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Via the Tax Justice Network, I've just learned of a massive, multi-national joint investigation into secrecy jurisdictions by three very heavy hitters, the Guardian, BBC Panorama, and the U.S.-based International Consortium of Investigative Journalists (ICIJ). Though they are starting out with the United Kingdom and the seriously understudied situation in the British Virgin Islands, ICIJ has announced that this is just the start of a multi-year investigative project and that there are "many more countries to come in the next 12 months." Further, according to ICIJ, the investigation involves literally "dozens of jurisdictions and in collaboration with dozens of media partners and freelance journalists around the world" (emphasis in original).

As I write this, the first and second articles (Nov. 25 and 26) in the Guardian's series rank number two and number one in the "most viewed" articles in the last 24 hours. One of the most amazing articles discusses the use of "nominee" directors, people who pretend to be a company or foundation's directors in order to hide the true ownership from authorities. Incredibly, these nominee directors frequently do not know the companies they are supposedly responsible for; they just know that they are getting paid for the use of their names. Be sure to check out the BBC undercover film linked from this Guardian article.

But let's not forget: tax havens cost the middle class worldwide hundreds of billions of dollars in tax revenue that they have to make up. The evidence is mounting that they are a central piece of the world financial system. Fundamental reform is necessary and a massive journalistic effort like this one will help produce the outrage to make it possible. I'm looking forward to more fruits of this investigation.

The House, for a second year in a row, has approved a measure limiting Pentagon spending on military bands next year to only $200 million. An amendment by Rep. Betty McCollum (D-Minn.), a member of the House Appropriations Committee, was approved as part of the fiscal 2013 Defense Authorization Bill and could save $188 million if it makes it through Congress. A similar amendment passed by the House last year, however, was dropped by the House-Senate conference. In a statement placed in the Congressional Record, McCollum said: “Over the past four years, taxpayers have spent $1.55 billion for the Pentagon’s 150 military bands and more than 5,000 full-time, professional military musicians.... At a time of fiscal crisis the Pentagon will have to get by spending only $200 million for their musical arsenal.”

But, when it comes to reining in spending, only the Air Force had plans to do so, dropping eight of its 23 bands next year. The other services are increasing funding.

The Army, Navy and Marine Corps, which also face personnel reductions, are keeping their current 125 bands for 2013 and actually increasing their spending on them by $6.4 million, according to the Defense Department.

Is the “fiscal cliff” real or just another hoax? The answer is that the fiscal cliff is real, but it is a result, not a cause. The hoax is the way the fiscal cliff is being used. The fiscal cliff is the result of the inability to close the federal budget deficit. The budget deficit cannot be closed because large numbers of US middle class jobs and the GDP and tax base associated with them have been moved offshore, thus reducing federal revenues. The fiscal cliff cannot be closed because of the unfunded liabilities of eleven years of US-initiated wars against a half dozen Muslim countries--wars that have benefitted only the profits of the military/security complex and the territorial ambitions of Israel. The budget deficit cannot be closed, because economic policy is focused only on saving banks that wrongful financial deregulation allowed to speculate, to merge, and to become too big to fail, thus requiring public subsidies that vastly dwarf the totality of US welfare spending.

The real crisis facing the US is the impending collapse of the US dollar’s foreign exchange value. The US dollar’s value in relation to silver and gold has already collapsed. In the past ten years, gold’s price in US dollars has increased from $250 per ounce to $1,750 per ounce, an increase of $1,500. Silver’s price has risen from $4 per ounce to $34 per ounce. These price rises are not due to a sudden scarcity of gold and silver, but to a flight from the dollar into the two forms of historical money that cannot be created with the printing press.

What can be done? For a number of years I have pointed out that the problem is the loss of US employment, consumer income, GDP, and tax base to offshoring. The solution is to reverse the outward flow of jobs and to bring them back to the US. This can be done, as Ralph Gomory has made clear, by taxing corporations according to where they add value to their product. If the value is added abroad, corporations would have a high tax rate. If they add value domestically with US labor, they would face a low tax rate. The difference in tax rates can be calculated to offset the benefit of the lower cost of foreign labor. As all offshored production that is brought to the US to be marketed to Americans counts as imports, relocating the production in the US would decrease the trade deficit, thus strengthening belief in the dollar. The increase in US consumer incomes would raise tax revenues, thus lowering the budget deficit. It is a win-win solution.

