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Ed Webb

Exclusive: Ex-NSA cyberspies reveal how they helped hack foes of UAE - 0 views

  • Project Raven, a clandestine team that included more than a dozen former U.S. intelligence operatives recruited to help the United Arab Emirates engage in surveillance of other governments, militants and human rights activists critical of the monarchy.
  • in 2016, the Emiratis moved Project Raven to a UAE cybersecurity firm named DarkMatter. Before long, Stroud and other Americans involved in the effort say they saw the mission cross a red line: targeting fellow Americans for surveillance.
  • former U.S. government hackers have employed state-of-the-art cyber-espionage tools on behalf of a foreign intelligence service that spies on human rights activists, journalists and political rivals
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  • surveillance techniques taught by the NSA were central to the UAE’s efforts to monitor opponents
  • Various reports have highlighted the ongoing cyber arms race in the Middle East, as the Emirates and other nations attempt to sweep up hacking weapons and personnel faster than their rivals. The Reuters investigation is the first to reveal the existence of Project Raven, providing a rare inside account of state hacking operations usually shrouded in secrecy and denials.
  • While this activity raises ethical dilemmas, U.S. national security lawyers say the laws guiding what American intelligence contractors can do abroad are murky. Though it’s illegal to share classified information, there is no specific law that bars contractors from sharing more general spycraft knowhow, such as how to bait a target with a virus-laden email.
  • The hacking of Americans was a tightly held secret even within Raven, with those operations led by Emiratis instead. Stroud’s account of the targeting of Americans was confirmed by four other former operatives and in emails reviewed by Reuters.
  • Stroud had already made the switch from government employee to Booz Allen contractor, essentially performing the same NSA job at higher pay. Taking a job with CyberPoint would fulfill a lifelong dream of deploying to the Middle East and doing so at a lucrative salary. Many analysts, like Stroud, were paid more than $200,000 a year, and some managers received salaries and compensation above $400,000.
  • Providing sensitive defense technologies or services to a foreign government generally requires special licenses from the U.S. State and Commerce Departments. Both agencies declined to comment on whether they issued such licenses to CyberPoint for its operations in the UAE. They added that human rights considerations figure into any such approvals.
  • “Some days it was hard to swallow, like [when you target] a 16-year-old kid on Twitter,” she said. “But it’s an intelligence mission, you are an intelligence operative. I never made it personal.”
  • the program took aim not just at terrorists and foreign government agencies, but also dissidents and human rights activists. The Emiratis categorized them as national security targets
  • Emirati security forces viewed human rights advocates as a major threat to “national stability,”
  • Reached by phone in London, Donaghy, now a graduate student pursuing Arab studies, expressed surprise he was considered a top national security target for five years. Donaghy confirmed he was targeted using the techniques described in the documents. “I’m glad my partner is sitting here as I talk on the phone because she wouldn’t believe it,” he said. Told the hackers were American mercenaries working for the UAE, Donaghy, a British citizen, expressed surprise and disgust. “It feels like a betrayal of the alliance we have,” he said.
