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Paul Merrell

Brazil Looks to Break from U.S.-Centric Internet | TIME.com - 0 views

  • Brazil plans to divorce itself from the U.S.-centric Internet over Washington’s widespread online spying, a move that many experts fear will be a potentially dangerous first step toward fracturing a global network built with minimal interference by governments. President Dilma Rousseff ordered a series of measures aimed at greater Brazilian online independence and security following revelations that the U.S. National Security Agency intercepted her communications, hacked into the state-owned Petrobras oil company’s network and spied on Brazilians who entrusted their personal data to U.S. tech companies such as Facebook and Google. The leader is so angered by the espionage that on Tuesday she postponed next month’s scheduled trip to Washington, where she was to be honored with a state dinner. Internet security and policy experts say the Brazilian government’s reaction to information leaked by former NSA contractor Edward Snowden is understandable, but warn it could set the Internet on a course of Balkanization.
  • “The global backlash is only beginning and will get far more severe in coming months,” said Sascha Meinrath, director of the Open Technology Institute at the Washington-based New America Foundation think tank. “This notion of national privacy sovereignty is going to be an increasingly salient issue around the globe.” While Brazil isn’t proposing to bar its citizens from U.S.-based Web services, it wants their data to be stored locally as the nation assumes greater control over Brazilians’ Internet use to protect them from NSA snooping. The danger of mandating that kind of geographic isolation, Meinrath said, is that it could render inoperable popular software applications and services and endanger the Internet’s open, interconnected structure.
  • The effort by Latin America’s biggest economy to digitally isolate itself from U.S. spying not only could be costly and difficult, it could encourage repressive governments to seek greater technical control over the Internet to crush free expression at home, experts say. In December, countries advocating greater “cyber-sovereignty” pushed for such control at an International Telecommunications Union meeting in Dubai, with Western democracies led by the United States and the European Union in opposition.
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  • Rousseff says she intends to push for international rules on privacy and security in hardware and software during the U.N. General Assembly meeting later this month. Among Snowden revelations: the NSA has created backdoors in software and Web-based services. Brazil is now pushing more aggressively than any other nation to end U.S. commercial hegemony on the Internet. More than 80 percent of online search, for example, is controlled by U.S.-based companies. Most of Brazil’s global Internet traffic passes through the United States, so Rousseff’s government plans to lay underwater fiber optic cable directly to Europe and also link to all South American nations to create what it hopes will be a network free of U.S. eavesdropping.
  • More communications integrity protection is expected when Telebras, the state-run telecom company, works with partners to oversee the launch in 2016 of Brazil’s first communications satellite, for military and public Internet traffic. Brazil’s military currently relies on a satellite run by Embratel, which Mexican billionaire Carlos Slim controls. Rousseff is urging Brazil’s Congress to compel Facebook, Google and all companies to store data generated by Brazilians on servers physically located inside Brazil in order to shield it from the NSA. If that happens, and other nations follow suit, Silicon Valley’s bottom line could be hit by lost business and higher operating costs: Brazilians rank No. 3 on Facebook and No. 2 on Twitter and YouTube. An August study by a respected U.S. technology policy nonprofit estimated the fallout from the NSA spying scandal could cost the U.S. cloud computing industry, which stores data remotely to give users easy access from any device, as much as $35 billion by 2016 in lost business.
  • Brazil also plans to build more Internet exchange points, places where vast amounts of data are relayed, in order to route Brazilians’ traffic away from potential interception. And its postal service plans by next year to create an encrypted email service that could serve as an alternative to Gmail and Yahoo!, which according to Snowden-leaked documents are among U.S. tech giants that have collaborated closely with the NSA. “Brazil intends to increase its independent Internet connections with other countries,” Rousseff’s office said in an emailed response to questions from The Associated Press on its plans. It cited a “common understanding” between Brazil and the European Union on data privacy, and said “negotiations are underway in South America for the deployment of land connections between all nations.” It said Brazil plans to boost investment in home-grown technology and buy only software and hardware that meet government data privacy specifications.
  • While the plans’ technical details are pending, experts say they will be costly for Brazil and ultimately can be circumvented. Just as people in China and Iran defeat government censors with tools such as “proxy servers,” so could Brazilians bypass their government’s controls. International spies, not just from the United States, also will adjust, experts said. Laying cable to Europe won’t make Brazil safer, they say. The NSA has reportedly tapped into undersea telecoms cables for decades. Meinrath and others argue that what’s needed instead are strong international laws that hold nations accountable for guaranteeing online privacy.
  • “There’s nothing viable that Brazil can really do to protect its citizenry without changing what the U.S. is doing,” he said. Matthew Green, a Johns Hopkins computer security expert, said Brazil won’t protect itself from intrusion by isolating itself digitally. It will also be discouraging technological innovation, he said, by encouraging the entire nation to use a state-sponsored encrypted email service. “It’s sort of like a Soviet socialism of computing,” he said, adding that the U.S. “free-for-all model works better.”
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    So both Brazil and the European Union are planning to boycott the U.S.-based cloud industry, seizing on the NSA's activities as legal grounds. Under the various GATT series of trade agreements, otherwise forbidden discriminatory actions taken that restrict trade in aid of national security are exempt from redress through the World Trade Organization Dispute Resolution Process. So the NSA voyeurs can add legalizing economic digital discrimination against the U.S. to its score card.
Paul Merrell

New email shows DNC boss giving Clinton camp debate question in advance | Fox News - 0 views

  • Another leaked email has emerged showing Democratic National Committee boss and former CNN contributor Donna Brazile sharing a debate question in advance with the Hillary Clinton campaign -- despite Brazile's persistent claims to the contrary. CNN announced in a statement soon after the email became public Monday that Brazile had tendered her resignation and the network accepted it on Oct. 14, days after the controversy over Brazile tipping off the Clinton campaign initially broke. According to documents released Monday by WikiLeaks, Brazile sent Clinton Communications Director Jennifer Palmieri an email titled, “One of the questions directed to HRC tomorrow is from a woman with a rash,” the night before the March 6 CNN primary debate in Flint, Mich.  “Her family has lead poison and she will ask what, if anything, will Hillary do as president to help the ppl of Flint,” Brazile wrote.
  • The following night, Lee-Anne Walters, a mom whose twin boys stopped growing and whose daughter lost her hair during the Flint water contamination crisis, posed a question to both Clinton, the eventual Democratic presidential nominee, and her primary opponent Vermont Sen. Bernie Sanders. 
  • After my family, the city of Flint and the children in D.C. were poisoned by lead, will you make a personal promise to me right now that, as president, in your first 100 days in office, you will make it a requirement that all public water systems must remove all lead service lines throughout the entire United States, and notification made to the — the citizens that have said service lines?” Walters asked. Clinton responded with a lengthy answer that moderator Anderson Cooper had to twice interrupt in an attempt to keep to the agreed-upon time limit. Clinton’s remarks drew applause from the crowd, though she wound up ultimately losing the state’s primary to Sanders two days later.  The apparent email tip-off was included in the latest trove of messages hacked from Clinton Campaign Chairman John Podesta’s Gmail account and posted by WikiLeaks. Brazile had been under fire over an earlier email chain appearing to show her tipping off the campaign before a town hall event later that same month. That exchange began with Brazile sending Palmieri the text of a question about the death penalty in an email with the subject line: “From time to time I get the questions in advance.” After Palmieri responded, Brazile wrote back: “I’ll send a few more.” Roland Martin asked the death penalty question verbatim the next night during a CNN town hall.  Brazile's role as a CNN contributor was suspended when she took over as interim DNC head in July, but on Oct. 14, in light of the email revelations, CNN said it accepted her full resignation.
Paul Merrell