Previously, when looking at the real underlying national interests responsible for the deteriorating situation in Syria, which eventually may and/or will devolve into all out war with hundreds of thousands killed, we made it very clear that it was always and only about the gas, or gas pipelines to be exact, and specifically those involving the tiny but uber-wealthy state of Qatar. Needless to say, the official spin on events has no mention of this ulterior motive, and the popular, propaganda machine, especially from those powers supporting the Syrian "rebels" which include Israel, the US and the Arabian states tries to generate public and democratic support by portraying Assad as a brutal, chemical weapons-using dictator, in line with the tried and true script used once already in Iraq. On the other hand, there is Russia (and to a lesser extent China: for China's strategic interests in mid-east pipelines, read here), which has been portrayed as the main supporter of the "evil" Assad regime, and thus eager to preserve the status quo without a military intervention

However, one question that has so far remained unanswered, and a very sensitive one now that the US is on the verge of voting to arm the Syrian rebels, is who was arming said group of Al-Qaeda supported militants up until now. Now, finally, courtesy of the FT we have the (less than surprising) answer, which goes back to our original thesis, and proves that, as so often happens in the middle east, it is once again all about the natural resources. From the FT: The tiny gas-rich state of Qatar has spent as much as $3bn over the past two years supporting the rebellion in Syria, far exceeding any other government, but is now being nudged aside by Saudi Arabia as the prime source of arms to rebels.

Why would Qatar want to become involved in Syria where they have little invested?  A map reveals that the kingdom is a geographic prisoner in a small enclave on the Persian Gulf coast.   It relies upon the export of LNG, because it is restricted by Saudi Arabia from building pipelines to distant markets.  In 2009, the proposal of a pipeline to Europe through Saudi Arabia and Turkey to the Nabucco pipeline was considered, but Saudi Arabia that is angered by its smaller and much louder brother has blocked any overland expansion.   Already the largest LNG producer, Qatar will not increase the production of LNG.  The market is becoming glutted with eight new facilities in Australia coming online between 2014 and 2020.   A saturated North American gas market and a far more competitive Asian market leaves only Europe.  The discovery in 2009 of a new gas field near Israel, Lebanon, Cyprus, and Syria opened new possibilities to bypass the Saudi Barrier and to secure a new source of income.  Pipelines are in place already in Turkey to receive the gas.  Only Al-Assad is in the way.

On Thursday, the Senate Armed Services Committee held a hearing on whether the statutory basis for this "war" - the 2001 Authorization to Use Military Force (AUMF) - should be revised (meaning: expanded). This is how Wired's Spencer Ackerman (soon to be the Guardian US's national security editor) described the most significant exchange: "Asked at a Senate hearing today how long the war on terrorism will last, Michael Sheehan, the assistant secretary of defense for special operations and low-intensity conflict, answered, 'At least 10 to 20 years.' . . . A spokeswoman, Army Col. Anne Edgecomb, clarified that Sheehan meant the conflict is likely to last 10 to 20 more years from today - atop the 12 years that the conflict has already lasted. Welcome to America's Thirty Years War." That the Obama administration is now repeatedly declaring that the "war on terror" will last at least another decade (or two) is vastly more significant than all three of this week's big media controversies (Benghazi, IRS, and AP/DOJ) combined. The military historian Andrew Bacevich has spent years warning that US policy planners have adopted an explicit doctrine of "endless war". Obama officials, despite repeatedly boasting that they have delivered permanently crippling blows to al-Qaida, are now, as clearly as the English language permits, openly declaring this to be so.

It is hard to resist the conclusion that this war has no purpose other than its own eternal perpetuation. This war is not a means to any end but rather is the end in itself. Not only is it the end itself, but it is also its own fuel: it is precisely this endless war - justified in the name of stopping the threat of terrorism - that is the single greatest cause of that threat.

