of matter and space are incomplete. Give us money so that we can find the final theory of everything. Then we’ll know how to harness the power of will.” Now, this was absurd from the start. Will is generated by the human mind, which needs to avoid explosions at all costs. But it worked for a while. Congress is a creature of habit, and it wasn’t too much money, at first. Only a couple of hundred million dollars a year.

Then, in the mid-eighties, came the supercolliders. These were billion-dollar machines. Finally, the international particle physics community banded together into coalitions. In Europe, researchers at CERN promoted an upgrade to their collider. In the US, states competed to host the Superconducting Super Collider. Not surprisingly, George Bush Sr. picked Texas as the winner.

As the price tag went up and up, the particle physics community realized that only one candidate could be built. And this is where the con started – the con that left the US giving billions of taxpayer dollars to CERN.

Nobels Oblige

Alfred Nobel was a Swedish chemist and arms merchant (alas, explosions again) who bequeathed his fortune to fund the Nobel Prize. Winning the Nobel Prize in any science is one of the few ways that a scientist gains public notoriety. With that stature comes access to politicians that funnel taxpayer dollars into research. Universities and laboratories, naturally, compete to hire Nobel Prize winners. When they can’t hire them, they try to create them.

Inevitably, the Nobel Prize is a highly political award. It’s not just the ideas that count.

The Nobel Prize for Physics is dominated by fundamental physics. Discovering a new particle or force is almost guaranteed to be followed by an invitation to Stockholm.

Motive: billions of taxpayer dollars for the next particle collider. Opportunity: given that politicians don’t understand a single thing about particle physics, winning a Nobel Prize establishes prestige that could determine the flow of those dollars. Means: the existing collider at CERN. Sounds like a recipe for crime.

Exposing the grift is difficult because particle physicists speak an arcane language. I will try keep it to a minimum, but to be able to confront the perpetrators of this crime against the American taxpayer, we need to understand some of that language.

As well as particles of matter called fermions, the universe contains fields. These fields come in packets called bosons. Bosons allow matter to interact. As a practical example, when you chew food, the atoms of your teeth are not mechanically breaking the food apart, but generating bosons called photons that break the food apart.

How do physicists prove that they have discovered a new fermion?

The concept is built upon Einstein’s equation. E = mc2. To achieve perfect conversion of mass to energy, physicists discovered that they could make antimatter that, when combined with normal matter, annihilates completely.

How to make new kinds of matter? In this regard, the most interesting bosons are the W and Z. Through these so-called weak interactions, any kind of matter can be created. The only requirement is that enough energy exists to run annihilation in reverse. This is called “pair creation.” From the pure energy of the Z, matter and antimatter are created.

To find a new kind of fermion, a collider first manufactures antimatter. It then takes the antimatter and matter, pushing them through voltage that adds energy of motion, creating beams. Finally, the beams are aimed to an intersection point at the center of a detector. Randomly, annihilation occurs. Both the energy of mass and the energy of motion are available to create new fermions.

The process is rote. Build a collider. Use the acceleration to control the energy of the collisions. Analyze the data coming out of your detectors. When you get to the power limit of your collider, go to Congress and ask for more money.

The challenge is that sometimes beams collide without producing anything interesting, filling your detectors up with noise. Fortunately, there is a specific signal that occurs most frequently when creating a new kind of fermion. The detectors will see two photons moving in opposite directions.

Remember that last fact. When a new kind of fermion is found, we see two photons moving in opposite directions.

From the start of particle physics until 1987, eight fermions were discovered. They first six showed a definite generational pattern: a light lepton followed by two heavier quarks. The first triad is known as electron, down, and up. The second generation contains muon, strange, and charm. In the third generation, colliders had detected the tau and bottom. The field was racing to find the third member of that generation, the top.

Along the way, there was another important discovery. The weak interactions are weak because the W and Z themselves have large masses. On the way to finding the top, the bosons were confirmed, at energies of 80 and 93 GeV. (The units are not important. Remember the numbers.) For purposes of understanding the fraud, I emphasize that the W and Z do not produce two photon signals.

The W and Z results confirmed theoretical predictions, convincing politicians that the field was on a solid footing. For this, Carlo Rubbia was awarded the Nobel Prize in 1984.