Brazil protesters flood Sao Paulo streets for 2nd night - CBS News - 0 views

  • Tens of thousands of Brazilians again flooded the streets of the country's biggest city to raise a collective cry against a longstanding lament — people are weighed down by high taxes and high prices but get low-quality public services and a system of government infected with corruption. That was the repeated message Tuesday night in Sao Paulo, where upward of 50,000 people massed in front of the city's main cathedral. While mostly peaceful, the demonstration followed the rhythm of protests that drew 240,000 people across Brazil the previous night, with small bands of radicals splitting off to fight with police and break into stores.
  • Mass protests have been mushrooming across Brazil since demonstrations called last week by a group angry over the high cost of a woeful public transport system and a recent 10-cent hike in bus and subway fares in Sao Paulo, Rio and elsewhere
  • The local governments in at least four cities have now agreed to reverse those hikes, and city and federal politicians have shown signs that the Sao Paulo fare could also be rolled back. It's not clear that will calm the country, though, because the protests have released a seething litany of discontent from Brazilians over life's struggles.
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  • The protests have brought troubling questions about security in the country, which is playing host this week to soccer's Confederations Cup and will welcome Pope Francis in July for a visit to Rio de Janeiro and rural Sao Paulo.
  • Brazilian demonstrations in recent years generally had tended to attract small numbers of politicized participants, but the latest mobilizations have united huge crowds around a central complaint: The government provides woeful public services even as the economy is modernizing and growing. The Brazilian Tax Planning Institute think tank found that the country's tax burden in 2011 stood at 36 percent of gross domestic product, ranking it 12th among the 30 countries with the world's highest tax burdens. Yet public services such as schools are in sorry shape. The Organization for Economic Co-operation and Development found in a 2009 educational survey that literacy and math skills of Brazilian 15-year-olds ranked 53rd out of 65 countries, behind nations such as Bulgaria, Mexico, Turkey, Trinidad and Tobago, and Romania. Many protesting in Brazil's streets hail from the country's growing middle class, which government figures show has ballooned by some 40 million over the past decade amid a commodities-driven economic boom. They say they've lost patience with endemic problems such as government corruption and inefficiency. They're also slamming Brazil's government for spending billions of dollars to host next year's World Cup soccer tournament and the 2016 Olympics while leaving other needs unmet.
  • A November report from the government raised to $13.3 billion the projected cost of stadiums, airport renovations and other projects for the World Cup. City, state and other local governments are spending more than $12 billion on projects for the Olympics in Rio. Nearly $500 million was spent to renovate Maracana stadium in Rio for the World Cup even though the venue already went through a significant face-lift before the 2007 Pan American Games.
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    Much more detail about the Brazil situation in this Associated Press report. 
Paul Merrell

New Political Earthquake in Brazil: Is It Now Time for Media Outlets to Call This a "Co... - 0 views

  • Brazil today awoke to stunning news of secret, genuinely shocking conversations involving a key minister in Brazil’s newly installed government, which shine a bright light on the actual motives and participants driving the impeachment of the country’s democratically elected president, Dilma Rousseff. The transcripts were published by the country’s largest newspaper, Folha de São Paulo, and reveal secret conversations that took place in March, just weeks before the impeachment vote in the lower house was held. They show explicit plotting between the new planning minister (then-senator), Romero Jucá, and former oil executive Sergio Machado — both of whom are formal targets of the “Car Wash” corruption investigation — as they agree that removing Dilma is the only means for ending the corruption investigation. The conversations also include discussions of the important role played in Dilma’s removal by the most powerful national institutions, including — most importantly — Brazil’s military leaders. The transcripts are filled with profoundly incriminating statements about the real goals of impeachment and who was behind it. The crux of this plot is what Jucá calls “a national pact” — involving all of Brazil’s most powerful institutions — to leave Michel Temer in place as president (notwithstanding his multiple corruption scandals) and to kill the corruption investigation once Dilma is removed. In the words of Folha, Jucá made clear that impeachment will “end the pressure from the media and other sectors to continue the Car Wash investigation.” Jucá is the leader of Temer’s PMDB party and one of the “interim president’s” three closest confidants.
  • It is unclear who is responsible for recording and leaking the 75-minute conversation, but Folha reports that the files are currently in the hand of the prosecutor general. The next few hours and days will likely see new revelations that will shed additional light on the implications and meaning of these transcripts. The transcripts contain two extraordinary revelations that should lead all media outlets to seriously consider whether they should call what took place in Brazil a “coup”: a term Dilma and her supporters have used for months. When discussing the plot to remove Dilma as a means of ending the Car Wash investigation, Jucá said the Brazilian military is supporting the plot: “I am talking to the generals, the military commanders. They are fine with this, they said they will guarantee it.” He also said the military is “monitoring the Landless Workers Movement” (Movimento dos Trabalhadores Rurais Sem Terra, or MST), the social movement of rural workers that supports PT’s efforts of land reform and inequality reduction and has led the protests against impeachment.
  • The second blockbuster revelation — perhaps even more significant — is Jucá’s statement that he spoke with and secured the involvement of numerous justices on Brazil’s Supreme Court, the institution that impeachment defenders have repeatedly pointed to as vesting the process with legitimacy in order to deny that Dilma’s removal is a coup. Jucá claimed that “there are only a small number” of Court justices to whom he had not obtained access (the only justice he said he ultimately could not get to is Teori Zavascki, who was appointed by Dilma and who — notably — Jucá viewed as incorruptible in obtaining his help to kill the investigation (a central irony of impeachment is that Dilma has protected the Car Wash investigation from interference by those who want to impeach her)). The transcripts also show him saying that “the press wants to take her [Dilma] out,” so “this shit will never stop” — meaning the corruption investigations — until she’s gone. The transcripts provide proof for virtually every suspicion and accusation impeachment opponents have long expressed about those plotting to remove Dilma from office. For months, supporters of Brazil’s democracy have made two arguments about the attempt to remove the country’s democratically elected president: (1) the core purpose of Dilma’s impeachment is not to stop corruption or punish lawbreaking, but rather the exact opposite: to protect the actual thieves by empowering them with Dilma’s exit, thus enabling them to kill the Car Wash investigation; and (2) the impeachment advocates (led by the country’s oligarchical media) have zero interest in clean government, but only in seizing power that they could never obtain democratically, in order to impose a right-wing, oligarch-serving agenda that the Brazilian population would never accept.
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    Gutsy. Glenn Greenwald and his partner live in Brazil. 
Paul Merrell

Brazilian president Rousseff: US surveillance a 'breach of international law' | World n... - 0 views