I wrote that the "war on terror" cannot and will not end on its own for two reasons: (1) it is designed by its very terms to be permanent, incapable of ending, since the war itself ironically ensures that there will never come a time when people stop wanting to bring violence back to the US (the operational definition of "terrorism"), and (2) the nation's most powerful political and economic factions reap a bonanza of benefits from its continuation. Whatever else is true, it is now beyond doubt that ending this war is the last thing on the mind of the 2009 Nobel Peace Prize winner and those who work at the highest levels of his administration. Is there any way they can make that clearer beyond declaring that it will continue for "at least" another 10-20 years? The genius of America's endless war machine is that, learning from the unplesantness of the Vietnam war protests, it has rendered the costs of war largely invisible. That is accomplished by heaping all of the fighting burden on a tiny and mostly economically marginalized faction of the population, by using sterile, mechanized instruments to deliver the violence, and by suppressing any real discussion in establishment media circles of America's innocent victims and the worldwide anti-American rage that generates. Though rarely visible, the costs are nonetheless gargantuan. Just in financial terms, as Americans are told they must sacrifice Social Security and Medicare benefits and place their children in a crumbling educational system, the Pentagon remains the world's largest employer and continues to militarily outspend the rest of the world by a significant margin. The mythology of the Reagan presidency is that he induced the collapse of the Soviet Union by luring it into unsustainable military spending and wars: should there come a point when we think about applying that lesson to ourselves?

"I don't know." "I don't remember." "I'm not familiar with that detail." "It's not my precise area." "I'm not familiar with that letter." These are quotes from the Internal Revenue Service officials who testified this week before the House and Senate. That is the authentic sound of stonewalling, and from the kind of people who run Washington in the modern age—smooth, highly credentialed and unaccountable. They're surrounded by legal and employment protections, they know how to parse a careful response, they know how to blur the essential point of a question in a blizzard of unconnected factoids. They came across as people arrogant enough to target Americans for abuse and harassment and think they'd get away with it. So what did we learn the past week, and what are the essentials to keep in mind?

When the Sheriff seizes property from a Citizen under the non-authority of the IRS agent, the Sheriff has committed a Second Degree Felony, Conversion of Property.

The 29-year-old former NSA contractor and source of the Guardian's NSA files coverage will – with the help of Glenn Greenwald – take your questions today on why he revealed the NSA's top-secret surveillance of US citizens, the international storm that has ensued, and the uncertain future he now faces. Ask him anything.

I did not reveal any US operations against legitimate military targets. I pointed out where the NSA has hacked civilian infrastructure such as universities, hospitals, and private businesses because it is dangerous. These nakedly, aggressively criminal acts are wrong no matter the target. Not only that, when NSA makes a technical mistake during an exploitation operation, critical systems crash. Congress hasn't declared war on the countries - the majority of them are our allies - but without asking for public permission, NSA is running network operations against them that affect millions of innocent people. And for what? So we can have secret access to a computer in a country we're not even fighting? So we can potentially reveal a potential terrorist with the potential to kill fewer Americans than our own Police? No, the public needs to know the kinds of things a government does in its name, or the "consent of the governed" is meaningless.

I was debriefed by Glenn and his peers over a number of days, and not all of those conversations were recorded. The statement I made about earnings was that $200,000 was my "career high" salary. I had to take pay cuts in the course of pursuing specific work. Booz was not the most I've been paid.

As someone who has written many books and articles about the agency, I have seldom seen the NSA in such a state. Like a night prowler with a bag of stolen goods suddenly caught in a powerful Klieg light, it now finds itself under the glare of nonstop press coverage, accused of robbing the public of its right to privacy. Despite the standard denials from the agency’s public relations office, the documents outline a massive operation to secretly keep track of everyone’s phone calls on a daily basis – billions upon billions of private records; and another to reroute the pipes going in and out of Google, Apple, Yahoo, and the other Internet giants through Fort Meade – figuratively if not literally. 

But long before Edward Snowden walked out of the NSA with his trove of documents, whistleblowers there had been trying for years to bring attention to the massive turn toward domestic spying that the agency was making.

Without documents to prove their claims, the agency simply dismissed them as falsehoods and much of the mainstream press simply accepted that. “We don’t hold data on U.S. citizens,” Alexander said in a talk at the American Enterprise Institute last summer, by which time he had been serving as the head of the NSA for six years. Director of National Intelligence James Clapper made similar claims. At a hearing of the Senate Intelligence Committee last March, he was asked, “Does the NSA collect any type of data at all on millions or hundreds of millions of Americans?” To which Clapper responded, “No, sir.” The documents released by Snowden, pointing to the nationwide collection of telephone data records and not denied by government officials, prove the responses untrue.

