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Experts: Jobs fall short

Written By Unknown on Minggu, 10 Maret 2013 | 00.48

Call 236,000 U.S. gain 'modest'

Economists applauded yesterday's positive national employment report, but said the 236,000 jobs added in February are still a far cry from the numbers needed for robust recovery, especially as the country faces the impact of federal budget cuts.

"You're going to see a continuation of happier numbers, maybe an improvement, but if so, it will be a modest improvement," said Robert Nakosteen, an economics professor at the University of Massachusetts Amherst's Isenberg School of Management. "Not the kind of numbers you see in a normal recovery."

With the surprisingly high number of added jobs last month, the unemployment rate dropped two-tenths to 7.7 percent as more hiring took place and more people without jobs stopped looking for work.

The positive Labor Department report helped send the Dow Jones industrial average above 14,397, the fourth time in one week it broke its all-time high. Several sectors, including professional and business services, health care, retail and construction, all saw job gains.

Employment has risen by an average of 195,000 jobs over the past three months.

Nigel Gault, chief U.S. economist for IHS Global Insight, said sustained growth of 200,000 to 250,000 jobs each month would indicate a "much more vigorous" economy, yet historically the United States has been unable to hit that kind of stride for a substantial period of time.

"We had periods where we did that for two or three months and things slowed down again," he said. "I suspect, because of the sequester, the impact is we won't sustain job growth above 200,000 (a month) this year, but I think there's a good chance we can do it next year."

David Tuerck, executive director of Suffolk University's Beacon Hill Institute, said that despite the encouraging figures, the United States still lacks 4.9 million jobs compared to labor force conditions in place when President Obama was inaugurated in 2009.

"We remain stuck in a soft economy and the policies coming out of Washington are guaranteed to make things worse," he said.


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BRA approves pay boosts

The Boston Redevelopment Authority has beefed up its staffers' salaries for the first time in five years.

**Click Here For The Full BRA Payroll**

The agency, whose budget is separate from the city's, recently awarded 3 percent raises to all except the top employees.

"This was the right time financially to give a cost of living increase," said BRA spokeswoman Susan Elsbree.

BRA employees have had no salary increases — only pay cuts and reinstatements — since 2008.

In June 2009, amid the Great Recession, the BRA slashed the salaries of all but the lowest-paid workers and cut 24 jobs to help address a $4 million budget shortfall.

Those wages were restored in late 2011 as the economy improved and lease revenue from BRA-owned property increased.

The BRA payroll has shrunk from 268 workers in fiscal 2009 to 207 today. The agency has also cut back on travel.

"We're just better positioned now," Elsbree said. "There was a lot of cost-cutting and belt-tightening, and now we're on better financial footing."

The 3 percent raises increased the number of BRA employees who earn six figures, according to publicly available payroll data requested by the Herald. There are 34 staffers above the $100,000 salary level, eight more than last year.

The most senior staff — nine employees including BRA director Peter Meade — did not receive pay hikes. Meade has the highest salary at $164,640, followed by chief planner Kairos Shen at $160,680.

BRA positions range from administrative assistants and project managers, to architects, planners, engineers and researchers.

Meade recently restructured the BRA's economic development department after the departure of a key director.

He created a division of business development led by Randi Lathrop, known for her work in Downtown Crossing.


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The Ticker

Downtown Crossing pushcart vendors out

The Downtown Boston Business Improvement District is pulling the plug on pushcart vendors, right, at the end of the month.

The elimination of the vendors, who have been selling food and merchandise ranging from burritos to T-shirts and umbrellas since the late 1970s, comes as the property owner-supported BID prepares to develop a new street merchandising program for 2014.

The move has angered some vendors who fear being stripped of their livelihoods. They operate under a year-to-year agreement that expires at the end of March.

The BID hopes to implement a smaller, transition pushcart program beginning this spring that includes fewer carts as construction in the district stands to eliminate currently available locations. Current vendors will be required to reapply for available spaces.

Google axing 1,200 more Motorola jobs

Google is cutting an additional 1,200 employees in its Motorola Mobility hardware unit, as the unprofitable cellphone maker struggles to compete. Last summer, Google announced 4,000 Motorola job cuts. The layoffs will affect workers in the United States, China and India and account for about 10 percent of the company's headcount.