  • Brazil's president, Dilma Rousseff, has launched a blistering attack on US espionage at the UN general assembly, accusing the NSA of violating international law by its indiscriminate collection of personal information of Brazilian citizens and economic espionage targeted on the country's strategic industries.Rousseff's angry speech was a direct challenge to President Barack Obama, who was waiting in the wings to deliver his own address to the UN general assembly, and represented the most serious diplomatic fallout to date from the revelations by former NSA contractor Edward Snowden.
  • Washington's efforts to smooth over Brazilian outrage over NSA espionage have so far been rebuffed by Rousseff, who has proposed that Brazil build its own internet infrastructure."Friendly governments and societies that seek to build a true strategic partnership, as in our case, cannot allow recurring illegal actions to take place as if they were normal. They are unacceptable," she said."The arguments that the illegal interception of information and data aims at protecting nations against terrorism cannot be sustained. Brazil, Mr President, knows how to protect itself. We reject, fight and do not harbour terrorist groups," Rousseff said."As many other Latin Americans, I fought against authoritarianism and censorship and I cannot but defend, in an uncompromising fashion, the right to privacy of individuals and the sovereignty of my country," the Brazilian president said. She was imprisoned and tortured for her role in a guerilla movement opposed to Brazil's military dictatorship in the 1970s."In the absence of the right to privacy, there can be no true freedom of expression and opinion, and therefore no effective democracy. In the absence of the respect for sovereignty, there is no basis for the relationship among nations."
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    We should never lose sight of the fact that every time the NSA intercepts a message from a foreign nation, it violates the civil and criminal laws of that nation. The NSA and its staff are serial criminals, not patriots. The Balkanization of the Internet into a non-net of local area networks to protect nations' citizen rights from NSA voyeurs is all too predictable. This will be their legacy unless we can stop them.
Paul Merrell

Brazil: The Provisional Banana Scoundrel Republic - 0 views

  • Every political junkie on the planet has to be glued to the ongoing Brazilian House of Cards, consistently offering an unparalleled feast of cheap thrills.The latest cliffhanger was the leak of a conversation between one of the key operators involved in the oil giant Petrobras corruption scandal and a senator and short-lived Minister of Planning in the usurper interim government currently replacing President Dilma Rousseff while she is undergoing an impeachment trial by the Senate.  Call the leak a short autopsy of what from the beginning should have been defined as golpeachment; a mix of coup (“golpe”, in Portuguese) and impeachment, which took place in a one/two sequential vote in the Brazilian Congress and Senate, as a notorious congregation of crooks investigated for myriad offenses and crimes seized power in Brasilia in a full-fledged Buffon’s Opera. I call their scam Provisional Banana Scoundrel Republic (PBSR).  
  • The leak/autopsy duly unveiled how the PBSR cancer progressed.  One of the key plotters outlines the coup; stresses how it should protect Brazilian plutocracy/kleptocracy from unintended consequences of the ongoing, two-year-old Car Wash corruption investigation; and how the Left – from President Rousseff to Lula and the Workers’ Party – should be criminalized for good. 
  • The rest would be history, including the demolition of recently acquired social and workers’ rights via the imposition of a neoliberal restoration; total reversion in foreign policy, with geopolitical and geoeconomic relations back to a colonized mindset; and the reestablishment of a conservative, neoliberal, rentier hegemonic class lording over a socially-oriented, democratic society. That fits in with the current Brazilian Congress and Senate dominated by “BBB” interests. “BBB” stands for Beef (the powerful agribusiness lobby); Bullet (the weapons and private security complex); and Bible (evangelical fanatics), all supported by corporate media. Many of these unsavory characters are connected and/or represent the toxic Brazilian rural aristocracy – which are in fact heirs to nobility titles handed over to slave owners. It was going all so swell after only a few days – even with the former head of the lower house, notorious crook Eduardo Cunha, temporarily sidelined; Cunha – the ringleader of a campaign financing scam inside Congress – de facto had become the Prime Minister of the puppet former Vice-President and current, interim President Michel Temer. 
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  • The key variable from now on is how the PBSR gang will maneuver – possibly illegally — to cling to power. The Public Ministry and the Federal police are totally politicized. Increasingly there are no mediation powers. The PBSR gang will take no prisoners. The Public Ministry will go after Lula while the attorney general will try to block any chance of Rousseff being reinstated. Meanwhile, the social democrats turned neoliberal enforcers – key associates of the PBSR — will keep advancing their own agenda; hardcore privatizations; handing over the exploration of the pre-salt oil deposits to US Big Oil; and dutifully prostrating as Washington vassals. One just needs to examine the extreme interest by the US Department of Justice on all things related to the Car Wash investigation to infer how Washington is deeply involved in smashing leading Brazilian corporations.   
  • Washington has not had the balls to do it directly – relying on minions such as the State Department spokesman and the interim ambassador to the OAS. But the message is unmistakable; golpeachment is legal, and Washington trusts Brazilian “democratic institutions”. Compare it to the Russian Foreign Ministry, which alerted to “foreign interference” in Brazilian affairs. The new Brazilian Foreign Minister – a sore loser (twice) in presidential elections won by the Workers’ Party – took no time to launch his glorious Vassal of Washington/US Big Capital policy. He already issued a veiled “threat” to Cuba, Venezuela, Nicaragua, Bolivia, Ecuador and El Salvador. Mercosur will be sidelined to the benefit of the Pacific Alliance – where Mexico, Peru and Colombia are under Washington’s wings. Unasur will be ditched.
  • And then there’s the stale ice cream in the scoundrel’s tart; the “B” in BRICS is now dormant. This means the role of Brazil in the BRICS bank will be seriously compromised. Granted, the BRICS were never a homogenous group and have been riddled with conflicting interests. For instance, India’s nuclear-sharing agreement with the US effectively ties it up with Washington. The next BRICS summit is in India, in October. Brazil risks the ignominy of being represented by the PBSR gang.  Meanwhile, make no mistake; as much as the Car Wash investigation was revealed to be a totally politicized drive – where fighting corruption was just a convenient cover – the PBSR gang and their allies will do everything to get rid of the 2018 direct presidential elections. So here’s the sorry Brazilian road map up to 2018; total political, economic, social and juridical chaos. 
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    Pepe Escobar, himself a Brazilian expatriate journailist, riffs on the Brazilian coup-gone-sour-by-discllosure-of-plans. If you have a browser extension to do translations, read the article linked from the "U.S. Department of Justice" text. It seems that the U.S. played a part in setting the coup in motion. Surprise, surprise. A very fun read. 
Paul Merrell

Exclusive: How FBI Informant Sabu Helped Anonymous Hack Brazil | Motherboard - 0 views