The revelation of Prism this month by the Washington Post and Guardian newspapers has touched off the latest round in a decade-long debate over what limits to impose on government eavesdropping, which the Obama administration says is essential to keep the nation safe. But interviews with more than a dozen current and former government and technology officials and outside experts show that, while Prism has attracted the recent attention, the program actually is a relatively small part of a much more expansive and intrusive eavesdropping effort. Americans who disapprove of the government reading their emails have more to worry about from a different and larger NSA effort that snatches data as it passes through the fiber optic cables that make up the Internet's backbone. That program, which has been known for years, copies Internet traffic as it enters and leaves the United States, then routes it to the NSA for analysis.

Whether by clever choice or coincidence, Prism appears to do what its name suggests. Like a triangular piece of glass, Prism takes large beams of data and helps the government find discrete, manageable strands of information. The fact that it is productive is not surprising; documents show it is one of the major sources for what ends up in the president's daily briefing. Prism makes sense of the cacophony of the Internet's raw feed. It provides the government with names, addresses, conversation histories and entire archives of email inboxes.

The NSA is prohibited from spying on Americans or anyone inside the United States. That's the FBI's job and it requires a warrant. Despite that prohibition, shortly after the Sept. 11 terrorist attacks, President George W. Bush secretly authorized the NSA to plug into the fiber optic cables that enter and leave the United States, knowing it would give the government unprecedented, warrantless access to Americans' private conversations. Tapping into those cables allows the NSA access to monitor emails, telephone calls, video chats, websites, bank transactions and more. It takes powerful computers to decrypt, store and analyze all this information, but the information is all there, zipping by at the speed of light. "You have to assume everything is being collected," said Bruce Schneier, who has been studying and writing about cryptography and computer security for two decades. The New York Times disclosed the existence of this effort in 2005. In 2006, former AT&T technician Mark Klein revealed that the company had allowed the NSA to install a computer at its San Francisco switching center, a key hub for fiber optic cables.

In 2006, an AT&T technician named Mark Klein discovered a secret room inside the company’s windowless “Folsom Street Facility” in downtown San Francisco that was bristling with Narus machines. The now notorious Room 641A was controlled by the NSA, which was using it to collect AT&T customer data for data mining and real-time analysis. Thanks to the powerful NarusInsight system, the NSA was able to monitor 108 billion emails from AT&T customers per day.

Following a lawsuit filed against AT&T by the Electronic Freedom Foundation, Congress passed the FISA Amendments Act in July 2008, giving retroactive immunity to telecom corporations that assisted the NSA, and relieving them of any consequences for spying on Americans. Cass Sunstein, an informal advisor to Barack Obama’s 2008 presidential campaign who now heads the Office of Information and Regulatory Affairs, and who has urged federal law enforcement to “cognitively infiltrate” anti-government groups, was an outspoken supporter of the retroactive immunity bill. With Sunstein by his side, Obama reversed his initial objections to the NSA’s domestic spying operations, voting as a Senator for retroactive immunity. The vote allowed the NSA to expand its domestic spying operations, clearing the legal hurdles obstructing the creation of PRISM. The stage was set for the second term scandal that would leave Obama reeling.

Binney told me that throughout the United States there are currently as many as 20 NSA black sites like Room 641A. Narus devices, he said, have been placed at fiber-optic convergence points, allowing the NSA to retrieve about 80 percent of data carried through telecom and online service providers. Binney emphasized that the devices do not only retrieve so-called metadata, which only offers general records of data, but that they gather the actual content of emails and calls. (“We can reconstruct all of their e-mails along with attachments, see what web pages they clicked on; we can reconstruct their (Voice Over Internet) calls,” said Steve Bannerman, the marketing director of Narus). Thanks to PRISM, the NSA bas been able to “fill in the gaps,” Binney explained, gathering bulk data from communications the NSA might have missed with the NarusInsight system, especially those made between Americans and foreign countries.