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Paul Merrell

NSA infected 50,000 computer networks with malicious software - nrc.nl - 0 views

www.nrc.nl/...tworks-with-malicious-software

surveillance state NSA NSA-targets malware

shared by Paul Merrell on 25 Nov 13 - No Cached
  • The American intelligence service - NSA - infected more than 50,000 computer networks worldwide with malicious software designed to steal sensitive information. Documents provided by former NSA-employee Edward Snowden and seen by this newspaper, prove this. A management presentation dating from 2012 explains how the NSA collects information worldwide. In addition, the presentation shows that the intelligence service uses ‘Computer Network Exploitation’ (CNE) in more than 50,000 locations. CNE is the secret infiltration of computer systems achieved by installing malware, malicious software. One example of this type of hacking was discovered in September 2013 at the Belgium telecom provider Belgacom. For a number of years the British intelligence service - GCHQ – has been installing this malicious software in the Belgacom network in order to tap their customers’ telephone and data traffic. The Belgacom network was infiltrated by GCHQ through a process of luring employees to a false Linkedin page.
  • The NSA computer attacks are performed by a special department called TAO (Tailored Access Operations). Public sources show that this department employs more than a thousand hackers. As recently as August 2013, the Washington Post published articles about these NSA-TAO cyber operations. In these articles The Washington Post reported that the NSA installed an estimated 20,000 ‘implants’ as early as 2008. These articles were based on a secret budget report of the American intelligence services. By mid-2012 this number had more than doubled to 50,000, as is shown in the presentation NRC Handelsblad laid eyes on.
  • Cyber operations are increasingly important for the NSA. Computer hacks are relatively inexpensive and provide the NSA with opportunities to obtain information that they otherwise would not have access to. The NSA-presentation shows their CNE-operations in countries such as Venezuela and Brazil. The malware installed in these countries can remain active for years without being detected.
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  • The malware can be controlled remotely and be turned on and off at will. The ‘implants’ act as digital ‘sleeper cells’ that can be activated with a single push of a button. According to the Washington Post, the NSA has been carrying out this type of cyber operation since 1998.
  • Paul Merrell on 25 Nov 13
     
    Nice interactive graphic too. 
Paul Merrell

Germany to send intelligence chiefs to U.S. over Merkel allegations - chicagotribune.com - 0 views

www.chicagotribune.com/...summit-20131024,0,665586.story

surveillance state NSA NSA-blowback E.U. digital-privacy

shared by Paul Merrell on 26 Oct 13 - No Cached
  • Germany will send its top intelligence chiefs to Washington next week to seek answers from the White House on allegations that U.S. security officials tapped the mobile phone of Chancellor Angela Merkel.
  • Berlin will dispatch the heads of its foreign intelligence agency BND and of its domestic counterpart, the BfV. Merkel's chief of staff Ronald Pofalla, who is responsible for the intelligence services, may also join them.
  • German Chancellor Angela Merkel demanded on Thursday that the United States strike a "no-spying" agreement with Berlin and Paris by the end of the year, saying alleged espionage against two of Washington's closest EU allies had to be stopped. Speaking after talks with EU leaders that were dominated by allegations that the U.S. National Security Agency had accessed tens of thousands of French phone records and monitored Merkel's private mobile phone, the chancellor said she wanted action from President Barack Obama, not just apologetic words. Germany and France would seek a "mutual understanding" with the United States on cooperation between their intelligence agencies, and other EU member states could eventually take part. "That means a framework for cooperation between the relevant (intelligence) services. Germany and France have taken the initiative and other member states will join," she said.
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  • As EU leaders arrived for the two-day summit there was near-universal condemnation of the alleged activities by the NSA, particularly the monitoring of Merkel's mobile phone, a sensitive issue for a woman who grew up in East Germany, living under the Stasi police force and its feared eavesdropping.
  • Some senior German officials, and the German president of the European Parliament, have called for talks between the EU and United States on a free-trade agreement, which began in July, to be suspended because of the spying allegations. Merkel, whose country is one of the world's leading exporters and stands to gain from any trade deal with Washington, said that was not the right path to take, saying the best way forward was to rebuild trust. The series of Snowden-based leaks over the past three months have left Washington at odds with a host of important allies, from Brazil to Saudi Arabia, and there are few signs that the revelations are going to dry up anytime soon.
  • As well as raising questions about the EU-US trade negotiations, the spying furor could also have an impact on data-privacy legislation working its way through the EU. The European Parliament has already opened an inquiry into the effect on Europe of U.S. intelligence activities revealed by former NSA contractor Edward Snowden. It has also led a push for tougher data protection rules and the suspension of a transatlantic data-sharing deal. The Parliament, with 766 members directly elected from the EU's 28 member states, voted this week in favor of an amended package of laws that would greatly strengthen EU data protection rules that date from 1995. The new rules would restrict how data collected in Europe by firms such as Google and Facebook is shared with non-EU countries, introduce the right of EU citizens to request that their digital traces be erased, and impose fines of 100 million euros ($138 million) or more on rule breakers.
  • The United States is concerned the regulations, if they enter into law, will raise the cost of handling data in Europe. Google, Yahoo!, Microsoft and others have lobbied hard against the proposals. Given the spying accusations, France and Germany - the two most influential countries in EU policy - may succeed in getting member states to push ahead on negotiations with the parliament to complete the new data regulations by 2015. For the United States, it could substantially change how data privacy rules are implemented globally.
  • Paul Merrell on 26 Oct 13
     
    I'd like to have a "no spying" agreement with the Feds too.  
Paul Merrell

IPS - U.N. Will Censure Illegal Spying, But Not U.S. | Inter Press Service - 0 views

www.ipsnews.net/...ure-illegal-spying-but-not-u-s

surveillance state NSA NSA-blowback U.N. international law

shared by Paul Merrell on 30 Oct 13 - No Cached
  • When the 193-member General Assembly adopts a resolution next month censuring the illegal electronic surveillance of governments and world leaders by the U.S. National Security Agency (NSA), the U.N.’s highest policy-making body will spare the United States from public condemnation despite its culpability in widespread wiretapping. A draft resolution currently in limited circulation – a copy of which was obtained by IPS – criticises “the conduct of extra-territorial surveillance” and the “interception of communications in foreign jurisdictions”. But it refuses to single out the NSA or the United States, which stands accused of spying on foreign governments, including political leaders in Germany, France, Brazil, Spain and Mexico, among some 30 others.
  • The draft says that while the gathering and protection of certain sensitive information may be justified on grounds of national security and criminal activity, member states must still ensure full compliance with international human rights. The resolution will also emphasise “that illegal surveillance of private communications and the indiscriminate interception of personal data of citizens constitutes a highly intrusive act that violates the rights to freedom of expression and privacy, and threatens the foundations of a democratic society.” Additionally, it will call for the establishment of independent oversight mechanisms capable of ensuring transparency and accountability of state surveillance of communications. And the resolution will request the U.N. High Commissioner for Human Rights, Navi PIllay, to present an interim report on the issue of human rights and “indiscriminate surveillance, including on extra-territorial surveillance.” This report is to be presented to the 69th session of the General Assembly next September, and a final report to its 70th session in 2015.
  • Chakravarthi Raghavan, a veteran Indian journalist who has been reporting on the U.N. and its activities since the 1960s, both in New York and later in Geneva, told IPS the resolution may help start a process under which the national security interests of every state, international security and right to privacy and human rights of people can be discussed and a balance found in some universal forum. “Otherwise, the U.N. world order will break down, and no one will benefit or emerge unscathed,” he said. Much will depend on the follow-up action that the General Assembly resolution calls for, and with what tenacity members pursue it. “Frankly, I am not at all clear that some of the nations raising the issue now are really serious,” said Raghavan, editor-emeritus of the Geneva-based South-North Development Monitor SUNS. “If they were, any one of them in Europe would have granted asylum to Edward Snowden, and not play footsie with U.S. in its attempts to have him jailed in the U.S. on espionage charges.” The revelations of U.S. spying have come mostly from documents released by Snowden, a former NSA contractor, who sought political asylum in Russia after he was accused of espionage by the United States.
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  • One Third World diplomat, speaking on condition of anonymity, told IPS the draft could undergo changes by the time it reaches the General Assembly mid-November. But he held out little hope the final resolution will specifically castigate the United States because of the political clout it wields at the United Nations, and Washington’s notoriety for exerting diplomatic pressure on its allies and aid recipients. Besides which, he said, everybody plays the spying game, including the French, the Germans, the Chinese and the Russians — and therefore none of them can afford to take a “holier than thou” attitude. Still, as the New York Times put it last week, “One thing is clear: the NSA’s Cold War-era argument, that everyone does it, seems unlikely to win the day.”
  • There has been a longstanding tradition that the “Five Eyes” do not spy on each other, the five being the United States, Britain, Canada, Australia and New Zealand. But the surveillance of European political leaders has triggered a strong rejoinder from the 28-member European Union (EU). Raghavan told IPS that even if other countries are not publicly feuding with the U.S. over this — and perhaps their own security apparatuses are secretly collaborating in this global “surveillance state” — the NSA activities at a minimum raise several systemic issues involving basic violations. These include violations of the U.N. Charter; “unauthorised” and blatantly illegal invasions and/or intrusions into national space; World Trade Organisation (WTO) agreements, in particular the Trade-Related Intellectual Property Rights (TRIPS) Agreement and the General Agreement on Trade in Services (GATS); the International Telecommunication Union Treaty and Conventions; treaties and protocols of the World Intellectual Property Organisation (WIPO); the Universal Human Rights Declaration and conventions; and the Vienna diplomatic conventions and codes of behaviour among civilised nations. “All these strike at the roots of the very basics of international law and international public law,” he said.
  • Paul Merrell on 30 Oct 13
     