  • Mansoor was convicted in a secret trial in 2017 of damaging the country’s unity and sentenced to 10 years in jail. He is now held in solitary confinement, his health declining, a person familiar with the matter said. Mansoor’s wife, Nadia, has lived in social isolation in Abu Dhabi. Neighbors are avoiding her out of fear security forces are watching. They are correct. By June 2017 Raven had tapped into her mobile device and given her the code name Purple Egret, program documents reviewed by Reuters show. To do so, Raven utilized a powerful new hacking tool called Karma, which allowed operatives to break into the iPhones of users around the world.
  • Karma was particularly potent because it did not require a target to click on any link to download malicious software. The operatives understood the hacking tool to rely on an undisclosed vulnerability in Apple’s iMessage text messaging software. In 2016 and 2017, it would be used against hundreds of targets across the Middle East and Europe, including governments of Qatar, Yemen, Iran and Turkey, documents show. Raven used Karma to hack an iPhone used by the Emir of Qatar, Sheikh Tamim bin Hamad al-Thani, as well as the phones of close associates and his brother.
  • the UAE has been accused of suppressing free speech, detaining dissidents and other abuses by groups such as Human Rights Watch. The UAE says it is working closely with Washington to fight extremism “beyond the battlefield” and is promoting efforts to counter the “root causes” of radical violence. Raven’s targets eventually would include militants in Yemen, foreign adversaries such as Iran, Qatar and Turkey, and individuals who criticized the monarchy, said Stroud and eight other former Raven operatives. Their accounts were confirmed by hundreds of Raven program documents reviewed by Reuters.
  • But a 2014 State Department agreement with CyberPoint showed Washington understood the contractors were helping launch cyber surveillance operations for the UAE. The approval document explains CyberPoint’s contract is to work alongside NESA in the “protection of UAE sovereignty” through “collection of information from communications systems inside and outside the UAE” and “surveillance analysis.”
  • “It was incredible because there weren’t these limitations like there was at the NSA. There wasn’t that bullshit red tape,”
  • Under DarkMatter, Project Raven continued to operate in Abu Dhabi from the Villa, but pressure escalated for the program to become more aggressive. Before long, senior NESA officers were given more control over daily functions, former Raven operatives said, often leaving American managers out of the loop. By mid-2016, the Emirates had begun making an increasing number of sections of Raven hidden from the Americans still managing day-to-day operations. Soon, an “Emirate-eyes only” designation appeared for some hacking targets.
  • Stroud began searching a targeting request list usually limited to Raven’s Emirati staff, which she was still able to access because of her role as lead analyst. She saw that security forces had sought surveillance against two other Americans. When she questioned the apparent targeting of Americans, she received a rebuke from an Emirati colleague for accessing the targeting list, the emails show. The target requests she viewed were to be processed by “certain people. You are not one of them,” the Emirati officer wrote.
  • Days later, Stroud said she came upon three more American names on the hidden targeting queue.
  • occupations were listed: journalist
  • When Stroud kept raising questions, she said, she was put on leave by superiors, her phones and passport were taken, and she was escorted from the building. Stroud said it all happened so quickly she was unable to recall the names of the three U.S. journalists or other Americans she came across in the files. “I felt like one of those national security targets,” she said. “I’m stuck in the country, I’m being surveilled, I can’t leave.” After two months, Stroud was allowed to return to America. Soon after, she fished out the business card of the FBI agents who had confronted her at the airport. “I don’t think Americans should be doing this to other Americans,” she told Reuters. “I’m a spy, I get that. I’m an intelligence officer, but I’m not a bad one.”
Ed Webb