I was in my last year of my graduate studies in 1987 when CERN announced the discovery of the top, publishing its claim in Physical Review. One of my thesis advisors, Mary Kay Gaillard, had come to UC Berkeley through CERN. That connection brought researchers from CERN who described the result. I was shocked to hear that the data did not demonstrate the required two-photon signal. Furthermore, the accelerator energy during the study was 346 GeV, exactly twice the sum of the W and Z masses.

I trusted Mary Kay. In my presence, she denounced the evils of nuclear weapons. I went to her and voiced my confusion. How could this be a new particle? It looked like a collection of four weak bosons, exactly at the energy that you would predict.

Her answer amounted to, “Go home little boy. The adults are playing politics.”

As the leader of CERN, winner of the Nobel prize, and lead author of the top paper, Carlo Rubbia was the kingpin of particle physics. And CERN won the competition for the next collider.

Higgsy Pigsy

Let’s return to the political context now. Remember: the Cold War was ending. Everyone knew that no new bomb technology was coming out of particle physics. The goal was now a theory of everything. How long would that political motivation last?

Given the abstractness of the motivation, the field needed a long runway in its next accelerator. This was part of the strategy with the top announcement. The heaviest particle to that point was the bottom quark, at 4.2 GeV. That the fraudulent “top” was all the way up at 173 GeV suggested that there was much more to come, if only politicians would fund the work.

The proposed upgrade of CERN was not modest. It set a 20-year goal of attaining a sixty-fold increase in the collider’s power. Bedazzled by Nobel prizes and the pretty pictures produced by taxpayer-funded science propagandists, the politicians were persuaded to comply.

Then came turn-on date in 2012. The machine was ramped up through its energy range, scanning for new particles all the way up to its limit.

Nothing. Zero, Zilch. A ten-billion-dollar boondoggle, funded in no small part by the American taxpayer.

Except then, after a summer spent scanning higher energies, the machine was turned down to 125 GeV. Be clear: this was an energy accessible by the earlier collider. At that energy, the detectors showed a two-photon signal. Detecting this signal is a primary design criterion for every detector. As it occurred at lower energy than the signal announced as the “top,” it must have been known before that study.

Demonstrating their impenetrability to shame, the 125 GeV signal was published in Physical Review and announced as the long-sought after “Higgs particle.”

“Really,” I though, “you are going to double down on your fraud?”

Remember: two photons is the signal for a new particle. The “Higgs” is what the top should have looked like. In fact, by the standards of the field, I should be awarded the Nobel prize for recognizing that it is the top.

None-the-less, the shameless perpetrators began their pressure campaign. They leaned on the Nobel committee to recognize Peter Higgs, the developer of the field’s minimally coherent theory of particle mass. In the background, Marco Rubbia, CERN’s prior laureate, went to the funding panels, demanding, “You know, this Higgs is kind of weird. We need more money for another collider.” The Nobel committee, having acceded to the Higgs award, heard of this and protested, “We are about to award the Nobel Prize for this discovery. Is it the Higgs or is it not the Higgs?” Rubbia backtracked.

Only temporarily, however. Read the popular science press and every week you will see a propaganda piece promoting the next collider at CERN. After all, the full-time job of their taxpayer-funded propagandists is to secure funding for that collider.

Omerta

The question, in any massive conspiracy, is how the community maintains discipline. This is a matter of leverage.

You see, university posts in particle physics are not funded directly. They are funded as an adder on collider construction and operation budgets.

For twenty years, I have been trying to get particle physics out of the rut of superstring theory – a theory that is certifiably insane for its violations of everything that we observe about the universe. In the one instance that I was able to get into dialog with a theorist, I was told “I know that you are right, but if I work with you, I will lose my funding.”

CERN is the only game in town. Anything that does not build to more construction is not funded. Pure and simple, Rubbia is the godfather of particle physics. If you don’t play, he won’t pay.

It is time to stop the grift. The next machine will cost the US taxpayer tens of billions of dollars. Enough is enough. Call your local congresspeople and demand that they investigate and shut this down. We have more pressing problems to worry about.

Trolls against Compassion

In watching the Republican Tax Deform bill works its way through the institutional process, I can’t help but see trolling in play.