    So if Raghavan is correct, a new treaty will emerge from the debacle that limits but does not end foreign surveillance. And if so, I predict that it will have no enforcement provisions and absolutely no citizen remedies for rights violated. The farther we go down the NSA rabbit hole, the more convinced I am that it is a stark choice between having spy agencies equipped for digital surveillance and Internet Freedom.  Internet Freedom seems far better equipped to produce world peace through understanding than spy agencies who deliver their "intelligence" to only the favored few. 
Paul Merrell

The US is Losing Control of the Internet…Oh, Really? | Global Research - 0 views

www.globalresearch.ca/...5354119

surveillance state internet-freedom U.S. NSA-blowback ICANN IETF IAB W3C Internet-Society

shared by Paul Merrell on 13 Oct 13 - No Cached
  • All of the major internet organisations have pledged, at a summit in Uruguay, to free themselves of the influence of the US government. The directors of ICANN, the Internet Engineering Task Force, the Internet Architecture Board, the World Wide Web Consortium, the Internet Society and all five of the regional Internet address registries have vowed to break their associations with the US government. In a statement, the group called for “accelerating the globalization of ICANN and IANA functions, towards an environment in which all stakeholders, including all governments, participate on an equal footing”. That’s a distinct change from the current situation, where the US department of commerce has oversight of ICANN. In another part of the statement, the group “expressed strong concern over the undermining of the trust and confidence of Internet users globally due to recent revelations of pervasive monitoring and surveillance”. Meanwhile, it was announced that the next Internet Governance Summit would be held in Brazil, whose president has been extremely critical of the US over web surveillance. In a statement announcing the location of the summit, Brazilian president Dilma Rousseff said: “The United States and its allies must urgently end their spying activities once and for all.”
Paul Merrell

Testosterone Pit - Home - NSA Revelations Kill IBM Hardware Sales in China - 0 views

www.testosteronepit.com/...m-hardware-sales-in-china.html

surveillance state NSA IBM NSA-blowback NSA-targets hardware hardware-backdoors

shared by Paul Merrell on 18 Oct 13 - No Cached
  • The first shot was fired on Monday. Teradata, which sells analytics tools for Big Data, warned that quarterly revenues plunged 21% in Asia and 19% in the Middle East and Africa. Wednesday evening, it was IBM’s turn to confess that its hardware sales in China had simply collapsed. Every word was colored by Edward Snowden’s revelations about the NSA’s hand-in-glove collaboration with American tech companies, from startups to mastodons like IBM.
  • The explanation is more obvious. In mid-August, an anonymous source told the Shanghai Securities News, a branch of the state-owned Xinhua News Agency, which reports directly to the Propaganda and Public Information Departments of the Communist Party, that IBM, along with Oracle and EMC, have become targets of the Ministry of Public Security and the cabinet-level Development Research Centre due to the Snowden revelations. “At present, thanks to their technological superiority, many of our core information technology systems are basically dominated by foreign hardware and software firms, but the Prism scandal implies security problems,” the source said, according to Reuters. So the government would launch an investigation into these security problems, the source said. Absolute stonewalling ensued. IBM told Reuters that it was unable to comment. Oracle and EMC weren’t available for comment. The Ministry of Public Security refused to comment. The Development Research Centre knew nothing of any such investigation. The Ministry of Industry and Information Technology “could not confirm anything because of the matter’s sensitivity.”
  • I’d warned about its impact at the time [read.... US Tech Companies Raked Over The Coals In China]. Snowden’s revelations started hitting in May. Not much later, the Chinese security apparatus must have alerted IT buyers in government agencies, state-owned enterprises, and major independent corporations to turn off the order pipeline for sensitive products until this is sorted out. As Mr. Loughridge’s efforts have shown, it’s hard to explain any other way that hardware sales suddenly collapsed by “40%, 50%” in China, where they’d boomed until then. This is the first quantitative indication of the price Corporate America has to pay for gorging at the big trough of the US Intelligence Community, and particularly the NSA with its endlessly ballooning budget. For once, there is a price to be paid, if only temporarily, for helping build a perfect, seamless, borderless surveillance society. The companies will deny it. At the same time, they’ll be looking for solutions. China, Russia, and Brazil are too important to just get kicked out of – and other countries might follow suit. In September, IBM announced that it would throw another billion at Linux, the open-source operating system, to run its Power System servers – the same that China had stopped buying. It seems IBM was trying to make hay of the NSA revelations that had tangled up American operating system makers. Linux, free of NSA influence, would be a huge competitive advantage for IBM. Or so it would seem. Read.... The Other Reason Why IBM Throws A Billion At Linux (With NSA- Designed Backdoor)
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  • The first shot was fired on Monday. Teradata, which sells analytics tools for Big Data, warned that quarterly revenues plunged 21% in Asia and 19% in the Middle East and Africa. Wednesday evening, it was IBM’s turn to confess that its hardware sales in China had simply collapsed. Every word was colored by Edward Snowden’s revelations about the NSA’s hand-in-glove collaboration with American tech companies, from startups to mastodons like IBM.
  • Paul Merrell on 18 Oct 13
     
    It's starting to look as though the price of NSA collaboration is bankruptcy. Look for Big Blue to attempt to recover the loss from the U.S. government via some juicy deal.
Paul Merrell

Will China 'de-Americanize' the world? - RT Op-Edge - 0 views

rt.com/...china-us-debt-ceiling-311

China U.S. reserve currrencies

shared by Paul Merrell on 18 Oct 13 - No Cached
  • Not to mention that the US’s biggest creditors – from China and Japan to Brazil – would rather see Washington taking active steps to clean up its horrendous financial act instead of just hiking up the debt ceiling.   But this is not the key story. The key story is how Washington’s paralysis was the straw that broke the dragon’s back; how it led China to abandon its Deng Xiaoping maxim of carrying a low profile, and start saying out loud what it really wants; a radical change of the rules of the game. The crucial exhibit is the by now famous Xinhua editorial calling for a “de-Americanized” world. Here, at Asia Times, I had a first shot at examining it.  So what does China really mean by ‘de-Americanizing’?
Paul Merrell

NSA Hacked Email Account of Mexican President - SPIEGEL ONLINE - 0 views

www.spiegel.de/...exican-president-a-928817.html

surveillance state NSA Mexico Brazil government-email

shared by Paul Merrell on 21 Oct 13 - No Cached
  • The NSA has been systematically eavesdropping on the Mexican government for years. It hacked into the president's public email account and gained deep insight into policymaking and the political system. The news is likely to hurt ties between the US and Mexico.
  • Paul Merrell on 21 Oct 13
     
    Lengthy article. Lots more about spying on the Mexican and Brazilian governments.
Paul Merrell

Obama Lets N.S.A. Exploit Some Internet Flaws, Officials Say - NYTimes.com - 0 views

www.nytimes.com/...ernet-flaws-officials-say.html

surveillance state Obama NSA NSA-backdoors exploits must-read Iranian-nukes-myth Stuxnet