Who in the GCC wants a union? - 0 views

  • Citing “security problems, economic challenges and other serious issues confronted by the region,” Bahrain’s Prime Minister Prince Khalifa bin Salman Al Khalifa recently announced that the transformation of the Gulf Cooperation Council (GCC) to a union is an “inevitable goal” of this month’s Manama Dialogue (Dec. 9-11).
  • With absolutely no illusions that Oman — historically the most independent member of the GCC — has changed its position, last month Ghanem al-Buainain, Bahrain’s minister of Parliament Affairs, stated that he sensed “great enthusiasm for the union from the other Gulf members.”
  • Many non-Saudis in the GCC view Saudi Arabia as an important ally, yet they also see the oil-rich kingdom as an overbearing neighbor who does not always respect the smaller Arab Gulf states’ sovereignty. Due to a host of domestic issues in the GCC and regional developments, which the Arab Gulf families see through different lenses, Riyadh and Manama officials may see their plan for a union falling on deaf ears.
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  • Kuwait is the GCC state with the most vibrant political life and democratic institutions. Opposition to a union from Kuwait is largely attributable to concerns about “collective security actions” that Saudi Arabia and other Arab Gulf states could pursue to silence dissent and activism in Kuwait. Last month’s snap elections in Kuwait will bring in parliamentarians to the National Assembly from an opposition made up of liberals and Islamists whom other GCC states would not permit to hold any position of power in their own political systems. As many Kuwaitis take pride in their “half-democracy” and relative transparency and openness, the concept of a union has met its share of resistance in the country from voices across its political spectrum.
  • Doha has established ties with Islamist factions throughout the region and hosted many Muslim Brotherhood members — often done so at the expense of healthy relations with other GCC states. If other Arab Gulf countries such as the UAE, which designate the Muslim Brotherhood a “terrorist” group, and Qatar belong to a union, what will be the future of Sheikh Yusuf al-Qaradawi and other prominent Islamist figures who live in Doha?
  • Emiratis view themselves as a rival of Saudi Arabia for a dominant role in the region’s financial landscape, Abu Dhabi would not lend its support to a Riyadh-based Gulf central bank. In the UAE, where the authorities are waging a crackdown on Islamists, there has long been a belief that the Muslim Brotherhood operates in the Emirates on behalf of Saudi Arabia and Qatar for the purpose of undermining the UAE’s national sovereignty and independence.
  • Oman’s interest in deepening ties with Iran in commercial, diplomatic, energy and security spheres is a major factor driving Omani opposition to a union
  • Given the Kuwaiti and Qatari royal families’ cordial relationship with their countries’ Shiites who are loyal to the Al Sabah (Kuwait) and Al Thani (Qatar) rulers, threats of an Iranian-inspired Shiite revolution or rebellion have not provoked substantial sectarian tension in Kuwait since the end of the first Gulf war, nor has it ever done so in Qatar at any point following Ayatollah Ruhollah Khomeini’s rise to power in 1979. This outlook fundamentally contrasts with Saudi Arabia’s and Bahrain’s outlook, which is based on an understanding of Iran being a predatory state committed to toppling the Al Sauds and Al Khalifas through a violent revolution. Manama and Riyadh’s shared view of the Islamic Republic as an existential threat has closely aligned the two kingdoms and led Bahrain to maintain its strong support for a de facto Saudi-led union.
  • the option of perhaps one day importing Iranian gas may receive greater consideration if they remain relatively independent from Saudi Arabia in the framework of a council (not union) and their economic ills increase their interest in importing more natural gas. Yet a union would erase any realistic Kuwaiti or Emirati plans for signing gas contracts with Iran
  • there are grave concerns in the GCC about the US’ long-term commitment as the council’s security guarantor
Ed Webb

Stronger Egypt-Iran rapproachement could be a message to third parties | Egypt Independent - 3 views

  • Ahmadinejad wants to convey regional leadership and to claim success in opening and warming relations with Egypt. He also benefits from having an Islamist leader, like Morsy, greet him warmly
  • “With so much trouble at home, Morsy may have wanted to look like a global statesman by welcoming Ahmadinejad. He may also want to signal his independence from Western political interests, as we’ve seen through his warming relations with the Hamas’ leadership,”
  • During a news conference, an Al-Azhar spokesperson gave the Iranian leader a public scolding, listing five demands, which included the protection of Sunni and Khuzestani minorities in Iran, ending political interference in Bahrain, ending its support of the Syrian regime, and ending Iran’s ostensible mission to spread Shia Islam across the region.
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  • “Morsy sends a clear message to the Gulf countries and especially the [United Arab Emirates] that he can easily create alternative strategic relationship,” Labbad says, adding that such “political vexing” is a response to the failure of the visit by Morsy adviser Essam al-Haddad to resolve the issue of 11 Egyptian detainees in the UAE. The latter are said to have strong connections to the Brotherhood’s international organization, in the midst of growing enmity between Egypt and the UAE.. Labbad argues that Morsy thus does not aim at real and deep rapprochement with Iran, but rather a cosmetic patch up to send signals to the Gulf. “The context here is very dangerous, because the revived relationship with Iran should be an addition to Egypt’s foreign policy, not a replacement of its relationship with the Gulf countries,” he adds. Momani doubts such an inclination by Morsy, as Egypt cannot afford the cost of such a policy. “This strategy can backfire and upset Gulf donors and benefactors. Iran can never supply the kinds of funds that are provided by the Gulf,” she says.
  • “I think neither Morsy nor Ahmadinejad enjoy the authority to have complete control or knowledge of their respective government’s grand strategies for Syria. What seems certain is that a realist agenda determines foreign policy on both sides. Both seek a Syrian government they can control or at least influence,”
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    Various levels of analysis and perspectives at work here, including domestic, foreign policy and (regional) systemic levels and identity versus realist perspectives.
Ed Webb