Online, a “troll” has been determined to be a person that understands human psychology, and uses it to disrupt functioning social systems. They have all the tools necessary for compassionate engagement, but choose to use them to cause fear and pain.

You see this in the tax bill crafted by Ryan and McConnell. After accounting for the additional $1.5 trillion in debt that will accrue to the public during the lifetime of the program, only the rich will benefit from the bill.

Every successful troll claims a beneficial intent, and we see this advancing in the Republican policy program. Ryan and McConnell want to create a fiscal crisis so that they have a remit to cut middle-class entitlement programs such as Social Security and Medicare. This is a program that has been pursued by the Republican Party since the Reagan era. America’s $20 trillion public debt was amassed due to tax cuts for the rich advanced during eras of Republican control. They created the public debt, and now claim it as the reason to cut benefits established and paid for by the middle class.

To understand why these trolls are not exposed, we have to understand who benefits from their strategy. It is the financial system. Large money-center banks suck at the teat of government debt. They profit every time a government bond is sold and redeemed – and long-term deficits means that those redeemed must be replaced by new. They profit from fiscal irresponsibility in Congress. The same is true of our trade deficit: every time an American buys a Chinese product, dollars must be converted to yuan, which flow overseas and then come back to America as dollars that buy our government debt. Every step in that process makes money for the financial industry.

What should be alarming is that profits enjoyed by the financial industry accrue from the exchange of dollars that does not add value to our economy. The value of the dollars does not change – they simply move from place to place.

Wall Street is effectively a tax on Main Street.

What is painful is to realize how deeply this psychology has migrated downward into our economy. Payday lenders make short-term loans against future earnings, sometimes charging as much as 1/3 of the loan value for bridge financing that lasts only a week. In Kansas, the most successful franchise (raking in billions of dollars in profits) was started by three brothers that claimed Native American sovereignty to get around state regulations that prohibited predatory practices. Eventually, the FBI stepped in to tear down their empire. But as the empire collapsed, the remaining brother took the protected financial data and created a list of fake debt claims that were then sold on to the debt collection industry.

Yes, many debt collectors are no longer paid by claimants. They actually pay for debt listings, and do little to verify the validity of the claims. The Tucker family made millions by selling the fake debt claims to multiple debt collectors. Those debt collectors had mouths to feed and mortgages to pay, and the only way to make good on their investment was to get money out of the people whose private financial information they had acquired. The FBI is now investigating the abusive practices of the collectors working against those false claims.

The abusive behaviors of the financial system, libertarian politicians and online trolls are linked by another factor: their behaviors harm people that they don’t know personally. Safely at a distance, trolls reach out through our communications infrastructure to wreak havoc in the lives of their victims. The don’t have to confront the mounting desperation of individuals and communities ground down by their hunger for money or power. They simply acquire wealth that they use to finance the careers of politicians that oppose regulation of their industry.

This is what makes men like Paul Ryan so pitiful. They believe that they must be doing something good because people tell them that they are taking on a problem that poses an existential threat to our country: the federal debt. But the people that applaud his determination are those that engineered the creation of that debt, and that benefit most from its existence. The true motivations for their investment in politicians such as Ryan is to ensure that their wealth is protected when the system collapses.

Trembling underneath this juggernaut of debt, there are those in American commerce that still believe in producing goods for consumption, and that compete to create value for their customers.  Working in the automation industry, I am conscious that the work that I do displaces workers, creating distress from a distance much as does the financial industry. But being involved with the creation of goods and services, I do feel the pulse of that part of the economy.

The mantra that is evolving is hopeful. On the surface, that is hard to see: robots are displacing blue-collar workers, and artificial intelligence is threatening knowledge workers. What remains for people to do, then, is to ensure that customers are happy and successful, building a base for repeat business.

In other words, while the masters of the universe troll society, on the ground people are focused on learning to care for each other.

Dawn of the Dread

At the Reagan Presidential Library, a plaque commemorating T. Boone Picken’s financing of the Air Force One hall also recounted his influence over Reagan’s financial policy. He had apparently explained to the President that “like Eastern Europe, money should be free.” One manifestation of that policy was the deregulation of the Savings and Loan industry. What had once been a sleepy industry used by the middle class to finance home purchases and college education became a cash cow for some of the nation’s most imaginative financial schemes.