shared by Paul Merrell on 13 Apr 14 - No Cached
  • Stepping into a heated debate within the nation’s intelligence agencies, President Obama has decided that when the National Security Agency discovers major flaws in Internet security, it should — in most circumstances — reveal them to assure that they will be fixed, rather than keep mum so that the flaws can be used in espionage or cyberattacks, senior administration officials said Saturday.But Mr. Obama carved a broad exception for “a clear national security or law enforcement need,” the officials said, a loophole that is likely to allow the N.S.A. to continue to exploit security flaws both to crack encryption on the Internet and to design cyberweapons.
  • elements of the decision became evident on Friday, when the White House denied that it had any prior knowledge of the Heartbleed bug, a newly known hole in Internet security that sent Americans scrambling last week to change their online passwords. The White House statement said that when such flaws are discovered, there is now a “bias” in the government to share that knowledge with computer and software manufacturers so a remedy can be created and distributed to industry and consumers.Caitlin Hayden, the spokeswoman for the National Security Council, said the review of the recommendations was now complete, and it had resulted in a “reinvigorated” process to weigh the value of disclosure when a security flaw is discovered, against the value of keeping the discovery secret for later use by the intelligence community.“This process is biased toward responsibly disclosing such vulnerabilities,” she said.
  • One recommendation urged the N.S.A. to get out of the business of weakening commercial encryption systems or trying to build in “back doors” that would make it far easier for the agency to crack the communications of America’s adversaries. Tempting as it was to create easy ways to break codes — the reason the N.S.A. was established by Harry S. Truman 62 years ago — the committee concluded that the practice would undercut trust in American software and hardware products. In recent months, Silicon Valley companies have urged the United States to abandon such practices, while Germany and Brazil, among other nations, have said they were considering shunning American-made equipment and software. Their motives were hardly pure: Foreign companies see the N.S.A. disclosures as a way to bar American competitors.Continue reading the main story Continue reading the main story AdvertisementAnother recommendation urged the government to make only the most limited, temporary use of what hackers call “zero days,” the coding flaws in software like Microsoft Windows that can give an attacker access to a computer — and to any business, government agency or network connected to it. The flaws get their name from the fact that, when identified, the computer user has “zero days” to fix them before hackers can exploit the accidental vulnerability.
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  • The N.S.A. made use of four “zero day” vulnerabilities in its attack on Iran’s nuclear enrichment sites. That operation, code-named “Olympic Games,” managed to damage roughly 1,000 Iranian centrifuges, and by some accounts helped drive the country to the negotiating table.Not surprisingly, officials at the N.S.A. and at its military partner, the United States Cyber Command, warned that giving up the capability to exploit undisclosed vulnerabilities would amount to “unilateral disarmament” — a phrase taken from the battles over whether and how far to cut America’s nuclear arsenal.“We don’t eliminate nuclear weapons until the Russians do,” one senior intelligence official said recently. “You are not going to see the Chinese give up on ‘zero days’ just because we do.” Even a senior White House official who was sympathetic to broad reforms after the N.S.A. disclosures said last month, “I can’t imagine the president — any president — entirely giving up a technology that might enable him some day to take a covert action that could avoid a shooting war.”
  • But documents released by Edward J. Snowden, the former N.S.A. contractor, make it clear that two years before Heartbleed became known, the N.S.A. was looking at ways to accomplish exactly what the flaw did by accident. A program code-named Bullrun, apparently named for the site of two Civil War battles just outside Washington, was part of a decade-long effort to crack or circumvent encryption on the web. The documents do not make clear how well it succeeded, but it may well have been more effective than exploiting Heartbleed would be at enabling access to secret data.The government has become one of the biggest developers and purchasers of information identifying “zero days,” officials acknowledge. Those flaws are big business — Microsoft pays up to $150,000 to those who find them and bring them to the company to fix — and other countries are gathering them so avidly that something of a modern-day arms race has broken out. Chief among the nations seeking them are China and Russia, though Iran and North Korea are in the market as well.
  • Paul Merrell on 13 Apr 14
     
    Note that this is only an elastic policy, not law. Also notice that NYT is now reporting as *fact* that the NSA did the cyber attack on the Iranian enrichment centrifuges. By any legal measure, if true that was an act of war, a war of aggression.  So why wasn't the American public informed that we were at war with Iran? 
Paul Merrell

Asia Times Online :: World Affairs - 0 views

www.atimes.com/...WOR-03-240414.html

war & peace Ukraine E.U. China U.S.-foreign-policy

shared by Paul Merrell on 28 Apr 14 - No Cached
  • By Pepe Escobar Let's start with a flashback to February 1992 - only two months after the dissolution of the Soviet Union. First draft of the US government's Defense Planning Guidance. It was later toned down, but it still formed the basis for the exceptionalist dementia incarnated by the Project for the New American Century; and also reappeared in full glory in Dr Zbig "Let's Rule Eurasia" Brzezinski's 1997 magnum opus The Grand Chessboard. It's all there, raw, rough and ready: Our first objective is to prevent the reemergence of a new rival, either on the territory of the former Soviet Union or elsewhere, that poses a threat on <a href='http://asianmedia.com/GAAN/www/delivery/ck.php?n=a9473bc7&cb=%n' target='_blank'><img src='http://asianmedia.com/GAAN/www/delivery/avw.php?zoneid=36&cb=%n&n=a9473bc7&ct0=%c' border='0' alt='' ></a> the order of that posed by the Soviet Union. This ... requires that we endeavor to prevent any hostile power from dominating a region whose resources would, under consolidated control, be sufficient to generate global power. These regions include Western Europe, East Asia, the territory of the former Soviet Union, and Southwest Asia.
  • By Pepe Escobar Let's start with a flashback to February 1992 - only two months after the dissolution of the Soviet Union. First draft of the US government's Defense Planning Guidance. It was later toned down, but it still formed the basis for the exceptionalist dementia incarnated by the Project for the New American Century; and also reappeared in full glory in Dr Zbig "Let's Rule Eurasia" Brzezinski's 1997 magnum opus The Grand Chessboard. It's all there, raw, rough and ready: Our first objective is to prevent the reemergence of a new rival, either on the territory of the former Soviet Union or elsewhere, that poses a threat on <a href='http://asianmedia.com/GAAN/www/delivery/ck.php?n=a9473bc7&cb=%n' target='_blank'><img src='http://asianmedia.com/GAAN/www/delivery/avw.php?zoneid=36&cb=%n&n=a9473bc7&ct0=%c' border='0' alt='' ></a> the order of that posed by the Soviet Union. This ... requires that we endeavor to prevent any hostile power from dominating a region whose resources would, under consolidated control, be sufficient to generate global power. These regions include Western Europe, East Asia, the territory of the former Soviet Union, and Southwest Asia.
  • That's all one needs to know about the Obama administration's "pivoting to Asia", as well as the pivoting to Iran ("if we're not going to war", as US Secretary of State John Kerry let it slip) and the pivoting to Cold War 2.0, as in using Ukraine as a "new Vietnam" remix next door to Russia. And that's also the crucial context for Obama's Pax Americana Spring collection currently unrolling in selected Asian catwalks (Japan, South Korea, Malaysia and Philippines).
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  • The Spring collection is far from derailing other pivoting - whose latest offering is the current "anti-terrorist" campaign in eastern Ukraine by the Kiev regime changers, which follows a most curious calendar. CIA's John Brennan hits Kiev, and the regime changers launch their first war on terra. Dismal failure ensues. Vice President Joe Biden visits Kiev and the regime changers, right on cue, relaunch their war on terra. Thus the pivoting to Cold War 2.0 proceeds unabated, as in Washington working hard to build an iron curtain between Berlin and Moscow - preventing further trade integration across Eurasia - via instigation of a civil war in Ukraine. German Chancellor Angela Merkel remains on the spot: it's either Atlantic high-fidelity or her Ostpolitik - and that's exactly where Washington wants her.
  • How's Beijing reacting to all this hysteria? Simple: by reaping dividends. Beijing wins with the US offensive trying to alienate Moscow from Western markets by getting a better pricing deal on the supply of Eastern Siberian gas. Beijing wins from the European Union's fear of losing trade with Russia by negotiating a free-trade agreement with its largest trading partner, which happens to the be the EU. And then, the sterling example. Just compare Obama's Spring collection tour, as a pivoting appendix, to the current tour of Cuba, Venezuela, Brazil and Argentina by Chinese Foreign Minister Wang Yi. It's a business bonanza, focused on bilateral financing and, what else, trade deals. It's all in the mix: Peruvian and Chilean copper; Brazilian iron and soybeans; support for Venezuelan social programs and energy development; support for Cuba in its interest for greater Chinese involvement in Venezuela, which supplies Cuba with subsidized energy.
  • And all this against the background of a Beltway so excited that the Chinese economy is in deep trouble. It's not - it grew at 7.4% year-on-year for the first quarter of 2014. Demand for iron and copper won't significantly slow down - as the Beijing-driven urbanization drive has not even reached full speed. Same for soybeans - as millions of Chinese increasingly start eating meat on a regular basis (soybean products are a crucial feedstock). And, of course, Chinese companies will not losee their appetite for diversifying all across South America. For the large, upcoming Chinese middle class - on their way to becoming full-fledged members of the number one economic power in the world by 2018 - this Spring collection is a non-starter. He or she would rather hit Hong Kong and queue up in Canton Road to buy loads of Hermes and Prada - and then strategically celebrate with Jiro quality, non-Fukushima-radiated, sushi.
  • Paul Merrell on 28 Apr 14
     
    Escobar's point that for the U.S., Ukraine is about building an iron curtain between Russia and the E.U. should not be missed. 
Paul Merrell