Members of new Pompeo task force have previously praised human-rights abusers | PBS New... - 0 views

  • Secretary of State Mike Pompeo announced the formation of the Commission on Unalienable Rights on Monday, saying he hoped it would undertake the most extensive reexamination of what counts as an “unalienable right,” first laid out in a 1948 United Nations document known as “The Universal Declaration of Human Rights.”
  • the new chairperson of the 10-person commission has written in favor of practices that could undermine Pompeo’s stated goal of “ground[ing] our discussion of human rights in America’s founding principles.” Separately, two of the new commissioners are on record defending known human-rights abusers.
  • In making the case for the commission, and the need for a wholesale revisiting of the concept of “human rights,” the State Department actually cited a white paper released by the Chinese Communist Party last year, in which it asserted that it had “blazed a trail of development in human rights that conforms to the national conditions.”
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  • Malinowski said governments like China could take advantage of possible U.S. flexibility to actually further their repressive practices in the name of “economic and social rights,” which is a term China often uses to justify its practices. For example, the State Department says China practices widespread Internet censorship to prevent disruptions to the “economic or social order,” according to the most recent human rights report.
  • Two have previously defended the regimes in Saudi Arabia, the United Arab Emirates and Turkey, all of which stand accused of human rights abuses by international standards.
  • In 2018, commissioner Russell Berman, a Stanford University professor of comparative literature and German studies, downplayed the outcry over the murder of Saudi journalist Jamal Khashoggi, saying the reaction was politically motivated
  • Last year, another commission member, Hamza Yusuf, praised the UAE, calling it “a country that is committed to tolerance…. This is a country that is committed to civil society. It is one of the safest countries on the earth.” Contrary to Yusuf’s assertion, the UAE also stands accused of numerous human rights abuses perpetrated on its own citizens.
  • Asked about Berman’s Khashoggi comments, a senior administration official referred to President Donald Trump’s latest comments about the matter at the G20 summit in Osaka, Japan. During a press conference there, Trump said he was “very unhappy” about Khashoggi’s murder but said “nobody, so far, has pointed directly a finger at the future King of Saudi Arabia,” contradicting the assessment of his own intelligence agency.
  • Michael Posner, who served at State from 2009 to 2013. Posner expressed doubt that any one commissioner’s personal views would affect the department’s overall policies, but said that their ruminations on long-standing positions held at each of the agency’s many bureaus could muddle the State Department’s overall message.
  • The official noted that the commission is part of the Policy Planning Staff, a clearinghouse for independent analysis and advice for the secretary of state, arguing that its position means it will not play a role in policy-making
  • These commissions do not need congressional approval or appropriations of funds. Instead, they are enacted with a “timely notice” in the Federal Register, per a 1972 law, which also says advisory committees may not make policy, leaving such decisions up to the president or “an officer of the federal government.”
  • Some human rights groups and Democratic lawmakers have also expressed concern that the commission’s goal of refocusing on “unalienable rights” is actually an attempt to narrow the rights the government has to protect, including abortion rights and protections for the LGBTQ community.
Ed Webb

Yemen: War Profiteers | Yemen | Al Jazeera - 0 views

  • According to the United Nations, Yemen today is the world's worst humanitarian crisis. In 2018, the UN appointed a panel of experts to examine the coalition blockade on Yemen and the impact of the thousands of airstrikes launched against civilians there. It concluded that these practices could qualify as war crimes. It pointed not only at Saudi Arabia and the UAE, but also at the parties supplying the coalition with weapons, based on a multilateral treaty regulating arms sales that has been in force since 2014. Saudi Arabia buys its weapons from the United States and the United Kingdom, as well as from a number of European arms manufacturers, led by French and German companies.
  • The European parliament has called for a suspension of arms sales to Saudi. Although five EU member states have stopped selling war weapons to the kingdom, its five biggest suppliers, led by the UK, have not. 
  • In this film, we reveal details of the shadowy world of the so-called legal arms trade, the double-discourse of our democracies, and the shortcomings of European governments. And we pose a fundamental question: by pursuing trade with Saudi Arabia, are European countries complicit in war crimes?
Ed Webb

