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The International Monetary Fund has assailed US government spending cuts as "excessively rapid and ill-designed" as it cut the economy's growth forecast for 2014. Warning that the country still faces downside risks to its recovery, the IMF cheered the Federal Reserve's stimulus efforts and urged Congress to help firm up growth by repealing the severe "sequester" budget cuts. In its annual report on the US economy, the IMF said growth would be only 1.9 percent this year, due to the sequester's impact, when it had the potential of growing as much as 1.75 percentage points faster.

It suggested fundamental tax reforms as part of actions to confront the longer term fiscal shortfall, including eliminating many exemptions and loopholes, and introducing a value-added tax and a carbon tax. It credited the Federal Reserve's aggressive quantitative easing - its $85 billion-a-month bond purchases, to hold down interest rates - with keeping the economy on a sure footing as the government slashes spending.

And in the years since the September 11 attacks, the security market is booming. The government spends nearly six times what it did in 2001 in the fight against terrorism, fueling a growing security apparatus that has added thousands of private contractors to its payrolls, with new levels of funding for both legacy security firms and new-fangled start-ups. Homeland security funding totaled more than half a trillion dollars over the past decade, providing new jobs for those with specialized skills.

American adults scored below the international average on a global test in math, reading and problem-solving using technology — all skills considered critical for global competitiveness and economic strength. Adults in Japan, Canada, Australia, Finland and multiple other countries scored significantly higher than the United States in all three areas on the test, according to results released Tuesday by the Organization for Economic Cooperation and Development

JPMorgan Chase & Co has reached a tentative $13 billion agreement with the U.S. Justice Department to settle government agency investigations into bad mortgage loans the bank sold to investors before the financial crisis, a source said on Saturday. The tentative deal does not release the bank from criminal liability for some of the mortgages it packaged into bonds and sold to investors, a factor that had been a major sticking point in the discussions, the source said. As part of the deal, the bank will continue to cooperate in criminal inquiries into certain individuals involved in the conduct at issue, the source, who declined to be identified.

Setting in motion one of the most wide-ranging government efforts to roll back the legacy of harsh anti-crime laws dating to the drug wars of the 1980s, the Justice Department on Wednesday announced an initiative to extend presidential clemency to potentially thousands of federal prisoners who would receive more lenient rulings if they were sentenced and convicted today. 

Cole said the department would, in its effort to retrofit penalties, prioritize inmates who are nonviolent, low-level drug offenders without significant ties to large-scale criminal organizations. Such offenders must also have served at least 10 years of their prison sentences, not have a significant history of crime or violence and have demonstrated good conduct in prison. Though Cole declined to say how many prisoners that might encompass, The Associated Press, citing a person familiar with the matter, reported on Wednesday that the Justice Department had identified about 23,000 people who had served sentences of at least 10 years. While Cole said the most obvious candidates would be those inmates sentenced prior to the Fair Sentencing Act of 2010, which narrowed the disparity between sentences for crack and powder cocaine offenders, he said the initiative was not limited to them.

Eric Holder was U.S. attorney general at a time when the world desperately needed the nation’s chief law enforcement officer to hold accountable the elite bankers who oversaw the epidemic of fraud that drove the 2008 global financial crisis and triggered the Great Recession. After nearly six years in office, Holder announced on Sept. 25 that he plans to step down, without having brought to justice even one of the executives responsible for the crisis. His tenure represents the worst strategic failure against elite white-collar crime in the history of the Department of Justice (DOJ).  In both the U.S. savings and loan debacle of the late 1980s and the Enron-era accounting frauds of the early 2000s, there were more than 1,000 successful felony convictions in cases designated as major by the DOJ. In both those fraud epidemics, federal prosecutors prioritized the top executives of the corporations responsible. This context makes Holder’s failure to prosecute — much less convict — the elite bank frauds that caused this far larger crisis all the more damning.