Book Reveals Wider Net of U.S. Spying on Envoys - NYTimes.com - 0 views

www.nytimes.com/...et-of-us-spying-on-envoys.html

surveillance state NSA-targets diplomats embassies

shared by Paul Merrell on 14 May 14 - No Cached
  • In May 2010, when the United Nations Security Council was weighing sanctions against Iran over its nuclear program, several members were undecided about how they would vote. The American ambassador to the United Nations, Susan E. Rice, asked the National Security Agency for help “so that she could develop a strategy,” a leaked agency document shows.The N.S.A. swiftly went to work, developing the paperwork to obtain legal approval for spying on diplomats from four Security Council members — Bosnia, Gabon, Nigeria and Uganda — whose embassies and missions were not already under surveillance. The following month, 12 members of the 15-seat Security Council voted to approve new sanctions, with Lebanon abstaining and only Brazil and Turkey voting against. Continue reading the main story Related Coverage Books of The Times: ‘No Place to Hide,’ by Glenn GreenwaldMAY 12, 2014 Later that summer, Ms. Rice thanked the agency, saying its intelligence had helped her to know when diplomats from the other permanent representatives — China, England, France and Russia — “were telling the truth ... revealed their real position on sanctions ... gave us an upper hand in negotiations ... and provided information on various countries ‘red lines.’ ”
  • The two documents laying out that episode, both leaked by the former N.S.A. contractor Edward J. Snowden, are reproduced in a new book by Glenn Greenwald, “No Place to Hide: Edward Snowden, the N.S.A., and the U.S. Surveillance State.” The book is being published Tuesday.
Paul Merrell

The Trans-Pacific Partnership and the Death of the Republic | WEB OF DEBT BLOG - 0 views

ellenbrown.com/...-and-the-death-of-the-republic

trade agreements TPP fast-track Investor-State-DisputeSettlement ISDS legislation

shared by Paul Merrell on 26 Apr 15 - No Cached
  • On April 22, 2015, the Senate Finance Committee approved a bill to fast-track the Trans-Pacific Partnership (TPP), a massive trade agreement that would override our republican form of government and hand judicial and legislative authority to a foreign three-person panel of corporate lawyers. The secretive TPP is an agreement with Mexico, Canada, Japan, Singapore and seven other countries that affects 40% of global markets. Fast-track authority could now go to the full Senate for a vote as early as next week. Fast-track means Congress will be prohibited from amending the trade deal, which will be put to a simple up or down majority vote. Negotiating the TPP in secret and fast-tracking it through Congress is considered necessary to secure its passage, since if the public had time to review its onerous provisions, opposition would mount and defeat it.
  • The most controversial provision of the TPP is the Investor-State Dispute Settlement (ISDS) section, which strengthens existing ISDS  procedures. ISDS first appeared in a bilateral trade agreement in 1959. According to The Economist, ISDS gives foreign firms a special right to apply to a secretive tribunal of highly paid corporate lawyers for compensation whenever the government passes a law to do things that hurt corporate profits — such things as discouraging smoking, protecting the environment or preventing a nuclear catastrophe. Arbitrators are paid $600-700 an hour, giving them little incentive to dismiss cases; and the secretive nature of the arbitration process and the lack of any requirement to consider precedent gives wide scope for creative judgments. To date, the highest ISDS award has been for $2.3 billion to Occidental Oil Company against the government of Ecuador over its termination of an oil-concession contract, this although the termination was apparently legal. Still in arbitration is a demand by Vattenfall, a Swedish utility that operates two nuclear plants in Germany, for compensation of €3.7 billion ($4.7 billion) under the ISDS clause of a treaty on energy investments, after the German government decided to shut down its nuclear power industry following the Fukushima disaster in Japan in 2011.
  • Under the TPP, however, even larger judgments can be anticipated, since the sort of “investment” it protects includes not just “the commitment of capital or other resources” but “the expectation of gain or profit.” That means the rights of corporations in other countries extend not just to their factories and other “capital” but to the profits they expect to receive there.
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  • Under the TPP, could the US government be sued and be held liable if it decided to stop issuing Treasury debt and financed deficit spending in some other way (perhaps by quantitative easing or by issuing trillion dollar coins)? Why not, since some private companies would lose profits as a result? Under the TPP or the TTIP (the Transatlantic Trade and Investment Partnership under negotiation with the European Union), would the Federal Reserve be sued if it failed to bail out banks that were too big to fail? Firestone notes that under the Netherlands-Czech trade agreement, the Czech Republic was sued in an investor-state dispute for failing to bail out an insolvent bank in which the complainant had an interest. The investor company was awarded $236 million in the dispute settlement. What might the damages be, asks Firestone, if the Fed decided to let the Bank of America fail, and a Saudi-based investment company decided to sue?
  • Just the threat of this sort of massive damage award could be enough to block prospective legislation. But the TPP goes further and takes on the legislative function directly, by forbidding specific forms of regulation. Public Citizen observes that the TPP would provide big banks with a backdoor means of watering down efforts to re-regulate Wall Street, after deregulation triggered the worst financial crisis since the Great Depression: The TPP would forbid countries from banning particularly risky financial products, such as the toxic derivatives that led to the $183 billion government bailout of AIG. It would prohibit policies to prevent banks from becoming “too big to fail,” and threaten the use of “firewalls” to prevent banks that keep our savings accounts from taking hedge-fund-style bets. The TPP would also restrict capital controls, an essential policy tool to counter destabilizing flows of speculative money. . . . And the deal would prohibit taxes on Wall Street speculation, such as the proposed Robin Hood Tax that would generate billions of dollars’ worth of revenue for social, health, or environmental causes.
  • Clauses on dispute settlement in earlier free trade agreements have been invoked to challenge efforts to regulate big business. The fossil fuel industry is seeking to overturn Quebec’s ban on the ecologically destructive practice of fracking. Veolia, the French behemoth known for building a tram network to serve Israeli settlements in occupied East Jerusalem, is contesting increases in Egypt’s minimum wage. The tobacco maker Philip Morris is suing against anti-smoking initiatives in Uruguay and Australia. The TPP would empower not just foreign manufacturers but foreign financial firms to attack financial policies in foreign tribunals, demanding taxpayer compensation for regulations that they claim frustrate their expectations and inhibit their profits.
  • What is the justification for this encroachment on the sovereign rights of government? Allegedly, ISDS is necessary in order to increase foreign investment. But as noted in The Economist, investors can protect themselves by purchasing political-risk insurance. Moreover, Brazil continues to receive sizable foreign investment despite its long-standing refusal to sign any treaty with an ISDS mechanism. Other countries are beginning to follow Brazil’s lead. In an April 22nd report from the Center for Economic and Policy Research, gains from multilateral trade liberalization were shown to be very small, equal to only about 0.014% of consumption, or about $.43 per person per month. And that assumes that any benefits are distributed uniformly across the economic spectrum. In fact, transnational corporations get the bulk of the benefits, at the expense of most of the world’s population.
  • Something else besides attracting investment money and encouraging foreign trade seems to be going on. The TPP would destroy our republican form of government under the rule of law, by elevating the rights of investors – also called the rights of “capital” – above the rights of the citizens. That means that TPP is blatantly unconstitutional. But as Joe Firestone observes, neo-liberalism and corporate contributions seem to have blinded the deal’s proponents so much that they cannot see they are selling out the sovereignty of the United States to foreign and multinational corporations.
  • For more information and to get involved, visit: Flush the TPP The Citizens Trade Campaign Public Citizen’s Global Trade Watch Eyes on Trade
Gary Edwards

The obscure legal system that lets corporations sue countries | Claire Provost and Matt... - 0 views