The Turbulent World of Middle East Soccer: Saudi Arabia rolls the dice with bid for New... - 0 views

  • Saudi Crown Prince Mohammed bin Salman has rolled the dice with a US$ 374 million bid to acquire storied British soccer club Newcastle United. If approved by Britain’s Premier League that nominally maintains a high bar for the qualification of aspiring club owners, Prince Mohammed would have demonstrated that he has put behind him an image tarnished by Saudi conduct of a five-year long war in Yemen, the 2018 killing of journalist Jamal Khashoggi, systematic abuse of human rights and, more recently, the kingdom’s badly-timed oil price war with Russia.
  • the kind of financial muscle that allows it to acquire trophies that enable it to project itself in a different light and garner soft power rather than financial gain at a time of a pandemic and global economic collapse.
  • Aramco, the Saudi national oil company, was reported to be talking to banks about a US$10 billion loan to help finance its acquisition of a 70% stake in Saudi Basic Industries Corp (SABIC). The deal would pour money into the Public Investment Fund (PIF), the kingdom’s sovereign wealth fund.
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  • The acquisition would mimic the 2017 purchase of celebrated soccer star Neymar by Qatar-owned Paris St. Germain for US$277 million intended to demonstrate that the Gulf state was unaffected by the then several months-old Saudi-UAE-led economic and diplomatic boycott.
  • a decision by the Premier League to reject the acquisition of Newcastle would be perceived as yet another of Prince Mohammed’s self-inflicted public relations fiascos that include multiple failed attempts to position the kingdom as a powerhouse in international soccer governance
  • Prince Mohammed is betting that the Premier League at a time of economic crisis and with Britain needing to forge new trade relationships in the wake of its departure from the European Union may not want to slam the door on a wealthy investor and/or jeopardize British relations with the kingdom.
  • Saudi Arabia responded in 2018 to Canadian criticism of the kingdom’s human rights record by withdrawing its ambassador and freezing all new trade and investment transactions. German criticism of a failed Saudi attempt to force the resignation of Lebanon’s prime minister led that same year to a de facto downgrading of diplomatic relations and reduced trade.
  • The League has tightened its criteria to test potential club owners on their integrity and reputation. The criteria include ensuring that a potential owner has not committed an act in a foreign jurisdiction that would be a criminal offence in Britain, even if not illegal in their own country.
  • Supporters of the acquisition argue that it bolsters Prince Mohammed’s reforms in a soccer-crazy country and reaffirms his push to break with the kingdom’s austere, inward-looking past. They reason further that it will bolster investment in Newcastle and surroundings at a time of impending economic hardship.
  • Supporters only need to look at Manchester where the United Arab Emirates’ acquisition of Manchester City more than a decade ago has benefitted not only the club but the city too.
  • supporters of Newcastle are likely to welcome the financial injection and departure of the club’s unpopular current owner, Mike Ashley, and ignore condemnation of the deal by human rights activists, including Amnesty International, as “sportswashing, plain and simple.”
Ed Webb