Boeing moves flight training to Miami

Boeing Co. said it is consolidating its North American flight and maintenance training operations in Miami, a shift that will move all flight simulators for the 787 Dreamliner and other aircraft out of the Seattle area.

Miami is the company's largest flight-training center and is preferred by airlines based in Latin America, as well as the United States, Middle East and Europe, Boeing said.

THE SHUFFLE

  • The Training Associates has appointed Bill Bowman, left, as a senior consultant to work with senior management to secure private equity for company growth. Bowman previously served as CEO of U.S. Inspect and president of ChildrenFirst Inc., and was co-founder of Logal Software and Spinnaker Software Corp.
  • Seven Step Recruiting has hired Doug Lubin as director of business development. He previously served as director of recruitment process outsourcing solutions at Yoh RPO.

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Ford C-Max outperforms Prius

Ford has been in the green marketplace for quite a while, but the C-Max CUV represents a giant leap forward in its effort to topple the vaunted Toyota Prius.

The C-Max replaces the discontinued Escape Hybrid and offers an entirely new vehicle.

Based on the Focus frame and powered by the familiar 2.0-liter Atkinson gas-electric motor, Ford claims you can run the C-Max on electric power up to 62 mph. The continuously variable transmission is one of the better ones I've used, shifting smoothly and effortlessly. The modestly priced entry has 56 cubic feet of storage with the split rear seats folded down and can comfortably seat five.

Squint a little and the SUV resembles the Prius, but it ends there. At 188 combined horsepower, it's much more powerful than the Japanese standard and faster to 60 mph. All this and the estimated fuel economy is just shy of the Prius.

But let's talk about Ford's advertised claim of 47 mpg. Despite my best efforts, I only cracked 40 mpg on a 30-mile highway run and barely managed 36 mpg on average for the week.

Scouting around the Web, I've found there's some fuzzy math permitted by the EPA to attain these figures and it's being questioned legally. Listen, 36 mpg 
isn't shoddy, particularly 
at nearly $4 a gallon for gas.

The C-Max is a solid performer on dry roads and in the rain, but is horrendous in the snow. I tooled around in a recent moderate snowfall and the C-Max struggled mightily. The front-wheel-drive-only option strained to pull the 3,600 lb. car up a snowy incline and, despite the traction control, the tires slipped continually. It did not inspire much confidence in New England wintry conditions.

Fortunately, most of the year we have better road conditions and it handled smartly, rode quietly and soaked up the road bumps. The regenerative brakes had an abrupt bite to them, but managed the car effectively.

The styling is typical of many cars in the CUV class. In this case, a familiar aerodynamic bullet-shaped body is accented with a low-slung hourglass grill, swept-back windscreen and some accented body creases ending with a squared-off hands-free lift-gate. Oversized wrap-around front and rear lights tie the package together.

You settle easily into the well-appointed and fitted interior and are met with a modern array of instrumentation. The upgraded MyFord infotainment center is easily run from the leather-wrapped steering wheel controls, but still needs more engineering to make it user-friendly. The dash features a variety of data, much of it related to the hybrid engine and batteries. One gripe is that the thick front roof pillar creates a bit of a blind spot that a small vent window tries to alleviate.

I'd take this car over the popular Toyota even though it gives up a couple of miles per gallon. It's more powerful and better looking with an upmarket interior that boosts this domestic entry.


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In a rising economy, politicians look for credit

WASHINGTON  — Increased hiring, lower unemployment, stock market on the rise. Who gets the credit?

It's a hotly debated point in Washington, where political scorekeeping amounts to who gets blame and who gets praise.

Following Friday's strong jobs report — 236,000 new jobs and unemployment dropping to a four-year low of 7.7 percent — partisans hurriedly staked out turf.

"Woot woot!" tweeted former White House economic adviser Austan Goolsbee. "With 12 million still unemployed?" countered Senate Republican leader Mitch McConnell's spokesman, Don Stewart.

When it comes to the economy, presidents usually get the rap for downturns and reap benefits from upturns. But the main factors affecting the current recovery and the record activity in the stock market may have less to do with high-profile fiscal policy fights in Washington than they do in the decisions of the Federal Reserve Bank, which has pumped trillions of dollars into the economy, kept interests rates at near zero and pushed investors away from low-yield bonds to stocks.