www.theguardian.com/...rtations-sue-states-ttip-icsid

ISDS TTIP Banksters World-Banksters

shared by Gary Edwards on 10 Jun 15 - No Cached
  • Every year on 15 September, thousands of Salvadorans celebrate the date when much of Central America gained independence from Spain. Fireworks are set off and marching bands parade through villages across the country. But, last year, in the town of San Isidro, in Cabañas, the festivities had a markedly different tone. Hundreds had gathered to protest against the mine. Gold mines often use cyanide to separate gold from ore, and widespread concern over already severe water contamination in El Salvador has helped fuel a powerful movement determined to keep the country’s minerals in the ground. In the central square, colourful banners were strung up, calling on OceanaGold to drop its case against the country and leave the area. Many were adorned with the slogan, “No a la mineria, Si a la vida” (No to mining, Yes to life). On the same day, in Washington DC, Parada gathered his notes and shuffled into a suite of nondescript meeting rooms in the World Bank’s J building, across the street from its main headquarters on Pennsylvania Avenue. This is the International Centre for the Settlement of Investment Disputes (ICSID): the primary institution for handling the cases that companies file against sovereign states. (The ICSID is not the sole venue for such cases; there are similar forums in London, Paris, Hong Kong and the Hague, among others.) The date of the hearing was not a coincidence, Parada said. The case has been framed in El Salvador as a test of the country’s sovereignty in the 21st century, and he suggested that it should be heard on Independence Day. “The ultimate question in this case,” he said, “is whether a foreign investor can force a government to change its laws to please the investor as opposed to the investor complying with the laws they find in the country.”
  • Most international investment treaties and free-trade deals grant foreign investors the right to activate this system, known as investor-state dispute settlement (ISDS), if they want to challenge government decisions affecting their investments. In Europe, this system has become a sticking point in negotiations over the controversial Transatlantic Trade and Investment Partnership (TTIP) deal proposed between the European Union and the US, which would massively extend its scope and power and make it harder to challenge in the future. Both France and Germany have said that they want access to investor-state dispute settlement removed from the TTIP treaty currently under discussion. Investors have used this system not only to sue for compensation for alleged expropriation of land and factories, but also over a huge range of government measures, including environmental and social regulations, which they say infringe on their rights. Multinationals have sued to recover money they have already invested, but also for alleged lost profits and “expected future profits”. The number of suits filed against countries at the ICSID is now around 500 – and that figure is growing at an average rate of one case a week. The sums awarded in damages are so vast that investment funds have taken notice: corporations’ claims against states are now seen as assets that can be invested in or used as leverage to secure multimillion-dollar loans. Increasingly, companies are using the threat of a lawsuit at the ICSID to exert pressure on governments not to challenge investors’ actions.
  • “I had absolutely no idea this was coming,” Parada said. Sitting in a glass-walled meeting room in his offices, at the law firm Foley Hoag, he paused, searching for the right word to describe what has happened in his field. “Rogue,” he decided, finally. “I think the investor-state arbitration system was created with good intentions, but in practice it has gone completely rogue.”
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  • The quiet village of Moorburg in Germany lies just across the river from Hamburg. Past the 16th-century church and meadows rich with wildflowers, two huge chimneys spew a steady stream of thick, grey smoke into the sky. This is Kraftwerk Moorburg, a new coal-fired power plant – the village’s controversial next-door neighbour. In 2009, it was the subject of a €1.4bn investor-state case filed by Vattenfall, the Swedish energy giant, against the Federal Republic of Germany. It is a prime example of how this powerful international legal system, built to protect foreign investors in developing countries, is now being used to challenge the actions of European governments as well. Since the 1980s, German investors have sued dozens of countries, including Ghana, Ukraine and the Philippines, at the World Bank’s Centre in Washington DC. But with the Vattenfall case, Germany found itself in the dock for the first time. The irony was not lost on those who considered Germany to be the grandfather of investor-state arbitration: it was a group of German businessmen, in the late 1950s, who first conceived of a way to protect their overseas investments as a wave of developing countries gained independence from European colonial powers. Led by Deutsche Bank chairman Hermann Abs, they called their proposal an “international magna carta” for private investors.
  • In the 1960s, the idea was taken up by the World Bank, which said that such a system could help the world’s poorer countries attract foreign capital. “I am convinced,” the World Bank president George Woods said at the time, “that those … who adopt as their national policy a welcome [environment] for international investment – and that means, to mince no words about it, giving foreign investors a fair opportunity to make attractive profits – will achieve their development objectives more rapidly than those who do not.” At the World Bank’s 1964 annual meeting in Tokyo, it approved a resolution to set up a mechanism for handling investor-state cases. The first line of the ICSID Convention’s preamble sets out its goal as “international cooperation for economic development”. There was sharp opposition to this system from its inception, with a bloc of developing countries warning that it would undermine their sovereignty. A group of 21 countries – almost every Latin American country, plus Iraq and the Philippines – voted against the proposal in Tokyo. But the World Bank moved ahead regardless. Andreas Lowenfeld, an American legal academic who was involved in some of these early discussions, later remarked: “I believe this was the first time that a major resolution of the World Bank had been pressed forward with so much opposition.”
  • now governments are discovering, too late, the true price of that confidence. The Kraftwerk Moorburg plant was controversial long before the case was filed. For years, local residents and environmental groups objected to its construction, amid growing concern over climate change and the impact the project would have on the Elbe river. In 2008, Vattenfall was granted a water permit for its Moorburg project, but, in response to local pressure, local authorities imposed strict environmental conditions to limit the utility’s water usage and its impact on fish. Vattenfall sued Hamburg in the local courts. But, as a foreign investor, it was also able to file a case at the ICSID. These environmental measures, it said, were so strict that they constituted a violation of its rights as guaranteed by the Energy Charter Treaty, a multilateral investment agreement signed by more than 50 countries, including Sweden and Germany. It claimed that the environmental conditions placed on its permit were so severe that they made the plant uneconomical and constituted acts of indirect expropriation.
  • With the rapid growth in these treaties – today there are more than 3,000 in force – a specialist industry has developed in advising companies how best to exploit treaties that give investors access to the dispute resolution system, and how to structure their businesses to benefit from the different protections on offer. It is a lucrative sector: legal fees alone average $8m per case, but they have exceeded $30m in some disputes; arbitrators’ fees at start at $3,000 per day, plus expenses.
  • Vattenfall v Germany ended in a settlement in 2011, after the company won its case in the local court and received a new water permit for its Moorburg plant – which significantly lowered the environmental standards that had originally been imposed, according to legal experts, allowing the plant to use more water from the river and weakening measures to protect fish. The European Commission has now stepped in, taking Germany to the EU Court of Justice, saying its authorisation of the Moorburg coal plant violated EU environmental law by not doing more to reduce the risk to protected fish species, including salmon, which pass near the plant while migrating from the North Sea. A year after the Moorburg case closed, Vattenfall filed another claim against Germany, this time over the federal government’s decision to phase out nuclear power. This second suit – for which very little information is available in the public domain, despite reports that the company is seeking €4.7bn from German taxpayers – is still ongoing. Roughly one third of all concluded cases filed at the ICSID are recorded as ending in “settlements”, which – as the Moorburg dispute shows – can be very profitable for investors, though their terms are rarely fully disclosed.
  • “It was a total surprise for us,” the local Green party leader Jens Kerstan laughed, in a meeting at his sunny office in Hamburg last year. “As far as I knew, there were some [treaties] to protect German companies in the [developing] world or in dictatorships, but that a European company can sue Germany, that was totally a surprise to me.”
  • While a tribunal cannot force a country to change its laws, or give a company a permit, the risk of massive damages may in some cases be enough to persuade a government to reconsider its actions. The possibility of arbitration proceedings can be used to encourage states to enter into meaningful settlement negotiations.
  • A small number of countries are now attempting to extricate themselves from the bonds of the investor-state dispute system. One of these is Bolivia, where thousands of people took to the streets of the country’s third-largest city, Cochabamba, in 2000, to protest against a dramatic hike in water rates by a private company owned by Bechtel, the US civil engineering firm. During the demonstrations, the Bolivian government stepped in and terminated the company’s concession. The company then filed a $50m suit against Bolivia at the ICSID. In 2006, following a campaign calling for the case to be thrown out, the company agreed to accept a token payment of less than $1. After this expensive case, Bolivia cancelled the international agreements it had signed with other states giving their investors access to these tribunals. But getting out of this system is not easily done. Most of these international agreements have sunset clauses, under which their provisions remain in force for a further 10 or even 20 years, even if the treaties themselves are cancelled.
  • There are now thousands of international investment agreements and free-trade acts, signed by states, which give foreign companies access to the investor-state dispute system, if they decide to challenge government decisions. Disputes are typically heard by panels of three arbitrators; one selected by each side, and the third agreed upon by both parties. Rulings are made by majority vote, and decisions are final and binding. There is no appeals process – only an annulment option that can be used on very limited grounds. If states do not pay up after the decision, their assets are subject to seizure in almost every country in the world (the company can apply to local courts for an enforcement order).
  • While there is no equivalent of legal aid for states trying to defend themselves against these suits, corporations have access to a growing group of third-party financiers who are willing to fund their cases against states, usually in exchange for a cut of any eventual award.
  • Increasingly, these suits are becoming valuable even before claims are settled. After Rurelec filed suit against Bolivia, it took its case to the market and secured a multimillion-dollar corporate loan, using its dispute with Bolivia as collateral, so that it could expand its business. Over the last 10 years, and particularly since the global financial crisis, a growing number of specialised investment funds have moved to raise money through these cases, treating companies’ multimillion-dollar claims against states as a new “asset class”.
  • El Salvador has already spent more than $12m defending itself against Pacific Rim, but even if it succeeds in beating the company’s $284m claim, it may never recover these costs. For years Salvadoran protest groups have been calling on the World Bank to initiate an open and public review of ICSID. To date, no such study has been carried out. In recent years, a number of ideas have been mooted to reform the international investor-state dispute system – to adopt a “loser pays” approach to costs, for example, or to increase transparency. The solution may lie in creating an appeals system, so that controversial judgments can be revisited.
  • Brazil has never signed up to this system – it has not entered into a single treaty with these investor-state dispute provisions – and yet it has had no trouble attracting foreign investment.
  • Gary Edwards on 10 Jun 15
     