Despite Slump, U.S. Role as Top Arms Supplier Grows - NYTimes.com - 0 views

  • The United States signed weapons agreements valued at $37.8 billion in 2008, or 68.4 percent of all business in the global arms bazaar, up significantly from American sales of $25.4 billion the year before. Italy was a distant second, with $3.7 billion in worldwide weapons sales in 2008, while Russia was third with $3.5 billion in arms sales last year — down considerably from the $10.8 billion in weapons deals signed by Moscow in 2007.
  • The United States was the leader not only in arms sales worldwide, but also in sales to nations in the developing world, signing $29.6 billion in weapons agreements with these nations, or 70.1 percent of all such deals.The study found that the larger arms deals concluded by the United States with developing nations last year included a $6.5 billion air defense system for the United Arab Emirates, a $2.1 billion jet fighter deal with Morocco and a $2 billion attack helicopter agreement with Taiwan. Other large weapons agreements were reached between the United States and India, Iraq, Saudi Arabia, Egypt, South Korea and Brazil.
  • The top buyers in the developing world in 2008 were the United Arab Emirates, which signed $9.7 billion in arms deals; Saudi Arabia, which signed $8.7 billion in weapons agreements; and Morocco, with $5.4 billion in arms purchases.
Ed Webb

The demise of the dollar - Business News, Business - The Independent - 0 views

  • The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.
  • a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security."
  • World Bank president Robert Zoellick. "One of the legacies of this crisis may be a recognition of changed economic power relations,"
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  • In a clear sign of China's growing financial muscle, the president of the European Central Bank, Jean-Claude Trichet, yesterday pleaded with Beijing to let the yuan appreciate against a sliding dollar and, by extension, loosen China's reliance on US monetary policy, to help rebalance the world economy and ease upward pressure on the euro.
  • The current deadline for the currency transition is 2018.
  • Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars. Bankers remember, of course, what happened to the last Middle East oil producer to sell its oil in euros rather than dollars. A few months after Saddam Hussein trumpeted his decision, the Americans and British invaded Iraq.
    • Ed Webb
       
      Fisky always has been prone to alarmism. Iran is a much tougher target than Iraq. But if even some of what he reports here is true, economic power relations are indeed about to shift. And the move away from dollars for oil trading has been predictable for some time.
Ed Webb

Can the Saudi-led coalition win the war in Yemen? | openDemocracy - 4 views

  • Unlike his cautious predecessors, Salman promptly overturned the previously agreed order of succession and installed his favourite young son [about 30 years old] as Minister of Defence and Deputy Crown Prince. He even dumped the crown prince selected by his deceased brother in favour of the son of another member of the ‘Sudairy seven’. To sustain this new order of succession and, indeed, possibly to enable his own son to become crown prince, new assertive international policies seemed like a good idea, creating popular support at home by demonstrating military capability and independence from the US and other western allies. It would also address increased Saudi concern at what they saw as US dereliction of duty. For decades, the unwritten agreement was that Saudi Arabia would say little or nothing about Israel, provided the US supported its dominance elsewhere in the Arab world. In 2015, not only was the US failing to support the Islamist Syrian opposition factions favoured by the Saudis, but it was about to reach agreement with Iran, Saudi Arabia’s main rival, not to say enemy, in the region. 
    • Ed Webb
       
      Foreign/security policy driven by domestic priorities: specifically, dynastic succession politics.
  • A coalition was promptly put together and air strikes were launched on 26 March 2015, with the stated intention of restoring the legitimate authority to power and ousting the rebels. It is likely that those who took that decision gave little thought to Yemeni realities, whether military, logistic, topographic, social or political, let alone the human cost of their actions.
  • The overall military situation has reached stalemate. The official death toll had risen to 6000 by end 2015 with over 28,000 wounded. The humanitarian situation is at UN emergency level, with 21.2 million of the 26 million population in need and only 8.8 million reached in 2015 with the UN humanitarian appeal having been funded at 56% for the year
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  • The negotiations which took place in Geneva in December fulfilled everyone’s expectation of achieving nothing
  • Internationally, it is clear that the efforts to resolve the Syrian situation have relegated the Yemen crisis far down the list of priorities.
  • four Médecins Sans Frontières medical facilities have been bombed in recent months, in addition to over 60 other medical facilities seriously damaged or destroyed
  • The latest report from the UN Sanctions Committee blames the coalition for violating international humanitarian law by ‘targeting civilians and civilian objects… including buses, civilian residential areas, medical facilities, schools, mosques, markets, factories and food storage warehouses and other essential civilian infrastructure, such as the airport in Sana’a, the port in Hudaydah and domestic transit routes.”[3]
  • The dramatic drop in oil prices has forced the Saudi regime into deficit budgeting for the first time in decades. The USD 200 million a month it spends on the war is a significant contributory factor.
Ed Webb