  • In early 2012, members of the hacking collective Anonymous carried out a series of cyber attacks on government and corporate websites in Brazil. They did so under the direction of a hacker who, unbeknownst to them, was wearing another hat: helping the Federal Bureau of Investigation carry out one of its biggest cybercrime investigations to date. A year after leaked files exposed the National Security Agency's efforts to spy on citizens and companies in Brazil, previously unpublished chat logs obtained by Motherboard reveal that while under the FBI's supervision, Hector Xavier Monsegur, widely known by his online persona, "Sabu," facilitated attacks that affected Brazilian websites. The operation raises questions about how the FBI uses global internet vulnerabilities during cybercrime investigations, how it works with informants, and how it shares information with other police and intelligence agencies. 
  • After his arrest in mid-2011, Monsegur continued to organize cyber attacks while working for the FBI. According to documents and interviews, Monsegur passed targets and exploits to hackers to disrupt government and corporate servers in Brazil and several other countries. Details about his work as a federal informant have been kept mostly secret, aired only in closed-door hearings and in redacted documents that include chat logs between Monsegur and other hackers. The chat logs remain under seal due to a protective order upheld in court, but in April, they and other court documents were obtained by journalists at Motherboard and the Daily Dot. 
Paul Merrell

BRAZIL: TORTURE TECHNIQUES REVEALED IN DECLASSIFIED U.S. DOCUMENTS - 0 views

  • The Brazilian military regime employed a "sophisticated and elaborate psychophysical duress system" to "intimidate and terrify" suspected leftist militants in the early 1970s, according to a State Department report dated in April 1973 and made public last week. Among the torture techniques used during the military era, the report detailed "special effects" rooms at Brazilian military detention centers in which suspects would be "placed nude" on a metal floor "through which electric current is pulsated." Some suspects were "eliminated" but the press was told they died in "shoot outs" while trying to escape police custody. "The shoot-out technique is being used increasingly," the cable sent by the U.S. Consul General in Rio de Janeiro noted, "in order to deal with the public relations aspect of eliminating subversives," and to "obviate 'death-by-torture' charges in the international press."
  • Peter Kornbluh who directs the National Security Archive's Brazil Documentation Project called the document "one of the most detailed reports on torture techniques ever declassified by the U.S. government." Titled "Widespread Arrests and Psychophysical Interrogation of Suspected Subversives," the document was among 43 State Department cables and reports that Vice President Joseph Biden turned over on June 17 to President Dilma Rousseff during his trip to Brazil for the World Cup competition for use by the Brazilian Truth Commission. The Commission is in the final phase of a two-year investigation of human rights atrocities during the military dictatorship which lasted from 1964 to 1985. On July 2, the Commission posted all 43 documents on its website, accompanied by this statement: "The CNV greatly appreciates the initiative of the U.S. government to make these records available to Brazilian society and hopes that this collaboration will continue to progress." The records range in date from 1967 to 1977. They report on a wide range of human rights-related issues, among them: secret torture detention centers in Sao Paulo, the military's counter-subversion operations, attitudes of the Church on human rights violations, and the regime's hostile reaction in 1977 to the first State Department human rights report on abuses. Some of the documents had been previously declassified under routine release procedures; others, including the April 1973 report on psychophysical torture, were reviewed for declassification as recently as June 5, 2014, in preparation for Biden's trip.
  • During his meeting with President Rousseff, Biden announced that the Obama administration would undertake a broader review of still highly classified U.S. records on Brazil, among them CIA and Defense Department documents, to assist the Commission in finalizing its report. "I hope that in taking steps to come to grips with our past we can find a way to focus on the immense promise of the future," he noted. Since the inception of the Truth Commission in May 2012, the National Security Archive has been assisting the Commissioners in obtaining U.S. records for their investigation, and pressing the Obama administration to fulfill its commitment to a new standard of global transparency and the right-to-know by conducting a special, Brazil declassification project on the military era. "Advancing truth, justice and openness is precisely the way these classified U.S. historical records should be used," according to Kornbluh. "Biden's declassified diplomacy will not only assist the Truth Commission in shedding light on the dark past of Brazil's military era, but also create a foundation for a better and more transparent future in U.S.-Brazilian relations." To call attention to the records and the Truth Commission's work, the Archive is highlighting five key documents from Biden's timely donation.
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    Unmentioned in this article is the U.S. role in instigating a wave of takeovers of Latin American nations by military juntas, including funding, training in torture, operation of "death squads" and the execution of tens of thousands of left-leaning Latin Americans. For a quick and grossly understated  overview, see https://en.wikipedia.org/wiki/Operation_Condor
Paul Merrell

Brazil Refuses Israeli Settler as Diplomatic Envoy - International Middle East Media Ce... - 0 views

  • Brazil’s reluctance to accept an Israeli ambassador who is a West Bank colonist has set off a diplomatic crisis and led to concerns in the Israeli government that the clash could encourage pro-Palestinian activism against it.
  • The appointment four months ago of Dani Dayan, a former head of the Jewish colony movement, did not go down well with Brazil’s left-leaning government, which has supported Palestinian statehood in recent years. Most world powers deem the "Jews-only" colonies on Palestinian land as illegal. The regime’s previous ambassador, Reda Mansour, left Brasilia last week and the Israeli government said on Sunday that Brazil risked degrading bilateral relations if Dayan was not allowed to succeed him. “Israel will leave the level of diplomatic relations with Brazil at the secondary level if the appointment of Dani Dayan is not confirmed,” Deputy Foreign Minister Tzipi Hotovely told Israel’s Channel 10 TV, saying Dayan would remain the sole nominee. She said Israel would lobby Brasilia through the Brazilian Jewish community, confidants of President Dilma Rousseff and direct appeals from Prime Minister Benjamin Netanyahu.
  • Brazilian government officials declined to comment on whether Rousseff will accept the nomination of the Argentine-born Dayan. But one senior Foreign Ministry official said: “I do not see that happening.”
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  • The official, who asked not to be named because he was not authorised to speak on the matter, said Israel would have to choose a different envoy because the choice of Dayan has further worsened relations that turned sour in 2010 when Brazil decided to recognise Palestinian statehood in the West Bank, East Jerusalem, and the Gaza Strip, which Israel occupied in a 1967 war and colonised. Israel quit Gaza in 2005 but claims occupied Jerusalem as its “indivisible capital” and wants to keep swathes of West Bank colonies under any eventual peace deal with the Palestinians.
  • Brazil’s government was also angered by the announcement of Dayan’s appointment by Netanyahu in a Twitter message on August 5 before Brasilia had been informed, let alone agreed to the new envoy as is the diplomatic norm. Over the weekend, Dayan went on the offensive to defend his nomination, telling Israeli media that Netanyahu’s government was not doing enough to press Brazil to accept him. Dayan said not doing so could create a precedent barring colonists from representing Israel abroad.
  • Israel has a considerable role in providing avionics technology for Brazil’s aerospace and defense industry. Celso Amorim, a former Brazilian foreign and defence minister, said on Friday that the diplomatic dispute over Dayan’s appointment showed that “it is time the Brazilian armed forces reduced their dependence on Israel.”
Paul Merrell

NSA oversight dismissed as 'illusory' as anger intensifies in Europe and beyond | World... - 0 views