    "Luis Parada's office is just four blocks from the White House, in the heart of K Street, Washington's lobbying row - a stretch of steel and glass buildings once dubbed the "road to riches", when influence-peddling became an American growth industry. Parada, a soft-spoken 55-year-old from El Salvador, is one of a handful of lawyers in the world who specialise in defending sovereign states against lawsuits lodged by multinational corporations. He is the lawyer for the defence in an obscure but increasingly powerful field of international law - where foreign investors can sue governments in a network of tribunals for billions of dollars. Fifteen years ago, Parada's work was a minor niche even within the legal business. But since 2000, hundreds of foreign investors have sued more than half of the world's countries, claiming damages for a wide range of government actions that they say have threatened their profits. In 2006, Ecuador cancelled an oil-exploration contract with Houston-based Occidental Petroleum; in 2012, after Occidental filed a suit before an international investment tribunal, Ecuador was ordered to pay a record $1.8bn - roughly equal to the country's health budget for a year. (Ecuador has logged a request for the decision to be annulled.) Parada's first case was defending Argentina in the late 1990s against the French conglomerate Vivendi, which sued after the Argentine province of Tucuman stepped in to limit the price it charged people for water and wastewater services. Argentina eventually lost, and was ordered to pay the company more than $100m. Now, in his most high-profile case yet, Parada is part of the team defending El Salvador as it tries to fend off a multimillion-dollar suit lodged by a multinational mining company after the tiny Central American country refused to allow it to dig for gold."
Paul Merrell

As Europe erupts over US spying, NSA chief says government must stop media | Glenn Gree... - 0 views

www.theguardian.com/...ts-nsa-spying-chief-government

surveillance state NSA Alexander censorship suveillance-subject-matter

shared by Paul Merrell on 28 Oct 13 - No Cached
  • is there any doubt at all that the US government repeatedly tried to mislead the world when insisting that this system of suspicionless surveillance was motivated by an attempt to protect Americans from The Terrorists™? Our reporting has revealed spying on conferences designed to negotiate economic agreements, the Organization of American States, oil companies, ministries that oversee mines and energy resources, the democratically elected leaders of allied states, and entire populations in those states.Can even President Obama and his most devoted loyalists continue to maintain, with a straight face, that this is all about Terrorism? That is what this superb new Foreign Affairs essay by Henry Farrell and Martha Finnemore means when it argues that the Manning and Snowden leaks are putting an end to the ability of the US to use hypocrisy as a key weapon in its soft power.Speaking of an inability to maintain claims with a straight face, how are American and British officials, in light of their conduct in all of this, going to maintain the pretense that they are defenders of press freedoms and are in a position to lecture and condemn others for violations? In what might be the most explicit hostility to such freedoms yet – as well as the most unmistakable evidence of rampant panic – the NSA's director, General Keith Alexander, actually demanded Thursday that the reporting being done by newspapers around the world on this secret surveillance system be halted (Techdirt has the full video here):
  • The head of the embattled National Security Agency, Gen Keith Alexander, is accusing journalists of "selling" his agency's documents and is calling for an end to the steady stream of public disclosures of secrets snatched by former contractor Edward Snowden."I think it's wrong that that newspaper reporters have all these documents, the 50,000 – whatever they have and are selling them and giving them out as if these – you know it just doesn't make sense," Alexander said in an interview with the Defense Department's "Armed With Science" blog."We ought to come up with a way of stopping it. I don't know how to do that. That's more of the courts and the policy-makers but, from my perspective, it's wrong to allow this to go on," the NSA director declared. [My italics]There are 25,000 employees of the NSA (and many tens of thousands more who work for private contracts assigned to the agency). Maybe one of them can tell The General about this thing called "the first amendment".I'd love to know what ways, specifically, General Alexander has in mind for empowering the US government to "come up with a way of stopping" the journalism on this story. Whatever ways those might be, they are deeply hostile to the US constitution – obviously. What kind of person wants the government to forcibly shut down reporting by the press?Whatever kind of person that is, he is not someone to be trusted in instituting and developing a massive bulk-spying system that operates in the dark. For that matter, nobody is.
  • Paul Merrell on 28 Oct 13
     
    Alexander's call for censorship starts at about 21:00 of the video at http://www.politico.com/blogs/under-the-radar/2013/10/nsa-chief-stop-reporters-selling-spy-documents-175896.html Dear General Alexander: "... we cannot defend freedom abroad by deserting it at home." E- Edward R. Murrow, See It Now (9 March 1954), http://tinyurl.com/kzlpm4a
Gary Edwards

The Daily Bell - Gerald Celente on Multinationalism, Breaking the Chains and Individual... - 0 views