"From a policy standpoint, this is being driven primarily by the Fed," said Mark Vitner, an economist at Wells Fargo.

Yet to some, Washington deserves little recognition.

"Economies recover," said Douglas Holtz-Eakin, a former director of the nonpartisan Congressional Budget Office and now head of the American Action Forum, a conservative public policy institute. He acknowledged the Fed's monetary policies halted the initial free fall by the financial industry, but he said the economy has had to catch up to the Fed's low interest rates.

"It took a long time for the housing market for them to matter and for the auto market for them to matter," Holtz-Eakin said. "So I don't think that's a policy victory."

If Democrats are eager to give President Barack Obama acclaim for spurring the recovery with an infusion of spending in 2009, there are just as many Republicans who will claim his health care law and his regulatory regimes slowed it.

If there is common ground among economists, it is that the next step in fiscal policy should be focused on reining in long-term spending on entitlements programs, particularly Medicare, instead of continuing debates over short-term spending. But such a grand bargain has been elusive, caught in a fight over Obama's desire for more tax revenue and Republican opposition to more tax increases.

Obama and some Republicans are trying to move the process with phone calls and a dinner here and a luncheon there. Next week, the president plans to address Democrats and Republicans in the House and Senate in separate meetings to see, as he put it Saturday in his weekly radio and Internet address, "if we can untangle some of the gridlock."

Who gets credit does have political consequences. A strong economy would create more space for Obama to pursue other aspects of his second-term agenda. But it's an important question for the long term, too, because if the recovery is indeed accelerating it could validate the policies that the Obama administration and the Fed put in place.

Hiring has been boosted by high corporate profits and by strength in the housing, auto, manufacturing and construction sectors. Corporate profits are up. Still, it might be too soon to declare victory. While the recovery may be getting traction, the U.S. economy is not yet strong.

Economic growth is forecast to be a modest 2 percent this year. Unemployment, even as it drops, remains high nearly four years after the end of the Great Recession, with roughly 12 million people out of work.

Last year's early months also showed strong job gains only to see them fade by June.

March could prove to be a more telling indicator as the economy responds to a third month of higher Social Security taxes and as across-the-board spending cuts that kicked in March 1 begin to work their way through government programs. Economists say anticipation of the cuts already caused a downturn in the fourth quarter of last year as the defense industry slowed spending. The Congressional Budget Office and some private forecasters say the coming cuts could reduce economic growth by about half a percentage point and cost about 700,000 jobs by the end of 2014.

"My view is that aggressive monetary and fiscal policy response to the recovery has been a net positive," said Mark Zandi, chief economist at Moody's Analytics.

But referring to the automatic cuts, he said, "Fiscal policies have turned from a very powerful tailwind to a pretty significant head wind." And, he added, "the economy is going to be tested again in the next few months."

Obama has been distancing himself from the potential consequences of the automatic cuts, even though he signed the legislation that put them in place. Initially, they were designed to be so onerous that it would force all sides to work out a long-term deficit-reduction and debt-stabilization package. But that agreement never materialized.

If the recovery has been slow, White House officials argue, it is because Republicans have been unwilling to yield to Obama's demands for deficit reduction that combines tax increases and cuts in spending.

Obama himself seemed to touch on that viewpoint in his weekly address.

"At a time when our businesses are gaining a little more traction, the last thing we should do is allow Washington politics to get in the way," he said while heralding good economic news. "You deserve better than the same political gridlock and refusal to compromise that has too often passed for serious debate over the last few years."

Vitner, the Wells Fargo economist, argues that if anyone deserves credit for the recovery, it is the American public and American businesses "for being able to tune out all the noise that's coming from Washington."

"It's remarkable," he said, "that in the face of so much political uncertainty we've been able to see the growth that we have."


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Order aids Mass. disabled veteran businesses

Order aids Mass. disabled veteran businesses

BOSTON — Small businesses owned by disabled veterans living in Massachusetts are getting better access to public contracts.

Gov. Deval Patrick has signed an executive order which he said will give disabled veterans "opportunity to succeed and grow" in the state.

Patrick said order will encourage access by disabled veteran-owned businesses to public contracts in the areas of construction, design as well as procurement of goods and service.

The order also directs the Executive Office of Administration and Finance to define the program's requirements and guidelines.

The office will then set a participation goal requirement for service disabled veteran-owned small businesses to help them gain access to contracts.