  • The Obama administration's international surveillance crisis deepened on Monday as representatives from a Latin American human rights panel told US diplomats that oversight of the programs was "illusory".Members of the Inter-American Commission on Human Rights, an arm of the Organization of American States, expressed frustration and dissatisfaction with the National Security Agency's mass surveillance of foreign nationals – something the agency argues is both central to its existence and necessary to prevent terrorism. "With a program of this scope, it's obvious that any form of control becomes illusory when there's hundreds of millions of communications that become monitored and surveilled," said Felipe Gonzales, a commissioner and Chilean national."This is of concern to us because maybe the Inter-American Committee on Human Rights may become a target as well of surveillance," said Rodrigo Escobar Gil, a commissioner and Colombian citizen.
  • Frank La Rue, the United Nations special rapporteur on the right to freedom of opinion and expression, told the commission that the right to privacy was "inextricably linked" to free expression. "What is not permissible from a human rights point of view is that those that hold political power or those that are in security agencies or, even less, those in intelligence agencies decide by themselves, for themselves, what the scope of these surveillance activities are, or who will be targeted, or who will be blank surveilled," La Rue said.While the US sent four representatives to the hearing, they offered no defence, rebuttal or elaboration about bulk surveillance, saying the October government shutdown prevented them from adequate preparation. "We are here to listen," said deputy permanent representative Lawrence Gumbiner, who pledged to submit written responses within 30 days.All 35 North, Central and South American nations are members of the commission. La Rue, originally from Guatemala and an independent expert appointed by the Human Rights Council, travels the world reporting on human rights concerns – often in countries with poor democratic standards.
  • The Obama administration has been fielding a week's worth of European outrage following media reports that the NSA had collected a similarly large volume of phone calls from France – which director of national intelligence James Clapper, who recently apologised for misleading the Senate about domestic spying, called "false" – and spying on German chancellor Angela Merkel's own cellphone, which US officials have effectively confessed to. Brazil and Mexico are also demanding answers from US intelligence officials, following reports about intrusive acts of espionage in their territory revealed by documents provided to journalists by former NSA contractor Edward Snowden. The White House has said it will provide some answers after the completion of an external review of its surveillance programs, scheduled to be completed before the end of the year. The Guardian reported on Thursday that the NSA has intercepted the communications of 35 world leaders.
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  • Spying on foreigners is the core mission of the NSA, one that it vigorously defends as appropriate, legal and unexceptional given the nature of global threats and widespread spycraft. Monday's hearing suggested that there are diplomatic consequences to bulk surveillance even if there may not be legal redress for non-Americans. Brazil has already shown a willingness to challenge Washington over bulk surveillance. President Dilma Rousseff postponed a September meeting with President Obama in protest, and denounced the spying during the UN general assembly shortly thereafter. Brazil is also teaming up with Germany at the UN on a general assembly resolution demanding an end to the mass surveillance. The commission's examination of the NSA's bulk surveillance activities suggested a potential southern front could open in the spy crisis just as the administration is attempting to calm down Europe.
  • International discomfort with NSA bulk surveillance is not the only spy challenge the Obama administration now confronts. Congressman James Sensenbrenner, the Wisconsin Republican and key author of the 2001 Patriot Act, is poised to introduce a bill this week that would prevent the NSA from collecting phone records on American citizens in bulk and without an individual warrant. The National Journal reported that Sensenbrenner's bill, which has a companion in the Senate, has attracted eight co-sponsors who either voted against or abstained on a July amendment in the House that would have defunded the domestic phone records bulk collection, a legislative gambit that came within seven votes of passage.Sensenbrenner's bill, like its Senate counterpart sponsored by Vermont Democrat Patrick Leahy, would not substantially restrict the NSA's foreign-focused surveillance, which is a traditional NSA activity. There is practically no congressional appetite, and no viable legislation, to limit the NSA from intercepting the communications of foreigners. An early sign about the course of potential surveillance reforms in the House of Representatives may come as early as Tuesday. The House intelligence committee, a hotbed of support for the NSA, will hold its first public hearing of the fall legislative calendar on proposed surveillance legislation. Its chairman, Mike Rogers of Michigan, has proposed requiring greater transparency on the NSA and the surveillance court that oversees it, but would largely leave the actual surveillance activities of the NSA, inside and outside the United States, untouched.
  • Alex Abdo, a lawyer with the ACLU, which requested the hearing at the Inter-American Commission on Human Rights, warned the human rights panel that the NSA could "target the foreign members of this commission when they travel abroad", as well as foreign dissidents of US-aligned governments; foreign lawyers for Guantánamo detainees; and other foreigners."If every country were to engage in surveillance as pervasive as the NSA, we would soon live in a state … with no refuge for the world's dissidents, journalists and human rights defenders," Abdo said.
Paul Merrell

NSA Spied on World Bank, IMF, UN, Pope, World Leaders, and American Politicians and Mil... - 0 views

  • He says the NSA started spying on President Obama when he was a candidate for Senate: 
  • Another very high-level NSA whistleblower – the head of the NSA’s global intelligence gathering operation – says that the NSA targeted CIA chief Petraeus. Of course, the NSA also spied on the leaders of Germany, Brazil and Mexico, and at least 35 world leaders total. The NSA also spies on the European Union, the European Parliament, the G20 summit and other allies.
  • The NSA conducts widespread industrial espionage on our allies. That has nothing to do with terrorism, either.  And the  NSA’s industrial espionage has been going on for many decades.
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    Nice collection of links in a list of targets of NSA surveillance. 
Paul Merrell

Britain Detains the Partner of a Reporter Tied to Leaks - NYTimes.com - 0 views

  • The partner of Glenn Greenwald, the journalist for The Guardian who has been publishing information leaked by the former National Security Agency contractor Edward J. Snowden, was detained for nine hours by the British authorities under a counterterrorism law while on a stop in London’s Heathrow Airport during a trip from Germany to Brazil, Mr. Greenwald said Sunday.
  • Mr. Greenwald’s partner, David Michael Miranda, 28, is a citizen of Brazil. He had spent the previous week in Berlin visiting Laura Poitras, a documentary filmmaker who has also been helping to disseminate Mr. Snowden’s leaks, to assist Mr. Greenwald. The Guardian had paid for the trip, Mr. Greenwald said, and Mr. Miranda was on his way home to Rio de Janeiro.
  • The Guardian published a report on Mr. Miranda’s detainment on Sunday afternoon. Mr. Greenwald said someone who identified himself as a security official from Heathrow Airport called him early on Sunday and informed him that Mr. Miranda had been detained, at that point for three hours. The British authorities, he said, told Mr. Miranda that they would obtain permission from a judge to arrest him for 48 hours, but he was released at the end of the nine hours, around 1 p.m. Eastern time. Mr. Miranda was in Berlin to deliver documents related to Mr. Greenwald’s investigation into government surveillance to Ms. Poitras, Mr. Greenwald said. Ms. Poitras, in turn, gave Mr. Miranda different documents to pass to Mr. Greenwald. Those documents, which were stored on encrypted thumb drives, were confiscated by airport security, Mr. Greenwald said. All of the documents came from the trove of materials provided to the two journalists by Mr. Snowden. The British authorities seized all of his electronic media — including video games, DVDs and data storage devices — and did not return them, Mr. Greenwald said.
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    My comments mighty be longer than Diigo allows from the client sidee so I will place them in in a comment following this post. However, do not miss the companion article in The Guardian, at  
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    Note that when detained, Mr. Miranda was acting in the role of a courier transporting documents on a thumb drive between two of the lead reporters working on the NSA scandal for The Guardian. The police kept the thumb drive and all other electronic devices Mr. Miranda carried, presumably to study their data stores.  Perhaps even more to the point, this was the seizure of leaked NSA documents and reporters' notes about them. I do not know about the UK law on the subject, but the shame of it is that it would be lawful accordng to the U.S. Supreme Court for U.S. Customs officials to do the same thing had Mr. Miranda arrived at an American international airport. Most Americans would be shocked to learn how many of their cherished Constitutional rights disappear at a port or entry or when crossing a border into the U.S. and when traveling within a 100-mile distance from a U.S. border on the U.S. side. But the particular detention of Mr. Miranda and seizure of the reporter's research and NSA document copies was sure from the outset to cause a major media stir. It has also provoked a strong diplomatic protest from Brazil This incident has already provoked not only a strong diplomatic protest from Brazil, but also in the UK, "Labour MP Tom Watson said he was shocked at the news and called for it to be made clear if any ministers were involved in authorising the detention." Also note in The Guardian article that the police were acting under authority of the draconian British Terrorism Act, which does not limit its application to those who are not suspected of being a terrorist. That UK government was willing to endure a public whipping by the media testifies loudly to the desperation of spy agencies - in the U.K., U.S., Australia, New Zealand, Canada, and Israel intelligence alliance - to learn what documents Snowden leaked to Glenn Greenwald and the Washington Post so they have a clue about: [i] what hammer blows will hit them in the future so they can get out i
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    I see that I forgot to paste the link to the companion article in The Guardian. Here 'tis. http://www.theguardian.com/world/2013/aug/18/glenn-greenwald-guardian-partner-detained-heathrow
Paul Merrell