www.thedailybell.com/...ins-and-Individual-Renaissance

gerald-celente Globalist-Elites

shared by Gary Edwards on 04 Nov 13 - No Cached
  • Gerald Celente: As I said, they're in a trap and it's a tapering trap, the quantitative easing trap. They can't keep printing more money because it's going to devalue the currency. And by the way, this is complicated, because it's not only the United States that's doing it; most of the central banks are doing it. China, the Europeans – they're all pumping money into their systems to keep them afloat. They're all in a trap. A time comes when you just can't keep doing it anymore. You can only take heroin so much before it kills you. This is monetary methadone and it's not going to cure the problem so they're going to have to stop. When it stops, that's when we go back into a recession and/or a depression.
  • Is it a depression? Is it a depression if you live in Greece or Spain or Portugal? Is it a depression if you're among the over 12% unemployed in Italy? When you look at John Williams's ShadowStats, in the US we're looking at about 22% unemployment. So yes, it's a depression for a lot of people. And then again, median household income in the US, accounting for inflation, is 10% below 1999 levels. That's a fact. So if you're earning 10 percent less for your family than you were in 1999 and the costs have skyrocketed since then, particularly in healthcare, food, rent, property, gas and other costs, do you think you're living in a depression? Daily Bell: Is central banking an art, a science or just a fraud?
  • Gerald Celente: Neither. It's a criminal operation. Throughout the 1800s, one of the major issues of every presidential election was whether or not to have a central bank. They fought it successfully not to have one until 1913. These are private banks that are running our country and many others. This goes back to the scriptures; it's Christ chasing the moneychangers out of the temple. The moneychangers have just got new names – Deutsche Bank, Societe Generale, Goldman Sachs, JPMorgan Chase, and, of course, JPMorgan Chase got that name because you're going to have to chase them to get your money because they just put a limit on how much you can withdraw or deposit each month in certain accounts, with a limit of $50,000.
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  • Daily Bell: It seems like people don't believe in central banking anymore so why does it continue? What holds it up in a so-called democracy where people have a vote? Gerald Celente: Most people don't even know what a central bank is and they still believe the lie that the Federal Reserve is a quasi-government institution when it's not. It's a totally private bank. Most people don't even know that. So most people are uninformed and like in all countries, they follow their leaders. Very few people rebel. There was an incident that happened in late October in the States. Hillary Clinton was speaking in Buffalo, delivering her model for what is required to solve complex problems. There was a heckler in the crowd who she admonished by saying, "... which doesn't include yelling. It includes sitting down and talking." What patronizing bullshit. You know what happened? The audience of 6,500 stood up and gave her a standing ovation that extended on and on. So it's the people. The people can blame the politicians all they want, but as I see it, it's the people's responsibility for the state of their nation.
  • Daily Bell: What's the employment picture like going forward in the US?
  • Gerald Celente: Lower paying jobs, less benefits, more temporary jobs and I think the question at the end is rather than going forward in the US it should be what's going forward in Slavelandia, because that's what it's become. You get out of college and you're an indentured servant. For the rest of your life you have to pay off your debt for your degree in worthlessness, for the most part. There are degrees that are worth something but not a lot of them. Where are you going to work? Name the company – Macy's? Starbucks? You can become a barista. Are they going to start teaching Shipping & Handling 101 in college? What are they going to do? Who are you going to work for? What are you going to do – stock shelves? This is better than slavery because when they had the plantation you had to take care of the slaves. Now you can just use them up and send them home. It's kind of like Bangladesh right here in the good 'ol USA.
  • Daily Bell: How about the rest of the world? Give us a global summary.
  • Gerald Celente: The global summary is this: Everybody can see what happened when the Federal Reserve talked about tapering several months ago. All of a sudden you saw the emerging markets start to crash; they dropped about 11% in a year before the Fed reversed its policy because all the hot, low-interest rate money that was leaving the US was flowing into the emerging markets, where you could borrow the money cheaply. So when they started to talk about tapering the hot money started flowing out of these countries, such as India, Brazil. They were really suffering from it and so were their stock markets. So without the cheap money flowing from the central banks, the entire global economy goes on stall and then it turns negative. You can see what's going on in China now; they're facing a banking crisis. Real estate prices in cities like Shanghai and Beijing have gone up over 20% in a year and no matter how the government tries to deflate it, the housing bubble keeps growing. The banks also have a lot of bad loans they're carrying. Now the Chinese government is trying to restrain that free-flow of cheap money, and what happens to their stock market when they do? It dives and the contagion spreads to other Asian equity markets. They all start dropping. It's all tied to cheap money and when the cheap money spigot begins to tighten up the global economy goes down. As I've made very clear, when the interest rates go up the economies go down – it's as simple as that. They've run out of this game. Compare this with the Great Depression, when it began essentially in 1930. This recession begin in 2008. It's now 2013 – we're only in 1935.
  • Daily Bell: China and the BRICS seem to be making noises about setting up their own monetary infrastructure without the dollar. Will that happen?
  • Gerald Celente: Yes, they are making noise, but reality is another issue, and the currency issue is complicated. The dollar goes down but where are you going to go, the euro? We were talking briefly about what's going on in Europe. There's financial market propaganda boasting that the worst of the eurozone crisis is over. They're bragging that The GDP of Spain was just reported to have gone up 0.1% and they made a big deal out of it. "The recession's over" is the B.S. message. No, the recession is not over! They're cooking the numbers to make a rotten situation look less rotten. In countries like Greece and Spain, youth unemployment is running above 50% and overall unemployment around 30%. The recession continues unabated, and there's absolutely no way out of this and they can't print their way out. Portugal, Italy, Greece, Spain, Ireland are doing terrible – what would anyone substitute euros for dollars? And what other currency choices are there, the yuan? As I mentioned, China has plenty of its own problems. They've been dumping a lot of cash into that society to keep it going. You know what China's greatest fear is? It's not the Spratly Islands or the South and China Sea territorial problems that are going on between them, the Philippines, Vietnam or the Japanese. China's greatest fear is its people. They've got 1.2 billion of them and if they're hungry or not happy there's going to be a lot of problems.
  • Again, what do you substitute the dollar for, Brazil's real or the Indian rupee? Remember, we saw what happened when the hot money started leaving the emerging market countries. The South African rand is also under pressure. The BRIC nations can speak as much as they want and they may have the greatest intention to create another reserve currency, but the fact is their economies are not robust or independent enough to create one at this time. As I said, talk is one thing, facts are another and although the world is less dependent on the dollar it is still by far the major reserve currency of the world and I don't see that rapidly changing unless there's a catastrophe that would cause it to happen. However, over the years, I do expect a new reserve model to develop.
  • Daily Bell: Let's talk about military action, particularly in Syria where Al Qaeda types have been fighting on the side of the US and NATO. Why does the US want to destabilize Syria and what country will be next – Iran? Russia?
  • Gerald Celente: We wrote about this in the Trends Journal going back to 2011. After Libya fell, Syria was the only port that the Chinese and the Russians had in the Mediterranean – the Port of Tartus. And also, Syria's only real ally in that area is Iran and, of course, Hezbollah in Lebanon. So with Syria out of the way there's nothing in the Middle East other than Iran to stop the continued spread of US influence and control in that area. It's really more about that than anything we see – again, having more control over that area for the US to do as it wants, with Iran really being the main target.
  • When President Obama backed off his red line threat and didn't attack Syria that was a tipping point. And, as important, the vast majority of Americans opposed the attack plan. That was a significant statement. The country said it was tired of war – and so are a lot of other nations.
  • Gerald Celente: Again, talk about morality and the recent Amnesty International report that said the United States was breaking international law in its use of drones to kill people that were convicted of nothing in addition to innocent people. How much more immoral could you get?
  • I can tell you how much immoral. How about starting wars in Afghanistan and Iraq – in Iraq with the proof that a war was started that killed at least a half a million people that was started under fake reasons; lies that Saddam Hussein had weapons of mass destruction and ties to al Qaeda. An Afghan war that's the longest war in American history, the war in Libya that they called a time-limed, scope-limited kinetic action that's destroyed the entire nation. You want to talk about immorality? How about the "too big to fail"? The government mandated immoral act of stealing money from the American people to give it to the banks, financiers and favored corporations? They say the fish rots from the head down and that's it; the fish has rotted in America for a long time. It didn't start with Obama. It goes back to Bush, Clinton, and keeps going back. Society gets the message from the top and, as I see it, they're simply following their leaders. For example, if their leader can start wars, rob people, take their money, why shouldn't I? Why should I operate on a moral level when immorality is condoned at the top?
  • Most recently, the United States government, in virtually every fashion of behavior, has been fascist. I don't say that by throwing the word out loosely. It's called the merger of corporate state and powers. It goes back to "too big to fail." Under capitalism there's no such thing. You're not too big to fail; you fail. Big, small, medium, you fail – it's capitalism.
  • Not anymore. You have your money taken from you by government order and it's transferred to the people who are the most favored by those in power. That's the only reason why the stock market keeps going up and why the multinationals are doing so well. That's where the $85 billion a month that the Federal Reserve is using in their quantitative easing is going. Then when you look at the other levels of immorality, as I mentioned, why shouldn't people feel as though they can do anything the government is doing? That's why it just keeps getting worse and worse. It's reflected in the music, the politics, every element of culture – both pop culture and political culture.
  • Under the dictates of the eurozone and globalization, the love of one's culture and pride of nation is denounced as "populism."
  • Daily Bell: Let's talk hard money. Can you give us an update on the price action of gold and silver? How about equity? Where is the stock market headed? We think the big boys are trying to rev it up and go for one last killing. Your thoughts?
  • Gerald Celente: The stock market will continue to rise as long as interest rates stay low. That's the best estimate you could give. They keep all of this quantitative easing that, for example, benefits the big private equity firms. Look what's going on in the United States with Blackstone Group. They own 40,000 homes. Where are they getting the money? Deutsche Bank is loaning them tons of money because they're getting money with overnight rates near zero, and they in turn loan it to the "bigs" really cheaply so it is just another example of what's keeping the whole stock market scam going.
  • As long as the money stays cheap the stock market keeps going up. As the money stays cheap gold and silver go up, and you're seeing gold making a bit of a rebound lately because of, again going back to the employment numbers in the States – there is no recovery, the jobs stink, they're not creating enough jobs. The tapering keeps going on, which is a devaluation of the currency, and quantitative easing continues. As long as money stays cheap gold goes up. Now, gold may go down when quantitative easing and tapering slow down. However, that's only going to be temporary because when that happens the bond market's going to explode, when interest rates go up, there's going to be another financial crisis. My best analysis at this time is the second quarter of 2014. The 'experts' are saying the stock market is booming. It has gone from a 14,000 high in 2007 to mid-15,000 now. Accounting for inflation, the stock market has to be about 15,750 just to be back at the 2007 level.
  • Daily Bell: There are other trends, of course, ones you often mention. You spoke to us last time about the New Millennium Renaissance.
  • Gerald Celente: Back to the renaissance... To me, that's the only thing that's going to change the future. We need a cultural, artistic and moral redevelopment, a restoration. Every issue that we've been talking about so far is based on human behavior and the human spirit – morality or immorality. Until morality is restored and the human spirit rises, nothing's going to change. As I was mentioning before, the fish rots from the head down. If you see the people at the head acting immorally, and from the head all the way down, why shouldn't you or I act immorally? What license do they have to steal that we don't? What license do they have to kill that we shouldn't?
Paul Merrell

U.S. to China: We Hacked Your Internet Gear We Told You Not to Hack | Wired Enterprise ... - 0 views