Lt. Gov. Tim Murray said the state has a moral obligation to support veterans who have sacrificed for the country.


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UMass sells $284M in bonds for construction

The University of Massachusetts has sold $284 million in construction bonds as it moves forward on several major projects.

Officials say a combination of taxable and tax-exempt bonds were sold this past week to individual and institutional investors. The average interest rate was just under 3.9 percent.

UMass Building Authority executive director Katherine Craven said the low rates will save the university millions of dollars in future debt service payments.

The borrowing will finance projects at each of the five campuses, including a building for the Commonwealth Honors College at UMass-Amherst; a bio-manufacturing accelerator project at UMass-Dartmouth; and the purchase by the UMass Medical School of three buildings at a biotechnology research park in Worcester.

UMass President Robert Caret says the new facilities will help students and faculty achieve at the highest levels.


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Vt. paper defends 'fry Rice' sign supporting team

Vt. paper defends 'fry Rice' sign supporting team

MONTPELIER, Vt. — A Vermont newspaper defended itself Saturday against accusations of racism over a poster it published in support of a local sports team that read "fry Rice" in type associated with Chinese calligraphy, saying it meant no offense and simply wanted to play on words.

The back-page poster, printed in Thursday's editions, was intended to support St. Johnsbury Academy's basketball team in its game against Rice Memorial High School in South Burlington, the Caledonian Record wrote in an unsigned editorial (http://bit.ly/Yj75aB ).

"We sought a simple play on words in support of an extraordinary group of local student athletes. Indulging our critics for a moment, the outcry reminds us that racial and ethnic stereotypes can offend — regardless of intent," the editorial said.

The editorial acknowledged that the poster's wordplay, punctuated by the chosen font, "evoked a particular ethnic cuisine" but did not constitute racism.

"We don't concede, however, that the use of imagery with any racial, ethnic or religious inference is to inherently debase that race/ethnicity/religion," the paper said.

"A fair accusation of racism would at least pre-require the reference to actually be demeaning or degrading," the editorial said. "Simply invoking ethnic customs (food, dress, design) doesn't do that, nor does it suggest any kind of characteristic about the culture, its people or a history of oppression by the majority.

But the editorial missed the point, said the president of the Asian American Journalists Association, who had criticized the poster after it was published.

"I'm not criticizing the Caledonian Record for rooting for their home team," said Paul Cheung, the association's president. While Cheung does not believe the newspaper's intention was to be racist, it showed "a lapse of judgment and poor taste."

"It evoked a racial undertone and a negative stereotype," said Cheung, who is also interactive and graphics editor for The Associated Press.

St. Johnsbury Academy ended up losing the game to Rice Memorial.

A private school, St. Johnsbury Academy serves local students and also has boarding students from across the world, including Asia. Academy Headmaster Tom Lovett said Friday that none of the school's Asian students were offended by the poster.

"Overall, our students often see such things as a way to celebrate their culture, not demean it. And in this case, we chose to follow our students' lead and look at the Caledonian's intent, not taking offense where none was intended," Lovett said.


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2 jets bump on taxiway at NYC airport

NEW YORK — Two commercial jets have been damaged in the aviation equivalent of a fender-bender at New York's Kennedy airport.

Nobody was reported injured in the accident, which happened at around 6:15 a.m. Saturday.

A JetBlue spokesman says a plane carrying around 150 passengers bound for West Palm Beach, Fla., had become temporarily disabled due to a problem with its tow bar and was sitting near a gate when it was bumped by an Air India aircraft.

The JetBlue plane suffered some damage to its rudder.

Airline spokesman Alex Headrick says the passengers were loaded on to another plane. The departure was delayed at least 3 ½ hours.

Messages left for Air India officials in New York weren't immediately returned.


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Older, quieter than WikiLeaks, Cryptome perseveres

NEW YORK — The FBI came calling after maps of urban rail tunnels and gas lines were posted online. Microsoft aggressively complained following the website's publication of a confidential handbook on company policies for helping police. Other critics have gone further, warning that some of the postings could aid America's enemies.

Yet Cryptome carries on.

The website, unfamiliar to the general public, is well-known in circles where intelligence tactics, government secrets and whistle-blowing are primary concerns. Since its creation in 1996, Cryptome has amassed more than 70,000 files — including lists of secret agents, high-resolution photos of nuclear power plants, and much more.