In addition to the failure to prosecute the leaders of those massive frauds, Holder’s dismal record includes 1) failing to prosecute the elite bankers who led the largest (by several orders of magnitude) price-rigging cartel in history — the LIBOR scandal, in which the world’s largest banks conspired to rig the reported interest rates at which the banks were willing to lend to one another, which affected prices on over $300 trillion in transactions; 2) failing to prosecute the massive foreclosure frauds (robo-signing), in which bank employees perjured themselves by signing more than 100,000 false affidavits in order to deceive the authorities that they had a right to foreclose on homes; 3) failing to prosecute the bid-rigging cartels of bond issuances in order to raise the costs to U.S. cities, counties and states of borrowing money in order to increase banks’ illegal profits; 4) failing to prosecute money laundering by HSBC for the murderous Sinaloa and Norte del Valle drug cartels; 5)  failing to prosecute the senior bank officers of Standard Chartered who helped fund of terrorists and nations that support terrorism; and 6) failing to prosecute the controlling officers of Credit Suisse who for decades helped wealthy Americans unlawfully evade U.S. taxes and then obstructed investigations by the DOJ and Internal Revenue Service for many years.  

the CEOs knew that they could trade off a slightly larger fine in return for complete immunity for themselves and other officers who might otherwise be flipped by federal prosecutors to testify against more senior officers. The fines, of course, would be paid not by the CEOs but by the banks they ran. Indeed, one of the lesser-known aspects of the crisis is that the DOJ almost never sued a banker (as opposed to a bank) and virtually never sought to claw back bankers’ fraud proceeds. It is telling that, as even Holder admitted last week, “A corporation may enter a guilty plea and still see its stock price rise the next day.”

How a former CIA officer’s efforts to get Congress to investigate the rendition and torture of a CIA captive failed

The United States was slammed over its rights record Monday at the United Nations’ Human Rights Council, with member nations criticizing the country for police violence and racial discrimination, the Guantánamo Bay Detention Facility and the continued use of the death penalty. 

Noam Chomsky: ‘What exactly is the threat of Iran?’ July 22, 2015 US foreign policy critic Noam Chomsky discusses with Antonio Mora why there was no need for a nuclear deal with Tehran

Bernie Sanders is gaining momentum in the states that will set the early tone for the 2016 presidential election. A new poll shows Vermont’s independent senator with the support of 30 percent of likely Iowa caucus participants, up 25 points since January, while support for Hillary Clinton, the presumptive frontrunner for the Democratic nomination, has dropped by a third since its high point in May. Clinton is now the first choice of 37 percent, according to the latest Des Moines Register/Bloomberg Politics Iowa Poll. Sanders’ Iowa surge comes on the heels of two consecutive polls in New Hampshire that show him with a seven-point lead over Clinton. The Iowa caucuses kick off the United States’ 2016 election season Feb. 1; New Hampshire holds the nation’s first primary on Feb. 9. For Clinton, the former Secretary of State, the latest survey marks the first time her support in polls has dropped below 50 percent and has campaign watchers recalling Clinton’s Iowa loss in 2008. Clinton, then a U.S. Senator from New York, entered the primaries as the strong favorite, only to place third in the Iowa caucus and eventually lose the nomination to Barack Obama.

The survey results also offer some insights into the reasons for Sanders’ appeal; those polled said they are actively drawn to Sanders and are not simply part of a backlash against Clinton. When asked why they back the Vermont senator, 96 percent said their support was mostly founded in an affinity with the candidate and his ideas. Only 2 percent said their choice of Sanders was primarily based on a dislike for Clinton. Sanders also enjoys more intense support than his main rival, the poll showed. It found that 39 percent of likely caucus goers felt very favorably about Sanders; for Clinton, only 27 percent held a very favorable opinion. The proportion of people who viewed Clinton negatively, 19 percent, was more than double that of Sanders, but researchers noted that Clinton’s negatives are far better than they were in the fall of 2007, when 30 percent of likely caucus participants held a poor impression of her.

A US Navy official has pleaded guilty to conspiracy and bribery charges, admitting he received envelopes of cash and the services of prostitutes from a Singapore-based company at the center of a multimillion-dollar fraud investigation. John Beliveau II, a supervisor in the Naval Criminal Investigative Service (NCIS), entered his plea at a hearing in federal court in San Diego, California on Tuesday. The bribery scandal has ensnared six US Navy officials so far and could lead to an expansion of the investigation if Beliveau cooperates with authorities as part of his plea agreement.

Beliveau became the first to be convicted in the bribery probe involving US Navy contracts worth hundreds of millions of dollars in maintenance and restocking for Pacific Fleet ships. Beliveau, who was arrested in September, was accused of accepting money, travel and hotel costs for trips to Thailand and Indonesia from a Malaysian contractor, where he was also provided with prostitutes, according to charging documents.

According to the plea, Beliveau gave Francis detailed advice on how to thwart a years-long NCIS investigation against him, leaking the names of witnesses and sharing hundreds of pages of confidential NCIS files with him. In exchange, he received travel and dinners worth thousands of dollars, at least five envelopes of cash, and the services of prostitutes, the document said.