The BRICS "Independent Internet" Cable. In Defiance of the "US-Centric Internet" | Glob... - 0 views

  • The President of Brazil, Dilma Rousseff announces publicly the creation of a world internet system INDEPENDENT from US and Britain ( the “US-centric internet”). Not many understand that, while the immediate trigger for the decision (coupled with the cancellation of a summit with the US president) was the revelations on NSA spying, the reason why Rousseff can take such a historic step is that the alternative infrastructure: The BRICS cable from Vladivostock, Russia  to Shantou, China to Chennai, India  to Cape Town, South Africa  to Fortaleza, Brazil,  is being built and it’s, actually, in its final phase of implementation. No amount of provocation and attempted “Springs” destabilizations and Color Revolution in the Middle East, Russia or Brazil can stop this process.  The huge submerged part of the BRICS plan is not yet known by the broader public.
  • Nonetheless it is very real and extremely effective. So real that international investors are now jumping with both feet on this unprecedented real economy opportunity. The change… has already happened. Brazil plans to divorce itself from the U.S.-centric Internet over Washington’s widespread online spying, a move that many experts fear will be a potentially dangerous first step toward politically fracturing a global network built with minimal interference by governments. President Dilma Rousseff has ordered a series of measures aimed at greater Brazilian online independence and security following revelations that the U.S. National Security Agency intercepted her communications, hacked into the state-owned Petrobras oil company’s network and spied on Brazilians who entrusted their personal data to U.S. tech companies such as Facebook and Google.
  • BRICS Cable… a 34 000 km, 2 fibre pair, 12.8 Tbit/s capacity, fibre optic cable system For any global investor, there is no crisis – there is plenty of growth. It’s just not in the old world BRICS is ~45% of the world’s population and ~25% of the world’s GDP BRICS together create an economy the size of Italy every year… that’s the 8th largest economy in the world The BRICS presents profound opportunities in global geopolitics and commerce Links Russia, China, India, South Africa, Brazil – the BRICS economies – and the United States. Interconnect with regional and other continental cable systems in Asia, Africa and South America for improved global coverage Immediate access to 21 African countries and give those African countries access to the BRICS economies. Projected ready for service date is mid to second half of 2015.
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    Undoubtedly, construction was under way well before the Edward Snowden leaked documents began to be published. But that did give the new BRICS Cable an excellent hook for the announcement. With 12.8 Tbps throughput, it looks like this may divert considerable traffic now routed through the UK. But it still connects with the U.S., in Miami. 
Paul Merrell

Edward Snowden : The Greatest Human Rights Challenge Of Our Time - 0 views

  • Six months ago, I stepped out from the shadows of the United States Government's National Security Agency to stand in front of a journalist's camera. I shared with the world evidence proving some governments are building a world-wide surveillance system to secretly track how we live, who we talk to, and what we say. I went in front of that camera with open eyes, knowing that the decision would cost me family and my home, and would risk my life. I was motivated by a belief that the citizens of the world deserve to understand the system in which they live. My greatest fear was that no one would listen to my warning. Never have I been so glad to have been so wrong.
  • There is a huge difference between legal programs, legitimate spying, legitimate law enforcement - where individuals are targeted based on a reasonable, individualized suspicion - and these programs of dragnet mass surveillance that put entire populations under an all-seeing eye and save copies forever. These programs were never about terrorism: they're about economic spying, social control, and diplomatic manipulation. They're about power.
  • Many Brazilian senators agree, and have asked for my assistance with their investigations of suspected crimes against Brazilian citizens. I have expressed my willingness to assist wherever appropriate and lawful, but unfortunately the United States government has worked very hard to limit my ability to do so -- going so far as to force down the Presidential Plane of Evo Morales to prevent me from traveling to Latin America! Until a country grants permanent political asylum, the US government will continue to interfere with my ability to speak. Six months ago, I revealed that the NSA wanted to listen to the whole world. Now, the whole world is listening back, and speaking out, too. And the NSA doesn't like what it's hearing. The culture of indiscriminate worldwide surveillance, exposed to public debates and real investigations on every continent, is collapsing.
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  • Only three weeks ago, Brazil led the United Nations Human Rights Committee to recognize for the first time in history that privacy does not stop where the digital network starts, and that the mass surveillance of innocents is a violation of human rights. The tide has turned, and we can finally see a future where we can enjoy security without sacrificing our privacy. Our rights cannot be limited by a secret organization, and American officials should never decide the freedoms of Brazilian citizens. Even the defenders of mass surveillance, those who may not be persuaded that our surveillance technologies have dangerously outpaced democratic controls, now agree that in democracies, surveillance of the public must be debated by the public.
  • My act of conscience began with a statement: "I don't want to live in a world where everything that I say, everything I do, everyone I talk to, every expression of creativity or love or friendship is recorded. That's not something I'm willing to support, it's not something I'm willing to build, and it's not something I'm willing to live under." Days later, I was told my government had made me stateless and wanted to imprison me. The price for my speech was my passport, but I would pay it again: I will not be the one to ignore criminality for the sake of political comfort. I would rather be without a state than without a voice. If Brazil hears only one thing from me, let it be this: when all of us band together against injustices and in defense of privacy and basic human rights, we can defend ourselves from even the most powerful systems.
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    Edward Snowden speaks to the people of Brazil with a message of hope. We'll see how it plays out. But for those of us in the U.S. or one of the other "5 eyes" nations, some words of particular importance: "These programs were never about terrorism: they're about economic spying, social control, and diplomatic manipulation. They're about power." 
Paul Merrell