Its co-founder and webmaster, a feisty 77-year-old architect, doesn't hesitate when asked why.

"I'm a fierce opponent of government secrets of all kinds," says John Young. "The scale is tipped so far the other way that I'm willing to stick my neck out and say there should be none."

Young describes several exchanges with federal agents over postings related to espionage and potential security breaches, though no charges have ever been filed. And he notes that corporate complaints of alleged copyright violations and efforts to shut Cryptome down have gone nowhere.

For Young, there's a more persistent annoyance than these: the inevitable comparisons of Cryptome to WikiLeaks, the more famous online secret-sharing organization launched by Julian Assange and others in 2006.

Young briefly collaborated with WikiLeaks' creators but says he was dropped from their network after questioning plans for multimillion-dollar fundraising. Cryptome operates on a minimal budget — less than $2,000 a year, according to Young, who also shuns WikiLeaks-style publicity campaigns.

"We like the scholarly approach — slow, almost boring," says Young. He likens Cryptome to a "dusty, dimly lit library."

That's not quite the image that Reader's Digest evoked in 2005, in an article titled "Let's Shut Them Down." Author Michael Crowley assailed Cryptome as an "invitation to terrorists," notably because of its postings on potential security vulnerabilities.

Cryptome's admirers also don't fully buy into Young's minimalist self-description.

"He lives by his ideals and doesn't pull any punches," said Cindy Cohn, legal director of the Electronic Frontier Foundation, which advocates for online free speech and privacy rights.

"People like John serve as a really important safety valve for the rest of us, as to what our government is up to," Cohn said.

Young considers himself a freedom-of-information militant, saying he is unbothered by "the stigma of seeming to go too far."

Claims that Cryptome aids terrorists or endangers intelligence agents are "hokum," he said.

"We couldn't possibly publish information to aid terrorists that they couldn't get on their own," he said, depicting his postings about security gaps as civic-minded.

"If you know a weakness, expose it, don't hide it," he said.

Young attributes his anti-authoritarian outlook to a hard-up childhood in West Texas as the son of an Odessa-based oil-field worker. He joined the Army at 17, serving in Germany and elsewhere in the mid-1950s, attended Texas Tech for a year, then transferred to Rice University in Houston, where he earned bachelor's degrees in philosophy and architecture.

By the end of the 1960s, he was a widowed father of four, based in New York City with a master's degree in architecture from Columbia University. He also developed a host of connections to social activists, due in part to his role as a sort of elder statesman among fellow graduate students during the 1968 campus protests at Columbia.

By 1973, he had his own architecture practice in New York, and in 1993 he met fellow architect/scholar Deborah Natsios, a CIA agent's daughter who became his wife and colleague. They co-founded Cryptome in 1996 as an outgrowth of their involvement with Cypherpunks, an informal network which — early in the Internet era — was assessing the use of cryptography to shield private communications from government surveillance.

As a motto of sorts, the Cryptome home page offers a quote from psychiatrist Carl Jung: "The maintenance of secrets acts like a psychic poison which alienates the possessor from the community."

The website says Cryptome welcomes classified and confidential documents from governments worldwide, "in particular material on freedom of expression, privacy, cryptology, dual-use technologies, national security, intelligence, and secret governance."

Young attributes Cryptome's longevity and stature to its legion of contributors, most of them anonymous, who provide a steady stream of material to post.

Among the most frequently downloaded of Cryptome's recent postings were high-resolution photos of the Fukushima Dai-ichi nuclear plant in Japan after it was badly damaged in the March 2011 tsunami/earthquake disaster.

Cryptome also was a pivotal outlet last year for amorous emails between national security expert Brett McGurk and Wall Street Journal reporter Gina Chon, which led McGurk to withdraw as the Obama administration's nominee to be ambassador to Iraq.

Other documents on the site list names of people purported to be CIA sources, officers of Britain's MI6 spy agency, and spies with Japan's Public Security Investigation Agency.

Young says the posting about the Japanese agency prompted a phone call from the FBI in 2000, relaying a request from Japan's Justice Ministry that the names be removed. Young recalls that the agents told him the disclosure would have been illegal in Japan, but was not a crime in the U.S., and the names still remain viewable on Cryptome.