The Military-Industrial Jobs Scam | naked capitalism - 0 views

  • despite defense contractor claims to the contrary, increased military spending has been accompanied by job losses in the US
  • the contracting fraud results in US taxpayers paying way more than it would have cost for US personnel to do the work…with the added insult that the tasks were performed by locals for a pittance
  • When contractors receive more taxpayer money, do they generally create more jobs? To answer it, we analyzed the reports of major defense contractors filed annually with the U.S. Securities and Exchange Commission (SEC). Among other things, these reveal the total number of people employed by a firm and the salary of its chief executive officer. We then compared those figures to the federal tax dollars each company received, according to the Federal Procurement Data System, which measures the “dollars obligated,” or funds, the government awards company by company
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  • the Trump administration has stopped at nothing to push the argument that job creation is justification enough for supporting weapons manufacturers to the hilt. Even before Donald Trump was sworn in as president, he was already insisting that military spending was a great jobs creator. He’s only doubled down on this assertion during his presidency. Recently, overriding congressional objections, he even declared a national “emergency” to force through part of an arms sale to Saudi Arabia that he had once claimed would create more than a million jobs. While this claim has been thoroughly debunked, the most essential part of his argument — that more money flowing to defense contractors will create significant numbers of new jobs — is considered truth personified by many in the defense industry
  • In 2012, concerned that those caps on defense spending would cut into their bottom lines, the five top contractors went on the political offensive, making future jobs their weapon of choice. After the Budget Control Act passed, the Aerospace Industries Association — the leading trade group of the weapons-makers — warned that more than one million jobs would be at risk if Pentagon spending were cut significantly. To emphasize the point, Lockheed sent layoff notices to 123,000 employees just before the BCA was implemented and only days before the 2012 election. Those layoffs never actually happened, but the fear of lost jobs would prove real indeed and would last.
  • Pentagon spending was actually higher in 2018 than in 2012
  • From 2012 to 2018, overall employment at Lockheed actually fell from 120,000 to 105,000, according to the firm’s filings with the SEC and the company itself reported a slightly larger reduction of 16,350 jobs in the U.S. In other words, in the last six years Lockheed dramatically reduced its U.S. workforce, even as it hired more employees abroad and received more taxpayer dollars
  • where is all that additional taxpayer money actually going, if not job creation? At least part of the answer is contractor profits and soaring CEO salaries. In those six years, Lockheed’s stock price rose from $82 at the beginning of 2012 to $305 at the end of 2018, a nearly four-fold increase. In 2018, the company also reported a 9% ($590 million) rise in its profits, the best in the industry. And in those same years, the salary of its CEO increased by $1.4 million
  • From 2012 to 2018, the unemployment rate in the U.S. plummeted from roughly 8% to 4%, with more than 13 million new jobs added to the economy. Yet, in those same years, three of the five top defense contractors slashed jobs. In 2018, the Pentagon committed approximately $118 billion in federal money to those firms, including Lockheed — nearly half of all the money it spent on contractors. This was almost $12 billion more than they had received in 2012. Yet, cumulatively, those companies lost jobs and now employ a total of 6,900 fewer employees than they did in 2012, according to their SEC filings.
  • In addition to the reductions at Lockheed, Boeing slashed 21,400 jobs and Raytheon cut 800 employees from its payroll. Only General Dynamics and Northrop Grumman added jobs — 13,400 and 16,900 employees, respectively — making that total figure look modestly better. However, even those “gains” can’t qualify as job creation in the normal sense, since they resulted almost entirely from the fact that each of those companies bought another Pentagon contractor and added its employees to its own payroll
  • “the aerospace and defense (A&D) sector scored record revenues and profits in 2018” with an “operating profit of $81 billion, surpassing the previous record set in 2017.” According to the report, Pentagon contractors were at the forefront of these profit gains. For example, Lockheed’s profit improvement was $590 million, followed closely by General Dynamics at $562 million. As employment shrank, CEO salaries at some of these firms only grew. In addition to compensation for Lockheed’s CEO jumping from $4.2 million in 2012 to $5.6 million in 2018, compensation for the CEO of General Dynamics increased from $6.9 million in 2012 to a whopping $20.7 million in 2018.
  • weapons-making outfits spend more than $100 million on lobbying yearly, donate tens of millions of dollars to the campaigns of members of Congress every election season, and give millions to think tanks annually
  • research has repeatedly shown that, even with this supposed “multiplier effect,” defense spending produces fewer jobs than just about anything else the government puts our money into. In fact, it’s about 50% less effective at creating jobs than if taxpayers were simply allowed to keep their money and use it as they wished
  • As Brown University’s Costs of War project has reported, “$1 billion in military spending creates approximately 11,200 jobs, compared with 26,700 in education, 16,800 in clean energy, and 17,200 in health care.”
  • not only are the green energy and education areas vital to the future of the country, they are also genuine job-creating machines. Yet, the government gives more taxpayer dollars to the defense industry than all these other government functions combined.
  • Reports from the industry’s own trade association show that it has been shedding jobs. According to an Aerospace Industries Association analysis, it supported approximately 300,000 fewer jobs in 2018 than it had reported supporting just three years earlier
  • add to their army of lobbyists, their treasure trove of campaign contributions, and those think tanks on the take, the famed revolving door that sends retired government officials into the world of the weapons makers and those working for them to Washington
  • since 2008, as the Project On Government Oversight’s Mandy Smithberger found, “at least 380 high-ranking Department of Defense officials and military officers shifted into the private sector to become lobbyists, board members, executives, or consultants for defense contractors.” 
Ed Webb