The economy is improving — or so headlines tell us almost every day. But is that true? The answer to that question depends on the time frame used for comparison, whether inflation is taken into account and how you measure improvement. News reports tend to focus on the short term — on yesterday, on last year compared with the year before. But look back farther in time and an overwhelming case can be made that the vast majority of Americans are worse off. Indeed, coming out of the Great Depression eight decades ago, the vast majority fared vastly better than most people have coming out of the Great Recession, which officially ended on June 30 six years ago. It may be jarring to hear that the vast majority of Americans, the 90 percent, enjoyed bigger income gains in the 1930s than in recent years, but that is what the data show. The data also indicate tandem increases in both want and wealth, with the vast majority worse off in 2013 than in 2009, while those at the apex of the economy are enjoying a much larger — and growing — share of national income.

Canada has suspended visa applications for residents and nationals of countries with "widespread transmission" of the Ebola virus, becoming the second nation after Australia to introduce such a measure.  The countries most severely hit by the worst Ebola outbreak ever are Liberia, Sierra Leone and Guinea. Canada has not yet had a case of the disease. 

The first data on 2013 incomes show continuing bad news for Americans, my analysis of a new Internal Revenue Service report shows. Average income fell 2.6 percent in 2013, even though the economy grew 3.2 percent in real terms over 2012. Average inflation-adjusted income in 2013 was 8 percent lower than in 2007, the last peak economic year, and 6.9 percent less than in 2000, the year President George W. Bush set as the standard to evaluate the effect of his tax cuts and regulatory policies. This is the latest sign of a disturbing trend. An ever-shrinking share of national income flows to individuals while corporate profits expand. 

The United States was singled out Monday by a United Nations expert on torture for being the only country in the world that continues to sentence children to life in prison without parole. “The vast majority of states have taken note of the international human rights requirements regarding life imprisonment of children without the possibility of release,” Juan Méndez, the United Nations special rapporteur on torture and other cruel, inhumane or degrading treatment or punishment, said in his report, before noting that the United States is the only country to continue the practice. A sentence of life without parole means life and death in prison — a practice considered cruel and inhumane punishment for juveniles under both international and U.S. law.

Issuing life sentences for children is banned under numerous international laws, including the International Covenant on Civil and Political Rights, the Convention Against Torture and the U.N. Convention on the Rights of the Child — which the U.S. and South Sudan are the only two states to have signed but not ratified. Also, a U.N. oversight body has found that the sentence violates the Convention on the Elimination of All Forms of Racial Discrimination, since youths of color are more likely to receive the sentence than white offenders.

Israel’s leaders vowed last week that Operation Protective Edge would deal Hamas a lethal blow. Instead, it has achieved the opposite effect. The continued pounding of Gaza by Israeli warplanes looking to cripple Hamas's ability to launch rockets against Israeli population centers — which has also destroyed large segments of Gaza’s fragile civilian infrastructure and claimed close to 200 lives — has breathed new life into the Islamist movement by restoring its preferred role at the forefront of Palestinian resistance to Israel. In doing so, however, Israel may simply have entrenched the status quo for the long term.  Hamas made clear in statements at the outset of the current exchange of fire that while it was ready to escalate if Israel did, it preferred to avoid a renewed military confrontation with Israel at the present momen

But far from removing the totality of Hamas’s rocket-launching capability, Operation Protective Edge has renewed Hamas’ claim to be the premier group resisting Israel. (The Palestinian Authority security forces had been widely derided in the West Bank for standing by — and even suppressing protests — during Israel’s recent crackdown there that killed at least five Palestinians.) Whatever else it has achieved, Israel’s offensive appears to have blocked the creation of a Palestinian unity government that would restore the PA in Gaza. Instead, it has restored the familiar division of the Palestinian Authority polity between Hamas control in Gaza and Fatah control of the West Bank.

Eight months after Saudi Arabia and its Gulf allies began an aerial campaign against the Houthi rebels, the civilian death toll continues to mount. More than 5,600 people, including 2,615 civilians and 500 children, have been killed since March. The vast majority of civilian deaths are attributable to coalition airstrikes.  Human rights groups have warned about war crimes and the continued humanitarian calamity in Yemen. “Yemen in five months is like Syria after five years,” Peter Maurer, president of the International Committee of the Red Cross, said in August. “The humanitarian situation is nothing short of catastrophic. Every family in Yemen has been affected by this conflict.” Complicit in the growing humanitarian disaster is the United States and its unchecked arms sales to Saudi Arabia and other Gulf allies. The Barack Obama administration agreed to transfer more than $64 billion in weapons and services to members of the Gulf Cooperation Council (GCC) during its first five years. On Oct. 20, the U.S. government approved an $11.25 billion deal to sell warships to Saudi Arabia, ignoring calls from human rights activists to refrain from selling certain military equipment in light of the civilian toll it is inflicting. In continuing to provide weapons, intelligence and logistical support to Riyadh, including precision rockets and internationally banned cluster munitions, the U.S. is contributing to Yemen’s suffering.