Another exchange with the FBI came in November 2003, according to Young, when two agents paid him a visit to discuss recent Cryptome postings intended to expose national security gaps. The postings included maps and photos of rail tunnels and gas lines leading toward New York's Madison Square Garden, where the Republican National Convention was to be held the next year.

The agents were polite, Young said, and made no assertion that he had broken any law.

Another confrontation occurred in 2010, when Cryptome posted Microsoft's confidential Global Criminal Compliance Handbook, outlining its policies for conducting online surveillance on behalf of law enforcement agencies. Contending that the posting was a copyright violation, Microsoft asked that Cryptome be shut down by its host, Network Solutions. Criticism of Microsoft followed, from advocates of online free speech, and the complaint was withdrawn within a few days.

Young acts as gatekeeper for Cryptome — and material that looks "nutty," he said, won't make the cut. But he balks at editing the material that he does post, and doesn't like to provide online commentary.

"We have an editorial role in selecting files, but we don't tell people what to think about them," he said. "It's up to you to decide."

Moreover, Young urges Cryptome's patrons to be skeptical of anything placed on the site, given that the motives of the contributors may not be known.

"Cryptome, aspiring to be a free public library, accepts that libraries are chock full of contaminated material, hoaxes, forgeries, propaganda," Young has written on the site. "Astute readers, seeking relief from manufactured and branded information, will pick and choose..."

Young is adamant that Cryptome will resist threats aimed at getting certain postings taken down. However, he says he sometimes accedes to requests from individuals to remove postings that they consider personally damaging.

Some of the material on Cryptome is visually powerful — for example a series of 4,200 photos of soldiers and other people killed and maimed in the Iraq and Afghanistan wars. Another series displays photos and videos of political protests, ranging from the 2004 Republican convention and the more recent Occupy Wall Street movement to incidents in Mexico, Tibet, Greece, Russia and the Middle East.

Natsios has created a distinctive series of her own — intricate multimedia narratives tracking the evolution of modern-day security regimes. One looks at Greece in the Cold War era (http://www.cryptome.org/irredenta/ ) while another, titled Ring of Steel (http://bit.ly/NbVczX ) examines the expansion of surveillance and anti-terrorism activity by the New York Police Department in the aftermath of the Sept. 11 attacks.

Her father, Nicholas Natsios, served in the CIA for three decades, and she grew up overseas as he shifted from post to post, including stints in Vietnam, South Korea and Greece. Young, for all his interest in national security, recalls that his father-in-law, who died in 2004, would never discuss the CIA with him.

The joint Young-Natsios architecture business remains active; Young says it's profitable enough to underwrite Cryptome's operations. And the couple pursues an array of other interests, encompassing literature, philosophy, history and other fields.

As a scholar, Young has tackled topics ranging from water power systems to the link between mental health and architecture. One of his papers at Columbia was titled "Furniture and Ideology."

Beyond academics, Young's Columbia experience influenced his later avocations in other ways. In April 1968, he was among a group of graduate students who occupied the architecture school's Avery Hall during campus-wide protests inspired by anti-war sentiments and opposition to a proposed gymnasium project.

In "Across the Barricades," a book about the Avery Hall occupation, Young is depicted as playing a key role — after initially keeping so quiet that some students thought he was a police spy. In a brief speech to his comrades, four days into the occupation, Young urged them to embrace their communal strengths and capitalize on their individual skills.

In the space of five minutes, writes author Richard Rosenkranz, Young "had induced us to relax, restored our morale, and reintroduced us to the power of positive thinking."

The occupation ended with police intervention and dozens of arrests. But Young said there was a positive legacy — the launch of an initiative called Urban Deadline, by him and other Avery veterans, that became a precursor for Cryptome with a mix of social activism and architecture projects.

In an epilogue to Rosenkranz's book, Young describes himself as a staunch believer in participatory democracy, "where each man participates in the decision processes that affect him."

To Cindy Cohn of the Electronic Frontier Foundation, that belief is embodied by Young's commitment to Cryptome.

"It's a very bare bones website, and I don't think he cares that it's run on a shoestring," she said. "He thinks of it as a small, important thing that he does for the world. I think of it as old-school public service."

___

Online:

http://cryptome.org/

___

Follow David Crary on Twitter at http://twitter.com/CraryAP


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