The details of the ensuing Savings and Loan disaster invoked justifiable moral outrage. At the same time that the industry was liberalized, Reagan cut the regulators responsible for monitoring the industry. This meant that two banks in Colorado could trade an undeveloped property back and forth, increasing the purchase price each time, and treat the land as an asset to secure loans for ten times the final purchase price. When the banks went under, it was the government that was obligated for covering the depositor’s losses.

This pattern was paralleled in the history of the hedge fund industry and the mortgage arbitrage disasters of the 1990’s and 2000’s. Industry professionals lobbied extensively against regulation, citing the power of innovative methods to reduce overall financial risk. In both cases, the sense of security encouraged risk-taking at unprecedented levels, until major players in the market collapsed.

In all cases, it was the public that bailed out the industry, not just through tax receipts, but also through the release of trillions of dollars in low-interest or no-interest money to the financial industry through the Federal Reserve. This is money that the government must nominally pay interest on through the promissory note mechanism. Through that method, the nation’s money supply is issued by private money-center banks, and the government pays interest to the banks for the privilege. Is it any wonder that the financial industry accounted for 50% of corporate profits in the year immediately following the 2008 mortgage disaster?

The recent disasters reflect a more dangerous trend: the complexity and speed of modern market mechanisms make it almost impossible for either regulators or consumers to assess the nature and value of the services provided. The use of complexity to defraud consumers was most visible in the health insurance industry. The availability of health care outcome data allowed new players to enter the insurance market and target only those subscribers least likely to need health care. Obviously, these subscribers were those that in their prior plans funded the claims of patients needing extended services. As they were siphoned away, existing health plans went into the red, and premiums skyrocketed. A large number of chronically ill patients fell out of the pool of insured, and their conditions worsened. To ensure access to a doctor, they began to lie on their health insurance applications. Carrying an insurance card, they would then be admitted to a hospital, which by law could not discharge them until their condition was stable. The hospitals would find out after the provision of services that the patient was not covered, and would have to pass the unrecouped billings on to regular patients, which drove up their premiums. And on the insurer’s side, a whole army of bureaucrats was hired with the goal of finding cause to deny coverage. Thus the system was further burdened with administrative costs.

The net result was that, prior to the Health Care Affordability Act, health insurance was on its way to being a “pay-as-you-go” system with enormous administrative overhead. The rational choice for those that could finance their own care was to be uninsured.

The complexity of market mechanisms also played a large part in the Enron fraud in the California electrical supply market, which saw traders calling up friends at power plants to take generators off-line during brownouts to create leverage over state regulators. It also was a major factor in the Madoff financial fraud.

If the myth of efficiency and rationality in financial markets wasn’t bad enough, the pathological influence of the philosophy has extended to the provision of basic public services. When workloads at forensic laboratories exploded with the war on drugs, private contractors stepped in, claiming that they could adapt more rapidly to the increasing work load. What has become apparent as these laboratories entered the Physician Health Plan market is that they have accomplished higher throughput by cutting corners on procedures. The profit motive drives all other factors aside. As those profits grow, these providers have used their resources in the political arena to generate legislation that opens new markets for their services.

What is truly frightening in this last case is that the failure to adhere to scientifically defensible practices has made the public at large responsible for huge claims for wrongful incarceration. Prior to privatization, local law enforcement had some visibility and control of the forensic laboratories. Now they are completely beholden to them, and the possibility of class-action civil lawsuits brought for lost income and privileges during incarceration makes disciplining the contractors unpalatable.

So I see patterns emerging, and those patterns all point in the same direction: siphoning of resources from the public to those with control of the nation’s financial and social infrastructure.

What is the impact on the spiritual plane? I’ll offer an experience I had in the aftermath of 9/11. I was struggling with fear in an intimate, and decided to go spelunking one night to find out what was driving their anxiety. After plunging through their personal fears, I found myself on a wavelength of fear that had as a fog enveloped the entire nation. Curious, I put my psychic mitts under it and lifted it up to look around. When I let go, it fell back down to earth.

What is the solution? As an act of will, stop being afraid. Love those that are close to you. Recognize that the financial elites, as always, are divorcing themselves from the reality that sustains them, and will fall when we organize ourselves around relationships that create value, rather than relationships that promise us security.

And seriously consider whether God isn’t a key asset of that discipline.