F.B.I. Informant Is Tied to Cyberattacks Abroad - NYTimes.com - 0 views

  • An informant working for the F.B.I. coordinated a 2012 campaign of hundreds of cyberattacks on foreign websites, including some operated by the governments of Iran, Syria, Brazil and Pakistan, according to documents and interviews with people involved in the attacks.Exploiting a vulnerability in a popular web hosting software, the informant directed at least one hacker to extract vast amounts of data — from bank records to login information — from the government servers of a number of countries and upload it to a server monitored by the F.B.I., according to court statements.
  • The attacks were coordinated by Hector Xavier Monsegur, who used the Internet alias Sabu and became a prominent hacker within Anonymous for a string of attacks on high-profile targets, including PayPal and MasterCard. By early 2012, Mr. Monsegur of New York had been arrested by the F.B.I. and had already spent months working to help the bureau identify other members of Anonymous, according to previously disclosed court papers.One of them was Jeremy Hammond, then 27, who, like Mr. Monsegur, had joined a splinter hacking group from Anonymous called Antisec. The two men had worked together in December 2011 to sabotage the computer servers of Stratfor Global Intelligence, a private intelligence firm based in Austin, Tex.
  • Shortly after the Stratfor incident, Mr. Monsegur, 30, began supplying Mr. Hammond with lists of foreign websites that might be vulnerable to sabotage, according to Mr. Hammond, in an interview, and chat logs between the two men. The New York Times petitioned the court last year to have those documents unredacted, and they were submitted to the court last week with some of the redactions removed.Continue reading the main story “After Stratfor, it was pretty much out of control in terms of targets we had access to,” Mr. Hammond said during an interview this month at a federal prison in Kentucky, where he is serving a 10-year sentence after pleading guilty to the Stratfor operation and other computer attacks inside the United States. He has not been charged with any crimes in connection with the hacks against foreign countries.
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  • according to an uncensored version of a court statement by Mr. Hammond, leaked online the day of his sentencing in November, the target list was extensive and included more than 2,000 Internet domains. The document said Mr. Monsegur had directed Mr. Hammond to hack government websites in Iran, Nigeria, Pakistan, Turkey and Brazil and other government sites, like those of the Polish Embassy in Britain and the Ministry of Electricity in Iraq.
  • The hacking campaign appears to offer further evidence that the American government has exploited major flaws in Internet security — so-called zero-day vulnerabilities like the recent Heartbleed bug — for intelligence purposes. Recently, the Obama administration decided it would be more forthcoming in revealing the flaws to industry, rather than stockpiling them until the day they are useful for surveillance or cyberattacks. But it carved a broad exception for national security and law enforcement operations.
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    Has no one in government ever heard of the concept of leadership by example? Or the Golden Rule?
Paul Merrell

Some snapshots from the mass Brazilian protests (and an explanation) - Boing Boing - 0 views

  • Brazil is up in arms. Hundreds of thousands are in the streets. The capital building in Brazilia was surrounded, then stormed. Here's some pictures of last night's goings-on, and above, a video explaining some of the reasons for the uprising.
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    Also omitted from U.S. mainstream media, there is a mass protest occurring across Brazil. From what I've seen so far the major causes are poverty and government corruption. Massive spending on a stadium for the 2014 soccer World Cup has become a flashpoint. 
Paul Merrell

Exclusive: Germany, Brazil Turn to U.N. to Restrain American Spies | Grumpy Opinions - 0 views

  • Brazil and Germany today joined forces to press for the adoption of a U.N. General Resolution that promotes the right of privacy on the internet, marking the first major international effort to restrain the National Security Agency’s intrusions into the online communications of foreigners, according to diplomatic sources familiar with the push. The effort follows a German claim that the American spy agency may have tapped the private telephone of German Chancellor Angela Merkel and dozens of other world leaders. It also comes about one month after Brazilian leader Dilma Rousseff denounced NSA espionage against her country as “a breach of international law” in a General Assembly speech and proposed that the U.N. establish legal guidelines to prevent “cyberspace from being used as a weapon of war.” Brazilian and German diplomats met in New York today with a small group of Latin American and European governments to consider a draft resolution that calls for expanding privacy rights contained in the International Covenant Civil and Political Rights to the online world.
Paul Merrell

The Ukraine Crisis and Vladimir Putin: A New Financial System Free from Wall Street and... - 0 views

  • This is the big secret that now cannot be covered anymore. The governments of the US and the European countries are NOT independent entities, they are not sovereign. They do not have the will or even the ability to act on behalf of their people. They are controlled by powerful banking interests. They have been taken over by two financial centers that do not care for the real economy. They pursue only speculation and looting. In response on March 4th the economic adviser to Putin, Sergey Glazyev declared openly that if the financial vultures persisted, Russia would create on the spot an independent financial system which is separate from that of the US Dollar. Glazyev explained to the vampires: ‘We have wonderful economic and trade relations with our Southern and Eastern partners. We will find a way not just to eliminate our dependence on the US but also profit from these sanctions….If sanctions are applied against Russia’s state structures we will have to move into other currencies and create our own settlement system. We will be forced to recognize the impossibility of repayment of the loans that the US banks gave to Russian state structures. Indeed, sanctions are a double-edged weapon, and if the US chooses to freeze our assets, then our equities and liabilities in dollars will also be frozen…’
  • On March 18, the spokesperson for the Kremlin, Dmitry Peskov, stated that Russia would switch to new partners in case of economic sanctions being imposed by the European Union and the United States. He highlighted that the modern world isn’t unipolar and Russia has strong ties with other states as well, though Russia wants to remain in good relations with its Western partners, especially with the EU due to the volume of trade and joint projects. Those “new partners” are not really new since Russia has been closely interconnected with them for almost 13 years. This is all about the so-called BRICS organization, consisting of Brazil, Russia, India, China and South Africa. BRICS represents 42 percent of the world’s population and about a quarter of the world’s economy, which means that this bloc of states is an important global actor. The BRICS countries are like-minded in regard to supporting the principles of international law, the central role of the UN Security Council and the principles of the non-use of force in international relations; this is why they are so actively performing in the sphere of settling regional conflicts. However, the cooperation between Brazil, Russia, India, China and South Africa goes beyond political aspects and is also demonstrated by dynamic trade and multiple projects in different areas. Today, in total, there are more than 20 formats of cooperation within the BRICS which are being developing. For example, in February the member-states came to an agreement about 11 possible projects of scientific and technical cooperation, from aeronautics to bio- and nanotechnology.
  • This strategy is known as the Financial Nuclear Option. It could lead to the end of the predatory looting system of Wall Street. The ‘Southern and Eastern partners’ Glazyev is talking about are clearly the members of the BRICS, Brazil, Russia, India, China, South Africa, the sane part of the world economy, the future. And it is  exactly  what the official spokesman of the Kremlin, Dmitry Peskov indicated in an interview to the BBC: “Sanctions against Russia could be the final trigger that will force many countries to create a new independent financial system based on the real economy. The world is changing rapidly. How many civilizations grew and died in the course of history? Who will be able to resist the pressure of dying systems and indicate to the people the road toward the future?”  The possibility of a new financial system independent from the collapsing dollar empire, as consequence of anti Russia sanctions was also emphasized by an authoritative the Russian media including  RT. (See:http://rt.com/op-edge/russia-switches-to-brics-sanctions-357/) …Western sanctions might push Russia to deepen cooperation with BRICS states, in particular, to strengthen its ties with China, which will possibly turn out to be a big catastrophe for the US and the EU some time later.
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  • In order to modernize the global economic system, at the center of which stand the US and the EU, the leaders of Brazil, Russia, India, China and South Africa have created the BRICS Stock Alliance and are creating their own development bank to finance large infrastructure projects. On the whole, despite fierce criticism of BRICS as an organization with no future, it is developing and increasing cooperation with its members and, in fact, BRICS is showing pretty good results. With the suspension of Russia’s participation in G8 and the strengthening of economic sanctions against Russia, specific industries may be targeted, including limits on imported commodities. While the West seeks to hit Russia hard, it is important to notice that Russia is ready to switch to other markets, including BRICS, with a view to expanding its trade.
Paul Merrell