Take the Sept. 28 coalition airstrike that hit a wedding party, killing dozens and wounding many more. Among the dead were women and children. The White House expressed concern about the incident, but its words ring hollow, given that the U.S supplied the planes used in the attack. In a report on Oct. 6, London-based advocacy group Amnesty International investigated 13 coalition airstrikes from May to July that killed an estimated 100 people, including 59 children. The group found that some of the strikes hit civilian objects such as “homes, public buildings, schools, markets, shops, factories, bridges, roads and other civilian infrastructure,” as well as civilians fleeing in vehicles and those delivering humanitarian assistance. Amnesty said the strikes violate international law and found “damning evidence of war crimes,” which warrant an international investigation and the suspension of certain arms transfers. A United Nations panel has accused all sides of human rights abuses, but singled out coalition forces for committing “grave violations.” But international condemnation has done little to ease the devastation wrought by the strikes.

While Puerto Rican leaders look for ways to address the island’s $72 billion debt, some say the solution may be simple: Don’t pay it. A small group of Puerto Rican lawmakers is pushing the idea that significant portions of Puerto Rico’s debt may in fact be unconstitutional. Manuel Natal, one of the legislators behind the effort, claims that up to 75 percent of what the island owes could be voided in court. “If debt was issued in violation of the constitution that debt is illegal and subsequently should not be paid,” said Natal. “It should be put aside, because in legal terms, it’s like it never happened.” This strategy, called “debt nullification,” has been used elsewhere in the U.S. to address fiscal crises. But in Puerto Rico's case, it all but promises a legal showdown with Wall Street hedge funds that own a significant portion of the island’s debt — investors that the government is now trying to bargain with. While Puerto Rico Governor Alejandro García Padilla has acknowledged that debt found to be unconstitutional should not be repaid, his administration has tried nearly every other option so far.

After the White House quickly dismissed talk of a federal bailout, Puerto Rico’s government, and its congressional representative Luis Pierlusi, have pushed a bill to allow the U.S. territory access to bankruptcy proceedings. That bill has stalled in the Congress. Meanwhile, talks with a group of hedge funds were suspended. The gridlock over Puerto Rico’s fiscal crisis has led many to wish the debt would simply disappear. Now, that might actually be possible.

The Senate report on CIA torture is still being suppressed. But details are leaking out, according to a report by Jason Leopold. Citing Intelligence Committee staffers, he writes that "at least one high-value detainee was subjected to torture techniques that went beyond those authorized by George W. Bush's Justice Department." In addition, "harsh measures authorized by the Department of Justice had been applied to at least one detainee before such legal authorization was received."  The notion that Bush-era interrogations were lawful has always been highly dubious. This latest news plucks away even the fig leaf afforded by Bush Administration attorneys. Some say it would be unfair to prosecute anyone told that a tactic was permitted.  Will they call for a criminal investigation of these incidents? The CIA seems to agree that these details are important. It is seeking new assurances that the report won't lead to criminal investigations, according to Leopold's sources:

When Panetta briefed CIA employees on March 16, 2009, about the Senate Intelligence Committee’s review, he said Feinstein and her Republican counterpart, Kit Bond of Missouri, had “assured” him “that their goal is to draw lessons for future policy decisions, not to punish those who followed guidance from the Department of Justice.” But now that some of the report’s conclusions suggest that some of the techniques used on Abu Zubaydah and other captives either went beyond what was authorized by the Justice Department or were applied before they had been authorized, the congressional staffers and U.S. officials who spoke to Al Jazeera said CIA officials are seeking further assurances against any criminal investigation. Thus far, no such assurances have been given, according to Al Jazeera’s sources, nor is there any indication that the Senate Intelligence Committee’s report would prompt a criminal investigation. Any agreement to refrain from investigating torture as a criminal offense would itself violate the law. The UN Convention Against Torture, signed by Ronald Reagan and later ratified by the U.S. Senate, compels signatories to investigate torture and "submit the case to its competent authorities for the purpose of prosecution." Perhaps the U.S. will one day adhere to the law.