www.wired.com/...nsa-cisco-huawei-china

surveillance state U.S. China NSA-backdoors

shared by Paul Merrell on 01 Jan 14 - No Cached
  • The headline news is that the NSA has surreptitiously “burrowed its way into nearly all the security architecture” sold by the world’s largest computer networking companies, including everyone from U.S. mainstays Cisco and Juniper to Chinese giant Huawei. But beneath this bombshell of a story from Der Spiegel, you’ll find a rather healthy bit of irony. After all, the United States government has spent years complaining that Chinese intelligence operations could find ways of poking holes in Huawei networking gear, urging both American businesses and foreign allies to sidestep the company’s hardware. The complaints grew so loud that, at one point, Huawei indicated it may abandon the U.S. networking market all together. And, yet, Der Speigel now tells us that U.S. intelligence operations have been poking holes in Huawei networking gear — not to mention hardware sold by countless other vendors in both the States and abroad. “We read the media reports, and we’ve noted the references to Huawei and our peers,” says William Plummer, a Huawei vice president and the company’s point person in Washington, D.C. “As we have said, over and over again — and as now seems to be validated — threats to networks and data integrity can come from any and many sources.”
  • Plummer and Huawei have long complained that when the U.S. House Intelligence Committee released a report in October 2012 condemning the use of Huawei gear in telephone and data networks, it failed to provide any evidence that the Chinese government had compromised the company’s hardware. Adam Segal, a senior fellow for China Studies at the Center for Foreign Relations, makes the same point. And now we have evidence — Der Spiegel cites leaked NSA documents — that the U.S. government has compromised gear on a massive scale. “Do I see the irony? Certainly the Chinese will,” Segal says, noting that the Chinese government and the Chinese press have complained of U.S hypocrisy ever since former government contractor Edward Snowden first started to reveal NSA surveillance practices last summer. “The Chinese government has been hammering home what they call the U.S.’s ulterior motives for criticizing China, and there’s been a steady drumbeat of stories in the Chinese press about backdoors in the products of U.S. companies. They’ve been going after Cisco in particular.”
  • To be sure, the exploits discussed by Der Spiegel are a little different from the sort of attacks Congress envisioned during its long campaign against Huawei and ZTE, another Chinese manufacturer. As Segal and others note, Congress mostly complained that the Chinese government could collaborate with people inside the two companies to plant backdoors in their gear, with lawmakers pointing out that Huawei’s CEO was once an officer in China’s People’s Liberation Army, or PLA, the military arm of the country’s Communist party. Der Spiegel, by contrast, says the NSA is exploiting hardware without help from anyone inside the Ciscos and the Huaweis, focusing instead on compromising network gear with clever hacks or intercepting the hardware as it’s shipped to customers. “For the most part, the article discusses typical malware exploits used by hackers everywhere,” says JR Rivers, an engineer who has built networking hardware for Cisco as well as Google and now runs the networking startup Cumulus Networks. “It’s just pointing out that the NSA is engaged in the practice and has resources that are not available to most people.” But in the end, the two types of attack have the same result: Networking gear controlled by government spies. And over the last six months, Snowden’s revelations have indicated that the NSA is not only hacking into networks but also collaborating with large American companies in its hunt for data.
  • ...2 more annotations...
  • Jim Lewis, a director and senior fellow with the Center for Strategic and International Studies, adds that the Chinese view state-sponsored espionage a little differently than the U.S. does. Both countries believe in espionage for national security purposes, but the Chinese argue that such spying might include the theft of commercial secrets. “The Chinese will tell you that stealing technology and business secrets is a way of building their economy, and that this is important for national security,” says Lewis, who has helped oversee meetings between the U.S. and the Chinese, including officers in the PLA. “I’ve been in the room when they’ve said that. The last time was when a PLA colonel said: ‘In the U.S., military espionage is heroic and economic espionage is a crime. In China, the line is not that clear.’” But here in the United States, we now know, the NSA may blur other lines in the name of national security. Segal says that although he, as an American, believes the U.S. government is on stronger ethical ground than the Chinese, other nations are beginning to question its motives. “The U.S has to convince other countries that our type of intelligence gathering is different,” he says. “I don’t think that the Brazils and the Indias and the Indonesias and the South Africas are convinced. That’s a big problem for us.”
  • The thing to realize, as the revelations of NSA snooping continue to pour out, is that everyone deserves scrutiny — the U.S government and its allies, as well as the Chinese and others you may be more likely to view with skepticism. “All big countries,” Lewis says, “are going to try and do this.”
  • Paul Merrell on 01 Jan 14
     
    Of course, we now know that the U.S. conducts electronic surveillance for a multitude of purposes, including economic. Check this group's notes tagged "NSA-targets" and/or "NSA-goals".
Paul Merrell

Is the NSA Spying on Congress? - Senator Bernie Sanders of Vermont - 0 views

www.sanders.senate.gov/...is-the-nsa-spying-on-congress

surveillance state NSA Sanders

shared by Paul Merrell on 05 Jan 14 - No Cached
  • U.S. Sen. Bernie Sanders (I-Vt.) today asked the National Security Agency director whether the agency has monitored the phone calls, emails and Internet traffic of members of Congress and other elected officials. “Has the NSA spied, or is the NSA currently spying, on members of Congress or other American elected officials?” Sanders asked in a letter to Gen. Keith Alexander, the NSA director. “Spying” would include gathering metadata on calls made from official or personal phones, content from websites visited or emails sent, or collecting any other data from a third party not made available to the general public in the regular course of business?” Sanders said he was “deeply concerned” by revelations that American intelligence agencies harvested records of phone calls, emails and web activity by millions of innocent Americans without any reason to even suspect involvement in illegal activities. He also cited reports that the United States eavesdropped on the leaders of Germany, Mexico, Brazil and other allies.
  • To read Sanders’ letter, click here.
Paul Merrell

UN votes to protect privacy in digital age - 0 views

bigstory.ap.org/...es-protect-privacy-digital-age

surveillance state NSA-blowback U.N. resolution digital-privacy

shared by Paul Merrell on 22 Dec 13 - No Cached
  • The U.N. General Assembly unanimously adopted a resolution aimed at protecting the right to privacy against unlawful surveillance in the digital age on Wednesday in the most vocal global criticism of U.S. eavesdropping. Germany and Brazil introduced the resolution following a series of reports of U.S. surveillance, interception, and data collection abroad — including on Brazil's President Dilma Rousseff and German Chancellor Angela Merkel — that surprised and angered friends and allies. The resolution "affirms that the same rights that people have offline must also be protected online, including the right to privacy."
  • It calls on the 193 U.N. member states "to respect and protect the right to privacy, including in the context of digital communication," to take measures to end violations of those rights, and to prevent such violations including by ensuring that national legislation complies with international human rights law. It also calls on all countries "to review their procedures, practices and legislation regarding the surveillance of communications, their interception and collection of personal data, including mass surveillance, interception and collection, with a view to upholding the right to privacy of all their obligations under international human rights law." The resolution calls on U.N. members to establish or maintain independent and effective oversight methods to ensure transparency, when appropriate, and accountability for state surveillance of communications, their interception and collection of personal data.
  • General Assembly resolutions are not legally binding but they do reflect world opinion and carry political weight.
  • ...1 more annotation...
  • The key compromise dropped the contention that the domestic and international interception and collection of communications and personal data, "in particular massive surveillance," may constitute a human rights violation. The resolution instead expresses deep concern at "the negative impact" that such surveillance, "in particular when carried out on a mass scale, may have on the exercise and enjoyment of human rights."
Paul Merrell

The Lies Grow More Audacious - 0 views

www.informationclearinghouse.info/article38726.htm

surveillance state NSA foreign-prosecution

shared by Paul Merrell on 07 Jun 14 - No Cached
  • Washington’s lies are so blatant and transparent that Washington is destroying its own credibility. Consider the NSA spying. Documents released by Snowden and Greenwald make it completely clear that Washington spies not only on government leaders and ordinary people but also on foreign businesses in order to advance US commercial and financial interests. That the US steals Chinese business secrets is not in doubt. So what does Washington do? Washington not only denies what the documents prove but turns the charge around and indicts five Chinese generals for spying on US corporations. The only purpose of these indictments hyped by the US attorney general is propaganda.The indictments are otherwise totally meaningless, not merely false. China is not about to turn over five Chinese generals to the liars in Washington. For the presstitute media the story is a way to move the NSA’s spying out of the spotlight. China is substituted for the NSA as the guilty party. Why doesn’t China, Brazil, Germany and every other country issue arrest warrants for NSA’s top officials, for Obama, and for the members of the congressional oversight committee? Why do other countries always allow Washington to control the explanation with propaganda first strikes?
  • Paul Merrell on 07 Jun 14
     
    Paul Craig Roberts hasn't caught up with the fact that a German prosectuor is doing just what Roberts suggests, finding that there is sufficient evidence to open a criminal investigation of NSA tapping Angela Merkel's cellphone. 
Paul Merrell

Venezuela: Government Reveals Assassination Plot - The Argentina Independent ... - 0 views

www.argentinaindependent.com/...ent-reveals-assassination-plot

war & peace U.S.-foreign-policy Brazil assassination

shared by Paul Merrell on 02 Jun 14 - No Cached
  • Yesterday the Venezuelan government unveiled a series of emails which appear to show opposition figures plotting an assassination attempt against President Nicolás Maduro, seemingly with financial backing from the US. At the press conference, mayor of Caracas, Jorge Rodríguez, showed an email written on 23rd March by right-wing former deputy María Corina Machado and sent to Gustavo Tarre, a lawyer who is under investigation by the Public Ministry, orchestrating “violent actions” and the assassination plot. Other mails showed communication between Machado, former governor Henrique Salas Römer, Diego Arria, and US officials talking of financial backing for the opposition from the US, as well as economic support by the fugitive Venezuelan banker Eligio Cedeño, currently residing in the US. Rodríguez said that at least one US State Department official was involved in the plot.
Paul Merrell

Venezuela: Machado Says Alleged Assassination Plot 'Defamatory' - The Argenti... - 0 views

www.argentinaindependent.com/...-assassination-plot-defamatory

war & peace U.S.-foreign-policy Brazil assassination

shared by Paul Merrell on 02 Jun 14 - No Cached
  • Venezuelan former deputy María Corina Machado yesterday filed a criminal report against Caracas mayor Jorge Rodríguez, who on Wednesday linked her to an alleged “plot to assassinate” President Nicolás Maduro. Machado, who vehemently denies the accusations, aims for charges to be brought against Rodríguez for defamation, falsifying documents, cyber-spying, insult, and fabricating a criminal case, among others. The public prosecutor, Luisa Ortega, came out to justify the interception of communications, calling the situation a serious state security problem. She also confirmed that the relevant authorities had given their backing to the interception, and underscored that a criminal investigation is underway into the alleged plot.
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