De-Dollarization: Dismantling America's Financial-Military Empire | Global Research - 0 views

  • 13 June 2009
  • The city of Yakaterinburg, Russia’s largest east of the Urals, may become known not only as the death place of the tsars but of American hegemony too – and not only where US U-2 pilot Gary Powers was shot down in 1960, but where the US-centered international financial order was brought to ground. Challenging America will be the prime focus of extended meetings in Yekaterinburg, Russia (formerly Sverdlovsk) today and tomorrow (June 15-16) for Chinese President Hu Jintao, Russian President Dmitry Medvedev and other top officials of the six-nation Shanghai Cooperation Organization (SCO). The alliance is comprised of Russia, China, Kazakhstan, Tajikistan, Kyrghyzstan and Uzbekistan, with observer status for Iran, India, Pakistan and Mongolia. It will be joined on Tuesday by Brazil for trade discussions among the BRIC nations (Brazil, Russia, India and China).      The attendees have assured American diplomats that dismantling the US financial and military empire is not their aim. They simply want to discuss mutual aid – but in a way that has no role for the United States, NATO or the US dollar as a vehicle for trade. US diplomats may well ask what this really means, if not a move to make US hegemony obsolete. That is what a multipolar world means, after all. For starters, in 2005 the SCO asked Washington to set a timeline to withdraw from its military bases in Central Asia. Two years later the SCO countries formally aligned themselves with the former CIS republics belonging to the Collective Security Treaty Organization (CSTO), established in 2002 as a counterweight to NATO. 
  • Challenging America will be the prime focus of extended meetings in Yekaterinburg, Russia (formerly Sverdlovsk) today and tomorrow (June 15-16) for Chinese President Hu Jintao, Russian President Dmitry Medvedev and other top officials of the six-nation Shanghai Cooperation Organization (SCO). The alliance is comprised of Russia, China, Kazakhstan, Tajikistan, Kyrghyzstan and Uzbekistan, with observer status for Iran, India, Pakistan and Mongolia. It will be joined on Tuesday by Brazil for trade discussions among the BRIC nations (Brazil, Russia, India and China).    
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  • Yet the meeting has elicited only a collective yawn from the US and even European press despite its agenda is to replace the global dollar standard with a new financial and military defense system. A Council on Foreign Relations spokesman has said he hardly can imagine that Russia and China can overcome their geopolitical rivalry,1 suggesting that America can use the divide-and-conquer that Britain used so deftly for many centuries in fragmenting foreign opposition to its own empire. But George W. Bush (“I’m a uniter, not a divider”) built on the Clinton administration’s legacy in driving Russia, China and their neighbors to find a common ground when it comes to finding an alternative to the dollar and hence to the US ability to run balance-of-payments deficits ad infinitum.            What may prove to be the last rites of American hegemony began already in April at the G-20 conference, and became even more explicit at the St. Petersburg International Economic Forum on June 5, when Mr. Medvedev called for China, Russia and India to “build an increasingly multipolar world order.” What this means in plain English is: We have reached our limit in subsidizing the United States’ military encirclement of Eurasia while also allowing the US to appropriate our exports, companies, stocks and real estate in exchange for paper money of questionable worth.
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    Revisiting history: It's amazing to see how far the de-dollarization strategy has progressed since 2009.
Paul Merrell

Brazil's Epic Scandal Takes Down a Banker - Bloomberg Business - 0 views

  • Brazilians have become inured to seeing politicians and businessmen marched off to prison for corruption. But the mug shot of banker André Esteves—unshaven and frowning—that flashed across TV screens in early December was a shock. Part of a cadre of mavericks who got astonishingly rich from Brazil’s transformation into one of the world’s top 10 economies in the 2000s, Esteves helped turn Grupo BTG Pactual into Latin America’s biggest standalone investment bank. Supremely confident, Esteves—who was a billionaire by his mid-30s—liked to quip that the initials in his company’s name stood for “Better than Goldman.”Around dawn on Nov. 25, Esteves’s fortunes soured in an instant. Police showed up at his apartment, which faces Rio de Janeiro’s legendary Ipanema beach, and hauled him away on allegations of obstructing a federal investigation into a massive pay-to-play scheme centered on Brazil’s state-run oil giant, Petrobras. Now Esteves, 47, resides in a cell block with concrete beds and communal toilets at Bangu, a high-security prison in Rio better known for housing drug traffickers and murderers.
  • Having its founder, chief executive officer, and chairman behind bars has pushed BTG Pactual to the brink of insolvency as clients pull their money out. Within days of his arrest, Esteves had relinquished his controlling stake in the firm, and his partners had begun a wholesale selloff of assets. To avert disaster, Brazil’s central bank helped engineer a $1.6 billion rescue line from the country’s privately funded deposit guarantee fund. Still, the bank’s shares have lost half their value since Esteves’s arrest. On Dec. 7, prosecutors formally accused the banker of obstruction of justice. Antônio Carlos de Almeida Castro, Esteves’s lawyer, says his client has done nothing wrong.The metastatic graft scandal that sent Esteves to jail threatens more than the survival of BTG. So many legislators are implicated, Congress has been unable to pass legislation to contain an exploding budget deficit. President Dilma Rousseff has grown so unpopular that lawmakers are maneuvering to impeach her for allegedly cooking the government’s books. Meanwhile, the economy is sliding into what Goldman Sachs calls a full-blown depression.
  • BTG’s collapse won’t cause Brazil’s capital markets to seize up as Lehman Brothers’ failure did in the U.S. in 2008. Yet having one of the country’s most prominent financiers behind bars is a body blow to the confidence of investors at a time when Brazil needs their cash. “It very much gives you the impression that the corruption scheme is so widespread that it induces a kind of counterparty risk,” says Monica de Bolle, a former International Monetary Fund economist. “You enter into transactions with people in Brazil without knowing whether or not they might be implicated in something.” The result: “Nothing gets done. There’s no business,” she says.
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