Saudi Arabia and Iran are starting to solve their differences without America. - 0 views

  • Saudi and Iranian security officials have been holding secret talks since January without any U.S. involvement—a bit of news that has led some to bemoan a decline in American power as President Biden seeks to withdraw from the Middle East. But in fact, this is good news, both for the United States and for the prospects of calm in the region.
  • The secret talks were first reported last month in the Financial Times. The British news site Amwad.media has since reported that five such meetings have been held, beginning as far back as January, and that some of these sessions have also included officials from the United Arab Emirates, Egypt, and Jordan, on topics ranging from the war in Yemen to security in Syria and Lebanon.
  • Saudi Arabia and Iran have had no diplomatic relations since 2016. Their leaders and diplomats have practically hissed war threats at one another since before then. In other words, even if the talks don’t produce many tangible results, we are witnessing a monumental political shift.
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  • A senior Biden adviser told me, during the transition between election and inauguration, that the region would rank “a distant fourth” in Biden’s priorities, after Asia Pacific, Europe, and South America
  • As Trita Parsi recently put it in Foreign Policy, “It’s not so much anything Washington has done but rather what Washington has stopped doing—namely, reassuring its security partners in the region that it will continue to support them unconditionally, no matter what reckless conduct they engage in.”
  • Biden’s pushback also marks a departure from President Obama’s policy, which, in many ways, perpetuated Washington’s accommodation of Saudi interests—a carryover from U.S. policy dating back to just after World War II—despite his avid desire to “pivot” away from the region. For instance, in order to placate Saudi anxieties over his signing of the Iran nuclear deal (which would involve lifting U.S. sanctions against Tehran), Obama allowed Riyadh to use American munitions against Iranian-backed rebels in the Yemen war. (Obama later regretted this concession.)
  • in recent years, the Saudi Crown and other Sunni powers have cozied up with Israel, a partner in the cold war with Iran—which, even if the Saudi-Iranian talks are fruitful, isn’t about to vanish
  • Ignore moral values for a moment. Is there any reason, on strictly geopolitical grounds, for an American president to accommodate Saudi interests when they compromise our own? No.
  • Letting Saudi Arabia and Iran reach some modus operandi on their own does not reflect a decline of American power, nor is anyone likely to see it that way. It’s more likely to be seen as a sensible end to the squandering of our resources.
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